Blowin’ & Goin’ with Tax Season
In This Issue: – The New 2014 TIADA VIP Auction Card – Michael W. Dunagan on Vehicle Inventory Tax – Sales: Follow Up & Follow Through – Market Survey of Car Buyers
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2014 TIADA Board of Directors PRESIDENT Michael Thomasson/Mike Carlson Motor Company 264 Exchange St. Burleson, TX 76028 Office: 817.366.9578 Email: mthomasson@mcmcauto.com CHAIRMAN OF THE BOARD Byron L. Riley/Uncle Buddy’s PreOwned Autos, LTD. 409 North Loop West Houston, TX 77008 Office: 713.869.3405 Email: byron@unclebuddyauto.com PRESIDENT ELECT Brent Rhodes/Fiesta Motors 5150 Industrial Way Drive Buda, TX 78610 Office: 512.312.2201 Email: brent@fiestamotors.net SECRETARY HL Hensley/Automax of Lubbock P.O. Box 3040 Lubbock, TX 79452 Office: 806.744.3533 Email: hl@gospac.com TREASURER Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd. Dallas, TX 75229 Office: 214.352.9282 Email: cicoauto@verizon.net VICE PRESIDENT, WEST TEXAS (REGION 1) James Hobson/H-Town Motors 3714 Dyer Street El Paso TX 79930 Office: 915.564.9797 Email: htownmotors@sbcglobal.net VICE PRESIDENT, FORT WORTH (REGION 2) Tommy Gregory/Abilene Used Cars Sales Inc. 497 E.S. 11th Abilene, TX 79602 Office: 325.676.8000 Email: aucsinc@sbcglobal.net VICE PRESIDENT, DALLAS (REGION 3) Kevin Mims/VP Auto Sales 2921 S. Garland Ave. Garland, TX 75041 Office: 972.864.1300 Email: kevinm@vpautosales.com VICE PRESIDENT, HOUSTON (REGION 4) Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net VICE PRESIDENT, CENTRAL TEXAS (REGION 5) Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net
Volume XIII
/
Issue 1
/
J a n u a r y 2 014
texasDealer contents
5 Officers’ Message
by Byron Riley, TIADA Chairman of the Board
7 Market Survey of Car Buyers by Somir K. Paul
14 Follow Up and Follow Through by Jim Mitchell
18 2014 Auto Auction Directory & Resource Guide 19 Local Chapters 20 Regulation Matters: Buyers, Co-Buyers & the 130-U by Danny Langfield
21 Introducing the 2014 VIP Auction Card 22 On The Cover: Blowin’ & Goin’ with Tax Season by Jim Stickford
29 Fines & Violations 37 Upcoming Events 41 Legal Corner: VIT: A Refresher Course by Michael W. Dunagan
45 2014 TIADA Education Offerings 46 Behind the Wheel by Jeff Martin
VICE PRESIDENT, SOUTH TEXAS (REGION 6) Trey Crouch/Trey Crouch’s Wheels On Credit 636 E. Business 83 McAllen TX 78501 Office: 956.972.0700 Email: trey@wheelsoncredit.com VICE PRESIDENT AT LARGE Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net VICE PRESIDENT AT LARGE Sonny Paredez/Discount Auto Center 7203 NW Loop 410 San Antonio, TX 78245 Office: 210.680.5600 Email: sonnyparedez@yahoo.com TIADA EXECUTIVE DIRECTOR Jeff Martin PO Box 127/Round Rock 78680 Office Hours M-F 8:30am - 4:30pm 800.442.5944 • Fax 512.244.6218 jeff.martin@txiada.com
What’s happening at w w w . t x i a d a . c o m ?
You may have noticed a “Countdown Timer” on the homepage, counting down the days until memberships expired on Dec. 31, 2013. So what if your membership has expired? No problem — you can still log in with your username and password and renew for 2014. And if you renew right away you won’t miss a single issue of the Texas Dealer! The Editor of the Texas Dealer magazine is Danny Langfield, Deputy Executive Director of TIADA. To change your address for subscription and/or for other TIADA products, call the TIADA state office at 800.442.5944, 512.244.6060 or fax 512.244.6218. E-mail: info@txiada.com. New Membership/Subscriptions: If you are a member of TIADA, you may receive this magazine free of charge. Membership year runs from Jan 1 to Dec 31. Back issues are available for $20 each subject to availability. Send a check or money order, along with your name and mailing address to TEXAS DEALER, Attn: Back Issues, P.O. Box 127, Round Rock, TX 78680-0127. Sorry, no billing. Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.
officers’ message by Byron
Resolution and Renewal
I
t is that time of year... renewal of goals to lose weight, improve sales, self-improvement, etc, etc., ...and of course ...renewal for TIADA membership! Why renew? Good question — I am glad you asked. You know, I have done some membership recruiting at the auction in my time, and I know that some dealers just join TIADA so they can get the VIP Auction Card. As a board member, I know that this group historically renews at a much lower rate than the rest of our membership. Why would that be? After all, new members who join at the auctions get the exact same benefits as all other members. Then it occurred to me that these firsttimers actually may not really be aware of all the benefits they are entitled to as a TIADA member. So — you first year members… why renew? There are at least 4 great reasons why you should renew your membership.
Regulatory advice and legal questions — free for members!
Did you know you can call the TIADA office with a question on a compliance and/or legal issue and they will get you the answer? And if staff doesn’t have the answer, or if you need legal consultation, TIADA staff will have an experienced industry attorney call you back in reference to your question.
Discounts on education classes and conferences!
Several dealer education classes are offered by TIADA, including Dealer 101: Nobody Told Me That!; Dealership Accounting for BHPH; and Keeping Your Dealership Legal & Compliant (see pg 45 for upcoming dates and locations). These classes are available to members at a great discount and are extremely valuable. The classes can save you thousands of dollars and a lot of your valuable time. When new January 2014
T e x a s
D e a l e r
Riley
Uncle Buddy’s Pre-Owned Autos (Houston) TIADA CHAIRMAN OF THE BOARD
requirements come out from the state of Texas (for example, the recent ID rules) TIADA is the first to incorporate these updates into our seminars for our members. Also, every summer TIADA brings some of the nation’s best speakers, dealers, and vendors together for our members at the TIADA Annual Conference & Expo (see pg. 28). At this event the association also brings various state officials (county tax assessors, state senators and representatives, state agency officials and more) to speak with our member body. No dealer can get this experience on his or her own.
Representation in Austin!
Every legislative session our industry is faced with issues for and against our business. Protecting the industry requires meeting with legislators, state officials, and lobbyists, and of course reading and monitoring hundreds of bills. The association does all this so you don’t have to. But TIADA needs your support to ensure we get the best possible outcome for our members in Austin.
2014 VIP Auction Card
Last, we have the VIP Auction Card. I think some first-timers who join at the auction believe the VIP Card they get is just a one-time thing. Not so! Every year when you renew your membership you will be sent another VIP Auction Card. This alone is worth the membership renewal. This allows every dealer to recoup the cost of the membership by saving on buy and/or sell fees. This is absolutely a no-brainer for renewal. Also, we have three new auctions coming onboard with us this year (see pg 21). That makes 40 auctions on the card, all across Texas — the most we’ve ever had! So do yourself a favor, and support the only association that protects your interests as an independent car dealer in Texas — renew your TIADA membership today. 5
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feature Market Survey of Car Buyers by Somir Paul
President, Woodlands Financial Services, Inc.
T
Woodlands Financial Services payment center or by telephone. For comparison, the 2012 survey sample size was 360 customers. Customers were generally located within a 150 mile radius of Houston. The average contract term was 36 months; the average amount financed was $10,000; the average monthly payment was $400; and the mileage on the vehicles ranged from 80,000 to 200,000.
he following data comes from the Market Survey of Car Buyers conducted annually by Woodlands Financial Services, Inc. This survey of 352 car buyers was conducted from November 1, 2013 to November 27, 2013. The sample was randomly selected from contracts that were purchased from Texas dealerships from January 2009 to October 2013. Customers were interviewed in person at the
WHAT WHAT BROUGHT YOU TO BROUGHT YOU TOTHE THE DEALER? DEALER? 2013 2012 2013 2012 What brought you to the dealer?
TV/Radio
3.1%
3.1% 42.6%
2.6%
7.7%
3.7%
3.3% 9.2%
43.6%
7.7%
26.4%
16.5%
6.5%
%
3.7%
2.5% 2.5% 3.3%
43.6%
9.2% 25.0%
16.4%
26.4% #1 REASON16.4% TO BUY? 25.0% 2013
#1 REASON 2012 TO BUY? 2013 2012 #1 reason to buy? 0.6% 2013
0.6%
9.1%
2.9%
TV/Radio
Magazine
Online Magazine Referral
Online
Repeat Customer Referral Driving By
Repeat Customer Driving By
2012 2.9%
2.9%
2.9%
Selection/Inventory
Selection/Inventory
%
14%
38.3%
38.3%
16.1% 16.1%
18%
18%
Location
24.0%
Customer Service
24.0%
Financing
22.7%
22.7% 2013
January 2014
Location
Customer Service
20%
0%
31.4% 31.4%
Price Price
T e x a s
2012 D e a l e r
Financing Appearance Appearance 7
2013 8.2%
2012
When do you plan to buy your next vehicle? 20.8% 36.4% 2013
2012
8.2%
33.5%
5.3% 27.5%
5.3%
20.8% 36.4% YOU BUY NEW OR 46.4% USED? WOULD 21.9% 27.5% 33.5%
46.4%
21.9%
2013
2012
WOULD YOU BUY NEW OR USED? 2013
2014
2015+
2013 2013 2014 2015+ 14.3% Would you buy new or used? 32.7% 2013
Undecided
2012 14.3%
Undecided
30.5%
2012
14.3% 53%
14.3% 55.2%
32.7%
30.5%
HAT KIND OF VEHICLE? 53% 55.2% WHAT KIND OF VEHICLE?
