March 2014 issue by FIADA

SINCE 1940

March 2014

www.FIADA.com

A Publication of the Florida Independent Automobile Dealers Association

Information and Insight for Florida Used Car Dealers

CONTINUING EDUCATION It’s FREE for FIADA members! Be sure to sign up for your class today and claim your credits.

FULTON, MO PERMIT NO. 38

PA I D PRST STD U.S. POSTAGE

www.fiada.com

March 2014 — Independent Dealer — 1

PAID ADVERTISING

Dealer Independent

MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308 TELEPHONE (850) 385-2712 (800) 237-0448 FAX (850) 385-3251 WEBSITE www.FIADA.com EXECUTIVE COMMITTEE Dino Mercurio President Jim Winterick, Sr. Senior Vice President Christopher Leedom Chairman of the Board Phil Risley Secretary Paul Matton Treasurer Lisa Compagno Regional Vice President Frank Fuzy Regional Vice President George Hickey Regional Vice President Steve Marbais, CMD Regional Vice President Govinda Romero Regional Vice President FIADA STAFF Lisette Mariner Executive Director Terry Myers Educational Instructor Sarah Langley Administrative Director Nicole Lee Development Administrator Amelia Tillman Administrative Assistant 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

Contents March 2014

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 Dino Mercurio

Executive Director’s Message Lisette Mariner

Back to the Basics Terry Myers compares sales and use tax requirements.

Member News

Keys to Insurance FIADA Insurance Agent of Record Kevin O’Connor, Dealers Insurance Services

It’s Free! Take advantage of your valuable FIADA member benefit: free CE courses!

Legislative Update Spotlighting Surrender Stop Supporters Rep. Broxson and Sen. Brandes

Is There a Ticking Time Bomb on Your Lot? Could cars and parts found on your lot and in your inventory come back to harm you if found defective?

Making a Floor Plan Work for You A basic overview of what floor plans are and how you can use them.

It’s Renewal Time for Dealers! The Department of Motor Vehicles shares important information and reminders about license renewals.

Industry News

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

May 9, 2014 • 10:00am - 2:00pm This FREE event, held each quarter and open to all dealers (members and non-members) is one of the most popular benefits FIADA provides. Go online to www.FIADA.com and register now to attend. March 2014 — Independent Dealer — 3

FROM THE PRESIDENT

You Can Say That Again: FIADA is Your Source for Information and Education BY DINO MERCURIO, FIADA PRESIDENT

wrote a message last month that talked about how our industry is changing, how competition is getting more fierce and how if you do not pay attention to it all you will quickly find yourself in trouble, both from a business perspective and possibly a legal one. As this issue of Independent Dealer will be reaching the entire state, including dealers who are not yet FIADA members, I thought it was important to share it with you again. Dealers are competing on a daily basis for more than just customers; they are competing for inventory, floor plans, financing, credit lines, and capable staff that can keep everything moving forward. Every phase of the process demands your constant attention. And just when you think you have all the bases covered where you can compete with any dealer in your area, you have to worry about being compliant! This is where you can have some of your biggest problems, because compliance is a whole new animal these days. We are all used to dealing with our State Agencies like the Division of Motorist Services (DMS, formerly DHSMV), Department of Revenue (DOR), Department of Financial Services (DFS), etc, but the Federal Government has recently gotten very involved in looking at and increasing regulation in the automobile industry. The Consumer Finance Protection Bureau (CFPB) is very well staffed, very well funded, and has extremely broad power—more than any Government Agency has ever had. They are on a mission to make sure the car business does not go down the road that the home mortgage business went a few years back. And if you think it does not affect you, you are wrong! Most everyone is of the belief that the CFPB has no jurisdiction over them because they are not a Buy Here - Pay Here dealer or do not have a related finance company, but that is far from the truth. If you are involved, in any way, with a customer getting financing, whether it is with you, a sub prime lender, indirect bank lender, credit union, etc., you can be subject to their rules and regulations (which, by the way, are very vague at this time). But, even if you don’t get involved in 4 — Independent Dealer — March 2014

financing, you may still be on the hook. They are looking for any and all types consumer damage, especially in the area of discrimination, and have the ability to direct other agencies like the Federal Trade Commission, Department of Justice, and Attorney General’s office to spearhead investigations. This is just one of many prime examples where being a member of the FIADA can benefit you greatly. The FIADA is constantly gathering the latest news and developments, and getting this information out to members through this magazine, postings on the website (www.fiada.com), and even mass email when the need arises. As another added benefit, when you are a member of the FIADA, you automatically become a member of the NIADA, which is the National Association protecting dealer rights on the Federal level. They also mail out a very informative magazine, have a website (www.niada. com), and have been very involved in discussions with the CFPB in Washington, DC to make sure the industry is being treated fairly. In addition to the magazines, web sites and emails, the FIADA is approved by the State of Florida as a provider of Continuing Education and holds classes around the state you can attend. If you’re not the classroom type, you can even take the course online—for free if you are a member! If you are already a member of the FIADA, Thank You! If not, I urge you to join today. Like I said earlier, the only way to survive and be profitable in today’s world is to be informed and educated, and your best source to keep you informed and educated, and help guide you through the myriad of laws, rules, and regulations, on both the State and Federal levels, is the FIADA! Dino Mercurio FIADA President www.fiada.com

We’re hiring your new F&I manager. Find out when they start. Visit newFandImanager.com

Protective Asset Protection has been serving auto dealers of all sizes for 50 years. We know your job is tough – that’s why we’re in the process of getting you some help with your finance and insurance solutions. So, be on the lookout for your new addition. We’ll be making the big announcement soon.

PAID ADVERTISING

Protect Tomorrow. Embrace Today.™ Vehicle Protection Plans I GAP Coverage I Credit Insurance I Limited Warranty Products Dealer Participation Programs I F&I Training I Advanced F&I Technology

Contact Protective’s Florida representative, Chris Behrens at 866 452 7335 A “National Corporate Partner” has met stringent NIADA criteria demonstrating that it can provide valuable products and services to NIADA members. No legal partnership has been created by the granting of this status, but NIADA does receive compensation from Protective. Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products are backed by Western General Insurance Company and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

EXECUTIVE DIREC TOR’S MESSAGE

Auctions and Dealers Make a Perfect Pair BY LISET TE MARINER, EXECUTIVE DIREC TOR

hank you to all the auctions that choose to join FIADA, support the industry and give back. Our auction partners have given us over $4,400 worth of auction coupons exclusively for FIADA members. Other ways auctions support the Association are through participation in our convention, town hall meetings and member drives. Recently, I was at the Insurance Auto Auction in Orlando with board member, Jeff Zupec. Jeff was gracious enough to host us and provide information to dealers at the auction. He even paid for a dealer’s membership that day! Last month we had the opportunity to be at Adesa Tampa and YourAuction in St. Petersburg. We had the opportunity to catch up with long time members and establish new relationships with dealers in the area. Thanks to all of our gracious auction hosts! Our member auctions provide tremendous support to the Association and the industry. Many of our pre-license classes are held at auctions. These partnerships enable us

Insurance Auto Auction Orlando’s Jeff Zupec (left) pays for Tom Kerper’s (right) FIADA membership.

to provide enhanced benefits to dealers. Watch your email for upcoming events, like the town hall and board meeting coming up in May in Jupiter. Until then, we’ll see you at the auction!

