november 2010 independent dealer magazine

November 2010 — Independent Dealer — �www.fiada.com

November 2010 www.FIADA.com Information and Insight for Florida Used Car Dealers

Relive the 2010 Annual Convention highlights on 1. Read the story about the 2010 Quality Dealer of the Year on Page 16.

since 1940

A Publication of the Florida Independent Automobile Dealers Association

PRST STDU.S. POSTAGE

P A I DTAllAhASSEE, Fl

PERMIT NO. 801

Quality Dealer of the Year Jim Kagiliery and his family.

� — Independent Dealer — November 2010 www.fiada.com

PAiD

AD

VeRT

isin

G


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 Jeff Gann President

Greg edwards Chairman of the Board

John cousins Senior Vice President

Dino Mercurio Secretary

Brandi noegel Treasurer

Jim Kagiliery Regional Vice President

Frank Fuzy Regional Vice President

George Hickey Regional Vice President

steve Marbais, cMD Regional Vice President

chris Leedom Regional Vice President

FiADA sTAFF steve Jordan Executive Director

Ginger White Director of Membership Recruitment & Retention

Terry Myers Educational Instructor

sarah Langley Membership Coordinator

Alex Romans Education Coordinator

christy Taylor Editorial/Advertising

POSTMASTER:Send address changes to:FiADA • 1840 Fiddler court

Tallahassee, FL 32308(850) 385-2712 • Toll Free: (800) 237-0448

Fax: (850) 385-3251 • www.FiADA.com

The IndependentDealeris a publication of: Florida independent Automobile

Dealers Association, 1840 Fiddler court, Tallahassee, FL 32308.

The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request.

The statements and opinions expressed herein are those of the individual authors

and do not necessarily represent the views of IndependentDealer or the Association.

Likewise, the appearance of advertisers, or their identification as members of FiADA, does

not constitute an endorsement of the products or services featured.

ContentsNovember �0�0

For members of the Florida Independent Automobile Dealers Association

C O L U M N S & F E A T U R E S

4 President’s Message Jeff Gann

6 Risk Based Pricing Requirements Soon To Take Effect Rob Sickles

8 Moving the Auto Industry Forward: Entrepreneurs and Regulators Working Together to Advance Small Business From the DMV Bureau of Field Operations

10 2010-2011 Executive Committee Meet the new members of FIADA’s leadership team.

11 Fast Cars & Freedom Annual Convention Highlights Photos tell the story of the �0�0 Annual Convention & Expo.

16 What is Quality? FIADA’s Quality Dealer of the Year Jim Kagiliery and his business partner Jim

Thompson discuss how they rose to the top.

20 Legislative Update John Grant, FIADA Lobbyist

13 Update: Election Day 2010 See who won in Florida’s statewide and legislative elections as well as which

amendments were passed into law.

Use this form to make your contribution, or go online to www.FIADA.com.

cOnTRiBUTOR’s nAMe:

DeALeRsHiP:

ADDRess:

Make your check out to FIADA-PAC and mail your contribution to: FIADA • 1840 Fiddler Court • Tallahassee, FL 32808

enclosed is my check for:

$1,000 $500 $250 $100 ______ Monthly contribution _______

PAC CONTRIBUTION FORM


The past year has been challenging for nearly everyone and has undoubtedly led to a great deal of thought about the future. How to

merely survive has taken the place of how to grow your business for many. On top of that is the onslaught of increased regulatory demands and higher costs of doing business. The last election cycle is a reflection of voter frustration over these and other similar issues. The winds of change seem to be a category five hurricane right now. What will it be like when the dust settles? Americans are resilient and will commence to rebuild and rebound like no other. Although it seems individualism is an endangered species in this brave new world we live in, many of us are not throwing in with the herd just

yet. Most of us are in the car business for exactly that reason. We want to control our own destiny and do it with our own style and ideas. Like the building materials for a house, we are the bricks in the wall of our industry. Each individual brick of your house is as important as the rest; imagine what your house would be like if your builder left just one out. They must all work together, interlocked and unified in purpose: to keep you secure inside and protected from the rain and cold of the outside world. If you are reading this, it is a good chance you are an FIADA member. If you are not a member, you are

Building Your Future With FIADABY JEFF GANN

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

important, but you are alone. You are like one of the bricks scattered about a construction site. Without being unified and interlocked with the other bricks you cannot become a mighty structure capable of holding the harsh elements at bay. A good example of the adage regarding strength in numbers is what the FIADA accomplished during the last legislative session in Tallahassee. We were a unified force that held back the harsh political elements detrimental to our industry. One person alone could not have achieved what your Association did. PERIOD. But like the weather, one never knows what tomorrow brings in the political or business environment. We must strengthen our walls and build them higher. Many challenges still face our industry and we

must be prepared if we are to do more than just survive. Even as rugged individualists, more can be accomplished if we unite and allow the FIADA to be the mortar that binds us together. As your new president I stand ready

to help take your Association into the future regardless of what may lay ahead. My goal is to build the FIADA into a respected political force and find better ways to make your business profitable and able to face the challenges ahead.

