MAY 2018
www.FIADA.com
Information and Insight for Florida Used Car Dealers
Get ready for a golden membership opportunity that is too good to pass up. Page 14
www.fiada.com
May 2018 — Independent Dealer — 1
PAID ADVERTISING
2 — Independent Dealer — May 2018
www.fiada.com
Dealer Independent
MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308 TELEPHONE (850) 385-2712 (800) 237-0448 FAX (850) 385-3251 WEBSITE www.FIADA.com EXECUTIVE COMMITTEE Scott Lanier, CMD President Brad Joel Senior Vice President Lisa Compagno Chairman of the Board Jenay Rhoads Secretary Phil Risley Treasurer Frank Fuzy Regional Vice President George Hickey Regional Vice President Steve Marbais, CMD Regional Vice President Brandi Noegel Regional Vice President Jim Winterick, Sr Regional Vice President FIADA STAFF Lisette Mariner, CAE Executive Director Terry Myers Educational Instructor Jason Berthiaume Education and Marketing Manager Victoria Sams Membership Manager Christy Taylor Editorial/Advertising
POSTMASTER:
Send address changes to
FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Call/Text: (800) 237-0448 Fax (850) 385-3251 • www.FIADA.com The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308 The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.
www.fiada.com
Contents May 2018
For members of the Florida Independent Automobile Dealers Association
C O L U M N S & F E AT U R E S 4
President’s Message Scott Lanier, CMD
6
Executive Director’s Message Lisette Mariner, CAE
8
Membership News
10
Back to Basics Get your business in order for the future of your family. Putting off succession and estate planning could be the best way to lose a business.
12
Town Hall FIADA's Town Hall Meeting in Tampa last month was well attended by dealers and legislators alike.
14
There's Magic Coming to your Mailbox Ready for a golden opportunity? FIADA's new membership recruitment program will not only help the Association but also could earn you $5,000.
18
A Comprehensive Checklist for Records Inspections With a little planning and some dedication it is easy to keep your records in order. Use this guide to see if your system is where it needs to be.
20
Rewriting the Playbook The NIADA Annual Convention and Expo is coming to Orlando in June. Make plans now to attend this super-convention jointly planned by NIADA, NABD and FIADA
24
The Secret to a Salesperson's Success Kenny Atcheson interviews nationally-recognized car salesman Ali Redo to understand what it takes to sell 100 cars a month.
30
Industry News
May 2018 — Independent Dealer — 3
FROM THE PRESIDENT
The Future is Here and its All Digital BY SCOT T LANIER, CMD, FIADA PRESIDENT
S
o now that the rush from tax time is over, have you noticed that your traffic has slowed down? If so, why do you think that is? Have you noticed it just at the dealership or has it slowed down on your website as well? Or, a better question is, do you track the activity on your website?
It seems to me that the future of vehicle sales is online. We have already seen major players invest incredible amounts of capital that pursue, track, engage, and now close their customers online. What are you doing to compete with these, no longer new, marketing strategies? Do you have a plan for integrating, building, training your team in strategies that will enhance your sales and reputation in the community, and drive customers to your store? People no longer need to visit your store to find out what you do, what vehicles you have for sale, how they are going to get financed, if you offer a warranty, how much their new payment will be, or how much money, if any, they will need for a down payment. They find all this out from your website, if you are telling them. It used to be location, location, location. Location and presence are still important, of course, but are they as important as they were in the past? We do not have the walk in, or drive by traffic that we previously had, the tires have been kicked online in the air-conditioned comfort of their home. Nearly everyone that stops in our store has been online and 81% have accessed us from a mobile device before they ever step foot in the door. How do you create leads and have people find you online? Most of us probably know the basics. You start with an interactive website and Google, because over 80% of customers looking for anything start with Google. When people use Google, they are looking for you. They do not use Google for entertainment but are actively searching for products and services. Potential customers find your dealership when you have a strong SEO (search engine optimization), or how your 4 — Independent Dealer — May 2018