OUR AUCTION PARTNERS ADESA A/A of Jacksonville ADESA A/A of Sarasota Adesa A/A of Tampa America’s Auto Auction Jacksonville Americas Auto Auction Pensacola Carmax Auctions Charleston Auto Auction Cocoa Auto Dealers Exchange Copart, Inc. Dealers Auto Auction 6 — Independent Dealer — March 2014

Florida Auto Auction Properties dba ABC Orlando Auction Insurance Auto Auction Orlando Insurance Auto Auctions Jacksonville Manheim Daytona Beach Manheim Fort Myers Manheim Orlando Manheim Palm Beach Manheim Pensacola Manheim Tampa www.fiada.com

Y 28 DA T FLOA

SIMUL C AVAIL AST ABLE

check out our websites:

WWW.YOURAUCTIONTAMPABAY.COM 1-800-675-4444 WWW.YOURAUCTIONFTMYERS.COM 1-866-924-7070 WWW.YOURAUCTIONPASCO.COM 1-855-255-4111 WWW.YOURMOBILEAUCTION.COM 1-866-924-7070

PAID ADVERTISING

BACK TO THE BASICS

What’s the Use…TAX? Understanding how to appropriately apply sales tax and use tax will keep you compliant and out-of-trouble in an audit. By TERRY MYERS

se Tax is applied to those items the dealership uses and consumes in their business. It is applied the same as Sales Tax. In an audit, the dealership may be required to provide the last three years’ income tax returns. Schedule C is where items are listed to reduce taxable items at the federal level. The auditor for the Florida Department of Revenue, upon review of the Schedule C may ask for proof that the dealership paid sales tax on those listed items used and consumed in the business. Items bought for use by the dealership

should have sales tax on the invoice, unless the dealership mistakenly had the resale certificate applied. When else might something like that happen? Ever buy something over the Internet and not be charged sales tax by the vendor? Are you familiar with Costco or Sam’s Club? Yes? Do they sell and install tires and batteries? Yes. You get a business account that allows you to buy bulk items at discount prices, which you will use and consume in your business. You may give them your resale certificate for those times you may need to have items installed, such as tires and /or batteries, on/in vehicles you plan to resell. Scenario: You bring a car back from the auction to place on your lot for sale. The tires are so bad, you are afraid they may blow out during a test drive and a lawsuit might follow. You take the car to Costco or Sam’s Club to get new tires and a battery installed before you place it on the lot for sale. When you get there, get three shopping carts. Why? In the first shopping cart you place the tires and battery you will have them install on and in the vehicle you will be reselling. In the second shopping cart you

8 — Independent Dealer — March 2014

place dealership items you plan to use and consume. Examples might be a new desk, an ergonomically correct chair, a refrigerator, water, soft drinks, a flat screen TV to hook up to the new computer and access Simulcast, etc. It’s a really big cart. The third cart is because you may be getting a ‘honeydo list’ call from home. When you arrive at the checkout with cart number one, tell the cashier, “these tires and this battery will be installed by your people on a vehicle I will be reselling from my lot. Do not charge me any sales tax.” They will verify you have a Resale Certificate on file. The receipt will have no sales tax. You will collect sales tax when you sell the vehicle to the end user. You will need the receipt for federal and state reports and audits. Pay for this with your business credit card. When you arrive at the checkout with cart number two say, “these items will be used and consumed by my dealership. Be certain to charge the appropriate sales tax.” You will receive a receipt showing the appropriate sales tax added. You also, need this for federal and sales tax reports and audits. Pay for this with a business credit card. When you arrive at the checkout with cart number three say, “these are personal items. Be certain to charge the appropriate sales tax.” You will receive a receipt with the appropriate sales tax charged. You pay for this with your personal credit card. A word of caution: the vendor is not responsible to know what should or should not be charged sales tax. It is the responsibility of the dealer to make certain they inform the vendor what is and is not sales taxable and provide supporting documentation in the event of an audit. Continued on Page 10. www.fiada.com

In today’s competitive marketplace, independent dealers need every edge they can get. Speed and access to the right information can make all the difference at the finish line. Auto Data Direct (ADD) offers Florida dealers a singlesource, web-based solution to work smarter, faster, and more efficiently. ADD’s dealer tools put real-time data, paperless lien processing, print-on-demand tags and more right at your fingertips, giving you that competitive edge.

PAID ADVERTISING

Take advantage of ADD’s great dealer tools and services: • ADDTag Print-on-Demand Temporary Tags and Tag Transfers • Electronic Lien and Title (ELT) Services • DMV123 Real-Time Owner and Lienholder Search • Florida Fee Calculator • Florida Driver License Histories • Dealer Management System (DMS) integration • Federal Total Loss/Salvage Vehicle Reporting (NMVTIS)

Visit ADD123.com and see why thousands of Florida dealers use ADD’s time- and cost-saving services. ADD is an FIADA Preferred Partner Use promo code FIADAELT at sign up and receive free activation.

1.866.923.3123

SALES AND USE TAX continued from Page 8.

What happens if the item came to the dealership from outside Florida by the Internet or was physically purchased in another state and transported in? Anything you purchase from outside and bring or have shipped into Florida within six-months of the purchase is taxable at Florida’s rate. If the seller does not have Nexus (physical presence) in Florida, they are not required to collect Florida sales tax. It is then, the responsibility of the dealer to report and pay the tax due direct to the Florida Department of Revenue. Example One: On the dealer’s monthly DR-15R report, Line B, Column 3 the dealer would insert the taxable amount, say $1,000 for a computer. In Column 4 the dealer would insert the applicable six percent plus county

tax amount. If in a one percent county that would be $70 (six percent plus one percent).

local Department of Revenue office, review with your accountant, CPA and/or attorney.

Example two: The dealer bought the computer in Alabama and paid their two percent sales tax. On the DR15R, Line B, Section C, he would still place the $1,000 taxable amount and in Column 4 he would place $50, because he will be credited the $20 paid in that other state. To support this, the receipt needs to be available for the audit.

