NOVEMBER 2016
www.FIADA.com
ALL IN THE FAMILY John, Lisa and Anthony Compagno at the FIADA Annual Convention. Lisa is FIADA's new president and Anthony is the Quality Dealer of the Year. Page 14.
FULTON, MO PERMIT NO. 38
PA I D PRST STD U.S. POSTAGE
www.fiada.com
November 2016 — Independent Dealer — 1
PAID ADVERTISING
2 — Independent Dealer — November 2016
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 Lisa Compagno President Scott Lanier, CMD Senior Vice President Jim Winterick, Sr. Chairman of the Board 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 Terry Myers Educational Instructor Jason Berthiaume Education and Marketing Coordinator 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.
www.fiada.com
Contents November 2016
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
Membership News
10 Back to Basics Terry Myers explains how to keep a miscommunication from turning into a misrepresentation. 12 An Overview of the Bureau of Dealer Services A concise recap of how the Bureau is structured and requirements of inspections. 14
All in the Family Anthony Compagno is FIADA's 2016 Quality Dealer of the Year. See why he says family is the secret to his success.
17
From the 2016 Annual Convention Back from another great convention, we have a glimpse at the highlights and fun had by all.
24
Be an MVP President Lisa Compagno's three-part goal for the year is to increase membership, increase the PAC fund and increase involvement. Find out how it might be more profitable than you think.
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
November 2016 — Independent Dealer — 3
FROM THE PRESIDENT
Our 2017 Goals
BY LISA COMPAGNO, FIADA PRESIDENT
A
s your newly elected President, I want to take some time to talk to you about my mission for the coming year. But, first, I’d like to thank all of you who attended our FIADA Annual Convention in Orlando. For those of you who did not attend, you missed a great party – casino style – and great breakout sessions including topics on sales and use tax and the new overtime rules that take effect December 1. Next year’s convention will be October 5-7 at the Omni Orlando Resort at ChampionsGate.
This year I have three objectives: (1) to increase our membership, (2) to increase our PAC and (3) to increase your participation. I know, I know, you’ve heard the same song and dance from many of my predecessors. Why? Because there is strength in numbers. We currently have 821 members. These members employ, on average, five people. That’s 4,100 individuals and families whose livelihoods depend on the independent automotive industry. So when we go to Tallahassee and Washington D.C. to visit our legislators we go as the voice of over 4,000 people. That’s the good news. The bad news is that this is not good enough. There are over 4,000 licensed independent dealers in Florida. With 821 FIADA members, that means we are the voice of only 20 percent of the licensed independent dealers in Florida. That is not good enough. We should be the voice of the majority of this group. So, we need your help. We need your help to grow our membership. We need your help so we can go to Tallahassee and Washington D.C. and say to our legislators, “We are the voice of 2,000 independent automobile dealers. These dealers represent 10,000 individuals and families throughout the State of Florida and this is what you need to do for us and our industry.” As an incentive to inspire your help, we have our MVP Referral Program. The program is easy: sign a new member and get a $50 referral fee. You can learn more about our MVP Referral Program on our website www.fiada.com under the “Membership” tab, or check out page 24. So that’s membership. Now let’s talk Political Action Committee (“PAC”). Again, there is strength in numbers. The strength of our PAC allows us to throw financial support behind legislators 4 — Independent Dealer — November 2016
that will not only represent our interests but garner support from other legislators. They become an extension of our voice in Tallahassee and Washington D.C. Our PAC fund currently has $25,153.39. Since January we’ve raised $18,639. That’s less than $25 per member of the Association. At the convention, we had 158 Dealer Members attend, but we only raised $2,200 for the PAC; which is less than $20 per dealer. C’mon, we can do better than that! My dealership donated $100 to the PAC fund during the Convention. I challenge you to donate the same. You can donate to the PAC through our website www.fiada.com under the “Legislative” tab. If every one of our dealers donated $100, we would have over $80,000 in our PAC fund. That means a larger voice in Tallahassee and a larger voice in Washington D.C. So that’s the PAC. Finally, let’s talk participation. Now, at this point you’re probably thinking, damn, this lady just keeps asking for more. Well, yes, I am asking for more. Why? Because we, as an Association, need more. Once again, there is strength in numbers and we need more of you. We need more of you to volunteer your time for Committees and for the Board of Directors. There will be no Association if you do not get involved and participate. We need new blood. We need new ideas and we need fresh perspectives. Thus, I urge you to sign up for one of our Committees – Legislative, Membership, Member Benefits, and Convention. To sign up for a Committee please call Lisette at 800.237.0448. We welcome your participation, your thoughts and your insight. The FIADA Board of Directors steer the ship of the Association. We are the decision makers and we are at the forefront of this industry. I know there are at least five of you out there that want to be among this elite group of decision makers as captains of our ship. If you want more information about joining the Board, please also call and speak with Lisette at 800.237.0448. Together we will increase our membership, we will increase our PAC and we will increase participation. Thank you. Lisa Compagno FIADA President www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2016 — Independent Dealer — 5
EXECUTIVE DIREC TOR’S MESSAGE
FIADA's Legislative Wins BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR
F
or those of you who attended the 2016 Annual Convention we were honored to have a distinguished panel of Legislators speak to attendees. Speaker Designate Richard Corcoran, Rep. Bob Cortes and Rep. Mike Miller. All shared their histories and why they want to serve the citizens of Florida as elected officials. It was an informative and interesting session for all. I'm also pleased to let you know how the FIADA PAC supported candidates fared in the recent election. There were many victories. We supported 30 candidates in the primary and general election. Remember during the primary all but two won their races. In the general election, all the candidates we supported won. We also picked up a seat in Alachua County with Keith Perry who is a great friend and supporter. Dana Young was also elected to the Senate from Tampa Bay. The House kept a strong majority and lost none of the folks we supported.
