OCTOBER 2016
www.FIADA.com
Information and Insight for Florida Used Car Dealers
MAKE IT COUNT GO VOTE In an election year, every vote and every PAC donation counts. See how your involvement can make a difference starting on page 6.
FULTON, MO PERMIT NO. 38
PA I D PRST STD U.S. POSTAGE
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Dealer Independent
MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308 TELEPHONE (850) 385-2712 (800) 237-0448 FAX (850) 385-3251 WEBSITE www.FIADA.com EXECUTIVE COMMITTEE Jim Winterick, Sr. President Lisa Compagno Senior Vice President Dino Mercurio Chairman of the Board Govinda Romero Secretary
Contents October 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 Jim Winterick, Sr.
6
Executive Director’s Message Lisette Mariner, CAE
10
Back to Basics Terry Myers starts to examine compliance issues relating to Florida deceptive and unfair trade practices.
12
Membership News
14
2016 FIADA Annual Convention Guide and Registration Don't Gamble on Your Future! Attend the FIADA Annual Convention at the Renaissance Orlando at SeaWorld.
Amelia Tillman Membership Director
20
Legislative Update FIADA Lobbyist Sandra Mortham explains why every vote counts.
Christy Taylor Editorial/Advertising
22
Thank You PAC Contributors!
Send address changes to
24
Social Media Savvy Sales Pros Are More Likely to Beat Quota It's official that social media goes a long way to help make more sales. Get some tips and strategies on how to sell social.
The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308
27
FTC Charges Dealer Group With Yo-Yo Financing Tactics Nine Los Angeles auto dealerships have been accused of deceptive and unfair sales and financing practices.
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
Scott Lanier, CMD Treasurer Brad Joel Regional Vice President Christopher Leedom Regional Vice President Steve Marbais, CMD Regional Vice President Brandi Noegel Regional Vice President Phil Risley Regional Vice President FIADA STAFF Lisette Mariner, CAE Executive Director Terry Myers Educational Instructor Jason Berthiaume Education and Marketing Coordinator
POSTMASTER:
FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Call/Text: (800) 237-0448 Fax (850) 385-3251 • www.FIADA.com
The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.
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October 2016 — Independent Dealer — 3
FROM THE PRESIDENT
Another Great Year BY JIM WINTERICK, SR., FIADA PRESIDENT
T
he 2016 Annual Convention is approaching and another successful year comes to its conclusion for our association. 2016 has been great for the FIADA. Our own Frank Fuzy of Century Motors in Pompano Beach concluded his presidency for the NIADA. It has been quite a while since we have had a Floridian in this position. Also, our own Lisette Mariner was honored at the national convention as Association Executive of the Year. Then, to really show what we Florida dealers are all about, we finished off with Scott Lanier of Credit Cars in Orlando being named the National Quality Dealer of the Year. That is an honor that is bestowed on only the best dealers and a feat which has not been attained by a Florida dealer in many years. These are the kind of people in our association, the best of the best. We should all be proud to have dedicated people such as these represent Florida Independent Dealers. These are the people we all aspire to be. They stand on the pinnacle of our profession working for our industry and our common profession. The upcoming year will be even better. There is little doubt we will face challenges, but rest assured your association will be in the vanguard protecting Florida Dealers' interests in Tallahassee and Washington, D.C. No one holds the interest of independent dealers in high regard like your fellow dealers do. The question as always is: what you can do to help with our effort? Start by planning to attend your FIADA Annual Convention in Orlando at SeaWorld later this month. This is a once a year meeting where we come together to jointly advance the used car and truck dealer agenda. If you are not there, no one will know what you expect from your association. Remember the old adage, "Life is run by those who show up." Also, at this gathering we will have ongoing training that can be utilized toward
4 — Independent Dealer — October 2016
your CE's (continuing education credits). Of course, there will be a huge convention hall with every vendor that supports your association and helps all of us stay on the edge of important new, profitable products and ideas. If you miss the opportunity, your business growth may be less than hoped for in the coming year. And, as always, , money-making and money-saving ideas will be exchanged between non-competitors. Bring a friend, invite a nonmember and together we can improve our association. We all need to work together to improve the image of the used car dealer. For me, that is our shared common problem. Most of us are hardworking, honest, good people simply attempting to deliver quality, reliable, safe, budgetfriendly products and services to our fellow Floridians, their friends and neighbors. Our profession has been given a bad name. Some of it is deserved, but most of it is not. It is up to us to change this perception. Together we can. Individually all of us must strive to follow the FIADA Code of Ethics and motto, which in essence says: Take care of your customer, do the right thing and put the customer's interests first. Then get out of the way as satisfied buyers make your success inevitable. Thank you for allowing me to serve as President of the FIADA this year. The privilege is mine and it has been my honor to be of service. Great selling and profit be yours! Jim Winterick Sr. FIADA President
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EXECUTIVE DIREC TOR’S MESSAGE
Making a Difference in Washington BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR
I
had the pleasure of attending the NIADA Leadership Conference in DC with the FIADA's incoming President Lisa Compagno. This was a great opportunity to meet with other state executives and dealers, as well as learn about the issues effecting dealers on a federal level. Our lobbyist, the Honorable Sandra Mortham, attended too. She set up meetings for our Florida delegation that included Lisa Compagno, John Cousins, Jim Taylor, Mike Samaan, and Frank and Gina Fuzy. I wanted to express my thanks to the dealers that gave their time to attend this meeting and help support the industry. I know it takes a lot to get away from the lot for three days, but it means so much when we meet with legislators and they can speak to you directly. We had meetings with Congressmen Bill Posey, John Mica, Dan Webster, Gus Bilirakis and Congresswoman Ileana Ros-Lehtinen. We provided general information about the Association and discussed the Used Motor Vehicle Recalls and reforming the Consumer Financial Protection Bureau (CFPB). Everyone was very receptive to the issues and supported our viewpoint. It was a wonderful opportunity to help Florida’s congressional delegation understand who we are and look to us as a resource for the industry. They now have a better understanding of the differences 6 — Independent Dealer — October 2016
Gina Fuzy, Frank Fuzy, Lisa Compagno and Lisette Mariner behind the podium at the United States Senate during the NIADA Leadership Conference in Washington, D.C.
between the franchise dealers and independents. During the conference, representatives from the Department of Labor explained the new overtime exemption requirements that take effect December 1. Dealers had an opportunity to express the pitfalls of the updated rules. The new rules will be discussed at the FIADA Convention in Orlando during a session Saturday morning, by attorney David Buchsbaum, Partner with
Fisher Phillips. We also heard from representatives with the CFPB, Federal Trade Commission and Department of Justice. The NIADA and FIADA work diligently on your behalf to help the "alphabet soup" we call our regulators understand the impact they have on the industry. Meetings such as the NIADA Leadership Conference and the FIADA Convention are a great way for you to stay in touch and be involved. See you in Orlando! www.fiada.com
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Florida's delegation (L to R) John Cousins, Lisette Mariner, Congressman Bill Posey (FL 8), Lisa Compagno, Frank Fuzy and Mike Samaan.
