fiada january 2k15 web

January 2015 — Independent Dealer — 1 www.fiada.com

As FIADA celebrates 75 years, we need you to help us gain history-making accomplishments in 2015.Be a part of the Association and join us this year.2.

JANUARY 2015

PRST STDU.S. POSTAGE

PAIDFULTON, MO

PERMIT NO. 38

www.FIADA.com Information and Insight for Florida Used Car Dealers

2 — Independent Dealer —January 2015 www.fiada.comPAID

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DealerIndependent

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 Jim Winterick, Sr. President

Paul Matton Senior Vice President

Dino Mercurio Chairman of the Board

Brad Joel Secretary

Lisa Compagno Treasurer

Scott Lanier Regional Vice President

Christopher Leedom Regional Vice President

Steve Marbais, CMD Regional Vice President

Phil Risley Regional Vice President

Govinda Romero Regional Vice President

FIADA STAFF Lisette Mariner Executive Director

Terry Myers Educational Instructor

Amelia Tillman Member Services

Christy Taylor Editorial/Advertising

POSTMASTER:Send address changes to

FIADA • 1840 Fiddler CourtTallahassee, FL 32308

(850) 385-2712 • Toll Free: (800) 237-0448Fax (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 inTallahassee and distributed to Florida new, used,

wholesale and lease/retail car dealers.Advertising rates are available upon request.

The statements and opinions expressedherein 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.

ContentsJanuary 2015

For members of the Florida Independent Automobile Dealers Association

C O LU M N S & F E AT U R E S

4 President’s Message Jim Winterick, Sr.

6 Executive Director’s Message Lisette Mariner

8 Keys to Insurance Kevin O’Connor

10 Member News

12 Let’s Make History This is a milestone year for the FIADA. Help us explore new ground and further the interests of Florida’s independent dealers.

14 FIADA:1971-1980 Let the 75th Anniversary begin! FIADA kicks off a feature celebrating the history of the Association.

18 Legislative Update FIADA Lobbyist Sandra Mortham

20 Another FIADA Town Hall Meeting is Coming Soon Plan to attend the next free educational session in January.

24 A Look at Current Legal Issues The monthly round-up of federal and legal issues affecting auto dealers.

26 Sales Manager’s Game Plan for the Day Give your sales staff focus and organization for great results.

30 Industry News

U P C O M I N G E V E N T S

January 16, 2015FIADA Town Hall Meeting • 10am -2pmFt. Myers, FL

May 8, 2015FIADA Town Hall Meeting • 10am -2pmJupiter, FL

July 10, 2015FIADA Town Hall Meeting • 10am -2pmCocoa Beach, FL

October 22-25, 2015FIADA Annual Convention & Trade ShowHilton Orlando, Lake Buena Vista, FL

4 — Independent Dealer —January 2015 www.fiada.com

We are having our first, Town Hall meeting of this year in Fort Myers on January 15. This is a great time to come meet other dealers. Presenters will be on hand discussing ways to make your business more profitable and avoid pitfalls that encumber our business. This will be followed on Saturday with our Board of Directors meeting. The business of the

Association is discussed, including finalization of our 2015 legislative agenda and our committees will report. Both of these meetings are open to dealers and your participation is appreciated. Remember it is your Association. Your profession. If you want to have a say in how your livelihood is derived then you need to be there. Rocky Blyer the football player from the Champion Pittsburgh Steelers spoke at our convention some years ago and I remember him saying a lesson he learned early in life. “Things are run by those who show up.”

Are you a champion? Are you preparing for the best year you ever had? The opportunities are there. Or are you just passing time? Hope to see our many friends from Southwest Florida in January, will you be a champion? All your friends will call you lucky.

Jim Winterick, Sr.FIADA President

F R O M T H E P R E S I D E N T

Luck is When Preparation Meets OpportunityBY JIM WINTERICK, SR., FIADA PRESIDENT

Here we are at the beginning of a new year. Hard to believe another one is done and in the books. As business people we look back on the experience

and evaluate the adjustment we should make for the upcoming year. Where were our forecasts and budget good and where were they lacking.

At the FIADA we go through a similar process. Instead of unit sales, gross profit, labor sales, cost of goods etc., we look for ways to increase our membership, and better serve the members we have. We also do our homework preparing for the upcoming legislative session in Tallahassee and support the national agenda that NIADA has in Washington. Input from our dealer members helps us to formulate the legislative issues we pursue. Our Legal and Legislative committee of fellow dealers assign to our staff the priorities we think are important. This is an open discussion to all members. The only catch: you need to participate. I am constantly amazed by people saying, “You guys need to do this or that.” If you are an independent dealer in the state of Florida the FIADA represents you. If you feel a subject needs to be looked at either legislatively or by change of rule, then get involved. It is your Association, no one else’s. The fellow dealers that work on the statewide issues are not paid. Their only motivation for donating their valuable time and money is the betterment to a profession that has given them so much. The selling of used vehicles is my profession. I take pride in the job and enjoy going to work every day. Some days the enjoyment is better than others. The challenges this profession gives to those willing to grab a hold for the ride can be rewarding.

If you are an independent dealer in the state of Florida the FIADA represents you. If you feel a subject needs to be looked at either legislatively or by change of rule, then get involved. It is your Association, no one else’s.


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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.

