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20 I8 In This Issue: – Everything You Always Wanted to Know about eTags – The OCCC 2018 Regulatory Update – Maximum Finance Rates for 2019 – An Update from the Texas Comptroller on Motor Vehicle Tax Exemptions
2019 TIADA Board of Directors PRESIDENT Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: jmsabillón@mitierraautosales.com PRESIDENT ELECT Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net CHAIRMAN OF THE BOARD Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: greg@dixonmotorcars.com SECRETARY Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 Office: 817.703.7973 Email: mjones@mcmcauto.com TREASURER Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net VICE PRESIDENT, WEST TEXAS (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 Email: bkalivoda@gofiestamotors.com VICE PRESIDENT, FORT WORTH (REGION 2) Eddie Hale/Neighborhood Autos 1717 US 287 Decatur, TX 76234 Office: 940.539.2272 Email: ehale@neighborhoodautos.com VICE PRESIDENT, DALLAS (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 Office: 972.780.0001 Email: greg@autoliquidators.net VICE PRESIDENT, HOUSTON (REGION 4) Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 Office: 281.354.3355 Email: aokautosales@embarqmail.com VICE PRESIDENT, CENTRAL TEXAS (REGION 5) Robert Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 Office: 512.280.5333 Email: bob@texasautocenter.net VICE PRESIDENT, SOUTH TEXAS (REGION 6) Armando Villarreal/McAllen Auto Sales 4215 S. 23rd Street McAllen, TX 78503 Office: 956.668.8088 Email: armando@mcallenautosales.net VICE PRESIDENT AT LARGE Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 Office: 512.828.0001 Email: greg@risingfastmotorcars.com VICE PRESIDENT AT LARGE Jose Engler/Irving Motor Corp 211 Braniff Dr. San Antonio, TX 78216 Office: 210.385.2568 Email: pepeton2002@hotmail.com TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am - 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org
Volume XVIII
/ I s s u e 12
/ D e c e m b e r 2 018
texasDealer
5 Officers’ Message
contents
by Robert Beck, TIADA President Elect
8 Local Chapters 10 Board of Directors Meeting Minutes 11 TIADA Membership Renewal Notice 13 Legal Corner: VIT: A Refresher Course by Michael W. Dunagan
14 Upcoming Events 17 Maximum Finance Charge Rates for 2019 by Michael W. Dunagan
20 2018 Auction App Directory 22 TIADA Day at the Capitol: Save the Date 25 TIADA Annual Conference and Expo 26 On The Cover: 2018 Dealer Proficiency Quiz by Michael W. Dunagan
29 Everything You Always Wanted to Know About eTAGs by The Texas Department of Motor Vehicles
31 New Members 32 TIADA Member Application 33 Office of Consumer Credit Commissioner (OCCC) — Regulatory Update by Brian Arbogast
39 Making a List, Checking it Twice... Preparing for an OCCC Exam by TIADA staff
41 Motor Vehicle Tax – Military, Consular Office and NATO Exempt Purchases by Taliea Pocaigu
45 Behind the Wheel by Jeff Martin
Renew Your Membership Today You can now renew your TIADA membership for 2019 ONLINE! Simply go to txiada.org, log into your account and click the “Renew Now” button. Don’t wait, RENEW TODAY! 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.
Editor: Michael Spurlin
Magazine Ad Sales: Patty Huber, 512-310-9795
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officers’ message Working with the Legislature: Every Voice Counts
W
hen my business partner and I decided to open up our car lot back in 2005, I found out right away that even though we would be operating an independent business, many other folks would be making decisions which would have a direct effect on my bottom-line, and therefore my lifestyle. Some, I found, would be good and result in something positive for us. These include the technological advances such as interactive websites, social media and even the Texas Department of Motor Vehicles updating the temporary tag issuance to an online system. Others have had a negative impact on our business and were not so welcomed. One which comes to mind is the Texas Legislature authorizing the sale of “limited” or nameddriver only insurance policies. While I understand some of the thinking behind deregulating the insurance industry and reigning in the size of government, the unintended consequences of authorizing these policies have been disastrous to our customers, most of whom are unsuspecting victims. They figure if they’ve got a policy, it’ll pay. Not So! My legislative experience with TIADA has taught me that getting involved in these matters through advocacy can often have a positive impact on our industry. The purpose of this article is not to have a
by Robert
Beck
Stop N’Drive Motors (San Antonio) TIADA PRESIDENT ELECT
discussion about named-driver only policies, but rather to share with you what my legislative experience with TIADA has taught me. Prior to joining TIADA at age 49, my only experience legislatively speaking was to attend the leadership program Boys State while in high school. I’ll never forget it. We took over the Idaho Capitol Building in Boise and staged a mock legislative session complete with Senators, Representatives, Governor and a Lt. Governor — every state office. Now fast forward 37 years to 2011. I had been a member of TIADA for about five or six years and received an invitation to participate in TIADA Day at the Capitol from Jeff Martin, our Executive Director. I was more than a little intimidated about putting on a suit and going, thinking, “those folks in the Capitol don’t care about what’s important to me, a usedcar dealer. They’ve got cigars to smoke and fellow politicians’ backs to slap.” I could not have been more wrong. When we arrived at the state Capitol, the association formed us into groups of four to five dealers each, gave us the talking points and sent us on our way to visit with legislators. That year, my group had two experienced dealers who had been to the Capitol before, Brent Rhodes from Fiesta Motors in Buda and Keith Hagler
Our elected officials in Austin are willing to listen to us, and we CAN make a difference in this regulatory environment. December 2018
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At the 2017 TIADA Day at the Capitol, TIADA members meet with Speaker Joe Straus. (Left to right) John Miller, Jr., Robert Beck, Mark Brown, Speaker Straus, Travis Allison and Sonny Paredez.
from Taylor Auto Credit in Taylor. I was amazed at how open the legislators and their staffs were to our viewpoints, and how interested they really were in what issues are important to us. On a side note, we even got to sit in on Governor Perry’s State of the State address in the House chamber. I chalked that day up as a very positive and patriotic experience. I was glad that I overlooked my fears and attended. In 2013 I experienced the same type of real concern from legislators for what our issues are as dealers. This time, I found myself having photos taken with Governor Abbott (then a candidate) and also meeting the man who represented the house district I live in — former Speaker Joe Straus of the House of Representatives. I’ve found the leaders in Austin ALWAYS want to welcome voters from around the state, 6
especially if you are a constituent. We are the folks they’d like to please! All of this has reinforced my confidence in our representative form of government as well as in my ability to articulate our issues to the legislators. As a part of the 2013 legislative session, I was asked by Mr. Martin to testify at a Senate committee meeting in favor of a bill sponsored by then Senator Wendy Davis of Fort Worth which would require complete and honest disclosure by insurance companies when they sell the named-driver only policies. While the bill wasn’t everything we wanted (we’d like to have banned such policies from being sold in Texas), I found myself sitting next to Ms. Davis as we both testified in favor of her bill before the committee. Afterwards, she expressed her sincere appreciation for my
testimony and the support of the TIADA for her bill. Her bill passed, was signed by the Governor Perry and is now the law. Here’s what is important to note about my experience with Ms. Davis; in the whole state of Texas, you could not find two people more different politically than former Senator Wendy Davis and I. She’s a liberal Democrat, I’m a rock-hard conservative Republican. She’s a plaintiff ’s attorney, and I’m an independent businessman who relishes the free enterprise system. But on this issue, our paths came together, and the support of dealers like me in the TIADA was crucial to her success in enacting her bill. This law, while not all we wanted, has helped all of us. In 2015 I was asked again to testify before a House of Representatives committee, which was considering T e x a s
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an outright ban on the sale of named-driver only policies in Texas. Several people from TIADA were there, both dealers and TIADA staff. As I sat in the hearing room listening while several opponents of the bill were trying to convince the legislative committee that these toilet-paper policies were in fact good, my blood began to boil. I couldn’t believe what I was hearing. I knew what the facts were on the ground. I’ve experienced losses from claim denials due to a non-covered driver. I’ve looked into the eyes of an unsuspecting insurance consumer who’s just been told that their policy is junk and will not cover the loss they just incurred on the most expensive asset they have ever owned. I then had the opportunity to share all of this with the committee. We succeeded in getting the bill passed by the committee and sent to the full House of Representatives where it passed by a large margin. The only problem was that it died in the Senate, having been blocked by a very powerful senator who is very heavily lobbied by the insurance industry. In 2017, about fifty TIADA dealers converged on the Capitol as the legislative session was just beginning. As always, we split into small groups of four to six dealers each and set about visiting several Representatives and Senators and their staffs about the issues which impact our businesses. Again, we were warmly received and were able to talk with several of our government leaders. Our issues this session dealt with trying to pass legislation to relieve us from unnecessary regulations. The Office of the Consumer Credit Commissioner had for years required us to notify them to receive permission for any change in what we charge for a documentary fee on our Buyer’s Order. In this legislative session, we were able to convince the legislature to codify the OCCC’s own “Safe Harbor” December 2018
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amount for the documentary fee. The bill passed by the legislature and was signed into law by Governor Abbott. It provided that as long as the amount we charge for the documentary fee is equal to or less than the OCCC’s Safe Harbor amount, the dealer is in compliance with the law. This has relieved all of us from many potential headaches of non-compliance with the OCCC’s rule. For those dealers who utilize Related Finance Companies, we were
successful in eliminating the $600 annual registration fee to operate a Related Finance Company in Texas. For those dealers who use them, this is yet another headache removed! We can celebrate these positive changes each legislative session only because there are dealers in the industry who are willing to get involved politically. We have great resources in our association. We have a dedicated and loyal Executive Director in
.
