A Publication of the Florida Independent Automobile Dealers Association
March 2010
www.FIADA.com
Information and Insight for Florida Used Car Dealers
Top reasons to join fiada Page 12
Plug in: online continuing education Page 22
FIADA Annual Convention preview Page 26
PERMIT NO. 801 TALLAHASSEE, FL
PA I D PRST STD U.S. POSTAGE
www.fiada.com
March 2010 — Independent Dealer —
From the industry’s leading temporary tag provider!
Auto Data Direct is now offering a
Repo Letter Notification Tool!
ADD’S NOTIFICATION TOOL allows you to create your notification letters and electronically deliver them to the post office, saving you time and money tracking down concealed or failed repossessions. ADD also provides: t Real-Time Motor Vehicle and Driver License Information t Multi-State Title Search t Temporary Tag services To sign up for ADD’s array of dealer services visit us at www.ADD123.com.
For more information contact ADD at 866-923-3123 or email us at info@add123.com.
Learn Learnmore more about about the the repo repo notification notification letter letter on on page page 3.
— Independent Dealer — March 2010
www.fiada.com
PAID ADVERTISING
Enter promo code FIADA10 to receive $50 off account activation!
VENDOR VIEWPOINT
New Law Supports Dealers on Failed Repossessions
A
new law offers Florida buy-here pay-here dealers another recovery option when a standard repossession attempt fails. Often, dealers are unable to retrieve vehicles because they cannot locate a delinquent customer, or the customer conceals a vehicle in an effort to avoid its repossession. Now dealers have the support of House Bill 293, which was signed into Florida law in 2009 [FS 320.02(17), 320.03(8) and 319.27]. Under the new law, buy-here pay-here dealers can prevent customers who are behind in their payments from registering or renewing any vehicles until the vehicle with the unpaid account is surrendered. Placing a registration hold is a two-step process. First, dealers send a Notice to Surrender Motor Vehicle letter to the delinquent customer and retain proof of mailing. Once the Notice to Surrender Motor Vehicle letter has been mailed, and the dealer has proof of mailing, they mail the Department of Highway Safety and Motor Vehicles a Notice of Repossession or Recovery Attempt. The DHSMV will then place a registration renewal hold on all vehicles registered in the delinquent customer’s name. Once either the vehicle is returned to the dealer or the customer’s debt is satisfied, the DHSMV will remove the holds upon notification from the dealer.
fields. When the form is complete, one click of a button mails the letter to the delinquent customer. Another click prints a pre-populated Notice of Repossession or Recovery Attempt, ready to be stamped and mailed to the DHSMV through the traditional postal mail. All forms and information are archived in a password-protected account. If you are a buy-here pay-here dealer who already has an ADD account, it’s quick and easy to activate this great letter feature. Simply login to your ADD account and click the yellow Activate Direct-Post Office tab. If your account is not yet set up to pull real-time motor vehicle information, click the New Query tab at the top of your screen and follow the verification wizard to get started. There are no additional sign-up costs to add either feature.
Under the new law, buy-here pay-here dealers can prevent customers who are behind in their payments from registering or renewing any vehicles until the vehicle with the unpaid account is surrendered.
Auto Data Direct (ADD) offers a new electronic letter tool, available through its DirectPost-Office (DPO) product, designed to assist buy-here pay-here dealers with the registration hold process. Dealers can send the initial Notice to Surrender Motor Vehicle via certified mail, for $7.00, or first class with certificate of mailing, for $3.50. With ADD there are no letters to print, no envelopes to address and no trips to the post office. All a dealer has to do is run a Florida motor vehicle inquiry, select the Notice to Surrender Motor Vehicle form and fill in a few data www.fiada.com
