October 2014 issue

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

Information and Insight for Florida Used Car Dealers

SINCE 1940

A Publication of theFlorida IndependentAutomobile DealersAssociation

OCTOBER 2014

PRST STDU.S. POSTAGE

PAIDFULTON, MO

PERMIT NO. 38

www.FIADA.com

Election Day is almost here. Make the time to cast your vote. The future of your business depends on it. 6.

2 — Independent Dealer — October 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 Dino Mercurio President

Jim Winterick, Sr. Senior Vice President

Christopher Leedom Chairman of the Board

Phil Risley Secretary

Paul Matton Treasurer

Lisa Compagno Regional Vice President

Frank Fuzy Regional Vice President

George Hickey Regional Vice President

Steve Marbais, CMD Regional Vice President

Govinda Romero Regional Vice President

FIADA STAFF Lisette Mariner Executive Director

Terry Myers Educational Instructor

Sarah Langley Administrative Director

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.

ContentsOctober 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 Dino Mercurio

6 Executive Director’s Message Lisette Mariner

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

10 Member News

12 Unlocking the True Potential of Your Dealership The second article in a series of how to turn your Buy Here-Pay Here Dealership into a successful, growing business.

14 When Is a Sale Tax Exempt? Guidelines for when you have to collect sales tax and when you don’t.

16 Legislative Update FIADA Lobbyist Sandra Mortham

17 PAC Contributors There is still time to add your name to the list and help add to the PAC Fund.

20 Problem or Opportunity? Success is a state of mind. If you can see challenges as opportunities, then you have the advantage.

22 CFPB Proposes Rule to Allow Supervision of Larger Nonbank Auto Finance Companies Be aware of what the CFPB is proposing and how it will affect you.

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

30 Industry News


is a chance for you to make a difference and have your voice heard by voting for candidates you think will make our communities, our state, and our nation a better place for us, our children, and our future. Every vote counts and every vote is important. You can even take it a step further by making political donations, offering to put a sign at your dealership

for a candidate you feel strongly about, or get involved in the campaign itself as a volunteer. One of the greatest freedoms we have is the freedom to vote and the ability to elect people we feel will lead us best, but it’s

not effective if you don’t participate! So this November, please remember to get out and vote!

Dino MercurioFIADA President

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

Cherish Your FreedomBY DINO MERCURIO, FIADA PRESIDENT

By the time you get to read this message, FIADA will have just wrapped up its annual convention and trade show, and a new slate of officers will have been elected

to serve on the Executive Committee. They will be charged with leading your association over the next year, making sure the voice of the Independent Dealer is heard, represented and well spoken for throughout the State of Florida.

But, these are not the only important elections taking place this time of year. October and November will bring a flurry of activity from potential candidates on the local, county, state, and even the federal level. We will be bombarded with print, radio and television ads until we are ready to turn blue, but I urge you to sift through the rhetoric and political speak. Do a little research on those vying for office, get involved in the process, and get out and vote! This

One of the greatest freedoms we have is the freedom to vote and the ability to elect people we feel will lead us best, but it’s not effective if you don’t participate!

SPREAD THE WORD!Do your customers know you are an FIADA member? Use the FIADA logo in your advertising and you’ll not only gain credibility but help educate the public about FIADA membership. Need some examples? Check out Park Auto Mall’s latest commercial at their website, www.ParkAutoMall.com and Palm Tree Auto Sales’ ad online at www.palmtreecars.com.


Vehicle Protection Plans I GAP Coverage I Credit Insurance I Limited Warranty ProductsDealer Participation Programs I F&I Training I Advanced F&I Technology

Contact Protective’s Florida representative, Chris Behrens at 866 452 7335

Protect Tomorrow. Embrace Today.™

Protective Asset Protection has

been serving auto dealers of

all sizes for 50 years. We know

your job is tough – that’s why

we’re in the process of getting

you some help with your finance

and insurance solutions. So,

be on the lookout for your new

addition. We’ll be making the big

announcement soon.

We’re hiring your new F&I manager. Find out when they start.

Visit newFandImanager.com

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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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

Committee Involvement Has Big Benefits BY LISETTE MARINER, EXECUTIVE DIRECTOR

As we head into local, state and federal elections and close out the hurricane season, I’m reminded of our own new beginnings and ending of a season. You may

not be aware but every year, during the FIADA annual meeting, the membership elects officers. Your nominating committee has put forth a wonderful slate of officers including:

• Paul Matton with Park Auto Mall (St. Petersburg) as Senior Vice President

• Lisa Compagno with Palm Tree Auto Sales (Stuart) as Treasurer

• Brad Joel with Splish Splash Auto Sales (Princeton) as Secretary

• Regional Vice Presidents include: • Phil Risley with Cars & Credit of Jacksonville

(Jacksonville), • Scott Lanier with Credit Cars (Orlando), • Chris Leedom with AutoMaxx (Sarasota), • Steve Marbais with Marbais Enterprises (Ocoee) and • Govinda Romero with Autoflex (Gainesville).

I’d like to thank our President Dino Mercurio for all he’s done this past year. Dino has helped the Association in so many ways. I congratulate him as he continues his service to the industry as the FIADA Chairman of the Board and Chair of the Automobile Dealers Advisory Board.

I look forward to working closely with our newly elected President, Jim Winterick, Sr. He’s ready to serve. He recently presented a PAC contribution to Representative Erik Fresen (HD-114) in Miami while FIADA Lobbyist Sandy Mortham and I presented a PAC contribution to former Senator Ellyn Bogdanoff (SD-34) at a fundraiser in Tallahassee. Help them make the association stronger. Now is the time to get involved. One way to get involved and give back is to participate on a committee. Committees meet via conference

From L to R: FIADA Lobbyist Sandra Mortham, Senator Ellyn Bogdanoff and FIADA Executive Director Lisette Mariner.

FIADA President-Elect Jim Winterick, Sr. (Left) with Representative Erik Fresen (Right).

Continued on Page 8.

call and discuss new programs, current issues and explore ways to improve FIADA services. We have something for everyone. The committees include:

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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 recommendation of approval of all new programs, amending or canceling current programs.

Legislative: The legislative committee has the authority and duty of reviewing

INVOLVEMENT PAYS continued from Page 6

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 independent automobile dealer industry and FIADA.

Convention: The convention committee is an ad hoc committee that is charged with reviewing educational programs, sponsorship opportunities, entertainment, theme and general assistance with the annual convention.

Your service on a committee helps the association and provides an opportunity for you to give back to your industry. Your executive committee and board of directors are made up of volunteers that give of their time and expertise. They have made a commitment to you as a member of the association. Help support these wonderful men and women by making a commitment today to serve on a committee. It really isn’t much time at all to serve on a committee. If you are interested in serving on a committee please contact me at [email protected] or 800.237.0448 ext. 100.

