Information and Insight for Florida Used Car Dealers
MAY 2019 www.FIADA.com
W H AT A
TEAM! F I ADA/ NI A DA
FIADA and NIADA have been working together for over 70 years. It's a relationship that only gets better with age. Go One on One with NIADA CEO Steve Jordan on PAGE 14.
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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 Brad Joel President
Contents May 2019
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 Brad Joel
6
Executive Director’s Message Lisette Mariner, CAE
10
Back to Basics Terry Myers has a pro tip that could save you a lot of money.
14
One on One With NIADA NIADA CEO Steve Jordan sits down with Independent Dealer to talk about the National Association as well as his Sunshine State roots.
Jim Winterick, Sr Regional Vice President
16
2019 FIADA Annual Convention The Keynote Speaker is announced! Reserve your room now at the Rosen Plaza Hotel to get the group discount.
FIADA STAFF Lisette Mariner, CAE Executive Director
18
Membership News
20
FIADA Town Hall and Board Meeting Take a look at the April Town Hall and Board Meeting held in St. Augustine. Get ready for the next one coming up in July.
Lisa Compagno Senior Vice President Scott Lanier, CMD Chairman of the Board Frank Fuzy Secretary Jenay Rhoads Treasurer Luis Giraldo Regional Vice President Brandi Noegel Regional Vice President Steve Marbais, CMD Regional Vice President Trever Varney Regional Vice President
Terry Myers Educational Instructor Jason Berthiaume Education and Events Manager Jodi Eubanks Membership Coordinator Christy Taylor Editorial/Advertising
POSTMASTER:
Send address changes to
FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Call/Text: (800) 237-0448 Fax (850) 385-3251 • www.FIADA.com The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308 The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.
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22 What You Need to Know Before Disciplining or Terminating an Employee Whether you have a HR Department, or you are the one in charge of employee relations, be sure to remember these best practices. 24
From the Road Executive Director Lisette Mariner starts her road trip at Manheim Orlando and Adesa Orlando.
26
Can Customer Feedback Protect Your Dealership? Encouraging customers to give their feedback can actually help your dealership, even if it's a negativec comment.
28
A Look At Current Legal Issues Attorneys Tom Hudson and Nicole Munro's monthly collection of legislative and regulatory highlights to keep you in compliance.
30 Industry News News and headlines of interest to the Florida Used Car Industry and beyond. May 2019 — Independent Dealer — 3
FROM THE PRESIDENT
I Guess I'm a Wanted Man BY BRAD JOEL, FIADA PRESIDENT
J
ust call me Bullseye. Check out my poster on page 23. The theme for the FIADA Annual Convention this year is the Old West, so we thought we would have some fun promoting it with these wanted posters. Last month our Convention Chair Ellen "Wild Woman" Westpfahl was featured. Lisette found her at the auction and sent us a selfie. (Check it out on page 24.) Each month we will have a new wanted member, and if you see him or her please do the same. Snap a selfie and post it on our Facebook page. I hope you are as excited about the Annual Convention this year as I am. October may sound like a long time from now, but I promise you it is not. I would encourage you to go ahead and book your room at the Rosen Plaza Hotel. We have all the details on page 16, including the discount rate and phone number to call to make your reservation. The Rosen Plaza is right in the middle of the famous International Drive in Orlando, a perfect location if you want to squeeze in a little family vacation at the same time. As we start to dive in to the summer, I would say go ahead and register for the Convention. It will give you something to look forward to. We've also announced our keynote speaker, Steve Gilliland. Steve is funny and smart and plans to talk about the difference between being purpose-driven and processdriven. I think we will all learn a lot from his presentation that we will be able to bring home and see real results from. Stay tuned in the next few issues as we add more sessions and speakers to the line-up. You can also follow convention information as it is updated online at www. fiada.com/convention. We had our second Town Hall meeting of the year in St. Augustine last month, and it did not disappoint. The Town Hall meetings are always informative and helpful. Special thanks to our sponsors for helping to make this a 4 — Independent Dealer — May 2019
free event for dealers. We have some pictures on page 20 and you will see a good-sized crowd enjoying a full day's worth of information. I hope you will all come out for the next Town Hall on July 19 at the Grand Hyatt Tampa Bay. Our Legal Counsel Rob Sickles will be there to give a legal update, and as many of the new laws that were just passed will go into effect on July 1, you will get the right information to stay on top of it all. As FIADA President this year, I have stayed pretty busy attending meetings, trainings, conventions and seminars. It has really given me some perspective on just how much this Associaiton does for dealers. If you are a member and you are not taking advantage of these things, then you really are not getting the maximum benefits of your membership. I know a lot of dealers are initially interested in getting the coupons when they turn in their application, but there is so much more available. Make it your mission before the year is through to attend at least one FIADA event. I know you will be glad you did. Brad Joel FIADA President
MARK YOUR CALENDAR: FIADA Treasure Coast Cocktail Reception May 28, 2019 | The Twisted Tuna, Stuart Town Hall Meeting July 19, 2019 | Grand Hyatt Tampa Bay Board of Directors Meeting July 20, 2019 | Grand Hyatt Tampa Bay Annual Convention & Expo October 17-19, 2019 | Rosen Plaza Hotel, Orlando www.fiada.com
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May 2019 — Independent Dealer — 5
EXECUTIVE DIREC TOR’S MESSAGE
2019 Legislative Wrap-Up BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR
T
he 2019 Florida Legislative Session ended Saturday May 4, after the mandatory 72-hour cooling off period for the budget. Overall there were 3,494 bills filed this year. Lawmakers approved 196 bills this year, setting a record for the fewest bills passed (at least since 2001). The amount of bills passed has been steadily declining. This is probably a good thing, but it also reflects the use of “trains,” strikeall amendments, and adding brand new issues to bills at the last minute, things that certainly occurred this year. Still, there was some good legislation that passed and, as always, some missed opportunities and some great ideas that became less so as the process wore on. The Governor has already signed 22 of these bills. Most have not yet been sent to the Governor. I’d like to thank the Legislative Committee for their participation and guidance this year. A special thanks to legislative chair, Dino Mercurio, legal counsel, Robert Sickles, and our lobbyist Sandra Mortham for being available at a moment’s notices and your leadership throughout this process. With so many bills becoming vehicles for everyone to get their own agenda passed, it was an amazing feat. At one point there were 47 amendments that were filed on a bill we were monitoring. A priority this year was 6 — Independent Dealer — May 2019
to have electronic titles recognized as a form of ownership and maintaining lienholder rights in storage and towing laws. We were successful in adding language to accomplish those goals. We monitored over 25 bills this year. Some of the notable bills include certificate of title, school choice, liens against motor vehicles, transportation and more. If you deal in rebuilt vehicles, you know that the pilot program sunset last year. House Bill 385 passed, and it had language to reestablish the rebuilt program in Miami Dade only. This 82-page bill went through several changes before finally passing with this language. Another controversial
bill was an education package that contained changes regarding the HOPE Scholarship Program. This education package contained another tax credit program named Family Empowerment Scholarship Program. Like the HOPE scholarship, the Family Empowerment Scholarship was established to meet the unmet need by scholarships that are currently available. It also allows for any excess funds in the HOPE fund to be transferred to another scholarship. Look for a new form to be distributed by the Department of Revenue to address this new program. The final tax package (HB 7123) included a reduction in the business rent tax from 5.7% to 5.5%. Continued on page 8.
