DECEMBER 2016
www.FIADA.com
Information and Insight for Florida Used Car Dealers
The new year is almost here, and FIADA is ready to kick it off. Check out all the ways you can power on with us starting with Page 14.
FULTON, MO PERMIT NO. 38
PA I D PRST STD U.S. POSTAGE
www.fiada.com
December 2016 — Independent Dealer — 1
PAID ADVERTISING
2 — Independent Dealer — December 2016
www.fiada.com
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 Lisa Compagno President Scott Lanier, CMD Senior Vice President Jim Winterick, Sr. Chairman of the Board
Contents December 2016
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 Lisa Compagno
6
Executive Director’s Message Lisette Mariner, CAE
8
Top 10 Things to Know Our new feature gives you quick information about a variety of topics. First up, marketing with social media.
10
Back to Basics Terry Myers reminds you to be careful about how to collect missing information, such as signatures, on legal forms.
Terry Myers Educational Instructor
12
Membership News
Jason Berthiaume Education and Marketing Coordinator
13
Help Give Back by Hosting a Cars for Kids Event Consider helping out the Florida Sheriffs Youth Ranches by organizing a car donation drive at your dealership.
14
2017: Let's Get Started Start the New Year off right by getting involved in your Association.
20
Employee Relations Problems Emerge for Dealers Not only do you have to be aware of industry rules and regulations, but as a s small business owner you must be compliant with both the Equal Opportunity Commission and the National Labor Relations Board.
24
A Look at Current Legal Issues Attorneys Tom Hudson and Nicole Munro recap recent federal and legal developments of interest to dealers.
26
Effectively Communicate with Boomers and Millennials Everybody has a smartphone these days, but the way you communicate with mobile marketing messages is generational.
30
Industry News
Christopher Leedom Secretary Brad Joel Treasurer Frank Fuzy Regional Vice President George Hickey Regional Vice President Steve Marbais, CMD Regional Vice President Dino Mercurio Regional Vice President Brandi Noegel Regional Vice President FIADA STAFF Lisette Mariner, CAE Executive Director
Amelia Tillman Membership Director Christy Taylor Editorial/Advertising
POSTMASTER:
Send address changes to
FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Call/Text: (800) 237-0448 Fax (850) 385-3251 • www.FIADA.com The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308 The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.
www.fiada.com
December 2016 — Independent Dealer — 3
FROM THE PRESIDENT
The Time for Giving BY LISA COMPAGNO, FIADA PRESIDENT
I
t’s that time of year again. The time of year we reflect on what we have to be thankful for; the time for family and the time for new beginnings.
We have had a tremendous year! We were honored with one of our members, Scott Lanier, being named the National Quality Dealer of the Year and our Executive Director, Lisette Mariner, being named the Executive Director of the Year. We essentially swept the top two categories at the National Convention in June 2016. We also had a big sweep at the polls during the 2016 election for Florida seats. We turned a Florida Senate seat in Miami Dade and picked up a seat in Alachua County. We also kept a strong majority in the Florida House; losing none of the folks that have traditionally supported our industry. Additionally, we did well in the national landscape with 27 of the 30 candidates we supported winning their elections. With your help, through our PAC fund, we will continue to see success on the legislative front. You can easily donate to the PAC online at www.fiada.com under the “Legislative” tab or use the form on page 21. This year we also embarked on revising our Mission Statement and implementing a Vision Statement for the FIADA. The FIADA’s mission is to protect, promote and preserve independent automobile dealers, vendors and consumers through education, ethical practice, professional networking and advocacy of fair legislation/regulation. Our mission is clear and concise, as it should be. Our vision is to be the leading resource for Florida’s independent automobile industry. As the leading resource for Florida’s independent automobile industry, we strive to set a standard of excellence. This
4 — Independent Dealer — December 2016
includes endeavoring to be philanthropic and giving back to the community. We do this by supporting the Florida Sheriffs Youth Ranches (“FSYR”) throughout the year with Cars for Kids events and at our annual convention. The mission of the Youth Ranches is to “prevent delinquency and develop lawful, resilient and productive citizens.” The Youth Ranches is a perfect fit as our charitable organization of choice because one of the ways the Youth Ranches raises money is by selling cars. That’s right they have their own dealership. The biggest difference, however, is that they can only obtain their inventory through donations. Thus, they rely on folks like you and me to donate vehicles so that they can raise funds for their programs. So, please consider hosting a Cars for Kids event this coming year and donating a vehicle to the Youth Ranches. As part of the event, the Youth Ranches will send a letter to every single donor in your area and tell them that your dealership is hosting a Cars for Kids event. This is a great way to get exposure for your dealership and to build up some good will particularly with local law enforcement. Check out page 13 for more information. Finally, in the spirit of giving, consider giving back this year while you do all of your holiday shopping. There are a handful of websites that allow you to give to a charity of your choice while you shop. Check out smile.amazon.com; goodshop.com; or igive.com. On smile.amazon.com you can choose the Youth Ranches, or any charity of your choice, to give back. Happy Holidays and Cheers to a Happy New Year! Lisa Compagno FIADA President
www.fiada.com
December 2016 — Independent Dealer — 5
PAID ADVERTISING
www.fiada.com
EXECUTIVE DIREC TOR’S MESSAGE
Invest in You BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR
I
provides an opportunity for you to give back to your t’s hard to believe we’re saying goodbye to another year. industry. Your executive committee and board of directors As we close out 2016, I want you to consider one last are made up of volunteers that give of their time and gift to yourself. Commit to yourself that you will take expertise. They have made a commitment to you as a time to invest in your future. At FIADA we strive to provide member of the association. Help support these wonderful the most up to date and useful resources for dealers. We provide a number of resources, but one that is long lasting is that of education. Whether it’s through webinars, Remember to be an active participant in shaping your convention seminars, online or in future. FIADA offers many member benefits, such person trainings, education is the key to as, complimentary technical assistance, free online success.