Laws are written for us to benefit us. Of course, if we don’t choose to learn what they are and how to apply them to our benefit, then…..what’s the use?

The above six-month rule is similar to the one that applies to vehicles brought into Florida for registration within six-months of purchase. If you are not certain if any of this is applicable to you or would like further clarification, contact your

Articles are the opinion of the author and are not intended to be regulatory, 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. Copyright 2014, Terry LB Myers, author, lecturer, FIADA instructor, FADS owner/instructor.

MEMBERSHIP NEWS

New Members 3-D Motors, Inc. Tampa, Florida Al Kadesky Sponsor: George Hickey

Dashub, LLC West Babylon, New York Max Kane Sponsor: Amelia Tillman

Affordable Salvage Apopka, Florida Tom Kerper Sponsor: IAA/Jeff Zupec

DealerSocket San Clemente, California Adam Daniel Sponsor: Sarah Langley

America Choice RV Ocala, Florida Scott Gencarelli Sponsor: FIADA.com

Eric Van Eaton Longwood, Florida Eric Van Eaton Sponsor: Terry Myers

Hector Ariza Orlando, Florida Sponsor: Terry Myers

Global Auto Showroom LLC Bradenton, Florida Nick Metz Sponsor: Kevin Scott

Autosports LLC Casselberry, Florida Sid Owner Rously Bercy Coral Springs, Florida Sponsor: Kevin Scott Bonita Auto Center Inc. Bonita Springs, Florida Joseph Bonita Auto Center Inc. Sponsor: Amelia Tillman

Rejoining Members

F E B R UA R Y 2 0 1 4

Gorilla Custom Motors, Inc. Boca Raton, Florida Linda Woronoff Sponsor: Web High Performance Auto Sales & Motorsport, LLC. Lakeland, Florida Kelvin Guzman Sponsor: Terry Myers

10 — Independent Dealer — March 2014

Ian’s Auto Exports Inc. dba Ebenzz Motors West Palm Beach, Florida Linda L Smith Sponsor: Amelia Tillman J S Automart Inc. Lakewell, Florida John McCullough Sponsor: Nicole Lee McClellan Five, LLC Monticello, Florida Charles McClellan Sponsor: DHSMV Compliance Officer PNP Enterprises Palm Bay, Florida Peter Pepe Sponsor: Amelia Tillman Primo Motor Company Windermere, Florida Vlad Primachenko Sponsor: Kevin Scott Violante Auto World Brandon, Florida Esteban Violante

FEBRUARY 2014

Best Deals on Wheels, LLC Blountstown, Florida Joel Edwards Sponsor: Sarah Langley

Lake Park Auto Brokers Lake Park, Florida Howard Bauer Sponsor: Amelia Tillman

Brick City Auto Sales Inc Ocala, Florida Richard Jackson Sponsor: Kevin Scott

Miami Motors Inc. Miami, Florida Nick Rose Sponsor: Amelia Tillman | Lisette Mariner

Credit Acceptance Corporation Treasure Island, Florida Blair Witter Sponsor: Amelia Tillman Custom Wheels Pompano Beach, Florida Joseph Pappalardo Discount Auto Sales of Miami Miami, Florida Zainul Maniar Sponsor: Sarah Langley J.D. Byrider, Tallahassee Jacksonville, Florida Jim Kagiliery Sponsor: Sarah Langley

Mikes Cars & Trucks Port Orange, Florida Mike Schumann Sponsor: Nicole Lee Spartan Financial Partners Bradenton, Florida Kenneth Lawson Sponsor: Sarah Langley Trust Motors LLC. Jacksonville, Florida Khaled Akkoub Sponsor: Amelia Tillman Yoder Auto Sales, Inc. Sarasota, Florida Tiffany Yoder Sponsor: Amelia Tillman

www.fiada.com

PAID ADVERTISING PAID ADVERTISING

KEYS TO INSURANCE KEYS TO INSURANCE

Insurance Predictions Understanding the for the New Year Dealer Bond BY KEVIN O’CONNOR, INSURANCE AGENT OF RECORD

E I

very year around this time dealers in Florida start withthe marketing campaigns offering amgetting excitedinundated to announce resurrection of “Keys to dealer bonds. It’s license renewal time and as we Insurance,” a column I wrote for many years in thisall know, providing the state with a $25,000 bond is The magazine throughout the 1990s and surety up until 2005. simply of those evils. columnone touched onnecessary the subjects relating to the insurance

needs of the non-franchised motor vehicle dealer. It’s surprising to me how many dealers I talk to don’t understand the bond does and why the state requires Starting thiswhat month, we will be doing a quarterly edition it. Let me try to answer some of the most common questions. of the column. We plan to discuss subjects such as risk management ideas to help reduce your insurance costs and What is a Motor Vehicle Dealerchanges Bond? in insurance market eliminate unnecessary claims, The general trends definition of the bond is a financial guarantee conditions, in pricing and coverage availability, new that a licensed dealer will comply with the terms of any products available to the dealer industry and more. written contract in connection with the sale of a vehicle and dealer not violateyear anyin of our the Florida laws Thisthat pastthe year was awill challenging business, governing dealers. especially here in Florida. A new “wind modeling” system was implemented which completely changed the way The key termcarriers in that definition is financial Since look at certain areas. guarantee. This new system dealer bonds are typically written by insurance companies, identified that non-coastal areas had they are often mistakenmore as insurance products. This couldn’t hurricane exposure than was be farther from the truth. An insurance company that issues previously believed and pricing the bond is simply telling the state of Florida this dealer of policies werethat revised is financially able to “make good” on any violations up to accordingly. The the $25,000 limit, and that in the case the dealer becomes claims from financially unable to settle the issue, the insurance company 2012’s will pay. Hurricane

