january 2010 independent dealer magazine

January 2010- — Independent Dealer — �www.fiada.com

PRST STDU.S. POSTAGE

P A I DTALLAHASSEE, FL

PERMIT NO. 801

January 2010 www.FIADA.com Information and Insight for Florida Used Car Dealers

A Publication of the Florida Independent Automobile Dealers Association

Light Rail is Coming, but We Still Love Our Cars

� — Independent Dealer — January 2010 www.fiada.com

RELIABIL ITY

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January 2010- — Independent Dealer — �www.fiada.com

M E M B E R N E W S & N O T E S

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MEMBER TESTIMONIAL

“One of the things I do when I go to a training is ask who is a member of FIADA and NIADA. Local, smaller dealers need to get how important membership is. FIADA goes to bat for us at the local, state and, through NIADA, national law-making process. The Notice to Surrender and form to place a lienholder stop are available because FIADA made it happen in the state of Florida. These forms are such a huge tool we can use, for small and large companies alike. It’s especially huge for a small dealership like us. It gives us a weapon to use when we need it, and we don’t really have a lot of those at our disposal. FIADA is also directly responsible for keeping the Used Car Lemon Law OUT of Florida. Without FIADA, that terrible piece of legislation would have gone through, and we, as an industry, would have been saddled with it. I shudder at the thought.”Neal and Lynn Moran, Neal’s WheelsFanning Springs, Florida

THE DIGNITY PROJECT

FIADA’s Quality Dealer of the Year, John Cousins of Southeast Car Agency in Gainesville, has been working with a special group called The Dignity Project. This non-profit organization’s mission is to restore a sense of dignity, self-sufficiency, and pride in the lives of individuals and families through vocational training and services for the economically disadvantaged. As part of their services, The Dignity Project offers a program called the Automotive Academy where volunteer mechanics fix donated vehicles to give to deserving families, or sell to support The Dignity Project services in the community. Automotive students attending near-by Santa Fe Community College in Gainesville are given paid, hands-on job training as they work alongside Dignity Project staff and supervisors. To find out more, and see how you can get involved, visit their website at http://sites.google.com/a/dignityproject.com/www/home.

Neal and Lynn Moran at their Fanning Springs lot, Neal’s Wheels.

� — Independent Dealer — January 2010 www.fiada.com

Feb. 4-5 Orlando/Winter Garden

Feb. 6-7 Tampa

Feb. 8-9 Ocala

Feb. 10-11 Lakeland

Feb. 13-14 Ft. Lauderdale

Feb. 16-17 Tallahassee

Feb. 20-21 Orlando

Feb. 22-23 Jacksonville

Feb. 22-23 Clearwater

Feb. 24-25 Miami/Opa Locka

FEBRUARY 2010

Mar. 4-5 Orlando/Winter Garden

Mar. 6-7 Tampa

Mar. 8-9 Ocala

Mar. 10-11 Lakeland

Mar. 13-14 Ft. Lauderdale

Mar. 18-19 Clearwater

Mar. 20-21 Orlando

Mar. 23-24 Panama City

Mar. 24-25 Miami/Opa Locka

Mar. 29-30 Jacksonville

MARCH 2010

Apr. 8-9 Orlando/Winter Garden

Apr. 10-11 Tampa

Apr. 12-13 Ocala

Apr. 14-15 Lakeland

Apr. 17-18 Ft. Lauderdale

Apr. 20-21 Tallahassee

Apr. 24-25 Orlando

Apr. 26-27 Jacksonville

Apr. 26-27 Clearwater

Apr. 28-29 Miami/Opa Locka

APRIL 2010

NORTHEAST FLORIDAAdesa JacksonvilleAuto Auction��700 New Kings Rd.Jacksonville, ��9

WEST COASTInsurance A/A of Clearwater5�5� ��6th Ave N.Clearwater, ��760

Ramada Inn Tampa��7�� Morris Bridge Rd. �-75 Exit �65Tampa

CENTRAL FLORIDAManheim’s ImperialAuto Auction��00 County Line Rd.Lakeland, ��8��

Ocala Driver’s License Office��0 SE �5th AvenueOcala, ��7�

Manheim Central Florida Auto Auction9800 Bachman Rd.Orlando, ��8��

Manheim Remarketing Site Orlando/Ocoee��75 E. Story RoadWinter Garden, ��787

SOUTH FLORIDAManheim Ft. Lauderdale5�5� State Road 7Davie, ��

Adesa Miami/Insurance Auto Auction of Miami��700 NW ��nd AveOpa Locka, ��05�

PANHANDLEComfort Inn�0�� East ��rd St.Panama City, ��05

FIADA Office�8�0 Fiddler CourtTallahassee

View Course Descriptions and Register at www.FIADA.com

January 2010- — Independent Dealer — 5www.fiada.com

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 Greg Edwards President

Jim Kagiliery Chairman of the Board

Jeff Gann Senior Vice President

Jeff Zupec Secretary

Dino Mercurio Treasurer

Mario Allmond Regional Vice President

Brandi Noegel Regional Vice President

George Hickey Regional Vice President

Steve Marbais, CMD Regional Vice President

John Cousins Regional Vice President

FIADA STAFF Steve Jordan Executive Director

Larry Peters S. Allen Monello, D.P.A. Terry Myers Instructors

Sarah Langley Membership Coordinator

Alex Romans Education Coordinator

Christy Taylor Editorial/Advertising

POSTMASTER:Send address changes to:FIADA • 1840 Fiddler Court

Tallahassee, FL 32308(850) 385-2712 • Toll Free: (800) 237-0448

Fax: (850) 385-3251 • www.FIADA.com

The IndependentDealeris 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 IndependentDealer 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 �0�0

For members of the Florida Independent Automobile Dealers Association

C O L U M N S & F E A T U R E S

6 President’s Message Greg Edwards

8 Technically Speaking Larry Peters and S. Allen Monello, D.P.A.

12 Is Florida Getting Railroaded? Legislation to create a Florida Rail Enterprise passed through the House and Senate in December. Should dealers be worried?

