SINCE 1940
November 2011
www.FIADA.com
A Publication of the Florida Independent Automobile Dealers Association
Information and Insight for Florida Used Car Dealers
FULTON, MO PERMIT NO. 38
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Dealer Independent
MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308 TELEPHONE (850) 385-2712 (800) 237-0448 FAX (850) 385-3251 WEBSITE www.FIADA.com E XECUTIVE COMMITTEE 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 Christy Taylor Editorial/Advertising
POSTMASTER:
Contents November 2011
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
6
Executive Director’s Message Lisette Mariner
8
Member News New, Renewing and Rejoining Members
10
A Shining Example of Quality Live Oak dealer Michelle Graudins is FIADA’s Quality Dealer of the Year
14
Auction Person of the Year: Jay Cadigan Manheim’s Market VP wins for support of independent dealers
18
Convention 2011! A pictorial recap of FIADA’s biggest event
29
FIADA’s Executive Committee Introducing the new slate of officers for 2011-2012.
30
Industry News
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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CONGRATULATIONS WINNERS! FIADA Awarded these honors at the Annual Convention. See pages 18-24 for photos from the events. Quality Dealer of the Year, Michelle Graudins Man of the Year, Frank Fuzy President’s Award, Jim Kagiliery Auction Person of the Year, Jay Cadigan November 2011 — Independent Dealer — 3
FROM THE PRESIDENT
What I Learned at the FIADA Convention BY BRANDI NOEGEL
I
have just attended a conference and our 2011 FIADA Annual Convention. Both were a lot of fun and educational. We had over 54 vendors and a lot of great sponsors at the 2011 FIADA Annual Convention. It would not have been a great convention without them. Many of them conducted education classes that were of great help to our business. If you were not able to attend, I hope you will try to make one of our Town Hall training sessions coming in 2012. The next Town Hall will be in Daytona Beach at Manheim Daytona Beach on Friday January 20, 2012. At our convention, one of our speakers was Deputy Director Boyd Walden from the Department of Highway Safety and Motor Vehicles, Division of Motorist Services. He spoke on many things that have changed in our industry, including the scope of his department. The Division of Driver’s Licenses and what we know as the Division of Motor Vehicles have been combined into one department. Boyd also talked about ongoing concerns with Curbstoning Enforcement. In case you are interested, the Provisions of Law on Curbstoning can be found in section 316.195 of the Florida Statutes. According to statute, the definition for “curbstoning” is a term used to describe the practice of parking a vehicle in an area upon a public street, highway, a public parking lot, or public or private property where the public has a right to travel by motor vehicle, for the purpose of and intent of displaying the vehicle for sale, hire or rent. Another insightful session was Steve Gordon’s “22 Simple Actions You Can Take Today to Position Your Business for Breakthrough Growth.” He spoke about many things that can have an impact on your business
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and are very easy to do. One in particular was to make contact with people more than one time. In fact, you must keep making contact. You may have to “touch” someone multiple times before they decide to purchase a vehicle or give you a referral. One way to do this is to send out mailers, for instance, five times a year. The mailers could be anything from an explanation of why a customer would want to buy from you to something as simple as a birthday card. It is important to note that Steve suggested this mail media should not be in the form of postcards, but rather in an envelope which is more likely to be read. The idea is to be the first dealer people think of when buying a new vehicle or giving a recommendation to a friend. At another one of my volunteer jobs, I read an article about Governor Rick Scott’s 2012 Job Creation and Economic Growth Agenda. The top two things on the report were: 1. Streamlining business, permitting and eliminating burdensome rules and regulations. 2. Providing tax relief and reform for Florida working families and business. We can all agree that we need this right now; so, let’s hope that it will be a great legislative session. As we all know business is not what it should be and we all are just holding on, waiting for things to get better. I hope that the tax season will be a great one. Carol (Brandi) Noegel FIADA President
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EXECUTIVE DIREC TOR’S MESSAGE
Who You Gonna Call? FIADA BY LISET TE MARINER
W
e want you … to be an active participant. Your membership matters. Get the most of being a member by attending a quarterly meeting, being part of a committee, and contacting the FIADA office when you have an issue. The FIADA hosts, in many cases with the partnership of a local auction, quarterly meetings throughout the state. These town hall meetings are held the day before a board meeting and are a wonderful educational opportunity. This is a great opportunity to network with colleagues and ask those burning questions you have of the experts. Your next opportunity is in Daytona on January 20-21. Visit the FIADA website at www.fiada. com to reserve your space.
