April 2014 issue

SINCE 1940

www.FIADA.com

April 2014

17

A Publication of the Florida Independent Automobile Dealers Association

Information and Insight for Florida Used Car Dealers

YOU’RE INVITED TO OUR FREE TOWN HALL MEETING Get the latest industry updates, questions and answers and a delicious meal, all on us.

FULTON, MO PERMIT NO. 38

PA I D PRST STD U.S. POSTAGE

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April 2014 — Independent Dealer — 1

PAID ADVERTISING

Dealer Independent

MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308

TELEPHONE (850) 385-2712 (800) 237-0448

FAX (850) 385-3251

WEBSITE www.FIADA.com EXECUTIVE COMMITTEE Dino Mercurio

President

Jim Winterick, Sr.

Senior Vice President

Christopher Leedom

Chairman of the Board Phil Risley

Secretary Paul Matton

Treasurer Lisa Compagno

Regional Vice President Frank Fuzy

Regional Vice President George Hickey

Regional Vice President Steve Marbais, CMD

Regional Vice President

Govinda Romero

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

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 Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308 The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers.

Advertising rates are available upon request.

The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.

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Contents April 2014

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 Dino Mercurio

6

Executive Director’s Message Lisette Mariner

8

Back to the Basics Terry Myers suggests taking time out to work on your business.

9

Get Your FREE CE Before its Too Late No, we’re not taking away our free CE courses, but the April 30th deadline for earning your credits is almost here. Make use of this member benefit now.

10

Member News

11

Check Out What’s Up Next in the FIADA Webinar Series

12

The Most Common Audit Issues for Independent Dealers The Florida Department of Revenue shares what they consider to be the most common tax issues affecting independent auto dealers.

16

Legislative Update A major victory as motor vehicle registration fees get a rollback.

17

There Is Such a Thing as a Free Lunch Join FIADA at the next Town Hall Meeting in Jupiter May 9 for an afternoon of important education and a free lunch!

20

The Benefits of World Class Reconditioning It may be easy to overlook the importance of properly detailing your car, but in the end, it could make an impact on your profits.

24

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

26

Eight Tips for Effective Email Communication Don’t let your sent emails end up in a spam box. Use these tips to guarantee they will be opened and replied to.

30

Industry News

April 2014 — Independent Dealer — 3

FROM THE PRESIDENT

Spring Ahead into FIADA Opportunities

BY DINO MERCURIO, FIADA PRESIDENT

S

pring has officially sprung and it seems like everyone I talk to is upbeat about business so far this year, and looking forward to the future!

This is a very busy time for the automobile industry. Tax refund season is wrapping up, we are closing in on another successful Legislative Session (see the Legislative update article from our esteemed Lobbyist Sandra Mortham on page 16 in this issue), FIADA is gearing up for the May Town Hall and Quarterly Board Meeting, and it’s time to renew your Dealers License!

to be an active member in your community and how to be a leader in your industry. The Florida Quality Dealer winner will be announced at FIADA’s 2014 Convention which will be held Oct. 9-12, 2014 at the Omni ChamptionsGate Resort in Orlando, FL. The Quality Dealer award recipient will then compete with other state quality dealers for the national quality dealer award at NIADA’s Convention in June 2015.

For a list of Quality Dealer qualifications, or to nominate yourself or another dealer, go to www.FIADA.com, click on About then Quality Dealer. Good luck!

Last thing, as we spring forward, I want to remind you of all the FIADA benefits that are available to you as a FIADA member. Not only do you stay ahead of the game with timely information through this magazine, eNewsletters, legislative updates and more, but you also get benefits that truly impact

If you have not yet completed your continuing education requirement, don’t panic! FIADA offers DHSMV approved classes with professional educators either in person at locations throughout the state or convenient online classes to get your certificate. And, if you are a member of FIADA, the online class is There is no charge to attend the FIADA Town Hall completely FREE!

and Board Meeting and it will be a fantastic, action packed weekend full of industry updates and information to help you become a better dealer.

Speaking of completely free, the FIADA Town Hall and Board Meeting will take place May 9-10 at the beautiful Jupiter Beach Resort, and I encourage all dealers, whether you are a member or not, to attend. There is NO CHARGE to attend, and it will be a fantastic, action packed weekend full of industry updates and information that will certainly help you become a better and more profitable dealer!

Also, it’s that time of year again when we start accepting nominations for the prestigious FIADA Quality Dealer of the Year award. This award is given to the best of the best; the dealers who are living and working as an example to everyone on how to treat your customers, how to run a business, how 4 — Independent Dealer — April 2014

your bottom line, such as the relationship you have with FIADA Preferred Partners. I encourage you to log on to the website at www.fiada.com, click on Resources, then Preferred Partners and scroll the list. If you are not already enjoying these programs and, in some cases discounts, then you should be. From employee benefits programs to the NIADA CPO program to the major discounts on shipping with UPS, you will be impressed with what your membership has to offer.

Dino Mercurio FIADA President www.fiada.com

We’re hiring your new F&I manager.

Find out when they start.

Visit newFandImanager.com

Protective Asset Protection has been serving auto dealers of all sizes for 50 years. We know your job is tough – that’s why we’re in the process of getting you some help with your finance and insurance solutions. So, be on the lookout for your new addition. We’ll be making the big announcement soon.

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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. Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products are backed by Western General Insurance Company and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

EXECUTIVE DIREC TOR’S MESSAGE

Invite a Friend to Lunch

BY LISET TE MARINER, EXECUTIVE DIREC TOR

F

IADA is only as strong as its members. I look to you to help me spread the word of all the great things FIADA is doing for the industry. In March, the state legislature approved a reduction in registration fees. This was a great win for the industry. On May 9, join us at the FIADA Town Hall meeting at the Jupiter Resort and Spa as we discuss this tremendous win and the many other issues that were highlighted this legislative session. Thanks to the sponsorship of Auto Data Direct, you can invite a friend and have lunch on us. This is a great opportunity for you to introduce a fellow dealer to the many benefits of being a member of the Association.

FIADA Town Hall meetings are a great time to network with your FIADA board, other successful dealers, and keep informed of the latest rules and regulations that affect your business. Your board is a dedicated group of volunteers who donate their time and receive no financial compensation; all for the betterment of the industry. The Board Meeting and Town Hall Meeting also are a time to learn about products and services available to members.

Membership in FIADA not only pays for itself but it is also an investment in your future.

As a member of the Association, I encourage you to use your benefits and be an active participant. Don’t forget when you go to our partner auctions to use the coupons you receive every year. When you have a technical question, don’t forget to contact the association at (800) 237-0448 to receive your answer from our General Counsel Rob Sickles (partner with Hinshaw & Culbertson). Take advantage of FREE Continuing Education through our multiple online options or discounted in-person options.

Get detailed information on all of these services online at www.FIADA.com.

6 — Independent Dealer — April 2014

There was a full house of dealers who joined us for the free Town Hall meeting in Tampa in January. The next Town Hall and Board meeting is coming up in Jupiter May 9. Make plans to join us, get the latest industry updates and enjoy a free lunch.

FIADA hosts three town hall meetings a year in conjunction with our board meetings. It’s a perfect time to meet dealers in the area and get up to date on what’s happening in the industry.

Auto Data Direct has been gracious to sponsor lunch at all of our town hall meetings. Through their support and the many other vendor supporters we are able to host these events free of charge. So come out, have lunch on us and bring a friend to experience what you already know—it pays to be a member of the Association!

See you in Jupiter! www.fiada.com

Y 28 DA T FLOA

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BACK TO THE BASICS

Take Time Out From Your Business to Work For it Sometimes you have to take time away from something to see the bigger picture. As difficult as it might be, that step back just may be what you need to move forward.

By TERRY MYERS

Y

ou don’t have a future unless you understand the present, and you can’t understand the present unless you take time to understand the past.