18 Legislative Update John Grant

20 The Quality Shows FIADA Member Tyrone Davis of Direct Auto Exchange in Tallahassee says quality inventory that is priced right is making the difference at his dealership.

D E PA R T M E N T S

3 Member News & Notes

21 Buzz on What’s Happening

22 Internet Extras

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

January 15, 2010Finance/Funding Sources SeminarManheim’s Central Florida Auto AuctionOrlando, FL8 am - �:�5 pmwww.whanntarp.com

January 15-16, 2010FIADA Board MeetingArnold Palmer Bay Hill Club & ResortOrlando, FLwww.fiada.com

6 — Independent Dealer — January 2010 www.fiada.com

Sometimes, I think we take the word “responsibility” for granted. It’s one of those words that we use so much, many times in the wrong context, that it

starts to lose its meaning. The slogan “drink responsibly” immediately comes to mind.

In case you’re wondering, responsibility actually means: “a particular burden of obligation upon one who is responsible.” Did you read that? A burden of obligation. In my book, that means that sometimes being responsible is doing something you might not feel like doing just because it is the right thing to do.

It’s easy to think of yourself as “responsible,” but are you really? Are you willing to go the extra mile to make the situation right? When a customer comes in the door with a problem, are you ready to bear the burden of fixing it—even if it is going to cost you some money to do it? Are you willing to fight a littler harder for your business, because you know you are responsible for not just your own family but for the families of the people who work for you? Now, here’s the biggie, are you willing to be responsible to your industry and get involved in the FIADA?

I admit, it would be easy to shirk that responsibility. In an environment when sales and profits may be down, it would be very tempting to pass on that dues renewal. Spending long-hours at the office, with never a “day-off ” would make a good excuse for not having enough time to attend a Board Meeting. The “what’s in it for me?” attitude might help you justify why it doesn’t matter if you are a FIADA member, but I think if you take a second look, you’ll see how wrong that philosophy is.

Be a Man;Take Some Responsibility

BY GRED EDWARDS

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

First of all, there are plenty of benefits to being a member. Some are tangible, such as the Independent Dealer magazine, discounts on forms, or coupons and savings with FIADA-approved vendors. Some aren’t as obvious, like a phone call for help that brings immediate assistance, e-mail alerts that help you stay up-to-date with compliance issues, or an idea you heard at the Annual Convention that ended up saving you thousands of dollars. Those are real benefits, friends.

Put those direct benefits aside, and you’ll still find reasons why FIADA membership and involvement is so important. As a dealer, you have a responsibility to your industry to make sure your business can operate in an environment that fosters profitability and efficiency. Increased fees and regulations are not part of that scenario. I guess if you really wanted to, you could go up to Tallahassee yourself, spend a few months there in the Spring tracking legislation and sitting in on committee hearings. You could stand in the rotunda and wave a sign about how you’d really like to have those title and registration fees reversed. You could try that, but I doubt you’d be very successful.

Here’s a better, more responsible, idea. Join FIADA, make a contribution to the PAC, and serve on the Legislative Committee. You know the motto, there’s power in numbers. Believe it or not, that is true. When we all stand together, as a united Association, we are much louder than one guy standing on the sidewalk wearing a sandwich board. Plus, you don’t even have to take time away from your business to do it. Our capable lobbyist, John Grant, is looking out for you in Tally even when you’re in the trenches in Sarasota wrapping up a deal. Now, that’s taking responsibility.


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8 — Independent Dealer — January 2010 www.fiada.com

The REAL ID Act Says to Gather, Go and GetBY LARRY PE TERS AND S . ALLEN MONELLO, D.P.A .

We recently were asked by several Tax Collector Offices and the Department of Highway Safety and Motor Vehicles

(HSMV) to “pass the word” regarding the new HSMV public awareness campaign called “GatherGoGet.com”. The purpose of the campaign is to let Floridians know that beginning January 1, 2010, new documentation requirements will take effect for Florida residents wishing to obtain a driver license or identification card. This is good information for dealers to know, not only for themselves personally, but for their customers who may need a Florida issued driver

license or ID card. These are documents that dealers usually look at to verify the identity of their customers, which is essential in order to comply with DMV and Federal regulations.

Florida previously enacted legislation to ensure that Florida complied with the provisions of the Federal REAL ID Act. The ultimate goal is to raise the standards of state-issued identification to enhance national security. To do this, there has been a nationwide effort to create minimum standards that improve the integrity and security of state-issued driver licenses and identification cards. The goals of this effort are to reduce identity theft, make it more difficult for criminals to obtain fraudulent identities, and to help fight terrorism.