accomplish that mission is to know what’s happening throughout the state. By contacting the FIADA office and expressing your concerns we are able to find solutions and ensure that your local issue does not set precedence for other localities. You may remember that last year the Palm Beach County tax collector enacted procedures that would have added burdens to the dealers in the area. FIADA was able to stop this measure from seeing the light of day. We monitor issues every day. Though the Florida Legislative session begins in January, many of the committees are meeting now. The Governor recently announced Florida has a $2 billion shortfall. We won’t
By contacting the FIADA office and expressing your concerns we are able to find solutions and ensure that your local issue does not set precedence for other localities.
The FIADA convention is another quarterly meeting to get involved. At the October convention I was able to meet and talk to many dealers. If you missed 2011’s convention, you also missed the induction of our new board of directors. With a new board also comes the opportunity to serve on a committee. Committees are a great resource for the Association. Through our committees and the board we accomplish the work of the Association to protect your interest and provide the best resources. Let me know if you’re interested in serving on the membership committee, member benefits committee or legislative committee. Express your interest by emailing me at lisette@fiada.com. FIADA’s mission is to protect the industry. One way to 6 — Independent Dealer — November 2011
be asleep at the wheel. As legislators try to close the gap, we will ensure they do not fill it at the expense of our industry. The legislative committee is also reviewing ideas to correct the insurance inequity of leasing vehicles. Take advantage of all the benefits of being a member. You have legal questions and need answers today. Just give us a call at (800) 237-0448. You have issues with curb stoners in your area. Just call and let us know. Be an active participant. www.fiada.com
HOTEL INFORMATION: Shores Resort & Spa 2637 South Atlantic Ave Daytona Beach Shores, FL Reservations: 866-934-7467 Rate: $120/night
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November 2011 — Independent Dealer — 7
MEMBERSHIP NEWS
New Members
Renewing Members
OC TOBER 2011
OC TOBER 2011
A.R.A. GPS Systems, Inc. Newnan, GA Larry Carter Answer One Motors Tallahasee, FL Amy Sanford Sponsor: www.fiada.com
20+ Year Members Goebel’s Used Cars, Inc.
B & B Truck Corral Tampa, FL Sharon Alvis Sponsor: FIADA Office Chip’s Used Cars Atlantic Beach, FL Harold Parman Emset Enterprises LLC Palm Harbor, FL Gary Vosselmann Sponsor: FIADA Office First Leasing Corp Miami, FL Arsenio Moussa Sponsor: FIADA Office Florida Credit Unio Gainesville, FL Chessie Flanders Sponsor: John Cousins
John Chidsey Fort Lauderdale, FL John Chidsey Sponsor: Terry Myers Kiker U Pull It Pensacola, FL Hunter Kiker Sponsor: Kevin Scott Liberty Jane Investments Orlando, FL Nehir Benazar Sponsor: John Cousins Manatee BuggyWorks Bradenton, FL Terrell Nichols Sponsor: Manheim Mega Auto Sales LLC Tallahasee., FL Keith Sapp Sponsor: Kevin Scott Robin Rogerson Winter Haven, FL Sponsor: Terry Myers
Gray’s Automotive Palm Beach, FL Brett Gray Sponsor: FIADA Office
Ocala, FL
10+ Year Members Auto Add-Ons, Inc. Auto Brokers of Orlando Williams & Stazonne Insurance
Tavares, FL Orlando, FL Cocoa Beach, FL
Under 10 Year Members Allen Wholesale Auto Orlando, FL AmeriFleet Transportation Alpharetta, GA Auto Corral, Inc. Hudson, FL Daylight Auto Financing, LLC Panama City, FL Enterprise Rent A Car Coconut Creek, FL Florida Dealer Consultants Miami Springs, FL Ituran USA, Inc. Fort Lauderdale, FL King Insurance Gainesville, FL No. 1 Auto Sales, Inc. Hollywood, FL S.W. Motorsports of Bradenton Bradenton, FL Speedway Pull-N-Save Auto Parts LLC Daytona Beach, FL Tallahassee Salvage, Inc. Havana, FL Traditional Motorsports Lakeland, FL
Rejoining Members OC TOBER 2011 Autos of Palm Beach West Palm Beach, FL Jennifer Smith Sponsor: NIADA Certified Crazy Meghan’s Car Sales Longwood, FL Jeffery Mazer Sponsor: FIADA Office
Dan’s Deals On Wheels Auto Sales, Inc. Hollywood, FL Marjorie Jaramillo Sponsor: FIADA Office Mattas Motors Punta Gorda, FL Todd Mattas Sponsor: FIADA Office
