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PRESIDENT
Greg Reine/Auto Liquidators 39670 LBJ Freeway
Dallas, TX 75237
PRESIDENT ELECT
Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753
CHAIRMAN OF THE BOARD
Eddie Hale/Neighborhood Autos PO Box 1719 Decatur, TX 76234
SECRETARY
Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301
VICE PRESIDENT, WEST TEXAS (REGION 1)
Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915
VICE PRESIDENT, FORT WORTH (REGION 2)
Tyler Simmons/Abilene Used Car Sales, Inc. 2150 N. 1st Street Abilene, TX 79603
VICE PRESIDENT, DALLAS (REGION 3)
Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas, TX 75218
VICE PRESIDENT, HOUSTON (REGION 4)
Lowell Rogers/11th Street Motors 1355 N 11th St, Beaumont, TX 77702
VICE PRESIDENT, SOUTH TEXAS (REGION 6)
Cesar Torres/Lofi Motors 4634 Ayers St. Corpus Christi, TX 78415
VICE PRESIDENT AT LARGE
Christina Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017
VICE PRESIDENT AT LARGE
Lucas Ponder/Auto Smart 3202 Summerhill Rd. Texarkana, TX 75503
TIADA EXECUTIVE DIRECTOR
John Frullo
9951 Anderson Mill Rd., Suite 101 Austin, TX 78750
Office Hours M-F 8:30am
TexasDealer contents
BOOK A DEMO
officers’ message
Cutting Costs at Your Dealership
The Smart Way to Save Big by Year’s End (and Beyond)
Running an independent dealership is like hosting a family reunion with unpredictable relatives: you never quite know what to expect, but you’re always paying attention to the budget. The good news? There are now plenty of ways to cut costs that can deliver significant savings by the end of the year — and well into the next. It’s not magic, but it feels like it when your profits grow and expenses shrink. Here are some practical, creative ways to save:
1 Start Small with Your Fleet
You might think that the more cars you have, the more opportunities you get for sales, but here’s the secret: a smaller, more curated inventory can lead to bigger profits. Think of it like shopping for your wardrobe. No one needs 47 pairs of shoes, just the ones that really work. By focusing on high-demand, high-turnover cars (those sweet spots that are affordable, reliable, and desirable), you’ll free up space and save on maintenance costs. Less isn’t just more; it’s smarter.
2 Embrace Technology, But Don’t Break the Bank
We’ve all got a smartphone these days, and it’s time to let that piece of tech magic work overtime. Using digital
by Russell Moore
tools for inventory tracking, customer payments, and even service appointments can help reduce human error, streamline your processes, and save time (which, let’s face it, is money). There are budget-friendly options that get the job done without emptying your pockets. For example, automating reminders for payments means fewer late fees and more steady cash flow.
3
Get Social, But in a Casual, “Not-Desperate-for-Likes” Way
Your customers are scrolling through Instagram and Facebook all day, and guess what? They’re looking for their next ride. So why not meet them where they are? Rather than spending a fortune on traditional ads, post photos of your cars, share behind-the-scenes looks at your dealership, and post customer success stories. A goofy meme about buying your first car or a short video tour of your lot can grab attention without the hefty price tag. Social media marketing doesn’t need to be fancy to be effective; just be relatable.
4 Work Smart with Your Team (and Skip the Overstaffing)
Your team is like the engine of your dealership. You don’t need a V8 when a V4 will do. Take a hard look
There are now plenty of ways to cut costs that can deliver significant savings by the end of the year — and well into the next.
Top Notch Used Cars (Conroe) TIADA SECRETARY
2025 Upcoming Events
at your staffing and optimize. Can one person handle sales, customer service, and paperwork? The key here isn’t cutting staff but focusing on multitaskers who can wear multiple hats without burning out. Cross-training employees saves money and helps you keep things running smoothly when someone’s out sick or on vacation. Plus, no one likes a stuffy office, so keep your team lean, efficient, and motivated.
5 Offer Flexible Payment Options
Everyone loves an affordable payment, but you’ll love it more if it keeps your cash flow steady and your customers happy. Whether you offer in-house financing or work with outside lenders, make sure your payment plans are structured to close more deals without putting your business at risk. For BHPH dealers, that means finding the right balance between down payments and manageable terms to reduce defaults. For retail dealers, offering financing options that cater to different credit profiles can attract a broader range of buyers. The goal is simple: make it easier for customers to buy while keeping your bottom line strong.
6 Make Use of the TIADA Auction App
Imagine having a magic button on your phone that you can receive discounts ranging from $75 to $250
off buy/sell fees at over 50 auctions across Texas. That’s precisely what the TIADA Auction App provides. By leveraging these digital coupons, you can significantly reduce your auction expenses, making your membership pay for itself in no time. Plus, with special promotions and bonus coupons available throughout the year, the savings just keep piling up. It’s like having a secret weapon in your cost-cutting arsenal. There is an instructional video on the TIADA website, and you can always call us if you need help getting started!
See pgs. 7-9 for information about the TIADA Auction App
The Bottom Line: Start Now, Start Saving
The key to cutting expenses in your dealership is simple: start with the small stuff, build up your systems, and let the savings pile up. A little effort today can pay off bigtime by the end of the year — and keep paying dividends well into the future. Don’t get caught up in the next big flashy thing that you do not need. So, buckle up, get creative, and watch those savings drive your dealership straight into the profit lane!
The key to cutting expenses in your dealership is simple: start with the small stuff, build up your systems, and let the savings pile up.
TIADA Auction Directory
Save thousands on buy or sell fees at these participating auctions!
* VALID FOR SELL FEE ONLY AT INSURANCE AA LOCATIONS ** ONLINE AUCTION AVAILABLE January 2025
Abilene
ALLIANCE AUTO AUCTION ABILENE**
www.allianceautoauction.com
6657 US Highway 80 West, Abilene, TX 79605
325.698.4391
GM: Brandon Denison
Friday, 9:45 a.m.
$AVE : $200
IAA ABILENE*
www.iaai.com
7700 US 277, Hawley, TX 79601
325.675.0699
GM: Shaun Lemke
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee Amarillo
DAX of AMARILLO**
www.daxofamarillo.com
3208 SE 10th Ave., Amarillo, TX 79104
806.374.8982
GM: Kelsy Allen
Every Tuesday, 11:00 a.m.
$AVE : $200
IAA AMARILLO*
www.iaai.com
11150 S. FM 1541, Amarillo, TX 79118
806.622.1322
GM: Shawn Norris
Monday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Austin
ALLIANCE AUTO AUCTION AUSTIN**
www.allianceautoauction.com
1550 CR 107, Hutto, TX 78634
737.300.6300
GM: Brad Wilson
Thursday, 9:15 a.m.
$AVE : $200
AMERICA’S AA AUSTIN**
www.americasaa.com
16611 S. IH-35, Buda, TX 78610
512.268.6600
GM: Jamie McCollum
Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.
$AVE : $200
AMERICA’S AA LONE STAR AUSTIN
www.americasaa.com
8408 Shoal Creek Blvd., Austin, TX 78757
214.483.3597
GM: Sara Edgington
Friday and Every Other Thursday, 11:00 a.m.