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Local Chapters VICTORIA Rowdy Ransom RTR Motors 351.582.4511 rowdyroy78@yahoo.com Meeting – 1st Monday (Monthly) FORT WORTH David Byrd Byrd Autos 817.915.2185 david@byrdautos.com Meeting – 4th Thursday of Jan–May and Sep–Oct DALLAS COUNTY Kathrine Tolsch Cico Auto Sales 214.352.9282 cicoauto@verizon.net (dates announced at ww.txiada.org) HOUSTON Rick Maroney Maroney Auto Sales 713.691.3800 rmaroney@usa.net Meeting – 2nd Tuesday (Monthly) SAN ANTONIO Jose Engler Irving Motors Corp 210.385.2568 pepeton2002@hotmail.com (dates announced at www.txiada.org) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 8
Jeff Martin and our General Counsel Mike Dunagan who constantly look out for our interests as Texas independent dealers. We also have a very well respected and talented lobbyist in Mario Martinez who has known everyone in political power in Austin for decades. I have witnessed him representing our interests to lawmakers and other influential leaders in state government, and I found it empowering. We also have an Independent Political Action Committee, INDEPAC, comprised of good dealers across Texas who raise significant funds used to assist political leaders supportive of our interests. All of these resources are wonderful, but none compare to dealers willing to give their time and communication skills to sit down with a legislator in Austin and share with them the issues which have direct impact on their business. The legislators know this. And because they answer to their constituents at the ballot box, they are always willing to hear from ANY constituent. This is where you can be a big help. I’d like to encourage you to not only be a member of TIADA, but to get involved with us politically. We need you! On February 12th, we will convene in Austin for TIADA Day at the Capitol. I invite YOU to be there! I’m confident you’ll have a very positive experience, just as I have done for several legislative sessions now. Our elected officials in Austin are willing to listen to us, and we CAN make a difference in this regulatory environment. I was naive and a little too nervous that first year when I
...if I’ve learned anything at all in my journey from being an Idaho farm boy to testifying at the Texas Legislature, it’s that EVERY voice counts. hesitated to attend TIADA Day at the Capitol. Certainly, it was because I had not yet experienced the openness and willingness on the part of legislators to talk with me. This year, my representative, former Speaker Joe Straus, decided not to run for re-election to the House of Representatives. So, when I had the opportunity during the campaign to meet his potential successor in my legislative district, I did. His name is Steve Allison. He was very much interested in what we do and how we operate politically. Mr. Allison won the election and I look forward to visiting him in his office when we head to the Capitol in February. My political involvement in TIADA has really reinforced my dedication to the God-inspired idea of this representative republic we live in called The United States of America. And if I’ve learned anything at all in my journey from being an Idaho farm boy to testifying at the Texas Legislature, it’s that EVERY voice counts. Even mine. Your voice counts too. You can help us to help our industry. To not speak up or to not get involved is the only way we lose. T e x a s
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TIADA_Sep_issue_due_aug_2018.indd 1
8/13/18 2:20 PM
board of directors meeting minutes October 22, 2018 | Hyatt Place Austin Airport
compiled by Texas Dealer staff
Board Members in Attendance – Juan Sabillón,
Robert Beck, Greg Zak, Mark Jones, Ryan Winkelmann, Brad Kalivoda, Eddie Hale, Greg Reine, Vicki Davis, Robert Blankenship, Armando Villarreal, Greg Phea, José Engler At its meeting on October 22, 2018, TIADA took the following actions:
The board identified legislative priorities for the 86th legislative session.
President Juan Sabillón called the meeting to order at 12:41pm
Director of Associate Member Relations Patty Huber reported on Affinity Partners, Sponsors for TIADA Day at Capitol and the Business Partner Program
Minutes of the Last Meeting – Secretary Mark
Treasurer Ryan Winkelmann reported the Budget numbers for FY’18 and FY’19.
A motion was made to accept the minutes.
Old Business – None New Business – Mark Jones presented five differ-
Jones presented the minutes from last meeting.
Moved by Vicki Davis, seconded by Greg Phea – PASSED
Treasurer’s Report – Treasurer Ryan Winkelmann
presented the Treasurer’s report.
A motion was made to accept the report. Moved by Greg Reine, seconded by Vicki Davis – PASSED
President’s Report – Juan Sabillón presented the
committee appointments and shared information on DC trip. Members reported on member phone calls.
Executive Director’s Report – Executive Director
Jeff Martin provided an update on TIADA personnel, local chapter three-tier program, IDEA program and membership.
10
Special Projects Manager, Teresa Orkun, gave an update on TIADA Auction App usage and penetration.
ent investment funds researched by TIADA. No action was taken. A motion was made to adjourn the meeting.
Moved by Eddie Hale, seconded by Greg Zak – PASSED Meeting adjourned at 5:13 p.m. Respectfully submitted, Mark Jones, Secretary A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.
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texas independent automobile dealers association
TIADA texas independent automobile dealers association
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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 over 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, as well as dealers who are shutting down their operations failing to take care of the back end requirements. 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.
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Another mainstay of local government revenue is the ad valorem tax. As the name implies, it is based on the value of property owned 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. It the merchant happens to be a car dealer, he or she might have been inclined (prior to the institution of VIT) to move some inventory units out of the county at the end of the year, or might just slow down on ordering new
Dunagan
W.
TIADA GENERAL COUNSEL
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. units and sell the 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 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 1st. A dealer’s ability to manipulate the timing of inventory on hand, and the 13
Upcoming Events TIADA DEALER ACADEMY Online Registration available at www.txiada.org
January 2019 2 1 BHPH Compliance: A
Comprehensive Workshop Houston, TX
February 2019 2 5 Facebook/Instagram Workshop:
Increase Sales and Measure Your ROI Austin, TX
March 2019 2 5 The Competitive Investment:
Integrating Data Analytics & Technology into Your Dealership Strategy Dallas, TX
OTHER TIADA EVENTS February 2019 1 1 Board of Directors Meeting
Austin, TX
1 2 TIADA Day at the Capitol Austin, TX July 2019 2 1 – 2 3 TIADA Annual
Conference & Expo San Antonio, TX
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creativity of appraisers in defeating such manipulation had, before VIT was established, created a catand-mouse game between dealers and appraisers. Valuation protests and litigation over the valuation of a dealer’s inventory had become commonplace. 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. 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 management 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 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.
Pass Through of Tax
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 T e x a s
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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 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.
Subsequent Sales Exemption
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. 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. The fines and penalties for nonfiling and late-filing are substantial. Dealers are required to file monthly reports even if no sales occurred during the reporting period. In some counties, non-filing situations are turned over to the
county attorney or even private collection attorneys to collect tax, fines and penalties. Under the VIT portion of the Texas Tax Code, a dealer is presumed to be in business (and thus subject to filing requirements) if a dealer license is in effect. 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. Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 40 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.
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feature Maximum Finance Charge Rates for 2019 by Michael W. Dunagan TIADA General Counsel
Dealer Question: What is the maximum finance charge rate I can use on a motor vehicle retail installment contract? Answer: Dealers who hold vehicle finance licenses issued by the Office of Consumer Credit Commissioner
(OCCC) are authorized to finance the sale of vehicles, and are allowed to add finance charge or time-price-differential to the amount financed (while the term “interest” is commonly used interchangeably with finance charge and time-price-differential, “interest” actually is the amount charged on a loan of money, and should not technically be used in the context of financing the sale of a motor vehicle).