FIADA Lobbyist Sandra Mortham, Lisa Compagno, Frank Fuzy, Gina Fuzy and Lisette Mariner outside Florida Senator Marco Rubio's office. 8 — Independent Dealer — October 2016
Lisette Mariner, Congresswoman Ileana Ros-Lehtinen (FL 27), Frank and Gina Fuzy
Gina Fuzy, Frank Fuzy, Lisette Mariner and Lisa Compagno honor the Florida state flag at the Senate Office Building prior to meeting with Senator Rubio's staff. www.fiada.com
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October 2016 — Independent Dealer — 9
BACK TO BASICS
It's Certified. Are You Compliant? BY TERRY MYERS
What is an unfair and deceptive act? Let’s explore some of the possibilities, especially as they relate to Certified Pre-Owned claims.
F
lorida State Statue 501.976 states: Actionable, unfair, or deceptive acts or practices says: It is an unfair or deceptive act or practice, actionable under the Florida Deceptive and Unfair Trade Practices Act, for a dealer to:
(4) Represent the quality of care, regularity of servicing, or general condition of a vehicle unless known by the dealer to be true and supportable by material fact. Are you in compliance? Here are a few questions to ask yourself to make sure you are. Can you support every statement you and your employees make verbally or in writing? While the Certified Pre-owned statement adds financial and sales value, do you have supporting documentation? Has anything happened to the vehicle to negate any one of the elements applicable to that statement? Is the dealership making the statement or relying on an outside source? How reliable is the outside source?
Certified Peace of Mind The NIADA Certified program has been helping NIADA members turn their inventory 20 days faster, increase gross profits 17 percent and improve customer satisfaction for the past few years. NIADA Certified is also compliant if you, or your sales staff, make claims about a car's mechanical health or history. As part of the CPO process, each vehicle must undergo a complete inspection and be free of any defects in the program's identified systems prior to being offered for sale as a certified unit. Every NIADA Certified Pre-Owned Vehicle is backed not only with the inspection but must have a vehicle title history report ran as well. With a clear title report, each NIADA Certified vehicle must pass another comprehensive inspection, covering items from the engine to the interior to confirm that the quality and condition of the vehicle meets or exceeds NIADA’s criteria. The warranty component reinforces what you tell your customer during the sales process and provides the safety net if anything goes wrong. Find out more about NIADA Certified at www.NIADACertified.com/dealers. 10 — Independent Dealer — October 2016
Download more information about NIADA Certified, as well as printable marketing materials www.NIADACertified.com/dealers
What happens when there is a claim based upon the statement relied upon by the client? Who bears responsibility if a claim is made? How financially sound is the resource? Do they have a history of paying righteous claims? Sources report increasing sales results for dealerships offering these types of programs. NIADA used car dealer members have access to information about how to incorporate the NIADA Certified Pre-Owned program online at www.niadacertified.com/dealers/. Talk with other FIADA CPO dealers about how the program has impacted their bottom line. “Shoppers most often say it’s because of the peace of mind they get from the certification, the fact that it has a stronger warranty, or that they cannot afford to buy new.”, says Howard Polirer, director of industry education at AutoTrader.com. He was referring to the findings of a 2011 study conducted on behalf of AutoTrader by Morpace. Peace of mind for the customer, increased income for the dealership and compliance with 501.976(4) make this worth looking into. It seems to be working well for the new car store, why not you?
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We will continue other (bracket) elements of the 501.976 conversation next month…. Articles are the opinion of the author and are not intended to be legal or accounting advice. The intent is to share thoughts and concepts that help the business owner(s) find new and perhaps revisit, ways to be as successful as they are capable of being. Terry can be reached at (727) 804-7375. Email: tmyers@floridaautodealerschool.com. Feedback is appreciated and encouraged. Terry LB Myers, author, lecturer, FIADA instructor, FADS owner/ instructor.
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MEMBERSHIP NEWS
New Members
SEPTEMBER 2016
ADESA SANFORD ORLANDO Sanford, Florida Jeff York Sponsor: Amelia Tillman
JACKS AUTO SALES Port Richey, Florida Jack McHale Sponsor: ASC
BALY AUTO SALES, LLC Dunnellon, Florida Sarah Baly Sponsor: Dealers Auto Auction/ John Cousins
JEWEL AUTOHAUS Tampa, Florida Marc Vitorillo Sponsor: Amelia Tillman
BRIMSTONE MOTORS LLC Davie, Florida Lernard Crockett Sponsor: Terry Myers CORVETTE EXPERIENCE Oakland Park, Florida David D'Onofrio Sponsor: FIADA FITZGERALD MOTORS, INC. Clearwater, Florida Eric Coffey Sponsor: FIADA FLAG MOTOR SALES Sanford, Florida Chris Snowball Sponsor: Terry Myers FLEET LIQUIDATORS OF CENTRAL FLORIDA LLC Debary, Florida Brande Hunt Sponsor: Scott Lanier GATOR AUTOMOBILE SALES, LLC Tampa, Florida Richard Ball Sponsor: FIADA.com HOOPER'S QUALITY CARS Palm Beach Gardens, Florida Stephen Hooper Sponsor: Amelia Tillman
LANTERN MOTORS, INC Fort Myers, Florida Leo DiBiasi Sponsor: Amelia Tillman LINE 5 Sunrise, Florida Kelly Frommer Sponsor: Amelia Tillman PALM BEACH AUTO WHOLESALE Lake Park, Florida Phil Trupiano Sponsor: Independent Dealer ROBERT'S DIESEL SERVICE INC Jacksonville, Florida Wendy T. Mansfield Sponsor: Amelia Tillman ROCKY'S USED AUTO SALES INC Gainesville, Florida Rocky Burgess Sponsor: Dealers Auto Auction/John Cousins TEXAS MOTORS INC Orlando, Florida Javier Atencio Sponsor: FIADA.com TRINET Tampa, Florida Greg M. Gaunt Sponsor: Amelia Tillman
12 — Independent Dealer — October 2016
Rejoining Members
SEPTEMBER 2016
ANDERSON'S AFFORDABLE AUTO Dunnellon, Florida Chris Anderson Sponsor: Amelia Tillman
MIAMI MOTORSPORTS LLC West Park, Florida Gustavo Lupka Sponsor: Amelia Tillman
Renewing Members
SEPTEMBER 2016
10+ Year Members Florida Auto Dealer School Leedom Group No. 1 Auto Sales, Inc. Under 10 Year Members Advance Auto Parts Americas Auto Auction Pensacola Auction Direct USA AutoZone Car's Trade Center LLC Holcombe USA, Inc. dba Autoshow Sales & Service Lazydays National Auto Lenders, Inc. Nice Car, Inc. Sunbelt Dealers Assistance Inc. Tampa Bay Truck And Auto Wholesale Vehicle Clearing House Veneauto Cars
The Villages, FL Sarasota, FL Hollywood, FL Lakeland, FL Pensacola, FL Jacksonville, FL Memphis, TN Orlando, FL Plantation, FL Seffner, FL Miami Lakes, FL Hollywood, FL Atlanta, GA Clearwater, FL Winter Garden, FL Gainesville, FL
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. We have something for everyone: Membership
Member Benefits
Legislative 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. Your service on a committee helps the association and provides an opportunity for you to give back to your industry. Help support the used car industry by serving on a committee. www.fiada.com
on Norwegian Cruise Lines
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GARAGE LIABILITY • SURETY BONDS • PROPERTY PHYSICAL DAMAGE • WORKER’S COMP
CALL US: 941.981.5160 www.fiada.com
October 2016 — Independent Dealer — 13
TRADE SHOW
EXHIBITORS
The Annual Convention Trade Show will feature a full house of vendors and exhibitors looking to help your business gain and grow. Not only is this a prime networking opportunity, but its also a chance to win big in the Poker Run. Prizes up for grabs include a 3-Night Cruise, Convention Package, Golf Gift Basket and much more.
