March 2012 Independent Dealer Magazine by FIADA

SINCE 1940

March 2012

www.FIADA.com

A Publication of the Florida Independent Automobile Dealers Association

Information and Insight for Florida Used Car Dealers

From discounts to free legal advice, there are many reasons why you should be a member. If you’re still not sure about membership, this is the issue for you.

FULTON, MO PERMIT NO. 38

PA I D PRST STD U.S. POSTAGE

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The new FIADA.com is up and running. Get a preview on page 6. March 2012 — Independent Dealer — 1

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Dealer Independent

MAILING ADDRESS TELEPHONE FAX WEBSITE EXECUTIVE COMMITTEE

1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 (800) 237-0448 (850) 385-3251 www.FIADA.com Brandi Noegel President Christopher Leedom Senior Vice President Jim Kagiliery Chairman of the Board Dino Mercurio Secretary John Cousins Treasurer David Cox, CMD Regional Vice President Frank Fuzy Regional Vice President George Hickey Regional Vice President Steve Marbais, CMD Regional Vice President Paul Matton Regional Vice President

FIADA STAFF

Lisette Mariner Executive Director Terry Myers Educational Instructor Sarah Langley Administrative Director Alex Romans Education Director Leah Nash Membership Coordinator Christy Taylor Editorial/Advertising

Contents March 2012

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 Brandi Noegel

Executive Director’s Message Lisette Mariner

5 Things You Can Do With a QR Code Use quick response codes to interact with your customers on and off the lot.

What’s In It For You? Leah Nash

Your FIADA Membership Saves When you add up all the discounts, benefits and free services that come along with FIADA you find out membership pays for itself.

Member News New, Renewing and Rejoining Members

Beat The CE Clock Time is running out to get your mandatory Continuing Education credits. Take advantage of FIADA’s online CE Course that is free for members.

Legislative Earthquake? Scrutiny into Buy-Here, Pay-Here practices in California has resulted in proposed legislation to regulate the industry. Will Florida feel the effect next?

Legislative Update: The Honorable John Grant and Jennifer Lux

Save the Date: FIADA Board Meeting & Dealer Training Next stop: St. Petersburg. You won’t want to miss it.

FIADA 2012 Annual Convention & Expo Preview! Make your plans to attend the main event, coming in October.

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.

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March 2012 — Independent Dealer — 3

FROM THE PRESIDENT

Why Are You a FIADA Member? BY BRANDI NOEGEL, FIADA PRESIDENT

s Forrest Gump’s momma says “Life is like a box of chocolates. You never know what you’re gonna get.” I believe this is so true in our business; you just never know what is coming your way. Was Forrest thinking outside the box? The 2012 legislative year is ending in Florida and our Lobbyist, John Grant, has spent the session staying on top of things for us. With amendments being drafted and changed it is always quite busy at the end of the session. John, the Legislative Committee and the FIADA staff have worked hard on issues like the “Lease Here/ Pay Here” section and others of interest to dealers. Read more about our Legislative activity on page 22. Business as usual will never be the same. Take a good look around--this is the new normal. It has been a tough recession for everyone, business and consumers alike. We learned that you must have high standards of ethics, there is no room for shortcuts and to do the right thing even if it’s hard or painful. As business owners you need to keep on top of all the legal requirements that could potentially affect your business. The FIADA takes the initiative to participate in the legislative process before an idea becomes law giving you protection. Did you remember that your Dealer License is due now? Here’s a quick checklist of what you will need to renew: Renewal Application HSMV 86720, Original Dealer Bond, Garage Liability Insurance Certificate, FIADA Continuing Education Course Certificate, copy of Division of Corporations showing business name (www.sunbiz.org) and your check for $75.00 for one location. Do not wait until the last minute to get this done because the Department is very busy!

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Don’t forget to mark your calendar for the next FIADA Town Hall Education Seminar on Friday April 20 in St. Pete. With the board meeting to follow on April 21 at the Hilton Bayfront in St. Pete plan to spend your weekend gaining knowledge, making a difference in the industry and connecting with colleagues. Look for more information in this magazine or at the FIADA web site. On the cover of this issue we asked, “why are you a FIADA member.” That should be an easy question. We all have our own reasons of why we became members and why we continue to stay members. Sometimes we can physically see the benefits of our membership, like when we get our coupon book in the mail after renewing our membership. Sometimes we can’t see it, like our Lobbyist working the halls of the Capitol to inform Senators and Representatives about how their votes will affect our industry. Tangible or intangible FIADA member benefits are real and they are essential to the success of your business. I challenge you to take a tally of what your membership benefits are and how they have affected you. Start by thumbing through the pages of this magazine. You will find articles that will provide new information and ideas for your business, as well as reminders about upcoming FIADA events and programs that can do the same if you take advantage of them. I trust that after you read this issue there will be no doubt about what the FIADA is and why you belong. Carol (Brandi) Noegel FIADA President

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EXPAND YOUR SEARCH

National Sales Calendar on ADESA.com

Looking for inventory? Visit ADESA.com/nationalsalescalendar. Easily search sale dates and auction locations for your favorite sellers—now including fleet, lease and bank consignors, along with OEM, factory and captive-finance sale information.