continuing education, auction and service coupons,
On January 13, join us at the and networking opportunities. Jacksonville Marriott for the first Town Hall of the year. We’ll have an update on men and women by making a commitment today to serve the labor overtime rules, legislative outlook, and legal issues on a committee. It really isn’t much time at all to serve on a and how to protect your business. Through the generous committee. Committees have begun meeting for the year, so support of sponsors like Auto Data Direct and Wayne Reeves don’t miss this opportunity to get in on the ground floor. we can continue to provide a great learning opportunity for If you are interested in serving on a committee or just have dealers for free. Register to attend at www.FIADA.com. an idea you’d like to share, please contact me at lisette@fiada. com or 800.237.0448 ext. 100. Remember to be an active participant in shaping your future. FIADA offers many member benefits, such as, FIADA has so much to offer and so many opportunities for complimentary technical assistance, free online continuing you to participate. We give you the gift of education and education, auction and service coupons, and networking always watching out for your best interest. Please remember opportunities. We are always researching opportunities to to register to attend the next town hall meeting. We are bring more value to your membership. Your feedback is thankful for your membership. Be an active participant and always appreciated. One way to get involved and give back use your benefits. If you have an idea or a need, don’t hesitate is to participate on a committee. Committees meet via to let me know by contacting me at lisette@fiada.com. conference call and discuss new programs, current issues and explore ways to improve FIADA services. We have Have a wonderful holiday season and happy New Year. See something for everyone. you in January. Your service on a committee helps the association and 6 — Independent Dealer — December 2016
www.fiada.com
PAID ADVERTISING
www.fiada.com
December 2016 — Independent Dealer — 7
1
1 2 3 4 5
MEMBER 2016
Things to Know
TOP
SOCIAL MEDIA MARKETING We're starting a new feature in Independent Dealer, the Top 10 Things to Know. If you have a suggestion for a topic, send it to us at info@fiada.com. This month, we're looking at the top things to think about when using social media to market your business from Tamsin Fox-Davies, the Senior Development Manager at Constant Contact.
SOCIAL MEDIA IS SOCIAL
It’s about interaction, not broadcasting. This means that you should be having conversations, not just blasting your own promotions all the time (in fact, don’t do that at all.)
YOU CANNOT OUTSOURCE A RELATIONSHIP
Be careful if you’re considering outsourcing your social media marketing because you can’t delegate personal connections, and that’s what social media is all about. If you want help with social media, think about having someone else schedule your “content-type” posts (e.g. sharing articles), but deal with replies yourself.
IT'S NOT MAGIC
Social Media marketing won’t fix all your problems overnight. It's a marathon, not a sprint and you have to give it time and sustained (if low level) effort. Think months, not days.
PICK YOUR CHANNELS
You don’t have to be on ALL social media platforms. Start where your customers are and where you have the most fun. It will be easier for you and most effective in marketing terms.
DO ONE THING AT A TIME
Don’t feel like you have to launch three different social accounts at the same time. Just pick one, get used to that, and then add another. Facebook is often the easiest, because you are probably already using it on a personal level.
8 — Independent Dealer — December 2016
6 7 8 9 10
VARY YOUR POSTS
Don’t just post one sort of thing on social media. Mix it up with images, video, text, sharing other people’s links, sharing your own stuff, and having conversations. It will generate more engagement and is less boring for you!
YOU CAN LEAD WITH SOCIAL, BUT IT DOESN'T WORK ON ITS OWN
Social media is only part of your marketing toolkit. You still should evaluate and assess your more mainstream marketing and advertising tools. Remember to connect these channels to your social media efforts too, (e.g. putting social media links on your website and business cards.)
EMAIL IS A SOCIAL MEDIUM TOO
People share emails and forward them to friends. Encourage your readers to do just that with your emails to extend the reach of your message.
KEEP LEARNING
Social media is moving fast. Trends are changing and new channels popping up all the time. If you’re active on social, you’ll pick things up as changes happen.
LET GO AND RELAX!
Many business owners are afraid of social media because they worry about competitors or disgruntled clients saying negative things about them. The truth is that this could happen anyway, so stay connected and handle these situations when they arise. www.fiada.com
PAID ADVERTISING
www.fiada.com
December 2016 — Independent Dealer — 9
BACK TO BASICS
Oops. Did You Miss Something? BY TERRY MYERS
W
e have all experienced that moment when we realize a customer’s signature or initial is missing on paperwork we about to file. Usually, after they are out the door. Who wants to make that call to arrange to get it corrected?
501.976 Actionable, unfair, or deceptive acts or practices.—It is an unfair or deceptive act or practice, actionable under the Florida Deceptive and Unfair Trade Practices Act, for a dealer to: (9) Obtain signatures from a customer on contracts that are not fully completed at the time the customer signs or which do not reflect accurately the negotiations and agreement between the customer and the dealer. Even though it may be embarrassing, the call needs to be made. The practice of “sunshine signatures” is an illegal act. The professional will arrange to meet with the customer and complete the transaction legally. Remember, the customer is supposed to have a copy of the original contract and in a court situation, the original and the copy need to match, completely. Here's a hint: purchase Post-It flags. The one with the different colors on them. Strategically place them where you need to remember to obtain signatures,
Read all contracts and agreements you offer customers before you ask them to sign them so you will be able to explain what they are agreeing to by signing.
10 — Independent Dealer — December 2016
initials, witnesses, etc. For example, green for customer signatures and/or initials; blue for dealership signatures and/or initials; yellow for witnesses; white for notary, etc. You get the idea. When the signature, initial, etc. is collected, remove the appropriate flag for recycling. If any flags remain showing, like on the backside of a document, address the need and remove the flag. Do not use a highlighter. Be careful to only get signatures and initials on those lines relevant to what the customer and dealer have agreed to. Getting signatures on every line may mean the customer is signing for something he/she did not agree to. That would not bode well in a legal challenge. Read all contracts and agreements you may offer to customers, before you offer them. Understand what they say and what you and your customer will be agreeing with. Anything you might not understand should be discussed with the company that created the contract and your legal counsel. Oops. Did I miss something? I hope not. If I did, contact me direct. We will continue other (bracket) elements of the 501.976 conversation next month…. Articles are the opinion of the author and are not intended to be legal or accounting advice. The intent is to share thoughts and concepts that help the business owner(s) find new and perhaps revisit, ways to be as successful as they are capable of being. Terry can be reached at (727) 804-7375. Email: tmyers@floridaautodealerschool.com. Feedback is appreciated and encouraged. Terry LB Myers, author, lecturer, FIADA instructor, FADS owner/ instructor.
PAID ADVERTISING
Get it Now!
Remember, DMV requires that all Florida Dealers renew their Continuing Education credit every two years. Get a head start over at www.FIADA.com. Click on the Dealer Training School tab to see online and in-person options for CE credit.