Sandy had Types of claims that we see coming in under the bonds are: a devastating • Failure to pay for a vehicle effect on the Dealers • Dishonored drafts or checks Open Lot insurance • Failure to disclose prior damage or other pertinentAs a marketplace. information at the time of sale result, the insurance • Failure to honor terms agreed to in acarriers writtenare contract now looking more closely at flood How does an insuranceexposure companythan determine whatmaking to ever before charge? One of the big differences between a bond and an insurance 10 — Independent — January 2014 contract is that the Dealer principals of the dealership are required

to personally indemnify the insurance company in the event the claim is paid. In other words, the owners are personally it difficult to find policies on dealers that never had an responsible to pay the insurance company back for a claim. issue in past years. These changes caused a number of insurance companies to withdraw from the Florida market This explains why credit scores of principals play such a big or limit what they offer causing a supply and demand issue role in the pricing of the bond. Just like a car loan where which subsequently raised rates. On the positive side, the your ability to pay the bank back directly affects the cost of insurance industry has record surplus capital thanks in the loan, your ability to pay the insurance company back large part to lower than expected catastrophe losses over directly affects the cost of the bond. the last few years and increased investments yields. Most of the insurance industry analysts expect the trend of Bond pricing in Florida is really all over the board. Dealers increasing rates to slow or even reverse in the near future. with good credit and experience pay as little as $250 (in Unfortunately there are no crystal balls to tell us what to some cases even less) and new dealers, or dealers with poor expect in 2014. All we can do is keep a close eye on the credit can pay as much as $5,000. In some situations the industry and do our best to keep the readers of this column dealer may be required to put up collateral or bring in a coahead of the curve. signer. I’ve seen extreme cases where the dealer just can’t be bonded at any price. On a personal note, I wanted to thank the FIADA Board of Directors for the vote of confidence in electing us their Why is the limit $25,000? Agent of Record. Our team of insurance professionals This subject is one of the hottest topics in the industry. There specialize in your industry and make it our job to know are many schools of thought as to what the limit should be. how your business works and understand what your Over the years an increase in the limit has been discussed dealership needs to best protect your assets. We are but to date, any increase has been tabled. available for questions from any association member whether they are clients or not and we will do our best to The general argument for an increase is that car prices answer those questions in a completely impartial manner. have steadily increased and the bond has stayed the same. Shouldn’t the bond be raised to keep up? Maybe $50,000 or We hope that Keys to Insurance is an informative and $100,000? While this is a common sense approach, there are interesting column and proves to the readers that insurance some issues that get in the way. can be fun. Once a bond claim is submitted, the dealership becomes “un-bondable” until the claim is settled and the insurance Kevin O’Connor of Dealers Insurance Services, Inc. is the carrier is reimbursed by the dealer. When a legitimate dealer FIADA Insurance Agent of Record. If you have insurance has a claim he will do everything in his power to settle it so related questions, contact FIADA at (800) 237-0448 or visit his bond isn’t cancelled… no bond, no license. the DIS website at www.dealersinsurance.com. Continued on Page 14. www.fiada.com

12 — Independent Dealer — March 2014 FIADA Jan 2k14.indd 10

1/10/2014 11:03:59 AM

••••••••••••••••••••••••••••••••••••

PAID ADVERTISING

www.fiada.com

March 2014 — Independent Dealer — 13

DEALER BONDS continued from Page 12.

In my experience, the real bond claims come from the dealer that has basically given up. His operating funds are depleted, he has started “borrowing from Peter to pay Paul” and the downward spiral begins. By the time the bond claims start to surface, it isn’t just one claim it’s numerous claims. The $25,000 isn’t even close to handling the problems. It’s not unheard of for these situations to get into the high six figure range. Unfortunately, these situations, as infrequent as they may be, are very visible. Back in 2000, a state legislator was trying to file legislation to raise the bond to $250,000. Several constituents in his district were harmed by a dealer that went out of business and the Representative made a good argument for an increase. I was honored to be asked to sit on an Emergency Task Force along with now FIADA president Dino Mercurio and other representatives of the industry. This was a joint task force put together by the DMV and our very own FIADA. We were tasked with researching how the increase would affect the independent dealer industry as a whole. It was determined at that time that such an increase would put at least half the dealers in the state out of business because they just couldn’t qualify for such a large bond. The remaining dealers would see their bond premium increase substantially and getting approved would require a tedious underwriting process requiring financial statements and other documentation.

Renewing Members

Think back to my comments earlier. They underwrite these things like they are unsecured lines of credit. How many of us could qualify for a $250,000 line like that? We were able to stave off the increase that year by providing the legislator the information on how it would devastate our industry and we came up with a possible “trust fund option” in lieu of the increase. Another solution that was thrown out at that time was to change the bond form to cover retail transactions only and remove the ability to claim “dealer to dealer” transactions. Needless to say this option wasn’t well received by the auctions or franchise dealers. Fortunately, thanks in large part to the FIADA, the legislator dropped the issue for that year. In closing, a bond truly is a necessary evil. While its limit is inadequate to properly protect the customers, we’ve shown that in Florida, an increase to an adequate limit may be impractical and dropping the requirement altogether would take away the little bit of protection out there. I wouldn’t be surprised to see an increased limit discussed of $50,000 and I may actually support it. But for proponents of this just remember, twice the limit twice the price along with a more difficult underwriting process. As always, we need to be careful what we wish for. Kevin O’Connor of Dealer Insurance Services, Inc. is the FIADA Insurance Agent of Record.

F E B R UA R Y 2 0 1 4

30+ Year Members Ray’s Used Cars 20+ Year Members Le Bo Auto Brokers Marbais Enterprises, Inc. Ray’s Motor Sales, Inc. 10+ Year Members Auction Insurance Agency Auto Add-Ons, Inc. Car-Time, Inc. Cassat Auto Sales Economy Motors Hallmark Driving, Inc. J.D. Byrider Millenia Motors, Inc. Northwest Florida Auto Sales Prestige Auto Sales Quincy Auto Mart, Inc. Tampa Carstore, Inc. Tax Refund Services, Inc. Ultimate Image Auto, Inc. Under 10 Year Members Ace Motors Inc Auto Express South Berlin Motors Big Truck Rental LLC

14 — Independent Dealer — February 2014

Dade City, Florida Cape Coral, Florida Ocoee, Florida Lake Wales, Florida Birmingham, Alabama Tavares, Florida Bunnell, Florida Jacksonville, Florida Live Oak, Florida Live Oak, Florida Jacksonville, Florida Longwood, Florida Ft Walton Bch, Florida Ocala, Florida Quincy, Florida Tampa, Florida Tampa, Florida Tallahassee, Florida St. Petersburg, Florida Fort Myers, Florida Fort Lauderdale, Florida Tampa, Florida

Butler Auto Recycling Center State Auto Sales Inc College Auto Sales, Inc. Diamond II Auto Sales, Inc. Dorman’s Auto Sales, Inc. EJ’s Quality Autosales Florida Auto Auction Properties dba ABC Orlando Au Foreign Affairs Auto GO Financial Greenlight Motors LLC Instant Wheels Used Cars JD Byrider of Bradenton Kicklighter Auto Sales LLC Lane Mashburn Inc. dba Amelia Auto Mart Owl Automotive Group Inc Palm Tree Auto Sales Paradise Auto Brokers, Inc. Pegasus Classic Cars LLC Ponce Used Cars, Inc. Purvis, Gray and Company, LLP Snider’s Truck & Auto Sales The Garage Inc Transcor Recycling, LLC Vac-Con, Inc. Zen Motorsports

