JUNE 2017
www.FIADA.com
Information and Insight for Florida Used Car Dealers
Don't miss out on the year's best party, educational sessions and trade show! Register now for the 2017 FIADA Annual Convention Page 19
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Dealer Independent
MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308 TELEPHONE (850) 385-2712 (800) 237-0448 FAX (850) 385-3251 WEBSITE www.FIADA.com EXECUTIVE COMMITTEE Lisa Compagno President Scott Lanier, CMD Senior Vice President Jim Winterick, Sr. Chairman of the Board 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 Events Manager Amelia Tillman Membership Director Christy Taylor Editorial/Advertising
POSTMASTER:
Send address changes to
FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Call/Text: (800) 237-0448 Fax (850) 385-3251 • www.FIADA.com The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308 The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.
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Contents June 2017
For members of the Florida Independent Automobile Dealers Association
C O L U M N S & F E AT U R E S 4
President’s Message Lisa Compagno
6
Executive Director’s Message Lisette Mariner, CAE
8
Membership News
10
Back to Basics Getting title and tag work completed quickly and correctly is a big deal. Jennifer Finlay shares some expert advice on how to get it done.
12
Legislative Update The 2017 Legislative Session is in the books. Lobbyists Sandra and Allen Mortham break down the highs and lows.
16
Keys to Insurance FIADA Insurance Preferred Partner Eric Link examines two insurance issues facing independent auto dealers.
18
Let the Good Times Roll! FIADA is making big plans for the Annual Convention. Registration is now open for the state's premier event.
22
The Art of the Referral Dealer Profit Pro Kenny Atcheson outlines what you need to make your referral program work for you.
28
Tips on Avoding the Top Three Dealer Inspection Violations Chief of the Bureau of Dealer Services for the Florida Department of Highway Safety and Motor Vehicles Palmer Brand offers solutions on avoiding common mistakes that can affect your dealer inspection.
30
Industry News
June 2017 — Independent Dealer — 3
FROM THE PRESIDENT
What Do You Think an Association Is? BY LISA COMPAGNO, FIADA PRESIDENT
G
reetings! If you have received this issue of the Independent Dealer Magazine, it means that you are a licensed independent dealer in the State of Florida. It doesn’t mean, however, that you are a member of the Florida Independent Automobile Dealers Association (“FIADA”). If you think you may be a member, please visit our website to check or give us a call at 1-800-237-0448. You can check your membership on our website at www.fiada.com. Go to the “Resources” tab near the top of the screen. Hover your mouse over the Resources tab and a menu will drop down. Select “Find a FIADA Dealer” from the drop-down menu and then search for your dealership. If your dealership doesn’t come back in the search then you probably are not a member. No worries though, signing up for membership is easy! But, you may be wondering why you should sign up for membership. The FIADA is a not-for-profit automobile industry association. Recently, we did an auction drive at Manheim Ft. Lauderdale in an effort to sign up new members and to introduce the FIADA to dealers who were not familiar with us. It occurred to me during this drive that a lot of people simply didn’t know what an “association” is, let alone the Florida Independent Automobile Dealers Association. Well, to start with an “association” is a group that supports and protects the rights of a particular industry and the people who work in that industry. All sorts of industries have associations: Realtors, Lawyers, Doctors, Builders, Tow Companies, Insurance Agents and even New Car Dealers (their associations include the National Automobile Dealers Association and the Florida Automobile Dealers Association). The FIADA has been supporting and protecting the interests of independent used car dealers since 1940. We are the oldest independent automobile dealer association in the United States! So now you know what an association is and the purpose of an association. That begs the questions, why should I bother being a member of an association and what’s in it for me? I’ll start with the second question – what’s in it for you. As a member, you have
4 — Independent Dealer — June 2017
access to over $8000 in industry coupons and discounts. There are $1,000 in auction buy/sell fees and over $7,000 in discounts on advertising, software, office supplies and other services. These coupons and discounts renew every year that you are a member. That means each year you will easily save up to $1,000 at over 12 auctions in Florida, Georgia and Charleston. There are a whole host of other membership benefits. Please visit the “Why Join” section of our website to get more information on these benefits. As for the first question – why should I bother being a member of an association – the answer is that because there is strength in numbers. In Florida alone 3,052 bills were filed during the legislative session this year. At least 25 of these bills had a potential impact on our industry. Fortunately for you, the FIADA monitored each of these bills and had a presence in Tallahassee to fight against any potentially adverse effects of these bills, if necessary. Right now, however, the FIADA, only represents about 20 percent of the licensed independent dealers in Florida through its approximately 800 paid members. That is not good enough to get some legislators or bureaucrats to listen to our needs and wants. That is why we need you to join our collective voice. We should be able to go to Tallahassee and Washington DC as the voice of 2,000 independent automobile dealers who represent 10,000 individuals and families throughout the State of Florida. Again, there are a whole host of benefits to being a member of the FIADA and I would be remiss if I did not mention the camaraderie that comes along with membership. I have met and fostered friendships with some amazing folks throughout the years as an FIADA member. I invite you to come do the same. Go back to the homepage at www.fiada.com. Then click on the “Join Now” tab. The following page shows the different membership types available and the cost of membership for each dealer type. Be sure to check the bullet point for the correct member type before proceeding to the next page. Follow the instructions on the next few pages and you should be good to go. If you have any questions or need assistance please feel free to give us a call (or text) again, the number is 1-800-237-0448. Lisa Compagno FIADA President www.fiada.com
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June 2017 — Independent Dealer — 5
EXECUTIVE DIREC TOR’S MESSAGE
Time to Get Prepared BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR
W
Prepare your staff by arming them with FIADA resources, ith June 1 marking the beginning of Hurricane too! FIADA offers abundant educational and networking season, are you prepared? Even though forecasts opportunities. We have archived webinars, online courses, and are mixed with how active a season we will have, multiple networking opportunities to learn from successful it only takes one to cause damage. Last year, Tallahassee dealers and ask the experts. Our next networking opportunity felt the wrath of Hurricane Hermine, the first hurricane to is the Town Hall Meeting coming up on July 28 at the Grand make landfall in Florida since Hurricane Wilma in 2005. Hyatt Tampa Bay. Then, of course, you can’t miss the Annual Even though it was only a category 1 hurricane, it caused an Convention, October 5-7 at the Omni Hotel & Resort estimated $550 million in damages. We at the FIADA were impacted by it as well. There was little to no damage to the office, but the city was without power for a week. There were Include FIADA in your plan to succeed. Join a downed power lines all over town. committee and guide the direction. Provide feedback
about what's keeping you up at night.
