april 2014 issue
DESCRIPTION
April 2014 Issue Independent Dealer MagazineTRANSCRIPT
April 2014 — Independent Dealer — 1 www.fiada.com
Information and Insight for Florida Used Car Dealers
SINCE 1940
A Publication of theFlorida IndependentAutomobile DealersAssociation
April 2014
PRST STDU.S. POSTAGE
PAIDFULTON, MO
PERMIT NO. 38
www.FIADA.com
17 YOU’RE INVITED TO OUR FREE TOWN HALL MEETINGGet the latest industry updates, questions and answers and a delicious meal, all on us.
April 2014 — Independent Dealer — 3 www.fiada.com
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
Nicole Lee Development Administrator
Amelia Tillman Administrative Assistant
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.
ContentsApril 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 Back to the Basics Terry Myers suggests taking time out to work on your business.
9 Get Your FREE CE Before its Too Late No, we’re not taking away our free CE courses, but the April 30th deadline for earning your credits is almost here. Make use of this member benefit now.
10 Member News
11 Check Out What’s Up Next in the FIADA Webinar Series
12 The Most Common Audit Issues for Independent Dealers The Florida Department of Revenue shares what they consider to be the most common tax issues affecting independent auto dealers.
16 Legislative Update A major victory as motor vehicle registration fees get a rollback.
17 There Is Such a Thing as a Free Lunch Join FIADA at the next Town Hall Meeting in Jupiter May 9 for an afternoon of important education and a free lunch!
20 The Benefits of World Class Reconditioning It may be easy to overlook the importance of properly detailing your car, but in the end, it could make an impact on your profits.
24 A Look at Current Legal Issues The monthly round-up of federal and legal issues affecting auto dealers.
26 Eight Tips for Effective Email Communication Don’t let your sent emails end up in a spam box. Use these tips to guarantee they will be opened and replied to.
30 Industry News
F R O M T H E P R E S I D E N T
Spring Ahead into FIADA OpportunitiesBY DINO MERCURIO, FIADA PRESIDENT
Spring has officially sprung and it seems like everyone I talk to is upbeat about business so far this year, and looking forward to the future!
This is a very busy time for the automobile industry. Tax refund season is wrapping up, we are closing in on another successful Legislative Session (see the Legislative update article from our esteemed Lobbyist Sandra Mortham on page 16 in this issue), FIADA is gearing up for the May Town Hall and Quarterly Board Meeting, and it’s time to renew your Dealers License!
If you have not yet completed your continuing education requirement, don’t panic! FIADA offers DHSMV approved classes with professional educators either in person at locations throughout the state or convenient online classes to get your certificate. And, if you are a member of FIADA, the online class is completely FREE!
Speaking of completely free, the FIADA Town Hall and Board Meeting will take place May 9-10 at the beautiful Jupiter Beach Resort, and I encourage all dealers, whether you are a member or not, to attend. There is NO CHARGE to attend, and it will be a fantastic, action packed weekend full of industry updates and information that will certainly help you become a better and more profitable dealer!
Also, it’s that time of year again when we start accepting nominations for the prestigious FIADA Quality Dealer of the Year award. This award is given to the best of the best; the dealers who are living and working as an example to everyone on how to treat your customers, how to run a business, how
www.fiada.com4 — Independent Dealer — April 2014
There is no charge to attend the FIADA Town Hall and Board Meeting and it will be a fantastic, action packed weekend full of industry updates and information to help you become a better dealer.
to be an active member in your community and how to be a leader in your industry. The Florida Quality Dealer winner will be announced at FIADA’s 2014 Convention which will be held Oct. 9-12, 2014 at the Omni ChamptionsGate Resort in Orlando, FL. The Quality Dealer award recipient will then compete with other state quality dealers for the national quality dealer award at NIADA’s Convention in June 2015. For a list of Quality Dealer qualifications, or to nominate yourself or another dealer, go to www.FIADA.com, click on About then Quality Dealer. Good luck!
Last thing, as we spring forward, I want to remind you of all the FIADA benefits that are available to you as a FIADA member. Not only do you stay ahead of the game with timely information through this magazine, eNewsletters, legislative updates and more, but you also get benefits that truly impact
your bottom line, such as the relationship you have with FIADA Preferred Partners. I encourage you to log on to the website at www.fiada.com, click on Resources, then Preferred Partners and scroll the list. If you are not already enjoying these programs and, in some cases discounts, then you should be. From employee benefits programs to the NIADA CPO program to the major discounts on shipping with UPS, you will be impressed with what your membership has to offer.
Dino MercurioFIADA President
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.™
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been serving auto dealers of
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your job is tough – that’s why
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be on the lookout for your new
addition. We’ll be making the big
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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.
PAID
ADV
ERTI
SING
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
Invite a Friend to LunchBY LISETTE MARINER, EXECUTIVE DIRECTOR
FIADA is only as strong as its members. I look to you to help me spread the word of all the great things FIADA is doing for the industry. In March, the state
legislature approved a reduction in registration fees. This was a great win for the industry. On May 9, join us at the FIADA Town Hall meeting at the Jupiter Resort and Spa as we discuss this tremendous win and the many other issues that were highlighted this legislative session. Thanks to the sponsorship of Auto Data Direct, you can invite a friend and have lunch on us. This is a great opportunity for you to introduce a fellow dealer to the many benefits of being a member of the Association.
FIADA Town Hall meetings are a great time to network with your FIADA board, other successful dealers, and keep informed of the latest rules and regulations that affect your business. Your board is a dedicated group of volunteers who donate their time and receive no financial compensation; all for the betterment of the industry. The Board Meeting and Town Hall Meeting also are a time to learn about products and services available to members. Membership in FIADA not only pays for itself but it is also an investment in your future.
As a member of the Association, I encourage you to use your benefits and be an active participant. Don’t forget when you go to our partner auctions to use the coupons you receive every year. When you have a technical question, don’t forget to contact the association at (800) 237-0448 to receive your answer from our General Counsel Rob Sickles (partner with Hinshaw & Culbertson). Take advantage of FREE Continuing Education through our multiple online options or discounted in-person options. Get detailed information on all of these services online at www.FIADA.com.
www.fiada.com6 — Independent Dealer — April 2014
FIADA hosts three town hall meetings a year in conjunction with our board meetings. It’s a perfect time to meet dealers in the area and get up to date on what’s happening in the industry.
Auto Data Direct has been gracious to sponsor lunch at all of our town hall meetings. Through their support and the many other vendor supporters we are able to host these events free of charge. So come out, have lunch on us and bring a friend to experience what you already know—it pays to be a member of the Association!
See you in Jupiter!
There was a full house of dealers who joined us for the free Town Hall meeting in Tampa in January. The next Town Hall and Board meeting is coming up in Jupiter May 9. Make plans to join us, get the latest industry updates and enjoy a free lunch.
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www.fiada.com8 — Independent Dealer — April 2014
Take Time Out From Your Business to Work For it
You don’t have a future unless you understand the present, and you can’t understand
the present unless you take time to understand the past.
Success requires your full attention. You need to schedule in your calendar, one day a month to work ON your business instead of IN your business.
If you are not doing this already, you need to schedule one day a month, now. Do not do this at home or at the office, go where you will not be interrupted. On this day, there are three questions you want to ask yourself:
1. “What made us money this past month, two months, etc.?” Sales are easy. Sales that produce profit are what you need to know about. Look at your paper work. That is where the truth is located. Once you learn what made you money, ask another question, “Do we see this trend continuing?” If the answer is, “yes,” then on Monday you need get more of those things that make you money.