The results were 27 wins, 2 losses, and as of this writing, 1 race that has not yet been called. However, in that race, the candidate to which we donated has a lead. That means 90 percent of the candidates we supported won. Both locally and nationally, there is no doubt that your contributions from the PAC fund helped these candidates to victory. Even though the election is over, it is still important for you to continue to contribute to the PAC fund. We need to build our coffers to support candidates that will help the automotive industry. Use the form on page 26, or go to www.FIADA.com. Tom (Left) and Bob (Right) Cousins of Southeast Car Agency present a PAC donation to Senator-elect Keith Perry.
Nationally, the NIADA-PAC made contributions to 30 candidates of both parties who were on the ballot this year.
FIADA Secretary Chris Leedom (Left) presents Sen. Greg Steube with a PAC donation. From Left to Right: Speaker Designate Richard Corcoran, Rep. Bob Cortes and Rep. Mike Miller at the Legislative Panel Discussion. 6 — Independent Dealer — November 2016
www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2016 — Independent Dealer — 7
MEMBERSHIP NEWS
New Members
OCTOBER 2016
ALLIANCE MOTORS, LLC
LUSSO MOTORSPORTS
Ocala, FL Ali Gonzalez Sponsor: Kevin Scott
West Palm Beach, FL Michael Basilicato Sponsor: Terry Myers
AMERICAN AUTO SALES WHOLESALE
Seffner, FL Ismail Sharkas Sponsor: FIADA AUTOINSPECT.US LLC
North Miami Beach, FL Jurgis Plikaitis Sponsor: FIADA.com BROMAR, LLC
Brooksville, FL Crystal Marshall Sponsor: Kevin Scott D & R AUTO SALES LLC
Miami, FL Demitri Dotson Sponsor: Terry Myers JAMES COLLINS
Lake Wales, FL Sponsor: FIADA.com KRAFT PLUS CORPORATION
Aventura, FL Artur Sufiyarov Sponsor: FIADA LIGHTHOUSE USED CARS AND TRUCKS
Fort Walton Beach, FL Scott Light Sponsor: FIADA
Rejoining Members ADESA SARASOTA
PEDRO CURBELO
Pembroke Pines, FL Sponsor: Amelia Tillman PREMIER CARS
Fort Walton Beach, FL Stan Nikolov Sponsor: Amelia Tillman PREMIER TRUCK CENTER
Ocala, FL Mike Dockery Sponsor: Kevin Scott ROBIN ROBINSON
Maitland, FL Sponsor: Terry Myers TALL PINE MOTORS
Naples, FL Darren DiFilippo Sponsor: FIADA.com HADDOCK TIMBER
Hillard, FL Rodney Haddock Sponsor: FIADA.com TM DEALER CENTER CORP
Orlando, FL Samuel Ferreira Sponsor: FIADA.com
OCTOBER 2016 TRADEREV
Bradenton, FL Curtis Farris Sponsor: Amelia Tillman
Toronto, Canada Sally Byun Sponsor: Amelia Tillman
BLACK BOOK
THOMPSON ANTIQUE MUSCLE CAR OUTLET
Gainesville, GA Larry Knapp Sponsor: Amelia Tillman
Tampa, FL Leslie Thompson Sponsor: FIADA
8 — Independent Dealer — November 2016
Renewing Members 40+ Year Members Southside Autos, Inc. 30+ Year Members Mears Motor Leasing Wood Motor Company 20+ Year Members Frontier Motors, Inc. Martinez & Associates, CPAs, P.A. 10+ Year Members Dealers Insurance Services, LLC Angelo Auto Wholesale Cars & Credit of Jacksonville Lighthouse Children Home, Inc. Prime Autos Pro-Power Auto Sales Company Wayne Reaves Computer Systems Xpress Finance, Inc. Under 10 Year Members A.R.A. GPS Systems, Inc. Allans Auto sales Auto Market of Florida Corp AutoMaxx Autos Unlimited, LLC AutoTrader.com CARFAX CARite DealerCenter DealerSocket Florida Credit Union Ituran USA, Inc. Mattas Motors Riker's Auto Financial Select Motors Group Inc Southeast Auction Finance, LLC Southeastern Auto Auction The Motorcoach Store
OCTOBER 2016 Orlando, FL Orlando, FL Fort Myers, FL Pensacola, FL Winter Springs, FL Orlando, FL Jacksonville, FL Jacksonville, FL Tallahassee, FL West Palm Beach, FL Port Charlotte, FL Macon, GA Orlando, FL Newnan, GA Panama City, FL Kissimmee, FL Sarasota, FL Sarasota, FL Miami Beach, FL Centreville, VA Madison Hts, MI Los Angeles, CA San Clemente, CA Gainesville, FL Fort Lauderdale, FL Punta Gorda, FL Kissimmee, FL Tampa, FL Saint Petersburg, FL Savannah, GA Bradenton, FL
THE INFORMATION YOU NEED IS JUST A CLICK AWAY AT FIADA.COM FIADA.com is the online hub for all your member benefits and services. Members can log-on any time to get education, information and current events as well as a complete resource library with helpful links, and virtual courses. www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2016 — Independent Dealer — 9