now hiring: Membership Recruitment and Retention Coordinator FIADA is currently seeking a Membership Recruitment and Retention Coordinator who will execute the current member recruitment and retention plan and collaborate with the Executive Director on overall member recruitment strategies. Check out the full job description and professional requirements at www.FIADA.com or email a resume to Lisette Mariner at lisette@fiada.com. 8 — Independent Dealer — November 2011
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BY CHRIST Y TAYLOR
A SHINING EXAMPLE OF QUALITY T
he FIADA Quality Dealer award is reserved for an elite group of dealers who have proven themselves through the years in a number of areas. First, they have to have a reputation amongst their customers that is beyond reproach. Second, they need to demonstrate a professionalism and business technique beyond compare. Last, they need to have a sense of community and service that stretches beyond themselves and into their industry and community.
Michelle Graudins (L) receives the Quality Dealer award from President Brandi Noegel (R).2. 10 — Independent Dealer — November 2011
Michelle Graudins is a used car dealer from Live Oak, Florida who has met those goals. She runs a thriving dealership, Economy Motors, which has a robust buy-here, pay-here base as well as alliances with franchise-level banks and lenders. She works out of a state-of-the-art facility complete with a two-story showroom, six service bays and nine full-time employees. She has also been an active member of the FIADA for over 18 years and has served on the Executive Committee as Regional Vice President and Secretary. Recognizing these accomplishments and others over her professional career, FIADA named her the Quality Dealer of the Year and presented her with the www.fiada.com
award at the Annual Convention. She also made history by receiving it as the first woman to ever hold the state title. Michelle’s story begins at the Florida Auto Auction of Orlando. She was a recent UF business grad who had studied economics when she had joined some friends at the auction in search of a Firebird convertible. Loving the excitement and electricity in the lanes that day, she decided to hold off on her job search and take a chance on opening a used car dealership. Instead of spending the $10,000 her grandmother loaned her to buy the car, she used it along with some of her own money to start Economy Motors in 1992. Turns out that the first of many smart business decisions. The mix of people that come through the doors at Economy Motors can range from an hourly worker at the local chicken processing plant to an older retiree. No matter their occupation or stage of life Economy Motors is able to match them up with the right vehicle and the best financing for their situation. “A+ credit customers can get a 1.99 per cent rate from a credit union; a first time buyer can be approved. Individuals with no down payments also have options,” Michelle said. “My staff and I also make the buying process very simple. Most everyone is in and out in less than an hour.” Jason Little is the general manager at Economy Motors and was the one who presented Michelle with the Quality Dealer award during the Annual Awards Banquet at the convention. In his presentation speech he outlined the characteristics of quality dealers. One of them was awareness of changes taking place in the industry in the conditions of business and the ability to act on them immediately. Michelle’s instincts as a businesswoman and used www.fiada.com
car dealer are sharp and might be one of the key reasons to her success. A prime example happened three years ago when the economy started going south and banks were dropping out of the auto lending business faster than a cement block thrown out a window. Michelle adapted by pulling money out of savings and borrowing additional capital to increase her inhouse lending portfolio. The decision allowed her to keep sales up and keep moving forward in a time when most businesses were happy to just be surviving. Now, banks are getting back into the auto business and Economy Motors is stronger than ever. Understanding that taking care of customers is a vital part of her business Michelle is committed to always doing the right thing and building relationships that stay strong even after the cars drive off the lot. That extra care when it comes to customer service is what Michelle says the Quality Dealer award is all about. She is honored that her friends and peers see her in that way.