T
he legislature has established a sliding scale of maximum rates, with higher rates allowed on older cars. The maximum rate that sellers of older vehicles can add to the amount financed is $15 per $100 per annum or, stated another way, 15 per cent add on (see accompanying chart). Depending on such variables as the length of the repayment period, the amount of each payment, and the frequency of payment (weekly, bi-weekly, semi-monthly or monthly), the annual percentage rate on 15 per cent add on can exceed 26 per cent.
lower than the maximum can be charged. “Add-on” rates should not be confused with “annual percentage rates” which are the rates required to be disclosed on loans and retail installment sales by federal law. The Annual Percentage Rate (or APR), which appears in the so-call “Fed Box”, will usually be substantially higher than the add-on rate. All financing sellers, with a few exceptions, are required by federal law to disclose the rate of finance charge as an annual percentage rate, or APR, on their
Maximum Finance Charge Rates for Calendar Year 2019 Class One Two Three Four
Year Models
2020 and 2019 new Any new not appearing in Class One above; 2019, 2018 and 2017 used 2016 and 2015 2014 and older
Max. Rate
7.5 per cent add-on 10 per cent add-on
18 per cent APR 18 per cent APR
12.5 per cent add-on 15 per cent add-on
18 per cent APR 18 per cent APR
Chapter 348 of the Texas Finance Code allows sellers of vehicles to finance any unpaid balance at rates that generally exceed the rates of interest that can be legally charged by banks and traditional lenders. For purposes of setting maximum rates of finance charge, Chapter 348 establishes four classes of vehicles based of the vehicle’s model year. The attached chart shows allowable rates for calendar year 2019. These rates are valid on sales that take place between January 1, 2019, and December 31, 2019. The maximum rates “roll over” on January 1 of each year. The maximum rates of finance charges are stated in the Finance Code as “add-on” rates. For example, for vehicles that fall into the class-four category, sellers can charge fifteen dollars per one hundred dollars financed per annum. These are maximum rates, and any rate December 2018 T e x a s
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Alternate Rate
contracts. Since Texas law sets maximum rates as addon rates, it is necessary to first calculate the amount of finance charge the creditor chooses to assess within the legal limit, then determine the APR for disclosure purposes. Federal Truth-In-Lending requires that any finance charge rate be advertised or expressed to a consumer as an APR. It is thus improper to advertise or discuss add-on rates with customers. The process of calculating the APR on contracts that provide for payments other than equal monthly payments is extremely difficult. Most dealers rely on specialized software (often referred to as dealer management software, or DMS) to perform this function. (For a list of reviewed programs, see the OCCC website at http://www.occc.state.tx.us/). Without appropriate software, it is virtually 17
impossible for a creditor who collects weekly, bi-weekly, or semimonthly payments to accurately calculate an APR and other required disclosures. Dealers should not guess at or estimate an APR as incorrect disclosures are the basis for claims for statutory damages and attorneys fees. Note that the chart also includes a column for what is referred to as an “Alternate Rate.” This rate is 18 per cent APR for all four classes. Many dealers have questioned what the alternate rate is, and how it affects the rates they can charge. The alternate rate is an optional rate. A dealer has the option to use either the standard or alternate rate. As an example, a dealer financing the sale of a 2013 model- year vehicle can charge up to 15 per cent add-on (since this year model falls into Class Four) or the alternative rate of 18 per cent A.P.R. Since the 15 per cent add-on rate translates to over 26 per cent A.P.R. on a typical
18
weekly payment contract, a higher legal return can be achieved using the standard rate than the alternative rate. On the other hand, the sale of a class-two vehicle would be subject to a 10 per cent add-on maximum. Since the actual yield on 10 per cent add-on would be lower than 18 per cent, the alternative rate would allow the seller a higher legal return. OCCC rules also require the disclosure of a “contract rate” which is different from the add-on rate and A.P.R. DMS providers that comply with Texas requirements properly calculate and disclose the contract rate. The OCCC website has additional information about maximum rates and contract rates. Remember that the so-called “add-on rate,” which is the rate used to calculate the finance charge added to a contract, can’t be used on the contract documents or in any communication with consumers, such as advertising. In order
that credit consumers can shop rates on an “apples to apples” basis, federal law requires all discussions about rates to refer to the chosen universal rate, or the A.P.R. It would be improper to have an add-on rate appear anywhere on a contract.
T e x a s
D e a l e r
December 2018
e-Tag Supplies —
In Stock for Immediate Shipment!
MOTO
R VEH
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ETAIL
INSTAL
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SALES
REDITOR SELLER/C : ADDRESS ZIP: CITY, ST,
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purchased. vehicle being the motor interest in NT(S ) a security NPA YME Due I give you Date ED DOW owe you, DEF ERR or in the future charge of owe you Amount a late debt I now I will pay any other it is due, ses in it and days after my promi ct and all within 15 payment Charge. on this contra ce sts, owe entire I all ve my of the Finan lt, security intere p this To secure d of part do not recei Security: defau (1)Kee writing. get a refun t nonpayment, ge: If you ises in paym ent. so, I can NO.: Late Char n abou $ all prom sched uled . If I do ds. STOCK put....... informatio % of the er to........ I owe early yment refun ment for deal........ the ........ and prepa pay all that refer to this docu Ask........ rce. ........ nt: I can uled date, I will ............... DATE: to enfo Prepayme l Information: e the sched cult........ REDITOR: diffi........ full befor are........ SELLER/C ises........ Additiona repayment in .$ D prom........ ER : red ................ ................ FINANCE : Spo VIN NUMB ces) ken ADDRESS any requi servi ................ ANT AMO UNT ... $ ORT s, and ................ IMP sorie , ST, ZIP: ION OF ................ ........ acces CITY IZAT ........ ITEM YEAR ................ uding any ................ form. ........ER: ..$ e) ........ ........BUY PHONE: price: (Incl Color: ................ (2) R:abov box 1. Cash ................ UYE L .............. ment follow ing: CO-B(s) ment ....$ ................ MODE........ fied, the Downpay ................ 2. Downpay ........: ........ .....$ RESS tions speci l:(3) Deferred ......... $ ........ payment ........ADD ................ r to the Mode ................ terms $and condi ZIP: Cash down LE MAKE ent (Refe VEHIC........ ................ ................ ................ under the E CITY, ST, ............ ........ downpaym ................ ................ase from you, VEHICL ................ $ Deferred ................ ) ................ ................ y purch........ ........ belowE: -in........... Make: PRICE hereb 4.A.PHON ................ : I/We........ .... ........ (Optional) (St. & No.): Gross trade see Line to License NUMBER ........ ........ ........ G: SOLD........Year: ICLE “0” and by seller STOCK VEHBEIN ................ amounts.): - payoff tive, enter DEALER ........ ........ ........ THIS VEHICLE........ .. $ ge: ........Milea ........ TIES FOR -in (if nega ................ part of these No.: ........ ........ trade ........ keep Stock er may = net ............... .$ ................ WARsRAN ................ lf (Sell ................ payment ................ minu 2) my beha price (1 ................ ................ Total down others on of cash ............$ ................ ................ paid to .: balance ss ................ ................ V.I.Nany.................. amounts 3. Unpaid y) ........ regardle company.. including ance ance comp Services tive equit repairs charges insurs, r and insur to any (nega to Othe $ ff 4. ... y for paid payo ance paid Accessorie insur trade-in onsibilit insurance Options,or companies damage A. Net $ damage no resp ...mes physical TOTAL company of physical er assu $ rages with CE $ insurance B. Cost ... nal cove . The deal paid to CASH PRI of optio REPAIRS t insur ance C. Cost $ nal credi Gross FOR ANY cle. e $ .. .............. of optio Phone: COSTS vehi Allowanc ................ D. Cost .$ L PAY ALL nts about the ........................ Trade-in ................ Life anyeme YOU WIL comp .... ........ ........ ff $ ....... $ ance ................ oral stat ........................ -in Payo insur any ................ Disability Net Trade ................ to theof ........ $ ........To: .......... ........ ........Lien ance paid Show ............. nt agencies.. . ........ insur ........ r rnme ........ ........ ........ gove Bala nce $ E. Othe $ ................ ................ paid to ................ ............ Unp aid Pric e ial fees ................ ................ ................ ....... ........ ling s for F. 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316 bpc #24-4
2018 TIADA Auction Directory ABILENE Alliance Auto Auction Abilene www.allianceautoauction.com 6657 US Highway 80 West, Abilene, TX 79605 325.698.4391, Fax 325-691-0263 General Manager: Brandon Denison Friday, 10:00 a.m.