Pensacola, Florida Kissimmee, Florida Miami, Florida Orlando, Florida Lake Wales, Florida Jacksonville, Florida Longwood, Florida West Palm Beach, Florida Mesa, Arizona New Port Richey, Florida Jacksonville, Florida Bradenton, Florida Jacksonville, Florida Fernandina Beach, Florida Longwood, Florida Stuart, Florida Pompano Beach, Florida West Palm Beach, Florida Fort Myers, Florida Gainesville, Florida Titusville, Florida Doral, Florida Tampa, Florida Green Cove Springs, Florida Oldsmar, Florida

www.fiada.com

Best Selling. Best Performing. BEST OPTION! The Talon by GoldStar GPS. Still the best-selling and best-performing GPS tracking device around. Let’s get to the truth about The Talon GPS Tracking Device from GoldStar GPS. It’s still by far the best-performing and best-selling device in our market. But don’t take our word for it. Just take a look at the numbers.

PAID ADVERTISING

DEALER’S CHOICE

The Facts Don’t Lie: • 10th generation patented technology innovation • Over 800,000 units sold in less than 1 year — more than any other device in our market • Next to non-existent failure rate of just 0.4% • High quality, rugged, automotive-grade engineering and design • Water-resistant, integrated sealed cable for enhanced durability • Resettable fuse located in-device for greater protection • Meets & exceeds all required carrier certifications for receiving and transmitting cellular data

No wonder Talon is the dealers’ first choice for GPS tracking hardware. But we’re not stopping there. Stay tuned for the next-generation Talon CDMA device — with even faster speeds and bigger bandwidth. PUT TALON TO THE TEST. Call today and test The Talon performance for yourself.

1-866-655-8825 l GoldStarGPS.com/FIADA-Talon-Test

www.fiada.com

February 2014 — Independent Dealer — 15

FIADA members get continuing education FREE as a member benefit. You, or an employee of your dealership, can take any of the online CE courses at www.FIADA.com! Title & Registration: This course covers information about: Online Continuing Education: A newly updated course that consists of a series of videos which include live instruction, PowerPoint slides, and a manual. The course includes 3 video segments: • Division of Motorist Services (DMS) • Legal/Legislative • Industry Related Topics of interest include a curbstoning update, electronic titles & lien process, the implications of the federal Truth in Lending Act (TILA) and Regulation Z, the USA Patriot Act, Auction success tips, and FTC Red Flags Rule. This course fulfills your 8 hours of Continuing Education credit. You have 30 days to complete the course. At the end of the online course, you can print your continuing education certificate to provide to the DMV.

• What is acceptable proof of ownership in Florida, other states, and other countries, • When notarization is acceptable or required, • Where to find proof of present and past ownership, • Odometer readings, • When and how to remove or add a lein, and • Where to find answers to other questions as your business grows. Examples and case studies are provided to clarify ownership and is given in a recorded webinar format with voice recording, PowerPoint slides, and a PDF Title & Registration manual. This course provides 8 hours of Continuing Education credit.

Take a course for FREE at www.fiada.com!

18— —Independent IndependentDealer Dealer— —August 2013 18 June 2013 18 — Independent Dealer —January 2014

www.fiada.com www.fiada.com www.fiada.com

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

And So It Begins BY SANDRA MORTHAM, FIADA LOBBYIST

he 2014 Florida Legislative Session officially started on Tuesday, March 4 and it looks to be a busy, productive 60 days. One of the highlights for FIADA members this session will be the movement of the Surrender Stop legislation. The legislation is sponsored by Rep. Doug Broxson and Sen. Jeff Brandes, and I wanted to spend some time introducing these legislators to you so you will have an appreciation for the valuable role they will play in getting this passed. Rep. Doug Broxson Part of a Florida family that settled in the Santa Rosa County area in the early 1800s, Doug Broxson, the youngest of Bart and Annie Gordon Broxson’s eleven children, was born in Pensacola in 1949 at the old Sacred Heart Hospital. Doug grew up at Broxson Station on the Gulf Breeze peninsula. In 1956, Doug’s father Bart was elected the Sheriff of Santa Rosa County and moved Doug and his family to Milton. Doug grew up in Milton, played football at Milton High School, and graduated in 1967. Doug attended Evangel University in Springfield, Missouri and graduated in 1971. Doug was elected to serve District 1 in the Florida House of Representatives in November 2010. His district represents most of Santa Rosa County, including parts of Gulf Breeze, as well as parts of Okaloosa counties. Rep. Broxson was re-elected in 2012 to serve the constituents of District 3, which now comprises most of Santa Rosa County and north Okaloosa County. He currently serves on the Economic Affairs Committee, Agriculture & Natural Resources Appropriations Subcommittee - Vice Chair, Joint Administrative Procedures Committee, Insurance & Banking Subcommittee, and Veterans & Military Affairs Subcommittee. 18 — Independent Dealer —March 2014

During his college years, Doug met and married Mary Bernhardt, and after graduating from college, Doug moved his family back to Santa Rosa County where he built a career in real estate, property insurance sales, and investments. Doug and Mary have four children: Julie, Jason, Judd, and Jill, and six grandchildren. He is an active member of Brownsville Assembly of God church, and spends much of his spare time with his family, fishing or boating, or taking part in community functions. sen. jeff brandes First elected to the Florida House of Representatives in 2010, Senator Jeff Brandes began his career in the Florida Elected to the Senate in 2012. Senator Brandes currently chairs the Senate’s Transportation Committee. Senator Brandes attended Carson Newman College where he received a B.S. degree in Business Administration. He has served in the U.S. Army Reserves as a Transportation Officer and was deployed in Iraq from 2003 to 2004. Brandes and his wife, Natalie, have two children; Charlotte and Colin. Surrender stop talking points The Surrender Stop legislation is in good hands with these well-respected legislators guiding it through the House and the Senate. Here are a few benefits to the proposed legislation that you can share with your local legislators when you ask for their support. History During the 2008 Session, the Legislature passed SB 1992, which created the Automobile Lenders Industry Task Force within the Department of Highway Safety and Motor Vehicles (department) to investigate problems within www.fiada.com

the industry. In 2009, the Florida Legislature enacted Florida Statute Section 320.1316 based upon a recommendation from the Automobile Lenders Industry Task Force. Under this Statute, when a lienholder notified the Department that a registered owner refused to comply with a demand for surrender, the driver’s name was placed on a list called “Surrender Stop.” Drivers on this list were not allowed to be issued license plates or vehicle registrations until the vehicle is recovered or the lien holder removes the person’s name from the list.

staff determined that because the current language included “may” and not “shall,” the Department could stop enforcement.