Even if the storms we get do not have dangerously high winds, the rain alone from these storms can be damaging. You still need to make sure that your home and your business are ready for what may come. Even when the forecast is mild, things can change quickly.
Just as you would prepare the physical structure of your business for a storm, you should prepare the day-to-day operations of your business for success. The first step to any plan is to gather information. Create a directory full of the resources you need. Find the phone numbers, websites, contact people who would be most helpful in different circumstances. For example, FIADA should be one of your primary resources for technical assistance. As a member, you have the benefit of speaking to our General Counsel to answer questions such as, “I received a bankruptcy letter, what do I next?” or, “A customer bought a car, and now wants to return it, what am I obligated to do?” Whenever a technical or legal question comes up, call FIADA at 800-237-0448. 6 — Independent Dealer — June 2017
ChampionsGate in Orlando. We always have great speakers and dealers from around the state that know the pitfalls of running a dealership in today’s market. Now that you’ve gathered your materials, the next step is to develop your plan. Include FIADA in you plan to succeed. Join a committee and guide the direction of the association. Provide feedback to me about what’s keeping you up at night. If you’re not a member of the association, joining is easy. Visit www. FIADA.com and click on membership. Finally, practice your plan! Don’t wait for a storm to strike – make sure that as a member of the association you are utilizing your benefits every day. Visit www.FIADA.com and see what we have to offer.
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June 2017 — Independent Dealer — 7
MEMBERSHIP NEWS
New Members
MAY 2017
ACV AUCTIONS INC Buffalo, NY Mike Waterman Sponsor: Lisette Mariner
HWY MOTORS 40 LLC Ocala, FL Daniel Alvarado Sponsor: John Cousins/Dealers Auto Auction
LOUIS BERGERON Seffner, FL Sponsor: Terry Myers
INNOVATIVE AUTO HR LLC Sarasota, FL Sandy Zannino Sponsor: FIADA
BEST AUTOMOTIVE LLC Longwood, FL Charles Thompson Sponsor: FIADA BLOSSOM CAR CENTER Tampa, FL Esperanza Volquez Sponsor: Terry Myers BRAUN AUTOWERKES INC Lake Park, FL Charles Brown Sponsor: Terry Myers AUSTREBERTO CALDERON Delray Beach, FL Sponsor: Terry Myers CARVANA, LLC Tempe, AZ Jonathan Allred Sponsor: FIADA CERTIFIED RELIABLE SALES St Petersburg, FL James Kelly Sponsor: Terry Myers HGREG.COM Doral, FL David Rich Sponsor: DMV
Rejoining Members ANDERSON MOTORS
Fern Park, FL Rick Anderson Sponsor: Scott Lanier
GENERAL BAITOA AUTO SALES
Tampa, FL Carlos Nunez Sponsor: Amelia Tillman
INTERSTATE TITLE SOLUTIONS, INC. Delray Beach, FL Angela Richards Sponsor: Amelia Tillman JAY'S AUTO BODY LLC Ft Lauderdale, FL Mellonie Baker Sponsor: Terry Myers JETPORT AUTO Orlando, FL Eddie Tosado Sponsor: FIADA CARLOS MARTINEZ Hialeah Gardens, FL Sponsor: Terry Myers NORSA MOTORS Windermere, FL Norman Keller Sponsor: Terry Myers PALMAS BAY AUTO SALES Daytona Beach, FL Carlos Arce Sponsor: Terry Myers THE JOHNSON REVIEW LLC Orlando, FL Erik Johnson Sponsor: Amelia Tillman
MAY 2017 ORANGE COUNTY MOTORS, INC.