Contact your nearest ADESA location:

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ADESA Jacksonville 904-764-1004 Sale day: Thursday

ADESA Ocala 352-351-5100 Sale day: Friday

ADESA Sarasota 941-756-8478 Sale day: Friday

ADESA Tampa 813-620-3600 Sale day: Monday

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March 2012 — Independent Dealer — 5

EXECUTIVE DIREC TOR’S MESSAGE

FIADA.com New and Improved BY LISET TE MARINER, EXECUTIVE DIREC TOR

f you haven’t been to FIADA.com this month, take a moment to visit today. You’ll see a brand new look and some exciting new features. As a member of FIADA you’ll have access to the latest news, resources, complimentary CE, and much more. In the coming months we will activate new features on the site such as blogs, a career center and online communities.

Members with an email address on file were sent a request to log in and establish your username and password. Once you click on the link provided in the email, you simply need to go to “Information and Settings” and choose “Edit Bio”. With a few clicks you can create your profile. Keep in mind for the directory we post your business address, phone number and website address for consumers and members to have an easy point of reference to FIADA members. Though members can message each other privately in the members’ only section and your email is never publicly viewed unless you want it to be public. For your privacy, FIADA does not share email addresses. You also have the option to turn other information off so that it cannot be viewed within the member community and publically by simply clicking on the lock next to the information in your profile. Please take a few minutes to complete the information in your profile. This information helps us better serve you.

Setting Up Your FIADA.com Account 1. Click on the link in your “Request to Log In “ Email from FIADA, sent to all members with email addresses on file. You will be directed to the “Manage Profile” page on the new site. 2. Under “Information and Settings” choose “Edit Bio”

3. Update your information. If you wish not to share your information in the member community or public web site, click the lock to turn off viewing.

After you complete your profile, take a minute to look around. The new site has so much to offer. We have online renewal, a resource library, an online store, a member directory, a dealer service provider directory, archived magazines, and even a way to make contributions to the FIADA PAC at any time. If you have any questions please contact the FIADA office at 800.237.0448 or email at Lisette@fiada.com. Enjoy the new site and may we all have the luck of the Irish this month! 6 — Independent Dealer — March 2012

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March 2012 — Independent Dealer — 7

website, to connect with potential customers and capture this growing market.

BUSINESS CARDS A business card is a practical way to share your contact information with another customer, but in the digital age they are potentially outdated. Chances are when a customer is ready to contact you about buying a car, they will have already lost your business card and will have to look for alternative ways to contact you. Make it easy by including a QR code on your business card that provides the customer with contact information that can be easily imported into the phone’s contacts. Most QR code generators offer the choice of a vCard, which is the file format standard for electronic business cards.

Things You Can Do With A

QR Code

Forget Facebook. Move over twitter. The latest digital craze is integrating QR Codes into your marketing strategy. BY CHRIST Y TAYLOR

M statistics.

obile technology has taken over our world. Don’t believe me? Check out these

Smartphone ownership has reached 43% of all U.S. mobile subscribers, according to a survey conducted by Nielsen in 2011. The same survey reports that 62% of 25 to 34-year-old mobile users own and use a smartphone. Mobile marketing experts mobiThinking reported that 8 trillion text messages were sent in 2011. The same group also suggests that 71 percent of smartphone users that see a TV, press or online ad do a mobile search to find out more about the company or the product. With such a large market ready and willing to get connected, it is impor8 — Independent Dealer — March 2012

tant for auto dealers to start thinking about their mobile strategy. One of the easiest, and least expensive ways to enter the digital scene is through the use of QR codes. The QR, a.k.a. Quick-Response code, originated in Japan and recently have started to catch on with much excitement in the US. Thumb through a newspaper, flip through a magazine or browse the aisle at the grocery store and you will find these digitized boxes waiting to be scanned and take you to a whole new level of interactive shopping. Who is looking for information more than a car shopper? By using QR codes, car dealers can give customers the information they are looking for and steer them to their dealership through the interactive power of the smartphone. Below are five ways you can use QR codes, along with your

WINDOW STICKERS The majority of 21st century car dealers have a website, and on that website they have a link for every car currently in inventory. Either create a unique QR code for each car’s landing page on your website, or a code that will take the customer to your main inventory page, put it on a flyer that says “Find Out More About This Car” and you’ve given both serious buyers and window-shoppers an easy way to engage with your dealership.

