MAY 2017
www.FIADA.com
Information and Insight for Florida Used Car Dealers
Get involved with FIADA and you will help your industry all while having a good time. Page 4
FULTON, MO PERMIT NO. 38
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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 Lisa Compagno President Scott Lanier, CMD Senior Vice President Jim Winterick, Sr. Chairman of the Board
Contents May 2017
For members of the Florida Independent Automobile Dealers Association
C O L U M N S & F E AT U R E S 4
President’s Message Lisa Compagno
6
Executive Director’s Message Lisette Mariner, CAE
8
Fun Times at the FIADA Check out the picture collage from recent FIADA events.
10
Back to Basics The latest information on sales tax credits from other states explained by FIADA Dealer Training School Instructor Terry Myers.
Terry Myers Educational Instructor
12
Top 10 Things to Know A few safeguards to keep your dealership protected from internal fraud.
Jason Berthiaume Education and Events Manager
14
Membership News
16
Let the Good Times Roll! FIADA is making big plans for the Annual Convention. Registration is now open for the state's premier event.
18
Buy Here-Pay Here: Where Do We Go From Here? Chuck Bonanno, the NIADA 20 Group National Director, will be a keynote speaker at the Annual Convention in October. Get a preview on his forecast of the Buy Here-Pay Here market.
22
Turn to Earn An informative look at best practices and helpful ideas from Cox Automotive on how to speed up the wholesale-to-retail process and increase your profits.
28
A Look at Current Legal Issues Attorneys Tom Hudson and Nicole Munro recap recent federal and legal developments of interest to dealers.
30
Industry News
Christopher Leedom Secretary Brad Joel Treasurer Frank Fuzy Regional Vice President George Hickey Regional Vice President Steve Marbais, CMD Regional Vice President Dino Mercurio Regional Vice President Brandi Noegel Regional Vice President FIADA STAFF Lisette Mariner, CAE Executive Director
Amelia Tillman Membership Director 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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May 2017 — Independent Dealer — 3
FROM THE PRESIDENT
Good Old-Fashioned Fun For All FIADA Members! BY LISA COMPAGNO, FIADA PRESIDENT
I
’d like to start this month’s message with three cheers for Frank and Gina Fuzy! Frank is a past FIADA President and NIADA President. Frank and Gina own and operate Century Motors in Pompano Beach, Florida. They were gracious enough to open their home to us on the eve of our most recent board meeting. The goal was to raise money for our PAC fund but to also have some good-old fashioned fun. The evening featured a DJ, a fully catered meal, drinks and cigars. Needless to say, fun was had by all! Not to mention, the camaraderie that was fostered through this event--priceless. We hope to create a similar atmosphere of fun and networking with all of our members through events like our town hall meetings, board of director meetings, auction drives and our annual convention. Or, let us know if you would like to host a PAC fundraiser. As for Frank and Gina’s fundraiser, we raised over $6,500! That brings the total amount of our PAC to over $38,000. The amount of our PAC fund was just one of the many topics we discussed during our board meeting. The agenda included new business regarding the state of our annual convention for 2018/2019; committee reports; a financial report; legislative discussion; an association update; and an NIADA update. With regard to our annual convention, we are going to have some company in 2018/2019. The NIADA has chosen to bring its annual convention to Orlando. We are in the process of working with the NIADA to determine whether we should host a joint convention or continue to keep ours separate. Stay tuned for more information on this as the details get worked out in the next few weeks. The membership committee, member benefits committee and convention committee each reported on their respective committee meetings.
4 — Independent Dealer — May 2017
The membership committee was excited to announce some new membership drive programs that it hopes to develop, including partnering with NextGear Capital and Copart Auto Auction to recruit new members. There was also discussion of a $5,000 grand prize membership drive that may be offered to our members. Stay tuned for more information on this membership drive as we work out the details. The member benefits committee considered two merchant services provider proposals but it did not yet have any recommendations for the Board. The convention committee considered and agreed with the Board’s position of encouraging multiple nights of hospitality suites at the convention, if vendors choose to host them. Rumor has it that we will have at least two hospitality suites this year! The committee also determined that the Saturday Gala Dinner event should be semi‐formal (suit and tie). The Exhibit Hall Grand opening will feature a wonderful Mardi Gras theme, then join us for a masquerade ball Saturday night as we honor our quality dealer, incoming board and you. This will be a great way to end your convention experience. As for the rest of the topics discussed at the Board meeting, you can read about them in various parts of the magazine. Thank you for reading and I look forward to seeing you at an event in the near future. Lisa Compagno FIADA President
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EXECUTIVE DIREC TOR’S MESSAGE
Participation in Many Ways BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR
A
s I write this, we are nearing the last day of the legislative session. Next month we will feature a rundown of the bills that passed and failed this session. But first I want to focus on you. There are so many ways you can participate in the process of shaping the industry. The FIADA PAC fund received a surge in contributions last month, thanks to a fundraiser hosted by Frank and Gina Fuzy. They raised $6,560. You don’t have to host a fundraiser to participate in the process. You can choose to donate to the fund. The PAC fund helps to elect candidates for state office that support the industry. A contribution form is located on page 26. You can also contribute online at www.FIADA.com, under the legislative tab.
they are creating. The NIADA does this for you on the federal level. Without your participation and membership we could not exist. Another way to be involved is to participate on the Legislative Committee. As a member of the association you can be the sounding board for FIADA’s legislative agenda. Let me know you’re interested by sending an email to lisette@fiada.com. Our next meeting of the FIADA board and Town Hall is always a good time to get involved. During this time we look at what happened this session, look to the future for elections, and develop a preliminary legislative agenda. Come out and be part of the process.
My daughter had an opportunity to work with Senator Perry during one week of the legislative session as a Senate Page. She got to learn firsthand what it means to be a legislator in Florida and took a deep dive into the process. As a teenager, she had tons of questions but quickly learned that legislators deal with several issues that they have no clue about. It takes groups such as the FIADA to educate them on the pros and cons of the laws
Letting us know what you think is another way to participate. As always we value your feedback. With your input whether it be by phone, email or text is always appreciated. We can only be better and stronger with your input.
Gina Fuzy, Leslie Marbais and Lisette Mariner (L to R) at the PAC Fundraiser hosted by the Fuzy's.
Marissa Mariner spent a week as a Senate Page for Senator Perry learning firsthand about the legislature.
6 — Independent Dealer — May 2017
I look forward to your future participation! Enjoy the pictures on page 8, and we hope to see you at our next event in July!