$AVE : $200
IAA AUSTIN*
www.iaai.com
2191 Highway 21 West, Dale, TX 78616
512.385.3126
GM: Rick Hahn
Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
METRO AUTO AUCTION AUSTIN
www.metroautoauction.com
2221 Hwy 21 W., Dale, TX 78616
512.282.7900
GM: Brent Rhodes
3rd Saturday monthly, 9:00 a.m.
$AVE : $200
Corpus Christi
AMERICA’S AUTO AUCTION
CORPUS CHRISTI**
www.americasaa.com
2149 IH-69 Access Road, Robstown, TX 78380
361.767.4100
GM: Rene Gandy
Friday, 10:00 a.m.
$AVE : $200
IAA CORPUS CHRISTI*
www.iaai.com
4701 Agnes Street, Corpus Christi, TX 78405
361.881.9555
GM: Patricia Kohlstrand
Wednesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Dallas-Ft. Worth Metroplex
ADESA DALLAS**
www.adesa.com
3501 Lancaster-Hutchins Rd., Hutchins, TX 75141
972.225.6000
GM: Eric Jenkins
Thursday, 9:30 a.m.
$AVE : $200
ALLIANCE AUTO AUCTION DALLAS**
www.allianceautoauction.com
9426 Lakefield Blvd., Dallas, TX 75220
214.646.3136
GM: Anthony Herrera
Wednesday, 12:30 p.m.
$AVE : $200
AMERICA’S AA DALLAS**
www.americasaa.com
219 N. Loop 12, Irving, TX 75061
972.445.1044
GM: Ruben Figueroa
Tuesday, 12:00 p.m. / Thursday, 12:30 p.m.
$AVE : $200
DAX of ROCKWALL**
www.daxofrockwall.com
1810 E I-30, Rockwall, TX 75087
972.771.9919
GM: Tim Clement
Tuesday, 6:00 p.m. / Thursday, 2:00 p.m.
$AVE : $200
IAA DALLAS*
www.iaai.com
204 Mars Rd., Wilmer, TX 75172
972.525.6401
GM: Donnie Avant
Wednesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA DFW*
www.iaai.com
4226 East Main St., Grand Prairie, TX 75050
972.522.5000
GM: Tony Dias
Monday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA FORT WORTH NORTH*
www.iaai.com
3748 McPherson Dr., Justin, TX 76247
940.648.5541
GM: Jack Panczyk
Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
MANHEIM DALLAS** www.manheim.com
5333 W. Kiest Blvd., Dallas, TX 75236
214.330.1800
GM: Rich Curtis
Tuesday, 9:00 a.m./Wednesday 9:00 a.m./ Friday 10:00 a.m.
$AVE : $100
MANHEIM DALLAS FORT WORTH** www.manheim.com
12101 Trinity Blvd., Fort Worth, TX 76040
817.399.4000
GM: Glenna Bishop Thursday, 9:30 a.m.
$AVE : $100
METRO AUTO AUCTION DALLAS** www.metroaa.com
1836 Midway Road, Lewisville, TX 75056
972.492.0900
GM: Scott Stalder
Tuesday, 9:30 a.m./ Friday 10:00 a.m.
$AVE : $200
El Paso
AMERICA’S AUTO AUCTION EL PASO www.americasaa.com
7930 Artcraft Rd., El Paso, TX 79932
915.587.6700
GM: Judith Ayub Wednesday, 9:30 a.m. MST
$AVE : $200
IAA EL PASO* www.iaai.com
14751 Marina Ave., El Paso, TX 79938
915.852.2489
GM: Hector Escobar
Wednesday, 9:30 a.m. MST
$AVE : up to $200 Sell Fee
MANHEIM EL PASO** www.manheim.com
485 Coates Drive, El Paso, TX 79932
915.833.9333
GM: JD Guerrero
Thursday, 10:00 a.m. MST
$AVE : $100
Harlingen/McAllen
IAA M c ALLEN*
www.iaai.com
900 N. Hutto Road, Donna, TX 78537
956.464.8393
GM: Ydalia Sandoval
Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
BIG VALLEY AUTO AUCTION**
www.bigvalleyaa.com
4315 N. Hutto Road, Donna, TX 78537
956.461.9000
GM: Lisa Franz
Thursday, 9:30 a.m.
$AVE : $200
Houston
ADESA HOUSTON**
www.adesa.com
4526 N. Sam Houston, Houston, TX 77086
281.580.1800
GM: Keyvan Nayeri
Wednesday, 9:30 a.m.
$AVE : $200
AMERICA’S AA HOUSTON**
www.americasaa.com
1826 Almeda Genoa Rd., Houston, TX 77047
281.819.3600
GM: Kyle Drake
Thursday, 1:00 p.m.
$AVE : $200
AMERICA’S AA NORTH HOUSTON**
www.americasaa.com
1440 FM 3083, Conroe, TX 77301
936.441.2882
GM: Buddy Cheney
Tuesday, 1:00 p.m.
$AVE : $200
AUTONATION AUTO AUCTION - HOUSTON**
www.autonationautoauction.com
608 W. Mitchell Road, Houston, TX 77037
218.506.3220
GM: Davis Cosmi
Friday, 9:15 a.m.
$AVE : $200
EBLOCK HOUSTON**
www.houstonautoauction.com
2000 Cavalcade Street, Houston, TX 77009
713.644.5566
GM: Rich Levene
Tuesday, 12:00 p.m.
$AVE : $200
IAA HOUSTON*
www.iaai.com
2535 West. Mt. Houston, Houston, TX 77038
281.847.4700
GM: Alvin Banks
Wednesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA HOUSTON NORTH*
www.iaai.com
16602 East Hardy Rd., Houston-North, TX 77032
281.443.1300
GM: Aracelia Palacios
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA HOUSTON SOUTH*
www.iaai.com
2839 E. FM 1462, Rosharon, TX 77583
281.369.1010
GM: Roxy Castillo
Friday, 9:30 a.m.
$AVE : up to $200 Sell Fee
MANHEIM HOUSTON**
www.manheim.com
14450 West Road, Houston, TX 77041
281.890.4300
GM: Nick Hanson
Tuesday, 9:30 a.m.
$AVE : $100
MANHEIM TEXAS HOBBY**
www.manheim.com
8215 Kopman Road, Houston, TX 77061
713.649.8233
GM: Darren Slack
Thursday, 9:00 a.m.
$AVE : $100
Longview
ALLIANCE AUTO AUCTION LONGVIEW**
www.allianceautoauction.com
6000 SE Loop 281, Longview, TX 75602
903.212.2955
GM: Rocky Campbell
Friday, 9:30 a.m.