website ranks with relevance to what your customer is looking for. So, how do you get your website ranked high by Google? We think it’s a combination of relevant content, time on your pages, interaction with your website, external links, good landing pages (content, pictures), relevant videos and reviews. Customers are driven to your digital showroom using various methods. Google of course, but Google Ad Words, Google Organic, Facebook, Instagram, and email campaigns. Google Plus may help with your organic ranking and could be the best and cheapest way to increase your ranking. Once you get them to your showroom how are you interacting with them? Can you chat with your customer online? That may be the only opportunity you get to communicate with that person, and you can direct them to an application page and start a relationship and close a sale. What is your strategy, do you have one? How are your reviews? Do you have a plan of action in place to build good solid reviews? Are you incorporating pay-per-click in your digital budgeting, and are you tracking your leads and sales to determine if your dollars are being spent wisely? We would all “blow a gasket” if we had a customer walking on our lots without a sales person helping them, or them being ignored. What’s the difference when ignoring them online? Interacting with customers online is a perfect place to start a pleasant, positive relationship with a new customer and close more sales. So, do yourself a favor and start learning about SEO, digital marketing strategies, chatlines, reviews, Facebook, and Google. You’ll be glad you did! Scott Lanier FIADA President www.fiada.com
May 2018 — Independent Dealer — 5
PAID ADVERTISING
PAID ADVERTISING
www.fiada.com
EXECUTIVE DIREC TOR’S MESSAGE
A Good Example Has Twice the Value of Good Advice BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR
I
am so proud of the members of the FIADA. We have so many that give so much of themselves to the benefit of others. For example, I know some that provide scholarships for kids to go to school, or provide vehicles for local parades, support faith charities, and the list goes on and on. Annually the FIADA supports the Florida Sheriff Youth Ranches. We facilitate opportunities for you to get to know a wonderful charity that helps kids. The FSYR was an idea from a small group of Florida sheriffs who saw the need for a residential care facility for troubled boys, in 1957. With a little bit of cash and a big idea, they pooled their wisdom and efforts and watched their dream become a reality. Within a short period of time, they were helping many young boys turn their lives around to become productive and responsible adults. Because of their caring gifts, the Florida Sheriffs Youth Ranches now operate four residential campuses, two summer camping locations and youth outreach programs throughout the state. They help boys and girls prosper. All through the generous support of contributors like you! Last month, ADESA Ocala hosted a charity auction, benefitting Florida Sheriffs Youth Ranches. A grand total of $8,421 was donated, including the sale of 11 donated cars, along with $1,650 from ADESA and $1,036 from dealers in attendance. In case you missed it, we have a video on our YouTube Channel. Just tap on videos in the FIADA app. Thank you to Calvin Frazier, ADESA General Manager, for putting this together! If you’re coming to the FIADA/NIADA convention in June, I’d like to personally invite you to attend the FIADA member meeting and awards ceremony Tuesday, June 19 at 8pm. When you register to attend please submit your 6 — Independent Dealer — May 2018
ADESA Ocala's Cars for Kids event was a success. Almost $8,500 was raised to benefit the Florida Sheriff Youth Ranches. RSVP. We will also have a booth at the convention. The Florida Sheriff Youth Ranches will have the ring toss in the booth. Drop by and say hi! If you would like to donate a few bottles for the toss, please send me a note with how many you will bring. You can drop them off Tuesday morning at the registration desk. I am proud to serve as your executive director and continue to support such great causes. If you have any feedback or stories you’d like to share, please email me at lisette@fiada.com. www.fiada.com
PAID ADVERTISING
www.fiada.com
May 2018 — Independent Dealer — 7
MEMBERSHIP NEWS
New Members
APRIL 2018
AGORA DATA, INC. Arlington, TX Bill Cambpell Sponsor: FIADA
CHARNECO AUTO SALES Tampa, FL Miguel Charneco Sponsor: FIADA
AUTOMATRIX DEALER SOFTWARE INC Hollywood, FL Ramin Farahmand Sponsor: Victoria Sams
DISTINGUISHED AUTO BROKERS Boynton Beach, FL Danny Mesidort Sponsor: FIADA
AUTOMOTIVED Orlando, FL Dmytro Proiavko Sponsor: Patrick Browne
FDR SALES GROUP LLC Deland, FL Frank Ranken Sponsor: Terry Myers
BLACK HORSE MOTORS Naples, FL Darren Scuffil Sponsor: FIADA
JS AUTO SALES Port Charlotte, FL Jason Schultz Sponsor: FIADA
Rejoining Members FRIENDLY AUTO SALES, LLC Alturas, FL Terry Keen Sponsor: Terry Myers
JERRY'S WORLD OF WHEELS LLC Cape Coral, FL Jerry Adcock Sponsor: Frazer LAKELAND COLLISION CENTER LLC Lakeland, FL Zoika Pain Sponsor: Terry Myers LIFE IS GREAT INC Jacksonville, FL James Meyer Sponsor: iDrive on Demand
PERFECT CAR CORP Apopka, FL Salma Chami Sponsor: FIADA.com PREMIUM CARS OF MIAMI Miami, FL Reynaldo Brito Sponsor: FIADA.com
CHRISTOPHER REZBA Palm Coast, FL Sponsor: Terry Myers DANIEL ROGERS Palm Harbor, FL Sponsor: Terry Myers VINCHAIN LLC Wilmington, DE Alex Miles Sponsor: FIADA.com
RSVP
ida Only r lo F l a i c e he sp . RSVP for t o t t in Orlando e g n r o i fo t n e v n o Don't C 19 at 8pm the NIADA e g n n i u r J u , y d a t sd n ue eve e annual dealers on T h t w f o o ll n fe o i r t u a esent Join yo ing and pr t e e . It's a can't m d r r a e b w a m e r a m e he Y for a ou register Dealer of t y y t n e li h a u w Q P SV FIADA om send your R n a c u onvention.c o c Y a . d t a i n e .n v e w w miss online at w n o i t n e v n o or the c
APRIL 2018
JJOFMIAMI, INC. North Miami, FL Dorothy Dapolito Sponsor: FIADA
Renewing Members
MONZON AUTO SALES, INC. Hialeah, FL Danilo Monzon Sponsor: DMV
APRIL 2018
30+ Year Members K.K. Car Company, Inc.