SPECIAL THANKS TO THE FIADA LEGISLATIVE COMMITTEE: Chair: Thomas Mercurio, Prime Autos Legal Counsel: Robert Sickles, Nelson Mullins Broad and Cassel Lobbyist: Sandra Mortham, Mortham Governmental Consultants Dexter Beard, Dakota Truck Sales Andrew Bell, Orange Auto Tag Agency Lisa Compagno, Palm Tree Auto Sales John Cousins, Southeast Car Agency, Inc. Bob Cousins, Southeast Car Agency, Inc. Brad Joel, Splish Splash Auto Sales, Inc. Scott Lanier, Credit Cars Dennis LeVine, Kelly Kronenberg, Attorneys at Law Steve Marbais, CMD, Marbais Enterprises, Inc.
Matt McGill, Ray's Motor Sales, Inc. Terry Myers, Florida Auto Dealer School Brandi Noegel, Noegel's Auto Sales Jenay Rhoads, Florida Auto Exchange Co. Kevin Scott, Dealer Consulting, LLC Vanessa Simpson, All American Bonds & Insurance Teri Wallington, Enterprise Rent A Car Ellen Westpfahl, Manheim Orlando-Central James Winterick, Gulfstream Motor Credit Co. www.fiada.com
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May 2019 — Independent Dealer — 7
Legislative Wrap-Up continued from Page 6.
The original House bill proposed a reduction to 5.35%. SB 1112 had proposed using added revenue to address the non-collection of sales taxes on remote sales to reduce the business rent tax to 3.5%, but the House refused to take on this issue. In the wake of the US Supreme Court’s Wayfair decision, Florida is still one of only four states that has not acted on remote sales tax collection.
vehicle available for inspection; revises requirements for transfer of title; authorizes lienor to charge administrative fee; revises requirements for notice of lien for recovering, towing, or storing vehicle or vessel; revises requirements for notice of sale; revises requirements for transfer of title; requires certain entities to use third-party service to provide notices. Effective Date: January 1, 2020
Here are some bills that impact dealers that passed and are heading to the Governor:
HB 475 Certificates of Title for Vessels, Williamson Certificates of Title for Vessels: Revises & provides requirements for application for and issuance of certificate of title for vessel; revises & provides duties of DHSMV related to issuance, renewal, replacement, or cancellation of certificate; revises & provides requirements for transferring ownership interest; provides requirements related to security interest in vessel; provides for rights of vessel purchasers; provides for repeal of certain provisions on specified dates; provides that principles & law of equity supplement provisions of act; authorizes DHSMV to adopt rules; provides construction & applicability regarding transactions, certificates of title, & records entered into or created, actions or proceedings commenced, & security interests perfected before effective date of act. Effective Date: July 1, 2023
HB 87 Registration and Titling of Vehicles and Vessels, Ponder Registration and Titling of Vehicles and Vessels: Revises registration periods for certain vehicles; requires DHSMV to prorate registration renewals for customers; authorizes DHSMV or its agent to verify necessary information through electronic file of death records maintained by DOH for surviving spouse of motor vehicle owner when requesting registration certificate & license plate transfer or for new owner or surviving co-owner of vessel when applying for transfer of title. Effective Date: July 1, 2019 HB 385 Transportation, Avila Transportation; Requiring certain counties to use surtax proceeds only for purposes related to fixed guideway rapid transit systems, rail systems, bus systems, development of dedicated facilities for autonomous vehicles, and certain services; authorizing a percentage of surtax proceeds to be distributed to certain municipalities to be used for certain purposes; authorizing an electronic copy, instead of a true copy, of rental or lease documentation issued for a motor vehicle or issued for a replacement vehicle in the same registration period to be in the possession of the operator or carried in the vehicle and exhibited upon demand of any authorized law enforcement officer or agent of the department; authorizing the department to establish a program for transportation projects that demonstrate certain innovative techniques for measuring resiliency and structural integrity and controlling time and cost increases, etc. Effective Date: July 1, 2019 HB 431 Liens Against Motor Vehicles and Vessels, Fischer Liens Against Motor Vehicles and Vessels: Authorizes person claiming lien against motor vehicle to obtain release of vehicle from lien claimed by motor vehicle repair shop; prohibits repair shop from violating certain provisions; revises notice requirements for enforcing lien by sale of motor vehicle; revises requirements for notice of lien & notice of sale; requires lienor to make motor 8 — Independent Dealer — May 2019
HB 725 Commercial Motor Vehicles, Payne Commercial Motor Vehicles: Repeals assistive truck platooning technology pilot project; revises provisions relating to platoon vehicle operation, commercial motor vehicle safety regulations & penalties, apportionable vehicle requirements, certain license plate fees, vehicles registered under International Registration Plan, & theft of certain commercial cargo; authorizes DHSMV to partner with tax collector to conduct Fleet Vehicle Temporary Tag pilot program. Effective Date: October 1, 2019 HB 1057 Motor Vehicles, McClure Motor Vehicles; Revises provisions relating to motor vehicle lamps, lights, & warning signals; provides requirements & penalties; revises requirements for release statements & pickup notices for damaged or dismantled motor vehicles; authorizes entity that processes certain transactions or certificates for derelict or salvage motor vehicles to be authorized electronic filing system agent; authorizes DHSMV to adopt rules. Effective Date: October 1, 2019 CS/SB 7070 K-12 Education, Education Committee K-12 Education; Revising the programs through which certain parents may seek private educational choice options; providing that charters may include www.fiada.com
a provision for charter schools to be held responsible for all costs incurred by the district in connection with complaints to the Office of Civil Rights or the Equal Employment Opportunity Commission; establishing the Family Empowerment Scholarship Program; revising eligibility requirements under the Florida Tax Credit Scholarship Program for certain students; creating the Florida Best and Brightest Teacher and Principal Allocation, etc. Effective Date: July 1, 2019
from 18 to 21; parental consent for minors to get an abortion; asking voters to repeal the Constitution Revision Commission; and asking voters to raise the threshold to pass a constitutional amendment from 60% to two-thirds. It’s never too early to get started, the 2020, legislative session is slated to begin January 14 and end March 13th. I would urge you to get to know your local legislators this
summer and help us by contributing to the FIADA PAC fund. The FIADA PAC fund is utilized to elect probusiness leaders in the Florida House and Senate. Let me know if you need assistance in getting to know your local legislator. Making a contribution to the PAC is easy, just visit www.fiada.com and on the legislative tab click on FIADA PAC. No contribution is too big or too small. We appreciate your support!
Other Legislation that Passed and Failed Some of the other major pieces of legislation that passed include: implementing recommendations of the Douglas High School Public Safety Commission, including the controversial provision to allow armed teachers (voluntary for both the school district and teacher); allowing for the creation of three new toll roads (priority of the Senate President); the Red Tide Mitigation and Technology Development Initiative; establishing the Canadian and International Prescription Drug Importation Programs (subject to federal approval; promoting autonomous vehicles: making it harder to for citizens initiatives to make it to the ballot; implementing a constitutional amendment designed to restore the voting rights of felons who have fulfilled their sentence; overhauling the controversial insurance practice known as “assignment of benefits.”; eliminating a ban on smokable medical marijuana; providing cancer benefits for firefighters; and the creation of an agricultural hemp program. Some of the high-profile bills that failed include: a fracking ban; raising the age to buy tobacco www.fiada.com
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BACK TO BASICS
One Inexpensive Way to Avoid a $30,000.00 +/Mistake BY TERRY MYERS
A $2.50 report can end up saving you tens of thousands of dollars.