Orlando, FL Thomas Phillips Sponsor: FIADA
SAFE FINANCIAL GROUP LLC
Doral, FL Maria Arriojas Sponsor: EQUIFAX
LAKE PARK AUTO BROKERS
THE MIAMI AUTO STORE Miami, FL Jesus Trimino Sponsor: Flexplus
Renewing Members
TRIPLE A AUTO GROUP Orlando, FL Ashitkumar Amin Sponsor: Kevin Scott & Jeff McClintock
MAY 2017
30+ Year Members Mike Kashtan's Superior A/S 20+ Year Members Florida Auto Exchange Co. Lash Auto Sales J-Linn Motors Fleet Lease Disposal Frontier Motors, Inc. Buyer's Zone, Inc. Stepanek's A/S & Service, Inc. 10+ Year Members Maher Chevrolet Ted's Auto Sales, Inc. Auto Select Spanos Imports Advanced Vehicle Modifications, Inc Kelly Kronenberg, Attorneys at Law Motorgroup The Auto Source, Inc. Ocean Auto Sales of Miami, Inc. Under 10 Year Members Checkered Flag Auto Sales Auto Dealers Wholesale Scotti's Auto Repair & Sales Tomlinson Motor Company Highway Motors Inc Genuine Motorcars, Inc. First Auto Sales Your Auction of Tampa Bay Godby Enterprises DBA Universal Auto Sales of Plant City Aubrey's Auto Sales CarBucks Absolute Surety, LLC ABCOA/Deal Pack Software Hollands Auto Parts Sanfer Sports Cars, Inc. BNM Enterprises, LLC Ashton Agency, Inc. Auto Dealer Solutions LLC Centec Equipment Sales G & G Sales and Service Care Auto Sale, Inc. Hanksters Hot Rods of Daytona Elxsi dba Cues ProGuard Warranty Inc Patriot Automotive Consulting Fortegra Max Torque Auto Group
Pinellas Park, FL Dunedin, FL Lakeland, FL Clearwater, FL Delray Beach, FL Pensacola, FL West Palm Beach, FL Vero Beach, FL Saint Petersburg, FL Saint Petersburg, FL Saint Augustine, FL Daytona Beach, FL Ocala, FL Tampa, FL Delray Beach, FL Orlando, FL Miami, FL Lakeland, FL Tallahassee, FL Sarasota, FL Gainesville, FL Weeki Wachee, FL Saint Petersburg, FL Bradenton, FL St Petersburg, FL Plant City, FL Delray Beach, FL Greenville, SC Orlando, FL Jacksonville, FL Hollister, FL Miami, FL Saint Augustine, FL Winter Park, FL Palmetto, FL Sarasota, FL Hawthorne, FL North Miami, FL South Daytona, FL Orlando, FL Pittston, PA Concord, NC Jacksonville, FL Mascotte, FL
Lake Park, FL Howard Bauer Sponsor: Amelia Tillman
8 — Independent Dealer — June 2017
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June 2017 — Independent Dealer — 9
BACK TO BASICS
Don't Get Rejected! BY JENNIFER FINLAY
It's important for your business, and reputation to get title work completed on time and without errors. Refresh yourself on the basics with this expert-level review.
A
s a former dealer myself, I know first hand how frustrating, as well as time consuming, it is to have title work rejected. And now that we are moving into full electronic filing, paperwork has to be perfect. This can be a struggle for some dealers and title clerks. Errors are not as easy to fix as before. Getting work rejected can be harmful to the dealership, in more ways than one. A good agency will have a 3 to 5 day turnaround time for processing. When work gets rejected and sent back to the dealership for corrections, whether EFS or drop off, it adds to the overall amount of time it will take to be finalized. The state allows 30 days to complete the customer’s title work, if you go over this timeframe you will be charged a late fee as well as send
up a red flag that your dealership is not complying with the state law. In addition to that, for reasons of customer service, you want to have the work done in that 30 days. Customers get unhappy when it takes longer, and they don’t understand. And that, is your reputation.
to educate everyone and hopefully decrease the amount of title work that is rejected.
Most common reasons title work gets rejected
Information on all forms does not match. For example weight on title or MCO & what is listed on the 82040. Sales tax amount on 82994 and what is listed on the 82040. Missing printed names. Printed name of person signing for the dealership must be on title/MCO, the 82994 and 82995. Can not be just a signature next to the dealership name.
Education is definitely the key to insuring rejections are kept to a minimum. Title and Registration classes are offered all over the state and the fees are usual minimal. These classes are good for beginners as well as a refresher for seasoned clerks.
Missing dealer addresses for previous dealer reassignments.
I have composed a list of the most common rejection reasons we see in our agency in hopes of helping
Not writing “by POA” when signing with a Power of Attorney. This must be done. Missing dealer/agent signature in section 7 of the 82040.
Missing or incorrect date in part C of the 82995. (this is not the sale date, rater the date the title work is being completed by the title clerk)
Missing form 83146 when replacing a plate. (only applicable to walk i and drop off work. Not EFS). Missing dealers Sales Tax # on the 82994. Missing lease company Sales Tax # in section 9 of the 82040 or in the system. No physical address listed only a PO Box. Must have a Florida Physical address in section 1 of the 82040. Missing date of birth / Florida drivers license # / address on 82053 or 82040
10 — Independent Dealer — June 2017
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No GVW listed on the 82040 when truck or cargo van is over 5000 lbs Plate information in section 2 of the 82040. If you are transferring a plate you must list the plate #. If this is left blank a new plate will be issued. Lien not being released on title. Use of white out, erasure tape or strike overs on any of the forms. Even trade or trade down information not given in section 9 of the 82040 when no sales tax is collected.
Missing van use in section 2 of the 82040. (if other is chosen a GVW will need to be listed on anything over 5000 lbs) Failing to complete the VIN Verification in section 8 of the 82040 for out of state titles. Must be complete with date VIN number, dealer name, printed name and signature. Also the dealer license #.
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Incorrect previous owner for electronic titles (82994) And / Or left blank but on the 82040 and marked in the system as OR. (fine if in the system as AND)
Need two documents 82993 and affidavit on dealer letterhead from seller to correct mileage alterations or discrepancy. Jennifer Finlay is the Statewide Sales Manager Florida Auto Tag Agencies. She can be reached at jennifer@flatags. com or 407-583-9199. PAID ADVERTISING
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June 2017 — Independent Dealer — 11
L E G I S L AT I V E U P D AT E
Differing Agendas Define the 2017 Session BY SANDRA AND ALLEN MORTHAM, FIADA LOBBYISTS
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his was a year of considerable challenge. Though the Governor, the Senate and the House were all led by the same party, there were few actual parties going on. Both presiding officers had an agenda of issues that clearly did not include the Governor’s goals and priorities. Consequently, at the time of this writing, there is considerable consternation as to whether the Governor may veto the entire budget. Just over $83 billion. Gov. Scott asked for Enterprise Florida funding as well as Visit Florida appropriations. He got basically nothing to move the state forward in these areas.