$AVE : $200
IAA LONGVIEW*
www.iaai.com
5577 Highway 80 East, Longview, TX 75605
903.553.9248
GM: Ulysses Else
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Lubbock
AMERICAS AA LONE STAR LUBBOCK**
www.americasaa.com
2706 E. Slaton Road., Lubbock, TX 79404
806.745.6606
GM: Dale Martin
Wednesday, 9:00 a.m
$AVE : $75/Quarterly
IAA LUBBOCK* www.iaai.com
5311 N. CR 2000, Lubbock, TX 79415
806.747.5458
GM: Chris Foster
Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee Lufkin
LUFKIN DEALERS AUTO AUCTION
www.lufkindealers.com
2109 N. John Reddit Dr., Lufkin, TX 75904
936.632.4299
GM: Wayne Cook
Thursday, 5:30 p.m.
$AVE : $200
Midland Odessa
IAA PERMIAN BASIN*
www.iaai.com
701 W. 81st Street, Odessa, TX 79764
432.550.7277
GM: Louis Cappi
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
San Antonio
AMERICA’S AUTO AUCTION
SAN ANTONIO**
www.americasaa.com
13510 Toepperwein Rd., San Antonio, TX 78233
210.298.5477
GM: Brandon Walston
Tuesday, 9:00 a.m
$AVE : $200
ADESA SAN ANTONIO** www.adesa.com
200 S. Callaghan Rd., San Antonio, TX 78227
210.434.4999
GM: Clifton Sprenger
Thursday, 9:00 a.m.
$AVE : $200
IAA SAN ANTONIO* www.iaai.com
11275 S. Zarzamora, San Antonio, TX 78224
210.628.6770
GM: Paula Booker
Monday, 9:30 a.m.
$AVE : up to $200 Sell Fee
MANHEIM SAN ANTONIO**
www.manheim.com
2042 Ackerman Road, San Antonio, TX 78219
210.661.4200
GM: Mike Browning Wednesday, 9:00 a.m.
$AVE : $100
Tyler
GREATER TYLER AUTO AUCTION**
www.greatertyleraa.com
11654 Hwy 64W, Tyler, TX 75704
903.597.2800
GM: Daylon Waynick Thursday, 2:30 p.m.
$AVE : $200
Victoria
VICTORIA AUTO AUCTION**
835 Industrial Park Drive, Victoria, TX 77905
361.576.0058
GM: Shelly Griffin Thursday, 11:30 a.m.
$AVE : $100
Waco
ALLIANCE AUTO AUCTION WACO** www.allianceautoauction.com
15735 I-35 Frontage Road, Elm Mott, TX 76640 254.829.0123
GM: Christina Thomas Friday, 9:45 a.m.
$AVE : $200
Wichita Falls
DAX of WICHITA FALLS**
www.daxofwichitafalls.com
2206 Sheppard Access Rd., Wichita Falls, TX 76306
940.720.0435
GM: Lisa Shelton
Every Other Wednesday, 5:00 p.m.
$AVE : $200
legal corner
Sales Tax Audits Turn Up Dealer Issues
For some Texas dealers, the appearance of auditors from the state comptroller’s office at their dealerships is a rare and frightening experience. Much attention has been paid to coming into compliance with seller finance issues because of frequent examinations by the Office of Consumer Credit Commissioner (OCCC), and, to a lesser extent, visits, letters or calls from the Texas Department of Motor Vehicles (TxDMV).
In fact, the emphasis on meeting compliance issues being looked at by the OCCC and TxDMV has caused many dealers to forget — or to at least put on the back burner — issues raised by motor vehicle sales tax and the state’s limited sales tax. The current seller-finance sales tax scheme has generally made payment of motor vehicle sales taxes a painless, routine procedure. It is because the administration of deferred sales tax has become so simple and so automated that some of the finer points of motor vehicle sales tax and non-motor vehicle sales tax may have been overlooked by dealers in recent years.
Recent reports from dealers indicate that comptroller office auditors are more aggressively checking dealers who defer sales taxes, looking for actions (or lack of action) that would result in acceleration of sales tax. So assuming a dealer has bought into the deferred sales tax system, and has been diligent in filing reports and paying the prescribed amounts, what are the areas that could still prove troubling in an audit?
by Michael W. Dunagan
TIADA COUNSEL
It is because the administration of deferred sales tax has become so simple and so automated that some of the finer points of motor vehicle sales tax and non-motor vehicle sales tax may have been overlooked by dealers in recent years.
The Sixty-Day Rule
As part of the negotiations with the comptroller when sales tax reform was obtained, it was agreed that a dealer would have to transfer title to a vehicle in order to take advantage of sales tax deferral and avoid having to front the total sales tax. Initially, the comptroller’s office wanted to tie transfer to a 20-day limit. We were able to convince the powers that be, however, that there are some occasions when title certificates get hung up and immediate transfer is impossible. Agreement was finally reached that the right to defer sales tax on a vehicle would be waived if the title wasn’t transferred within 60 days of the date of sale (this time limit only applies to taxation and doesn’t affect other areas of the law that address when titles must be transferred). The tax
auditors review transfer statements and compare the date of sale to the date of transfer for determining if any 60-day transfer violations have occurred. Where violations are found, sales tax is accelerated retroactive to the 60th day, and sales tax on the original cash price is assessed (less credit for amounts paid on the account). Additionally, penalties and interest are added that could conceivably double the assessment.
At one time the requirement that dealers provide proof of liability insurance at the time of transfer prevented some timely transfers. Buyers were instructed to come back with proof of insurance, but failed, leaving dealers unable to timely transfer. That requirement was later (as a result of legislation promoted by TIADA) removed from dealer transfers. However, some dealers
are reporting that the one-sticker registration/inspection system has created a new obstacle (beginning January 1, 2025, safety inspections have been eliminated; however, tailpipe tests for pollution control purposes is continued in non-attainment counties). Again, some buyers are not bringing their vehicles back for pollution testing, holding up transfer, which not only could create a 60-day-rule issue, but result in a DMV violation for late transfer. The lesson to be learned from these experiences: Every effort should be made to complete all pre-transfer steps before delivery of the vehicle.
Understated Sales Price
Auditors will compare the sales price on contract documents against the amount declared on the transfer document. We have found that the switch to deferred sales tax has removed any incentive for buy-herepay-here dealers to fudge on sales
prices, and most violations in this area are committed by individuals and curb stoners. Also, auditors will look at dealer transactions involving a trade-in where a trade deduction from sales price has been made. Auditors verify that (a) the vehicle actually existed; (b) the vehicle was brought into the dealer’s inventory, and (c) the correct value of the trade-in was properly reported. And while other types of property can be accepted in trade, only a motor vehicle trade can be used to reduce the taxable value.
Cash Sale Transfers
Dealers are required to handle the transfer of title and sales tax collection on all sales they make, including cash sales (the exception being outof-state sales — see below). Auditors are looking for evidence that the dealer simply signed off on the title certificate and gave it to a cash buyer. (Also, county tax office personnel
are on the lookout for dealer sales being handled by non-dealers and will report such transactions to DMV.)
