FIADA June 2019 Issue

Information and Insight for Florida Used Car Dealers

JUNE 2019 www.FIADA.com

Registration details starting on PAGE 17.

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Dealer Independent

MAILING ADDRESS

1840 Fiddler Court Tallahassee, FL 32308

TELEPHONE

(850) 385-2712 (800) 237-0448

(850) 385-3251

FAX

WEBSITE www.FIADA.com

EXECUTIVE COMMITTEE Brad Joel

President

Lisa Compagno

Senior Vice President Scott Lanier, CMD

Chairman of the Board Frank Fuzy

Secretary Jenay Rhoads

Treasurer Luis Giraldo

Regional Vice President Brandi Noegel

Regional Vice President Steve Marbais, CMD

Regional Vice President

Trever Varney

Regional Vice President

Jim Winterick, Sr

Regional Vice President

FIADA STAFF Lisette Mariner, CAE

Executive Director Terry Myers

Educational Instructor Jason Berthiaume

Education and Events Manager Christy Taylor

Editorial/Advertising

POSTMASTER:

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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 2019

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 Brad Joel

6

Executive Director’s Message Lisette Mariner, CAE

8

Back to Basics Terry Myers discusses what to do when reporting specially designated nationals (SDNs).

10

Keys to Insurance FIADA Insurance Preferred Partner Kevin O'Connor explains why flood insurance for your dealership may be a good idea.

12

The Florida Legislature Passed HB 431, Which Amends the Florida Lien Sale Statutes House Bill 431 was passed to prevent lien sale fraud and protect the rights of lien holders.

14

One on One With NIADA FIADA Convention Committee Chair Ellen Westpfahl presents her plans for the Annual Convention and makes a pitch for why you should attend.

17

2019 FIADA Annual Convention Featured Speakers, special events and more are on the agenda. Reserve your room now at the Rosen Plaza Hotel to get the group discount.

22

Membership News

26

A Steady Flow of Business vs Stressful Sudden Surges A little R&R (repeat and referrals) can go a long way in taking the stress out of your business model.

28

A Look At Current Legal Issues Attorneys Tom Hudson and Nicole Munro's monthly collection of legislative and regulatory highlights to keep you in compliance.

30 Industry News

News and headlines of interest to the Florida Used Car Industry and beyond.

June 2019 — Independent Dealer — 3

FROM THE PRESIDENT

Tampa Bay is the Place to Be

BY BRAD JOEL, FIADA PRESIDENT

H

ave you been to a FIADA Town Hall yet? Many of you have as I have seen you there. But, with 700 members currently on our books, I know that many of you haven't. I think if you would come one time, you would see what a benefit it is, and I bet you will be back again and again.

The good news is, we have a Town Hall meeting coming up soon. It's at the Grand Hyatt in Tampa Bay. Our main topic of discussion will be the new laws and regulations that just came out of the Legislative Session. Attorney Rob Sickles of Nelson Mullins Broad and Cassel will be giving us a legal update. All of the rules and requirements that car dealers have to deal with daily can be confusing and Rob always does an amazing job of breaking it down to where it is easy to understand. He is happy to answer questions, too. I guess you could read all the new laws and amendments yourself, analyze them and figure out the best way to implement them, but why would you when you could spend an afternoon enjoying lunch with your friends and getting the Cliffs Notes version from one of the smartest guys in the class?

Town Hall Meetings are absolutely FREE to attend. And that's not just for members. I know there are a few nonmembers reading this magazine this month, and yes, you are invited as well and can attend FREE of charge too. Come out, get your free lunch courtesy of Auto Data Direct and get up-to-date on what's happening in your industry. I promise there is no sales pitch to sit through or gimmick when you get there. The quality of these events speak for themselves, as well as for the entire Association.

For everyone who attends, I would also like to personally invite you to the President's Reception I am hosting immediately after the Town Hall from 2:00-3:30pm. Enjoy complimentary beer, wine, sodas and snacks and meeting some really great people. I really hope to see you there and 4 — Independent Dealer — June 2019

am looking forward to talking with you. Veterans, newbies and everyone in between; we all can learn a lot from an afternoon together.

If you are able to stay, on Saturday we will have our quarterly Board of Directors meeting. This is the last one before our Annual Convention in October. Again, this is open to everybody, not just board members.

Non-members, we would love to see you there too!

What happens at a Board Meeting? We discuss different ideas and projects for the Association. Our committees give reports and hold meetings as well. That includes membership, member benefits, convention and legislative.

In order to serve our members the very best we can, it is important to know what matters to them. What is important to you at your dealership in Lady Lake? Or you at your lot in Miramar? Come to the meeting and tell us!

If you live in Tampa, or are close-by, then please plan to attend. If you are from out of the area, we have tried to make it easy for you as well with a discounted rate at the Grand Hyatt. Mention you are with the FIADA group when you call (813) 874-1234 to make your reservation.

Speaking of reservations, have you booked your room at the Rosen Plaza for the FIADA Annual Convention coming up October 17-19? I wouldn't wait. Reservations must be made by September 16, 2019 in order to qualify for the group rate of $159 (plus tax). The Annual Convention is the biggest event of the year for FIADA, and this is year is going to be one of the best. Our Convention Chair Ellen Westpfahl is planning an event that can't be missed. Check it out on page 17.

See you in Tampa!

Brad Joel FIADA President www.fiada.com

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June 2019 — Independent Dealer — 5

EXECUTIVE DIREC TOR’S MESSAGE

Knowledge is Power

BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR

P

art of FIADA’s mission is to educate independent dealers in Florida. We offer many opportunities to fulfill that mission, like the pre-license course, title and registration course, webinars, quarterly town hall meetings and of course this magazine.

Don’t forget that the FIADA Annual Convention is back full force. We have a great line up of industry experts to help you obtain the continuing education necessary for your license renewal in 2020. Register early to take advantage of early bird discounts. See page 17 for details.

Research suggests there are health advantages that come Recently the FIADA board voted to increase educational along with adult learning. Practicing new skills and opportunities for dealers. We have an ad hoc committee activities, especially those that require a high amount dedicated to reviewing industry needs and putting of mental engagement, has been shown to improve memory in seniors. Researchers speculate that by keeping your brain sharp The more you learn, the more you'll notice in your later years, you may be able to delay the benefits-in your job, your relationships, "cognitive aging” (declines in mental acuity), and even your health. and dependence upon others that are often associated with the twilight of life. The more you learn, the more you'll notice the benefits – in your job, your relationships, and even your health. together programs that will benefit dealers for years With so much to gain, it’s time you put your curiosity to to come. Stay tuned as we launch special events and work opportunities for dealers to gain knowledge and insight into being more profitable and staying in compliance.

Through the FIADA dealer training school we offer courses like the Pre-license Course, Dealer CE and Title As a member of FIADA you’re also a member of NIADA and Registration courses. The pre-license course is what and with that additional opportunities to learn. NIADA is required to obtain your dealers license. We have found also has webinars, podcasts, conferences, and a certified that this all-encompassing course is a good refresher for master dealer program. In fact, August 21-23, NIADA veteran dealers and their staff. We are offering a special will have its next class in Chicago, IL. For details contact $99 rate for dealers and their staff to take this course Diann at diann@niada.com or 941-203-3580. either online or in person. You will have 30 days to complete the online course or you can attend a two day Here’s to you! I hope you use these multiple opportunities course in person. To register and find more details visit to better your health and prosperity. I welcome your www.FIADA.com. feedback. Please let me know your thoughts for future coursework and education you can use. Call or text me at The next Town Hall meeting is another opportunity to 800-237-0448 or email at lmariner@fiada.com. learn through networking and asking experts questions.