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E X E C U T I V E D I R E C T O R ’ S M E S S A G E

Your 2015 Plan BY LISETTE MARINER, EXECUTIVE DIRECTOR

We’ve had an amazing 2014 and we’re ready for 2015. Last year I asked you to be more involved and to start taking advantage of your member benefits.

Well I’m happy to report that many of you did just that. With over 200 dealers attending the FIADA Convention, we saw a 13 percent increase in dealer participation. Though we only saw a one percent increase in membership this year, I am confident that together we will spread the good news of the Association and what it means to be a member!

Things to look forward to in 2015 are the elimination of the Florida Hurricane tax that was levied after the horrible 2004 and 2005 hurricanes, FIADA’s 75th Anniversary celebration at the 2015 Annual Convention, and FIADA continuing to protect your interest. Other interesting things we might see are the Google car and the Apple watch. As technology shifts and cultures evolve, the industry will certainly adapt to meet our customers’ needs.

Come see what you’re missing at the next town hall meeting, January 16 at the Hyatt Place Ft. Myers. A panel of industry experts will discuss data security, legal issues and how to protect your business. Through the generous support of sponsors like Auto Data Direct, Wayne Reeves, and AFC we can continue to provide a great learning opportunity for dealers for free. Register to attend at www.FIADA.com. Save the date for our May 8 meeting in Jupiter and July 10 meeting in Cocoa Beach. Of course, you also don’t want to miss the FIADA 75th Anniversary event October 22-25 at the Hilton Orlando, Lake Buena Vista.

Remember to be an active participant in shaping your future. FIADA offers many member benefits, such as, complimentary

technical assistance, free online continuing education, auction and service coupons, and networking opportunities. We are always researching opportunities to bring more value to your membership. Your feedback is always appreciated. One way to get involved and give back is to participate on a committee.

Committees meet via conference call and discuss new programs, current issues and explore ways to improve FIADA services. We have something for everyone.

Your service on a committee helps the Association and provides an opportunity for you to give back to your industry. Your executive committee and board of directors are made up of volunteers that give of their time and expertise. They have made a commitment to you as a member of the Association. Help support these wonderful men and women by making a commitment today to serve on a committee. It really isn’t much time at all to serve on a committee.

If you are interested in serving on a committee or just have an idea you’d like to share, please contact me at [email protected] or 800.237.0448 ext. 100.

FIADA has so much to offer and so many opportunities for you to participate. I hope that you will add FIADA to your 2015 Action Plan and share the good news with a friend. Be part of the Association that watches out for you every day!

FIADA has so much to offer and so many opportunities for you to participate. Add FIADA to your 2015 Action Plan and be part of the Association that watched out for you every day!


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Iam excited to announce the resurrection of “Keys to Insurance,” a column I wrote for many years in this magazine throughout the 1990s and up until 2005. The

column touched on the subjects relating to the insurance needs of the non-franchised motor vehicle dealer.

Starting this month, we will be doing a quarterly edition of the column. We plan to discuss subjects such as risk management ideas to help reduce your insurance costs and eliminate unnecessary claims, changes in insurance market conditions, trends in pricing and coverage availability, new products available to the dealer industry and more.

This past year was a challenging year in our business, especially here in Florida. A new “wind modeling” system was implemented which completely changed the way

carriers look at certain areas. This new system identified that non-coastal areas had

more hurricane exposure than was previously believed and pricing

of policies were revised accordingly. The

claims from 2012’s Hurricane

Sandy had a devastating

effect on the Dealers Open Lot insurance marketplace. As a result, the insurance carriers are now

looking more closely at flood exposure than ever before making

www.fiada.com10 — Independent Dealer — January 2014

K E Y S T O I N S U R A N C E

Insurance Predictions for the New YearBY KEVIN O’CONNOR, INSURANCE AGENT OF RECORD

it difficult to find policies on dealers that never had an issue in past years. These changes caused a number of insurance companies to withdraw from the Florida market or limit what they offer causing a supply and demand issue which subsequently raised rates. On the positive side, the insurance industry has record surplus capital thanks in large part to lower than expected catastrophe losses over the last few years and increased investments yields. Most of the insurance industry analysts expect the trend of increasing rates to slow or even reverse in the near future. Unfortunately there are no crystal balls to tell us what to expect in 2014. All we can do is keep a close eye on the industry and do our best to keep the readers of this column ahead of the curve.

On a personal note, I wanted to thank the FIADA Board of Directors for the vote of confidence in electing us their Agent of Record. Our team of insurance professionals specialize in your industry and make it our job to know how your business works and understand what your dealership needs to best protect your assets. We are available for questions from any association member whether they are clients or not and we will do our best to answer those questions in a completely impartial manner.

We hope that Keys to Insurance is an informative and interesting column and proves to the readers that insurance can be fun.

Kevin O’Connor of Dealers Insurance Services, Inc. is the FIADA Insurance Agent of Record. If you have insurance related questions, contact FIADA at (800) 237-0448 or visit the DIS website at www.dealersinsurance.com.

FIADA Jan 2k14.indd 10 1/10/2014 11:03:59 AM

K E Y S T O I N S U R A N C E

Data Breaches Are Everyone’s Concern! BY KEVIN O’CONNOR, INSURANCE AGENT OF RECORD

The upcoming FIADA Town Hall Meeting in Fort Myers is this month and one of the focus topics is data breach and privacy issues. I thought it would be

a good time to write a brief column on the subject that has permeated the media in recent months.