C.M. Company Auctions, Inc. www.cmauctions.com 2258 S. Treadaway, Abilene, TX 79602 325.677.3555, Fax 325.677.2209 General Manager: Gregory Chittum Thursday, 10:00 a.m.
AUSTIN ADESA Austin www.adesa.com 2108 Ferguson Ln., Austin, TX 78754 512.873.4000, Fax 512.873.4022 General Manager: Rich Levene Tuesday, 9:00 a.m.
America’s AA Austin / San Antonio www.americasautoauction.com 16611 S. IH-35, Buda, TX 78610 512.268.6600, Fax 512.295.6666 General Manager: John Swofford Tuesday, 1:30 p.m. / Thursday, 2:00 p.m.
Insurance Auto Auctions Austin* www.iaai.com 2191 Hwy 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 General Manager: Geoffrey Rabb Tuesday, 9:00 a.m.
Metro Auto Auction – Austin www.metroautoauction.com 8605 Cullen Ln., Austin, TX 78748 512.282.7900, Fax 512.282.8165 General Manager: Brent Rhodes 3rd Saturday, monthly
CORPUS CHRISTI Corpus Christi Auto Auction www.corpuschristiautoauction.com 2149 IH69 Access Road, Corpus Christi, TX 78380 361.767.4100, Fax 361.767.9840 General Manager: Hunter Dunn Friday, 9:30 a.m. 20
Get up to $200 off a buy or sell fee at these participating auctions using the NEW TIADA Auction App! * VIP discount valid for sell fees only
Insurance Auto Auctions Corpus Christi* www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880 General Manager: Adriana Serrano Wednesday, 9:00 a.m.
DALLAS/FORT WORTH METROPLEX ADESA Dallas
www.adesa.com 3501 Lancaster-Hutchins Hutchins, TX 75141 972.225.6000, Fax 972.284.4799 General Manager: Brad Garrett Thursday, 9:30 a.m.
Alliance Auto Auction Dallas
www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 7520 214.646.3136 General Manager: Chris Dean Wednesday, 1:30 p.m.
America’s AA Dallas
www.americasautoauction.com 219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972-591-2742 General Manager: Ruben Figueroa Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.
Insurance Auto Auctions Dallas* www.iaai.com 204 Mars Road, Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 General Manager: Henry Valenzuela Wednesday, 9:00 a.m.
Insurance Auto Auctions DFW*
www.iaai.com 4226 E. Main St, Grand Prairie, TX 75050 972.522.5000, Fax 972.522.5090 General Manager: Jennifer Wesner Tuesday, 9:00 a.m.
Manheim Dallas
www.manheim.com 5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800, Fax 214.339.6347 General Manager: Rich Curtis Wednesday, 9:00 a.m.
Manheim Dallas Fort Worth
www.manheim.com 12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000, Fax 817.399.4251 General Manager: Nicole Graham-Ponce Thursday, 9:30 a.m.
Metro Auto Auction – Dallas www.metroaa.com 1836 Midway Rd., Lewisville, TX 75056 943.492.0900, Fax 972.492.0944 General Manager: Scott Stalder Tuesday, 9:00 a.m.
Texas Lone Star Auto Auction www.tlsaa.com 2205 Country Club Drive Carrollton, TX 75006 214.483.3597, Fax 214.483.3814 General Manager: Jeff Dunning Tuesday, 1:00 p.m. / Thursday, 2:00 p.m.
EL PASO El Paso Independent Auto Auction www.epiaa.com 7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 General Manager: Luke Pidgeon 10:00 a.m. Standard Sale
Insurance Auto Auctions El Paso* www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489, Fax 915.852.2235 General Manager: Jorge Resendez Friday, 10:30 a.m.
Manheim El Paso www.manheim.com 485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645 General Manager: JD Guerrero Thursday, 10:00 a.m.
HARLINGEN/MCALLEN Big Valley Auto Auction
NOW ACCEPTING ONLINE COUPONS!
www.bigvalleyaa.com 4315 N. Hutto Road, Donna, TX 78537 956.461.9000, Fax 956.461.9005 General Manager: Lisa Franz Thursday, 9:00 a.m.
Insurance Auto Auctions McAllen* www.iaai.com 900 N. Hutto Rd, Donna, TX 78537 956.464.8393, Fax 956.464.8510 General Manager: Ydalia Sandoval Tuesday, 9:00 a.m. T e x a s
D e a l e r
December 2018
Manheim Houston www.manheim.com 14450 West Road, Houston, TX 77041 281.924.5833, Fax 281.890.7953 General Manager: Eddie Pope Tuesday, 9:00 a.m. / Thursday, 6:30 p.m.
Manheim Texas Hobby www.manheim.com 8215 Kopman Road Houston, TX 77061 713.649.8233, Fax 713.640.6330 General Manager: Darren Slack Thursday, 9:00 a.m.
HOUSTON ADESA Houston www.adesa.com 4526 N. Sam Houston , Houston, TX 77086 281.580.1800, Fax 281.580.8030 General Manager: Michael Schenks Wednesday, 9:00 a.m. www.americasautoauction.com 1826 Almeda Genoa Rd. Houston, TX 77047 281.819.3600, Fax 281.819.3600 General Manager: John Swoffard Thursday, 2:00 p.m.
AutoNation Auto Auction – Houston
NEW
www.autonationautoauction.com ANAAHouston@AutoNation.com 608 W. Mitchell Road, Houston, TX 77037 855.905.2622, Fax 281.506.3866 General Manager: Mike Green Thursday, 6:00 p.m.
Houston Auto Auction www.houstonautoauction.com 6767 North Freeway, Houston, TX 77076 713.644.5566, Fax 713.644.0889 President: Tim Bowers Tuesday, 1:00 p.m.
Insurance Auto Auctions Houston North* www.iaai.com 16602 East Hardy Rd., Houston, TX 77032 281.443.1300, Fax 281.443.4433 General Manager: Louis Cappi Thursday, 9:00 a.m.
Insurance Auto Auctions Houston* www.iaai.com 2535 West. Mt. Houston, Houston, TX 77038 281.847.4700, Fax 281.847.4799 General Manager: Michelle Casper Wednesday, 9:00 a.m. December 2018 T e x a s
D e a l e r
SAN ANTONIO ADESA San Antonio
Alliance Auto Auction Longview
Insurance Auto Auctions San Antonio*
www.iaai.com 5577 Highway 80 East Longview, TX 75605 903.553.9248, Fax 903.553.0210 General Manager: Robert Dunning Thursday, 9:00 a.m.
www.americasautoauction.com 1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936-788-2842 General Manager: Buddy Cheney Monday, 6:30 p.m.
www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277, Fax 432.366.8725 General Manager: Barbara Hallmark Thursday, 11:00 a.m.
LONGVIEW
Insurance Auto Auctions Longview*
America’s AA North Houston
Insurance Auto Auctions Permian Basin*
www.adesa.com 200 S. Callaghan Rd San Antonio, TX 78227 210.434.4999, Fax 210.431.0645 General Manager: Clifton Sprenger Thursday, 9:00 a.m.
www.allianceautoauction.com 6000 East Loop 281 Longview, TX 75602 903.212.2955, Fax 903.212.2556 General Manager: Chris Barile Friday, 10:00 a.m.
America’s AA Houston
MIDLAND/ODESSA
LUBBOCK Insurance Auto Auctions Lubbock* www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 General Manager: Lori Davee Tuesday, 9:30 a.m.
Texas Lone Star Auto Auction – Lubbock
NEW
www.lsaalubbock.com NOW ACCEPTING 2706 E. Slaton Road ONLINE COUPONS! Lubbock, TX 79404 806.745.6606 General Manager: Dale Martin Wednesday, 9:30 a.m.
LUFKIN Lufkin Dealers Auto Auction www.lufkindealers.com 2109 N. John Reditt Dr. Lufkin, TX 75904 936.632.4299, Fax 936.632.4218 General Manager: Wayne Cook Thursday, 6:00 p.m.
www.iaai.com 11275 S. Zarzamora San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 General Manager: Brian Sell Monday, 9:00 a.m.
Manheim San Antonio
www.manheim.com 2042 Ackerman Road San Antonio, TX 78219 210.661.4200, Fax 210.662.3113 General Manager: Mike Browning Wednesday, 9:00 a.m.