Sales or Assignment of Contracts
In order that deferred sales tax would apply only to seller-financed transactions, and not to third-party financing (both direct and indirect), the comptroller insisted on inclusion of a “due-on-sale” provision when deferred sales tax was created. Thus, if dealer paper is sold or assigned to a third party (other than a related finance company), all sales tax is immediately due and can no longer be deferred. Auditors are looking for evidence that a contract upon which a dealer is continuing to defer sales tax has been assigned. For an assignment of a contract to a related finance company (that is, one with at least 80 percent common ownership between the dealership and the finance company) to fit
within the exemption to the acceleration rule, the RFC must hold a permit from the comptroller’s office. Form AP-222-1 from the Comptroller must be filled out and filed. Because of legislation promoted by TIADA and approved by the comptroller’s office, a $600 annual fee is no longer required, and permits no longer have to be renewed each year.
Dealers can pledge their receivables as collateral under the terms of financing arrangements without triggering acceleration. Care should be taken to ensure that lender financing documents don’t refer to the pledge of receivables as an “assignment” and any language stamped on retail installment contracts to advise third parties of the lenders interest should also avoid the word “assignment.”
Use of Resale and Out-of-State Certificates
Everyone knows that sales of vehicles to other dealers are exempt from sales tax. However, the Comptroller of Public Accounts has put dealers on notice that auditors will not automatically recognize a wholesale transaction as tax-free. The seller must obtain a resale statement from the buyer in order to avoid being assessed tax.
The form promulgated by the comptroller’s office for use as a resale statement can be obtained from the comptroller’s website (the back side of form 01-339). The absence of such a statement could result in assessment of sales tax on the transaction, with the statutory penalties and interest. The use of “blanket” resale certificates for multiple sales to the same buyers has been approved by the comptroller and the contents of resale certificates can be incorporated onto other sales documents. Wholesale auto auctions typically have blanket certificates signed by buyers to assist auction consignors.
Another sales tax exemption that dealers could come across is for vehicles that are sold for out-of-state use.
For instance, if a Texas dealer sells a vehicle to a New Mexico resident who is taking the vehicle directly to New Mexico to register, no Texas sales tax is due. The dealer must, though, obtain a statement to this effect from the buyer to avoid being assessed with tax upon an audit. While the seller is not responsible for the truthfulness of contents of the statement, some evidence, such as a copy of the buyer’s out-of-state driver’s license, should be kept with the statement to demonstrate good faith.
All resale and out-of-state delivery statements should be kept for at least four years in case an audit is performed.
Sales Tax on Repossession Fees
According to Comptroller personnel, charges for collection and repossession services are taxable charges. Repossession agents are obligated, under the Comptroller’s interpretation of the law, to obtain a sales tax permit. They then are required to collect sales tax on fees billed to vehicle lien holders. Repossession agents are then obligated to file periodic tax returns and remit the amount of tax collected to the state.
The pertinent provision of the Tax Code makes “collection fees” taxable. While there is no definition in
the Tax Code of collection fees, the Comptroller has defined the term in its administrative rules to include repossession services.
Under another section of the Tax Code, the Comptroller can assess unpaid taxes against the user of taxable services when tax is not collected and paid. Thus, dealers have been assessed for sales tax not collected and paid by their repossession agents. The Comptroller’s Office has begun assessing dealers for sales taxes on repossession fees that they claim should have been collected and paid by repossession agents. Auditors have been going back four years in determining how much the audited dealers owe.
A dealer (or any other lien holder paying repossession fees) can protect himself or herself by (1) demanding that repossession agents have sales tax permits and add tax on all invoices; or (2) calculating the tax and paying it directly to the comptroller
on the dealer’s sales tax return. (This tax applies to the Limited Sales Tax on general merchandise and services; not motor vehicle sales tax which is a separate tax.)
Those lien holders who already hold a limited sales tax permit (used for parts and other merchandise sold) can add the tax on the “taxable purchases” line of the limited sales tax return. By paying the tax, lien holders can avoid interest and penalties that would be assessed if unpaid tax is discovered on an audit.
Of course, repossession agents have primary responsibility for the tax, and are subject to assessment and penalties if they are audited. Dealers, however, are easier targets for auditors and will likely be the focus of collection efforts.
Sales Tax on Tracking Devices
Recent audits of BHPH dealers have turned up the fact that GPS
tracking devices and air time charges are considered by the comptroller’s office to be a taxable purchase by dealers. Some suppliers are not collecting and remitting sales tax, which would make the dealer vulnerable upon audit. The comptroller’s office considers tracking devices to be purchased for the ultimate use and benefit of the dealer, unlike parts that are installed on a vehicle that enhance the value of the vehicle. Tax on tracking devices can be handled by dealers under the same options as repossession fees.
Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 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.
Thank you to all those who contributed to INDEPAC in 2024! Please fill out the form on the next page to help our efforts out at the Capitol!
Dear TIADA Community,
We want to take a moment to thank all of those who have made a contribution to INDEPAC. Due to your generous efforts, we collected over $63,655 in donations in 2024.
Because of these contributions, INDEPAC can continue to protect the rights and interests of independent automobile dealers across the state of Texas. There are many issues confronting the industry right now, and we appreciate your dedication to ensuring we continue to have a strong voice at the Capitol.
We are looking forward to representing the interests of all independent dealers along the road ahead. Thank you for your support!
Sincerely,
INDEPAC
Please list me as a sustaining donor. I would like to support my industry by making a monthly credit card donation of $______________
me to the KEY-PERSON list!Iknow (Name of Legislator)
$63,655 in 2024
Please fill out the form on the previous page to help our efforts out at the Capitol!
Anonymous Donor Allen, Scott
Avila, Jennifer Barrett, Stephen Black, Austin Boisture, Karen Brown, Mark Browning, Justin Davis, Vicki Edenfield, Robert Escajeda, Sergio Goodman, Jason Gregory, Tommy Hagler, Keith & Marcia Hale, Eddie Hanson, April Hobson, James
Ingram, Blake Jackson, Rich Jones, Mark Kaya, Selcuk Lazo, Deyla & Felix Litz, Brian McClees, Jason
Moore, Bobby & Monica Moore, Gerald (G.R.) Moore, Russell Morrissey, Corey Muñoz, Jose Petersen, Shaun Reine, Greg Rice, Jenissa Rodriguez, Edgar Rogers, Lowell
Sabillón, Christina Sanchez, Hugo Simmons, Tyler Smith, Jerry and DeDe Smith, Linda Stark, Cesar Stoll, Kevin Sumrall, Cal Terkel, Ken Toledo, Elkin Turan, Jon Wienecke, Christie & Duane Williams, Lanny Winkelmann, Ryan Zak, Gregory Zak, Michael
Monthly Donors
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A Year of Escalating Scrutiny: FTC Enforcement Actions Against Dealers in 2024
by TIADA Staff
The Federal Trade Commission (FTC) made 2024 a challenging year for automobile dealers, ramping up its enforcement efforts and scrutinizing dealership practices nationwide. From Maryland to Arizona, dealers faced allegations of deceptive practices, discriminatory behavior, and overcharging. While the FTC claims these actions aim to protect consumers, many in the industry argue that the aggressive measures are excessive and disregard the operational complexities dealerships face daily. For dealers, 2024 will be remembered not just as a year of enforcement but also as a turning point in the increasingly strained relationship between regulators and the industry. However, with the new administration appointing Andrew N. Ferguson as FTC Chair, there is speculation that the agency may take a different approach moving forward.