FIADA membership has many benefits and advantages. Don’t be left out in the cold. This coming year is going to be GREAT!

Jeff Gann,FIADA President

My goal is to build the FIADA into a respected political force and find better ways to make your business profitable and able to face the challenges ahead.

PAID

AD

VE

RTI

SIN

G


PAID

AD

VE

RTI

SIN

G


On January 1, 2011, auto dealers, as well as other companies that use credit reports or credit scores in connection with making

credit decisions, must provide notice to consumers in order to comply with the new risk based pricing rule. The risk based pricing rule was created by the Federal Reserve Board and the Federal Trade Commission pursuant to provisions within the Fair Credit Reporting Act. The intention was to require lenders to notify consumers when lenders are charging consumers more for credit due to the consumer’s credit report. Apparently, some in the Legislature were concerned that adverse action notices were only advising consumers when they were denied credit based upon their credit reports or where consumers did not accept counteroffers of credit, and there was no meaningful mechanism in place for consumers to be advised that their credit scores were causing them to pay more for credit where adverse action notices were not required.

The risk based pricing rule requires any company that uses a credit report or credit score in connection with making a credit decision, including auto lenders, to send notice to consumers when, based on a credit report or credit score, the company grants credit on “material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers” from or through the entity that is extending credit. 16 CFR 640.1.

The rules offer some guidance as to those terms that are “material” for compliance purposes. For an auto loan “material terms” generally means the APR for

the deal. “Materially less favorable” is defined as the “terms granted, extended, or otherwise provided to a consumer differ from the terms granted, extended, or otherwise provided to another consumer from or through the same person such that the cost of credit to the first consumer would be significantly greater than the cost of credit granted, extended, or otherwise provided to the other consumer.” In another words, if the APR for two consumers differ based upon the consumers’ credit report and the difference causes one of the consumer’s costs to be “significantly greater” then a disclosure is required, if the terms are less favorable then those offered to a “substantial proportion of consumers”. Unfortunately, “substantial proportion” is not defined, however, the rule provides three different methods that can be used to determine whether to provide the risk based pricing rule disclosures. These methods can be found in 16 CFR 640.3.

Of far more importance to most dealers are the exceptions contained within 16 CFR 640.5. These exceptions allow a lender to avoid determining who is to receive a notice under the rules outlined above, if the lenders agree to provide all consumers with a notice that contains the consumer’s credit score, as well as additional information about credit scores. The rules provide a model notice for this purpose and it can be found on the Federal Trade Commission’s website or through FIADA. The model document is called the “model form for credit score disclosure exception for loans not secured by residential real property.” The information required by this form must be furnished to all consumers applying for credit through your

L E G A L U P D A T E

Risk Based Pricing Requirements Will SoonTake EffectBY ROB S ICKLES


PAiD

AD

VeRT

isin

G

dealership if you elect to comply with the risk based pricing rules in this manner.

The timing of the notice is also important. Under 16 CFR 640.4, the notice must be furnished to the consumer before the consummation of the transaction, but not earlier than the time the decision to approve an application or granting an extension of credit is communicated to the consumer by the dealer. Subsection 2 also contains provisions which allow an indirect lender to meet the requirements through dealers, however, please keep in mind that most motor vehicle retail installment sales transactions in Florida are direct lending situations between the dealer and the consumer, even when third-party financing is involved. In most instances the dealer is listed as the seller on the retail installment sales contract and that contract is then assigned to a lender. Under that situation, the dealer would be responsible for insuring compliance with the risk based pricing rules.

It should be noted that the Federal Legislature did not create a private right of action for a dealer’s violation of the risk based pricing rules. Unfortunately, the failure to comply with these rules after January 1, 2011 could trigger liability under Florida’s Deceptive and Unfair Trade Practices Act so all dealers should endeavor to comply with the rules starting on January 1, 2011.

Robert E. Sickles is a partner in the Tampa office of Hinshaw & Culbertson LLP focusing his practice on commercial litigation and consumer and class action defense and is the outside general counsel to the Florida Independent Automobile Dealers Association. If you have questions related to compliance issues or of a technical nature, you can reach him at (800) 237-0448.


The Department continues its partnership efforts with industry to advance the use of technology as a viable tool in streamlining

how the auto industry complies with regulatory requirements. This article highlights advancements that have been implemented to help small business advance, as well as, assist the Department in performing its duties in an effective manner.