2. “What costs us money?” Pull out your check book and your credit card. Review every expense to determine if this is an expense
BY TERRY MYERS
B A C K T O T H E B A S I C S
you need. Is this an expense you control? If so, can you get the same result for less money? Can you get a better result for the same money? Or, is this an expense you need but cannot control? Either you can control something or you cannot. For those items you can control, you have some work to do next Monday.
3. “What ideas have I come across that I might want to incorporate here at my dealership?” Be certain to incorporate that idea alongside the current day-to-day operations. Be willing to dedicate at least six months and measure the results. It is your job to eventually decide if this
will become a part of dealership operation, or to tweak, or drop the test idea. If you have a partner, they need to be at those meeting as well providing their input. Each of you have equal interest in the future growth and success of the dealership.
When that day of reflection comes to a close, go home.
On a sidenote, too many dealers marry the dealership and divorce their family. Go to the calendar and schedule time AWAY from the business WITH your family. Go to the beach, a movie, BBQ, dates, vacation, etc. Your family wants YOU. Give them you.
When you do this, the dealership and your family will actually become as strong and as successful as possible.So, “who is in charge of success at your dealership? Is it you?”
Articles are the opinion of the
author and are not intended to be regulatory, legal or accounting
advice. The intent is to share thoughts and concepts that help the business owner(s) find new and perhaps revisit, ways to be as successful as they are capable
of being. Terry can be reached at (727) 804-7375. Email: [email protected]. Feedback is appreciated
and encouraged. Copyright 2014, Terry LB Myers,
author, lecturer, FIADA instructor,
FADS owner/instructor.
Sometimes you have to take time away from something to see the bigger picture. As difficult as it might be, that step back just may be what you need to move forward.
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Online Continuing Education: A newly updated course that consists of a series of videos which include live instruction, PowerPoint slides, and a manual. The course includes 3 video segments:
• Division of Motorist Services (DMS) • Legal/Legislative • Industry Related
Topics of interest include a curbstoning update, electronic titles & lien process, the implications of the federal Truth in Lending Act (TILA) and Regulation Z, the USA Patriot Act, Auction success tips, and FTC Red Flags Rule. This course fulfills your 8 hours of Continuing Education credit. You have 30 days to complete the course. At the end of the online course, you can print your continuing education certificate to provide to the DMV.
Title & Registration: This course covers information about:
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your business grows.
Examples and case studies are provided to clarify ownership and is given in a recorded webinar format with voice recording, PowerPoint slides, and a PDF Title & Registration manual. This course provides 8 hours of Continuing Education credit.
THERE’S STILL TIME TO GET YOUR CREDITS BEFORE APRIL 30, 2014!
FIADA members get continuing education FREE as a member benefit. You, or an employee of your dealership, can take any of the online CE courses at www.FIADA.com!
Take a course for FREE at www.fiada.com!
www.fiada.com April 2014 — Independent Dealer — 9
www.fiada.com10 — Independent Dealer — April 2014
Bennetts Auto sAles oF ocAlA IncOcala, FloridaGary BennettSponsor: Ocala Regional DMS
c & D Auto exchAngeCape Coral, FloridaCarlisle BarkerSponsor: Nicole Lee
DAn’s DeAls on Wheels Auto sAles, Inc.Davie, FloridaMarjorie JaramilloSponsor: Amelia Tillman
M E M B E R S H I P N E W S
New Members MARCH 2014
All clAss Autos, llcHolly HIll, FloridaDana MicallefSponsor: FIADA.com
All In one AutomotIvePensacola, FloridaRobert SmithSponsor: Terry Myers
Auto WholesAle 0F BocA llcBoca Raton, FloridaLisa FaracheSponsor: FIADA.com
henDrIk chenOviedo, FloridaSponsor: Terry Myers
mArIe corIolAnD Hollywood, FloridaSponsor: Kevin Scott
Dmc motors oF FlorIDAOrlando, FloridaMihaela CurtoISponsor: FIADA.com
eAst coAst Auto cAreJacksonville, FloridaWilliam StaffordSponsor: Terry Myers
elIte clAssy Autos, llcGainesville, FloridaBelinda LewisSponsor: Nicole Lee
FlorIDA rvsJacksonville, FloridaWalter SmithSponsor: FIADA.com
2007 lAmBoPinellas Park, FloridaRichard DavisSponsor: FIADA.com
ABt IncFort Lauderdale, FloridaThomas PrewittSponsor: Amelia Tillman
ActIon AutomotIve IncNaples, FloridaKevin BessSponsor: FIADA.com
B & e AutosAltha, FloridaBetty HuntSponsor: Kevin Scott
gooD rIDes, Inc.Stuart, FloridaSteven ZimmermanSponsor: Amelia Tillman
got cAr Auto Brokers llcHollywood, FloridaTheo XidisSponsor: FIADA.com
ImAgIne Auto BrokersLongwood, FloridaChristopher CreamerSponsor: Terry Myers
IslAnD motor sAles, Inc.Merritt Island, FloridaAnthony LiquoriSponsor: FIADA.com
km PoWersPorts #2Lakeland, FloridaAmber Lee MoranSponsor: Amelia Tillman / Kevin Scott
lAncAsters Auto sAlesFruitland Park, FloridaDonald BoehlerSponsor: FIADA
DonAlD lAssIterJupiter, FloridaSponsor: Kevin Scott
crystAl mArtInPort Orange, FloridaSponsor: Terry Myers
mIllAn Auto sAlesOrlando, FloridaRicardo VasquezSponsor: FIADA.com
20+ year membersBubba Hill Auto Plaza, Inc. Panama City, FloridaCaicos Trading & Equipment Miami, FloridaEd Cox Motor Company, Inc. Ft Walton Bch, FloridaLarry Condon Auto Sales Stuart, FloridaMears Transportation Group Orlando, FloridaRoney Auto Sales Plant City, FloridaShade Tree Auto Repair Bartow, FloridaThe Truck Center, Inc. Ft Walton Bch, Florida
10+ year membersBargain Auto Sales of Lakeland, Inc. Lakeland, FloridaBeach Boulevard Automotive Jacksonville, FloridaDonny Mills Auto Sales, Inc. Largo, FloridaEd Tillman Auto Sales Jacksonville, FloridaGlobal Wholesale Motor Company Fort Myers, FloridaGWC Warranty Corporation of Florida Wilkes Barre, PennsylvaniaRichard’s Car Company, Inc. Jacksonville, Florida
