Florida has inaugurated a new administration
and FADA is excited about the new energy that has come to Tallahassee. Our new executive branch consists of
Governor Ron DeSantis
,
Lieutenant Governor Jeanette Nunez
,
Attorney General Ashley Moody
,
Chief Financial Officer Jimmy Patronis
and
Commissioner of Agriculture Nikki Fried
. Several FADA members were able to come to Tallahassee to take part in the festivities. In fact, I've included a photo below of Warren Zinn, myself and Alan Wildstein at the Governor's ball the evening of the inauguration.
If you read Chairman Erik Day's letter that was mailed to you recently, you are aware that Governor DeSantis is appointing conservative, pro-business thinkers to run Florida's state agencies.
Attorney General Moody is the most important position relative to our industry in Florida. Additionally, Agriculture Commissioner Fried will oversee your service departments and complaints. And, CFO Patronis will hear your issues related to the F&I side, as his position oversees the Office of Financial Regulation and the Department of Financial Services.
How Can You Help?
We need you to call your local legislators and invite them to your stores before the 2019 Legislative Session begins on March 5. Talk to them about your business. Explain your relationship with OEMs. Tell them how your investments can be challenged when OEMs control your operations. Discuss any other challenges you have in our industry. Your grassroots efforts combined with our role here in Tallahassee is the most successful way to impact our legislative process.
Please let us know if you need any legislator contact information, or how else we can help you. Thanks again for all you do to support YOUR association, FADA.
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Be Certain Your MVRIS License Is Renewed
As of January 4, we were informed that over 400 VF licensed dealers failed to renew their Motor Vehicle Retail Installment Seller license (MVRIS) by the year-end deadline with the Florida Office of Financial Regulation. Any dealer who offers customers the option to finance a motor vehicle sale with a retail installment contract MUST have a MVRIS license.
Please note if you have not logged into the renewal system since May 2018, a password reset may be required in order to access your account.
Click HERE for instructions.
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Feb 19
is our annual DEALER DAY ON THE HILL
and you are invited! We've reserved hotel rooms for you already. All you need to do is RSVP and arrange your transportation.
Be a part of the exciting legislative process. Join a team for legislative visits. This is your chance to go into the heart of government for a few hours. Seeing "how the sausage is made" is one of the most exciting things an FADA member can ever do.
Please consider joining us this year! Click the
RSVP
button now to secure your spot.
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2019 DOR TIP Now Available:
Sales and Use Tax for Out-of-State Residents
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If the purchase is eligible for a partial exemption, the sales tax rate listed on the TIP’s chart for the state of which the purchaser is a resident is the amount of tax a dealer should charge the purchaser (unless that rate exceeds the Florida
6%
tax rate, in which case the rate would be 6). As noted in the TIP, because the sale takes place in Florida, the tax collected is to be remitted to the Florida Department of Revenue (DOR).
To be eligible for the lower tax rate, the purchaser must give the dealer a completed, notarized
Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State
(
Form DR-123
). If the customer fills a DR-123 correctly listing the "Sales Tax Rate" in the TIP, this is this amount that should be collected/remitted to the Florida DOR. The dealer should keep this in their files for 3 years.
- Example #1: For Alabama residents, a Florida dealer would fill out the DR-123 form and indicate/remit 2% sales tax to the Florida DOR, which the customer would get credit for in Alabama.
- Example #2: For California residents, a Florida dealer would fill out the DR-123 form and indicate 6% sales tax. Why? Because, even though California has a 7.25% sales tax, Florida dealers are only allowed to charge 6% to those vehicles sold within the state. And even though you’re charging the state rate, the dealer still must receive a completed DR-123.
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Warning: Dealer Fees Under Scrutiny in Florida
Are you protected? Lots of lawsuits are going on in Florida regarding dealer fees. FADA has cautioned you in the past not to have dealer fees appearing on the
Retail Installment Sales Contract
(RISC). Doing so exposes you to a Chapter 501 lawsuit because you don't have the disclosure of these fees on the RISC. FADA still strongly advises dealers to put these fees on Line 1.
