Fiada june 2k18 web

JUNE2018

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Information and Insight for Florida Used Car Dealers

FIADA Qu ality Deale r of the Yea r will be announce d June 19 Page 26

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June 2018 — Independent Dealer — 1

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2 — Independent Dealer — June 2018

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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 Events 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.

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Contents June 2018

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

Keys to Insurance Is your insurance agent the right one for you? David Metcalf shares the questions you should ask to be sure.

12

Back to Basics When are odometer readings exempt from disclosure? Terry Myers has the answer and some dos and don'ts to consider.

14

Nolden vs. AutoShow FIADA's Attorney of Record Rob Sickles just won a case for a member that will help independent dealers and finance companies.

20

Remembering Bill Fenton FIADA's Honorary Life Director Bill Fenton was an important member of the independent dealer community and will be missed by all.

22

Three Secret Success Tips for Car Dealers Mobile Strategy If you don't have a quality mobile web site, or aren't producing effective mobile advertising, then you might as well forget about connecting with today's car buyers. Here are some best practices to stay relevant.

26

Membership News

28

The New DOL and NLRB and What It Means for Employers There has been a pro-employer shift at the Department of Labor and National Labor Relations Board under the Trump Administration. Lisa Griffin Hodgdon and Ginger Barry Boyd overview the changes.

30

Industry News

June 2018 — Independent Dealer — 3

FROM THE PRESIDENT

Are Hybrids and Electric Vehicles the Next Big Thing?

BY SCOT T LANIER, CMD, FIADA PRESIDENT

T

he future of our industry: Have you sold many hybrids or electric vehicles? If not, what’s holding you back? We see them sold everyday at the auction and it seems to me that their value is in line with that of fuel vehicles. I think that, as independent dealers, we need to be thinking about our future. Not only about our future, but our present as well.

We all struggle to get inventory, so maybe it is time to seek not only other sourcing but open up to other types of vehicles, meaning hybrids or EVs. As of last February Toyota had sold over 10 million hybrids and that is just the beginning. There is currently a worldwide push to develop, build, and sell millions more hybrids and EVs in the coming years, even though most OEM’s lose money on these vehicles.

The automotive industry forecasts that by 2040, 40-50% of all vehicles sold will be either hybrids or EVs. Currently the market share for these vehicles is only 3 percent. The manufacturers have said they will spend 100 billion dollars on research and development by 2030. Ford alone plans to spend 11 billion in electrification. Since we have projections from GM, Ford, VW, Nissan, Tesla, and others, wouldn’t it be in our best interest to start planning on selling these vehicles now? We know it’s coming.

As the manufacturers spend more and more on the technologies that are incorporated into these vehicles the costs of repairs associated with Hybrids and EVs are going to diminish considerably, especially the cost of the battery packs. It is estimated that in the next 7 years the cost of new battery packs will be 37% cheaper. As more of these vehicles are sold and are on the road, we know from experience that the aftermarket production of parts will be more available and more cost efficient.

As I travel, one thing that has been an eye opener is, there are so many hybrids in the taxi lines. It seems like nearly every vehicle is a hybrid. So with that in mind, these vehicles are highly reliable. It’s like they have taken the place of the Crown Victoria and the Lincoln Town Car, which were once the work horses in the stable of all taxi companies. But not anymore. So, if you are a BHPH dealer, what is it that you really look for? Dependability of course, vehicles that are less likely to break down. If they tough enough to be taxis, I think they are well suited for our customers. If you are a retail dealer, there is a large population that is looking to burn less fuel, be a better steward of earth resources, and reduce their carbon footprint. So, why not it be your dealership to provide that vehicle for them?

I think the main downside currently is the servicing issue. I believe the fear of batteries and having a technician injured on the job may be one reason we are not selling more hybrids and EVs. The answer is like anything else in our dealership—be it sales, or compliance—it’s training and best practices. Certify a technician or two and open yourself to another avenue for profits and more sales. Consider the world of hybrids and EVs. Like it or not, they are coming and coming quickly!

Scott Lanier FIADA President

4 — Independent Dealer — June 2018

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June 2018 — Independent Dealer — 5

EXECUTIVE DIREC TOR’S MESSAGE

What You Need to Know About the New Hope Scholarship Law

BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR

I

contribution may not designate a specific student as the n the April issue of the Independent Dealer we let you beneficiary of the contribution. “Motor vehicle” has the know about the Hope Scholarship Fund coming into same meaning as provided in s. 320.01(1)(a), but does not effect October 1. The Florida Department of Revenue include a heavy truck, truck tractor, trailer, or motorcycle. is in emergency rule making right now. We are working to ensure that dealers voices are heard during this process.

It will be important that your dealer management software There are more questions than answers at this point. We is up to date when the new forms are released and that have gotten a few things cleared up, but until the rules are created it's difficult to comment. I’ll try to condense this 104-page law into a few highlights, F.S. 212.1832.

