November 2014 issue

November 2014 — Independent Dealer — 1 www.fiada.com

Information and Insight for Florida Used Car Dealers

SINCE 1940

A Publication of theFlorida IndependentAutomobile DealersAssociation

NOVEMBER 2014

PRST STDU.S. POSTAGE

PAIDFULTON, MO

PERMIT NO. 38

www.FIADA.com

It was a swashbuckling good time at the FIADA 2014 Annual Convention and Trade Show. Page 12.

2 — Independent Dealer — November 2014 www.fiada.com

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DealerIndependent

MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308 TELEPHONE (850) 385-2712 (800) 237-0448 FAX (850) 385-3251 WEBSITE www.FIADA.com

EXECUTIVE COMMITTEE Jim Winterick, Sr. President

Paul Matton Senior Vice President

Dino Mercurio Chairman of the Board

Brad Joel Secretary

Lisa Compagno Treasurer

Scott Lanier Regional Vice President

Christopher Leedom Regional Vice President

Steve Marbais, CMD Regional Vice President

Phil Risley Regional Vice President

Govinda Romero Regional Vice President

FIADA STAFF Lisette Mariner Executive Director

Terry Myers Educational Instructor

Sarah Langley Administrative Director

Amelia Tillman Member Services

Christy Taylor Editorial/Advertising

POSTMASTER:Send address changes to

FIADA • 1840 Fiddler CourtTallahassee, FL 32308

(850) 385-2712 • Toll Free: (800) 237-0448Fax (850) 385-3251 • www.FIADA.com

The Independent Dealer is a publication of:Florida Independent Automobile

Dealers Association,1840 Fiddler Court, Tallahassee, FL 32308

The magazine is published every month inTallahassee and distributed to Florida new, used,

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

The statements and opinions expressedherein are those of the individual authors and do

not necessarily represent the views of Independent Dealer or the Association. Likewise, the

appearance of advertisers, or their identification as members of FIADA, does not constitute an

endorsement of the products or services featured.

ContentsNovember 2014

For members of the Florida Independent Automobile Dealers Association

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

4 President’s Message Jim Winterick, Sr.

6 Executive Director’s Message Lisette Mariner

8 Member News

10 The History of FIADA Let the 75th Anniversary begin! FIADA kicks off a feature celebrating the history of the Association.

12 2014 Annual Convention Recap The photos are back from the Annual Convention. Enjoy this scrapbook of Annual Convention fun.

16 2014 Award Winners Congratulations to the winners of FIADA’s most prestigious awards.

20 Quality Dealer AutoMaxx’s Chris Leedom was selected as the 2014 FIADA Quality Dealer of the Year. Get to know him and hear his story.

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

24 Legislative Update FIADA Lobbyist Sandra Mortham

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

29 Industry News

31 The 2014-2015 FIADA Executive Committee


economical transportation of our populace has made this necessary, hence the suburbs. And how was this paid for before there were gasoline taxes? Someone had to sell those vehicles and contend with their needs, while collecting the associated taxes and fees.

We help more of our fellow Floridians get their children to school, go to the mall, go to the doctor, get to work, and buy groceries in safe, reliable transportation. We ask no thanks; we only want to conduct our business in a manner that is professional and considerate of our customers who need reliable, safe, low cost, transportation.

Our contribution to fellow Floridian’s lives are only fantasized about in other parts of the world. We deliver the freedom to go where you want, when you want with whom you want. We are supporters of charitable endeavors in our respective communities. Our endless enthusiasm for challenges is robust no matter the cause or attendant impediments.

We are the Used Car Dealers of the State of Florida. Join us if you are not a member, become one and get involved. If you know someone that is not a member get them to join. It is a small price to pay for a profession that has given us so much. Together we can make a huge difference in Florida’s economy and our nation’s well-being.

Jim Winterick, Sr.FIADA President

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

Independent Dealers Aren’t the Problem. We are the Solution.BY JIM WINTERICK, SR., FIADA PRESIDENT

How many times have we been told, “You Used Car Dealers need to be controlled, you need to be legislated against, overseen and continually audited

for rigid compliance.” There is no business I can think of that has as much oversight as ours. We contend daily with Inspectors, consumers, their advocates, financial covenants. We receive an abundant supply of bad press, and all Used Car Dealers are blamed for the bad behavior of a few. Yet when we actually look at consumer complaints our profession is lower than most. Has there ever been a more misguided critique of any profession? We are thankful for politicians and members of the legal profession, who often rotate the bottom three rungs on the trustworthy scale with us. Yet we adapt, we persevere, we deal with it. The entrepreneurial spirit is alive and well in the Independent Dealer. We are small business people. We employ thousands of our fellow Floridians and help them support their families. Our efforts extend beyond our own employees to many attendant vendors which include advertising agencies, insurance companies, lending institutions, parts suppliers, equipment sellers, equipment repair technicians, tire companies, towing enterprises, and fuel and lubricant sellers. I am certain I am leaving out lots of others. I believe one in every six Floridians makes their living directly or indirectly from the automotive business.