under 10 year membersAP Motorsales LLC Anthony, FloridaASC Warranty, Inc. Mountain Home, ArkansasB & T Enterprise Services, Inc dba 5 Star Auto Sales Brooksville, FloridaB&A Auto Sales of Central Florida Winter Garden, FloridaBMC LLC dba Prestige Auto Sales Saint Petersburg, FloridaBonita Big Lot, Inc. Bonita Springs, FloridaCochran Motorsports Inc Hastings, FloridaDealer Consulting Services Miami, FloridaDealerbuilt Mason City, IowaDelray Exotic Motors Delray Beach, FloridaE-Z Pay Cars LLC Stuart, FloridaFort Myers Auto Mall Fort Myers, FloridaHighway Motors Inc Weeki Wachee, FloridaHoldings of South Florida, Inc. dba Automac 2 Jacksonville, FloridaJeanie’s Automotive, Inc. dba Jeanie’s Auto Sales Clearwater, FloridaJulians Auto Showcase New Port Richey, FloridaJust In Time Auto Sales Inc Auburndale, FloridaLB Auto Trading Orlando, FloridaLoan Value Auto Sales, Inc. Tampa, FloridaManheim Fort Myers Fort Myers, FloridaMcphails Auto Sales Sebring, FloridaMile Stretch Auto Sales Holiday, FloridaNajjar Auto Mall, Inc. dba Park Auto Mall Pinellas Park, FloridaOrange Sports Center, Inc. Orlando, FloridaOutdoor Recreation World, Inc. Panama City, FloridaPrecision Motors Inc Boynton Beach, FloridaRobin Rogerson Winter Haven, FloridaRouth’s Equipco dba Gravely of Bradenton Bradenton, FloridaRTG Auto Sales, LLC Tarpon Spings, FloridaSanta Fe Power Sports Alachua, FloridaSharp Deal Automobiles Corp. Hialeah, FloridaSnider’s Truck & Auto Sales Titusville, FloridaSouth Florida Car Buyers Fort Lauderdale, FloridaSunrise Financial Associates Orlando, FloridaTaylor Auto Sales, Inc. Tallahassee, FloridaThe Car Connection West Palm Bay, FloridaThe Connection Motors, Inc. Miami, FloridaThe Surety Group Atlanta, GeorgiaWe Deal Trucks LLC Jacksonville, FloridaYaris LLC Orlando, Florida
Renewing Members
Rejoining Members MARCH 2014
MARCH 2014
ocAlA Auto DeAlers exchAngeOcala, FloridaMichael TumminelloSponsor: Amelia Tillman
Jose roDrIguezOrlando, FloridaSponsor: Kevin Scott
John sInAtrACocoa, FloridaSponsor: Kevin Scott
mIlton mArtInezHollywood, FloridaSponsor: Kevin Scott
strIcklAnD Auto solutIons IncChiefland, FloridaDavid StricklandSponsor: FIADA
thomAs AnD son IncZephyrhills, FloridaKaren MorleySponsor: Sarah Langley
unIteD consumer FInAnceMiddleboro, MassachusettsScott StrazdesSponsor: FIADA.com
urBAn Auto exchAngeBradenton, FloridaRon SchutzSponsor: Terry Myers
WAste equIPment & PArts llcTampa, FloridaDavid WasteSponsor: FIADA.com
J.D. sAnDers, Inc.Alachua, FloridaDell SandersSponsor: Amelia Tillman
metro motor sAles IncLongwood, FloridaDaniel CashSponsor: Nicole Lee
PAnAmA motorsJacksonville, FloridaKeith BerrymanSponsor: Amelia Tillman
ten stArs Auto sAlesKissimmee, FloridaDhanessar DammarSponsor: Amelia Tillman
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FIADA IS ON THE AIR WITH NEW WEBINARS
IN THE ARCHIVES: FIADA is now offering recorded versions of our past webinars as an “on-demand” option. This on-demand service is free for members and $10.00 for non-members. To register for an on-demand or live seminar, go online to www.FIADA.com and click on Dealer Training School/Webinars.
NEW VIDEOS ARE UPLOADED REGULARLY. SUBSCRIBE TO OUR CHANNEL.
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Watch archived videos now on your mobile device or smartphone. Scan this code to access our YouTube site.
WHAT’S UP NEXT: Thursday, April 24 at 10:00 A.M. Don’t Get Stuck in the Mud of Today’s Regulatory Landscape
Plan to attend our next FIADA live webinar coming up on Thursday, April 24 at 10:00 A.M. called, “Don’t Get Stuck in the Mud of Today’s Regulatory Landscape” Come learn about Federal and State regulatory issues from an expert attorney. This webinar will be presented by Rob Sickles from Hinshaw & Culbertson who acts as outside general counsel to the Florida Independent Auto Dealers Association. Sickles has substantial experience representing clients in all aspects of the automotive industry. He has served as counsel for more than 100 licensed motor vehicle dealerships throughout Florida, ranging from large publicly traded corporations to small, closely held family dealerships. He also represents finance companies and lenders affiliated with the automotive industry. He has defended claims arising under Florida’s Fair Debt Collection Practices Acts, the Truth in Lending Act, and Florida’s Deceptive and Unfair Trade Practices Act.
Webinar presenter and FIADA Outside General Counsel Rob Sickles
www.fiada.com April 2014 — Independent Dealer — 11
12 — Independent Dealer — April 2014
F R O M T H E D O R
The Most Common Audit Issues for Independent Dealers
In an effort to educate dealers about tax issues and rules, the Florida Department of Revenue’s Audit
Director has assisted in compiling information concerning prominent audit issues that affect independent automobile dealers. Below is a list of the most common audit issues for your industry and a brief summary regarding each:
Improperly Exempted Sales – Auto Dealers must keep the appropriate documentation when partial or no sales and use tax is collected on a transaction. For sales of vehicles to be registered in another state, an Affidavit for Partial Exemption of Motor Vehicle Sold (DR-123) must be signed by the customer and notarized. Sales for resale or sales to an exempt entity must also be well documented by retaining a signed copy of the current Annual Resale Certificate (DR-13), or Consumers Certificate of Exemption (DR-14) for each transaction where no tax was collected. If resale authorization was completed via phone or online, the 13 digit authorization number must be included on the sales invoice or purchase order for each vehicle sold tax free.
Using the Wrong Discretionary Sales Surtax Rate – Discretionary Sales Surtax is determined by the purchaser’s residence and the respective surtax rate for that county, not the surtax rate
for the county the dealer is located in. There is a common misconception on how to collect tax in this scenario. For a list of current discretionary rates for Florida counties, see Figure A. For the complete, current Discretionary Sales Surtax Information Form, provided by the DOR go to http://dor.myflorida.com/dor/forms/current/dr15dss_1113.pdf.
Repossession and Bad Debt Credits– Auto Dealers wishing to take sales and use tax credits for repossessed vehicles should properly document the transactions by completing the Schedule of Florida Sales or Use Tax Credits Claimed on Repossessed Motor Vehicles (DR-95B). The credit must be claimed on the Sales and Use Tax Return (DR-15) within 12 months following the month of repossession. Failure to complete the DR-95B can be grounds for an audit assessment on credits taken. Sales tax credits may also be taken on the DR-15 regarding bad debts. The credit can only be claimed from the date the dealer deducts the bad debt from his books through 12 months after the end of the dealer’s fiscal year. The Bad Debt deduction can only be claimed on the unpaid amount on which tax has been paid.
Taxable Base – Auto Dealers are required to calculate the sales and use tax due based on the “full” sales price.
www.fiada.com
Deductions are not allowed for the following charges:• Dealer’s prep • Tire and Waste Fee• Federal Excise Taxes (unless
separately stated on sales invoice)• Freight• Handling• Delivery• Commission• Repossession• Advertising• Future free service• Notary fees• Any other expenses or costs
Service Warranties – Sales and Use Tax is due when a motor vehicle service warranty is sold by a dealer. The tax is due even if the motor vehicle is delivered out-of-state or out-of-country. Discretionary Sales Surtax is also due with no $5,000 cap if the delivery or location of the vehicle indemnified by the warranty is in a surtax county.
