May 2014 Issue Independent Dealer Magazine by FIADA

SINCE 1940

May 2014

www.FIADA.com

For Florida’s Dealers and Drivers in Tallahassee

A Publication of the Florida Independent Automobile Dealers Association

Information and Insight for Florida Used Car Dealers

FIADA SCORED TWO MAJOR WINS THIS SESSION With fee rollbacks and surrender stop legislation.

FULTON, MO PERMIT NO. 38

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May 2014 — Independent Dealer — 1

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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 Dino Mercurio President Jim Winterick, Sr. Senior Vice President Christopher Leedom Chairman of the Board Phil Risley Secretary Paul Matton Treasurer Lisa Compagno Regional Vice President Frank Fuzy Regional Vice President George Hickey Regional Vice President Steve Marbais, CMD Regional Vice President Govinda Romero Regional Vice President FIADA STAFF Lisette Mariner Executive Director Terry Myers Educational Instructor Sarah Langley Administrative Director Nicole Lee Development Administrator Amelia Tillman Member Services Christy Taylor Editorial/Advertising

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FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Toll Free: (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 May 2014

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 Dino Mercurio

Executive Director’s Message Lisette Mariner

Member News

Back to the Basics Terry Myers says it is time to be fully-committed to customers.

If You Pin It, They Will Come Social media strategies have to look beyond Facebook and twitter and embrace the next big thing. Could it be Pinterest?

Check Out What’s Up Next in the FIADA Webinar Series

More on World Class Reconditioning The follow-up to last month’s step-by-step guide on reconditioning your vehicles for quick sales and higher profits.

FIADA’s 2014 Annual Convention & Trade Show Registration is now open for the state’s premier dealer event. See the tentative schedule and use our registration form to save your spot.

A Look at Current Legal Issues The monthly round-up of federal and legal issues affecting auto dealers.

Get Your Business Ready for Hurricane Season With just weeks away from the start of the 2014 Atlantic Hurricane Season, now is the time to prepare and get your dealership ready.

Industry News

Manage Your Inventory Efficiently in the Summer Keeping cash flow moving to secure the right inventory during the summer slow-down can be challenging. May 2014 — Independent Dealer — 3

FROM THE PRESIDENT

A Successful Session BY DINO MERCURIO, FIADA PRESIDENT

am writing this message to the members of FIADA with fingers crossed! The 2014 Legislative Session has just ended and there are numerous bills sitting on the Governor’s desk awaiting his signature. Of importance to our members, and really the entire industry, are two bills that FIADA worked extremely hard to get passed. First, which the Governor has already signed into law is SB156, which will reduce motor vehicle titling and registration fees. The other is HB7005/SB1272 and will again allow lienholders to file a Surrender Stop on debtors who are delinquent and cannot be located for repossession. It is very similar to the Surrender Stop that was law a few years ago, but was taken away based on some vague language. The language has been updated and went through both the House and Senate without any opposition. It will be an important tool for lienholders, and will require debtors to either surrender the vehicle or get the account current before they can renew their license plate decal. Hopefully by the time you read this, the Governor will have signed this into law as well, and we can uncross our fingers. Of course, just to get this point took a tremendous amount of effort and teamwork from the FIADA, our Lobbyist, and

Legislators alike. I would like to take this opportunity to thank Senator Negron who was instrumental in the fee reduction Bill, Senator Brandes who met with us prior to session to hear our voice and then championed our cause to get the Surrender Stop language passed in the Senate, and Representative Broxson who filed it on the House side. Obviously, it is important to have top Legislators pushing our issues, but it would be impossible without the tireless efforts of our Lobbyist Sandra Mortham. She has put in an incredible amount of hours crisscrossing the Capitol to keep these Legislators up-to-date, informed of the facts, and furthering not just the FIADA agenda, but our relationships with these key senators and representatives. And last, but certainly not least, is FIADA Executive Director Lissette Mariner, who also spent many hours at the Capitol, communicating with Sandra, and then getting all that information back out to the FIADA leadership and membership. I tip my hat to all of you, and again say thanks for another successful legislative effort. Dino Mercurio FIADA President

Where’s Your Sign? Election season is approaching, which means candidates will be looking for a place to stake their signs. Help them out, along with the Association, by offering to display some at your dealership. It costs you nothing, but gains so much for the Association and the industry! Call FIADA at (800) 237-0448 to find FIADA-friendly candidates in your area.

4 — Independent Dealer — May 2014

www.fiada.com

We’re hiring your new F&I manager. Find out when they start. Visit newFandImanager.com

Protective Asset Protection has been serving auto dealers of all sizes for 50 years. We know your job is tough – that’s why we’re in the process of getting you some help with your finance and insurance solutions. So, be on the lookout for your new addition. We’ll be making the big announcement soon.

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Contact Protective’s Florida representative, Chris Behrens at 866 452 7335 A “National Corporate Partner” has met stringent NIADA criteria demonstrating that it can provide valuable products and services to NIADA members. No legal partnership has been created by the granting of this status, but NIADA does receive compensation from Protective. Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products are backed by Western General Insurance Company and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

EXECUTIVE DIREC TOR’S MESSAGE

Now What? BY LISET TE MARINER, EXECUTIVE DIREC TOR

ow that the rush of tax season, the legislative session and license renewal are over, what’s next? It is a great time to catch up on the new laws that will soon take effect as well as get rejuvenated by networking with your fellow dealers at our upcoming town hall meeting in July 18 at the Hilton Daytona Beach Resort/ Ocean Walk Village (100 N Atlantic Ave, Daytona Beach, FL 32118). Then, of course, in October FIADA along with our many sponsors will host the 2014 Annual Convention at the Omni ChampionsGate Hotel in Orlando, FL. Registration is now open for both the Town Hall and the FIADA convention. You can register for either event online at www.FIADA.com, or for the convention just turn to page 23 in this issue. Don’t miss these great opportunities to rejuvenate and gain insight on new laws and ways to help you increase profits. Dealers face many obstacles, but remember that FIADA is here to help pave the way to success! With new rules and regulations, it is also a good time to remember that FIADA is here with many resources that can guide you through the maze of compliance. We have multiple resources on our YouTube Channel (www.YouTube.com/yourfiada) and

under resources at www.FIADA.com. You’ll find archived webinars about PCI compliance, FTC legal update, tips about the auction, and much more. Since the beginning of the year, FIADA has been hosting monthly webinars about various topics from compliance to helping you earn a profit. Make sure you register or our next one with Jon Leedom and Dan Steiner of Paymaxx Pro on May 20. This legislative session, we were fortunate to have Senator Negron sponsor a bill to reduce registration fees and both Representative Broxson and Senator Brandes help get the surrender stop back. The surrender stop legislation is awaiting the Governors approval, but becomes effective July 1. This law would allow lienholders to apply a stop for failure to surrender a vehicle. Overall the legislature filed and passed fewer bills during this legislative session as compared to recent years. Only 1,900 bills were filed and 258 passed. Updates on new laws will be coming in future issues. Remember to use your benefits. If you have a need or feedback on anything in particular, we want to know. Feel free to contact me at lisette@fiada.com. See you soon!