Not yet an ADD customer? Visit us at www.add123.com and click the Sign-Up Corporate Accounts button on the left side of the homepage. Use the promo code REPOLTR at sign-up and receive $50.00 off the $100.00 one-time activation fee. At the time of account activation, we ask that you start out with $50.00 in your pre-paid account, making the total start-up cost $150.00. ADD has no monthly or annual fees- you only pay for the services you use. ADD gives you access to our industry-leading printon-demand temporary tag system as well as real-time motor vehicle inquiries. For more information, contact ADD toll-free at (866) 923-3123 to speak with a customer service specialist. March 2010 — Independent Dealer —
PANHANDLE
Comfort Inn 1013 East 23rd St. Panama City, 32405
FIADA Office 1840 Fiddler Court Tallahassee
NORTHEAST FLORIDA Adesa Jacksonville Auto Auction 11700 New Kings Rd. Jacksonville, 32219
Gulf States Auto Auction 6615 Mobile Highway Pensacola, FL 32526
WEST COAST
Ramada Inn Tampa 11714 Morris Bridge Rd. 1-75 Exit 265 Tampa
Insurance A/A of Clearwater 5152 126th Ave N. Clearwater, 33760
SOUTH FLORIDA
CENTRAL FLORIDA Manheim’s Imperial Auto Auction 3300 County Line Rd. Lakeland, 33811
Ocala Driver’s License Office 110 SE 25th Avenue Ocala, 34471
Manheim Central Florida Auto Auction 9800 Bachman Rd. Orlando, 32824
Manheim Remarketing Site Orlando/Ocoee 1275 E. Story Road Winter Garden, 34787
Manheim Ft. Lauderdale 5353 State Road 7 Davie, 33314 Adesa Miami/Insurance Auto Auction of Miami 12700 NW 42nd Ave Opa Locka, 33054
APRIL 2010
MAY 2010
JUNE 2010
Apr. 7-8
Pensacola
May 5-6
Pensacola
June 3-4
Orlando/Winter Garden
Apr. 8-9
Orlando/Winter Garden
May 6-7
Orlando/Winter Garden
June 5-6
Tampa
Apr. 10-11 Tampa
May 8-9
Tampa
June 7-8
Ocala
Apr. 12-13 Ocala
May 10-11 Ocala
June 9-10 Lakeland
Apr. 14-15 Lakeland
May 12-13 Lakeland
June 9-10 Pensacola
Apr. 17-18 Ft. Lauderdale
May 15-16 Ft. Lauderdale
June 12-13 Ft. Lauderdale
Apr. 20-21 Tallahassee
May 18-19 Panama City
June 22-23 Tallahassee
Apr. 24-25 Orlando
May 22-23 Orlando
June 26-27 Orlando
Apr. 26-27 Jacksonville
May 24-25 Jacksonville
June 28-29 Jacksonville
Apr. 26-27 Clearwater
May 24-25 Clearwater
June 21-22 Clearwater
Apr. 28-29 Miami/Opa Locka
May 26-27 Miami/Opa Locka
June 23-24 Miami/Opa Locka
View Course Descriptions and Register at www.FIADA.comwww.fiada.com
— Independent Dealer — March 2010
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
Greg Edwards President Jim Kagiliery Chairman of the Board Jeff Gann Senior Vice President Jeff Zupec Secretary Dino Mercurio Treasurer
Mario Allmond Regional Vice President Brandi Noegel Regional Vice President George Hickey Regional Vice President Steve Marbais, CMD Regional Vice President John Cousins Regional Vice President
FIADA STAFF
Steve Jordan Executive Director Larry Peters S. Allen Monello, D.P.A. Terry Myers Instructors Sarah Langley Membership Coordinator Alex Romans Education Coordinator Christy Taylor Editorial/Advertising
POSTMASTER:
Send address changes to: FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Toll Free: (800) 237-0448 Fax: (850) 385-3251 • www.FIADA.com The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308. The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.
www.fiada.com
Contents March 2010
For members of the Florida Independent Automobile Dealers Association
C O LU M N S & F E AT U R E S 3
New Law Supports Dealers on Failed Repossessions
6
Greg Edwards
8
Steve Jordan
9
Vendor Viewpoint President’s Message Executive Director’s Message You’ve Got Something To Say...Say It Plan to attend the FIADA April Board of Directors Meeting and register now for the free training and town hall meeting.
10
Larry Peters and S. Allen Monello, D.P.A.
12
Top Reasons Independent Dealers Belong to FIADA
14
You Can Get It Certified The National Independent Automobile Dealers Association and National Auto Care
20
New Federal Database Provides Low-Cost Vehicle History Reports
22
Legislative Update
26
Technically Speaking
launch the new NIADA Certified Pre-Owned Program for independent dealers.