Success requires your full attention.

You need to schedule in your calendar, one day a month to work ON your business instead of IN your business.

If you are not doing this already, you need to schedule one day a month, now. Do not do this at home or at the office, go where you will not be interrupted. On this day, there are three questions you want to ask yourself: 1. “What made us money this past month, two months, etc.?” Sales are easy. Sales that produce profit are what you need to know about.

Look at your paper work. That is where the truth is located. Once you learn what made you money, ask another question, “Do we see this trend continuing?” If the answer is, “yes,” then on Monday you need get more of those things that make you money.

2. “What costs us money?” Pull out your check book and your credit card. Review every expense to determine if this is an expense 8 — Independent Dealer — April 2014

you need. Is this an expense you control? If so, can you get the same result for less money?

Can you get a better result for the same money? Or, is this an expense you need but cannot control? Either you can control something or you cannot. For those items you can control, you have some work to do next Monday.

3. “What ideas have I come across that I might want to incorporate here at my dealership?” Be certain to incorporate that idea alongside the current day-to-day operations.

Be willing to dedicate at least six months and measure the results. It is your job to eventually decide if this

will become a part of dealership operation, or to tweak, or drop the test idea. If you have a partner, they need to be at those meeting as well providing their input.

Each of you have equal interest in the future growth and success of the dealership.

When that day of reflection comes to a close, go home.

On a sidenote, too many dealers marry the dealership and divorce their family. Go to the calendar and schedule time AWAY from the business WITH your family. Go to the beach, a movie, BBQ, dates, vacation, etc. Your family wants YOU. Give them you.

When you do this, the dealership and your family will actually become as strong and as successful as possible.

So, “who is in charge of success at your dealership? Is it you?”

Articles are the opinion of the author and are not intended to be regulatory, legal or accounting advice. The intent is to share thoughts and concepts that help the business owner(s) find new and perhaps revisit, ways to be as successful as they are capable of being. Terry can be reached at (727) 804-7375. Email: tmyers@floridaautodealerschool. com. Feedback is appreciated and encouraged. Copyright 2014, Terry LB Myers, author, lecturer, FIADA instructor, FADS owner/ instructor.

www.fiada.com

THERE’S STILL TIME TO GET YOUR CREDITS BEFORE APRIL 30, 2014!

FIADA members get continuing education FREE as a member benefit. You, or an employee of your dealership, can take any of the online CE courses at www.FIADA.com!

Title & Registration: This course covers information about:

Online Continuing Education: A newly updated course that consists of a series of videos which include live instruction, PowerPoint slides, and a manual. The course includes 3 video segments: • Division of Motorist Services (DMS) • Legal/Legislative • Industry Related Topics of interest include a curbstoning update, electronic titles & lien process, the implications of the federal Truth in Lending Act (TILA) and Regulation Z, the USA Patriot Act, Auction success tips, and FTC Red Flags Rule.

This course fulfills your 8 hours of Continuing Education credit. You have 30 days to complete the course. At the end of the online course, you can print your continuing education certificate to provide to the DMV.

• What is acceptable proof of ownership in Florida, other states, and other countries, • When notarization is acceptable or required, • Where to find proof of present and past ownership, • Odometer readings, • When and how to remove or add a lein, and • Where to find answers to other questions as your business grows.

Examples and case studies are provided to clarify ownership and is given in a recorded webinar format with voice recording, PowerPoint slides, and a PDF Title & Registration manual. This course provides 8 hours of Continuing Education credit.

Take a course for FREE at www.fiada.com!

www.fiada.com PAID ADVERTISING

April 2014 — Independent Dealer — 9

MEMBERSHIP NEWS

New Members

MARCH 2014

All Class Autos, LLC Holly HIll, Florida Dana Micallef Sponsor: FIADA.com

Good Rides, Inc. Stuart, Florida Steven Zimmerman Sponsor: Amelia Tillman

All In One Automotive Pensacola, Florida Robert Smith Sponsor: Terry Myers Auto Wholesale 0f Boca LLC Boca Raton, Florida Lisa Farache Sponsor: FIADA.com Hendrik Chen Oviedo, Florida Sponsor: Terry Myers Marie Corioland Hollywood, Florida Sponsor: Kevin Scott DMC MOTORS OF FLORIDA Orlando, Florida Mihaela CurtoI Sponsor: FIADA.com East Coast Auto Care Jacksonville, Florida William Stafford Sponsor: Terry Myers Elite Classy Autos, LLC Gainesville, Florida Belinda Lewis Sponsor: Nicole Lee FLORIDA RVS Jacksonville, Florida Walter Smith Sponsor: FIADA.com

Got Car auto brokers Llc Hollywood, Florida Theo Xidis Sponsor: FIADA.com Imagine Auto Brokers Longwood, Florida Christopher Creamer Sponsor: Terry Myers Island Motor Sales, Inc. Merritt Island, Florida Anthony Liquori Sponsor: FIADA.com

ABT Inc Fort Lauderdale, Florida Thomas Prewitt Sponsor: Amelia Tillman action automotive inc Naples, Florida Kevin Bess Sponsor: FIADA.com B & E Autos Altha, Florida Betty Hunt Sponsor: Kevin Scott

Jose Rodriguez Orlando, Florida Sponsor: Kevin Scott John Sinatra Cocoa, Florida Sponsor: Kevin Scott Milton Martinez Hollywood, Florida Sponsor: Kevin Scott Strickland Auto Solutions Inc Chiefland, Florida David Strickland Sponsor: FIADA

KM Powersports #2 Lakeland, Florida thomas and son inc Amber Lee Moran Zephyrhills, Florida Sponsor: Amelia Tillman / Kevin Scott Karen Morley Sponsor: Sarah Langley Lancasters Auto Sales Fruitland Park, Florida United Consumer Finance Donald Boehler Middleboro, Massachusetts Sponsor: FIADA Scott Strazdes Sponsor: FIADA.com Donald Lassiter Jupiter, Florida Urban Auto Exchange Sponsor: Kevin Scott Bradenton, Florida Ron Schutz Crystal Martin Sponsor: Terry Myers Port Orange, Florida Sponsor: Terry Myers Waste Equipment & Parts LLC Tampa, Florida millan auto sales David Waste Orlando, Florida Sponsor: FIADA.com Ricardo Vasquez Sponsor: FIADA.com

Rejoining Members 2007 lambo Pinellas Park, Florida Richard Davis Sponsor: FIADA.com

Ocala Auto Dealers Exchange Ocala, Florida Michael Tumminello Sponsor: Amelia Tillman

MARCH 2014

Bennetts Auto Sales of Ocala Inc Ocala, Florida Gary Bennett Sponsor: Ocala Regional DMS C & D Auto Exchange Cape Coral, Florida Carlisle Barker Sponsor: Nicole Lee Dan’s Deals On Wheels Auto Sales, Inc. Davie, Florida Marjorie Jaramillo Sponsor: Amelia Tillman

10 — Independent Dealer — April 2014

J.D. Sanders, Inc. Alachua, Florida Dell Sanders Sponsor: Amelia Tillman Metro Motor Sales Inc Longwood, Florida Daniel Cash Sponsor: Nicole Lee Panama Motors Jacksonville, Florida Keith Berryman Sponsor: Amelia Tillman Ten Stars Auto Sales Kissimmee, Florida Dhanessar Dammar Sponsor: Amelia Tillman

Renewing Members

MARCH 2014

20+ Year Members Bubba Hill Auto Plaza, Inc. Caicos Trading & Equipment Ed Cox Motor Company, Inc. Larry Condon Auto Sales Mears Transportation Group Roney Auto Sales Shade Tree Auto Repair The Truck Center, Inc.

