A Publication of the Florida Independent Automobile Dealers Association
Information and Insight for Florida Used Car Dealers
FIADA can help you earn your Continuing Education credits before the April 30 deadline.
6 HALFWAY POINT
How FIADA’s Surrender Stop legislation is fairing mid-session.
FULTON, MO PERMIT NO. 38
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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 Christopher Leedom President Dino Mercurio Senior Vice President Brandi Noegel Chairman of the Board David Cox, CMD Secretary Paul Matton Treasurer Frank Fuzy Regional Vice President George Hickey Regional Vice President Steve Marbais, CMD Regional Vice President Jim Winterick, Sr. Regional Vice President Jim Winterick, Jr. Regional Vice President FIADA STAFF Lisette Mariner Executive Director Terry Myers Educational Instructor Sarah Langley Administrative Director Nicole Lee Development Administrator Amelia Tillman Administrative Assistant Christy Taylor Editorial/Advertising
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FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Toll Free: (800) 237-0448 Fax (850) 385-3251 • www.FIADA.com The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308 The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.
Contents April 2013
For members of the Florida Independent Automobile Dealers Association
C O L U M N S & F E AT U R E S 4
President’s Message Christopher Leedom
Executive Director’s Message Lisette Mariner
Member Benefits FIADA Preferred Partners: Partnerships designed with you in mind.
Membership News New, Renewing and Rejoining Members
Logged On How to set up sub-accounts for staff and additional employees.
Public Sale vs. Private Sale Attorney Steven Hyatt explains what Florida law requires you to tell your customers when sending notices of sale after repossessions.
Top 5 Sales Myths Busted Sales trainer John Chapin shares his experience with sales by putting common misconceptions to the test.
Back to Basics Dealer Training School Instructor Terry Myers
Time is Running Out to get your Continuing Education Credits The deadline is at the end of the month and if you are still looking to earn your CE credits check out FIADA’s online course.
Meet the Secretary: David Cox, CMD
Legal Round-Up Thomas B. Hudson and Nicole Frush Munro take a look at current legal issues facing dealers around the country.
Workin’ Away Again at the FIADA Annual Convention Make plans now to attend the premier event for Florida’s independent dealers. Get a head start by sending in your registration now.
Industry News FTC Updates Online Ad Rules; Charleston Auto Auction Celebrates April 2013 — Independent Dealer — 3
FROM THE PRESIDENT
Use Your Resources BY CHRISTOPHER LEEDOM, FIADA PRESIDENT
his month our focus is on maximizing FIADA as a resource. Many dealers do not realize it but our association is an excellent resource for a broad spectrum of services. These services are selected by dealers for dealers. FIADA constantly is reviewing the market landscape and assessing what products and services our dealer members need. From our legal resource hotline to dealer education to discounts on shipping, FIADA has programs and resources that are designed to help you run your business more efficiently. Business today is highly competitive no matter what you do. It is important to be able to network and identify best practices for what we do. FIADA is a great resource for providing you with a safety net of advice, research and counsel to help you navigate the world of owning and operating a dealership – no small feat in and of itself. Each and every dealer in our state should be a member of FIADA. If you know a dealer that is not, encourage them to join today. We now have a referral fee program that will pay you $50 for every referred dealer that joins. It is called our MVP Program.
FIADA Independent Dealer magazine is a great resource and member benefit as well. In this issue alone we have articles relating to sales tax, legal updates, sales generation and much more. But this month is no different than any other issue. Our magazine is designed to provide monthly communication that will keep you aware of what is taking place on the front lines. By accessing this information you can be better informed as a dealer-owner and that should equate to a higher probability of success. FIADA exists to help dealers succeed! Last but not least, in this issue we are promoting our annual FIADA Convention. This year we will go to the central part of our state – beautiful Orlando. At the convention there will be a host of speakers, workshops, and educational offerings that is second to none. We hope to see you there so sign up and register today. As a reminder, attendance at the many workshops counts towards your continuing education credit requirement. I hope that you are enjoying a successful year - Good luck and have a great month!
Don’t Forget about “cars for kids” Last year FIADA began a new program with the Florida Sheriffs Youth Ranches called “Cars For Kids” where dealers organize an event at their dealership to raise money and donate items to the FSYR. The dealers who have already participated have raised thousands of dollars and made vehicle donations for the FSYR, who are able to sell the donated cars through their fundraising foundation’s car lot. President Chris Leedom hosted a Cars for Kids event recently at his AutoMaxx dealership in Sarasota. If you would like to organize an event or find out how to help, call FIADA at (800) 237-0448. 4 — Independent Dealer — April 2013
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Protect Tomorrow. Embrace Today.™ Vehicle Service Contracts I GAP Coverage I Credit Insurance I Lifetime Engine Warranty Limited Warranty I Dealer Participation Programs I F&I Training I Advanced F&I Technology
Contact Protective’s Florida representative, Chris Behrens at 866 452 7335 A “National Corporate Partner” has met stringent NIADA criteria demonstrating that it can provide valuable products and services to NIADA members. No legal partnership has been created by the granting of this status, but NIADA does receive compensation from Protective. Lifetime Engine Warranty, Limited Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VSCs are backed by Old Republic Insurance Company. GAP, Lifetime Engine Warranty and Limited Warranty are not available in NY. 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.
April 2013 — Independent Dealer — 5
EXECUTIVE DIREC TOR’S MESSAGE
FIADA: Your Number One Resource BY LISET TE MARINER, EXECUTIVE DIREC TOR
he 2013 Legislative session is well underway and about halfway from completion. I’m happy to report that the HB 925 Liens on Motor Vehicles & Vessels sponsored by Representative Rooney sailed through its first committee in March. Your lobbyist, Sandra Mortham, is working jointly with the legislative committee to ensure this pace continues for the next committee stops. If you are interested in keeping up with the progress along the way, I would encourage you to become part of the FIADA legislative committee. You can also visit myfloridahouse.gov and type in HB 925 under the bill search to keep up with the changes as they occur. We are making great progress with the HB 925, but the companion bill, SB 1044, sponsored by Senator Stargel, has not been on the same fast track. Please stay tuned to legislative alerts as we may need your help quickly. This month, we’ll be hosting a Town Hall Meeting and FIADA Board Meeting in the West Palm Beach area, and we’d love for you to join us. On Saturday April 20, 2013, your FIADA board will be meeting in the Embassy Suites, Palm Beach Gardens. As a member of the FIADA you are welcome and encouraged to participate in this meeting. Whether or not you are able to make it to the Board Meeting, you should consider attending the next Florida Town Hall meeting on Friday April 19. Are you wondering how healthcare reform could affect your dealership? Want to stay current on legal issues? The Town Hall Meeting will feature legal insights, healthcare reform updates, and online buying strategies. Meet legal and healthcare experts, speak with other dealers, and get all of your questions answered. Mark your calendar for Friday, April 19 and register for this free event online at fiada.com. While you’re registering for events, consider reserving your ticket for the national and state annual conventions. The NIADA and FIADA conventions are just around the corner, and it’s not too early to register to attend either event. NIADA’s Annual Convention is June 24-27 at Caesar’s
6 — Independent Dealer — April 2013
Palace in Las Vegas. The convention will feature keynote speaker Barry Switzer and many programs to help you grow your business. Register for the NIADA convention at NIADA.com. We also hope you will join us on October 1720 at Disney’s Coronado Springs Resort in Orlando, Florida for the FIADA Annual Convention. Here, you can earn the required 8 hours of continuing education to maintain your dealer’s license, network with dealers from all over Florida, find the latest dealer resources in the Exhibit Hall, and enjoy dancing to a Jimmy Buffet style band on Saturday evening. Visit FIADA.com for the latest information. Do you know a dealer who conducts business in an ethical manner and gives back to their community? Nominate him or her for the 2013 FIADA Quality Dealer Award, the most prestigious dealer award in the state of Florida. The Quality Dealer has come to embody all that it means to be a dealer who is committed to quality, excellence, outstanding customer service, and to making their community a better place for everyone. Visit fiada.com to nominate yourself or someone you know for the 2013 FIADA Quality Dealer Award. The winner will be announced at FIADA’s 2013 Convention (Oct 17-20) at Disney’s Coronado Springs Resort in Orlando, FL. The FIADA Quality Dealer award recipient will then compete with other state quality dealers for the national quality dealer award at NIADA’s Convention in June 2014. To be considered for the FIADA Quality Dealer Award, please submit your nomination form by June 30, 2013. Make the most of your FIADA membership. Play an active role in shaping the future of the industry. FIADA has five active Committees that meet via phone conference to focus on Legislative Issues, Dealer Vendors, FIADA Membership, Improving Member Benefits, and the 2013 Annual Convention. If you’re interested in participating on any of the FIADA committees, please send me a quick note to Lisette@fiada.com. We love hearing from our members! www.fiada.com
Y 28 DA T FLOA
SIMUL C AVAIL AST ABLE
check out our websites:
WWW.YOURAUCTIONTAMPABAY.COM 1-800-675-4444 WWW.YOURAUCTIONFTMYERS.COM 1-866-924-7070 WWW.YOURAUCTIONPASCO.COM 1-855-255-4111 WWW.YOURMOBILEAUCTION.COM 1-866-924-7070
Partnerships Designed With You in Mind FIADA Preferred Partners offer your dealership discounts on the business services you use the most.