Friday, Nov. 7, 2014 10am-2pmADESA Tampa 3225 North 50th Street, Tampa, FL 33619

Town Hall Meetings are absolutely FREE to attend.

Don’t miss this great opportunity to network with colleagues and ask your burning questions to the experts.

All attendees will be entered into a drawing for a Florida vacation getaway, valued at $600.00 sponsored by Anthony Chicklowski and Auto Auction Promotions.

Lunch will be cooked onsite by Donatello’s Catering.

A Special Thanks to our Sponsors:ADESA, Anthony Chicklowski and Auto Auction Promotions, Auto Data Direct, and Donatello’s.

Get more info or register online at www.FIADA.com

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

New Members SEPTEMBER 2014

101 RACINGDeerfield Beach, FLStephen GoodeSponsor: Amelia Tillman

AAA AUTO GROUPMiami, FLGuillermo PinedaSponsor: Amelia Tillman

APOLLO BEACH AUTOGibsonton, FLChristopher Maynard GMSponsor: Terry Myers/Mark Bridgman

BEST CARS OF MIAMI INC.Doral, FLTony BolanosSponsor: Frank Fuzy/Amelia Tillman

CROWN MOTORS, INC. DBA VOILA AUTO GROUPOrlando, FLChuck NemehSponsor: FIADA.com

EDDIE MERCER AUTOMOTIVEPensacola, FLEddie MercerSponsor: FIADA.com

IDRIVE MOTORS LLCSt Petersburg, FLPedro CarrasquilloSponsor: Terry Myers

M & B GOLF CART SALES INC.Cocoa, FLKevin McGuireSponsor: FIADA.com

MOTOR THIS-MOTOR THAT LLCSt Augustine, FLRalph ValentSponsor: Amelia Tillman

NUWAYAUTOFLMiami, FLRishi BurkeSponsor: FIADA.com

P.A.C.Wakefield, MAGeorge NedderSponsor: Sarah Langley

RAMON PRATSTampa, FLRamon PratsSponsor: Terry Myers

RECYCLED RIDESBrooksville, FLMark MarcotteSponsor: Terry Myers

RODERICK MCCOWNBradenton, FLRoderick MccownSponsor: Terry Myers

RODERICK SCHARBERBrandon, FLRoderick ScharberSponsor: Terry Myers

STARS GPSThomasville, NCTeresa KelemenSponsor: Lisette Mariner

SUSTAINED MOTION CAR COLLECTION, LLCFort Myers, FLCarolann SwansonSponsor: FIADA.com

SVR TRACKINGSan Diego, CAKelly VenturiniSponsor: Amelia Tillman

VIP AUTO GROUP INCClearwater, FLAlbert WagnerSponsor: Kevin Scott

ZH CAPITAL HOLDINGSMiami, FLNelson HincapieSponsor: Sarah Langley

40+ Year MembersNoegel’s Auto Sales Starke, FL

30+ Year MembersAmerica’s Auto Auction Jacksonville Jacksonville, FLMarteney Motors Melbourne, FLParkway Auto Sales, Inc. Homestead, FL

20+ Year MembersSkipper Limited, Inc. Graceville, FL

10+ Year MembersCars & Credit of Jacksonville Jacksonville, FLEncore Motorcars of Sarasota Sarasota, FLFrontier Motors, Inc. Pensacola, FLLKQ Daytona Pick Your Part Daytona Beach, FLLeedom Group Sarasota, FL

Under 10 Year MembersAlley’s Auto Wholesale Jacksonville, FLAnswer One Motors Tallahassee, FLAuction Direct USA Jacksonville, FLAuto Express Enterprises, Inc. Orlando, FLAuto Plan, Inc. Tampa, FLCar City West Palm Beach, FLCopart, Inc. Opa Locka, FLFL Sunshine MC Parts Company, High Tech Locksmiths Miami, FLMattas Motors Punta Gorda, FLSkypatrol, LLC Doral, FLSustained Motion Car Collection, LLC Lehigh Acres, FLThe Motorcoach Store Bradenton, FLTraditional Motorsports Lakeland, FLWholesale Auto Advisors Inc. Groveland, FL

Renewing Members SEPTEMBER 2014

Rejoining Members SEPTEMBER 2014

VALDO AUTO SALES CORP.Miami, FLCarlos ValderramaSponsor: Amelia Tillman

VEHICLE CLEARING HOUSEWinter Garden, FLRick KnappSponsor: FIADA.com

FIADA is your number one source for advice and information. Our network of industry veterans, professionals and consultants can help you find the answers you are looking for. Call us at (800) 237-0448 or go online to www.FIADA.com!


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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12 — Independent Dealer — October 2014

Capital Needs of the BHPH Dealer, Part II

Adequate capital is one of the most important aspects of becoming a successful BHPH

dealer. The capital needed for a BHPH operation will be substantial ranging from around $500,000 for an operation doing about 5-10 BHPH deals a month up to several million dollars for dealers doing 30 – 50 BHPH deals per month. Actual capital requirements will vary based on the average price of your cars, down payments, and the length of term on the contracts.

There are three major areas requiring substantial capital for the BHPH dealer. The first two, working capital needed to fund the daily operations of your dealership and the capital required for the inventory on your lot are required for all dealerships. The third and largest capital requirement for BHPH dealers is to fund your contract receivables. Only a few dealers are able to handle all of their capital needs without borrowed funds. The lack of adequate capital forces many dealers to sell off contracts after 3-6 months aging. This practice should only be used as a last resort because it will reduce repeat and referral business.

It is recommended you have sufficient

BY RUSS ALGOOD

B H P H T O P I C S

working capital to cover 2 months of expenses, plus 25% of the cost of your vehicle inventory to cover curtailments and inventory which is not eligible for floorplan. Floorplan lines of credit are typically used to provide the remaining capital need for inventory.

The most common means of funding BHPH receivables is with a finance company or a bank. Banks are typically lower cost, however few banks provide financing for BHPH receivables and most of the banks that do, will require you have well over $5,000,000 in receivables with a long track record of successful operations and excellent financial reporting capability.

A finance company is often the best choice for a BHPH dealer selling 75 or fewer BHPH deals per month. Working with a finance company that provides both

Part two in a series that explains the need for Buy Here-Pay Here dealerships, and the success they can have if managed correctly.

floorplan and contract funding, while allowing you to maintain relationships with your customers, has several advantages. One big advantage of a company that provides both is that a single company will be able to pay off the floorplan on your sold vehicle with the deal funding amount. A single source will also provide floorplan for your repossessions, in both cases eliminating the additional working capital required when using separate sources. Whether you deal with a finance company or a bank, it is important to work with a company who understands and who is committed to the BHPH business.