Panama City, Florida Miami, Florida Ft Walton Bch, Florida Stuart, Florida Orlando, Florida Plant City, Florida Bartow, Florida Ft Walton Bch, Florida

10+ Year Members Bargain Auto Sales of Lakeland, Inc. Beach Boulevard Automotive Donny Mills Auto Sales, Inc. Ed Tillman Auto Sales Global Wholesale Motor Company GWC Warranty Corporation of Florida Richard’s Car Company, Inc.

Lakeland, Florida Jacksonville, Florida Largo, Florida Jacksonville, Florida Fort Myers, Florida Wilkes Barre, Pennsylvania Jacksonville, Florida

Under 10 Year Members AP Motorsales LLC Anthony, Florida ASC Warranty, Inc. Mountain Home, Arkansas B & T Enterprise Services, Inc dba 5 Star Auto Sales Brooksville, Florida B&A Auto Sales of Central Florida Winter Garden, Florida BMC LLC dba Prestige Auto Sales Saint Petersburg, Florida Bonita Big Lot, Inc. Bonita Springs, Florida Cochran Motorsports Inc Hastings, Florida Dealer Consulting Services Miami, Florida Dealerbuilt Mason City, Iowa Delray Exotic Motors Delray Beach, Florida E-Z Pay Cars LLC Stuart, Florida Fort Myers Auto Mall Fort Myers, Florida Highway Motors Inc Weeki Wachee, Florida Holdings of South Florida, Inc. dba Automac 2 Jacksonville, Florida Jeanie’s Automotive, Inc. dba Jeanie’s Auto Sales Clearwater, Florida Julians Auto Showcase New Port Richey, Florida Just In Time Auto Sales Inc Auburndale, Florida LB Auto Trading Orlando, Florida Loan Value Auto Sales, Inc. Tampa, Florida Manheim Fort Myers Fort Myers, Florida Mcphails Auto Sales Sebring, Florida Mile Stretch Auto Sales Holiday, Florida Najjar Auto Mall, Inc. dba Park Auto Mall Pinellas Park, Florida Orange Sports Center, Inc. Orlando, Florida Outdoor Recreation World, Inc. Panama City, Florida Precision Motors Inc Boynton Beach, Florida Robin Rogerson Winter Haven, Florida Routh’s Equipco dba Gravely of Bradenton Bradenton, Florida RTG Auto Sales, LLC Tarpon Spings, Florida Santa Fe Power Sports Alachua, Florida Sharp Deal Automobiles Corp.

Hialeah, Florida Snider’s Truck & Auto Sales Titusville, Florida South Florida Car Buyers Fort Lauderdale, Florida Sunrise Financial Associates Orlando, Florida Taylor Auto Sales, Inc. Tallahassee, Florida The Car Connection West Palm Bay, Florida The Connection Motors, Inc. Miami, Florida The Surety Group Atlanta, Georgia We Deal Trucks LLC Jacksonville, Florida Yaris LLC Orlando, Florida

www.fiada.com

FIADA IS ON THE AIR WITH NEW WEBINARS WHAT’S UP NEXT:

Thursday, April 24 at 10:00 A.M.

Don’t Get Stuck in the Mud of Today’s Regulatory Landscape

Plan to attend our next FIADA live webinar coming up on Thursday, April 24 at 10:00 A.M. called, “Don’t Get Stuck in the Mud of Today’s Regulatory Landscape” Come learn about Federal and State regulatory issues from an expert attorney.

This webinar will be presented by Rob Sickles from Hinshaw & Culbertson who acts as outside general counsel to the Florida Independent Auto Dealers Association. Sickles has substantial experience representing clients in all aspects of the automotive industry. He has served as counsel for more than 100 licensed motor vehicle dealerships throughout Florida, ranging from large publicly traded corporations to small, closely held family dealerships. He also represents finance companies and lenders affiliated with the automotive industry. He has defended claims arising under Florida’s Fair Debt Collection Practices Acts, the Truth in Lending Act, and Florida’s Deceptive and Unfair Trade Practices Act.

Webinar presenter and FIADA Outside General Counsel Rob Sickles

IN THE ARCHIVES:

FIADA is now offering recorded versions of our past webinars as an “on-demand” option. This on-demand service is free for members and $10.00 for non-members. To register for an on-demand or live seminar, go online to www.FIADA.com and click on Dealer Training School/Webinars.

Watch archived videos now on your mobile device or smartphone. Scan this code to access our YouTube site.

PAID ADVERTISING

WWW.FIADA.COM www.fiada.com

NEW VIDEOS ARE UPLOADED REGULARLY. SUBSCRIBE TO OUR CHANNEL. April 2014 — Independent Dealer — 11

FROM THE DOR

The Most Common Audit Issues for Independent Dealers The Florida Department of Revenue gives guidance to independent dealers on how to approach tax issues that seem to cause the most confusion.

I

n an effort to educate dealers about tax issues and rules, the Florida Department of Revenue’s Audit Director has assisted in compiling information concerning prominent audit issues that affect independent automobile dealers. Below is a list of the most common audit issues for your industry and a brief summary regarding each:

for the county the dealer is located in.

There is a common misconception on how to collect tax in this scenario. For a list of current discretionary rates for Florida counties, see Figure A. For the complete, current Discretionary Sales Surtax Information Form, provided by the DOR go to http://dor.myflorida. com/dor/forms/current/dr15dss_1113. pdf.

Improperly Exempted Sales – Auto Dealers must keep the appropriate documentation when partial or no sales and use tax is collected on a transaction. For sales of vehicles to be registered in another state, an Affidavit for Partial Exemption of Motor Vehicle Sold (DR-123) must be signed by the customer and notarized. Sales for resale or sales to an exempt entity must also be well documented by retaining a signed copy of the current Annual Resale Certificate (DR-13), or Consumers Certificate of Exemption (DR-14) for each transaction where no tax was collected. If resale authorization was completed via phone or online, the 13 digit authorization number must be included on the sales invoice or purchase order for each vehicle sold tax free.

Repossession and Bad Debt Credits– Auto Dealers wishing to take sales and use tax credits for repossessed vehicles should properly document the transactions by completing the Schedule of Florida Sales or Use Tax Credits Claimed on Repossessed Motor Vehicles (DR-95B). The credit must be claimed on the Sales and Use Tax Return (DR-15) within 12 months following the month of repossession.

Failure to complete the DR-95B can be grounds for an audit assessment on credits taken. Sales tax credits may also be taken on the DR-15 regarding bad debts. The credit can only be claimed from the date the dealer deducts the bad debt from his books through 12 months after the end of the dealer’s fiscal year. The Bad Debt deduction can only be claimed on the unpaid amount on which tax has been paid.

Using the Wrong Discretionary Sales Surtax Rate – Discretionary Sales Surtax is determined by the purchaser’s residence and the respective surtax rate for that county, not the surtax rate 12 — Independent Dealer — April 2014

Taxable Base – Auto Dealers are required to calculate the sales and use tax due based on the “full” sales price.

Deductions are not allowed for the following charges: • Dealer’s prep • Tire and Waste Fee • Federal Excise Taxes (unless separately stated on sales invoice) • Freight • Handling • Delivery • Commission • Repossession • Advertising • Future free service • Notary fees • Any other expenses or costs Service Warranties – Sales and Use Tax is due when a motor vehicle service warranty is sold by a dealer.

The tax is due even if the motor vehicle is delivered out-of-state or out-ofcountry. Discretionary Sales Surtax is also due with no $5,000 cap if the delivery or location of the vehicle indemnified by the warranty is in a surtax county.

Use Tax on Purchases – Sales Tax is due on any item a dealer purchases that is not purchased for resale. Often a dealer will buy items shipped from out-of state, or at “brick and mortar” stores in Florida, for use in the business that are not properly taxed.