The naysayers that say “You didn’t build that” certainly never scraped their life savings together, indentured all of their assets risking it all to try and make a better life for themselves and others. Most roads were paved to accommodate automobile use. It would seem to me the


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A “National Corporate Partner” has met stringent NIADA criteria demonstrating that it can provide valuable products and services to NIADA members. No legal partnership has been created by the granting of this status, but NIADA does receive compensation from Protective. Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products are backed by Western General Insurance Company and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

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www.fiada.com6 — Independent Dealer — November 2014

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

Success in Numbers BY LISETTE MARINER, EXECUTIVE DIRECTOR

The survey results are in and it’s official, we had a successful 2014 Annual Convention. With just over 200 dealers participating, we saw a 12 percent increase from

last year. Thank you to our sponsors and exhibitors for enabling us to provide such a wonderful educational and fun experience for dealers. Last year, dealers requested more panel discussions so this year we had six to choose from. They all received rave reviews. If you missed it, topics included Legal, Floor Planning, Dealer Best Practices, Online Selling and Marketing, Online Buying, and an esteemed panel of legislators. We had other well-known speakers join us as well such as DJ Harrington and David Brotherton. In all there were 14 sessions provided. What an amazing line-up.

Congratulations to • Quality Dealer, Chris Leedom, AutoMaxx• Auction Person of the Year, Curt Farris with Adesa Auto

Auction, • Person of the Year, Terry Myers• Legislator of the Year, Representative Doug Broxson• Honorary Life Director, Don Scott• MVP Award Winners: John Cousins, Rick Davis / VetAuto,

Jennifer Finlay, Frank Fuzy, George Hickey, Scott Lanier, Steve Marbais, ASC/Vet/Jeff McClintock, Terry Myers, Paul Matton, Phil Risley, Kevin Scott, Rob Sickles, Dealers Insurance Services/Vanessa Zapatero, and IAA/Jeff Zupec.

And to our Board of Directors. It was wonderful to celebrate their accomplishments in the industry and their support of FIADA. We appreciate all you do!

During the meeting we raised over $3,000 for the FIADA PAC, bringing us to within 30 percent of our annual fundraising goal. See our legislative victories on page 24. Even though the election is over for this year, you can still help the PAC and contribute throughout the year. Help us hit our $30,000 goal by December.

Now is also the time for you to let me know what committees you’d like to participate in. During the month of December committees will meet via conference call to help guide the board on Membership, Member Benefits, Legislative, and Convention. Contact me at [email protected] and let me know what you choose. Serving on a committee is one of the best ways to get involved with FIADA and is open to all active members.

Don’t forget our next Town Hall and Board meetings are scheduled for January 16-17, 2015 at the Hyatt Place Ft. Myers/at the Forum. All members are invited and encouraged to attend. Thank you for your membership! Encourage your friends to join and be a part of this wonderful organization.

MEMBERSHIP: The membership committee is responsible for developing membership in FIADA.

MEMBER BENEFITS: The member benefits committee shall have the authority to recommend FIADA policy concerning all FIADA approved member benefit programs. This includes recommendations of approval for all new programs,amending or cancelling current programs.

FIADA COMMITTEES All active members can sit on a FIADA Committee. Here is an overview on what is available.

LEGISLATIVE: The legislative committee has the authority and duty of reviewing the progress of legislation at the state level, making recommendations regarding legislative issues and keeping the FIADA Executive Committee informed on all legislative matters affecting the industry and FIADA.com

CONVENTION: The convention committee is an ad hoc com-mittee that is charged with reviewing educational programs, sponsorship opportunities, entertainment, theme and general assistance with the Annual Convention

November 2014 — Independent Dealer — 7 www.fiada.comPAID ADVERTISINGPAID ADVERTISING