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8 — Independent Dealer — May 2017
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May 2017 — Independent Dealer — 9
BACK TO BASICS
More States Not Playing Nice With Other States' Sales Tax Credit BY TERRY MYERS
T
he Florida Department of Revenue’s form DR-123 or, as I like to call it, “Darn right. Get the ‘123 form’ signed and notarized.”, allows the Florida licensed dealer to charge sales tax at the same rate as the customer’s home state, when the customer takes ‘possession or control’ of their vehicle inside Florida. How it works: This may be as little as 0%, such as Alaska (or) up to a maximum of 6% if the customer’s state rate is equal to or higher than 6%, such as California, which is currently 7.25%. Customers taking possession of a New York vehicle inside Florida would only be charged New York’s rate of 4%. California and New York each give credit for those taxes left in Florida. Only that state’s sales tax rate is applicable. Do not be concerned about any other elements. Never ask the customer to tell you what they think sales tax is in their state. They will lump all the numbers together. The original notarized DR-123 returns with the customer to their home state for presentation during title and registration in that home state. The dealership needs to maintain a copy of that notarized document, as proof in an audit of the dealer’s right to charge at that state’s rate. Without the copy, the dealership would be required to pay the difference between the amount 10 — Independent Dealer — May 2017
Affidavit for Partial Exemption of Motor Vehicle Sold to a Resident of Another State
DR-123 R. 01/16 Rule 12A-1.097 Florida Administrative Code Effective 01/16
AFFIDAVIT State of Florida, County of Before me, the undersigned Notary Public, personally appeared
,
Who, being duly sworn, says that he/she is a resident of the State of the following described motor vehicle.
and that he/she is the purchaser of
Name of Purchaser: State of Residence and Address of Purchaser:
(Street)
(City)
(State)
(ZIP)
If the non-resident purchaser is a corporation or partnership, an officer or partner must acknowledge the following in order to be allowed the partial exemption: The vehicle will be removed from this state within 45 days of purchase and will remain outside this state for a minimum of 180 days. OR If the vehicle is not removed from this state, an officer or partner in the non-resident corporation or partnership must certify the following: There is no officer that is a resident of this state. There is no stockholder who owns at least 10% of the corporation that is a resident of this state. There is no partner in the partnership who has at least 10% ownership of the partnership that is a resident of this state. Name of Seller: Address of Seller: (Street)
(City)
(State)
Seller's Sales Tax Registration Number:
(ZIP)
Date of Sale:
Description of Motor Vehicle: Make:
Model:
Year:
Vehicle Identification Number:
Motor Number:
Sales Price:
Trade-In Allowance:
Sales Tax Paid to the STATE OF FLORIDA: understand that I may owe sales tax to the State of
I, (Purchaser's Initials)
; (Purchaser's State - Do Not Abbreviate)
• if the state, in which the vehicle is being registered/licensed, does not allow a credit for sales tax paid to the State of Florida; or • if that state imposes a rate higher than 6%. I also understand; • sales tax is being paid to Florida and not to any other state; and • I may request a copy of the "Motor Vehicle Sales Tax Rates by State" from the above motor vehicle dealer or the Florida Department of Revenue. This vehicle will be licensed in the State of in the State of Florida. Sworn to (or affirmed) and subscribed before me this
within forty-five (45) days after the date it was purchased
(Day of Month)
(Signature of Nonresident Purchaser)
Personally Known or
day of
(Month)
, A.D.,
(Year)
.
(Signature of Notary)
Produced Identification
Type of Identification Produced Print, Type or Stamp Name of Notary
Go to http://floridarevenue.com/Forms_library/current/dr123.pdf to download this current version of DR-123. www.fiada.com
collected, up to 6%, plus penalties and interest. Why would the customer want to pay 6% sales tax in Florida for a vehicle, if they could pay a lesser percent sales tax in their home state? The purpose is to level the playing field between states. Last year, 2016 had three states that did not play nice with others. I called that the ‘WAM’ factor. West Virginia, Arkansas and Mississippi. The 2017 version became, “You’ve been ‘WAM’D’.” West Virginia, Arkansas, Mississippi and Delaware. Revision dated March 27, 2017 states that Georgia, Maryland and Oklahoma now also, give no credit for sales tax paid in Florida.
Special Note: There are states that do not give credit for trades, even though we do in Florida. That means the customer may receive credit for the trade here and will then pay sales tax on that amount when he/she registers the vehicle in his/ her home state. Another good reason to read the Motor Vehicle Sales Tax Rates by State document’s big and little print, in addition to using the DR-123 form. This minimizes the chance of double sales taxation for the customer and the potential assessment of taxes, penalties and interest to the dealer who neglected/forgot to obtain their copy of the DR-123.
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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Please go to http://floridarevenue.com/ Forms_library/current/dr123.pdf and print the most current version of the Motor Vehicle Sales Tax Rates by State publication. It was updated in 2016.
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1
1
Things to Know
TOP
PREVENTING FRAUD There is no need to place suspicion on each of your dealership’s employees or categorically regard trustworthy people as crooks, but recognizing that internal theft is a risk inherent in every business and taking measures to keep it from happening to you is always a good idea. Establishing strict protocols isn’t punitive; in fact, it helps honest, hardworking employees do their jobs even better. Here are 10 tips to reduce your risk of employee fraud from John Buelow of CliftonLarsonAllen (www.claconnect.com).
SEGREGATE ACCOUNTING DUTIES
It’s unwise to give one individual control of all functions in the finance department. There should be clear and distinct separations of assignments for accounts payable and receivable, cash and bank reconciliations, receivables writeoffs, customer credit card refunds, and titling, among others. Make sure that all finance personnel are cross-trained in each of these area, including those that fall in the controller’s realm.
2 3
MONTHLY CASH RECONCILIATION
Train multiple people in your finance department to perform this essential chore. It is a good idea to change up the individual who performs this task from time to time.
MANDATORY CONTROLLER VACATION
When finance personnel are cross-trained and can cover for the controller when he or she is away, you should require the controller’s absence on an annual basis. Mandatory vacation means several consecutive days out of the office allowing other staff have to get their hands and eyes on the controller’s business. This can serve to keep him or her honest or root out any fraud, should it be there.
4
MAIL CONTROL
As the dealer-owner, it’s smart to personally open all invoices and payments that are sent to your business. These should never be delivered directly to the AR and AP departments still sealed up. If this duty is parceled out to another employee you consider trustworthy, you can test your instincts by mailing yourself $100 cash (with a disguised return address). If the cash doesn’t end up on your desk, it’s a safe bet a sticky-fingered employee is in your midst.