John Grant
Fast Cars and Freedom: FIADA’s Annual Convention & Expo
D E PA R T M E N T S 28
Member News & Notes
28
Internet Extras
UPCOMING EVENTS April 23-24, 2010 FIADA Board of Directors Meeting The Shores Daytona Beach, FL
July 16-17, 2010 FIADA Board of Directors Meeting PGA National Resort & Spa Palm Beach Gardens, FL March 2010 — Independent Dealer —
FROM THE PRESIDENT
Just Say Yes to FIADA Membership BY GREG ED WARDS
R
emember last month when I talked about supersizing our message? Well, here is our chance. This issue of Florida Independent Dealer Magazine is being distributed to every independent dealer in the state. I would like to welcome our new readers and encourage them to explore our magazine and discover what our Association has to offer. Recruiting new members can sometimes be a tricky thing. What one person determines is their reason for joining, another does not. For instance, some people will join because they want to support their industry and ensure its strength for the future of their business. Others will be attracted to the Code of Ethics and the higher standard agreeing to such a commitment brings. You might be interested in FIADA membership for the instant access to regulatory and compliance issues or for the chance to network with successful dealers and share ideas. The guy down the street might be more motivated by the return on investment he will get with our many coupons, discounts and programs. The great thing about our organization is, no matter what category you find yourself in, FIADA has the answer. I would like to invite you to take a look at this exhaustive list of benefits and services you will be entitled to with your membership in the Florida Independent Automobile Dealers Association: Auction Discounts: • Your Auction, Inc. –$100 off buy fees • Tallahassee Auto Auction – $300 off buy/sell fees • Charleston Auto Auction – $300 off buy/sell fees • Carmax Auctions –One Free buy fee of up to $50 • Dealers Auto Auction –$75 off one buy or sell fee • Manheim Central Florida – FREE hotel reimbursement up to $75 with the minimum purchase of 3 units (one per month) — Independent Dealer — March 2010
• • • • • • •
Manheim Imperial Florida – FREE hotel reimbursement up to $75 with the min purchase of 5 units (one per month) Manheim Lakeland Florida – FREE hotel reimbursement up to $75 with the min purchase of 5 units (one per month) Manheim St Pete $75 hotel reimbursement with the min purchase of 5 units (one per month) Manheim Tampa $75 hotel reimbursement with the min purchase of 5 units (one per month) Manheim Fort Lauderdale – 1st time buyers and sellers receive $100 off one buy or sell fee Manheim Auctions -$100 towards one buy or sell fee (new members only) CADE/SADE - $100 off buy/sell fees
Online Resources available only to members: • FIADA DTS Manual • Repossession Manual • FTC Safeguards Rule Policies • Red Flags Rule Guidelines • Sales Tax Manual • Educational Videos on red flags rule, F&I, marketing, and more Legal, Legislative and Regulatory Benefits: • Full-time lobbyists in Tallahassee • Political Action Committee that supports candidates and elected officials who support the auto industry • Representation in Washington, D.C. • Legislative updates and alerts • Legal, insurance and bond refererals • Nationwide skip tracing Networking Opportunities • Quarterly Board Meetings • Annual Convention & Expo www.fiada.com
Discounts and Savings • Over $7,000 in coupons on industry products • Members Save 5% with Office Depot • Up to 27% Savings with Fedex Shipping • Save 10% off T-Mobile Phone Service • Discount on Car Rental & Hotels • Special Pricing on Experian Vehicle History Reports • Prescription drug discount • Special Pricing on the NADA Guide Book • FIADA dealer forms up to 33% off FIADA Membership includes NIADA Membership with the following benefits: • Certified Master Dealer Program • Scholarship Program • NIADA TV programming: operations, sales, legal/ regulatory, compliance, F & I • NIADA Retirement Program • NIADA skip tracing program • NIADA Certified Pre-Owned Program • Save 10% off T-Mobile Phone Service • Discount on Car Rental & Hotels • Special Pricing on Experian Vehicle History Reports • Prescription drug discount • Special Pricing on the NADA Guide Book
• • •
Monthly Subscription to NIADA’s Used Car Dealer Yearly National Market Report Dealership Guides: Dealer’s Guide to the Used Car Rule, Audit Technique Guide, and many more (available online)
As long as this list is, it is not complete because we are adding new benefits all the time that will bring additional value to your membership. And, this list is just the nonnonsense, tangible benefits that you receive. If I were to try to explain all of the other benefits, that can’t be found in a coupon book, I would need more room than this column can provide. My suggestions is to turn to page 13, complete the membership application and return it now so you can get in on the action. If you are still on the fence about joining FIADA, let me leave you with one last thought. The level of professionalism FIADA brings to your dealership is unmatched. If you want to build credibility, be viewed as a legitimate and ethical used car dealer, have a better relationship with your lenders and financers, and rise above any negative perceptions that come along with our line of work, then FIADA membership is a must. Now, how can you say no to that?
... E S I H C . N Y A R R O T F C E A H T U T THE F O H T I W
®
Stand Tall
• A Recognized Brand Name & Image • Advertising, Sales & Marketing Support • A Business Development Center • A Website Solution & Promotion • Nationally Branded Products & Services
PAID ADVERTISING
Don’t Wait For The Factory To Decide. Why... Thrifty Car Sales? Why... Thrifty Car Rental? • Nationally Recognized Brand • Worldwide Reservation Services • Volume Purchasing Programs • Financial Analysis & Review Services • Advertising, Sales & Marketing Support
The Franchise... 1-877-BUY-BLUE Without The Factory. [ 1-877-289-2583 ]
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© 2010 Thrifty Car Sales, Inc. Thrifty Car Sales is a trademark of Thrifty, Inc. All rights reserved. 5310 E. 31st Street, Tulsa, OK 74135. This advertisement is not an offer to sell in any registration state until the offering has been exempted from the requirements of registration or declared effective by such state. NEW YORK: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. MNREG#F-5378. • © 2010 Thrifty Rent-A-Car System, Inc. Thrifty Car Sales is a trademark of Thrifty, Inc. 5310 E. 31st Street, PO Box 35250, Tulsa, OK 74135. Phone 918.665.3930. All rights reserved. Thrifty features quality products of Chrysler, Dodge, Jeep® and other fine cars. This advertisement is not an offering. An offering can only be made by a prospectus filed with the Department of Law of the State of New York. This information is in no way intended to encourage the breach of any contractual obligations you my have. MN REP. NO. F-1308
PAID ADVERTISING www.fiada.com
March 2010 — Independent Dealer —
EXECUTIVE DIREC TOR’S MESSAGE
Defining Your Character BY STE VE JORDAN Steve with his wife, Tatia on date night.