H
ow might $2.50 save you from a costly mistake? ‘NMVTIS’, the National Motor Vehicle Title Information Service receives updates daily and shares vital information on that ‘deal’ you are about to invest in. Smart dealers check the NMVTIS website portal for every used vehicle purchase decision. Cloned vehicles, flood vehicles, brands, odometer roll backs are just a few of the many hidden dangers that could be discovered and help keep the dealer from paying the wrong price for a vehicle or worse, end up in a major lawsuit because the customer discovered something the dealer should have known about or revealed at the time of the sale. Trusting in Car Fax and/or auction resources, for example, may have conflicting or missing vital or valuable additional information. If the vehicle has a ‘brand’ such as, for example ‘rebuilt’ the dealer must enter that brand in section 3 of the HSMV 82040 and have the customer sign a separate affidavit acknowledging the vehicle purchased has a ‘rebuilt brand’. If the vehicle is advertised the ‘brand’ must be revealed in the advertisement. It does not matter if the dealer did not check and did not know. The dealer is still held to a higher standard then the customer. Not looking does not relieve the dealer of legal responsibilities, such as omitting material facts. Not every vehicle that qualifies for a ‘brand’ will have a ‘brand’ on the title presented. Think ‘washed titles’ or an insurance claim that was not made. When the dealer does the history report he/she may discover the vehicle being considered for purchase was titled in Louisiana during Katrina, for instance. The vehicle may have been flooded but the owner did 10 — Independent Dealer — May 2019
not report it to the insurance company. Some owners, especially those that do not have insurance, will clean the vehicle and take it another state to offer it for sale. The smart dealer will recognize this information as a major hint and then look very closely at the vehicle for evidence of having been flooded. The states and NMVTIS cannot report what has not been reported to them. FIADA approved vendor Auto Data Direct, (www.add123. com) offers their dealer customers access to this reporting service for $2.50, each report. You can pay more to another vendor, if you like. Before purchasing, also check the vehicle’s VIN in the window, on the door and at least one other place to minimize purchasing a ‘cloned’ vehicle. Some examples of bad experiences follow, one of which involves a dealer who bought and sold a cloned vehicle: These are worth watching. It is a bigger problem than you may think.
Cloned Cars
A YouTube video (https://www.youtube.com/ watch?v=uGbKhr7woaU) reveals three instances of cloned vehicles being removed from the driveways of unsuspecting owners, one of which brought the vehicle from a licensed dealer. That owner cannot afford another vehicle and is now riding the bus. Think bond claim against the dealer. Good news is the four minute video also shows one person in Miami-Dade being arrested. Another short YouTube video, this one from GMA INVESTIGATES (https://www.youtube.com/ watch?v=hOtHHWP3H50), is about a vehicle stolen from a WPB dealer’s lot. Seven years go by and at a dealership in Massachusetts a history report shows the vehicle has been in several accidents and multiple states, which the Continued on page 12. www.fiada.com
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Avoiding a $30,000 Mistake continued from Page 10.
unsuspecting seller was not aware of, since he has been the registered owner those same years. Luckily for the dealer, he did a history report. Unluckily for the person wanting to trade the vehicle in for another, the NICB, National Insurance Crime Bureau. This is vehicle stolen seven years ago from the WPB dealer. The investigator stated the average loss is about $30,000.00 per vehicle and $12,000,000.00 a year. Since the licensed dealer is held to a much higher standard than the consumer, mistakes can be very expensive. In Florida, the dealer may run the VIN number on a vehicle and obtain for free the status of a vehicle within FRVIS, Florida Realtime Vehicle Information System, Florida’s state database. You want the national database history for the vehicle, to get a more complete picture. In addition to knowing which state the vehicle is actually registered in, ADD123 can allow immediate access into 34+ state databases. Where do I find the NMVTIS website? https://www.vehiclehistory. gov/ open the portal where history information is stored and updated daily.
NMVTI has a F.A.Q section. A couple of examples follow: What kind of information will I receive in a NVMTIS vehicle history report? NMVTIS records provide: • current and previous state of title data • title issue date • latest odometer data • theft history data (if any) • any brand assigned to a vehicle and date applied • salvage history, including designations as a "total loss" (if any) How is the information accessed through NMVTIS different from private vendors who provide this information as well? NMVTIS information made available to consumers is from state motor vehicle agency records and entire sectors (e.g., insurance, auto recyclers/junk/salvage, etc.) addressed by the Anti-Car Theft Act. As opposed to purchasing information from specific businesses or companies, entities are required to provide specific information to NMVTIS in a specific format. NMVTIS is intended to serve as a reliable source of title and brand
history for automobiles, which helps consumers make informed decisions before purchasing a used vehicle. However, there are certain pieces of vehicle history data that NMVTIS does not contain; for example, a vehicle's repair history. Before making a decision to purchase a vehicle, consumers may wish to obtain an independent vehicle inspection and consult other available information resources that provide additional vehicle history data. What must the dealer do with adverse information discovered and advertises and/or makes a sale to the customer? Adverse information is something the dealer is best advised (ask and attorney) to share with customer as required by law and if not required by law then get something in writing where the customer acknowledges they were informed and used that information in their decision to purchase the vehicle. Note: anything you have the customer sign should be reviewed by your attorney, before it is offered to the customer(s). Taking a pro-active approach with the customer improves the trust relationship and increases the opportunity for a sale and potentially, a long-term customer, referrals and the kind of results the dealer desires and deserves. Articles are the opinion of the author and are not intended to be legal or accounting advice. The intent is to share thoughts and concepts that help the business owner(s) find new and perhaps revisit, ways to be as successful as they are capable of being. Terry can be reached at (727) 804-7375. Email: tmyers@ floridaautodealerschool.com. Feedback is appreciated and encouraged. Terry LB Myers, author, lecturer, FIADA instructor, FADS owner/instructor.
12 — Independent Dealer — May 2019
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MEMBER BENEFITS
one –on– one with NIADA
T
Steve Jordan, Chief Executive Officer
he partnership between the FIADA and the National Independent Automobile Dealers Association has always been strong. Working together, the two associations have been able to provide dealers the benefits, services, support and protection on both the state and national level for the past seven decades. NIADA's current Chief Executive Officer Steve Jordan has a unique perspective leading the national organization as it was his career experiences in Florida that prepared him for the job.
What is your primary responsibility as CEO of the National Independent Automobile Dealers Association? Essentially, my role as CEO is to implement the policies of the NIADA Executive Committee. As the NIADA CEO, I also serve as the president of the NIADA Services Board and President of the NIADA Foundation Board of Trustees, both separate corporate entities. It’s a unique and humbling position that allows me to work concurrently with the governing board in the development of policy and our talented association staff to manage the day to day operations towards the fulfillment of the association’s mission, strategic vision and specific board directives. Generally, I am responsible for maintaining and expanding the association’s programs in governmental affairs, public relations, member services, association publications and coordinating activities with NIADA’s state affiliate organizations around the country. What is your vision for the future of NIADA? The vision is to keep winning by carrying out the NIADA strategic plan. NIADA has grown a lot over the last few years and I want to keep that momentum going by innovating and finding more ways to better serve our members and the used motor vehicle industry. Specifically, NIADA’s vision for the future revolves around five strategic priorities: 1. Advocacy and Government Affairs: continuing our success in Washington, D.C. and with the federal 14 — Independent Dealer — May 2019
2.