At the time of purchase if a dealer buys items for use in the business that are not taxed, Use tax should be remitted on the next sales tax return submitted www.fiada.com

to the Department. These items could include but are not limited to office furniture, business cards and forms, stationary, computers, pamphlets on display for customers use, and fixed assets such as company vehicles that are not put in inventory for resale.

Collecting Tax and not remitting on return – This is the most serious of the issues that we run across in Sales and Use Tax audits. Either through erroneous bookkeeping methods, or with intent to defraud, sales tax is correctly calculated and collected at the time of sale, but is not remitted to the Department. See chapter 212.15 Florida Statues below: 212.15 Taxes declared state funds; penalties for failure to remit taxes; due and delinquent dates; judicial review.— (1) The taxes imposed by this chapter shall, except as provided in s. 212.06(5)(a)2.e., become state funds at the moment of collection and shall for each month be due to the department on the first day of the succeeding month and be delinquent on the 21st day of such month. All returns postmarked after the 20th day of such month are delinquent.

(2) Any person who, with intent to unlawfully deprive or defraud the state of its moneys or the use or benefit thereof, fails to remit taxes collected under this chapter is guilty of theft of state funds……..

While the Investigations process handles egregious cases that are referred for prosecution, the Audit program does run across these types of cases and will handle them through the civil process when practical.

Recently the Department of Revenue has been working with DHSMV to compare sales tax collected as reported to the County Tax Collector’s and Continued on Page 14. www.fiada.com

FIGURE A - List of Counties and Surtax Rates County

Total Surtax Rate

County

Total Surtax Rate

Alachua

None

Lake

1%

Baker

1%

Lee

None

Bay .

5%

Leon

1.5%

Bradford

1%

Levy

1%

Brevard

None

Liberty

1.5%

Broward

None

Madison

1.5%

Calhoun

1.5%

Manatee

.5%

Charlotte

1%

Marion

None

Citrus

None

Martin

None

Clay

1%

Miami-Dade

1%

Collier

None

Monroe

1.5%

Columbia

1%

Nassau

1%

Dade

See Miami-Dade

Okaloosa

None

De Soto

1%

Okeechobee

1%

Dixie

1%

Orange

.5%

Duval

1%

Osceola

1%

Escambia

1.5%

Palm Beach

None

Flagler

1%

Pasco

1%

Franklin

1%

Pinellas

1%

Gadsden

1.5%

Polk

1%

Gilchrist

1%

Putnam

1%

Glades

1%

St. Johns

None

Gulf

1%

St. Lucie

.5%

Hamilton

1%

Santa Rosa

.5%

Hardee

1%

Sarasota

1%

Hendry

1%

Seminole

None

Hernando

.5%

Sumter

1%

Highlands

1%

Suwannee

1%

Hillsborough

1%

Taylor

1%

Holmes

1%

Union

1%

Indian River

1%

Volusia

.5%

Jackson

1.5%

Wakulla

1%

Jefferson

1%

Walton

1.5%

Lafayette

1%

Washington

1%

Download a complete copy of the Discretionary Sales and Surtax Information from DOR at http://dor.myflorida.com/dor/forms/current/dr15dss_1113.pdf.

April 2014 — Independent Dealer — 13

COMMON AUDIT ISSUES continued from Page 13.

what is remitted on the Sales and Use Tax Return (DR-15). This 3rd party information is currently being used by our audit program state-wide to help verify whether or not the correct amount of sales tax is being collected and remitted to the Department.

FIGURE B - Audit Notification Letter and Worksheets

and to

ws of Florida er:

ith the tax la Dear Taxpay sponsibilities ompliance w re e c ing ur fil ns ts, o e emen ility is t tration requir ’s responsib detail

gis er ue th re en ur er ev r f ay f R fo xp ing ta f Rights” epartment o x laws, includ ents of a xpayer’s Bill o The Florida D he state’s ta vant docum ed “Florida Ta yers about t amine the rele ee the enclos ex many e s to as om ue educate taxpa Ple fr en s. ion right format ent of Rev a taxpayer’s ely reviews in the Departm and ensuring tment routin atutes allow ar St ep ida D lor he F . T ights. . s in Florida about your r rted and filed ucts busines a provided use tax repo lives or cond d use tax dat y of sales and taxpayer who ac ur cc e a th llects sales an co ine m V) er M e et HS th o d (F ith data w sources t or Vehicles V shares this s and ety and Mot hicles. FHSM t to your sale f Highway Saf d compared i rs of motor ve epartment o D an sfe ta an ida da tr lor is tle e F th ti Th in your ed ing ies rd iew nc ga ev pa re s r re rs ha to isc ue x Collec gnificant d he ent of Reven

by County Ta pear to be si use tax for t he Departm and there ap for sales and f Revenue. T otor vehicles aire and ida Statutes m nn lor Department o ed tio , F es us 12 of qu r 2 ale apte the enclosed rns for the s tion under Ch if se complete use tax retu is an examina elp determine letter. Plea erefore, this his letter to h orner of this f t d c e o an at t h reporting. Th e d igh per r rom th up s f ay he ) d n t 30 d i te in thirty ( period indica uments with n equested doc ly disclosed o provide the r not previous . s and use tax s due rtunity, ale x i po ta ll s op al t a is or ion th addit tage of y to rep o take advan n opportunit eported oviding you a of penalty. T kdown of unr ent is also pr ll compromise monthly brea a fu f a ing y o vid ro ilit The Departm e possib rksheet p turns, with th elf‐analysis wo your filed re he enclosed s

and return t letter. te his ple f t 30) days may om e o at e c pleas ithin thirty ( rom the d rn his inquiry w y (30) days f tu o t irt re d t th A on in t. sp es ith sales w failure to re lty and inter ditional tax, ax, plus pena not owe ad ales and use t elieve you do payment of s n‐ no or t f Even if you b ssmen

timated asse sales and use

result in an es onvenience. may research ed for your c estions. You /dor m los qu nc .co ny s e ida e a e i or av envelop t www.myfl low if you h for many ber listed be rnet website a phone num lso available ting our Inte ct me at the chures are a siness by visi ro bu e b ur ns, uid yo tio G Please conta ca to Publi cable d Industry nd rules appli er “Forms and ary.” Standar tax statutes a r website und nue Law Libr ou ve Re on ed e “ at lin oc g our on icle Dealers l and accessin s Motor Veh l#sales. inesses, such a s/index.htm types of bus rm /fo or /d yflorida.com ue. http://dor.m solving this iss sponse in re our prompt re r y fo ou k y Than

Currently we are developing a limitedscope audit concept that will provide Dealers in the used car industry a checklist of requested documentation and allow them to review their own records and self-disclose any unintended tax oversights. In a limited-scope audit the Dealer will not have the intrusion of a field auditor at their place of business and with timely cooperation they are eligible for a complete waiver of penalty.

These limited-scope audits will be assigned and administered by “Central Campaigns” here in Tallahassee under my supervision. Dealers will be able to communicate with their auditor via telephone, e-mail, and US Postal Service. Candidates will be selected primarily based on the discrepancy between the Sales and Use Tax reported to DHSMV and reported on the DR-15s. See Figure B for a copy of the Audit Notification letter and worksheets that will be sent in the package.

x

Federal Income Tax Returns

x

Sales Invoices

x

Power of Attorney (if applicable)

x

DR-123s

x

Sales Journals

x

Sales Tax Exemption Certificates (Resale Certificates ) Lease Agreements for Real or Tangible Property

x x

Please answer the following questions related to your b

DR-95Bs

usiness:

When did the business begin? (Month and Year) _____ _________

Need more information on tax issues and rules?

Download the DOR guide on Tax Information for Motor Vehicle Dealers. online at http:// dor.myflorida. com/dor/ forms/current/ gt400400.pdf

Sample letter to dealers participating in the limited-scope audits.

Sales and Use Tax Information Questiona ire

Please provide copies of all documentation requested below for your examination period.