When the legislature passed this measure,

the intent was to allow up to $105 of the

When the legislature passed this measure, sales tax to be transferred as a tax credit to the intent was to allow up to $105 of the the scholarship fund. sales tax of a vehicle sold to be transferred as a tax credit to the scholarship fund.

This scholarship is intended to provide the calculations are taken appropriately. Kevin Scott with transportation to a child that is bullied in school to attend Wayne Reaves Software was at the meeting with me, so another school. Since non-remittance is considered I’m sure they will be prepared, if the form and rules are theft, there are stiff criminal penalties for those that do released well in advance of the October 1 implementation. not remit the dollars to the fund appropriately (private sales are included in this process). You must also remit Keep in mind this was the number one priority for the payments by the 20th of each month. There is a penalty of Speaker of the House this year. It was even part of House $1,000 per month.

Bill 1, ultimately, House Bill 7055 is what passed.

The “eligible contribution” or “contribution” as written Be sure to attend the FIADA meeting, Tuesday, June 19. in statute means a monetary contribution from a person You can RSVP when you register to attend the NIADA/ purchasing a motor vehicle, subject to the restrictions FIADA convention. Members will receive updates as we provide in this section, to an eligible nonprofit have them available via email. scholarship-funding organization. The person making the

TUESDAY JUNE 19

Join us at the NIADA/FIADA Convention for the FIADAonly meeting. We'll have updates to this issue and others.

Get details and register at www.niadaconvention.com

6 — Independent Dealer — June 2018

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June 2018 — Independent Dealer — 7

KEYS TO INSURANCE

How to Interview Your Insurance Agent

BY DAVID METCALF, WILLIAMS & STAZZONE INSURANCE

Cracking the code on mobile websites and advertising is not as hard as it seems, and with a majority of today's shoppers taking their first look on a mobile device it is essential to understand.

M

ost of us will agree that the auto dealer business is closely aligned with the insurance business. Both provide a service that is needed to stay in business. Dealers must sell cars to customers and insurance agencies need to sell coverage to dealers.

Some insurance agents are like some car dealers – they will sell you anything. It is never acceptable to take a “Cookie Cutter” approach to your dealership coverage. We will discuss some questions to ask your agent either directly or indirectly to help you gain perspective in the process. Are you paying too much, and do you have the right

8 — Independent Dealer — June 2018

coverage? The goal is to increase awareness of the value of a good agent and the service they provide.

Resources

The availability of resources is critical to the success of any agent. When I thought about this topic the first thing I did was reach out to my colleagues at Williams & Stazzone to get their thoughts and insights.

Team members that are responsive and engaged provide valuable insight in what is going on at other dealerships and in the industry to help create synergy which benefits all our customers. This gives us the opportunity to offer our dealers valuable insight. We maintain

numerous industry affiliations to add value to the services we provide.

Specialists

Are they specialists or generalists?

Are they a “Preferred Provider” in their industry? Are they a market leader in their industry? I tell my customers we do not insure fried chicken restaurants or barber shops – everything we do revolves around dealerships, repair shops or rental operators. This gives us the opportunity to offer real world observations and use clear examples of similar situations. How long has the agent been in the industry?

How long has the agency been in business? You should feel like your agent fully understands your business and that you are talking to an expert in the field. When you deal with a specialist it is easier to feel that they understand the unique needs of your business. It is the agent’s job to know the products and markets available and what their competitors are selling.

Continued on page 11.

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June 2018 — Independent Dealer — 9

DON’T IGNORE YOUR TAXES

UNTIL IT’S TOO LATE. OUR SERVICES • Florida sales tax audits, appeals and litigation • Criminal sales tax defense • Corporate sales and transactions support

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www.fiada.com

Keys to Insurance continued from Page 8.

Diagnostics

Does your agent act as a consultant and allow input from you or do they just work to tell you what they think you want to hear? Do they try to educate you in areas where you have questions? I tell all my dealers “there is no such thing as a dumb question” because the more you ask questions and understand what you are buying the better the relationship will be.

Can they answer your questions objectively? Do they offer to follow up on any questions that need research prior to giving you an answer? Do you feel they possess the values and integrity to truly focus on your needs? Are they actively listening to your concerns and asking questions or just waiting to give you the next pitch or talk more about themselves?

Are they “tech savvy” and embrace the technology to stay up to date?

Can they decode policy terms and put in everyday language? Do they have the depth of markets to custom fit coverage and offer solutions to complex risk issues?

Customer Service

Will the agent and support staff personally handle your account, or will they turn you over to a “service center” never to hear from them again? How accessible is the agent and staff and when can you expect a return call or email? The best agents are actively engaged thru the life of the account. Service after the sale is key to any successful business relationship.