3.
4. 5.
regulatory agencies that provide oversight of our industry. Providing opportunities for our members to tell their story to Dealer Development & Education: providing the best dealer training programs, boot camps, seminars, 20-Groups, conferences and conventions to allow our members to be best in-class, profitable and compliant. Member Benefits Programs: connecting our members with top-notch companies in the automotive industry that can provide products, services, discounts, financing, and other opportunities. Supporting State Associations: growing membership through our state affiliated partners and ensuring their sustainability. NIADA Foundation: serving the dealer community with disaster relief funds, scholarships, educational endowments, and contributions to charitable organizations that mirror the giving interests of our members.
How does Florida fit into that plan? Florida is a huge part of that plan. As a top 10 state in membership, Florida’s members and dealers have a big influence, directly and indirectly, on the NIADA narrative. Florida has historically been a great feeder of national leadership and accolades as several NIADA past presidents, National Quality Dealers of the Year, and other national leaders have been from the Sunshine State. www.fiada.com
You have a special relationship with Florida, as you were the Executive Director of FIADA before heading to NIADA. How did your experience in Florida prepare you? My time at Florida was invaluable experience, not only at FIADA, but the six years prior to that as the managing partner of J.D. Byrider in Tallahassee. Our dealer group was based in Jacksonville. I can honestly say, that my combined experience on the retail, dealer level and the Executive Director of the FIADA are the two essential pieces of experience that have prepared me the most in my role as the NIADA CEO. Understanding the operational concerns first-hand that many dealers have, and knowing how to translate those concerns into relationships with legislators, regulatory agencies, member benefit providers and the industry, helps me tell the dealer story. How do the state associations and NIADA work together to benefit dealers? Understanding the role the State Associations play in the overall NIADA mission and vision is critical. From membership, to advocacy, to member engagement, our current association structure is dependent on the successful relationships NIADA has with its various state associations, especially in Florida. It’s important to have a dual layer of advocacy at the state level and at the national level to better protect the interests of our members and industry. We often see issues that could affect the dealer community at the state level rise to the national level and vice-versa. We’ve been actively engaged at both levels with issues like safety recalls, GPS usage, compliance, collection practices and many more. Our industry is definitely better when we work together! What can dealers look forward to at this year’s NIADA Annual Convention? A packed house, a sold out exhibit hall and more training and education than we’ve ever had. I’m super excited about this year’s convention going back to Las Vegas to the Venetian | Palazzo. We are coming off last year’s first combined NIADA | NABD Mega Conference in Orlando riding high and looking to top last year’s show in attendance and networking. It’s going to be a great show that Florida dealers do not want to miss. What sessions and speakers are you most excited about? I’m really looking forward to the Keynote Marketplace Series of speakers on Tuesday. Neill Bradley, EVP of the US Chamber of Commerce, will give an update on the American Small Business that will be really interesting and Dave Anderson is back again this year talking about Accountability. Also, excited to hear from Sarah Robb O’Hagan the former Global President of Gatorade talking about her ups and downs in the global business world. There’s plenty of others, but those jump out at me. Mostly though, I’m most excited about reconnecting www.fiada.com
Steve Jordan at the podium during last year's NIADA | NABD Mega Conference in Orlando.
with great friends and colleagues in the industry. Our attendee list reads like a who’s who of dealers and industry leaders. It’s always like “old home week” and this year will be no different. Give us your take on the “state of the industry.” Are used cars still an industry for entrepreneurs to enter into and be successful at? Overall the State of the Industry is strong. Of course dealers are seeing their fair share of challenges as the cost of doing business increases. Higher interest rates, tight labor markets bringing us statistically to full-employment and higher wages are all squeezing profit margins. Dealers I talk to are cautiously optimistic about the upcoming quarter and the remainder of 2019. The average cost of a new car is climbing towards $35,000 per unit and full-employment is creating consumer confidence to buy. As these newly confident buyers evaluate the average prices of new cars and the cost of money to finance, it is creating more demand for used vehicles. NIADA’s Quarterly Business Confidence Survey also supports this optimism as forty percent of respondents said they plan to expand their dealership operations in the coming quarter. There are a lot more to the state of the industry and plenty of moving parts to successfully owning and operating a dealership, as our members know. On balance, though, I continue to say I think it’s a great time to be in the car business and a member of FIADA…and NIADA, by extension. May 2019 — Independent Dealer — 15
WANT TO GO AHEAD AND BOOK YOUR HOTEL?
You can reserve your room at the ROSEN PLAZA HOTEL by calling 1-800-6278258 and requesting the GROUP rate for "Florida Independent Automobile Dealers Association, FIADA Annual Convention & Expo" or through the FIADA Group Page found at FIADA.com. Reservations must be made by September 16, 2019 in order to qualify for the group rate of $159 (plus tax).
KEYNOTE SPEAKER: STEVE GILLILAND Steve Gilliland is one of the most in-demand and top-rated speakers in the world. Recognized as a master storyteller and brilliant comedian, he can be heard daily on SiriusXM Radio’s Laugh USA and Jeff & Larry’s Comedy Roundup. With an appeal that transcends barriers of age, culture and occupation, Steve shows audiences how to open doors to success in their careers, their relationships and their lives. Steve built a multimillion-dollar company from the ground up on the same philosophy he expounds to his audiences: If you continually learn more about your company, your industry, your customer and yourself, you will always be a leader.
Get details and updates at FIADA.com/convention 16 — Independent Dealer — May 2019
www.fiada.com
2019 FIADAOCTOBER ANNUAL17-19, CONVENTION REGISTRATION FORM 2019 | ROSEN PLAZA HOTEL COMPANY INFORMATION Company:____________________________________________________________________________________________________________ Address:_________________________________________________________ City, State, Zip:________________________________________ Phone:___________________________________________________________ Mobile:______________________________________________ E-mail:__________________________________________________________ Website:_____________________________________________
REGISTRATION INFORMATION FULL ACCESS PASS (Includes all events and meals)
EARLY BIRD (2/1 - 8/31)
Badge Name:_____________________________________________________________
MEMBERS
[
] $249
REGULAR (9/1 - 10/9)
[
] $299
ON-SITE (10/10 - 10/19)
[
] $349
NON-MEMBERS [ ] $299 [ ] $349 [ ] $399 ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:_____________________________________________________________
[
] $195
[
] $195
[
] $195
Badge Name:_____________________________________________________________
[
] $195
[
] $195
[
] $195
[
] $100
[
] $100
[
] $100
[
] $175
[
] $200
[
] $225
SPOUSE FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:_____________________________________________________________ Tickets to the Annual Banquet are included with all Full Access Passes. For our planning purposes, will you and your guests be attending the Annual Banquet on Saturday evening?
Yes
No
ONE-DAY PASS* (Please choose which day) *You must attend both days of the convention in order to obtain continuing education credit.