T E C H N I C A L L Y S P E A K I N G

A part of this process requires states to gather certain documents and verify an applicant’s identity, date of birth, social security number and legal presence in the United States when issuing a driver license or state-issued identification card. Beginning January 1, 2010, those wishing to obtain a new Florida driver license or Florida identification card, legally change their name prior to renewal date, or immediately replace a lost or stolen driver license or ID card will be required to visit a driver license office and show proof of 1) identification, 2) Social Security number and 3) residential address (two items). Persons simply

renewing may do so by a convenience method, via the internet or mail, one time between renewals. The renewal following a convenience option must be in person in a state driver license office or participating county tax collector office that process driver licenses.

NOTE: Dealers are not required to comply with this law; this only applies to residents who obtain a driver license or state ID card. Dealers should continue to obtain the required forms of ID as required when processing title and registration paperwork.

To find out more about these new requirements go to the HSMV website: GatherGoGet.com.

Larry Peters and Allen Monello are managing partners in the Automotive Industry Center for Excellence, LLC (AICE) and consultants to FIADA. If you have questions related to compliance issues or of a technical nature, you can reacth them at (800) 237-0448.

The ultimate goal is to raise the standards of state-issued identification to enhance national security.


WHAT DEALERS NEED TO KNOW

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Before you can renew your dealer license for 2010, you’ll have to get your required continuing education credits.

Log on to www.FIADA.com and click on Continuing Education to get started. Our convenient online continuing education program brings you the latest information regarding state and federal laws and industry issues that you need to know about.

Member price for continuing education is only $39.95. Non-members pay $65.95.

�0 — Independent Dealer — January 2010 www.fiada.com

Order online at www.fiada.com or fax order to 850-385-3251. All Fax/Mail orders will be charged a $10.00 administrative fee.

QTY Form # DOCUMENTS Description Member Price

Total Nonmember Price

Total 8300000 Retail Purchase Agreement 3 Part NCR Set/100 per Pack $23.00 $31.00 8300002 Customer Proposal 2 Part NCR Set/100 per Pack $15.00 $19.00 8300003 Trade-in Vehicle Appraisal 2 Part NCR Set/100 per Pack $15.00 $19.00 8300004 Test Drive Agreement 2 Part NCR Set/100 per Pack $15.00 $19.00 8300005 Deposit Receipt-Standard 2 Part NCR Set/25 per Pack $20.00 $23.00 8300006 Used Vehicle Limited Warranty 2 Part NCR Set/50 per Pack $15.00 $19.00 8300007 Spot Delivery (Purchase) 2 Part NCR Set/50 per Pack $11.00 $15.00 8300008 Authorization to Release Payoff Information 2 Part NCR Set/100 per Pack $15.00 $19.00 8300009 Notice to Co-signor 2 Part NCR Set/50 per Pack $11.00 $15.00 8300010 Insurance Coverage Acknowledgment 2 Part NCR Set/100 per Pack $15.00 $19.00 8300011 Notice of Optional Credit Insurance 2 Part NCR Set/50 per Pack $11.00 $15.00 8300012 Wholesale Purchase Agreement 2 Part NCR Set/50 per Pack $11.00 $15.00 8300013 F&I Product Purchase Confirmation 2 Part NCR Set/100 per Pack $15.00 $19.00 8300014 Service Loaner Agreement 2 Part NCR Set/50 per Pack $11.00 $15.00 8300015 Customer Delivery Checklist (Sale Only) 2 Part NCR Set/100 per Pack $15.00 $19.00 8300016 Agreement to Arbitrate 2 Part NCR Set/100 per Pack $15.00 $19.00 8300017 Dealership Telephone Solicitation Policy 2 Part NCR Set/50 per Pack $11.00 $15.00 8300018 Delivery Confirmation & Acknowledgement of

Understanding 2 Part NCR Set/50 per Pack $11.00 $15.00 8300019 Delivery Confirmation 2 Part NCR Set/50 per Pack $15.00 $19.00 8300020 Delivery Confirmation (Spanish) 2 Part NCR Set/50 per Pack $11.00 $15.00 8300021 Interpreter Confirmation of Translation 2 Part NCR Set/50 per Pack $11.00 $15.00 8300022 Deal Jacket – Buff Color Thumb Notch/100 per Pack $28.00 $34.00

8300023 Consignment Agreement 2 Part NCR Set/50 per Pack $11.00 $15.00 8300024 Spot Delivery Agreement Buy Here Pay Here 2 Part NCR Set/50 per Pack $11.00 $15.00 8300025 Acknowledgment of Voluntary Resign 2 Part NCR Set/50 per Pack $11.00 $15.00 8300026 Acknowledgement of As Is Sale 2 Part NCR Set/100 per Pack $11.00 $15.00 8300028 Privacy Policy 2 Part NCR Set/100 per Pack $15.00 $19.00 8300029 Trade In Vehicle Appraisal (Car Image) 2 Part NCR Set/100 per Pack $15.00 $19.00 8300030 Goodwill Repair Acknowledgement 2 Part NCR Set/100 per Pack $11.00 $15.00 8300031 FTC Used Buyers Guide As-Is English w/Transfer Tape 2 Part NCR Set/100 per Pack $16.00 $20.00 8300033 Privacy Notice Pads 1ply Cutsheet 100/sheets per Pad $12.00 $18.00 8300034 Retail Installment Contract – Simple Interest 3 Part NCR Set/100 per Pack $30.00 $45.00 8300035 Retail Installment Contract – PreComputed 3 Part NCR Set/100 per Pack $30.00 $45.00 8301001 Certification of Pollution Control Devices 2 Part NCR Set/50 per Pack $11.00 $15.00 8301002 Hillsborough County Cert of Pollution Control 2 Part NCR Set/50 per Pack $11.00 $15.00 8301004 Dealer Training Manual Coil Bound Book 1 Each $25.00 $35.00 8301005 Title & Registration Manual Coil Bound Book 1 Each $25.00 $35.00 8301006 Dealer Records Log Coil Bound Book 1 Each $15.00 $21.00 8301007 Customer Care Paper Folder Envelope w/flap 50 per Pack $22.00 $25.00 8301008 Odometer Statement 2 Part NCR Set/50 per Pack $11.00 $14.00 8301009 Credit Statement 2 Part NCR Set/50 per Pack $11.00 $15.00 8301010 Pre Sale Credit Disclosure 2 Part NCR Set/50 per Pack $11.00 $15.00