The good news is that 3,052 bills were filed this year. Of the bills filed, 2755 were NEVER HEARD. The total number of bills passed was 249 with 48 being killed in committee. Less can be better! Check out the graphic below, courtesy of the Florida Chamber of Commerce, for a bird's eye view of the 2017 legislative session highs and lows. Now that the session is over, let's take the summer to get ready for the future.
Non-members, we could use your help in growing our membership to have a loud, proud, unified voice of independent car dealers talking to the folks in Tallahassee. As always, don't forget to support the FIADA PAC. You'll find a form on page 14 to make a contribution or you can go online to www.FIADA.com. Every contribution, large and small, helps make a difference. A strong PAC insures a strong presence and position with the legislators who support us.
Senate President Negron was focused on Higher Education improvements as well as $800 million for purchase of land south of Lake Okeechobee for construction of a reservoir to avoid the polluting effects of water discharge from the lake. He prevailed on both issues. House Speaker Corcoran utilized the Session to advocate for less government by cutting the funding for both of the Governor’s priorities as well as advancing the cause for school choice. He also stopped the expansion of gambling in the state. 12 — Independent Dealer — June 2017
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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
q Visa
$100 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
14 — Independent Dealer — June 2017
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June 2017 — Independent Dealer — 15
KEYS TO INSURANCE
Two Insurance Issues Facing Independent Auto Dealers BY ERIC LINK, ALL AMERICAN BONDS AND INSURANCE
Though you might think you are saving money by "bending the rules" to get around these insurance requirements in reality, it can end up costing you big time.
A
lthough there are many things on your plate as an owner of an auto dealership, it is always a good idea to keep an eye on possible changes coming and pitfalls or problems that could be in your path. While this is not a full list by any means, I would like to bring two issues to your attention. Dealer Tag to Employee Ratio for Garage Liability Insurance In the past, most insurance companies that would consider writing garage liability insurance for independent dealers were lenient on the underwriting requirements for the dealer tag to employee ratio. This is no longer the case. As many of you may remember only a couple years ago the DMV started requiring dealers to have the number of dealer tags on the certificate from their insurance agent to receive or renew the tags. As you should also know, a representative from the dealership, who is listed on the insurance policy, must be with potential buyers on test drives, but anyone in the industry also knows that this is largely ignored as many dealerships have two or three staff members and five or more tags. Of 16 — Independent Dealer — June 2017
course there are always valid reasons to have an extra tag, but a good percentage of the time they are used to send customers out on the test drive by themselves. Even worse they are used to rent out to non-licensed individuals without a dealer license. Currently, insurance companies have started requiring equal numbers of tags to employees, or sometimes are considering allowing only one extra tag. As a predominant agency for independent dealer in multiple states, I can tell you there will be many unhappy dealership owners when it comes renewal time. To solve this issue consider your current use of tags. Maybe you have a tag that is a “just in case” tag that can be turned in. Or, that person who helps you move vehicles from the auction “occasionally” may need to be added to your insurance policy, which should happen anyway. IRS Penalty, fines, or back taxes for not declaring a furnished auto Many independent dealers have a “furnished tag” for themselves and maybe even for their spouse or other family member. As far as the IRS is concerned this may be a taxable situation. Let's look at an example.
Bob from Bob’s Used Cars has a small dealership in Key West. He is the only employee and frequently “test drives” one of the inventory vehicles to go to and from the office. Bob, is a workaholic and is always “test driving” his inventory. So much so that he does not own a personal automobile, have a personal auto policy, and definitely does not pay for gas or maintenance personally. Along comes a routine IRS audit. Now Bob has a problem. The use of the inventory vehicles, insurance, and funds for gas and maintenance seem to look a lot like a source of income for Bob. Since Bob did not declare this on his taxes, tell his accountant about it, or have a competent accountant knowledgeable in the auto industry he now will be paying back taxes, fines or penalties, and interest going back several years. Ouch! If I were Bob, I would consider a couple of solutions: • Own a personal auto with its own insurance policy • Declare the furnished tag and its benefits as income and pay taxes • Get a knowledgeable accountant that can help make sure these kinds of things don’t happen If you have any questions on your insurance and other potential issues remember, the Insurance and Bond advisor’s at ALL-AMERICAN BONDS AND INSURANCE are here to help answer any questions you may have about your insurance coverages, or your Motor Vehicle Dealer bond requirements. We are dedicated to providing the best customer service to you, as a dealer, you should expect. We would be honored to provide you with a quote on your Insurance and your Motor Vehicle Dealer Bond. Contact us at 1-844-321-2663
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June 2017 — Independent Dealer — 17
T
his year's FIADA Annual Convention has it all! You don’t want to miss out on the chance to network with other Florida dealers, earn your continuing education credits for your 2018 renewal, visit the Mardi Gras themed exhibit hall, and attend the Saturday night Masquerade Ball. Register now for your ticket to the best party in town. Early birds save by registering before August 31. Use the form on page 19, or at www.FIADA.com.
MASQUERADE BALL IT'S BACK! The Saturday Night Annual Banquet and Awards Ceremony will return this year with a fun and glamorous Masquerade Ball theme. Join us Saturday, Oct. 7 from 6:30-11:00pm for food, fun, dancing and prizes!
EXHIBIT HALL FUN & GAMES
HOTEL ACCOMMODATIONS You're going to love the luxurious accommodations at the Omni Orlando Resort at ChampionsGate. Exquisite dining and meeting rooms, world-class golf and gorgeous details will be the backdrop for the 2017 Annual Convention.
Omni Orlando Resort at ChampionsGate 1500 Masters Boulevard ChampionsGate, FL 33896 Get into the Mardi Gras spirit at 1-800-THE-OMNI the Exhibit Hall Grand Opening on Friday, Oct. 6 from 5-9pm! Mention the FIADA Convention to receive Enjoy games, food and visiting the discounted rate of $179/night plus tax. vendors in our Exhibit Hall. Cut-off Date: Sept. 4, 2017 18 — Independent Dealer — June 2017
KEYNOTE SPEAKER NIADA'S Chuck Bonanno, national director of the NIADA 20 Group Program will bring his thirty years of experience to the table as the Convention Keynote Speaker. You won't want to miss this informative and educational address.