PAID ADVERTISING
December 2016 — Independent Dealer — 11
MEMBERSHIP NEWS
New Members
NOVEMBER 2016
BETTER VALUE AUTOS Hampton, FL Gino Migueli Gerding Sponsor:John Cousins/Dealers Auto Auction
MIDNITE MOTOR CLASSICS Margate, FL Ed Gorgone Sponsor: Anthony Compagno
JUSTICE CHUKU, JR Altamonte Springs, FL Sponsor: Kevin Scott
NOTICE'S AUTOMOTIVE SALES & SERVICE CENTER, LLC Palm Bay, FL Alvin Ainsley Notice Sponsor: Terry Myers
CONTINENTAL MOTOR GROUP Stuart, FL Onofrio Bruno Sponsor: Anthony Compagno DAVID FAMILY AUTO, INC New Port Richey, FL Peter David Sponsor: FIADA DAYTONA DIRECT AUTO Daytona Beach, FL Sponsor: Terry Myers DEALER CONSULTING, LLC Ocala, FL Kevin Scott Sponsor: Kevin Scott FLORIDA AUTO WORLD LLC Osprey, FL Sherif Bastawros Sponsor: Kevin Scott FRIENDLY AUTO SALES LLC Alturas, FL Terry Keen Sponsor: Terry Myers GIVE AWAY AUTO SALES Pinellas Park, FL Muawea Rawashdeh Sponsor: Kevin Scott IROTEMA HOLDINGS LLC Land O Lakes, FL Ivan Tello Sponsor: Amelia Tillman J J KANE AUCTIONEERS Maple Shade, NJ Kimberly Minix Sponsor: FIADA
PERSONAL CAR BUYER Trenton, FL Michael Croft Sponsor: Terry Myers SAVE A LOT AUTO LLC Stuart, FL Karen Gibney Sponsor: Anthony Compagno STREET & SAND TOYS AUTO Oakland Park, FL Michael Asres Sponsor: Terry Myers THOROUGHBRED DEALER SERVICES Flowery Branch, GA Bobby Whiten Sponsor: FIADA TRUCKS UNLIMITED INC Lake Worth, FL Victor Tolman Sponsor: Anthony Compagno US AUTO SALES Lawrenceville, GA Andrew Garcia Sponsor: Terry Myers WELCH AUTOMOTIVE GROUP, INC. Clermont, FL Victor A. Gomez Sponsor: Lisette Mariner WHITES LEASING Orlando, FL Mauricia Blanco Sponsor: Terry Myers
12 — Independent Dealer — December 2016
Rejoining Members 700 CREDIT Southfield, MI Ann Carson Sponsor: Amelia Tillman AMERICA'S AUTO AUCTION JACKSONVILLE Jacksonville, FL Brian Thomas Sponsor: Amelia Tillman AUTOFLEX, LLC Gainesville, FL Govinda Romero Sponsor: FIADA
Renewing Members
NOVEMBER 2016 GETHSEMANE AUTO SALES CORPORATION DBA MIX AUTOS Orlando, FL Anderson Couto Sponsor: Amelia Tillman NEW GENERATION MOTORS LLC DBA NEWGEN MOTORS Lakeland, FL Anna Raffoul Sponsor: FIADA
NOVEMBER 2016
50+ Year Members John Rogers Used Cars 40+ Year Members Noegel's Auto Sales ABC Autos, Inc. 20+ Year Members ADESA Jacksonville 10+ Year Members DriveTime Sales & Finance Passport Leasing Corp. United Acceptance, Inc. BC Motor Company, Inc. Sheriffs Ranches Enterprises, Inc. Automotive Fleet Enterprises Reliable Used Cars, Inc. dba Deland Reliable Cars Central Florida Used Car Mart Frazer Computing, Inc. Alas Auto Brokers Inc. Corbin Auto Sales Gibson Truck World March Auto, Inc. Jimmie Wells Auto Sales, Inc. Under 10 Year Members MITS at CMI, LLC First Place Auto Sales Inc Used Car Supermarket Financial Insurance Brokers International Owl Automotive Group Inc Hermanos Auto Wholesale DBA The Car Shack Presidential Leasing Inc Kathy's Kars Orlando Auto Auction Hertz Car Sales Beach N Rides and Rentals Florida Highline LLC Jim Douglas Sales and Service, Inc. Lake Auto and Truck Autocar Financial LLC License Plates and Frames Younes Investment Inc HBK CPAs & Consultants
Orlando, FL Starke, FL Tampa, FL Jacksonville, FL Tempe, AZ Ft. Lauderdale, FL Smyrna, GA West Palm Beach, FL Live Oak, FL Pinellas Park, FL Deland, FL Mascotte, FL Canton, NY Sunrise, FL Chipley, FL Sanford, FL Jacksonville, FL Saint Augustine, FL Largo, FL Gainesville, FL Tallahassee, FL Coral Gables, FL Longwood, FL Hialeah, FL Delray Beach, FL Saint Petersburg, FL Celebration, FL Winter Park, FL Bradenton, FL Windermere, FL High Springs, FL Mineolla, FL Weston, FL Windermere, FL Kissimmee, FL Canfield, OH www.fiada.com
Help Give Back by Hosting a Cars for Kids Event FIADA and the Florida Sheriffs Youth Ranches have a long-standing relationship, with dealer members showing their support through donations and community events. Another way to help is by hosting a “Cars for Kids” event. Dealers can partner with their local sheriff and organize a car-drive, where customers can come to their lot and donate unwanted vehicles in good condition. Donations of clothing, appliances, jewelry, home furnishings and similar items are also accepted at these events as the FSYR can resell those items in its thrift store.
Thanks to the generosity of individuals and groups around the state of Florida, the sheriffs' original dream has become a reality for many youth and their families. As a result of their caring gifts, the Florida Sheriffs Youth Ranches now operates four residential campuses, two summer camping locations and youth outreach programs throughout the state.
Dealers who would like to host an event can contact the FIADA
Nearly five years ago, the FIADA voted to make the Florida Sheriffs Youth Ranches the official community service project of the Association and began a rewarding partnership that has helped raise thousands of dollars for the youth ranch organization and helped the children who participate in its programs. There are a few ways FIADA members can get involved and give back to the Florida Sheriffs Youth Ranches. The first is by donating working, turn-key vehicle that FSYR can resell on their lot. They do not have the ability to repair or restore vehicles, so only ones that are in working condition and fit for selling are accepted. www.fiada.com
office at (800) 237-0448. FIADA members can also learn more about the Florida Sheriff Youth Ranches by visiting their website at www. seriffsranchesenterprises.org.
Recycle your old, used, forgotten keyless remotes, smart keys, and remote head keys by selling them to us. WE BUY Smart Keys Remote Fobs Key/Remote Combos
WE PAY
UP TO $25 PER USED REMOTE!
For more information call us or email:
727.667.6157 | info@cashforkeyless.com
PAID ADVERTISING
I
n 1957, a small group of Florida sheriffs saw the need for a residential care facility for troubled boys. With a little bit of cash and a big dream, they pooled their wisdom and efforts and watched their dream become a reality. Within a short period of time, they were helping many young boys turn their lives around to become productive and responsible adults.