I
n 2004 when I opened the J.D. Byrider & CNAC Finance operation here in Tallahassee, the first thing I did was join the FIADA, write a check for membership and put my decal on the front door. I had a lot to prove to my business and banking partners and everyone on dealer row who was watching to see what the “new kid in town” was made of. With dozens of priorities to juggle, establishing my reputation was something I could not afford to fumble. I took every opportunity I could find to
and that my company was going to stand behind every transaction, but I needed others to know that. I wanted the Association that has been serving Florida’s auto dealers since 1940 standing behind me. We sold cars immediately and with each new account, we had a chance to underscore our character and our reputation began to speak for itself. As weeks turned into years, I realized that committing to the FIADA Code of Ethics and running a business of quality character is hard work, especially when customers can be unreasonable. But I had to press on and do what was right. It was during this time, I began to rely on the relationships I developed through the FIADA to foster the camaraderie and accountability that helped me understand that I wasn’t alone and other dealers faced similar issues.
“Who you are as a person matters more than the things you have and what you do for a living.” build a reputation of quality, honesty, and credibility, so committing to the FIADA Code of Ethics as a new member was an easy first step. For independent dealers in Florida, the FIADA Code of Ethics provides a level of accountability that simply translates into good business practices. The first line of the Code of Ethics reads:
“Members have a general duty of integrity, honor and fair dealings toward the general public.”
When I first read this I thought, “Doesn’t everyone operate their business this way?” I knew I was going to run my business with integrity, honesty, and fairness
— Independent Dealer — March 2010
As you know, running a dealership can feel like being on a treadmill and its tough to stay balanced and grounded. There are plenty of daily distractions that can cause us to lose sight of what’s really important. There were many times I did, but over the years I found that these four principles really helped keep me focused. •
Doing the right thing isn’t always the easiest choice. Every time you have a chance to serve a customer, it can either be a stepping stone or a stumbling block. Knowing there’s a vast network
www.fiada.com
of FIADA dealers across Florida committed to this concept puts a great level of accountability in place that lets you know we are all in this together. •
•
Who you are as a person matters more than the things you have and what you do for a living. No one understands this better than John Cousins, FIADA’s Quality Dealer of the Year for 2009-2010. John has established himself as a community and industry leader by using his dealership as a platform for his overwhelming contributions to those in need. John understands that leadership is more about influence than position. You can become great by making mistakes. Lord knows I’ve made my share of them. Adapting your policies and procedures by learning from your mistakes is one way to go from good to great. We’ve all heard the saying, what matters most is not how many times you get knocked down, but how many times you get back up. Get back up and rally, focusing on the future.
•
Take frequent inventory of your habits. You are the sum total of your habits and your habits develop your character. Your character will ultimately define you. Don’t be defined by bad habits. Think about what you do on a daily basis and how it affects those around you. Don’t be afraid to make the necessary changes. Be the one to change before someone else is forced to ask you to change.
Stay committed to doing what’s right and focus on what’s important and eventually good things will happen, if they aren’t already. If you’re just starting out or been in business a while, take the time and review the complete FIADA Code of Ethics at www.fiada.com and take stock of how your business is being defined. Don’t be afraid to ask yourself the hard questions, make changes and look towards the future. What are we without our character? William Bennett said, “It is our character that supports the promise of our future.” I say we rise above with FIADA, double-down on character of quality and prepare for a bright future.
Consider this your inviation to attend the FIADA Board of Directors Meeting. All dealers are welcome to attend. April 23 and 24, 2010 The Shores Resort and Spa, Daytona Beach Shores, FL
Sign up now at www.FIADA.com to register for the FREE Dealer Training and Town Hall Meeting on April 23!
Go to www.FIADA.com for more information and a schedule of events. To make hotel reservations, call 386-767-7350 for and ask for the FIADA group rate. www.fiada.com
Florida Independent Automobile Dealers Association 1840 Fiddler Court • Tallahassee, FL 32308 (850) 385-2712 • (800) 237-0448 www.FIADA.com
March 2010 — Independent Dealer —
T E C H N I C A L LY S P E A K I N G
Why Business Plans For Dealers Are Necessary BY LARRY PE TERS AND S. ALLEN MONELLO, D. P. A .