CONTINUING EDUCATION Here's your chance to catch up on any CE Credits while getting the latest updates on legal issues, business operations and dealership best practices. www.fiada.com
2017 FIADA ANNUAL CONVENTION
OCTOBER 5-7, 2017 | OMNI ORLANDO RESORT AT CHAMPIONSGATE COMPANY INFORMATION Company:____________________________________________________________________________________________________________ Address:_________________________________________________________ City, State, Zip:________________________________________ Phone:___________________________________________________________ Fax:________________________________________________ E-mail:__________________________________________________________ Website:_____________________________________________
REGISTRATION INFORMATION FULL ACCESS PASS (Includes all events and meals)
EARLY BIRD (4/1 - 8/31)
Badge Name:_____________________________________________________________
MEMBERS
[
] $249
REGULAR (9/1 - 9/30)
[
] $299
ON-SITE (10/1-10/7)
[
] $349
NON-MEMBERS [ ] $299 [ ] $349 [ ] $399 ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:_____________________________________________________________
[
] $195
[
] $195
[
] $195
Badge Name:_____________________________________________________________
[
] $195
[
] $195
[
] $195
[
] $100
[
] $100
[
] $100
[
] $99
[
] $124
[
] $149
SPOUSE FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:_____________________________________________________________ Tickets to the Annual Banquet are included with all Full Access Passes. For our planning purposes, will you and your guests be attending the Annual Banquet on Saturday evening?
Yes
No
EDUCATION PASS (Does not include meals) Badge Name:_____________________________________________________________
MEMBERS
NON-MEMBERS [ ] $124 [ ] $149 [ ] $175 ADDITIONAL EVENT TICKETS Saturday Night Gala Dinner Banquet (semi-formal attire)
Qty:_____________
X $75
X $75
X $75
Friday Night Expo Hall Grand Opening Dinner
Qty:_____________
X $50
X $50
X $50
Friday/Saturday Breakfast
Qty:_____________
X $25
X $25
X $25
Friday/Saturday Lunch
Qty:_____________
X $25
X $25
X $25
FULL ACCESS AND SPOUSE FULL ACCESS PASSES includes all meal functions, seminars and exhibit hall access and is eligible for continuing education credit. Additional Full Access passes and Spouse pass are only available with a Full Access registration. Valid FIADA membership required for FIADA member registration rates. CHILD REGISTRATIONS AVAILABLE Contact FIADA at (800) 237-0448 for details and to register.
TOTAL:
$
PAYMENT INFORMATION [
] I have enclosed a check made payable to FIADA
[
] I will be using a credit card
Name (as it appears on card):_______________________________________ Company:______________________________________________ Credit Card Billing Address:_______________________________________________________________________________________________ Credit Card Number:_________________________________________________________________
Exp Date:__________________________
Authorized Signature:_________________________________________________________________ CC Security Code:____________________ CANCELLATION POLICY: If cancellations are received in writing before 5pm on Monday, September 4, 2017, we will refund your registration fee. If cancellation is received between 9/5/17 and 9/29/17, we will refund your registration fee less a $25 processing fee. Fees cannot be refunded for registrations canceled after 9/29/17 or for no-shows. PHOTO/VIDEO RELEASE: By registering for the 2017 FIADA Annual Convention, I hereby grant permission to use any and all photographic imagery and video footage taken of me at this event and activities pertaining to this event, without payment or any other consideration. I understand that such materials may be published electronically or in print, or used in presentations or exhibitions.
HOTEL INFORMATION: Omni Orlando Resort at ChampionsGate. Hotel stay is separate from convention registration. Reservations must be made by SEPTEMBER 4, 2017 to qualify for group discount of $179 per night (plus tax) For reservations call 1-800-THE-OMNI (800-843-6664).
Return this completed form, or register: Mail: FIADA, 1840 Fiddler Court, Tallahassee, FL 32308 Fax: (850) 385-3251 Online: www.FIADA.com www.fiada.com
Call/Text: (800) 237-0448
June 2017 — Independent Dealer — 19
Protect. Promote. Preserve. SINCE 1940
Florida Independent Automobile Dealers Association
“
Why Join FIADA? representation A lobbyist and legislative committee that fights for you and the industry’s interests.
EDUCATION FREE continuing education and free unlimited technical assistance calls with FIADA legal counsel.
The number of benefits you receive as a member pays for the price of your membership. For $325 you can’t afford not to be a member.
It costs less than $1.00 per day to get connected.
dedication Access 100+ vendors who specialize in auto industry needs and over 800 dealers Statewide who handle issues like yours.
”
savings
Lisa Compagno,
FIADA member discounts at over 15 auctions in Florida, Georgia and Charleston. A savings of over $2,000.
FIADA President Palm Tree Auto Sales, Stuart, FL
discounts Exclusive savings on advertising opportunities, DMS, financing, floorplanning, GPS and other dealer services. Licensed dealers receive complimentary membership and additional benefits with NIADA.