2013
2013
New
What kind of vehicle? New 1.5% 1.5%
2012
Used
Undecided
2012
Used 1.1%
Undecided
1.1% Truck
9.7%
29.7% 41.1%
41.1%36.0% 36.0%
Truck
31.8% 31.8%
SUV SUV Car Car Van Van
27.7%
27.7% 2013
8
31.1% 31.1% 2012 T e x a s
D e a l e r
January 2014
2013
NEXT VEHICLE?
What amount of monthly payment 1.1% 8.0% 2013 can you make on the next vehicle? 8.0%
19.0% 2013
21.9% 1.1%
2012
1.1% 3.3%2012 27.3%
1.1% 19.8% 3.3%
DO YOU OWN OR RENT YOUR 21.9% 27.3% 19.8% 19.0% 50.0% HOME? 48.5% 2012
50.0%
48.5% 2013 2012 DO YOU OWN OR RENT YOUR HOME? $300 or less
6.3% 2013 $300 or less
$401-$500
$301-$400 $301-$400
$401-$500
Cash In Full
5.3% 2012 Cash In Full
$501+
Do you own or rent45.1% your home? 2013
$501+
44.1%
2012
5.3% DID YOU RESEARCH ONLINE 44.1% 45.1% BEFORE SHOPPING FOR YOUR LAST VEHICLE? 50.6% ONLINE 48.6% DID YOU RESEARCH 6.3%
BEFORE SHOPPING 50.6% FOR YOUR LAST 2013 2012 Own VEHICLE? Rent/Lease Other
48.6%
Own
Rent/Lease
Other
2013online before Did you research shopping for your last vehicle?
34.9%
2013
65.1%
2012
2012
51.6%
34.9%
51.6%
65.1%
Yes 10
48.4% 48.4%
No
Yes
No T e x a s
D e a l e r
January 2014
PURCHASE? 2013 Do you plan to buy from the same dealer2012 as your last purchase? 2013
2012
31.0% 31.0%
26.1%
40.6% 26.1%
40.6%
30.6%
43.3
WHY WOULD YOU CHOOSE NOT TO 43.3% 28.4% BUY FROM THE LAST DEALER YOU WHY WOULD YOU CHOOSE NOT TO Yes No Undecided Yes N Yes VISITED/PURCHASED? No Undecided Yes No Undecided BUY FROM THE LAST DEALER YOU 28.4%
Why would VISITED/PURCHASED? you choose NOT TO buy from the last dealer 2012 2013 you visited/purchased? 2013
2013
8.5%
2.4% 15.2%
8.5%
34.0% 34.0%
44.7% 44.7%
20122.4% 15.2%
2012
12.8% 12.8%
21.6%
5.2%
21.6%
17.7% 17.7%
5.2%
23.8%
23.8%
22.6% 22.6%
Salesperson/Service Manager/Owner Not Enough Selection Car Problems Price Down Payment Requirement High Monthly Store Appearance Salesperson/Service Manager/Owner NotPayment Enough Selection Car
Price
Down Payment Requirement
High Monthly Payment
Important Findings from the Survey
12
Prob Store Appea
Respondents who would not return to a dealer cited two prominent reasons: not enough selection (44.7%) and salesperson/service (34%).
Customers who plan to purchase a car in the next two years are 55% compared to 74% at this time last Dealer Conference 2013 year.
Critical factors that influenced the buying decision in order of importance are: Inventory Selection, Pricing, Customer Service and Financing.
Customers who would go back to the same dealer to buy their next car went up to 41% compared to 31%Conference Dealer last year.
This year’s sample shows that 35% shopped on the internet compared to 48% last year.
The most important reasons for a customer to ‘return back to a dealer’ or to ‘avoid a dealer’ are: inventory, salesperson, shopping experience and price. T e x a s
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January 2014
feature Follow Up & Follow Through by Jim Mitchell
Ohio Independent Automobile Dealers Association
T
he two terms, follow-up and follow through seem to have the same meaning but in the “Road to a Sale” they are as different and as necessary as oil and water is to an engine. Let’s start with follow through. Just like a golf swing it refers to the completion of the act being performed. If you don’t follow through on all that you say during a sale with your customer, you will certainly end up in the rough. For example: during the heat of battle (trying to get a sale) we sometimes make off-the-cuff statements as to what we would do if a sale were consummated and then somehow we forget that we made those promises. We don’t write them down on the retail purchase agreement and the customer, in all the excitement of buying a car, forgets as well. Then after the smoke clears or after the chloroform wears off, the customer remembers what was promised to them and calls the dealership. In most cases this is where customer satisfaction begins to decline. I don’t know about the rest of you but I never count on my memory. I have to write things down so I don’t forget, especially since I passed the sixty-year mark. Let’s face it, sometimes what the customer thought they heard is not what the salesperson said and sometimes we just forget! The best remedy to properly follow-through is to write it down on the retail purchase agreement or utilize a “delivery confirmation form.” This way no one forgets. Neither the salesperson nor the customer is under a different understanding of what was said or promised and both you and your customer are satisfied with the outcome of the sale. Generally speaking, when I ask a salesperson if they have followed up on their customers there are two thoughts that are generated. Unfortunately both thoughts are not shared by the same salesperson. While one salesperson thinks that follow-up means contacting a prospect that was in the store yesterday, the other one thinks that follow-up means contacting their past customers. Well, they are both right but the problem is both salespeople need to understand that both types of follow-up are necessary for success. I have been involved in many survey studies regarding salespeople and the one response that is uniform from all types of customers whether they purchase cars, boats, RV’s or equipment is that “no one calls them back.” The average survey results showed that 91% of the customers surveyed received no follow-up. A dealer will spend thousands or hundreds of thousands of dollars on advertising to increase floor traffic and when the customers come in we don’t call them back after they leave. I have heard many different reasons or excuses why
14
salespeople never call a customer back however, not one of those reasons is valid. The real reason why the vast majority of salespeople don’t call a customer back, when they were just in the dealership, is because they don’t know what to say or they just don’t care. Most salespeople don’t know how to make a good quality follow-up call. They don’t know what to say or how to say it so they avoid the
dreaded follow-up call. The only other reason is that at some point in their sales career they tried to make followup calls and failed so miserably that they didn’t realize any benefit so, as they put it, “why waste my time when I could be taking another up?” The other type of follow-up is when a customer takes delivery of their vehicle. The simple rule of thumb here is 3-30-90 and every six months until they buy again. In an average day most sales people have approximately four hours of non-selling time. In other words they are not actively engaged in face-to-face, email to email, text to text or the old fashioned telephone to telephone selling with a prospective customer. It is during this time that they should take advantage of the opportunity to followup with their past customers. Once again, I asked several salespeople why they don’t follow-up with their past customers and they came up with more excuses than the USA has debt. The real underlying reason that salespeople don’t like to make follow-up calls T e x a s
D e a l e r
January 2014
to their past customers is the fear of confrontation. They are afraid that the customer they call will have something to complain about and they don’t want to deal with problem customers. What they don’t realize is that if the customer has a problem they want to know so they can help them and thus keep those customers so they come back and buy again and hopefully refer others to buy from you as well. I have been blessed to work with some very professional salespeople during my career and the vast majority of these successful men and women have always been the top producers in the dealership due to one undeniable fact. They had the best follow-up skills in the dealership. Year after year they increased their sales by fifteen to twenty percent and every year they took less and less floor time. The reason for this was simple. They had more appointments than a Hollywood psychiatrist. Appointments that they made by following up and selling their past customers and through the referrals they made from these same loyal individuals. There are many different types of computer programs on the market that provide a CRM or follow-up program
16
for the dedicated salesperson. My advice to you is to find a program that will provide you a database for all your customer information and a management system for you to assist your sales people in maintaining their customer base. This system should also provide you with the capability of doing mass mail or email campaigns to your customers based on a variety of search criteria from the geographic location (city-state-zip), type of vehicle, date the vehicle was purchased and even the number of months that the vehicle was financed. If your present computer system doesn’t have the capacity for this type of storage there are web-based programs that will serve all of your needs. Follow-up or follow through; without these two systems you have nothing to lose but prospects, and prospects are nothing more than sales looking for a place to happen. Good luck and good selling! Jim Mitchell, now retired, was the previous Executive Director of the Ohio Independent Automobile Dealers Association. He was named 2011 Executive of the Year by NIADA.
T e x a s
D e a l e r
January 2014
TIADA DeAler AcADemy 2014
Dealer 101: Nobody Told Me That! This class is designed for those dealers new to the business, those considering opening their own dealership, new employees, family members or anyone else needing a refresher on the basics. We’ll cover everything you need to know to run a clean, compliant used car dealership in Texas. Topics include: n n
n
n n n n
8:30am - 5:30pm $149 Per Registrant
n
n
Transferring Titles Inspections, Emissions, Green Slip Garage Liability & Dealer Bond Odometers Title & Registration Fees Acquiring Inventory Temp Tags & Metal Dealer Plates Requirements for Maintaining Dealer License The Buyer’s Guide - As Is
n n n n n n n
n n n n n
SOLD! The Deal Jacket Record Keeping Motor Vehicle Sales Tax Vehicle Inventory Tax Consignment Online Sales Out of State / Out of Country OCCC: the MVSF License Advertising Rules Federal Requirements Forms Review Resources
We will build a deal jacket from scratch... we will role-play an actual of transfer of title at the tax office... we will do a simulation of VIT calculation, with real numbers over multiple years... and much more. TIADA teaches you the business from an experienced, practical point of view.