ORDERTOTAL

SUBTOTAL

SALES TAX ______%

$10.00 Administrative Fee for all Fax & Mail Orders

DISCLAIMER – All FIADA forms have been checked carefully to include latest regulations of both state and federal agencies and are believed to meet all requirements; however, all forms are furnished with no express warranties. The FIADA does not render legal advice, and does not assume any responsibility or liability in conjunction with the distribution of these forms. The Form return policy is a 30-day return policy. If you are not happy with any products/items you order, simply notify us within 30 days of shipment for a prompt exchange, credit, or refund.

SHIPPING CHARGES BASED ON ORDER TOTAL

Up to $30.00 Add $8.00 $60.01 -$100.00 Add $10.00

$30.01 - $60.00 Add $9.00 $100.01 (and over) Add $12.00 TOTAL DUE:

FIADA Order Form Information and Instructions Date of Order:

Attn: Dealership Name Method of Payment:

Check Money Order Credit CardStreet Address Required for Delivery Name on Credit Card

City, State, Zip County Credit Card Number

Telephone Fax Expiration Date Verification Code

FLORIDA INDEPENDENT AUTOMOBILE DEALERS

ASSOCIATION 1840 Fiddler Court

Tallahassee, FL 32308 FAX (850) 385-3251

PHONE (800) 237-0448 www.fiada.com Email Signature

Attn: DealershipName MethodofPayment DateofOrder

Street,AddressRequiredforDelievery NameonCreditCard

City,State,Zip County CreditCardNumber

Telephone Fax ExpirationDate VerificationCode

Email Signature

qCheck qMoneyOrder qCreditCard

DISCLAIMER—All FIADA forms have been checked carefully to include latest regulations of both state and federal agencies and are believed to meet all requirements; however, all forms are furnished with no express warranties. The FIADA does not render legal advice, and does not assume any responsibility or liability in conjunction with the distribution of these forms. The Form return policy is a 30-day return policy. If you are not happy with any products/items you order, simply notify us within 30 days of shipment for a prompt exchange, credit, or refund.

SHIPPING CHARGES BASED ON ORDER TOTALUpto$30.00 Add$8.00$30.01-$60.00 Add$9.00

$60.01-$100.00 Add$10.00$100.01(andover) Add$12.00

ORDER ONLINE AT www.FIADA.com or FAX order to 850.385.3251 or MAIL to FIADA, 1840 Fiddler Court, Tallahassee, FL 32308.

January 2010- — Independent Dealer — ��www.fiada.com

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�� — Independent Dealer — January 2010 www.fiada.com

From the moment the first Model T rolled off the line in 1904, America’s love affair with cars began. It was not the first automobile ever invented, but it was the first

affordable form of transportation that gave Americans freedom and independence to travel when, how and where they wanted.

Not much has changed more than a century later. Americans and Floridians still love their cars. At last count, over 254 million cars were registered in the United States, with close to 8 million right here in the Sunshine State. Cars give people employment, entertainment and sometimes empowerment. They are as much a part of America’s history and future as baseball and apple pie.

So, with all the talk coming out of Tallahassee about the Florida Rail Enterprise and historic legislation that will lay the track toward a new era of transportation, should car dealers be worried? From a competitive stand-point, not a chance; people are still going to need cars and buy cars. The thought of car dealers having to compete with a train station is probably a moot point.

What car dealers should be asking in the great rail debate is what it will mean to their business operations and how is the government going to fund it? Local county sales tax increases, Doc Stamp Fee increases, and other various fees and forms of taxation have all been discussed and nothing is off the table. While legislators scramble to answer the question of how to fund a statewide high-speed rail system, regional commuter rails and a railway authority, dealers now more than ever are paying attention.

However, if you’re just tuning in, bills SB-2 and HB-1 passed in a special legislative session on December 8, 2009 after two previous attempts failed in the general session to get through. Governor Charlie Crist triumphantly signed the law into effect shortly thereafter. This new law will provide necessary funding of $13 to $15 million annually to keep South Florida’s Tri-Rail, the commuter train spanning Miami-Dade, Broward and Palm Beach counties operational. It also approved the beginning phase of

Light Rail is Coming, but We Still Love Our Cars By Christy Taylor and Steve Jordan

Is Florida Getting


SunRail, a commuter rail system that will transport passengers through the heart of Central Florida stretching from DeLand in Volusia County to Poinciana in Osceola County, with a price tag somewhere around $1.2 billion. Hopes of a high-speed rail system linking Tampa, Orlando and Miami are also riding on the bill, which is thought to improve the state’s chances of winning $2.5 billion in federal money over the next 30 years.