December 2016 — Independent Dealer — 13
It's the new year, and FIADA is ready to power on the programs, benefits and incentives you need to make 2017 the best year yet. President Lisa Compagno has three goals for the Association this year: increasing membership, increasing PAC contributions and increasing member participation. An easy way to get involved this year, is by joining a FIADA committee. Not only will you be able to direct and influence the way your benefits work for you, but you will become a part of a network of dealers who are interested in encouraging and empowering each other to succeed. Below are descriptions of the current FIADA committees. There is no experience necessary to serve on a committee and members meet periodically via conference call. Just bring your ideas, suggestions and opinions. You can declare your interest online at www.FIADA.com and click on the About tab, then Committees or give Lisette Mariner a call at (800) 237-0448. Convention: The Convention Committee is an ad hoc committee that is charged with reviewing educational programs, sponsorship opportunities, entertainment, theme and general assistance with the annual convention. Membership: The Membership Committee is responsible for developing membership in FIADA. Member Benefits: The Member Benefits Committee shall have the authority to recommend FIADA policy concerning all FIADA approved member benefit programs. This includes recommendation of approval of all new programs, amending or canceling current programs. Legislative: The Legislative Committee has the authority and duty of reviewing the progress of legislation at the state level, making recommendations regarding legislative issues and keeping the FIADA Executive Committee informed on all legislative matters affecting the independent automobile dealer industry and FIADA.
Keep reading for more opportunities to get involved with FIADA in 2017. 14 — Independent Dealer — December 2016
www.fiada.com
DON’T LIKE IT? DON’T KEEP IT. 30-DAY RETURN GUARANTEE
Purchase a 30-day guarantee on off-lease and rental vehicles offered in the DealerBlock Prime sale on ADESA.com. Pay just $50 for a 30-day guarantee.
Need to return the vehicle? We’ll pick it up from your lot!
Transportation refund too! If you use CarsArrive Network for transport of an ADESA Assurance vehicle, we’ll refund your transportation cost, if the vehicle is returned.
ADESA Assurance buyer protection program and CarsArrive Network must both be selected at time of purchase to qualify for transportation refund. Vehicle must be returned in same condition as purchased within 30 days from purchase date. ADESA Assurance refund covers vehicle sale price and buy fee; transportation costs are only included if CarsArrive Network is used for transportation. See terms and conditions for full details. ADESA Assurance program may be cancelled by ADESA at any time and without notice.
© 2016 ADESA, INC.
PAID ADVERTISING
Log in to ADESA.com and click the “DealerBlock Prime” button to find eligible inventory.
www.fiada.com
December 2016 — Independent Dealer — 15
TOWN HALL MEMBER 2016
Join us for a day of learning and networking where you will have the opportunity to ask industry experts important questions as well as get up-to-date on the latest legal issues facing auto dealers.
FRIDAY
FEATURED SPEAKERS
Jan. 13, 2017
10:00 AM - 2:30 PM Jacksonville Marriott 4670 Salisbury Rd Jacksonville, Florida 32256
LISA HODGDON Attorney, Broad and Cassel Employment Law
JASON LAMBERT Attorney, Broad and Cassel Dealer Laws
register online at www.fiada.com/events Town Hall meetings are FREE for all dealers to attend. Attendees enjoy a complimentary lunch made possible by event sponsors Auto Data Direct, Inc., Golden Eagle Management Services, and Wayne Reaves Software.
come for the town hall and stay for the fiada board of directors meeting Here’s your chance to help your industry. Attend the FIADA Board of Directors meeting and offer your input and insight. All members are encouraged to join the conversation on Sat. , January 14. Details available at FIADA.com 16 — Independent Dealer — December 2016
www.fiada.com
PAID PAID ADVERTISING ADVERTISING
www.fiada.com
December 2016 — Independent Dealer — 17
Calling all Members, Vendors and Partners! Here is your chance to strengthen your Association and earn some extra cash at the same time. The FIADA MVP program offers you $50 for every new member you sign up. It’s a win-win for everyone! FIADA is ready to coach you to victory. Get your playbook today, complete with recruiting tools, and don’t forget to sign our roster so we know you are an official member of our team. Head over to www.FIADA.com to sign up.
YOU'LL FIND THE TOOLS YOU'LL NEED AT FIADA.COM Recruiting members is easy, especially with the FIADA MVP program. We have assembled helpful talking points, promotional materials, application forms and more at www. FIADA.com. Click on the membership tab and then MVP Referral Program to download your materials. 18 — Independent Dealer — December 2016
www.fiada.com
PAID ADVERTISING
www.fiada.com
December 2016 — Independent Dealer — 19
E M P L O Y E E R E L AT I O N S
Employee Relations Problems Emerge for Dealers BY RANDY HENRICK
The Equal Employment Opportunity Commission and the National Labor Relations Board have the power to bring fines and penalties against dealers. Take the time to review some of these hot topic issues to make sure you are compliant.
M
anaging employees and nonemployees at a dealership has become a more challenging problem in light of recent activities by the Equal Employment Opportunity Commission (EEOC) and the National Labor Relations Board (NLRB). Both have the power to bring enforcement actions for fines and penalties against dealers. Let's look at some of the issues that are hot right now
accommodations" for a job applicant (all aspects of the employment relationship are covered) who failed the dealership's drug test due to the finding of a substance that had been legally prescribed by her doctor. "The list is the list" was the dealer's position in withdrawing an offer of employment despite the employee showing that the banned substance did not affect her ability to perform the duties of the job.
Americans with Disabilities Act (ADA)
Courts analyze failure-toaccommodate claims via the following approach: (1) The plaintiff bears the burden of establishing that he or she is disabled; (2) The plaintiff bears the burden of establishing that he or she is otherwise qualified for the position despite her disability: (a) without accommodation from the employer; (b) with an alleged essential job requirement eliminated; or (c) with a proposed reasonable accommodation; (3) The employer will bear the burden of proving that a challenged job criterion is essential, and therefore a business necessity, or that a proposed accommodation will impose an undue hardship upon the employer. The EEOC emphasized that even when employers are legally permitted to conduct drug tests, they must accommodate qualified persons with disabilities. If the failed drug test resulted from the legal use of a prescription drug in accordance with her doctor's orders and the drug
The ADA became law in 1990. The ADA is a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public. It covers both discrimination in employment and prohibits places of public accommodation from discriminating against individuals with disabilities. A dealership is a place of public accommodation. The employment provisions are enforced by the EEOC while the anti-discrimination in places of public accommodation provisions are enforced by the Department of Justice (DOJ). In August 2016, the EEOC brought an ADA action against a dealership for discrimination in employment by refusing to make "reasonable 20 — Independent Dealer — December 2016
will not prevent the employee from performing the essential functions of the job, the employer will likely need to accommodate the employee's drug use. EEOC v. Bell Leasing, Inc., Civil Action No. 2:16-cv-02848 filed August 25, 2016 in the U.S Court for the District of Arizona.