Use Tax on Purchases – Sales Tax is due on any item a dealer purchases that is not purchased for resale. Often a dealer will buy items shipped from out-of state, or at “brick and mortar” stores in Florida, for use in the business that are not properly taxed. At the time of purchase if a dealer buys items for use in the business that are not taxed, Use tax should be remitted on the next sales tax return submitted
The Florida Department of Revenue gives guidance to independent dealers on how to approach tax issues that seem to cause the most confusion.
www.fiada.com April 2014 — Independent Dealer — 13
Continued on Page 14.
to the Department. These items could include but are not limited to office furniture, business cards and forms, stationary, computers, pamphlets on display for customers use, and fixed assets such as company vehicles that are not put in inventory for resale.
Collecting Tax and not remitting on return – This is the most serious of the issues that we run across in Sales and Use Tax audits. Either through erroneous bookkeeping methods, or with intent to defraud, sales tax is correctly calculated and collected at the time of sale, but is not remitted to the Department. See chapter 212.15 Florida Statues below:
212.15 Taxes declared state funds; penalties for failure to remit taxes; due and delinquent dates;judicial review.—(1) The taxes imposed by this chapter shall, except as provided in s. 212.06(5)(a)2.e., become state funds at the moment of collection and shall for each month be due to the department on the first day of the succeeding month and be delinquent on the 21st day of such month. All returns postmarked after the 20th day of such month are delinquent.(2) Any person who, with intent to unlawfully deprive or defraud the state of its moneys or the use or benefit thereof, fails to remit taxes collected under this chapter is guilty of theft of state funds……..
While the Investigations process handles egregious cases that are referred for prosecution, the Audit program does run across these types of cases and will handle them through the civil process when practical. Recently the Department of Revenue has been working with DHSMV to compare sales tax collected as reported to the County Tax Collector’s and
FIGURE A - List of Counties and Surtax Rates
Download a complete copy of the Discretionary Sales and Surtax Information from DOR at http://dor.myflorida.com/dor/forms/current/dr15dss_1113.pdf.
County Total Surtax Rate
Alachua None
Baker 1%
Bay . 5%
Bradford 1%
Brevard None
Broward None
Calhoun 1.5%
Charlotte 1%
Citrus None
Clay 1%
Collier None
Columbia 1%
Dade See Miami-Dade
De Soto 1%
Dixie 1%
Duval 1%
Escambia 1.5%
Flagler 1%
Franklin 1%
Gadsden 1.5%
Gilchrist 1%
Glades 1%
Gulf 1%
Hamilton 1%
Hardee 1%
Hendry 1%
Hernando .5%
Highlands 1%
Hillsborough 1%
Holmes 1%
Indian River 1%
Jackson 1.5%
Jefferson 1%
Lafayette 1%
County Total Surtax Rate
Lake 1%
Lee None
Leon 1.5%
Levy 1%
Liberty 1.5%
Madison 1.5%
Manatee .5%
Marion None
Martin None
Miami-Dade 1%
Monroe 1.5%
Nassau 1%
Okaloosa None
Okeechobee 1%
Orange .5%
Osceola 1%
Palm Beach None
Pasco 1%
Pinellas 1%
Polk 1%
Putnam 1%
St. Johns None
St. Lucie .5%
Santa Rosa .5%
Sarasota 1%
Seminole None
Sumter 1%
Suwannee 1%
Taylor 1%
Union 1%
Volusia .5%
Wakulla 1%
Walton 1.5%
Washington 1%
www.fiada.com14 — Independent Dealer — February 2014
what is remitted on the Sales and Use Tax Return (DR-15). This 3rd party information is currently being used by our audit program state-wide to help verify whether or not the correct amount of sales tax is being collected and remitted to the Department.
Currently we are developing a limited-scope audit concept that will provide Dealers in the used car industry a checklist of requested documentation and allow them to review their own records and self-disclose any unintended tax oversights. In a limited-scope audit the Dealer will not have the intrusion of a field auditor at their place of business and with timely cooperation they are eligible for a complete waiver of penalty. These limited-scope audits will be assigned and administered by “Central Campaigns” here in Tallahassee under my supervision. Dealers will be able to communicate with their auditor via telephone, e-mail, and US Postal Service. Candidates will be selected primarily based on the discrepancy between the Sales and Use Tax reported to DHSMV and reported on the DR-15s. See Figure B for a copy of the Audit Notification letter and worksheets that will be sent in the package.
COMMON AUDIT ISSUES continued from Page 13.
14 — Independent Dealer — April 2014 www.fiada.com
GT-400400R. 07/12
Tax InformationforMotor Vehicle Dealers
This publication was designed to be used as a training aid.
It should not be used as a reference to cite the Department’s position.
If legal advice or other expert assistance is required,
dealers should obtain the services of a tax professional.
Need more information on tax issues and rules? Download the DOR guide on Tax Information for Motor Vehicle Dealers. online at http://dor.myflorida.com/dor/forms/current/gt400400.pdf
Or scan this code with your smartphone or mobile device.
FIGURE B - Audit Notification Letter and Worksheets
Dear Taxpayer:
The Florida Department of Revenue
’s responsibility is to ensure co
mpliance with the tax laws of Flor
ida and to
educate taxpayers about the st
ate’s tax laws, including taxpay
er registration requirements, filing resp
onsibilities
and ensuring a taxpayer’s right
s. Please see the enclosed “Flo
rida Taxpayer’s Bill of Rights” f
or further detail
about your rights. Florida Stat
utes allow the Department of Revenue
to examine the relevant documents of a
taxpayer who lives or conducts
business in Florida. The Depa
rtment routinely reviews information from many
sources to determine the accurac
y of sales and use tax reported
and filed.
The Florida Department of Highway
Safety and Motor Vehicles (FHSMV) collects sales
and use tax data provided
by County Tax Collectors regard
ing title transfers of motor vehicles.
FHSMV shares this data with the
Department of Revenue. The Department of Revenue
has reviewed this data and co
mpared it to your sales and
use tax returns for the sale of
used motor vehicles and there appear
to be significant discrepancies
in your
reporting. Therefore, this is an
examination under Chapter 212, Flo
rida Statutes for sales and use
tax for the
period indicated in the upper r
ight hand corner of this letter.
Please complete the enclosed questionna
ire and
provide the requested documents within thir
ty (30) days from the date of this
letter to help determine if
additional tax is due.
The Department is also providing you an op
portunity to report all sales and
use tax not previously disclose
d on
your filed returns, with the pos
sibility of a full compromise of penalty.
To take advantage of this oppor
tunity,
please complete and return the enclosed
self‐analysis worksheet providi
ng a monthly breakdown of unreport
ed
sales within thirty (30) days fro
m the date of this letter.
Even if you believe you do not
owe additional tax, failure to re
spond to this inquiry within thi
rty (30) days may
result in an estimated assessment for non‐pay
ment of sales and use tax, plus pe
nalty and interest. A return
envelope is enclosed for your c
onvenience.
Please contact me at the phone
number listed below if you have any
questions. You may research sale
s and use
tax statutes and rules applicabl
e to your business by visiting o
ur Internet website at www.myflorida.com/dor
and accessing our online “Reve
nue Law Library.” Standard Ind
ustry Guide brochures are also
available for many
types of businesses, such as M
otor Vehicle Dealers located on
our website under “Forms and Publicatio
ns,
http://dor.myflorida.com/dor/forms/index.html#sales.