he bad news is the cost of business is going up. The good news is FIADA has a way to help you stay competitive, lower your overhead and increase your bottom line. Want to know how? Through our network of preferred partners who want to provide you with the services you need and reward you with a discount for being a FIADA member. If you are not taking advantage of a preferred partner relationship, now is the time. See what the program has to offer: FedEx FIADA members are eligible to receive valuable discounts on select FedEx shipping services. There are no fees and no minimum shipping requirements to save: • 27% on select FedEx Express services • 23% on select FedEx Express international services • 15% on select FedEx Ground services • 10% on select FedEx Home Delivery services
maintained an exclusive relationship with the same A+ rated insurance company for garage liability since 1989. Today, Williams & Stazzone provides a “one stop shop” for dealers to get garage liability insurance, dealer bonds, group health insurance and more. For more information contact Williams & Stazonne Insurance Agency at 1-800-868-1235. Solveras Solveras offers merchant services/ credit card processing. This program is an excellent opportunity for you to reduce your overhead and increase sales. It is an easy way to improve your bottom line. For a free savings analysis, call 1-800-613-0148 orgo to www.solveras.com/niada.
To enroll in the FedEx Advantage Program, go to www.1800members. com/new/fiada or call 1-800-MEMBERS.
Auto Data Direct, Inc. ADD StiQR is a revolutionary new product that will help you sell more cars. Exclusively from ADD, these window stickers are QR code mobile technology to link savvy customers to NMVTIS histories, vehicle specs, dealer websites, Facebook, Twitter and more. Visit www.add123.com/qr/dealer for more information.
Williams & Stazzone Williams & Stazzone Insurance is on the largest insurers of independent dealers in the nation. They have
Auto Data Direct is also offering free activation for dealers who sign up for their ELT services and deposit $50 in a pre-paid account. ADD’s web-based ELT service offers volume discounts,
8 — Independent Dealer — April 2013
an online lien manifest, email and text notification, printable confirmations, integrated paper title requests and many additional dealer tools. To take advantage of the free activation offer, visit www.ADD123.com and use the promo code FIADAELT at sign up. Current ADD customers can take advantage of the special offer by entering the FIADAELT promo code under the ELT tab after log-in. Triumph Consulting Triumph Consulting specializes in products that give your independent buy-here, pay-here dealership a distinct competitive advantage. They offer unique fee income products such as the Platinum or Gold Plan Motor Clubs as well as OwnerGUARD GAP insurance, and exciting new products such as PaySmart and iTap for financing needs and F&I presentations. Visit www.triumphconsulting.net/ products or call 1-800-875-3137 for more information. NIADA Certified As a FIADA and NIADA member, you have access to participate in the NIADA Certified Pre-Owned (CPO) program. The benefits of this program include access to a national partner with the resources focused on creating additional sales and increasing profits for your dealership, being a part of a large group when dealing with production and claims and staying ahead of the non-FIADA dealers who are not able to offer a CPO program to their customers. For more information about NIADA Certified, visit www.niadacertified.com.
To find out more about these FIADA member programs, or other benefits of your membership, please visit the website at www.FIADA.com or call the office at (800) 237-0448. www.fiada.com
Don’t miss this opportunity to network with your peers and learn about the latest issues impacting independent dealers. The meeting will be held at the Embassy Suites Palm Beach Gardens from 10am – 2pm. The town hall meeting is absolutely free to attend and lunch will be provided courtesy of our friends at Auto Data Direct. We have a great schedule lined up with seminars on key topics including: 10:00am – 11:30am Legal Q&A / Latest Legal Issues Affecting Independent Dealers Rob Sickles, FIADA General Counsel 11:30am – 12:00pm Impact of the Affordable Care Act Tony Caramato, Florida Design Insurance 12:00pm – 1:00pm Lunch & Vendor Expo Sponsored by Auto Data Direct Sponsors & Exhibitors: Alliance Inspection Management, Auto Data Direct, Manheim Auto Auctions, MarkOne Financial and Wayne Reaves Software 1:00pm – 2:00pm Pre-Owned: Online Buying Opportunities & Strategies Kraig Quisenberry, Dealer, Auction Consultant & Auto Re-Marketing Dealer IQ columnist
9 — Independent Dealer — April 2013 www.fiada.com
April 2013 — Independent Dealer — 9
Ace Motors Inc St. Petersburg, Florida Clyde Jackson Walters Sponsor: Lisette Mariner Auto Trakk Montoursville, Pennsylvania George Stauffer Sponsor: Sarah Langley Benito Vera Miami, Florida Benito Vera Sponsor: FIADA web Benta Auto Sales LLC Fotha, Florida Frank Bailey Sponsor: Kevin/Nicole Bill Reed Weirsdale, Florida Bill Reed Sponsor: Kevin Scott BMC LLC dba Prestige Auto Sales Saint Petersburg, Florida Ray Bunnell Sponsor: Lisette Mariner Citywide Automart.com Winter Park, Florida Pattie Cooper Sponsor: Amelia Tillman Damon Patton Hudson, Florida Damon Patton Sponsor: Terry Myers
MARCH 2013 dELRAY EXOTIC MOTORS Delray Beach, Florida Dan Lounsbury Deidre Cantwell Jacksonville, Florida Deirdre Cantwell Sponsor: Terry Myers Easy Car Credit USA, Inc. Jacksonville,Florida Skip Estes Sponsor: Sarah Langley Edward J. Brennan Tampa, Florida Edward J. Brennan Sponsor: FIADA web Good Deal Auto Sale, Inc. Naples, Florida Josue Alusma Sponsor: Kevin Scott Grace Izuierdo Tampa, Florida Grace Izquierdo Sponsor: Terry Myers LBF Wheels LLC Mastic Beach, New York Larry Freedman Sponsor: Terry Myers Michal Moldrik Pomona Park, Florida Michael Moldrik Sponsor: Terry Myers
orderacar.com Tampa, Florida Richard Clark Sponsor: FIADA Web Parkway Motors, inc Panama City, Florida Ronald W. Compton Sponsor: STATE OF FLORIDA Samra Inc Advance Import Tampa, Florida Sam Sameni Santa Fe Power Sports Alachua, Florida Susan Luttrell-Waitcus Sponsor: dmv South Florida Car Buyers Fort Lauderdale, Florida Ariel Chmielarz Sponsor: Dealer Center The Car Connection West Palm Bay, Florida Todd Lewis Sponsor: Kevin Scott Wheels & Motors Destin, Florida Anna Covington Sponsor: Amelia Tillman Wildwood Auto Mart Wildwood, Florida Dennis Johnson Sponsor: Kevin Scott
20+ Year Members Ed Cox Motor Company, Inc. Le Bo Auto Brokers Roney Auto Sales
Ft. Walton Beach, FL Cape Coral, FL Plant City, FL
10+ Year Members Bargain Auto Sales of Lakeland, Inc. Beach Boulevard Automotive Bubba Hill Auto Plaza, Inc. Donny Mills Auto Sales, Inc. Ed Tillman Auto Sales Global Wholesale Motor Company GWC Warranty Corporation of Florida Southeast Fleet Auto Sales, Inc. Taylor Morgan, Inc. dba Network Auto Sales The Truck Center, Inc. Tropical Auto Sales
Lakeland, FL Jacksonville, FL Panama City, FL Largo, FL Jacksonville, FL Fort Myers, FL Wilkes Barre, PA Clearwater, FL Jacksonville, FL Ft. Walton Beach, FL North Palm Beach, FL