Lake Worth, FL
20+ Year Members Carmax Auctions O'Donnell Automotive
Richmond, VA Orlando, FL
10+ Year Members Beach Boulevard Automotive Dewitt Motors Handicapped Driver Services - FL, LLC
Jacksonville, FL Sarasota, FL Richfield, OH
Under 10 Year Members ACV Auctions Inc AP Motorsales LLC Advantage Leasing Inc. Alliance Motors, LLC Arena Auto Sales, Inc. Bay Harbor Auto Sales, LLC Bud Lawrence Inc Car Buying Service of Jacksonville Carlisle Events
Buffalo, NY Anthony, FL Dade City, FL Ocala, FL Holly Hill, FL Middleburg, FL Deland, FL Jacksonville, FL Carlisle, PA
8 — Independent Dealer — May 2018
Carrio Motor Cars East Coast Insurors, Inc. East West Motors Florida Auto Tag Agencies Gen-X Motors Interstate Title Solutions, Inc. Legendary Specialty Import Millennium Luxury Coaches Orlando Car Deals Outdoor Recreation World, Inc. Premier Truck Center LLC Sanfer Sports Cars, Inc. Synergy Auto Deals Tampa Wholesale Cars Inc. Tesco Equipment LLC US Auto Sales United Auto USA Corp Vac-Con, Inc. Westside Motor Sales
Lauderdale Lakes, FL Ormond Beach, FL Deland, FL Orlando, FL Melbourne, FL Delray Beach, FL Sarasota, FL Sanford, FL Maitland, FL Panama City, FL Palmetto, FL Miami, FL Davie, FL Tampa, FL Coral Springs, FL Lawrenceville, GA Doral, FL Green Cove Springs, FL Oldsmar, FL www.fiada.com
PAID ADVERTISING
www.fiada.com
May 2018 — Independent Dealer — 9
BACK TO BASICS
How Much Do You Love Your Family? BY TERRY MYERS
Do you have an adequate succession plan for your business? If not, it's the best thing you can do for your family. My friend Barry D. Siegel, Esq. explains in this article he wrote called "The Best Way to Lose a Business"
B
ill Johnson is a typical business owner and entrepreneur. He’s a visionary and a big-picture thinker. He’s a risk-taker, but his risks are calculated and he’s wise in the ways of business.
He figures estate planning is for “rich” people who have lots of cash, stocks, and bonds – and most of his wealth is tied up in his business. Plus, his plan is easy – he’ll just leave everything to the kids.
Bill’s day is filled with the typical challenges of a small business owner: finding new customers, serving current customers, dealing with employees, keeping an eye on the financial statements, monitoring quality, and planning for the future. Bill works long hours and loves what he is doing. He doesn’t have time for much that isn’t business-related, but he looks forward to a time when things “slow down” and he’ll be able to enjoy the fruits of his labor with his family. And most importantly, he looks forward to passing a successful family business to his children.
What Bill doesn’t know is that his heart is about to give out, and he’s about to lose everything for which he has slaved all these years.
When Bill’s attorney mentions “estate and succession planning,” Bill smiles and says, “Yep – I need to do that.” But that’s as far as it ever gets. Bill has been saying that for years, but he hasn’t been able to slow down enough to actually do any planning. 10 — Independent Dealer — May 2018
According to the Small Business Administration, about 90% of all US businesses are family-owned or controlled. Yet, approximately 70% of these businesses will not pass successfully to the second generation, 85% won’t make it successfully to the third generation, and less than 5% are successfully passed to the fourth generation. Without proper planning the family may be forced to sell the business to raise the funds necessary to pay estate, gift, or generation-skipping transfer taxes. If you own a family business, coordinating your estate planning and business planning is critical. Quite often, a business is the most valuable
asset of a business owner's estate. It is not uncommon for the business to represent more than 50% of the value of the estate, and sometimes it represents as much as 90% of the value. The business is the source of the income that supports your current lifestyle and that of your family. The business will probably be the source of income that will provide for you and your family in the event you become incapacitated. And perhaps most significantly, the business must provide for your survivors when you’re gone. Failing to adequately plan for the family-owned business and its disposition at the death of the owner frequently results in irreparable damage to the relationship among siblings and even between children and the surviving parent. The business owner will have to consider how to dispose of the family business and maintain equal treatment among the children, if some of the children are involved in running the business after the owner's death, and some are not. The problems will actually begin even before any thought can be given to selling the business. Unless the doors of the business are to close immediately upon death, the first issue is deciding who will run the business until it sells. If there is a disagreement among your family about that, how will it be resolved? Without instructions, the probate court will likely have to authorize most of the acts of your executor or trustee regarding your business. After choosing who will continue to run the business, the next step may be to deal with the bank. If the business has borrowed money, the business owner has most likely personally guaranteed the loan repayment. Upon death, your guarantee has no value, so one of the first calls received by your spouse could be from the bank calling the loan. If that happens, the family www.fiada.com
will have to figure out how to pay off the loan, perhaps by finding new financing. Of course, it will be harder for them to borrow money than it was for you. They don’t have your experience and track record in running the business. If the business doesn't have enough money to pay off the loan, and if it can’t be paid from personal family funds, the bank will begin to look for the easiest collateral to foreclose on. In some cases, the easiest target could be the family home, especially if the same bank already holds the mortgage on it. Even if there is no problem with the bank, it is likely that without proper planning, you will lose your key employees. As you lose your key employees you are likely to also lose rank-and-file employees. Morale and productivity will suffer. Profitability will decline as will the value of the business. In this scenario, many families end up selling the assets of the business at fire-sale prices. This presents the possibility that your spouse will have to radically change his or her lifestyle, and could even become dependent upon your children or other family members. The cost for the family of the business owner who fails to adequately plan can be incredibly high. In fact, the best way to lose a business is to fail to plan for its succession or disposition. In future articles, we’ll explore some of the details of successful planning for business owners! Articles are the opinion of the author and are not intended to be legal or accounting advice. The intent is to share thoughts and concepts that help the business owner(s) find new and perhaps revisit, ways to be as successful as they are capable of being. Terry can be reached at (727) 804-7375. Email: tmyers@ floridaautodealerschool.com. Feedback is appreciated and encouraged. Terry LB Myers, author, lecturer, FIADA instructor, FADS owner/instructor.