That’s a lot of money, especially at a time when the lack of funds for budget critical items is a brutal reality. Fears of the state budget running nearly $2.6 billion in deficit halted all new projects and requests for funding in the 2009 legislative session and forced the state to concentrate only on core missions and programs. County School Boards are fearful of going broke and not being able to pay teachers as a result of lower home values and correspondingly smaller property tax revenues. The state has been borrowing $255 million a month from Uncle Sam to cover the escalating number of unemployment benefits, since nearly depleting its Unemployment Compensation Trust Fund in June 2009. Used and new car dealers and Florida’s driving public are sure to remember legislators’ attempts to find some extra cash by voting to raise title, registration and driver’s license fees up to 300%. The 2010 budget looks just as dreary and has left some officials scratching their heads as to where the money will come from.

All car dealers and other businesses have tightened their belts in the last 18 months, sifted out “nice to have” expenses from their budgets and concentrated only on “have to have” items to keep their businesses afloat. We expect no less from our government officials and our legislators. Light rail is a “nice to

have” not a “have to have” item for our state and should not be in play at all at this time.

After all, taxpayer money keeps the wheels of government turning and the hope for responsible stewardship should be found on every tax dollar spent. That sense of doing right by “the people” was in the mind of State Representative Michelle Rehwinkel Vasilinda, D-District 9, when she voted against the legislation.

“As I considered my vote, I asked myself, how would a healthy Florida family set their priorities? Just as a financially stressed family would discuss spending priorities and investment opportunities around the kitchen table, so should the Florida Legislature discuss setting priorities in our committee rooms and on the floor of the house and senate,” Rehwinkel Vasilinda said. “This special session the legislature made a decision that was similar to a family deciding to purchase and go into debt to buy a luxury car instead of sending their deserving and talented children to college.”

Rehwinkle Vasilinda went on to say she voted against the legislation for several reasons, but at the top of her list was the belief that the SunRail deal may not be the best use of Florida’s revenue when considering other, more crucial, needs of the state. She also says the logic behind funding Tri-Rail using future increases in gas tax revenues as a “dedicated funding source” is flawed. Continued on Page 14.

“This is a policy betting that Floridians will double their gas purchases over the next decade. The bill rests, in part, on the hope that Floridians will buy more gas and therefore keep the coffers at DOT full in order to support rail! This defies common sense,” Rehwinkle Vasilinda said.

Another outspoken opponent of the rail legislation, Senator Paula Dockery, R-Lakeland, raises similar concerns. Dockery, who is organizing a campaign to run for governor later this year, has disagreed with

the unnecessary expenses, liability concerns and special-interest ties associated with the legislation. In an editorial published by the Orlando Sentinel, Dockery commented on the timing of such a large project.

“I’m a big supporter of rail transit and the need to diversify our transportation systems, where it makes sense,” Dockery wrote. “I just don’t believe that commuter rail should come at such an extraordinary cost, particularly in these tight times.”One of Dockery’s chief concerns is the sale price of the track the state will have to purchase from railroad mogul CSX to build SunRail. At $432 million for 61 miles of track, the

Light rail is a “nice to have” not a “have to have” item for our state and should not be in play at all at this time.


RAILROADED Continued from Page 13.

with a vote of 5-2 and now the voters will ultimately decide in November if they are willing to pay a higher sales tax for light rail. Either way, car dealers will continue to feel the pain and contribute more to Hillsborough County sales tax revenues than any other industry.

Currently, auto dealers contribute 14% of the County’s sales tax revenue. That is the largest of any industry. A penny does not sound like much until it starts adding up, to the tune of an extra $100 for every $10,000. Commissioner Al Higginbotham is opposed to the sales tax increase, and says it could cause serious effects for Hillsborough dealers such as customers choosing to look outside of the County when buying a vehicle to save the extra money.

Higginbotham says he hopes all Hillsborough County citizens, including its used car dealers, will educate themselves about the issue and let their voices be heard. As a guy who takes the bus to work at

deal will be the most expensive rail sale in U.S. history. Dockery’s other fear is higher taxes.

In Tampa and surrounding Hillsborough County, citizens, businesses and auto dealers are facing a pending sales tax increase from 7% to 8% to fund a multi-modal transportation plan that includes both bus and rail. The Hillsborough County Transportation Task Force has studied the mobility needs of the region for the past three years and their recommendation includes a plan that integrates bus, rail, roads, intersections and other non-vehicular components to connect Hillsborough County’s job centers, residential communities, educational, healthcare and activity centers while also integrating regional connections in the future. To pay for the plan, the Task Force recommended the Board of County Commissioners set a referendum for the General Election in November 2010 for a one percent sales tax increase. The Board of County Commissioners agreed

least once a week, Higginbotham says he is a supporter of public transit; he’s just not sure that a rail system is the wisest investment. With enough public opposition, including voting no in November, the Transit Referrendum can be stopped dead in its tracks. When dealers have their say, the “penny for rail” will become “save the penny for sales.”

“What the public needs to do between now and November is study the facts and decide what is it we owe our kids and the next generation? A rail system and a government riddled with debt and deficit?” Higginbotham said. “Let their voices be heard. It’s as simple as making a phone call or sending an e-mail. You may think one person can’t make a difference, but I’ve seen advocates and organizations pull together and turn these things around.”

As it’s playing out in Tampa, sales-tax increases have traditionally been a regional issue, and the chances

Continued on Page 16.

If you don’t want to pick up the tab for Hillsborough County’s proposed rail system, with a 1% sales tax increase, then you need to vote NO on the transit referrendum in November. Tell your employees, your family, your friends and anyone else in your circle of influence to do the same.