As an FIADA member for nearly as long as she has been a dealer, Michelle believes the dealer’s association helped educate her on the ins and outs of the industry. When she started she had virtually no experience so she joined FIADA hoping for a crash course in how to run a used car dealership. What she found was not only the training she needed on regulatory and legal issues but also a network of seasoned veterans, knowledgeable vendors and state agency contacts that were happy to pass along their advice and guidance. While gender should have no impact on the success of a used car dealer, Michelle says that there are ups and downs to being a female in a maledominated industry. On the downside, she has to fight harder at the auction be taken seriously and still often gets mistaken for an auction employee. On the other hand, customers seem to be more trusting of a woman in a sales situation and it seems easier to build rapport. Michelle hopes that with her accomplishments, especially being the
“A quality dealer is someone who views each customer as a potential source of repeat business and treated fairly, sold a superior product and have a positive experience with service after the sale,” — Michelle Graudins, FIADA Quality Dealer
“A quality dealer is someone who views each customer as a potential source of repeat business and treated fairly, sold a superior product and have a positive experience with service after the sale,” Michelle said.
first female quality dealer, she can help mentor young women and encourage them to consider selling cars as a viable career option. Continued on Page 12. November 2011 — Independent Dealer — 11
QUALITY DEALER continued from Page 11.
“Since being in business nearly 20 years I have noticed that there are virtually no more female dealership owners now than back then. My goal is to reach out to young females and show them that the auto industry affords numerous opportunities,” Michelle said.
Annual Convention. Until then, she hopes to encourage her fellow Florida dealers to get involved with FIADA. “I wish more dealers would realize the value of strength in numbers. Our association has been successful in eliminating a state lemon law and the
Running the dealership is Michelle’s main focus, but she does take time away to devote to some of her other interests and passions. She is an avid snow skier and consistently wins the title of fastest female in the slalom ski races of the Jacksonville Ski Club she belongs to. She is also a huge animal lover and is committed to saving stray dogs. She’s fostered a few abandoned puppies and helped find them a loving home and is a member of DARE (Dachshund Adoption Rescue & Education).
ability to put a stop on a delinquent customer’s vehicle registration. All of that was made possible due to the lobbying efforts. With more members and money to work with we are capable of doing so much more,” Michelle said.
Economy Motors operates out of a brand-new, state-of-the-art facility in Live Oak.
Michelle will represent Florida in the national Quality Dealer contest which will be held in June at the NIADA
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AUCTION PERSON OF THE YEAR: JAY CADIGAN
W
hen FIADA created the Auction Person of the Year Award in 1992 it was to find a way to say thank you to the many auctions, general managers, owners and staff who support the Association and the interests of its members. Every year the Nominating Committee discusses a handful of names to consider for the honor and eventually decides on one that has stood out from the others. This year that name was Jay Cadigan, market vice president for Manheim. Cadigan, who was sitting in the audience at the FIADA Annual Awards Banquet with his wife Pam Mabry Cadigan (the 1995 Auction Person of the Year), was honored to receive the award and told FIADA members that Manheim was behind them all the way. His personal view is that there could be no Manheim, or even an auction industry, without independent dealers. “My livelihood, and the auctions, depends on dealers. It means a lot to me to be honored by the Association,” Cadigan said. “It is an honor to get up every day and take care of the needs of our independent dealers.” From a corporate perspective, Cadigan says he has always urged the individual Manheim facilities and managers to support FIADA. Sponsoring events, providing free classroom space for trainings and offering FIADA a forum to address auction participants about upcoming issues are a just a few examples of the partnership. 14 — Independent Dealer — November 2011
Jay Cadigan accepting the Auction Person of the Year Award at the Annual Banquet.
Cadigan says Manheim will continue to support FIADA in the future, but hopes the Association will return the favor by increasing participation and membership. “The Association will be even more successful if it enlists more members and has greater attendance at events. I challenge all members to make those things a priority,” Cadigan said.