700Credit ADESA Advance Professional AFC All American Bonds and Insurance Ally SmartAuction AMAC - Ace Motor Acceptance Corporation American Credit Acceptance America's Auto Auction Jacksonville A.R.A. GPS Systems, Inc. Argentum Financial, LLC ASC Warranty Auction123.com Auto Data Direct, Inc. Automotive Capital Resources AutoPoint Title Tec Autotrader Auto Use BSC America Tallahassee Auto Auction Cooper Tire Copart, Inc. Dealers Insurance Services, LLC
DealerSocket Delivra eBay Motors First Home Bank FlexPlus LLC Florida Auto Tag Agencies IAA Ituran USA, Inc. Kelley Blue Book Kingston Asset Management Service Leedom Group Lobel Financial Manheim MicroBilt Corporation National Auto Lenders Nationwide Southeast LLC NextGear Capital Orlando Auto Auction Podium PrimaLend Capital ProGuard Warranty Protective Asset Protection
14 — Independent Dealer — October 2016
Pro-Vigil Surveillance Services Rent-A-Wreck Used Car Rental Sheriffs Ranches Enterprises SilverRock Inc. Single Interest Insurance/GPS Tracking Skypatrol, LLC Sound Branding Ideas Southwest Re. Spireon, Inc. Strategic Dealer Services Tax Refund Services Tax Max TextBox TradeRev TRUECar United Acceptance, Inc. U-Pull-&-Pay vAuto Veros Credit Warrantech/NIADA CPO Wayne Reaves Software Williams & Stazzone Insurance Agency, Inc.
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TENTATIVE
SCHEDULE
Schedule as of 10/5/16. Events subject to change.
Thursday, Oct 20, 2016
Saturday, Oct 22, 2016
3:00 - 7:00PM
Registration Open
7:30 - 3:00PM
Registration Open
6:30 - 8:30PM
Welcome Reception
8:00 - 9:00AM
Breakfast with Exhibitors
9:00 - 10:00AM
Breakout Session A Sourcing Inventory Through Digital Acquisition Channels, Mark Bohannon, Regional Director, Central Florida, NextGear Capital
Friday, Oct 21, 2016 7:30 - 4:00PM
Registration Open
8:00 - 9:00AM
Breakfast
9:00 - 10:15AM
Opening Keynote - "Don’t Gamble on Your Success" Marty Coates, Coates & Associates, Inc.
9:00 - 10:00AM
10:15 - 10:45AM
Member Meeting/Elections
10:45 - 11:00AM
Coffee Break
11:00 - 12:00PM
Legislative Panel Discussion
Moderator: Sandra Mortham, Panelists: Rep. Richard Corcoran, Speaker Designate; Rep. Robert “Bob” Cortes; Rep. Mike Miller
12:00 - 1:30PM
Networking Lunch
1:45 - 2:45PM
Breakout Session A “Florida Sales & Use Tax - The Tax Man is Coming” James Sutton, CPA, Esp., Moffa, Sutton & Donnini, PA
1:45 - 2:45PM
Breakout Session B Addressing the Needs of the Newest Generation of Buyers Mike Platts, CARFAX
Breakout Session B How To Address The New FLSA Overtime-Exemption Requirements, David Buchsbaum, Partner, Fisher Phillips
10:15 - 11:45AM Keynote Speaker and Awards Ceremony "Leadership Lessons from H-O-L-L-Y-W-O-O-D" Author Andy Masters 12:00 - 2:30PM
Lunch with Exhibitors & Exhibitor Giveaways
2:45 - 3:45PM
Breakout Session A Providing Lines of Credit for BHPH Dealerships with BHPH-In-A-Box John Donaldson, President/ Chief Financial Officer, Ace Motor Acceptance Corporation
2:45 - 3:45PM
Breakout Session B Panel Discussion: Online Reputation Management Breakout Session C Dealer Best Practices: How A BHPH Operation Can Achieve Success In Today’s Regulatory Climate David Brotherton, 20 Group Moderator & Training Consultant, NIADA
1:45 - 2:45PM
Breakout Session C Financing Your Inventory for Growth Stacy Fields, NextGear Capital
2:45 - 3:45PM
3:00 - 4:00PM
Division of Motorist Services Update High Risk Audit Program and Dealer and Transporter Plate Issues
Palmer Brand, Program Manager, Bureau of Motorist Support, Division of Motorist Services
4:00 - 5:30PM
5:00 - 9:00PM
Exhibit Hall Grand Opening, Dinner
Legal Update Robert Sickles, Managing Partner, Broad and Cassel
5:30 - 7:00PM
Closing Reception
QUESTIONS?
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You can get answers to many of your Convention questions online at www.FIADA.com, or call/text us at 800.237.0448. October 2016 — Independent Dealer — 15
2016 FIADA ANNUAL CONVENTION
OCTOBER 20-22, 2016 | RENAISSANCE ORLANDO AT SEAWORLD COMPANY INFORMATION Company:___________________________________________________________________________________________________________ Address:__________________________________________________ City, State, Zip:_____________________________________________ Phone:___________________________________________________ Fax:______________________________________________________ E-mail:___________________________________________________ Website:__________________________________________________
REGISTRATION INFORMATION FIADA MEMBER DISCOUNTED REGISTRATION RATES
REGULAR (9/1 - 10/14)
ON-SITE (10/15 - 10/22)
[
] $299
[
] $349
Badge Name:______________________________________________________________________
[
] $195
[
] $195
Badge Name:______________________________________________________________________
[
] $195
[
] $195
[
] $100
[
] $100
[
] $124
[
] $149
Badge Name:______________________________________________________________________
[
] $349
[
] $399
Badge Name:______________________________________________________________________
[
] $195
[
] $195
Badge Name:______________________________________________________________________
[
] $195
[
] $195
[
] $100
[
] $100
[
] $149
[
] $175
MEMBER
FULL ACCESS PASS Badge Name:______________________________________________________________________
ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass)
SPOUSE FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:______________________________________________________________________ EDUCATION PASS (Does not include meals) Badge Name:______________________________________________________________________
NON-MEMBER REGISTRATION RATES
FULL ACCESS PASS NON ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass) MEMBER
SPOUSE FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:______________________________________________________________________ EDUCATION PASS (Does not include meals) Badge Name:______________________________________________________________________
FULL ACCESS AND SPOUSE FULL ACCESS PASSES includes all meal functions, seminars and exhibit hall access and is eligible for continuing education credit. Additional Full Access passes and Spouse pass are only available with a Full Access registration. Valid FIADA membership required for FIADA member registration rates. CHILD REGISTRATIONS AVAILABLE Contact FIADA at (800) 237-0448 for details and to register.