6 — Independent Dealer — June 2019

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June 2019 — Independent Dealer — 7

BACK TO BASICS

Specially Designated Nationals Reporting

BY TERRY MYERS

It is a federal requirement to abide by the reporting requirements for Specially Designated Nationals (SDNs) and car dealerships are no exception.

C

ourtesy of September 11, 2001, Executive Order #13224 was issued to establish a proactive way to determine if your customer may be a terrorist.

Since then, the list has expanded to include money launders and drug dealers, known resources to hide money used to fund these types of organizations.

One of my favorite stories is about a ‘retired military’ student from my Tampa Pre-Licensing class. Shortly after he opened his first store, he had a hit on the SDN list. He shared this story with Don and Kevin Scott that soon after he made the required call, “It looked like a movie scene.

Helicopters, swat, etc. arrived to take that person away.” He got a reward of $125,000.00. There are other stories that do not have rewards. Some hits you can hope for…

If it were me, I would put a sign in the dealership window, by the entrance and/or on my desk that announces, “To protect you our customers, this dealership abides by the SDN, Specially Designated Nationals reporting requirements, per Presidential Executive Order 13224, October 1, 2001.” This is one way to show your customers that you truly care. It also may act as a deterrent for those who don’t want their names run.

You can visit the SDN Resource Center online at the Treasury Department's website: https://www.treasury.gov/resource-center/sanctions/ SDN-List/Pages/default.aspx 8 — Independent Dealer — June 2019

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Many dealer management systems have the name check built in to automate the checking process. It is still the dealer responsibility to make the call.

The phone number is (800) 540-6322, to get permission on how to proceed.

Sometimes you receive permission to proceed and “We will call you back to gather more information.”

Most times you hear, “This is not the person we are looking for.”

Upon very rare occasions, the call is followed with action. Remember, you are not law enforcement. Never take action based upon a potential name match. There are over 25,000 persons trying to get their names purged because they are not the person on the 1,000,000+ names list.

Others carry additional information when they travel, to prove they are not the person on the list. The list contains persons, companies, countries, suspected terrorist, money launderers and drug dealers.

I received was about a dealer that did not do a search and apparently, sold to someone on the list. When that ‘bad guy’ was captured, it was discovered he/she was on the list at the time of the purchase. When confronted, the dealer said he/ she was never informed of the requirement. Follow up by the authorities confirmed the PreLicense class material did include SDN training. Our classes reference SDN three ways and the phone number to call is on the test.

Check the FIADA website for more in-depth information.

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.

Don’t ever not make the call, even if it means calling as soon as they leave the dealership, should you feel at risk. The consequences may be forfeiture of assets, millions in fines and/or time in jail. One call

GET FIADA BENEFITS ON THE GO Download the FIADA app now to get access to all of your FIADA benefits whenever you need them.

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June 2019 — Independent Dealer — 9

KEYS TO INSURANCE NN C EC E KKEE YY SS TTO O I INNSSUUR RAA

Flood Insurance: It's Not It's a Mess Out There Insurance Predictions for Just for the Bank

BY KEVIN O'CONNOR, CIC, CRM

the New Year

BY KEVIN O'CONNOR, CIC, CRM

Current market trends are having an adverse affect for Dealer You know the risks of buying a flood-damaged car, but have you Insurance products.

Understanding why may your dealership

BY KEVINflood O’CONNOR, AGENT OFhelp RECORD considered insurance INSURANCE for your property? weather the storm.

A W

s we head into yet another hurricane season, I require it. In fact, nearly 1 in 4 NFIP flood claims occur but even e justtowent one that we to keep having to pay to low-risk decided writethrough about a topic don’t talkthem fromin these moderateareas!with Note the thatincreases, if during the results are still about enough, Flood insuranceout. on your life on of the are revised andunprofitable. the property of nearly the most difficult This has been the going in loan somethe maps am excited to announce the resurrection of “Keys to it difficult to find policies on dealers that never had an property. months we’ve had in ages is now the high-risk form or fashion since thein2004 storm area, your lender will notify you Insurance,” a column I wrote for many years in this issuemust in past years. Add These number of purchase insurance. tochanges this factcaused that inaApril of this trying to get accounts placed. In season. With all of that thisyou tightening on flood magazine throughout the 1990s and up until 2005. The insurance companies tothe withdraw from the Florida m Many of you price who have purchased a property in past year “800-pound gorilla” in the many cases, wasn’t the issue, it thethephysical damage side, the garage column touched on the subjects relating to the insurance or limit what they offer causing a supply and demand may have found that the mortgagee requires you to carry FEMA also tells us that “Nearly 1 outof4Garage NFIP flood claimsZurich, world Liability, was finding the coverage the client liability has been relatively stable, flood insurance.

This requirement may vehicle be waived for occur inwhich these moderate to low-risk areas. ” That’s an positive side needs of the non-franchised motor dealer. subsequently raised rates.

On the announced it was exiting the mark needed that made me lose sleep at now. those mortgages on properties in moderate tountil low risk alarminginsurance fact! Howindustry could the has maps drawnsurplus specifically to thanks i record capital in a number of states including night.

In our industry, we call this areas but, in a high risk area, the coverage is required by thepart amount of riskthan a property has of flooding belosses ov Starting this month, we will be doing a quarterly edition determine large to lower expected catastrophe Florida.

They insured a majority of the beginning ofwhy a “Hard Market.”

Garage liabilityso falls under law.

You may ask this is. wrong? of the column. We plan to discuss subjects such as risk the last few years and increased investments yields. M

I

all the big franchised dealers as we It’s defined by rising prices and commercial auto liability in the management ideas to help reduce your insurance costs and of the insurance industry analysts expectindependents the trend of as many of the larger The FEMAavailability website explains: shrinking and it isn’t fun Simply stated, the maps are flawed.

Many maps are old and insurance world.

Commercial eliminate unnecessary claims, changes in insurance market increasing rates to slow or even reverse in the near fut insurance haven’t credible updating.Other It takes well over carriers a year to have for us as agents and even less fun for Auto Liability has seenhad a steady conditions, in pricing coverage availability, new Unfortunately therefollowed arefinal. no crystal balls to Whyhaving doestrends mytomortgage lenderand require buy flood a flood The map is us what suitupdated creating a tell vacuum dealers buy insurance in it. me todeterioration ofmake results frominsurance as far rate map products available to the dealer industry and more. expect in 2014.engineer All of wecoverage can isavailability keep close on th insurance? drawn by a trained anddo starts with aa much outeye there. back as 2011. Rates had been flat map or industry and do our best to keep the readers of this area of risk than the final version101, will have.

Business whenThe supply goes co What happened to cause this? Like even decreasinglarger for the 5 years prior ThisUnder past year was challenging our business, federal law,a the purchase ofyear floodininsurance is ahead of onto the curve. initial map heads the government reviewing down, prices go up.process the old saying goes, “everyone’s got tofinancial 2011 then suddenly everything mandatory federal or related especially hereforinallFlorida.

A federally new “wind modeling” systemto be approved. By the time the government officials, an opinion and is mine.” Here changed.