Under 10 Year Members A & B A/S of Jacksonville, Inc. ASC Warranty, Inc. Auto Mobility Sales Brown’s Auto Sales Bucks Down Racing Bud Lawrence Used Cars Cochran Motorsports, Inc. Damagedcars.com dba College Auto Sales, Inc. Dealer Consulting Services East Coast Insurors, Inc. EJ’s Quality Auto Sales Euro Experts, Inc. E-Z Pay Cars LLC Gen-X Motors Happy Auto Mart Holdings of South Florida, Inc. dba Automac 2 Insurance Auto Auction Jeanie’s Automotive Inc. dba Jeanie’s Auto Sales Jimmie’s Auto Sales LB Auto Trading Mile Stretch Auto Sales Motorcars of Distinction Orange Sports Center, Inc. Prime Auto Broker Snider’s Truck & Auto Sales Southern Country Auto Sales Sunrise Financial Associates Taylor Auto Sales, Inc.
Chipley, FL Mountain Home, AK Lake Worth, FL Leesburg, FL Oldsmar, FL Deland, FL Hastings, FL Miami, FL Miami, FL Ormond Beach, FL Jacksonville, FL Royal Palm Beach, FL Stuart, FL Middleburg, FL Tampa, FL Jacksonville, FL Orlando, FL Clearwater, FL Madison, FL Orlando, FL Holiday, FL Riviera Beach, FL Orlando, FL Jacksonville, FL Titusvile, FL Gainesvile, FL Orlando, FL Tallahassee, FL
Adesa A/A of Tampa Tampa, Florida Curtis Farris Sponsor: Amelia Tillman
Auto Place, Inc. Miami, Florida Amelia Ruiz Sponsor: Sarah Langley
Big Truck Rental LLC Tampa, Florida Scott Dols Sponsor: Web
Murdock Auto Sales Port Charlotte, Florida David Coffee Sponsor: Wayne Reaves
O’Connor Automotive, Inc Plant City, Florida William P. O’Connor Sponsor: Nicole Lee
Associated Automotive Enterprises, Inc. Bradenton, Florida William James Mullis Sponsor: Previous Member
B & T Enterprise Services, Inc dba 5 Star Auto Sales Brooksville, Florida Bruce Peach Sponsor: Sarah Langley
Julians Auto Showcase New Port Richey, Florida Eric Julian Sponsor: Sarah Langley
Murphy’s Auto Sales Inc Lakeland, Florida Ray Duffy Sponsor: Amelia Tillman
Shade Tree Auto Repair Bartow, Florida Anthony P. Pitman Sponsor: Amelia Tillman
10 — Independent Dealer — April 2013
LO G G E D O N
Sub-Accounts Add Value to Your Membership
he online benefits of FIADA membership do not stop with just the dealer principle or the president of the company. With the new sub-account feature at FIADA your staff members and employees can sign up to receive important email alerts and advisories from FIADA and login to access the FIADA website as a separate account for enhanced features including individual continuing eduction courses. Staff sub-accounts can be set up three ways: by email invitation, direct link and selecting the “create new sub-account” link from the main account’s profile page. Here is a look at how to do it.
Creating Sub-Accounts 1. Log-in to www.FIADA.com and click on Manage Profile from the My Profile box.
2. Find the Sub-accounts link (below Edit Bio) on the Manage Profile home page.
4. Copy the direct link and paste it into an email to the new sub-account member or directly into a browser window. The sign-up link expires in 30 days.
5. Invite the new sub-account member by typing their email address(es) in the box and clicking the Send Invite button. You can view and edit options of your sub-accounts from this screen as well.
If you need help using www.FIADA.com, please call the FIADA office at (800) 237-0448 for online assistance.
2 3 3. Find how many sub-accounts you have available to create.
You can choose to activate all available seats, or create sub-accounts individually. The website will automatically sign you out when using this method.
12 — Independent Dealer — April 2013
ADESA Dealer Connect posts inventory on your lot to ADESA.com. Your vehicles get national exposure to franchise and independent dealers with no retail downtime or transportation costs. Double your chances to move your inventory today. ADESA Jacksonville
904-764-1004 Sale day: Thursday
352-351-5100 Sale day: Friday
941-756-8478 Sale day: Friday
813-620-3600 Sale day: Monday
© 2013 ADESA, INC.
Contact your nearest ADESA location:
April 2013 — Independent Dealer — 13
L E G A L U P D AT E
e how th ails o t s a r e det e clea h r t a d s n e a t n tu rida Sta e repossessio o l F ! e c th differen happen after a e k a m ll it does bout what wi . , n o i s s , Esq a se s d o e yatt p fi i e t H r o n le. W. After a ould be ssessed vehic teven h s S r y e B custom e of the repo l a of the s
his article is directed to Buy Here Pay Here dealers and automobile finance companies. A disturbing trend has emerged dealing with the notice that dealers and automobile finance companies send out to customers informing them of their rights after repossession. Florida Statute Section 679.614 controls the notice to customers before disposition of collateral. Overall, Chapter 679 covers secured transactions. The key to the notification form described in Section 679.614 is that it applies to consumergoods transactions. A consumergoods transaction means “a sale, lease, assignment, award by chance, or other disposition of an item of goods, a consumer service, or intangible to an individual for purposes that are primarily personal, family, or household…” An automobile sales transaction has been clearly held to be a consumer-goods transaction. If the collateral is a consumer good, it must be sold at a public sale. The issue of a deficiency remaining after the automobile is repossessed and sold serves as the justification 14 — Independent Dealer — April 2013
for the proper notice. The goal of the law is to recover as much money as possible for the consumer so no deficiency exists and even, in some cases, a refund of monies are due. All notifications must include a description of the debtor and secured party; the description of the automobile; method of intended disposition; whether customer is entitled to an accounting and charges associated with an accounting; and the time and place of a public disposition. A private sale occurs when collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market. A “recognized market” has been defined to include markets dealing in widely held stock and commodity exchanges which are regulated in a substantial way. The definition does not apply in automobile sales transactions. The unfortunate part of the statute seems to suggest that a dealer or automobile finance company can dispose of the automobile at either a private or public sale. This is simply not true. Florida Statute Section 679.614(3)
gives a sample of the notification needed to properly advise the customer of their rights after repossession (see below). The NOTIFICATION OF DISPOSITION OF COLLATERAL To: (Name of debtor, obligor, or other person to whom the notification is sent) From: (Name, address, and telephone number of secured party)
Name of Debtor(s): (Include only if debtor(s) are not an addressee)
[For a public disposition:] We will sell [or lease or license, as applicable] the (describe collateral) to the highest qualified bidder in pubic as follows: Day and Date: Time: Place: [For a private disposition:] We will sell [or lease or license, as applicable] the (describe collateral) privately sometime after (day and date). You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell [or lease or license, as applicable] for a charge of $ . You may request an accounting by calling us at (telephone number). —Florida Statutes, Section 679.614(3) www.fiada.com
deficiency after repossession. The law presupposes that the secured creditor will pursue a deficiency requiring commercially reasonable measures. Advertising the public sale in a newspaper has been held to satisfy a commercially reasonable requirement for advertising.