Requiring Employees to Arbitrate Workplace Disputes and Waive Class Actions
For a good time now, the NLRB has taken the position that it is unlawful for employers to require employees to arbitrate their grievances with the employer and waive the right to bring a class action. Their thinking is that the class action waiver impedes the employees' right to "concerted action" against the employer. Until recently, most federal Circuit Courts of Appeal had not agreed with the NLRB and allowed mandatory arbitration with class action waivers to proceed. However, this year two federal Circuit Courts, the 7th and the 9th Circuits, have adopted the NLRB's position and indicated that mandatory arbitration with class action waivers does indeed violate employees' rights to concerted action under the National Labor Relations Act. Lewis v. Epic Systems Corp., 823 F.3d 1147 (7th Cir. 2016); Morris v. Ernst & Young, 2016 U.S.App. LEXIS 15638 (9th Cir. August 22, 2016). The 7th Circuit Continued on page 22. www.fiada.com
SUPPORT THE FIADA PAC Your PAC Contribution helps spread awareness and gain support of issues affecting independent dealers in the state’s capitol. There’s still time to get your contribution in before the session starts if you make it today.
CONTRIBUTION INFORMATION Contributor’s Name:_________________________________________________________________________ Dealership/Company:________________________________________________________________________ Street Address, City, State, Zip:____________________________________________________________________
q
Check q
q
$500
Credit Card (one time contribution) q q
Credit Card Information:
$250 q
q Visa
$100 q
q
MasterCard
Monthly Credit Card Contribution (until cancel)
$50 q
q
$25
q
American Express
_________ q
Discover
PAYMENT INFORMATION 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
December 2016 — Independent Dealer — 21
EMPLOYEE RELATIONS PROBLEMS continued from Page 20.
covers Illinois, Indiana, and Wisconsin and the 9th Circuit covers Alaska, Arizona, Idaho, Montana, Nevada, Oregon, Washington, and California, although the California Supreme Court rejected the NLRB's position so the prohibition on class action waivers does not apply in California state courts Iskanian v. CLS Transportation, 59 Cal. 4th 398, 327 P.3d 129 (2014). Until the Supreme Court rules on this issue, if you are located in the 7th or 9th Circuit states and elsewhere as a best practice, it would be a good idea to revise your employee arbitration agreement (an arbitration requirement should always be in a separate agreement and not just in an employee handbook that says it does not create a contract of employment). One suggestion is to give your employees the right to opt out of the class action waiver within a reasonable period of time, say within 90 days from their start date. Also, include a provision stating that if the class action waiver is deemed unlawful for any reason, any class, collective, or group action will be heard in a court and not by an arbitrator. Class arbitration is unwieldy and undesirable.
Is Your New Hire an Employee or an Independent Contractor? Wage and hour suits comprise the majority of lawsuits brought against employers. The Fair Labor Standards Act (FLSA) provides substantial relief for employees, including attorneys' fees. Law firms have been springing up exclusively to bring FLSA claims. State law penalties can also be significant. For example, under the California Private Attorneys General Act, Lab. Code, § 2968 et seq., an aggrieved employee may bring a civil action personally and on behalf of other current or former employees to recover civil penalties for California Labor Code violations. Lab. Code, § 2699, subd. (a)
22 — Independent Dealer — December 2016
The federal government wants to presume that someone doing work for you is an employee unless you can meet the the test developed by the Department of Labor to deem someone an independent contractor. [http://webapps.dol.gov/elaws/whd/ flsa/docs/contractors.asp; http://www. dol.gov/whd/regs/compliance/whdfs13. htm]. Follow this test carefully or people you are paying 1099s with no benefits may be deemed employees entitled to benefits and retroactive pay. n August 2016, the NLRB made public an Advice Memorandum from its Office of General Counsel that effectively said that the misclassification of employees as independent contractors can constitute an unfair labor practice in and of itself. The NLRB does have significant remedial authority to provide "whole relief " to the charging party (the employee or union). In other words, upon finding that an employer has committed an unfair labor practice, the NLRB will order the employer to cease and desist from the unfair labor practice and to take affirmative action to remedy the violation such as back pay and benefits. Penalties can be imposed in private lawsuits with the employer being liable to pay an aggrieved employee's attorney's fees as well.
Exempt vs. Non-Exempt Employees
This has also become a hot issue because of issues concerning whether or not an employee is "exempt" on "non-exempt" from premium overtime pay requirements (generally 1.5 x their hourly rate). To be exempt, you need an exemption, and the minimum salary requirements for exempt "professional employees" (a person who performs duties requiring advanced knowledge in a field of science or learning, requires specialized instruction, who
consistently exercises discretion and independent judgment and who receives a salary or guaranty) and "administrative employees" (a person whose primary duty is non-manual work related to policies or general business operations who exercises discretion and independent judgment with little or no supervision and who receives a salary guaranty) has gone up from $425 per week ($22,100 per year) to $913.00 per week( $47,476 per year). "Highly compensated employees" must now make $134,004 per year. A number of specific auto dealer exemptions can exempt certain workers but for the exemptions for partsmen, salesmen, and mechanics to apply, the major part (over 50 percent) of their time must be spent selling or servicing the enumerated vehicles. These auto dealer exemptions must be strictly complied with to assert the exemption. This is a complex topic and this article is meant to call your attention to the fact that federal regulators are getting much more aggressive in policing practices that they believe cause federal tax revenues to be understated by employers. Expect this trend to continue. We have barely touched on some critical employment law issues. Now would be a good time to schedule a meeting with your employment lawyer to review your policies, employee handbook, and practices to mitigate your risks. This is one of the fastestchanging areas of law affecting dealers. Randy Henrick is a leading auto industry compliance consultant. This article is not intended as legal or compliance advice due to the unique nature of a dealer's situation in each state. Randy's articles do provide issues and best practices that you may want to discuss with your attorney or compliance advisor for possible adoption in your dealership. Email Randy at AutoDealerCompliance@gmail.com.
www.fiada.com
PAID ADVERTISING
www.fiada.com
December 2016 — Independent Dealer — 23
LEGAL ROUND-UP
A Look At Current Legal Issues BY THOMAS B. HUDSON AND NICOLE FRUSH MUNRO, HUDSON COOK, LLC
A monthly collection of selected legislative and regulatory highlights, and a recap of some of the many auto sale and financing lawsuits followed each month. COMPLIANCE TIP This month’s compliance tip is easy. Take a look at the FTC spot delivery enforcement action described below. You can bet that the FTC isn’t done with this topic, and that other dealers’ spot delivery practices will be targeted soon. Do you like spending money on big fines to federal enforcement agencies? If not, take your friendly lawyer to lunch and ask her to review your spot delivery procedures. Want a bonus tip? The actions below dealing with servicemembers highlight the enforcement agencies’ interest in protecting our men and women in uniform. Make sure you know the rules, not only because you are required to but because it is the right thing to do..
settlement with Wells Fargo Bank, N.A., d/b/a Wells Fargo Dealer Services, for allegedly violating the Servicemembers Civil Relief Act by repossessing vehicles of protected servicemembers without court orders. Wells Fargo agreed to modify its policies and pay over $4.1 million, including $10,000 to each affected servicemember, plus any lost equity in the vehicle, with interest, and a $60,000 civil penalty to the United States. Wells Fargo will also delete the repossessions for the affected servicemembers’ consumer reports.