Thank you for your prompt response in r
esolving this issue.
Sales and Use Tax Information Questionaire Please provide copies of all documentation requested below for your examination period. x Federal Income Tax Returns x Sales Journals x Sales Invoices x Sales Tax Exemption Certificates (Resale Certificates) x Power of Attorney (if applicable) x Lease Agreements for Real or Tangible Property x DR-123s x DR-95Bs
Please answer the following questions related to your business:
When did the business begin? (Month and Year) __________________________________ Has there been a name change or change in ownership within the past three years? ______________
If so, list the previous business name: _____________________________________________ If so, list the names of the previous owners: ________________________________________
Are you a “Buy Here, Pay Here” dealer? __________________________________________________ If so, please provide proof of Documentary Tax collected and paid to the Department such as copies of DR‐225 returns filed.
If, so please provide a financing report/journal which includes the amount financed for each motor vehicle financed by your business during the examination period.
Who completes your Sales and Use tax returns? Owner Employee Accountant CPA Does the business rent or lease real property? ____________________________________________ If you are renting as a lessee, please provide your landlord’s name and address: ____________________________________________________________________________ Owner Signature _____________________________________________Date______________________ Owner Full Legal Name (Printed)_________________________________ Phone #__________________ Owner FEI/EIN #___‐________________________ OR Owner Social Security #______‐_____‐________
Florida Department of Revenue Sales and Use Tax – Self Analysis Worksheet Used Car Dealers
A
Month/Year
B
Total Taxable Sales
C
Total Taxable Purchases
(Use Tax)
D
Taxable Sales & Purchases Reported on
Sales and Use Tax Return (DR‐15)
E
Unreported Taxable Sales and Purchases
(Column B plus Column C minus
Column D) 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
TOTAL UNREPORTED TAXABLES SALES &
PURCHASES
Make check payable to the Florida Department of Revenue
Sample letter to dealers participating in the limited-scope audits.
Sales and Use Tax Information Questionnaire
Sales and Use Tax—Self Analysis WorksheetExerpt
February 2014 — Independent Dealer — 15 www.fiada.com
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16 — Independent Dealer — April 2014 www.fiada.com
Score one for Florida’s independent auto dealers and Florida drivers! The Florida legislature approved the rollback of the over-inflated motor vehicle fees citizens
have been dealing with since the hike in 2009 by passing CS/SB 156. Governor Rick Scott and Senator Joe Negron made this issue a huge priority, and because of that we were able to get the entire legislature to roll back the fees by $400 million. This was a monumental amount of money rolled back when many other groups were trying to take a piece of the reduction for their particular program.
SEN. JOE NEGRONSenator Joe Negron of District 32 (parts of Indian River, St. Lucie, Martin and Palm Beach Counties) was elected to the Senate in 2009. He was a member of the Florida House of Representatives from 2000 to 2006.
L E G I S L AT I V E U P D AT E
GOV. RICK SCOTTRick Scott is Florida’s 45th governor and as promised during his campaign, Scott has focused on creating jobs and turning Florida’s economy around. Gov. Scott is known as an innovator in business, health care, and
politics. His specialization was in health care mergers and acquisitions, and it was during his work on these transactions that he recognized how patients could be better served by improving hospital efficiency, lowering costs, and focusing on better outcomes.
There is still time left in the session to keep working on the other items of our agenda. As we move forward on the Surrender Stop issue, we will need your assistance as we move it through the process. Stay tuned to your email for updates and how you can help.
Number One Priority Issue for FIADA Passed!BY SANDRA MORTHAM, FIADA LOBBYIST
Fee Description Current Fee Proposed Fee Fee ReductionGR - Registration Service Fee $5.00 $2.50 $2.50Registration Receipt Fee/Decal $3.00 $1.00 $2.00Material Processing/Retroreflective Fee $1.50 $0.50 $1.00License Tax Surcharge - Transportation Trust Fund $4.00 $1.20 $2.80License Tax Surcharge - DJJ $5.50 $1.00 $4.50Real Time Vehicle Information System Fee $1.25 $0.50 $0.75Motorcycle Base Tax $13.50 $10.00 $3.50Moped Base Tax $6.75 $5.00 $1.75Antique Motorcycle $8.50 $7.50 $1.00Antique Automobile or Street Rod $10.25 $7.50 $2.75Auto less than 2,500 lbs $19.50 $14.50 $5.00Auto 2,500 - 3,499 lbs $30.50 $22.50 $8.00Auto 3,500 or more lbs $44.00 $32.50 $11.50Trucks - less than 2,000 lbs $19.50 $14.50 $5.00Trucks - 2,000-2,999 lbs $30.50 $22.50 $8.00Trucks - 3,000-4,999 lbs $44.00 $32.50 $11.50Truck - goat $10.25 $7.50 $2.75Antique Truck $10.25 $7.50 $2.75
Decreases to motor vehicle registration fees from CS/SB 156
Come to the next Town Hall Meeting and have lunch on us.Lunch generously provided by Auto Data Direct
May 9, 2014 • 10am - 2pmJupiterBeachResort&Spa•5NorthA1A,Jupiter,FL
What’s on the agenda?Legislative Update: Speaker: Sandra Mortham, FIADA Legislative Advocate
Findoutwhathappenedthislegislativesessionandhowitimpactsyourbusiness.LearnmoreaboutSenateBill156anditsreduction of motor vehicle registration fees.
Legal Q&A: Speakers: Rob Sickles, FIADA General Counsel | Lewis Kuhl, Kurkin Brandes
This segment is always packed full of information regarding recent court decisions and will focus on recent FTC settlementsagainst dealers. Ask an expert your burning legal questions. Join Rob Sickles, FIADA’s General Counsel and Lewis Kuhl, an attorney with the law firm of Kurkin Brandes in this interactive legal discussion.
Online Registration available at www.FIADA.comwww.fiada.com April 2014 — Independent Dealer — 17
Need directions or a reservation for the Jupiter Beach Resort? Find them online at www.jupiterbeachresort.com or call (800) 228-8810.
18 — Independent Dealer —April 2014 www.fiada.com
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
Support the FIADA pAC FunD!Your PAC Contribution helps spread awareness and gain support of issues affecting independent dealers in the state’s capitol.
Make your check payable to FIADA-PAC and mail to: FIADA • 1840 Fiddler Court • Tallahassee, FL 32308If making payment via credit card, you may fax your contribution form to 850.385.3251
Name on Card: Card number:
Exp Date: Sec. Code: Billing Phone:
Billing Address
Authorized Signature
ContrIButIon InForMAtIon
pAYMent InForMAtIon
April 2014 — Independent Dealer — 19 www.fiada.com
Plans are being made for the ultimate dealer experience of the year. Mark your calendar now to attend.
fiadaAnnual Convention
October 9-12, 2014 Omni ChampionsGate Orlando, FL
www.fiada.com April 2014 — Independent Dealer — 19
20 — Independent Dealer — April 2014www.fiada.com
A U T O M O T I V E R E C O N D I T I O N I N G
The Benefits of World Class Reconditioning
BY JAY PRASSEL
Wherever I find myself training or consulting with independent dealers, the
subject of reconditioning comes up. Over the years, I’ve seen dealers who may simply perform a quick wash and vacuum to those who do a full, “world-class” job.