July 18, 2014 • Hilton Daytona Beach Resort This FREE event, held each quarter and open to all dealers (members and non-members) is one of the most popular benefits FIADA provides. Go online to www.FIADA.com to register. A small block of rooms is available at the Hilton Daytona Beach Resort/Ocean Walk Village. To book one, call (866) 536-8477 before June 6, 2014 and mention that you are with the FIADA. Room rate is $129 per night. There are no resort fees and self-parking is $5/day. 6 — Independent Dealer — May 2014

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Y 28 DA T FLOA

SIMUL C AVAIL AST ABLE

check out our websites:

WWW.YOURAUCTIONTAMPABAY.COM 1-800-675-4444 WWW.YOURAUCTIONFTMYERS.COM 1-866-924-7070 WWW.YOURAUCTIONPASCO.COM 1-855-255-4111 WWW.YOURMOBILEAUCTION.COM 1-866-924-7070

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MEMBERSHIP NEWS

New Members

APRIL 2014

Amaan Motors LLC Pompano Beach, Florida Michael Newman Sponsor: Independent Dealer

Cute Lea LLC Orlando, Florida Jerome Karam Sponsor: Kevin Scott

Our Autos Bradenton, Florida Brian Kelly Sponsor: www.FIADA.com

ADESA A/A of Sarasota Bradenton, FL Jeff York Sponsor: Amelia Tillman

Ambulance Network, Inc. Miami, Florida Eduardo Tolstano Sponsor: www.FIADA.com

DeMott Auction Co., Inc. Moultrie, Georgia Becky Moore Sponsor: Independent Dealer

Owens Cars LLC Orlando, Florida Wendi Owens Sponsor: Amelia Tillman

ASAP Wheels, Inc. Jacksonville, FL Sponsor: www.FIADA.com

Arion Motors Inc Plantation, Florida Adnan Radoncic Sponsor: NIADA

Gethsemane Auto Sales Corporation Orlando, Florida Anderson Couto Sponsor: Amelia Tillman

Penske Truck Leasing Co LP Orlando, Florida Mitchell Schmitt Sponsor: Amelia Tillman

Automatch USA Lincolnshire, Illinois John Gavin Sponsor: Amelia Tillman Bart Sabatelli Dade City, Florida Bart Sabatelli Sponsor: Terry Myers Beford Auto Inc. Holiday, Florida Mark Beford Sponsor: Amelia Tillman Big Gorilla Lakeland, Florida Mary Butner Sponsor: Vanessa Zapatero CFS of South Florida Pembroke Pines, Florida Chris Bauer Sponsor: www.FIADA.com Crown Motors of Tallahassee, Inc. Tallahassee, Florida Amir Keshavarz Sponsor: Amelia Tillman

Rejoining Members

Premier Auto Finance Margate, Florida Kenneth VanDeKerkhove Sponsor: www.FIADA.com

J.D. Byrider Panama City, Florida Michael Anglin Sponsor: Amelia Tillman Let’s Make A Deal Auto Sales Apopka, Florida Terrance Roach Sponsor: Amelia Tillman M&M Auto Collision Inc. Orlando, Florida Marilu Martin Sponsor: FIADA Manheim Fort Lauderdale Davie, Florida Edward Molina Sponsor: Amelia Tillman Michael Malave orlando, Florida Michael Malave Sponsor: Terry Myers MVP Auto Dealer, Inc Lake City, Florida Angel Ulloa Sponsor: www.FIADA.com

Renewing Members

Selective Motor Cars Miami, Florida Angel Campos Sponsor: Amelia Tillman Sherif Awad Orlando, Florida Sherif Awad Sponsor: Kevin Scott Tampa Hybrids Inc. Land O Lakes, Florida Todd Thompson Sponsor: NIADA The Minivan Store Winter Park, Florida Juan Serrano Sponsor: Sarah Langley

C and B Auto Ocala, FL Robert Brown Sponsor: Amelia Tillman Continental an Associate Dealer of Maudlin International Continental Auto/Truck Service Center Saint Augustine, FL Leo Giannini Sponsor: Amelia Tillman Dixie Way Motors Inc Lantana, FL Felipe Botello Sponsor: Amelia Tillman Empire Auto Sales Inc. Bradenton, FL Daniel McLoughlin Sponsor: Amelia Tillman

APRIL 2014

Hasco Medical Inc Londonderry, NH Pamela Decker Liberty Hauling Inc Polk City, FL Ruth Wagner Sponsor: Sarah Langley MJC Classic Cars, LLC Lakeland, FL Michael Calhoon Paradise Motors Bradenton, FL Mark Walzer Sponsor: Amelia Tillman Passport Leasing Corp. Ft Lauderdale, FL Michael Gaddis Sponsor: prior contacts Town & Country Select, Inc. Bushnell, FL Robert Sanchez Sponsor: Nicole Lee

Gen-X Motors Merritt Island, FL Raoul Cleveland Sponsor: Sarah Langley

The Prestige Gallery Tallahassee, Florida Colby Hornsby Sponsor: www.FIADA.com

APRIL 2014

30+ Year Members 3445 Car Store, Inc. Orange County Motors, Inc. 20+ Year Members Bob Oliva Motors, Inc. Hawley Motor Sales, Inc. K.K. Car Company, Inc. Mancini Automotive, Inc. O’Donnell Automotive Paragon Auto Sales, Inc. Ray Whitts Used Cars

8 — Independent Dealer — May 2014

Taylor Morgan, Inc. dba Network Auto Sales Saint Petersburg, FL Orlando, FL

Pompano Beach, FL Sarasota, FL Lake Worth, FL Hudson, FL Orlando, FL Interlachen, FL Holly Hill, FL

10+ Year Members Dewitt Motors Fleet Street Remarketing Sides Cars-Trucks Southeast Fleet Auto Sales, Inc. Under 10 Year Members A & B A/S of Jacksonville, Inc. Auto Use

Jacksonville, FL

Sarasota, FL Largo, FL New Smyrna Beach, FL Clearwater, FL Chipley, FL Andover, MA

Continued on Page 10. www.fiada.com

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April 2014 — Independent Dealer — 9

BACK TO THE BASICS

a problem that needs to be worked through together because you both desire a long-term relationship.