TOTAL:
$
PAYMENT METHOD [
] I have enclosed a check made payable to FIADA
[
] I will be using a credit card
Name (as it appears on card):_____________________________________ Company:______________________________________________ Credit Card Billing Address:______________________________________________________________________________________________ Credit Card Number:________________________________________________________________
Exp Date:_________________________
Authorized Signature:_______________________________________________________________ CC Security Code:___________________ CANCELLATION POLICY: If cancellations are received in writing before 5pm on Monday, September 19, 2016, we will refund your registration fee. If cancellation is received between 9/20/16 and 10/13/16, we will refund your registration fee less a $25 processing fee. Fees cannot be refunded for registrations cancelled after 10/13/16 or for no-shows. PHOTO/VIDEO RELEASE: By registering for the 2016 FIADA Annual Convention, I hereby grant permission to use any and all photographic imagery and video footage taken of me at this event and activities pertaining to this event, without payment or any other consideration. I understand that such materials may be published electronically or in print, or used in presentations or exhibitions.
HOTEL INFORMATION: Renaissance Orlando at SeaWorld. Hotel stay is separate from convention registration. Reservations must be made BEFORE SEPTEMBER 29, 2016 to qualify for group discount of $159 per night (plus tax) For reservations call (800) 468-3571.
Return this completed form, or register:
16FIADA, — Independent Dealer —Tallahassee, October 2016FL 32308 Mail: 1840 Fiddler Court,
Fax: (850) 385-3251
Online: www.FIADA.com
www.fiada.com Call/Text: (800) 237-0448
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October 2016 — Independent Dealer — 17
CONVENTION
SPONSORS
Thank you to our current list of convention sponsors. (Sponsors as of 10/5/16)
MARQUIS
GOLD
SILVER
BRONZE
18 — Independent Dealer — October 2016
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October 2016 — Independent Dealer — 19
L E G I S L AT I V E U P D AT E
Every Vote Counts! BY SANDRA AND ALLEN MORTHAM, FIADA LOBBYISTS
A
s we approach Election Day November 8th, there is no excuse for not voting. You can vote by mail, participate in Early Voting or you can go to the polls on Election Day. Not only are we in the midst of a Presidential election but we have important races all the way down to local city commission candidates.
We have a special opportunity on October 21st during the FIADA Annual Convention to have the incoming Speaker of the Florida House Rep. Richard Corcoran from Pasco County as our forum guest. This is a first for us, so let's show our support and involvement with a warm welcome and a great crowd at the session. Also joining Speaker Designate Corcoran are Rep. Mike Miller and Rep. Bob Cortes from the Orlando area. They will be discussing what will be on the horizon for next Session as well as issues relating to our industry. If you haven’t checked to see if you have a PAC endorsed candidate from your district, please look at the photos below and be sure to support them in the upcoming election. They have demonstrated their support for your industry over the years.
Sen. Doug Broxson SD 1
George Gainer SD 2
Sen. Lizbeth Benacquisto Rep. Kathleen Passidomo SD 27 SD 28
Rep. Ross Spano HD 59
Rep. Dana Young HD 60
Speaker Designate Cororan Photo by Mark Foley
Rep. Keith Perry SD 8
Rep. Dennis Baxley SD 12
Sen. Jack Latvala SD 20
Sen. Kelli Stargel SD 22
Sen. Joe Negron SD 25
Sen. Anitere Flores SD 37
Sen. Rene Garcia SD 38
Rep. Bob Cortes HD 30
Rep. Mike Miller HD 47
Erin Grall HD 54
Rep. James Grant HD 64
Rep. Chris Latvala HD 67
Rep. Kathleen Peters HD 69
Rep. Greg Steube HD 73
Rep. Heather Fitzenhagen HD 78
FIADA
POLITICAL ACTION COMMITTEE
Rep. Matt Caldwell HD 79
Rep. Gayle Harrell HD 83
Rep. Joseph Geller HD 100
20 — Independent Dealer — October 2016
Rep. Manny Diaz, Jr. HD 103
Rep. Barbara Watson HD 107
Rep. Holly Raschein HD 120 www.fiada.com
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October 2016 — Independent Dealer — 21
THANK YOU PAC CONTRIBUTORS: With your help we raised $24,803 GOLD DONORS Credit Cars
Gulfstream Motor Credit Company
Orange Auto Tag Group Inc.
Southeast Car Agency
Century Motors of S Florida Citrus Auto Trader eMotorcars of Florida
Florida Auto Dealer School Isla Motors Corp Mortham Governmental Consultants
Prime Autos Ray's Motor Sales, Inc.