Russ Algood is the CEO at AMAC, a rapidly growing finance company doing business in though out the Southeast and most of Eastern seaboard of the United States. Anyone wanting more information can contact AMAC at 704-882-7100 (ext. 7509) or visit their website at. www.acemotoracceptance.com

www.fiada.com

There are three major areas requiring substantial capital for the BHPH Dealer. Funding daily operations, securing inventory and funding contract receiables.


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to learn this basic rule: Every sale of tangible personal property in the state of Florida is subject to sales tax unless there is a specific exemption AND the administrative rules for that exemption must be followed to exempt (or partially exempt) the transaction from tax. The second thing you need to know is that you, as the dealer, are responsible for interpreting the law for each transaction to see if an exemption applies as well as collecting (and retaining) all the proper documentation. If the dealer misinterprets the law or does not have the right documentation, executed properly and within the correct time frames in relation to the transaction - then the dealer becomes liable for the tax. Of course, the customer always wants to avoid paying the sales tax, but it is the dealer that has been given the responsibility of collecting the tax. No, this does not seem fair in the least, but this is the law that car dealers are forced to deal with. The Department of Revenue does not care in the least that you have collected hundreds of thousands if not millions of tax dollars for the state. If you make a mistake, then your company is liable for the tax. So complain as you might, if you want to stay in the business of car dealer (and avoid potential jail time for sales tax fraud), then you had better learn the ends and out of Florida sales and use tax. At this point, it is probably easiest to break things down into tax exempt, partially tax exempt, and fully taxable transactions.

When Is a Sale Tax Exempt?

The purpose of this article is to go over some of the requirements a Florida car dealer faces

when attempting to comply with the sales and use tax collection and remitting responsibilities for the Florida Department of Revenue. Failure to comply with the rules can be devastating to a car dealer and the common “but I remitted every penny I collected” defense does not protect you from liability. While the Florida Department of Revenue may refer to a car dealership as a “business partner,” the Florida Department of Revenue expects the car dealer to be responsible for every mistake and missing document and the resulting sales and use taxes. In case you have not heard, the Florida Department of Revenue has a task force out against the used car dealer industry statewide based on a comparison of DMV reports to sales tax returns.

If you have been in the car dealer business a long time, then you might remember that the Florida Department of Revenue used to offer local training classes to new businesses or new employees in old businesses, to make sure that they really knew how to comply with the sales and use tax laws. Unfortunately, these local training programs were cut when the state began running into budget problems in 2008.

The best place to start when dealing with Florida Sales and Use Taxes is

BY JAMES SUT TON, CPA, ESQ.

S A L E S TA X

Knowing when to include sales tax, and when it is exempt, can be tricky. Understand the requirements and when to collect it on your deals.

TAX EXEMPT CAR SALESEvery customer wants to know how to exempt the transaction from sales tax completely. Your salesmen probably want to know the same thing so they can get a competitive advantage over the dealer down the street. But, as you learned above, the business owner/dealer is responsible for collecting and remitting any taxes that are due the state of Florida, so the “fully exempt” scenario is the most dangerous to the business owner. For this reason, a dealer should have a very rigid approval process for any transaction purporting to be tax exempt. Tax exempt transactions can be broken down into three categories:

Sales for resale (to other car dealers)• in state dealer: Form DR-13

Resale Exemption Certificate • out of state dealer: follow

procedures in Rule 12A-1.007(6)(b), FL Admin. Code.

Sales to an exempt organization (tax exempt entity, e.g. County School Board) • Form DR-14 - Consumer’s

Exemption Certificate • US Government: proof of sale

to US Government (Rule 12A-1.038(4)(b), FL Admin Code)

Sales shipped out of state/country (not picked up by the customer locally.• Must have shipping documents

proving vehicle left the state before the owner took possession and control. This applies to internet sales as well.

• Preferable to have the customer sign a statement that the customer accepted delivery of the vehicle out of state (give the date and location, with a witness and notary.

Sale to someone from a state with no sales tax• Fully executed Form DR-123 must


be signed at the time of the sale.

Beware, just because you think a transaction falls into one of these categories, it does not magically become exempt. The car dealer is responsible for not only proving that the transaction fits into one of these tax exempt categories, but also must have all the forms required by the FL DOR. We briefly mention the documentation required under each category above.

PARTIALLY EXEMPT CAR SALESSales to someone from a state with sales tax less than Florida• Fully executed Form DR-123 must

be signed at time of sale• Collect the buyers home state rate

up to Florida 6%• No local surtax charged

Sale over $5,000.00• The local surtax only applies to

the 1st $5,000. Thereafter, only 6% state tax rate applies.

Trade-in at time of sale only• value of trade does reduces the

sales price of the new car for sales tax purposes

FULLY TAXABLE CAR SALES• Any car sale that does not meet

any of the exceptions above (including paperwork).

Even if the taxpayer tells you that they will take the car out of the state the same day she buys it, the tax is due on the full price if the buyer take position of the car in Florida (presuming no other exemptions apply). Protect yourself and your company, make sure you do everything you can to educate yourself and train your employees about the rules and dangers of sales tax collection responsibilities.

REVEW YOUR RECORDS FOR MISTAKESWhether you are under a Florida sales

and use tax audit or not, it is a good idea to periodically have someone review your deal jackets for sales and use tax compliance. If you don’t have time to go through your records for the last three years, then pick one month from each year for review. Note what documents are missing and how you can correct your procedures

to make sure this doesn’t happen in the future. We also recommend that you contact the DMV for a report of all the cars registered in Florida that someone indicated you sold them the car. If this seems like over kill, then you should know that each and every Florida sales and use tax auditor are trained to pull your DMV records. If you have missing transactions, then don’t you want to know it now and possibly correct whatever is causing these transactions to slip through the cracks?

If you find problems with your records and possibly under reported sales, then there is a way to come clean that turns the table very much in your favor. We can help you go through a process called a Voluntary Disclosure in which you notify the Florida Department of Revenue that you have some accounting errors. We tell the DOR what was wrong and how much sales tax we need to pay. The Voluntary Disclosure has several advantages over going through an audit.• First, most, if not all penalties are

waived when you go through a Voluntary Disclosure.

• Second, there is a statutory presumption of no criminal

intent when you come through a Voluntary Disclosure. Yes, there are people that get arrested for as low as $4,000 of collected but not remitted sales tax in Florida and many of them seem to be used car dealers. Going through the Voluntary Disclosure and paying any collected but unremitted tax

all be guarantees that the matter will not turn criminal.

• Third, the state rarely will conduct a full audit of your records in a Voluntary Disclosure. They usually accept the amounts that you disclosure unless they have alternative information that disputes your disclosed amounts. This means the cost of going through a Voluntary Disclosure can be much cheaper than a full audit.