[
] Friday
[
] Saturday
MEMBERS
NON-MEMBERS [ ] $200 [ ] $225 [ ] $250 FULL 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. CHILD REGISTRATIONS AVAILABLE Contact FIADA at (800) 237-0448 for details and to register.
TOTAL:
$
PAYMENT INFORMATION [
] 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 Monday, September 2, 2019, we will refund your registration fee. If cancellation is received between 9/3/19 and 9/30/19, we will refund your registration fee less a $25 processing fee. Fees cannot be refunded for registrations canceled after 9/30/19 or for no-shows. PHOTO/VIDEO/TEXT RELEASE: By registering for the 2019 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. By providing your mobile number, you agree to receive convention-related texts from FIADA.
HOTEL INFORMATION Rosen Plaza Hotel, 9700 International Dr, Orlando, FL 32819. Hotel stay is separate from convention registration. Reservations must be made by SEPTEMBER 16, 2019 to qualify for group discount of $159 per night (plus tax) For reservations call (800) 627-8258.
Return this completed form: Mail: FIADA, 1840 Fiddler Court, Tallahassee, FL 32308 Fax: (850) 385-3251 Register: Online: www.FIADA.com Call/Text: (800) 237-0448 www.fiada.com
May 2019 — Independent Dealer — 17
MEMBERSHIP NEWS
New Members
APRIL 2019
1 STOP AUTO WHOLESALE, INC Hialeah, FL Sponsor: FIADA
EAST WEST MOTORS Deland, FL Chris Calabucci Sponsor: FIADA
LADY LAKE AUTO SALVAGE Lady Lake, FL Desiree Owens Sponsor: FIADA.com
MCAUTOSALESLLC Jacksonville, FL Fereydoun Cham Sponsor: DMV
EMINENCE MOTOR SOLUTIONS INC. Tampa, FL Anthony Gennaro Sponsor: FIADA
LIFE IS GREAT INC Jacksonville, FL James Meyer Sponsor: iDrive on Demand
Tallahassee, FL Debbie McEachin Sponsor: FIADA
ETAGS Ft. Lauderdale, FL Aaron Cohen Sponsor: FIADA
M I D OVERSEAS INC DBA CAR UZD Fort Lauderdale, FL Michel Makhoul Sponsor: Jodi Eubanks
ALEJANDRO FINANCIAL LLC Miami, FL Nestor Alonso Sponsor: FIADA ALH AUTOMOTIVE LLC Tallahassee, FL Andrew Harris Sponsor: FIADA ARENA AUTO SALES, INC. Holly Hill, FL Amy Arena Sponsor: FIADA CREATIVE AUTO GROUP LLC Tampa, FL Andre Flowers Sponsor: Terry Myers
EZ MOTORS OF TAMPA Tampa, FL Josephine Pena Wilson castillo Sponsor: FIADA MELZOR HILL Wimauma, FL Sponsor: Terry Myers
Rejoining Members ABSOLUTE SYSTEM DBA ABSOLUTE MOTORS Jacksonville, FL Sergey Rusev Sponsor: FIADA
PIRATE MOTORCARS OF THE TREASURE COAST
Stuart, FL Kathryn LaBar Sponsor: Terry Myers
PREMIUM CARS OF MIAMI
Miami, FL Reynaldo Brito Sponsor:FIADA.com
Ocala, FL Grodonoff Nelson Sponsor: VEMO Auto Auction
ANGEL TIRADO
Apopka, FL Sponsor: Terry Myers
TRRA MOTORS LLC
Tallahassee, FL Ulonda Benjamin Sponsor: FIADA
TSI TRUCK SALES
Lake Wales, FL Maria Torres Sponsor: FIADA.com
RHANDI WHITE
Clermont, FL Sponsor: Terry Myers
APRIL 2019
FLEXPLUS, LLC Longwood, FL Susan Andrews Sponsor: FIADA
Renewing Members
MARCIANO AUTO GROUP INC Delray Beach, FL Frank Marciano Sponsor: FIADA
MYPAYROLLSITE.COM LLC
PROFESSIONAL VARIETY SERVICES LLC
GOT CAR AUTO BROKERS LLC Hollywood, FL Theo Xidis Sponsor: Jodi Eubanks
GRANT CAR CONCEPTS INC Orlando, FL Eduard Grant Sponsor: FIADA
MOTORCARS OF DISTINCTION Riviera Beach, FL Piero Navarro Sponsor: FIADA
APRIL 2019
30+ Year Members Mancini Automotive, Inc. 10+ Year Members Millenia Motors, Inc. Under 10 Year Members AutoMax Ocala Big Truck Rental LLC Braun Autowerkes Inc Bud Lawrence Inc Car Credits Carrio Motor Cars
Hudson, FL Longwood, FL Ocala, FL Tampa, FL Lake Park, FL Deland, FL Tampa, FL Lauderdale Lakes, FL
Centec Equipment Sales Charles A Krblich, PA, CPAs Dakota Truck Sales Jimmies Auto Sales Miracle Motors LLC PassTime PFS Financial Services of Florida ProGuard Warranty Inc Sanfer Sports Cars, Inc. Steve's Auto Repair Synergy Auto Deals Tesco Equipment LLC United Auto USA Corp
Sarasota, FL Fort Lauderdale, FL Sioux Falls, SD Madison, FL Allentown, PA Littleton, CO Tampa, FL Pittston, PA Miami, FL Sarasota, FL Davie, FL Coral Springs, FL Doral, FL
GET FIADA BENEFITS ON THE GO Don't forget the App! Download the FIADA app now to get access to all of your FIADA benefits whenever you need them.
18 — Independent Dealer — May 2019
www.fiada.com
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May 2019 — Independent Dealer — 19
FIADA TOWN HALL & BOARD MEETING
20 — Independent Dealer — May 2019
Dealers came to St. Augustine April 12 for the FIADA quarterly Town Hall Meeting, sponsored by ADD, Wayne Reaves, GEMS and ACV Auctions. The Board of Directors met the next day on April 13. Be sure to mark your calendar for the next Town Hall meeting on July 19 in Tampa, FL.
www.fiada.com
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May 2019 — Independent Dealer — 21
HUMAN RESOURCES
What You Need to Know Before Disciplining or Terminating an Employee BY THE HR PROS
Eight tips on how to handle the difficult task of reprimanding or firing an employee.