Commercial auto losses for this thewhich acquisition and/or construction of way land developers, realtorsnote, and others get done with their wasassistance implemented completely changed the On a personal I wanted to thank theratios, FIADA Boa The deteriorating loss mixed are my thoughts on what I have seen haveHazard grown from $744.8 million in (most buildings in high-risk flood areas (Special Flood comments and concerns often about money), the carriers look at certain areas. This new system of Directors for thewith votethe of confidence in electing us th exit ofthan insurance carriers happening the industry.

2001 to over $2.9 billion that in 2016.approved is much Areas orin SFHAs). smaller the identified that non-coastal areas hadfinal map Agentgets of Record. Our team of insurance professionals from the class of business has force Carriers have been nibbling awayoriginally at trained map maker submitted. more hurricane exposure than was specialize in your industry and make it ourtojob to kno the remaining carriers tighten u The amount of flood insurance coverage required by the The obvious cause of blame would the losses with small rate increases, previously believed and pricing how your business works and understand what your Flood Disaster Act of 1973, as amended by A recent example of this was Hurricane Michael.

Michael and raise premiums to be the storms we Protection have of policies were revised dealership needson toOctober best protect your assets. are the National Flood Insurance Reform Act of 1994, is the hit the Florida panhandle 10, 2018 causing a We their be sure to protect endured over the last accordingly. The 19 foot storm available forand questions from association member of the following: surge destroying 70%any ofprofitability. the propertiesWe are threelesser years.

While this claims fromin the area. whether clients or notlisted and we will do our bes 200 ofthey thoseare properties were as having a seeing carriers taking had an impact, the 1. The maximum amount of NFIP coverage2012’s “low riskanswer of flooding” the FEMA maps. thoseby questions inflood a completely impartial man as much as 25% rate storms wereavailable actuallyfor the particular property type, Hurricane increasesand and at the sam just a small of a 2. part The outstanding principal balance of the loan, floods.isHeavy Sandy hadIt isn’t only Wehurricanes hope that that Keyscan tocause Insurance an informative and time, reunderwriting much biggerorpicture. Yes, rain can column cause dams levees to break.

Rivers that insu a devastatingcontinuous interesting andorproves to the readers their book. Many Long insurance 3. companies The insurable value of the structure. and lakes can overflow. Wildfires can change landscape effect on the Dealers can be fun. time clients are being continue to be afraid of and ground conditions which can lead to increased Open Lot insurance If the property is not non-renewed, flooding. Another common concern, especially in Florida to find th catastrophic losses on in a high-risk area, but instead marketplace.

As a is land development. Even if at the time the in a moderate-to-low risk area, federal law does not flood map was policie the replacement dealer inventory. Many result, the insurance Kevin O’Connor of Dealers Insurance Services, th flood insurance; however, a lender can still drawn it was correct, years of redevelopment, creating newInc. is are more expensive and haverequire been excluding carriers are now FIADA Insurance Agent of Record.

Ifmuch you have insuran have less coverag wind, hail and flood for— June 2019 www.fiada.com 10 — Independent Dealer looking more closely at flood related questions, contact FIADA at (800) 237-0448 ort than the client is used awhile now and if you're

roads, buildings, etc can quickly undermine the maps integrity.

average non-residential NFIP flood claim is $89,000. Can you survive that kind of loss?

FEMA said that it has spent $200 million in recent years updating flood maps. But a recent study found that the agency is still miles away from where they need to be. In February 2018, Environmental Research Letters reported that 40 million Americans are exposed to serious flood risk at the 100 year-flood level - roughly 3 times more than FEMA’s flood maps suggest.

Statistically, you have a much higher chance of experiencing a flood than a fire. Why not look at protecting yourself? Ask your insurance agent for a quote today!

So back to the purpose of this article…

Even though a bank may not force you to buy flood insurance, everyone in Florida, both businesses and homeowners alike should consider it. It’s one of the only times your insurance is “subsidized” by the government keeping it at a somewhat affordable level.

As mentioned earlier, more than 25% of flood claims come from properties outside high risk zones. This means 1 out of 5 of you that don’t think you have a flood exposure, probably do.

Statistics show that 40% of businesses that close due to a catastrophic event, such as a flood, never reopen. The

P.S.-as of the writing of this article, the Federal Government extended funding for the National Flood Insurance Program, but only until 6/14/19. The 50-yearold program started losing money in 2009, and has been living on short-term congressional extensions, 11 of them since 2017. Bipartisan bickering is keeping a viable long term solution from being reached. The failure to do so would create problems too numerous to discuss here. Let’s hope they can agree on something soon.

Don’t wait until you have an issue… Unless you are closing on a loan, there is a 30 day waiting period for coverage to take effect after you buy a policy.

Kevin O'Connor (Dealers Insurance Services) is a FIADA Preferred Insurance Provider. Contact him at (941) 981.5160 or online at www.dealersinsurance.com.

The FIADA dealer training school offers courses such as Pre-licensing, Dealer CE and Title and Registration courses. Dealer 101 is an all encompassing course that offers a good refresher for veteran dealers and their staff.

For a limited time registration is only $99 Save a spot for you and your staff now at one of our 6 locations around the state. Register at www.FIADA.com

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June 2019 — Independent Dealer — 11

HUMAN RESOURCES

The Florida Legislature Passed HB 431, Which Amends the Florida Lien Sale Statutes

BY DENNIS LEVINE

Starting January 1, there will be new rules for repair shops and towing operators to follow to prevent lien sale fraud.

M

otor vehicle repair shops may place liens on motor vehicles for labor or services performed on the vehicles to recover the costs of repair and storage. Similarly, the operators of towing and storage companies may place liens on vehicles or vessels to recover the costs of towing and storage. Some repair shops and towing-storage operators exploit existing lien laws to eliminate the security or ownership interest of finance and leasing companies in vehicles upon which liens have been placed. These practices generally take two forms: fraudulent delivery of a required notice of lien, and fraudulent or inflated charges.

To address these abuses, in April 2019 the Florida legislature passed HB 431, which amends the Florida lien sale statutes.

•

Details of the Statutory Amendments

In addition to the foregoing, the amendments make a number of specific changes: • •

While not as far reaching as hoped, these amendments add protections for lenders and lessors to help stop lien sale fraud. The amendments, which take affect on January 1, 2020, make the following changes:

•

•

•

•

•

•

Require repair shops to allow the inspection of vehicles subject to a claim of lien; For towing and storage liens, at any time before the lien sale, an owner or lienholder may have the vehicle released by posting a bond with the Clerk. This is a very important amendment, as it will no longer be necessary to file a lawsuit before posting a bond to obtain possession of a vehicle for a towing or storage lien.

Permit administrative fees for the repair, towing, or storage of vehicles, but prohibit fees not expressly authorized, and cap the total amount of fees that may be charged at $250; The repair shop or towing company must use a

12 — Independent Dealer — June 2019

third-party vendor approved by the Florida DMV to transmit all certified mail notices required by the statutes. This change hopefully will eliminate the situation where the certified mail envelope is empty or contains a blank piece of paper; and Allow a copy of an electronic or paper title to evidence an interest in a vehicle or vessel.