Presenters will include:
Dorothy Starr, Motor Vehicle Manager, Tarrant County Tax Assessor-Collector Danny Langfield, Deputy Director, TIADA Michael W. Dunagan, attorney, Jameson & Dunagan, TIADA General Counsel
Featu updat ring the N es on EW APP a TITLE Requi nd ID remen ts!
Monday, January 13, 2014 Fort Worth, Texas Radisson Hotel Fossil Creek 2540 Meacham Blvd. | Fort Worth, TX 76106 817.625.9911
Sponsored by:
www.carsplussoftware.com
Register online at w w w . t x i a d a . c o m or by phone at 800.442.5944.
Texas Independent Automobile Dealers Association
www.ituranusa.com
2 014 T I A D A a u t o a u c t i o n ABILENE
CM Company Auctions 2258 S. Treadaway / 79602 325.677.3555 / 866.310.3555 www.cmauctions.com Gregory Chittum, Owner Thursday: 10:00 AM
AUSTIN
America’s Auto Auction Austin / San Antonio 16611 S. IH-35 / Buda / 78610 512.268.6600 www.americasautoauction.com John Swofford, General Manager Tuesday: 1:30 PM
BEAUMONT
Beaumont Dealers Auction, Inc. 12151 Highway 90 / 77713 409.866.5677 www.beaumontdealers.com Laura Miller-Sattler, Owner Tuesday: 7 PM Gulf Coast Auto Auction 4450 South 11th Street / 77701 409.840.6000 www.gulfcoastautoauction.com Roger Rashall, General Manager Rocky Rashall Blake Rashall Thursday: 7 PM
CARROLLTON
Texas Lone Star Auto Auction 2205 Country Club Drive / 75006 214.483.3597 www.TLSAA.com Jeff Dunning, Jr., General Manager Tim Clement, Assistant GM Michelle Elrod, Office Manager Tuesday: 1 PM / Thursday: 2 PM
CORPUS CHRISTI Big Valley Auto Auction 5661 Agnes St / 78405 361.356.2020 www.bigvalleyaa.com Bernard Watson, Owner Billy Kratz, GM Tuesday: 10 AM
18
DALLAS / FT. WORTH METROPLEX ADESA Dallas 3501 N. Lancaster-Hutchins Rd / Hutchins / 75141 972.225.6000 Ken Osborn, GM Wednesday: 3 PM - New Car Trade Thursday: 9:30 AM - Consignment/Fleet/Lease America’s Auto Auction - Dallas 219 N. Loop 12 / Irving / 75061 / 972.445.1044 www.americasautoauction.com Robert Hammonds, GM Ruben Figueroa, Assistant GM. Tuesday: 2 PM / Thursday: 2 PM
EL PASO
El Paso Independent Auto Auction 7930 Artcraft Road / 79932 / 915.587.6700 www.epiaa.com Lori Pidgeon, GM JD Glover, AGM Wednesday: 10 AM - Fleet/Lease & Dealer Consignment Wednesday: 1 PM as scheduled GSA Public Auction
HARLINGEN / MCALLEN Big Valley Auto Auction 4315 N. Hutto Rd. / Donna / 78537 956.461.9000 www.bigvalleyaa.com Bernard Watson, GM Lisa Harms, alternate contact Thursdays: 10 AM
HOUSTON
America’s Auto Auction – North Houston 1440 FM 3083 / Conroe / 77301 / 936.441.2882 www.americasautoauction.com Buddy Cheney, GM Ben Nash, Sales Manager Mondays: 6:30 PM
LUBBOCK
Lone Star Auto Auction 2706 Slaton Hwy / 79404 806.745.6606 (local) / 888.299.6606 (toll-free) www.lsaalubbock.com Jim McNulty, Owner Dale Martin, General Manager Wednesday: 10 AM
T e x a s
D e a l e r
January 2014
directory & resource guide LUFKIN
Lufkin Dealers Auto Auction 2109 N. John Redditt Drive / 75904 936.632.4299 Wayne Cook Thursday: 6 PM
ROCKWALL
Lakeside Auto Auction 1810 East I-30 / 75087 972.771.9919 www.lakesideaa.com Pete Conley, Owner Tuesday: 7:00 PM
TYLER
Greater Tyler Auto Auction 11654 State Highway 64 W / 75704 903.597.2800 Tuesday: 5 PM - Repo Lane Tuesday: 6 PM - Consignment
WACO
Heart of Texas Auto Auction (Waco’s oldest auto auction- Proudly serving dealers for 20 years!) 2508 HWY 6 / 76705 / 254.755.7713 www.heartoftexasautoauction.com Allan Wichkoski, Owner Kenny Reigert, General Manager Shirley McMillan, Office Manager Thursday: 7 PM Alliance Auto Auction 15735 N. IH-35 (exit 346) / 76715 254.829.0123 / 254.829.1298 (fax) www.allianceautoauction.com Darren Darnell, GM darren.darnell@allianceautoauction.com Carmen Klaus, Office Manager Every Friday: 10 AM
OKLAHOMA CITY, OK
Dealers Auto Auction of OKC 1028 S. Portland / Oklahoma City, OK / 73108 405.947.2886 /405.943.8370 (fax) www.daaokc.com Gary Smith, Owner/President/GM John Reininger, Asst. GM Mike Egdahl, F/L Manager Thursdays: 8:30 AM - Consignment Sale INOP Sale held weekly GSA sale held monthly (open to public) Call for info on sale dates and times Every other Tuesday: 10:00 AM - GM Sponsored Factory Sale January 2014
T e x a s
D e a l e r
The TIADA Website:
www.txiada.com Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Legal Consultation Service and much more. Register for all upcoming TIADA events online at the Calendar of Events; access our online membership application; find contact information for all our Local Chapters, and find many additional resources at our Links page. Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov Office of Consumer Credit Commissioner 800.538.1579 www.occc.state.tx.us Texas Comptroller 800.252.1382 www.window.state.tx.us NIADA 800.682.3837 www.niada.com
REPOSSESSIONS
Local Chapters VICTORIA Donny Cowan • Rock Motors 361.573.3325 rockmotorsllc@tisd.net Meeting - 1st Monday (Monthly) FORT WORTH Jerry Smith HJ Smith Automobiles 817.282.0102 hjsmithauto@yahoo.com Meeting - 4th Thursday (Monthly) DALLAS COUNTY Kathrine Tolsch • CICO Auto Sales 214.352.9282 cicoauto@verizon.net Meetings every other month HOUSTON Greg Zak • Dixon Motors 281.931.1300 houstoniada@gmail.com Meeting - 2nd Monday (Monthly) WACO-HEART OF TEXAS Bill Miller • Bill Miller Used Cars Meeting - 2nd Monday (Monthly) For more information contact Eddie Massey, Massey Motors 254.753.6661 SAN ANTONIO Sonny Paredez • Discount Auto Center 210.680.5600 sonnyparedez@yahoo.com Meetings quarterly (dates announced at www.txiada.com)
American Recovery Association 972.755.4755 www.repo.org or contact TIADA state office
EL PASO James Hobson • H -Town Motors 915.564.9797 htownmotors@aol.com Meeting - 3rd Friday (Monthly)
FORMS
AUSTIN Brent Rhodes • Fiesta Motors 512.312.2201 brent@fiestamotors.net Meetings quarterly
Burrell Printing 800.252.9154 www.burrellprinting.com
BEAUMONT Laura Miller Sattler Automotive Group 409.866.2987 lsattler@sattlerautomotive.com Meetings quarterly 19
regulation matters Buyers, Co-Buyers & the 130-U
A
s we roll on into 2014 and another new year, there are a few issues the industry is still sorting out from 2013, particularly with regard to the new ID for title rules. I had a chance to address the attendees at Mike Dunagan’s compliance seminar held last month in Austin (Keeping Your Dealership Legal & Compliant) on the ID topic as well as the new form 130-U Application for Texas Title. Similar to a lot of the calls and emails we’ve been receiving at the TIADA office, the dealers at the seminar had questions about handling a buyer/cobuyer situation with the new 130-U. In a buyer/co-buyer situation, a dealer is only required to obtain the ID of one of the two buyers. If, for whatever reason, the co-buyer’s ID is obtained and the buyer’s is not, the dealer is in compliance with the ID rules. The challenge in the above situation comes when the dealer is entering the buyers’ information into a DMS, which in turn populates the fields of the 130-U. As dealers are discovering, the 130-U is structured so that the individual with the ID must be entered into the “Applicant/Owner 1” area of the 130-U (box 14). The actual ID info of that individual is then entered in box 14a. Finally, the other buyer is entered in box 14b. As a matter of law, a buyer and a co-buyer have identical rights and obligations under the retail installment contract. Similarly, they share the same ownership rights, regardless of the order in which the names are printed on the title certificate. So in those senses, it shouldn’t matter in which order the buyers are entered on the 130-U. In some cases, however, as a practical matter, the buyer is the primary contact and the co-buyer a secondary consideration for the dealer. In order to generate accurate reports from his or her DMS, and correctly identify the primary contact, dealers would prefer to enter the buyer in first position and co-buyer in second position, regardless of ID. Unfortunately the solution is not very elegant: a dealer may list the buyer/co-buyer in either order on his paperwork, but the individual with the ID must be listed first on the 130-U. This may require completing the 130-U by hand or seeking some customization from your DMS provider.