T
he prospect of corrective action or termination makes a lot of managers nervous. That’s understandable. For employees, being disciplined or losing their job can be anything from moderately embarrassing to financially devastating, but it’s rarely a happy occasion. For the employers, these actions always come with some risk, and there are plenty of legal danger zones an employer can end up in if corrective action isn’t done properly. Here are some tips from our HR Pros to help you avoid these pitfalls and make corrective action productive for everyone:
1. Everyone in the organization, but especially those responsible for disciplining or terminating employees, should understand exactly what the organization’s policies are. When policies aren’t clear or people don’t understand them, their enforcement can become inconsistent and subject to bias. In these circumstances, discipline and termination will appear unfair. Worse, they may open the organization up to costly discrimination claims. 2. Managers should follow consistent disciplinary 22 — Independent Dealer — May 2019
Being fair and courteous when talking with an employee is a must. Employers should be honest and clear about the reason for termination.
practices. Management meetings are a good time for the leadership team to make sure they’re using the same practices for discipline and termination. Inconsistencies in the organization, as noted above, can lead to allegations of discrimination. 3. Investigate allegations before you act on them. Sometimes, in a rush to correct wrongdoing or poor performance, a manager will discipline an employee after hearing only one side of the story. For example, a restaurant
customer complains about rude service, and the server is immediately terminated and given no chance to explain what happened from their point of view. Such adverse actions tell employees they can be penalized even if they do nothing wrong, causing them to feel resentment, fear, and distrust. And the manager can find themselves in an awkward termination meeting if the terminated employee can prove then and there that they didn’t do what they were accused of doing. Continued on page 24. www.fiada.com
Brad “Bullseye” Joel
Don’t let that mild-mannered smile fool you, Brad Joel is the guy in charge and you don’t want to mess with him. As FIADA President, Brad won’t be able to stay away from the FIADA Annual Convention October 17-19. He will be armed with the FIADA gavel so proceed with caution if you see him. Most likely to be found on the ground in the Exhibit Hall and at the podium during the Old West Gala Dinner.
armed and very dangerous
23 — Independent Dealer — April 2019
www.fiada.com
Disciplining and Terminating Employees continued from Page 22.
4. Written warnings are best drafted by the manager and reviewed by HR. An employee’s manager often has firsthand knowledge of an infraction or unacceptable performance, so they’re in the best position to draft the written warning. HR can collaborate with the manager by reviewing the warning, ensuring that it is factual, unemotional, thorough, clear, tied to a company policy, and consistent with how others have been given written warnings previously.
that is likely to escalate, either due to the nature of the issue or discipline, or the temper of the employee.
5. Corrective action is best done by the employee’s direct manager. When corrective action is delivered by the manager, it tells the employee that the manager is invested in the employee’s success and is willing to help the employee improve. Leaving corrective action to HR tells employees that they’re “someone else’s problem” and that their manager may not be fully vested in the company’s policies and practices. It also creates an unnecessarily adversarial relationship between employees and HR, which can undermine HR’s ability to make positive, company-wide changes. 6. During a disciplinary meeting, a witness can help document what was said and done as well as provide logistical details. Not every disciplinary meeting needs a witness, though, especially if the issue is a minor one, or it’s a first conversation about performance issues. In these cases, whether to have a witness present can be left to each manager’s discretion. A witness is more useful for a meeting
From the Road 1
2
7. Fairness and courtesy can go a long way, even when termination is necessary. No termination meeting will be pleasant, but they’re often more unpleasant than they need to be. Good practices here include being honest and clear about the reason for termination; not relying on being an “at will” employer to avoid telling the employee why they’re being let go (they’ll generally assume the worst), and holding the meeting privately and at the end of the day so that the employee can clean out their desk and exit the workplace without an audience. Whatever a manager can do to help the employee leave with their dignity intact will be helpful in preventing future issues with the now-former employee. 8. Discipline and termination can be in the employee’s best interest—allowing bad behavior and poor performance to go on unaddressed does them no favors. If an employee isn’t doing a good job and is unable or unwilling to improve, they’re not helping the employer, their teammates, or themselves by staying in the organization. Chances are good that they’d be more successful and happier doing something else for someone else. And that’s okay! Get more tips and advice at the NIADA HR Support Center at http://niadahr.com.
FIADA Executive Director Lisette Mariner is on a road trip to visit FIADA Auction Partners around the state. First stop was Manheim Orlando and Adesa Orlando.
3
4
5
1. Lisette catches Ellen "Wild Woman" Westpfahl for a rewarding selfie. 2. Preparing to cut the ribbon at the new Manheim Reconditioning Facility 3. The crew that oversaw the construction of the new facility. 4. New ADESA Orlando General Manager Todd Hoagey at the Block at Adesa Orlando 5. FIADA's welcome table, ready to talk to both new and long-time members. 24 — Independent Dealer — May 2019
www.fiada.com
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D E A L E R O P E R AT I O N S
Can Customer Feedback Protect Your Dealership? BY KENNY ATCHESON
M
Encouraging customer feedback, good and bad, could actually protect your dealership from lawsuits and online smears if you know how to do it correctly.
ost dealers nowadays realize the importance of online reviews. However, there are still some who miss out on additional value from getting customer feedback. Read the following messages provided by customers. These negative comments are all from customers of one dealership that is ran by a terrific operator and outstanding person. “I have noticed that when you bring your vehicle in whether for routine maintenance or a maintenance issue, you are not given a receipt or print out of repairs/maintenance done. I asked the first time but was told by Suzy that a new system was being installed. I was given one a week later. But the last 2 times, one was not provided. A receipt in any setting is PROOF of purchase. Refusing or Reluctance to provide a receipt of work/ service performed is suspect to say the least. No paper trail...no record. Who’s to say that work was actually completed? Initial customer service was OF COURSE awesome. However, even more important to me is how I am treated AFTER the sale. Disappointed is an understatement. Even though we have referred 2 people, we don't feel comfortable recommending anyone else.” Milton D. “I thought they worked with any credit but apparently they don’t.” Maria S. “There are no prices, no way to look for cars in your price range.” Rosa K. Unfortunately, some dealers have focused exclusively on getting positive Google 26 — Independent Dealer — May 2019
reviews without considering these five tips.
complain to you?
Five Tips for Online Reviews: 1. Keep issues internal Looking at the customer feedback above that was provided through our ThanksForFeedback.com system, you’ll see that none of these customers wrote a negative review on Google. A previous unofficial case study found that 97% of customers who complain through our feedback system did NOT write a negative review publicly on Google.
Welcome customer feedback at every step and after the sale. You may be able to keep a small issue small instead of it blowing up all the way to the Attorney General.
If you give your customers a chance to vent, they are less likely to do so publicly. Many customers just want to be heard, not to purposely destroy your business. If you don’t give them an easy method for offering feedback, they will find a way to do so elsewhere—and it will be for all the world to see. In my live team training, Become the Obvious Choice, I explain to employees that a negative public online review is like graffiti on the side of the building that doesn’t wash off! 2. Encourage feedback A study by the White House Office of Consumer Affairs revealed that only 1 out of 26 unhappy customers will complain to management. That means you could have 25 unhappy customers running around venting to everyone else. They are complaining at work, to their friends and family, and online. Some may complain to a local Attorney General, the FCC, FTC, or other acronym that makes your wallet quiver. Wouldn’t you rather have customers
What if a customer truly could not understand why you turned them down for financing? After all, your marketing makes it sound like you’ll finance anyone. The customer doesn’t understand and reason in the same way that you do. They feel like an honest person. They have a new job that they are excited about. Why aren’t you excited about their new job and confident that they will be able to make payments? That customer may look for other reasons why you didn’t sell to them. They may think you are discriminating against them. Sometimes the customer just doesn’t get it; but they could if you received their complaint and someone in management contacted them to explain. The customer may still not be thrilled with you but perhaps they won’t take it to another level. This article is not meant to discourage or encourage any of the strategies mentioned thus far. Many still work well, just not as well as they used to because of regulations. Or they require further analysis and rules to be adhered to. www.fiada.com
3. After the sale As you know, there are more complaints after the sale than at the point of sale. If you are a buy-here pay-here dealer, you may have the “audacity” to contact the customer to ask for payment. Sometimes they don’t like that. All used car dealers can experience customers who are ticked off because their check engine light came on. Nobody likes to have to bring in a vehicle for repairs. If a customer brings their vehicle in for repairs they should have an easy method for providing feedback while they are waiting and stewing. Not all feedback systems provide this capability, but when they do there are several ways to provide opportunities for customers to tell you what they think after the sale, including: • Signs on the exit door to a webpage or a number to text. • Sign-in flyer stand at the counter and/or on tables in the waiting area. • On the receipt (although some customers will complain before they get the receipt). • Provide a feedback webpage or text number in a regular email newsletter. • Provide a feedback webpage or text number in a printed direct mail newsletter. • Provide a feedback webpage or text number on a custom-labeled bottle of water that customers get for free.
customer who purchased a vehicle? Give non-customers a way to provide feedback. You may keep it internal. You may find out something going on at the dealership that surprises you. 5. Employees Although the names and places were changed in the customer feedback in this article, Suzy was one employee who was mentioned several times. This may alert management that customers have a problem with Suzy. In front of management Suzy may be terrific with customers, but when management is not watching Suzy treats customers differently.