If you need direction or clarity, please contact FADA for assistance by calling (850) 224-1466 or emailing
members@flada.org.
Be on the lookout for more information coming from FADA on this subject.
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Update on Military Leave Act Arbitration Process
The Military Leave Act (MLA) prohibits creditors from requiring service members and their dependents to submit to arbitration or waive their rights under the
Servicemembers Civil Relief Act
, or imposing onerous legal notice requirements in the case of a dispute. The question becomes whether a contract that extends credit, such as a
Retail Installment Sales Contract
, that contains within it an arbitration provision, would be void under the rule. The answer is “yes.”
The Military Leave Act, 10 U.S.C. 987, states than any agreement to arbitrate any dispute involving the extension of credit is unenforceable against any covered member, as well as against any covered member’s dependent. The Final Rule implementing the MLA, 32 CFR Part 232, parroted the statute, stating, “
… no agreement to arbitrate any dispute the extension of consumer credit to a covered borrower pursuant to this part shall be enforceable against any covered borrower, or any person who was a covered borrower when the agreement was made
.”
Under the statute, the mere inclusion would not appear to render the entire contract void. 10 U.S.C. 987(f)(3)’s broad language left doubt as to whether a provision within a contract that ran afoul of the MLA would render the entire contract unenforceable. The final rule, however, removed all doubt:
§ 232.9 Penalties and remedies…
(c)
Contract void
. Any credit agreement, promissory note, or other contract with a covered borrower that fails to comply with 10 U.S.C. 987 as implemented by this part
or which contains one or more provisions prohibited under 10 U.S.C. 987 as implemented by this part is void from the inception of the contract
.”
(emphasis added)
Based on the above, it would appear that the inclusion of an arbitration provision in a contract executed by a covered member as part of an extension of credit would be deemed void from the inception.
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Is your Dealership interested in pursuing private Group Health Insurance?
Have you experienced higher than expected group health insurance renewals or other related instability in your group health insurance program? FADA is in the initial stages of researching the possibility of a Group Health Insurance program as a member benefit and we need your input. If you would consider this as an option for your dealership,
please click here to answer 2 quick questions now.
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FADA Private Label Credit Card Available to Dealer/Members
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FADA's endorsed partner
Credit First National Association
(CFNA) offers in-store financing solutions to meet the needs of dealers and your customers. FADA Dealer/Members have access to a FADA private label credit card program facilitated by CFNA.
CFNA has recently
increased customer credit limits
to up to $4,500 f
or participating dealers.
N
ew customers automatically qualify for up to $4,500 in available credit when they apply for a CFNA private label credit card, and existing cardholders can request a real-time credit limit increase. If your dealership is interested in offering this product, contact FADA and we will be happy to connect you to a representative (
info@flada.org
).
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Out-of-State Titling and Registration Solution
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We know that most dealers find themselves needing to register vehicles sold to those who reside in other states.
Opus VTR
has a 50-state titling and registration solution that supplies dealers with the proper forms to be completed and taxes to be collected with expedited turnaround times.
Opus VTR
has a decade of experience in the vehicle titling and registration business with automobile dealers, fleet management companies, lenders and auto auctions as their primary customers. Its proprietary system offers web-based access, 24-hours a day. If you would like more information,
FADA will be happy to connect you with a representative. Email
info@flada.org
for more information.
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DLRdmv Now FLORIDA's Largest Provider of Titling and Registration
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FADA is so proud to learn that our endorsed partner
DealerDMV
is now the largest provider of titling and registration transactions in Florida. This is a company we know and trust. If you aren't using its services yet, please let FADA know and we will happily connect you directly to a representative. Email
info@flada.org
for more information.
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Florida Automobile Dealers Association | 850.224.1466 | 400 N. Meridian Street Tallahassee, FL 32301 | FLADA.org
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