W.C. Morrison Wheel City Florida
Car Collection of Tampa, Inc. Car Credit, Inc. Car Spot of Central Florida Car Today Inc. Car-Time Inc. Care Auto Sale Inc Carfax Carmax Auctions Cars & Credit of Jacksonville Cars of Jax Inc. Cars.com Casey's Auto Wholesale Cassat Auto Sales Celebrity Auto Group Centec Equipment Charleston Auto Auction Charlotte County RV Center LLC Chicago Motors Chuck Carlson Auto Sales, Inc. Cochran Motorsports Inc College Auto Sales of Florida LLC Computerized Vehicle Registration Credit Acceptance Corporation Credit Cars USA Dakota Auto Sales LLC DealerCenter DealerPlatform LLC Dealers Auto Auction Dewitt Motors Diamond II Auto Sales Dick Moye Auto Sales, Inc. Dimension Motors Direct Auto Exchange Discovery Auto Center LLC Donna Mills Auto Sales Inc Drive Time Sales & Finance Duncan's Auto Sales Inc Economy Motors Eddie Anderson Motors LLC Edison Bridge Auto Sales ETS Autos Evans Auto Sales FastBoats Marine Group Fett Motors FH Equipment Inc. Financial Insurance Brokers International First Auto Sales First Coast Auto Sales Firstsun Financial, Inc. Fisher& Phillips LLP Fleet Lease Disposal Fleet Street Remarketing Floorplan Xpress LLC Florida Auto Exchange Co., Inc. Florida Autosport Inc. Florida Fine Cars Freeland Moore dba Harbor Nissan G & G Sales and Service Galeria Auto Mart
Gas Buggies Gateway Auto Sales Gen-X Motors Group Genesis Capitall Finance LLC Genuine Motorcars, Inc. Gibson Truck World Global Wholesale Motor Co., Inc. GO Financial Godby Enterprises Golden Eagle Management Services LLC Good Rides, Inc. Gorilla Custom Motors Got Car Auto Brokers LLC GPS Tracking USA Inc Greenway Auto Sales Guaranteed Auto Finance Inc Hanksters Hot Rods of Daytona Harold D. Corey Auto Broker Hasco Medical Inc. Hawley Motor Sales Inc. Hermanos Auto Wholesalers HH Sales, LLC High Tech Locksmiths Highway Motors Hometown Auto Mart Incredible Car Prices Inc. Insurance Auto Auction Integrity Auto Sales International Automobiles LLC J & C Auto Sales J-Linn Motors J.D. Sanders, Inc. Jacks Auto Sales JD Byrider JD Byrider of Bradenton Jeff's Auto Sales & Service Jim Douglas Sales & Service Inc Just In Time Autos Sales Inc. Kathy's Kars Keveork Ursuloean Kicklighter Auto Sales KPM Auto Exports Lake Park Auto Brokers Langston Motors Larry's Auto Service Center Lash Auto Sales Lazydays Le Bo Auto Brokers Leedom Group Lovering Auto Sales M & M Auto Sales Macklin Automotive Company Maher Chevrolet Mancini Automotive, Inc. Marbais Enterprises, Inc. March Motors, Inc. Marianna Motor Co. Mark-One Financial Master Car International Inc
Maxx Motors McKinna Auto Sales Mcphail's Auto Sales Mears Motor Leasing Mears Transportation Group Melbourne Auto Mart, Inc. Microbilt Corporation Mike Hill Used Cars Mike Kashtan's Superior Auto Sales, Inc Millenia Motors Millennium Motors MJC Classic Cars Moffa, Gainor & Sutton, PA Motorcar Gallery, Inc. Murphy's Auto Sales, Inc. Myhree Motors LLC Naples Motorsports Nationwide Southeast LLC NextGear Capital Nice Car, Inc. Noegel's Auto Sales O'Donnell Enterprises, Inc. Ocean Auto Sales of Miami Off Lease Only OK Carz Orange County Motors, Inc. Orlando Car Deals Orlando Longwood Auto Auction Outdoor Recreation World Palm Tree Auto Sales Paradise Auto Brokers, Inc. Park Avenue Motors Park Motors Parkway Auto Sales Parkway Motors, Inc. Passport Leasing Corp. PassTime Patriot Automotive Consulting Paul Yoder Auto Sales Inc PCT Enterprises of Florida Penske Truck Leasing Co Performance Peterbilt Ponce Used Cars Port Motors Premier Motor Cars Premier Truck Center Prestige Auto Sales Pro-Power Auto Sales Company Quality Equipment & Parts Inc R & L Auto Wholesale Ray Whitts Used Cars Regional Wholesale Inc. RHRM Richard Bell Auto Sales Rick's Auto Marketing Center South Riker's Auto Financial Rofego Motors Inc Roney Auto Sales Rota, Inc dba Your Wheels Auto Sales
RouteOne LLC RTG Auto Sales LLC Sanford Auto Dealers Exchange, Inc. Schirras Auto Select Motors of Tampa Sheriffs Ranches Enterprises, Inc. Showcase Auto Brokers USA Sides Cars-Trucks Silverauto Skypatrol Smart Choice Autos Somerset Automotive Sales South Side Kia Southeast Fleet Auto Sales, Inc. Southeastern Auto Auction Southside Autos Splish Splash Auto Sales SS Auto Group Stathas Racing Inc Stepanek's Auto Sales & Service, Inc Steve's Auto Repair Inc. Steve's Auto Sales LLC Strategic Dealer Services Sun Financial Holding Tallahassee Auto Finance, LLC Tampa Hybrids Taylor Morgan, Inc. TextBox The Auto Source, Inc. The Auto Village The Garage Inc The Surety Group The Wholesale Club dba Target Auto Brkrs Thomas Bales Timeless Motors Title Technologies Tomlinson Motor Cars Toy Store Traditional Motorsports Truck Town & Toys Turnpike Motors Ultimate Image United Auto USA Corp Vac-Con, Inc. Van's Cars & Trucks Vegter Automotive Vehicle Clearing House VIP Auto Group Inc. Wallace Automotive Group Warren's Auto Sales Wheel City Auto Finance Centers Wheeler Cycles Williams & Stazzone Woodall Auto Wholesale, Inc. Xpress Finance, Inc. Your Auction of Tampa Bay Zen Motorsports
SILVER DONORS Argentum Financial LLC Automaxx Buyers Zone
BRONZE DONORS 7 Kings Auto A & J Mobility dba Mobility Express AbC Autos Accel Motorsports Accounting & Tax Resource Center Ace Motors Inc. ADESA Jacksonville ADESA Tampa Advanced Vehicle Modifications Inc. Alas Auto Brokers Inc. Alicia Medellin Alley's Auto Wholesale America Choice RV American Classic Car Sales American Recovery Association, Inc. Americas Auto Auction Pensacola Andrew Thomas Motorcar Angelo Auto Wholesale AP Motorsales LLC Appearance Plus Auto Sales dba C&C Cars Ashton Agency, Inc. Ashton Auto Group LLC Auction123.com Auto Add-Ons, Inc. Auto Data Direct Auto Dealers Wholesale Auto Express Enterprise, Inc Auto Sales of Winter Garden LLC Auto Sales Plaza Inc Auto Select Auto Superstore of Orlando LLC Auto Use Autoflex, LLC Autoline Preowned AutoMax Autorama Auto Sales, LLC Autoshopper.com B & A Auto Sales B & C AutoNet Bay Harbor Auto Sales LLC BC Motor Company Beach Boulevard Automotive Berlin Motors Big Boys Toys Florida LLC Big O's Northside Auto Sales Big Truck Rental LLC Black Book Blum's Auto Mart BMM Auto Sales Inc BNM Enterprises Bob Oliva Motors, Inc. Bonita Auto Center Inc. Bubba Hill Auto Plaza Inc. Bud Lawrence Used Cars Butler Auto Recycling Byrider PCB C & D Auto Exchange, Inc C & J Auto Collection Car Buying Service of Jacksonville
22 — Independent Dealer — October 2016
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October 2016 — Independent Dealer — 23
S O C I A L M E D I A S T R AT E G Y
Social Media Savvy Sales Pros Are More Likely to Beat Quota BY KATHI KRUSE
It used to be just fun and games, but social media has quickly become one of the best ways to build customer relationships and confidence. A recent study confirms that the social media phenomenon is growing in importance.
