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FIADA's Independent Dealer Magazine


  • November 2010 Independent Dealer

    November 2010 Information and Insight for Florida Used Car Dealers

    Relive the 2010 Annual Convention highlights on Page 11. 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



    P A I D

    TAllAhASSEE, Fl

    PERMIT NO. 801

    Quality Dealer of the Year Jim Kagiliery and his family.

  • Independent Dealer November 2010






  • November 2010 Independent Dealer

    MAiLinG ADDRess 1840 Fiddler court Tallahassee, FL 32308

    TeLePHOne (850) 385-2712 (800) 237-0448

    FAX (850) 385-3251


    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

    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 00

    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 Presidents 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 FIADAs leadership team.

    11 Fast Cars & Freedom Annual Convention Highlights Photos tell the story of the 00 Annual Convention & Expo.

    16 What is Quality? FIADAs 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 Floridas statewide and legislative elections as well as which

    amendments were passed into law.

    Use this form to make your contribution, or go online to

    cOnTRiBUTORs nAMe:



    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 _______


  • Independent Dealer November 2010

    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. Dont 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.







  • November 2010 Independent Dealer







  • Independent Dealer November 2010

    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 consumers 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 consumers 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 th