NOVEMBER 2017
www.FIADA.com
Information and Insight for Florida Used Car Dealers
Convention 2017 Another convention is in the books. Check out our convention recap and photo album. Page 14.
www.fiada.com
November 2017 — Independent Dealer — 1
PAID ADVERTISING
2 — Independent Dealer — November 2017
www.fiada.com
Dealer Independent
MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308 TELEPHONE (850) 385-2712 (800) 237-0448 FAX (850) 385-3251 WEBSITE www.FIADA.com EXECUTIVE COMMITTEE Scott Lanier, CMD President Brad Joel Senior Vice President Lisa Compagno Chairman of the Board Jenay Rhoads Secretary Phil Risley Treasurer Frank Fuzy Regional Vice President George Hickey Regional Vice President Steve Marbais, CMD Regional Vice President Brandi Noegel Regional Vice President Jim Winterick, Sr Regional Vice President FIADA STAFF Lisette Mariner, CAE Executive Director Terry Myers Educational Instructor Jason Berthiaume Education and Marketing Manager Victoria Sams Membership Manager Christy Taylor Editorial/Advertising
POSTMASTER:
Send address changes to
FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Call/Text: (800) 237-0448 Fax (850) 385-3251 • www.FIADA.com The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308 The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.
www.fiada.com
Contents November 2017
For members of the Florida Independent Automobile Dealers Association
C O L U M N S & F E AT U R E S 4
President’s Message Scott Lanier, CMD
6
Executive Director’s Message Lisette Mariner, CAE
8
Membership News
10
Back to Basics Terry Myers gives an important reminder about renewing and registering your Garage Liability policy with the DMV.
12
Do or Do Not. There is no Try. Hard work and proper planning will go a long way to making you 2018 the best year yet, according to Kenny Atcheson.
14
FIADA Good Times! Relive the Annual Convention Mardi Gras through this album of pictures and special moments.
20
Five Facebook Tips Guaranteed to Generate More Leads Facebook is an affordable, and even free, way to get your marketing message heard. Are you using it to its fullest potential?
24
Three Ways to Guard Your Dealership Assets Accounting and estate planning advice on keeping your assets safe no matter what the future holds.
26
The Debate Continues: Government Office vs. Private Tag Agency The Hon. Sharon W. Jordan, President of the Florida Tax Collectors Association, explains the statutory intent between tax collectors and private operators as well as how they can partner together for Florida's benefit.
28
A Look at Current Legal Issues Attorneys Tom Hudson and Nicole Munro recap recent federal and legal developments of interest to dealers.
30
Industry News
ON THE COVER:
A look back at the Annual Banquet. From L-R: Incoming President Scott Lanier; the 2017-18 Executive Committee; Frank and Gina Fuzy receive People of the Year; Lisa and Anthony Compagno present Quality Dealer to Steve Zimmerman; Dennis Cook receives Auction Man of the Year; FIADA Staff. November 2017 — Independent Dealer — 3
FROM THE PRESIDENT
The Good, the Bad and the Great News From Washington BY SCOT T LANIER, CMD, FIADA PRESIDENT
I
’m looking forward to serving all the dealers across the great state of Florida over this next year. If there is anything you need, please give the association or myself a call, email or text. We will do our best to help in any way we can. You have many resources within your association, don't be afraid to use them! Recently, I had the privilege of meeting the Speaker of the House, Mr. Paul Ryan. I’d like to give you an update of the pending legislation that is certainly going to influence you and your business. Some good, some not so good, and some really good news. First, there is a real push happening with the Republican agenda in Washington to lower your taxes to one of three new brackets, 12 percent, 25 percent, and 35 percent. The new rate for pass-through entities, or Sub-Chapter S corporations is 25 percent. There is also another bracket for C corporations of 20 percent. Also, there is a provision that will allow you to expense 100 percent, with no limit, for the purchase of deductible property, excluding structures for the next five years. That’s the good news, the not so good news is we may lose our current interest deduction. This means you may not be able to expense or deduct the interest you pay on your line(s) of credit, or your floor plan. For some dealers this is a big deal. Big Buy-Here Pay-Here dealers with large lines of credit may no longer be able to expense the interest, and could very well increase their bottom line, causing the dealer to pay higher taxes even with the lower rate. Speaker Ryan indicated that a compromise may be a partial or tiered amount that is deductible, and there is a possibility that the interest deduction will remain intact for pass-through entities. Here is some really good news. A few months ago the CFPB passed a rule that was going to take away your ability to use arbitration agreements. The House of Representatives quickly
4 — Independent Dealer — November 2017
President Scott Lanier with Speaker of the House Paul Ryan, at NIADA PAC's Business Roundtable Discussion. passed a bill to repeal that ruling and it was waiting on the Senate to do the same. The prevailing wisdom was that the Senate did not have the votes to pass the bill and hence we would lose the arbitration agreement in our contracts. This would have been a win for the trial lawyers, and opened dealers up for class action lawsuits. However the Senate did vote, and the outcome was 50-50 with Vice President Mike Pence casting the deciding vote and passing the legislation to keep arbitration agreements. I guess that old saying “every vote counts” is true. If ever there was a time to be a member of your association, it is now! If you love the industry that takes care of you and your family, spend the .89 cents a day to protect yourself and family. At least give yourself a fighting chance against those that want to hurt you. Join today and back the association that has your back. Thank you. Scott Lanier FIADA President www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2017 — Independent Dealer — 5
EXECUTIVE DIREC TOR’S MESSAGE
One Thing... BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR
I
f I could ask for just one thing, it would be that you would be an ambassador for the industry. I would ask that you talk to your fellow dealers about being a member of the association. Share your experience and what you get out of being a member. Remember that FIADA provides representation, education and discounts for independent dealers. We make it easy for you to stay informed and stay abreast of the changes afoot. Keep in mind that as a member of FIADA you’re also a member of NIADA. What exactly do you get with your membership? REPRESENTATION: FIADA has a full-time lobbyist, former Secretary of State, Sandra Mortham. She provides a wealth of experience on the other side of the fence. She opens doors and makes sure our voices are heard. EDUCATION: If you had a chance to participate in the convention, you saw firsthand the top-notch education
FIADA has to offer. Based on the survey results, participants were overwhelmingly satisfied with the speakers and topics they heard. FIADA also offers online education free to members. NIADA has online programs and boot camps to help you with compliance and many other topics. DISCOUNTS: FIADA moved to hosting the coupons on our app to make it easier for dealers to use their coupons. I’d like to thank the member partners that offer discounts and benefits to members. They help FIADA to provide extra value to membership. Don’t forget to download the app to gain access to all these coupons. I congratulate those that choose to make the industry stronger. If each person just talked to one person about FIADA and how they need to belong, we could double membership.