W
orking with dealers for as long as we have, we learned early on that most dealers who fail did not have a business plan. Conversely, businesses we see that thrive and are very successful all had business plans and a strategy for success. Unfortunately for some dealers, having a business plan was just something for the “big guys,” and for other dealers, well, they never even thought about it. Everything they needed to know was in their “head”. At least that’s what they thought. The fact is clear that every business needs a business plan. It’s not something just for new businesses. For dealers already in business, it’s never too late to put together a plan. As a matter of fact it may save a dealer from failing.
unique requirements that set them apart from the rest of the business.
Some of you may be asking “why have a business plan”? or “what’s the value in having a business plan”? These are excellent questions. A business plan is a guide or road map for the business to follow in carrying out its business purpose. It helps the dealer know how they are doing. It tells them where they have been and where they want to go. It provides operational and financial benchmarks that will tell the dealer how well they are doing and if any changes need to be made to their business model. Equally important, we know the business plan also provides answers upfront to questions the dealer might otherwise ask later on.
I. The Business A. Description of business B. Marketing C. Competition D. Operating procedures
Although there are many parts to a business plan, one of the first parts of the plan is to describe the business. An excellent question to ask is: “What business am I in?” Most dealers would say: “selling cars”. But do you do any financing in house (buy-here-pay-here), have a related finance company, rent or lease vehicles, and deal with other lenders? Do you provide auto repairs for outside customers? Do you sell parts or other products, such as tires and wheels, or audio components? Or do you sell insurance products such as service agreements, credit life or GAP? If so, you are actually in a number of businesses, not just selling cars. Each of these different “business components” may have their own licensing, education requirements, tax reporting requirements or some other 10 — Independent Dealer — March 2010
A business plan can help a dealer clearly identify what the dealer is doing and how to approach achieving success as he or she moves forward. We’ve seen a number of dealers who had to make serious changes to their business plan as a result of the past year’s economic challenges. That’s the value of a plan. It’s a gauge as to how well you are doing in every aspect of the business. The following is a list of topics a typical business plan would include and address: Elements of a typical Business Plan 1. Cover sheet 3. Table of Contents 2. Statement of purpose E. Personnel F. Business insurance G. Financial data
II. Financial Data A. Loan applications B. Capital equipment and supply list C. Balance sheet D. Breakeven analysis E. • Pro-forma income projections (profit & loss statements) • Three-year summary • Detail by month, first year • Detail by quarters, second and third years • Assumptions upon which projections were based F. Pro-forma cash flow (Follow guidelines for letter E.) Now honestly, could you keep all of that kind of information in your head and keep up with today’s economy, competition and more educated customer base without a plan? Larry Peters and Allen Monello are managing partners in the Automotive Industry Center for Excellence, LLC (AICE) and consultants to FIADA. If you have questions related to compliance issues or of a technical nature, you can reach them at (800) 237-0448. www.fiada.com
PAID ADVERTISING
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March 2010 — Independent Dealer — 11
Top Reasons Independent Dealers Belong to FIADA Auction Buy/Sell Fee Discounts • FIADA’s relationship with auctions provides you with over $1,175 in discounts on auction buy / sell fees. That’s $1,175 in immediate cash flow savings. • In addition, you will receive over $6,000 in discounts on advertising, software, education, forms, shipping, office supplies and more.
Help Your Business Win
• As a member, you’re part of an association that’s 70 years old. So, even if you’re just starting out, you don’t have to look like it. You will have access to the FIADA logo for use on your print and electronic communications. You will also receive the FIADA Code of Ethics Certificate and a FIADA Member Decal to display in your store location.
• Pick up new ideas and network with other dealers and industry service providers at our annual convention and quarterly board meetings. • Need to contact another dealer in another part of the state or across the country? With FIADA’s online member directory you can contact dealers across the state for assistance. Have a customer that moved across the country? Through our affiliation with NIADA, FIADA is a part of a nationwide network of independent dealers that can assist you with finding your customers and your cars. • FIADA Members save on the DMV required online continuing education course. Simply login with your Member ID and password to save $30. • By donating to the Political Action Committee you can directly support candidates and elected officials in state offices who have a positive relationship with the automobile industry.
Industry Compliance Made Simple
• Keep abreast of the latest rules and regulations affecting Florida’s Independent Dealer. FIADA
publishes Independent Dealer magazine to keep you up-to-date. Also as late breaking changes occur, FIADA will keep you updated via email blasts.
• Stay compliant with new federal regulations. FIADA provides the tools and resources necessary for dealers to comply with the Red Flags Rule and Safeguards Rule. • FIADA members also have access to information regarding other compliance issues such as sales tax, titles and registrations. • Have questions about the automobile industry? As an FIADA member, help is always just a phone call away. FIADA members have unlimited access to our in-house expertise to give assistance to common problems that can be cumbersome and technical.