20
by Danny
Langfield
TIADA DEPUTY DIRECTOR
Many counties require specific ID types for renewals being done in person at the county. However, there is no state-level ID requirement for registration renewal. Renewal Registration
Another ID-related question has been frequently raised with regard to renewal registration. Many counties require specific ID types for renewals being done in person at the county. However, there is no state-level ID requirement for registration renewal. A customer having trouble renewing at the county may find relief by renewing his or her registration online or by mail. To renew online, a person must have current liability insurance, a valid credit card and an email address. The registration may not be expired by more than six months and the individual cannot have been cited for expired registration. For more information, visit http://txdmv.gov/motorists/register-your-vehicle. A complete summary of the ID rules, full legal name requirements and the new 130-U can be found in the October 2013 issue of the Texas Dealer magazine. Keep in mind, as a member you can always access the past issues of the magazine online at www.txiada.com (archives not available to non-members). This year we will also be following very closely the implementation of the so called “single-sticker” legislation, which requires the combination of registration and inspection stickers by early 2015. Just another reason to renew your TIADA membership and make sure you stay in the loop. T e x a s
D e a l e r
January 2014
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on the cover by Jim Stickford Freelance Writer
Blowin’ & Goin’ Tax Season with
F
or many used car dealers, the coming of a new year means one thing – tax season is here. But times have changed and that has required dealers and how they handle tax season to change as well. For one thing, when people get their tax refunds has changed. It used to be that people got them around February and March. “The federal government last year stretched out when people got their refunds,” said Michael Zak, operations manager of Dixon Motors in Houston. “If we divide a year into quarters, a dealer used to see, sometimes, 40 to 50 percent of his sales in one quarter thanks to tax season. But now the season has stretched over to two quarters and those sales are going to be spread out.” Zak said that dealers should remember that the people who file their returns early tend to be people who know that they are going to get a lot of money back from the government. Dealers looking to do business with those people should remember that most people have their refunds “spent” within the first 48 hours of getting their returns.
22
Basically, they know what they want to do with the money as soon as they get it. So, Zak said, it’s important to stay in touch with customers. Different dealers use different methods. Some use the internet and have had some success with Facebook. Others send emails or post cards, and some make telephone calls. Zak said they also offer a service that helps customers get their money faster. By using a tax service that can calculate a rough estimate of what a person’s refund will be based on a recent pay stub or W2 form, Zak is able to give them money up front. This money is used for a down payment on a car. And the dealer gets paid back when the refund is sent directly to the dealership. “That means a customer can be driving a car for up to 60 days before the dealer sees any money,” Zak said. He described Dixon Motors as a buy-here, pay-here operation that keeps about 100 vehicles on the lot at any one time. They range from sedans to trucks to SUVs. The makes vary as well. They carry
anything from Buicks to BMWs to Toyotas and VWs. And, Zak said, if a dealer is really going to make an effort to get tax season business, that dealer should be ready to handle the load. “Once we get into February, no one gets a day off,” Zak said. “You don’t want people leaving the lot because they had to wait in line to buy a car.” Kevin Mims, general manager and part owner of VP Auto Sales in Garland, Texas, said they really don’t do anything special for tax season other than have more inventory available. “We’re a buy-here, pay-here operation,” Mims said. “We normally have about 70 cars for sale and sell about 55 a month. Sales do pick up during tax season. I’ve only been here three-and-a-half years, but I’ve spoken to people who have been here longer and they tell me that in the old days, they might sell 50 cars in one month and three or four a month for the rest of the year. Those numbers are exaggerated, but they do show that tax season was a big thing for a long time.” T e x a s
D e a l e r
January 2014
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January 2014
T e x a s
D e a l e r
23
He said that what dealers should remember is that while people who work on the lot understand that there’s a tax season, customers don’t. “Buyers just know that they have some extra money that could go for a down payment on a car,” Mims said. “A lot of people change their business model during tax season. We don’t. The only thing we do is carry more cars.” Lowell David Rogers, owner of 11th Street Motors in Beaumont, Texas, said sales at his lot do increase during tax season. During regular months, he might sell 15 vehicles a month from an inventory of 25 cars. During tax season, that number might go up to 40 sales. So his advice to dealers is take a leaf out of the Boy Scout manual and be prepared. If you’re going to sell 130 percent of your regular inventory in a month, that means you better have more inventory, or people will go elsewhere. That means planning in advance to make sure you have vehicles and have the kinds of vehicles people want to buy. “We’ve had success with Facebook,” Rogers said. “We’ve gotten about 700 people to ‘like’ us on our Facebook page. And we’re holding a promotion where we will give away a PS4 game console to one lucky person who ‘liked’ us on our Facebook page.”
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The Facebook campaign is run in conjunction with television ads that emphasize the dealership’s wide variety of inventory. They also advertise on internet sites such as Cars.com and Carsforsale.com. “The main thing is to get them in the door,” Rogers said. “And during tax season make sure you have the right amount of inventory at the right price.” Rogers agreed with the observation that the season has been stretched out. “Last year, instead of seeing a 30-day season, it was more like 90 days. Now that has its pros and its cons. On the pro side, that gives a dealer more time to qualify a buyer for credit. You have a better chance of seeing if you want to do business with someone because you’re not being slammed with five customers all at one time.” But, Rogers said, on the con side, inventory control becomes trickier. A dealer has to plan for tax-season inventory that will be sold over a much longer period of time. That’s as much an art as it is a science. And finally, Rogers said, even though it’s tax season, a dealer shouldn’t make a sale to make a sale. As a buyhere, pay-here dealer he understands the attraction of moving a lot of iron fast. “I went back and looked at my February sales two years ago and compared them to last year,” Rogers said. “Two years ago, I sold 30 vehicles and ended up repoing about half of them within 15 months. Last year I tightened up my policies and asked myself if the deal was a good fit for me and my customers. Can he afford the car he wants? I don’t want to put someone in a situation he can’t handle. And by sticking to a sound policy, I did better.” It’s been his experience that selling a car by offering a $700 down payment causes more problems than the sale is worth. “I don’t like to do that,” Rogers said. “It’s been my experience that when people only put $700 into a car, they’re more careless about making payments and I end up having to repo the vehicle. But if someone has put in, say, $2,000 as a down payment, they are more invested in keeping the vehicle.” So, Rogers said, if someone has just gotten a tax refund and looking to buy a car, the dealer still has to do his homework. Some people look at refunds as found money and they spend it recklessly, like buying a car they really can’t afford. Dealers who are looking to get that refund still have to look beyond that down payment. Those who don’t end up having to repo a lot of cars, and that’s not a long-term plan for success. Tax season doesn’t mean dealers still don’t have to do their homework, Rogers said. “I used to get upset when a deal went bad,” Rogers said. “Then one day I looked in the mirror and said to myself that I’m the one who decided to do business with all these people. I’m the one who can change the way I do business, and that’s paid off.” T e x a s
D e a l e r
January 2014
January 2014
T e x a s
D e a l e r
25
MOTOR
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316 bpc #24-4
TIADA DeAler AcADemy 2014
Keeping Your Dealership Legal and Compliant a seminar with Michael W. Dunagan, TIADA General Counsel Author of the standard-setting books, “Dealer Financing of Used Car sales” and “Texas Automobile repossession: A Lien Holder’s Legal Guide.” This class is the 2014 version of attorney Michael W. Dunagan’s ongoing quarterly compliance seminar. Featuring updates on both federal and state compliance issues, this session focuses on advanced dealership financing issues. This is the practical side of compliance from the association that understands you have a business to run — and you want to run it right. The seminar will focus on advanced financing concepts, with special emphasis on in-house financing, repossession & bankruptcy issues, OCCC compliance and federal regulations. u u u u u u u u u u
u u
New Customer ID requirements – what is acceptable? New Privacy Notice requirements – do we need a new, custom form? risk-based Pricing – what does the rule require? Credit Card Convenience Fees – what is allowable? New Adverse Action rule – who is affected? Consumer Financial Protection bureau (CFPb) – what can dealers expect? bankruptcy – when do we have to give the vehicle back? repossessions – When does the 60% rule apply? Is repo notice required? Do we have to return custom wheels? Do we have to disclose a GPs unit? OCCC Audits – what are the most common mistakes dealers make? TxDMV enforcement – advertising violations, title management issues & more
PLUS: Texas Legislative session – an update on bills that will affect the industry Q & A – don’t leave until you get all your questions answered by the top industry expert in Texas, Michael W. Dunagan
Monday, February 10, 2014 Houston, Texas
seminar will be held from 9:00am - 3:30pm Crowne Plaza Hotel 12801 Northwest Frwy. | Houston, TX 77040 713.462.9977
sponsored by: Collateral Protection Insurance www.cpiai.com
Discount Pricing for Multiple Attendees! MeMbers – First registrant $149, each additional $99 (Must be from same dealership)
NON-MeMbers – $299
www.autozoom.com
register online at w w w . t x i a d a . c o m or by phone at 800.442.5944. Texas Independent Automobile Dealers Association
www.passtimeusa.com
– Save the date! –
july 27–30, 2014
tiada Annual e c n e r e f Con & expo
s e n i P t s o L
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tiada education
Hyatt Regency lost Pines Resort & Spa | 575 Hyatt lost Pines Road | lost Pines, Texas 78612
fines& violations 12-0095 ENF Zein Alabdin Aldiwan DBA WZ Auto Sales Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 12-0100 ENF Jay Ronald Morrison II DBA Jay 2 Auto Sales Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00 and attend a Dealer Training Seminar. 12-0163 ENF Jeffrey Jennings DBA Precision Tech LTD Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to have business hours posted at the dealer’s location: Transp Code 503.032 and 503.038(a) (14); 43 TAC 215.140(1)(B). $500.00.