Sales and Use Tax Information Questionnaire

____________________

Has there been a name change or change in ownership within the

past three years? ______________

GT-400400 R. 07/12

If so, list the previous business name: ______________ _______________________________ If so, list the names of the previous owners: _________ _______________________________ Are you a “Buy Here, Pay Here” dealer? _____________ _____________________________________

Tax Info

If so, please provide proof of Documentary Tax collecte d and paid to the Department such as copies of DR‐225

returns filed.

rmation for rs

Who completes your Sales and Use tax returns? Own er Employee Accountant CPA Does the business rent or lease real property? ______ ______________________________________

This publ It should not ication was desig ned to be be used used as a If legal advic as a reference to cite the Depa training aid. dealers shou e or other expert rtment’s posit assistanc ld obtain the ion. e is requ services of a tax profe ired, ssional.

Or scan this code with your smartphone or mobile device.

14 2014 2014 14— —Independent IndependentDealer Dealer— —April February

Sales and Use Tax— Self Analysis Worksheet Exerpt

If, so please provide a financing report/journal which i ncludes the amount financed for each motor vehicle financed by your business during the examination peri od.

Motor Ve hicle Dea le

If you are renting as a lessee, please provide your landl ord’s name and address:

_____________________________________________ _______________________________

Florida Department of

Rev

enue Owner Signature _______________________________ Sales and Use Tax – Se ______________Date__________________ lf Analysis Worksh ____

Owner Full Legal Name (Printed)__________________ _______________ Phone #__________________

A Owner FEI/EIN #___‐________________________ OR B Owner Social Security #______‐_____‐____ ____

Month/Year

C

Total Taxable Sales

D

Total Taxable Purchase s

1

5

6

7

8

11

12

13

(Column B plus Column C minus Column D)

9 10

Unreported Taxable Sales and Purchases

3 4

E

Taxable Sales & Purchases Reported on

Sales and Use Tax Retur n (DR‐15)

(Use Tax)

2

eet

Used Car Dealers

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February 2014 — Independent Dealer — 15

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

Number One Priority Issue for FIADA Passed!

BY SANDRA MORTHAM, FIADA LOBBYIST

S

core one for Florida’s independent auto dealers and Florida drivers! The Florida legislature approved the rollback of the over-inflated motor vehicle fees citizens have been dealing with since the hike in 2009 by passing CS/ SB 156. Governor Rick Scott and Senator Joe Negron made this issue a huge priority, and because of that we were able to get the entire legislature to roll back the fees by $400 million.

This was a monumental amount of money rolled back when many other groups were trying to take a piece of the reduction for their particular program.

SEN. JOE NEGRON Senator Joe Negron of District 32 (parts of Indian River, St. Lucie, Martin and Palm Beach Counties) was elected to the Senate in 2009.

He was a member of the Florida House of Representatives from 2000 to 2006.

GOV. RICK SCOTT Rick Scott is Florida’s 45th governor and as promised during his campaign, Scott has focused on creating jobs and turning Florida’s economy around. Gov. Scott is known as an innovator in business, health care, and politics. His specialization was in health care mergers and acquisitions, and it was during his work on these transactions that he recognized how patients could be better served by improving hospital efficiency, lowering costs, and focusing on better outcomes.

There is still time left in the session to keep working on the other items of our agenda. As we move forward on the Surrender Stop issue, we will need your assistance as we move it through the process. Stay tuned to your email for updates and how you can help.

Decreases to motor vehicle registration fees from CS/SB 156 Fee Description GR - Registration Service Fee Registration Receipt Fee/Decal Material Processing/Retroreflective Fee License Tax Surcharge - Transportation Trust Fund License Tax Surcharge - DJJ Real Time Vehicle Information System Fee Motorcycle Base Tax Moped Base Tax Antique Motorcycle Antique Automobile or Street Rod Auto less than 2,500 lbs Auto 2,500 - 3,499 lbs Auto 3,500 or more lbs Trucks - less than 2,000 lbs Trucks - 2,000-2,999 lbs Trucks - 3,000-4,999 lbs Truck - goat Antique Truck 16 — Independent Dealer — April 2014

Current Fee $5.00 $3.00 $1.50 $4.00 $5.50 $1.25 $13.50 $6.75 $8.50 $10.25 $19.50 $30.50 $44.00 $19.50 $30.50 $44.00 $10.25 $10.25

Proposed Fee $2.50 $1.00 $0.50 $1.20 $1.00 $0.50 $10.00 $5.00 $7.50 $7.50 $14.50 $22.50 $32.50 $14.50 $22.50 $32.50 $7.50 $7.50

Fee Reduction $2.50 $2.00 $1.00 $2.80 $4.50 $0.75 $3.50 $1.75 $1.00 $2.75 $5.00 $8.00 $11.50 $5.00 $8.00 $11.50 $2.75 $2.75 www.fiada.com

Come to the next Town Hall Meeting and have lunch on us.

Lunch generously provided by Auto Data Direct

May 9, 2014 • 10am - 2pm Jupiter Beach Resort & Spa • 5 North A1A, Jupiter, FL What’s on the agenda?

Legislative Update: Speaker: Sandra Mortham, FIADA Legislative Advocate Find out what happened this legislative session and how it impacts your business. Learn more about Senate Bill 156 and its reduction of motor vehicle registration fees.

Legal Q&A: Speakers: Rob Sickles, FIADA General Counsel | Lewis Kuhl, Kurkin Brandes This segment is always packed full of information regarding recent court decisions and will focus on recent FTC settlements against dealers. Ask an expert your burning legal questions. Join Rob Sickles, FIADA’s General Counsel and Lewis Kuhl, an attorney with the law firm of Kurkin Brandes in this interactive legal discussion.

Need directions or a reservation for the Jupiter Beach Resort? Find them online at www.jupiterbeachresort.com or call (800) 228-8810.

Online Registration available at www.FIADA.com www.fiada.com

April 2014 — Independent Dealer — 17

Support the FIADA PAC Fund!

Your PAC Contribution helps spread awareness and gain support of issues affecting independent dealers in the state’s capitol.

CONTRIBUTION INFORMATION Contributor’s Name:_________________________________________________________________________ Dealership/Company:________________________________________________________________________ Street Address, City, State, Zip:____________________________________________________________________

q

Check q

q

$500

Credit Card (one time contribution) q q

Credit Card Information:

$250 q

q Visa

$100 q

q

MasterCard

Monthly Credit Card Contribution (until cancel)

$50 q

q

$25

q

American Express

_________ q

Discover

PAYMENT INFORMATION Name on Card: Card number: Exp Date:

Sec. Code:

Billing Phone:

Billing Address Authorized Signature

Make your check payable to FIADA-PAC and mail to: FIADA • 1840 Fiddler Court • Tallahassee, FL 32308 If making payment via credit card, you may fax your contribution form to 850.385.3251

18 — Independent Dealer —April 2014

www.fiada.com

Plans are being made for the ultimate dealer experience of the year. Mark your calendar now to attend.

fiada

Annual Convention October 9-12, 2014

Omni ChampionsGate www.fiada.com

Orlando, FL

April 2014 — Independent Dealer — 19

AUTOMOTIVE RECONDITIONING

The Benefits of World Class Reconditioning When aiming for quick turn of inventory and higher-profits, don’t forget about taking the proper preparations to get your vehicle front-line ready.

BY Jay Prassel

W

herever I find myself training or consulting with independent dealers, the subject of reconditioning comes up.

Over the years, I’ve seen dealers who may simply perform a quick wash and vacuum to those who do a full, “worldclass” job.

At a recent meeting with a few BHPH dealers, I was presented with the processes and procedures on their reconditioning programs. One in particular stood out as I was hard pressed to remember another dealer, including new car dealers, who had such a world-class recon program.

Dealers who have reconditioning that exceeds their competition will develop a reputation for having the best vehicles in town, which results in increased volume and gross per unit.