Enhancing Communication:To ensure dealers and licensees are provided with the most current information and alerted to important changes, the Department communicates with dealers through email. The Department has been emailing legislative updates and other important communications to dealers since the spring of 2009. This quick and efficient communication tool helps keep dealers informed of issues that are relevant to their business. We also email all renewal notices to dealers as a convenience to the dealer industry. This way, your renewal notice is received timely and provides you with plenty of time to submit your renewal to the Department no later than 30 days from the license expiration date as statute requires.

The Department also sends letters to dealers asking that our records be updated to show current Garage Liability Insurance. It is very important that the dealer NOT rely on the insurance company to provide this data. It is the dealer’s responsibility to submit a copy to the regional office in their area when it is received from the insurance company.

We strongly encourage all dealers to provide a business email address to ensure important updates and renewal notices are received, as the Department is no longer using the postal service to deliver these notices. Our experience has shown that using the personal email of an employee may result in your dealership not receiving this important information

On-line Q&A for Dealer Licensing:The Department has also developed a website that helps define what type of license is needed for an activity and provides guidance on information required to obtain a license, along with links to required forms. The website can be accessed at www.flhsmv.gov/dmv/dealer.html

Automating Audit Functions The Department has the ability to pull recent title transactions in order to determine compliance with the statutory requirement to transfer title within 30 days of delivering the vehicle. The Department can also pull a report indicating the temporary license plates that are printed on demand to determine if the ETR or EFS systems are being utilized properly. These reports are used in conjunction with the regular audits that are performed at the dealership.

Electronic Storage of FilesHouse Bill (HB) 631 passed during the last legislative session, allows dealers to image the documents they are statutorily required to keep as part of their records. When a licensee chooses to maintain electronic records, the original paper documents may be destroyed after the licensee successfully transfers title and registration to the purchaser as required by Chapter 319, Florida Statutes, for any purchaser who titles and registers the motor vehicle in this state. In the case of a sale to a purchaser who will title and register the motor vehicle in another state or country, the licensee may destroy the original paper documents after successfully delivering a lawfully reassigned title or manufacturer’s certificate or statement of origin to the purchaser and after producing electronic images of all documents related to the sale.

Florida Working to Enhance the E-Title ProgramTechnology facilitates and improves how we do business, enabling us to provide our customers with

F R O M T H E D I V I S I O N O F M O T O R V E H I C L E S

Moving the Auto Industry Forward: Entrepreneurs and Regulators Working Together to Advance Small Business


¥ ¥ ¥ ¥

AutoRaptor CRM

better, faster services. One area where technology plays a key role is in the Department’s issuance of electronic titles or e-titles.

E-titles are certificates of title held in electronic form in the Department’s database. Florida law recognizes ownership of motor vehicles via e-titles in the same manner as paper titles. Currently, however, when the owner of a vehicle with an e-title wants to sell his/her vehicle, he/she must convert the title to paper to meet state and federal odometer disclosure requirements. Both state and federal laws require the seller of a motor vehicle to disclose the odometer reading of the vehicle on the face of title, and then have the title signed by the purchaser which serves as proof of acceptance of the disclosure. This requires an owner to convert his/her e-title to a paper title. Florida is working with federal authorities to allow titles to remain electronic and still meet state and federal odometer disclosure requirements.

On-line system to report derelict vehiclesLicensed salvage motor vehicle dealers (dealers) and registered secondary metals recyclers (recyclers) must

return to the Department all certificates of title and salvage certificates of titles for motor vehicles and mobile homes they receive. Florida Statute allows them to notify the Department electronically when they receive these vehicles. By providing an electronic notification system, the Department will know when a salvage or derelict motor vehicle or mobile home has been received. Often stolen vehicles are sold to dealers or recyclers and unfortunately, destroyed before the Department receives information on the vehicle. Electronic reporting will allow us to help locate vehicles prior to their destruction.

The Department is working to develop an electronic system that will allow the capture of this information and will also begin drafting rules, as authorized by statute, to administer the electronic notification system.

Technology facilitates and improves how we do business, enabling us to provide better service and more efficient processes for the licensees and customers we serve. If you have any questions about any information discussed in this article, please contact the Department’s Bureau of Field Operations at (850) 617-3171.

�0 — Independent Dealer — November 2010 www.fiada.com

PAID

AD

VE

RTI

SIN

G

PresidentJeff Gann

Lakeshore MotorsEast Lake Weir, FL

[email protected]

Chairman of the BoardGreg Edwards

Greg Edwards Enterprises Daytona Beach, FL

[email protected]

SENIOR VICE PRE

2010-2011 Executive Committeecongratulations to the 2010-2011 executive committee members. As the Association’s leadership, these men and women have volunteered to make themselves available to all members for advice, discussion and assistance.