•

•

a lienor must accept either a copy of an electronic title or a paper title as evidence of the owner or the lender’s interest in the vehicle. a vehicle may not be sold earlier than 60 days after completion of the repair work. the notice of lien must be sent no less than 30 days before the sale the motor vehicle. where the lienor fails to provide notice containing all of the required statutory provisions, the lienor may not charge for more than seven (7) days of storage. after posting a bond and the Clerk issues a certficate requiring the release of the vehicle, when the shop fails to make a claim on the bond within 60 days the statute requires “the bond shall be discharged by the Clerk”. the Florida DMV may not approve an application for transfer of a vehicle title where the application fails to include a copy of the notice of lien and the notice of sale containing all the requirements in the statute.

The lien sale notice must contain the following: •

name of the person or entity that authorized the labor or services on the vehicle www.fiada.com

•

• • •

• •

an itemized statement of the amount claimed to be owed to the lienor, including the dates the vehicle was dropped off for repairs, the repairs were completed, and the customer was notified of the completion of the repairs, plus the amount due for repairs, any administration fees, and any daily storage charges. a statement that the lienor will make the vehicle available for inspection during regular business hours within three (3) days after receiving a written request. The agent going to inspect the vehicle may present either a copy of an electronic title or a paper title as evidence of its interest in and right to inspect the vehicle. the address where a vehicle is physically located. the outside of the certified mail envelope must display the following • last eight digits of the VIN • repair shop’s registration number • name and physical address of the repair shop

The amendments to the lien sale statutes take effect on January 1, 2020. Until then, lenders must keep in mind the clock is ticking toward the lien sale date or the date by which a lender can post a bond to obtain possession and stop the sale. In many cases the shop will be intentionally unresponsive or drag its feet. The shop likely will lie, telling you the car has been picked up and the lien sale cancelled. In the event you do not obtain satisfactory documentation of repairs and arrange an inspection within 2 to 3 days of contacting the shop regarding a lien sale notice, we recommend lenders contact counsel to assist in challenging the lien sale and obtaining possession. www.fiada.com

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One of the benefits of your membership are the perks and special programs provided by our associate members and vendors.

Log on to www.FIADA.com and click the Resources tab to find a link to all of the current FIADA preferred partners. Take a look and see how you can start taking advantage of this benefit today.

June 2019 — Independent Dealer — 13

MEMBER BENEFITS

one –on– one with Convention Committee Ellen Westpfahl, Chair

A

s the 2019 Convention Committee Chair, Ellen Westpfahl has working to organize the biggest event of the year for Florida dealers. With dozens of educational sessions, nationally-recognized speakers, a full house of vendors at the exhibit hall, numerous networking opportunities and fun entertainment options the Annual Convention has a little something for everyone. This year's event is set in an "old west" theme so put on your hats and boots and plan to giddy-up.

Why should Dealers make plans to attend the 2019 Annual Convention?

It is a perfect time to meet fellow dealers, to share ideas and knowledge about the industry. You might think that you don’t need this, but there isn’t a more valuable resource than other experienced people in your profession. Where else can you complete your CE requirements, network with fellow dealers and learn some meaningful takeaways to help your business, all in one fast-paced, fun weekend?

What about Associate Members and Vendors?

Associate members should definitely attend as they are a vital part of our business and this is a great opportunity to meet Florida Dealers and FIADA leadership. Vendors, this is your time to shine and show everything you have to offer to all FIADA members, potential new members and guests. As you know, our exhibitor hall is where we have most of our functions, to give you the opportunity to meet everyone and get the time you need to discuss what your company has to offer.

What are some of the highlights for this year?

Florida Sheriffs Youth Ranches will be doing the annual Wine Toss and perhaps another surprise event.

We’ll have a Welcome Reception with entertainment on Thursday night, games and fun in the exhibit hall on Friday and Saturday, and are bringing back the Saturday Night Dinner to close things out! The theme this year is going to be Old West, so put on your spurs, saddle up your horse (or Mustang?) and come join us.

Education is a big part of the convention. Can you share any of the speakers, seminars or topics on this year’s schedule?

Yes, we are working on finalizing a great speaker lineup that will be approved for CE credit. Hall of Fame Speaker Steve Gilliland will give our keynote address on Saturday morning and will be sure to excite and entertain attendees, while giving them something to think about.

Dealer-favorite Joe Lescota will be speaking, offering the type of industry information that serious independent dealers need to know. Keep your eye on the magazine and Continued on page 16.

14 — Independent Dealer — June 2019

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June 2019 — Independent Dealer — 15

One on One continued from Page 14.

emails from FIADA for more session info in the coming weeks and months.

The two leading reasons why people do not attend the convention are usually that they can’t take the time away from work or that it is too expensive. What would you say about that?

You can’t afford to miss the Convention – we have great hotel rates and offer a great value for your money considering everything that is included with your convention registration. Don’t think about it so much as an expense, but rather an investment in your business and professional development. Can you afford not to invest in your business and industry?

There are so many opportunities to learn from other dealers, auctions and suppliers. Tenured members can help you with experience and knowledge that they love to share with new members coming into our business. If you have not attended before, you will never experience anything like this anywhere else where you can mingle and share ideas and problems and actually solve current issues.

With so many organizations and events pushing for “virtual” experiences, do you think that “real time” events like the Annual Convention are still important?

Why or why not?

Being in the auction business we are constantly pushing digital, which is great for selling cars and doing webinars, so I am all for “a” virtual experience. But regarding a virtual experience and the convention – no, you need to see it to believe it. The years of experience and knowledge of the people that attend our convention is unmatched by any other industry. Being around people like that can only benefit you and your business. There is a radio ad for a local bar/restaurant that says something along the lines of “because no great story started with someone eating a breadstick.” The FIADA Convention, because no great story ever started with “I was attending a virtual experience…”

Organizing the convention is a huge task. Why did you want to oversee this committee?

I was nominated, but I think the convention is one of the most fun committees because you try to get creative and have fun. You want the convention to be beneficial to the attendees, so they will want to come back year after year.

What is your goal for this year’s convention I think this would be the same for every convention – How can we beat prior years’ attendance? What can we do 16 — Independent Dealer — June 2019

Ellen Westpfahl is the Assistant General Manager at Manheim Orlando, pictured here with Andy Clark. As the FIADA Convention Chair Ellen is working hard to make this year's event the best yet.

that will make it more fun than last year or even better, the most fun ever? I want the dealers and associate members to know that the convention is a place to create a great camaraderie with people in the same industry. So, my goals are to beat last year’s attendance and to make it the most fun convention that we have ever had.

Are non-FIADA members allowed to attend?

Yes, they are not only allowed but encouraged to come and hopefully we can get them to sign up as a member for a discounted rate. As a member, they’ll receive thousands of dollars of discounts to many of the auctions in Florida and other products and services. We’ll be holding an event on Saturday afternoon specifically for non-members to educate them about all the benefits and savings available with FIADA membership.

What do you want to say to dealers who have not yet been to a convention?

Please take the time to help yourself and your business by attending our 2019 FIADA Convention. Come and see what FIADA does for you each and every day. Come and talk to the people that protect us from bills that legislature tries to push through when you don’t even know that it is out there on the table. Come out and meet the Board and the Executive team of the FIADA, find out why they dedicate their time to this association. I guarantee you if you have not been to one of these conventions you do not know what you are missing, and you will not believe how much information that could benefit you and your business that you have not received already by not attending. www.fiada.com

STAY ONSITE AT THE ROSEN PLAZA HOTEL

You can reserve your room at the ROSEN PLAZA HOTEL by calling the hotel at 1-800-627-8258 and requesting the GROUP rate for "Florida Independent Automobile Dealers Association, FIADA Annual Convention & Expo" or through the link at FIADA.com. Reservations must be made by September 16, 2019 in order to qualify for the group rate of $159 (plus tax).