Having an easy system for customers to comment at all times will keep employees on their toes. In addition to earning a great online reputation, an effective customer feedback system offers a number of benefits that are just as valuable. Kenny Atcheson is the founder and president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. Kenny teaches workshops and speaks at conventions and 20 Groups. His company offers several marketing and advertising programs, customer service and sales training. His website can be found at www. DealerProfitPros.com
That’s just a few to get you started. All of those methods can be used at the dealership immediately following the sale. 4. Non-customers If someone visits your website or the dealership, chances are good they are considering buying. If they don’t purchase, there is a reason. A customer who visits your website, fills out an application, takes a phone call from a salesperson, makes an appointment, shows up for an appointment, and then doesn’t buy—do you think that they are more or less likely to complain than a www.fiada.com
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May 2019 — Independent Dealer — 27
L E G A L & L E G I S L AT I V E
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. FEDERAL DEVELOPMENTS CFPB Revises CID Policy. Under its previous Director, the CFPB developed a fearsome reputation for its aggressive and industry-hostile enforcement actions against dealers and finance companies. Many of those actions were initiated by a most unwelcome communication from the Bureau – something called a Civil Investigative Demand. A CID from the Bureau typically demanded loads of information from the target company on a very short response schedule, and didn’t do much to explain to the target why it was in the Bureau’s crosshairs. That scenario has now changed a bit. On April 23, the CFPB announced that it changed its policy regarding CIDs to ensure that they provide more information about potential violations of law under investigation. Under the revised policy, “CIDs will provide more information about the potentially applicable provisions of law that may have been violated. CIDs will also typically specify the business activities subject to the Bureau’s authority. In investigations where determining the extent of the Bureau’s authority over the relevant activity is one of the significant purposes of the investigation, staff may specifically include that issue in the CID in the interests of further transparency.” The revised policy takes into account recent court decisions concerning the “notification of purpose” section of CIDs, as well as comments the Bureau 28 — Independent Dealer — May 2019
received in response to Requests for Information issued in 2018 seeking feedback about, among other things, its use of CIDs in enforcement investigations. CFPB Releases Annual Report on Consumer Complaints. The CFPB recently released its Consumer Response Annual Report, which provides information and analysis about consumer complaints received by the Bureau in 2018 through its Office of Consumer Response. The report includes information about complaint volume, types of complaints—including vehicle financing and leasing, debt collection, credit reporting, and title lending— and, where applicable, resolution of complaints. CASE OF THE MONTH GAP coverage is a popular product with dealers’ F&I folks. It’s a simple product, right? The coverage pays off your credit obligation if there’s a GAP event, like a total loss, and the buyer’s insurance company’s check doesn’t entirely cover the loss. Nothing to it! But perhaps it’s a bit more complicated than you think. A recent case illustrates the point. Robin Hinkle bought GAP protection from Safe-Guard Products International, LLC, when she bought and financed a vehicle. Shortly after buying the vehicle, she began falling behind on her payments and accruing late fees. She was later involved in an accident resulting in the total loss of her vehicle. Hinkle’s insurer issued
a $7,285 check to the lienholder. At the time of the accident, Hinkle’s payoff balance, including late charges and deferred payments, was $11,983. Hinkle made a claim under her Safe-Guard GAP policy. Safe-Guard evaluated her “Re-Amortized Balance at Date of Loss” at only $5,283. Because the insurance check covered this amount, Safe-Guard denied coverage under the GAP policy. Hinkle sued Safe-Guard, among others. After the case was removed from state to federal court, Hinkle filed an amended class action complaint alleging violation of the West Virginia Consumer Credit and Protection Act, breach of contract, common law bad faith, violation of the West Virginia Unfair Trade Practices Act, requesting a declaratory judgment to recover benefits under the GAP policy, and demanding punitive damages. The court previously dismissed the WVCCPA claim against Safe-Guard. See Hinkle v. Matthews, 2018 U.S. Dist. LEXIS 149093 (S.D. W.Va. August 31, 2018). In this decision, Safe-Guard moved for summary judgment on the rest of the claims. The court granted the motion. Hinkle alleged that Safe-Guard breached the contract when it denied her claim for coverage under the GAP policy. Hinkle argued that the term “Unpaid Net Balance” in the GAP policy was ambiguous and that the term describes the entire balance owed. The court found that the definition www.fiada.com
of “Unpaid Net Balance” in the contract clearly stated that late charges, delinquent payments, deferred payments, and penalty fees are not covered by the GAP policy. The court also found that the term “re-amortized” in Safe-Guard’s correspondence denying coverage did not create a latent ambiguity in the contract, noting that the term was used by Safe-Guard to represent the act of calculating the insured’s “Unpaid Net Balance” and did not affect the unambiguous definition of “Unpaid Net Balance” in the contract.
this sales representative’s statements the result of good compliance and training practices, or just good old
dumb luck? And how is this issue addressed in your shop?
Tom (thudson@hudco.com) and Nikki (nmunro@hudco.com) are partners in the
law firm of Hudson Cook, LLP. For information, visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2019, all rights reserved.
The court also found that the vehicle salesperson’s representation about the GAP policy’s coverage did not render the contract terms ambiguous. Therefore, the court concluded that Safe-Guard did not breach the contract when it denied Hinkle’s claim and granted its motion for summary judgment on that claim. The court further granted summary judgment on the claims that were dependent on the breach of contract claim – common law bad faith and punitive damages. The court concluded that Safe-Guard was entitled to summary judgment on the Subscribe WVUTPA claim as well.