5
ANNUAL VENDOR AUDIT
Savvy internal thieves often create sham vendors who bill for small amounts, effectively paying themselves significant figures over several years’ time. Every single year, pull a list of all your dealership’s vendors and corroborate each one’s corporate name, dba, physical address (post office box is insufficient), owner’s name, and phone number — then 12 — Independent Dealer — May 2017
call that number and speak with a live person to verify their authenticity. You should also review the contract terms and pricing to ensure they align with the payment history.
6
JOURNAL ENTRY AND GENERAL LEDGER RECLASSIFICATION REVIEWS
An eagle-eyed review of the journal and general ledger can detect financial acrobatics, like a controller cutting herself a check but reclassifying it to another account. Scour the books for this kind of tricky maneuver.
7
CPA SPOT CHECKS
Bring in hired guns on occasion. Dealers are wise to engage a certified public accountant to drop in with a day’s notice (or no notice at all) to inspect the books onsite. The inspection itself will be valuable, but you can also monitor your controller’s reaction to the announcement and behavior during this event.
8
PARTS DEPARTMENT CONTROLS
Fraud isn’t limited to the pilfering of cash. Equipment can be stolen from a dealer as well, of course, but they can also compromise the business’s best interests for personal gain. Vendor kickbacks and perks, rewarding certain purchase thresholds can encouraging a purchasing manager to over-buy to get that personal kickback.
9
VEHICLE CONTROLS
A good practice is regular spot checks of the vehicles themselves and their management protocols. As the dealer-owner, you should physically see and touch used cars to be sure they are actually on the lot and not already sold, for sale somewhere else, or altogether fictitious.
10
WELCOME WHISTLEBLOWERS
Employees who suspect or witness fraud often keep their suspicions or knowledge to themselves because they are afraid of retribution. You can assure their confidentiality by providing anonymous ways to expose fraud. www.fiada.com
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MEMBERSHIP NEWS
New Members
APRIL 2017
ABSOLUTE SYSTEM Jacksonville, FL Sergey Rusev Sponsor: FIADA
Sponsor: Amelia Tillman
ARENA AUTO SALES, INC. Holly Hill, FL Amy Arena Sponsor: FIADA
LATECHNOLOGIES Oakland Park, FL Andre Dreyfuss Sponsor: FIADA.com
ASCENIUM INTERNATIONAL SERVICES ORLANDO, FL Joseph Maher Sponsor: Jennifer Finlay AUTO7USA Orlando, FL Michael Nivar Sponsor: FIADA.com AUTOMAX OCALA Ocala, FL Tony Lapuma Sponsor: FIADA.com AUTONATION AUTO AUCTION ORLANDO Longwood, FL Stephani Binder Sponsor: Amelia Tillman CARRIO MOTOR CARS Lauderdale Lakes, FL Louis Carrio Sponsor: Manheim Member Drive EAST WEST MOTORS DeLand, FL Chris Calabucci Sponsor: FIADA GAINESVILLE AUTO SALES & SERVICE Interlachen, FL Jim Walker Sponsor: John Cousins/Dealers Auto Auction GEARHEAD GARAGE INC. Fort Pierce, FL Paul Browning Sponsor: DealersInsurance.com
MICHAEL HOMES Mississauga, ON Sponsor: Terry Myers
MELISS LEBRON Ocala, FL Sponsor: Terry Myers LVW MANAGEMENT & SERVICE CORP Davie, FL Luis Sanchez Sponsor: Mannheim Member Drive MACS MOVIE CARS Oviedo, FL Scott McElroy Sponsor: DMV MIRACLE AUTOMOTIVE Allentown, PA Randy Barson Sponsor: FIADA MOX MOTORS Punta Gorda, FL Keelan Ryan Sponsor: FIADa OCEAN CAR SALES Margate, FL David Marshall Sponsor: Manheim Member Drive SHATOS AUTO SALES & TRANSPORT, LLC. Tampa, FL Sharlethia Andrews Sponsor: FIADA TROPICAL MOTOR SALES Cocoa, FL Nick Critelli Sponsor: FIADA
Renewing Members
APRIL 2017
40+ Year Members Gateway Auto Sales, Inc.
Jacksonville, FL
30+ Year Members K.K. Car Company, Inc. Le Bo Auto Brokers Ray Whitts Used Cars
Lake Worth, FL Cape Coral, FL Holly Hill, FL
20+ Year Members Bob Oliva Motors, Inc. Mancini Automotive, Inc.
Pompano Beach, FL Hudson, FL
10+ Year Members Car Credits Casey's Auto Wholesale Florida Autosport, Inc. Millenia Motors, Inc. Sides Cars-Trucks Southern Country Auto Sales Tampa Carstore, Inc.