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David Metcalf is a Dealer Insurance Specialist Team Member at Williams & Stazzone Insurance Agency – An FIADA Preferred Partner www.fiada.com

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June 2018 — Independent Dealer — 11

BACK TO BASICS

Is it Exempt? Odometer Disclosure Dos and Don'ts

BY TERRY MYERS

S

There are some provisions for an exempt status on odometer disclosures, but they are not automatic. Know the law and not only what you can and can't do, but what you should do.

ection 319.225(4), Florida Statutes, provides that upon transfer or reassignment of a certificate of title, the transferor shall complete the odometer disclosure statement and the transferee shall acknowledge the disclosure by signing and printing their names in the spaces provided. The subsection provides an exemption for motor vehicles, which are 10 years old or older, etc…

than obtaining corrected odometer disclosures/affidavits, this request should be noted in the "Comment Desc." field and the transaction processed as exempt. If the customer chooses to place the wording "exempt" for the odometer reading in lieu of the mileage, date read and odometer status, or leaves the odometer reading blank, do not reject their paperwork, since the odometer reading is not required on an exempt vehicle.

TL-09 states in 2: ‘The following motor vehicles are EXEMPT from all odometer disclosure statements or odometer declarations: a. Any motor vehicle that is 10 calendar years old or older as of January 1 of the current year. Etc."

Look closer. Notice that it reads "A vehicle should not be automatically exempted if an odometer reading is available." In other words, it is not mandatory. Second, it also reads "If the customer chooses to place the wording exempt." In other words, it is not the selling dealer’s choice, unless taking direct title in the name of the dealer or the dealership.

NOTE: EXEMPT VEHICLES - A vehicle should not be automatically exempted if an odometer reading is available. If current mileage, date read and odometer status (actual, exceeds or not actual) are shown in the odometer disclosure/declaration area on the title ("Transfer of Title By Seller" section) and/or the application for title, this information should be entered when processing the application, unless the previous motor vehicle record was shown as exempt.

If there is an odometer error on the title and accompanying paperwork, and the customer requests that the vehicle be marked as exempt, rather 12 — Independent Dealer — June 2018

being issued with the odometer status as “NOT ACTUAL MILEAGE.” Motorcycles With No Odometer (Rebuilt/reconstructed): 1. If a non-exempt (less than 10 years old) motorcycle does not have an odometer, show 999,999 "Not Actual Mileage" for the odometer reading.

2. If an exempt (10 years or older) motorcycle does not have an odometer, show "exempt" for the odometer reading.

TL-09 in whole may be found at http://www3.flhsmv.gov/dmv/Proc/TL/ TL-09.PDF . The above elements were used only to address a small part of the larger whole. Download and read it for yourself.

Once EXEMPT, always EXEMPT. If history shows EXEMPT, place it into the odometer boxes, even if the title you received had a reading when signed over to your dealership.

Proper odometer disclosure is regulated at the federal and state levels. Do not hesitate to ask your Compliance Examiner when you have a question. Do not ask the dealer down the road. No one is EXEMPT from breaking odometer laws.

MISCELLANEOUS INFORMATION: Scenario: A Florida Certificate of Title has been issued showing the odometer status as "EXEMPT." However, the new purchaser wants their title issued with a current reading. Is this acceptable?

Answer: Yes. As long as the title is

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.

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June 2018 — Independent Dealer — 13

CASE STUDY

A Legal Lesson Learned

BY CHRIST Y TAYLOR

When FIADA members Linda and Paul Rogers found themselves as defendants in an "outrageous" lawsuit that questioned the appropriateness of a deal's interest rate, they contacted the Association for help.

I

t started out like any other sale. A customer bought a 2004 Pontiac Grad Prix from AutoShow Sales in Plantation in 2009, and the office staff did everything by the book. A Retail Installment Sale Contract was presented and signed by the customer, the details were reviewed, a copy was given and the sale was complete. Or, so they thought.

To their surprise, a few years later, AutoShow found themselves in the middle of a lawsuit, along with the finance company they sold the loan to, Summit Financial Corporation.

The buyer sued both companies for criminal usury and for violations under Chapter 772, Florida Statutes.

Summit Financial and AutoShow, through their attorneys, answered the complaint setting forth several defenses including: 1. A contract for the purchase of a used automobile with a deferred payment plan is not subject to Florida’s general usury statute; and 2. The interest charged is allowable under the Motor Vehicle Retail Sales Finance Act which governs the transaction.

The case revolved around the buyer, Adrianne Nolden’s, claim that the 27.81% interest charge under the purchase contract exceeded the 18% interest rate limit imposed by Florida’s usury statute. After a summary judgement and appellate decision, the courts ruled in the defendants favor.

Attached to the motion for summary judgement from Summit Financial was an employee’s affidavit attesting that: • The buyer entered into a Retail Installment Sale Contract for the purchase of a car. The contract gave the buyer the option of buying the car for cash or on credit. By signing the contract, the buyer chose to buy the car on credit.

• The contract was assigned to Summit Financial, which is an automotive finance company.

• The contract was not a contract for the loan of money. The contract was for the purchase of the car.

“We went to Rob Sickles because he was well known to FIADA,” Linda said. “The judge had no choice but to rule the summary judgement in our favor. Rob Sickles argued the case very well.”

In the Retail Installment Sale Contract, the pre-printed form was filled in with the details of the transaction providing an “itemization of amount financed” which included the cash price of the car ($11,694.10);

“When I first saw the suit, I thought it was frivolous,” Linda Rogers said.