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

New Members OCTOBER 2014

AAA ASSET RECOVERY INC.Hollywood, FLVictor PuranSponsor: FIADA.com

BEACH N RIDES AND RENTALSCortez, FLTimothy PansieraSponsor: Dealer School

CARMA AUTOMOTIVE GROUPEnglewood, FLGreg MellottSponsor: FIADA.com

CHARLES ROTONDOBradenton, FLCharles RotondoSponsor: Terry Myers

GEM AUTO SALES INC.Lakeland, FLGodfrey FordeSponsor: Kevin Scott

GFCMiami, FLMohammad ArsalanSponsor: FIADA.com

NORTH FLORIDA AUTO RV SALESJacksonville, FLArrie KellySponsor: Auction123.com

PAMADO, INCBonita Springs, FLRobert HinesSponsor: FIADA.com

RST MOTORS LLCMiramar, FLMontoya PhillipsSponsor: FIADA.com

SHIFTPOINTFort Lauderdale, FLTom DrozSponsor: Sarah Langley

VT MOTORS INC.Hudson, FLAlan VanceSponsor: Terry Myers

WAMEED BACKREYOrlando, FLWameed BackreySponsor: Amelia Tillman

30+ Year MembersWood Motor Company Fort Myers, FL

20+ Year MembersMartinez & Associates, CPAs, P.A. Winter Springs, FL

10+ Year MembersCVR - Computerized Vehicle Registration Buena Park, CAFlorida Auto Dealer School The Villages, FLLighthouse Children Home, Inc. Tallahassee, FLMobility Freedom, Inc. Clermont, FLPro-Power Auto Sales Company Port Charlotte, FLUnited Acceptance, Inc. Smyrna, GAWiliams & Stazzone Insurance Agency, Inc. Cocoa Beach, FL

Under 10 Year MembersA.R.A. GPS Systems, Inc. Hollywood, FLAutos Unlimited, LLC Sarasota, FLCar Biz 2, Inc. Orlando, FLCARFAX Centreville, VACentral Florida Used Car Mart Mascotte, FLCharleston Auto Auction Moncks Corner, SCCredit Car USA Miami, FLDealerTrack South Jordan, UTFidelis PPM Lakewood, New YorkFirst One Auto Sales, LLC Naples, FLFlorida Fine Cars Inc Miami, FLIntegrated Dealer Solutions Miami Springs, FLIturan USA, Inc. Fort Lauderdale, FLKing Insurance Gainesville, FLOrlando Auto Auction Celebration, FLRiker’s Auto Financial Kissimmee, FLSoutheast Auction Finance, LLC Saint Petersburg, FLSpeed Auto Group, Inc. Orland, FLThe Auto Village LLC Ocala, FLWhite’s Auto LLC Eastpoint, FL

Renewing Members OCTOBER 2014

Rejoining Members OCTOBER 2014

AUTO LAND OF SW FL, INC.Fort Myers, FLTracy LewisSponsor: Amelia Tillman

MARIANNA MOTOR COMarianna, FLTimothy Glen SappSponsor: Kevin Scott

OFF LEASE ONLYPalm Springs, FLJohn GiasulloSponsor: FIADA.com

RB AUTO TRADING, LLCOrlando, FLAda RomanoSponsor: Amelia Tillman

RIGHT WAY AUTOMOTIVEPalm Springs, FLJennifer Rose WilliamsSponsor: Amelia Tillman

SOUTHERN FLORIDA ENTERPRISES, INC.Miami, FLEmilio MendezSponsor: Jim Winterick

JUST ANNOUNCED!Bi-weekly beginning Nov.17, ADESA Tampa’s GM Curt Farris has designated a special “FIADA Lane” to serve independent dealers. Premium lan placements, special seller’s fees and zero sales fees are just some of the perks FIADA members will enjoy.


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fiadaThe History of

This year, FIADA will celebrate it’s 75th anniversary serving the independent automobile dealers of Florida. Starting out as a group of concerned dealers

in the 1940s, FIADA has stood watch for over seven decades protecting dealers and the car buying public. It’s an honorable history full of good stories, friendly faces, significant events and

tireless workers, and all year long Independent Dealer will be recapping the unfolding

legacy of FIADA from its humble beginnings to today’s dynamic

and respected industry leader.

FIADA PRESIDENTS: 1940-1950

1940 *W.B. “Pat” Patterson, Jax

1949 O.B. Wade, Miami

Mr. Patterson served as chairman of the association during the war years. After the war, members merged with the franchised dealer’s association but reorganized late in 1948, when new officers were elected.

WORLD EVENTS: 1940-1950

1940 President Franklin D. Roosevelt becomes the first man to hold office for three terms.

1946 President Truman formally proclaimed an end to all World War II hostilities.

The truth is, FIADA’s strength has always been in the people who are a part of it—the members. We want to invite you to share your memories and be a part of the 75th Anniversary Celebration. Help us compile a history of not only factual information, but also the stories and spirit that have shaped the FIADA for so many years. Post your favorite memories or photos on our Facebook page or send them to us at [email protected]. You will also want to check out the new video that features the FIADA story. The video was unveiled for the first time at the FIADA Annual Convention and captures the uniqueness of the Association as told by its members and volunteers. You can watch it on our YouTube channel or scan the QR code on this page.


https://www.youtube.com/watch?v=R9h2HzQyN0o


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Simple, lower fees. How refreshing.For a limited time, you’ll pay a new simplified buy fee on every

vehicle purchased in the open sale on DealerBlock.