NEWSPAPER ADVERTISING It can be tough to stand out in the crowded Cars for Sale section of your local newspaper or classifieds magazine. Be the first dealer in your area to utilize QR codes and you will immediately get noticed. Use individual codes for cars featured in your inventory, or a code that links customers to your YouTube video that tours this week’s specials.

DIRECT MAILERS You’re announcing the Grand Opening of your second location www.fiada.com

with a direct mail piece to targeted neighborhoods in your area. Include a QR code that links to a map or one that lands on an About Us page of your website that explains who you are and how long you’ve been in business. Maximize the impact of any direct mail piece with a QR code as consumers are more likely to scan it and learn about who you are than call for more information.

There are many options for creating QR codes which include both free and subscription applications. Here are a few of the most popular, free, QR generators on the web today: KAYWA QR-CODE (QRCODE.KAYWA.COM) Just type in your URL, text or phone number, choose the size code you want to create and generate! Save the code to use in your materials, or just copy and paste. ZEBRA CROSSING (ZXING.APPSPOT.COM/GENERATOR/) Allows you to create code options for a variety of files including calendar events and electronic contact information. QR STUFF (QRSTUFF.COM) Multiple options for code information (including links to social media pages) and allows you to customize the code’s color and output type. GOOGLE URL SHORETNER (GOO.GL) If you already have a Google account, using the URL Shortner will allow you to track how your code is being used. Sign in to Google, and head to the goo.gl page. Type in the URL you want to use, and click Shorten. Copy the generated code and paste it into a new tab in your web browser then type .qr at the end. A QR code graphic will appear on the page for you to save or copy. To track it, return to the same goo.gl page and you’ll find a list of your saved codes along with details on how many times, when and where it was scanned.

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SIGNAGE Add a QR code to the signage at your dealership that brings customers to your webpage. It provides the perfect opportunity for a customer who is just “passing by” to immediately check you out rather than waiting until they get to a computer. Make sure the page your QR anchors includes customer testimonials and reviews that build your reputation and rapport with potential shoppers.

Popular QR Code Generators

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March 2012 — Independent Dealer — 9

BY LEAH NASH, MEMBERSHIP COORDINATOR

Savings, Savings, Savings

hen joining FIADA, new members and renewing members receive an official FIADA book of savings in the mail. The savings found in this book alone adds up to $7,000 in value, with over $1,000 alone in auction discounts! But, that’s just the start of the savings! Making FIADA Work For You. Take a look at the savings book and you will see there are many opportunities to make your FIADA membership work for you. Find out if you are maximizing your member benefits by answering a few questions: Do You Buy/Sell at Auctions? FIADA has 31 member auctions throughout Florida and 17 provide auction discounts through FIADA—JUST FOR JOINING. All together, FIADA is providing you with an annual savings of over $1000 in discounts to auctions that you are already going to. Why not take advantage of it? Are You Using Dealer Software? FIADA provides discounts with dealer software companies such as Auction123, Autoshopper.com and Florida Dealer Consultants. FIADA also has a partnership with Wayne Reaves Software. One of the things that I hear from dealers most often is that “they don’t have time.” Using effective dealer software is one easy way to clear up some of your time. If you’re going to use it anyway, you may as well get a dealer discount through FIADA.

Do You Need To Pull Credit Reports and/or Use Electronic Temp Tag Services? I’m guessing that your answer is “YES.” FIADA provides member discounts for these services, including some FREE services. Have I changed your point of view? If you are already using these services for your dealership, you may as well get a discount through FIADA, and take advantage of other discounts in advertising, promotional products, websites, dealer supplies, parts, legal assistance, vehicle buying services, tax/accounting services, shipping, payments/ collections, service contracts, training and twenty groups – again, services that you are probably already using for the success of your dealership. And don’t forget – not only do you receive FIADA member discounts, you also receive NIADA member discounts such as savings on T-Mobile phone service, car rentals and hotels, Experian vehicle history reports, prescription drug discounts and special pricing on NADA Guide Book. Let’s Do The Math. FIADA and NIADA are providing you with thousands of dollars in member discounts alone, not including the member benefits such as online resources, lobbyists in Tallahassee and D.C. (protecting your rights!), networking opportunities, publications (such as the Independent Dealer), technical assistance and more! The annual membership fee for FIADA is $325… how can you NOT become a member?