Linda and her husband, Paul, own AutoShow and are FIADA members.

14 — Independent Dealer — June 2018

the buyer’s down payment ($2,500); and “other charges” that were itemized and added to the price (totaling $2,688.91). The total “amount financed” was listed as $11,883.01.

The contract states that the buyer may purchase the car for cash or on credit. If the buyer chooses to buy on credit, the contract set forth financing terms that will apply: You, the Buyer…may buy the vehicle below for cash or on credit. By signing this contract, you choose to buy the vehicle on credit under the agreements on the front and back of this contract. You agree to pay the Seller-Creditor…the Amount Financed and Finance Charge in U.S. funds according to the payment schedule below. We will figure your finance charge on a daily basis at the Base Rate of 27.81% per year.

The contract also included the Truth-in-Lending Disclosures on the first page which stated the Annual Percentage Rate to be 27.810%, the Finance Charge $8,163.71, the Amount Financed $11,883.01, the Total of Payments $20,046.72, the Total Sale Price (after a down payment of $2,500) $22,546.72. The payment schedule was included in writing to show Number of Payments 48, Amount of Payments $417.64 and payments due monthly beginning on March 6, 2009.

For their case, Auto Show included an affidavit of its office manager who attested to the following relevant facts: • The buyer purchased the car from AutoShow in an installment sales transaction and the buyer executed a Retail Installment Sales Contract.

• AutoShow is a licensed motor vehicle retail installment seller.

• The buyer was given a copy of the contract at the time of her purchase.

Continued on page 16. www.fiada.com

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June 2018 — Independent Dealer — 15

A Legal Lesson Learned continued from Page 14.

•

After the buyer purchased the car, the contract was sold to Summit Financial.

AutoShow also presented its license to conduct business as a “Motor Vehicle Retail Installment Seller” and Summit Financial was licensed to conduct business as a “Sales Finance Company” under Chapter 520. Because the defendants held licenses under Chapter 520, they were able to justify that the “legal rate” of interest set forth in the Motor Vehicle Retail Sales Finance Act is the rate applicable to the transaction.

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A usury charge requires proof of four elements:1) an express or implied loan; 2) a repayment requirement; 3) an agreement to pay interest in excess of the legal rate; and 4) a corrupt intent to take more than the legal rate of the money loaned. In this case, the parties disputed the third element, the “legal

16 — Independent Dealer — June 2018

rate” of interest, and the first element, whether the transaction was a “loan.”

AutoShow first established that the transaction resulted in a “Retail Installment Sales Contract” as that was the title of the document that appeared in bold capital letters on the first page. The agreement complied with the statutory requirements imposed on Retail Installment Sales Contracts and includes the “notice to buyer” section and a separate written itemization of the amount financed, as required by FS 520.07. The terms of the agreement fit within the statutory definition of a Retail Installment Sales Contract under FS 520.02. AutoShow and Summit Financial were licensed under Chapter 520 and the buyer met the definition of a buyer as it is defined by Chapter 520. Further evidence was the parties’ conduct under the agreement: the buyer received a car and the seller received

a piece of paper evidencing the buyer’s obligation to pay for the car in installments with interest.

Further, AutoShow and Summit argued that the rules of statutory construction allow for the interest rate set forth in Chapter 520 applies to this transaction and not the 18% interest rate contained in the usury statute. Because the statutes covered the same subject (interest rates) yet reached contradictory results, the rules of statutory construction compel the court to conclude that the interest rate set forth in Chapter 520 governs this retail installment transaction involving the sale of a motor vehicle. Chapter 520 contains a legislative determination that some higher risk loans are entitled to a higher interest rate than the one allowed by the general usury statute.

The law was clearly on the side of AutoShow and Summit and this case, and after the judgement in their favor they assumed this was a case closed moment. To her surprise, however, Linda has received another letter from the Nolden’s attorney making mention of taking this case to the Florida Supreme Court. Though not sure about what they will do next, Linda said she is thankful that she has been a member of FIADA through this whole ordeal. Membership led them to their attorney as well as helping them better protect themselves against similar cases.

“Anybody can attack you, whether they are right or wrong,” Linda said. “FIADA is a very good thing and it is has been good for us to be members. My advice to other dealers is to keep all of the paper for every deal, have your staff trained as much as possible, consider using an arbitration agreement and have all your paperwork looked over by a good attorney." www.fiada.com

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June 2018 — Independent Dealer — 17

Protect. Promote. Preserve.

SINCE 1940

Florida Independent Automobile Dealers Association

Why Join FIADA? REPRESENTATION A lobbyist and legislative committee that fights for you and the industry’s interests.

EDUCATION FREE continuing education and free unlimited technical assistance calls with FIADA legal counsel.

DEDICATION Access 100+ vendors who specialize in auto industry needs and over 800 dealers statewide who handle issues like yours.

SAVINGS Over $2,000 in FIADA member discounts and coupons that are available instantly with an easy to use mobile app.