For dealers, 2024 will be remembered not just as a year of enforcement but also as a turning point in the increasingly strained relationship between regulators and the industry.
TIADA will continue to monitor how these changes impact enforcement actions in 2025 and beyond.
FTC Enforcement in Overdrive
While dealers have always operated under regulatory oversight, 2024 marked an escalation in enforcement actions that many in the industry view as heavy-handed. “Auto dealers must honor their promises to consumers,” declared Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, in a press release announcing action against a dealership in Connecticut. However, dealers argue that such sweeping statements oversimplify the realities of modern dealership operations, where pricing, financing, and service depend on a multitude of variables, often beyond a dealership’s direct control. The FTC’s intensified scrutiny, they claim, creates an environment of fear and uncertainty, where even minor missteps can result in substantial penalties and reputational harm.
Enforcement Action #1: Junk Fees and Coercion
(January 4, 2024)
The year began with the FTC targeting a dealership for allegedly “deceiving consumers and forcing them to pay for junk fees.” Instances of coercion were detailed in the agency’s press release.
Dealers contend that the term “junk fees” oversimplifies the complex pricing structures necessary to sustain operations. These fees often cover legitimate costs such as vehicle preparation, document processing, and dealer services, which are not always immediately visible to consumers. Rather than penalizing dealerships, critics suggest that the FTC should focus on fostering greater transparency by providing dealerships with clear and practical disclosure requirements. This approach, they argue, would better serve both consumers and businesses.
Enforcement Action #2: Delivery Failures and Misleading Representations
(July 2, 2024)
In July, an online used car dealer came under fire for allegedly failing to deliver vehicles promptly and misleading consumers about vehicle conditions. “Consumers count on dealers to deliver the vehicles they purchase without unnecessary delays,” the FTC stated.
While timely delivery is essential, online dealers face logistical challenges unique to their business model. From coordinating cross-state transportation to addressing unexpected delays in vehicle reconditioning, online dealerships operate in a complex environment that the FTC’s enforcement actions fail to fully
DIAMOND NATIONALCORPORATEPARTNER
consider. Critics argue that punitive measures against online dealers could stifle innovation in a sector that has grown rapidly in response to consumer demand for convenience and expanded inventory options.
Enforcement Action #3: Deceptive Pricing (August
In August, a dealership in Arizona was accused of advertising low vehicle prices that were allegedly unavailable to most consumers due to undisclosed conditions. According to the FTC, such practices violate consumer protection laws.
15, 2024)
that may not accurately reflect dealership practices.
Enforcement Action #5: Junk Fees and Discrimination (October
29, 2024)
In October, a dealership became another target when the FTC accused the dealership of “unlawful junk fees” and discriminatory financing practices. The agency distributed over $1 million in refunds to affected consumers.
From hefty fines and mandated refunds to operational disruptions and reputational harm, dealers face mounting pressures that could ultimately impact their ability to serve consumers effectively.
Dealers, however, argue that promotional pricing often includes disclaimers—a standard marketing practice across industries. For example, promotions frequently rely on incentives tied to specific financing options or tradein conditions, which are typically disclosed in fine print. The FTC’s crackdown on such practices, they contend, undermines legitimate business strategies and sets a troubling precedent for regulatory overreach. Dealers emphasize that clearer, more consistent guidelines would help ensure compliance without stifling marketing innovation.
Enforcement Action #4: Discriminatory Practices
(August 16, 2024)
On August 16, the FTC’s scrutiny extended to an automotive group, alleging that the dealership charged Black and Latino customers higher interest rates compared to white customers. The FTC’s press release emphasized its zero-tolerance policy: “Discriminatory practices have no place in the auto market.”
This case, however, highlights broader tensions. Dealers assert that interest rate discrepancies often arise from credit score variations or third-party financing terms, rather than intentional discrimination. They argue that the FTC’s failure to account for these factors paints an incomplete and unfair picture. Moreover, the agency’s reliance on statistical analyses to identify disparities often ignores the individual circumstances of each transaction, leading to conclusions
While discrimination in any form is unacceptable, dealers question whether the FTC’s approach is overly broad, casting aspersions on standard industry practices without acknowledging nuances or providing clear, actionable guidance. For example, dealerships often rely on third-party lenders whose underwriting processes are outside their control. Dealers argue that these practices need to be examined holistically rather than through a narrow lens that disproportionately penalizes dealerships. Furthermore, the financial and reputational damage inflicted by such enforcement actions often exceeds the actual consumer harm, creating an imbalance that many in the industry view as unjust.
Enforcement Action #6: Deceptive Add-Ons December 19, 2024)
In December, an automotive group in Illinois faced allegations of “deceiving consumers through hidden fees and unnecessary add-ons.” The FTC claimed that the dealership sold products, such as extended warranties, without proper disclosure.
“Consumers deserve clear and honest disclosures about what they are being charged,” the FTC stated. Dealers, however, argue that the complexities of modern sales processes often leave room for interpretation. For instance, add-ons like extended warranties and service packages are often bundled as part of broader financing agreements, and the disclosure requirements can vary by state and lender. Critics of the FTC’s actions believe the agency’s focus on punitive measures overlooks opportunities for collaborative solutions that could improve industry practices without threatening the viability of businesses.
Enforcement Action #7: Overcharging and Misleading Pricing Claims
(December 27, 2024)
The year concluded with a joint action by the FTC and the Maryland Attorney General against a dealership on December 27. The dealership was accused of “falsely advertising low prices and then hitting customers with hidden fees,” according to the FTC’s press release. This case capped off a year of highprofile enforcement actions.
While the allegations highlight concerns about pricing transparency, dealers argue that the FTC’s readiness to pursue such cases aggressively ignores the operational challenges dealerships face, including the complexity of integrating manufacturer rebates, financing terms, and state-specific fees into advertised prices. These challenges, they say, are often compounded by ambiguous regulatory guidelines that leave room for interpretation.
An Industry Under Siege
The wave of enforcement actions in 2024 signals an aggressive shift in the FTC’s regulatory strategy, leaving many dealers feeling under siege. While the agency frames these actions as consumer protection measures, dealers argue that the enforcement climate has become excessively adversarial.
The financial toll of these actions is significant. From hefty fines and mandated refunds to operational disruptions and reputational harm, dealers face mounting pressures that could ultimately impact their ability to serve consumers effectively. Moreover, the broad language often used in FTC complaints leaves room for interpretation, creating uncertainty even among compliant dealerships. Dealers worry that the current enforcement environment undermines their ability to focus on innovation and customer satisfaction, both of which are critical to long-term success.
The Need for Balance
Dealers are calling for a more balanced approach to regulation — one that emphasizes education and collaboration over punitive enforcement. Many in the industry acknowledge the importance of consumer protection but argue that the FTC’s methods often fail to account for the practical realities of dealership operations.
“Regulations should be a roadmap, not a minefield,” one dealer remarked. Clear, consistent guidelines and a willingness to engage with the industry could foster an environment where both consumers and businesses thrive. Dealers also emphasize the importance of industry input in shaping regulations, noting that collaboration would lead to more effective and sustainable outcomes for all stakeholders.