Annual Dues: $300
12 — Independent Dealer — March 2010
www.fiada.com
INDEPENDENT DEALER MAGAZINE
www.fiada.com
March 2010 — Independent Dealer — 13
By Christy Taylor
I
f you have ever wished there was a way to compete with franchise dealers for their used car sales, then keep reading. A new program available to Florida Independent Automobile Dealers Association members will allow you to offer Certified Pre-Owned vehicles to customers, offering them additional value and peace-of-mind. In the past, franchise dealers have had exclusive rights to manufacturer Certified Pre-Owned programs for the cars they sell on their used car lots. Now, for the first time, independents have the same opportunity to inspect, certify and stand behind the cars they sell with a Certified Pre-Owned program developed by the National Independent Automobile Dealers Association and administered by National Auto Care (NAC). Certified Pre-Owned vehicles are very attractive to today’s car shopper. A 2009 consumer marketing research study performed by AutoTrader. com showed that certified inventory turns twice as fast and stays on the lot an average of 27 days compared to 55 days for uncertified vehicles. Customers also perceive an added value from a vehicle that has been deemed certified and may be willing to pay up to $3,000 more for the 14 — Independent Dealer — March 2010
status, feeling it ensures a better vehicle with fewer problems.
The new NIADA Certified Pre-Owned program was designed exclusively for independent dealers.
NIADA realized the value a Certified Pre-Owned program would have for independent dealers and began putting the program together. After research and review of the top companies in the industry, they chose to partner with National Auto Care (NAC) for the company’s stability, integrity and reputation as a trusted leader. Backed by American Bankers Insurance Company, an “A” rated carrier with over $20 billion in assets, NAC has sold over 1 million service contracts and processed over $25 million in claims in 2008. The NIADA Certified program is exclusively offered to members. As an FIADA member, dealers have automatic membership in NIADA and would be able to participate in the program. After membership, the next step is to create a dealer profile and complete an NAC Dealer Agreement. There is no initial cost or application fees for the program so no money is due up front. Vehicles are then inspected by the dealer’s service department, an auction or an NAC recognized third-party facility. The checklist for the inspection examines details of seven major areas of the
vehicle, including: under hood, under vehicle, tires, brakes, suspension, road test and accessories. Once the vehicle passes inspection, with repairs if needed, it can be advertised as “certified” and offered with a limited warranty. Dealers choose up front which coverage they would like to extend, including 3 month/3,000 miles, 6 month/6,000 miles or 12 month/12,000 miles. The coverage is comprehensive and does not stop at the Powertrain, but includes some electrical components, ABS and even non-mechanical services like 24/7 roadside assistance and tire and wheel/battery service. There is no deductible for the limited warranty. The list of vehicles covered by the Certified Pre-Owned program is Continued on page 16. www.fiada.com
March 2010 — Independent Dealer — 15
PAID ADVERTISING
www.fiada.com
CERTIFIED Continued from Page 14.
Dealer Benefits: Certified vehices have a higher perceived value with consumers. Consumers are familiar with the word “certified” from factory marketing efforts, and look for it when purchasing a car. Increases lender acceptance because lenders like better value. Increases customer satisfaction because inspected cars have fewer issues and the customer feels better about the purchase. Increases your F&I opportunities. You can use a hanger like this to advertise your certified vehicles.
fairly extensive, and includes most current-year models (2000 to current year) with less than 100,000 miles. There are some exlusions such as cargo vans or commercially used vehices. The exclusions are put in place to give the program credibility and in some cases to reduce risk. When the car is sold, the dealer sends NAC the funds for the warranty, copy of the certification and if needed a copy of the repair order either by mail or electronically through an online submission. The process is simple and straightforward and can produce some real benefits to the dealer. Higher resale values, quicker turnaround and even making it easier to find lending options are some of the perks. The nice thing about participating in the NIADA Certified program allows dealers to provide this desired service in an easy, affordable way and have the credibility of NIADA and NAC to back it up. “This new CPO program allows independent dealers of all sizes to offer their customers certified highquality vehicles,” Kyle Reese, NIADA Certified account manager said. “It allows dealers to get higher resale value, raise profits and finally compete with factory certification programs.” Right now, certain internet marketing websites such as AutoTrader.com and Cars. com will not allow independent dealers to advertise the NIADA Certified program on their site listings, because of an agreement the websites have with vehicle manufacturers. Dealers are free, however, to advertise vehicles as Certified Pre-Owned on their own websites and in their
16 — Independent Dealer — March 2010
marketing efforts. Some key words to include when advertising are fully inspected, repaired and guaranteed. The limited warranty associated with NIADA Certified is not purchased separately, but should be built-in to the price of the car. Dealers do have the option to sell additional warranty coverage and service contracts through NAC, or another provider they currenty using, which would be added onto the vehicle’s price. If the NAC additional warranty or service contract is sold with the deal, then the cost of the NIADA Certified limited warranty will be waived. Customers need to be clear on the difference, however, between the NIADA Certified limited warranty and any additional coverage they purchase. It would be a wise step to make sure you are familiar with the federal rules and regulations involved with written warranties, before you begin advertising. The guidelines that are in place are very specific to what is required and can result in hefty fees if not followed. First and foremost, an FTC Used Car Buyer’s Guide must be posted before the vehicle is offered for sale in a prominent and conspicuous way that is clearly readable. (See A Dealer’s Guide in The Toolbox section at www.KeithWhann. com for further explanation.) The buyer is also to receive a copy of the guide at the time of sale. In addition, the Magnuson-Moss Warranty Act covers written warranties and requires manufacturers and sellers of consumer products to provide consumers with detailed information about the warranty coverage of their products. A service contract is sold in addition to a warranty and needs to be advertised that way to the customer. A service contract puts in writing what services relating to the maintenance and repair of the vehicle will be Continued on page 18. www.fiada.com
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CERTIFIED Continued from Page 16. performed over a fixed period of time or for a specified duration.