DUES: $325 Annually
Sponsor:_____________________________________
Company Name:________________________________________________________
q New Mbr q Associate Mbr
Address:___________________________________ City:__________________________ State:_________ Zip:________ Phone:________________________________Fax:__________________________ Email:_________________________ By signing I agree to the FIADA
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20 — Independent Dealer| — June 2017 800.237.0448 | Fax: 850-385-3251 Email: info@fiada.com | www.FIADA.com | Florida Independent Automobile Dealers Association, 1840 Fiddler Court,www.fiada.com Tallahassee, FL 32308
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June 2017 — Independent Dealer — 21
D E A L E R O P E R AT I O N S
The Art of the Referral Want an army of marketing soldiers who will do battle in the trenches of public opinion for you? Make sure your referral program is strong and ready for action. BY KENNY ATCHESON
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magine waking up tomorrow morning with the knowledge that there is an army of marketing soldiers battling to send business to your door. I view referrals as marketing soldiers. Wouldn’t it be great to have the ability to generate an endless, steady flow of customers at a reliable and predictable pace? That’s what a referral plan and system can do for your business. The number one principle with referrals is to treat them like other media with the goal of earning money. Put forth effort, devote time, and invest money with the expectation of earning a positive return on your investment. You could probably find yourself earning a lot more referrals if you treat the process like other media.
Stability
To illustrate the point, let’s look at things that aren’t so stable: A company that was reliant upon cold calls likely struggled big-time when the Do Not Call list and laws were enacted and regulations created. The same thing happened with broadcast fax, then later texting. New laws and regulations were implemented and had to be obeyed. 22 — Independent Dealer — June 2017
Then there were changes in the marketplaces, such as DVRs and the way media may or may not be delivered. People record shows so that they don’t have to sit through commercials. Newspapers struggle. Yellow Pages are going from print to digital. With an overnight algorithm change in Google, your company’s search engine rankings can be hurt; your business could go from ranking number one to disappearing off the first page of Google in the blink of an eye by one algorithm change. It happens all the time. In 2016, Google AdWords Pay-PerClick went from ranking 10 ads to four ads on the right side of the first page. So if your business succeeded by ranking number five when there 10 companies listed, your ad likely disappeared overnight when the list dropped to four. Then the world really shifted toward mobile. If your advertisements were geared for people who used desktop computers or laptops, you faced another challenge unless your website was already mobile-friendly. These are just a few laws, rules, and
changes. The pricing of media is unstable and changeable. You could be totally reliant upon a specific type of media and then something happens, such as the price changes dramatically. That could hurt your business. A new competitor with big money to spend on media moves to town. Or the head of a company gives the new guy a deal on purchasing media upfront in order to get them in the door. The new guy uses that as an opportunity to take over part of the market share— you have a tough time getting it back. A big, brand-name company could come into town. They earn value in the customers’ eyes by being that brand. Up until then, you only had smaller competition. Yours was the big company. Perhaps your competition are smaller businesses whose owners and employees can have close relationships with customers because there are not as many layers to get the right person on the phone, there’s not as much waiting, and there is more face-to-face time and communication with the customer. Continued on page 24. www.fiada.com
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June 2017 — Independent Dealer — 23
REFERRALS continued from Page 22.
Smaller businesses may be more agile than your company because managers are able to make changes more quickly due to market conditions. All these things are not stable. However, a constant flow of referrals is much more stable. If your company has a great referral system in place that is implemented regularly, referrals and repeat purchases will come at a steady and somewhat predictable pace. HOT TIP Think of repeat purchases as previous customers who refer themselves. Implement the same behaviors and systems to generate referral customers that you use to generate repeat customers.
Under-the-Radar
“I don’t know why that dealership is so successful while we struggle. We have similar inventory and I don’t think they advertise.” This is what the head of your competition will likely say when you have a powerful force of referral
soldiers that do battle to send business your way. I am a fan of under-theradar strategies—evidenced by the fact that I included that very phrase in the subtitle of my book. A constant flow of referrals is hard for a competitor to copy. One Way to Earn More Referrals Your customers don’t spend near as much time thinking about your dealership as you would hope—no matter how great their experience was. While tailgating outside a Florida State football game, if your customer was asked by a friend if they knew of a great dealership, your customer would probably recommend you. Here is a different situation: Your customer at that same football game interrupts a conversation to say that they overheard them talking and it sounds like someone is looking for a great dealership. Would your
customers go out of their way to say, “I have someone for you to talk to”? The second situation requires the escalation of your customer’s motivation to be willing to refer you. To occupy space in your customers’ brains at all times, including situations where they are motivated to refer business to your dealership, you must communicate with them regularly. Occasional big customer events are good. Continuous communication via print and email newsletters that offer fun, value, and prizes is a less expensive way to occupy brain space—including the area of grey matter that reminds them of your businesses when a situation arises to refer your dealership. Referrals provide stability and consistency. Many behaviors and systems that are used to increase referrals also increase repeat purchases. Keep that in mind when considering the effort or investment associated with communicating consistently with customers.
Kenny Atcheson is the founder of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. Kenny offers private consulting and he teaches workshops and speaks at conventions and 20 Groups. His company offers several marketing and advertising programs which include Private Consulting, a Referral Results Training Program, a Newsletter Program, a Feedback & Review & Complaint Management System, Google Pay-Per-Click Management, Facebook Pay-Per-Click Management, Direct Mail Campaigns, Copywriting, and more. His website can be found at www.DealerProfitPros.com
GOT A TECHNICAL QUESTION AND NEED SOME ADVICE?
Use the R.E.D. Phone! FIADA is your number one source for advice and information. Technical questions, legal questions, regulatory questions...bring them on! Our network of industry veterans, professionals and consultants can help you find the answers you are looking for. Members can call or text us anytime at (800) 237-0448 or access our online resources 24/7 at www.FIADA.com. It pays to be a member!
REPRESENTATION | EDUCATION | DEDICATION—FIADA! 24 — Independent Dealer — June 2017
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June 2017 — Independent Dealer — 25
TOWN HALL Join us for a day of learning and networking where you will have the opportunity to ask industry experts important questions as well as get up-to-date on the latest legal issues facing auto dealers.