Visit FIADA.com and click on “Join FIADA” to become a member or renew your membership. If you do so after reading this article, type Leah Nash in the Sponsor Name section of the online application. You may also contact Leah Nash at leah@fiada.com to join or if you need membership recruitment assistance. If you would like to receive FIADA Facebook updates, please like the FIADA page at facebook.com/FLIndAutoDealersAssoc. 10 — Independent Dealer — March 2012

www.fiada.com

Put your dealership logo on your temporary tag! In today’s competitive marketplace, you need every edge you can get. What better way to accomplish this than advertising your dealership on a vehicle you just sold?

SAMPLE SAMPLE

Auto Data Direct’s popular ADDTag temporary tags allow you to include your dealership logo on the tag, at no additional cost! Why not advertise your sales? ADDTag print-on-demand temporary tags prominently display your dealership logo, not the name of your temporary tag provider! To take advantage of this great value-added, no-cost service, simply upload your logo to ADDTag one time, and from then on each ADDTag temporary tag you print will include your logo in the top left corner. As always with ADDTag, any laser printer will do.

ADDTag offers dealers: • Best pricing • Live customer support • Innovative cost-saving products • State Fee Calculator • Web access to 25 state motor vehicle databases Come and join the thousands of Florida dealers who already benefit from ADDTag’s time- and cost-saving services. To sign up, contact our live customer service reps at 866-923-3123 or email us at info@add123.com.

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Real Service, Real-Time, Real Easy! March 2012 — Independent Dealer — 11

FIADA Membership can really add up! Don’t believe us? Check out this list and you’ll see how membership pays for itself. Coupons/Discounts Between a coupon book worth over $7,000 in savings and a variety of member-only discounts with preferred vendors, there are plenty of ways to save. Legal Consultation and Advice When you’ve got a legal question, who you gonna call? FIADA, of course. Thanks to a partnership with FIADA’s General Counsel Rob Sickles, members have access to complimentary legal consultation when they need it the most. Free Continuing Education Earning CE Credit is a requirement to renew your dealer’s license and FIADA has made it easy by offering FREE online continuing education courses for members and their staff. Just log on and start learning.

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Legislative Advocacy Do you appreciate the fact that there is no used car lemon law in Florida? Then thank the FIADA. Always on call in Tallahassee, FIADA Lobbyists look out for the best interest of dealers to make sure your business is protected. Networking Opportunities When you surround yourself with successful people, it makes it easier to become successful. Attending FIADA Board Meetings, Annual Conventions and Town Hall Meetings gives you the chance to rub shoulders with the “best of the best,” heed advice from industry veterans, and walk away with new ideas guaranteed to help your business succeed.

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March 2012 — Independent Dealer — 13

MEMBERSHIP NEWS

New Members ABSOLUTE AUTO SALES OF PORT CHARLOTTE LLC Port Charlotte, FL Donna Purdy Sponsor: Terry Myers BLESSED AUTO OUTLET, LLC Orlando, FL Oscar Rodriguez Sponsor: Leah Nash CELEBRITY AUTO GROUP Sarasota, FL Larry Leszcysnski Sponsor: FIADA CLEARVIEW AUTO SALES Odessa, FL Paul Gordon Sponsor: Leah Nash DEALERBUILT Mason City, IA John Hosmer Sponsor: FIADA

F E B R UA R Y 2 0 1 2 WHEELER CYCLES LLC Fruitland Park, FL Robert Rhodes Sponsor: Terry Myers

HD AUTOS LLC Orlando, FL Dhruvam Bhaichandeen Sponsor: FIADA

PLANAS MOTOR GROUP, LLC Florida City, FL Juan Planas Sponsor: FIADA

JIMMIE VICKERS, INC. Merritt Island, FL Buddy Vickers Sponsor: Leah Nash

SOUTHEAST BROKERAGE Winter Park, FL Richard Vimmerstadt Sponsor: FIADA

JOHN’S AUTO PARTS OF BUNNELL Bunnell, FL Natalie Allman Sponsor: FIADA

Rejoining Members

MARIO’S AUTO CENTER Sarasota, FL Mariv Chwojko Sponsor: Terry Myers MOTORSPORTS INTERNATIONAL MARKETING Naples, FL Harold Hendricks Sponsor: Terry Myers