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*New simplified buy fees are lower than previous buy fees in most cases. Offer applies to vehicles purchased in the open sale on DealerBlock, excluding specialty inventory (e.g. RVs, powersports, boats, heavy-duty trucks and equipment, etc.) Administrative fees will be added where

applicable. Does not apply to in-lane and LiveBlock transactions. Does not include vehicles purchased in closed sales on DealerBlock.

OPEN-SALE BUY FEES ON DEALERBLOCK

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It was a swashbuckling good time at the pirate-themed FIADA 2014 Annual Convention and Trade Show in October at the ChampionsGate

Omni outside of Orlando. Over 200 dealers attended 14 educational sessions, six panel discussions and keynote speaker presentations from D.J. Harrington and Jay Gubrud. The exhibit hall was packed with a full-house of vendors, tons of door prizes and lots of fun. Here are few photos from the events. You can find all the convention coverage at www.FIADA.com. Just click on the Convention tab.

It’s not too early to plan ahead for next year’s convention. Mark your calendar to join us at the Hyatt Orlando, Lake Buena Vista on October 22-25, 2015 as we celebrate 75 years of FIADA’s service to independent dealers and the Florida’s used car industry.



where’s jack?Captain Jack Sparrow made an appearance at the Exhibit Hall Grand Opening. Check out who we caught him with!


November 2014 — Independent Dealer — 15 www.fiada.comPAID

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2014 awardsThe Keynote Address and Awards presentation was a chance to honor the Association’s all-stars with these prestigious awards.

2014 Annual convention sponsors

MVP award winners cars for kids participants

honorary life director man of the year crystal gavel

Southeast Car Agency Palm Tree Auto Sales

Don Scott Terry Myers Dino Mercurio

quality dealer of the yearChris Leedom, AutoMaxx

auction person of the yearCurt Farris, Adesa Auto Auctions



PREMIUM FINANCE PROGRAMWe have added an exciting option to our financing opportunities. The Premium Finance Program is a new non-recourse reserve program.

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Two great directions for funding you customer’s sales.

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2014 sponsors

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A very special thank yougoes to the following partners who helpedto make the FIADA 2014 Annual Convention a success.



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The Quality Dealer Award has come to

represent the best of the industry. Dealers who win are considered to have the best business practices, the best reputations, be the best Association leaders and the best corporate citizens within their communities. With those ideals as the benchmark, it makes perfect sense that Chris Leedom of AutoMaxx in Sarasota, FL would be named the 2014 Florida Quality Dealer of the Year. Announced at the FIADA Annual Convention, Chris was humbled and grateful to receive the top honor.

“I have received quite a few honors and recognition over the years for some of the work we do,” Chris said, “but I have to say my most significant honor by far was being named FIADA Quality Dealer of the Year. I don’t know what could top that. To be recognized by my fellow dealers is a privilege and very humbling. I have been very fortunate over the years and feel very honored to be in our industry.”

The career of Chris Leedom is very interesting and includes one of the most unique industry resumes out there. It started ordinary enough, as a finance guy who was recruited by a GM dealer to help open a Buy Here-Pay Here lot in 1999. His industry intuition and driven approach took him from being the lot’s first employee to the leader of 15 thriving locations just six years later. One of his success secrets was membership in a Twenty Group, where he was able to hone his invaluable skills of networking and collaboration. That prompted him to step into a completely new role soon after, as a Twenty Group Moderator and consultant. A firm believer in dealer education, Chris thrived as

a trainer and soon went out on his own establishing the Leedom Group, an array of training and consulting businesses that are known by many as the “gold standard” in independent dealer education.

Even with this new successful venture and the respect of fellow dealers as a recognized industry expert, Chris still had an itch to get back into retail. He went to Dealer Training School in 2003, applied for a dealer license and received it on July 7. That date, incidentally, is the same as his son Colin’s birthday. A sign? Maybe, but for a confident CEO like Chris Leedom success is less about luck and more about hard-work. The 6,000 units that have been sold at AutoMaxx since it opened its doors 11 years ago is proof of that.

Chris views his role as CEO of AutoMaxx to be one of directive leadership, capital acquisition and general guidance. His management style is built on trust that if he keeps everyone focused on the vision, his team will deliver the results. It is a strategy that works. He says with Finance Manager Evelyn Pagan and Jose Gonzalez in the service department customers know they are well taken care of. The lead sales person, Mark Armstrong, is also a key member of the team. The AutoMaxx staff is lean, efficient and more than capable of getting the job done.