Here’s a brief overview of what has to be inspected to be certified.
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The NIADA Certified Pre-Owned Program is still in the beginning stages and has only been rolled out in certain regions so far. Florida was among the first to hear about the program when it was rolled out at the TARP Seminar Series in Orlando as part of the January FIADA Board of Directors meeting. Reese says even though formal presentations have not yet been made, dealers from all over the country are hearing of the program and signing up everyday. To keep up with the demand, NAC has created a website at www. NIADAcertified.com that is dedicated to the NIADA Certified program. If you are interested in participating, you may also call 800-840-2567.
18 — Independent Dealer — March 2010
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March 2010 â&#x20AC;&#x201D; Independent Dealer â&#x20AC;&#x201D; 19
New Federal Database Provides Low-Cost Vehicle History Reports
A
new national database containing automobile information from states, insurance carriers and the salvage industry is now available to the public. The National Motor Vehicle Title Information System (NMVTIS) was designed to improve the tracking of vehicles as they move from state to state, and to allow consumers the ability to check a vehicle’s history prior to making a purchase. In addition to being a valuable fraud-prevention tool, the information is especially useful to towing operators, dealers, recyclers and insurers. These reports allow businesses and potential buyers to make sure a car has not been branded, totaled or rebuilt without their knowledge. NMVTIS is operated on behalf of the US Department of Justice by
the American Association of Motor Vehicle Administrators. Reports are available for a nominal fee via approved providers. Auto Data Direct, Inc. (ADD) is able to offer Multi-State Vehicle History Reports, which include all available NMVTIS information from a vehicle’s current title, any brands applied to the title, its previous title history, and reported odometer readings. ADD’s reports also contain any “salvage” or a total loss declarations from insurance companies or self-insuring organizations, and any reports from auto recyclers who may have handled the vehicle. According to the Department of Justice, 78% of national DMV data is in the NMVTIS system, as well as over 10.6 million reports from the insurance and salvage industry. No national database of this type has
GPS
existed before, and the information it contains can be tremendously valuable to consumers and businesses alike. For entities that require title information on impounded, auctioned or traded-in vehicles, a NMVTIS search can point to the most recent state of title and provide state contacts from whom to request lien holder information. For insurance carriers, NMVTIS searches help verify that a vehicle title has not been branded before issuing a policy. To check a vehicle history before auctioning a vehicle, taking a tradein, buying a rebuilder or issuing a policy, an ADD NMVTIS report is a cost-effective solution. ADD account holders can access NMVTIS information at a reduced per-inquiry cost. Please contact ADD at info@ add123.com or toll-free at 866-9233123 for more information.
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March 2010 â&#x20AC;&#x201D; Independent Dealer â&#x20AC;&#x201D; 21
L E G I S L AT I V E U P D AT E
Watch Your Email BY JOHN GRANT, FIADA LOBBYIST
A
s I write this column, the legislature is hours away from gaveling down the opening of the 2010 regular session of The Florida Legislature. Barring any extended session, the legislature will adjourn on April 30. During that nine week period, legislators will consider nearly five thousand bills and hundreds of amendments, as well as writing a budget in excess of sixty billion dollars.
I also encourage you to spend a day or two in Tallahassee visiting with legislators during the session. You can e-mail me at John.Grant@johngrant.net and I will be glad to provide you with calendars, agendas and answer any questions you may have.
With a projected budget deficit in excess of three billion dollars and a pledge of House and Senate leaders to not pass new taxes, the focus will be on cutting services and increasing fees.
One of the advantages of a business association like FIADA is that there is strength in numbers, but only if the numbers speak up. So as we go through this session, we invite you to be the local voice to your hometown legislators.