Renewing Members

F E B R UA R Y 2 0 1 2

ALL MOTORS PLUS Dover, FL Eric Kolm

SERIES 9 MOTORSPORTS, LLC Sanford, FL John Corville

AUTO COUNTRY, LLC Brooksville, FL David Roy

SUPER CARS AUTO SALES, INC. Bonita Springs, FL Anthony Tumbarello

AUTOMOTIVE CREDIT CORPORATION (ACC) Southfield, MI Daniel Boes

TOP LINE AUTO SALES, INC. DBA PALM TREE AUTO Stuart, FL Lisa Compagno

BROTHERS AUTO SALES, INC. Palm Harbor, FL Frank Schiano

F E B R UA R Y 2 0 1 2

30+ Year Members ABC Autos, Inc. Glenn Harris Motors, Inc. 20+ Year Members LeBo Auto Brokers M&W Auto Sstibales Marbais Enterprises, Inc. Ray’s Motor Sales, Inc. Fett Motors, Inc. 10+ Year Members Auction Insurance Agency Auto Credit BC Motor Company, Inc. Car-Time, Inc. Dixie Custom Automotive, LLC Economy Motors Family Auto Mart, Inc. Galeria Auto Mart, Inc. Gene Gorman’s Auto Sales Northside Motors, Inc. Northwest Florida Auto Sales Prestige Auto Sales Quincy Auto Mart, Inc. Richard’s Car Company, Inc. Wilson Software Corp. Under 10 Year Members ActionAssets.com Albanese Group Motors AMG Collection Inc. Appearance Plus Auto Sales dba C&C Cars Aubrie Nelson Auto Sales

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Tampa, FL Kissimmee, FL Cape Coral, FL Panama City, FL Ocoee, FL Lake Wales, FL Pinellas Park, FL Birmingham, AL Ft. Myers, FL West Palm Beach, FL Bunnell, FL St. Augustine, FL Live Oak, FL Melbourne, FL Apopka, FL Punta Gorda, FL Lake City, FL Ft. Walton Beach, FL Ocala, FL Quincy, FL Jacksonville, FL Englewood, FL Delray Beach, FL Fort Lauderdale, FL Boca Raton, FL Pinellas Park, FL Altha, FL

Big Boys Toys Florida, LLC Panama City Beach, FL Bill Owens Auto Sales Avon Park, FL BullDog Auto Sales Vero Beach, FL Carnopolis Inc. Orlando, FL Cassat Auto Sales Jacksonville, FL Causeway Equipment Sales Tampa, FL Centerstate Auto Sales Inc. Kissimmee, FL Cochran Motorsports, Inc. Hastings, FL Coral Group, LLC Miami, FL Dealership Capital Partners, Inc. Macon, GA Diamond II Auto Sales, Inc. Orlando, FL EJ’s Quality Auto Sales Jacksonville, FL Elite Autos Port Orange, FL Finance Auto Sales Tampa, FL Florida Auto Auction Properties dba ABC Orlando A/A Longwood, FL Florida Autosport, Inc. Tallahassee, FL Foreman Motors, Inc. Melbourne, FL Freeland Moore dba Harbor Nissan Port Charlotte, FL GMAC Smart Auction Chuluota, FL Gooding & Company, Inc. Jacksonville, FL Gulfstream Luxury Vehicles, LLC Largo, FL Instant Wheels Used Cars Jacksonville, FL Lane Mashburn Inc. dba Amelia Auto Mart Fernandina Beach, FL Outdoor Recreation World, Inc. Panama City, FL Park Avenue Motors New Smyrna Beach, FL Ponce Used Cars, Inc. Fort Myers, FL Purvis, Gray and Company, LLP Gainesville, FL The Connectyion Motors, Inc. Miami, FL The Garage Inc. Miami, FL Ultimate Image Auto, Inc. Tallahassee, FL

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March 2012 — Independent Dealer — 15

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Proposed legislation in California could have a ripple-effect from coast to coast. How a case of misperception has the potential to impact reality. BY ROB SICKLES, FIADA GENERAL COUNSEL to the dealer and not regulated by the state. This Bill also seeks to limit contact with references after the sale, seeks to regulate the method of payments that Buy-Here, Pay-Here dealers can accept, including prohibiting cash payments and, most importantly, the use of starter interrupts or GPS systems.

he Buy-Here, Pay-Here industry, and to some degree, the automotive industry as a whole, has become increasingly concerned about a series of laws that have been introduced in the California Legislature. These laws seek to regulate multiple aspects of the day to day operations of Buy-Here, Pay-Here dealers in California. The trio of Bills has been attributed to public outcry, and perhaps an attention grab by politicians following a multi-part investigative article published in the Los Angeles Times focusing on the Buy-Here, PayHere industry. Importantly, this series of articles has been picked up by other major newspapers across the country, including newspapers in Florida. The articles were written by Ken Bensinger, who has also authored follow-