BACK TO BASICS
Is it a Misrepresentation or a Miscommunication?
N
BY TERRY MYERS
ot counting an hour ago, when was the last time someone lied to you?
No one likes being lied to. Misrepresentations are lies and it is illegal to misrepresent your product and/or service(s). If you do not know it to be a fact, do not represent it as a fact. Customers do not always hear what is said by the dealer. Often what the dealer thinks he/she said is not what the customer thinks he/she heard.
The following are excerpts from the Florida Attorney General and the Federal Trade Commission sites. 501.976 Actionable, unfair, or deceptive acts or practices.—It is an unfair or deceptive act or practice, actionable under the Florida Deceptive and Unfair Trade Practices Act, for a dealer to: (8) Misrepresent warranty coverage, application period, or any warranty transfer cost or conditions to a customer.
Taking the time to go over warranty information and answer questions from your customer may help prevent any misconceptions that can turn into legal problems later. Do your homework by reading the contract and getting clarification from the warranty company on any details that are unclear. 10 — Independent Dealer — November 2016
The nation’s consumer protection agency, the FTC also says, “It’s illegal for a dealer to deny your warranty coverage simply because you (inserting that you means the customer/vehicle owner) had routine maintenance or repairs performed by someone else.” The Magnuson-Moss Warranty Act, which is enforced by the FTC, makes it illegal for manufacturers or dealers to claim that your warranty is void or to deny coverage under your warranty simply because someone other than the dealer did the work. The manufacturer or dealer can, however, require consumers to use select repair facilities if the repair services are provided to consumers free of charge under the warranty. Check out the article at https://www.consumer.ftc. gov/articles/0138-auto-warrantiesroutine-maintenance for even more information. That said, there may be certain situations where a repair may not be covered. For example, if you or your mechanic replaced a belt improperly and your engine is damaged as a result, your manufacturer or dealer may deny responsibility for fixing the engine under the warranty. However, according to the FTC, the manufacturer or dealer must be able to demonstrate that it was the improper belt replacement — rather than some
other defect — that caused the damage to your engine. The warranty would still be in effect for other parts of your car. It is good business to review what the warranty elements mean. “Mr./Mrs./ Ms. Customer, if for some reason you need to use your warranty in the future, why don’t we take a few moments to review it and help clarify any questions you may have.” This is where you may discover that you and they have a different definition on the same element. This lets the customer know that you are listening to them and care about them maximizing the value of their purchase and the wisdom of choosing your dealership. Misunderstandings often get treated as lies in a courtroom setting. Of course, you have never misunderstood what someone else said to you, right? Put yourself in the customer’s shoes. You are more experienced than they and are and are held to a higher standard then they. Do your homework. Read the contract you are about to offer and get clarification on any parts that are less than clear from the party supplying the contract you will be offering to your customer. That makes you an advocate for the customer and ultimately, successful! We will continue other (bracket) elements of the 501.976 conversation next month….
PAID ADVERTISING
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. PAID ADVERTISING
November 2016 — Independent Dealer — 11
DHSMV NEWS
An Overview of the Bureau of Dealer Services BY PALMER BRAND
Florida Bureau of Dealer Services Program Manager Palmer Brand gave dealers at the Annual Convention an update and overview on some of the most common questions received from independent dealers. Here is a recap of the information that was presented.