FEATURED SPEAKERS

Steve Gilliland is one of the most in-demand and top-rated speakers in the world. Recognized as a master storyteller and brilliant comedian, he can be heard daily on SiriusXM Radio’s Laugh USA and Jeff & Larry’s Comedy Roundup.

STEVE GILLILAND

Joe Lescota is a highly recognized executive level, automotive retail educator and presenter. His area of expertise and focus is on; dealership financial statement analysis, inventory management and controls with emphasis on teaching dealers how to control expenses leading to greater net profit and sustainability.

JOE LESCOTA

Get details and updates at FIADA.com/convention www.fiada.com

June 2019 — Independent Dealer — 17

2019 Convention Exhibitors (as of 6/7/19)

2019 Convention Sponsors

ABCoA/Deal Pack Advantage GPS by Procon Analytics All American Bonds & Insurance Ally SmartAuction America's Auto Auction Auction123 Auto Data Direct, Inc. BirdEye Lobel Financial MicroBilt Orange Auto Tag Agencies PassTimeGPS PrimaLend Capital Proguard Warranty Inc. PTS GAP REPAY Tax Refund Services Tax Max Wayne Reaves Software Williams & Stazzone Insurance Agency, Inc.

(as of 6/7/19)

SILVER

BRONZE

Interested in Exhibiting or being a Sponsor? Call 800.237.0448 or go to www.FIADA.com

CALLING ALL DEALERS!!

Let us buy you a drink and get to know you a little better. Join FIADA Membership Chair Chris Ellis for a special prospective member open-house and cocktail hour.

Learn more about what FIADA does and how you can benefit from membership. We will be giving away a FREE MEMBERSHIP so don't miss your chance to win.

18 — Independent Dealer — June 2019

SATURDAY OCTOBER 19 .2.15 - 3..15 PM LOCATION:

SALON 5

www.fiada.com

2019 FIADAOCTOBER ANNUAL17-19, CONVENTION REGISTRATION FORM 2019 | ROSEN PLAZA HOTEL COMPANY INFORMATION Company:____________________________________________________________________________________________________________ Address:_________________________________________________________ City, State, Zip:________________________________________ Phone:___________________________________________________________ Mobile:______________________________________________ E-mail:__________________________________________________________ Website:_____________________________________________

REGISTRATION INFORMATION FULL ACCESS PASS (Includes all events and meals)

EARLY BIRD (2/1 - 8/31)

Badge Name:_____________________________________________________________

MEMBERS

[

] $249

REGULAR (9/1 - 10/9)

[

] $299

ON-SITE (10/10 - 10/19)

[

] $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

[

] $175

[

] $200

[

] $225

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

ONE-DAY PASS* (Please choose which day) *You must attend both days of the convention in order to obtain continuing education credit.

[

] Friday

[

] Saturday

MEMBERS

NON-MEMBERS [ ] $200 [ ] $225 [ ] $250 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 2, 2019, we will refund your registration fee. If cancellation is received between 9/3/19 and 9/30/19, we will refund your registration fee less a $25 processing fee. Fees cannot be refunded for registrations canceled after 9/30/19 or for no-shows. PHOTO/VIDEO/TEXT RELEASE: By registering for the 2019 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. By providing your mobile number, you agree to receive convention-related texts from FIADA.

HOTEL INFORMATION Rosen Plaza Hotel, 9700 International Dr, Orlando, FL 32819. Hotel stay is separate from convention registration.

Reservations must be made by SEPTEMBER 16, 2019 to qualify for group discount of $159 per night (plus tax) For reservations call (800) 627-8258.

Return this completed form: Mail: FIADA, 1840 Fiddler Court, Tallahassee, FL 32308 Fax: (850) 385-3251 Register: Online: www.FIADA.com Call/Text: (800) 237-0448 www.fiada.com

June 2019 — Independent Dealer — 19

Protect. Promote. Preserve.

Florida Independent Automobile Dealers Association

SINCE 1940

Why Join FIADA? REPRESENTATION A lobbyist and legislative committee that fights for you and the industry’s interests.

EDUCATION FREE continuing education and free unlimited technical assistance calls with FIADA legal counsel.

DEDICATION Access 100+ vendors who specialize in auto industry needs and over 800 dealers statewide who handle issues like yours.

SAVINGS Over $2,000 in FIADA member discounts and coupons that are available instantly with an easy to use mobile app.

DISCOUNTS Exclusive savings on advertising opportunities, DMS, financing, floorplanning, GPS and other dealer services.

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

code of ethics and FCC Consent.

Principal Contact:________________________________ Signature:_______________________________________

Payment Method: q Check (made payable to FIADA)

q Visa

q Mastercard

q American Express

q Discover

Card Number:________________________________________ Expiration Date:__________________ CVV:_________ I authorize FIADA to charge my credit card listed above.

Name on Card:___________________________________________________________________________________

Dealer Type: q Retail

q BHPH

q Wholesale

Years in business?__________ License# ____________________

SUPPORT THE FIADA PAC Your PAC Contribution helps spread the awareness and gain support of issues affecting independent dealers in the state's capitol.

q

$500

q

$250

q

$100

q

$50

q

$25

q

_________

FCC Communications Consent: I understand that by providing my mailing address, email address, telephone number and fax number, I consent to receive valuable and timely communications via mail, parcel, email, telephone, text and/or fax from or on behalf of the Florida Independent Automobile Dealers Association (FIADA). This consent shall remain in effect until FIADA receives written revocation signed by an authorized representative.

800.237.0448 | Fax: 850-385-3251 | Email: info@fiada.com | www.FIADA.com | Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308

20 — Independent Dealer — June 2019

www.fiada.com

PAID ADVERTISING

www.fiada.com

June 2019 — Independent Dealer — 21

MEMBERSHIP NEWS

New Members

MAY 2019

DIRECT DEAL AUTOS Miami, FL Richard G Barone Sponsor: Terry Myers

MOTOR TREND CERTIFIED Orlando, FL Beth McNett Sponsor: Jodi Eubanks

HARBOUR DEVELOPMENT, LLC Cape Coral, FL Dennis Bessey Sponsor: Kevin Scott

SIXT CAR SALES LLC Fort Lauderdale, FL Mark Zurales Sponsor: FIADA

HOSS AUTO INC Lake City, FL James Wilson Sponsor: VEMO Auto Auction

TALLY AUTO BROKERS Perry, FL Rodney Funderburk Jr. Sponsor: Jodi Eubanks

KOUSH LLC Orlando, FL Samer Hassan Sponsor: FIADA.com

PASTOR VELASCO Santa Rosa Beach, FL Sponsor: FIADA

MIAMI CLASSIC CARS Miami, FL Fabrice Choukroun Sponsor: FIADA

Rejoining Members

MAY 2019

DEALERCENTER Los Angeles, CA Barry Lane Sponsor: NextGear

MOTORY GROUP LLC Gainesville, FL Govinda Romero Sponsor: Lisette Mariner

H GREGORY1 INC Doral, FL Gabriela Bacigalupo Sponsor: FIADA

TAYLOR MORGAN, INC. DBA NETWORK AUTO SALES Jacksonville, FL Jeffrey Buttner Sponsor: Lisette Mariner

Renewing Members

MAY 2019

30+ Year Members Southeast Car Agency, Inc.