DISCOUNTS Exclusive savings on advertising opportunities, DMS, financing, floorplanning, GPS and other dealer services.

Licensed dealers receive complimentary membership and additional benefits with NIADA.

DUES: $325 Annually

rship is Membe portunity en Op A Gold

Sponsor:_____________________________________

Company Name:________________________________________________________ q New Mbr q Associate Mbr Address:______________________________________ City:____________________ State:______ Zip:_________ Phone:_____________________________ Fax:_____________________________ Email:_______________________ By signing I agree to the FIADA

code of ethics and FCC Consent.

Principal Contact:________________________________ Signature:_______________________________________

Payment Method: q Check (made payable to FIADA)

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q Discover

Card Number:________________________________________ Expiration Date:__________________ CVV:_________ I authorize FIADA to charge my credit card listed above.

Name on Card:___________________________________________________________________________________

Dealer Type: q Retail

q BHPH

q Wholesale

Years in business?__________ License# ____________________

SUPPORT THE FIADA PAC Your PAC Contribution helps spread the awareness and gain support of issues affecting independent dealers in the state's capitol.

q

$500

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$250

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$100

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_________

FCC Communications Consent: I understand that by providing my mailing address, email address, telephone number and fax number, I consent to receive valuable and timely communications via mail, parcel, email, telephone, text and/or fax from or on behalf of the Florida Independent Automobile Dealers Association (FIADA). This consent shall remain in effect until FIADA receives written revocation signed by an authorized representative.

800.237.0448 | Fax: 850-385-3251 | Email: info@fiada.com | www.FIADA.com | Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308

18 — Independent Dealer — June 2018

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Remembering Bill Fenton

—George Hickey, Bond Auto Sales "What a great guy! He would always take time to talk with me and share great stories!

He will be missed. A great American!"

—Jeffrey Zupec, Insurance Auto Auctions "We will miss Bill. He was a trooper and always showed up. We love him."

—Frank and Gina Fuzy, Century Motors

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William “Bill” J. Fenton, II, resident of Port. St. Lucie, Florida passed away on Saturday, May 5, 2018 at Baystate Medical Center in Springfield. Bill’s passion for automobiles began when he started working for his grandmother at the Fenton Chevrolet and Pontiac dealership as a teenager. He continued to work as a salesman before taking Bill and Jane at a FIADA Convention. over the Fenton Leasing business, and in the 1980s, he expanded to the Fort Lauderdale, Florida area. He was an officer in the Florida Independent Automobile Dealers Association for many years and was honored for achievements as an Honorary Life Director in 2013. Bill honored his country with his Naval service in the early 1950s and retired from the Naval Reserves in his 60s, and he continued to pay tribute to his country and veterans by raising the American flag in front of his business and home. Bill was always up for a new project or adventure, whether a renovation at his home or business or a road trip, and Bill and his wife Jane enjoyed opening their homes in Westfield and Florida to their friends. He will be forever known as a good listener and a gentleman always looking to help his family, friends, and customers.

"Bill was such a happy guy.

He was always so positive and had lots of good advice for us.

We enjoyed his company very much and I will miss seeing his smiling face."

20 — Independent Dealer — June 2018

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M A R K E T I N G S T R AT E G Y

Three Secret Success Tips for Car Dealers Mobile Strategy

BY BRENT DURHAM

Cracking the code on mobile websites and advertising is not as hard as it seems, and with a majority of today's shoppers taking their first look on a mobile device it is essential to understand.

I

t is possible for dealers to supercharge their mobile marketing with a sharp focus on fundamentals, as well as implementing proven strategies to further leverage this potential. There are dealers right now that sell more cars with mobile innovation.

Mobile devices continue to grow in importance, especially for car dealers. Even dealers in remote areas have mobile penetration above 50 percent, and some markets are as much as 70. A Hitwise Internet study last spring showed that 60 percent

22 — Independent Dealer — June 2018

of all web searches are on mobile devices, with the auto industry at 62 percent. It’s also important for dealers to understand that mobile is NOT replacing desktops. According to a Cox Automotive study last year, nearly half of all shoppers used multiple devices, and only 14 percent used mobile exclusively. The lesson here is to keep your message consistent across all devices AND channels, both digital and traditional.

Effective Mobile Advertising

All ad content should be designed mobile-friendly. There are five critical areas to address with mobile ads.

• Color – Strong, contrasting colors are ideal, and they should contrast well with the rest of the website, especially the call to action button.

• Text – Should be less than eight words and be displayed with crisp fonts that are easy to read.

• Call-to-action – A strong CTA is a MUST! It should not only click through to your site, but ACCURATELY tell the shopper what to expect, whether it’s a lease special, service promotion, or other incentive – and not land on the homepage. The bottom right is the ideal location.

• Imagery – Keep it simple. Simple

•

•

graphics with your branding is best.

File size – Small and fast is the rule here. Don’t forget page-load speeds affect organic Google search page rankings.

Cohesion – Be sure the ad relates to the target audience, and be sure the CTA button lands on a relevant page.