www.fiada.com
PAID ADVERTISING
PAID ADVERTISING
May 2018 — Independent Dealer — 11
TOWN HALL
12 — Independent Dealer — May 2018
Dealers enjoyed an afternoon of learning and networking at the FIADA Town Hall Meeting on April 13 in Tampa. Special thanks to Representative Renner, who is slated to be the Florida Speaker of the House in 2020, for addressing attendees. Rep. Toledo, Rep. Killebrew and Rep. Mariano were also at the Town Hall meeting along with FIADA Attorney Rob Sickles and other speakers. Special thanks to the event sponsors: ACV Auctions, Auto Data Direct, Inc., Capital Good Fund, Golden Eagle Management Services, LLC, and Wayne Reaves Software.
www.fiada.com
PAID ADVERTISING
Insurance and bonding specialists for the auto industry for over 30 years
www.fiada.com
May 2018 — Independent Dealer — 13
You can earn $5,000 in FIADA's new member recruitment program. FIADA is about to start a brand new member recruitment program that could earn you some extra cash. Watch your mailbox for a special edition Golden Ticket that will be your official invitation to get in on the action. Your ticket will have all the details, but here are a few highlights to get you started: You can earn $5,000 Recruit as many new members as you can from May 1 through September 30 The member who has recruited the most new members will be recognized and awarded $5,000 at the FIADA meeting at the HardRock in Daytona, October 12. In case of a tie, the $5,000 will be split among the top sellers. To participate, the member cannot participate in any other form of FIADA recruitment incentive program.
Current Rank Name Your Name Here Your Name Here Your Name Here
Members
We'll be keeping track of who's in the lead and plan to post it in the magazine each month so you can too!
USE THE MEMBER APPLICATION ON PAGE 16 TO START SIGNING UP MEMBERS. DON'T FORGET TO PUT YOUR NAME AS THE SPONSOR! 14 — Independent Dealer — May 2018
www.fiada.com
PAID ADVERTISING
EARN MORE. www.fiada.com
ADESA.com/Rewards
May 2018 — Independent Dealer — 15
Protect. Promote. Preserve. SINCE 1940
Florida Independent Automobile Dealers Association
Why Join FIADA? REPRESENTATION A lobbyist and legislative committee that fights for you and the industry’s interests.
EDUCATION FREE continuing education and free unlimited technical assistance calls with FIADA legal counsel.
DEDICATION Access 100+ vendors who specialize in auto industry needs and over 800 dealers statewide who handle issues like yours.
SAVINGS Over $2,000 in FIADA member discounts and coupons that are available instantly with an easy to use mobile app.
DISCOUNTS Exclusive savings on advertising opportunities, DMS, financing, floorplanning, GPS and other dealer services. Licensed dealers receive complimentary membership and additional benefits with NIADA.
DUES: $325 Annually
rship is Membe portunity en Op A Gold
Sponsor:_____________________________________
Company Name:________________________________________________________ q New Mbr q Associate Mbr Address:______________________________________ City:____________________ State:______ Zip:_________ Phone:_____________________________ Fax:_____________________________ Email:_______________________ By signing I agree to the FIADA
code of ethics and FCC Consent. Principal Contact:________________________________ Signature:_______________________________________
Payment Method: q Check (made payable to FIADA)
q Visa
q Mastercard
q American Express
q Discover
Card Number:________________________________________ Expiration Date:__________________ CVV:_________ I authorize FIADA to charge my credit card listed above. Name on Card:___________________________________________________________________________________
Dealer Type: q Retail
q BHPH
q Wholesale
Years in business?__________ License# ____________________
SUPPORT THE FIADA PAC Your PAC Contribution helps spread the awareness and gain support of issues affecting independent dealers in the state's capitol.
q
$500
q
$250
q
$100
q
$50
q
$25
q
_________
FCC Communications Consent: I understand that by providing my mailing address, email address, telephone number and fax number, I consent to receive valuable and timely communications via mail, parcel, email, telephone, text and/or fax from or on behalf of the Florida Independent Automobile Dealers Association (FIADA). This consent shall remain in effect until FIADA receives written revocation signed by an authorized representative. 800.237.0448 | Fax: 850-385-3251 | Email: info@fiada.com | www.FIADA.com | Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308
16 — Independent Dealer — May 2018
www.fiada.com
Introducing the all-new, completely redesigned Autotrader. Your GO-TO for more leads and engagement. Your GO-TO for clear-cut sales attribution. Your GO-TO for accelerating shoppers into signatures.
Proud supporter of the FIADA and independent dealers nationwide.
PAID ADVERTISING
YourNewGOTO.com
© 2018 Cox Automotive, Inc. All Rights Reserved. Autotrader is a registered trademark of TPI Holdings, Inc. used under exclusive license.
www.fiada.com
May 2018 — Independent Dealer — 17
D E A L E R O P E R AT I O N S
A Comprehensive Checklist for Records Inspections BY JENNIFER FINLAY, CPFS
Proper record retention isn't hard, but it does take commitment. If you are facing a state inspection, or just want to make sure you are in compliance, use this checklist as a guide.