You also want to let your County Commissioners know where you stand on the issue and why a penny more in sales tax would hurt your business. This list shows which Commissoners voted for the referrendum and which are against it. Take the time to send them an e-mail and hold them accountable for their vote. Let them know how your business, and livlihood, will be affected if the sales tax increase passes. Rally the troops. Sound the alarm. It’s time to take action!

CALL TO ACTION FOR HILLSBOROUGH COUNTY DEALERSDistrict 1- Rose [email protected]

District 2 - Chairman Ken [email protected]

District 3 - Kevin [email protected]

District 4 - Al [email protected]

District 5 - Jim [email protected]

District 6 - Kevin [email protected]

District 7- Mark [email protected]

HOW DID yOUR COmmISSIONER vOTE ON THE TRANSIT REFERENDUm?

3

3

3

3

3

3

3

YES NO COMMISSIONER

January 2010- — Independent Dealer — �5www.fiada.com

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of a statewide sales tax increase are probably not likely, according to Florida Tax Watch, a watchdog organization of state tax dollars. President & CEO, Dominic M. Calabro, says it makes sense for government to own the infrastructure of a rail system, including the property, track and other essential equipment to make it run, just like it would an airport. The key to the railway’s success will be the private investors and businesses that will ultimately bankroll the project. A railway without trains would be like an airport without planes or a seaport without cruise ships.

Colabro says the question for car dealers is less about a tax increase and more about capitalizing on an opportunity. The collaboration of the auto industry to position itself as an enhancement to rail is a way to turn potential lemons into lemonade.

RAILROADED Continued from Page 14.

“Any kind of rail system, for better or worse, will need the interaction of other modes of transportation,” Colabro said. “If the industry can identify new opportunities and position itself as a very vital and crucial role in this multi-modal approach, car dealers stand to greatly benefit.” In the case of light rail travel, will the benefits outweigh the costs? It’s too soon to tell. But independent dealers are paying attention because like in most other cases, when the government goes to dinner, the auto dealers and our industry pick up most of the tab through increased fees, taxes and heartburn.

More than one hundred years ago when Henry Ford made transportation affordable to every family, in every class, he refined the assembly line, made the Model T affordable and built a corporate

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business model that works. That business model still works today as indicated by Ford’s 3rd quarter 2009 profit of $997 million and underscored by the fact that people everywhere still love their cars.

What is unclear, however, is whether the multi-billion dollar promissory note our state legislature just slid into the light rail slot machine will payout. The idea of “bringing transportation to the masses” in the form of cars has proven effective, but the still untested idea of “bringing the masses to the transportation” in the form of light rail is still very much a gamble, especially when we don’t know exactly who is picking up the tab.

In the meantime, let’s cross our fingers and hope Florida’s legislative gamble spins a winning jackpot, but don’t hold your breath and let’s not bet the kids’ college fund on it.


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Dollars DominateBY JOHN GRANT, F IADA LOBBYIST

With the Florida Legislature’s opening of the 2010 regular session only a few weeks away, the major focus will be on writing a budget

with an anticipated $2.6 billion deficit. There are only three options: 1) cut spending, 2) raise taxes and 3) adding or raising fees.

You can place a safe bet against raising taxes in an election year. And, as far as cutting spending, the legislature has already cut the budget by nearly $10 billion in the last four years. There are few areas to cut without compromising education, public safety and those services essential to protecting and providing services to all Floridians.

Last year, they made it through using a large chunk of stimulus money from the federal government and some of that will still be around this year, but not enough.

So, my guess is that we expect fee increases in a lot of areas, especially those that touch the motoring public. We saw the draconian fee increases imposed by last year’s session with some motor vehicle fees increasing as much as 300%. FIADA is committed to working for a rollback on those fee increases this year, but it won’t be easy and there may well be more fees or fee increases coming. FIADA will be very pro-active in guarding against fee increases that affect the motoring public and small business owners like our dealers.

Especially troubling is the recent action taken in a special session of the legislature to fund high speed rail, something that has proven to be a money loser in other states and even with Tri-Rail in this state. Along those same lines, some local governments are pushing light rail.

L E G I S L A T I V E U P D A T E

Hillsborough County, for example, has voted to put the issue on this year’s general election ballot to add a penny sales tax to fund light rail and that would be just the beginning.

As FIADA’s Legislative Advocate, I along with Executive Director Steve Jordan visited with the Hillsborough County Commission to encourage them not to move in this direction, as a penny increase would add nearly a hundred dollars to the cost of the average pre-owned vehicle sold in the county.

During the session we will be working for our members in speaking out against actions that would hurt their business and make it more difficult and more expensive to purchase an automobile.

I encourage all of our members to contact their local legislators before the session begins and let them know of our concerns and let them know that we will be watching how they vote for us in this upcoming session before we vote for them in the fall elections.

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Tyrone Davis is a busy man. As president and part owner of Direct Auto Exchange in Tallahassee he spends his days inspecting inventory, helping

customers and edifying employees.

It was Davis’ dream as a 19-year-old detailer for Foster Motor Company to one day have his own dealership. He soaked up close to 15 years of experience before venturing solo. The risk has been met with reward as Direct Auto Exchange has proven to be a powerhouse in the area.

“I’m very proud that I accomplished what I set out to do,” Davis said.

Not only is Davis living his dream, but he is living it large. As Tallahassee’s second largest dealership in sales volume,

radio knob for $7,000 or one that’s in near-perfect condition for $700 to $800 more, I’d rather pay more,” Davis reasoned. “Some dealers don’t want to pay that extra $700 or $800, but I would to ensure the quality of the vehicles I am selling.”