FRIDAY
Grand Hyatt Tampa Bay 2900 Bayport Dr Tampa, Florida 33607
10:00 AM - 2:30 PM
Room rate is $139/night. Make a reservation by calling (888) 421-1442. Be sure to mention you are with the FIADA group. The deadline to reserve a room in the FIADA block is Tuesday, June 27, 2017.
july 28, 2017
register online at www.fiada.com/events Town Hall meetings are FREE for all dealers to attend. Attendees enjoy a complimentary lunch made possible by event sponsors Auto Data Direct, Inc. and Wayne Reaves Software.
come for the town hall and stay for the fiada board of directors meeting Here’s your chance to help your industry. Attend the FIADA Board of Directors meeting and offer your input and insight. All members are encouraged to join the conversation on July 29, 2017. Details available at FIADA.com 26 — Independent Dealer — June 2017
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June 2017 — Independent Dealer — 27
DHSMV NEWS
Tips on Avoiding the Top Three Dealer Inspection Violations BY PALMER BRAND, CPM
These three violations are the most common found during dealer inspections. Find out how to avoid these potential problems.
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n an effort to assist Florida’s auto dealers with passing a dealer inspection, the Florida Department of Highway Safety and Motor Vehicles (DHSMV) has identified the three most common violations found during dealer inspections. These violations include: non-timely transfer of titles and registrations, misuse of temporary license plates and incomplete or unavailable deal jackets during
inspections. The following information provides insight into the dealer inspection process and identifies methods to avoid these common violations: Non-timely Transfer of Titles and Registrations Nearly 80 percent of all dealer
violations involve failure to transfer titles and registrations in a timely manner. Florida law requires that a dealer transfer the title and registration to the new vehicle owner within 30 days of the sale. Prior to an on-site dealer inspection, DHSMV compliance examiners run a report detailing the number of title transfers exceeding the 30-day requirement. Failure to provide timely transfers can result in an unsuccessful dealer inspection, even before the compliance examiner arrives on site. Common causes for exceeding the 30day time period include: • • •
No indicia of ownership on hand at time of sale; Transfer of tag and title is delayed while securing financing for the sale; and/or Dealer’s system for processing sales is not efficient.
DHSMV compliance examiners are required to review each incidence on a case-by-case basis and understand that there are rare occasions when it is not possible to transfer ownership within 30 days. In those instances, the DHSMV recommends that dealers fully document the incident. Misuse of Temporary License Plates When issuing a temporary license plate, the dealer must ensure its accuracy and accountability. A temporary license plate may only be issued and displayed on a single vehicle. Re-issuance of the same temporary license plate is unlawful. Prior to an on-site dealer inspection, DHSMV compliance examiners run a report detailing the number of temporary license plates issued by the dealer. Expect the compliance examiner to inquire about any vehicles that have been issued more than two temporary tags. To combat misuse of temporary license plates, the DHSMV
28 — Independent Dealer — June 2017
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Incomplete or Unavailable Deal Jackets During Inspection Dealers are required to keep their dealer records for a minimum of five years and have them available to the DHSMV at all reasonable hours for inspection. There is no requirement to keep records on-site; however, the compliance examiner will inspect five or more random deal jackets during an inspection, so the files must be accessible. If records are kept off-site from the retail location, the dealer should have a plan in place to produce the requested records during the inspection. Inability to produce records during an inspection may result in a failed inspection. The DHSMV recommends that dealers include as much documentation as possible in the deal jackets and ensure that they are available during the inspection.
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recommends the following: • Limit the number of people with the authority to issue temporary plates for the dealership; • Control the number of people who have access to the temporary plate inventory; • Never issue temporary plates for test drives; and • Use dealer license plates when appropriate.
dealership sold the truck "as is" and provided the buyer with a thirdparty vehicle protection plan at no cost. Within days of purchase, the truck lacked power and continued to smoke. The dealership refused to diagnose or repair the truck. The buyer sued, alleging fraud and breach of the implied warranty of merchantability and seeking attorneys' fees under the MagnusonMoss Warranty Act. The trial court granted judgment for the buyer, and the appellate court affirmed, finding that the dealership's failure to disclose known engine problems, as well as its representations that the truck was in working condition and the checkengine light was merely an oxygen sensor problem, misled the buyer. The appellate court agreed with the trial court that the dealership's fraudulent
Palmer Brand, CPM is the Chief of the Bureau of Dealer Services for the Florida Department of Highway Safety and Motor Vehicles. www.fiada.com
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Avoiding these common dealer violation issues will help ensure a successful dealer inspection and continued dealership operation. For more information, please contact a local DHSMV regional office. To find the regional office location nearest you, visit www.flhsmv.gov/locations.
June 2017 — Independent Dealer — 29
INDUSTRY NEWS Florida Dealer is a NIADA Sweepstakes Winner Congratulations to Gui Ming Liu of LB Auto Trading in Orlando for being chosen as a winner in the NIADA membership recruitment sweepstakes contest. New NIADA Members from March 1 to May 1 were entered to win fantastic prizes from NIADA partners including an AutoZone Yeti mug package, CarFax discounts, free eBay Motors listings, free access to Equifax, Manheim complimentary buyer's fee and a free NIADA Convention registration and airfare to Las Vegas. Just another example of how it pays to be a FIADA/NIADA member!