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f you’re still on the fence about incorporating social media into your sales process, it’s likely time to get off that fence and take action. A new study just released found that sales professionals who actively practice social selling were SIX TIMES more likely to beat their quotas than salespeople with rudimentary or no social media skills. Companies all over are grappling with the noise associated with social media and its applicability to specific business models. So, KiteDesk (a sales productivity platform provider) along with noted author and sales leader Jim Keenan, (A Sales Guy), went straight to the source and asked sales pros and their leadership if social is making an impact. This three-month study (a follow-up to their 2012 study) surveyed more than 500 sales professionals that sell B2C, channel and B2B (small, mid, and enterprise accounts). The goal was to see if there was a correlation between social media skills and quota attainment. The results were pretty surprising. The most socially savvy sales pros are far more likely to beat their sales quotas. “Social sales ninjas came out on top, no matter how we sliced the data,” 24 — Independent Dealer — October 2016
says KiteDesk CEO Sean Burke. 74% of the sales professionals who beat their quota by 10% or more described themselves as “highly effective” or “better-than-most” social media users.
of salespeople who exceeded their 2014 quota used social media over 10% of the time. In contrast, almost half of sales reps who reported low social media use missed their 2014 sales quota.
Meanwhile, sales reps with little or no social media skills are substantially more likely to miss their sales quotas. In fact, the percentage of underperformers that lack social media skills increased by 50% between 2012 and 2014. The achievement gap between those high and those with rudimentary social media skills has widened since 2012. We take this as an indication that social media will become more important to sales success over time. Further results of the study gave us even more solid evidence that dismissing social media as a “waste of time” can be hazardous to your health.
The top site used for social selling may surprise you. For the first time ever, Twitter has dethroned LinkedIn as the most important social selling channel for sales professionals. LinkedIn has been the network where more formal business communication takes place, but there is a shift towards buyers and sellers engaging around less formal communications via Twitter and Facebook.
There is a strong and growing relationship between deals closed and social media use. In 2014, a full 64% of sales professionals reported that social media use was directly responsible for at least one closed deal. (This is a dramatic 15% increase from the 2012 report.) Social selling is time well spent. High achieving sales pros aren’t just goofing around on social media. 70%
Social media is effective throughout the entire sales process. The majority of survey respondents say social media works well to build the pipeline, nurture leads, and achieve quota. 70% of sales pros who exceeded their sales quota used social media during at least 70% of their sales activities. There's room for improvement within the social and digital sales toolkit. The vast majority of respondents would like to have better tools and technologies for relationship intelligence, actionable sales intelligence, and improved CRM automation. www.fiada.com
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October 2016 — Independent Dealer — 25
SOCIAL MEDIA SAVVY continued from Page 24
Corporate support for social media tools is growing but remains low. Only about a third of sales professionals received social media training in 2014 (compared to 25% in 2012) and only a fifth have access to and use internal social media sites. Despite the lack of training in social selling strategies, the research clearly shows that social media use tends to dramatically increase sales potential. Salespeople and their leadership must adapt to changes. The most recent data shows that people have done their homework before they talk to a salesperson. This means the sales process must become more collaborative. Salespeople’s approach should shift from concentrated knowledge of the product to focused attention and better understanding of how the product impacts their customer. The first step in exceeding a customer’s expectations is to know those expectations. Salespeople and their leadership need to stay current on their customers’ needs, concerns and questions. Their approach must be to help the customer make a good decision, and not to sell their product. Salespeople’s online reputation, their “Personal Brand,” ignites social selling. Salespeople must manage how they are showing up online. Customers don’t want to talk to strangers; they want to Google that salesperson and figure out whether they’re someone they want to work with.
How to Be a Social Media Savvy Sales Pro Find the Right Channel. The single most productive strategy for becoming a better social seller is finding the right channel. Many sellers make the mistake of only choosing the popular markets like Facebook or Twitter. Think about who your customers are and choose the social media outlet where they are most prevalent. Produce and Engage. In order to build trust, authority, and a sufficient online following, you will need to post fresh and quality content often. Whether this content is funneled through a preexisting blog or videos from a YouTube account, it needs to be informative and useful to viewers. Become a regular supplier of great information and resources and potential customers will flock to you. Show Your Value. Although you still aren't quite ready to hard sell your product or service, you can begin to share with your readers the worth of what you are offering. Really push on social media just how your product benefits people. This is a good method to let potential buyers get a look at what you're selling without making a real commitment. Persuade Them to Take Action One last step would be ensuring you have a call-to-action in your posts and in other areas of your profile. This step presses users to make the jump from the information stage to the decision-making stage of buying from you. Connect your posts, ads, and other relevant icons to your website where you can conduct more traditional "hard sell" strategies. Excerpted from 4 Best Sales Practices for Using Social Media by Gary Galvin, www.salesforce.com
Social media savvy sales pros position themselves for success. The adage, “If we don’t take care of our customers, someone else will.” has never been truer. Social media savvy sales pros know that a competitor is a simple mouse-click away. Kathi Kruse is a leading Social Media Strategist in the US and Canada. Her contributions and influence bridge across all platforms: conferences, workshops, retreats, webinars, and training events. Contact her at https://www. krusecontrolinc.com.
26 — Independent Dealer — October 2016
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F T C R E G U L AT I O N
FTC Charges Dealer Group With Yo-Yo Financing Tactics FEDERAL TRADE COMMISSION
Nine Los Angeles-area auto dealerships have been accused of deceptive and unfair sales and financing practices.