I doubt there is a dealer in our Association that hasn’t heard of the major data breaches that have recently occurred. In just the last two years, many household names have experienced massive data breaches. A few of the more notable along with the number of records breached:• Home Depot‒56 million• Target‒70 million• JP Morgan Chase‒76 million• Adobe‒152 million• Ebay‒145 million

Studies have revealed that a data breach can cost a company in the neighborhood of $200 per record breached. It’s not difficult to do the math and see the impact these issues have on corporate financials.

Being small businesses we often think, “This can’t happen to us. It only affects big companies”. Unfortunately, that couldn’t be further from the truth. Claims against auto dealers are occurring on a regular basis. Bruce Townsend, deputy director of the U.S. Secret Service stated “there is no question” that auto dealerships are being targeted. To prove his point, large dealers like Sonic Automotive and the Asbury Automotive Group (in Orlando, FL) have already made the news with expensive breaches.

Smaller dealers normally possess all of the information about their customer that a hacker would need to be able to steal their identity. The storage of that sensitive data, along with the fact that many small dealers have minimal data

security measures in place makes the independent dealer a prime target.

So what can happen to you in the event your data is breached and how can you mitigate the exposure?This subject is far too complicated for me to do it justice in this short column. The FTC is involved with the Red Flag Rules and the Gramm-Leach-Bliley Act Safeguards rule. Most of the states have their own laws in addition to the federal laws. It’s important to note that our own state of Florida just passed the 2014 Florida Information Protection Act which is considered one of the strictest in the country.

In addition to the various laws you contend with, which have expensive notification requirements and fines, there are also civil issues. The damaged parties are very likely to file class action lawsuits against the dealership for their damages.

The short answers are the obvious ones. Don’t store credit card information, protect personal information such as social security numbers, prevent employee access to that information… there are no real secrets here. My main reason for the article is to make sure that you aren’t “burying your head in the sand” when it comes to this subject. Start by reaching out to your existing vendors and ask for advice on how to mitigate the exposure. Many of the people you are already paying for services can be a big help. Your IT service providers, software companies, attorneys, accountants and yes, even your insurance agents, can offer free ideas to help keep you safe.

There will be a panel of experts discussing the subject at the Fort Myers Town Hall meeting and I’d highly recommend attending. We hope to see you there!

January 2015 — Independent Dealer — 9 www.fiada.comPAID ADVERTISINGPAID ADVERTISING


M E M B E R S H I P N E W S

New Members DECEMBER 2014

ACI DEVELOPMENT CORP.Jacksonville, FLRonald OversSponsor: NIADA

ALLEN PARKERPensacola, FLSponsor: Terry Myers

BIARTI AUTOPlantation, FLBernardo TurbidesSponsor: NIADA

CARS OF JAX, INC.St. Johns, FLAmmar ShakhtourSponsor: Auctions

CMOBILITY SALES, LLCCharlotte, NCJim BranningSponsor: Amelia Tillman

EPC MOTORS, LLCSebring, FLJennet TirbanSponsor: Kevin Scott

HOUSE CYCLE WORLD, INC.Tampa, FLJoseph FinanSponsor: Terry Myers

IMEL ENTERPRISES, LLCBradenton, FLIan HowardSponsor: FIADA.com

MODERN MUSCLE CARSOcala, FLAndrew AckermanSponsor: FIADA

NICKOLAUS GOODHEARTTallahassee, FLSponsor: Terry Myers

RCK AUTO SALES, LLCFt. Pierce, FLKathryn KreisnerSponsor: Kevin Scott

SCARRITTTierra Verde, FLFrancis ScarrittSponsor: Don and Kevin Scott

SOUTHEASTERN AUTO AUCTIONSavannah, GABill McCreadySponsor: Lisette Mariner

30+ Year MembersCar Collection of Tampa Tampa, FLMears Motor Leasing Orlando, FL

20+ Year MembersCherry Cars, Inc. Fort Myers, FLFett Motors, Inc. Pinellas Park, FLIntegrity Auto Sales, Inc. Port Orange, FL

10+ Year MembersADESA Auto Auction of Jacksonville Jacksonville, FLAuction123.com Weston, FLAuto Superstore of Orlando, LLC Orlando, FLBig O’s Northside Auto Sales Interlachen, FLFamily Auto Mart, Inc. Melbourne, FLGibson Truck World Sanford, FLNeal’s Wheels Fanning Springs, FUltimate Image Auto, Inc. Tallahassee, FLUsed Car Supermarket Tallahassee, FLWayne Reaves Computer Systems Macon, GA

Under 10 Year MembersA & A Auto Sales, Inc. Fort Pierce, FLAccel Motorsports, Inc. Orlando, FLAce Motor Acceptance Matthews, NCAmerica Choice RV Ocala, FLAutoflex, LLC Gainseville, FLAutoline Preowned Atlantic Beach, FLAutomotive One, Inc. Longwood, FLCar Buying Service of Jacksonville Keystone Heights, FLCharlotte County RV Center, LLC Port Charlotte, FLCitrus Auto Trader Lecanto, FLEx-Change Auto, Inc. Pinellas Park, FLFinancial Insurance Brokers International Coral Gables, FLFirst Place Auto Sales, Inc. Gainseville, FLFlorida Autosport, Inc. Tallahassee, FLLandress Auto Wrecking, Inc. Bonifay, FLM & M Auto Sales Cape Coral, FLMacklin Automotive Co. Avon Park, FLMarkOne Financial Jacksonville, FLMobility Styles, Inc. Weeki Wachee, FLOwl Automotive Group, Inc. Longwood, FLPCH 1 Motorsports Tarpon Springs, FLRHRM Ocoee, FLRoyal Administration Services Hanover, MASilverauto Zephyrhills, FLSuper Cars Auto Sales, Inc. Bonita Springs, FL