T
he Bureau of Dealer Services regulates all types of motor vehicle dealers and manufacturers. Field Operations has over 150 employees who are responsible for all field operations involving the licensing of motor vehicle, mobile home, and recreational vehicle dealers, manufacturers, and motor vehicle importers and distributors and monitoring the construction and installation of manufactured homes. In order to serve our dealer and consumer customers we have eight regions with twelve office locations. The bureau investigated and resolved 4,486 motor vehicle related consumer complaints, in 2015-2016. The most common complaint against motor vehicle dealers is failure to apply for title and registration for the purchaser within 30 days of the date of sale as required by law. Many times complaints result in an administrative action against the dealer for violation of Florida Statutes. Semi-annually the bureau conducts inspections on dealers determined to be at high risk for non-compliance with licensure requirements. Dealers with multiple consumer complaints or violations, excessive temporary tag usage, or failure to transfer titles and registrations in a timely manner are considered high risk. Dealers must 12 — Independent Dealer — November 2016
resolve these issues in order to pass inspection or face administrative action and possible revocation of their dealer license.
What to Expect and How to Pass a Records Inspection
Transfer Titles and License Plates Timely Florida law requires transfer of title to the new owner within 30 days of sale. In preparation for a dealer inspection our Compliance Examiners run a report detailing how many title transfers have exceeded the 30 day requirement. Failure to maintain timely transfer can result in failing your inspection before the Compliance Examiner is on site. Common causes for exceeding 30 days: • No indicia of ownership on hand at time of sale. • Transfer of tag and title is delayed while finding financing for the sale. • Dealer’s system for processing sales is not efficient. We do understand that there are some rare occasions where it is simply not possible to transfer within 30 days. We suggest you fully document these occurrences and our Examiners will review on a case by case basis. Do Not Misuse Temporary License Plates In preparation for a dealer inspection our Compliance Examiners run a report detailing how many
temporary license plates were issued by the dealer. Expect to have us inquire on any vehicles issued more than two temporary tags. • Do not issue temporary plates for test drives. • Do use dealer license plates when appropriate. Keep Complete Deal Jackets and Have the Jackets Available When we conduct an inspection we will inspect five or more random deal jackets; you will need to have your files accessible. When it comes to documents, when in doubt, put it in the deal jacket. It’s always better to have too much than not enough.
DMV Contacts:
Dealer Services Headquarters (850) 617-3171 Regional Offices Margate Ocala Jacksonville Orange City Orlando Tampa Tallahassee Palmetto W Palm Beach Miami
(954)969-4216 (352)732-1268 (904)924-1524 (386)736-5107 (407)445-7400 (813)612-7110 (850)617-2999 (941)723-4551 (561)640-6820 (305)265-3026 www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2016 — Independent Dealer — 13
ALL IN THE FAMILY The Compagno family, who own Palm Tree Auto Sales in Stuart, had a lot to celebrate at the FIADA Annual Convention including being named the Quality Dealer of the Year. BY CHRIST Y TAYLOR
Above: Members of the Compagno family celebrate with Anthony after he was named the 2016 FIADA Quality Dealer of the Year.
O
14 — Independent Dealer — November 2016
ne of the most exciting times at the Florida Independent Automobile Dealers Association Annual Convention is the announcement of the Quality Dealer of the Year. The tradition, which started in 1977 has become something of a Hall of Fame for Florida dealers. With names like Ellis Warren, George Hickey and Jim Winterick on the list, the Quality Dealer honor is reserved for those leaders who
have proven themselves in the industry, the association and their community. The 2016 winner, Anthony Compagno of Palm Tree Auto Sales in Stuart, is no exception. Anthony and the rest of the Compagno clan are humble about their success and believe it is their tight-knit group of family and family-like employees that makes their dealership special. www.fiada.com
“This award has my name on it, but it’s not just me,” Anthony said. “It is my brother, my sister and my employees. Without all of us working together, we wouldn’t be here.”
explained. Striving to be living examples of the Golden Rule, Anthony says the Compagnos are always trying their best to treat employees and customers the way they would want to be treated.