Other mobile ad tidbits that are important include mobile first indexing, focus on key ad sizes, and native mobile types. One final note for mobile ads is to be sure to understand their placement and audience targeting. Even if you have a third-party vendor handling this for your store, it important to keep a close watch on the strategy, response, and KPIs, or Key Performance Indicators – and ROI from sold units.

Embrace social media

With Americans spending 40 minutes a day or more on social sites, dealers need to do more with social media than just have the receptionist post a few event photos and new car specials. Social media must be an integral part of the store’s marketing strategy. As with mobile ads, there are several ways to reach in-market and potential buyers. With Facebook alone, there are dozens of ways to target ads to parameters like life events, interests, location, and demographics. Beyond these basics, dealers can target their current owners or prospects by uploading an email list, then it’s possible to choose a ‘Lookalike’ audience for targeting, as well.

Another way for dealers to extend their reach – and effectiveness – on social sites is to partner with employees. Each dealer is going to have different legal and management views regarding how employees use social media as it relates to work.

Continued on page 24. www.fiada.com

Stockwave shows you inventory from across the country, ranked by profit potential based on your unique needs as an independent dealer. That’s why the dealers who use it earn up to 40% more gross profit on cars they buy at auction.

They don’t search. They don’t stress. They just say, “Stockwave, show me the money!”

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June 2018 — Independent Dealer — 23

Mobile Success Tips continued from Page 22.

But there are stores and individual salespeople across the country who enjoy great success building relationships online as a supplement to basic sales and prospecting habits.

Social media is about people, so the more dealerships have staff who grow social site friendships with customers and prospects, the greater potential to connect with them as buyers. There are two important facets of this strategy.

Firsts, the posts must be about people; photos and videos of events that are also shared on the dealer’s site are very powerful. And second, social media shouldn’t beat friends and followers up by hammering them with a hard sales pitch dozens of inventory photos. The more value to the follower, the more engagement potential there is.

What’s working outside the car industry?

Even though the auto industry has become very proactive targeting mobile shoppers, there is ever-changing trend information from other retail channels that can be valuable to dealers. For instance, 90 percent of all email that’s opened from marketing campaigns gets opened is on mobile devices. There can be great value to use the dealership CRM on mobile for staff to stay close to

customers, and other critical benefits like quicker deal processes by scanning VINs, more consistent follow up, and safeguarding CSI. Live chat and text on the dealer website can boost business for each department if it’s well-executed either in-house or by a vendor. Loyalty programs are another application with which outside industries connect with current and future customers. Surprisingly, many businesses had fun with their customers during the very brief Pokémon Go craze. Looking for these micro-bursts of opportunity can set your store apart on mobile and everyone can have a little fun at the same time.

Dealers have the resources available today to capitalize on the great potential that mobile marketing offers to help sell more cars. But a clear strategy must be in place to leverage mobile devices for business growth in sales, service, and parts departments.

A consummate student of the industry, Brent Durham basically grew up in dealerships and has touched almost every role. He understands the importance of lean operations and is obsessed with ensuring dealer advertising brings the highest ROI and the lowest amount of waste. Brent@iFrog.com

2017-2018 FIADA EXECUTIVE COMMITTEE:

SCOTT LANIER, CMD

BRAD JOEL

LISA COMPAGNO

President Credit Cars Orlando, FL 32808 (407) 295-6211

Senior Vice President Splish Splash Auto Sales Princeton, FL 33032 (305) 258-1191

Chairman of the Board Palm Tree Auto Sales Stuart, FL (772) 288-2099

FRANK FUZY

GEORGE HICKEY

STEVE MARBAIS, CMD

Regional Vice President Century Motors of S. Fla., Inc. Pompano Beach, FL 33064 (954) 785-0369

Regional Vice President Bond Auto Sales, Inc. Tampa, FL 33604 (813) 238-7478

24 — Independent Dealer — June 2018

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

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June 2018 — Independent Dealer — 25

MEMBERSHIP NEWS

New Members

MAY 2018

427 MOTORSPORT Tallahassee, FL Aaron Silverman Sponsor: FIADA

MARLINS AUTOS, INC Orlando, FL Adriana Machado Baldomero Sponsor: FIADA.com

ABC AUTO SALES, LLC Moultrie, GA Kenneth Croft Sponsor: FIADA

MELBOURNE MOTORS LLC Melbourne, FL Ashley Beck Sponsor: FIADA

ADVANTAGE GPS BY PROCON ANALYTICS Irvine, CA Corinna Tutor Sponsor: FIADA

MOBILITYWORKS LARGO, FL Regina Borsi Sponsor: FIADA

ANDREWS AUTO BROKER INC Green Cove Springs, FL Wilbert Andrews Sponsor: Terry Myers CAMELOT AUTO SALES LLC Loxahatchee, FL Mary Abbott Sponsor: Kevin Scott CARS DIRECT, LLC Plant City, FL Michael Mann Sponsor: FIADA CARS PROTECTION PLUS Murrysville, PA Rick Tudor Sponsor: FIADA FLORIDA PERFORMANCE CARS Riviera Beach, FL Jeff Jerman Sponsor: FIADA H&N TRUCKS LLC Umatilla, FL Jeremy Nall Sponsor: Ocala DMV Regional Office