• Fourth, there is an unwritten rule that a company that just went through a Voluntary Disclosure usually does not get selected for a full audit for a couple of years after the Voluntary Disclosure. If a company just came clean, then it would likely be a waste of the state’s resources to audit your company. This is not a guaranteed, but it is the likely result.

Mr. Sutton is a Florida licensed CPA and Attorney and a shareholder in the law firm Moffa, Gainor, & Sutton, PA. Mr. Sutton’s primary practice is Florida tax controversy, with a almost exclusive focus on Florida sales and use tax. As always, consult your CPA for tax advice as it relates to your business.

In case you have not heard, the Florida Department of Revenue has a task force out against the used car dealer industry statewide based on a comparison of DMV reports to sales tax returns.


Election Day is almost here. Political ads are dominating TV. Candidate signs are staked out at every intersection and right-of-way available. It might be easy to get

annoyed with the non-stop bombardment, but try to keep perspective. Voting is a coveted right for all Americans, and we should be excited about the upcoming chance to exercise it.

Making your way to the polls requires effort, but the chance to put your support behind a candidate or a cause you believe in is well worth it. If you don’t think you’re vote makes a difference, consider these historical facts on the power of just one vote:

1645 One vote gave Oliver Cromwell control of England.1776 One vote gave America the English language instead of German.1868 One vote saved President Andrew Jackson from impeachment.1875 One vote changed France from a monarchy to a republic.1876 One vote gave Rutherford B. Hayes the Presidency of the United States of America.1923 One vote gave Adolf Hitler leadership of the Nazi Party.1941 One vote saved the Selective Service—just weeks before Pearl Harbor was attacked.1990 One vote decided a state House race in Oakland County, Michigan. Your vote counts, so make sure you cast it!

Thank you for the donations you made this year to the FIADA PAC fund. As a result of your support, we raised more than half of our goal of $30,000. As impressive as that is, it is not the time to stop. A healthy PAC fund is essential to furthering our efforts and strengthening our voice in Tallahassee. If you have not already donated, use the PAC donation form on page 19 or go online to www.FIADA.com. Let’s move the needle as far as we can before the 2015 Legislative Session begins.

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

In the past few months, we have distributed contributions from the PAC Fund to support legislators that are supportive of our industry and interests. Take a look at this list and use it as part of your research when deciding where to cast your vote.

State SenatorsSen. Lizbeth Benacquisto, SD30Sen. Jeff Brandes, SD 22Sen. Joe Negron, SD 32Sen. Greg Evers, SD02Sen. Jack Latvala, SD20Sen. Tom Lee, SD24Sen. Rene Garcia, SD38Sen. Kelli Stargel, SD15Sen. John Thrasher, SD06Sen. Aaron Bean, SC04Sen. 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 3

Non IncumbentsSen. Chris Latvala, HD 67Rep. Scott Plakon, HD 29Sen. Ellyn Bogdanoff, SD 34

It will be interesting to chart the results of the upcoming elections and see what happens on all levels—local, state and federal. I encourage you to get involved in the process. Making a donation, setting up a meeting with your legislator and showing support through phone calls and emails on key issues is our responsibility as United States citizens. Serve your country well by making it a priority to get out and vote.

It’s Not A Cliché, Every Vote Really Does CountBY SANDRA MORTHAM, FIADA LOBBYIST


$ ,$

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$ 1 6 7 7 0

AutoMaxx/Leedom GroupCars & Credit of JacksonvilleCentury Motors of S. Fla., Inc.

ABC Autos, Inc.Bond Auto Sales, Inc. - HLDButler Auto RecyclingBuyer’s Zone, Inc.Car CreditCentral Florida Auto Wholesale, Inc.

Noegel’s Auto SalesTom Bush Auto PlexWayne Reaves Computer SystemsWheel City Florida, Inc.Xpress Finance, Inc.

Credit CarsGulfstream Motor Credit Co.

Gold Donors

PAC CONTRIBUTIONS56% Complete

Prime AutosSoutheast Car Agency, Inc.

Gold DonorsFlorida Auto Dealer SchoolFlorida Auto Exchange & Remarketing LLC.Galeria Auto Mart, Inc.General Auto, LLCGulfstream Motors Acceptance Corp.Mortham Governmental Consultants

Bronze Donors

ALIA EnterprisesAnswer One MotorsAuto Data DirectAutoflex LLCBC Motor Company, Inc.Car Buying Service of JacksonvilleCassat Auto SalesDennis LeVine & Associates, PADon Scott

Got Car Auto Brokers LLCJohn Rogers Used CarsLake Park Auto BrokersMJC Classic Cars LLCMurphy’s Auto Sales IncPalm Tree Auto SalesPCT Enterprises Of FL, LLCPremier Auto FinancePremier Motor Cars

Ray’s Motor Sales, Inc.Richard Bell Auto SalesTallahassee Auto AuctionThe Garage IncTimeless MotorsTurnpike MotorsUnica Auto SalesWork Auto Equipment LLC


Thank you to our PAC Contributors

POLITICAL ACTION COMMITTEE

FIA ADA & B A/S of Jacksonville, Inc.AAA Asset Recovery Inc.ABC Autos, Inc.Ace Motors IncADESA A/A of JacksonvilleADESA A/A of SarasotaAdesa A/A of TampaAlas Auto Brokers Inc.ALIA EnterprisesAll Bus ExchangeAlley’s Auto WholesaleAlliance Inspection Mgmt.American Classic Car SalesAmerica’s Auto Auction JacksonvilleAnderson’s Affordable AutoAndrew Thomas MotorcarsAngelo Auto WholesaleAnswer One MotorsAP Motorsales LLCAppearance Plus A/S dba C & C CarsAuction123.comAuto Data DirectAuto Express Enterprises, Inc.Auto Express SouthAuto Mart #1, LLCAuto Plan, Inc.Auto Sales of Winter Garden, LLCAuto Sales Zone LLCAuto SelectAuto Superstore of Orlando LLCAutoflex LLCAutoline PreownedAutomaxAutoMaxxAutomotive Fleet EnterprisesAutorama Auto SalesAutoRaptor CRMAutoshopper.com MagazineAutoTrader.comBargain Auto Sales of Lakeland, Inc.BC Motor Company, Inc.Beach Boulevard AutomotiveBenz Financial Services, Inc.Big O’s Northside Auto SalesBNM Enterprises, LLCBob Oliva Motors, Inc.Bond Auto Sales, Inc. BookItOut, Inc.Braman MotorcarsBubba Hill Auto Plaza, Inc.Butler Auto RecyclingBuyer’s Zone, Inc.C & L Motors