Your fiada membership discounts: Download the FIADA app from the App Store or Google Play to get access to these member discounts: auction discounts at Manheim Auctions, Adesa, Charleston Auto Auction, Dealers Auto Auction, Orlando Auto Auction, Southeastern Auto Auction and Tallahassee Auto Auction. Advertising discounts at AutoShopper.com, AutoTrader.com, Carsforsale.com finance company coupons from AFC, Floorplan Xpress, AutoUse, Small Dealers Assistance payment/collections discounts with Howland International, Inc., Transfirst, Paymaxx Pro discounts on software from AutoManager.com, DealerCenter, Florida Dealer Consultants, Sys2K discounts on websites from Auction123, AutoShopper.com, Dealer Platform additional savings: Williams & Stazzone Car Rental Program; ARA GPS Systems; Counselorlibrary.com; ASC Warranty; UPS Shipping; Florida Auto Dealer School; Leedom & Associates; Martinez, Olson & Associates; Tax Refund Services, Inc.; CARFAX 6 — Independent Dealer — November 2017
www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2017 — Independent Dealer — 7
MEMBERSHIP NEWS
New Members
OCTOBER 2017
AAA AUTO SALES
PREMIER AUTO SOURCE
Fort White, FL Kerri Bradbury Sponsor: Dealers Auto Auction
Jacksonville, FL Kristen Hill Sponsor: FIADA
BEST CHOICE AUTO SALES & SERVICES INC
RANEY TRUCK SALES INC
Live Oak, FL Donna Hester Sponsor: FIADA
DAYTONA VALUE PRICED CARS LLC
Ocala, FL Daryl Nedelisky Sponsor: FIADA WEBBER MOTORS, LLC
South Daytona, FL Leonard Stanley Sponsor: Terry Myers
Jacksonville, FL Brian Webber Sponsor: Tom Bungay
GOOD GUYZ AUTO SALES
YODER & FREY AUCTIONEERS LLC
Hollywood, FL Evan Wiesel Sponsor: Manhiem MARTY'S AUTO SALES
Lake Butler, FL Paul Miller Sponsor: Dealers Auto Auction MY USA MOTORS
Brooksville, FL Raz M. Sponsor: FIADA ORLANDO PREOWNED
Orlando, FL Leonardo Braz Sponsor: FIADA
Newnan, GA Diana Rivera Sponsor: FIADA
Rejoining Members OCTOBER 2017
GATOR CITY MOTORS LLC Gainesville, FL Ard Heshmat Sponsor: Victoria Sams COURTESY AUTO CENTER Longwood, FL Mark Jones Sponsor: Terry Myers
Renewing Members 40+ Year Members ABC Autos, Inc. Wood Motor Company
OCTOBER 2017
Tampa, FL Fort Myers, FL
30+ Year Members America's Auto Auction Jacksonville 10+ Year Members Central Florida Used Car Mart Dealers Insurance Services, LLC Florida Auto Dealer School No. 1 Auto Sales, Inc. Pro-Power Auto Sales Company Xpress Finance, Inc. Under 10 Year Members A.R.A. GPS Systems, Inc. Auto Market of Florida Corp B & M Auto Sales LLC Dealers Auction X-change Financial Insurance Brokers International J J Kane Auctioneers Kathy's Kars Lobel Financial Mattas Motors MITS at CMI, LLC Skypatrol, LLC Southeastern Auto Auction Thompson Antique Muscle Car Outlet U-Pull-&-Pay Vehicle Clearing House Veneauto Cars Veros Credit
Jacksonville, FL Mascotte, FL Orlando, FL The Villages, FL Hollywood, FL Port Charlotte, FL Orlando, FL Newnan, GA Kissimmee, FL Newberry, FL Port Richey, FL Coral Gables, FL Maple Shade, NJ Saint Petersburg, FL Anaheim, CA Punta Gorda, FL Largo, FL Arlington, TX Savannah, GA Tampa, FL Cincinnati, OH Winter Garden, FL Gainesville, FL Santa Ana, CA
SAVE THE DATE! FIADA and NIADA are teaming up for a joint convention and expo in 2018. Join us for nextlevel education, events and entertainment.
June 18-21, 2018 Orlando, FL 8 — Independent Dealer — November 2017
www.fiada.com
PAIDwww.fiada.com ADVERTISING
November 2017 — Independent Dealer — 9
BACK TO BASICS
Reporting Guidance on Garage Liability Renewal BY TERRY MYERS
Dealers must maintain their Garage Liability policy without lapse, as well as make sure it has been recorded with the DMV. Here are some tips on making sure you do.