Renewing Members DECEMBER 2014

Rejoining Members DECEMBER 2014

NORTH FLORIDA MOTOSPORTS, LLC.Gainesville, FLFrank CurcioSponsor: Amelia Tillman

Help strengthen the FIADA team—Become an MVP today!Get your name on the roster at www.FIADAcom


The Florida Independent Automobile Dealers Association will celebrate

its 75th anniversary this year, and hopes to honor the men and women who blazed a path founding the oldest independent automobile dealers association in the country. For the past seven decades, our members have been helping to advance the agenda of the “little guy.” It’s a heroic accomplishment. We can’t stop, though, until every dealer in Florida is a member.

Use this application, or go online to www.FIADA.com to join now.

FIADA invites you to be a part of the history-making journey this year.

With respect for the history of our Association, we stand ready to take on the new challenges that face dealers such as overregulation, abusive litigation, and ever-changing technological advancement. We need you on our team to explore new frontiers and reach goals we would have never imagined possible. When you join FIADA, you will not only be helping to write our new history, but also will receive a vast collection of benefits and services designed specifically to help used car dealerships succeed. Benefits like:

• OVER $8,000 IN COUPONS

• FREE TRAINING

• TECHNICAL ASSISTANCE

• FREE ONLINE CONTINUING EDUCATION

• INDEPENDENT DEALER MAGAZINE

• ONLINE DEALER

RESOURCES

• DEALER SERVICE

PROVIDER DIRECTORY

• NIADA

MEMBERSHIP

AND BENEFITS

And so much more!


fiadaThe History of

You can trace back current regulations and enforcements back to the 1970s as consumer advocacy issues began to take center stage across the country. As distrust for government grew with the war in Vietnam, so did distrust in big business. An unintended casualty

of was the small used car dealer. Suddenly, dealers everywhere began to be caught up in a wave of bad PR and stereotypical accusations that resulted in new legislation aimed at consumer protection. The Federal Trade Commission reported that the automobile business was the most complained about industry in the country. This led to legislation that is still enforced today, such as the Truth-in-Lending Act and national safety standards and regulations. The FIADA fought back by updating it’s Code of Ethics, which was adopted in 1973:

1971-1980

1971

1972

1973

1974

1975

Independent Dealer magazine continues its recap of the Association’s history, leading up to the 75th Anniversary this October.

Jack Wynne, Jackwonville Paul Dowd, OrlandoBob Jackson, Jacksonville Ed Fernandez, Tampa

Roy Simpson, Ft. Lauderdale

I. Members have a general duty of integrity, honor and fair dealing toward the general public.

II. Members shall comply with all city, county, state and federal laws and shall endeavor to keep themselves informed of

those laws governing their business.

III. A member shall not intentionally injure the business reputation of another member or competitor.

IV. Members shall employ truth and accuracy in advertising and selling.

V. A member shall stand by any guarantee given with the sale of a motor vehicle.

VI. A member shall not perform any act which would bring disrepute to the motor vehicle industry.

VII. Members shall expose or halt, where found, any scheme designed to deceive or defraud the automobile buying public

and aid in prosecuting those guilty of such acts.

VIII. Members shall constantly strive to improve business methods to the end that the public will be better served.

FIADA Code of ethics:


Roy Simpson, Ft. Lauderdale

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.

ADD is an FIADA Preferred Partner Use promo code FIADAELT at sign up and receive free activation.

Visit ADD123.com and see why thousands of Florida dealers use ADD’s time- and cost-saving services.

Auto Data Direct (ADD) offers Florida dealers a single-source, 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.

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) 1.866.923.3123

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1976

1977

1978

1979

1976: THE AVERAGE DEALERA 1976 survey of members of the National Independent Automobile Dealers Association provides some interesting facts about what used car lots looked like nearly 40 years ago.

AVERAGE LOT: • 22,044 square feet• 68% of member’s lots were paved• 22% of member’s lots had coverings• 61% used pole lighting and 39%

used string lighting

SALES STATISTICS:• 84% of sales were made during

daytime hours. 16% in what was considered twilight and evening hours.

• $48,788 was the average monthly sales volume.

• $447 was the average monthly advertising budget.

DEALERSHIP OPERATIONS:• Average staff size was 4 employees.• The average number of years in

business was 15.7• The average age of the dealer

operator was 46.• 81% of members said they were not

interested in a new car franchise.• The average net worth was

$117,603.• 56% of dealers had service

departments.• 63% had reconditioning departments.

M.L. Vaughan, Orlando Gary Kees, Orlando Jolley Holley, Orlando Earl Lewis, JacksonvilleDon Swerdlin, Ft. Lauderdale

RELIVING HISTORY You will also want to check out the new video that features the FIADA story. The video was unveiled for the first time at the FIADA Annual Convention and captures the uniqueness of the Association as told by its members and volunteers. You can watch it on our YouTube channel or scan the QR code on this page.