The key notification in a public sale is the date, time and place of the sale. The automobile cannot be sold at an automobile auction and satisfy the “public” requirement of the sale. The appellate courts statutes have ruled that automobile auctions are not recognized markets under the statute. See Florida Statute Section 679.504. Every aspect of the disposition including method, place and terms must be in a commercially reasonable manner. This commercially reasonable requirement allows the secured creditor to collect a
The danger in using language alerting a customer that his or her vehicle will be disposed of at private sale are the damages the customer will be entitled to. These damages are statutory. You either comply with the statute or you don’t. Damages for any violation of Chapter 679 are the finance charge plus 10% of the amount financed. The real damages problem is when the action is certified as a class action. All of the customers that you repossessed automobiles from will have a statutory claim. These claims have added up to hundreds of thousands of dollars
against the dealer or automobile finance company. The simple fact is that your notification form must advise the customer about what is to occur after repossession. It must advise the customer of a public sale and give the date, time and place of the sale. It must invite the customer to bring bidders to the sale. Following the language contained in Florida Statute Section 679.514(3) will protect you from any actions for improper notice. You should consult with your attorney to insure that you are using the proper form. Steven Hyatt, PA with the Law Offices of Steven W. Hyatt, PA can be reached at (954) 463-3779 or stevenwhyattpa@ gmail.com
difference between the private or public sale notifications is information about the date, time and place of the public sale and that the customer can bring bidders to the sale. The rest of the notification form is identical regarding additional rights the customer has under the statute.
15 — Independent Dealer — March 2013
Top 5 Sales Myths
From cold calling to Friday afternoon prospecting, the top five sales misconceptions are put to the test. By JOHN CHAPIN
s someone who has been in sales for over 24 years, and now as a sales trainer, speaker and coach, I continually hear debate over the following five sales myths. In this article I will expose and throw light on these top sales fairy tales.
Sales Myth #1: Sales is NOT a numbers game. The more people you talk to, the more business you will do, even a blind squirrel finds a nut if it keeps looking. Granted, you want quality behind the numbers and, depending upon your business, it may be helpful to do some research on the person you’re calling before you call. That said, in order to be successful in sales you need lots of good solid relationships and the only way to get those relationships is to go out and talk to lots of people. The bottom line is: if you talk to enough people during the day, you will eventually run into someone who says, “I need what you have” or “I know someone who needs what you have.” Know the number of people you need to talk to during the day in order to be successful and then go out and talk to that many people and more. 16 — Independent Dealer — April 2013
Sales Myth #2: Cold calling is a waste of time and doesn’t work. In over 24+ years I’ve built four different businesses primarily through cold calling. Cold calling is simply the fastest, most pro-active way to get leads. The reality is: if you are new in business or struggling, it’s more than likely you don’t have enough leads and you’re not getting enough through networking, referrals, and other sources... Time to cold call. Yes, cold calling is the most difficult, most time consuming task you can do, yet unless you have millions of dollars to spend on marketing campaigns, cold calling yields results like no other prospecting method. Also, cold calling builds character and keeps you grounded. The reality is: if you can cold call effectively and with confidence, nothing will stop you, you will be able to do any other sales task you need to do in order to be successful. That is why I recommend you never stop cold calling even when you are extremely successful. Granted, you may only make one or two cold calls a week at that point, but this will keep you sharp and on your toes.
Sales Myth #3: Friday afternoon is a bad time to call on prospects and clients. Most salespeople believe that prospects either take Friday afternoons off or, if they do work, that they don’t want to be bothered by salespeople at this time. This is simply not true. Not only do most prospects work on Friday afternoons, they are also in a better mood at this time than at any other time during the week. As a result, Friday afternoon is a great time to prospect and close business. In addition, because most salespeople don’t make calls at this time, you will stand out as someone who is dedicated and hard-working. The bottom line is: Friday afternoon is one of the best times to prospect and close business. Sales Myth #4: A good salesperson can sell ice to Eskimos. The premise here is that a good salesperson could sell someone on something that is so obviously not needed. Nothing could be further from the truth. Top salespeople, over the long haul, don’t take advantage of people by selling them something they don’t need. Top salespeople make it all about the other person and they always do what is best for them, even to the point of sending someone to the competition on rare occasions. That said, are their some “temporary” sales successes who take advantage of people and make lots of sales by selling them items they don’t need? Yes. But in the long-term those people get caught, burn out, find that their personal lives in shambles, or a combination of all of these. The bottom line is: you can’t take advantage of people for long and live a happy, fulfilling, successful life. The top salespeople are honest, have integrity, and focus completely on the other person. They only make the sale if it is a win-win.
opposed to running into that 1% of unreasonable people, you’ll find the number closer to 50%. John Chapin’s specialty is helping salespeople and sales teams double
sales in 12 months. He is an awardwinning sales speaker, trainer and coach, a number one sales rep in three industries. Sign up for John’s free monthly sales newsletter online at www.completeselling.com or email him at firstname.lastname@example.org
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Sales Myth #5: The customer ISN’T always right. Salespeople I’ve seen with this attitude seem to have a chip on their shoulder. It’s an attitude of arrogance in which they seem to believe the customer should be privileged to be doing business with them as opposed to the other way around. If you have a mindset that the customer isn’t always right, chances are great that you will not go above and beyond, you will not do more than expected, and you will not deliver top-notch, second-to-none follow-up and service after the sale. If you do not do everything within your power to ensure the customer has a great experience, odds are they will have a mediocre experience at best and you will never stand out. That said, is the customer always right? No, but you’d better walk into that conversation convinced they are, or they will pick up on your suspicion and indifference quickly and as
• Higher Advance than Factoring
BACK TO THE BASICS
The Never-Ending, Burning Question: How to Tax Sales that End Up in Another State? Sales tax rules, especially when it concerns an out-of-state sale, can be too hot to handle. Here are some guidelines and reminders you can use to keep from getting burned. By TERRY MYERS
ach year the dealership needs to visit the Department of Revenue’s Website and copy, save and/or print the current SALES TAX RATES BY STATE. The current version is found at: http://dor. myflorida.com/dor/ Scan this code with your smartphone tips/tip13a01-02. html. Usually, this is or mobile device available in March of to access the state sales tax rates. each year. Anytime the customer TAKES POSSESSION OR CONTROL of the sold vehicle WITHIN Florida, sales tax is due. What would be an example of possession or control? The customer drives the vehicle off the lot (the rubber meets the road);. the customer drags the vehicle off the lot by chain, trailer, etc; the customer authorizes someone, other than a Commercial Carrier—say Aunt Edna or Uncle Joe—to act as their agent. Sales tax is NOT DUE when the vehicle is committed to the export process by way of Commercial Carrier or delivered by the dealer
18 — Independent Dealer — April 2013
and appropriate supporting documentation is provided. Our neighbor to the North, Georgia, just lowered their sales tax to 0% from 4%. Should a Georgia purchaser take possession/control from a Florida dealer within Florida, SALES TAX IS DUE. It is due at Georgia’s sales tax rate, which, again, is 0%. Steps the dealer must take include: 1. 2. 3.