D
ealer renewal requirements include maintaining the Garage Liability policy 24/7. Missteps occur many times because, unlike the Bond which runs concurrently with the dealer licensing period of May 1- April 30, it is quite common for the Garage Liability policy to come due during any month of the year. This makes it easier for the dealer to ‘forget’ this obligation. The potential fine of $500 for not getting this information into the Bureau of Dealer Services can be a
harsh reminder to mark the calendar to assure this does not happen to you. Hints of how to professionally manage this might include: •
Place a reminder in your calendar to renew your policy.
•
Place another reminder in your calendar for the 15th of month it renews, to send required notification to your Bureau of Dealer Services.
Another challenge dealers share with me, is getting it to the Department and being able to prove you sent it. So, I posed the following question to Region VI Administrator, Randy Loso: “What is the official process for getting the proof of the renewed Garage Liability to the regional offices in such a way that the dealer can be confident it reached the desired destination?” His response follows: Terry here’s my best shot; 1. As you know, the dealer must
GOT A TECHNICAL QUESTION AND NEED SOME ADVICE?
Use the R.E.D. Phone!
FIADA is your number one source for advice and information. Technical questions, legal questions, regulatory questions...bring them on! Our network of industry veterans, professionals and consultants can help you find the answers you are looking for. Members can call or text us anytime at (800) 237-0448 or access our online resources 24/7 at www.FIADA.com. It pays to be a member!
REPRESENTATION | EDUCATION | DEDICATION—FIADA! 10 — Independent Dealer — November 2017
www.fiada.com
3. 4.
5.
6.
Good advice is good advice. Articles are the opinion of the author and are not intended to be legal or accounting advice. The intent is to share thoughts and concepts that help the business owner(s) find new and perhaps revisit, ways to be as successful as they are capable of being. Terry can be reached at (727) 804-7375. Email: tmyers@ floridaautodealerschool.com. Feedback is appreciated and encouraged. Terry LB Myers, author, lecturer, FIADA instructor, FADS owner/instructor.
www.fiada.com
PAID ADVERTISING
2.
provide the department with proof of a current valid policy. It is the dealer’s responsibility, not their insurance agent. The preferred method to provide us the proof is by email: glibondrenewal@flhsmv.gov In case there is an issue with the email or human error upon entry; a. Keep proof that the email was sent and make sure the proof indicates the policy document was attached. b. Set a reminder to verify the update occurred. Email the regional office and ask this, keep the email; region*@flhsmv. gov (Insert region 1-10 at *) c. For other than email; keep proof the document was sent. This would be certified mail that shows what was sent i.e. it could have been anything, specify GLI/Bond. Bottom line – prove the document was sent. We have people come in saying they sent the document and the email shows no attachment, the GLI cert was wrong and returned for correction and never corrected FINALLY – the department typically, but is not required to, sends up to 3 emails requesting proof of GLI/Bond. Answer the email. If we are sending this and you submitted, now is the time to fix it. Don’t ignore the email because you sent it. This email is being sent because our database shows no document was received. Good Email address, read it, reply to all correspondence.
It’s time to change your approach to F&I compliance WITH THIS SPECIAL OFFER...
Subscribe to Spot Delivery and, at no additional charge, we will send you a copy of your choice of any of our legal compliance books, CARLAW, CARLAW II Street Legal or CARLAW III Reloaded. To order, visit us at www.counselorlibrary.com/offer/spot or call us at 877-464-8326. Also follow us on:
November 2017 — Independent Dealer — 11
D E A L E R O P E R AT I O N S
Do or Do Not. There is no Try. BY KENNY ATCHESON
Are you ready to make things happen in 2018? It will take preparation and belief that you can do it, not just hoping you will.
Y
oda, the great philosopher and Grand Master of the Jedi Order during the waning days of the Galactic Republic, uttered these words to young Luke Skywalker: "Do or do not do. There is no try." Although Yoda didn’t completely explain himself to Luke, I believe he meant that it’s better to plan for success — not “try to succeed.” Are you planning to succeed in 2018 as 2017 draws to a close? If “yes,” then you are likely taking closer looks at your processes, operations, and marketing. You may look at them with a critical eye, hoping to find areas to improve. That’s smart. The challenge is in how you go about analyzing those areas of your company. If you already are or are planning to review your organizational successes and lessons from 2017 with an in-house team, consider the following:
•
•
•
If there are things in your organization that need to be tweaked, and those things were the brainchild of an in-house team member, they may be quick to defend their “baby.” They may even offer false data (on purpose or by accident due to bias.) Even if your team believes that they can safely take a critical look at their own ideas, doing so may still not be effective. Best-selling author Brian Tracy knows how to spell, yet he has an editor. It’s tough to find your own mistakes even when honestly looking for them. If something was your idea, your team may not be quick to point out its deficiencies. Nobody wants to
put down the boss’ ideas no matter how much bold honesty is requested. Planning advertising/marketing for 2018 will discover that added challenges are looming: 1. Marketing changes so fast that it is hard to keep up. Your team may be unaware of missed opportunities. 2. Some dealers don’t have experts in marketing success. They have media salespeople to sell them on new 2018 stuff. 3. Some dealers don’t have an in-house person with the ability to analyze every new marketing opportunity. The same person takes pictures and uploads inventory, orders print materials, and wears a number of hats. They may have intellectual ability—they just don’t have time. As you look at 2017’s decisions and prep for 2018, remember what author Jim Jackson wrote in Power to Change, “…you have positive or negative Yodas in your life.” People around you who speak into your life and business can give confidence or take it away. Sometimes your own self-talk can get in the way. When evaluating a new marketing opportunity, your confidence may be swayed by how well you understand the opportunity. A savvy marketing expert should be able to put a new opportunity into words that you can easily understand. If you’ve read this article and have decided not to make any changes for 2018, read what Jackson writes in his book: “You are right where you have chosen to be.”