Conclusion
The FTC’s heightened enforcement activity in 2024 has left an indelible mark on the automotive industry. While the agency claims to prioritize consumer interests, its actions have sparked widespread criticism for their adversarial tone and sweeping scope. Dealers argue that the FTC’s approach often fails to distinguish between willful misconduct and operational challenges, creating unnecessary conflict and harm.
As the industry braces for what may come in 2025, the call for a more collaborative regulatory ap -
on the cover
by Stephen Pallas TIADA Director of Marketing and Communications
The Texas auto industry is experiencing a dramatic shift with the move from paper temporary tags to metal plates. This change, driven by the need to curb widespread fraud and improve the vehicle titling process, promises to reshape the way dealerships conduct business. While the long-term benefits are expected to outweigh the short-term challenges, the transition brings its own set of hurdles that Texas dealerships
It’s crucial for dealers to act quickly and ensure that they are registered with webDEALER before the full implementation of metal plates takes effect. Without the system in place, dealerships may face major operational disruptions and penalties.
will need to address in the coming months.
Mixed Reactions Across the Industry
Initial reactions to the mandated shift to metal plates have been varied among Texas dealers. While the overwhelming majority understand the need to tackle the fraud problem associated with paper tags, many expressed concerns about the logistics of the transition and how it would
impact their day-to-day operations. Tyler Simmons, a dealer from Abilene Used Car Sales in Abilene, shared his skepticism early on, saying, “How are they going to make this work?”
Mark Jones, a dealer from MCMC Auto (Fort Worth) and a TxDMV Board member, echoed these sentiments. “As a dealer, none of us like change,” he admitted. “But we all know the position that the temporary tags were created for the theft in the industry. These changes are necessary, and it’s in the best interest of all involved.” He stressed that while dealers might not embrace change readily, they must recognize its importance for improving the industry and protecting consumers.
Preparing for Metal Plates
The implementation of metal plates will require dealerships to adjust several aspects of their operations. One of the most immediate concerns for dealers is the management and distribution of metal plates. Cesar Stark, a dealer from S&S Motors in El Paso, explained, “When you’re making a sale and you go to the lot, you might not have enough plates or run out during a busy weekend, and that’s a big concern for us.”
To mitigate these potential disruptions, dealers are considering how to best manage their stock of metal plates. They may need to invest in storage systems to ensure that the plates are kept in secure locations, as metal plates can become targets for theft if not handled carefully. The increased demand for plates will also require dealers to be diligent about tracking their inventory and ensuring that no plates are unaccounted for.
Beyond inventory concerns, dealers will also need to provide training for their staff to ensure proper handling and storage of the metal plates. This includes
“If you’re not up-todate with the new program, then you won’t have any license plates to put on the car.”
“When you’re making a sale and you go to the lot, you might not have enough plates or run out during a busy weekend, and that’s a big concern for us.”
Cesar Stark S&S Motors, El Paso, TX
educating staff on how to accurately manage plate inventories, properly enter data into the webDEALER system, and adhere to security protocols. The proper handling of metal plates will be critical for dealers to stay compliant with state regulations and avoid costly mistakes.
“I’ve been collecting information from TIADA and TxDMV,” Stark said. “Additionally, I’ve been training my staff, having meetings with them to tell them how the situation is going to work come July 1st.”
A Critical Component in the Transition
A key part of the transition to metal plates hinges on the adoption of the webDEALER system. As Mark Jones emphasized, “If you’re not on up-to-date with the new program, then you won’t have any license plates to put on the car.” The webDEALER system is a critical platform that will allow dealers to manage the issuance and tracking of metal plates efficiently. Dealers who are not registered and trained to use webDEALER could find themselves unable to fulfill their legal obligations after the transition.
TIADA and TxDMV have been working diligently to support dealers in adopting webDEALER by hosting training sessions and webinars to guide dealers through the system’s functionalities. However, a lingering issue is the number of independent dealers who have yet to adopt the system. Mark Jones pointed out that some dealers may be unaware of the necessity of webDEALER or feel disconnected from the resources that TIADA provides. “I think part of it is just they don’t know,” Jones explained. “They’re not plugged in or involved with the resources that could make the transition easier.”
Mark Jones
TxDMV Board member MCMC Auto, Fort Worth, TX
It’s crucial for dealers to act quickly and ensure that they are registered with webDEALER before the full implementation of metal plates takes effect. Without the system in place, dealerships may face major operational disruptions and penalties.
Keeping Clients Informed and Satisfied
Despite the changes, most dealers anticipate minimal disruption for customers. However, clear communication with clients about the new metal plate system will be essential to ensure a smooth transition. Customers may have questions about why the change is happening, how it will affect their vehicle registration process, and how it will impact the cost of temporary tags.
To address these concerns,
”
dealers will need to take a proactive approach to customer service. Providing customers with clear, easy-to-understand information about the shift to metal plates and explaining the benefits of the change will be vital to maintaining trust and customer satisfaction.
“I think the biggest challenge will be the first few days or even the first week of adapting to something new,” Jones said. “But overall, I don’t see it having a major impact on our ability to sell cars quickly. In fact, consumers might actually prefer the metal plates, as they won’t have to come back to pick them up like they did with the temporary tags.”
Simmons echoed this sentiment. “I think for customers, it’ll actually be easier,” he said. “They don’t have to worry
Tyler Simmons Abilene Used Car Sales, Abilene, TX
about this piece of paper inside of a clear plastic bag staying on the back of their vehicle through car washes, through bad weather, through someone just deciding to rip them off.”
The Core Benefit of Metal Plates
One of the primary motivations behind the transition to metal plates is to curb the significant fraud associated with paper temporary tags. Paper tags have been increasingly used for illicit purposes, such as evading tolls, committing crimes, or avoiding vehicle registration. The shift to metal plates will make it much more difficult for criminals to counterfeit tags, as metal plates have built-in security features that cannot be easily replicated.
Chris Donnelly, a dealer from Your Car Store in Conroe, expressed his support for the change, stating, “The fact that you can’t just photocopy a metal plate and put it on someone’s car is a game-changer. Law enforcement can immediately recognize whether a plate is legitimate or not. This is a big win for our industry and for the public.”
Simmons added, “I believe switching to metal plates will reduce the fraud out there. There’s nothing that I think the state can do to completely eliminate it. You’re still going to have the bad actors, but their volume of illegal activity will be reduced.”
the same page and prepared for the change.
Chris Donnelly advised his fellow dealers to embrace the change rather than resist it. “Our industry will always change. Sometimes the changes are hard, but if we work together and stay involved with organizations like TIADA, we can face these challenges head-on,” he said.
Dealers are encouraged to stay engaged with TIADA and TxDMV throughout the transition process. Having access to the latest information, resources, and training will make it easier to adapt and ensure compliance with the new system.
“Our industry will always change. Sometimes the changes are hard, but if we work together and stay involved with organizations like TIADA, we can face these challenges head-on.”