Tampa, FL Sarasota, FL Tallahassee, FL Longwood, FL New Smyrna Beach, FL Gainesville, FL Tampa, FL
Under 10 Year Members AP Motorsales LLC Bay Harbor Auto Sales, LLC Broad and Cassel Car Factory Outlet Car Spot of Central Florida Corona Auto Sales LLC Dimension Motors Inc. DMC Motors of Florida East Coast Insurors, Inc. J.D. Byrider Latin Motors Melbourne Auto Mart, Inc. MJC Classic Cars LLC Only Used Trucks Orlando Car Deals PCT Enterprises Of FL, LLC Riverland Sales LLC Schirras Auto Inc Silverauto Snider's Truck & Auto Sales South Side Kia Steve's Auto Sales LLC Streetside Classic Cars TextBox Townsend Motors, Inc. Treasure Coast Automotive Holdings LLC dba CARite of Cocoa
Anthony, FL Middleburg, FL Tampa, FL Miami, FL Mount Dora, FL Auburndale, FL Lauderhill, FL Orlando, FL Ormond Beach, FL Panama City, FL Miami, FL Melbourne, FL Lakeland, FL West Palm Beach, FL Maitland, FL Englewood, FL Trenton, FL West Palm Beach, FL Dade City, FL Mims, FL Jacksonville, FL Sarasota, FL Lutz, FL Tallahassee, FL Auburndale, FL Cocoa, FL
GRAVITATIONAL MARKETING Orlando, FL Katrina Deleon
WELLBORN AUTO SALES Wellborn, FL Charles Rosenbaum Sponsor: DMV
Rejoining Members
APRIL 2017
1ST COAST RECYCLING Palatka, FL Richard Anderson Sponsor: FIADA
GHOSTRIDIN09 Ocala, FL Anthony Anderson Sponsor: FIADA
MATTHEW'S BUSES, INC. Orlando, FL Glenn Matthews Sponsor: Amelia Tillman
TESCO EQUIPMENT LLC Coral Springs, FL Kenneth Osborn Sponsor: Amelia Tillman
BIKES, TRIKES, CARS Gulf Breeze, FL Charles Wallace Sponsor: Amelia Tillman
HM CLASSICS, INC. Lutz, FL Howard Mednick HM Classics Sponsor: FIADA
ORLANDO VENTURE PARTNERS, LLC O Fallon, IL Alie Inman Sponsor: FIADA
WESTSIDE MOTOR SALES Oldsmar, FL Joe Petrillo Sponsor: Amelia Tillman
EMPIRE AUTO SALES Bradenton, FL Daniel McLoughlin Sponsor: FIADA.com
LEGENDARY SPECIALTY IMPORT Sarasota, FL Patrick Bellanger Sponsor: Amelia Tillman
R&M AUTO EXPRESS LLC Jacksonville, FL Ammar Alqaysi Sponsor: DMV
14 — Independent Dealer — May 2017
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CONTINUING EDUCATION TRADE SHOW AWARDS BANQUET
Find out more at www.FIADA.com 16 — Independent Dealer — May 2017
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2017 FIADA ANNUAL CONVENTION
OCTOBER 5-7, 2017 | OMNI ORLANDO RESORT AT CHAMPIONSGATE COMPANY INFORMATION Company:____________________________________________________________________________________________________________ Address:_________________________________________________________ City, State, Zip:________________________________________ Phone:___________________________________________________________ Fax:________________________________________________ E-mail:__________________________________________________________ Website:_____________________________________________
REGISTRATION INFORMATION FULL ACCESS PASS (Includes all events and meals)
EARLY BIRD (4/1 - 8/31)
Badge Name:_____________________________________________________________
MEMBERS
[
] $249
REGULAR (9/1 - 9/30)
[
] $299
ON-SITE (10/1-10/7)
[
] $349
NON-MEMBERS [ ] $249 [ ] $299 [ ] $349 ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:_____________________________________________________________
[
] $195
[
] $195
[
] $195
Badge Name:_____________________________________________________________
[
] $195
[
] $195
[
] $195
[
] $100
[
] $100
[
] $100
[
] $99
[
] $124
[
] $149
SPOUSE FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:_____________________________________________________________ Tickets to the Annual Banquet are included with all Full Access Passes. For our planning purposes, will you and your guests be attending the Annual Banquet on Saturday evening?
Yes
No
EDUCATION PASS (Does not include meals) Badge Name:_____________________________________________________________
MEMBERS
NON-MEMBERS [ ] $124 [ ] $149 [ ] $175 ADDITIONAL EVENT TICKETS Saturday Night Gala Dinner Banquet (semi-formal attire)
Qty:_____________
X $75
X $75
X $75
Friday Night Expo Hall Grand Opening Dinner
Qty:_____________
X $50
X $50
X $50
Friday/Saturday Breakfast
Qty:_____________
X $25
X $25
X $25
Friday/Saturday Lunch
Qty:_____________
X $25
X $25
X $25
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 INFORMATION [
] 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 Monday, September 4, 2017, we will refund your registration fee. If cancellation is received between 9/5/17 and 9/29/17, we will refund your registration fee less a $25 processing fee. Fees cannot be refunded for registrations canceled after 9/29/17 or for no-shows. PHOTO/VIDEO RELEASE: By registering for the 2017 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 Orlando Resort at ChampionsGate. Hotel stay is separate from convention registration. Reservations must be made by SEPTEMBER 4, 2017 to qualify for group discount of $179 per night (plus tax) For reservations call 1-800-THE-OMNI (800-843-6664).
Return this completed form, or register: Mail: FIADA, 1840 Fiddler Court, Tallahassee, FL 32308 Fax: (850) 385-3251 Online: www.FIADA.com Call/Text: (800) May 2017 — Independent Dealer237-0448 — 17 www.fiada.com
CONVENTION PREVIEW
Buy Here-Pay Here: Where Do We Go From Here? BY CHUCK BONANNO
Industry veteran and NIADA 20 Group National Director Chuck Bonanno will be a keynote speaker at the upcoming FIADA Annual Convention in October. Here is a sample of the Buy HerePay Here wisdom he will be presenting.
I
n late 2008 we witnessed a financial meltdown in this country spurred on by the collapse of sub-prime mortgages and mortgage securities. This event created the “Great Recession”. While this was all bad news for our nation’s economy, a funny thing happened in the Buy Here Pay Here world. There was, for lack of a better term, a renaissance for Buy Here Pay Here Dealers. During the next few years, dealers had the pick of cars and the pick of customers as there were few auto financing options for credit challenged customers. The economy also created millions of poor credit customers. This environment led to growth opportunities for the BHPH dealer. It also created a situation where customers felt job opportunities were limited (so they stayed employed) and one where they recognized that credit options were limited so they took care of their 18 — Independent Dealer — May 2017
current credit (car loan or lease) much better. And, then, a funny thing happened….. Wall Street and venture capitalists were faced with limited high yield opportunities as mortgages became nearly impossible to originate. They looked to other high yield investments and they discovered the deep sub-prime and sub-prime automotive finance sector. So beginning in 2013, heavy investments were made in this space to capture short term high yield returns. So the frenzy began. Buy Here Pay Here dealers were no longer the best transportation option as these banks and finance companies began mining deeper and deeper. Since this phenomenon began, credit challenged customers have been able to find financing including far newer and far more expensive cars. BHPH dealers began losing market share and the quality of customer
degraded even further. Dealers have experienced many “cycles” of strong sub-prime participation by banks in the past but this cycle has been not only deep but has endured much longer. The cheap cost of capital and the lack of other high ROI (Return on Investment) markets has created a very long cycle. This is not to say that sub-prime auto finance will go away; it never does. It does, however expand and contract. I read everything I can about the performance of these bank portfolios and ABS (Asset Backed Securities) and ALL signs point to a retreat but it hasn’t had a major impact yet. It seems that every time a large player pulls back another one enters. I am optimistic that we will begin seeing major changes in this market over the next twelve months. This is high risk paper and extremely hard to collect. Nobody knows that better BHPH Continued on page 20. www.fiada.com
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BHPH:WHERE DO WE GO FROM HERE continued from Page 18.
dealers who work extremely hard to create relationships and keep people driving. With that being said, there will be a period of “disruption” where customers who need transportation find that financing options have shrunk and that the best option is dealer financing. Customers have always wanted the “best car” they can finance. So where do we go from here? We need to be ready for this market shift. That requires sufficient capital, a marketing plan, quality product (backed with real warranties), a superior sales experience and most importantly, a loan servicing experience where the customer feels and sees value. Capital is more important than ever as we have experienced tremendous rises in vehicle cost coupled with diminishing down payments (mostly market driven). This leads to higher and higher cash in deal which requires more dealer investment or more borrowing to keep up. So, if you have adequate capital you have cleared the first hurdle. The next challenge is marketing to customers.