Kenny Atcheson is the founder of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. Kenny offers private consulting and he teaches workshops and speaks at conventions and 20 Groups. His company offers several marketing and advertising programs which include Private Consulting, a Referral Results Training Program, a Newsletter Program, a Feedback & Review & Complaint Management System, Google Pay-Per-Click Management, Facebook Pay-Per-Click Management, Direct Mail Campaigns, Copywriting, and more. His website can be found at www.DealerProfitPros.com
12 — Independent Dealer — November 2017
www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2017 — Independent Dealer — 13
Convention Sponsors
Thank you to our convention sponsors.
MARQUIS
Convention
Recap & Replay
GOLD paymaxx
SILVER
BRONZE
PROCESSING SOLUTIONS
A quick recap of some of the survey results and feedback from our convention attendees: •
100% of respondents reported being very satisfied or somewhat satisfied with the convention.
•
79% were very satisfied with the Omni Orlando Resort at ChampionsGate
•
93% were either very or somewhat satisfied with the speakers and panels
•
86% were very satisfied with the location of the convention (Orlando)
We also received many great suggestions on sessions/ workshops attendees would like to see at convention, along with potential changes for future conventions All of the feedback will be taken into consideration as we plan conventions and other events, such as Town Hall Meetings, in the future. Thank you for the input! AWARD WINNERS: Congratulations to our 2017 award winners: Quality Dealer of the Year - Steve Zimmerman, Good Rides, Inc. Person of the Year - Frank and Gina Fuzy, Century Motors of South Florida
ADDITIONAL SPONSORS
Auction Person of the Year - Dennis Cook, Copart Enjoy these convention photos we have put together on pages 16-18. If you weren't able to attend this year's convention, plan on making it to the joint FIADA/NIADA convention in 2018 in Orlando. Get the save the date details on page 8 and watch for more information in future issues of Independent Dealer.
14 — Independent Dealer — November 2017
www.fiada.com
www.fiada.com
PAID ADVERTISING
16 — Independent Dealer — November 2017
www.fiada.com
www.fiada.com
November 2017 — Independent Dealer — 17
18 — Independent Dealer — November 2017
www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2017 — Independent Dealer — 19
SOCIAL MEDIA MARKE TING
5 Facebook Tips Guaranteed to Generate More Leads Social Media offers many marketing options for little or no cost, but the key is understanding how to use it. These five tips will help you get the most out of your Facebook presence. BY RICH BOLANDI
T
oday is the golden age of Facebook marketing. Depending on how long your dealership has been active in digital marketing, you might remember the days of nickel clicks in Google. Unfortunately, those days are way behind us, but now Facebook is emerging as a gold mine that dealerships can use to get more leads and sell more cars. The trick is to strike while the iron is hot. But because advertising in Facebook is a whole new world, it’s important that you get ahead of the game and learn the tips and tricks now that will make Facebook work for you and your dealership.
Know What You’re Trying To Accomplish
Before you start advertising in Facebook, it’s imperative to know what your goals are and which of Facebook’s objectives are most likely to help you achieve those goals. Are you looking to generate leads? Are you looking to brand your dealership and get your name out there? The first step to any great advertising campaign is to make sure you have a solid goal and that you are measuring your results in terms of that goal. 20 — Independent Dealer — November 2017
Otherwise you’re just throwing money against the wall and hoping for results. Luckily, Facebook has a comprehensive list of objectives that you can choose from in order to get the desired outcomes you’re looking for. For instance, you can choose lead ads, offer ads or brand awareness ads, just to name a few. Aligning your goals with the correct objective is integral to the success of your Facebook campaigns.
Know The Difference Between Boosting Posts And Facebook Ads
We advise a lot of dealers on various aspects of their marketing, but one of the most common questions that we get when we start to talk about advertising in Facebook is what’s the difference between boosting a post and running an ad in Facebook. It’s easy to see why there might be confusion here, especially since both activities require you to invest money with Facebook. But misunderstanding the two opportunities can have a major impact on the results you see from your Facebook efforts. A lot of dealers who are doing
their own advertising in Facebook, mistakenly assume that boosting a post is the same thing as running an ad, but they are actually two different things. While both activities require some advertising spend, when you boost a post, it starts by going out to your social network, then depending on your spend, you can expand the radius so the post will also reach the friends of people who liked your page or who demonstrate specific behaviors within a finite radius. But where boosted posts really fall short is that they are unlikely to get you real, actionable lead data. You might experience more social engagement with a boosted post, but if you start running a Facebook ad campaign, you can generate leads on a large scale. Now these ads appear organically right in users’ Newsfeed, but instead of just getting a like, you can come away with a real lead.
Know Your Target Audience
One of the most powerful tools Facebook has to offer is the ability to build and target a specific audience. There are lots of different audience options within Facebook. One of the first questions we ask a dealer when we start working with them is about their geographic location. In www.fiada.com
other words, how far do you think a person would drive to buy a car from your dealership? Then, we use this information to target people who live in that area. After you set your geotargeting, you can also narrow your audience by age, gender and other distinguishing factors like interests and behaviors. But targeting in Facebook doesn’t stop there. If you have a list of past customers who have bought from your dealership, you can upload that into the back end of Facebook and create a “Lookalike Audience” which is an audience that demonstrates the same kinds of behaviors and interests as those people who just bought from you. You can also use the list that you’ve just uploaded to create a “Custom Audience,” which can be really valuable if you have a in-house service department because then you can promote service specials to them now or buy-back specials later down the road.