November 2010 — Independent Dealer — 5www.fiada.com

SENIOR VICE PRESIDENTJohn Cousins

Southeast Car AgencyGainesville, FL352.377.7787

[email protected]

TREASURERBrandi Noegel

Noegel’s Auto SalesStarke, FL

[email protected]

SECRETARYDino Mercurio

Independent Credit, Inc.West Palm Beach, FL

[email protected]

REGIONAL VICE PRESIDENTJim Kagiliery

Brightstar Financial Group, Inc.Jacksonville, FL904.400.6190

[email protected]

REGIONAL VICE PRESIDENTFrank Fuzy

Century Motors of South FLPompano Beach, FL

[email protected]

REGIONAL VICE PRESIDENTGeorge Hickey

Bond Auto Sales, Inc.Tampa, FL 34761

[email protected]

REGIONAL VICE PRESIDENTSteve Marbais

Marbais Enterprises, Inc.Ocoee, FL 34761

[email protected]

REGIONAL VICE PRESIDENTChris Leedom

AutoMaxxSarasota, FL

941.309.1111 [email protected]

November 2010 — Independent Dealer — ��www.fiada.com

Dealers from all over the state came to St. Petersburg’s TradeWinds Resort on Oct. 15 and 16, 2010 for the Florida

Independent Automobile Dealers Association’s Annual Convention hoping to learn something, build contacts and have some fun. FIADA delivered on all accounts and the 438 people in attendance agreed it was the Association’s best convention yet.

Hundreds of dealership attendees- were impressed by the all-star line-up of speakers and an expanded, multi-session education program that covered topics from Buy-Here, Pay-Here benchmarks to online advertising. Friday’s opening session welcomed everyone with a visionary commentary on the future of the industry from Carl Ford, director of the Florida Division of Motor Vehicles.

From there, attendees started the first leg of their continuing education tour through three hours of workshops aimed at general industry themes and

business-building strategies. A final general assembly seminar presented by NIADA’s General Counsel Keith Whann gave dealers an overview update on the new Consumer Financial Services Reform Bill and

h o w the federal government’s expansion w i l l affect small businesses.

November 2010 — Independent Dealer — 11www.fiada.com

Pictures: Top, DMV Director carl FordLeft, sales Trainer George DansMiddle, seminar speaker chris LeedomRight, seminar speaker L.J. Marhefka

�� — Independent Dealer — November 2010 www.fiada.com

With the work out of the way, attendees were able to have some fun starting at the Annual Awards Banquet on Friday night. An incoming Executive Committee lined the head table, filled with both new and familiar faces. President Greg Edwards emceed the program and presented some high-profile awards to well-deserving winners.

FIADA Executive Director Steve Jordan was humbled when awarded the President’s Award, a special award given by the president to the person who was most helpful during his term. Manheim Daytona Beach Auto Auction General Manager Eric Wagner was recognized for his ongoing support of the Association as the Auction Man of the Year. Jim Taylor, president of Auto Data Direct was stunned to receive the Man of the Year Award, which is traditionally presented to a non-dealer for their contributions to the Association and the industry. FIADA’s Dealer Training School instructor Terry Myers was also recognized for his membership recruitment efforts with the crystal Eagle Award.

The biggest award of the evening was the prestigious Quality Dealer of the Year award. A surprised, and speechless, Jim Kagiliery was singled out as Florida’s top dealer. Kagiliery’s reputation, Association involvement and business leadership were the key factors in winning the award.

A new Executive Committee was sworn in at the banquet and led by incoming FIADA President Jeff Gann. The other Executive Committee officers include Greg Edwards, Chairman of the Board; John Cousins, Senior Vice President; Dino Mercurio, Secretary; Brandi Noegel, Treasurer; and Regional Vice Presidents Jim Kagiliery, Frank Fuzy, George Hickey, Steve Marbais and Chris Leedom.

At each stop on the CE Passport Friday and Saturday, dealers were given credit for completing their required 8 hours of continuing education coursework. This year, participation in the continuing education program at the Annual Convention saw more than an 100% increase over years past.

12 — Independent Dealer — November 2010 www.fiada.com

clayton stanfield (L) and Frank Fuzy (R)cheryl Wilke discusses labor liability issues.

Jeff Barbacci, cPA speaking on fraud and theft.

An interested dealer listens closely during the in-depth continued education workshop.

FiADA Outgoing President Greg edwards and his wife Donna.

Greg edwards passes the gavel to Jeff Gann.

2010 Quality Dealer Jim Kagiliery acceepting his award.


executive Director steve Jordan with Quality Dealer Jim Kagiliery and his wife Arronson.