We have witnessed a major shift in how we attract customers. Many of the dealers in the 20 Groups I moderate have gone away from traditional media partially or totally in favor of digital marketing. They have also become much more transparent with message and pricing. Consumers demand it. The next step is the dealership experience.
care after the sale. You need to have programs that keep cars running and keep customers paying. This pays huge benefits down the road and will be evidenced by the number of customer referrals and the number of repeat customers. There is a great opportunity if you are prepared and if you are serious
We need to be ready for this market shift. That requires sufficient capital, a marketing plan, quality product (backed with real warranties), a superior sales experience and most importantly, a loan servicing experience where the customer feels and sees value. Customers are shouting that they want digital communication and desire the ability to get credit BEFORE coming to the dealership. You need to create an online shopping experience and a simple (read: short) dealership visit. You need to present your program as a value proposition that clearly states benefit to the customer and you must prove that the relationship will be ongoing and not end at vehicle delivery. You will also need to show your customer you
about helping the “unbankable” customer. There will be more and more customers in our wheelhouse in the future. Good luck. Chuck Bonanno is the National Director of the NIADA 20 Group program. He has nearly thirty years of experience in the independent dealer space and is an expert on Buy Here Pay Here. He is a national speaker, author, trainer and consultant. You can contact Chuck at chuck@niada.com
GOT A TECHNICAL QUESTION AND NEED SOME ADVICE?
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REPRESENTATION | EDUCATION | DEDICATION—FIADA! 20 — Independent Dealer — May 2017
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May 2017 — Independent Dealer — 21
D E A L E R O P E R AT I O N S
Turn to Earn Speeding the wholesale-to-retail process is critical to growing market share and operational profitability. Here are a few best practices that will help dealerships increase their speed to market. BY COX AUTOMOTIVE
S
ince 2009, used retail gross margin has steadily declined, reaching its peak at 11.5% in 2009 and dropping steadily to approximately 9% in 2015 This decline has been exacerbated by an unexpected accompanying increase in wholesale vehicle prices, which rose in both 2014 and 2015. While analysts expected higher vehicle volume to push wholesale prices down, they actually increased as a result of record retail profit opportunities available to dealers in 2015.2 These near- record wholesale prices were the result of several factors, including strong new vehicle pricing, higher employment levels/ job stability and increased dealership operating efficiencies. To overcome this profit margin compression, dealers must increase overall operational profitability by: • •
•
Reducing overhead, Freeing dealership resources to focus on profit centers such as fixed ops (which accounts for 46% of gross on average) rather than ancillary services such as reconditioning, and Selling more vehicles at a faster rate rather than maximizing gross per unit.
Infusing speed and efficiency into the wholesale-to-retail process—from inventory identification, acquisition and floor-planning to inspection, transportation and merchandising — is a particularly effective and increasingly necessary way that progressive 22 — Independent Dealer — May 2017
dealerships can meet these goals.
Time Is Money
Most dealers handle wholesale-toretail-related activities in-house. For example, 88% of dealers handle wholesale inventory acquisition on their own while only 5% use outsourced solutions to maximize their operations. Likewise, when it comes to outsourcing specialized services designed to maximize efficiency so that dealership resources can be reallocated to activities that are more directly profit-related (e.g., maintenance and repair services), only 19% do so for retail inspections, 29% for reconditioning, 31% for detailing, 8% for merchandising and only 3% for storage. On average, this largely in-housemanaged process takes upwards of 10 days to get used inventory frontline-ready. Most dealers perform detailing, imaging, mechanical work, merchandising, wheel/tire work and paint/body work. Wheel/tire work and paint/ body work alone can add about one extra day before the vehicle is frontline-ready. Progressive dealers are already taking action in these areas to protect their margins and market share by speeding the wholesale-to-retail process: The top 20% of dealers are accomplishing all of these tasks in less than four days. Similarly, the average number of days it takes online listings to be merchandised with photos and descriptions from the time a vehicle
appears in a dealer’s inventory is 12.5 days, yet the top-performing 20% of dealers do it in 4 or less. These dealerships are best positioned to sell the most vehicles in today’s marketplace where the car-shopping process can be swift. Consumers now have unprecedented access to online inventory information and are inclined to limit their lot visits and test drives: 38% of car shoppers only visit one dealership and 52% only test drive one vehicle. The car buying process only takes an average of 14 hours and 44 minutes, 59% of which is spent researching and shopping online. 71% of car buyers end up purchasing the vehicle that they had in mind when they initially visited the dealership, indicating that most car buyers are making purchase decisions online. Therefore, it is vital that dealerships get the right inventory online, and on the lot, as soon as possible.
The Advantages of Volume
Dealers that can determine what car shoppers want and then bring the most of those vehicles quickly to market at the most competitive prices are the ones who will likely be most successful. Focusing on high sales volume as opposed to high profit margins is a preferred model for gaining market share in a wide variety of industries. It is no wonder, then, that companies with advanced logistics capabilities like Walmart and Amazon are leaders in market share. Likewise, to gain automotive market share, dealers need to hone their logistical capability to sell cars as quickly as the market demands instead of holding out for more gross profit per vehicle. Speeding the wholesale-to-retail process is critical to achieving a highvolume sales model. In addition to gaining market share and increasing turn (and therefore overall profits), adopting a highvolume strategy can also allow dealers to reduce overhead expenses. For example, focusing on margin instead www.fiada.com
of turn often results in having too many aged vehicles in inventory, which increases holding costs that average $32 to $40 per day per vehicle. And ironically, holding out for increased gross can have the opposite net effect at the end of the day: Vehicles that are on the lot for over 30 days tend to sell at a much lower margin than those that have been on the lot for 30 days or less. Currently about 20% of cars sit on the lot for more than 50 days. Speeding the merchandising phase of the wholesale-to-resale process can shorten the amount of time that inventory remains on the lot, thereby increasing overall dealership profitability. For example, when Dealer A takes an average of 11 days to publish photos and a description of a vehicle on their dealer website and an average of 9 days to get that vehicle merchandised on Autotrader.com, that vehicle spends an average of 35 days on the lot. However, when Dealer B takes an average of only 1 day to publish photos and a description of a vehicle on their dealer website and an average of 1 day to get that vehicle merchandised on Autotrader.com (see the following “Merchandising” section for more about how to achieve this), that vehicle will spend an average of only 22 days on Dealer B’s lot. If the average daily holding cost is $40 per vehicle, that’s a savings of $520 that can be added into the profit on this unit alone. And when you factor in the rate at which used vehicle margins decline over time — an average margin of $1,313 for vehicles sold in under 30 days compared to only $75 for vehicles sold in over 30 days — it is easy to see how these savings can quickly multiply as inventory turn is increased thanks to faster and more efficient merchandising. Speeding the transport phase of the wholesale-to-resale process can also boost overall operational profitability Continued on page 24. www.fiada.com
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TURN TO EARN continued from Page 23.