Complete the DR-123 Affidavit. Notarize the DR-123 Affidavit. Retain proof of the DR-123 Notarized Affidavit.
In the event of an audit with the Department of Revenue the dealer must provide the supporting documentation (DR-123, DR-15R, etc.) necessary to show the proper sales tax amount was collected, reported and remitted. The DR-123 keeps the customer from having to pay sales tax again in his/her home state. Note: there is currently a WAM factor to consider. The states of West Virginia, Arkansas and Mississippi charge sales tax BUT do not give credit for taxes paid in Florida. We recognize them; they do not recognize us.
The DR-123 is the proof the dealer HAD A RIGHT to charge that state’s rate under that circumstance. Note: Should the dealer charge Georgia’s rate of 0%, or New York’s rate of 4%, or California’s rate at 6% (California is currently 8.25% state sales tax. The dealer cannot charge above 6%), and the dealer NOT be able to produce proof of a properly executed DR-123, the dealer would be responsible to pay and any difference between 0% and 6%, plus penalties and interest. FYI: Georgia replaced sales tax with a Title Ad Valorem Tax. It is 6 ½% of the value of the vehicle being titled. The customer pays this when titling the vehicle in their county of residence. Reminder 1: Out of country sales, when possession/control is taken inside Florida, are taxed at 6%. Reminder 2: There is never a Florida County tax on any non-Florida sale. Reminder 3: Florida does not mandate the dealer to register non-Florida transactions in another state or country. It is however, a requirement that the Florida dealer obtain Affidavit HSMV 84061 from the non-Florida customer. Reminder 4: Place an annual reminder in your electronic calendar for March, [UPDATE SALES TAX RATES BY STATE]. Sales tax is challenging to all who must comply. Staying connected to the FIADA and the DOR is the sign of a true professional. It is also a great way to not get burned! Terry Myers is an instructor for the FIADA Dealer Training School and owner of Florida Auto Dealer School. If you have technical questions or concerns about compliance issues for your dealership, please call the FIADA office at (800) 237-0448. www.fiada.com
The rules are easy: when a new member signs up with your name as sponsor on their application, you will receive $50.00. In addition, you are eligible for membership recruitment awards and recognition from both the FIADA and NIADA. This is a valuable opportunity to reach dealers who may not have heard of FIADA before. By meeting dealers who are nearby, at the auction or you cross paths with in your daily routine, you have an opportunity to share FIADA benefits with these prospective FIADA members as well as relay your personal experience with the Association. FIADA is ready to coach you to victory. To get your playbook and sign up to participate so you can receive your $50 bonus, please go online and sign up so we know you are an official member of our team. Become an MVP today!
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April 2013 — Independent Dealer — 19
Time Is Running Out to get your Continuing Education Credits! FIADA’s Online CE Course options can help you complete your requirements before the April 30 deadline and is free to FIADA members. All Florida dealers must complete eight hours of continuing education (CE) credits before April 30. Throughout the year, FIADA has offered several options for members to receive their credits and stay up-to-date on the latest industry news and requirements. If you have not completed a CE course, the good news is it is not too late, yet! The two best ways to get those last minute credits are through FIADA’s online Continuing Education Class and/or the Online Title & Registration class. The Continuing Education Class is a combination of PDF, web-based reading and a multiple choice test. Currently, the Continuing Education Class is free for FIADA members and $39.95 for non-members. Also available online is the Title & Registration course which is taught through a recorded webinar video and multiple choice test. The cost for the Title & Registration course is $99 for members and $149 for non-members. Registration for these online courses is easy for members. Just “Sign in” at FIADA.com and log in to your account. Click on the “Dealer Training School” at the top menu screen and choose “Continuing Education (CE)” from the drop-down menu then “Online (CE).” Click “Register for the online continuing education course” and then register for the event. Select “Online Continuing Education Course,” fill out your information, and click “Save & Proceed to Checkout.” When asked if you want to proceed to checkout and finalize the event registration, choose “yes.” Finalize the process by filling out all required fields and select “Proceed to Confirmation.” If a pop‐up asks you to validate your address, you may select the selection and choose “Use Selected” or leave the address as you typed it and click “Submit Anyway.” Click “Complete Order.” After the registration is complete, you will receive a confirmation email that will provide a direct link where you will be able to access your online course. When you are ready to take the course, click on the link from your confirmation email and log in with your FIADA.com username and password. Under the “On Demand Courses” choose the Continuing Education Course option. You will be provided with PDF materials for three topics including DMV Issues, Legislative Issues and General Industry Issues. Read the materials provided and when you feel prepared to take the completion test, click “Submit Credit” at the top of the screen. At this screen, you will be filling out the information that will be printed on your completion certificate and submitted to the DMV. You must get 100% correct on your test to print your certificate. If you have not received 100%, you will be allowed to take the test again until you do. After you have passed the test, you can retrieve your certificate by logging in to the same Continuing Education Course screen, clicking “submit credit” again and then click on the link that says “Florida Department of Highway Safety Certificate.”
your membership online at call the FIADA office at If at any time in theGet registration process or coursetools you need help, just (800) 237-0448 for assistance. 20 — Independent Dealer — April 2013
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March 2013 — Independent Dealer — 21
he FIADA Executive Committee is always a unique mix of dealers with different backgrounds, business models, leadership styles and experience. Even though their demographics may differ, they all have at least one thing in common: bringing value to FIADA members. Get to know this group better with a few questions and answers into their philosophies, outlooks and vision for the future.
Meet the Secretary: David Cox, CMD, Cox Motors What is your history with the auto business? I got into the car business in 2000 in Tampa with a buy-here, pay-here business. In 2011, I opened Cox Motors here in Lakeland as a buyhere, pay here and lease-here, payhere business. I have been able to serve FIADA in different offices on the Executive Committee including past president, regional vice president and now secretary. I have enjoyed holding these offices as well as sitting on various committees and helping FIADA move forward.
real advantage over our non-member counterparts.
Can you share your best advice for making it in this business? Business is always changing and one way to stay ahead of the changes is with FIADA. The top-rate education FIADA gives dealers helps us learn
When did you become a FIADA member, and why did you join? When I attended the Dealer Training School course in 2000 as a requirement to get my dealer’s license, I knew that I had to become
What is the best part about being an independent dealer? I like being able to provide people with reliable transportation to get back and forth to work. Right now our current economic situation has caused a lot of people to have a few hiccups on their credit reports, and I think as buy-here, pay-here and leasehere, pay-here dealers we are helping them rebuild and get back to where they should be.