18 — Independent Dealer — March 2012

up articles thoroughly discussing the regulations that California is attempting to adopt. While I have not heard of any legislation in Florida mirroring these California provisions, there is always the chance a Florida legislator will try to follow California’s lead. The California legislation is outlined below. Assembly Bill 1447 seeks to regulate three parts of the Buy-Here, Pay-Here business. First, the statute would require dealers to disclose the selling cost of vehicles on the vehicles themselves. It is claimed that this practice would prevent dealers from setting prices at the negotiating table based upon what buyers could afford. Obviously, the issue of whether dealers wish to list a “selling price” on a vehicle is a business practice that is best left up

Subsequently, California Senate Bill 956, was introduced by state Senator Lieu. Among the requirements of Senator Lieu’s Bill is that Buy-Here, Pay-Here dealers be required to obtain a California finance lender’s license, capping interest rates at 17.25% and creating regulations regarding repossessions of vehicles which include mandatory grace periods and provisions that would make it easier for buyers to reinstate repossessed vehicles. Interestingly, Senator Lieu’s website includes a link to a Los Angeles Times article published in January 2012 by Jim Puzzanghera titled “Consumer Bureau Chief Looking into Buy Here Pay Here Auto Dealers.” The article claims that Richard Cordray, the head of the new Federal Consumer Financial Protection Bureau plans to look Continued on Page 20. www.fiada.com

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LEGISLATIVE EARTHQUAKE continued from Page 18.

into the Buy-Here, Pay-Here industry. The article includes quotes attributed to Mr. Cordray such as “we are looking at that space,” and “we are concerned about it.” The same article also claims that Mr. Cordray had read the Los Angeles Times investigative article regarding the Buy-Here, Pay-Here industry and that Mr. Cordray had been advised of problems with such dealers by Holly Petraeus, who heads the Bureau’s Office of Service Member Affairs. Mr. Cordray is reported to have said “she has kind of taught me how it’s affecting some of these young service members. They get behind in debt and that debt – if they can’t manage it – potentially affects security clearances and the trajectory of their entire career.” Lastly, there is another California Assembly Bill, AB-1534, which would require dealers to list a value for all vehicles on their lots based on a third party valuation source such as Kelley Blue Book or NADA. Proponents of this Bill say it simply provides knowledge to buyers as it does not place any restrictions on the amounts for which vehicles can be sold. How do these bills relate to misinformation? Anyone with industry knowledge will recognize that the examples discussed in Mr. Bensinger’s article are extreme. The vast majority of buy here pay here dealers would never engage in the types of conduct discussed in the article. It is this “misinformation” that has fueled the undercurrent of

The FIADA does its best to help educate dealers, regulators and legislators on what the current laws are and how these laws would prevent abuses if properly enforced. increasing the regulation of the Buy¬Here, Pay-Here industry. It is in these types of instances that FIADA looks out for the entire automotive industry within Florida. The FIADA does its best to help educate dealers, regulators and legislators on what the current laws are and how these laws would prevent abuses if properly enforced. I imagine the same would hold true in California. For example, the idea that dealers should have to list the “selling” price on vehicles is both unnecessary and potentially detrimental to consumers. If such a law were enacted in Florida, a Florida dealer would not be able to negotiate a reduced price of a vehicle with a customer. A listed price would be the listed price. No other industry has a law requiring such conduct. If the customer liked a particular vehicle, but did not like an accessory on the vehicle or found a scratch on the vehicle that would require a repair and the customer asked for a price reduction to offset his or her dissatisfaction, a dealer would be unable to do that. More importantly, there are laws currently in place to curb the increase in a price of a vehicle where financing is

involved. The Federal Truth in Lending Act requires that any differences between the cash price of the vehicle and the credit price of the vehicle be disclosed as a finance charge. Additional regulation is not necessary. This is just one example, but when no one speaks out on these issues, regulators and legislators often times do not recognize that these protections exist and all that is necessary is tighter enforcement of existing laws. Instead, new regulations are suggested. Whatever the ultimate outcome is to the California legislative process, it will not have direct impact on Florida dealers. The bigger issue seems to be with the Federal Consumer Financial Protection Bureau and the potential for it to follow California’s lead. The thought that this heightened scrutiny could be the result of an article published by one newspaper is concerning. An attempt to craft a universal federal solution to problems that may not exist in other states is even more alarming. Hopefully, the message will get out and misinformation will not cause increased regulation where it isn’t necessary.

Robert E. Sickles is a partner in the Tampa office of Hinshaw & Culbertson LLP. He is the outside general counsel to the Florida Independent Auto Dealers Association and can be reached at (800) 237-0448.