FIADA’s legislative agenda is: • The passage of Senate Bill 1182 and House Bill 631 • Rolling back of the fee increases passed in the waning hours of last year’s session • Opposing any fee increases or legislation that would be detrimental to our businesses. By the time you receive this issue either on line or in your mail box, the legislative session will be nearly half over and in our desire to keep you up to date, we will resort to extensive use of e-mailing to let you know what is happening, but to use each member as our front line local lobbyists. As bills come before committees, expect to see e-mails from FIADA to update you and to ask you to call local legislators. The legislative session moves at a fast pace and often there is only a day or so of warning that items are placed on the agenda, so please act quickly when asked to do so. 22 — Independent Dealer — March 2010
Also, as a service to our members, we plan to send out a frequent legislative update so you can be informed on the current week’s activities in the capitol. When you get these updates in your inbox, be prepared to act! To reach our legislative goals, we will all need to do our part and call, educate and encourage our elected officals on the issues most important to us. Flex your legislative muscle and help make it happen.
Easy to Use - All you need is a computer with Internet access. Convenient - You will have up to 90 days to take the course at your convenience. Immediate - You do not have to wait to receive your certificate in the mail. At the end of the online course, you can print your continuing education certificate to provide to the DMV. Accurate Information - Our online course was developed by former DMV officials and has undergone extensive peer review.
Continuing Education Courses $39.95/Members Available at www.FIADA.com $65.95/Non-Members Go online to www.fiada.com/education or call our office at (888) 587-0004 for more details.
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March 2010 — Independent Dealer — 23
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“ GoldStar GPS – don’t do business without them!”
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Register now for the convention at www.fiada.com! You can log on to www.FIADA.com and register yourself, and your group, for the convention. To reserve space as an exhibitor or sponsor, log on to www.FIADA.com or call (800) 237-0448.
Make Your Hotel Reservations Now! Space is limited, so call today. Tradewinds Reservations: 800.808.9833 Room Rate: $149/night (plus tax) You must mention you are part of the FIADA Annual Convention to receive group rate. 26 â&#x20AC;&#x201D; Independent Dealer â&#x20AC;&#x201D; March 2010
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March 2010 â&#x20AC;&#x201D; Independent Dealer â&#x20AC;&#x201D; 27
MEMBER NEWS &
NOTES
Check your email for dmv renewal notices The Division of Motor Vehicles began emailing dealer license renewal notices to independent, wholesale and salvage dealers and to auctions on February 12, 2010. The department is utilizing email instead of USPS to communicate with dealers across the state. This cost effective measure saved tax payers approximately $5,000 this renewal period. If you have an email address on file with the department and did not receive a renewal packet, please contact your local DMV Regional Office to obtain an application and update your email address. If you do not have an email address, there are several free services available. The DMV encourages dealers to obtain an email address so they may receive future communication from the department. Charleston auto auction wins with markone
Charleston Auto Auction continues to provide award winning service to its valued institutional accounts. On Friday, February 19th, in a pre-sale presentation, Charleston Auto Auction was Chris Wise, National Remarketing awarded 2009 National Manager, Jason Ghioto, Collection/ Remarketing Manager for MarkOne Auction of the Year for Financial, and Keith Lelux, Chief MarkOne Financial. Operating Officer for American Auto Jason Ghioto, Collection/Remarketing Manager for MarkOne Financial was on hand to present the award. “Overall service, and of course retention are the two top categories we base auction performance. Charleston Auto Auction and its staff consistently out-perform the competition. When it comes down to it, our cars just bring more money at Charleston Auto Auction,” Ghioto says. “This is a great day for Charleston Auto Auction. We are very pleased that we have been able to build brand awareness with MarkOne’s portfolio. Whenever a MarkOne unit runs through our arena, you are sure to find a group of dealers bidding on it,” Charleston Auto Auction’s National Remarketing Manager Chris Wise said. Send us your news, announcements and photos to memberservices@fiada.com. 28 — Independent Dealer — March 2010
INTERNET EXTRAS Independent dealer gets a virtual facelift Just when you thought Independent Dealer could not get any better, the updated electronic platform for viewing it online provides a cool new way to get your information. To see the new virtual magazine, log on to www.fiada.com and click on Independent Dealer magazine. Our goal in publishing Florida’s Independent Dealer magazine is to provide you with helpful and timely information to benefit you and your team as much as possible. As an FIADA member, if you have employees or team members that you’d like for us to include in the e-distribution of our monthly magazine, we can help. Simply send the email addresses of those you’d like for us to include to info@fiada. com and we’ll add them to the distribution list under your membership. It’s that simple. Use your legislative voice FIADA has made it very easy for you to participate in the legsilative process. Go to the homepage at www.fiada.com and you will find links to valuable tools like reading copy on FIADA’s Senate Bill 1182 and House Bill 631, Talking Points for building support and a link that will allow you to find contact information for your elected official. FTC Extends Enforcement Deadline for Identity Theft Red Flags Rule At the request of Members of Congress, the Federal Trade Commission is delaying enforcement of the “Red Flags” Rule until June 1, 2010, for financial institutions and creditors subject to enforcement by the FTC. The Commission previously delayed the enforcement of the Rule for entities under its jurisdiction until Nov. 1, 2009. You can read more about the new deadline by following the News & Events link at www.fiada.com. www.fiada.com
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