by further reducing vehicle holding costs. This tactic illustrates how truly improving overall efficiency requires comparing costs and savings across all facets of wholesale-to-retail operations. For example, in 2015 it took dealerships an average of 3.42 days to deliver a vehicle 196 miles at a cost of .95 per mile (based on 1.1 million vehicles transported across the remarketing marketplace inbound and outbound from auction). It may seem logical to try to reduce these transportation costs by opting to have vehicles delivered in 6 days, as opposed to 3, for a cost reduction of .85 per mile. In this scenario, the dealer could either have 500 vehicles delivered (annually) 196 miles in 3 days for a cost of $186 per vehicle, or $93,000 annually, or have 500 vehicles delivered 196 miles in 6 days for a cost of $166 per vehicle, or $83,000 annually. That’s an annual savings of $10,000. However, $40/day in vehicle holding costs for 3 days = $120, or $60,000 annually compared to $40/ day in vehicle holding costs x 6 days = $240, or $120,000 annually. In the big picture, increasing transportation time to save $10,000 annually can actually result in $60,000 in additional holding costs. This is but one example of why streamlining wholesale-to-retail operations must be viewed in terms of holistic solutions.
What Dealers Can Do
While 72% of dealers manage all wholesale activities internally, only 52% of dealers are satisfied with their current wholesale process. Managing disparate activities — from transport and inspection to reconditioning and merchandising — can involve a significant commitment of internal resources and/or a sizable investment in a variety of outsourced solutions. Reluctance to change such a complex established set of processes, even though they may be less than satisfactory, is therefore 24 — Independent Dealer — May 2017
understandable. However, following are ways that progressive dealers may be able to increase their market share and operational profitability over the long haul by infusing speed and efficiency into the wholesale and retail vehicle life cycle.
Inventory Identification, Acquisition & Inspection
Know What and Where to Buy The ever-growing variety of available auction cars makes it difficult to know how a specific vehicle’s color, equipment, mileage, ownership history and trim level will play against competing cars. Technology and tools can provide dealers with specific stocking recommendations based on demand in their market, their sales volume and profit goals. Expand Sourcing Efforts Looking beyond the local auction can help dealers build auction shopping lists that include alternative choices if they can’t get the cars they want the most. The challenge then becomes how to determine which auctions tend to feature cars that best fit a dealership’s strategy. The most proficient dealers and buyers rely on technology to tell them where their most desired vehicles can be sourced. Buy at the Right Price Technology and tools can help dealers determine the maximum they can afford to pay on every vehicle by calculating each unit’s profit potential while factoring in reconditioning, transportation and other costs. It may take discipline to stick to predetermined pricing parameters, particularly when bidding on vehicles that seem as though they are ideal for the dealership’s demographic. However, sticking to a precise bidding strategy can be critical to maintaining overall profitability in a marketplace where margins are increasingly compressed.
Buy Online Simulcast auctions and online wholesale marketplaces, like those provided by Manheim, can expand a dealer’s radius to provide fast and convenient access to a wider variety of vehicles that align with a dealership’s strategy. When buying online, vehicles should be inspected before they leave the auction. Condition reports and purchase protection programs can help prevent arbitration.
Floor Planning
Once vehicles have been identified and sourced, the next step is to fund them. Consider partnering with a vendor that can offer the capital and expertise needed to maximize your wholesale strategy. A good floor-plan partner can make inventory available without expanding any dealer capital, so money that otherwise would be tied up in inventory can be invested elsewhere (e.g., facility improvements, marketing/advertising, etc.). This also means that the right floor-plan provider can enable the dealer to retail older, higher mileage or off-brand vehicles that normally would go to wholesale because of limited cash flow. Without cash flow restrictions, these types of vehicles can more easily be retailed within 30 days if priced and merchandised appropriately, thereby reducing holding costs and increasing margins. And selling older/ higher mileage inventory rather than wholesaling. it opens opportunities to grow F&I revenue through subprime finance opportunities that are attractive for payment buyers. Those financing opportunities can also lead to sales of products like warranties, gap insurance and wheel and tire coverage.
Transportation Logistics
Consider centralizing with a trusted (and insured) transportation provider Continued on page 27. www.fiada.com
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TURN TO EARN continued from Page 24.
that specializes in smaller loads, can optimize loads with carriers for the best price, and can provide guaranteed prices, transportation routes and schedules. Centralizing transportation can result in an approximate 50% reduction in the amount of time it takes to get vehicles from the auction to the dealership.
Reconditioning & Detailing
Buying vehicles that have been reconditioned and detailed at the auction means getting them on the front-line faster and increasing inventory turn. It can also mean cost savings when personnel and resources that would normally be relegated to wholesale vehicle refurbishment can be allocated to other activities — such as maintenance and repair — that drive profit for the dealership. Since fixed operations drives nearly half of dealership gross, allocating more highly skilled (and compensated)
personnel to this vital profit center rather than to reconditioning can be an effective tactic for combatting margin compression while generating revenue that can be invested in facets of dealership operations which may be more economically outsourced — reconditioning in particular.