FEDERAL DEVELOPMENTS FTC Moves on Spot Deliveries. On September 29, the FTC charged nine Los Angeles-area car dealerships and their owners with a wide range of deceptive and unfair sales and financing practices. The FTC's complaint challenged the dealerships' "yo-yo" financing tactics, described as abusive spot deliveries. The FTC alleged that the dealerships packed extra, unauthorized charges for "add-ons," or aftermarket products and services, into car deals financed by consumers, used deceptive advertising practices, and used phony online reviews to tout the dealerships and combat negative consumer reviews. The FTC's complaint also charged the defendants with violating the Truth in Lending Act and Regulation Z, and the Consumer Leasing Act and Regulation M, for failing to clearly disclose required credit information and lease information in their advertising.
(More) Protecting Servicemembers. On September 29, the OCC also assessed a $20 million civil penalty against Wells Fargo Bank, N.A. and ordered the bank to make restitution to servicemembers harmed by the bank's alleged violations of the Servicemembers Civil Relief Act. The OCC alleged that the bank failed to: (1) provide the six percent interest rate limit to active-duty servicemember obligations or liabilities incurred before military service; (2) accurately disclose servicemembers' active duty status to the court via affidavits before evicting them; and (3) obtain court orders before repossessing servicemembers' cars. The $20 million penalty reflects a number of factors, including the duration and frequency of alleged violations, the alleged financial harm to servicemembers, alleged deficiencies and weaknesses in the bank's SCRA compliance program, and allegedly ineffective compliance risk management. The OCC's order also requires the bank to take corrective action to establish an enterprise-wide SCRA compliance program to detect and prevent SCRA violations.
Repossessing Vehicles from Servicemembers. On September 29, the Justice Department announced a
Military Lending Act Exam Procedures. On September 30, the CFPB issued the procedures its examiners will use to
24 — Independent Dealer — December 2016
identifying violations of the Military Lending Act rule. For most forms of credit subject to the updated MLA rule, the compliance date for the amended regulation is October 3, 2016. Congress passed the MLA to address a perceived problem of high-cost credit as a threat to military personnel and readiness. In July 2015, the DoD issued a final rule expanding the types of credit covered by the MLA. The MLA protections extend to active duty servicemembers (including those on active Guard or active Reserve duty) and covered dependents. Under the Rule, creditors: (1) cannot charge servicemembers or covered dependents more than a 36 percent "Military Annual Percentage Rate," which generally includes the following costs (with some exceptions): finance charges, credit insurance premiums or fees, credit-related add-on products sold in connection with the credit extended, and other fees such as application or participation fees; (2) cannot require servicemembers or covered dependents to submit to mandatory arbitration or give up certain rights under state or federal law, such as the Servicemembers Civil Relief Act; and (3) cannot require servicemembers or covered dependents to create a voluntary military allotment in order to qualify for credit. Federal Appeals Court Curbs the CFPB. On October 11, in a case involving PHH Corporation, a mortgage lending company, the U.S. Court of Appeals for the District of Columbia Circuit declared that the CFPB’s structure, with a single director to be removed only for cause, violates the federal constitution, and declared that the Director could be removed by the President in the future. The court also rejected the Bureau’s interpretation of the Real Estate Settlement Procedures Act and the www.fiada.com
applicability of statutes of limitation to CFPB administrative actions.
Tom (thudson@hudco.com) and Nikki (nmunro@hudco.com) are partners in the law firm of Hudson Cook, LLP. For information, visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2015, all rights reserved. Single publication rights only, to the Association. (2/16). HC# 4848-8454-3277.
PAID ADVERTISING
CASE OF THE MONTH Dealership Did Not Commit Fraud or Breach Contract by Refusing to Sell Vehicle for Incorrectly Advertised Price: A woman saw a vehicle advertised online by a dealership for $19,991. The woman told the dealership that she wanted to buy the vehicle at that price, but the dealership told her that the advertised price was a mistake and that the vehicle was actually $36,991. The dealership offered to sell the woman the vehicle "at cost," which was $35,000. The woman refused the offer and sued the dealership for breach of contract and violation of the Illinois Consumer Fraud and Deceptive Business Practices Act. The trial court granted summary judgment for the dealership, and the Appellate Court of Illinois affirmed. The appellate court rejected the breach of contract claim, finding no valid and enforceable contract. The advertisement did not serve as the basis of a binding contract because it was not an offer to contract and did not reflect a price for which the dealership
intended to sell the vehicle. The appellate court then addressed whether the dealership committed fraud when it advertised the vehicle without intending to sell it at the advertised price. Even though the appellate court acknowledged that certain evidence supported some of the elements of a claim for fraud, it concluded that there was no evidence the woman suffered specific actual damages. The appellate court rejected her argument that her damages were the difference between the advertised price and the appraised value of the car. This case might be helpful in case your dealership makes a similar mistake, but sometimes seemingly small facts can make a difference, and other courts might analyze the issues differently. See Burkhart v. Wolf Motors of Naperville, Inc., 2016 Ill. App. LEXIS 630 (Ill. App. September 21, 2016).
www.fiada.com
December 2016 — Independent Dealer — 25
SALES & MARKE TING
Effectively Communicate with Boomers and Millennials BY ALEXIS LEEDOM AND PETER A. SALINAS
Smartphones and texting are really just a part of life now, for all generations. The key is understanding how to develop the right message to reach each customer.
M
illennials, those born between 1980 and 2000, have used the Web for entertainment, socializing and gathering information for most of their lives. Baby Boomers, born between 1946 and 1964 did not “grow up” on technology but are still comfortable using their smartphones to access information on mobile-ready sites as well as send and receive email and texts. Millennials and Boomers seem to have a commonality when it comes to texting, specifically. For 18 to
29-year-olds, texting is the most prevalent form of communication, and for nearly half of Americans between 30 and 49 the same is true. But, no matter if it is texting, email or an old-fashioned phone call the tone of conversation and messages to communicate between these two generations can greatly vary. Here are some tips and ideas to remember.
Baby Boomers
While individual preferences differ greatly, some general patterns emerge with this group. Adjust your format, style and tone to best fit the situation: Don’t be Tone Deaf. Be less casual and a little more formal than you might ordinarily be. Be friendly, but not familiar. Use the Right Medium. Just because the majority of Boomers are texting, it doesn’t mean that is the only way to reach them. Face-to-face: Best for lengthy conversations and emotional discussions.