Car Buying Service of JacksonvilleCar CityCar Collection of TampaCar CreditCarBucksCARFAXCars & Credit of JacksonvilleCars UnlimitedCars.ComCarsforsale.comCar-Time, Inc.Casey’s Auto WholesaleCassat Auto SalesCelebrity Auto GroupCenter State Auto Sales IncCentral Florida Auto Wholesale, Inc.Century Motors of S. Fla., Inc.CFS of South FloridaChaney’s Used Cars, Inc.Charleston Auto AuctionCharlotte County RV Center, LLCCherry Cars, Inc.Chicago Motors IncChuck Carlson Auto Sales, Inc.Citrus Auto TraderCochran Motorsports IncCocoa Auto Dealers ExchangeCopart, Inc.Cox Motors, L.L.C.Credit CarsCredit Cars USADealer Funding, LLCDealerCenterDEALERPLATFORM LLCDealers Auto AuctionDealers Insurance Services, LLCDealership Capital Partners, Inc.Dennis LeVine & Associates, PADiamond II Auto Sales, Inc.Dick Moye Auto Sales, Inc.Dimension Motors Inc.Direct Auto Exchange, LLCDon ScottDonny Mills Auto Sales, Inc.DriveTime Sales & FinanceEconomy MotorsEd Cox Motor Company, Inc.Ed Tillman Auto SalesEddie Anderson Motors LLCEddie Mercer AutomotiveEdison Bridge Auto SalesElite AutosElite Jeeps

Encore Motorcars of SarasotaEnterprise Rent A CarEveryone Drives Auto Sales, LLCFamily Auto Mart, Inc.Fett Motors, Inc.Fidelis PPMFinancial Insurance Brokers Interna-tionalFirehouse Auto SalesFirst Auto SalesFirst Coast Auto SalesFirst Place Auto Sales IncFirstSun Financial, Inc.Fleet Lease DisposalFleet Street RemarketingFloorplan Xpress LLCFlorida Auto Auction Properties dba ABC Orlando A/AFlorida Auto Dealer SchoolFlorida Auto Exchange & Remarketing LLCFlorida Auto Exchange Co.Florida Autosport, Inc.Florida Credit UnionFlorida Fine Cars IncForeign Affairs AutoForeman Motors, Inc.Freeland Moore dba Harbor NissanFrontier Motors, Inc.G & D Auto Sales CorporationGaleria Auto Mart, Inc.General Auto, LLCGenuine Motorcars, Inc.Gibson Truck WorldGO FinancialGodby Enterprises DBA Universal Auto Sales of Plant CityGolden Oldies Auto Sales, Inc.Goldstar GPS guided by SpireonGot Car Auto Brokers LLCGraham Auto, Inc.Gray’s AutomotiveGreenfield USA Wholesale LLCGulfstream Motor Credit Co.Gulfstream Motors Acceptance Corp.GWC Warranty Corporation of FloridaHaims Motors IncHermanos Auto Wholesale DBA The Car ShackHH Sales, LLCHigh Tech LocksmithsHoldings of South Florida, Inc. dba Automac 2

Hometown Auto Mart, Inc.Hual’s Bikes to Custom TrikesiDrive Auto Group LLCIntegrated Dealer SolutionsIntegrity Auto Sales, Inc.International Auto GroupJ & J Auto SalesJ.D. ByriderJ.D. Byrider, TallahasseeJason SantiagoJD Byrider of BradentonJeffs Auto Sales and Service, LLCJ-Linn MotorsJohn Rogers Used CarsJPM Sales, Inc.Kathy’s KarsKicklighter Auto Sales LLCKillgore, Pearlman, Stamp, Ornstein & Squires, P.AKPM Auto Exports IncKurkin Brandes LLPLake Park Auto BrokersLarry’s Auto Service CenterLash Auto SalesLatin MotorsLazydaysLeedom GroupLovering Auto SalesM & M Auto SalesM & W Auto SalesMacklin Automotive Co.Maher ChevroletMancini Automotive, Inc.Manheim Fort MyersManheim TampaManheim’s Central Florida A/AManheim’s Lakeland A/A, Inc.Marbais Enterprises, Inc.MarkOne FinancialMartinez & Associates, CPAs, P.A.Maxx MotorsMcKinna Auto SalesMears Motor LeasingMears Transportation GroupMelbourne Auto Mart, Inc.Miami MotorsportsMicroBiltMike Hill Used Cars, Inc.Mike Kashtan’s Superior A/SMillenia Motors, Inc.Millennium MotorsMJC Classic Cars LLCMobility Freedom, Inc.

Together we have raised $16,770 for the FIADA PAC fund and are 56% complete to our goal of $30,000.


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

Mobility Styles IncMortham Governmental ConsultantsMotorcar Gallery, Inc.Murphy’s Auto Sales IncNational Auto Lenders, Inc.National Dealer ServicesNationwide Southeast LLCNext Car, Inc.NextGear CapitalNice Car, Inc.No. 1 Auto Sales, Inc.Noegel’s Auto SalesOcean Auto Sales of Miami, Inc.Off Lease OnlyOrange County Motors, Inc.Orange Sports Center, Inc.Orlando Lawn Trucks LLCOutdoor Recreation World, Inc.Owl Automotive Group IncP.A.C.Palm Tree Auto SalesParadise Auto Brokers, Inc.Paragon Auto Sales, Inc.Park Avenue MotorsPark Motors, Inc.Parkway Auto Sales, Inc.

Parkway Wrecker ServicePassTimePCT Enterprises Of FL, LLCPonce Used Cars, Inc.Port Motors, Inc.Premier Auto FinancePremier Motor CarsPrime AutosPro-Power Auto Sales CompanyR & L Auto WholesaleRay Whitts Used CarsRay’s Motor Sales, Inc.Refine Coach Inc.RFJ Enterprises LLCRichard Bell Auto SalesRiker’s Auto FinancialRoney Auto SalesRTG Auto Sales, LLCSanfer Sports Cars, Inc.Sanford Auto Dealers ExchangeSanmi Auto ExpressSanta Fe Power SportsSensible Auto LendingSharp Deal Automobiles Corp.Showcase Auto Brokers USA, Inc.Sides Cars-Trucks

Skipper Limited, Inc.Snider’s Truck & Auto SalesSouth Florida Car BuyersSouth Side KiaSoutheast Car Agency, Inc.Southeast Fleet Auto Sales, Inc.Southside Autos, Inc.Spanos ImportsSplish Splash Auto Sales, Inc.Stepanek’s A/S & Service, Inc.Sterling Credit CorporationSUN FINANCIAL HOLDING LLC.Systems 2000Tallahassee Auto AuctionTallahassee AutoFinance dba Gary Moulton Auto CentTallahassee Salvage, Inc.The Auto Source, Inc.The Auto Village LLCThe Car Connection WestThe Garage IncThe Pinnacle GroupThe Surety GroupThe Wholesale Club, Inc aka Target Auto BrokersTimeless Motors

Tom Bush Auto PlexTomlinson Motor CompanyTop Car SalesToy StoreTraditional MotorsportsTurnpike MotorsUltimate Image Auto, Inc.Ultimate Motorcars of Florida, Inc.Unica Auto SalesUnited Acceptance, Inc.United Auto USA CorpUsedCars.com by DealixVan’s Cars & TrucksVeneauto CarsVIP Auto SalesWaterfront Auto Sales, Inc.Wayne Reaves Computer SystemsWheel City Florida, Inc.Wholesale Auto Advisors Inc.Williams & Stazzone Insurance Agency, Inc.Wise Way Auto Sales, Inc.Wolters Kluwer Financial ServicesWoodall Auto Wholesale, Inc.Work Auto Equipment LLCXpress Finance, Inc.Your Auction of Tampa Bay

POLITICAL ACTION COMMITTEE

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Problem or Opportunity?