The average car Davis sells is in the $10,000-$11,000 range. His business strategy is to concentrate on keeping overhead down so that he can offer a higher-quality car at a value price. An ’08 Impala with 50k miles may go for $14,900 at one of the local competitors, but Davis would offer it for $11,900. He also believes in “fixing” any imperfections prior to putting a vehicle on the front-line so that customers are hard-pressed to find a reason not to buy.

“Customers tell us all the time how they love our inventory,” Davis said. “If a car needs tires, we put them

Davis is making things happen. Ironically, Davis was the sales manager and F&I manager at Ultimate Image, Tallahassee’s number one dealer, just prior to opening Direct Auto Sales over three years ago. In fact, while working for its owner, Rob Wyche, Davis made his plans to become an independent dealer and Wyche supported him as partner in the new dealership. Now as number one and two, both dealerships enjoy a prominent place in Tallahassee’s market.

Though some have described today’s market as sluggish, particularly for independent dealers, Davis does not agree. He averages 30 to 36 sales a month and helps customers find loans through a network of banks and finance companies. Offering a quality inventory, Davis says, has made the difference.

Davis and his buyer scout at auctions primarily in Central Florida/Tampa and Orlando. With supply tight right now Davis advises dealers not to be afraid of paying a little more to get the quality that customers will notice.

“If I have to chose between an ’06 Malibu that needs tires, maybe has a small burn in the seat, needs new visors and a

on. If it needs an oil change, we take care of it. We go ahead and do all of0 those things up-front because it makes for less to overcome at the time of the sale.” Davis also says he is always willing to show the Carfax on any vehicle in inventory, even if the customer is “just looking.”

Direct Auto Exchange’s website at www.directautoexchange.com has a complete listing of inventory and has brought customers from as far away as Miami. The majority of customers, however, still come from that traditional base of repeat and referral customers. To really zone in on that group Davis has found a couple of effective and innovative strategies.

For one, every customer gets a courtesy call to thank them for their business. Davis personally spends at least eight hours a week making the calls. He feels it not only makes the customer feel important receiving a call from him as owner, but also sometimes can lead to an additional sale.

“I called a customer the other day and started talking with her. She told me her sister was looking for a Malibu, and I ended up selling her one,” Davis said.

By Christy Taylor

Tyrone Davis of Direct Auto Exchange in Tallahassee.


Daphne Davis, Davis’ wife, creates a quarterly newsletter that is mailed out to customers, helping to stay in contact with those potential repeats and referrals. The newsletter offers light-hearted games like scrambles and word-searches as well as personalized lists of birthday’s acknowledgement for all customers. One of the most popular games called “Where’s Tyrone?” is played by finding all the photos of Tyrone that are hidden throughout the pages. The first reader to call or stop by the dealership with the correct answer wins a $50 gift card. Davis says people seem to enjoy the game and it keeps people reading it.

While some dealers look to cutting employees or hours when finding areas to save money, Davis says no way. He says his five employees are his company’s biggest asset and he makes it a top priority to keep them happy. One way is by hosting quarterly employee dinners where he treats the staff to a nice dinner where they all talk about how things are going and kick around new ideas.

As members of the Florida Independent Automobile Dealers Association, Davis says Direct Auto Exchange has been most impressed with the way FIADA constantly communicates updates and changes to the law. Getting an e-mail with an alert relating to a compliance issue is a lot easier and more efficient than having to pick-up the phone and call.

What does 2010 hold for Davis and Direct Auto Exchange? Hopefully more of the same: good sales, happy customers and satisfied employees. If there is one thing he would like to see happen, it would be some time off.

“I haven’t had a day off since I started working here,” Davis confessed. “I’d like to be able to have a little more time to spend with my family.”

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The Gator nation felt like Santa had come to repo their gifts when Head Football Coach Urban Meyer announced his retirement two days after Christmas. Then, the next day in true Christmas miracle fashion, Meyer said he would take a leave of absence, rather than retire and may even be back on the sidelines when next season opens.

Citing health concerns, Meyer suggested he needed some time to

get healthy for his family. The team’s offensive coordinator Steve Addazio will run the team during Meyer’s absence. No doubt Gator fans are hoping for a smooth transition, and get well soon wishes for Meyer.

So, it of course got us thinking. Is coaching college football more stressful than running a used car dealership? What do you think? Answer our Tweet at http://twitter.com/FIADA.

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I N T E R N E T E X T R A S

NOTICE TO SURRENDER

The DMV has approved the notice to send to customers who are concealing your vehicle, notifying them that you will place a stop on their tag. The Notice to Surrender is available in both Word and fill-in PDF at www.FIADA.com. By using this form, you are assured you are sending out the proper notice to your customers. Log on to the FIADA home page and follow the links to download the form.

You’ll also find a link to download the form to place a lienholder stop on customer tags for skipping or refusing to surrender a financed vehicle.

YOU’vE GOT MAIL The Florida Division of Motor Vehicles is now communicating important information to motor vehicle and mobile home dealers electronically. In order to receive notices from the department via electronic mail, please provide them with your dealership’s current email address. Follow the links on the News and Events tab at www.FIADA.com for a link to contact your regional DMV office.

FOLLOW US ONLINE! Gain access to industry breaking news, Association information and more by following FIADA on twitter and Facebook.

HEAVYMETALHEAVEN.

There’s a better life for your aged inventory.