26 — Independent Dealer — December 2016
Telephone: Lengthy, emotional discussions when meeting in person is not possible. Email: A powerful tool when used effectively. Texting: If your customer has texted you, it is safe to text them back. Emailing Tips. Sometimes an email might be a better idea then a text, but follow the right structure when sending it. • Subject Lines: Use informative words, give directions • Greeting: Use a formal greeting; “Hello” or “Good Morning” over “Hi.” • Body Copy: Get to the point quickly. Be precise and concise. • Action Items: Give clear direction as to the actions to be taken. • Proofread: Proofread, proofread, proofread. Once sent, it’s gone.
www.fiada.com
Clarify and Confirm. Regardless of the communication method, always clarify the discussion and confirm the course of action. Trust Your Instincts. If you think you’ve sent too much information, you likely have. If you feel a sentence is not clear, it probably isn’t. Don’t communicate until you are sure of what you are saying. Forty percent of seniors communicate via social media posts regularly with 85 percent texting as well as calling on their phones. Although baby boomers are not yet as active on these channels as millennials, their frequent use of technology means that marketers can successfully reach out to them digitally. Consider these statistics: • • • • •
83% of ages 51 to 59, 76% of those 60 to 69 and 61% of those 70 to 87 use the internet regularly. Baby Boomers hold 72% of US disposable income. 71% use a variety of online banking services at least once a week. 87% own a smartphone and 85% use it for texting. People 55-64 send 80 messages a month. There is 250-300% more engagement from text messaging versus email or social media.
www.fiada.com
How Age Groups Use Mobile Messaging Age: 18-29 30-49 50-64 65+ % % % % 68 47 26 8
Send or read a text message
Make or receive a phone call using a cellphone
50
41
40
18
Send or read an email Message
47
44
38
16
Post or read messages on Facebook, Instagram or other Social Media
38
20
17
6
Use Twitter, including posting or reading Tweets
14
3
2
0
Make or receive a phone call using a business landline
13
19
15
8
Make or receive a phone call using a home landline
7
6
10
17
Millennials
As of 2015, millennials are the largest age group in the workforce, according to the Pew Research Group. More than 33 percent of American workers are millennials. So, communicating effectively with this group is vital. Here are some suggestions and ideas to make your communication efforts successful: Purpose Matters. Millennials want a sense of purpose and feel they are part of something larger than themselves. Communicate context, big picture and importance to them. Clear Guidelines. Do not be vague with this group, but make sure all communication is clear and direct. Be specific, such as saying “this needs completion in two weeks” versus “ASAP.” Don’t say, “Read this and give me your thoughts.” Do say, “Review this and give me a bullet list of salient points by Friday at 2 p.m.”
Source: Gallup September 2014 Preferences. Millennials will usually opt for texting or SnapChat to communicate. Make sure they are aware of other communication options too. Since 76% of millennials prefer to receive texts over calls from companies because texts are more convenient and on their own schedule. Although 75% of millennials find text reminders helpful, only 30% receive them regularly. There is a massive opportunity for companies to engage with their customers via texting: Continued on page 28
December 2016 — Independent Dealer — 27
BOOMERS AND MILLENNIALS continued from Page 27.
•
• • • • • •
75% think receiving texts for appointments, deliveries, payments, promotions and surveys are helpful. 62% receive product offers or coupons. 59% receive account activity, payment reminders, fraud alerts. 56% receive order alerts or delivery notifications. 51% receive general appointment reminders. 32% receive security authentication prompts 22% receive satisfaction surveys
Mobile marketing and messaging is quickly becoming an integral part of the overall marketing strategy. There are 1 billion users now using the Facebook Messenger App, and over 1 billion using the WhatsApp Messenger App. It is estimated that the mobile messaging space is no a $23 Billion+ industry. Need more evidence? Adults spend an average of 4.7 hours a day on their mobile devices and mobile messaging apps take up more and more of that screentime. There are 2.5 billion registered mobile app users and mobile messaging apps have surpassed social media networks. As more Boomers and Millennials go through life, smartphone in hand, there are ever-more effective channels emerging for marketers seeking to reach and engage millennials. One of the most promising of these channels is mobile messaging: building a strong presence in the messaging app space and delivering consistently fun, engaging, and helpful content. So, the question is, are you texting? Alexis Leedom is the Brand Manager for TextmaxxPro. She can be reached at (800) 966.8733 or online at www. textmaxxpro.com. 28 — Independent Dealer — December 2016
INDUSTRY NEWS
Auto loans to subprime consumers dropped to record lows in Q3 Despite lingering subprime bubble rumors, the automotive financing market continues to get stronger and stronger. In fact, Experian's latest State of the Automotive Finance Market report shows that loans extended to consumers in the subprime tier fell 4.5 percent from the previous year, and loans to deep-subprime consumers dropped 2.8 percent to the lowest level on record since 2011. Looking specifically at used vehicle loans, the subprime sectors saw an even larger decrease. Loans to consumers with deep-subprime credit were down 5.3 percent to 5.11 percent, the lowest we've seen on record since tracking began in 2007. Newly originated loans to prime borrowers jumped 2 percent to encompass nearly 60 percent of auto loans financed in Q3 2016. "For anyone making doomsday predictions about a subprime bubble in the auto industry, Q3 2016 provides a stark reality check," said Melinda Zabritski, Experian's senior director of automotive finance. "This quarter's report shows that lenders are reducing the percentage of loans to the subprime and deep-subprime risk tiers while increasing the percentage to consumers with good credit. The most important takeaway here is to understand the market reality and not to be led astray by rumors or unsubstantiated facts. By doing so, lenders, dealers and consumers are able to make smarter decisions and more easily explore financing programs and other opportunities available to them." The report also found that average credit scores for both new and used vehicle loans are on the rise. For new vehicle loans, the average credit score climbed two points to 712 in Q3 2016, marking the first time average credit scores for new vehicle loans rose since hitting a record high of 723 in Q2 2012. For used vehicle loans, the average credit score jumped five points to 655. Thirty-day delinquencies were flat year-over-year, at 2.36 percent. However, 60-day loan delinquencies were up slightly, moving from 0.67 percent in Q3 2015 to 0.74 percent in Q3 2016. Credit unions gain market share as consumers search for low interest rates Perhaps the biggest shift from Q3 2015 to Q3 2016 was the growth in market share for credit unions. Credit unions grew their share of the total loan market from 17.6 percent in Q3 2015 to 19.6 percent in Q3 2016. For new vehicle loans, credit unions grew their share by 22 percent, going from 9.9 percent in Q3 2015 to 12 percent in Q3 2016. According to the report, interest rate increases played a key role in helping Continued on page 30. www.fiada.com
PAID ADVERTISING
www.fiada.com
December 2016 — Independent Dealer — 29
INDUSTRY NEWS Federal Court Injunction Stops Attempt to Increase Mandatory Overtime Pay A federal judge in Texas has issued a nationwide injunction that stops the Department of Labor's rule to extend mandatory overtime pay to more than 4 million salaried workers from taking effect. The rule, which was scheduled to take effect Dec. 1, would have doubled the maximum salary a worker can earn and still be eligible for mandatory overtime pay to $47,500. It would have had a significant impact on nearly every sector of the American economy, including automotive dealerships. U.S. District Judge Amos Mazzant's ruling agreed with a lawsuit filed by 21 states and a coalition of business groups that includes the U.S. Chamber of Commerce, which contended the rule is unlawful and arbitrary. Mazzant, who was appointed by President Obama, ruled the federal law governing overtime does not allow the Labor Department to decide which workers are eligible based on salary levels alone. The Fair Labor Standards Act says employees can be exempt from overtime if they perform executive, administrative or professional duties, but the rule "creates essentially a de facto salary-only test," Mazzant wrote in his 20-page ruling. "For now, this 11th-hour federal court injunction is a meaningful step to protect our dealer members and their small businesses from an unfounded mandate to pay higher wages," NIADA CEO Steve Jordan said. "Blocking this rule supports the idea that business owners and their employees know better how to classify and manage their workers than the federal government. We couldn't agree more." The Labor Department can appeal to the U.S. Fifth Circuit Court of Appeals, but that court has blocked other Obama administration actions in the past, including the President's executive actions on immigration in 2015. And the Labor Department could drop the appeal after President-elect Donald Trump takes office in January. During his campaign, Trump said the overtime rule was an example of the kind of burdensome business regulations he would seek to remove as president. 30 — Independent Dealer — December 2016
BOOMERS AND MILLENNIALS continued from Page 28.