I Love You, and This Time I Really Mean It! Every good relationship requires commitment. When it comes to your customers, show them you are ready for it. By TERRY MYERS

he above is a cute final comment made by a husband to his wife in a popular TV commercial. He hates commitment. How about you? If you hate commitment then you only plan to be in business for one year or less. The promise of commitment at the time of the sale is what the customer hopes to hear. Do you really mean it? Really, really mean it? Since the customer buys on average 12 vehicles during his or her lifetime you will not have a shot at the next sale unless,

and until, they know you really mean it. How do you know if someone’s commitment is real to you? Simple, by the other person showing it. It is not so much the talk, it is the walk! The same is true for your customer. The best sales/success tool you have at your disposal is the truth. Most customers expect that you will make a promise and will suspect that you will not fulfill it. Show them that you really mean it by keeping your word. If you say, “I’ll call you,” then call them, and do it when you say you will. Schedule follow-ups; keep in touch at least twice-a-year. Encourage communications between you and the customer, even if there is a problem. Show them you care about them and your relationship with them. Success in a good marriage or partnership means you communicate even if there is

What is that customer worth? If you make on average (fill in the blank) $_____________.00 per sale, the total lifetime worth of the customer is (fill in the blank) $_____________.00, using the twelve times formula. What are you willing to invest to attract that much in sales? What are the chances there is a need for a second vehicle within the same family? The math may have just doubled to $_____________.00. A referral could bring the total up to $??????????????????. Do the math! It is important to keep in touch during good times. It is equally important during challenging times as well. If you think love/commitment is expensive, try divorce! If you don’t mean it, don’t say it. Articles are the opinion of the author and are not intended to be regulatory, 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. Copyright 2014, Terry LB Myers, author, lecturer, FIADA instructor, FADS owner/instructor.

RENEWING MEMBERS continued from Page 8. Under 10 Year Members Brown’s Auto Sales Bud Lawrence Used Cars Car Solutions LLC Chicago Motors Inc Dimension Motors Inc. Dominicks Auto Inc East Coast Insurors, Inc. Enterprise Leasing Company Everyone Drives Auto Sales, LLC Galaxy Auto Services, Inc. Gator City Motors Greenfield USA Wholesale LLC Insurance Auto Auction

10 — Independent Dealer — May 2014

Leesburg, FL Deland, FL West Palm Beach, FL Miami, FL Lauderhill, FL Holly Hill, FL Ormond Beach, FL Tampa, FL Tampa, FL Orlando, FL Gainesville, FL Hollywood, FL Orlando, FL

Jimmie’s Auto Sales Kurkin Brandes LLP Motorcars of Distinction Motorgroup Naples Motorsports PFS Financial Services of Florida Powerfun Inc. RDK Truck Sales Sanfer Sports Cars, Inc. Southern Country Auto Sales Spanos Imports The Auto Source, Inc. United Auto USA Corp

Madison, FL Miami, FL Riviera Beach, FL Delray Beach, FL Naples, FL Tampa, FL Tavares, FL Tampa, FL Miami, FL Gainesville, FL Daytona Beach, FL Orlando, FL Dollard des Ormeaux, QC

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SOCIAL MEDIA

If You Pin It, They Will Come As customers become more and more mobile, social media marketing cannot be ignored. Take a look beyond Facebook and YouTube and consider Pinterest as part of your strategy. By CHRIST Y TAYLOR

know what you are saying, “please, not another article on social media.” Before your eyes roll and tune out just give me a few minutes to explain why this one might be worth reading. If I haven’t made my point and you aren’t engaged by paragraph five then you have my permission to flip the page. First things first, do you know what Pinterest is? It is basically a visual bookmarking system for web pages that you either like to visit or want to visit. The web has really become like its own universe. It’s vast, seen by everyone and expanding at an astronomical rate. There is absolutely no way to keep up with it

12 — Independent Dealer — May 2014

all. Like stars in the sky, with millions of new websites popping up every month it is impossible to count them all. If only there was a way for an individual to chart and map the ones that were important to them. Oh wait, that’s what Pinterest does. Pinterest allows its users to create a collection of boards to house photo and image “pins” that trace back to the original internet source it came from. Window shopping for the World Wide Web, if you will. Pinners organize boards based on interests, hobbies, resources, etc. then either repin items from a main stream of other pins (similar to the Facebook status update) or pin original material they have discovered online and want to remember or want to go back to in the future. Searchable categories range from recipes to inspirational quotes to tattoos. There’s a pin for everything, and everything can have a pin. Since it launched three years ago, its now 70 million users have created 750 million boards with 30 billion pins. Pinterest is one of the fastest growing social media sites and is second only to Facebook as a driver of

traffic to other websites, facilitating almost 3.6 percent of all online referrals which is more than YouTube, Google+ and Reddit combined. With that kind of search optimization, it really can’t be ignored. Granted, the majority of Pinterest users are women (about 60 percent), but more men are joining every day. Here’s how I know—my husband has started using it. I introduced it to him over the weekend and within 10 minutes he had hijacked my account and pinned over a dozen images of cars and motorcycles. That’s what got me thinking that Pinterest could really be an untapped resource for independent dealers. It’s free to use (even as a business), it can skyrocket your SEO results and rank you higher on the major search engines and it can help you connect to a wider group of customers and communities that you otherwise would not have reached. As promised in the lead, I think I’ve made my point about why Pinterest is important to at least start considering in your internet marketing strategy. Now, let’s talk about how to make it work for your dealership and what you can do to be successful with it. Use Great Photos Pinterest really plays to that primal urge of scanning for objects that are beautiful, bright and shiny. It’s a visual medium, so the content that is posted on it needs to be visually appealing. That does not mean you have to stage a high-end photo shoot for ever image you want to pin, but just as you do with other marketing channels, you want high-quality, good-composition photos. The photos you post on your website should be high-quality, the vehicle should look spotless and the background should not be distracting, and that means they will make perfect Pinterest pins as well. When you Continued on Page 14. www.fiada.com

FIADA IS ON THE AIR WITH NEW WEBINARS WHAT’S UP NEXT:

Tuesday, May 20 at 10:00 A.M. Process like a Pro—Plain Talk on PCI Compliance and Influencing Consumer Behavior Presented by Jon Leedom, Melissa Leedom and Dan Steiner of the Leedom Group Plan to attend our next FIADA live webinar coming up on Tuesday, May 20 at 10:00am titled “Process like a Pro—Plain Talk on PCI Compliance and Influencing Consumer Behavior.” Come learn about PCI Compliance and other payment control issues. This webinar will be presented by Jon Leedom and Dan Steiner from the Leedom Group and Paymaxx Pro. Get ready to hear about Compliance, Convenience Fees, and Surcharge Rules. Log on at www.FIADA.com to register for the webinar.

Jon Leedom

Melissa Leedom Dan Steiner

IN THE ARCHIVES:

FIADA is now offering recorded versions of our past webinars as an “on-demand” option. This on-demand service is free for members and $10.00 for non-members. To register for an on-demand or live seminar, go online to www.FIADA.com and click on Dealer Training School/Webinars. Watch archived videos now on your mobile device or smartphone. Scan this code to access our YouTube site.