Retargeting is an excellent and usually low cost way to leverage Facebook’s platform to generate more leads or re-engage past leads. Retargeting uses cookies to track people who have visited your site but didn’t become a lead. Over time you build your list using these cookies. Then you can serve these people different offers through Facebook. These campaigns are usually low cost because it’s such a small audience, but they’re incredibly effective because they allow you to have multiple touch points with a prospect, meaning you can serve them different offers until one speaks to them and gets them to convert. Luckily, the ads are shown right in their Newsfeed, which feels more organic and less like they’re being marketed to. Continued on page 23. www.fiada.com
PAID ADVERTISING
Know How To Leverage Retargeting
November 2017 — Independent Dealer — 21
SUPPORT THE FIADA PAC Your PAC Contribution helps spread awareness and gain support of issues affecting independent dealers in the state’s capitol. There’s still time to get your contribution in before the session starts if you make it today.
CONTRIBUTION INFORMATION Contributor’s Name:_________________________________________________________________________ Dealership/Company:________________________________________________________________________ Street Address, City, State, Zip:____________________________________________________________________
q
Check q
q
$500
Credit Card (one time contribution) q q
Credit Card Information:
$250 q
$100
q Visa
q
q
MasterCard
Monthly Credit Card Contribution (until cancel)
$50 q
q
$25
q
American Express
_________ q
Discover
PAYMENT INFORMATION Name on Card: Card number: Exp Date:
Sec. Code:
Billing Phone:
Billing Address Authorized Signature
Make your check payable to FIADA-PAC and mail to: FIADA • 1840 Fiddler Court • Tallahassee, FL 32308 If making payment via credit card, you may fax your contribution form to 850.385.3251
22 — Independent Dealer — November 2017
www.fiada.com
FIVE FACEBOOK TIPS continued from Page 21.
Retargeting is an extremely powerful tool and it’s something that every advertising campaign should have, whether you’re working in Facebook or Google. Regardless of the platform, you should have a separate campaign built out specifically for retargeting needs. Make sure this is something you’re considering when setting up your own campaigns or a conversation you have with your provider if you’re signing up with an agency.
Know Your Cost Per Car And Establish Your Budget
Ultimately, one of the biggest mistakes we see dealers make is approaching Facebook as a replacement for other forms of marketing. But here’s the truth, if what you’re doing is already working, then don’t stop doing it. Instead, look at Facebook as an additional source of opportunities. That means if you want to try Facebook, first determine how many additional cars you would like to sell and then use some additional ad
spend on testing Facebook. The worst thing you can do is take money away from an advertising source that IS WORKING and apply it to a source that may or may not work for you. Regardless of what size dealership you have, advertising on Facebook can present a big opportunity for growth. If you don’t pay for ads, there are a lot of opportunities on the social side of Facebook. You might be able to get more likes, more post shares, more of these engagement metrics, but ultimately, if you want to generate real leads that are likely to convert to sales, you’re going to want to participate in paid Facebook advertising. Gravitational Marketing's Director of Digital, Rich Bolandi, leads a team hyper-focused on driving more traffic and lowering cost-per-lead. Visit www. gravitationalmarketing.com for more information.
PAID ADVERTISING
A lot of dealers ask us how much they should budget for advertising in Facebook, and the answer is that you should base your budget on how many cars you want to sell; however, that requires you to know what your average cost per car is. If it’s costing you $500 in advertising to sell a car
right now, then you can assume that if you spend $2000 in Facebook, you should sell at least 4 cars off of that spend. You might sell more than that, but that’s the drop-dead minimum. So test with that and see if it delivers the ROI you’re looking for. Really, it all comes down to how many cars you're looking to sell and then work backwards from there, applying your cost per car.
www.fiada.com
November 2017 — Independent Dealer — 23
B U S I N E S S O P E R AT I O N S
Three Ways to Guard Your Dealership Assets
lifetime gift tax exemption (or pay gift taxes) on the transfers. Plus, the assets, along with any future appreciation on them, are removed from your taxable estate.
You have worked hard to build a successful dealership. Make sure you protect your assets to ensure their safety.
Once transferred, though, you won’t have access to the assets. And there’s a risk that the beneficiary will take out the funds during the withdrawal period.
BY THANEY & ASSOCIATES, CPA
An Offshore Trust
Y
ou’ve worked hard for years to make your dealership a success, and you don’t want an event like an adverse lawsuit settlement to gobble up your assets. Conversely, in case your business fails, you don’t want creditors wielding claims on those assets.
There are some drawbacks. Your franchise agreement may restrict transferring ownership interests in your dealership operations. Also, you’d need to be cautious when signing bank or creditor guarantees — they could undo the FLP’s protective quality.
Not to worry: You can take proactive steps to protect what’s yours. Consider these options.
A Crummey Trust
A Family Limited Partnership
One asset-protecting vehicle worth exploring is a family limited partnership (FLP). In a typical scenario, you transfer assets to the FLP, and as its General Partner you have discretion over how the assets and income are distributed. You then gift or sell limited partnership interests to your children or other family members. A common application is to transfer assets such as marketable securities and the real estate on which your dealership is located to an FLP. The agreements are typically written with asset protection in mind, for the purpose of keeping the underlying assets safe from creditors. Also, if the FLP is properly structured and administered, the assets gifted or sold will be removed from your taxable estate. And transfers of FLP interests might be eligible for minority interest and other discounts. 24 — Independent Dealer — November 2017
You can set up a trust in a foreign country with more favorable asset protection laws than in the United States. Offshore trusts are typically funded with cash or readily movable securities, rather than real estate. Bear in mind that even if the assets are offshore you are liable for paying taxes on the trust’s income. And the trust assets can still be subject to gift or estate taxes.
Another vehicle to consider is a trust — in particular, a Crummey trust. If you gift assets to someone else, such as your children or other family members, the assets will, generally, no longer be vulnerable to your creditor claims. But you may not want to gift assets outright. Instead, you could transfer those assets to trusts for your family members. This allows you to retain a degree of control over their access to the funds and provide a measure of protection against their creditors.
Offshore trusts offer protection from U.S. legal judgments and discourage litigation because of the expense and difficulty in pursuing a case under foreign jurisdiction.