2.

3.

4.

5.

6.

engine is cold. (Does it hesitate to start? Hesitate to accelerate?)

Test drive the vehicle at slow and highway speeds.

Test drive with tight turns, in reverse, going up steep hills, and down steep hills.

Does the steering pull or shake while you are driving?

Does the air conditioner provide cool air?

Do the cruise control and power windows/locks work properly?

After The Test Drive 1. Do all interior lights operate?

2. Are there any cracks/chips in the windshield?

3. Are all seatbelts functioning properly?

4. Do the radio, satellite radio, CD, MP3, and/or cassette function properly?

5. Are the previous maintenance records available?

6. Have there been any recalls on the vehicle? Have they been correctly performed?

Under the Hood 1. Timing belt (if applicable on model--may need to be replaced) 2. Belts (AC, Power Steering, Alternator, etc.)

3. Change oil and filter 4. Brake pads. Set a policy on when to replace, maybe at less than 50 percent?

5. Inspect coolant. Does it need to be Continued on Page 22.

Best Practices for Worldclass Reconditioning Develop a written checklist, in triplicate, where a copy stays with the service folder, the deal jacket and one is provided to the customer at time of delivery. It should include the following: Mechanical Checklist 1. Test drive the vehicle when the 20 — Independent Dealer — April 2014

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April 2014 — Independent Dealer — 21

WORLD CLASS RECONDITIONING continued from Page 20.

changed or flushed?

6. Inspect spark plugs, ignition wires, air filter and fuel filter 7. Vehicle frame (inspect for damage from accidents) 8. Inspect for any excessive rust and/ or flood or water damage

The first step is the evaluation of the car’s paint. Take a quick walk around the car. Do you see bug stains, water spots and tar spots, or is it completely free of contamination? How does the paint feel to your hand? Is it rough or is it smooth like glass?

Outside of the Car 1. Tires. What is the minimum tread depth for replacement? Replace with “brand name” tires.

2. Check brake and signal lights 3. Does the paint match on the entire car? Additional inspection may be required.

If the paint is stained and rough, you will have to clean it before waxing.

Cleaning the paint can take 30 minutes or 3 hours, depending on the level of perfection you want to achieve. Use a paint pre-wax cleaner (a special cleaner/polish) or a paint-cleaning clay to remove surface paint contamination.

Any minor imperfections can be fixed with a good polish and should be taken care of prior to waxing. You should use a good orbital buffer (low speed for amateurs) for faster results.

This list is by no means all inclusive, but should serve as a starting point as you customize the inspection form to fit your culture. By properly setting up every vehicle, you’ll eliminate any excuse for the customer to lose the enthusiasm to purchase. An example would be if the tires are marginal and the customer asks if you will be replacing them and you answer, “If I replace them, will you buy it today?

World-class reconditioning eliminates objections and roadblocks making it easier to sell the vehicle.

The Detail Process Make sure you are using the right products and equipment. The cheapest products will not get you the best results.

If the paint has deep surface scratches you may need to use a scratch remover polish formula. Most scuffs and scratches can be polished so they will no longer be noticed. When the paint is contamination-free and buffed to a high gloss, it’s time to be waxed. A good paste wax is preferred over a liquid wax. In our opinion, it’s a better product and more economical with less waste.

Detailing Accessories Car detailing towels-Detailing towels

should have an edgeless design to prevent any chance of paint marring from the toweling. With a proper towel you are guaranteed better results with less effort.

Car wash mitts and bucket- A genuine wool wash mitt has a superior feel and holds volumes of soapy water for a scratch-free wash making it an excellent choice. If you want an easy care solution, there are car wash mitts that are constructed using a high-pile microfiber fabric that’s backed with foam. These mitts are very soft and rinse freely for a scratch-free wash.

And they are machine washable!

A nice five gallon bucket may work, but a professional wash bucket offers such features as a five-caster dolly that makes it easy to move and a grit guard that keeps the car wash mitt out of the harmful dirt that settles to the bottom.

Choose your car detailing accessories carefully. The proper tools and accessories make detailing easier and deliver world-class results. Inferior products create more work and are less likely to deliver the results you expect.

Jay Prassel of Premier Performance Group, LLC is a national trainer and consultant who has worked for over 38 years helping dealers achieve net profit improvement. Contact him at 847.910.1681 or Jay@Prassel.com

FIADA is your number one source for advice and information. Technical questions, legal questions, regulatory questions...bring them on!

Our network of industry veterans, professionals and consultants can help you find the answers you are looking for. The best part is, it’s free to FIADA members. Call us anytime at (800) 237-0448!

Got a question after hours? You can access our online resources 24/7 at www.FIADA.com 22 — Independent Dealer —April 2014

www.fiada.com

Continued on Page 30.

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LEGAL ROUND-UP

A Look At Current Legal Issues

BY Thomas B. Hudson and Nicole Frush Munro, Hudson Cook, LLC

A monthly collection of selected legislative and regulatory highlights, and a recap of some of the many auto sale and financing lawsuits followed each month.

COMPLIANCE TIP The National Automobile Dealers Association and the American Financial Services Association have just published an update of their consumer education booklet, Understanding Vehicle Finance. Although it is aimed at consumers, it makes an excellent training tool for dealers to use to introduce new employees to dealer financing, and to give experienced folks an opportunity to brush up on this important topic. We’ve also recommended for years that dealers give a copy of the booklet to every customer, and send them in bulk to whoever teaches about financial matters at the local high school (with a business card attached, of course). The publication is free and available from the web sites of both organizations.

It isn’t copyrighted, so you can make copies to use for these purposes.

LITIGATION Arbitration Agreement in Buyer’s Order Enforceable Despite Lack of Seller’s Signature: When the dealer forgets to sign the arbitration agreement, you’d think a court would side with the customer and refuse to enforce it, wouldn’t you. Well, maybe not. When buyers bought a car, they signed a buyer’s order containing an arbitration agreement, and they and the dealership signed a retail installment sales contract that did not contain an arbitration agreement. The buyers sued the dealership for a violation of the Kentucky Consumer Protection Act for representing that the car had a larger engine that it actually had. The trial court granted the dealership’s motion 24 — Independent Dealer — April 2014

to submit the claim to arbitration. The arbitrator ruled for the dealership, and the trial court confirmed the arbitrator’s ruling. The Court of Appeals of Kentucky affirmed the trial court’s ruling. The buyers argued that the arbitration agreement should not have been enforced because it was only contained in the buyer’s order, which had not been signed by the dealership.

The appellate court, however, determined that the buyer’s order did not explicitly require the signature of the seller to be accepted by the seller.

Because the buyers left the dealership with the car, the dealership took their trade-in, the parties negotiated, and the dealership formalized the acceptance of the transaction with a signature on the RISC, the appellate court determined that the buyer’s order and the arbitration agreement were enforceable.

See Marrs v. Walters Automobiles, Inc., 2014 Ky. App. Unpub. LEXIS 76 (Ky. App. January 31, 2014).

nor sell vehicles to, that company. The dealership bought nine vehicles over the Internet from a Florida corporation over a 4-year period. The dealership also had five transactions over an 8-year period with customers that owned extended service warranties bought from Florida companies. In addition, the dealership assisted a company in obtaining financing for the company’s vehicle buyers, and some of the financing involved vehicles sold in Florida, for which the dealership received $7,500. The trial court denied the dealership’s motion to dismiss, but the Court of Appeal of Florida reversed, finding no specific jurisdiction, in which the alleged activities or actions of the defendant are directly connected to the forum state, and no general jurisdiction based on continuous and systematic business contacts with the state. See Marina Dodge, Inc. v. Quinn, 2014 Fla. App. LEXIS 1458 (Fla. App. February 5, 2014).