San Antonio Auto Auction
www.sanantonioautoauction.com 13510 Toepperwein Road San Antonio, TX 78233 210.298.5477, Fax 210.298.5484 General Manager: Brandon Walston Tuesday, 9:30 a.m. / Thursday, 1:30 p.m.
TYLER Greater Tyler Auto Auction
www.greatertyleraa.com 11654 Hwy 64 W, Tyler, TX 75704 903.597.2800, Fax 903.597.2800 General Manager: Wayne Cook Tuesday, 5:00 p.m.
WACO Alliance Auto Auction Waco www.allianceautoauction.com 15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 General Manager: James Baron Friday, 10:00 a.m.
ONLINE ACV Auctions
NEW
www.acvauctions.com 800.553.4070
ONLINE ONLY
Get $250 in Credit 21
2019
TIADA
Day
at# the Capitol make
your
voice
Heard Save the date Tuesday, February 12
Register now! Visit www.txiada.org and under “EVENTS” select “TIADA Day at the Capitol” to reserve your spot today.
BUY ONLINE AT www.AmericasAutoAuction.com
21
LOCATIONS Wishing you the merriest of holiday memories, prosperity and joy continuing beyond the 2019 New Year! Atlanta, GA Austin, TX Baton Rouge, LA Birmingham, AL Bowling Green, KY Chicago, IL
4
Dallas, TX Detroit Toledo, OH Greenville, SC Harrisburg, PA Houston, TX Interstate 94, MI
Jacksonville, FL Lancaster, PA North Houston, TX Pensacola, FL Pittsburgh, PA St Louis, MO
Austin
LOCATIONS IN TEXAS
Dallas
TUESDAYS & THURSDAYS AT 1PM 219 N. Loop 12 Irving, Texas 75601 Phone: 972.445.1044
Tulsa, OK Virginia Beach, VA West Michigan, MI
TUESDAYS & THURSDAYS AT 1PM
16611 South IH 35, Buda, Texas 78610 Phone: 512.268.6600 Houston
THURSDAYS AT 1:30PM
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on the cover by Michael W. Dunagan TIADA General Counsel
IZ
ANCE
MPLI O C
ER PR L A O DE
IENC C I Y F
QU
20 I8 (Editor’s note: Each of the following questions is taken from information that appeared in Legal Corner columns in Texas Dealer magazine in 2018.)
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1. Which of the following documents must be in Spanish if the car buyer only speaks Spanish? a. C redit application. b. Motor vehicle installment contract. c. Buyer’s order. d. B uyer’s Guide.
3. The debt cancellation provisions of a Debt Cancellation Agreement kick in upon which of the following: a. Th e collateral is totalled. b. Th e collateral is stolen. c. Th e collateral is used in the commission of a crime. d. The engine locks up.
2. The legal term for a court order that directs an officer to take possession of property is a writ of _______________: a. Possession b. Replevin c. Sequestration d. Trover
4. True or False: Under Texas law, a BHPH seller of a vehicle doesn’t have liability for the subsequent negligence of an uninsured customer who causes a wreck.
5. The State Comptroller takes the position that: a. Both the purchase price of GPS units and air time charges are taxable to the dealer. b. The purchase of GPS units is taxable, but air time charges are not taxable. c. The purchase price of GPS units is not taxable, but air time charges are taxable to the dealer. d. Th e purchase of the GPS is not taxable since the device is attached to the vehicle and increases the sales tax the state receives when the vehicle is sold.
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6. True or False: 6. After a strict foreclosure, a car creditor can report to a credit bureau the balance owed after deducting the proceeds of the resale. 7. Deferred sales tax is lost and total sales tax becomes due on a vehicle sale if: a. The title certificate is delivered directly to the buyer. b. Title isn’t transferred within 60 days. c. The title certificate is lost. d. The dealer fails to submit his sales tax report by the deadline. 8. The period of time for which a repossessed vehicle must be held after sending a proposal to accept collateral in satisfaction (strict foreclosure) is: a. 20 days b. 10 days c. 21 days d. 30 days
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9. A lien on a vehicle becomes “perfected” at what point? a. W hen the state issues a title certificate with the lien recorded on it. b. When the buyer signs the motor vehicle installment contract. c. W hen the buyer signs the Form 130U. d. When the county tax office accepts the assigned title and transfer fees. 10. A liability insurance company, when settling a case for damages to collateral caused by their insured: a. M ust include any recorded lien holders’ names on all settlement checks issued to cover damage to the collateral. b. Must make all checks for property damage payable to both the owner and lien holder if the amount exceeds $5,000.
c. Must investigate lien status only if the damage exceeds $2,000. d. Must pay the owner and lien holder the amount needed to repair the vehicle less the deductible. 11. Vehicle Inventory Tax (VIT) is (pick one): a. Sales tax on a dealer’s inventory. b. The buyer’s property tax on his or her purchase. c. The buyer’s portion of the county bridge and road fee. d. Ad valorem tax on a dealer’s inventory.
Answers can be found on page 43.
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feature
Everything You Always Wanted to Know About eTAGs But Were Afraid to Ask
GTDealer Plate & by The Texas Department of Motor Vehicles
he eTAG system is designed to make processing temporary tags fast and easy for dealerships throughout the state, while making temporary tag information available in almost real-time to law enforcement. The Texas Department of Motor Vehicles (TxDMV) is dedicated to helping dealers remain in compliance with the applicable rules and statutes when using the eTAG system. The eTAG system was updated and moved to the webDEALER system in April of 2018. Every licensed dealer has access to the eTAG system through their account created under their General Distinguishing Number (GDN). Licensees are prohibited from sharing their user ID and password with anyone. This is because any misuse of the eTAG system occurring directly under a licensee’s account can be attributed to the licensee regardless of who accessed the system. Instead, a licensee can allow others to have access to their account by adding sub users. Sub users could then access the licensee’s account with their own unique user ID and password. Licensees can also limit what a sub user is allowed to do within the account. This also allows the licensee to track all eTAGs created under their account and see who created each eTAG. TxDMV has received numerous complaints of eTAGs being stolen, illegally copied, altered, and counterfeited. The most popular eTAG being misused is the dealer agent tag, because it is not associated with a specific vehicle and can therefore be used on any vehicle. TxDMV has developed new security features** that have been added to all eTAGS to assist in identifying if an eTAG has been illegally copied, altered, or counterfeited. TxDMV has been providing eTAG training to both dealers and law enforcement online via www.txdmv.gov and in-person at free Dealer Training Seminars held around the state in an effort to reduce the misuse of eTAGs. Licensees caught misusing eTAGs can receive civil penalties ranging from $500 to $2,000 per each eTAG misused, and/or have their dealer license revoked. Common misuses include: issuing more than
one buyer’s eTAG to a retail purchaser, issuing a buyer’s eTAG for a vehicle that does not have a valid inspection, issuing a dealer’s eTAG to a retail purchaser, and selling eTAGs to people who have not purchased a vehicle from the dealership. All licensed dealers have access to Dealer Agent and Dealer Vehicle eTAGs. Licensed dealers that have a retail license also have access to Buyer and Internet Down eTAGs. Listed below are proper and improper uses for each type of eTAG.
Dealer eTAGs
(both Dealer Agent and Dealer Vehicle eTAGs)
Can only be displayed on a motor vehicle that the dealer is licensed to sell, and is in the dealer’s inventory. No safety inspection required on a motor vehicle properly displaying a dealer eTAG. Dealer, employee, or authorized agent*** of the dealer cannot use a motor vehicle displaying a dealer eTAG for personal use. Dealer eTAGs must be displayed and properly se cured in the rear license plate holder. Cannot display advertisements on a motor vehicle bearing a dealer eTAG. Dealers have the option when creating a dealer eTAG on the validation period of the eTAG, which is from 1 to 60 calendar days. Dealer eTAGs cannot be copied and utilized on
DEALER’S TEMP TAG - AGENT SPECIFIC
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multiple vehicles. Multiple dealer agent eTAGs can be issued, but only one per each dealer, employee, or authorized agent. Only one vehicle specific eTAG can be issued per vehicle. Dealer eTAGs can be displayed on a motor vehicle operating on a public roadway for the purpose of driving to or from a wholesale auction, a repair facility, or a detail shop. Dealer eTAGs can also be displayed on a motor vehicle being used for a demonstration or test drive, or on a loaner vehicle when completing repairs on a customer’s vehicle (Note: it is recommend utilizing a vehicle specific eTAG for this purpose). Can issue a dealer eTAG to a motor vehicle associated with a conditional delivery agreement (i.e., dealer waiting for loan approval from a financial institution). Otherwise, no dealer eTAGs should be issued to a retail purchaser.