Merchandising
Getting vehicles online before they leave the auction can significantly improve the chances of turning inventory quickly. Where possible, even if the auction vehicle needs reconditioning, photos can be taken with a mobile device or acquired from a wholesale listing or condition report and posted online while the vehicle is in transition so that consumers are immediately informed where they can buy in-demand inventory. Photos of the actual vehicle are more compelling than stock photos (or a “Coming Soon” placeholder) and can attract buyers
who want to get to the vehicle first. In fact, multiple custom photos versus a stock photo increases click-through to the VDP by 364%. Once a car arrives at the dealership, temporary photos can be replaced with high-quality ones. While the automotive industry is currently strong, dealerships may eventually be faced with increasingly compressed margins coupled with an automotive marketplace of fewer potential purchasers who have more particular preferences. Those that invest in optimizing their wholesale-to-retail processes while times are good will be in a position to gain market share when times get tough. Cox Automotive Inc. is transforming the way the world buys, sells and owns cars with industry-leading digital marketing, software, financial, wholesale and e-commerce solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. For more information about Cox Automotive, visit www. coxautoinc.com.
Stay up-to-date with FTC news and cases at www. ftc.gov. Sign up for the newsletter, review pending cases and get access blogs and articles.
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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 Dealers should pay particular attention to the discussion of Santander’s settlements with the attorneys general of Delaware and Massachusetts. The settlements require Santander to modify its retail installment sale contract purchasing practices and procedures in ways that are intended to reduce various sorts of dealer misbehavior. If your dealership engages in any of the dealer practices described in the settlement, you can expect to face a more stringent buying experience from Santander, and, because this development will have gotten the attention of other finance companies and banks, other contract buyers, as well. FEDERAL DEVELOPMENTS Debt Collectors Take Note. On March 21, the CFPB released a report summarizing its activities administering and enforcing the Fair Debt Collection Practices Act over the past year. The report provides a background of the debt collection market; summarizes the Bureau’s supervisory activities in the debt collection market; describes the CFPB’s and the FTC’s enforcement actions; describes amicus briefs filed in FDCPA cases; discusses the CFPB’s and the FTC’s consumer education and outreach initiatives; and discusses the CFPB’s rulemaking activities and the FTC’s policy and research initiatives. About Face! Forward March! Last fall, in PHH Corporation v. CFPB, 28 — Independent Dealer — May 2017
a panel of judges for the U.S. Court of Appeals for the D.C. Circuit held that the CFPB’s structure is unconstitutional, in that the President may remove the agency head only for cause. In November, just after the election, the CFPB asked the D.C. Circuit for en banc rehearing in the case. This action was supported by the Justice Department in an amicus brief. The D.C. Circuit granted the petition, vacating the panel decision. Just to prove that it would be tough for things to get any stranger in Washington, the Department of Justice then reversed course. It is no longer on the CFPB’s side, as evidenced by a newly-filed amicus brief defending the original panel decision. According to the new brief, the CFPB’s structure, as drafted by Congress, is unconstitutional and the President must have the authority to remove the head of the agency, even if solely due to a policy disagreement. Santander Settles Massachusetts and Delaware Charges The attorneys general for Massachusetts and Delaware have settled charges against Santander Consumer USA Holdings Inc. arising from the company's subprime auto financing operations. The AGs had alleged that Santander funded auto loans (both AGs used the term "loans" to refer to what were undoubtedly retail installment contracts) without having a reasonable basis to believe that the borrowers could afford them and knew that the reported incomes used to support credit applications
submitted to the company by car dealers were incorrect and often inflated. The Massachusetts AG's Office found that Santander's own internal audit concluded that the company's oversight of auto dealer conduct when making subprime loans was inadequate. Despite identifying a group of dealers that had extremely high default and delinquency rates and other problems, the company continued to fund loans through these dealers. Santander also allegedly identified a group of dealers it called the "fraud dealers," but continued to fund loans through them. The Delaware settlement requires business reforms by Santander, including procedures to screen loans originated by Delaware dealers to ensure that they comply with Delaware law and meet minimum documentation requirements. Santander also agreed to prospectively identify and repurchase subprime loans sold to third parties that it later determines do not comply with Delaware law. The Massachusetts settlement requires $16 million in payments to more than 2,000 consumers and a $5 million payment to the state. The Delaware settlement requires Santander to pay $2.875 million into a trust to benefit hundreds of harmed Delaware consumers. Santander will also pay just over $1 million to the Delaware Consumer Protection Fund. Under the terms of the settlements, www.fiada.com
Santander neither admitted nor denied either state's allegations. CASE OF THE MONTH Difference Between Advertised Price of Car and Price in RISC Was Hidden Finance Charge: A buyer bought a car from a dealership after seeing it advertised for $9,970. The cash sale price of the car in the retail installment sale contract the buyer signed was $17,775. The buyer sued the dealership for violating the Truth in Lending Act, as well as New York law prohibiting deceptive acts or practices and false advertising, alleging that the increased sale price in the contract included a hidden finance charge. The buyer moved for a default judgment after the
dealership failed to respond, and the federal trial court granted the motion. The court found that the dealership charged a higher sale price for a credit buyer than a cash buyer. The court noted that difference in price paid by a cash buyer and a credit buyer may be attributable only to the negotiating skills of the buyer. However, for purposes of default judgment, the court was required to accept the buyer's allegation that the additional cost was a hidden finance charge that violated TILA. The court also found that the dealership violated New York law by failing to accurately disclose the finance charge under TILA. Joseph v. Excellence Auto Trade LLC, 2017 U.S. Dist. LEXIS 20243 (E.D.N.Y. February 10, 2017).
Tom (thudson@hudco.com) and Nikki (nmunro@hudco.com) are partners in the law firm of Hudson Cook, LLP. For information, visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2017, all rights reserved. Single publication rights only, to the Association. (2/16). HC# 4848-8454-3277.
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May 2017 — Independent Dealer — 29
INDUSTRY NEWS DHSMV Downtime Coming June 16
I
The Department of Highway Safety and Motor Vehicles (DHSMV) has been working for the last several months on an Enterprise Database Infrastructure (EDI) project, allowing us to move the Oracle databases into a private cloud solution. The new platform will improve performance and allow for computing and storage capabilities that adapt to fluctuating workload demands and will feature a much improved disaster recovery site, meaning less downtime and fewer availability issues. The cutover is scheduled for the weekend of June 16, 2017. Beginning Friday night, June 16, 2017 at 7:00 p.m. EST, all DHSMV systems will be down and will continue to be down throughout the weekend as systems are moved and tested. During this time period, state and county offices will not be able to process and customers will not have access to DHSMV online applications. Although we do not anticipate any issues with the cutover, we will revert back to the current environment if necessary. If the first cutover attempt is unsuccessful, we have reserved the next weekend, beginning at 7:00 p.m. EST on June 23, 2017, as a back-up. Any tax collectors with offices typically open on Saturday, including license plate agents, will be closed on June 17, 2017 and potentially on June 24, 2017. We have asked tax collector offices to anticipate and prepare for preprinted temporary tag requests.