New York Dealership’s Contacts with Florida Insufficient to Support Personal Jurisdiction Can your car buyer sue you in another state?

Sometimes yes, sometimes no. Here’s a “no.” A buyer bought a car from a New York dealership. She later moved to Florida and was hurt in a car accident in Florida involving another Florida resident. She sued the dealership in Florida, claiming that her car was defective and was a cause of the accident. The dealership moved to dismiss the suit for lack of personal jurisdiction. The dealership was registered with a Florida auction company but did not buy vehicles from,

Claims Against Dealership Arising from Sale of “Certified” Car Dismissed: Selling CPO vehicles? Read on. A used car buyer received a Certified Quality Inspection Certificate, a generic list of components that were inspected but not the results of the inspection. She experienced numerous problems with the car almost immediately after the purchase. She sued the dealership for wrongfully labeling her car as “certified” and for making false representations about the car’s quality. The dealership moved to dismiss the complaint, and the U.S. District Court for the Southern District of California granted the motion. The buyer claimed that www.fiada.com

Court Refused to Dismiss Buyer’s Claims Stemming from Failure to Disclose Prior Short-Term Rental Use of Car: A buyer bought a car without being notified that the car previously had been used as a short-term rental.

She filed a class action against the dealership and related companies.

The defendants moved to dismiss, and the U.S. District Court for the District of Maryland granted the motion in part and denied it in part.

After determining that the dealership, its parent, and its sister companies were not legally capable of conspiring with each other, the court addressed the claims against the dealership and its parent for breach of the implied warranty of merchantability, violations of the Maryland Consumer Protection Act, and violations of the Racketeer Influenced and Corrupt Organizations Act. The court refused to dismiss the breach of implied warranty of merchantability claims, even though it doubted that the buyer could ultimately prove that the car was not merchantable solely because it previously had been used as a rental vehicle. The court www.fiada.com

also refused to dismiss the CPA claim, finding that the buyer stated a valid claim that she suffered damage because she bought a car that was worth less than what she paid for it because of its prior use. However, the court dismissed the RICO claims without prejudice. See Bailey v. Atlantic Automotive Corp.,

2014 U.S. Dist. LEXIS 6096 (D. Md. January 17, 2014).

Tom (thudson@hudco.com) and Nikki (nmunro@hudco.com) are partners in the law firm of Hudson Cook, LLC. For information, call 410-865-5411 or visit www.counselorlibrary.com.

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the dealership was required by state law to provide her with a completed inspection report indicating all the components inspected. The court found that the complaint failed to allege that the certificate the buyer received did not comply with the statute. The buyer also alleged that the dealership misrepresented its inspection of the car. The court found that the complaint failed to allege the misrepresentations with sufficient particularity. The court also found that the buyer failed to allege actual damages from any of the claimed violations of law. Finally, the court found that the buyer did not sufficiently allege breach of warranty under the Song-Beverly Consumer Warranty Act where the warranty she was provided was a 30-day/1,000-mile warranty, and the problems she alleged that related to usability of the vehicle did not arise until after the warranty period expired. See Zambrano v. CarMax Auto Superstores, LLC, 2014 U.S. Dist. LEXIS 7300 (S.D. Cal. January 21, 2014).

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Also follow us on: April 2014 — Independent Dealer — 25

CUSTOMER SER VICE

Eight Tips For Effective Email Communication Don’t let your emails land in the spam box. Create emails that get opened and responses.

by Nancy Friedman

A

recent report estimated that over 300 billion emails are sent each day! Spam messages are jamming in-boxes across the globe and the average person now gets nearly 100 messages a day.

While no one denies the obvious productivity gains we’ve realized from the efficiencies of email communication, many people find themselves drowning in all these messages. Here are eight tips that will make your email communications more effective.

1

Practice being clear and concise with your message.

You’ll save time and your reader will appreciate it.

• Consider using bulleted points to clearly express your thoughts.

• Everyone has a different style of how they intake information.

• Email communication works best if you clearly outline the points you’re trying to get across in an easy to understand format.

Investing extra time while authoring an email pays big dividends by giving your reader a clear understanding of your message. Remember, if your email is written with the purpose to educate, inform or persuade, then making sure to get your point across is even more critical.

With the sheer volume of email messages most business people receive, there’s an inverse relationship between the volume of text and successfully making the point. Most people will immediately read and understand a ten sentence email. Send them a 10,000word document and they’ll likely scan the highlights, save it for later and you risk it not being read fully. People appreciate brevity. Remember, if your objective is to tell

26 — Independent Dealer — April 2014

the reader what time it is, you don’t need to explain how to build a clock!

2

Before sending, ALWAYS reread your message and double check for grammar and misused words.

It’s obvious to most of us to use spell check after we’ve composed our message. You should also make it standard procedure to reread your entire message before sending. Often times, you’ll notice words which have been left out, grammar that’s incorrect and worst of all—words witch our spilled write butt knot used inn the write weigh. (Note, that this last sentence runs through a spell checker perfectly.) How many times have you caught something too late, making your only option to curse at your spell-checking software!

3

Copy back salient points when replying to an earlier message.

Remember that your reader likely receives hundreds of emails a week.

When you combine that with faceto-face meetings and phone calls, it’s dangerous to assume your recipient will remember your earlier exchange.

Which of these messages has the greater chance for reader confusion?

Sure, sounds fine... Please proceed.” or “Sure, sounds fine... Please proceed.”

You wrote: Hi Jody, Are you okay with the proposed color scheme on the new brochure? I’d like to print it next week.

It’s frustrating when someone sends you an email, with a specific answer but you’re unable to recall the original issue. This problem is largely avoidable by copying a portion of the original message alluding to the context.

www.fiada.com

Considering the level of spam and anti-spam software in place today, you can’t afford to risk your message not being delivered because of a generic or poorly worded subject line. A subject line such as, “What do you think” doesn’t tell the recipient much. “Need suggestions for options on Acct #45619 - Robinson Inc.” is more specific. Remember, a legitimate message coming from your plant in Hong Kong advising you that “they’ve still had no luck increasing the prototype by 3 inches” is unlikely to ever make it past today’s spam filters.

5

Realize that once your message is sent, it’s difficult to recall.

Although some limited technology exists for recalling messages, it’s not universal. It’s possible to ruin their career with a single 60-second lapse in judgment, by sending the wrong message to someone.

Email is also ridiculously easy to edit and forward. Keep in mind that sending a message to one person can eventually be viewed by many other unintended parties. Always doublecheck the recipient line before sending any email. Horror stories about messages accidentally copied to “ALL” are becoming routine.

As a rule, it’s a good idea to never put anything in writing that a reasonable person would consider to be confidential or dangerous. If

your situation dictates you email such information, try to word your message in as factual and balanced a way as possible. As you write, imagine that the person you’re writing about eventually sees your message. Stick to facts, not opinions.

6

Practice the 24-hour rule when you’re upset.

It’s never a good idea to send an email when you’re angry. We’ve all been guilty of this. In the heat of the moment we type up a literary bombast. A message that will reduce the recipient to mush. We even reread it, and we’re actually sort of proud at how powerful the wording is. We imagine the recipient opening and cringing as he/she reads our words.

Then we send it.

Continued on Page 29.

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4

Use specific subject line descriptions.

Since many email messages go back and forth several times over the course of many weeks, it’s important to accurately describe what the reader will find inside.

Is it time to renew your Dealer Bond? Our online application is simple and easy with a quick turnaround time. Discounts for FIADA members may be available. Go to DealersInsurance.com today.

28 2014 28— —Independent IndependentDealer Dealer—January — October 2013

www.fiada.com www.fiada.com

EFFECTIVE EMAIL continued from Page 27.

Only later, after we calm down, we revisit the message and realize that we dramatically overreacted. But it’s too late to do anything now, except apologize and try to mend fences.

This is more common than you think.