Dealer Agent eTAG
Can only be issued to dealer, employee, or authorized agent. Cannot be issued to a family member, relative, neigh bor, or friends.
Dealer Vehicle Specific eTAG
Issued for a specific motor vehicle the dealer is li censed to sell and is in the dealer’s inventory.
Buyer eTAG
Can only be issued for a motor vehicle sold out of the dealer’s inventory. Cannot be issued for a courtesy delivery vehicle. Issued at time of retail sale, and securely placed in the rear license plate holder. Cannot display the buyer eTAG on a used motor vehicle unless the vehicle has received a valid safety inspection within 180 days preceding the date the dealer sells the vehicle. New vehicles must receive a valid safety inspection within 1 year preceding the date the dealer sells the vehicle. No safety inspection is required, if at the time of sale, the motor vehicle is exempt from motor vehicle sales tax (i.e. the vehicle will be registered out-of-state). Must collect required $5 buyer eTAG fee and remit to the state through the local county tax assessor-collector (TAC) for both in-state and out-of-state retail sales. Only one buyer eTAG per retail sale. If the eTAG ex pires before title transfer is complete, the dealer must purchase a 30 day permit from the local county TAC.
Internet Down eTAG
Must be preprinted and secured. An inventory log must be created as well. Only issue Internet Down eTAG for a retail sale when there is no access to the eTAG account.
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Instruct consumer to keep the Internet Down eTAG receipt in glove box until plates and registration are received. Must assign the Internet Down eTAG as soon as eTAG account access has been re-established. The system will then allow you to print a replacement Internet Down eTAG. Same general requirements for issuing a buyer eTAG apply (see above).
**Security Features
Bar code – The bar code added in the lower right corner of the eTAG includes information relevant to the specific eTAG such as, VIN, year, make, model, and selling dealer. State seal – A state seal watermark was added to the lower left corner to aid in the prevention of fraudulent copying. Bezier curves (Security Lines) – Added curves across the permit number to prevent fraudulent copying. The curves are black in color except when passing through letters and numbers. Format – Changed the date month from numerical to a three-digit alpha sequence to make the expiration date harder to change and easier to identify. Font Size – Font size was in creased to aid law enforcement by making the eTAG information more visible. Sequence of eTAG number re formatted – Moved the alpha
designation from the 3rd digit to the 6th digit. System will not have to reuse prior tag numbers for approximately 18 to 24 months. System Change – eTAG system must exhaust all possible eTAG numbers before reissuing previously issued numbers.
***Authorized Agent/Employee
Per 43 Texas Administrative Code § 215.148(d), a dealer’s authorization to an agent or employee shall: be in writing; be signed by the dealer principal or person in charge of daily activities of the dealership; include the agent’s or employee’s name, current mailing address, and telephone number; include the dealer’s business name, address, and dealer license number or numbers; expressly authorize buying or selling by the specified agent or employee; state that the dealer is liable for any act or omission regarding a duty or obligation of the dealer that is caused by that agent or employee, including any financial considerations to be paid for the vehicle; state that the dealer’s authorization remains in effect until the recipient of the written authorization is notified in writing of the revocation of the authority; and be maintained as a required dealer’s record and made available upon request by a representative of the department, in accordance with the requirements of § 215.144 of this title (relating to Records).
Please Welcome Our Newest TIADA Members DEALER MEMBERS
Exper Auto Dealership Clarence Griffin 20322 Sedona Oaks Dr, Cypress, TX 77433
Net Direct Auto Sales Tony Riley 3760 Golden Triangle Blvd, Fort Worth, TX 76244
Sames Budget Center, Ltd. Jerimy Bean 3417 Caladium Cir, Austin, TX 78748
Auto One Motors Jonathan Gil 12099 Beechnut St., Houston, TX 77072
Jacob’s Auto Sales Erasto Jacobo 2400 Windy Hill Rd, Kyle, TX 78640
Oasis RV and Auto Sales Kevin Ritz 700 N Owens, Big Spring, TX 79720
Texan Auto Group Samer Harmouch 10242 Astoria Blvd, Houston, TX 77089
Carvana LLC Carvana Carvana 1930 W. Rio Salado Pkwy, Tempe, AZ 85281
JBS Motors LLC Jesus Cervantes 5828 W. Interstate 10, San Antonio, TX 78201
Rahma Group Ahmed Gawish 6260 Westpark Dr., Ste 340 Houston, TX 77057
WBI Midway Automotive Todd Whitehurst 16301 Bldg 2 IH 27 Canyon, TX 79015
Dixon Gibbs Used Vehicles Joycelyn (Dee Dee) Gibbs 1007 W. Commerce, Brownwood, TX 76801
JJJ Auto Sales Joel Lopez 6005 N Shephard Dr, Houston, TX 77091
SA Auto Haus Todd Olson 1815 Archers Bow Rd, San Antonio, TX 78232
XTRA Auto Center LLC Jeff Stevens 807 W Foster Pampa, TX 79065
Alamo Nation Auto Mehrdad Akbari 8124 Almeda Genoa Rd., Houston, TX 77075
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TIADA texas independent automobile dealers association
Become a TIADA Member Business Name: ____________________________________________ Select one:
Dealer Member
TIADA texas independent automobile dealers association
Associate Member
Contact Person: ____________________________________________ Address: __________________________________________________ City: _________________________________________ State: _______
Membership Dues:
Zip: __________________ County: _____________________________
$499
E-mail address: _____________________________________________
Dues include NIADA and local chapter membership where applicable.
Business Phone: _______________________ Fax: ________________________ Cell Phone: ___________________________________________ 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: __________________________________________________ Sec.Code: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Expiration Date: ____________ Monthly Payments - $41.58 per month Via Credit Card (Please enter card information above) Via Bank Draft (Authorization Agreement required - contact state office)
Mail or Fax Application To: TIADA Membership Services, 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750 FAX 512.244.6218
www.txiada.org
512.244.6060
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.
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Office of Consumer Credit Commissioner (OCCC) – Regulatory Update by Brian Arbogast
Administrative Review Examiner
L
icensing activities at the agency continue to reflect the dynamic nature of the industry. Fiscal year 2018 (September 1, 2017 to August 31, 2018) ended with 8,654 motor vehicle sales finance licensed locations compared with 8,539 at fiscal year-end 2017, and up again from 8,444 active licensed locations from fiscal yearend 2016. A closer look at licensing activities on a quarterly basis for fiscal year 2018 shows active motor vehicle sales finance licensed locations increased from 8,539 at fiscal year-end 2017 to 8,855 1st quarter, 9,184 2nd quarter, 9,403 3rd quarter, and ending 4th quarter fiscal year 2018 at 8,654. The 4th quarter dip in licensed locations is a normal occurrence due to the renewal timeframe of finance licenses in June of every year. The agency completed investigations of 51 motor vehicle sales finance licensed locations in fiscal year 2018; down from the number of investigations (53) completed in fiscal year 2017. In fiscal year 2018, the agency processed 1,074 complaints related to motor vehicle sales finance operations, compared to 1,148 in fiscal year 2017. Motor vehicle sales finance complaints represent 60.7% of all complaints processed by the OCCC in fiscal year 2018. The 5 largest complaint-investigation categories are related to: Repossessions; Financing conditioned on subsequent assignment of the contract; Contract Issues; Unlicensed Activity; and Mechanical Issues
The OCCC is projecting to complete 2,270 motor vehicle sales finance compliance examinations in fiscal year 2019. The agency will continue to actively work with the motor vehicle sales finance industry by assisting industry participants in preparing for and responding to the agency’s examination and investigation program, as well as continuing to make ourselves available for any industry training seminars. As such, agency fully expects the industry compliance levels to remain above 80%. Finally, the OCCC would like to thank TIADA for their continuous contributions, availability, and cooperation in assisting the OCCC in our continued efforts to fulfill our mission of creating a fair, lawful, and healthy credit environment that grows economic prosperity for all Texans.
Running every week !!