In tough, competitive times like these, you need a tough, competitive edge. That edge is SmartAuction. Each day, SmartAuction delivers thousands of fresh, quality pre-owned vehicles of nearly all makes and models right to dealers’ desktops. And each day, dealers all across the U.S. use SmartAuction to turn excess inventory into cash flow. Find out how we can keep some of that metal moving for you.

Open to approved eligible dealers of every brand. Visit smartauction.biz or call us at 877-273-5572 (press #, option 4).

© 2009 GMAC. All rights reserved. SmartAuction is a registered service mark of GMAC.

The President might not be consulting Independent Dealer for business strategy, but decision-makers at Florida independent auto dealerships are.

2010 promises to be a great year for auto dealers as we shrug off a slow economy and begin looking forward to brighter days. Independent Dealer will be ready to assist them with increased monthly circulation and a new approach to content and readability against a full-color layout. We are pleased with the changes we’ve recently made, and we think you will be, too.

Go to our website at www.fiada.com and download a 2010 media kit and rate sheet, or call us at (800) 237-0448 to find out more.

By the way, we cannot confirm or deny that Mr. Obama reads Independent Dealer. We have sent him a copy, and he didn’t send it back, so...


I N T E R N E T E X T R A S

HEAVYMETALHEAVEN.

There’s a better life for your aged inventory.

In tough, competitive times like these, you need a tough, competitive edge. That edge is SmartAuction. Each day, SmartAuction delivers thousands of fresh, quality pre-owned vehicles of nearly all makes and models right to dealers’ desktops. And each day, dealers all across the U.S. use SmartAuction to turn excess inventory into cash flow. Find out how we can keep some of that metal moving for you.

Open to approved eligible dealers of every brand. Visit smartauction.biz or call us at 877-273-5572 (press #, option 4).

© 2009 GMAC. All rights reserved. SmartAuction is a registered service mark of GMAC.

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ClearwaterManheim St. Pete14950 Roosevelt Blvd.,Clearwater, FL 33762727-531-7717 or 877-993-9964

Semi Annual Classic Car Sale(call for details)General Manager: George Ruiz

DaytonaManheim Daytona Beach1305 Indian Lake Road,Daytona Beach, FL 32124386-255-2500 or 800-881-3233Sale: Wednesday @ 4:00 p.m.General Manager: Eric Wagner

Fort MyersManheim Fort Myers2100 Rockfill Road,Fort Myers, FL 33916239-476-9800Sales: Wednesday @ 4:00 p.m.Cinema Sale every otherWednesday at 3:00 p.m.General Manager: Tom Hammer

LakelandManheim Imperial Florida3300 County Line Road,Lakeland, FL 33811863-607-6000Sale: Tuesday @ 4:30 p.m.General Manager: Mark Albertson

Manheim Lakeland8025 North State Road 33 Exit 38,Lakeland, FL 33809863-984-1551 or 800-967-2886Sales: Wednesday @ 9:00 a.m. &

RV, Boat & Power Sports Sale1st Wednesday @ 9:00 a.m.Motorcycle Sale2nd Wednesday @ 11:00 a.m.General Manager: Lois Chessor

Fort Lauderdale

PensacolaManheim Pensacola6536 North W StreetPensacola, FL 32505850-477-3063

TRA Sales Bi-weekly on Wednesday @ 9:30a.m. at Burgess Road locationGeneral Manager: Tom Holton

OrlandoManheim Central Florida9800 Bachman Road,Orlando, FL 32824

407-438-1000 or 800-966-2570Sales: Wednesday @ 9:00 a.m.,“Central Nights” Sale

TRA Sale Wednesday @ 8:30 a.m.General Manager: Butch Herdegen &Tony Markese

Manheim Orlando11801 West Colonial Drive,Ocoee, FL 34761800-337-8491 or 877-888-FAAOSales: Tuesday @ 9:00 a.m.GM & Chrysler Factory Sales bi-weekly onMonday @ 12:30 p.m.Highline Sales 2nd/4th TuesdayGeneal Manager: Allan Wilwayco

TampaManheim Tampa401 South 50th Street,Tampa, FL 33619813-247-1666

Ford Factory Sale bi-weekly onWednesday @ 10:00 a.m.TRA Sale Monday @ 9:30 a.m. atCone Road locationGeneral Manager: Mark Willey

West Palm BeachManheim Palm Beach600 Sansbury Way,West Palm Beach, FL 33411561-790-1200

Highline SaleWednesday twice monthly @ 9:30 a.m.General Manager: Ron Parker

Puerto RicoManheim’s CaribbeanSubasta De AutoCarr. #865 KM 4.7, Bo. Candelaria,Toa Baja, PR 00949787-261-7300 or 866-567-0001

General Manager: Pedro Albarran

Manheim Service CentersManheim Doral8339 Northwest 12th St.Doral, FL 33126305-392-6373Contact: Nilibeth Vargas

Manheim Jacksonville10737 New Kings Hwy., Ste 101904-446-2101Contact: Ciara Smallwood

Manheim Ocala2615 NW Old Blitchton Road, Ste 100Ocala, FL 34475352-694-6237Contact: Kathy Trout

Manheim Fort Lauderdale5353 S. State Road 7, Davie, Fl 33314954-791-3520Sales: Tuesday @ 9:30 a.m.TRA Sale Tuesday @ 12:30 p.m.Ford Motor Credit every otherFriday @ 9:00 a.m.General Manager: Doug Kramer

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january 2010 independent dealer magazine

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