Man of the Year Jim Taylor

of Auto Data Direct.

Auction Man of the Year, eric Wagner of Manheim’s Daytona

Beach Auto Auction.

crystal eagle Award,

Terry Myers

2010 Award Winners

The focus for Saturday was on legislative involvement, including a general session Legislative Update on Saturday morning presented by Legislative Committee Chair Dino Mercurio, Executive Director Steve Jordan and FIADA Lobbyist John Grant. The first ever Candidate Forum gave attendees a chance to get up-close with some of the statewide candidates seeking election. Gubernatorial candidate Rick Scott prepared a personalized video message for attendees and a representative from Attorney General Pam Bondi’s campaign spoke to the crowd.

Senate President Jeff Atwater, who will become Florida’s next Chief Financial Officer in January, spent some time talking with convention attendees and sharing his ideas for relaxing regulations on small businesses in Florida. Out of the four candidates who were elected to Florida’s Cabinet, three were represented at the Candidate Forum.

November 2010 — Independent Dealer — 13www.fiada.comwww.fiada.com

There was plenty of buzz around the exhibit hall as dealers and vendors mixed to share business and collect resources. With a sold out exhibit hall, dealers had ample opportunity to add ammunition to their arsenal.

Legislative chairDino Mercurio

Florida cFO Jeff Atwater


The convention closed with the Fast Cars & Freedom Dinner, a showcase of patriotism and pride for everyone involved. Official Florida Lottery machines, retired from active duty, were used for the $10,000 Special Membership Drawing. Over 1,400 tickets were sold for the drawing, which raised nearly $9,000 for the Florida Association of Food Banks (FAFB). Top ticket sellers were John Cousins, who walked away with a $500 first place prize; Frank Fuzy, the second place winner; and Ginger White in third place. Auctioneer Lynn Taylor won the $1,000 third place prize and Eric Peterson of Eric Peterson Motors won the $2,000 prize in the drawing. Jeff Gann was the lucky winner of the $10,000 grand prize.

See all the 2010 Convention Photos

Go online to www.FIADA.com and click on the FIADA Photo Gallery link in the News & Events box to take a look at all of the FIADA 2010 Annual Convention pictures. You can download complimentary high-res images to print on your personal photo printer or send to any photo lab to make prints.


Pictures: Top left: Frank Fuzy, Brandi noegel and Gina FuzyTop Right: Aronson Kagiliery picks a winning number.Bottom Left: FAFB Representative Marc sutherlandBottom Right, executive Director steve Jordan congratulates a drawing winner.

November 2010 — Independent Dealer — ��www.fiada.comwww.fiada.com

Dealers can access thousands of vehicles of nearly every make and model 24/7.

Our online auction offers a diverse selection of vehicles, thanks to a vast community of buyers

and sellers that includes OEMs, banks, rental companies and dealers across the country.

So you can quickly and easily find the right pre-owned car for your customer. And that

saves you a lot of hassle, time and money.

See how SmartAuction can help your used car business by visiting smartauction.biz

or calling 1.877.273.5572.

THE SUN.

EVERYTHING

UNDER

© 2010 GMAC. All rights reserved. SmartAuction is a registered service mark of GMAC.

PAiD

AD

VeRT

isin

G


There are plenty of things used car dealers have a right to complain about these days. No doubt a sour economy, scarce inventory supply, lack of

financing sources, unmatchable manufacturer incentives and increased government regulations and fees are at the top of the list. It is enough for even the most veteran of dealers to lose sleep at night.

Business partners and J.D. Byrider franchisees Jim Kagiliery and Jim Thompson have chosen to use today’s challenges as an opportunity for reevaluation and reform instead of doom and despair. Rather than let circumstances bring them down they chose to take control of their destiny and capitalize on some of those key concerns that have caused less-confident business owners to shut their doors. Kagiliery and Thompson have steadily grown their business and even posted some record setting years. With still two months to go 2010 has already been their best year ever and they are making plans to expand to a seventh location after the first of the year. How did they do it? A combination of good business sense, an uncompromising commitment to superior customer service and active involvement with the Florida Independent Automobile Dealers Association.

As colleagues at the J.D. Byrider corporate office in Indianapolis, IN Kagiliery and Thompson became friends, traveling the country selling franchises to independent and new car dealers. They entertained the thought of owning their own dealership when a dealer caught them off-guard one day with an interesting question.

“He asked me, ‘if this is such a great business, then why aren’t you doing it?’ We asked ourselves, why aren’t we doing it?” Thompson said.