That mindset is reflected in the way they sell cars. Shying away from the commission-based, sales competition philosophy that used car dealerships were built on, Palm Tree Auto Sales pays its salesforce a salary and reminds them the aim is to make a life-long customer instead of a one-time sale. Between their two locations, Palm Tree Auto Sales typically keeps about 80 units in the inventory and sells around 30 each month. The average vehicle sells for around $8,000 to $9,000 and mostly to credit-challenged customers. Though the right environment for a Buy HerePay Here set-up, the Compagnos decided they were better Anthony is the President of Palm Tree Auto Sales, and at building relationships with their customers than being took the reigns from his dad, Joseph, who opened it debt-collectors a few decades so they help ago. Initially, "We want our customer's perception of how they find financing Anthony was not through their that interested in were treated to be that we always do the right thing, network of subtaking over the and this is not just about making money but building prime lenders dealership. He had but do not grown up around relationships." –Anthony Compagno, Quality Dealer hold the notes the business, but themselves. went off to college The separation of car sales from payment collections also at the University of Central Florida to receive a degree in helps them focus on customer service and promoting a Business Administration. He started working with his dad stress-free sales environment. initially thinking he would help him figure out how to sell the business and retire. He changed his mind once he “We don’t want them to have what most people think of realized how much he enjoyed checking out the cars and as the typical car buying experience. We want to treat the matching them with the right customers. It was a career customer the way we want to be treated and have them path he may have been born into, but now as an adult walk away feeling comfortable and always coming back,” was excited to continue, especially with his brother and Anthony said. With a 33 percent return and referral rate, sister at his side. John Compagno is the sales and finance it seems they are doing it right. It is also why Anthony was manager at Palm Tree and Lisa Compagno is the general nominated for and named Quality Dealer. manager. The Compagnos say their family focus is the biggest contributor to their success. “We want our customer’s perception of how they were treated to be that we always do the right thing, and this is “Lots of people say they have a family-owned business, not just about making money but building relationships. but ours is different. We are a small-business, so our I think that is what a Quality Dealer is, someone who customers meet us and know that we are hands-on in the is is in it for the long-haul, invests in themselves, their middle of our business. They see that we are family and business, their community and the relationships with their I think people really take that feeling away with them,” customers,” Anthony said. Anthony said. “Anthony deserves this award because, for us, he is the glue that holds our business together,” Lisa Compagno said. “Anthony is the one that wears all the hats needed to successfully operate our business. We operate a dealership and a retail service center. Anthony is also an ASE certified mechanic so he can run the service center and fix vehicles as easily as he can buy, sell and set-up financing for them. His well-rounded, multi-faceted skills and abilities are what makes him so deserving of this award.”
In addition to John and Lisa, Palm Tree Auto Sales also employs three salesmen, two mechanics and a service manager. Even though they may not be blood relatives, the Compagnos still extend their family mindset to their co-workers. “We take people in and treat them like family,” Anthony www.fiada.com
One of the most special things about receiving the Quality Dealer award at the convention was that the whole Compagno family was there to celebrate. They were all sitting at a reserved table up in the front of the room when Past President Jim Winterick began to announce the winner. Anthony said he started to piece it together that Continued on Page 16 November 2016 — Independent Dealer — 15
QUALITY DEALER continued from Page 15
he had won, but he was shocked and surprised. It was equally as special that Lisa was sworn in as the Association’s president just a few moments later. “First, let me say that this came as a complete surprise to our entire family. We did not even know that Anthony was nominated,” Lisa said. “That being said, I am extremely proud of Anthony. He has worked tirelessly in this business for 15 years. That may not seem like a lot of time compared to many others in our industry, but in that time he completely turned our business around and with our brother, John, somehow made it through the recession in 2008. He is a wellrespected dealer in our local community and our auto dealer community.” Anthony says Lisa’s desire to get involved with the Association on the level as a Board Member, Executive Committee Member and now President has really made Palm Tree Auto Sales not only a better dealership, but helped them realize why FIADA membership is important. He wishes he had used his membership more when he was starting in the business, saying in hindsight the guidance FIADA could have offered during the business transition from one generation to the next would have really helped.
Past President Jim Winterick (Left) and Executive Director Lisette Mariner (Right) present Anthony with the Quality Dealer of the Year plaque.
“If I had the guidance and network from other dealers then, like we do now, it would have been a much easier start. One of the main benefits that most people list about FIADA is how the Association is fighting for us in Tallahassee. That is a big part of it for sure, but staying up-to-date and not getting left-behind are huge too,” Anthony said. From here, Anthony will go on to represent Florida in the National Quality Dealer contest that will culminate at the 2017 NIADA Convention next June in Las Vegas. Until then, the Compagnos will keep adding to their family one customer at a time. 16 — Independent Dealer — November 2016
One way Palm Tree Auto Sales gives back to the community is by hosting Cars for Kids events, and donating to the Florida Sheriffs Youth Ranches. www.fiada.com
Everyone was a winner at the 2016 Annual Convention and Trade Show. Enjoy more photos at www.fiada.com
Jim Winterick, Sr. is given the crystal gavel in recognition for his term as president. www.fiada.com
Members of the 2015-2016 Executive Committee recognized for their service, from L to R: Jim Winterick, Sr., Steve Marbais, Brandi Noegel, Scott Lanier, Dino Mercurio and Lisa Compagno
November 2016 — Independent Dealer — 17
FIADA was honored to welcome a great group of legislators as speakers. From left to right: Legislative Committee Chairman Dino Mercurio, Rep. Bob Cortes, Speaker Designate Richard Corcoran, Lobbyist Sandra Mortham, Rep. Mike Miller and Past President Jim Winterick, Sr.