Gainesville, FL

20+ Year Members O'Donnell Automotive Warren's Auto Sales

Orlando, FL Avon Park, FL

10+ Year Members American Recovery Association Handicapped Driver Services - FL, LLC Kelly Kronenberg, Attorneys at Law The Auto Source, Inc.

Irving, TX Richfield, OH Tampa, FL Orlando, FL

Under 10 Year Members ABC Auto Sales, LLC American Classic Car Sales Ashton Agency, Inc. BNM Enterprises, LLC Braun Autowerkes Inc CARS Protection Plus CarsDirectllc Carvana, LLC FM Trucks and Equipment, Inc Fortegra General Baitoa Auto Sales Hanksters Hot Rods of Daytona Interstate Title Solutions, Inc. Melbourne Auto Mart, Inc. National Auto Auction Association Safe Financial Group LLC US Auto Exports LLC Used Car Connection LLC World Car Center & Financing

Moultrie, GA Sarasota, FL Winter Park, FL Saint Augustine, FL Lake Park, FL Murrysville, PA Plant City, FL Tempe, AZ Dover, FL Jacksonville, FL Tampa, FL South Daytona, FL Delray Beach, FL Melbourne, FL Frederick, MD Doral, FL Clearwater, FL Panama City, FL Kissimee, FL

Changes to the Hope Scholarship Program Contribution Election Form DR-HS1 Changes have been made to the Hope Scholarship Program to allow excess funding to be used for Florida Tax Credit Scholarships under section 1002.395, Florida Statutes. As a result, the Department of Revenue has included a statement about the Florida Tax Credit Scholarship Program on Form DR-HS1.

All eligible contributions will be used to fund Hope Scholarships. However, if eligible nonprofit scholarship-funding organizations (SFOs) have unused funds at the end of each state fiscal year (June 30), the SFO may carryforward 5 percent of net eligible contributions to fund Hope Scholarships for the next fiscal year. Net eligible contributions in excess of 5 percent will be transferred to other eligible SFOs. If no other SFO participates in the Hope Scholarship Program, net eligible contributions in excess of 5 percent may be used to fund scholarships under the Florida Tax Credit Scholarship Program.

22 — Independent Dealer — June 2019

www.fiada.com

PAID ADVERTISING

CHRIS “THE KID” ELLIS

armed and very dangerous Chris “The Kid” Ellis is his name and membership is his game. Chris is on the hunt for dealers who need a lesson in what FIADA is all about. He’ll be shakin’ hands and twistin’ elbows making sure everyone hears about membership. Do yourself a favor and join now before it’s too late.

24 — Independent Dealer — June 2019

www.fiada.com

THANK YOU JUNE IS OUR MONTH TO SAY

THIS MONTH

20 LOANS WILL BE FORGIVEN* This June, we’re celebrating you! To show appreciation to our clients, each week we’re awarding a loan forgiveness to five dealers plus offering a chance to win

a custom golf cart.

Floor plan any vehicle during the month of June 2019 either in-lane or online to be entered to win! Prizes will be drawn weekly.

For details, visit nextgearcapital.com/thankyou *The June 2019 Thank You Sweepstakes (“Sweepstakes”) is organized by NextGear Capital, Inc. (“Sponsor”). An “Eligible Dealership” is a dealership that: (i) has a valid AuctionACCESS dealership number; (ii) are not excluded dealerships as described below; (iii) are in good standing with Sponsor, if applicable, throughout the entire Sweepstakes Period; and (iv) are located in the fifty (50) United States, the District of Columbia, and Puerto Rico. An Eligible Dealership may enter the Sweepstakes by floor planning vehicle(s) on the Eligible Dealership’s line(s) of credit with Sponsor during the Sweepstakes Period (“Flooring Entry”). Subject to verification of eligibility and compliance with these official rules, each Flooring Entry will count as one (1) eligible entry and will be identified by the Vehicle Identification Number (VIN) for the vehicle that was floored. Eligible Dealerships also may enter the Sweepstakes without making a purchase. To do so, complete all required information on the official Sweepstakes entry form, which entry form can be found at www.nextgearcapital.com/thankyou and completed and submitted electronically (“Form Entry”). An Eligible Dealership may submit multiple Form Entries. Subject to verification of eligibility and compliance with these official rules, each completed Sweepstakes Entry Form will count as one (1) eligible entry. Limit of thirty (30) total entries per Eligible Dealership, which can be comprised of any combination of Flooring Entries or Form Entries. The Sweepstakes will begin on June 1, 2019 at 12:01 a.m. ET and end on June 30, 2019 at 11:59 p.m. ET (“Sweepstakes Period”). Four (4) separate drawing sessions for the Sweepstakes will be held on June 10, June 17, June 24 and July 1, respectively (collectively “Drawings”, each individually a “Drawing”). With each Drawing, each valid Sweepstakes entry that has been received by Sponsor as of 11:59 p.m. ET the day before the Drawing will be assigned a random number by Sponsor. Sponsor then will use an online number generator to randomly select six (6) distinct numbers without duplicates. The randomly selected numbers then will be used to identify the corresponding valid Sweepstakes entries from the total pool of valid Sweepstakes entries in the order in which the numbers were randomly selected. The random selections will be made by Sponsor. With each Drawing, a total of six (6) prizes will be awarded in the following order: (a) the first five (5) eligible Sweepstakes winners each will win one vehicle loan forgiveness in an amount up to $10,000 or alternate, random monetary award (total value of a maximum of $10,000.00), as set forth below; (b) the next (sixth) eligible Sweepstakes winner will win a customized golf cart (valued at $6,700). Each of the twenty (20) winners during the Sweepstakes (five each Drawing) who win the loan forgiveness prizes, each valued at up to $10,000 or alternate monetary award, will receive their respective prize as follows: (1) if the randomly selected entry was a Flooring Entry with an original financed amount of $10,000.00 or less, that entry is connected to the specific VIN of the vehicle floored and the unpaid balance for that specific unit will be forgiven up to $10,000.00, with funds applied to the outstanding principal balance first, (2) if the randomly selected entry was a Flooring Entry with an original financed amount of $10,000.00 or less that already has been paid in full at the time of the respective Drawing, an amount equal to that unit’s original financed amount will be credited to the Eligible Dealership’s account with Sponsor, and (3) if the randomly selected entry was a Flooring Entry with an original financed amount of greater than $10,000.00, or if the randomly selected entry was a Form Entry, a random number will be assigned to each $500 increment from $1,000 to $10,000 (a total of 19 increments), an online number generator will be used to randomly select one of those 19 numbers to determine the corresponding dollar value won, and the winner will obtain those funds in the form of a check made payable to the Eligible Dealership’s legal name on file with Sponsor. The six (6) randomly-selected Sweepstakes winners in each Drawing will be notified by phone or email within one (1) calendar week of the respective Drawing. Sponsor reserves the right, in its sole discretion, to identify the Sweepstakes winner(s) on Sponsor’s website. Only six (6) Sweepstakes prizes will be awarded with each Drawing for a total of twenty-four (24) Sweepstakes prizes. Odds of being selected as a Sweepstakes winner will depend on the number of valid Sweepstakes entries. Total approximate cash value of the Sweepstakes prizes in each Drawing is up to $56,700.00. Total approximate cash value of the total Sweepstakes prizes is $226,800.00. Each Eligible Dealership may win a maximum of one (1) Sweepstakes prize of any nature during the Sweepstakes Period. Once an Eligible Dealer¬ship wins a Sweepstakes prize in one of the four Drawings it no longer will be eligible for other prizes in that Drawing or in any subsequent Drawing.