The answer was money. Without more than a $1 million in start-up funding, there would be little hope of being successful in the buy-here, pay-here business. Kagiliery and Thompson did not have that kind of money, but they did have a desire to make things happen. They started scouting out potential dealers who would like to invest with them and ultimately teamed up with Steele Gudal, a J.D. Byrider corporate officer and son-in-law to the company’s founder. With Gudal’s financing and Kagiliery and Thompson’s willingness to put in the sweat equity required to start a dealership, they opened up their first store in Jacksonville in 2000.

Business was going good and things were beginning to gel together when a fatal plane crash unexpectedly ended the partnership with Gudal in 2006. Kagiliery and Thompson chose to honor his memory by working harder and taking the business to new records and impressive growth. They now have a business with 6 locations (five in Florida and one in Augusta, GA), 137 employees and a $50 million loan portfolio.

Their customers are credit challenged. Some have had bankruptcies or foreclosures. Others have been overwhelmed by medical bills or life-changing hardships. A few are just looking for a chance to establish credit for themselves. Kagiliery says that providing people with reliable, affordable transportation is more than just a business model, it is their corporate responsibility.

“Used car dealers don’t get enough credit for what we add to the economy, Kagiliery said. People with their own transportation have access to 85 times more income opportunities than those who don’t. We enjoy helping customers build their lives,” Kagiliery said. “We are

For 2010 Quality Dealer of the Year Jim Kagiliery and his business partner Jim Thompson it means taking care of the customer, getting involved with the FiADA and building a solid business that earns the respect of the community and the industry.

BY CHRIST Y TAYLOR



providing employment for people by assisting them with personal transportation. I’m proud of helping customers.”

Kagiliery says their success as a dealership is dependent on providing customers with the best customer service possible. By offering 24 month/24,000 mile warranties standard with every car sold, customers drive away with the assurance their vehicle will be reliable. Each car on the lot is also inspected and repaired (if needed) so that every car is running at its optimum. Customers seem to be continually impressed and continue to come back, with 60% of business coming from existing accounts.

“My philosophy is to under promise and over deliver,” Kagiliery said. He adds that keeping current customers happy is a vital component of success. “It’s much more efficient to maintain the customer you have. It costs 10 times as much to replace a current customer with a new customer. We’re in a business with a pretty low bar of expectations. Do what you say you’ll do and you’ll do great.”

As customers appreciate the professional courtesy J.D. Byrider offers them with quality products and generous warranties, Kagiliery and Thompson put further action to their customer service commitment by giving back to the community. Rather than donating money to non-profits and charitable organizations, they choose to take care of the people they know directly.

“Plenty of our own customers are struggling,” Kagiliery said. “When you carry the note, you know what’s going on in these people’s lives. You know when they need help.”

Every year, the dealership identifies customers who need a helping hand and the employees adopt those families for Christmas. Usually they select around 10 families to present dinner and groceries, gift cards and donations to and help through what may be a rough time. There is no ceremony or special attention, just a low-key helping hand that makes a big difference to a struggling family.

“We could give $5,000 to the United Way, but this hits much closer to home. Our employees can see the direct impact helping these families has, and it gives us all great pride in working here,” Kagiliery said.

Employee satisfaction is as much a necessity for a successful business as happy customers, according to Kagiliery and Thompson. They try to support employees and encourage them in any way they can including rewarding them with ample opportunity to advance. Kagiliery and Thompson believe strongly that it is important to promote from within and every time they open a new location, they choose from among current staff to become key leadership in the new store.

“Who we employ is crucial to our success,” Kagiliery said.

Being members of the FIADA seems to be that final thing that gives Kagiliery and Thompson the competitive edge. Kagiliery has been active with the association for many years and has served on it’s board of directors for the last five

“Being an FIADA member is hugely important,” Kagiliery said. “This industry has been good to my family and I get involved because I want to make sure we’re steering it in the right direction.”

His involvement has included chairing the FIADA Legislative Committee as well as serving as a Regional Vice President, President and Chairman of the Board. He was also appointed to lead the Auto Industry Task Force, a group comprised of appointees of several different agencies that regulate and affect dealers such as the Division of Motor Vehicles and law enforcement agencies.

Jim Kagiliery with wife Aronson and twin daughters Julia and Anna at the 2011 Annual convention & expo in st. Pete Beach.

www.fiada.com


FOLLOW - ME

Lindsey Patrick (407) 417-3607 [email protected]

Contact Sterling Credit Corporation to purchase your BULK RECEIVABLES!

Don’t take the long and winding road when there is a direct path to PROFIT!

CollectionsConsuming

Time

MissedOpportunities

InventoryBuy

Inability To

MinimizeRisk

SalesMaximize

CapitalTo

Easy Access

Kagiliery has always had immense respect for the elder members of the Association and takes any opportunity he can get to network and learn from them. Hanging around dealers with 40 or 50 years of experience gives him insight that cannot be found anywhere else and has helped direct the way he runs his business.