1980

Image continued to be an issue throughout the decade of the 1970s, and the FIADA concentrated legislative efforts around licensing. The focus had to be quickly shifted, however, in 1978 as the threat of an increase in the dealer surety bond became a hot topic. Effective Jan. 1, 1978, the dealer surety bond was raised from $5,000 to $25,000 and became a requirement. The condensed balance sheet option was no longer accepted. Oil and energy were the big focus for the 1970s, and had as much impact on the auto industry as any other. Energy Committees were formed on the state and national Association levels, looking for legislative help on the matter. Oil prices eventually came down, but not before they took their toll on car shoppers, who no longer looked for large, energy-inefficient, older cars and instead wanted smaller ones that got better gas mileage. In 1978, one of the biggest issues that rallied dealers together was the concern with Personal Insurance Protection (P.I.P.). A temporary tag could not be issued to a customer

without proof of this coverage. As a result of FIADA involvement, a bill was passed that helped ease some of the restrictions. Other legislative highlights of the 1970s included an establishment of a fast title service “dealer’s desk” which cost dealers $5 per use, but guaranteed a 72-hour turn around time on titles. FIADA closed out the decade with 800 members, the highest since its inception. Always looking for new ways to motivate membership recruitment, the last surge of the 1970s was spurred by Oscar Houchins of Kissimmee. At the 1979 July Board Meeting, he

challenged members to sign up new members and started a “pot” with $100, suggesting that the dealer who had recruited the most members

by the October convention could walk away with it. Eighteen other members accepted the challenge, paid their $100 entry fee and started recruiting. Ironically, Oscar was the winner of the $1,900 for signing up 61 new members in just four short months.


Don Swerdlin, Ft. Lauderdale

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Meet your Committee Chairmen for the Florida Legislature as well as the members of the committees. See below for the committees that are

of particular interest to FIADA’s legislative agenda. Once we have our legislative proposal, we will be asking you to contact your legislator from your area. They need to hear from you as a constituent and voter in the District.

Your PAC contributions were put to excellent use this past cycle and we had every endorsed candidate elected but one for a 95 percent success rate. Please take a moment and contribute to the PAC today!

Appropriations Subcommittee on Transportation, Tourism, and Economic DevelopmentChair: Senator Jack Latvala (R) Vice Chair: Senator Jeff Clemens (D)

• Senator Jeff Brandes (R)• Senator Nancy C. Detert (R)• Senator Miguel Diaz de la Portilla (R)• Senator Audrey Gibson (D) • Senator Dorothy L. Hukill (R)• Senator Maria Lorts Sachs (D)• Senator Geraldine F. “Geri” Thompson (D)

Committee on TransportationChair: Senator Jeff Brandes (R)Vice Chair: Senator Dwight Bullard (D)

• Senator Oscar Braynon, II (D)• Senator Greg Evers (R)• Senator Denise Grimsley (R)• Senator Wilton Simpson (R)• Senator Geraldine F. “Geri” Thompson (D)

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

Transportation & Economic Development Appropriations SubcommitteeChair: Representative Clay, Ingram (R) Vice Chair: Representative George R. Moraitis, Jr. (R)

• Representative Bruce Antone (D)• Representative Frank Artiles (R)• Representative Bryan Avila (R)• Representative Colleen Burton (R)• Representative Brad Drake (R)• Representative W. Keith Perry (R)• Representative Kathleen M. Peters (R)• Representative Lake Ray (R)• Representative Hazelle P. “Hazel” Rogers (D) • Representative Richard Stark (D)• Representative Victor Maneul “Vic” Torres, Jr. (D)

Highway & Waterway Safety SubcommitteeChair: Representative W. Gregory “Greg” Steube (R)Vice Chair: Representative Holly Raschein (R)

• Representative Laryy Ahern (R)• Representative Bryan Avila (R)• Representative Brad Drake (R)• Representative Dave Kerner (D)• Representative Mike La Rosa (R)• Representative Chris Latvala (R)• Representative W. Keith Perry (R)• Representative Michelle Rehwinkel Vasilinda (D)• Representative Ronald “Doc” Renuart (R)• Representative Irving “Irv” Slosberg (D)• Representative Richard Stark (D)

2015 Session is Just Around the CornerBY SANDRA MORTHAM, FIADA LOBBYIST


Contributor’s Name: _______________________________________________________________________________

Dealership/Company: ______________________________________________________________________________

Street Address, City, State, Zip: __________________________________________________________________________

q Check q Credit Card (one time contribution) q Monthly Credit Card Contribution (until cancel)

q $500 q $250 q $100 q $50 q $25 q _________

Credit Card Information: q Visa q MasterCard q American Express q Discover

Name on Card: Card number:

Exp Date: Sec. Code: Billing Phone:

Billing Address

Authorized Signature

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

PAYMENT INFORMATION

POLITICAL ACTION COMMITTEE

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20 — Independent Dealer —January 2015 www.fiada.comOctober 2013 — Independent Dealer — 20

Sessions Include:Legal ForumMinimizing Your Risk for a Claim in Today’s Regulatory LandscapeDealers face a barrage of compliance issues and regulatory scrutiny. What you did yesterday may not hold true today. Join FIADA’s Outside General Counsel, Rob Sickles, as he discusses the consumer claims landscape and the latest compliance issues.