The ability to stay ahead of the curve gives FIADA members a real advantage over our non-member counterparts. what is going on in our industry before it hits the marketplace, giving us enough time to prepare and have a plan ready. The ability to stay ahead of the curve gives FIADA members a 22 — Independent Dealer — April 2013
a member of the FIADA. I even went to the Annual Convention in 2000, before I became a dealer, because I knew it was a perfect opportunity to really learn from some of the leaders
David Cox, has also served as FIADA President and Regional Vice President. He is a NIADA Certified Master Dealer (CMD). in the industry who were and are members of the Association. What are some benefits to being an FIADA member? FIADA keeps us on the leading edge of everything that is happening in Tallahassee and the rest of the country. We get to know what is going to happen, before it happens. As a member of the Association, you really do have your fingers on the pulse of the industry. One of the unexpected benefits of FIADA membership is the many friendships you develop working together for the common cause. I have so many friends who can help if I ever need them. When you become an FIADA member you don’t see the other members less as competition and more as peers. I happened to be in the Tax Collector’s Office in Polk County recently and while I was www.fiada.com
Do you feel that being a member of FIADA has contributed to your success? If so, how? Every month I am saving hundreds of dollars by using the FIADA approved vendors and participating in the money-saving FIADA/NIADA programs. For instance, through my NIADA membership I have access to a credit card processing company that can give me a much better swipe rate then my local bank or other outside vendors. I use FedEx, and save a good amount of money on shipping, because of the great discount we get as FIADA/NIADA members. Those benefits are such a good return on investment that the savings more than pay for my dues every year. What leadership positions have you held with FIADA and how have they prepared you? I have been a past president and a regional vice president. I keep volunteering to be on the Board of Directors and the Executive Committee because I feel it is very important to give back to the industry that I make my living in. What are your goals for the Association for the coming year? There are some things working their way through the Legislature in Tallahassee that we will be keeping an eye on. It is always the responsibility of FIADA to try to prevent legislation that will hurt our dealerships, or any dealer. I would also like to see us focus on membership because more members and numbers of dealers means a larger collective voice in Tallahassee. We really need to drive home the message to our fellow dealers what a great value our Association has. www.fiada.com
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standing in line I bumped into George Hickey. We talked for a few minutes and had a good time visiting as we waited in line; that’s a connection that would probably not have happened if it weren’t for FIADA.
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Support the FIADA PAC Fund! The FIADA Political Action Committee is looking out for you in Tallahassee. You can now make a contribution online at www.FIADA.com. April 2013 — Independent Dealer — 23
A Look At Current Legal Issues BY Thomas B. Hudson and Nicole Frush Munro, Hudson Cook, LLC
ere is a monthly collection of selected legislative and enforcement highlights, and a recap of some of the many auto sale and financing lawsuits Hudson Cook, LLC follows each month. (Note that this column does not offer legal advice. You should consult your dealership lawyer with any legal questions.) Federal Law On February 26, the Federal Trade Commission released a report of the consumer complaints it received in 2012, with identity theft topping the list. The report gives national data and a state-by-state accounting of top complaint categories and a listing of the metropolitan areas that generated the most complaints. Complaints related to “debt collection” and “banks and lenders” were also significant. Only four percent of the complaints received were “auto-related” complaints, a category that includes repairs, service and sales, as well as financing. The FTC enters complaints into the Consumer Sentinel Network, a secure online database available to more than 2,000 civil and criminal law enforcement agencies. On February 11, the FTC released a study on credit report accuracy. The FTC was directed by Congress to conduct such studies every two years, starting in 2004, and continuing until a final report is issued in 2014. Participants in the study were consumers selected to match the demographic and credit score information of the general public, and they were encouraged to dispute errors that could affect their credit standing. After completing the dispute process, participants were provided with new credit reports and scores, and the new reports were compared to the original reports. The study found that (1) one in four consumers identified errors in their credit reports that might affect their credit scores; (2) one in five consumers had an error on at least one of their three credit reports that was corrected by a credit reporting agency after it was disputed; (3) four out of five consumers who filed disputes experienced some modification of their credit reports; (4) slightly more than one in 10 consumers saw a change in their credit scores after the consumer reporting agencies modified errors on their credit report; and (5) approximately one in 20 consumers had a maximum score change of more than 25 points, and only one in 250 consumers had a maximum score change of more than 100 points. On February 8, the FTC extended the deadline for comments on potential revisions to the Used Car Buyers Guide, required by the Used Car Rule, from February 11, 2013, until March
24 — Independent Dealer — April 2013
13, 2013. The Used Car Rule, formally known as the Used Motor Vehicle Trade Regulation Rule, has been in effect since 1985 and requires car dealers to display a window sticker, known as a Buyers Guide, on the used cars they offer for sale. In December 2012, the FTC announced that it was seeking public comments on proposed changes to the Used Car Buyers Guide as part of its systematic review of all of the agency’s rules and guides, but many interested parties requested additional time. Note that as we previously reported in this column, on December 4, 2012, the FTC issued a final rule that made technical corrections and revised the Spanish translation of the Buyers Guide. LITIGATION Cars Were Property of Buyers’ Bankruptcy Estates Where Buyers Took Possession of Cars and No Conditions Subsequent to Sale Occurred Pre-Petition: Two individuals bought cars from a dealership. After the individuals filed for bankruptcy, the dealership moved for relief from the automatic stay, arguing that the cars were not property of the debtors’ bankruptcy estates. The dealership argued that the retail installment sales contracts were conditioned on a third party agreeing to purchase the contracts, but the contracts were never purchased because the debtors had failed to make certain initial payments. The federal bankruptcy court rejected the dealership’s argument, explaining that, under Section 2-401 of the Uniform Commercial Code, a seller cannot retain title to goods after the goods are delivered to the buyer. Because the debtors took possession of the cars, they had title to the cars, and the dealership had only a security interest. The court also found persuasive that the dealership had submitted documents for its lien to be noted on the titles of the cars that were in the debtors’ possession. The bankruptcy court rejected the dealership’s argument that the sale contracts contained conditions precedent to the sale. Instead, the court explained that the conditions regarding purchase by a third-party finance source were conditions subsequent, and there was no evidence that these conditions had occurred before the debtors declared bankruptcy. As a result, the conditions did not terminate the contracts. In re Jones, 2013 Bankr. LEXIS 198 (Bankr. E.D. Tenn. January 17, 2013). Creditor Need Not Adhere to “Safe Harbor” Form to Fulfill Statutory Pre-Sale Notice Content Requirement: After car buyers defaulted on their car loan from a credit union, the credit union repossessed and sold the car, and sued to recover the deficiency. The buyers moved to dismiss, arguing that the credit union’s pre-sale notice did not comply with the www.fiada.com
statutory content requirements of the Missouri version of Article 9 of the Uniform Commercial Code. The trial court granted the motion. While Mo. Rev. Stat. § 400.9-614 states that no particular phrasing is required for the pre-sale notice, the statute provides a “safe harbor” form that provides for all the required information. The credit union did not use the “safe harbor” form, and the trial court found that the credit union did not meet the requirements of the Missouri statute because it did not properly describe the co-debtors in each debtors’ respective notice, specify which of two phone numbers included in the notice would provide the debtor with information regarding the amount to be repaid to redeem the vehicle or specify that the phone numbers and address listed could be used to discover additional information regarding the disposition of the vehicle or the obligation due. The Court of Appeals of Missouri reversed and remanded the case, finding that while the “safe harbor” form includes a description of co-debtors, such description is not required under the law. The appellate court noted that the statute does not require the creditor to inform one co-debtor that another co-debtor has also received the presale notice. Similarly, while the “safe harbor” form specifies that a phone number and a mailing address could be used to attain certain information, the appellate court found that the statute only requires that the number and address be provided. Accordingly, the appellate court concluded that the credit union fulfilled the statutory pre-sale notice content requirements. First Community Credit Union v. Levison, 2013 Mo. App. LEXIS 113 (Mo. App. January 29, 2013). Assignee of RISC Not “Debt Collector” Where Collection Activities Are Ancillary to Primary Business Purpose of Taking Assignment of RISCs from Dealers: A car buyer sued a dealer and the assignee of his retail installment sales contract for violating the Fair Debt Collection Practices Act. The assignee moved to dismiss, arguing that it was not a “debt collector” under the FDCPA. The buyer argued that the assignee was a debt collector for purposes of Section 1692f(6) of the FDCPA because its principal business was the enforcement of security interests. Section 1692a(6) defines “debt collector” to include “any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the enforcement of security interests.” The court concluded that the assignee’s principal business was not the enforcement of security interests, but rather taking assignment of RISCs from car dealers, and that its debt collection activities were ancillary to that primary business purpose. The court noted that the buyer was not in default when the assignment of the RISC occurred, and the buyer did not allege that the RISC was assigned “solely for the purpose of facilitating collection on the original creditor’s behalf.” Accordingly, the court concluded that the assignee was not a “debt collector” under the FDCPA and granted its motion to dismiss. Tu v. Camino Real Chevrolet, 2013 U.S. Dist. LEXIS 3592 (C.D. Cal. January 9, 2013).