I
t’s true, in this business keeping accurate and complete records is an absolute must. This is not a difficult task by any means. However it does take time and organization as well as being knowledgeable about what records to retain and how. Recently I discovered a few statistics that shocked me. In the license period of 2016-2017 the state conducted just under 6,000 records inspections. Over 46% of dealers failed the inspection. This number is not only unacceptable but easily avoidable.
15C-7 Florida Administrative Code. Dealers are required to possess a properly assigned Certificate of Title for each vehicle that is being offered for sale, or have other proof of ownership. In addition to the title or proof of ownership, dealers will need proof of where they purchased the vehicle, as in auction, wholesale, or direct from a customer. A dealer is also required to have a properly completed odometer disclosure and a Buyers Guide. If a dealer is missing this proof of ownership a “Not for Sale” notice must be placed on the vehicle if it is displayed.
In this article I will review the Florida Statutes concerning records retention and follow each section with a no nonsense simple list of what you will need to have for each in the event of an inspection and for general best business practices.
What the examiner will be recording from 10 vehicles you have displayed: • Year, Make, Model, VIN • Mileage, Actual, Not Actual or Exempt • Odometer Statement • Properly assigned title, and title number • Buyers Guide posted • Proper proof of ownership, assigned title and proof of purchase
Section I: Displayed for Sale
Section II: Purchases and Sales
The requirements of the state are not that complicated. I believe it comes down to educating dealers as well as staff to what is needed to maintain complete records.
Florida Statutes 320.27(7), 320.27(9) (b)(4), 320.27 (9)(b)(17) and Rule 18 — Independent Dealer — May 2018
Florida Statute 320.27(6), 320.27(9) (b)(4), 319.23(6)(a), 320131(2) and
316.2935(1)(b)requires the licensee (dealer) to keep records of purchases and sales transactions for a period of five years. The dealer must also have an executed odometer disclosure statement and proof that the title was applied for within a 30 day period (this is the number one complaint from consumers) and that no more than two temp tags were given to any one vehicle. The dealer will also need a proof of emissions statement. This part of the inspection will also confirm the presence of a Buyers Guide and proof of refund if the customer was initially charged more than the plate and registration cost. What the examiner will be recording from 10 sales over 30 days old: • Year, make, model, VIN • Date acquired • Acquired from • Proof of purchase • Acquired mileage • Odometer Disclosure • Branded Title? • Purchaser name • Certification of Pollution Control Devices Mileage at time of sale • Brand disclosed to customer • Proof of insurance • Buyers Guide • Transfer within 30 days • More than two temp tags? • Refund issued for overpayment of title work? • Date title was applied for
Section III : Temporary Tags
Florida Statute 320.76(6) Dealers are required to keep an accurate record of all temporary tags issued. The dealer's approved vendor for temp tags will have a report of tags issued online. Preprinted tags can be issued in the event the state system is down and can not exceed a Continued on page 20 www.fiada.com
PAID ADVERTISING
RECORD RETENTION continued from Page 18
30 day period. Any preprinted tag issued must be entered into the vendor database within 24 hours of the system coming back up. Any voided plates must be kept with the deal. What the examiner will be recording from this section: • Purchase date of pre printed tags • Amount purchased • From series to series • Agency purchased from • Receipt for tags • # of tags on hand • Log maintained • Tags issued for 30 days • Tag and form 83091 completed properly FRVS updated within one business day • No more than two tags issued • Number of offline tags issued in last 6 months • All tags not accounted for • All voided tags • Print on Demand Vendor
Section IV: Trade In Information
Florida Statute 320.27(9)(b)15, 319.24(5)(a) Dealers are not allowed to sell a trade in vehicle before the new deal is consummated without a signed authorization for the consumer allowing the dealer to do so. Dealer must pay off any lien on a traded vehicle within 10 working days. What the examiner will be looking for and recording in this section: • Proof that the liens of trade in were paid in accordance with the state statute. • Proof that the trade ins were sold after the deal was consummated • Were the trade vehicles marked as “sold” in the departments database within the 30 day period? • List of traded in vehicles
Section V: Dealer Plates
Florida Statute 320.13(1)(a) Requires dealer license plates to be valid for use on on vehicles in the dealer’s inventory and for sale. Dealer plates may not be used on wreckers, parts or service vehicles or any vehicles the dealer has been compensated for. What the examiner will be looking at and recording in this section: • Are dealer plates being used properly? • Account for every dealer plate • List all plates unaccounted for
Section: VI Bona Fide Employees
Florida Statute 320.27 (1)(f) “Bona Fide employee” means a person who is employed by a licensed motor vehicle dealer and receives annually an IRS Form W2, or an independent contractor who has a written contract with a licensed motor vehicle dealer and receives annually an IRS Form 1099, for the purpose of acting in the capacity of, or conducting motor vehicle sales transactions as a motor vehicle dealer. What the examiner will be recording in this section: • Produce a list of every employee and proof all are “Bona Fide” employees • Current list of corporate officers listed on Sunbiz In closing, look over your current records and cross check them with this list. Make any changes necessary to be in compliance so when you get the call or email that you will have an inspection you will be ready. Jennifer Finlay, CPFS, is the Statewide Sales Manager Florida Auto Tag Agencies. She can be reached at jennifer@flatags. com or 407-583-9199.