Stop will limit the number of court actions that are filed by lienholders in order to recover vehicles that are being concealed or hidden.

Benefits of Surrender Stop The continuation of the Surrender

Because of the Surrender Stop, lien Continued on Page 20.

PAID ADVERTISING

In September 2012, the Department stopped enforcement of F.S. 320.1316 due to pending legal action. At that time the Department reported 21,000 Surrender Stops in place and had handled only a handful of disputes relating to Surrender Stop challenges. The Department’s legal

Providing your dealership the most unique…

Empowering you to…

PAID ADVERTISING

 Buy & Sell with no Out-of-Pocket Expense  Finance Every Customer  Purchase Inventory Anywhere at Anytime

www.fiada.com

Over 40 years of Auto Financing… floorplansales@autouse.com

(800) 873-2907

autouse.com

March 2014 — Independent Dealer — 19

LEGISLATIVE continued from Page 19.

holders could forego filing court actions to recover these vehicles because the vehicles would not be able to be re-registered. As a result, lien holders could wait out those persons that were concealing vehicles. Since these protections have been halted, lien holders have no recourse but to file judicial actions to recover these vehicles and cause an immediate increase in the number of suits being handled by an already overburdened court system. If the new law is passed, courts would only potentially receive actions from the handful of aggrieved individuals challenging the Surrender Stop. SB 1272 and HB 883 provides changes to Sections 320.136 and 320.02 that provide registered owners of vehicles with recourse in the event that they feel aggrieved by the Surrender Stop while simultaneously eliminating any burdens on the Department and protecting lienholder rights that are currently in existence. SB 1272 and HB 883 are very similar to how a customer can challenge a motor vehicle repair shop’s lien or a towing storage lien by filing a court action and posting a bond. This statute protects consumers and lien holders. It does not afford lienholders any new benefits, while greatly increasing the benefit to the consumer in the form of a right to cure, and allowing attorney fees for the prevailing party. SB 1272 is an omnibus transportation bill and therefore we will need to work extra hard with the Legislature to get these bills to come together at the end of the Session. Watch your email and this magazine for future updates and how you can help. 20 — Independent Dealer — March 2014

Support the FIADA PAC Fund! Your PAC Contribution helps spread awareness and gain support of issues affecting independent dealers in the state’s capitol.

CONTRIBUTION INFORMATION Contributor’s Name:__________________________________________ Dealership/Company:_________________________________________ Street Address, City, State, Zip:_____________________________________

Check q

Credit Card (one time contribution)

Monthly Credit Card Contribution (until cancel)

$500

$25

q q

$250

$100

$50

_________

PAYMENT INFORMATION Credit Card Information:

Visa

MasterCard

AmEx

Discover

Name on Card: Card number: Exp Date:

Sec. Code:

Billing Phone: Billing Address Authorized Signature

Make your check payable to FIADA-PAC and mail to: FIADA • 1840 Fiddler Court • Tallahassee, FL 32308 If making payment via credit card, you may fax your contribution form to 850.385.3251 www.fiada.com

www.fiada.com

December 2013— —Independent IndependentDealer Dealer— —21 21 January 2014

I N S U R A N C E I N F O R M AT I O N

Is There a Ticking Time Bomb on Your Lot? The cars sitting on your lot are your products, which means you may be responsible if something goes wrong. By David Metcalf

ne of the major components of a good garage liability policy is Product Liability. As a dealer the used cars sitting on your lot represent your product in the marketplace. You may be responsible for damages caused by a defective product. One of the major components of a used car is the used tires. Tire failure has been a major source of large claim payments recently. Tire defects that cause a blowout severely limit a driver’s ability to control the vehicle which can lead to a crash. You do not generally know the history of the tires on a vehicle. They might not be the correct tire for the vehicle. Visual inspection of tread is no longer a valid measure of tire serviceability. The structural integrity of a tire can degrade over time even if they appear new. The National Highway Traffic Safety Administration and most manufacturers recommend that tires be replaced after 6 years regardless of the remaining tread depth. Dealers should perform tire inspection as part of the vehicle inspection/ reconditioning process. All tires approved by the Department of Transportation (DOT) carry a Tire Identification Number (TIN). The last for digits of this code represent the week and year of manufacture. 0409 would mean the tire was manufactured in the fourth week of 2009. All tires on a vehicle should be matched for size, 22 — Independent Dealer —March 2014

rating and age. Dealers should never install used tires on a car. When a customer has an accident which can be tied to a tire failure the investigation will always ask the dealer for the vehicle’s inspection/condition report. Ultimately the dealer – not the

customer is the tire expert and may be held accountable by a court. Make sure your liability limits are adequate to support catastrophic claims. Make sure that the limits are adequate to cover defense costs and legal expenses. Many times this can equal or exceed a claim amount. Make sure you deal with an agent who specializes in garage liability and understands your unique needs. There is no such thing as Apples to Apples in the garage liability world. David Metcalf is a garage liability insurance specialist. David along with his coworkers at the Williams and Stazzone Insurance Agency has been specializing in dealerships for nearly 25 years. Questions can be directed towards 800-868-1235 and info@wsins.com.

When a customer has an accident which can be tied to a tire failure the investigation will always ask the dealer for the vehicle’s inspection/ condition report. Ultimately the dealer – not the customer is the tire expert and may be held accountable by a court.

www.fiada.com

Fast Track Your Cash

Sterling Credit Corporation

Offering Point-of-Sale and Bulk Purchase Programs

PAID ADVERTISING

BENEFITS: • Minimize risk • Purchase inventory • Accelerate your proﬁts • Reduce collection responsibilities • Meet operating cost goals • Grow your business!

Sterling Credit Corporation is your key to turning in-house sales contracts into fast cash. Cash is king in the auto finance business and we know cash flow is paramount in a successful operation. At Sterling Credit Corporation, our seasoned understanding of the industry will help you generate a timely return. Our professional team of finance experts can create a program designed exclusively for you and your dealership – not some cookie cutter process. We’ll get you the cash quickly, treat your customers with respect and free you from the hassles of collections, all with a personal touch. We can help get your cash flow back on track. Call today!

Toll Free 855-222-2120 www.SterlingCreditCorporation.com

F LO O R P L A N F I N A N C I N G

Making a Floor Plan Work for You If you are considering a floor plan to increase your cash flow, make sure you know exactly what you need. by Karen Millwood

he ever-changing auto remarketing industry has seen more changes in recent years than ever before. Today more than ever, having a floor plan partner is very important to the small business owners’ vitality. If you are looking to grow an existing business, or beginning the journey of business ownership, it is important to have a good inventory finance partner to assist in expanding or getting your new business off the ground. A floor plan can ensure you have fluid cash flow, a variety of inventory to increase your consumer base and can make buying inventory a simpler process.