Panel DiscussionEverything You Wanted to Know About Privacy/Data Breach and More!With the rise of data breaches in recent years, businesses both large and small must take additional measures to safeguard data. Join our panel of experts as they discuss data breaches and how you can make sure you are in compliance with laws concerning this issue including:• Red Flag Rules• Safeguard Rules• Florida Information Protection Act

Hot Topics in the Payments IndustryPlain Talk on PCI Compliance & Influencing Consumer BehaviorCome learn about PCI Compliance and other payment control issues like Convenience Fees and Surcharge Rules. Attendees will learn:• PCI Compliance• Convenience Fees• Surcharge Rules

Join Us for Free Training, Networking, Vendor Expo and Lunch.

Town Hall Meetings are absolutely free to attend. Lunch will be provided courtesy of Auto Data Direct. Don’t miss this great opportunity to network with colleagues and ask the experts your burning questions. Register today!A Special Thanks to our Sponsors: AFC, Auto Data Direct, Inc., & Wayne Reaves Software and Websites

Friday, January 16, 2015 • 10:00am - 2:00pmHyatt Place Fort Myers at the Forum | Ft. Myers, FL2600 Champion Ring Road, Fort Myers, FL 33905


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10.22.15Hilton Orlando

Lake Buena Vista, FL

The celebration begins...

The Florida Independent Automobile Dealers Association’s

ANNUAL CONVENTION & TRADE SHOWCelebrating 75 years of serving Florida’s used car dealers.

Mark your calendar for Oct. 22-24, 2015. Don’t miss it! Details to come


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Two great directions for funding your customer’s

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FEDERAL DEVELOPMENTSNo More Allotments.On November 21, in an effort to curb allotment system abuses, the Department of Defense announced a policy change that will prohibit servicemembers from using new allotments to buy, lease, or rent personal property, effective January 1, 2015. The allotment system allows servicemembers to make discretionary allotments from their pay and set up automatic payments to creditors for a variety of purposes. Under the new policy, personal property includes vehicles, appliances or household goods, electronics, or other tangible and movable consumer items. The policy change will not affect existing allotments and does not prohibit allotments to savings accounts or investments, to support dependents, or to pay insurance premiums, mortgages, or rents. The change applies only to active duty servicemembers, not military retirees or DoD civilians.

Beating the Used Car Rule to Death.The FTC has twice sought comments on proposed changes to the Used Car Buyers Guide as part of its systematic review of its rules and guides. The FTC now seeks comments on more potential Rule revisions that would: (1) require dealers to indicate on the Buyers Guide whether they obtained a vehicle history report and, if so, to give a copy of it to consumers who request it; (2) revise the Buyers Guide statement describing the meaning of an “As Is” sale in which a dealer offers a vehicle for sale without a warranty; and (3) move boxes to the front of the Buyers Guide for dealers to

L E G A L R O U N D - U P

A Look At Current Legal IssuesBY 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.

indicate whether non-dealer warranties apply to a vehicle. The FTC proposes the additional amendments to promote consumer access to vehicle history information, to clarify the meaning of “As Is” in the sale of used vehicles without warranties, and to make disclosures about non-dealer warranties more prominent. The FTC also seeks comment on six questions and many subparts concerning the proposed Rule modifications. Comments are due on the new proposed amendments by January 30, 2015.

BHPH Servicing Woes.On November 19, the CFPB took its first action against a “buy-here, pay-here” car dealer. The CFPB claims that DriveTime employees harassed borrowers at work, harassed borrowers’ references, made excessive and repeated calls to wrong numbers, provided inaccurate repossession information to credit reporting agencies, failed to properly handle consumer complaints about alleged inaccurate information DriveTime furnished to credit reporting agencies, and failed to implement reasonable procedures to ensure the accuracy of consumers’ credit information. DriveTime must pay $8 million as a civil money penalty, end its allegedly unfair debt collection tactics, fix its credit reporting practices, and arrange for harmed consumers to obtain free credit reports.

GENERAL INTERESTOn November 19, the American Financial Services Association released the results of a study it commissioned - Fair Lending:

Implications for the Indirect Auto Finance Market - that examined the proxy methodology used by the CFPB to determine disparate impact to legally protected groups. The study of more than 8.2 million auto financing contracts found that alleged pricing disparities between minorities and non-minorities for auto financing rates were not supported by data.

On November 19, 16 state attorneys general wrote a letter to CFPB Director Cordray encouraging the CFPB to exercise its statutory authority to regulate the use of mandatory pre-dispute arbitration clauses in consumer agreements for financial products or services. The attorneys general, all Democrats, expressed concern about such clauses and related class action prohibitions, noting that “[o]ver the past decade, judicial decisions and business practices have diminished consumers’ rights and bargaining power with respect to contracts for financial services. Today, the average consumer nominally assents to all kinds of contracts without any opportunity or bargaining power to negotiate better terms. In such an environment, it is incumbent upon regulators with the power to effect change, such as the Bureau, to ensure that consumers have meaningful avenues for redress against those with whom they contract to provide financial services.” The AGs’ call for action comes despite the fact that the CFPB’s study on arbitration is incomplete.