One of the advantages of working with dealers around the country, is there are always

new challenges and solutions being discussed.

A recent Polk Study said the average age of all light vehicles on the road now stands at a record high of 11.4 years. It was 11.2 years last year and in 2002 it was 9.8 years. It has continued to rise in age for 11 consecutive years.

“These are interesting times for the automotive aftermarket,” said Mark Seng, vice president of Polk’s aftermarket practice. “Customers from independent and chain repair shops should be paying close attention to their business plans and making concerted efforts to retain business among the do-it-for-me audience, while retailers have a unique and growing opportunity with potential consumers wrenching on their own vehicles.”

Americans are holding onto cars and light trucks longer for economic reasons, particularly since the recession, and because vehicles are engineered and assembled to last longer, analysts say.

This may seem like a problem for the retail auto industry, but it also presents some great opportunities. If you have a service center, these are potential customers as they have to maintain and repair these older, higher mileage vehicles.

B U S I N E S S B A S I C S

For the sales department, this is a great source of prospects as at some point they will have to replace their vehicle as opposed to repairing it.

The most prevalent prospecting resource in today’s automotive industry is the Internet. Automotive websites abound and provide information and dealership inventory specifics to the potential retail buyer. Manufacturers and individual dealers alike compete for “ownership” of the elusive “Internet lead.” Response time, the information provided to the consumer, and the ability to meet and exceed the consumer’s expectations, typically determine who wins the “ownership” competition. Nearly 100 percent of today’s retail automotive prospective buyers will research their purchase using the Internet (and most of them will do this before they ever set foot in a dealership showroom).

Automotive manufacturers and their finance entities represent another valuable source of prospecting resources. Manufacturer retail consumer leasing agreements are maintained in computer space, and reports of pending lease terminations are a valuable prospecting tool. Pending lease terminations produce the necessity for a vehicle owner to make a replacement vehicle purchase decision and thus they become a very viable prospect.

In today’s automotive environment, with numerous manufacturers having

been closed, the number of “orphaned owners” has escalated dramatically. Automotive manufacturers and state licensing offices possess names and addresses of retail vehicle buyers who have been displaced by the closing. These are valuable prospective customer names for retail dealerships.

Current dealership service customers are also good prospects. Successful dealerships utilize their vehicle service history records to identify customers with high mileage or recent high vehicle service expenses. Once identified, dealership sales personnel initiate contact to determine if service customers are actually new vehicle prospects.

In addition to the potential prospective customer resources noted above, a recent vehicle buyer referral is a valuable prospecting tool. Many sales consultants mistakenly avoid asking for referrals from a recent vehicle buyer, often because they have had limited success asking in the past. This is one area where past history will not determine future events. Each vehicle buyer should be asked if they have friends, family or neighbors who are currently considering a vehicle purchase. An existing customer is your best reference for a potential customer.

Combining effective customer prospecting tools with effective showroom floor management tools is the winning formula for increasing dealership traffic and ultimately, increasing vehicle sales. Ask your management team: are we average, below average or above the industry average?

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

BY JAY PRASSEL

Customers are holding on to their vehicles longer, but that doesn’t have to be a bad thing for auto dealers With the right prospecting, leads can be found in a variety of places.


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CFPB Proposes Rule to Allow Supervision of Larger Nonbank Auto Finance Companies

F E D E R A L U P D AT E

The Consumer Financial Protection Bureau expands its jurisdiction on automobile leases and seeks input on proposed rule.

self-propelled vehicle primarily used for personal, family, or household purposes for on-road transportation. The term does not include motor homes, recreational vehicles (RVs), golf carts, and motor scooters.”

The proposed rule covers refinancing of automobile purchase and lease transactions, as well as purchases of those refinance transactions.The proposed rule does not reach non-purchase transactions secured by a vehicle, such as an auto title loan, unless that loan is used to refinance an existing purchase money transaction.

Who is Covered?If a company enters into or purchases the covered transactions described above, it will be deemed a “larger participant” and be subject to CFPB supervision if “annual originations” exceed a threshold of 10,000 transactions per year. The term “annual originations” includes both new transactions and purchases of existing transactions. All transactions of affiliated companies are aggregated for purposes of the transaction count.

The CFPB estimates that the proposed rule will cover 38 companies, and roughly 91% of the transaction volume and 7% of the number of participants in the nonbank vehicle finance market.

What Does “Supervision” Mean?The Dodd-Frank Act gave the CFPB authority to supervise “larger participants” in consumer financial markets as defined by rule. The Bureau can oversee larger participants’ activity to ensure compliance with federal consumer financial laws. These laws include the “enumerated consumer laws,” such as the Truth-in-Lending Act and the Equal Credit Opportunity Act, as well as the more general powers of the Bureau to police unfair, deceptive, and abusive acts and practices.

On, September 17, 2014, the Consumer Financial Protection Bureau proposed

a rule to allow it to supervise certain nonbank auto finance companies. The proposed rule brings new oversight to larger nonbank auto finance companies who are not affiliated with larger depository institutions. Affiliates of depository institutions with assets over $10 billion became subject to CFPB supervision on July 21, 2011.

What Types of Transactions are Covered?The CFPB rule will cover non-bank companies engaged in extending credit for the purpose of purchasing an automobile or in leasing of automobiles to consumers. The proposed rule also covers companies that purchase automobile finance credit or lease transactions. The definition would cover both direct loans and retail installment sales transactions by dealers.

Notably, the Bureau exercised (for the first time) its authority to expand the scope of products covered as “financial products or services” by adopting a broad definition of covered leases. The general definition of leases covered by Bureau jurisdiction in the Dodd-Frank Act is limited to leases that are “the functional equivalent of purchase finance arrangements.” Most closed-end auto leases do not result

in lessee ownership of the vehicle without exercise of a purchase option, and are therefore not the “functional equivalent” of a purchase. The Bureau has expanded automobile leases covered by its jurisdiction by adding leases that federal rules permit banks to enter into. A bank may enter into a lease so long as the consumer is responsible for maintenance, upkeep, insurance and registration and the bank expects to recover its investment, plus a return, through a combination of lease payments and the residual value of the vehicle.