At a recent meeting with a few BHPH dealers, I was presented with the processes and procedures on their reconditioning programs. One in particular stood out as I was hard pressed to remember another dealer, including new car dealers, who had such a world-class recon program.Dealers who have reconditioning that exceeds their competition will develop a reputation for having the best vehicles in town, which results in increased volume and gross per unit.
BEST PRACTICES FOR WORLD-CLASS RECONDITIONINGDevelop a written checklist, in triplicate, where a copy stays with the service folder, the deal jacket and one is provided to the customer at time of delivery. It should include the following:
Mechanical Checklist1. Test drive the vehicle when the
engine is cold. (Does it hesitate to start? Hesitate to accelerate?)
2. Test drive the vehicle at slow and highway speeds.
3. Test drive with tight turns, in reverse, going up steep hills, and down steep hills.
4. Does the steering pull or shake while you are driving?
5. Does the air conditioner provide cool air?
6. Do the cruise control and power windows/locks work properly?
After The Test Drive1. Do all interior lights operate?2. Are there any cracks/chips in the
windshield?3. Are all seatbelts functioning
properly?4. Do the radio, satellite radio, CD,
MP3, and/or cassette function properly?
5. Are the previous maintenance records available?
6. Have there been any recalls on the vehicle? Have they been correctly performed?
Under the Hood1. Timing belt (if applicable on
model--may need to be replaced)2. Belts (AC, Power Steering,
Alternator, etc.)3. Change oil and filter4. Brake pads. Set a policy on when
to replace, maybe at less than 50 percent?
5. Inspect coolant. Does it need to be
When aiming for quick turn of inventory and higher-profits, don’t forget about taking the proper preparations to get your vehicle front-line ready.
Continued on Page 22.
April 2014 — Independent Dealer — 21 www.fiada.com
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changed or flushed?6. Inspect spark plugs, ignition wires,
air filter and fuel filter7. Vehicle frame (inspect for damage
from accidents)8. Inspect for any excessive rust and/
or flood or water damage
Outside of the Car 1. Tires. What is the minimum tread
depth for replacement? Replace with “brand name” tires.
2. Check brake and signal lights3. Does the paint match on the entire
car? Additional inspection may be required.
This list is by no means all inclusive, but should serve as a starting point as you customize the inspection form to fit your culture. By properly setting up every vehicle, you’ll eliminate any excuse for the customer to lose the enthusiasm to purchase. An example would be if the tires are marginal and the customer asks if you will be replacing them and you answer, “If I replace them, will you buy it today? World-class reconditioning eliminates objections and roadblocks making it easier to sell the vehicle.
THE DETAIL PROCESSMake sure you are using the right products and equipment. The cheapest products will not get you the best results.
The first step is the evaluation of the car’s paint. Take a quick walk around the car. Do you see bug stains, water spots and tar spots, or is it completely free of contamination? How does the paint feel to your hand? Is it rough or is it smooth like glass?
If the paint is stained and rough, you will have to clean it before waxing. Cleaning the paint can take 30 minutes or 3 hours, depending on the level of perfection you want to achieve. Use a paint pre-wax cleaner (a special cleaner/polish) or a paint-cleaning clay to remove surface paint contamination. Any minor imperfections can be fixed with a good polish and should be taken care of prior to waxing. You should use a good orbital buffer (low speed for amateurs) for faster results.
If the paint has deep surface scratches you may need to use a scratch remover polish formula. Most scuffs and scratches can be polished so they will no longer be noticed. When the paint is contamination-free and buffed to a high gloss, it’s time to be waxed. A good paste wax is preferred over a liquid wax. In our opinion, it’s a better product and more economical with less waste.
DETAILING ACCESSORIESCar detailing towels-Detailing towels
should have an edgeless design to prevent any chance of paint marring from the toweling. With a proper towel you are guaranteed better results with less effort.
Car wash mitts and bucket- A genuine wool wash mitt has a superior feel and holds volumes of soapy water for a scratch-free wash making it an excellent choice. If you want an easy care solution, there are car wash mitts that are constructed using a high-pile microfiber fabric that’s backed with foam. These mitts are very soft and rinse freely for a scratch-free wash. And they are machine washable!A nice five gallon bucket may work, but a professional wash bucket offers such features as a five-caster dolly that makes it easy to move and a grit guard that keeps the car wash mitt out of the harmful dirt that settles to the bottom. Choose your car detailing accessories carefully. The proper tools and accessories make detailing easier and deliver world-class results. Inferior products create more work and are less likely to deliver the results you expect.
Jay Prassel of Premier Performance Group, LLC is a national trainer and consultant who has worked for over 38 years helping dealers achieve net profit improvement. Contact him at 847.910.1681 or [email protected]
WORLD CLASS RECONDITIONING continued from Page 20.
FIADA is your number one source for advice and information. Technical questions, legal questions, regulatory questions...bring them on!
Our network of industry veterans, professionals and consultants can help you find the answers you are looking for. The best part is, it’s free to FIADA members. Call us anytime at (800) 237-0448!
Got a question after hours? You can access our online resources 24/7 at www.FIADA.com
COMPLIANCE TIPThe National Automobile Dealers Association and the American Financial Services Association have just published an update of their consumer education booklet, Understanding Vehicle Finance. Although it is aimed at consumers, it makes an excellent training tool for dealers to use to introduce new employees to dealer financing, and to give experienced folks an opportunity to brush up on this important topic. We’ve also recommended for years that dealers give a copy of the booklet to every customer, and send them in bulk to whoever teaches about financial matters at the local high school (with a business card attached, of course). The publication is free and available from the web sites of both organizations. It isn’t copyrighted, so you can make copies to use for these purposes.
LITIGATIONArbitration Agreement in Buyer’s Order Enforceable Despite Lack of Seller’s Signature: When the dealer forgets to sign the arbitration agreement, you’d think a court would side with the customer and refuse to enforce it, wouldn’t you. Well, maybe not. When buyers bought a car, they signed a buyer’s order containing an arbitration agreement, and they and the dealership signed a retail installment sales contract that did not contain an arbitration agreement. The buyers sued the dealership for a violation of the Kentucky Consumer Protection Act for representing that the car had a larger engine that it actually had. The trial court granted the dealership’s motion
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.
to submit the claim to arbitration. The arbitrator ruled for the dealership, and the trial court confirmed the arbitrator’s ruling. The Court of Appeals of Kentucky affirmed the trial court’s ruling. The buyers argued that the arbitration agreement should not have been enforced because it was only contained in the buyer’s order, which had not been signed by the dealership. The appellate court, however, determined that the buyer’s order did not explicitly require the signature of the seller to be accepted by the seller. Because the buyers left the dealership with the car, the dealership took their trade-in, the parties negotiated, and the dealership formalized the acceptance of the transaction with a signature on the RISC, the appellate court determined that the buyer’s order and the arbitration agreement were enforceable. See Marrs v. Walters Automobiles, Inc., 2014 Ky. App. Unpub. LEXIS 76 (Ky. App. January 31, 2014).