Why a Floor Plan Company?

There are several things you should know and take into consideration when choosing a business partner in inventory finance. An inventory finance plan, known as a “floor plan,”

24 — Independent Dealer — March 2014

can increase your cash flow. A floor plan gives you the option and the freedom to use your money where it is needed most, instead of being tied up in inventory on your lot. It provides the flexibility to purchase a variety of inventory that can drive more consumers to your lot. As your consumer base widens, so do your profits! With cutting edge technology now being offered by floor plan companies today, floor planning has never been faster or easier, as you are able to manage your account from your computer, tablet or smartphone. This includes making payments, viewing titles and reviewing key performance indicators specific to your account. These tools can provide insight on potential market opportunities to develop your business and improve income opportunities.

Know Your Numbers

When researching which floor plan partner is right for you, it is very important to know your numbers. A good floor plan company will ask you in detail about your business model before quoting you term plan fees. Every business model is different, catering to various demographics: specific locations, types of consumer (cash vs. financing), etc. Other factors, such as average price, turn time, retail, wholesale, specialty units, power sports units, etc. may be considered in the equation as well.

Know Your Business Model

When the time comes to have this conversation with a prospective floor plan partner, it is important to know your business model and be well-versed in presenting it. What is your average inventory turn time? What are your operating expenses? How many cars must you sell per month to pay your operating expenses (your break even number)? What is your average profit margin per car? These are all key questions a good business person should know. Knowing these numbers and reviewing them on a consistent basis is significant in establishing where you were, where

www.fiada.com

you should be, where you are going, and how long it’s going to take to get you where you need to be. Keep in mind that floor plan companies are discretionary lenders. The less risk you appear to be, the more likely you are to get that great term plan fee structure and the amount of money your business needs. Be proud to share your numbers with your floor plan company. Let them check inventory and see your financials when asked. They aren’t just trying to be nosy. Their review can factor in to determining your fee structure and the line of credit you qualify for. Also, you should know your credit score and any hiccups on your credit, as this could negatively affect the term plan you qualify for. It doesn’t

necessarily mean you would not qualify for a floor plan line of credit. However, it could affect how much you pay for one initially.

Know Your Needs

Last but not least, once approved, don’t use the entire line of credit all at once. It is important to maintain discipline and floor plan responsibly. Space your purchases out over a period of time. Loading up a quarter of a million dollars’ worth of inventory in a single week could be a huge mistake. The payoff on that inventory will come due at the same time and if they haven’t sold, you will be paying a considerable amount of money all at once. This is important to keep in mind as you are flooring inventory.

You work hard, so make your money work for you! Focus on developing and perfecting your operation and take care in choosing the business partners and tools you work with. To shift your business into the NextGear of growth and development, a floor plan may provide the buying power you need to sustain a thriving business model. Buy wisely, increase your cash flow, and be aware of your numbers. You’ll make more money in so doing. It’s time to shift! Karen Millwood is an account executive for NextGear Capital, Inc. Find out more about floorplans and NextGear at http://www. nextgearcapital.com/.

• Higher Advance than Factoring

Continued on Page 30. www.fiada.com PAID ADVERTISING

March 2014 — Independent Dealer — 25

DEALER FYI

coverage including bodily injury and property damage protection and $10,000 personal injury protection. Signature of the insurance agent is required on all insurance policies.

It’s Renewal Time for Dealers! It is time once again to renew your dealer license. Are you prepared to meet all the requirements that go along with renewal? By Nalini Vinayak

ere in the Sunshine State, independent auto dealers represent a significant part of our business communities. The Department of Highway Safety and Motor Vehicles reminds independent dealers, auctions, salvage dealers and wholesale dealers that now is the time to renew your dealer license. Renewal applications, fees and required documents must be filed to ensure the timely renewal of your motor vehicle dealer’s license. On Feb. 13, 2014, the Department e-mailed renewal notices and applications to all 10,182 licensed independent dealers, auctions, salvage dealers and wholesale dealers. A completed renewal application form (HSMV 86720, “Renewal Application for Motor Vehicle, Mobile Home, or Recreational Vehicle Dealers”) must be submitted to the local Regional Office responsible for your dealership. This form is available on the Department’s website at http://www. flhsmv.gov/html/forms.html. The Regional Office list can be accessed at http://www.flhsmv.gov/dmv/ BUR_Field_Ops_Address.pdf and the Dealer Training Schools at http:// www.flhsmv.gov/dmv/L_Dealer_ Trng_Sch.pdf.

Dealers were also advised on Biennial Renewal Option:

House Bill 7125 passed giving dealers the option for biennial renewal of their license. This law went into effect on July 1, 2013. The Renewal form HSMV 86720 will allow for the option 26 — Independent Dealer — March 2014

of renewing for a two-year period.

Please note: Salvage Dealers are exempt from Garage Liability Insurance •

The following documents are required with the renewal application:

Primary Location: • •

•

Completed license renewal application form HSMV 86720. $75 annual renewal fee for the primary location. If the completed application, all required documents, and fee are not received for the primary location by April 30th, a $100 delinquent fee is due for a total renewal fee of $175. Checks must be made payable to DHSMV. $150 biennial license renewal fee if you are opting for a biennial (two years) renewal. Checks must be made payable to DHSMV. An original surety bond, original irrevocable letter of credit, or original continuation certificate in the amount of $25,000 for motor vehicle dealers, auction dealers and independent dealers. The Dealership’s Principal must sign the surety bond and Irrevocable Letter of Credit. Copy of proof of Garage Liability insurance which must include at a minimum, $25,000 combined single limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection or a general liability policy coupled with a business automobile policy which must include at a minimum, $25,000 combined single-limit liability

•

Dealer License Continuing Education course certificate of completion or a pre-licensing Dealer Training Seminar for independent dealers only. Copy of certification from the Division of Corporations showing current registration of the business and fictitious name(s) (on-line access at www.sunbiz.org).