The Answer Book for Finance and Insurance Professionals
360 things to know about auto dealer finance
“This new book may be called a ‘guide’ but it’s more likely a ‘bible’ for every dealer, F & I manager, and trainer in the country. A timely and invaluable reference that covers all legal and regulatory touch-points in a dealership’s purchase transaction by a consumer. AFIP’s endorsement confirms that the stable of authors know the ‘rights’ to follow and the ‘wrongs’ to avoid. It is on the recommended list by F&I Magazine.”
Car dealers, boat dealers, RV dealers–all businesses that sell personal property on credit–are subject to a bewildering thicket of federal and state laws and regulations. Responsibility for compliance usually falls on the general manager of the dealership or the manager of the “finance and insurance”, or “F&I” department. Sometimes the person responsible for sales and credit compliance has received some training dealing with these legal issues. But sometimes, the person shoved into the deep end of the pool as the compliance officer doesn’t have a clue what he or she is responsible for, and doesn’t know where to start.
Ed Bobit, Publisher Bobit Business Media
“Ignorance of the law is no excuse. And given the penalties for violating even one of the many legal obligations facing today’s auto dealer, including stiff fines and even imprisonment, a dealer must be well informed to make sound business decisions. There has never been a reference book for auto dealers and their professional advisors ... until now. This book is extremely well written and easy to read. It should be on the desk of every car dealer. It’s on mine.” Adam Goldfein, Host of the Nationally Syndicated Talk Show AutoScoop—The Inside to Car Buying
“If a dealer had to decide between renting an inflatable gorilla for his dealership’s rooftop or purchasing this book for every single sales manager and office manager in the dealership, I hope the dealer would make the business decision that could save him or her thousands of dollars in unnecessary legal fees.... Put the gorilla on hold and insist that every manager read this book and keep it on their desks. I’m making it required reading for every Northwood University Automotive Marketing major.”
Joseph J. Lescota, Chairman Automotive Marketing Department Northwood University
“The F&I Legal Desk Book is the official course text for the AFIP Certification Program. Hudson Cook, LLP, is now the course authority for the applicable state and federal regulations. I can count on one hand the law firms in the United States who could have met our curriculum requirements. The F&I Legal Desk Book will dramatically reduce the time required for candidates to prepare for the 200-question final exam. Hudson Cook, LLP, has made a major contribution to AFIP’s efforts to raise the bar for regulatory compliance and ethical conduct within the F&I trade.”
David N. Robertson Executive Director Association of Finance and Insurance Professionals
“A unique exploration of the Do’s and Don’ts for dealers without the legal maze.”
Charles F. Arrambide Assistant Vice-President Universal Underwriters Group
F&I Legal Desk Book
F&I Legal Desk Book
Michael A. Benoit is a partner with Hudson Cook, LLP and the author of “A Dealer’s Guide to Red Flags Compliance,” a comprehensive resource tool to help auto dealers create and maintain their internal Identity Theft Prevention Programs. His practice focuses on the practical application of a wide range of consumer financial services and dealer laws and regulations to the operational realities of auto dealers, finance companies, technology providers and financial services vendors. Mr. Benoit is a member of the DealerTrack Compliance Council, the National Association of Dealer Counsel, and is a regular speaker at industry events, including the NADA Annual Conference, National Vehicle Leasing Association Annual Conference, and numerous other national programs and private client-funded engagements. He is frequent contributor to a number of trade publications and journals, including Auto Finance News and F&I Management and Technology magazine, and was the principal author of the NADA’s Management Guide to Information Safeguarding. Mr. Benoit can be reached at email@example.com.
Tom (firstname.lastname@example.org) and Nikki (nmunro@hudco. com) are partners in the law firm of Hudson Cook, LLC. For information, call 410-865-5411, 410-865-5430, or visit www. counselorlibrary.com. Copyright CounselorLibrary.com 2012, all rights reserved. Single publication rights only, to the Association. (10/12) HC# 4849-1314-9969.
The Answer Book for Finance and Insurance Professionals
Thomas B. Hudson has practiced consumer vehicle sales, finance and leasing law since 1973. Mr. Hudson chairs the law firm of Hudson Cook, LLP. He is President of CounselorLibrary.com, LLC, and is the Founder and Editor-in-Chief of CARLAW®, an Internet service that reports auto finance and lease legal developments. He has served as President of the American College of Consumer Financial Services Lawyers, and Chair of the American Bar Association Consumer Financial Services Committee’s Personal Property Finance Subcommittee. He represents the National Automotive Finance Association, Reynolds & Reynolds, auto finance companies, major banks and independent finance companies and many companies who supply services to the auto finance and lease industry. He is a frequent writer and speaker on topics relating to vehicle finance and leasing. He is also author of the book: CARLAW® ~ A Southern Attorney Delivers Humorous Practical Legal Advice on Car Sales and Financing! Mr. Hudson can be reached at email@example.com.
Statement that Repossessed Car Would be Sold at “Public/ Private Sale” Insufficient: After a car buyer defaulted on his financing contract, the lienholder repossessed the car and sent the buyer a notice stating that it had repossessed the car, setting forth the unpaid principal and interest, and stating that “the collateral will be sold at a public/private sale if the Total Amount Due” is not paid by a certain date. The car was sold at auction. The finance company sued for the deficiency balance. The buyer countersued, claiming that the finance company’s pre-sale notice failed to meet the requirements of Missouri’s version of the Uniform Commercial Code. The trial court dismissed the buyer’s claim without discussion, but the Court of Appeals of Missouri reversed and remanded the case. The issue on appeal was whether the finance company’s notice sufficiently specified the method by which it intended to dispose of the repossessed vehicle, as required by law. The appellate court found that by notifying the buyer that his car would be sold at a “public/private sale,” the finance company failed to satisfy the UCC requirement because the bank did not identify the specific method by which it intended to dispose of the car. Boulevard Bank v. Malott, 2013 Mo. App. LEXIS 128 (Mo. App. January 29, 2013).
F&I Legal Desk Book 3rd Edition
The Answer Book for Finance and Insurance Professionals
Thomas B. Hudson
and the Attorneys of Hudson Cook, LLP
Edited by Michael A. Benoit
CARLAW® F&I Legal Desk Book: 360 Things to Know About Auto Dealer Finance provides a compliance roadmap for “green pea” and seasoned compliance officers alike. Each chapter addresses a topic of crucial interest to dealerships. The topics cover the compliance waterfront, and include: ● The Truth in Lending Act and Regulation Z ● The Consumer Leasing Act and Regulation M ● The Equal Credit Opportunity Act and Regulation B ● The Fair Credit Reporting Act ● The Federal Trade Commission’s Used Car Rule ● Federal Advertising Rules ● The Magnuson-Moss Warranty Act ● Arbitration ● and more . . . Each chapter is authored by lawyers who deal with that chapter’s subject every day and in detail. The authors present their information in an easy-to-follow, Q&A format, with as little “legalese” and as much useful and practical information as possible. The goal each time is to give the reader a solid, basic working knowledge of the topic covered. For years, dealers have needed a source for comprehensive, no-nonsense information on the legal requirements they face. Now they have one that quickly will become their principal resource for credit compliance information:
Thomas B. Hudson
CARLAW ® F&I Legal Desk Book: 360 Things to Know About Auto Dealer Finance.