PAUL WEST USED CARS Gainesville, FL Paul Nassoiy Sponsor: John Cousins RED LINE MOTORS Jacksonville, FL Kevin White Sponsor: FL DMV SHEPPARDS PROSPERITY Lake City, FL Roosevelt Sheppard Sponsor: Dealers Auto Auction VI TROPICAL MOTORS LLC Kissimmee, FL Janine Lockhart Sponsor: Terry Myers WHOLESALE CAR CLUB INC.DBA IDRIVE ON DEMAND Jacksonville, FL Jennifer Evans Sponsor: Janet Curry (Dealer Insurance)

INVENTORY AUTO DEALER SERVICES Altamonte, FL Dwayne Morgan Sponsor: Kevin Scott

26 — Independent Dealer — June 2018

Renewing Members 20+ Year Members Buyer's Zone, Inc. Creel Motors Dick Moye Auto Sales, Inc. Fleet Lease Disposal J-Linn Motors 10+ Year Members Auto Dealers Wholesale Kelly Kronenberg, Attorneys at Law Ocean Auto Sales of Miami, Inc. Spanos Imports Under 10 Year Members Aubrey's Auto Sales Melbourne Auto Mart, Inc. Maher Chevrolet Sport Classic Motorcars, LLC Diamond Warranty Corp.

Discovery Auto Center LLC Auto Dealer Solutions LLC Patriot Automotive Consulting safe financial group LLC CarBucks Scotti's Auto Repair & Sales Auto Select Tomlinson Motor Company Ashton Agency, Inc. BNM Enterprises, LLC

MAY 2018 West Palm Beach, FL St. Petersburg, FL Pensacola, FL Delray Beach, FL Clearwater, FL Tallahassee, FL Tampa, FL Miami, FL Daytona Beach, FL

Delray Beach, FL Melbourne, FL Saint Petersburg, FL Ormond Beach, FL Wilkes Barre, PA Tampa, FL Palmetto, FL Concord, NC Miami, FL Greenville, SC Sarasota, FL Saint Augustine, FL Gainesville, FL Winter Park, FL Saint Augustine, FL

Quality Dealer of the Year The FIADA 2018 Quality Dealer of the Year will be announced during the special FIADA Member Meeting and Reception, June 19 at the NIADA Convention. The meeting begins at 8:00 pm. RSVP your attendance to be there for the announcement of this year's winner.

Entrance to the meeting and reception is included with convention registration.

Register today at www.niadaconvention.com

WHO WILL BE NEXT?

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June 2018 — Independent Dealer — 27

L E G A L U P D AT E

The New DOL and NLRB and What It Means for Employers

BY LISA GRIFFIN HODGDON AND GINGER BARRY BOYD

There has been a shift at the Department of Labor and National Labor Relations Board to an employer-friendly stance, thanks to a new perspective under the Trump Administration.

I

f you had any doubt that under the Trump Administration we would see a swing towards a more pro-employer stance on workplace issues from the Department of Labor (DOL) and the National Labor Relations Board (NLRB), those feelings should dissipate based on some recent decisions.

Both the DOL and the NLRB have undergone significant changes in personnel that clearly appear to have impacted the respective agencies’ policies. The personnel changes, as well as the changes in policies that have occurred and are expected to occur in the future, definitely suggest the pendulum is swinging from an employee-friendly era under the Obama administration to a more employer-friendly era under the Trump Administration.

For employers, to date, one of the biggest areas impacted by the change in administration has been the fall of the new regulations related to white-collar exemptions proposed under the Obama administration.

As you probably recall, at the end of 2016, employers were scrambling to address the changes that were proposed by the DOL which would have almost doubled the salary threshold for exempt employees under the Fair Labor Standards Act. 28 — Independent Dealer — June 2018

Then, just weeks after Donald Trump was elected and one week before becoming effective, a District Court Judge in Texas declared the proposed rules invalid. Despite the new DOL’s opposition to the new regulations previously proposed under the Obama administration, the current DOL is still expected to issue a new proposed rule that will raise the salary threshold for white-collar exemptions. The salary threshold has not been modified since 2004. The new salary threshold is expected to be somewhere between the current threshold of $23,660 and the Obama administration’s proposed threshold of $47,476. The DOL has not indicated where they will land, but has suggested we may have a proposed rule by October of 2018.

The DOL also announced last year, that it would be reinstating Opinion Letters issued by its Wage and Hour Division, a practice which the agency ceased in 2010 during the Obama administration. Opinion Letters can be very helpful to employers when it

is unclear if or how the law may apply to a specific employee or specific set of facts. Employers anonymously submit questions based on specific factual circumstances and the DOL then issues a formal written opinion as to the legality of the employer’s policies or the application of the law to the specific circumstances.