PAID ADVERTISING

Employees of Sponsor, Cox Automotive, Inc., Cox Enterprises, Inc. and each of their respective affiliated companies, subsidiaries, and advertising and promotional agencies, and the family members of, and any persons domiciled with, any such employees, are not eligible to enter or to win. By entering the Sweepstakes, each entrant agrees to indemnify, defend, release, discharge and hold harmless Sponsor and its related entities, from any and all claims and liabilities arising from or in connection with participation in these Sweepstakes and the receipt and use of any prize, including but not limited to related tax obligations. NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT IMPROVE YOUR CHANCES OF WINNING. ALL FEDERAL, STATE, LOCAL AND MUNICIPAL LAWS AND REGULATIONS APPLY. THIS PROMOTION IS OPEN ONLY TO LEGAL U.S. RESIDENTS. VOID WHERE PROHIBITED. OTHER LIMITATIONS MAY APPLY. A complete and full list of the Official Rules for the Sweepstakes may be found at Sponsor’s website (https://www.nextgearcapital.com/thankyou/). Sponsor is, and may be contacted at: NextGear Capital, Inc., 11799 North College Avenue, Carmel, Indiana 46032.

D E A L E R O P E R AT I O N S

A Steady Flow of Business vs Stressful Sudden Surges

BY KENNY ATCHESON

Developing a strong R&R (repeat and referral) program can result in the kind of business stability that provides predictability and peace.

sudden surge of business sounds good when sales are down, but can be just as stressful as the slow season— shortage of inventory, phones going unanswered, leads getting away because there are too many at once.

A

company’s search engine rankings to plummet; 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.

Some Florida dealers are overly reliant upon tax season to make or break their year. Wouldn’t it be great to have the ability to generate an endless, steady flow of customers at a reliable and predictable pace rather than waiting for the annual tax season bump?

In 2016, Google AdWords Pay-Per-Click 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 were 10 companies listed, your ad likely disappeared overnight when the list dropped to four.

That’s what an R&R System can do for your dealership. R&R is my acronym for Repeat and Referral business. One system earns both Rs because the same behaviors that earn one earn the other.

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.

The first step to having an income-generating R&R System is to make a decision to put forth effort, devote time, and invest money into a system. System is italicized here to stress its importance. Occasionally asking customers for a referral or to buy again is not a system. That is a random act of marketing.

These are just a few laws, rules, and changes.

A Repeat and Referral System Provides Stability To illustrate the point, let’s look at things that aren’t so 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.

A company reliant upon cold calls likely struggled bigtime when the Do Not Call list and other, similar laws were enacted and regulations created.

The same thing happened with broadcast fax, and then later texting. New laws and regulations were implemented and had to be obeyed.

An overnight algorithm change in Google can cause your 26 — Independent Dealer — June 2019

The pricing of media is unstable and changeable. You could be totally reliant upon a specific type of media; then something happens, such as the price changes dramatically.

That could hurt your business.

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.

An R&R System is Under-the-Radar I don’t know why that dealership is so successful while we Continued on page 31. www.fiada.com

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June 2019 — Independent Dealer — 27

L E G A L & L E G I S L AT I V E

A Look At Current Legal Issues

BY THOMAS B. HUDSON AND NICOLE FRUSH MUNRO, HUDSON COOK, LLC

A monthly collection of selected legislative and regulatory highlights, and a recap of some of the many auto sale and financing lawsuits followed each month.

FEDERAL DEVELOPMENTS FTC Extends Deadline to Comment on Proposed Safeguards Rule Changes. In March, the FTC announced that it was seeking public comment on proposed changes to the Gramm-Leach-Bliley Act's Safeguards Rule and Privacy Rule.

The FTC set a comment deadline of June 3, 2019. On May 21, 2019, in response to requests from commenters, the FTC announced that it is extending the Safeguards Rule deadline to August 2, 2019.

FTC Rescinds Unnecessary FCRA Model Forms and Disclosures. On May 22, 2019, the FTC issued a final rule rescinding several Fair Credit Reporting Act model forms and disclosures. The Dodd-Frank Act transferred rulemaking authority associated with these forms and disclosures to the CFPB. The final rule, intended to reduce confusion by eliminating forms and disclosures that are no longer necessary, includes a chart cross-referencing rescinded forms with the corresponding CFPB Forms. The changes were effective May 22, 2019.

CFPB Issues Proposed FDCPA Rule. On May 7, the CFPB issued a proposed rule implementing the Fair Debt Collection Practices Act. The proposed rule focuses on the substance of consumer communications and time-andplace requirements and restrictions.

Comments on the proposed rule are due by August 19, 2019. The proposed rule includes a proposed 28 — Independent Dealer — June 2019

effective date of one year after its publication in the Federal Register.

FTC Retains Holder Rule. On May 2, the FTC announced that it completed its regulatory review of the Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses as part of its systematic review of its rules and guides and has determined to retain it without modification.

CFPB Sues Over Credit Repair Services. On May 2, the CFPB announced that it has sued PGX Holdings, Inc., its subsidiaries— Progrexion Marketing, Inc., Progrexion Teleservices, Inc., eFolks, LLC, and CreditRepair.com, Inc.—and an individual attorney for deceptive and abusive telemarketing acts and practices in violation of the Consumer Financial Protection Act and the Telemarketing Sales Rule.

The defendants operate two of the largest credit repair companies in the country, Lexington Law and CreditRepair.com. The Bureau alleged that the defendants and their affiliates made deceptive marketing representations to generate referrals to the credit repair companies. The Bureau also alleged that the defendants requested and received payment of prohibited upfront fees for their credit repair services. Under the TSR, companies can charge fees for credit repair services only after a certain period has elapsed and the company has demonstrated that the promised results have been achieved. The

defendants allegedly charged consumers when they signed up for the service and on a monthly basis thereafter, without waiting the prescribed period and demonstrating that the promised results were achieved.

CASE OF THE MONTH A Pennsylvania dealership sold and leased cars with a manufacturer’s warranty for 36 months or 36,000 miles. It also offered retail and lease customers a product it called a “warranty,” but this may have been an extended service plan. The product excluded manufacturer’s warranty claims.

The Pennsylvania attorney general pounced on the dealership, alleging that the product “failed to provide any meaningful value relative to the consideration paid by the consumer.”

The AG’s press release was blunter— the headline said the dealership sold “valueless warranties.” In colorful language, the AG is quoted as saying, “This dealership took its customers for a ride” and “bilked customers out of their hard-earned money.” Ouch.

Was this dealership’s voluntary protection product worthless? A service plan that only duplicates a manufacturer’s warranty would seem to offer no value. Is that what happened here? It is hard to tell from either the press release or the Assurance of Voluntary Compliance that the AG filed in state court.

But we have a clue. Although the www.fiada.com

dealership sold this product to both purchase and lease consumers, the AVC alleged a problem only for the product bought in connection with 36-month leases. That’s the limit of the manufacturer’s warranty.