New York Dealership’s Contacts with Florida Insufficient to Support Personal Jurisdiction Can your car buyer sue you in another state? Sometimes yes, sometimes no. Here’s a “no.” A buyer bought a car from a New York dealership. She later moved to Florida and was hurt in a car accident in Florida involving another Florida resident. She sued the dealership in Florida, claiming that her car was defective and was a cause of the accident. The dealership moved to dismiss the suit for lack of personal jurisdiction. The dealership was registered with a Florida auction company but did not buy vehicles from,
nor sell vehicles to, that company. The dealership bought nine vehicles over the Internet from a Florida corporation over a 4-year period. The dealership also had five transactions over an 8-year period with customers that owned extended service warranties bought from Florida companies. In addition, the dealership assisted a company in obtaining financing for the company’s vehicle buyers, and some of the financing involved vehicles sold in Florida, for which the dealership received $7,500. The trial court denied the dealership’s motion to dismiss, but the Court of Appeal of Florida reversed, finding no specific jurisdiction, in which the alleged activities or actions of the defendant are directly connected to the forum state, and no general jurisdiction based on continuous and systematic business contacts with the state. See Marina Dodge, Inc. v. Quinn, 2014 Fla. App. LEXIS 1458 (Fla. App. February 5, 2014).
Claims Against Dealership Arising from Sale of “Certified” Car Dismissed: Selling CPO vehicles? Read on. A used car buyer received a Certified Quality Inspection Certificate, a generic list of components that were inspected but not the results of the inspection. She experienced numerous problems with the car almost immediately after the purchase. She sued the dealership for wrongfully labeling her car as “certified” and for making false representations about the car’s quality. The dealership moved to dismiss the complaint, and the U.S. District Court for the Southern District of California granted the motion. The buyer claimed that
24 — Independent Dealer — April 2014 www.fiada.com
April 2014 — Independent Dealer — 25 www.fiada.com
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the dealership was required by state law to provide her with a completed inspection report indicating all the components inspected. The court found that the complaint failed to allege that the certificate the buyer received did not comply with the statute. The buyer also alleged that the dealership misrepresented its inspection of the car. The court found that the complaint failed to allege the misrepresentations with sufficient particularity. The court also found that the buyer failed to allege actual damages from any of the claimed violations of law. Finally, the court found that the buyer did not sufficiently allege breach of warranty under the Song-Beverly Consumer Warranty Act where the warranty she was provided was a 30-day/1,000-mile warranty, and the problems she alleged that related to usability of the vehicle did not arise until after the warranty period expired. See Zambrano v. CarMax Auto Superstores, LLC, 2014 U.S. Dist. LEXIS 7300 (S.D. Cal. January 21, 2014). Court Refused to Dismiss Buyer’s Claims Stemming from Failure to Disclose Prior Short-Term Rental Use of Car: A buyer bought a car without being notified that the car previously had been used as a short-term rental. She filed a class action against the dealership and related companies. The defendants moved to dismiss, and the U.S. District Court for the District of Maryland granted the motion in part and denied it in part. After determining that the dealership, its parent, and its sister companies were not legally capable of conspiring with each other, the court addressed the claims against the dealership and its parent for breach of the implied warranty of merchantability, violations of the Maryland Consumer Protection Act, and violations of the Racketeer Influenced and Corrupt Organizations Act. The court refused to dismiss the breach of implied warranty of merchantability claims, even though it doubted that the buyer could ultimately prove that the car was not merchantable solely because it previously had been used as a rental vehicle. The court
also refused to dismiss the CPA claim, finding that the buyer stated a valid claim that she suffered damage because she bought a car that was worth less than what she paid for it because of its prior use. However, the court dismissed the RICO claims without prejudice. See Bailey v. Atlantic Automotive Corp.,
2014 U.S. Dist. LEXIS 6096 (D. Md. January 17, 2014).
Tom ([email protected]) and Nikki ([email protected]) are partners in the law firm of Hudson Cook, LLC. For information, call 410-865-5411 or visit www.counselorlibrary.com.
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www.fiada.com26 — Independent Dealer — April 2014 www.fiada.com
Eight Tips For Effective Email Communication
Arecent report estimated that over 300 billion emails are sent each day! Spam messages
are jamming in-boxes across the globe and the average person now gets nearly 100 messages a day.While no one denies the obvious productivity gains we’ve realized from the efficiencies of email communication, many people find themselves drowning in all these messages. Here are eight tips that will make your email communications more effective.
BY NANCY FRIEDMAN
C U S T O M E R S E R V I C E
1Practice being clear and concise with your message.
You’ll save time and your reader will appreciate it.• Consider using bulleted points to
clearly express your thoughts.• Everyone has a different style of
how they intake information.• Email communication works best
if you clearly outline the points you’re trying to get across in an easy to understand format.
Investing extra time while authoring an email pays big dividends by giving your reader a clear understanding of your message. Remember, if your
email is written with the purpose to educate, inform or persuade, then
making sure to get your point across is even more critical.
With the sheer volume of email messages most business people receive, there’s an inverse
relationship between the volume of text and successfully making the point. Most people will immediately read and understand a ten sentence email. Send them a 10,000-word document and they’ll likely scan the highlights, save it for later and you risk it not being read fully. People appreciate brevity. Remember, if your objective is to tell
the reader what time it is, you don’t need to explain how to build a clock!
2 Before sending, ALWAYS reread your message and double check for
grammar and misused words.It’s obvious to most of us to use spell check after we’ve composed our message. You should also make it standard procedure to reread your entire message before sending. Often times, you’ll notice words which have been left out, grammar that’s incorrect and worst of all—words witch our spilled write butt knot used inn the write weigh. (Note, that this last sentence runs through a spell checker perfectly.) How many times have you caught something too late, making your only option to curse at your spell-checking software!
3 Copy back salient points when replying to an earlier message.
Remember that your reader likely receives hundreds of emails a week. When you combine that with face-to-face meetings and phone calls, it’s dangerous to assume your recipient will remember your earlier exchange. Which of these messages has the greater chance for reader confusion?
Sure, sounds fine... Please proceed.”or“Sure, sounds fine... Please proceed.”You wrote: Hi Jody, Are you okay with the proposed color scheme on the new brochure? I’d like to print it next week.
It’s frustrating when someone sends you an email, with a specific answer but you’re unable to recall the original issue. This problem is largely avoidable by copying a portion of the original message alluding to the context.
Don’t let your emails land in the spam box. Create emails that get opened and responses.
4 Use specific subject line descriptions.
Since many email messages go back and forth several times over the course of many weeks, it’s important to accurately describe what the reader will find inside.
Considering the level of spam and anti-spam software in place today, you can’t afford to risk your message not being delivered because of a generic or poorly worded subject line. A subject line such as, “What do you think” doesn’t tell the recipient much. “Need suggestions for options on Acct #45619 - Robinson Inc.” is more specific. Remember, a legitimate message coming from your plant in Hong Kong advising you that “they’ve still had no luck increasing the prototype by 3 inches” is unlikely to ever make it past today’s spam filters.
5 Realize that once your message is sent, it’s difficult to recall.
Although some limited technology exists for recalling messages, it’s not universal. It’s possible to ruin their career with a single 60-second lapse in judgment, by sending the wrong message to someone.
Email is also ridiculously easy to edit and forward. Keep in mind that sending a message to one person can eventually be viewed by many other unintended parties. Always double-check the recipient line before sending any email. Horror stories about messages accidentally copied to “ALL” are becoming routine.
As a rule, it’s a good idea to never put anything in writing that a reasonable person would consider to be confidential or dangerous. If
your situation dictates you email such information, try to word your message in as factual and balanced a way as possible. As you write, imagine that the person you’re writing about eventually sees your message. Stick to facts, not opinions.