In fiscal Year 2018, the OCCC conducted examinations of 2,269 motor vehicle sales finance licensed locations. This represents a decrease of 3.6% in the number of licensed locations examined in fiscal year 2017 (2,354). For fiscal Year 2018, the acceptable level of compliance for motor vehicle sales finance licenses was a sturdy 88.59%, up from 85.81% at fiscal year-end 2017. This significant improvement was in line with agency expectations. December 2018
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*Certain conditions apply. All rights reserved. Dealers should refer to the terms and conditions of their Demand Promissory Note and Loan and Security Agreement (“Note”) and any other agreements with NextGear Capital for complete details, terms and conditions. Dealer must be in good standing. NextGear Capital reserves the right to modify or terminate this offer, as well as NextGear Capital’s terms and programs, at any time. Please contact your local NextGear Capital representative for complete details, terms and conditions. This offer has no cash value. All advances made in California by NextGear Capital are made pursuant to NextGear Capital’s California Finance Lender License, #603G505. Dealers must elect and authorize AutoPay via Account Portal to qualify for AutoPay.
Special Thanks to our
2018 INDEPAC Contributors (as of November 27, 2018)
Tommy Gregory* Eddie Hale
$2,000 +
Greg Reine Paul Scott
$1,000 -$1,999 Mike Carlson Roy Carlson Steve Greig
Blake Ingram Mark Jones* Phillip Lathrop
Juan Sabillón Michael Thomasson Kathrine Tolsch*
$500-$999 Jeff Atchison Stephen Barrett Dan Keetch Jeff Martin Ahmed Belmeshkan
Wayne Meagher Sonny Paredez* Brent Rhodes
Jerry & DeDe Smith Mike Trevino Greg Zak*
$250-$499 Clint Cockerellˆ
John Freeman*
$100-$249 Matthew Brewster David Byrd Habacuc Castaneda Vicki Davis Chris Elkins
Jose Engler Pilar Goodson Keith Hagler Debra Hayden*ˆ Carleton Heller*
Byron Riley*ˆ Rudy Roudbari Nelson Simonsen Chris Templin Tommy Wittrock
*Monthly Contributors ˆNon-Dealer/Associate Member December 2018
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Ignorance is no defense. Know the law. Repo and financing issues are among the most common violations found by the OCCC. If you own a previous edition of these books from 2008 or earlier, it is recommended that you upgrade to the current editions.
Dealer Financing of Used Car Sales This comprehensive book covers all aspects of the complicated world of seller-financing in Texas, including Maximum Finance Rates; Retail Installment Contracts; Contract Amendments; VIT; Repair Charges; Federal Disclosures and more.
TIADA Member Price: $125 (non-members $175)
Texas Automobile Repossession: A Lien Holder’s Legal Guide Everything you need to know about repossessions is addressed in this book, including Notification Requirements, Post-Repo Procedures, Private Sale vs. Strict Foreclosure, Bankruptcy, Post-Disposition Accounting, Tracking and Shut-off Devices, the 60% Rule and more. PLUS – includes all required forms.
TIADA Member Price: $125 (non-members $175)
TIADA
Now available for purchase online at www.txiada.org under “Legal Resources” or call 512.244.6060 to order by phone. When ordering online, login with your TIADA username and password to receive the discounted rate. All prices include shipping. Orders are shipped in 3-5 business days. texas independent automobile dealers association
Attorney Michael W. Dunagan is the author of the two must-have books for every Buy-Here, Pay-Here dealer in Texas. Mr. Dunagan has been General Counsel to TIADA for over 40 years. His law firm specializes in the representation of independent Texas car dealers.
December 2018
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TIADA texas independent automobile dealers association
37
Dealer Academy
in partnership with
Presents
BHPH Compliance: A Comprehensive Workshop Presented by Michael W. Dunagan, TIADA General Counsel and author of the standard-setting books, “Dealer Financing of Used Car Sales” and “Texas Automobile Repossession: A Lien Holder’s Legal Guide.” This revitalized seminar is the final answer in BHPH compliance. Mike speaks dealer, and with 40 years of experience representing hundreds of BHPH dealers, he knows your business inside and out. Attend this workshop and learn all about…
9:00am - 4:00pm $249 TIADA Members, $199 Add’l Members (must be from same dealership)
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How to prepare for (and survive) an OCCC audit Your right to insurance proceeds Using the courts to get your car back Procedures to stay off the CFPB’s radar Techniques to avoid consumer lawsuits Properly handling financing on repairs Real-life DTPA court cases Body shops, mechanics, towing and storage issues Specific lien-protection steps Federal regulations affecting BHPH dealers Alternatives to traditional insurance Most common OCCC customer complaints How to respond to an attorney demand letter Repossessions: from A to Z Your rights in a bankruptcy Most common advertising violations Dealer issues in Comptroller audits
Monday, January 21, 2019 Houston, Texas Houston Marriott North 255 N. Sam Houston Parkway East | Houston, TX 77060 281.875.4000
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Register online at www.txiada.org or by phone at 512.244.6060.
Texas Independent Automobile Dealers Association
feature
Making a List, Checking it Twice... Preparing for an OCCC Exam by TIADA Staff
What information do I need? What files will the examiners want to see? What can I do to prepare?
W
hen faced with the prospect of an exam from the Office of Consumer Credit Commissioner, dealers often have a number of questions. What information do I need? What files will the examiners want to see? What can I do to prepare? This itemized checklist provides with that information so they an itemized list to make sure those dealers are ready when the OCCC shows up. Even if you aren’t facing an exam right now, looking over this checklist can help a dealer stay organized and be better prepared in the event you are the subject of one.
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OCCC Exam Checklist: Contract Issues
1. Obtain OCCC vehicle finance license
(dealership and related finance Company)
2. Use proper contract form 3. U se proper contract software
(is the program on OCCC list?)
4. M aintain financing documents (later of four
years from contract or 2 years from final entry)
5. M aximum interest rate (what is contract rate?) 39
6. Regulation B — use proper
17. Tracking and disabling device disclosures;
7. Regulation B — statement of reason
18. Safety inspection fee charge 19. Hindering secured creditor notice 20. Fee for credit/debit card use
credit application form
for denial letters
8. Use co-signer disclosure form;
difference between co-maker and cosigner
9. Overcharge on transfer fees — registration calculation problem (only pass through actual charges incurred)
10. Use of trade-in disclosure form 11. Handling deferred down payments 12. L ate payment penalty a. Must be disclosed in writing b. May be assessed after installment is 15 days late c. Maximum penalty is 5% of installment amount d. One penalty per installment period 13. Doc fee amount and disclosure: poster displayed in closing area & must appear on buyer’s order
14. Handling negative equity trade-ins 15. Financing repairs 16. Phantom insurance and service contract charges
40
no installment fee
Collection and Repossession Issues
1. Collection fees (no pass-through of collection fees) 2. Repossession fees and upcharges; in-house repossessions
3. Repossession notices and forms 4. Holding period on strict foreclosure and 60 per cent rule
5. Statement of account on private sale and refund of surplus
6. Has debtor’s personal property been properly handled?
7. Bad check charge — maximum charge for bad check is $30
8. D ischarge lien timely
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feature
Motor Vehicle Tax – Military, Consular Office and NATO Exempt Purchases by Taliea Pocaigu
Texas Comptroller of Public Accounts | Tax Policy Division
t p m e x
e S
ometimes the process to purchase a motor vehicle can be challenging and time consuming. Not only for the customer but also for you, the dealer. The Texas Comptroller of Public Accounts wants to ensure that the process for motor vehicle tax collection by all dealers is fast, fair and efficient. Our office regularly receives questions from dealers about how to handle military, diplomatic, consular and NATO personnel motor vehicle purchases.
Vehicle Purchases by Military Personnel
When your dealership sells a motor vehicle to United States military personnel and most foreign military personnel (other than NATO personnel), the purchase is subject to motor vehicle tax when you register the vehicle in Texas for the owner. The domicile and legal residence for United States military personnel is the person’s “home of record,” as designated in the person’s military records. When you sell a motor vehicle to military personnel residing in Texas, or with Texas as the home state of record, motor vehicle sales tax is due on the purchase.
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Your dealership must contact the Office of Foreign Missions for a determination on the tax-exempt status of your customer. The Office of Foreign Mission will provide you a statement indicating the taxexempt status of the purchaser. 41
Note that a Texas military person who is stationed outside Texas, but chooses to register a vehicle in Texas, is also subject to motor vehicle tax, since the motor vehicle is presumed to be for use in Texas.