LITIGATIONPurchaser of Vehicle “As-Is” Not Prevented from Asserting Fraud Claim:Prior to buying a used car, the


Continued on Page 27

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purchaser asked the salesman if the car had been in an accident because she did not want a previously damaged vehicle. The salesman told her the car had not been in an accident and that it was in good working order. The salesman also told her to contact the mechanic

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who worked on the car at a separate repair facility. The mechanic told her that he had replaced the alternator and there was nothing else wrong with the car. The buyer then bought the car without any warranty. A notice, the application for title, and


We often complain that our salespeople are not organized and for the most

part are on the hope program or waiting for the UP Bus to drop off prospects. Management needs to have an organized game plan to succeed every day. Add these duties to your sales manager’s daily tasks and watch things fall into place.

• Review log sheet and any working deals from day before and review. Always do a save-a-deal meeting to insure that deals that were worked can be saved. Talk to other managers so that you know what happened and what needs to be done to make deals.

• Get your team ready for the day. You are the face of the day, it should be positive and uplifting. Motivate, encourage, inspire, train, teach, coach. Make It Fun; call it Team 15.

• Update month to date salesperson spread sheet. Print out for each salesperson to review for a quick 10-15 minute meeting. Look for plus and minus percentages with each salesperson

• Check lot and make sure it is ready and marketable today to sell! This one speaks for itself.

• Make sure that service lane participation is being followed

S A L E S T R A I N I N G

Sales Manager’s Game Plan For The DayBY GEORGE DANS

If your sales department could use some organization and focus, have your sales manager follow these steps.

through with. Have a dedicated salesperson work the service area when the most customers are there.

• Team leaders need to be outside with salespeople controlling flow of traffic with sales team.

• Training salespeople daily will help you sell more vehicles right away. Pick a subject and then train on it - make sure that salespeople are role playing, along with practicing their vehicle walk around.

• Review salesperson’s game plan for the day. Review their Daily Work Plan beginning of shift and end of shift that calls were made. Look at their George Dans Monthly Success Guide. Sign it off and now they are ready to work.

• Manage any sales conflicts between salespeople.

• Insure that online sales training is being done. George Dans’ Supersystem.TV or factory training is being done.

• Handle heat issues with customers.

• 100% turn. Have every salesperson turn every customer to you before the

customer leaves without buying. The salesperson needs to fill out an Up card then bring customer to you. Before they leave, sign off the card, interview customer and look for a way to help customer today, or find true objection.

• Check your salespeople’s game plan during the day to insure daily success.

• Have salespeople fill out Success Guide before they go home each night.

George Dans has been helping automotive dealerships reach the next level in sales, gross and team performance since 1993. He has championed several training seminars and workshops on a factory level for Toyota, Honda, Daimler Chrysler and Kia - all resulting in measurable increases in unit sales, market share and customer satisfaction. George has recently completed custom in-house training for dealerships in Canada, Puerto Rico, and Mexico; plus he has spoken for several NIADA groups and IADA groups.


the buyer’s guide that she signed stated that the car was sold “AS-IS.” Two days after purchase, the car started leaking fluids. The buyer towed the car to a repair facility and was told that the car had previously been in an accident, had serious damage, and was unsafe to drive. The buyer sued for fraud for the representations made by the salesman and the mechanic that induced her to buy the car. The trial court granted summary judgment for the buyer. The appellate reversed, finding that genuine issues of material fact existed concerning what the salesman and the mechanic said to the buyer, but noted that buying a car “as-is” does not automatically preclude the buyer from asserting a fraud claim. See Melton v. George’s Used Car Sales, Inc., 2014 Mich. App. LEXIS 2025 (Mich. App. October 23, 2014).

Disguised Finance Charge Claim Requires Proof that Increased Vehicle Price Was Charged to Credit Customers Only:A car buyer financed her purchase at a rate of 25 percent. After the buyer filed a Chapter 13 bankruptcy petition, she filed an adversary proceeding against the assignee of her finance contract. The bankruptcy court dismissed the adversary proceeding, and the U.S. District Court for the Eastern District of Michigan affirmed. The district court rejected the buyer’s argument that the assignee’s proof of claim must be disallowed because it is the result of a transaction that violated Michigan’s Motor Vehicle Sales Finance Act. The MVSFA prohibits a finance charge in excess of 25%. In order to qualify as a “finance charge” under the MVSFA, the charge must not be payable in a comparable cash transaction. The district court found insufficient the buyer’s claim that the excess amount she paid for the car over the retail price was a finance charge unless she could show that the excess amount was

charged to her solely because she was a credit customer and would not have been charged to her if she was a cash customer. The district court noted that the buyer did not make this claim and did not allege that the dealership sells cars to cash customers for one price and to credit customers for a higher price. See In re Allen-Morris (Allen-

LEGAL ROUND-UP continued from Page 25

Morris v. Nicholas Financial, Inc.), 2014 U.S. Dist. LEXIS 153366 (E.D. Mich. October 29, 2014).

Tom ([email protected]) and Nikki ([email protected]) are partners in the law firm of Hudson Cook, LLC. (410) 865-5411 or www.counselorlibrary.com.