GOT A TECHNICAL QUESTION AND NEED SOME ADVICE?
Use the R.E.D. Phone!
FIADA is your number one source for advice and information. Technical questions, legal questions, regulatory questions...bring them on! Our network of industry veterans, professionals and consultants can help you find the answers you are looking for. Members can call or text us anytime at (800) 237-0448 or access our online resources 24/7 at www.FIADA.com. It pays to be a member!
REPRESENTATION | EDUCATION | DEDICATION—FIADA! 20 — Independent Dealer — May 2018
www.fiada.com
Stop turning customers away. Partner with Good Fund. Good Fund is a nonprofit lender that can finance your riskiest subprime customers.
PAID ADVERTISING
www.GoodFund.us/dealerships
The 72nd Annual
NIADA Convention and Expo NIADA is Rewriting the Playbook for the biggest event in the used vehicle industry by coming together with the National Alliance of Buy Here-Pay Here Dealers to create a combined Mega-Conference that blends the power of NABD’s BHPH expertise with NIADA’s wideranging education agenda. The result is without question the most comprehensive event ever presented for independent
used vehicle dealers – a true one-stop shop for the best in dealer training, networking and products and services. The NIADA/NABD Convention and Expo joins the best of both organizations to provide the most up-to-date education in the industry and the largest Expo Hall in our history, where you can find the solutions you need to run your business more efficiently and profitably.
The used car game has changed drastically over the past few years and continues to change rapidly. To keep up – and thrive – independent dealers not only have to adjust the plays they’ve been running for years, they need an entirely new playbook. Come join us in Orlando and rewrite your playbook to success!
What’s in it for you? 60 CUTTING EDGE EDUCATIONAL SESSIONS Retail • BHPH • CPO • Legal & Compliance • Digital
Topics Include: Collections, Underwriting, Trends, Legislative and Regulatory Updates, Benchmarks, Technology Showcase
The largest Expo Hall featuring 210-220 exhibitors offering the latest state-of-the-art products and services to help keep you ahead of the pack in today’s competitive market. / M— A Y 2Independent 018 / WWW.NIADA .COM Dealer — May 2018 26 22
www.fiada.com
PAID ADVERTISING
www.fiada.com
May 2018 — Independent Dealer — 23
For more information or to register: www.niadaconvention.com or call 1-800-682-3837
Keynote Speaker Dick Vitale: College Basketball Analyst, ABC Sports and ESPN Known to basketball fans for his energy, wit and colorful descriptions of players and plays, Dickie V’s entertaining message of overcoming life’s challenges and obstacles is nothing short of “awesome, baby!” Keynote speaker sponsored by
Register to attend by May 18 for the Early Bird rate of $549 – and don’t miss out on our group discount opportunities for additional attendees from your dealership. BMSM: Buy More, Save More! $549
1 attendee $549.00 each
$899
2 attendees
$449.50 each
18% off
$1,299
3 attendees
$433.00 each
21% off
$1,599
4 attendees
$399.75 each
27% off
$1,899
5 attendees
$379.80 each
31% off
USE CODE
FIADA
To get $250 off your registration!
BOOK YOUR ROOM BEFORE MAY 18
To receive the NIADA/NABD room rate of $159 per night including resort fee. Rooms at the Rosen Shingle Creek will sell out quickly. Please book now! Follow us on social media for Convention updates and registration giveaways!
24 — Independent Dealer — May 2018
www.fiada.com 27
WWW.NIADA .COM / MAY 2018 /
RAISE
YOUR INVENTORY TO THE NEXT LEVEL.
GET THE BEST INVENTORY BEFORE THE COMPETITION. Why wait for a sale? Go online anytime, and be one of the first to select from thousands of fresh off-lease vehicles. With our 23-hour daily open sales, flat $250 buy fee and streamlined search tools, including CarFax Four Pillar and price change filters, filling your lot with BMW Group Direct vehicles has never been easier.
PAID ADVERTISING
Start buying now at BMWGroupDirect.com
©2018 BMW Financial Services NA, LLC. MINI Financial Services is a division of BMW Financial Services NA, LLC. The BMW and MINI names, model names and logos are registered trademarks. BMW Group Financial Services is located at 300 Chestnut Ridge Road, Woodcliff Lake, NJ 07677.
www.fiada.com
May 2018 — Independent Dealer — 25
D E A L E R O P E R AT I O N S
The Secret to a Salesperson's Success BY KENNY ATCHESON
Ali Reda sells over 100 cars every month. He's breaking records by building relationships and there is a lot to learn from him if you want to do the same.
T
he World’s Best Car Salesmen Broke a 44-year Old Record. That was the headline of a Fox News article about Ali Reda, a salesperson who sold 1,582 cars during 2017. The article led me to contact Ali for an interview to see if he would share his insight. There is too much content to include here so we’ve made the entire audio interview available at DealerProfitPros.com/interview.