Man of the Year presented to Kevin Scott (left)
Auction Person of the Year was given to Bruce Neal of Dealers Auto Auction. Shannon Short (right) accepted the award on his behalf.
Special recognition from the Florida Sheriffs Youth Ranches from left to right: Lisa Compagno, Jim Winterick, Sr., Curt Farris and Dennis Cook
Eagle Award winners for membership recruitment Terry Myers (Left) and Kevin Scott (Right).
18 — Independent Dealer — November 2016
www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2016 — Independent Dealer — 19
20 — Independent Dealer — November 2016
www.fiada.com
www.fiada.com
November 2016 — Independent Dealer — 21
CONVENTION
SPONSORS
Thank you to our 2016 convention sponsors.
MARQUIS
GOLD
SILVER
BRONZE
22 — Independent Dealer — November 2016
www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2016 — Independent Dealer — 23
Calling all Members, Vendors and Partners! Here is your chance to strengthen your Association and earn some extra cash at the same time. The FIADA MVP program offers you $50 for every new member you sign up. It’s a win-win for everyone! FIADA is ready to coach you to victory. Get your playbook today, complete with recruiting tools, and don’t forget to sign our roster so we know you are an official member of our team. Head over to www.FIADA.com to sign up.
MEMBERS: SHARPEN YOUR SKILLS BY JOINING A COMMITTEE Get more out of your membership by joining an FIADA Committee. Committees meet via conference call and discuss new programs, current issues and explore ways to improve FIADA services. They include: Membership: develops membership in FIADA Member Benefits: recommends and reviews benefit programs Legislative: reviews the progress of legislation at the state level and makes recommendations regarding legislative issues Convention: reviews educational programs, sponsorship opportunities, entertainment, theme and general assistance with the annual convention. If you are interested in serving on a committee please contact Lisette Mariner at lisette@fiada.com or call 800.237.0448 ext. 100 or sign up electronically at http://www.fiada.com/page/Committees. 24 — Independent Dealer — November 2016
www.fiada.com
PAID ADVERTISING
www.fiada.com
November 2016 — Independent Dealer — 25
SUPPORT THE FIADA PAC Your PAC Contribution helps spread awareness and gain support of issues affecting independent dealers in the state’s capitol. There’s still time to get your contribution in before the session starts if you make it today.
CONTRIBUTION INFORMATION Contributor’s Name:_________________________________________________________________________ Dealership/Company:________________________________________________________________________ Street Address, City, State, Zip:____________________________________________________________________
q
Check q
q
$500
Credit Card (one time contribution) q q
Credit Card Information:
$250 q
$100
q Visa
q
q
MasterCard
Monthly Credit Card Contribution (until cancel)
$50 q
q
$25
q
American Express
_________ q
Discover
PAYMENT INFORMATION Name on Card: Card number: Exp Date:
Sec. Code:
Billing Phone:
Billing Address Authorized Signature
Make your check payable to FIADA-PAC and mail to: FIADA • 1840 Fiddler Court • Tallahassee, FL 32308 If making payment via credit card, you may fax your contribution form to 850.385.3251
26 — Independent Dealer — November 2016
www.fiada.com
PAID PAID ADVERTISING ADVERTISING
www.fiada.com
November 2016 — Independent Dealer — 27
LEGAL ROUND-UP
A Look At Current Legal Issues BY THOMAS B. HUDSON AND NICOLE FRUSH MUNRO, HUDSON COOK, LLC
A monthly collection of selected legislative and regulatory highlights, and a recap of some of the many auto sale and financing lawsuits followed each month. FEDERAL DEVELOPMENTS Warranty Disclosure Rules Modernized On September 6, the FTC announced a final rule, effective October 17, 2016, amending the rules on Disclosure of Written Consumer Product Warranty Terms and Conditions ("Disclosure Rule") and Pre-Sale Availability of Written Warranty Terms ("Pre-Sale Availability Rule") to give effect to the E-Warranty Act, which allows warranty terms to be given to consumers online, under some circumstances. The Disclosure Rule provides disclosure requirements for written warranties on consumer products costing more than $15, specifies the aspects of warranty coverage that must be disclosed in written warranties and the language required for certain disclosures, and requires simple language in a single document. The warrantor must disclose any limits on the duration of implied warranties "on the face of the warranty." The final amendments to the Disclosure Rule specify that, for a warranty posted on a website or displayed electronically, disclosures required to appear "on the face of the warranty" must be in close proximity to where the warranty term text begins. The Pre-Sale Availability Rule describes the methods by which warrantors and sellers must provide warranty terms to consumers before a sale. The final amendments to the PreSale Availability Rule allow warrantors to post warranty terms on websites if they also provide a non-Internet-based method for consumers to obtain the terms and satisfy certain other conditions, and allow certain sellers to display warranty terms pre-sale in an electronic format if the warrantor has chosen to display its warranty terms online. FTC Eyeballs Disposal Rule. On September 12, the FTC, as part of its systematic review of all its regulations 28 — Independent Dealer — November 2016