The team rallies around Chris’ motto “take care of the customer and the rest will fall in place.” The way they do that

is by offering a 12-month warranty on every car financed, providing excellent quality cars and making a great value proposition to the customer. When it comes to keeping the customer happy, the answer is almost always “yes,” according to Chris.

“The team knows that if a customer gets to me in the resolution process I am pretty much going to ask one question, ‘what will make you happy?’ If that is remotely reasonable, I am going to say yes to keep the customer happy and driving.” With only five registered complaints in more than 6,000 accounts over 12 years, it seems that customers are quite satisfied.

You might think that since Chris has staked his reputation on being a nationally-recognized trainer and consultant that he has an unfair advantage when it comes to running a dealership. Being a successful dealer must be a piece of cake for the guy who has all the answers. While



his experience, knowledge and connections are certainly helpful, success is never guaranteed.

“The advantage is I constantly get exposed to the best strategies, products and services in the industry,” Chris said. “The disadvantage is sometimes folks think because of the positioning we are immune to mistakes. I assure you we are not. I have the same issues everyone else does with hiring good people, vehicle acquisition issues, competitive pressure, etc.”

The goal is to perform at what Chris calls “benchmark” levels, and be in the top 25 percent of the industry as an overall operation when it comes to delinquency, market share and profitability. He is proud to say that AutoMaxx is usually at or above that mark.

Membership in FIADA is another tool that Chris says his dealership needs to be the best. As a trainer, he held an individual membership since 2001 and then joined again as AutoMaxx when he got his dealer license. In 2009, NIADA CEO Steve Jordan, who was the FIADA Executive Director at the time, and Past President David Cox approached Chris about getting involved as a board member. That led to service as President i n 2013 and currently Regional Vice President. Association leadership means extra time in his already cramped schedule, but Chris says he makes it a priority.

“I would not operate in this business without being a member of our state association, period,” Chris said. “It has been a true pleasure to serve with the quality of dealers that lead the FIADA. Beyond that, I have made friendships that will last a lifetime. I would encourage any dealer that wants to be involved to step forward.”

As FIADA President, Chris helped Executive Director Lisette Mariner lead a small ad-hoc committee

through the process of developing a five-year strategic plan for the Association. He also helped spur a surge in membership growth, sparked by his challenge to current members to sponsor a new member within the year. Even away from FIADA he is thinking about membership. On a recent cruise, he happened to meet an owner of an auto upholstery shop in Florida, and ended up recruiting him for membership before the ship came back to port. Chris has also been involved with the “Cars for Kids” program FIADA coordinates that helps to raise money for the Florida Sheriffs Youth Ranches, because service to kids is one of the charitable focuses he and his wife, Lisa, have always felt strongly about.

That could be because of Chris’ love for his own family. His number one goal, before the business, is to be a great

husband and dad to his two children, Alexis and Colin. He also enjoys the fact that he is the oldest of eight siblings, four of whom work with him in his businesses. The chance to work with his brothers and sisters is special for Chris. “It is most enjoyable to go through life with family around you.”

Chris’ record and accomplishments with AutoMaxx will accompany him as he now represents Florida in the National Quality Dealer competition sponsored by NIADA. Whether he wins or loses that title, the honor of the state award has made quite an impact on him, and will forever affect him and how he views his business.

“I have an obligation to operate and manage my business in a manner worthy of all the other quality dealers who have gone before me. It is an honorable group.”

2014 FIADA Quality Dealer of the Year Christopher Leedom with his wife Lisa. Receiving the Association’s top honor was was humbling for Chris who says it is the most significant honor he has ever received.

22 — Independent Dealer — November 2014 www.fiada.comOctober 2013 — Independent Dealer — 22 www.fiada.com

Don’t miss this opportunity to network with your peers and learn about the latest issues impacting independent dealers. The meeting will be held at the Hyatt Place Fort Myers at the Forum from 10am – 2pm. The town hall meeting is absolutely free to attend. Online registration available through January 13, 2015.

To book a room for the weekend at the Hyatt Place Fort Myers at the Forum, call (800) 993-4601 and mention that you are with the FIADA Town Hall Meeting. Room rate is $129 per night. There are no resort fees and self-parking is complimentary. The cut-off date is December 19, 2014.

http://www.fiada.com/events/event_list.asp?show=&group=&start=1%2F16%2F2013&end=&view=&cid=5321

http://www.fiada.com/events/event_list.asp?show=&group=&start=1%2F16%2F2013&end=&view=&cid=6826


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Last month, we focused on cast your vote and tried to emphasize how every vote counts. As we saw with the election results, that message could not have been

more true. With tight margins in many races, especially for Governor, every vote was crucial for the winning side.