Normally, gifts to trusts aren’t eligible for the $14,000 (per recipient) annual gift tax exclusion, because transfers must be of a “present interest” (meaning the recipient has immediate access to the funds) to qualify. But in a Crummey trust, after each gift to the trust is made the beneficiaries are allowed — for a limited time — to withdraw the funds.
Stuff Happens
This withdrawal right allows the gift to qualify for the annual exclusion. You don’t have to use up any of your
On the downside: The costs to set up and administer offshore trusts can be high, making them a sensible choice only for individuals with sufficient net worth and risks of claims and lawsuits to warrant the expense. Because these trusts often face IRS challenges, be sure to get solid legal and tax advice. No business owner thinks a life’s work of asset-building could be destroyed by a legal settlement or creditor payments. But things like that do happen. Make sure you are prepared if such events come your way. Thaney & Associates Certified Public Accountants have offices in New York and Florida. Call them at 888-2528769, visit www.ThaneyCPA.com or E-mail: info@thaneycpa.com for more information. www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2017 — Independent Dealer — 25
LE T TER TO THE EDITOR
The Debate Continues: Government Office vs. Private Tag Agency BY THE HON. SHARON W. JORDAN
I
n an article recently published by Independent Dealer in August of 2017, Jennifer Finlay, a sales manager for a private tag agency, wrote a scathing critique of government service provision and urged Florida’s car dealers to avoid Tax Collector offices and use private tag agencies instead. In a self-serving manner and with little to no regard for facts, Ms. Finlay paints a false dichotomy between the private and public sectors by arguing that Tax Collectors are distinct from private tag agencies and that the private sector is superior in areas such as customer service, convenience, and efficiency. Ms. Finlay lacks a fundamental understanding of the relationship between private tag agencies and Tax Collectors and blithely ignores what has long been recognized in Florida public policy: when public servants and their private tag agents cooperate together, customer service, efficiency, transparency, and convenience reign supreme.
Indeed, Ms. Finlay paints a false dichotomy between Tax Collectors and private tag agencies. Private tag agencies are agents of Florida’s Tax Collectors. As stated in a January 2010 OPPAGA report: “Dealers statewide may use private tag agencies . . . to process title and registration transactions. These agencies are authorized by those county tax collectors to process title and registration applications . . .” Office of Program Policy and Government Accountability Report 10-02 Motor Vehicle Electronic Filing System is Beneficial But Stronger Oversight is Needed. A principal-agent relationship is an arrangement in which one entity (Tax Collectors) legally appoints another (private tag agencies) to act on its (i.e. the Tax Collector’s) behalf. In a principal-agent relationship, the agent acts on behalf of the principal and should not have a conflict of
Tax Collectors across the state contract with private tag agents in order to carry out titling and registration services with a focus not on profit, but on convenience and transparency.
Long ago, the Florida Legislature, as a matter of sound public policy, appointed Tax Collectors as agents of the Florida Department of Highway Safety and Motor Vehicles to oversee and perform titling and registration services. The intent of the Legislature is that the “provisions of [titling and registration law] be implemented in such a manner that the convenience of the applicant is the first consideration.” Moreover, the Legislature has made clear that: “all services affecting motor carriers be consolidated in order to . . . achieve maximum efficiency in registration, permitting, and safety programs administered by this state. In order to achieve this goal, Florida must join the cooperative effort.” The essence of the law is that the government and private sectors must cooperate together to achieve efficiency, transparency, and high levels of customer service. 26 — Independent Dealer — November 2017
interest in carrying out the act. When a dealer sends work to a private tag agency the work is being sent to an agent of the Tax Collector. Tax Collectors across the state contract with private tag agents in order to carry out titling and registration services with a focus not on profit, but on convenience and transparency. Collectors have vast experience on the front lines in serving the public to whom they are directly accountable. Collectors are required by law to protect sensitive information of citizens and offer a wide array of convenient services. Is it really a bad thing that a citizen Continued on page 29 www.fiada.com
PAID ADVERTISING
Insurance and bonding specialists for the auto industry for over 30 years
www.fiada.com
November 2017 — Independent Dealer — 27
LEGAL ROUND-UP
A Look At Current Legal Issues BY THOMAS B. HUDSON AND NICOLE FRUSH MUNRO, HUDSON COOK, LLC
A monthly collection of selected legislative and regulatory highlights, and a recap of some of the many auto sale and financing lawsuits followed each month. FEDERAL DEVELOPMENTS FAQ Help from the FTC On September 26, in response to a request from the National Automobile Dealers Association, the FTC issued guidance to auto dealers answering frequently asked questions about compliance with the revised Used Car Rule and the revised Buyers Guide. The FTC revised the Used Car Rule in November 2016. The guidance notes that additional information about complying with the Used Car Rule can be found in the FTC’s Dealer’s Guide to the Used Car Rule (https://www. ftc.gov/tips-advice/business-center/ guidance/dealers-guide-used-car-rule) and by visiting the FTC’s webpage for auto dealers. Ten-hut! On September 25, the FTC launched a web page highlighting its new Military Task Force, aimed at identifying the needs of military consumers and developing initiatives to empower servicemembers, veterans, and their families, including through law enforcement actions. The Task Force, a cross-section of agency representatives, is part of the FTC’s effort to provide resources for the military community. In 2016, there were more than 100,000 consumer complaints from servicemembers, their dependents, military retirees and veterans, according to the FTC’s data. About two-thirds of the complaints were from retirees and veterans. Top complaints by category were impostor scams, identity theft, and debt collection. For more information, visit: ftc.gov/militarytaskforce 28 — Independent Dealer — November 2017