Additionally, the DOL recently announced a new pilot program called Payroll Audit Independent Determination (PAID) program.

Under the PAID program, employers conduct self-audits to determine if they are in compliance with the FLSA. If an employer discovers a violation, then they can elect to voluntarily notify the DOL of the violation. The DOL would determine the amount of back pay owed and oversee the payment of back pay to workers. The incentive for voluntarily notifying the DOL is the employer would not be subject to liquidated damages. However, as with most things, there are pros and cons to participating in such a program.

Thus, we would highly recommend that any employers seek legal advice before entering into the PAID Program.

In light of the new Republicanmajority NLRB, we are also seeing a more employer-friendly NLRB verses the employee-friendly NLRB that was previously in control under the Obama administration. In particular, at the end of 2017, the NLRB reversed several highly controversial decisions that were decided by the NLRB during the Obama administration.

The decisions addressed various issues, but the most prevalent for employers, was the decision related to Continued on page 30. www.fiada.com

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June 2018 — Independent Dealer — 29

INDUSTRY NEWS

NIADA Applauds Repeal of CFPB Indirect Auto Lending Guidance Bipartisan House Vote Sends Joint Resolution to Overturn the Controversial Rule to the President's Desk for Final Approval The U.S. House of Representatives voted today to repeal the Bureau of Consumer Financial Protection's controversial 2013 guidance on indirect auto lending, a move praised by the National Independent Automobile Dealers Association.

The House approved S.J. Res. 57, which would overturn the muchcriticized guidance document under the authority of the Congressional Review Act, by a bipartisan 234-175 majority. The Senate had already passed the joint resolution on April 18 by a 51-47 margin.

"The CFPB's 2013 indirect auto lending guidance was a harmful, ill-advised solution that purported to solve the problem of a disparate impact theory that only existed in some mythical CFPB fairyland," NIADA CEO Steve Jordan said.

"The reality is automobile dealers had a rich history of using indirect lenders to provide financial transactions in the best interests of the driving public long before the CFPB decided to interfere. NIADA is thrilled Congress has removed the CFPB from that equation."

The guidance, issued in March 2013, claimed dealer discretion on interest rates creates a "significant risk" of unintentional disparate impact discrimination and spelled out the bureau's intention to pursue enforcement actions on that basis.

Its repeal will once again allow auto dealers to set loan terms and rates for third-party financing without being subject to CFPB enforcement.

Critics have pointed out the CFPB's theory is based on shaky methodology for determining disparate impact and the guidance was put in place without comments from stakeholders, public hearings or studies of its effect on the cost of credit to consumers.

"Without seeking any public comment or studying the impact on consumer credit," NIADA senior vice president of legal and government affairs Shaun Petersen said, "and with no evidence to back up its claim, the bureau issued a rule under the guise of guidance to limit dealers' ability to meet their customers' needs when shopping for credit.

"We applaud Congress for taking steps to rescind the bureau's overreach."

The resolution followed a December opinion from the Government Accountability Office that defined the guidance document as a CFPB rule for the purposes of the CRA, which meant it could be struck down by a simple majority vote of both houses of Congress.

The White House has issued a statement in support of the resolution and President Trump is expected to sign it into law.

30 — Independent Dealer — June 2018

DOL and NLRB continued from Page 28.

policies set forth in employee handbooks.

During the prior administration, the NLRB frequently found employee handbook provisions preventing disrespectful conduct, gossip or discourteousness in the workplace, violated the National Labor Relations Act (NLRA) on the grounds that such provisions could discourage or preclude employees from discussing the terms and conditions of their employment.

However, the new NLRB has adopted a new, employer-friendly policy for determining whether a policy set forth in an employee handbook violates the NLRA. This new test, articulated in The Boeing Company case decided in December, articulated a 2-step analysis for evaluating facially neutral policies. First, similar to before, the NLRB will ask whether an employee could reasonably construe that policy to prohibit protected activities. However, if the policy does not pass muster under this first step, the NLRB will further evaluate the issue by moving to the second step i.e., by asking whether the policy has legitimate justifications that outweigh its effect on employees’ protected rights. In other words, even if an employee could reasonably construe a facially neutral policy to restrict protected activities, the policy will survive if the employer’s legitimate justifications outweigh any impact on the employee’s protected activities. This test requires the NLRB to balance the interest of employers and employees when determining if the policy or rule violates the NLRA. Although it is clearly evident that we are seeing a more pro-employer stance as a result of the new administration, before you take any action we would recommend that you consult counsel to fully evaluate any risks involved.

Lisa Griffin Hodgdon, Of Counsel at Broad and Counsel and Ginger Barry Boyd, Partner at Broad and Cassel, contributed to this article. Mrs. Hodgdon and Mrs. Boyd advise employers on how to reduce litigation risk, resolve employee issues, and represent and defend employers in litigation related to various labor and employment matters. www.fiada.com

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June 2018 — Independent Dealer — 31

Visit us at the 2018 NIADA/NABD Convention - Booth #1730

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32 — Independent Dealer — June 2018

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

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