Before you begin to read the article or put it down, I encourage you to resist the urge to say that Ali’s experience doesn’t apply to you or your team. Ali is in new car sales and you are not. You are in Florida and Ali is in Detroit, etc. These are all barriers that people create that keep themselves from reaching their goals. While you read this article say to yourself, “How can I make that work for me?” Following is a small part of the interview followed by my commentary. It has been edited slightly for readability. Kenny Atcheson: Ali, I liked that the article about you was positive. I like to see that. The sales profession has taken a beating over the years, and some people are hesitant to say they’re a salesperson—they’re not necessarily proud of it, because of negative perceptions. There really are a lot of those. You don’t have that, I don’t have that, but a lot of people do in general. Why do you think that perception exists? Ali Reda: Yeah, I don’t know where that started. Way back when, being a car salesman was a great thing. It was something people were proud of; somewhere along the line we got this negative stereotype where you’re kind of embarrassed to tell somebody that you’re a car salesman. I’m not like that. I don’t feel that. As salespeople we have to do our part so that people don’t feel that. 26 — Independent Dealer — May 2018
I’d like to say that we’re more advisors than salespeople. People know what they’re looking for when they come in. They have social media at their fingertips. I think one person at a time, one salesperson at a time, has got to change that stereotype. I really don’t know where that started. I don’t know if it’s somewhere in the 80s or when it happened, but it’s changing. Times are changing. People don’t view us like that anymore. We are definitely building relationships with people now. It’s not just a one-time sale and done—I think that’s where it happened. Salespeople were looking at consumers as, “I’m going to get you now and I may never see you again,” so they took advantage of a situation. I feel the shift. I don’t think that’s the case anymore. Kenny Atcheson: You said “advisors.” In one of my training programs for dealers and their salespeople, I say, “Don’t even call yourself salespeople, call yourselves advisors: vehicle advisor, coach, vehicle coach, something other than salesperson.” My reasoning is to avoid the negative stereotype. It sounds like that isn’t necessarily what you’re doing because you actually believe you’re advising—you’re helping them. Is that the case? Is that the mentality you bring to the table? Ali Reda: One hundred percent. That’s exactly right. We can’t assume that people understand the process of a vehicle sale. We can’t assume they know the process of finance. We can’t assume they know the entire process, so it is our job to advise them in a direction that is beneficial to them, not to me. Sometimes I tell people, “Hey this is not the right vehicle for you. This is not the right time for you; this is not the right situation.” As salespeople, to be an advisor, you must Continued on page 28 www.fiada.com
PAID ADVERTISING
www.fiada.com
May 2018 — Independent Dealer — 27
BEST SALESPERSON continued from Page 26
have good intentions. You gotta have compassion for people. You gotta understand where they’re coming from, where they’re going. All of this stuff is asking a lot of questions at the beginning—finding out all the details and then advising them on what to do and where to go with it. That’s what people are looking for. Because we do it every day, we assume the person sitting in front of us understands the vehicle-buying process or understands financing or understands what will happen in two or three years if they try to trade in a vehicle or buy one if they’re not in the right situation. We can’t assume they know.
More Details and Commentary from the Interview I continued to ask Ali penetrating questions to get the most out of the interview for our readers and for
those who download the audio. Ali talked about what to do and not do on social media. Use it, but don’t waste your time. He is passionate about relationships. There is a lot to this. A salesperson who is only biding his time until his “other career” takes off may not be passionate about creating relationships. There are a lot of ways to create and maintain relationships including email newsletters, print newsletters, anniversary and birthday phone calls, thank you cards, special random gifts, and customer events. Not one of these will do the job by itself. Dealer principals should also participate in maintaining relationships in case the salesperson does not. Ali offered a lot of value, including a great story about a woman he helped years ago. To this day, that customer continues to send family and friends to Ali.
It was challenging to decide what to include from the interview, so I picked a section at the beginning. During our conversation, Ali offered more nitty-gritty details that can make a difference for any salesperson or dealer principal who listens to it. Ali’s book, How to Sell 100 Cars in a Month is a short read that is well worth your time. Kenny Atcheson is the founder of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. Kenny offers private consulting and he teaches workshops and speaks at conventions and 20 Groups. His company offers several marketing and advertising programs which include Private Consulting, a Referral Results Training Program, a Newsletter Program, a Feedback & Review & Complaint Management System, Google Pay-Per-Click Management, Facebook Pay-PerClick Management, Direct Mail Campaigns, Copywriting, and more. His website can be found at www.DealerProfitPros.com
Download the FIADA app now to get access to all of your FIADA benefits whenever you need them: COUPONS No need for paper coupons, or waiting for your booklet to arrive in the mail. Now, with the tap of the app you can access your coupons and discounts whenever and wherever you like. CALENDAR OF EVENTS Keep up-to-date with what's going on at FIADA. Access the calendar and register for upcoming events all in one place. SOCIAL MEDIA Connect with FIADA via Facebook and other social media channels through the new FIADA app. TECHNICAL ASSISTANCE Got a question? Need some help? Use the FIADA app to help find the answers with our technical assistance line. 28 — Independent Dealer — May 2018
www.fiada.com
Where Buyers Are Going.
“
“
ACV has been a huge help in achieving our acquisition targets. Shannon Aldridge JD Byrider
32 BIDS
132 VIEWS
37 PAID ADVERTISING
PHOTOS
Questions?