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he Federal Trade Commission has charged nine Los Angelesarea auto dealerships and their owners with using a wide range of deceptive and unfair sales and financing practices. The FTC’s action filed in the U.S. District Court for the Central District of California seeks to end these practices and return money to consumers. This is the FTC’s first action against an auto dealer for “yo-yo” financing tactics: using deception or other unlawful pressure tactics to coerce consumers who have signed contracts and driven off the dealership lots into accepting a different deal. The FTC also alleges that the defendants packed extra, unauthorized charges for “add-ons,” or aftermarket products and services, into car deals financed by consumers. “The car-buying process is a two-way street,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The FTC expects dealers to honor their contractual obligations, and will pursue those who use yo-yo financing tactics and pack unwanted costly add-ons onto consumers’ contracts.” According to the FTC’s complaint, the defendants entice consumers, particularly financially distressed and non-English speaking consumers, into their dealerships with print, www.fiada.com
internet, radio and television ads that make an array of misleading claims, including that vehicles are generally available for the advertised terms and that consumers can buy vehicles for low prices, finance with low monthly payments, or make low down payments. Other allegedly misleading claims include that consumers can finance the purchase of vehicles – when in fact they are lease offers – and that the defendants will pay off consumers’ trade-in vehicles, despite the fact that consumers ultimately are responsible for paying off any amount owed on the trade-in. The FTC also alleges that the defendants use phony online reviews to tout their dealerships and discredit negative reviews that highlighted their unlawful practices. They and their employees or agents allegedly post positive, five-star online reviews that purport to be from objective or independent reviewers without disclosing their relationship to the dealerships. In addition to the deceptive advertising and marketing allegations, the FTC has charged that several financing tactics of the defendants are deceptive and unfair. As part of the sales and financing process, the defendants offer add-ons such as extended warranties, guaranteed auto protection (GAP), and maintenance or service plans. The FTC
alleges the defendants have violated the FTC Act by charging some consumers for add-ons without their consent or falsely claiming the products were required or were free. And according to the complaint, in some instances after the consumers have signed contracts, the defendants falsely represent that consumers are required to sign a new contract with different terms. In other instances, the defendants tell consumers who have completed finance contracts that the contracts are cancelled and falsely represent that the defendants are permitted to keep consumers’ down payments or trade-ins. When consumers request compliance with the terms of the contract or refuse the defendants’ demands, the defendants, in some instances, have falsely represented that consumers will be liable for legal action, including lawsuits, repossession, or criminal arrest for a stolen vehicle. The FTC’s complaint also charges the defendants with violating the Truth In Lending Act and Regulation Z, and the Consumer Leasing Act and Regulation M, for failing to clearly disclose required credit information and lease information in their advertising. The defendants are Universal City Nissan, Inc., Sage Downtown, Inc., Glendale Nissan/Infiniti, Inc., Valencia Holding Co., LLC, West Covina Auto Group, LLC, West Covina Nissan, LLC, Covina MJL, LLC, Sage North Hollywood, LLC, and Sage Vermont, LLC. Also charged are Joseph Schrage, a/k/a Joseph Sage; Leonard Schrage, a/k/a Leonard Sage; and Michael Schrage, a/k/a Michael Sage; Sage Holding Company Inc.; and Sage Management Company Inc.. The Commission vote authorizing the filing of the complaint against the Sage Auto Group defendants was 2-1, with Commissioner Ohlhausen dissenting. October 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. COMPLIANCE TIP Note below the item about the FTC hammering a dealer on advertising violations. Does your dealership have an advertising compliance manual that sets forth federal and state advertising laws and regulations, along with everything that appears on the FTC’s website about ad requirements and any other helpful ad compliance material you can locate? Does the manual set forth a process for a legal review of each ad your dealership uses to make sure that the FTC won't be taking a big bite out of your wallet? Given the size of some of the penalties levied against dealers in recent months, putting together such a resource is likely the single most cost-efficient compliance step you can take. FEDERAL DEVELOPMENTS DOJ Moves to Protect Servicemembers. On August 8, the DOJ announced a proposed consent order with HSBC Finance Corporation, successor to HSBC Auto Finance, Inc., resolving allegations that it failed to obtain required court orders before repossessing vehicles owned by servicemembers, in violation of the Servicemembers Civil Relief Act. The SCRA requires a court to review and approve any repossession if the servicemember financed a vehicle purchase and made a payment before entering military service. FTC Slams Yet Another Dealer for Ad Violations. On August 18, the FTC announced that three Texas dealerships agreed to pay $85,000 to settle charges that they violated an FTC administrative order barring them from deceptively advertising the cost of buying or leasing a car. The FTC charged that the dealerships concealed sale and lease terms that added significant costs or limited who could qualify for vehicles at 28 — Independent Dealer — October 2016
advertised prices, in violation of a 2014 FTC order. The FTC cited a television ad offering two cars for "under $200 per month," but, in fine print that appeared for two seconds, disclosed that the offer applied only to leases, not sales, and required a $1,999 payment at lease signing. Another ad claimed a new car could be bought for $179 per month, but, in print too small to read without magnification, disclosed that $1,999 would be due up front, along with tax, title, and license fees, and that $8,271 would be due at the end of a 38-month financing term. The FTC also alleged that the dealerships advertised credit and lease terms without clearly and conspicuously disclosing information required by federal law and failed to keep records required by the 2014 order. The proposed order also prohibits the dealerships from misrepresenting in ads the cost of purchase with financing, the cost of leasing, or any other material fact about price, sale, financing, or leasing, and prohibits misrepresentations that anyone, including those with poor credit, is likely to receive financing or leasing, including particular finance or lease terms. Finally, it bars the dealers from violating the Truth in Lending Act and the Consumer Leasing Act, which require clear and conspicuous disclosure of credit and lease terms. Do Disclosures Work? On August 22, the FTC released the agenda for its September 15 public workshop in Washington, D.C., called “Putting Disclosures to the Test,” which will examine the testing and evaluation of advertising disclosures, privacy-related disclosures (such as privacy policies), and disclosures in specific industries designed to prevent deceptive claims. The workshop, aimed at encouraging and improving the evaluation and testing
of disclosures by industry, academics, and the FTC, will explore how to test the effectiveness of disclosures to ensure consumers notice them, understand them, and can use them in their decision-making. DOD Explains Itself. On August 26, the DOD published in the Federal Register a rule interpreting its July 2015 amendments to its regulation implementing the Military Lending Act. The MLA limits the military annual percentage rate a creditor may charge to a maximum of 36 percent, requires certain disclosures, and provides other protections for ‘‘consumer credit’’ extended to servicemembers and their dependents. Among other changes, the July 2015 amendments extended the protections of the MLA to a broader range of closed-end and open-end credit products. This interpretive rule provides guidance, in question and answer form, on questions DOD has received regarding compliance with the amendments. DoD says that the interpretive rule does not substantively change the regulation implementing the MLA, but merely states its prior interpretations of an existing regulation. Note that the MLA’s exception for vehicle finance appears to have been muddied, in that the guidance states that in order to take advantage of the exception for finance transactions secured by personal property being purchased, the financing must be solely for such personal property. Did the CFPB’s Small Dollar Proposal Leave a Back Door to Regulate Auto Dealers? The CFPB’s proposed small dollar rule (currently out for comment) imposes requirements on creditors making longer-term loans with a “total cost of credit” in excess of 36%. Given www.fiada.com
that the requirements make these loans unappealing and unprofitable, it seems likely that creditors will simply stop offering them. The CFPB is engaged in an interesting dance – it is trying to say that loans over 36% that don’t meet the requirements are unfair and abusive, but that the 36% trigger isn’t an impermissible usury limitation. CASE OF THE MONTH Spot Delivery Goes Sideways. Brianna Jefferson bought a used car from United Car Company, Inc. She signed a retail installment sale contract and a spot delivery agreement. The spot delivery agreement provided that United could unilaterally cancel the RISC if it was unable to assign the contract to a third party or could require Jefferson to sign a second RISC with different terms. United unilaterally cancelled Jefferson’s contract, repossessed the car, and demanded that she pay a repossession fee and forfeit her down payment. After Jefferson repaired another car so that she would have reliable transportation, United advised her that it had obtained financing. Jefferson sued United for violating the Truth in Lending Act and Regulation
Z. She claimed that United used illusory disclosures in the RISC because, at the time of consummation of the transaction, the disclosures were subject to change or cancellation at United’s sole discretion. Jefferson moved for a default judgment, and the U.S. District Court for the Eastern District of Michigan granted the motion. The court found that cases in the district support Jefferson’s allegations that a dealer’s use of a spot delivery agreement that allows the dealer to cancel a retail installment sale contract or substitute a second contract with different terms renders the RISC illusory, in violation of TILA. The court granted Jefferson $1,571 for her down payment, $2,000 in statutory damages, and $4,037 in attorneys’ fees and rescinded the RISC in light of United’s repudiation of the contract by demanding and repossessing Jefferson’s car. Jefferson v. United Car Company, Inc., 2016 U.S. Dist. LEXIS 92657 (E.D. Mich. July 18, 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.