WWW.FIADA.COM www.fiada.com

NEW VIDEOS ARE UPLOADED REGULARLY. SUBSCRIBE TO OUR CHANNEL. April 2014 — Independent Dealer — 13

PINTEREST FOR AUTO DEALERS continued from Page 12.

create a pin, Pinterest basically pairs your website with a thumbnail image of the page. You have a choice as to which image you want to choose, but the choices only come from images that are included on the webpage you are linking to. Keep this in mind when you are choosing which images to upload to your site. Think about different angles you can take the photo from, or different backgrounds you can use, to make it really stand out from all the others. When users are scanning a category, such as Cars and Motorcycles, they will be bombarded with the same standard product shots and set-ups. Our eyes are trained to look for new things and dismiss the old. To have the most success with Pinterest, your photo needs to be the one that breaks the pattern.

customers to pin memories of their first car to it. These are the kinds of things that help new customers find you, discover who you are and come talk to you when they are ready to buy. No one says you can only pin pictures of cars. The web is full of information on car maintenance, safe driving tips, fuel-saving ideas and more that provide perfect fodder for Pinterest pins. DIY and how-to’s are extremely popular on Pinterest so get your service manager to make a few YouTube videos about proper car maintenance or put an article on your website about how to buy a car. It sounds obvious, but it works. If your dealership has a blog, make sure you embed an image into each post so you can link it to one of your Pinterest boards. There are tons of interesting infographics circulating in cyberspace that you can include, or hire a graphic

designer to create one for you (I know a good one who can help). Connect With Other Pinners “Like our page” is so last year. The new marketing catchphrase is “follow us on Pinterest.” Just like you spent time cultivating your Facebook followers and fans, you will need to find ways to bring people into your Pinterest stream. Start by searching on Pinterest and following the boards of businesses and people in your community. One easy trick is to type in your city and surrounding cities in the search bar, then click on “pinners.” You’ll find results for many businesses and individuals in your area that you can start to follow.

Another tip would be to start following national brands, like vehicle manufactures, aftermarket products, Find Cool Content and car enthusiast magazines. Find Users can spot a business that is using boards that have synergy with your Pinterest just to “sell” something dealership or selling cars from a mile away, and and start following them. they will not repin you. The more users you follow, We all know you are not Pinterest Pinning Tips: the more chances they will going to sell a car directly follow you back. You can on Pinterest, that is not Describe your dealership in six words. also add the Pinterest logo what the site is designed to Create six boards from those words. Include and link on your website, do. What you are selling descriptions for each board. and add it to the social is your dealership, your media icon list you might brand, your image. You Choose images that are eye-catching and already have on business want users to know you sell have broad interest. cards, marketing materials cars, but understand why and advertisements. you sell them. Most car To include a price overlay over the dealers get into the business photo, include a dollar sign ($) in the The possibilities of Pinterest because they just love cars. pin description. Pinterest automatically are all there, you just have So, make a “Wish List” generates the price tag. to decide how to use them. board or “The Ultimate You can shrug it off as just Collection” where you find Be creative with Board titles. “What Should another fad if you like, but images of your favorite I Drive” as a board to pin cars from your if your competitors haven’t cars and pin them with a lot is a lot more appealing than “Featured you’ll be sorry you didn’t get comment about why you Inventory.” on board. like it. Or, be humorous and make a board of “The Realize you won’t sell cars on Pinterest Worst Trade-ins.” Think but you will drive traffic to your website Christy Taylor is a writer, outside-of-the-box and and develop relationships with potential graphic designer and editorial make a “My First Car” consultant. Visit her website at customers and referrals. www.crossroads-com.com. board, and encourage your 14 2014 2014 14— —Independent IndependentDealer Dealer— —May February

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May 2014 — Independent Dealer — 15

L E G I S L AT I V E U P D AT E

FIADA Scores Two Major Wins This Session BY SANDRA MORTHAM, FIADA LOBBYIST

he Florida Legislature concluded its 2014 Session on May 2, 2014 taking advantage of a budget surplus to pass the largest budget in history. The $77.1 billion budget provided $20 billion in education funding and $10.1 billion for the Department of Transportation. There were over 1,900 bills filed but only 258 passed both the House and Senate. The Legislature ended at 10:40 pm Sine Die.

Sometimes our biggest job is making sure bad bills don’t pass the legislative process. There were a number of issues that could have placed additional burdens on auto dealers such as increased rules on notaries, tire requirements, employee discrimination, sales tax rule changes, and so on. Generally speaking, less government regulation is best for businesses to prosper.

Thanks to Rep. Doug Broxson and Senator Jeff Brandes, the surrender stop legislation will be back on the books once the Governor signs the Deptartment of Highway Safety bill. Both Broxson and Brandes worked right up to the last night at 8:00pm getting this bill over the finish line. The bill will go to Governor Scott who will decide whether to sign or veto. We will continue to advocate for this important issue and let you know when it is official.

I want to take this opportunity to thank FIADA and its members for making phone calls and sending emails during session when help was needed with legislators. Many thanks goes to your Executive Director Lisette Mariner for attending committee meetings as well. It all makes a difference!

The other victory was the passage of SB156 which took tag and registration fees back to pre-2009 levels. Senator Joe Negron of Martin County did a phenomenal job of shepherding this bill that reduces the tax burden on motorists by $400 million. He received the FIADA Legislator of the Year award for this huge accomplishment.

16 — Independent Dealer — May 2014

If you have not yet joined the PAC, please do so today. Joining the PAC is another avenue to get your voice heard. Most of the legislators will be running in 2014. Campaign contributions are still one of the most effective ways to gain access to the system and a strong healthy PAC will ensure that FIADA’s issues and concerns will be heard in the future.

www.fiada.com

Support the FIADA PAC Fund! Your PAC Contribution helps spread awareness and gain support of issues affecting independent dealers in the state’s capitol.

CONTRIBUTION INFORMATION Contributor’s Name:_________________________________________________________________________ Dealership/Company:________________________________________________________________________ Street Address, City, State, Zip:____________________________________________________________________

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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

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May 2014 — Independent Dealer — 17

AUTOMOTIVE RECONDITIONING

More on World Class Reconditioning Give as much attention to the way you detail your cars, and your inventory will gain new life. Here are the rest of the tips to ensure a first-class fleet. BY Jay Prassel

ast month we discussed how to detail the vehicle’s exterior, specifically the washing and waxing of the paint. This month we’ll continue with the process necessary for “world class” reconditioning. Washing & Drying Washing is the removing loose dirt and road film from the exterior surfaces and not just hosing it off. You’ll need a good car wash shampoo and a sponge or wash mitt. Soapy water prevents dirt from scratching the paint. Poor quality products may clean and dry the car, but they will not protect

automotive paint finishes. We suggest using a paint-safe microfiber or 100% cotton detailing towels. Wash Mitt or Sponge? We recommend a genuine wool wash mitt that releases dirt easily. They won’t put swirls in the paint, but remember that they won’t last as long as sponges. The natural sea sponge is not a good idea as it holds dirt and grit. For drying, a sheepskin chamois towel has long been the tool of choice because the naturally soft leather is extremely absorbent. You also now have the choice of using drying towel or synthetic chamois. To speed up the drying process, you may use a landscape type blower or even a ShopVac that is reversed.

the finish. Over a period of time these inexpensive products will cause problems and destroy the paint finish. Bath towels incorporate a heavy polyester thread that can scratch 18 — Independent Dealer —May 2014