FIADA is your number one source for advice and information. Technical questions, legal questions, regulatory questions...bring them on! Our network of industry veterans, professionals and consultants can help you find the answers you are looking for. The best part is, it’s free to FIADA members. Call us anytime! 800.237.0448 20 — Independent Dealer — March 2012

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February 2012 — Independent Dealer — 21

L E G I S L AT I V E U P D AT E

One Down and Another One To Go BY HONORABLE JOHN GRANT and JENNIFER LUX, FIADA LEGISLATIVE ADVOCATES

n this day of modernized, computerized, hand held communication, even the morning paper is a history lesson of things past. It happens today and we hear or see it tonight and by the time we read tomorrow’s paper it is old news. Such is the challenge of the print media, especially in a fast changing political world. That makes this annual, end of session, column especially difficult. As I write, we have two weeks left in this year’s legislative session, but by the time this column hits your lot, the session will be over. We will have a more detailed session review in next month’s column. But for this column, we will focus on what’s on everyone’s mind …. the 2012 election. In Tallahassee, most of what is going to happen has happened and it looks like they will go home on time. That’s no surprise since legislators cannot collect campaign contributions while the legislature is in session and qualification for the election is only ninety days away. All want to begin their campaign in earnest.

The big legislative issue this year, one that was a lobbyists dream with many millions spent lobbying for or against, was the proposed expansion of casino gambling. The issue died on the vine a couple of weeks back. The big job and one every legislator or wannabee legislator has been most focused on is reapportionment. With all the population increase over the past ten years, Florida gained two additional seats in Congress and every congressional seat changed boundary lines and in two cases even put members of Congress running against each other. Those lines, as well as, the legislative ones are still under review by the Supreme Court. 22 — Independent Dealer — March 2012

The number of citizens in each legislative seat also increased due to the state population increase. Now for the first time the number of citizens residing in a state senate seat will be almost as big as those in a congressional seat. That makes legislative campaigns more costly to run and also stretches a legislator’s day timer with more constituent appearances. A lot of legislators also ended up in the same district with a fellow member. During the eighties and nineties, the population growth was more to the South. At one time, one out of three members of the legislature was from Dade, Broward or Palm Beach counties, and they had tremendous political clout. Now the relative population has migrated to the I-4 corridor and that results not only in a district line shift, but also a political power migration. This year’s election will truly put Florida in the national political spotlight. It is an off year election for most statewide office holders and county constitutional offices as well. Only one statewide office will be on the ballot and that is the election of one of our two United States senators. But the granddaddy of all elections will be Florida’s role in the election for President of the United States, arguably the most powerful political position on the face of the Earth. The way the Electoral College is structured, not every vote in every state counts. So, each party chooses to ignore those states it cannot lose and those it cannot win and then both parties concentrate on those states that could go either way. Florida is one of them and unquestionably the biggest. Millions will be spent by both parties and one party even picked Florida for its convention. Continued on Page 24. www.fiada.com

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LEGISLATIVE UPDATE continued from Page 22.

It takes 270 electoral votes to win the White House and Florida has 29 of them, more than 10% and far more than any other swing state. As of this writing all generic polls show the nominees of each party in a statistical dead heat in Florida and the consensus is that whichever candidate wins Florida wins the White House. Florida is today seen as perhaps the ultimate swing state, its population a microcosm of the country as a whole. This reputation was enhanced by the closeness of the 2000 elec-

tion, where it took a month of legal wrangling to decide the winner. In 2008, the pendulum swung Democratic when Barack Obama bested John McCain by a 51% to 48% margin. So, sit back, buckle your seat belt and get ready for an eleven month wild ride and the super bowl of all elections this November. Who knows who will be visiting your lot asking for a vote and while they are there be sure to sell them a car!

PAC CONTRIBUTIONS

Use this form to make your contribution (made payable to FIADA-PAC), and mail to the FIADA office at 1840 Fiddler Court, Tallahassee, FL, 32808 Enclosed is my check for:

CONTRIBUTOR’S NAME:

q $1,000 DEALERSHIP:

q $500

q ______________

q $250

q $100

q Monthly Contribution ___________

ADDRESS

All dealers are invited to attend FIADA Board meetings. Go to www.FIADA.com to see updated schedules and to register.

As always, FIADA Town Hall Meetings are open to all dealers. Join us in St. Pete for an informative talk about issues and topics relating to used car dealers. Go to www.FIADA.com to RSVP now for this seminar.