FINAL ORDERS for December, 2013. Agreed orders represent a settlement of the case between the department and the licensee. In most cases there has been a finding that a law has been violated by the licensee.
12-0262 ENF Ismail A. Baker DBA Baker’s Auto Sales Failure to comply with a Final Order: Occ Code 2301.651(a)(3). $250.00. 12-0263 ENF Fusion Autoplex LLC DBA Fusion Autoplex Failure to comply with a Final Order: Occ Code 2301.651(a)(3). $500.00 and attend a Dealer Training Seminar. 12-0351 ENF Malibu Motors, Inc. DBA American Car Exchange Failure to comply with a Final Order: Occ Code 2301.651(a)(3). $500.00 and attend a Dealer Training Seminar. 12-0353 ENF Texan RV LTD DBA Texan RV LTD Failure to comply with a Final Order: Occ Code 2301.651(a)(3). $500.00 and attend a Dealer Training Seminar. 12-0367 ENF McCall-Tll, Inc. DBA Fort Bend Scion, Fort Bend Toyota Represented a lowest price claim: 43 TAC 215.266(a). $2,000.00.
12-0528 ENF Maximo Martinez DBA Maxma Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Failure to remain actively engaged in business as a motor vehicle dealer by failing to sell at least five (5) vehicles in a 12 month period: Transp Code 503.038(a)(9) and Tax Code 23.121. $500.00 and attend a Dealer Training Seminar. 12-0535 ENF Judson Motors LTD DBA Universal Toyota Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00. 12-0567 ENF Leslie Lucas DBA Lucas Mopars Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00. 12-0704 ENF Stacey Thigpen DBA Lonestar Motorworks Failure to timely file Motor Vehicle Inventory Declaration reporting sales: Transp Code 503.038(a)(10) and Tax Code 23.121 (2 counts). $500.00.
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January 2014
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fines& violations 12-1262 ENF Drivetime Car Sales Company, LLC DBA Drive Time Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration:
Transp Code 501.0234(d),(e). $1,500.00 and attend a Dealer Training Seminar. 12-1340 ENF Motoreum LLC DBA Motoreum LLC Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $2,000.00 and attend a Dealer Training Seminar. 12-1379 ENF Grimes Truck & Auto Parts LLC Failure to timely file Motor Vehicle Inventory Declaration reporting sales: Transp Code 503.038(a)(10) and Tax Code 23.121. $250.00.
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12-1449 ENF Rockwall Automotive-DCD, LTD DBA Rockwall Chrysler Jeep Dodge Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Cease and desist. 13-0135 ENF Kimberly V. Davis, DBA Nice Guy’s Auto Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a) (12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-0242 ENF Auto M-J-K Sales, LLC DBA Auto M-J-K Sales, LLC Failure to maintain a proper bond: Transp Code 503.033. $500.00 and attend a Dealer Training Seminar. 13-0278 ENF Stallion Auto Sales, Inc. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a) (12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00 and attend a Dealer Training Seminar. 13-0304 ENF Dmitriy Olshevskiy, DBA Odida Auto Failure to answer the telephone, have it answered by a bona fide employee or to have an answering machine or service in operation during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1)(B). Failure to produce records within fifteen (15) days: 43 TAC 215.144(d) and 215.141(a)(3). $500.00 and attend a Dealer Training Seminar. 13-0314 ENF Celia Cruz, DBA CLK Enterprises Failure to timely file Motor Vehicle Inventory Declaration reporting sales: Transp Code 503.038(a)(10) and Tax Code 23.121. $250.00. 13-0365 ENF Stallion Auto Sales, Inc. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $500.00. T e x a s
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13-0455 ENF Orr Motors of Corinth, Inc. DBA Orr Nissan, Orr Nissan of Corinth Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00.
13-0834 ENF Huelon A. Harrison DBA KRR Auto Dealers Failure to remain actively engaged in business as a motor vehicle dealer by failing to sell at least five (5) vehicles in a 12 month period: Transp Code 503.038(a)(9) and Tax Code 23.121. $500.00.
13-0471 ENF Juan Gonzalez DBA J & G Auto Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to make dealership records available for inspection: 43 TAC 215.144(a) and 43 TAC 215.141(a)(3). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $2,000.00 and attend a Dealer Training Seminar.
13-0863 ENF IMP Enterprises, Inc. DBA International Motor Productions Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Failure to take assignment of title: Transp Code 503.038(a) (3). Falsified or forged tax or title document: Transp Code 503.038(a)(1). $1,000.00 and attend a Dealer Training Seminar.
13-0489 ENF Red McCombs Hyundai LTD DBA Red McCombs Drive Away Motors, Red McCombs Superior Hyundai Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 13-0511 ENF Auto Facil, Inc., DBA Auto Facil Inc. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 13-0642 ENF United Fidelity Enterprises Corporation DBA Fidelity Ventures Failure to timely file Motor Vehicle Inventory Declaration reporting sales: Transp Code 503.038(a)(10) and Tax Code 23.121. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $250.00. 13-0681 ENF Drivetime Car Sales Company, LLC DBA DriveTime Acted as, or offered to act as, or claimed to be a broker of used motor vehicles: Occ Code 2301.006. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,500.00. 13-0799 ENF Moxie Scooters LLC Failure to timely file Motor Vehicle Inventory Declaration reporting sales: Transp Code 503.038(a)(10) and Tax Code 23.121. Failure to timely file monthly Motor Vehicle Inventory Tax statements: Transp Code 503.038(a)(10) and Tax Code 23.122. $500.00. January 2014
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Transp Code 503.038(a)(10) and Tax Code 23.122. $500.00 and attend a Dealer Training Seminar. 13-0956 ENF Robert Cast Motor Company, LLC Failure to fulfill written agreement with retail purchaser: Occ Code 2301.651(a) (7). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. License is revoked, oppose new or renewal application and $3,000.00. 13-0973 ENF Robert Gruner, Jr. DBA R and B Finance Company Failure to timely file Motor Vehicle Inventory Declaration reporting sales: Transp Code 503.038(a)(10) and Tax Code 23.121. $500.00.
13-0884 ENF GPVN Motors Limited Partnership DBA GPVN Motors Limited Partnership Failure to timely file monthly Motor Vehicle Inventory Tax statements: Transp Code 503.038(a)(10) and Tax Code 23.122. $500.00.
13-0974 ENF Greg A. Meuth DBA Greg Meuth Auto Sales Failure to fulfill written agreement with retail purchaser: Occ Code 2301.651(a)(7). $1,500.00 and attend a Dealer Training Seminar.
13-0905 ENF Ernest Pickens DBA Pickens Auto Parts Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $1,000.00 and attend a Dealer Training Seminar.
13-0978 ENF Excess Auto Plex LLC DBA Excess Auto Plex Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00.
13-0913 ENF Steven Gilmore DBA Central Texas Motors Failure to produce records within fifteen (15) days: 43 TAC 215.144(d) and 215.141(a)(3). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $250.00 and attend a Dealer Training Seminar. 13-0925 ENF Megahertz Motors LLC Failure to timely file Motor Vehicle Inventory Declaration reporting sales: Transp Code 503.038(a)(10) and Tax Code 23.121. Failure to timely file monthly Motor Vehicle Inventory Tax statements:
13-0982 ENF Cody Johnson DBA Big City Auto Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 13-0990 ENF Direct Auction, Inc. Misrepresentation in an application or other document filed with the agency: Transp Code 503.038(a)(6) and 43 TAC 215.141(a) (19). $500.00. 13-0991 ENF Tomas Rodriguez Cano, Maria Manuela Cano, Juan Gonzalez Mata DBA Tommy’s Auto Sales Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. 31
fines& violations Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). $1,000.00 and attend a Dealer Training Seminar. 13-1004 ENF English Motors, Inc. Failure to observe right of way: 43 TAC 215.140(11)(c). $1,500.00. 13-1014 ENF Lincoln Samaroo DBA Endeavor Auto Sales Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Failure to have business hours posted at the dealer’s location: Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). $500.00. 13-1017 ENF Alvin Cars LLC Failure to have dealer or a bona fide employee present during posted business hours: Transp Code 503.032, 503.038(a) (14) and 43 TAC 215.140(1)(B). Failure to answer the telephone, have it answered
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by a bona fide employee or to have an answering machine or service in operation during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1)(B). $500.00. 13-1018 ENF Clifford Cater DBA Diamond Motors of Angleton Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to have dealer or a bona fide employee present during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1)(B). Attend a Dealer Training Seminar. 13-1023 ENF J & S, LLC DBA H&H Autos Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $250.00 and attend a Dealer Training Seminar. 13-1024 ENF Motornet USA, Inc. DBA Motornet USA, Inc. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a) (12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to
timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-1028 ENF First Tawakkal, Inc. DBA Auto Expo Houston Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. $500.00. 13-1031 ENF Khoury Investment Group, Inc. DBA Loan Star Motors Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-1036 ENF ACE & EGO Auto Brokers, LLC DBA ACE & EGO Auto Brokers, LLC Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code
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2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-1037 ENF South Point Imports, Inc. DBA South Point Kia Advertised a savings off MSRP which includes a manufacturer’s customer rebate without disclosing the amount of the rebate as well as the amount of the dealer’s discount: 43 TAC 215.262(a)(2). Advertised the period of repayment in connection with 0% APR financing without including the amount or percentage of down payment and the terms of repayment: 43 TAC 215.263. Represented a “best price” claim: 43 TAC 215.266(a). $2,000.00. 13-1038 ENF Ralonda Harris DBA Harbert’s Auto Sales Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 13-1039 ENF Paso Del Norte Motors LP DBA Viva Kia Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00. 13-1049 ENF Prime Imports of SA, Inc. DBA Prime Imports Auto Boutique Failure to maintain a proper bond: Transp Code 503.033. Cease and desist. 13-1050 ENF Torresday Motors Corp. DBA Torresdey Motors Corp Sold or offered to sell motor vehicles on consecutive Saturday and Sunday: Transp Code 728.002. $500.00. 13-1053 ENF Jorge A. Munoz DBA Liberty Auto Sold or offered to sell motor vehicles on consecutive Saturday and Sunday: Transp Code 728.002. $500.00. 13-1055 ENF Griselda Bayona DBA Chaparral Motors Sold or offered to sell motor vehicles on consecutive Saturday and Sunday: Transp Code 728.002. $500.00. January 2014
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13-1081 ENF CCLEL Investments, LP DBA Volkswagen of Corpus Christi Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $1,000.00 and attend a Dealer Training Seminar.