April 2013 — Independent Dealer — 25
Thursday, October 17, 2013
7-9pm Welcome Reception
Friday, October 18, 2013
9-9:30am Member Meeting/Elections 9:30-10:30am Legislative Workshop 10:45-11:45am General Workshop 12-1:15pm Networking Lunch 1:15-2:15pm General Workshop 2:30-3:30pm General Workshop 3:45-5pm Legal Workshop 6-9pm Exhibit Hall Opening/Family Fun Night
8-9:30am 9:30-10:30am 10:45-11:45am 12-2:30pm 2:30-3:30pm 3:45-5pm 6:30-9pm
Saturday, October 19, 2013
Breakfast with Exhibitors General Workshop General Workshop Lunch with Exhibitors General Workshop Legal Workshop Awards Banquet
Disney’s Coronado Springs Resort
Room Rate is $139 per night/plus tax. Reservations must be made by 9/17/13 to receive group rate. Space is limited. Call (888) 557-6375 to book your room.
REGISTRATION is now open for the 2013 event! Use this registration form or go online to WWW.FIADA.COM and cick on Events.
26 — Independent Dealer — April2013
2013 FIADA ANNUAL CONVENTION REGISTRATION FORM COMPANY INFORMATION Company:_____________________________________________________________________________________________________ Address:__________________________________________________ City, State, Zip:_______________________________________ Phone:____________________________________________________ Fax:_______________________________________________ E-mail:___________________________________________________ Website:____________________________________________
REGISTRATION INFORMATION FIADA MEMBER DISCOUNTED REGISTRATION RATES
EARLY BIRD REGULAR ON-SITE (2/1 - 8/31) (9/1 - 10/11) (10/12 - 10/20)
FULL ACCESS PASS Badge Name:__________________________________________________________
] $249 [
] $299 [
ADDITIONAL FULL ACCESS PASS Badge Name:__________________________________________________________
] $195 [
] $195 [
] $195 [
] $195 [
SPOUSE FULL ACCESS PASS Badge Name:__________________________________________________________
] $100 [
] $100 [
EDUCATION PASS Badge Name:__________________________________________________________
] $124 [
FULL ACCESS PASS Badge Name:__________________________________________________________
] $299 [
] $349 [
] $195 [
] $195 [
] $195 [
] $195 [
SPOUSE FULL ACCESS PASS Badge Name:__________________________________________________________
] $100 [
] $100 [
EDUCATION PASS Badge Name:__________________________________________________________
] $124 [
] $149 [
NON-MEMBER REGISTRATION RATES
NON MEMBER ADDITIONAL FULL ACCESS PASS
F_ ULL ACCESS AND SPOUSE FULL ACCESS PASSES includes all meal functions, seminars and exhibit hall access and is eligible for continuing education credit. Additional Full Access passes and Spouse pass are only available with a Full Access registration. Valid FIADA membership required for FIADA member registration rates.
PAYMENT METHOD [
] I have enclosed a check made payable to FIADA
] I will be using a credit card
Name (as it appears on card):_______________________________________ Company:_______________________________________ Credit Card Billing Address:________________________________________________________________________________________ Credit Card Number:_____________________________________________ Exp Date:_______________________________________ Authorized Signature:_________________________________________________________________ CC Security Code:_____________ CANCELLATION POLICY: If cancellations are received in writing before 5pm on Tuesday, September 17, 2013, we will refund your registration fee. If cancellation is received between 9/18/13 and 9/30/13, we will refund your registration fee less a $25 processing fee. Fees cannot be refunded for registrations cancelled after 10/1/13 or for no-shows. Photo/Video Release: By registering for the 2013 FIADA Annual Convention, I hereby grant permission to use any and all photographic imagery and video footage taken of me at this event and activities pertaining to this event, without payment or any other consideration. I understand that such materials may be published electronically or in print, or used in presentations or exhibitions.
HOTEL INFORMATION: Disneyâ€™s Coronado Springs Resort. Hotel stay is separate from convention registration. Reservations must be made BEFORE SEPTEMBER 17, 2013 to qualify for group discount of $139 per night (plus tax) For reservations call (888) 557-6375.
Mail/Fax/ONLINE registration: FIADA, 1840 Fiddler Court, Tallahassee, FL 32308 FAX 850.385.3251 www.FIADA.com
INDUSTRY NEWS FTC Updates Online Ad Rules With Focus on Mobile and Online Advertisers The Federal Trade Commission released new guidance for mobile and other online advertisers that explains how to make disclosures clear and conspicuous to avoid deception. Updating guidance known as Dot Com Disclosures, which was released in 2000, the new FTC staff guidance, .com Disclosures: How to Make Effective Disclosures in Digital Advertising, takes into account the expanding use of smartphones with small screens and the rise of social media marketing. It also contains mock ads that illustrate the updated principles. Like the original, the updated guidance emphasizes that consumer protection laws apply equally to marketers across all mediums, whether delivered on a desktop computer, a mobile device, or more traditional media such as television, radio, or print. If a disclosure is needed to prevent an online ad claim from being deceptive or unfair, it must be clear and conspicuous. Under the new guidance, this means advertisers should ensure that the disclosure is clear and conspicuous on all devices and platforms that consumers may use to view the ad. The new guidance also explains that if an advertisement without a disclosure would be deceptive or unfair, or would otherwise violate a commission rule, and the disclosure cannot be made clearly and conspicuously on a device or platform, then that device or platform should not be used. The 2000 guidance stated that to help ensure clear and conspicuous disclosures, advertisers should consider
the disclosure’s placement and proximity to the relevant ad claim, its prominence, whether audio disclosures are loud enough to be heard, and whether visual disclosures appear for long enough to be noticed. Although the 2000 guidelines defined proximity as “near, and when possible, on the same screen,” and stated that advertisers should “draw attention to” disclosures, the new guidance says disclosures should be “as close as possible” to the relevant claim. Like the original guidance, the updated Dot Com Disclosures calls on advertisers to avoid using hyperlinks for disclosures that involve product cost or certain health and safety issues. The new guidelines also call for labeling hyperlinks as specifically as possible, and they caution advertisers to consider how their hyperlinks will function on various programs and devices. The new guidance points out that advertisers using space-constrained ads, such as on some social media platforms, must still provide disclosures necessary to prevent an ad from being deceptive, and it advises marketers to avoid conveying such disclosures through pop-ups, because they are often blocked. In updating the Dot Com Disclosures to reflect changes in digital media since 2000, the FTC held three public comment periods, and hosted a daylong public workshop in May 2012.
—Source: Reprinted from Used Car News
Charleston Auto Auction Celebrates 12th Anniversary With Special Sale On Friday, March 15th, Charleston Auto Auction hosted its 12th Anniversary Sale which featured more than 1500 vehicles, 800 dealers and $50,000 in cash giveaways. To start the day, dealers were welcomed with free breakfast and live music while they viewed the day’s inventory. Dealers also had the chance to chat with those companies that participated during the previous nights “Lender/Vendor Event” as they all had booths setup in the lanes. With the country’s high demand for used vehicles, not only was there a record set for dealer attendance in the lanes, but also a record was set for online attendance with 180+ dealers signing on for the simulcast sale. At the conclusion of the day, 21 dealers were selected from a barrel that had tickets for every vehicle bought or sold over the last ten weeks. These 21 dealers each selected an envelope containing a dollar amount they would be
awarded ranging from $10,000 to $250, all the envelopes together totaled $50,000. “What a great sale! We sold a record number of vehicles (1002) and we had our best turnout ever! When you count the two early bird drawings and the money given away at the conclusion of the sale, we awarded our dealers $51,150.00 all in one day!” stated Laura Taylor, Big winners Charleston celebrate at Auto Auction the Charleston General Auto Auction Manager. Anniversary Sale
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