“I may have paid a few thousand dollars in dues over the past 10 years, but I have saved millions in free advice and networking opportunities with my fellow members,” Kagiliery said.

The Association sees a lot in Kagiliery as well. At the 2010 Annual Convention, he was honored with the prestigious Quality Dealer of the Year Award. Kagiliery will now

represent Florida in the national Quality Dealer of the Year contest sponsored by the National Independent

Automobile Dealers Association and presented at the NIADA Convention, this June in Las Vegas.

When presented with the Quality Dealer award at the Annual Convention in St. Pete Beach, Kagiliery thanked the Association and the members, but he shared the motivation for his success is his family including his wife Arronson and twin daughters Julia and Anna.

“They are why I do it--to provide for my family,” Kagiliery said. “Sometimes, the best way to provide opportunities for yourself is to provide opportunities for others.”

“I may have paid a few thousand dollars in dues over the past 10 years, but I have

saved millions in free advice and networking opportunities with my

fellow members.”—Jim Kagiliery,

2010 FIADA Quality Dealer of the Year

PAiD

AD

VeRT

isin

G

�0 — Independent Dealer — November 2010 www.fiada.com

A New ChapterBY HONORABLE JOHN GRANT, F IADA LOBBYIST

The 2010 elections are now history and a new chapter of government begins. For the first time since Reconstruction, Florida has an all

Republican Cabinet and a “veto proof ” GOP majority in both the House and Senate, where Republicans made significant gains.

A new Governor and Attorney General are coming to town as well, neither of whom has ever held public office. Additionally, every member of the Cabinet will be someone who has never held statewide office. More than a quarter of the legislature will be freshmen who have never served in Tallahassee. All in all, expect a far more conservative government that will focus on cutting government spending and relaxing or eliminating bureaucracy and regulations. This is good news for small business men and women like our dealers. For the first time FIADA was active in legislative races. The Legislative Committee interviewed candidates by questionnaires and carefully evaluating the stand, position and understanding of dealer issues by each candidate. Then they endorsed candidates, gave PAC money and encouraged dealers to support their local FIADA endorsed candidates. Many of our dealers used their lots as sign locations and others hosted local fundraisers and friendraisers for our endorsed candidates, as well as giving from their own personal funds. The hard work paid off and now the FIADA endorsement is something that every candidate will

L E G I S L A T I V E U P D A T E

be seeking in the future. The results proved it. In the General Election, FIADA endorsed eight Senate races and fifty-three House races. We scored a perfect 100% in the Senate races and only lost two endorsed seats in the House. It was a great election victory for FIADA and certainly took us up another notch in the political process. One election close to the heart of this writer is the election of James Grant, who was elected to the House seat his father was elected to 28 years ago and now becomes the youngest member of the House.

The new government will be facing a lot of challenges and their first priority will be in turning the economy around and creating new jobs—something that is sweet music to all of our dealers.

Your Legislative Committee and lobby team will be present in Tallahassee during the upcoming 2011 Legislative Session. Legislators know who we are and will be hearing what we will be saying. We supported them before the election and we will be asking them to support our legislative priorities during their term in office.

FIADA members and especially the Legislative Committee under the Leadership of Dino Mercurio deserve a round of applause for all they have done to advance our political presence and clout in Tallahassee. We will see evidence of their work as the upcoming legislative process unfolds. Keep up the good work and remember that the 2012 elections are less than two years away.


PAiD

AD

VeRT

isin

G


The following list includes the candidates endorsed by FIADA who were elected in the Florida Senate.Bill Montford, District 6John Thrasher, District 8Steve Oelrich, District 14

Clay Ford, District 3Jimmy Patronis, District 6 Marti Coley, District 7 Alan Williams, District 8 Leonard Bembry, District 10 Elizabeth Porter, District 11 Ronald Renuart, District 18 Bill Proctor, District 20Keith Perry, District 22 Dennis Baxley, District 24 Larry Metz, District 25 Ritch Workman, District 30 John Tobia, District 31 Chris Dorworth, District 34 Dean Cannon, District 35 Scott Randolph, District 36 Eric Eisnaugle, District 40 Steve Precourt, District 41

Robert Schenck, District 44 James Grant, District 47 Peter Nehr, District 48 Ed Hooper, District 50 Jeff Brandes, District 52 Rick Kriseman, District 53 James Frishe, District 54 Rachel Burgin, District 56 Dana Young, District 57 Shawn Harrison, District 60 Will Weatherford, District 61 Kelli Stargel, District 64 Greg Steube, District 67 Doug Holder, District 70Ken Roberson, District 71Mike Horner, District 79 Gayle Harrell, District 81