Vehicle Purchases by Foreign Diplomatic Officials and Consular Officers
An exemption from motor vehicle tax does apply to foreign consular officers, consular administrative technical employees and certain consular family members. The United States Department of State’s Office of Foreign Missions, handles all diplomatic tax exemptions. The State Department issues tax exemption cards to foreign consulates and certain consulate family members who qualify for diplomatic exemption from state and local taxes. These cards have picture identification, an explanation of exemption(s) and are colorcoded. The Department of State determines all tax exemptions, not local government, and the consulates that qualify for specific tax exemption. The Comptroller’s Motor Vehicle Tax Guidebook explains the exemption in relation to motor vehicle tax. To grant motor vehicle tax exemption, foreign consular officers, consular administrative technical employees or certain consular family members must apply directly to the Office of Foreign Missions for motor vehicle titles and registration. Motor vehicle tax would be due if the consular official obtained a Texas Certificate of Title and regular registration from your dealership via the county tax assessor-collector. The Office of Foreign Missions completes the required motor vehicle titling and registration, not a local government office. Your dealership must contact the Office of Foreign Missions for a determination on the tax-exempt
42
status of your customer. The Office of Foreign Mission will provide you a statement indicating the taxexempt status of the purchaser. Once you have that statement, you can exempt motor vehicle tax from the purchase of the vehicle. For questions regarding titling and registration of these vehicles, contact the Diplomatic Motor Vehicle Office, Houston Regional Office of Foreign Missions, 8701 S, Gessner Suite 906, Houston, Texas, 77074 or call 713-272-2865. Their website is https://www.state.gov/ofm/dmv/. Note there is an exception for motor vehicles purchased by Taiwan consulate officials. Your dealership, via the county tax assessor-collector, can title and register these vehicles. If the Taiwanese official has an appropriate tax-exemption card, motor vehicle taxes will not be due. Remember, you must keep a copy of the Office of Foreign Mission’s statement in your records for four years from the date of purchase. If there is a denial of the exemption, then you must collect and remit the motor vehicle tax.
Persons qualified under the NATO exemption include foreign military personnel, foreign military dependents and military-employed civilians attached to the NATO forces of certain countries.
Vehicle Purchases by Members of NATO
Foreign NATO personnel stationed in Texas on official orders are exempt from motor vehicle sales tax. Persons qualified under the NATO exemption include foreign military personnel, foreign military dependents and
military-employed civilians attached to the NATO forces of certain countries. You can find a listing of the NATO countries here: https:// www.nato.int/cps/en/natolive/topics_52044.htm Any persons claiming a NATO exemption must provide your dealership proof that they are qualified, and they must have identification indicating they are qualified. Tax laws are complex and subject to change, and the Comptroller’s office is committed to helping Texas taxpayers understand their rights and responsibilities regarding Texas taxes. You can access tax information online 24 hours a day, seven days a week at Comptroller. Texas.Gov. Visit Motor Vehicle Taxes and Surcharges to learn more about motor vehicle taxes and to access forms, publications, taxpayer databases and more. If you have a motor vehicle tax question, visit Texas Taxes Help at https://comptroller.texas. gov/web-forms/tax-help/, or call a tax specialist at 800-252-5555. The Comptroller’s office is open Monday through Friday from 8:00 a.m. to 5:00 p.m. T e x a s
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resource guide The TIADA Website: www.txiada.org
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 Knowledge Base.
Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov
Office of Consumer Credit Commissioner 800.538.1579 www.occc.state.tx.us
Answers to the Annual Compliance Quiz 2018 (questions found on pg. 26–27)
1. d. The FTC Buyer’s Guide must be posted in Spanish if sales negotiations take place in Spanish. (January, 2018; Should Contracts Be in Spanish?) 2. c. The Texas statutory provision for such a court order is “sequestration.” (February, 2018; What To Do When Peaceable Repossession Is Not Possible) 3. a and b. The Texas Finance Code specifically provides that one of these two items triggers debt cancellation under a DCA. (March, 2018; Looking at Insurance Options: Debt Cancellation Agreements Offer an Alternative) 4. True. Under Texas law, a vehicle seller does not have liability for the accidents caused by the buyer after the sale is complete. (April, 2018; Is a Car Seller Liable for Accidents Caused by His Buyer?). 5. a. The Comptroller’s Office takes the position that a GPS is for the lien holder’s benefit and does not fall under any exemption to sales tax; thus both equipment costs and air-time charges are considered to be taxable. (May, 2018; Use of Electronic Tracking and Disabling Devices Raises Legal Issues).
Texas Comptroller
6. False. Strict Foreclosure (also known as Acceptance of Collateral In Satisfaction) results in the forgiveness of any balance owed by the debtor. Thus, no deficiency can be reported to a credit bureau. (June, 2018; Do-It-Yourself Compliance Review: Getting Your House In Order).
NIADA
7. b. Failure to transfer within 60 days of sale triggers acceleration of the entire sales tax amount. (July, 2018; Sales Tax Issue Often Overlooked as Dealer Compliance Concern).
800.252.1382 www.window.state.tx.us 800.682.3837 www.niada.com
REPOSSESSIONS
American Recovery Association 972.755.4755 www.repo.org or contact TIADA state office
FORMS Burrell Printing
800.252.9154 www.burrellprinting.com December 2018
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8. a. The Uniform Commercial Code requires a holding period of 20 days after a strict foreclosure notice is sent. 9. d. Texas law provides that the tender of all required forms, documents, and payment to the County Tax Office establishes perfection. (April 2015; Dropped Liens Are Disastrous, But Avoidable). 10. a. There is no minimum amount of loss that triggers the liability carrier’s obligation to include a registered lien holder on the settlement check. (November , 2018; Law Protects Lienholders in Liability Insurance Claims). 11. d. VIT is the dealer’s ad valorem or property tax on the value of a dealer’s inventory. (December, 2018; VIT: A Refresher Course). 43
Garage Liability Kevin Smith Insurance is now Tri-State Dealer Services. With expansion and coverages being available outside of Texas, we’ve changed our name to better suit the areas of our growing agency.
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800-687-3236 / Fax (817) 581-1921 EPI-TIADAhalf Nov2018.pdf
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F&I • Vehicle Service Contracts • GAP Insurance • Tire & Wheel Vehicle Protection Products • Property • Wreckers 2 Car Haulers • Cargo • Dealer Bonds • Personal Lines 10/29/18 4:38 PM
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December 2018
behind the wheel
Martin
Looking Back
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t’s that time of year — time to renew your TIADA membership. But before you do, let’s take a quick look back. In January, we went digital and launched the new TIADA Auction App. This app replaced the old Auction VIP Card that allowed you to save money on your buy and sell fees at participating auctions. By going digital it has allowed us to introduce new auctions and coupons throughout the year creating even more value. Over 40% of you downloaded the app and used a couple of coupons this year. Many of our members even paid for their membership and then some by redeeming three or more coupons. Next year look for us to grow the number of participating auctions, create more online coupons and introduce special coupons throughout the year so you can save even more money. We also answered just over 1,000 of your compliance emails and phone calls. We have seen a slight uptick in the number of compliance questions we received this year through our compliance consultation program, so we worked hard to increase our attorney referral program. We now have just over 30 attorneys from all over Texas who can address dealer member issues related to the independent automobile industry. Saving you from a $10,000 fine or a silly lawsuit is what we do best. Keep those questions coming.
December 2018
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by Jeff
TIADA EXECUTIVE DIRECTOR
Two years ago, we redesigned the weekly TIADA email, and our open rate increase from 27% to 33%. I am glad to see we are touching more people but I am not sure why that open rate isn’t much higher. It’s the best way for dealers to stay abreast of what is going on in the industry. Last year we also solidified our relationship with our local chapters by forming a true three-tier program. Your membership includes NIADA membership as well as your local chapter membership. All three are included in your annual dues. In August, we introduced a new form on our website that would allow you to formally file a complaint when you received a fraudulent toll charge. While it is still a work in progress we have already helped a handful of dealers save some money through using this form. Lastly, we continued growing your voice, strengthening your association and protecting your industry throughout 2018. Over the years the association has 45
Your board members have big plans for 2019, but getting you to renew your membership is their number one goal. Renew your membership today; take advantage of the benefits and help strengthen the voice of your association.
worked to increase the doc fee from $50 to $150. We fought and defeated a bill that would have increased your dealer bond to $250,000. The association’s advocacy is why you have deferred sales tax. It’s why mechanics can no longer steal your vehicle with a frivolous mechanics lien. And just this year, we worked with DMV to create language that would finally allow you to pay a referral fee to your customers.
Renew your membership today; take advantage of the benefits and help strengthen the voice of your association. 46
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TEXAS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750
PRSRT STD
U.S. POSTAGE
PA I D
JEFFERSON CITY, MO
PERMIT NO. 210
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