Chris Donnelly
Your Car Store, Conroe, TX
While fraud may never be completely eliminated, the metal plate system will dramatically reduce the opportunities for fraudulent activity. Dealers are hopeful that this shift will help restore consumer confidence and improve public safety. By creating a more secure system, the industry will be better positioned to serve its customers and protect its reputation.
Collaboration and Strategic Planning
The transition to metal plates is a significant undertaking, and its success will depend heavily on cooperation and collaboration among dealers, the TxDMV, and other key stakeholders. Open lines of communication will be essential to ensure that everyone is on
A New Era for Texas Dealers
The move to metal plates represents a fundamental shift in the Texas auto industry. While challenges are certainly present, the long-term benefits, including a reduction in fraud and a more efficient titling process, are substantial. To successfully navigate this transition, Texas dealerships must be proactive in preparing for the changes ahead. By embracing the webDEALER system early, investing in staff training, and staying informed about the latest developments, dealerships can position themselves for success in the new era of metal plates.
This change, though difficult in the short term, promises to strengthen the industry, improve the customer experience, and reduce criminal activity in the long run. Through continued collaboration, dedication to compliance, and a commitment to innovation, Texas dealerships will be wellequipped to thrive in this new chapter of the state’s automotive landscape.
“Embrace change. In our industry, change is progress,” as Donnelly emphasized. “We have to move this industry forward.”
New Member $499 Good through 12/31/2025. Renewing Member $499 Good through 12/31/2025. Dues include NIADA and local chapter membership where applicable.
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Relax with the family and turn work into pleasure.
Recruit 10 new members by June 30th, 2025 and you will receive your hotel room for free (up to two nights) at the Gaylord Texan Resort & Convention Center in Grapevine during the TIADA conference.
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Recruit 5 new members by June 30th, 2025 and you will receive one free registration to the 2025 TIADA Conference & Expo.
Have a cup of coffee on us. Actually, have 4 cups. Recruit a new member and we will send you a $10 gift card — and we’ll do that for the first 4 members you recruit. 1
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Featured Courses
TIADA designed and implemented some important on-demand courses to give dealers quality educational programs they can access throughout the year. These programs are essential for dealers to stay compliant. They offer flexibility, so you can complete them according to your schedule. These courses are designed for any dealers with questions related to various regulations that affect their businesses.
Repossession 101: What You Need to Know
In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of self-help repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.
$ 98 for two 1-hour videos
The Basics of Transferring Titles *
Want to avoid having your title transfer paperwork rejected at the tax office? This online course is designed to walk you through the title transfer process and is best suited for people new to transferring titles or those who want to brush up on the basics. This course has been reviewed for accuracy by the Tax Assessor-Collectors Association of Texas.
$ 48 for the course * Also available in Spanish
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10 Skills Every Dealership Marketer Needs in 2025
by Kathi Kruse Kruse Control Inc.
To succeed in 2025 and beyond, dealership marketers must possess a diverse set of skills. Here’s a list of essential competencies every dealership marketer needs to not only survive but thrive in this rapidly changing landscape.
As customer expectations continue to evolve, dealerships must adapt once again to stay top of mind. This includes rethinking not only their marketing strategies but also how their marketing departments are structured and staffed.
Today’s dealership marketers must navigate a labyrinth of platforms, create engaging content, and deliver results across channels — all while staying ahead of evolving trends. In 2025, the ability to innovate and adapt isn’t just a competitive advantage; it’s the key to survival.
1 Website Design and User Experience (UX)
Your website is your digital storefront and often the first interaction customers have with your dealership. A strong website should showcase your inventory, encourage inquiries, and make appointments easy to book. Marketers must ensure the site is fast, user-friendly, secure, and optimized for search engines. It should also answer buyers’ questions and seamlessly guide them toward the next step in their journey. A solid grasp of website design and UX principles is now a baseline requirement.
2 Advanced Writing and AI-Supporte d Copywriting
Exceptional writing is vital in automotive marketing, from creating engaging website content to crafting effective social media posts, emails, ads, and video scripts. Equally important is understanding search engine optimization (SEO) to ensure visibility. In 2025, mastering AI tools like ChatGPT for content creation is a game-changer. Marketers who learn to write effective AI prompts can save time and elevate the quality of their copy.
3 Strategy Deployment and Goal Setting
Successful marketing starts with clear goals and a well-thought-out strategy. Without it, even significant ad spends can yield disappointing results. Dealership marketers must take the lead in mapping out strategies, using data to define clear objectives and metrics.
A large auto group contacted me recently with an urgent challenge. They had been bootstrapping their efforts and getting poor results. It was clear that a digital marketing strategy was sorely needed. Why? It saves a lot of time and money! They had tried Google and Facebook ads but said, “Because we didn’t have a strategy, we didn’t really know what to expect. In the end, we spent a lot and got very little.”
Many dealership marketers jump to tactics first. Some simply acquiesce to the boss’ demands (“Get me more sales!”), and rarely inject their own expertise to uncover the specific metrics to achieve success. Always map out a strategy for your business, marketing or anything else. Just like GPS on your phone, you need to know where you’re going and the best route to get there, in order to arrive at your destination on time and in great shape.
4 Data Analysis and Reporting
With the abundance of data generated by digital marketing, the ability to analyze and interpret it is crucial. Marketers need to turn metrics like clicks, inquiries, and conversions into actionable insights that guide decision-making. Creative campaigns are essential, but without data analysis, their effectiveness remains unknown. When hiring or promoting an in-house marketer, dealers and GMs must look for candidates who demonstrate a balanced skill set — combining creativity with strong data analysis capabilities. This mix ensures they can craft compelling campaigns while effectively measuring and optimizing their performance.
5 Social Media Expertise
Social media has grown up, graduated college, got married, had kids and is staring down the barrel at middle age.
As a vital component of dealership marketing, dealership marketers must understand each social media platform’s nuances, create compelling stories, and manage community engagement.
The rise in toxicity and polarizing interactions on Twitter has driven users to explore alternative social platforms that prioritize healthier, more constructive online communities. This migration has spurred the emergence of innovative platforms offering unique features, moderated environments, and niche focuses to meet the evolving needs of digital users.
6 Adaptability
The digital landscape evolves rapidly and often. Trends shift rapidly, customer behaviors evolve, and unexpected challenges arise. For dealership marketers, the ability to pivot and adapt is the ultimate competitive edge.
While it’s impossible to predict every future twist and turn, setting up a marketing strategy that prioritizes flexibility can make all the difference. By building adaptability into your plans from the start, you’ll be better prepared to respond effectively to changes and seize new opportunities.
Navigating the digital-first world we live in can be treacherous. Embrace the discomfort of trying new strategies and approaches to attract and engage customers. Staying flexible and open to change isn’t just a survival tactic — it’s the key to thriving in an everevolving marketplace.
7 Video Production
Video has cemented itself as a cornerstone of dealership marketing. From managers to the marketing team and sales staff, creating high-quality video content is no longer optional — it’s a best practice for connecting with customers.