13-1114 ENF Marco Garces DBA Blue Ball Failed to keep accurate records by a salvage dealer: Occ Code 2302, 43 TAC 217.80(a), constituting grounds for sanctions under Occ Code 2302.108 and 2302.354 and 43 TAC 217.81(b)(2) and 217.81(c). Sold a motor vehicle to be registered and titled, owned by Respondent, without first transferring title to this vehicle to Respondent as owner: Transp Code 501.022(c), Occ Code 2302.354(a) and 43 TAC 217.81(b)(16). $1,000.00.
13-1084 ENF Homer Olveda DBA H & S Auto Sales Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00 and attend a Dealer Training Seminar.
13-1116 ENF Consignment Dealers, Inc. DBA ConsignmentDealers.com Failed to take assignment of evidence of ownership for all vehicles acquired by dealer: Transp Code 501.152. $500.00.
13-1088 ENF Mario Guerra, Jr. DBA M G Auto Sales Misuse of Internet-Down buyer temporary tag: Transp Code 503.0631 and 43 TAC 215.151, 215.153, 215.155 and 215.158. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00 and attend a Dealer Training Seminar. 13-1089 ENF Muhsin Kenon DBA JK Auto Sales Filed a false title and tax document: Transp Code 503.038(a)(2) (2 counts). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,500.00 and attend a Dealer Training Seminar. 13-1090 ENF Nathan Elkins DBA Elkins Auto Sales Failure to pay motor vehicle inventory tax: Tax Code 23.122 and TAC 215.141(a)(23). Sold or offered to sell motor vehicles without the appropriate license for that type of motor vehicle: Transp Code 503.038(a) (14). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. $2,100.00 and attend a Dealer Training Seminar. 13-1113 ENF Mark Owens DBA Mark’s Auto Sales Failure to timely file Motor Vehicle Inventory Declaration reporting sales: Transp Code 503.038(a)(10) and Tax Code 23.121. $250.00.
13-1140 ENF Rhima Investments, Inc. DBA E-Carone, Texas Auto Group, Voffer Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Attend a Dealer Training Seminar. 13-1142 ENF TNT Smith Enterprises, Inc. DBA Drive Right Auto Sales Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00. 13-1146 ENF Stephany Price, DBA 1 2 3 Auto Sales Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-1147 ENF Sierra Motors, Inc., DBA Sierra Motors Misuse of Internet-Down buyer temporary tag: Transp Code 503.0631 and 43 TAC 215.151, 215.153, 215.155 and 215.158. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-1150 ENF Marisa Segovia, DBA Fama Auto Sales Failure to make dealership records available for inspection: 43 TAC 215.144(a) and 43 TAC 215.141(a)(3). Filed a false title and tax document: Transp Code 503.038(a) (2). Failure to timely transfer title and pay 33
fines& violations sales tax: Transp Code 501.0234. $750.00 and attend a Dealer Training Seminar. 13-1151 ENF Gross Auto Sales, LLC DBA Southside Auto Mart Misuse of temporary dealer tag(s): Transp Code 503.038(a)(12):43 TAC 215.141(a) (10). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. $1,000.00 and attend a Dealer Training Seminar. 13-1157 ENF Aurelio Morales, Sr./Aurelio Morales, Jr. DBA Mando’s Auto Sales Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-1158 ENF Ernesto Martinez, DBA Auto-Mex Delivered title directly to retail buyer: Transp Code 501.0234, 503.038(a)(14), Tax Code 152.0411 and 43 TAC 215.141(a) (23). $500.00.
13-1159 ENF Farris Auto Salvage, Inc. DBA Farris Auto Salvage, Inc. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a) (12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to take assignment of title or MCO: Transp Code 503.038(a)(3) and 43 TAC 215.141(a)(13). Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $750.00 and attend a Dealer Training Seminar. 13-1175 ENF Snowden RV, Inc. DBA Spring Branch RV Center Failure to timely pay lien on a motor vehicle traded in: Finance Code 348.408(c), Occ Code 2301.651(a)(4). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $1,000.00 and attend a Dealer Training Seminar. 13-1176 ENF San Antonio Auto Acquisitions, Inc. DBA San Antonio Auto Acquisitions, Inc.
Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,500.00. 13-1182 ENF Heath Michael Mower DBA Lyon Auto Sales Failure to have business hours posted at the dealer’s location: Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). Failure to have dealer or a bona fide employee present during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1)(B). Attend a Dealer Training Seminar. 13-1183 ENF Trueno Motors, Inc. DBA Thunderbird Motors Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a) (12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $2,000.00.
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• Garage Liability • Dealers Open Lot • Wreckers & Haulers
• Dealer Bonds • Garagekeepers • Workers Compensation
(800) 727-7124 Contact Mike Pool or John Mahaffey for a competitive quote. m.pool@teiinsurance.com • j.mahaffey@teiinsurance.com P.O . Box 850746 • Mesquite, TX 75185 • (972) 288-3266 • Fax (972) 288-2608 www.teiinsurance.com
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13-1185 ENF Kenneth Maroney DBA Downtown Motors Failure to have dealer or a bona fide employee present during posted business hours: Transp Code 503.032, 503.038(a) (14) and 43 TAC 215.140(1)(B). Failure to display license: 43 TAC 215.140(14). Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $1,000.00 and attend a Dealer Training Seminar. 13-1198 ENF Panther Motors, Inc. DBA Panther Motors, Inc. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00. 13-1199 ENF Lourdes R. Corbeil DBA Corbeil’s Used Cars Sold or offered to sell new motor vehicles without the appropriate license: Occ Code 2301.251 and 2301.252 and 43 TAC 215.141(a)(21). $500.00. 13-1200 ENF Auto Deals LLC DBA Auto Deals LLC Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $1,500.00 and attend a Dealer Training Seminar. 13-1207 ENF Samuel B. Oviawe DBA General and Import Motors Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to have dealer or a bona fide employee present during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1) (B). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $500.00 and attend a Dealer Training Seminar. January 2014
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13-1208 ENF Autos EC Incorporated DBA Autosfelix.com Advertised the amount of down payment in connection with a credit transaction without including the terms of repayment: 43 TAC 215.263. $2,000.00. 13-1215 ENF El Gran Chaparral Auto Transportes, LLC DBA El Gran Chaparral Auto Sales Failed to follow requirements to sale, transfer or release salvage or motor vehicle salvage dealer: Occ. Code 2302.108 and 2302.354 and 43 TAC 217.79(d), 17.81(b)(7). and 217.81(c). $500.00. 13-1216 ENF Jesus Garza Espino DBA Espino Brothers Auto Sales Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00 and attend a Dealer Training Seminar. 13-1217 ENF Oscar Guerra Lopez DBA G & L Auto Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00 and attend a Dealer Training Seminar. 13-1218 ENF Vega’s Autos, Inc. Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-1223 ENF ICOM, Inc. DBA ICOM, Inc. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Delivered title directly to retail buyer: Transp Code 501.0234, 503.038(a) (14), Tax Code 152.0411 and 43 TAC 215.141(a)(23). $500.00 and attend a Dealer Training Seminar.