Nearly every candidate that your FIADA PAC supported in this most recent election cycle won their race. It ended up being about a 98 percent win rate for FIADA PAC-backed candidates. Congratulations to all the winners.

State SenatorsSen. Jeff Brandes, SD 22Sen. Joe Negron, SD 32Sen. Jack Latvala, SD20Sen. Tom Lee, SD24Sen. John Thrasher, SD06Sen. David Simmons, SD10

State RepresentativesRep. Kathleen Peters, HD69Rep. Keith Perry, HD 21Rep. Ritch Workman, HD 52Rep. Erik Fresen, HD 114Rep. Bill Hager, HD 89Rep. Doug Broxson, HD 3Rep. Scott Plakon, HD 29Rep. Chris Latvala, HD 67

Being involved does make a difference, and just because the election is over we do not want to forget about contributing to the PAC. Help us reach our goal of a fully-funded PAC before the 2015 Legislative Session begins.

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

Election SuccessBY SANDRA MORTHAM, FIADA LOBBYIST

Dino Mercurio (Left) presents the Legislator of the Year Award to Rep. Doug Broxson at the Annual Convention.

Dino Mercurio (Left) gives a PAC contribution to Sen. Jack Latvala at the Annual Convention.

Dino Mercurio (Left) gives a PAC contribution to Rep. Scott Plakon at the Annual Convention.


Contributor’s Name: _______________________________________________________________________________

Dealership/Company: ______________________________________________________________________________

Street Address, City, State, Zip: __________________________________________________________________________

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

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

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

Name on Card: Card number:

Exp Date: Sec. Code: Billing Phone:

Billing Address

Authorized Signature

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

CONTRIBUTION INFORMATION

PAYMENT INFORMATION

Make your check payable to FIADA-PAC and mail to FIADA at: 1840 Fiddler Court, Tallahassee, FL 32308

FAX: 850.385.3251

POLITICAL ACTION COMMITTEE

FIA AD

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COMPLIANCE TIPIf your ads (including your website) contain offers in big type and have asterisks and small type that limit or condition the offers, you should drop what you are doing and call your compliance lawyer. The Federal Trade Commission has recently warned merchants about their advertising practices, and you need to be sure that what you are doing in your ads will pass muster.

FEDERAL DEVELOPMENTSUpping the Ante. On September 9, the Consumer Financial Protection Bureau and the Federal Reserve Board announced that they are increasing the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions. The Dodd-Frank Act provides that these thresholds must be adjusted annually by the increase in the consumer price index. As adjusted, TILA and CLA protections generally will apply to consumer credit transactions and consumer leases of $54,600 or less in 2015 - an increase of $1,100 from 2014.

Supervisory Highlights – Nothing New. On September 17, the CFPB released supervisory highlights related to discrimination in auto finance. The report contained nothing new, rehashing the Bureau’s fair lending supervisory activity in the auto finance market over the past two years. CFPB examiners found that

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

A Look At Current Legal IssuesBY THOMAS B. HUDSON AND NICOLE FRUSH MUNRO, HUDSON COOK, LLC

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

the indirect auto creditors had discretionary pricing policies resulting in discrimination against African-American, Hispanic, and Asian and Pacific Islander buyers. As a result, the Bureau states that it believes these buyers paid more for their auto financing than similarly situated non-Hispanic white buyers. The report included the much-anticipated “white paper” on the CFPB’s methodology for assigning “proxies” for sex, race, and national origin to creditors that do not collect this information directly from consumers. The white paper contains no new insight into the Bureau’s methods, stating that the proxy methodology has “evolved over time and will continue to evolve as enhancements are identified that improve accuracy and performance.”

Care to Watch a Re-run? The CFPB held a field hearing on auto finance on September 18 in Indianapolis. The hearing featured remarks from Director Cordray and testimony from consumer groups, industry representatives, and the public. A recording of the event is available on the CFPB’s website.

LITIGATIONClaims Arising from Sale of Phony Debt Cancellation Agreement Dismissed: Car buyers bought a car from a dealership. The car price included a $750 charge for an optional debt cancellation agreement. The buyers sued a number of related dealerships for aiding and abetting one another and conspiring to sell and finance debt cancellation agreements that

were not true debt cancellation agreements eligible for financing under Maryland’s Credit Grantor Closed End Credit Provisions (“CECP”). The crux of the complaint was that their debt cancellation agreement required cancellation of the difference between the remaining balance owed and the vehicle’s value, as determined by the greater of the insurer’s determination or the vehicle’s book value, rather than, as required by CECP, cancellation of the remaining balance owed. The dealerships moved to dismiss the complaint, and the federal trial court granted the motion. The court found that the buyers did not state a claim for a violation of CECP because there was no theft or total destruction of their vehicle that would have triggered the terms of the debt cancellation agreement, and “there is no civil penalty for unlawful contract terms that are not enforced.” Similarly, the court found that the buyers did not state a claim for unjust enrichment or breach of contract by violating CECP because there was no CECP violation. Jones v. Pohanka Auto North, Inc., 2014 U.S. Dist. LEXIS 123528 (D. Md. September 2, 2014).