SOUTHEASTERN AUTO AUCTION

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LISA COMPAGNOTreasurer

Palm Tree Auto SalesStuart, FL

(772) 288-2099

JIM WINTERICK, SR.President

Gulfstream Motor CreditMiami, FL

(305) 253-2335

DINO MERCURIOChairman of the Board

Independent Credit, Inc.West Palm Beach, FL

(561) 686-8673

CHRISTOPHER LEEDOMRegional Vice President

AutoMaxxSarasota, FL

(941) 309-1111

BRAD JOELSecretary

Splish Splash Auto SalesPrinceton, FL 33032

(305) 258-1191

PAUL MATTONSenior Vice President

Park Auto MallPinellas Park, FL(727) 639-1112

SCOTT LANIERRegional Vice President

Credit CarsOrlando, FL 32808

(407) 295-6211

STEVE MARBAIS, CMDRegional Vice PresidentMarbais Enterprises, Inc.

Ocoee, FL(407) 877-7422

GOVINDA ROMERORegional Vice President

Autoflex LLCGainesville, FL(407) 468-9974

2014-2015 FIADA EXECUTIVE COMMITTEE:

PHIL RISLEYRegional Vice President

Cars & Credit of JacksonvilleJacksonville, FL(904) 616-4074

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INDUSTRY NEWS

As car shoppers get more and more connected to the online shopping experience, industry giant AutoNation, the largest U.S. retailer of new cars, announced it will be transitioning to an online storefront and set pricing on new and used cars. Modeled after sites like TrueCar.com and CarGurus.com, AutoNation’s new Web portal allows customers to research prices that reflect current market values — usually discounted from the sticker price — and put a deposit on a car. Later, the company will offer online bids for trade-ins and arrange auto loans. The focus to online sales is meant to phase out the “closing” session triangle between customers, salesmen and managers at the dealership. Consumers say they want less haggle and straighter-deals, and the new approach is AutoNation’s response to that request. With 225 dealerships nationwide, AutoNation could ramp up the pressure on other dealers to transform the way they serve customers. AutoNation recently launched its SmartChoice Express digital sales tool in Florida and will roll it out next year to California and other states where it has multiple dealerships. AutoNation has reportedly spent more than $100 million putting all of its dealerships under one brand name and developing the technology for the sales tool. The AutoNation system will review recent sales data to determine prices for each model, usually with a discount off the manufacturer’s suggested retail price, the typical starting point for negotiations.

AutoNation Moves to an Online Storefront

Don’t forget to Like us on Facebook! Check out our page and follow us at www.facebook.com/FLIndAutoDealersAssoc

Fiat Chrysler is recalling about 67,000 model year 2006 and 2007 pickups because of a problem that could allow the trucks to be started without the clutch being depressed. Chrysler said one death is associated with the problem. The National Highway Traffic Safety Administration had opened an investigation into the trucks in May after receiving a report of a child starting a 2006 Dodge Ram 3500 pickup without using the clutch. The truck moved forward, striking and killing another child, the safety agency said. The company said Monday that a wire in the clutch ignition interlock switch could break in trucks with manual transmissions. That could keep the truck from starting, or if

Chrysler Recalls 67,000 Pickup Trucksdrivers don’t follow recommended starting procedures, the truck could move when the ignition key is turned. Vehicles with manual transmissions are required to have interlock mechanisms that stop the motor from being started unless the clutch is depressed. The company is recalling Dodge Dakota, Dodge Ram 1500, 2500, 3500 and Mitsubishi Raider pickups that were made between July 2005 and June 2006. Nearly 55,000 of them are in the U.S. FCA US LLC, the former Chrysler Group LLC, will replace the switches at no cost to consumers. The company said it only used the faulty wire during the period covered in the recall.

Source: Associated Press

TransUnion’s annual auto loan forecast calls for auto loan debt to continue to rise to $18,244 at the end of 2015. This would mark 19 consecutive quarters of increases since the first quarter of 2011, when auto loan debt per borrower stood at $14,954. The TransUnion forecast calls for the national auto loan delinquency rate (the ratio of borrowers 60 or more days past due) to end 2014 at 1.20 percent, and increase slightly to 1.27 percent at the end of 2015.

Source: Used Car News

TransUnion: More Auto Credit in the 2015 Forecast

U-Save Car & Truck Rental has been approved by the National Independent Automobile Dealers Association as an endorsed NIADA National Member Benefit partner. U-Save has been in the rental car business for more than 35 years, with over 200 car and truck rental locations around the world. U-Save provides car rental discounts to businesses, individuals, and families with fast, friendly, economical service. U-Save has teamed up with NIADA to offer franchise opportunities to existing used car dealers. For more information, visit http://www.usave.com/franchise.

U-Save Truck & Car Rental is a NIADA Member Benefit


275-BBU-Ad-8.5x11-Florida-IADA.pdf 1 12/10/14 4:32 PM

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©2012 Manheim, Inc. All rights reserved. Manheim Buy. Sell. Win. is a trademark of Manheim, Inc. The M logo is a registered trademark of Manheim, Inc.

manheim.com | 866•Manheim

10817 New Kings Rd., Jacksonville, FL 32219

904-768-9981

Sale: Thursday 1:00 p.m.

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

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Carretera 865 Km 4.7

Toa Baja, PR 00949

Phone: (787) 261-7300

Sale Day - Thursdays 11:30am

Manheim Caribbean Subasta De Autos

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

Toyota & Lexus Sell-A-Thon every other Thursday at 4:00 p.m.

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

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