13-1225 ENF Georgetown Mac Haik Dodge Chrysler Jeep LTD, DBA Mac Haik Dodge Chrysler Jeep Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00 and attend a Dealer Training Seminar. 13-1232 ENF Greenville Automotive Superstore LLC DBA Greenville Chrysler Made a material misrepresentation to the agency in connection with a self- authorization form for vehicle exhibitions and non-selling events where sales by all participants are prohibited, filed with the agency: Transp Code 503.(a)(6) and 43 TAC 215.141(a)(19). $500.00 and attend a Dealer Training Seminar. 13-1234 ENF Sabino Pacheco Lovaton DBA Pacheco Auto Sales Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. Failure to take assignment of title or MCO: Transp Code 503.038(a)(3) and 43 TAC 215.141(a)(13). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $750.00 and attend a Dealer Training Seminar. 13-1235 ENF Mega Motors, Inc. DBA Mega Motors, Inc. Misuse of a temporary tag on a vehicle without a valid certificate of inspection: 37 TAC 3.76(b), Occ Code 2301.651(a)(4), Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11). $500.00. 13-1236 ENF SA Preowned Autos, LLC DBA SA Preowned Autos LLC Failure to have dealer or a bona fide employee present during posted business hours: Transp Code 503.032, 503.038(a) (14) and 43 TAC 215.140(1)(B). Failure to answer the telephone, have it answered by a bona fide employee or to have an answering machine or service in operation during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1)(B). $500.00 and attend a Dealer Training Seminar. 13-1238 ENF Joaquin Romo DBA Piquin’s Auto Sales Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $750.00 and attend a Dealer Training Seminar. 35
Special Thanks to our 2013 INDEPAC Contributors Robert Blankenship Mike Carlson Roy Carlson Herb Cowan Brad Davis Randy Hilliard Blake Ingram Kenny Allison Jeff Atchison Paul Barnes Floyd Browning, Jr. Joe Chick Jerry Baker Mark Bearden Jody Bettis James Campbell James Ashby Carolyn Brown Victor Caldwell Butch Cornelius Eugene Dietert Larry Dzuik Yitshak Eini Eddie Grantham
$1000+
$500–$999
$250–$499
$0–$249
Greg Reine Brent Rhodes Shane Rhodes Gary Sayre Paul Scott Michael Thomasson
George Dodd Keith Hagler Jeff Martin Wayne Meagher
Henry Joe Drapela Jeffery Johnson John M. Minter
Randy Hall Carleton Heller Marlin Jentsch Loy E. Moore Alton Poole Byron Riley John Tinsley
Make your contribution today and support your association! INDEPAC contributions may be sent to INDEPAC c/o TIADA PO Box 127 Round Rock, TX 78680 (Personal contributions only – corporate funds cannot be accepted)
13-1240 ENF Eldorado Motors LLC DBA Texas Eldorado Motors, LLC Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-1243 ENF Autos Omega, LLC DBA Autos Omega, LLC Misuse of Internet-Down buyer temporary tag: Transp Code 503.0631 and 43 TAC 215.151, 215.153, 215.155 and 215.158. $500.00. 13-1248 ENF All Star Isuzu LTD DBA All Star Mitsubishi Failure to timely pay lien on a motor vehicle traded in: Finance Code 348.408(c), Occ Code 2301.651(a)(4). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,500.00 and attend a Dealer Training Seminar. 13-1254 ENF Johnny Watkins DBA J’s Auto Sales Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $500.00 and attend a Dealer Training Seminar. 13-1255 ENF Hugo Garza DBA Garza Auto and Trucks Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failed to take assignment of evidence of ownership for all vehicles acquired by dealer: Transp Code 501.152. $1,000.00 and attend a Dealer Training Seminar. 13-1256 ENF Francisco Morales DBA Pueblo Nuevo Auto Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Delivered title directly to retail buyer: Transp Code 501.0234, 503.038(a)(14), Tax Code 152.0411 and 43 TAC 215.141(a)(23). $500.00 and attend a Dealer Training Seminar. January 2014 T e x a s
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Upcoming Events TIADA DEALER ACADEMY
January 2014 13 Dealer 101: Nobody Told Me That!
May 2014 12 Dealer 101: Nobody Told Me That!
February 2014 10 Keeping Your Dealership
June 2014 9 Keeping Your Dealership
March 2014 24 Dealer 101: Nobody Told Me That!
OTHER TIADA EVENTS
Radisson Hotel Fossil Creek 2540 Meacham Blvd. Fort Worth, TX 76106 817.625.9911 Online registration available at www.txiada.com
Legal & Compliant Crowne Plaza Hotel 12801 Northwest Frwy. Houston, TX 77040 713.462.9977 Online registration available at www.txiada.com
Hilton San Antonio Airport 611 N.W. Loop 410 San Antonio, TX 78216 210.340.6060 Online registration available at www.txiada.com
April 2014 28 Keeping Your Dealership
Legal & Compliant Radisson Hotel Fossil Creek 2540 Meacham Blvd. Fort Worth, TX 76106 817.625.9911 Online registration available at www.txiada.com
Crowne Plaza Hotel 12801 Northwest Frwy. Houston, TX 77040 713.462.9977 Online registration available at www.txiada.com
Legal & Compliant Hilton San Antonio Airport 611 N.W. Loop 410 San Antonio, TX 78216 210.340.6060 Online registration available at www.txiada.com
January 2014 27 TIADA Board of Directors Meeting Austin, TX
April 2014 21 TIADA Board of Directors Meeting Austin, TX
July 2014 27–30 TIADA Annual
Conference & Expo Hyatt Regency Lost Pines Resort & Spa 575 Hyatt Lost Pines Road Lost Pines, Texas 78612
37
TIADA Membership Application
2014
Business Name: ____________________________________________ Select one:
Dealer Member
Associate Member
Contact Person: ____________________________________________ Address: __________________________________________________ City: _________________________________________
2014 TIADA Membership Dues:
State: _______
Zip: __________________ County: _____________________________
$425 (Dues include NIADA membership)
E-mail address: _____________________________________________ Phone: _______________________ Fax: ________________________ Dealer P Number: ___________________________________________ Who referred you to TIADA? __________________________________ Mailing Address (if different from above): __________________________________________________________ City: _________________________ State: _______ Zip: ___________
PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Expiration Date: ____________ Monthly Payments - $100 initial payment & $29.50 per month Via Credit Card (Please enter card information above. Authorization Agreement required - contact state office) Via Bank Draft (Authorization Agreement & voided check required - contact state office)
Mail or Fax Application To: TIADA Membership Services, P.O. Box 127 FAX 512.244.6218
www.txiada.com
512.244.6060
Round Rock, TX 78680-0127 800.442.5944
Dues are not deductible as charitable contributions for income tax purposes but may be deductible as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20 percent of your dues dollars is used for lobbying activities and is therefore not deductible.
January 2014
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legal corner
VIT: A Refresher Course by Michael
F
ew dealer-compliance issues in Texas raise more questions than how to handle collecting and paying vehicle inventory tax (commonly referred to as VIT). Since VIT was instituted almost 20 years ago, this tax has raised more than its share of problems. Also, we see new-entry dealers who overlook altogether the filing requirements of VIT. A little background is helpful in understanding the “why” as well as the “how.” Actually, VIT is not a separate tax. VIT is rather a method of placing a value on a dealer’s inventory for the purpose of calculating the amount owed on a tax that has been around for a very long time — the ad valorem or property tax. VIT also provides a separate method for payment by a dealer of the ad valorem tax that is attributable to the dealer’s inventory. Local governments have always been dependent on taxing their citizens and businesses to pay for the public services they offer, such as fire and police protection, schools, hospitals and road maintenance. One source of revenue for local government entities is the sales tax charged by merchants on certain goods and services, which is then remitted to the state and redistributed to local taxing authorities. Motor vehicle sales tax is different in that it goes only to the state and county, and that the rate that is set by state law is uniform throughout the state. Another mainstay of local government revenue is the ad valorem tax. As the name implies, it is based on the value of property owned
January 2014
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by taxpayers. Real estate is a good example of the kind of property taxed under the ad valorem system. Businesses also pay ad valorem tax on the value of their non real estate hard assets: equipment, fixtures, furniture and inventory. Typically, a business is responsible for reporting to the county appraisal district the value of its assets each year. For most wholesale and retail businesses, inventory is a rather difficult asset to value. After all, inventory is constantly changing. New items come in, old items go out. And if, for whatever reason, a business decided to keep inventory low at a given times during the year, and high at others, it becomes even more difficult to place an accurate value on the inventory. For example, a retail merchant who usually keeps 200 units in inventory might decide to have only 50 units on January 1. It the merchant happens to be a car dealer, he might be inclined to move some of his inventory units out of the county at the end of the year, or he might just slow down on ordering new units and sell his inventory down (remember the old year-end sales pitch of some dealers? “Our prices are so low because we’d rather lower our prices than
W. Dunagan
TIADA GENERAL COUNSEL
By February 1 of each year, dealers are required to file a “Dealer’s Motor Vehicle Inventory Declaration” with the county’s chief appraiser and file a copy with the county tax collector. pay the tax man.”) If the appraiser knows that the dealer usually keeps more units, the appraiser may try to raise the value of the inventory to more than just the value of the units on hand on January 1. A dealer’s ability to manipulate the timing of inventory on hand, and the creativity of appraisers in defeating such manipulation had, before VIT was established, created a huge catand-mouse game between dealers and appraisers. Valuation protests and litigation over the valuation of a dealer’s inventory had become commonplace. 41
It was just this problem that the VIT was created to cure. By tying the taxable value of inventory to prior sales, rather than physical units on hand, lawmakers sought to make the inventory valuation process on motor vehicles easier to enforce. From the perspective of some car dealers, VIT offered an additional sweetener: the prospect of being able to attribute the amount of VIT owed to each vehicle sold and the ability to thus pass that amount on to buyers as a contract expense item. Under the VIT scheme of things, dealers who make retail sales are required to comply with the state’s special motor vehicle inventory appraisal procedures. By February 1 of each year, dealers are required to file a “Dealer’s Motor Vehicle Inventory Declaration” with the county’s chief appraiser and file a copy with the county tax collector. The declaration form is issued by the state comptroller and should be available from the comptroller’s property tax division or the county appraiser’s office. Additionally, dealers must file monthly reports with the county tax collector by the tenth of each month listing all sales for the prior month. Property taxes based on amount of retail sales prices must be paid with the statement. These reports must be filed even if no sales occurred in the
42
Dealer’s
Motor Vehicle Inventory
Declaration February 1, 2014 John Dealer
month. A special account is kept for each dealer by the tax collector. If, at the end of the year, when each taxing unit has established its tax rate, the dealer’s account is short of the necessary funds, a year-end statement will be sent. However, if the dealer’s account has a surplus, the surplus is kept and shared by the taxing authorities. A fairly complicated formula is used to calculate the amount of inventory tax that is owed. First, the aggregate county tax rate (the total of tax rates from all taxing authorities within which the dealer’s lot is located) is calculated. By dividing this number by 12, the unit property tax value factor is determined (this will be a percentage). This factor is then multiplied by the sales price of each vehicle to determine the tax attributable to each vehicle sold. It is the total of the tax attributable to all retail sales for the reporting month that must be paid by the tenth day of the next month. While wholesale sales, fleet sales with a fleet permit, sales of trucks over 16,000 pounds, and repeat sales of the same vehicle in a calendar year are exempt from this tax, they must be listed on the monthly report. Fortunately, most dealer software packages include VIT calculation procedures and will actually print out the reports that need to be filed. A dealer with such a system has only to remember to print it out, write a check, and put a stamp on an envelope. Dealers who sell exclusively to other dealers do not have to make these reports. Their inventories will typically be valued as all other personal tangible property is T e x a s
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valued for ad valorem tax purposes (although some appraisal districts have attempted to use the VIT formula for valuing the inventories of high volume wholesale dealers). But occasional retail sales by wholesale dealers may trigger the reporting requirements.
and actionable. Addition of the tax on the contract is a negotiable item and a dealer can refuse to sell to a buyer who refuses to have it included. Conversely, a buyer can refuse to sign a contract that has it in.