and guides, issued a notice seeking public comment on its Disposal of Consumer Report Information and Records Rule ("Disposal Rule"). The Disposal Rule requires that persons subject to the Commission’s jurisdiction who maintain or otherwise possess consumer information for a business purpose properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal. The FTC seeks comment on the economic impact and benefits of the Rule, possible conflicts with state, local, or other federal laws, and its effect on any technological or other industry changes. The FTC also seeks comment on whether the definition of "consumer information" should be expanded to include aggregate information or information that can be reasonably linked to an individual. Comments are due by November 21, 2016. CFPB Fines Title Lender. On September 26, the CFPB announced that it reached a consent order with TMX Finance LLC, the parent company to several vehicle title loan subsidiaries, including TitleMax. The CFPB alleged that TMX misled consumers about potential loan costs if the consumers renewed their title loans multiple times, instead of repaying them in 30 days. Specifically, it alleged that, while negotiating 30-day single-payment title loans, TMX employees offered consumers a "monthly option" for making loan payments. Employees also offered consumers a "Voluntary Payback Guide" that showed how to repay the loan with smaller payments over a longer period of time. The Bureau charged that the employees and the guide did not explain the total cost to the consumer if he or she repeatedly renewed the loan over a certain period. In addition, some TMX
employees allegedly revealed sensitive information about consumers' past-due debts while visiting consumers' homes, references, and places of employment in attempts to collect the debts. Under the consent order, TMX is required to pay a $9 million civil penalty. CASE OF THE MONTH Dealership Was "Creditor" Required to Provide ECOA Adverse Action Notice. A dealership sold a car to a buyer, who made a $1,248 down payment and signed a retail installment sale contract for the remaining amount owed. After the dealership assigned the RISC, the dealership requested that the buyer return to the dealership. When she did, the dealership demanded that she make an additional $1,500 down payment. Because the buyer was unable to do so, the dealership revoked the RISC and kept the car. The buyer sued the dealership for violating the Equal Credit Opportunity Act, and the trial court granted the buyer's motion for summary judgment. The appellate court affirmed. The dealership argued that the trial court erred in finding that it was a "creditor" required to provide the buyer an adverse action notice. The appellate court disagreed, finding that because the dealership regularly sets the terms of its financing agreements and routinely restructures deals, it is a "creditor" under the ECOA, even though it acts as a middleman between car buyers and the assignees of their RISCs. See Tyson v. Sterling Rental, Inc., 2016 U.S. App. LEXIS 16258 (6th Cir. (E.D. Mich.) September 2, 2016). 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 2015, all rights reserved. Single publication rights only, to the Association. (2/16). HC# 4848-8454-3277.
www.fiada.com
Recycle your old, used, forgotten keyless remotes, smart keys, and remote head keys by selling them to us. WE PAY
UP TO $25 PER USED REMOTE!
For more information call us or email:
727.667.6157 | info@cashforkeyless.com
PAID ADVERTISING
WE BUY Smart Keys Remote Fobs Key/Remote Combos
It’s time to change your approach to F&I compliance
Subscribe to Spot Delivery and, at no additional charge, we will send you a copy of your choice of any of our legal compliance books, CARLAW, CARLAW II Street Legal or CARLAW III Reloaded.
PAID ADVERTISING
WITH THIS SPECIAL OFFER...
To order, visit us at www.counselorlibrary.com/offer/spot or call us at 877-464-8326. Also follow us on: www.fiada.com
November 2016 — Independent Dealer — 29
INDUSTRY NEWS In Memoriam: Bob Snider
Robert M. Snider, Bob to his friends, 89 died Friday, November 4, 2016 at Parrish Medical Center. Bob was born January 19, 1927 in Centerview, Missouri, where he grew up on a farm. When he could legally drive, he bought his first of 17 cars before being drafted to serve in the Army during WWII at age 18. Upon discharge, he attended the University of Northern Colorado and obtained a part-time job with Singer Company, where he developed his sales skills. At the age of 24, he became the manager of a Singer Store in Worland, WY where he met Carlene, his surviving wife of 63 years. He then became the owner of the Worland Chrysler Dodge dealership. After two years he sold it and was employed as Sales Manager at a Chrysler Dodge dealership in Pocatello, ID. After 6 and a half years, he was hired as a Factory Representative at Jeep. After American Motors bought Jeep, many of the Jeep employees were given notice, thus leading to the decision to start Snider's Truck and Auto Sales, which he sold and then fully retired in 1997. He had a U-Save rental fleet of 35 cars, was Vice President of U-Save Auto Rental Inc., a Board member as well as State Manager and Regional Manager of six states. For over 20 years as a small business owner, Bob served the community by selling or renting qualtiy vehicles for a fair price and believed "the customer is always right." Bob served as president of the Florida Independent Automobile Dealers Association in 1988 and was named Quality Dealer of the Year in 1991. Condolences may be expressed at www.funeralsolutions.net. In lieu of flowers, donations to Wounded Warriors (www.woundedwarriorproject.org) would be appreciated.