Brandi Noegel (L), Pam Mabry Cadigan (Middle), Jay Cadigan (R)
As the Market Vice President for Manheim, Cadigan oversees the day-to-day activities of operating locations in Florida and Puerto Rico. His 35 years of experience has been gained by working in automotive sales and leasing but predominately in various management roles at thriving auctions around the country including Golden Gate Auto Auction and the Skyline Auto Exchange, now known as Manheim NY Metro Skyline. He is also a past president of the National Auto Auction Association (NAAA) and currently serves on the NAAA Executive Committee and Board of Directors. Every experience has taught him the crucial role independents play in the automotive industry. “It is important for us to take care of the independent dealers. It is more than an obligation to take care of them, it is something that we are compelled to do,” Cadigan said. www.fiada.com
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The FIADA 2011 Annual Convention & Expo was an educational, exciting and entertaining time for the 400-plus attendees who traveled to the Gaylord Palms Resort in Orlando, October 13-15. From the golf tournament, to the continuing education programs to the Annual Awards Banquet to the High School Reunion Theme Party there was something for everyone to enjoy, as you’ll see in these pictures!
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A Dealer’s Journal ACR of South Florida Action Assets AFS Acceptance LLC AmeriTag Assured Vehicle Protection Auction123.com Auto Data Direct, Inc. Autodoc Auto Search Technologies 20 — Independent Dealer — November 2011
AutoTrader.com Auto Use CAR Financial Services CallSource DealerTrack Dennis LeVine & Associates, PA eBay Motors EliteTrak GPS Elite Underwriters Inc GWC Warranty
GoldStar GPS | EnfoTrace GPS ICSF Insurance Auto Auctions J.P. Morgan Chase Lauderdale Paper & Balloon Co. Leedom Group Manheim MarkOne Financial Mechanical Breakdown Protection, Inc. National Auto Lenders www.fiada.com
NIADA Certified Northwood University OPENLANE RepoCity RouteOne LLC Sanford/Cocoa Auto Dealers Exchange Sensible Auto Lending SmartAuction Stars GPS Sterling Credit Corporation www.fiada.com
Tax Refund Services Tax Max Triumph Consulting Services, LLC UCMLINK.com United Acceptance Inc. Vehicle Dealer Insurance a Division of
Wayne Reaves Software & Websites Westlake Financial Services Westlake Financial Services ALPS Williams & Stazzone Insurance Agency, Inc. Your Auction, Inc.
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Download Convention Photos from our online photo gallery. Go to www.FIADA.com and click on “Convention.”
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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!
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2011-2012 FIADA EXECUTIVE COMMITTEE:
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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November 2011 — Independent Dealer — 29
INDUSTRY NEWS Dealer Advisory Issued for RV Dealers The Bureau of Motor Vehicle Field Operations is simplifying the current requirements for licensed recreational vehicle dealer license at an established location. Subsequent to an approval letter from the manufacturer, importer or distributor, the line-make will be added to the dealer’s license immediately. The Department will advice the recreational vehicle dealer, manufacturer, importer or distributor and the responsible Regional Office via e-mail of the line-make addition to the existing license. The change will eliminate the need for a dealer to complete an application. Once the dealer receives the e-mail advising that the additional linemake has been added, they can begin accepting shipments and selling the new line-make. For more information, go to www. flshmv.gov/html/titlinf.html and select “Dealer, Manufacturer, Distributor and Importer Information.”
Investors Willing to Back Buy Here Pay Here’s There is a new wave of investors lining up to cash-in on buyhere, pay-here dealer portfolios. According to a recent article in the Los Angeles Times, private equity firms, payday lending chains and stock investors are very interested in capitalizing on what the National Alliance of Buy Here Pay Here Dealers estimates to be an average 38% profit margin on each sale. That is more than double the profit margins of convention retail car chains. Any dealer will tell you that buy-here, pay-here can be risky, but what makes the idea appealing to investors is the idea of “securitzation,” where loans are being bundled into securities in much the same way subprime mortgages were a few years ago; a practice which some think was the jump-start to the country’s economic meltdown. Never-the-less, in the last two years, investors have bought
more than $15 billion in subprime auto securities. As risky as they are, backed mainly by installment contracts signed by people with a history of bad credit, most of these bonds have been rated investment grade and some have been given the coveted AAA rating. Investors are sold on the idea that with tens of thousands of loans lumped together, the securities are safe even if some of the loans prove worthless. Critics warn that the rush to securitization might encourage careless lending by dealers eager to sell more loans. However, that thought is balanced by the belief that investor scrutiny will require businesses to tow the line.
NIADA Provides New Visa Platinum Credit Card for Members NIADA’s new Visa Platinum Credit Card Program, which replaces the former Bank of America card program, is now available to members. Here are the key details of this new member financial services program: • • • • •
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