DOJ Announces SCRA Enforcement Actions On September 18, the DOJ announced that it obtained a $907,000 settlement with CitiFinancial Credit Company, as successor in interest to CitiFinancial Auto Corporation, resolving allegations that it violated the Servicemembers Civil Relief Act by repossessing vehicles it allegedly knew were owned by protected servicemembers without first obtaining required court orders. The settlement covers vehicle repossessions between 2007 and 2010. The SCRA requires a court to review and approve any repossession if the servicemember obtained financing for the vehicle and made a payment before entering military service. The court may then delay the repossession or require the creditor to refund prior payments by the servicemember before repossessing. The court may also appoint an attorney to represent the servicemember, require the creditor to post a bond with the court, and issue any other orders it deems necessary to protect the servicemember. DOJ alleged that by failing to obtain court orders before repossessing vehicles owned by protected servicemembers, CitiFinancial denied servicemembers their right to obtain a court's review of whether their repossessions should be delayed or adjusted to account for their military service. On September 27, the Justice Department announced that Westlake Services LLC and its subsidiary, Wilshire Consumer Capital LLC, have agreed to pay $760,788 to resolve allegations that the companies
violated the SCRA by repossessing 70 vehicles owned by servicemembers without first obtaining the required court orders. Westlake, d/b/a Westlake Financial Services, is an auto finance company specializing in buying and servicing subprime and near-subprime retail installment sales contracts. The subsidiary, originates and services vehicle title loans. During its investigation, DOJ found that Westlake and Wilshire had failed to adopt policies and procedures necessary to ensure that their motor vehicle repossessions complied with the SCRA. The agreement requires Westlake and Wilshire to pay $10,000 to each of the 70 affected servicemembers, plus any lost equity in the vehicle with interest. Westlake and Wilshire also must repair the credit of all affected servicemembers, pay a $60,788 civil penalty to the United States and determine, in the future, whether any vehicle it plans to repossess is owned by an SCRA-protected servicemember. If so, Westlake and Wilshire will not repossess the vehicle without first obtaining a court order or valid waiver of SCRA rights. The agreement also provides that all eligible servicemembers will receive the benefit of the SCRA’s six percent interest rate cap on their auto loans. Tom (thudson@hudco.com) and Nikki
(nmunro@hudco.com) are partners in the law firm of Hudson Cook, LLP. For information, visit www.counselorlibrary. com. Copyright CounselorLibrary. com 2017, all rights reserved. Single publication rights only, to the Association. (2/16). HC# 4848-8454-3277. www.fiada.com
TAX COLLECTORS AND PRIVATE AGENCIES continued from Page 26.
is able to handle a wide-variety of services at their friendly local Tax Collectors office? Tax Collector costs (fees?) are set out in the Florida Statutes for the whole world to see. The only focus of Tax Collectors is public service. Tax Collectors have a long history of working closely with car dealerships to ensure that motor vehicles are accurately titled and registered in an efficient and affordable manner. Dealers are not just “one of the hundreds of customers in the lobby,” but are valued constituents being served in a professional and accountable manner.
Sharon W. Jordan is the elected Tax Collector for the Suwannee County political subdivision and current president of the Florida Tax Collectors Association, the state-wide association of Florida’s 67 Tax Collectors. Inquiries can be sent to info@ floridataxcollectors.com.
PAID ADVERTISING
There are many benefits to Tax Collectors working with private tag agencies, but those benefits quickly disappear if private tag agencies attempt to create an adversarial relationship. It is appalling that someone so ill-informed would
belittle elected public servants who are directly accountable to the public. Why try to drive a wedge between Tax Collectors and private tag agents? Surely customer retention is important to private tag agencies, but is it really more important than that fundamental democratic tie that binds Tax Collectors to their constituents? What is best for Florida dealers and the car buying public alike is for Tax Collectors and their private tag agents to work together as a team to serve Florida in a professional, accountable, and transparent manner. Ms. Finlay, can’t we all just get along in order to put Floridians first?
PAID ADVERTISING
www.fiada.com
November 2017 — Independent Dealer — 29
INDUSTRY NEWS NIADA Applauds Senate Action on Arbitration Rule On Wednesday, November 1, President Donald Trump signed into law House Joint Resolution 111 disapproving the Consumer Financial Protection Bureaus anti-consumer arbitration rule. The President's action follows a dramatic Senate vote last week where Vice President Mike Pence broke a 50-50 tie to send the measure to the President's desk. With the President's signature, the CFPB's rule prohibiting business from using arbitration agreements with class-action waivers is no longer in effect. Steve Jordan, CEO of the NIADA praised the White House and Congress for putting the interests of consumers ahead of class action lawyers. "We are pleased the Administration and majority of Congress recognized the fallacy behind the CFPB's illconceived arbitration rule and took action to defend the interests of the very consumers the bureau is supposed to protect," Jordan said. "This rule was nothing more than a boon to class action lawyers levied on the backs of America's hard working consumers." "Arbitration has proven to be a faster, less expensive and more effective means of resolving consumer disputes than class-action lawsuits. And consumers who receive an award in arbitration almost always receive more than they would in a class-action lawsuit, a point proven by the CFPB's own research." NIADA and its membership actively advocated against the rule – including at its recent National Policy Conference
- encouraging the Congress to take the action voted on yesterday. The rule, which took effect Sept. 18, was meant to steer more consumer disputes into class-action litigation rather than arbitration, which benefits class-action lawyers at the expense of the consumers especially those who are the most-credit challenged. According to the study on which the CFPB said it based the rule, 87 percent class action cases provided no benefit to the consumers involved, and in the ones that did, the average payout was a mere $32. The trial attorneys, meanwhile, recouped millions of dollars in fees. Financial relief for consumers in arbitration cases averaged more than $5,000. And arbitration is up to 12 times faster and is less expensive than litigation. NIADA Senior Vice President of Legal and Government Affairs Shaun Petersen praised the NIADA membership for heeding the call to action. "We applaud the work of the NIADA membership for contacting their Congressional offices, particular their Senators, to voice support for the resolution to kill this ill-conceive rule," Petersen said. "Whether at the National Policy Conference or simply calling their elected officials' offices, NIADA members made their voice heard to ensure consumers will continue to reap the benefits of arbitration while preventing the inevitable increase in credit costs that would have come."