Sign up now.
acvauctions.com/FIADA
PAID ADVERTISING
1-800-553-4070
www.fiada.com
May 2018 — Independent Dealer — 29
INDUSTRY NEWS
Second Hotel Added for NIADA Convention
CFPB Fines Wells Fargo for Auto Insurance
The Rosen Shingle Creek Resort is officially SOLD OUT. Although the host hotel is booked, NIADA has secured discounted room blocks at the following hotels: Renaissance Orlando at SeaWorld, 6677 Sea Harbor Drive Orlando, FL 32821 Phone: 407-351-5555 Price: $159/night Fairfield Inn & Suites Orlando at SeaWorld, 10815 International Drive Orlando, FL 32821 Phone: 407-354-1139 Price: $109/night SpringHill Suites Orlando at SeaWorld, 10801 International Drive Orlando, FL 32821 Phone: 407-354-1176 Price: $109/night Transportation will be provided to and from these hotels to the Rosen Shingle Creek. To register for the NIADA Convention go to www.niadaconvention.com. Early bird deadline ends May 18.
The Consumer Financial Protection Bureau announced a settlement with Wells Fargo Bank N.A. in a coordinated action with the Office of the Comptroller of the Currency (OCC). The Bureau found that Wells Fargo violated the Consumer Financial Protection Act (CFPA) in the way it administered a mandatory insurance program related to its auto loans. Under the terms of the consent orders, Wells Fargo will remediate harmed consumers and undertake certain activities related to its risk management and compliance management. The Bureau assessed a $1 billion penalty against the bank for this violation and a mortgage violation. The CFPB credited the $500 million penalty collected by the OCC toward the satisfaction of its fine. Source: Used Car News
2017-2018 FIADA EXECUTIVE COMMITTEE:
SCOTT LANIER, CMD President Credit Cars Orlando, FL 32808 (407) 295-6211
FRANK FUZY
Regional Vice President Century Motors of S. Fla., Inc. Pompano Beach, FL 33064 (954) 785-0369
BRAD JOEL
LISA COMPAGNO
Senior Vice President Splish Splash Auto Sales Princeton, FL 33032 (305) 258-1191
Chairman of the Board Palm Tree Auto Sales Stuart, FL (772) 288-2099
GEORGE HICKEY
STEVE MARBAIS, CMD
Regional Vice President Bond Auto Sales, Inc. Tampa, FL 33604 (813) 238-7478
30 — Independent Dealer — May 2018
Regional Vice President Marbais Enterprises, Inc. Ocoee, FL (407) 877-7422
JENAY RHOADS
PHIL RISLEY
Secretary Florida Auto Exchange Co., Inc Dunedin, FL (727)-796-2886
Treasurer Cars & Credit of Jacksonville Jacksonville, FL (904) 616-4074
BRANDI NOEGEL
JIM WINTERICK, SR.
Regional Vice President Noegel’s Auto Sales Starke, FL (904) 964-6461
Chairman of the Board Gulfstream Motor Credit Miami, FL (305) 253-2335
www.fiada.com
M RE 90
%
MOBILE BUSINESS
TOOLS AND TECHNOLOGY TO HELP ME MANAGE BUSINESS MY WAY*
BILLY GRAHAM | GRAHAM AUTO SALES | LOGANVILLE, GA
PAID ADVERTISING
NextGear Capital has the tools that help me increase my inventory and market share and maximize my floor plan. Account Portal has simplified my world. As long as I have my smartphone with me, I’m in business. I can pay off vehicles, search for MMR and manage my cash flow, all with the touch of a button. BILLY GRAHAM | GRAHAM AUTO SALES Smart. Simple. Fast. | Learn how Billy gets MORE at nextgearcapital.com *This testimonial was received via interview, audio and/or video submission. This testimonial is based on this dealer’s individual experiences, reflecting real life experiences of a NextGear Capital dealer. NextGear Capital does not claim they are typical results that dealers generally will achieve. This dealer’s experiences may not be indicative of future performance or success of any other dealers. Some of the testimonial has been shortened so the whole message is not displayed due to length and/or relevance.
www.fiada.com
May 2018 — 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 2018
Manheim Orlando 11801 W Colonial Dr Ocoee, FL 34761 Sale: Tues 9 AM Highline Exotic Sale Kicks off every 4th Tues 11 AM with Mercedes & BMW Chrysler Closed Factory Sale bi-weekly on Mon 12:30 PM GM Closed Sales bi-weekly on Mon 1 PM Nissan Infiniti Closed Sale 1st Wed monthly 9 AM Manheim Palm Beach 600 Sansbury Way West Palm Beach, FL 33411 561.790.1200 Sale: Thursday 9 AM Exotic Highline Sale every 4th Wed 9:30 AM Manheim St Pete 14950 Roosevelt Blvd Clearwater, FL 33762 727.531.7717 Sale: Thurs Weekly 2:30 PM inops Regular Sale 3 PM Manheim Tampa 401 S 50th St Tampa, FL 33619 813.247.1666 Sale: Thursday 9 AM Total Resource Auction Mon 9:30 AM at Cone Road location Ford Factory Sale every other Wed 10 AM Manheim Caribbean 1050 Carretera 865 KM 4.7 Bo. Candelaria Toa Baja, PR 00949 787.261.7300 Sale: Thurs 12 PM
PAID ADVERTISING
Manheim Central Florida 9800 Bachman Rd Orlando, FL 32824 407.438.1000 Sale: Wed 9 AM Total Resource Auction Wed 8:30 AM “Manheim Imperial Nights” Sale Tues 4 PM Specialty Heavy Truck & Equipment Sale Second Thurs Monthly at 10 AM
Salvage Sale Thurs 11 AM
www.fiada.com