HB 7109 to Reduce Business Rent Tax and Offer Sales Tax Relief The Florida Chamber of Commerce applauds Florida Governor Rick Scott for lowering taxes on job creators and families by signing HB 7109, sponsored by Representative Jim Boyd (R-Bradenton) and Senator Kelli Stargel (R-Lakeland), into law. This Florida Chamber-backed bill takes a major step toward addressing much-needed targeted tax reforms, including a reduction of the Florida-only business rent tax–saving job creators approximately $61 million, and a further increase in the oversubscribed R&D tax credit for innovators. "The signing of this year's tax package marks the first step in what we hope will be the eventual complete elimination of the business rent tax," said Frank Walker, Vice President of Government Affairs for the Florida Chamber of Commerce. "With his signature today, Governor Rick Scott once again demonstrated his commitment to reducing the tax burden on Florida families and local businesses. This targeted tax reform bill will: • • •
Reduce the cost to lease business space, allowing businesses to reinvest the savings and hire additional employees, provide more employee benefits or strengthen capital, Encourages research and development (R&D) in Florida, spurring innovation, growth and high-wage jobs, and Provides back-to-school and hurricane preparedness sales tax holidays for Florida families.
The Florida Chamber and its Business Rent Tax Coalition have long-encouraged lawmakers to reduce, and eventually phase out, the Florida-only business rent tax and to continue to invest in innovation via the research and development tax credit.
Southeastern Auto Auction Holds Annual Golf Tournament On Wednesday, May 3rd & Thursday, May 4th Southeastern Auto Auction of Savannah held its annual “Masters Sale” and golf tournament. The “Masters Sale” is named after the “Masters Golf Tournament” which is played in Augusta Georgia a few hours away from the auction. This year’s sale featured free lunch, free golf visors and over 800 vehicles. At the conclusion of the sale dealers were selected to putt on the auction’s putting green for a chance to win up to $1000. At the end of the day over $2500 in cash was given away. The following day was the golf tournament which featured a record number of teams. The tournament featured a $25,000 hole-in-one challenge along with closest to the pin and longest drive contests. Following the tournament was a free lunch and an award presentation for the top teams and individual challenge winners. There was also a $3000 check presented to Shriners Hospital for Children. This donation was raised from hole sponsorships for the event. (Shriners Hospital for Children is committed to providing the best care for children in the specialty areas of Orthopedics, Burn Care, Spinal Cord Injury and Cleft Lip and Palate, regardless of the family’s ability to pay.) “It was a great week! We sold a lot of cars, had beautiful weather for the sale and golf tournament and raised money for Children in need.” stated Bill McCready, the auctions V.P. 30 — Independent Dealer — June 2017
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2016-2017 FIADA EXECUTIVE COMMITTEE:
LISA COMPAGNO President Palm Tree Auto Sales Stuart, FL (772) 288-2099
JIM WINTERICK, SR. Chairman of the Board Gulfstream Motor Credit Miami, FL (305) 253-2335
STEVE MARBAIS, CMD GEORGE HICKEY Regional Vice President Regional Vice President Bond Auto Sales, Inc. Marbais Enterprises, Inc. Ocoee, FL Tampa, FL 33604 (407) 877-7422 (813) 238-7478
CHRISTOPHER LEEDOM BRAD JOEL Secretary Treasurer AutoMaxx Splish Splash Auto Sales Sarasota, FL Princeton, FL 33032 (941) 309-1111 (305) 258-1191
BRANDI NOEGEL DINO MERCURIO Regional Vice President Regional Vice President Noegel’s Auto Sales Independent Credit, Inc. Starke, FL West Palm Beach, FL (904) 964-6461 (561) 686-8673
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FRANK FUZY Regional Vice President Century Motors of S. Fla., Inc. Pompano Beach, FL 33064 (954) 785-0369
SCOTT LANIER, CMD Senior Vice President Credit Cars Orlando, FL 32808 (407) 295-6211
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June 2017 — Independent Dealer — 31
MANHEIM FLORIDA ALWAYS NEARBY.
Manheim Daytona Beach 1305 Indian Lake Road Daytona Beach, FL 32124 386.255.2500 Sale: Wed 3 PM Total Resource Auction every Wed 2:30 PM Manheim Fort Lauderdale 5353 S State Road 7 Davie, FL 33314 954.791.3520 Sale: Fri 9 AM Total Resource Auction Tue 9 AM Ford Open Sale every other Fri Manheim Fort Myers 2100 Rockfill Rd Fort Myers, FL 33916 239.476.9800 Sale: Wed 4 PM Total Resource Auction every other Wed 3 PM Specialty Sale last Wed monthly 2 PM Galloway Direct Off Site Sale 2nd & 4th Tues 12 PM Manheim Jacksonville 10817 New Kings Rd Jacksonville, FL 32219 904.768.9981 Sale: Thurs 1 PM Total Resource Auction every Thurs 12:40 PM Manheim Lakeland 8025 N State Road 33 Lakeland, FL 33809 863.984.1551 Sale: Wed 2 PM Specialty RV/Boat Sale 1st Wed monthly 9 AM
32 — Independent Dealer — June 2017
Manheim Orlando 11801 W Colonial Dr Ocoee, FL 34761 Sale: Tues 9 AM Highline Exotic Sale Kicks off every 4th Tues 11 AM with Mercedes & BMW Chrysler Closed Factory Sale bi-weekly on Mon 12:30 PM GM Closed Sales bi-weekly on Mon 1 PM Nissan Infiniti Closed Sale 1st Wed monthly 9 AM Manheim Palm Beach 600 Sansbury Way West Palm Beach, FL 33411 561.790.1200 Sale: Thursday 9 AM Exotic Highline Sale every 4th Wed 9:30 AM Manheim St Pete 14950 Roosevelt Blvd Clearwater, FL 33762 727.531.7717 Sale: Thurs Weekly 2:30 PM inops Regular Sale 3 PM Manheim Tampa 401 S 50th St Tampa, FL 33619 813.247.1666 Sale: Thursday 9 AM Total Resource Auction Mon 9:30 AM at Cone Road location Ford Factory Sale every other Wed 10 AM Manheim Caribbean 1050 Carretera 865 KM 4.7 Bo. Candelaria Toa Baja, PR 00949 787.261.7300 Sale: Thurs 12 PM Salvage Sale Thurs 11 AM
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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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