Florida Cabinet

Rick ScottGovernor

Pam BondiAttorney General

Jeff AtwaterChief Financial Officer

Adam PutnamAgriculture Commissioner

Florida Senate

Jack Latvala, District 16Alan Hayes, District 20Ellyn Bogdanoff, District 25

Jeremy Ring, District 32Anitere Flores, District 38

The following list includes the candidates endorsed by FIADA who were elected in the Florida House of Representatives.Florida House of Representatives

Pat Rooney, District 83 Mack Bernard, District 84 Joseph Abruzzo, District 85 Lori Berman, District 86 Bill Hager, District 87 Irv Slosberg, District 90 Jim Waldman, District 95 Franklin Sands, District 98 Luis Garcia, District 107 Erik Fresen, District 111 Jeanette Nunez, District 112 Carlos Lopez-Cantera, District 113 Jose Diaz, District 115 Dwight Bullard, District 118 Frank Artiles, District 119 Ron Saunders, District 120

The election is over and a new cabinet will head to Tallahassee in January. Here’s a review of who won, what passed and what failed.

2010 ELECTIONDAY COVERAGE

These candidates were elected by voters to form the next Cabinet of the State of Florida.


Amendment 1 Repeal of Public Campaign Financing: NoWould have ended taxpayer financing of statewide campaigns, a system created by the Legislature in 1987 and placed in the constitution by voters in 1998. Candidates would have to raise all campaign funds on their own.

Amendment 2 Tax Break for Deployed Military Personnel: YesRequires the Legislature to provide an additional homestead property tax exemption by law for members of the United States military or military reserves, the United States Coast Guard or its reserves, or the Florida National Guard who receive a homestead exemption and were deployed in the previous year on active duty outside the continental United States, Alaska, or Hawaii in support of military operations designated by the Legislature. The amendment is scheduled to take effect January 1, 2011.

Amendment 4 Control of Growth Plan Changes: NoWould have established that before a local government may adopt a new comprehensive land use plan, or amend a comprehensive land use plan, the proposed plan or amendment shall be subject to vote of the electors of the local government by referendum, following preparation by the local planning agency, consideration by the governing body and notice.

Amendment 5 Legislative Redistricting: YesSets standards for drawing legislative districts with the goal of disallowing the creation of districts to favor any candidate our party and ensuring that minorities have equal opportunities in the political process.

Amendment 6 Congressional Redistricting: YesSets standards for congressional districts with the goal of disallowing the creation of districts to favor any candidate our party and ensuring that minorities have equal opportunities in the political process.

Amendment 8 Public School Class Sizes: NoAmendment 8 would have set the average pre-K through third grade class size at 18 students, but allow a maximum of 21 students in any one class provided it was balanced at that school by a class with fewer than 18 students; set an average of 22 students for fourth through eighth grade but allow a maximum of 27; and set a high school average of 25 students but allow a maximum of 30. Since it was defeated, school districts must comply with the 2002 mandates on class sizes or face penalties.

Nonbinding Referendum Balancing the Federal Budget: YesLawmakers passed a measure to present a nonbinding referendum question to voters in November, asking if the U.S. Constitution should be amended to require a balanced federal budget. The results are symbolic only, but show lawmakers where Florida voters stand on the issue.

Florida Constitutional Amendments

2010 ELECTIONDAY COVERAGE

This list recaps the amendments that were on the 2010 ballot and if voters voted for or against.

WE PUTPeopleBACK IN THE DRIVER’S SEAT

MarkOne offers more than just another computerized underwriting scorecard. With MarkOne you get real people helping consumers buy cars. It’s our People Buying People® philosophy driving our personal service to our dealers and customers.

We strive to establish trust and build relationships with all our customers and dealers so that they feel good about the programs and services we deliver.

For more information about a regionalized program for your dealership call MarkOne Financial today at 877-862-4240, or visit us at www.mark1financial.com.

At MarkOne Financial, if the deal makes sense, you’re Good To GO!™

MarkOne Financial is a Lucor company. Headquartered in Jacksonville, Florida, we purchase auto contracts from dealerships in Florida, Georgia, South Carolina, North Carolina, Virginia, Tennessee, Indiana, Ohio, and Pennsylvania.

MarkOne Ad FIADA.indd 1 9/30/10 11:56 AM

PAiD

AD

VeRT

isin

G

�� — Independent Dealer — November 2010 www.fiada.comPAID ADVERTISING

PAiD ADVeRTisinG

november 2010 independent dealer magazine

Documents

independent dealer

fiadas quality dealer

fiddler court tallahassee

florida new

year jim kagiliery

fiada lobbyist13 update

leaseretail car dealers

fiddler courttallahassee