Consumer States FCRA Claim for Reporting Adverse but not Positive Credit History: A couple obtained a bank loan secured by their home and a vacation property. They fell behind on the note, and the bank refinanced it. When they fell behind on the second note, the bank refinanced it again. The couple made payments on the third note on time. The bank furnished the adverse credit history on the first and second notes, but it


did not furnish the positive credit history on the third note. The couple disputed the missing credit history with the consumer reporting agencies and the bank. When the bank refused to furnish the credit history on the third note, the couple sued the bank for violating the Fair Credit Reporting Act. The bank moved to dismiss. The federal trial court denied the motion. The court held that the bank’s failure to furnish the credit history on the third note could plausibly constitute a material misrepresentation that damaged the couple. Alley v. The Farmers Bank, 2014 U.S. Dist. LEXIS 120675 (M.D. Ga. August 29, 2014).

Buyer Not Entitled to Proceed on Certain Claims Arising from Failure to Disclose Prior Short-Term Rental Use of Vehicle: A car buyer filed a class action against the dealership where she bought her car and other related dealerships for engaging in a fraudulent scheme by failing to disclose that cars had previously been used as short-term rental vehicles. The defendants moved to dismiss the complaint, and the federal trial court granted the motions in part and denied them in part. The court allowed a Racketeer Influenced and Corrupt Organizations Act claim alleging a pattern of racketeering activity to proceed against all defendants. The court dismissed the breach of implied warranty and Magnuson-Moss Warranty Act claims because the buyer did not prove that her car suffered from any tangible defect. The court dismissed the Maryland Consumer Protection Act claim, finding that the buyer’s claim that she suffered an economic loss by overpaying for the car was insufficient to prove injury. The court dismissed the breach of contract claim, concluding that the buyer’s claim regarding a disclosure omission was insufficient to establish a breach of the parties’ contract. The court allowed the buyer to proceed with her negligent misrepresentation and deceit claims against the dealership where she bought her car even

though the dealership claimed that it showed her a CARFAX report indicating the prior short-term rental use of the vehicle. In addition, the court allowed the buyer to proceed with her unjust enrichment claim against that dealership. Chambers v. King Buick GMC, LLC, 2014

U.S. Dist. LEXIS 123629 (D. Md. September 2, 2014).

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

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INDUSTRY NEWS

The NIADA Foundation promotes the academic growth of youth throughout the United States and awards scholarships annually in June at the National Independent Automobile Dealers Association Convention. The competition for all students is judged by Northwood University who narrow the field of competitors down to four candidates representing each of NIADA’s four regions and also selects the National scholarship recipient. The scholarship recipients achievements, combined with their leadership and community endeavors are sure to make them an asset to any institution of higher learning. Applications for the 2015 Regional Scholarships are now being accepted. Four students, one from each region, will each receive a $3500 scholarship to the college or university of their choice. The awards are presented each June at the National Independent Automobile Dealers Association Convention. To be eligible, students should:• Be classified as a high school

senior during the current 2014-2015 school year and legally residing in one of the 4 NIADA Regions.

• Have maintained an outstanding academic achievement record as reflected by an official high school transcript; and

• Demonstrate an aptitude for

NIADA Foundation Scholarship Applications Now Being Accepted

college work as measured by SAT or ACT score.

To download an application, go online to http://www.niada.com/foundation_scholarship.php. In addition to the regional scholarships, the Foundation also coordinates industry-related scholarships sponsored by individual companies. Currently, one national scholarship is offered by AutoTrader.com to a deserving student currently or planning to attend Northwood University’s automotive industry degree program. Application information may be obtained from Northwood University, Office of Financial Aid, 4000 Whiting Drive, Midland, Michigan 48640-2398 or call them at (989) 837-4230.

Download the scholarship application at www.niada.com

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

http://www.niada.com/foundation_scholarship.php

www.facebook.com/FLIndAutoDealersAssoc

www.acemotoracceptance.com


INDUSTRY NEWS

Effective January 1, 2015, Florida’s minimum wage will rise to $8.05 an hour. Florida’s minimum wage will be 80 cents per hour higher than the federal minimum wage at the beginning of 2015. Per Florida Statutes and federal requirements, be sure to post the new minimum wage poster notices (both the Florida and federal posters) in a conspicuous and accessible place. Florida’s minimum wage poster is available for downloading in English and Spanish from the Florida Department of Economic Opportunity’s website www.floridajobs.org. The federal poster can be downloaded from the U.S. Department of Labor’s website at http://www.dol.gov/whd/regs/compliance/posters/flsa.htm.