Retail Installment Sellers License Reminder Dealers need to renew their retail installment sellers license every even number year, the recommended date to renew your license for this year is Dec. 15, 2016 or earlier. This allows some time for the renewal application to be processed for a January 1, 2017 start date. Finance licenses run from January 1 of each odd year through December 31 of each even year. No business may be conducted until the renewed license has been issued. Any business conducted before the renewed license is issued may be looking at $500+ fine for each unlicensed transaction.
Southeastern Auto Auction Raises Money For Hurricane Matthew Victims On Wednesday October 12th, Southeastern Auto Auction and its dealers raised money to benefit those affected by Hurricane Matthew. Money raised through donations and a 50/50 drawing were matched by the auction and given to the American Red Cross. Some victims of the hurricane in Haiti will also benefit from this fundraising effort. The winner of the 50/50 drawing (Les Brooks, Coastal Auto) used his winnings to purchase baby formula that will be personally delivered to Haiti by Terri DeLoach (wife of Wayne DeLoach, President of Southeastern Auto Auction) when she travels there with her church later this month. “We ended up being able to offer some support to those affected in the U.S. and abroad. While many of our dealers and employees were affected by the hurricane, most are grateful knowing that it could have been much worse. Our prayers go out to all who have suffered from this event.” –Bill McCready, Vice President of Operations, Southeastern Auto Auction
FIADA is your number one source for advice and information. Technical questions, legal questions, regulatory questions...bring them on! SINCE 1940
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!
30 — Independent Dealer — November 2016
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
PAID ADVERTISING
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
www.fiada.com
November 2016 — Independent Dealer — 31
MANHEIM FLORIDA ALWAYS NEARBY.
Manheim Daytona Beach 1305 Indian Lake Road Daytona Beach, FL 32124 386.255.2500 Sale: Wed 3 PM Total Resource Auction every Wed 2:30 PM Manheim Fort Lauderdale 5353 S State Road 7 Davie, FL 33314 954.791.3520 Sale: Fri 9 AM Total Resource Auction Tue 9 AM Ford Open Sale every other Fri Manheim Fort Myers 2100 Rockfill Rd Fort Myers, FL 33916 239.476.9800 Sale: Wed 4 PM Total Resource Auction every other Wed 3 PM Specialty Sale last Wed monthly 2 PM Galloway Direct Off Site Sale 2nd & 4th Tues 12 PM Manheim Jacksonville 10817 New Kings Rd Jacksonville, FL 32219 904.768.9981 Sale: Thurs 1 PM Total Resource Auction every Thurs 12:40 PM Manheim Lakeland 8025 N State Road 33 Lakeland, FL 33809 863.984.1551 Sale: Wed 2 PM Specialty RV/Boat Sale 1st Wed monthly 9 AM
Manheim Orlando 11801 W Colonial Dr Ocoee, FL 34761 Sale: Tues 9 AM Highline Exotic Sale Kicks off every 4th Tues 11 AM with Mercedes & BMW Chrysler Closed Factory Sale bi-weekly on Mon 12:30 PM GM Closed Sales bi-weekly on Mon 1 PM Nissan Infiniti Closed Sale 1st Wed monthly 9 AM Manheim Palm Beach 600 Sansbury Way West Palm Beach, FL 33411 561.790.1200 Sale: Thursday 9 AM Exotic Highline Sale every 4th Wed 9:30 AM Manheim St Pete 14950 Roosevelt Blvd Clearwater, FL 33762 727.531.7717 Sale: Thurs Weekly 2:30 PM inops Regular Sale 3 PM Manheim Tampa 401 S 50th St Tampa, FL 33619 813.247.1666 Sale: Thursday 9 AM Total Resource Auction Mon 9:30 AM at Cone Road location Ford Factory Sale every other Wed 10 AM Manheim Caribbean 1050 Carretera 865 KM 4.7 Bo. Candelaria Toa Baja, PR 00949 787.261.7300 Sale: Thurs 12 PM Salvage Sale Thurs 11 AM
32 — Independent Dealer — November 2016
PAID ADVERTISING
Manheim Central Florida 9800 Bachman Rd Orlando, FL 32824 407.438.1000 Sale: Wed 9 AM Total Resource Auction Wed 8:30 AM “Manheim Imperial Nights” Sale Tues 4 PM Specialty Heavy Truck & Equipment Sale Second Thurs Monthly at 10 AM
www.fiada.com