If you compose an email in anger, wait a predetermined period of time before sending it. If your emotions are legit, then your issue will still be there tomorrow. But in 95% of the cases, you’ll be glad you waited and toned things down after you’ve gain the perspective that can only come with some additional time.

7

Avoid sh-cuts and abbr. in biz email msgs.

Anyone with a teenager knows you practically need a CIA decoder chart to understand the abbreviations and shortcuts that are popular in email and text messages. These cutesy short cuts and misspellings are ill advised to use in any corporate context, no matter if your customer is external or internal. Even common shortcuts like “LOL, BRB, OMG, 2, 4, SMH and u r” are simply too casual for most business communication. What’s hip to one sender can be read as flip and disrespectful by another reader. Since a casual message to a coworker could easily be forwarded, it’s best to practice the same high level of professionalism no matter who you’re writing to.

8

Don’t Forward Viral Messages.

What’s that you say? You’d only forward important messages on to your coworkers and friends? Not so fast. Unlike obvious computer viruses that involve actual destructive code, many messages are viral in nature, in that they are purposefully crafted so you’ll send them on to friends with the idea that you weren’t positive if this was real but wanted to be sure they saw it just in case!

Although not usually harmful, these emails prey on normally smart individuals desire to inform others.

Everyday, intelligent people who would never consider themselves gullible forward on hoax messages about: • Pending Congressional taxes on emails • Avoiding waking up in a hotel bathtub of ice - minus your kidneys • Easy steps for getting some of Bill Gates/Disney/AOL’s money • How to delete viruses from your PC (which are actually legit Windows’ files your system needs) • Child abductions at giant retailers • A royal widow begging you to look after her $18,000,000 if you’ll just give her your bank account number.

The list goes on. If you are the recipient of an email message you think is relevant to your friends and family, run it by this test: Copy and paste a few words from the message into Google along with the word “hoax.” If the returns come back showing articles claiming the message is a fake, save everyone in your address book some time by hitting the delete key! The same rule applies to jokes and pictures which would be deemed as inappropriate by your employer.

While there may not be a silver bullet that saves us from an onslaught of never ending messages, common sense practices can make our business email correspondence more effective and productive every working day.

Reprinted with permission of Telephone Doctor Customer Service Training. Nancy Friedman is a featured speaker at association, franchise & corporate meetings. She has appeared on OPRAH, Today Show, CNN, FOX News,Good Morning America, CBS This Morning & many others. visit: www. nancyfriedman.com 314.291.1012 or800.882.9911

www.niadaconvention.com www.fiada.com

April 2014 — Independent Dealer — 29

INDUSTRY NEWS Revised DOR Motor Vehicle Sales Tax Rates by State Available Section 212.08(10), Florida Statutes (F.S.), allows a partial exemption for a motor vehicle purchased by a resident of another state. The tax imposed is the amount of sales tax that would be imposed by the purchaser’s home state if the vehicle were purchased there; however, the tax imposed must not exceed the Florida six percent tax rate. The tax collected is Florida tax and must be paid to the Florida Department of Revenue.

The nonresident purchaser is required at the time of sale to complete Form DR-123, Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State, declaring his or her intent to license the vehicle in his or her home state within 45 days of the date of purchase. If the nonresident purchaser licenses the motor vehicle in his or her home state within 45 days from the date of purchase, there is no requirement that the motor vehicle be removed from this state.

The partial exemption for a motor vehicle sold in Florida to a nonresident purchaser does not apply to a nonresident corporation or partnership when: • An officer of the corporation is a Florida resident; or • A stockholder who owns at least 10 percent of the corporation is a Florida resident; or • A partner who has at least a 10 percent ownership in the partnership is a Florida resident.

However, the partial exemption may be allowed for corporations or partnerships if the vehicle is removed from Florida within 45 days after purchase and remains outside this state for a minimum of 180 days, regardless of the residency of the owners or stockholders of the purchasing entity.

Currently, the states of Arkansas, Mississippi, and West Virginia impose a sales tax on motor vehicles, but they DO NOT allow a credit for taxes paid to Florida. Residents of these states should be informed that they must pay sales tax to Florida at the rate imposed by their home state when they purchase a vehicle in Florida and must also pay tax to their home state when the vehicle is licensed in their home state.

Get a chart of tax by state, and further details, at http:// dor.myflorida.com/dor/tips/tip14a01-01.html.

Is Your Shop AC 609 Compliant?

As the summer quickly approaches, your shop will see an increased amount of vehicles with Air Conditioning issues.

Are you prepared? For the past ten years, the EPA has been enforcing guidelines for air conditioning technician and equipment certification. Now is the ideal time to review your AC 609 certifications. Review the following three items to make sure your shop is AC 609 compliant: 1. Review your training records. Have all of your AC technicians received the appropriate training, and are they up to date? If your facility owns refrigerant recycling/recovery equipment, it must retain onsite records for all certified air conditioning service technicians. Confirm with each employee if they have completed section 609 training. If so, obtain a copy of their certification.

2. File all technician proof of AC training. Once you have obtained proof of technician training for every applicable employee, you must keep their unique certification card on file for “Section 609” training. The EPA maintains a web-based list of currently approved training programs. Visit http://www.epa.gov/ozone/ title6/609/technicians/609certs.html for the complete list.

3. Update your equipment certification. You must certify in writing to the U.S. EPA that your shop has acquired (and is properly using) approved recovery/recycling equipment. You must also confirm that each individual authorized to use the equipment has been properly trained. The certification must include: • Name of the purchaser of the equipment.

• Address where equipment will be located.

• Manufacturer name and equipment model number.

• Serial number of the equipment.

A copy of the equipment certification form is available online at http://www.epa.gov/ozone/title6/609/mvac_cert_ form.pdf This article is provided by KPA, who provide Environment & Safety services for Auto, Agricultural /Heavy Equipment, Motorcycle, RV, and Truck Dealers. If you have additional questions, please contact KPA at info@kpaonline.com or 800.853.9659.

Have You Filed Your Report on Sunbiz.org?

Annual Reports are due each year between January 1st and May 1st. Be sure to file on time. All profit corporations, limited liability companies, and limited partnerships will be assessed a $400.00 late fee after May 1st which cannot be waived. For more information or to file, visit http://sunbiz.org/.

Do not confuse “Annual Minutes” or “Annual Corporate Record Forms” notices with the Florida Department of State’s required Annual Report filings. These notices, which solicit a fee of $125, are NOT from the Department of State or any other state or federal agency. Please disregard these notices. Neither form is required by this office or any other state or government agency.

30 — Independent Dealer — April 2014

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2013-2014 FIADA EXECUTIVE COMMITTEE:

DINO MERCURIO President Independent Credit, Inc. West Palm Beach, FL (561) 686-8673

JIM WINTERICK, SR. CHRISTOPHER LEEDOM Phil Risley Senior Vice President Chairman of the Board Secretary Gulfstream Motor Credit AutoMaxx Cars & Credit of Jacksonville Miami, FL Sarasota, FL Jacksonville, FL (305) 253-2335 (941) 309-1111 (904) 616-4074

Lisa Compagno Regional Vice President Palm Tree Auto Sales Stuart, FL (772) 288-2099

FRANK FUZY Regional Vice President Century Motors of S. FL Pompano Beach, FL (954) 785-0369

STEVE MARBAIS GEORGE HICKEY Regional Vice President Regional Vice President Marbais Enterprises, Inc. Bond Auto Sales Ocoee, FL Tampa, FL (407) 877-7422 (813) 238-7478

PAUL MATTON Treasurer Park Auto Mall Pinellas Park, FL (727) 639-1112

Govinda Romero Regional Vice President Autoflex LLC Gainesville, FL (407) 468-9974

• Higher Advance than Factoring

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April 2014 — Independent Dealer — 31

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4

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

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

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32 — Independent Dealer —April 2014

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