About Car Waxing The car finishes of today, are only .004 to .006 of an inch thick and over time they will fade and deteriorate. Car waxing provides a renewable and transparent barrier between the finish and a hostile environment. Auto wax also makes the car, new or old, look better. Many quality car

waxes combine enriching oils that “wet” the surface with protective formulas of Brazilian carnauba or modern polymers for a high-gloss shine. Which is the best wax? Waxes are made from a natural wax (Brazilian carnauba)or synthetically made of polymers and acrylic resins. They are designed to make the surface of a car reflect more light. Paint sealants (synthetic car wax) create brilliance while Carnauba-based car waxes add depth and warmth to a car. Synthetic waxes create a very bright shine. However, many enthusiasts feel synthetic waxes lack depth and richness. Clear Coat Finishes and What They Need The clear coat finish is designed to add depth and gloss so why should you add anything else? Waxing is necessary for protecting the car’s paint from the environment. In addition to sealing and protecting, car waxes and auto sealants also improve the appearance of freshly washed and polished paint. What Is Required For The Perfect Shine The paint finish must be in good condition, free of surface contamination, polished, protected and waxed. Here is a quick, step by step process Good Paint Condition For the first year or two, the paint is relatively oxidation-free and in good condition. If you maintain the paint with regular washing and protection, oxidation will remain minimal and cleaning the paint will be a minor task. Continued on Page 20. www.fiada.com

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May 2014 — Independent Dealer — 19

MORE ON RECONDITIONING continued from Page 18.

Remember! Your vehicles need to set the benchmark in your market. Take the time to detail them properly and you will reap the reward. Contamination-free Debris from the road, such as bugs, tar, bird droppings, acid rain and oil will embed itself into and on the paint. If left on the vehicle, it becomes difficult to remove. Remember that we discussed earlier the need for washing with a quality shampoo? These contaminants must be removed as you cannot wax over them. Polishing Polishing is required to remove minor blemishes, surface scratches, swirl marks and scuffs. When properly polished, the paint finish will feel perfectly smooth where your hand should glide easily over the surface.

best protection and that synthetic coatings are five to ten times more durable than the carnauba waxes. Waxing Waxing is the final step of “The Perfect Shine” and it takes a pure, natural carnauba wax. Pure carnauba waxes are made from a blend of carnauba waxes, beeswax and natural oils. A quality show car wax gives paint depth and warmth. The Perfect Shine is a simple process that reliably achieves the best shine possible on any paint finish. Grab the auto detailing supplies listed here and follow these steps:

Glazed Glazes are paint treatments used to fill small surface scratches and swirl marks. Ultra-fine polishes and other similar auto detailing supplies are used to refine the paint finish to achieve or restore full gloss.

#1: Wash & Dry Wash the car twice with a high concentration of car wash solution. A gloss shampoo is recommended. If the car is excessively dirty, you can use dish-washing liquid. If you do, be sure to rinse thoroughly.

Protected Paint is protected when it’s sealed from the elements. Some industry experts feel that synthetic sealants offer the

# 2: Detailing Clay After washing and drying, examine the car’s paint with the hand. If the paint is not perfectly smooth, use a paint-

cleaning clay system and clay lubricant to remove the surface contamination.. #3: Repair Paint Damage When the paint is clean and free of surface contamination, examine again for minor surface damage. # 4: Restore Finish Clarity Now it’s time to glaze the paint to bring out its full gloss potential. For this I recommend a swirl-remover polish formula. Swirl-remover polishes are designed to remove fine swirl marks, not the heavy paint damage removed in the previous step. If the paintwork is already in perfect condition, you can skip this step. # 5: Seal and Protect Once perfectly polished, the paint is ready to be sealed. # 6: Make it Pop! For final buffing of the carnauba wax, use a buffing towel. Remember! Your vehicles need to set the benchmark in your market. Take the time to detail them properly and you will reap the reward. Jay Prassel of Premier Performance Group, LLC is a national trainer and consultant who has worked for over 38 years helping dealers achieve net profit improvement. Contact him at 847.910.1681 or Jay@ Prassel.com

www.niadaconvention.com 20 — Independent Dealer — May 2014

www.fiada.com

Nominate yourself or someone you think deserves this top honor for Floridaâ&#x20AC;&#x2122;s used car dealers. Please submit form to FIADA by June 30, 2014. Fax nominations to 850-385-3251, Email to info@fiada.com or Mail to FIADA, 1840 Fiddler Court, Tallahassee, FL 32308

ome be a part of the ultimate dealer experience of the year at the 2014 FIADA Annual Convention. This year’s theme: Pirate Party! Arrrghh...Don’t forget ye eye patches, booty, pirate garb and have a swashbuckling good time with the “best of the best” as Florida’s top dealers come together for a weekend of education, networking and fun.

TENTATIVE SCHEDULE Thursday, oct. 9, 2014 3:00 - 7:00 PM

Registration Open

6:30 - 8:30 PM

Welcome Reception

friday, oct. 10, 2014 7:30 AM - 4:00 PM

Registration Open

8:00 - 9:00 AM

Breakfast

9:00 -10:00 AM

Opening Keynote

10:00 -10:15 AM

Member Meeting/Elections

10:15 -10:30 AM

Coffee Break

10:45 -11:45 AM

Workshop

12:00 -1:30 PM

Networking Lunch

1:45 -2:45 PM

Workshop

3:00 -4:00 PM

Workshop

5:00 -9:00 PM

Exhibit Hall Opening/

Family Fun Night

saturday, oct. 11, 2014

22 — Independent Dealer — May 2014 2014 —May

7:30 AM - 3:00 PM

Registration Open

8:00 - 9:00 AM

Breakfast with Exhibitors

9:00 -10:00 AM

Workshop

10:15 -11:45 AM

Keynote & Awards Ceremony

12:00 - 2:30 PM

Lunch with Exhibitors & Exhibitor Giveaways

2:45 - 3:45 PM

Workshop

3:00 - 5:00 PM

Exhibitor Breakdown

4:00 - 5:30 PM

Workshop

5:30 - 7:00 PM

Closing Reception

7:00 - 9:00 PM

Past Presidents Dinner

www.fiada.com

2014 FIADA Annual Convention Registration Form COMPANY INFORMATION

Company:___________________________________________________________________________________________________________ Address:__________________________________________________ City, State, Zip:_____________________________________________ Phone:___________________________________________________ Fax:______________________________________________________ E-mail:___________________________________________________ Website:__________________________________________________

REGISTRATION INFORMATION FIADA MEMBER DISCOUNTED REGISTRATION RATES

EARLY BIRD (2/1 - 8/31)

REGULAR (9/1 - 10/3)

ON-SITE (10/4 - 10/11)

[

] $249

[

] $299

[

] $349

Badge Name:___________________________________________________________

[

] $195

[

] $195

[

] $195

Badge Name:___________________________________________________________

[

] $195

[

] $195

[

] $195

[

] $100

[

] $100

[

] $100

[

] $99

[

] $124

[

] $149

Badge Name:___________________________________________________________

[

] $299

[

] $349

[

] $399

Badge Name:___________________________________________________________

[

] $195

[

] $195

[

] $195

Badge Name:___________________________________________________________

[

] $195

[

] $195

[

] $195

[

] $100

[

] $100

[

] $100

[

] $124

[

] $149

[

] $175

MEMBER

FULL ACCESS PASS Badge Name:___________________________________________________________

ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass)

SPOUSE FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:___________________________________________________________ EDUCATION PASS (Does not include meals) Badge Name:___________________________________________________________

NON-MEMBER REGISTRATION RATES

FULL ACCESS PASS NON ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass) MEMBER

FULL ACCESS AND SPOUSE FULL ACCESS PASSES includes all meal functions, seminars and exhibit hall access and is eligible for continuing education credit. Additional Full Access passes and Spouse pass are only available with a Full Access registration. Valid FIADA membership required for FIADA member registration rates. CHILD REGISTRATIONS AVAILABLE Contact FIADA at (800) 237-0448 for details and to register.