boost credit union share. Interest rates for the average new vehicle loan went from 4.63 percent in Q3 2015 to 4.69 percent in Q3 2016. "Credit unions typically have the most competitive interest rates, so any time rates jump overall, it's a natural reaction for credit unions to see a rise in their market share," Zabritski continued. "With vehicle prices and loan dollar amounts rising, car shoppers are looking for any relief they can get. Credit unions' traditionally lower rates are obviously an attractive option." Other key findings for Q3 2016: • • • • • • • •
Total open automotive loan balances reached a record high of $1.055 billion. Used vehicle loan amounts reached a record high of $19,227, up by $361. The average new vehicle loan amount jumped to $30,022 from $28,936. Share of new vehicle leasing jumped to 29.49 percent from 26.93 percent. The average monthly payment for a new vehicle loan was $495, up from $482. The average new vehicle lease payment was $405, up from $398. The average monthly payment for a used vehicle loan was $362, up from $360. The average loan term for a new vehicle was 68 months.
For more information regarding this quarter's analysis, you can view the recorded webinar at http://www.experian. com/automotive/. To purchase historical information from Experian Automotive's historical research, visit http://www. experian.com/automotive/autostore.html.
DON'T FORGET TO RENEW YOUR RETAIL INSTALLMENT SELLERS LICENSE!
All licenses expire on December 31, 2016. This is a two year license that expires in the even years. Check your status using the online portal: http://www.flofr.com/StaticPages/WelcomeToOnlineServices.htm www.fiada.com
2016-2017 FIADA EXECUTIVE COMMITTEE:
LISA COMPAGNO President Palm Tree Auto Sales Stuart, FL (772) 288-2099
JIM WINTERICK, SR. Chairman of the Board Gulfstream Motor Credit Miami, FL (305) 253-2335
STEVE MARBAIS, CMD GEORGE HICKEY Regional Vice President Regional Vice President Bond Auto Sales, Inc. Marbais Enterprises, Inc. Ocoee, FL Tampa, FL 33604 (407) 877-7422 (813) 238-7478
CHRISTOPHER LEEDOM BRAD JOEL Secretary Treasurer AutoMaxx Splish Splash Auto Sales Sarasota, FL Princeton, FL 33032 (941) 309-1111 (305) 258-1191
BRANDI NOEGEL DINO MERCURIO Regional Vice President Regional Vice President Noegel’s Auto Sales Independent Credit, Inc. Starke, FL West Palm Beach, FL (904) 964-6461 (561) 686-8673
PAID ADVERTISING
FRANK FUZY Regional Vice President Century Motors of S. Fla., Inc. Pompano Beach, FL 33064 (954) 785-0369
SCOTT LANIER, CMD Senior Vice President Credit Cars Orlando, FL 32808 (407) 295-6211
www.fiada.com
December 2016 — Independent Dealer — 31
MANHEIM FLORIDA ALWAYS NEARBY.
Manheim Daytona Beach 1305 Indian Lake Road Daytona Beach, FL 32124 386.255.2500 Sale: Wed 3 PM Total Resource Auction every Wed 2:30 PM Manheim Fort Lauderdale 5353 S State Road 7 Davie, FL 33314 954.791.3520 Sale: Fri 9 AM Total Resource Auction Tue 9 AM Ford Open Sale every other Fri Manheim Fort Myers 2100 Rockfill Rd Fort Myers, FL 33916 239.476.9800 Sale: Wed 4 PM Total Resource Auction every other Wed 3 PM Specialty Sale last Wed monthly 2 PM Galloway Direct Off Site Sale 2nd & 4th Tues 12 PM Manheim Jacksonville 10817 New Kings Rd Jacksonville, FL 32219 904.768.9981 Sale: Thurs 1 PM Total Resource Auction every Thurs 12:40 PM Manheim Lakeland 8025 N State Road 33 Lakeland, FL 33809 863.984.1551 Sale: Wed 2 PM Specialty RV/Boat Sale 1st Wed monthly 9 AM
Manheim Orlando 11801 W Colonial Dr Ocoee, FL 34761 Sale: Tues 9 AM Highline Exotic Sale Kicks off every 4th Tues 11 AM with Mercedes & BMW Chrysler Closed Factory Sale bi-weekly on Mon 12:30 PM GM Closed Sales bi-weekly on Mon 1 PM Nissan Infiniti Closed Sale 1st Wed monthly 9 AM Manheim Palm Beach 600 Sansbury Way West Palm Beach, FL 33411 561.790.1200 Sale: Thursday 9 AM Exotic Highline Sale every 4th Wed 9:30 AM Manheim St Pete 14950 Roosevelt Blvd Clearwater, FL 33762 727.531.7717 Sale: Thurs Weekly 2:30 PM inops Regular Sale 3 PM Manheim Tampa 401 S 50th St Tampa, FL 33619 813.247.1666 Sale: Thursday 9 AM Total Resource Auction Mon 9:30 AM at Cone Road location Ford Factory Sale every other Wed 10 AM Manheim Caribbean 1050 Carretera 865 KM 4.7 Bo. Candelaria Toa Baja, PR 00949 787.261.7300 Sale: Thurs 12 PM Salvage Sale Thurs 11 AM
32 — Independent Dealer — December 2016
PAID ADVERTISING
Manheim Central Florida 9800 Bachman Rd Orlando, FL 32824 407.438.1000 Sale: Wed 9 AM Total Resource Auction Wed 8:30 AM “Manheim Imperial Nights” Sale Tues 4 PM Specialty Heavy Truck & Equipment Sale Second Thurs Monthly at 10 AM
www.fiada.com