Host Hotel: Hilton St. Petersburg Bayfront Group Rate: $159/night plus tax Call 800.944.5500 and mention FIADA to reserve a room by March 23. 24 — Independent Dealer — March 2012

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March 2011 2012 — Independent Dealer — 25 December

INDUSTRY NEWS Gas Prices May Drive Consumer’s Purchase Decisions in 2012 Gas prices have risen nearly 20 cents in the last month, according to AAA. TrueCar.com, a website that provides valuation information to consumers, analyzed its user data and expects a surge in sales of small and subcompact cars in the coming months as consumers opt to purchase more fuel-efficient vehicles due to inflation at the fuel pump. The combined market share for small and subcompact cars was 22 percent in February 2012, the highest since March 2011, according to TrueCar.com estimates, due to the rise in gas prices. In the fourth quarter of 2011, the market share was 17.3 percent. Sales of most fuelefficient vehicles are at their highest levels in a year, with models like the Ford Focus and Honda Civic carrying the retail success for their respective brands. Most small and subcompact vehicles are expected to post year-over-year gains of 20 percent compared to the industry average of 9.6 percent in February 2012. Last year, from February 2011 to March 2011, gas prices increased nearly 36 cents per gallon, from $3.26 to $3.62 respectively. During the same time period, there was a shift in consumer car buying behavior as the segment market share for both the subcompact and small car

To Facebook or Not to Facebook? Though social media sites like Facebook have sparked quite a buzz in the industry, with dealership business pages popping up all over the Web, this particular digital tool may not be helping rooftop’s as much as they think, according to a recent study by AutoTrader.com. According to the study results, only 7 percent of used-car buyers use Facebook to shop for a car, and 14 percent of new-car buyers use the site while in the market for a vehicle. Why aren’t people using Facebook to shop? Mainly because that’s not what Facebook is designed for. “The site is designed to help people connect with friends and relatives. It’s really not conducive to commerce. That’s why there are so few examples of companies in any industry that have had success selling products on Facebook,” Jeff Perkins, director of customer marketing at AutoTrader.com said. Yet, rather than dump the idea all together, Perkins says there are benefits to a dealership Facebook page. Using it for reputation management, search engine optimization and staying connected with buyers postpurchase are all excellent ways to utilize this medium. —Source: Auto Remarketing 26 — Independent Dealer — March 2012

Segment Share: February 2011 to March 2011 Type of car

Feb. 2011

March 2011

Change

Subcompact

3.4%

4.0%

0.6%

Small Car

17.1%

18.1%

1.0%

Midsize SUV

16.0%

14.8%

-1.2%

Large SUV

4.1%

3.5%

-0.6%

Large Truck

11.3%

10.7%

-0.6%

segments had the highest increase, of 0.6 and 1.0 percent respectively. The segment with the biggest decline was midsize SUVs at 1.2 percent while the large SUV and large truck segments tied with a drop of 0.6 percent. Interestingly, in March 2011, the small car segment also had the highest market share in 2011. As consumers start to hit the dealership lot for more fuel-efficient vehicles, the day supply of these vehicles will drop. In January 2012, subcompact cars had a 35-day supply, while small cars were at 53 days. –Source: TrueCar.com

Nominate a Dealership For the NIADA/Manheim 2012 National Community Service Award Independent dealerships across the nation contribute everyday to their communities, but often go unrecognized for their community support. While many participate through special projects, others provide sponsorships, financial contributions, or lead innovative community improvement activities. The NIADA/Manheim National Community Service Award was created to honor those independent dealerships. Nominees must be members in good standing of the National Independent Automobile Dealers Association and nominations may be made by the dealership, a community business or organization, the state independent automobile dealers association, a community member or even a loyal customer. The winner will receive a $5,000 check made payable to the dealership’s chosen charity. Nominations must be made by April 1, 2012. Read the contest rules and download a nomination form online at www.NIADA.com/community_award.php. www.fiada.com

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2011-2012 FIADA EXECUTIVE COMMITTEE:

BRANDI NOEGEL President Noegelâ&#x20AC;&#x2122;s Auto Sales Starke, FL (904) 964-6461

CHRISTOPHER LEEDOM Senior Vice President AutoMaxx Sarasota, FL (941) 309-1111

DAVID COX, CMD Regional Vice President Cox Motors, L.L.C. Lakeland, FL (863) 686-9300

FRANK FUZY Regional Vice President Century Motors of S. FL Pompano Beach, FL (954) 785-0369

JIM KAGILIERY Chairman of the Board J.D. Byrider Jacksonville, FL (904) 400-6190

DINO MERCURIO Secretary Independent Credit, Inc. West Palm Beach, FL (561) 686-8673

JOHN COUSINS Treasurer Southeast Car Agency Gainesville, FL (352) 377-7787

STEVE MARBAIS GEORGE HICKEY Regional Vice President Regional Vice President Marbais Enterprises, Inc. Bond Auto Sales Ocoee, FL Tampa, FL (407) 877-7422 (813) 238-7478

PAUL MATTON Regional Vice President Park Auto Mall Pinellas Park, FL (727) 639-1112

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