TOTAL:

PAYMENT METHOD [

] I have enclosed a check made payable to FIADA

[

] I will be using a credit card

Name (as it appears on card):_____________________________________ Company:______________________________________________ Credit Card Billing Address:______________________________________________________________________________________________ Credit Card Number:________________________________________________________________

Exp Date:_________________________

Authorized Signature:_______________________________________________________________ CC Security Code:___________________ CANCELLATION POLICY: If cancellations are received in writing before 5pm on Sunday, September 21, 2014, we will refund your registration fee. If cancellation is received between 9/22/14 and 9/30/14, we will refund your registration fee less a $25 processing fee. Fees cannot be refunded for registrations cancelled after 10/1/13 or for no-shows. Photo/Video Release: By registering for the 2014 FIADA Annual Convention, I hereby grant permission to use any and all photographic imagery and video footage taken of me at this event and activities pertaining to this event, without payment or any other consideration. I understand that such materials may be published electronically or in print, or used in presentations or exhibitions.

HOTEL INFORMATION: Omni ChampionsGate. Hotel stay is separate from convention registration. Reservations must be made BEFORE SEPTEMBER 21, 2014 to qualify for group discount of $149 per night (plus tax) For reservations call (800) THE-OMNI/(800) 843-6664.

Mail: FIADA, 1840 Fiddler Court, Tallahassee, FL 32308

Fax: (850) 385-3251

Online: www.FIADA.com

Call: (800) 237-0448

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. COMPLIANCE TIP When we review deal jackets, we frequently discover two, three or four arbitration agreements in the various deal documents. We’ll see one in the retail installment sales contract, one in the buyers order and one in one or more F&I products like GAP or a service contract. Courts don’t like it when they encounter multiple arbitration agreements and have refused to enforce any of the agreements when they do. The compliance tip? Go count the number of arbitration agreements in your deal jackets. If you find more than one, schedule a visit with your lawyer. Federal Developments On March 21, the Federal Trade Commission entered into a proposed consent order with Courtesy Auto Group, Inc., resolving allegations that the Massachusetts-based dealership violated the FTC Act and the Consumer Leasing Act by advertising that consumers could lease a vehicle for $0 down with specific monthly payments when, in fact, the advertised amounts excluded substantial fees and failed to clearly and conspicuously disclose certain lease-related terms. The proposed consent order prohibits the dealership from misrepresenting the cost of leasing a vehicle, the cost of purchasing a vehicle with financing, or any other material fact about the price, sale, financing, or leasing of a vehicle. The dealership also is prohibited from stating the amount of any payment, or that any or no payment is required at lease inception, without clearly and conspicuously disclosing the terms required by the Consumer Leasing Act. 24 — Independent Dealer — May 2014

On March 6, the Consumer Financial Protection Bureau’s Office of Servicemember Affairs released a report providing a snapshot of complaints the CFPB has received from servicemembers, veterans, and their families from July 21, 2011 through February 1, 2014. The report covers more than 14,000 complaints from military consumers. The report details the monetary relief amounts and nonmonetary relief that military consumers have received since July 2011. According to the report, mortgages, debt collection, and credit cards are the top three complaint categories among military consumers. The CFPB released its first report on military consumer complaints in the spring of 2013.

debt collectors that engage in deceptive, unfair, or abusive conduct. “Phantom” debt collectors engage in unfair, abusive, or deceptive conduct by attempting to collect on debts that either do not exist or are not owed to the debt collector. The FTC also noted its concern about (1) the collection of a debt that is beyond the applicable statute of limitations; (2) whether communications are actionable under the FDCPA if they are part of a legal pleading; (3) unlawful arbitration tactics; and (4) collection tactics that pressure consumers into abandoning their rights under the FDCPA, such as debt collection from consumers while they are receiving treatment at a medical facility.

On March 5, the FTC released a summary of its debt collection activities in 2013. The FTC provided this summary to the CFPB on February 21 in order to assist the CFPB in preparing its annual report to Congress on the Fair Debt Collection Practices Act. The FTC noted that its debt collection program is a 3-pronged effort: (1) law enforcement; (2) education and public outreach; and (3) research and policy initiatives. According to the FTC’s summary, law enforcement investigations and litigation comprise a substantial portion of the FTC’s debt collection activities. The summary discusses cases that represent a concerted effort by the FTC to target unlawful debt collection practices, including false threats, harassment or abuse, and attempts to collect on “phantom” payday loan debts. The FTC states that one of its highest priorities continues to be targeting

On February 27, the FTC released its report on the top consumer complaints for 2013. The FTC received more than two million complaints overall in 2013 through its Consumer Sentinel Network. Identity theft continues to top the list of consumer complaints, with 14 percent of complaints falling into this category. Seven percent of complaints fell in the “banks and lenders” category. Only four percent of complaints were “auto related.” The report details national data and provides a state-by-state accounting of top complaint categories and a listing of the metropolitan areas that generated the most complaints. State Enforcement On March 6, Florida Attorney General Pam Bondi announced a settlement with Gatorland Toyota, resolving allegations that the dealer’s former sales representatives engaged in highwww.fiada.com

pressure sales tactics and failed to clearly and conspicuously disclose the cost of products and services associated with the purchase and lease of a vehicle. LITIGATION Out-of-State Dealer Who Sold Car on eBay to Oklahoma Resident Subject to Jurisdiction in Oklahoma: An Oklahoma resident bid on a car with a 30-day warranty listed for sale on eBay by a Tennessee dealership that was owned by a Tennessee resident. The owner sent an email to the Oklahoma bidder prior to the closing date of the auction suggesting that she contact him to negotiate a “buy it now” price. The bidder called the owner, but she did not opt to “buy it now.” After the bidder won the auction, the owner sent the purchase contract to the bidder in Oklahoma, where she signed the contract and returned it to Tennessee. After the vehicle was shipped to Oklahoma, the bidder determined that the vehicle was not in the condition advertised and sued the dealership and its owner in Oklahoma state court for fraud and violations of the Oklahoma Consumer Protection Act. The defendants moved to dismiss the case for lack of personal jurisdiction, claiming they did not have sufficient minimum contacts with Oklahoma. The trial court granted the motion, and the Oklahoma Supreme Court reversed and remanded, concluding that there were sufficient minimum contacts because the owner negotiated directly with the bidder, the vehicle was subject to a warranty while it was titled and driven in Oklahoma, and the defendants had sold cars to other residents of Oklahoma. See Guffey v. Ostonakulov, 2014 Okla. LEXIS 8 (Okla. February 11, 2014). Fourteenth Amendment Claims against Repossession Company Allowed to Proceed Where Company May Have Acted in Concert with Police: Two employees of a repossession company attempted to repossess a truck from the owner’s home. A police officer ended up being called to the scene. www.fiada.com