This fact suggests to us that the dealership’s product provided service beyond the manufacturer’s warranty. If so, only consumers who leased cars for 36 months—the limit of the manufacturer’s warranty— would not benefit.

Many dealers would look at their service plan and focus on the value it provides for most customers, without thinking about who may not benefit. Perhaps that’s what happened here. The dealer just didn’t think about whether the service plan would be valuable to a customer who turned in the leased car when the manufacturer’s warranty expired.

Or maybe the dealer assumed customers would figure this out for themselves.

includes a “nuclear option” - for the violation of an injunction, the AG can ask the court to revoke the dealership’s right to do business and appoint a receiver of the dealership’s assets.

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 2019, all rights reserved.

It’s time to change PAID ADVERTISING

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This AVC hit the dealership in your approach to F&I compliance its pocketbook. The AG invited customers to complain to his WITH THIS SPECIAL OFFER... office and required the dealership to make restitution to those Subscribe to Spot Delivery and, at no complainants “to the satisfaction of the Commonwealth.” And itadditional charge, we will send you a Subscribe to Spot Delivery and, at no looked like the dealership already copy of your choice of any of send our you legal additional charge, we will a had made restitution to complaining copy of your choice of any of our legal customers. Finally, the AVC required compliance books, CARLAW, CARLAW II compliance books, CARLAW, CARLAW II the dealership to pay a civil penalty Street Legal or CARLAW III Reloaded. of $5,000 and another $5,000 to the Street Legal or CARLAW III Reloaded.

AG’s office for the investigation’s cost.

The toughest part of this AVC may be neither the reputational harm nor the financial cost. The AVC enjoins the dealership from engaging in any “fraudulent or deceptive conduct which creates a likelihood of confusion or of misunderstanding.”

This prohibition lasts forever. A future violation entitles the AG to a civil penalty up to $5,000 per violation. Pennsylvania law also www.fiada.com

To order, visit us at www.counselorlibrary.com/offer/spot To order, visit us at or call us at 877-464-8326. www.counselorlibrary.com/offer/spot Also follow us on:

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June 2019 — Independent Dealer — 29

INDUSTRY NEWS

News and headlines of interest to the Florida Used Car Industry and beyond

Enhancement to Driver License and ID cards Coming Soon Modifications to enhance safety and prevent fraud are on the way.

In 2017, the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) began issuing a redesigned Florida driver license and ID card to provide enhanced security features for customers, better protecting against identity and driver license fraud. The redesign also included the intent to remove the magnetic strip on the back of the credential in 2019 and be replaced with an enhanced security feature. Supervisor of Elections’ involvement, in conjunction with law enforcement and other stakeholders, has been a crucial component to developing and implementing these security measures.

Starting in May 2019, modifications to the credential includes the removal of the magnetic strip, the addition of a tactile feature and changes to the data and data layout to keep Florida’s credential the most secure over-the-counter credential on the market today.

By the end of August 2019, the modified credential will be available at all service centers throughout Florida and online. Though previous driver license and identification cards will still be in use alongside the enhanced credential until they are replaced or phased out. All credentials issued after August 2019, will be the modified credential. Any credentials with a magnetic strip and no tactile feature with an issue date after August 31, 2019, are fraudulent. As a reminder, any credentials with the previous style (beach background) with an issue date after January 1, 2018, are fraudulent.

The Department's website, flhsmv.gov/newDL, provides additional information and resources for you.

FLHSMV will be reaching out to all stakeholders to ensure they have the necessary resources and information throughout this process.

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Our goal is to provide the best service and maintain the highest level of security for all Floridians. If you have any questions about the new credential, please contact our team at newDL@flhsmv.gov. We appreciate your continued partnership.

New Auction Coming to Pasco County Gary Connors and Dealers Auction Xchange of Tampa Bay are elated to announce the groundbreaking of a new 75 acre, 8 lane, automobile auction facility in Pasco County, Florida.

“We are extremely pleased to announce that we have received our permit to build from Pasco County,” stated Connors.

Dealers Auction Xchange will ultimately employ in 30 — Independent Dealer — June 2019

excess of 200 associates at its new Pasco County location.

“Of course, none of this would even be possible were it not for the incredible support of both the new and used car dealers of the Tampa Bay Area (and beyond)! We are so blessed to have the support of so many in our industry.

They are not just customers, they’re our friends, and we appreciate each and every one of them deeply!”, Connors exclaimed. www.fiada.com

Steady Business continued from Page 26.

struggle. We have similar inventory and I don’t think they advertise. ~Mr. Competitor This is what the head of your competition will likely say when you have a powerful force of referral soldiers who battle every day to send business your way. I am a fan of underthe-radar strategies—evidenced by the fact that I included that very phrase in the subtitle of my book, Marketing Battleground.

It is hard for a competitor to copy a constant flow of referrals, because they have no idea why you are having so much success.

Occupy Space in Your Customers’ Minds

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 college football game, if your customer was asked by a friend if they knew of a great dealership, your customer would probably recommend your business.

Here is a different situation: If your customer overheard two people talking about needing a good dealership for a vehicle, would your customer go out of their way to politely interrupt the conversation and say, “I have someone for you to talk to?”

The second situation requires your customer’s escalating motivation to refer your dealership.

To occupy space in your customers’ brains at all times—including situations where they are motivated to refer business to your dealership—you must provide great experiences and communicate regularly.

events are great. But continuous communication that offers fun, value, and prizes via print and email newsletters is a continuous method to occupy brain space—including the area of grey matter that reminds them about your businesses when a situation arises to refer your dealership.

Referrals provide stability and consistency. Many behaviors and systems that are implemented to increase referrals also increase repeat purchases. Keep that in mind when you consider the effort or investment it takes to communicate consistently with your existing customers.

Kenny Atcheson is the founder and president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. Kenny teaches workshops and speaks at conventions and 20 Groups. His company offers several marketing and advertising programs, customer service and sales training. His website can be found at www.DealerProfitPros.com

Sure, occasional big customer

2018-19 FIADA EXECUTIVE COMMITTEE:

BRAD JOEL

President Splish Splash Auto Sales Princeton, FL 33032 (305) 258-1191

LUIS GIRALDO

Regional Vice President Veneauto Cars Gainesville, FL (352) 870-2278

www.fiada.com

LISA COMPAGNO

SCOTT LANIER, CMD

BRANDI NOEGEL

STEVE MARBAIS, CMD

Senior Vice President Palm Tree Auto Sales Stuart, FL (772) 288-2099

Regional Vice President Noegel’s Auto Sales Starke, FL (904) 964-6461

Chairman of the Board Credit Cars Orlando, FL 32808 (407) 295-6211

Regional Vice President Marbais Enterprises, Inc. Ocoee, FL (407) 877-7422

FRANK FUZY

JENAY RHOADS, PHR

Secretary Treasurer Century Motors of S. Fla., Inc. Florida Auto Exchange Co., Inc Pompano Beach, FL 33064 Dunedin, FL (954) 785-0369 (727)-796-2886

TREVER VARNEY

Regional Vice President Next Ride LLC Largo, FL (727) 559-1191

JIM WINTERICK, SR.

Regional Vice President Gulfstream Motor Credit Miami, FL (305) 253-2335

June 2019 — Independent Dealer — 31

PAID ADVERTISING PAID ADVERTISING

32 — Independent Dealer — June 2019

www.fiada.com