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October 2016 — Independent Dealer — 29
INDUSTRY NEWS Update on the Extension of Legacy EFS/ETR System During May 2016, Department leadership met with two service providers who were unable to meet the June 30, 2016 deadline to migrate their customers onto the modernized Electronic Temporary Registration (ETR) system and Electronic Filing System (EFS), referred to as ORION EFS/ ETR. After obtaining commitments from both service providers to meet reasonable milestones, the Department agreed to continue to bear the expense to keep the old EFS and ETR systems operating until September 30, 2016. Currently, five of the service providers have substantially completed migration of their dealers to ORION EFS/ETR. However, one of the service providers that met with the Department in May officially told the Department they could not meet the September 30, 2016 deadline and made another extension request. After conferring with the affected stakeholders including representatives of the Florida Tax Collector’s Association and the Automobile Dealers Industry Advisory Board, and after the service provider agreed to cover the operating costs starting October 1st, the Department reluctantly agreed to grant the service provider’s request to avoid disruption to the operations of the tax collector offices and the impacted dealers. The Department will maintain the old EFS/ETR system until such time as the service provider completes migration of its customers, but not to exceed November 30, 2016. Any other service provider can avail themselves of this extension. However, they too must agree to reimburse the Department for its costs to continue to maintain the old system. As dealer compliance examiners are conducting records inspections, please communicate with them if you need any assistance. You are urged to migrate your dealership onto ORION EFS/ETR as soon as possible to ensure you do not experience any interruption in service. Any dealer who is not on ORION EFS/ETR when the old system is retired, must surrender its metal plates and take all title and registration paperwork to a tax collector office or license plate agency. In the event you are not converted to the new system by your service provider’s deadline, the use of preprinted temporary tags will not be allowed. The Department appreciates all the dealers and service providers who have worked diligently to migrate onto ORION EFS/ETR and stand ready to assist dealers in any way possible to ensure a smooth transition. If you have any questions, please contact Julie Larsen or Travis Pelham at (850) 617-3001. 30 — Independent Dealer — September 2016
State Regulators Impose 14.5% Workers’ Comp Increase After warning Florida’s business community that this could happen, it’s now official – state regulators voted at the end of September to increase workers’ compensation rates by 14.5 percent, effective December 1, 2016. The Florida Chamber has a long history of helping to keep Florida’s workers’ comp system working. Those efforts continue today with the Florida Chamber’s Workers’ Comp Task Force. The Task Force has conducted seven meetings, held regional meetings across Florida, and engaged the local chamber federation to both assess the impact increased rates will have on local businesses and join efforts toward solutions. Get more information on the increase on the Florida Chamber of Commerce's website at www.flchamber.com.
Southeast Raises Most for NIADA PAC The Southeast region of the National Independent Automobile Dealers Association won the NIADA PAC Cup fundraising competition for the third consecutive year. The region, which includes the Carolinas, Georgia, Florida, Alabama, Tennessee and Kentucky, raised $29,000 in contributions to again claim the prize. The PAC Cup competition, in its third year, pits the association's four regions in a competition to raise the most money for the NIADA-PAC fund between the NIADA convention in June and the National Leadership Conference. Between them, the four regions contributed $79,850 to the NIADA-PAC fund, a record for the competition, surpassing last year's total by more than $23,000. NIADA-PAC was created to enhance the association's mission to promote and protect the interests of the used car industry and NIADA's dealer members nationwide. NIADAPAC supports Congressional members and candidates who seek to protect this vital industry and keep the economic engine of small business running strong. During the 2016 NLC, the NIADA-PAC made contributions to Sen. Joe Donnelly (D-Ind.) and Reps. Roger Williams (R-Texas), Henry Cuellar (D-Texas), Jeff Denham (R-Calif.), Kevin Yoder (R-Kan.), Bill Posey (R-Fla.), Tom Reed (R-N.Y.) and Steve Pearce (R-N.M.). www.fiada.com
2015-2016 FIADA EXECUTIVE COMMITTEE:
JIM WINTERICK, SR. President Gulfstream Motor Credit Miami, FL (305) 253-2335
LISA COMPAGNO Senior Vice President Palm Tree Auto Sales Stuart, FL (772) 288-2099
DINO MERCURIO Chairman of the Board Independent Credit, Inc. West Palm Beach, FL (561) 686-8673
GOVINDA ROMERO Secretary Autoflex LLC Gainesville, FL (407) 468-9974
PHIL RISLEY BRANDI NOEGEL Regional Vice President Regional Vice President Noegel’s Auto Sales Cars & Credit of Jacksonville Jacksonville, FL Starke, FL (904) 616-4074 (904) 964-6461
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BRAD JOEL CHRISTOPHER LEEDOM STEVE MARBAIS, CMD Regional Vice President Regional Vice President Regional Vice President Splish Splash Auto Sales Marbais Enterprises, Inc. AutoMaxx Princeton, FL 33032 Ocoee, FL Sarasota, FL (305) 258-1191 (407) 877-7422 (941) 309-1111
SCOTT LANIER, CMD Treasurer Credit Cars Orlando, FL 32808 (407) 295-6211
www.fiada.com
October 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
32 — Independent Dealer — October 2016
Manheim Orlando 11801 W Colonial Dr Ocoee, FL 34761 Sale: Tues 9 AM Highline Exotic Sale Kicks off every 4th Tues 11 AM with Mercedes & BMW Chrysler Closed Factory Sale bi-weekly on Mon 12:30 PM GM Closed Sales bi-weekly on Mon 1 PM Nissan Infiniti Closed Sale 1st Wed monthly 9 AM Manheim Palm Beach 600 Sansbury Way West Palm Beach, FL 33411 561.790.1200 Sale: Thursday 9 AM Exotic Highline Sale every 4th Wed 9:30 AM Manheim St Pete 14950 Roosevelt Blvd Clearwater, FL 33762 727.531.7717 Sale: Thurs Weekly 2:30 PM inops Regular Sale 3 PM Manheim Tampa 401 S 50th St Tampa, FL 33619 813.247.1666 Sale: Thursday 9 AM Total Resource Auction Mon 9:30 AM at Cone Road location Ford Factory Sale every other Wed 10 AM Manheim Caribbean 1050 Carretera 865 KM 4.7 Bo. Candelaria Toa Baja, PR 00949 787.261.7300 Sale: Thurs 12 PM Salvage Sale Thurs 11 AM
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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
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