Ultimately, more police officers arrived at the scene, the truck owner was arrested, and the repossession company employees removed the truck. The truck owner sued the police officer and the repossession company and its employees involved in the repossession, alleging, among other claims, that they violated his Fourteenth Amendment due process rights by unlawfully seizing his property. The defendants moved for summary judgment, and the U.S. District Court for the Northern District of New York denied the motion. The repossession company defendants argued that the Fourteenth Amendment claim against them must be dismissed because the private repossession did not rise to the level of state action. The court concluded that summary judgment on this claim was inappropriate because there were issues of material fact regarding whether the repossession company defendants acted

under color of state law based on their interactions with the police. In support of their argument that they did not act in concert with the police during the repossession, the repossession company defendants argued that they had taken possession of the truck prior to the first police officer arriving and prior to the altercation that allegedly caused the truck owner’s arrest. The owner argued that it was only after the police arrived that the repossession company defendants were able to tow his truck off his property, and, but for the police, he would have continued to resist the repossession. See Boles v. The County of Montgomery, 2014 U.S. Dist. LEXIS 18265 (N.D.N.Y. February 13, 2014). Tom (thudson@hudco.com) and Nikki (nmunro@hudco.com) are partners in the law firm of Hudson Cook, LLC. For information, call 410-865-5411 or visit www.counselorlibrary.com.

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To order, visit us at www.counselorlibrary.com/offer/spot or call us at 877-464-8326. Also follow us on: May 2014 — Independent Dealer — 25

D E A L E R O P E R AT I O N S

Get Your Business Ready for Hurricane Season Hurricane season is almost here Get a plan for how your dealership will ride out the storm if one comes ashore. By Tony Argiz, CPA, Stuart Rosenberg, CPA

he 2014 hurricane season will begin on June 1, but auto dealerships and other businesses along the Eastern seaboard and across the Gulf Coast region should make sure their disaster preparedness and recovery plans are in place now. The fact is, if a powerful storm heads our way, only careful planning can help dealers avoid the financial devastation that could otherwise accompany the surging tides and whipping winds. Given the current economic climate, some dealerships may very well be inclined to cut back on the resources they invest in preparing and protecting their businesses, but they should resist the temptation. Other dealers may be entering the season with a sense of complacency. Florida has not been hit by a hurricane since Wilma in October of 2005. Dealers as far north as New England, however, should remember that a hurricane can strike at any time in the months of June through November, regardless of past history. For any business, preparation for a hurricane means making sure insurance policies are in force, fortifying the property, having back-up systems for computers and documents and establishing an employee communications system. There also are some storm and post-storm concerns that are unique for the auto dealer industry.

Dealerships should make special efforts to secure their service departments from potential storm damage, and to have generators and other equipment that could help those departments quickly return to work. Following Hurricane Wilma in 2005, for instance, dealerships that took those steps and were fortunate to avoid major damage gained big shares of the post-hurricane business. Dealerships that re-open quickly after a hurricane also can help meet the demand for new and used vehicles to replace those destroyed during the storm. We all modify our work and family schedules when the National Hurricane Center issues watches and warnings. But disaster planning also should include planning for other natural disasters, and the daily threats of computer viruses, hackers, power surges, bomb threats, fire and employee fraud. Here are some important steps dealerships can take to prepare for and recover from disasters: Prepare The overall goal of disaster preparedness is to keep employees safe, protect essential equipment and inventory, safeguard vital electronic and physical documents and ensure business continuation. To this

end, dealerships should constantly evaluate and quantify infrastructure investments across every department. Starting at least several months before insurance policiesâ&#x20AC;&#x2122; annual renewal dates, the management of dealerships should review policies to make sure that coverage has kept pace with exposure. That review should be extensive for property and casualty policies, including windstorm, and for business interruption insurance. Business interruption insurance is critical. This type of insurance, often called business income insurance, provides money to a policyholder with claims for a pre-designated period to replace lost revenue and pay employees when a business is shut down. Dealerships should study their business interruption policies to be certain of what damages are covered. Business interruption coverage usually only applies to on-site damages from wind, fire and other specific perils. Those policies do not cover flood damage. The National Flood Insurance Program (www.fema. gov/business/nfip/) includes the option of buying business interruption coverage for flood damage. Many business interruption policies do not pay claims when a business is shut due to off-site events, such as electrical damage when a hurricane knocks down power lines. The preparation stage also should include daily electronic backups of important documents, files and databases. Dealerships should make copies of those records and store them in an off-site, physically secure facility. Articles of incorporation, accounts receivable, client records and important personnel and administrative documents should be among the priorities for backup. Physical preparations should include having enough generators â&#x20AC;&#x201C; and the

breaks at the end of the year. Thus, it is critical to stay up-to-date on tax policy changes.

Dealerships should have an employee communications plan as well. This plan starts with each employee having a list of all employee addresses, home phone and cell phone numbers. A call system should be established, with department heads and other “captains” calling designated employees to find out if their homes suffered damage and if they need any assistance.

Test the Plan A dealership should conduct a dry run of the process for backing up

Other key preparation issues include:

computer files. This will reveal the amount of time it would take to duplicate files under emergency conditions. Testing the employee communications system can uncover Continued on Page 29.

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necessary gas – to operate the office and other facilities if electricity is off after a storm.

Credit: Because insurance payments can be delayed, it is important to maintain a sufficient line of credit for business continuation. Tax issues: Depending on the magnitude of the disaster, federal aid may be available in the form of tax

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Choices. That’s the advantage with Dealers Insurance Services. No matter what the insurance marketplace throws at you, we’ve got your back. DIS has spent the past 20 years building solid relationships with the most respected carriers in the industry while at the same time always looking for the most current and innovative options to these established programs.

28 2014 28— —Independent IndependentDealer Dealer—January — October 2013

www.fiada.com www.fiada.com

HURRICANE SEASON continued from Page 27.

areas of vulnerability, including incomplete phone lists and problems with equipment. If a dealership finds potential problems, it should consider setting up an out-of-state toll-free number that employees and clients can call for updated information. A walk-through of the facility during the days when your area is in a hurricane’s projected path might reveal the need to move some vehicles from areas near high trees or from areas prone to flooding. That precaution can save substantial amounts in insurance claims.

without mimicking all the conditions of a disaster. Recovery After a hurricane or other disaster, recovery for a dealership involves rebuilding the physical structures and rebuilding the financial structure.

In addition, dealerships should consider testing disaster situations with banks for the reliability of credit and withdrawal requests.

By combining traditional accounting practices and investigative techniques, forensic accounting can provide a disaster-stricken dealership an advantage when legal disputes arise. Forensic accounting is also invaluable when insurers question claims and when important financial records are lost. By recreating documentation, forensic accounting can help decipher the true value of property and help rebuild operations processes.