House Republican Leadership Released Their LongAnticipated Tax Reform Bill NIADA is currently reviewing the 429 page bill and analyzing its particulars, but of note to independent dealers are the following proposals: • Reduce highest pass-through rate to 25% with important limitations. Business owners would choose between: (1) The "70/30 proposal" where 70% of income is considered wage income -- which would be taxed at the individual tax rate -- and 30% as business income, which would be taxable at the 25% rate; or (2) a formula based on the facts and circumstances of their business to determine a capital percentage of greater than 30 percent. • Maintain 100% deductibility of net interest expenses for businesses with average gross receipts of $25 million or less. For businesses with average gross receipts above 30 — Independent Dealer — November 2017
• • • • • •
$25 million, interest deductibility is disallowed for expenses in excess of 30% of the businesses' adjusted taxable income. Reduce the corporate tax rate from 35% to 20%. Repeal the Alternative Minimum Tax Repeal the estate tax after 2023. Until then, the exemption to $11 million for individuals and $22 million for married couples. Reduce the number of individual tax rates to 4: 12%, 25%, 35%, 39.6%. Raises the standard deduction for individuals to $12,000 for individuals and $24,000 for married couples. Repeals the State and local tax deduction except for property taxes (up to $10,000). www.fiada.com
2017-2018 FIADA EXECUTIVE COMMITTEE:
SCOTT LANIER, CMD President Credit Cars Orlando, FL 32808 (407) 295-6211
FRANK FUZY
LISA COMPAGNO
Chairman of the Board Palm Tree Auto Sales Stuart, FL (772) 288-2099
GEORGE HICKEY
STEVE MARBAIS, CMD
Regional Vice President Bond Auto Sales, Inc. Tampa, FL 33604 (813) 238-7478
Regional Vice President Marbais Enterprises, Inc. Ocoee, FL (407) 877-7422
JENAY RHOADS
PHIL RISLEY
Secretary Florida Auto Exchange Co., Inc Dunedin, FL (727)-796-2886
Treasurer Cars & Credit of Jacksonville Jacksonville, FL (904) 616-4074
BRANDI NOEGEL
JIM WINTERICK, SR.
Regional Vice President Noegel’s Auto Sales Starke, FL (904) 964-6461
Chairman of the Board Gulfstream Motor Credit Miami, FL (305) 253-2335
PAID ADVERTISING
Regional Vice President Century Motors of S. Fla., Inc. Pompano Beach, FL 33064 (954) 785-0369
BRAD JOEL
Senior Vice President Splish Splash Auto Sales Princeton, FL 33032 (305) 258-1191
www.fiada.com
November 2017 — Independent Dealer — 31
MANHEIM FLORIDA ALWAYS NEARBY.
Manheim Daytona Beach 1305 Indian Lake Road Daytona Beach, FL 32124 386.255.2500 Sale: Wed 3 PM Total Resource Auction every Wed 2:30 PM Manheim Fort Lauderdale 5353 S State Road 7 Davie, FL 33314 954.791.3520 Sale: Fri 9 AM Total Resource Auction Tue 9 AM Ford Open Sale every other Fri Manheim Fort Myers 2100 Rockfill Rd Fort Myers, FL 33916 239.476.9800 Sale: Wed 4 PM Total Resource Auction every other Wed 3 PM Specialty Sale last Wed monthly 2 PM Galloway Direct Off Site Sale 2nd & 4th Tues 12 PM Manheim Jacksonville 10817 New Kings Rd Jacksonville, FL 32219 904.768.9981 Sale: Thurs 1 PM Total Resource Auction every Thurs 12:40 PM Manheim Lakeland 8025 N State Road 33 Lakeland, FL 33809 863.984.1551 Sale: Wed 2 PM Specialty RV/Boat Sale 1st Wed monthly 9 AM
Manheim Orlando 11801 W Colonial Dr Ocoee, FL 34761 Sale: Tues 9 AM Highline Exotic Sale Kicks off every 4th Tues 11 AM with Mercedes & BMW Chrysler Closed Factory Sale bi-weekly on Mon 12:30 PM GM Closed Sales bi-weekly on Mon 1 PM Nissan Infiniti Closed Sale 1st Wed monthly 9 AM Manheim Palm Beach 600 Sansbury Way West Palm Beach, FL 33411 561.790.1200 Sale: Thursday 9 AM Exotic Highline Sale every 4th Wed 9:30 AM Manheim St Pete 14950 Roosevelt Blvd Clearwater, FL 33762 727.531.7717 Sale: Thurs Weekly 2:30 PM inops Regular Sale 3 PM Manheim Tampa 401 S 50th St Tampa, FL 33619 813.247.1666 Sale: Thursday 9 AM Total Resource Auction Mon 9:30 AM at Cone Road location Ford Factory Sale every other Wed 10 AM Manheim Caribbean 1050 Carretera 865 KM 4.7 Bo. Candelaria Toa Baja, PR 00949 787.261.7300 Sale: Thurs 12 PM Salvage Sale Thurs 11 AM
32 — Independent Dealer — November 2017
PAID ADVERTISING
Manheim Central Florida 9800 Bachman Rd Orlando, FL 32824 407.438.1000 Sale: Wed 9 AM Total Resource Auction Wed 8:30 AM “Manheim Imperial Nights” Sale Tues 4 PM Specialty Heavy Truck & Equipment Sale Second Thurs Monthly at 10 AM
www.fiada.com