6 Practice the 24-hour rule when you’re upset.
It’s never a good idea to send an email when you’re angry. We’ve all been guilty of this. In the heat of the moment we type up a literary bombast. A message that will reduce the recipient to mush. We even reread it, and we’re actually sort of proud at how powerful the wording is. We imagine the recipient opening and cringing as he/she reads our words. Then we send it.
Continued on Page 29.
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www.fiada.com28 — Independent Dealer —January 2014 www.fiada.com28 — Independent Dealer — October 2013
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April 2014 — Independent Dealer — 29 www.fiada.com
Only later, after we calm down, we revisit the message and realize that we dramatically overreacted. But it’s too late to do anything now, except apologize and try to mend fences. This is more common than you think.If you compose an email in anger, wait a predetermined period of time before sending it. If your emotions are legit, then your issue will still be there tomorrow. But in 95% of the cases, you’ll be glad you waited and toned things down after you’ve gain the perspective that can only come with some additional time.
7 Avoid sh-cuts and abbr. in biz email msgs.
Anyone with a teenager knows you practically need a CIA decoder chart to understand the abbreviations and shortcuts that are popular in email and text messages. These cutesy short cuts and misspellings are ill advised to use in any corporate context, no matter if your customer is external or internal. Even common shortcuts like “LOL, BRB, OMG, 2, 4, SMH and u r” are simply too casual for most business communication. What’s hip to one sender can be read as flip and disrespectful by another reader. Since a casual message to a coworker could easily be forwarded, it’s best to practice the same high level of professionalism no matter who you’re writing to.
8 Don’t Forward Viral Messages.What’s that you say? You’d only
forward important messages on to your coworkers and friends? Not so fast. Unlike obvious computer viruses that involve actual destructive code, many messages are viral in nature, in that they are purposefully crafted so you’ll send them on to friends with the idea that you weren’t positive if this was real but wanted to be sure they saw it just in case! Although not usually harmful, these emails prey on normally smart individuals desire to inform others.Everyday, intelligent people who would never consider themselves gullible forward on hoax messages about:• Pending Congressional taxes on
emails• Avoiding waking up in a hotel
bathtub of ice - minus your kidneys
• Easy steps for getting some of Bill Gates/Disney/AOL’s money
• How to delete viruses from your PC (which are actually legit Windows’ files your system needs)
• Child abductions at giant retailers
• A royal widow begging you to look after her $18,000,000 if you’ll just give her your bank account number.
The list goes on. If you are the recipient of an email message you think is relevant to your friends and family, run it by this test: Copy and paste a few words from the message into Google along with the word “hoax.” If the returns come back showing articles claiming the message is a fake, save everyone in your address book some time by hitting the delete key! The same rule applies to jokes and pictures which would be deemed as inappropriate by your employer.
While there may not be a silver bullet that saves us from an onslaught of never ending messages, common sense practices can make our business email correspondence more effective and productive every working day.
Reprinted with permission of Telephone Doctor Customer Service Training. Nancy Friedman is a featured speaker at association, franchise & corporate meetings. She has appeared on OPRAH, Today Show, CNN, FOX News,Good Morning America, CBS This Morning & many others. visit: www.nancyfriedman.com 314.291.1012 or800.882.9911
EFFECTIVE EMAIL continued from Page 27.
www.niadaconvention.com
INDUSTRY NEWSRevised DOR Motor Vehicle Sales Tax Rates by State AvailableSection 212.08(10), Florida Statutes (F.S.), allows a partialexemption for a motor vehicle purchased by a resident of another state. The tax imposed is the amount of sales tax that would be imposed by the purchaser’s home state if the vehicle were purchased there; however, the tax imposed must not exceed the Florida six percent tax rate. The tax collected is Florida tax and must be paid to the Florida Department of Revenue. The nonresident purchaser is required at the time of sale to complete Form DR-123, Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State, declaring his or her intent to license the vehicle in his or her home state within 45 days of the date of purchase. If the nonresident purchaser licenses the motor vehicle in his or her home state within 45 days from the date of purchase, there is no requirement that the motor vehicle be removed from this state. The partial exemption for a motor vehicle sold in Florida to a nonresident purchaser does not apply to a nonresident corporation or partnership when:• An officer of the corporation is a Florida resident; or• A stockholder who owns at least 10 percent of the
corporation is a Florida resident; or• A partner who has at least a 10 percent ownership in the
partnership is a Florida resident.However, the partial exemption may be allowed for corporations or partnerships if the vehicle is removed from Florida within 45 days after purchase and remains outside this state for a minimum of 180 days, regardless of the residency of the owners or stockholders of the purchasing entity. Currently, the states of Arkansas, Mississippi, and West Virginia impose a sales tax on motor vehicles, but they DO NOT allow a credit for taxes paid to Florida. Residents of these states should be informed that they must pay sales tax to Florida at the rate imposed by their home state when they purchase a vehicle in Florida and must also pay tax to their home state when the vehicle is licensed in their home state. Get a chart of tax by state, and further details, at http://dor.myflorida.com/dor/tips/tip14a01-01.html.
www.fiada.com30 — Independent Dealer — April 2014
Is Your Shop AC 609 Compliant?As the summer quickly approaches, your shop will see anincreased amount of vehicles with Air Conditioning issues. Are you prepared? For the past ten years, the EPA has been enforcing guidelines for air conditioning technician and equipment certification. Now is the ideal time to review your AC 609 certifications. Review the following three items to make sure your shop is AC 609 compliant: 1. Review your training records. Have all of your AC
technicians received the appropriate training, and are they up to date? If your facility owns refrigerant recycling/recovery equipment, it must retain on-site records for all certified air conditioning service technicians. Confirm with each employee if they have completed section 609 training. If so, obtain a copy of their certification.
2. File all technician proof of AC training. Once you have obtained proof of technician training for every applicable employee, you must keep their unique certification card on file for “Section 609” training. The EPA maintains a web-based list of currently approved training programs. Visit http://www.epa.gov/ozone/title6/609/technicians/609certs.html for the complete list.
3. Update your equipment certification. You must certify in writing to the U.S. EPA that your shop has acquired (and is properly using) approved recovery/recycling equipment. You must also confirm that each individual authorized to use the equipment has been properly trained. The certification must include:• Name of the purchaser of the equipment.• Address where equipment will be located.• Manufacturer name and equipment model number.• Serial number of the equipment.
A copy of the equipment certification form is available online at http://www.epa.gov/ozone/title6/609/mvac_cert_form.pdf
This article is provided by KPA, who provide Environment & Safety services for Auto, Agricultural /Heavy Equipment, Motorcycle, RV, and Truck Dealers. If you have additional questions, please contact KPA at [email protected] or 800.853.9659.
Have You Filed Your Report on Sunbiz.org? Annual Reports are due each year between January 1st and May 1st. Be sure to file on time. All profit corporations, limited liability companies, and limited partnerships will be assessed a $400.00 late fee after May 1st which cannot be waived. For more information or to file, visit http://sunbiz.org/. Do not confuse “Annual Minutes” or “Annual Corporate Record Forms” notices with the Florida Department of State’s required Annual Report filings. These notices, which solicit a fee of $125, are NOT from the Department of State or any other state or federal agency. Please disregard these notices. Neither form is required by this office or any other state or government agency.
April 2014 — Independent Dealer — 31 www.fiada.com
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:
•HigherAdvancethanFactoring
PAID ADVERTISING
32 — Independent Dealer —April 2014 www.fiada.com
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