Minimum Wage to Increase in January

Recently, the National Highway Traffic Safety Administration issued an urgent advisory to the owners of some 7.8 million cars throughout the United States about a massive recall for defective airbags. The recall affects cars from 10 manufacturers that used Takata airbags in various vehicles spanning model years 2000 to 2011. It impacts some of the most popular used vehicles on the market, including Dodge Ram trucks, Ford Mustangs, Subaru Outbacks and Legacies, Toyota Corollas and Nissan Maximas, Pathfinders and Sentras. Honda was the manufacturer most affected with more than 5 million recalled vehicles, including Accords, Civics, CR-Vs, Elements and Odysseys. NHTSA said the problem seems to be related to consistent exposure to heat and humidity, making vehicles in the South more susceptible to the airbag failures. But the agency also said its investigation is ongoing, which means other factors could be involved –and that there could be even more recalls in the near future. In the advisory, NHTSA deputy administrator David Friedman said getting the recalled vehicles repaired quickly “is essential to personal safety.” Which is why NIADA urges all of its member dealers, regardless of their location, to check their inventory immediately to see if they have any of the recalled vehicles in stock and take the appropriate steps to have the defect remedied before offering it for sale. Dealers can now check whether their vehicles have open recalls with NHTSA’s recently unveiled VIN lookup tool, available for free at www.safercar.gov/vinlookup.

NHTSA Issues Urgent Warning for Airbag Recalls

Spireon recently introduced GoldStar CMS, a revolutionary new collateral management platform that helps vehicle finance companies dramatically reduce the time and costs related to funding and servicing automobile loans. GoldStar CMS provides powerful and intuitive software solution features an intuitive user interface and tools designed to help simplify the loan process for dealers and lenders, allowing them to process more loans more quickly. A visual data-rich dashboard, which allows dealers to see at a glance the status of devices, renewals, usage, recent alerts and top device usage, then drill down to take action on alerts before a problem escalates. Additional features include:• Mobile VIN Scanner: A

smartphone app that allows dealers to scan a vehicle identification number (VIN) and automatically populates a vehicle’s year, make and model into their GoldStar system.

• Reference Genie: An innovative, less-invasive new way for dealers to check a customer’s references (work, home address, etc.) based on the locations they frequent instead of manual phone calls.

• Location Genie: A solution that

Spireon Introduces GoldStar CMShelps dealers forecast reliable collection locations at any given time and day for repossession purposes. Dealers can select data over 30, 60 or 90 days to determine the most likely location based on historical data, helping reduce time and cost associated with vehicle recovery.

• Group commands: Allows dealers to create groups of vehicles and assign common policies and rules for GeoFences, heartbeats, delinquency alerts and more.

• Device health tools: Checks factors that impact the overall health of the location device, including car battery strength, and strength of cellular signal and GPS signal. This tool is designed to help dealers know if action is needed, such as tracking a vehicle with a dead battery.

• Variable heartbeats: Pings a device in intervals based on the dealer’s preference, providing around the clock locations over time for a vehicle.

• Custom reports: The dealer can select reports and alerts that make the most sense to their business, including the establishment of bulk GeoFences, quick fences and more.


LISA COMPAGNOTreasurer

Palm Tree Auto SalesStuart, FL

(772) 288-2099

JIM WINTERICK, SR.President

Gulfstream Motor CreditMiami, FL

(305) 253-2335

DINO MERCURIOChairman of the Board

Independent Credit, Inc.West Palm Beach, FL

(561) 686-8673

CHRISTOPHER LEEDOMChairman of the Board

AutoMaxxSarasota, FL

(941) 309-1111

BRAD JOELSecretary

Splish Splash Auto SalesPrinceton, FL 33032

(305) 258-1191

PAUL MATTONSenior Vice President

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

SCOTT LANIERRegional Vice President

Credit CarsOrlando, FL 32808

(407) 295-6211

STEVE MARBAIS, CMDRegional Vice PresidentMarbais Enterprises, Inc.

Ocoee, FL(407) 877-7422

GOVINDA ROMERORegional Vice President

Autoflex LLCGainesville, FL(407) 468-9974

2014-2015 FIADA EXECUTIVE COMMITTEE:

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PHIL RISLEYRegional Vice President

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

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November 2014 issue

Documents

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