Supplemental Location: •

• •

•

Completed license renewal application form HSMV 86720 including current business e-mail address. $50 annual renewal fee. $100 biennial license renewal fee if you are opting for a biennial (two years) renewal. Checks must be made payable to DHSMV. A copy of the surety bond, irrevocable letter of credit, or continuation certificate that was filed with the renewal of the primary lot. A copy of the certificate of garage liability insurance or a general liability insurance policy coupled with business automobile policy that was submitted with the primary location renewal application. This certification must include at a minimum, $25,000 combined single limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection. Copy of the certificate of garage liability insurance or general liability Continued on Page 29. www.fiada.com

• Gourmet breakfast: 7:30–9:00am

• Early bird giveaway: Corvette leather jacket • 250 Corvettes and 200 Classics and Specialty units • You could win a Corvette! Based on all buys/sells March 12 – April 9

• 1,000+ Fleet/Lease units including Ally Auto Remarketing, Avis/Budget Group, Credit Acceptance/VRS, Hertz, Enterprise, TD Remarketing Services, US Bank • 1,000+ Dealer Trades

PAID ADVERTISING

2,400+ total offered Special internet invitation for florida dealerS! All our vehicles are available on Simulcast. Visit us at www.flintaa.com or call Jodi Frank at 810-515-4244 3711 Western road • flint Mi 48506 800.284.0034 • www.flintaa.com

Flint, Michigan: the birthplace oF the corvette, 1953

Is it time to renew your Dealer Bond? Our online application is simple and easy with a quick turnaround time. Ask about our discount for FIADA members. Go to DealersInsurance.com today.

28 2014 28— —Independent IndependentDealer Dealer—January — October 2013

www.fiada.com www.fiada.com

LICENSE RENEWAL continued from Page 26.

To ensure the proper processing of your renewal, please submit your completed renewal application, required documents and fee to the regional office. Please do not submit your application to Tallahassee. All checks must be made payable to DHSMV. insurance is required and must be signed by the insurance agent.

Please Note: Salvage Dealers are

exempt from submitting a proof of garage liability insurance coverage.

PAID ADVERTISING

The Department has moved to electronic communication of important notices, renewals and legislative changes to licensed dealers statewide. Therefore, it is important for you to update your renewal application with a current business e-mail address for your dealership. Please avoid using e-mail addresses of your staff on the application as notices may not reach your dealership if the staff member no longer works at the

www.fiada.com

dealership. You should immediately notify the Regional Office responsible for your dealership of any changes in your business e-mail address. To ensure the proper processing of your renewal, please submit your completed renewal application, required documents and fee to the regional office. Please do not submit your application to Tallahassee. All checks must be made payable to DHSMV. Valuable information on licensing procedures and requirements is available on our website at http:// www.flhsmv.gov/html/titlinf.html under “Dealer, Manufacturer,

Distributor and Importer Information.” For assistance in locating one of our Regional Offices, please see http://www.flhsmv.gov/ dmv/BUR_Field_Ops_Address.pdf. Your local Regional Office will be available to assist you from 8:00 a.m. – 5:00 p.m., Monday through Friday. The Department of Highway Safety and Motor Vehicles salutes all of our industry partners, and we greatly appreciate your assistance and cooperation in the timely renewal of your dealer license. Nalini Vinayak is the Dealer License Administrator for the Florida Department of Highway Safety and Motor Vehicles.

Continued January on Page 2014 20. — Independent Dealer — 29

INDUSTRY NEWS NIADA Provides Comments to CFPB NIADA offered comments regarding possible changes to federal rules governing debt collection as the Consumer Financial Protection Bureau considers the regulations that enforce the Fair Debt Collection Practices Act. As part of its process, the CFPB asked key stakeholders who might be affected by any new rules to offer comments, data and information pertinent to a wide variety of collection issues in a process known as Advance Notice of Proposed Rulemaking. NIADA, the national association for independent auto dalers, was included as a stakeholder. Comments provided by NIADA expressed the association’s opposition to rules designed to regulate creditors such as BHPH dealers in the same way as third-party collectors, noting that when Congress passed the FDCPA in 1977, it deliberately excluded creditors from the law’s requirements. NIADA provided input on other issues as well, opposing unnecessary burdens such as a debt verification process for first-party auto lenders, who have a direct relationship with the customers they are collecting from. To read the full comments and submitted report log onto NIADA’s website at www.niada.com.

DMV Advises on Penalties for Expired Garage Liability Insurance Currently, a dealer’s garage/general liability insurance policy does not always coincide with the renewal period for their specific license type. To accommodate the industry, the Department allows dealers to renew their license with the understanding that the dealer will submit documentation of their renewed insurance policy during the licensing period to comply with the statutory requirement to maintain continued coverage. The Department notifies dealers 30 days prior to their expiration date to ensure that there is no lapse in coverage, as well as two additional notices prior to taking action. Beginning April 1, 2014, after the third notice the Department will proceed with an administrative action and fine all dealers that fail to comply with section 320.27(2) F.S. Dealers served with an emergency suspension order for having an expired general/garage liability policy will be fined $250 if they provides proof of insurance GLI with no lapse in service, and $500 if the dealer provides proof of GLI that indicates a lapse in service.

2013-2014 FIADA EXECUTIVE COMMITTEE:

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

JIM WINTERICK, SR. CHRISTOPHER LEEDOM Phil Risley Senior Vice President Chairman of the Board Secretary Gulfstream Motor Credit AutoMaxx Cars & Credit of Jacksonville Miami, FL Sarasota, FL Jacksonville, FL (305) 253-2335 (941) 309-1111 (904) 616-4074

Lisa Compagno Regional Vice President Palm Tree Auto Sales Stuart, FL (772) 288-2099

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

30 — Independent Dealer — March 2014

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

PAUL MATTON Treasurer Park Auto Mall Pinellas Park, FL (727) 639-1112

Govinda Romero Regional Vice President Autoflex LLC Gainesville, FL (407) 468-9974 www.fiada.com

THINK FASTER Take advantage of our special introductory rate of

$30 A MONTH

for the first six months, when you sign up for a year.

PAID ADVERTISING

WWW.BLACKBOOKAUTO.COM/THINK CAL L 855-371-7534 T O LEA R N M O R E PROMO CODE 11800

Black Book® is a registered trademark of Hearst Business Media Corporation. www.fiada.com

March 2014 — Independent Dealer — 31

4 General Motors Closed Factory Sales bi-weekly on Monday at 1:00 p.m.

Palm Beach Nights, Mondays, 4:00 p.m.

6359 North W St., Pensacola, FL 32505 850-484-7100 Toyota & Lexus Sell-A-Thon every other Thursday at 4:00 p.m.

Sale: Tuesday 9:15 a.m. Total Resource Auction every other Tuesday 8:15 a.m. Specialty Sale 2nd Tuesday monthly 8:15 a.m.

10817 New Kings Rd., Jacksonville, FL 32219 904-768-9981 Sale: Thursday 1:00 p.m.

PAID ADVERTISING

Total Resource Auction every Thursday 11:00 a.m.

manheim.com | 866 • Manheim

32 — Independent Dealer —March 2014