9 Great Cars For Recent College Graduates College graduation is just around the corner, and that means you might be interested in buying a brand-new car -- especially if you're a recent grad with a new job you'll have to get to. But most college graduates haven't purchased a car before, and even if you have, the sheer number of makes and models on the market can be intimidating. Autotrader.com rounded up nine great cars that should be perfect for a new graduate -- with an eye on practicality, fuel economy and (of course) a little style. With a budget at $25,000, every car on the list is affordable for someone just starting out in a new job. Included are both new cars and certified pre-owned vehicles. • 2017 Chevrolet Cruze • 2017 Ford Focus ST • 2017 Honda HR-V • 2017 Jeep Renegade • 2017 Subaru Impreza • 2017 Toyota Prius • 2015-16 Acura TLX • 2016 Hyundai Tucson • 2014-16 MINI Cooper Get the full story on why these cars were chosen at Autotrader's website, http://www.autotrader.com/bestcars/9-great-cars-for-recent-college-graduates-264935
Millennials Driving The U.S. Auto Brand Landscape Millennials1 may not be as indifferent to American car culture as is often suggested, their aspirations for luxury are driving the U.S. automotive brand landscape, according to new research from The Harris Poll. In this year's study, Mercedes-Benz reclaimed the Luxury Automotive Brand of the Year honor from Lexus; Mercedes-Benz held the title 2011-15. Toyota maintained the Non-Luxury Automotive Brand of the Year for the third consecutive year. Notably, Mercedes-Benz and Toyota's equity scores rank in the top 25 percent of all brands measured, across industries. According to Harris Poll's research, seven of the top ten millennial car brands are luxury brands, versus five each for Generation X and baby boomers. Mercedes-Benz boasts an equity score of 73 among millennials, compared to an equity rating of 66 among consumers overall. Aspiration, however, outpaces ownership as millennials are much less likely to actually own luxury cars than older generations. 30 — Independent Dealer — May 2017
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Additional auto findings include: While Lincoln's brand equity remains below the Luxury Auto category average, the automaker's brand equity increased significantly (3.4 points) since 2014. Subaru is the clear fast riser in the Non-Luxury Auto category. In fifth place this year, Subaru builds on its equity as the brand focuses on its SUV/Crossover roots and continues its Love campaign. Tesla has been the top momentum auto brand for the last four years. While it still has a way to go to compete with top car brands in equity, its strong momentum places it among the new "next big thing" home automation brands, second only to Amazon Echo. Volkswagen's equity is showing slow signs of recovery after its emissions scandal, but the automaker continues to struggle on the brand momentum scale, with 35 percent of consumers considering the brand "on the way down." www.fiada.com
2016-2017 FIADA EXECUTIVE COMMITTEE:
LISA COMPAGNO President Palm Tree Auto Sales Stuart, FL (772) 288-2099
JIM WINTERICK, SR. Chairman of the Board Gulfstream Motor Credit Miami, FL (305) 253-2335
STEVE MARBAIS, CMD GEORGE HICKEY Regional Vice President Regional Vice President Bond Auto Sales, Inc. Marbais Enterprises, Inc. Ocoee, FL Tampa, FL 33604 (407) 877-7422 (813) 238-7478
CHRISTOPHER LEEDOM BRAD JOEL Secretary Treasurer AutoMaxx Splish Splash Auto Sales Sarasota, FL Princeton, FL 33032 (941) 309-1111 (305) 258-1191
BRANDI NOEGEL DINO MERCURIO Regional Vice President Regional Vice President Noegel’s Auto Sales Independent Credit, Inc. Starke, FL West Palm Beach, FL (904) 964-6461 (561) 686-8673
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FRANK FUZY Regional Vice President Century Motors of S. Fla., Inc. Pompano Beach, FL 33064 (954) 785-0369
SCOTT LANIER, CMD Senior Vice President Credit Cars Orlando, FL 32808 (407) 295-6211
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May 2017 — Independent Dealer — 31
MANHEIM FLORIDA ALWAYS NEARBY.
Manheim Daytona Beach 1305 Indian Lake Road Daytona Beach, FL 32124 386.255.2500 Sale: Wed 3 PM Total Resource Auction every Wed 2:30 PM Manheim Fort Lauderdale 5353 S State Road 7 Davie, FL 33314 954.791.3520 Sale: Fri 9 AM Total Resource Auction Tue 9 AM Ford Open Sale every other Fri Manheim Fort Myers 2100 Rockfill Rd Fort Myers, FL 33916 239.476.9800 Sale: Wed 4 PM Total Resource Auction every other Wed 3 PM Specialty Sale last Wed monthly 2 PM Galloway Direct Off Site Sale 2nd & 4th Tues 12 PM Manheim Jacksonville 10817 New Kings Rd Jacksonville, FL 32219 904.768.9981 Sale: Thurs 1 PM Total Resource Auction every Thurs 12:40 PM Manheim Lakeland 8025 N State Road 33 Lakeland, FL 33809 863.984.1551 Sale: Wed 2 PM Specialty RV/Boat Sale 1st Wed monthly 9 AM
32 — Independent Dealer — May 2017
Manheim Orlando 11801 W Colonial Dr Ocoee, FL 34761 Sale: Tues 9 AM Highline Exotic Sale Kicks off every 4th Tues 11 AM with Mercedes & BMW Chrysler Closed Factory Sale bi-weekly on Mon 12:30 PM GM Closed Sales bi-weekly on Mon 1 PM Nissan Infiniti Closed Sale 1st Wed monthly 9 AM Manheim Palm Beach 600 Sansbury Way West Palm Beach, FL 33411 561.790.1200 Sale: Thursday 9 AM Exotic Highline Sale every 4th Wed 9:30 AM Manheim St Pete 14950 Roosevelt Blvd Clearwater, FL 33762 727.531.7717 Sale: Thurs Weekly 2:30 PM inops Regular Sale 3 PM Manheim Tampa 401 S 50th St Tampa, FL 33619 813.247.1666 Sale: Thursday 9 AM Total Resource Auction Mon 9:30 AM at Cone Road location Ford Factory Sale every other Wed 10 AM Manheim Caribbean 1050 Carretera 865 KM 4.7 Bo. Candelaria Toa Baja, PR 00949 787.261.7300 Sale: Thurs 12 PM Salvage Sale Thurs 11 AM
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