The proposed rule excludes auto dealers who are otherwise exempt from CFPB jurisdiction and also excludes buy-here-pay-here dealers (i.e., dealers who fall under CFPB jurisdiction because their consumer paper “is not routinely assigned to a nonaffiliated third party finance or leasing source”). For the purposes of supervision, the Bureau will cover the related finance companies of BHPH dealers if they meet the transaction volume criteria for larger participants.The proposed rule appears to cover portfolio purchases that are not directly related to the purchase of individual vehicles, although it does exclude “investments in asset-backed securities.”[1]

For purposes of the proposed rule, an “automobile” is defined as “any


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COMPLIANCE TIPHave you named a compliance officer yet? With all the increased emphasis on compliance in the F&I process, it’s high time you did. And hiring’s just the first step. Unless you can find someone who actually has compliance training (and good luck with that), you’ll need to arrange for training. After training, the compliance officer will need to build a compliance program. We’ve written several articles on how to go about doing that – if you want a copy of the articles, just email us.

FEDERAL DEVELOPMENTSCFPB Hits the RoadThe CFPB will be holding a field hearing on auto finance on September 18, 2014 in Indianapolis, Indiana. The hearing will feature remarks from Director Cordray, as well as testimony from consumer groups, industry representatives, and members of the public. The event is open to the public, but RSVP is required to attend. A livestream of the event will also be available. We think it is likely that the Bureau’s release of its “larger participant rule” for auto finance companies will be timed to coincide with the event.

Finance Company Tagged for Providing Inaccurate InformationOn August 20, the CFPB announced that it ordered First Investors Financial Services Group Inc., a mostly subprime auto finance company, to pay a fine of $2.75 million for allegedly providing inaccurate information about its customers to credit reporting agencies. The CFPB found that when FIFS discovered that it was furnishing inaccurate information to the credit reporting agencies, it notified the

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.

vendor, but did nothing more. According to the CFPB, FIFS did not fix the flaws in the computer system that was providing the inaccurate information or take any steps to correct the inaccurate information it had furnished. The CFPB alleged that FIFS continued to use the flawed system for years after discovering the problem. FIFS allegedly provided inaccurate information about consumers’ payments, overstated the amount by which consumers were past due on their accounts, inaccurately reported the date of first delinquency, inflated the number of times consumers were delinquent on their accounts, and reported that consumers’ vehicles were repossessed when they were actually voluntarily surrendered to the lienholders.

CFPB Tackles Servicemember AbusesOn August 14, the CFPB announced that it obtained a consent order with USA Discounters, Ltd., a company that operates a chain of retail stores near military bases and offers financing for purchases. USA allegedly tricked thousands of servicemembers into paying fees for legal protections servicemembers already had and for certain services that the company failed to provide. Specifically, servicemembers making purchases from USA were required to pay a $5 fee for a company called SCRA Specialists LLC to be their representative with respect to their rights under the Servicemembers Civil Relief Act. USA portrayed SCRA Specialists as an independent representative that would be available to receive notices of lawsuits filed by USA, inform USA of a change in a servicemembers’ address, and verify servicemembers’ military status. The CFPB alleged that SCRA

Specialists’ services were unfairly and deceptively marketed by USA and that many of the services were never actually performed. Under the settlement, USA will provide over $350,000 in restitution to servicemembers who paid the $5 SCRA Specialists fee and will pay a $50,000 penalty to the CFPB’s Civil Penalty Fund.

LITIGATIONDealership’s Reporting of Car It Sold to Buyer as Stolen Could Constitute Adverse Action under Equal Credit Opportunity Act: A woman bought a car from the dealership where she worked. After a dispute arose as to whether she had paid the entire down payment, the dealership bought the contract back from the finance company and filed a police report for theft of the vehicle. The buyer sued the dealership and its owner for violating the Equal Credit Opportunity Act by failing to provide her with a notice of adverse action. The federal trial court refused to dismiss the complaint. First, the court found that there was a genuine issue of material fact as to whether the dealership was a creditor under ECOA since the dealership extended credit to the buyer and then assigned the contract to a finance company. Next, the court found that a genuine issue of material fact existed as to whether the dealership took adverse action against the buyer because, according to the court, in order to report the vehicle as stolen, the dealership would have had to revoke or modify the extension of credit, which would constitute adverse action. The court also found that a genuine issue of material fact existed as to whether the dealership gave oral notice of adverse action to the buyer. See Simmons v.



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Expo Enterprises, Inc., 2014 U.S. Dist. LEXIS 97777 (M.D. La. July 18, 2014).

Courts Address Jurisdiction over Out-of-State Car Dealers: Two cases we report on this month discuss the issue of a court’s jurisdiction over out-of-state car dealers. In one case, a New Jersey resident bought a convertible from a California dealer. He viewed the car in California, signed documents in California, and wired the purchase price to the dealership in California. Later, he sued the dealership and its owner for fraudulent representations in federal court in New Jersey. The court dismissed the complaint for lack of personal jurisdiction. The court found that the defendants’ only contacts with New Jersey were that the dealership contacted the buyer in New Jersey by phone and/or email and provided photographs to him via the Internet. The court found that such limited communications were insufficient to confer specific jurisdiction over

the defendants. As for general jurisdiction, the court found that print advertisements in national publications do not constitute “continuous and systematic” contacts and that “a passive website that does little more than make information available to those who

are interested in it is not grounds for the exercise of personal jurisdiction.” See Corigliano v. Classic Motor Inc., 2014 U.S. Dist. LEXIS 97556 (D.N.J. July 17, 2014). In the other case, a Nebraska resident bought a Mustang

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It’s time to changeyour approach to F&I compliance

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or call us at 877-464-8326.Also follow us on:

after seeing the car on the website of a North Carolina company. After a series of emails and phone calls, the buyer bought the car for purposes of presenting the vehicle at auto shows in Nebraska. The buyer never travelled to North Carolina to see the car; instead, the seller arranged for a shipper to deliver the car to Nebraska. After determining that the car was not show quality, the buyer sued in Nebraska. The Nebraska trial court awarded a default judgment to the buyer, and, as required by North Carolina law, he filed a “Docketing of Foreign Judgment” in a North Carolina trial court to enforce the judgment. The North Carolina trial court found that the seller did not have sufficient minimum contacts with Nebraska necessary for a Nebraska court to have personal jurisdiction. A North Carolina appellate court reversed. While the seller’s actions were insufficient for general jurisdiction, appeals court found that the conduct was sufficient for a Nebraska court to exercise specific jurisdiction. The appellate court noted that although no one from the selling company physically entered Nebraska, it intentionally directed actions towards Nebraska by advertising on websites accessible to Nebraskans, negotiating with the buyer over several days, receiving the buyer’s payment from Nebraska, and shipping the car to Nebraska. See Meyer v. Race City Classics, Inc., 2014 N.C. App. LEXIS 810 (N.C. App. July 29, 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.