Most of the testing can be simulated, and critical aspects can be checked

When a dealership is a victim of digital tampering, sabotage or

fraud, forensic accounting can help to uncover the truth and resolve problems. Dealerships that have planned for the worst can be steps ahead of their competition in the recovery process after the lights go off, the walls come down or the computer systems fail. Accounting is part of all stages of planning and testing for disasters. But a dealership does not gain the full benefits of an accountant’s services and advice until after a disaster strikes. That’s when the work of accounting and of forensic accounting is just getting geared up. To contact Tony Argiz, e-mail targiz@ mbafcpa.com; to contact Stuart Rosenberg, e-mail srosenberg@mbafcpa. com; or call (305) 373-5500. Reprinted from Dealer Business Journal

INDUSTRY NEWS AFS Acceptance Chooses defi SOLUTIONS LOS Technology

CFPB and Important Microsoft Security Updates

AFS Acceptance, LLC (AFS) recently announced the conversion of their Loan Origination System (LOS) to the defi SOLUTIONS SaaS platform. With defi SOLUTIONS, AFS can easily configure their LOS system to meet expanding markets and ongoing portfolio needs. defi SOLUTIONS provides the capability for lenders to implement quickly and instantly configure the system internally without costly and time-consuming program development. “It was primarily the flexibility and control we’ll have that led us to our decision to choose defi SOLUTIONS,” said Scot Seagrave, President of AFS Acceptance, LLC. “After reviewing most of the LOS solutions out there, it was apparent that defi provided us with the most robust solution, yet still offers the simplicity to our end users allowing us to provide even better service to our dealers.” “Utilizing our technology, AFS can continue to focus on industry-leading dealer service while we manage their lending technology,” said Stephanie Alsbrooks CEO and founder of defi SOLUTIONS.

With all the recent coverage and talk about the impact of the Heartbleed virus affecting millions of websites and putting passwords and account details in jeopardy, it is more important than ever to make sure your computers systems are protected and up-to-date. Under the CFPB rules, you are responsible to keep your customers’ information safe as possible and one of the ways is to keep all Windows Updates and Anti-Virus Software current. For example: You can enter a customer’s information in some websites, a keylogger* program on your computer will copy everything you type and they will steal all the information! One way to stay current and make sure you are compliant is to frequently check Microsoft update fixes which are archived on a monthly bais. Here is a link to add to your bookmarks and stay current and compliant: https:// technet.microsoft.com/library/security

www.fiada.com

May 2014 — Independent Dealer — 29

F I N A N C I N G A N D F LO O R P L A N S

Manage Your Inventory Efficiently in the Summer Are your June to September sales stagnant? Follow these three tips to help you beat the slowdown of summer By Lori Kahre

ummer can be a challenging time of the year for used car dealers. It is widely expected throughout the industry for volumes to become stagnant and retail sales to be passive between June and September. Car sales dwindle in the summer due to families’ spending money on vacations, kids’ summer camps and sprucing up their landscaping. After the highs of tax season, the summer blues can be a difficult transition. Remarketing institutions plan for a slowdown and dealers should too. It’s important for dealers to be flexible in their buying and selling so that they can be both competitive and profitable in the market. In the remarketing industry, there are three universal truths when it comes to efficiently managing inventory: use your working capital efficiently, buy smart and take advantage of resources that provide information on wholesale industry

30 — Independent Dealer — May 2014

trends. By following these tips below, you will be better prepared to deal with the slowdown of summer. Be more efficient with the use of your working capital Floor planning is a great way to balance credit and working capital to maximize your cash flow. This balancing act is oftentimes the lifeblood of a dealer’s business and the fuel for growth. However, ineffective use of working capital and under-capitalization, among other factors, can contribute to a dealer going out of business because they can’t keep up with their working capital. Simply put, the more cars you buy and sell, the greater the need to manage your cash flow. For years, floor planning has been a resource to help loosen up working capital for dealers. What would you do with increased working capital? Would you advertise more? Hire a new sales person? Repave your lot? The list goes on, as the benefits of having working capital for any small business will only keep

you from experiencing failure. Simply put, floor planning provides you the ability to keep your lot full…full of cars and customers. Buy smart It might be tempting to buy that snazzy sports car because it looks nice, but is it a good price and does it make a potential profitable addition to your inventory? Going to auction with a plan of how much you are willing to spend can help save you from those “impulse buys” that may turn into buyer’s remorse down the road. Different cars sell better in different seasons. In the summer, you are going to get more business for convertibles, recreational vehicles and motorcycles than for trucks and SUVs. Make sure you’re buying vehicles that will sell well and won’t be sitting on your lot for months and months. Watch wholesale industry trends There are some valuable resources available to dealers to stay current on the latest industry trends and happenings. The NIADA publishes a Used Car Industry Report every June that provides analysis and an overview of the used car dealer and used car marketplace. Additionally, Manheim publishes its own Used Car Market Report annually as well as a monthly Industry Brief. Both of these sources have a wealth of knowledge provided by the largest auction house in the world. Many trade publications and online resources, such as Automotive Digest’s monthly Used Car Market Report, also provide dealers with knowledgeable information to help them understand pricing and other developments in the industry. Lori Kahre is the Communications Manager for NextGear Capital. Contact her at 317.571.3845 or email at lkahre@ nextgearcapital.com www.fiada.com

2013-2014 FIADA EXECUTIVE COMMITTEE:

DINO MERCURIO President Independent Credit, Inc. West Palm Beach, FL (561) 686-8673

JIM WINTERICK, SR. CHRISTOPHER LEEDOM Phil Risley Senior Vice President Chairman of the Board Secretary Gulfstream Motor Credit AutoMaxx Cars & Credit of Jacksonville Miami, FL Sarasota, FL Jacksonville, FL (305) 253-2335 (941) 309-1111 (904) 616-4074

Lisa Compagno Regional Vice President Palm Tree Auto Sales Stuart, FL (772) 288-2099

FRANK FUZY Regional Vice President Century Motors of S. FL Pompano Beach, FL (954) 785-0369

Govinda Romero Regional Vice President Autoflex LLC Gainesville, FL (407) 468-9974

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STEVE MARBAIS GEORGE HICKEY Regional Vice President Regional Vice President Marbais Enterprises, Inc. Bond Auto Sales Tampa, FL Ocoee, FL (813) 238-7478 (407) 877-7422

PAUL MATTON Treasurer Park Auto Mall Pinellas Park, FL (727) 639-1112

www.fiada.com

May 2014 — Independent Dealer — 31

Manheim Caribbean Subasta De Autos Bo. Candelaria Carretera 865 Km 4.7 Toa Baja, PR 00949 Phone: (787) 261-7300 Sale Day - Thursdays 11:30am

General Motors Closed Factory Sales bi-weekly on Monday at 1:00 p.m.

Palm Beach Nights, Mondays, 4:00 p.m.

Toyota & Lexus Sell-A-Thon every other Thursday at 4:00 p.m.

10817 New Kings Rd., Jacksonville, FL 32219 904-768-9981 Sale: Thursday 1:00 p.m.

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Total Resource Auction every Thursday 11:00 a.m.

manheim.com | 866 • Manheim

32 — Independent Dealer —May 2014