Pass Through of Tax
A vehicle that has been repossessed or returned and is resold within the same calendar year as the first sale is exempt from the tax. Thus, the tax should not be charged to the buyer and should not be paid with the monthly report. A subsequent sale of the same vehicle that occurs in the next calendar year will be subject to the tax. The failure to comply with the dealer inventory tax law could subject a dealer to substantial fines for each day’s violation. Additionally, the Motor Vehicle Division has refused to renew dealer licenses for retail dealers who are not listed in a county’s dealer inventory tax list.
While VIT is actually one component of the dealer’s ad valorem tax, state law allows dealers to pass on to retail buyers the unit tax attributable to that sale. The charge on a retail contract for the tax should be disclosed as “dealer inventory tax” and not misrepresented as a charge required by law or as the “buyer’s inventory tax.” While the VIT charge can be passed on to buyers, the law does not require that a dealer do so. In fact, the law is neutral on the issue, and an attempt to convince a buyer that the tax is a mandatory charge required by law to be added to the contract is incorrect
Subsequent Sales Exemption
Dealers who are required to file dealer inventory tax reports but who have failed to do so can expect to have their dealer licenses suspended or revoked. Information about dealer inventory tax can be obtained from the State Comptroller’s property tax division. Copies of the declaration form can be obtained from the county tax collector or the county appraisal district. The Comptroller also offers a helpful booklet on this topic available at http://www. window.state.tx.us/taxinfo/proptax/ specinvmvd/96-545.pdf . Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 35 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.
Garage Liability is our specialty. Kevin Smith Insurance Agency is one of the largest writers of Garage Liability in the state. We work with several a+ rated companies which offer exceptional rates to car dealers and repair shops. Call today for a “quick”
10-minute quote!
8240 Mid Cities Blvd / N. Richland Hills, TX 76180 (817) 581-1979 / Fax (817) 581-1921 WE ALSO OFFER THESE COVERAGES:
Commercial Fire • Contents • Wrecker • 2-Car Haulers • Cargo • Dealer Bonds Retirement • Life Insurance • Homeowner Insurance • Personal Lines January 2014
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Best Selling. Best Performing. BeSt oPtIon! The Talon by GoldStar GPS. Still the best-selling and best-performing GPS tracking device around. Let’s get to the truth about The Talon GPS Tracking Device from GoldStar GPS. It’s still by far the best-performing and best-selling device in our market. But don’t take our word for it. Just take a look at the numbers.
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No wonder Talon is the dealers’ first choice for GPS tracking hardware. But we’re not stopping there. Stay tuned for the next-generation Talon CDMA device — with even faster speeds and bigger bandwidth. Put talon to the teSt. Call today and test The Talon performance for yourself.
1-866-655-8825 l GoldStarGPS.com/talon-best-option ©2013 Spireon, Inc. All Rights Reserved.
TIADA DeAler AcADemy 2014 Education Offerings for the Winter/Spring Seminar Schedule Dealer 101: Nobody Told Me That!
Keeping Your Dealership Legal & Compliant
TIADA 2014 Annual Conference & Expo July 27–30, 2014 Hyatt Regency Lost Pines Resort & Spa 575 Hyatt Lost Pines Road | Lost Pines, Texas 78612
Monday, January 13, 2014 – Fort Worth
Monday, February 10, 2014 – Houston
Monday, March 24, 2014 – San Antonio
Monday, April 28, 2014 – Fort Worth
Monday, May 12, 2014 – Houston
Monday, June 09, 2014 – San Antonio
8:30 a.m. - 5:30 p.m.
9:00 a.m. - 3:30 p.m.
This class is designed for those dealers new to the business, those considering opening their own dealership, new employees, family members or anyone else needing a refresher on the basics, including: • Transferring Titles • Odometers • Title & Registration Fees • Temp Tags & Metal Dealer Plates • Requirements for Maintaining Dealer License • The Buyer’s Guide - As Is • SOLD! The Deal Jacket
The seminar will focus on advanced financing concepts, with special emphasis on in-house financing, repossession & bankruptcy issues, OCCC compliance and federal regulations. • Record Keeping • Motor Vehicle Sales Tax • Vehicle Inventory Tax • Consignment • Online Sales • Out of State / Out of Country • OCCC: the MVSF License • Federal Requirements
• OCCC Audits – what are the most common mistakes dealers make? • What is the Comptrollers position on GPS units? • Credit Card Convenience Fees – what is allowable? • Consumer Financial Protection Bureau (CFPB) – how might it affect dealers? • Bankruptcy – when do we have to give the vehicle back?
$149 per registrant
tiada Annual Conference & expo
MEMBERS - 1st Registrant $149, each additional $99 NON-MEMBERS $299
Hyatt Regency Lost Pines Resort & Spa 575 Hyatt Lost Pines Road Lost Pines, Texas 78612
Lost Pines
@
austin music
with
+
austin food
+
austin flavor
tiada education
Texas Independent Automobile Dealers Association
Register online at www.txiada.com or by phone at 800.442.5944.
behind the wheel
by Jeff
Martin
A
s 2013 came to a close TIADA was busy participating in numerous stakeholder meetings that will lay the groundwork for the association and the independent automobile industry for 2014 and years to come. In November we had the honor of being the toplevel sponsor for the tax assessor-collector’s conference in College Station, Texas. Over three days we had an opportunity to visit with tax assessors from around the state, discussing how we can work together to improve the title transfer process. We discussed partnering with the tax assessors to build an online “Transferring Titles” training module that will help anyone new to the titling process. Our hope is that a more educated dealer will make the process more efficient. We also attended two stakeholder meetings held by the Department of Motor Vehicles. The first was the Licensing Advisory Committee, chaired by DMV board member and TIADA Past President Blake Ingram. The goal of the committee is ultimately to produce proposed rules for the DMV board that will address a person’s fitness for holding a license, and to determine a person’s fitness to hold a license when that person has committed a criminal offense or has engaged in fraudulent or dishonest activity. Through these meetings, industry stakeholders and the agency have been working together to create a predictable regulatory environment that we can all be proud of. We appreciated the opportunity to participate and expect proposed rules to be posted in the early part of this year. We have also been participating in the agency’s meetings with regard to webDEALER. WebDEALER is an online application that will allow Texas motor vehicle
46
TIADA EXECUTIVE DIRECTOR
dealers to apply for title and registration electronically. This is literally the future of the auto industry; as such, it is imperative that your voice be heard as we work with the agency to implement such a major change in our business. The agency has already rolled out the webDEALER pilot program for a few franchise dealers. Independent dealers will start being introduced to the concept as early as this summer. Most recently we attended a meeting of the Texas Finance Commission, the entity that oversees the Office of Consumer Credit Commissioner (OCCC). I get more dealers telling me all the time, “I just went through an OCCC audit and it actually went well!” I am happy to report that at the final meeting of the year with the Finance Commission, Chairman Bill White and Commissioner Pettijohn both had very positive things to say about the direction of the industry. They each recognized TIADA specifically and thanked both the association and dealers statewide, crediting the industry for continuing to improve our levels of compliance. Chairman White actually held up the December issue of this magazine, directed everyone’s attention to the compliance quiz and jokingly asked, “Compliance for Christmas?” To which Commissioner Pettijohn replied, “Well, sure — we are glad to see it any time of year!” Since you were not there to hear the positive comments I thought I would pass them along. Like any industry, we will see changes over the next couple years. However, with your membership and involvement in the association we can not only keep you abreast of the changes, we can assure you that the changes will have your association’s input.
T e x a s
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January 2014
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TEXAS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION P.O. Box 127 Round Rock, TX 78680-0127
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Don’t Let This Be Your Last Issue!
• •
If this magazine and your dues payment crossed in the mail, please accept my apologies and my sincere thanks for renewing your membership. Membership dues paid or gifts given to TIADA are not deductible as charitable contributions for income tax purposes but may be deducted as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20% of your dues dollar is used for lobbying activities and is therefore not deductible.
We try to make the renewal decision EASY.
*You send us $425 for annual membership dues.
*We send you the 2014 VIP Auction Card, good for $8000 in free buy/see fees at 40 auctions all across Texas.
So if you go to just TWO of those auctions, at any time in 2014, your membership is basically paid for with the free buy/sell fees you get.
Want more? How about... E xclusive access to all the members-only content available at www.txiada.com U nlimited answers to your industry compliance and legal questions 1 1 issues of the Texas Dealer magazine M embership to NIADA
M EMBER ALERT email service, proactively notifying you of any significant
industry developments R epresentation at the Texas State Capitol D iscount pricing on all TIADA Education including the Annual Conference & Expo Like we said, we try to make this EASY!
Only for our members, only from TIADA.
TEXAS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION P.O. Box 127 Round Rock, TX 78680-0127
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12101 Trinity Blvd Euless, TX 76040 817.399.4000
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