LEGAL ROUND-UP continued from Page 22

In the exercise of its supervisory powers, the Bureau generally begins by asking a company to provide substantial information and documentation in advance of a visit by Bureau examiners. Those examiners then spend significant time at the company, reviewing company records, interviewing employees and testing transactions. An examination can lead to various levels of confidential supervisory action, including imposition of orders to cease violation of federal consumer financial laws and provide consumer redress, and may also lead to a public enforcement action.

What are the Next Steps?If the rule is finalized, the proposal would be the Bureau’s fifth larger participant rule. Prior rules involved markets for money transmitters, student loan servicing, debt collection, and consumer reporting. After the comment period of 60 days from publication in the Federal Register, the Bureau may take three to 6 months to process and prepare a response to all of the significant comments it receives. Those responses are published with the final rule. Once a rule is final, it usually takes effect a month or more after it is published, and the Bureau is usually prepared to send initial examination letters to some market participants in days or weeks after the rule is effective.

Comments on the proposed rule may be submitted through the website at www.regulations.gov for 60 days after its publication in the Federal Register.

[1] Since the supplemental material indicates that the Bureau does not intend to cover securitization of auto finance transactions, the draft rule will require fine tuning to exclude all the intermediary parties who “own” those transactions in the process of a securitization, and possibly also the special purpose entity who holds title in a securitization.

It’s time to changeyour approach to F&I compliance

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or call us at 877-464-8326.Also follow us on:

CFPB RULE continued from Page 22

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INDUSTRY NEWS

Throughout the month of October, CarMax Auction sites will host catered meals and provide giveaways to dealers to thank them for their business. CarMax Auctions will open its newest facility in the Portland area at 13750 SE Johnson Road in Milwaukie on October 20. With more than 60 locations, CarMax Auctions offer dealers a fast and efficient auction process; a wide selection of makes and models that range in year, mileage and condition; and several payment options. CarMax has sold more than three million wholesale vehicles since 1996. The CarMax Auctions website provides a sneak-preview of vehicle inventory with photos, along with free Auto Check vehicle history reports on every vehicle. Wholesale customers also can receive email alerts when specific vehicles become available. All this information and the registration process can be found at carmaxauctions.com, as well as more information on Customer Appreciation Month. CarMax was founded more than 20 years ago to fundamentally change the way car buying is done. The company makes the process more ethical, fair and transparent by offering a no-haggle, no-hassle experience and an incredible selection of CarMax Quality Certified vehicles. CarMax Auctions prides itself on doing business with the same integrity and transparency.

CarMax Auctions Shows Off New Look and Thanks Wholesale Customers

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

Auto shoppers using a smartphone are more likely to share vehicle information on social media when they have a satisfying online experience with an automotive manufacturer (OEM) or third-party automotive site, according to the J.D. Power 2014 Automotive Mobile Site Study. The study, now in its third year, has been redesigned to capture details on content and tool usage while measuring what content is most effective on OEM and third-party automotive websites on a smartphone during the vehicle-shopping process. The study examines website usefulness across four key measures (in order of importance): information/content, navigation, appearance and speed. Satisfaction is calculated on a 1,000-point scale. One-third (33%) of shoppers say they “definitely will” share vehicle information via social media after an exceptional experience (overall scores of 901-1,000), compared with only 3 percent of shoppers after a poor experience (scores of 500 and lower). Among shoppers using an OEM or third-party automotive website, 45 percent say they either “probably will” or “definitely will” share information via social media about a vehicle they researched. “When vehicle shoppers have a positive experience on an OEM or third-party site, they are more likely to share the content they find useful or interesting with others,” said Arianne Walker, senior director,

Mobile Website Leads Lead to Greater Social Media Sharing of Vehicle Information

automotive media & marketing at J.D. Power. “This provides auto brands a great opportunity to get their content out in front of consumers through social media. The challenge is not only having great content to encourage sharing, but also ensuring that consumers have an outstanding experience no matter what site they are accessing on their smartphone.”

KEY FINDINGS• Shoppers who share vehicle information on social media are more likely to share imagery, such as exterior images (48%), interior images (42%) and videos (40%) than other less visual content, such as payment/lease (18%) or dealer information (25%).

• Use of videos, interior 360° and exterior 360° tools has a significant positive impact on satisfaction among smartphone shoppers when researching how a vehicle looks on both OEM and third-party websites.

• When researching vehicle information shoppers who access an OEM website on a smartphone are much more likely to use a build and price tool (43%) than those who shop on third-party sites. (30%). However, vehicle shoppers accessing a third-party website on a smartphone are more likely to use an inventory search tool (36%) than those on an OEM site (32%).

• The largest gap (90 points) in satisfaction between OEM (806) and third-party sites (716) is in appearance of the website.

https://www.facebook.com/FLIndAutoDealersAssoc


DINO MERCURIOPresident

Independent Credit, Inc.West Palm Beach, FL

(561) 686-8673

JIM WINTERICK, SR.Senior Vice President

Gulfstream Motor CreditMiami, FL

(305) 253-2335

CHRISTOPHER LEEDOMChairman of the Board

AutoMaxxSarasota, FL

(941) 309-1111

PHIL RISLEYSecretary

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

PAUL MATTONTreasurer

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

GEORGE HICKEYRegional Vice President

Bond Auto SalesTampa, FL

(813) 238-7478

FRANK FUZYRegional Vice PresidentCentury Motors of S. FL

Pompano Beach, FL(954) 785-0369

LISA COMPAGNORegional Vice President

Palm Tree Auto SalesStuart, FL

(772) 288-2099

STEVE MARBAISRegional Vice PresidentMarbais Enterprises, Inc.

Ocoee, FL(407) 877-7422

GOVINDA ROMERORegional Vice President

Autoflex LLCGainesville, FL(407) 468-9974

2013-2014 FIADA EXECUTIVE COMMITTEE:

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10817 New Kings Rd., Jacksonville, FL 32219

904-768-9981

Sale: Thursday 1:00 p.m.

Total Resource Auction every Thursday 11:00 a.m.

4

Bo. Candelaria

Carretera 865 Km 4.7

Toa Baja, PR 00949

Phone: (787) 261-7300

Sale Day - Thursdays 11:30am

Manheim Caribbean Subasta De Autos

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

Toyota & Lexus Sell-A-Thon every other Thursday at 4:00 p.m.

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

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October 2014 issue

Documents

Transcript of October 2014 issue