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to Spot Delivery and, at no additional charge, we will send you a Subscribe to Spot Delivery and, at no Hinkle v. Matthews, 2019 U.S. Dist. of your choice of any of send our you legal additional charge, we will a LEXIS 49270 (S.D. W.Va. Marchcopy 25, copy of your choice of any of our legal 2019) compliance books, CARLAW, CARLAW II compliance books, CARLAW, CARLAW II Street Legal or CARLAW III Reloaded. COMPLIANCE TIP Street Legal or CARLAW III Reloaded. One compliance takeaway in the Hinkle case deals with the allegation involving representations about the GAP coverage by the dealer’s salesperson. We immediately wondered whether the dealership had trained its salespeople about what they could and should not say about GAP and the other voluntary protection products that they offer to their car buyers? Did the dealership have scripts for the salespeople to follow, and were those scripts blessed by the dealership’s lawyers? Were www.fiada.com
To order, visit us at www.counselorlibrary.com/offer/spot To order, visit us at or call us at 877-464-8326. www.counselorlibrary.com/offer/spot Also follow us on:
or call us at 877-464-8326. Also follow us on:
May 2019 — Independent Dealer — 29
INDUSTRY NEWS
News and headlines of interest to the Florida Used Car Industry and beyond
Saying Goodbye to an FIADA Veteran Remembering Honorary Life Director and Quality Dealer John Mercurio, Beach Cars, West Palm Beach His achievements in life are legendary, his friendships were for life and he was loved by everyone who knew him. John lived by the golden rule and made everyone who knew him a better person from his example. He loved every day, conversation, handshake, hug, and kiss of his life. Everyone who knew him sensed his generosity, compassion, kindness and love for life immediately. He was uniquely special to everyone who knew him. Selected as the 1986 Quality Dealer of the Year, John Mercurio was a valued member of the automobile industry for over 50 years. In that time he was a loyal supporter of the FIADA and was a founding member and two-time president of the Palm Beach Independent Automobile Dealers Association. John was the brother of fellow FIADA Honorary Life Director Pete Mercurio and uncle to Past President Thomas "Dino" Mercurio.
John Mercurio (Left) and brother Pete Mercurio (Right) receiving Honorary Life Director awards from Past President Jim Galinda.
Dozens of Vintage Chevrolets Burn with HBO Film Set Assembled on location for an upcoming miniseries, the cars were staged at a dealership
A massive fire that broke out on the set of an HBO miniseries in Ellenville, New York, early AM on May 10, destroyed a used-car dealership and several circa 1990 cars and trucks, including Chevrolet Corvettes and Camaros. The cars were among 27 vintage vehicles that Automobile Magazine New York bureau chief Jamie Kitman had supplied to the HBO production via a filmcar company he owns separately. No one was injured in the blaze. The precise number of vehicles lost is not yet known, though Chris Busby, general manager for 613 Automotive Group, told the Poughkeepsie Journal; "There's nothing left." The dealership buildings, and "about a dozen vehicles were destroyed," he said. Images published by the local Shawangunk Journal and reposted here with permission show the extent of the devastation, while others provided by Kitman show the cars prior to the fire. According to the Shawangunk Journal, the fire is said to have started in the showroom building and also claimed camera and film equipment, with damages possibly reaching into the millions of dollars. 30 — Independent Dealer — May 2019
The aftermath of the fire that wiped out vintage Chevrolets on location of an HBO miniseries.
Kitman says the losses include "several Corvettes, Camaros, a minty C1500 pickup, a 454 SS pickup," and a "super-low-mileage 1990 Chevrolet Beretta Indy Pace Car" edition. The 613 Automotive Group used-car dealership was dressed as a Chevrolet/Pontiac/Oldsmobile/Isuzu store for an HBO miniseries based on Wally Lamb's 1998 bestselling novel I Know This Much Is True and which stars Mark Ruffalo and Juliette Lewis. The novel takes place, at least partially, in October 1990. The fire broke out about 12:45 a.m. Thursday, the Shawangunk Journal reports, and the investigation into its cause is ongoing. Source:MotorTrend www.fiada.com
2018-19 FIADA EXECUTIVE COMMITTEE:
BRAD JOEL
President Splish Splash Auto Sales Princeton, FL 33032 (305) 258-1191
LUIS GIRALDO
Regional Vice President Veneauto Cars Gainesville, FL (352) 870-2278
LISA COMPAGNO
SCOTT LANIER, CMD
BRANDI NOEGEL
STEVE MARBAIS, CMD
Senior Vice President Palm Tree Auto Sales Stuart, FL (772) 288-2099
Regional Vice President Noegel’s Auto Sales Starke, FL (904) 964-6461
Chairman of the Board Credit Cars Orlando, FL 32808 (407) 295-6211
Regional Vice President Marbais Enterprises, Inc. Ocoee, FL (407) 877-7422
FRANK FUZY
JENAY RHOADS
Secretary Treasurer Century Motors of S. Fla., Inc. Florida Auto Exchange Co., Inc Pompano Beach, FL 33064 Dunedin, FL (954) 785-0369 (727)-796-2886
TREVER VARNEY
Regional Vice President Next Ride LLC Largo, FL (727) 559-1191
JIM WINTERICK, SR.
Regional Vice President Gulfstream Motor Credit Miami, FL (305) 253-2335
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May 2019 — Independent Dealer — 31
MANHEIM FLORIDA ALWAYS NEARBY.
Manheim Daytona Beach 1305 Indian Lake Road Daytona Beach, FL 32124 386.255.2500 Sale: Wed 3 PM Total Resource Auction every Wed 2:30 PM Manheim Fort Lauderdale 5353 S State Road 7 Davie, FL 33314 954.791.3520 Sale: Fri 9 AM Total Resource Auction Tue 9 AM Ford Open Sale every other Fri Manheim Fort Myers 2100 Rockfill Rd Fort Myers, FL 33916 239.476.9800 Sale: Wed 4 PM Total Resource Auction every other Wed 3 PM Specialty Sale last Wed monthly 2 PM Galloway Direct Off Site Sale 2nd & 4th Tues 12 PM Manheim Jacksonville 10817 New Kings Rd Jacksonville, FL 32219 904.768.9981 Sale: Thurs 1 PM Total Resource Auction every Thurs 12:40 PM Manheim Lakeland 8025 N State Road 33 Lakeland, FL 33809 863.984.1551 Sale: Wed 2 PM Specialty RV/Boat Sale 1st Wed monthly 9 AM
32 — Independent Dealer — May 2019
Manheim Orlando 11801 W Colonial Dr Ocoee, FL 34761 Sale: Tues 9 AM Highline Exotic Sale Kicks off every 4th Tues 11 AM with Mercedes & BMW Chrysler Closed Factory Sale bi-weekly on Mon 12:30 PM GM Closed Sales bi-weekly on Mon 1 PM Nissan Infiniti Closed Sale 1st Wed monthly 9 AM Manheim Palm Beach 600 Sansbury Way West Palm Beach, FL 33411 561.790.1200 Sale: Thursday 9 AM Exotic Highline Sale every 4th Wed 9:30 AM Manheim St Pete 14950 Roosevelt Blvd Clearwater, FL 33762 727.531.7717 Sale: Thurs Weekly 2:30 PM inops Regular Sale 3 PM Manheim Tampa 401 S 50th St Tampa, FL 33619 813.247.1666 Sale: Thursday 9 AM Total Resource Auction Mon 9:30 AM at Cone Road location Ford Factory Sale every other Wed 10 AM Manheim Caribbean 1050 Carretera 865 KM 4.7 Bo. Candelaria Toa Baja, PR 00949 787.261.7300 Sale: Thurs 12 PM
PAID ADVERTISING
Manheim Central Florida 9800 Bachman Rd Orlando, FL 32824 407.438.1000 Sale: Wed 9 AM Total Resource Auction Wed 8:30 AM “Manheim Imperial Nights” Sale Tues 4 PM Specialty Heavy Truck & Equipment Sale Second Thurs Monthly at 10 AM
Salvage Sale Thurs 11 AM
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