Engaging, informative videos resonate with audiences and build trust. For inspiration, look no further than my friend Tim Bartz at Long McArthur Ford, whose YouTube channel boasts over 68,000 subscribers. — a testament to the impact of strategic video marketing.
Quick Tips for Professional Video Quality
Before you dive into filming, spend a moment testing your setup. A quick 30-second test video can help ensure optimal sound and lighting. These simple tweaks make a big difference:
• Lighting: Outdoor shoots are great, but always position the sun behind you for a well-lit subject. Cloudy days provide even lighting, though avoid overly dark skies.
• Sound: Poor audio can ruin even the most authentic video. Invest in a quality microphone, like a Blue Snowball or Yeti for desktop setups. For mobile shooting, compact microphones for iPhones and Android devices are game-changers for on-the-go recording.
Essential Video Production Considerations
To produce videos that captivate your audience, focus on these key elements:
• Composition: Does everything in the frame look balanced and intentional?
• Subject Matter: What message do you want viewers to take away?
• Background: Ensure the set complements your subject without distractions.
• Stability : If using a phone, a tripod or stand is a must for steady footage.
• Length: Keep videos concise and engaging; attention spans are short.
• Script: Jot down key points or use a full script if it helps you stay on track.
With a little planning and the right tools, dealership marketers can leverage the power of video to engage customers, showcase inventory, and drive sales like never before.
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Marketing Automation Proficiency
Automation tools streamline marketing efforts by simplifying repetitive tasks and optimizing campaigns on multiple channels. From digital retailing solutions
to advanced analytics, leveraging these tools is essential for scaling operations and maintaining efficiency in today’s fast-paced environment.
The marketing automation industry grows exponentially each year. As marketing automation tools continue to improve and multiply, it won’t get any easier to navigate in 2024. Shrewd marketers command the use of specific tools while also investigating and re-evaluating to discover new and enhanced solutions.
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Decisiveness in Customer Interaction
Humans are predictably irrational, readily sidetracked and constantly making decisions. And the more decisions we make in a given day, the worse we get at it. Decisiveness is a cornerstone of great marketing and effective leadership.
In today’s marketing landscape, success isn’t just about what you put out to attract customers — it’s about how you respond when they engage with your content. Many retailers still maintain a barrier between themselves and their audience, a holdover from the days when advertising was purely a one-way broadcast. Back then, there was no need for strategies that foster direct engagement or delight customers online. However, dealership marketers who take decisive steps to break down this barrier are setting themselves up for long-term success.
Connecting with customers on a human level is the key to winning in 2025. Doing so requires decisiveness in every interaction, often demanding quick thinking, confidence, patience, empathy, gratitude, and courage. These traits not only enhance decision-making but they foster stronger relationships with car buyers, leading to greater engagement and happier customers.
And speaking of empathy…
10 Empathy
Putting yourself in your customers’ shoes and seeing things from their perspective helps a great deal with understanding customer needs, creating meaningful marketing, and ultimately satisfying their queries enough to get them to act.
Empathy is also the key to outstanding customer experience. As social media has become more integrated with how we communicate, and how your customers prefer to communicate with you, retailers and dealership marketers must develop protocols to be able to successfully address customers’ needs and inquiries.
In tense crisis situations, such as comments sections or online reviews, where there’s an audience watching, a dealership marketer may not always be able to deliver a solution but she/he can always deliver empathy.
Empathy is feeling with people.
When you put yourself in your audience’s shoes, it becomes easier to acknowledge struggles and think critically about the best solutions.
How Ready Are You for Marketing in 2025?
The skills required of dealership marketers have never been more varied or demanding. To navigate the complexities of today — and prepare for what lies ahead — marketers must continuously elevate their skill sets.
Selling vehicles is challenging right now, but it’s not the first time the industry has faced tough conditions. Staying competitive and maintaining market leadership will require strategic adjustments to past approaches. Ensure your marketing team is equipped with the expertise needed to deliver on your organization’s vision and achieve its goals.
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The Power of Membership.
Since 1944, TIADA has been and continues to be the only statewide organization for independent automobile dealers. You are connected with more than one thousand independent automobile dealers across Texas, who are all committed to creating a better image for the industry, while protecting our rights as business owners and increasing our bottom line. Individually, you are strong, but together, as an association, we are powerful .
Get involved with the association’s advocacy efforts, find out what policies may be affecting used car dealers. Have a say, make a difference.
Join other successful dealers. Membership dues include full membership to TIADA and the national association, NIADA.
Connect with industry leaders. Attend the annual TIADA Conference & Expo, access the member-only online directory.
Education offerings designed with you in mind, your personal copy of the Texas Dealer magazine, twice monthly industry updates, exclusive access to industry articles—a wealth of knowledge at your fingertips.
The perks are many, starting with over $10,000 in auction and vendor savings through TIADA’s mobile app. Redeem just a few auction discounts and you’ve basically covered the cost of membership for the year.
Get quick answers on industry, regulatory or compliance issues.
What Lenders Look for in a Lending Partner: A Guide for Dealerships
by Stephen Pallas TIADA Director of Marketing and Communications
For independent dealerships, securing reliable lending partnerships is crucial to offer competitive financing options and attract a broader customer base. Whether you specialize in prime or subprime loans, a strong partnership with a lender can significantly impact your business growth, sales volume, and overall customer satisfaction. But what exactly do lenders look for when evaluating a dealership as a potential lending partner? The answer is multifaceted, with lenders considering various factors that go beyond simply the number of loans originated. Let’s break down the key criteria that lenders prioritize when assessing a dealership.
“The most important quality for a dealership to demonstrate is a commitment to setting customers up for success,” said Alfred Reveles of Car Financial Services. “It’s crucial for dealers to consider several factors carefully.”
Todd Yates, of Primalend Capital Partners, echoes this sentiment and also emphasizes reliability in a dealership’s business model and operations. “The best
dealerships have a clear plan and execute that plan consistently,” Yates said. “Consistent sales numbers, consistent loan performance, employees that are consistently trained and understand the plan.”
Reputation and Trustworthiness
When it comes to forming lasting relationships with lenders, reputation is everything. Lenders want to partner with dealerships that have a proven track record of reliability, ethical practices, and customer satisfaction. A strong reputation isn’t just about positive online reviews—lenders will scrutinize the dealership’s history, any complaints filed against it, and its adherence to industry standards. Many lenders conduct background checks to ensure a dealership hasn’t faced legal issues such as fraudulent practices or regulatory violations.
“Professional lenders with quality reputations want to do business with similar companies. Most representatives will conduct interviews and research your dealership before signing you as a partner, according to Used Car News.
Local Chapters
CORPUS CHRISTI
G.R. Moore
The Car Shack
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
EL PASO
Cesar Stark
S & S Motors
Meeting – 3rd Friday (Monthly)
FORT WORTH
Jerry Smith
H J Smith Automobiles
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
HOUSTON
Chris Donnelly
Your Car Store
Meeting – 2nd Tuesday (Monthly)
SAN ANTONIO
Nory Pakravan
210 Auto Credit
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
Maintaining a good standing is essential. Dealerships should focus on building trust through transparency in their dealings and by addressing any disputes promptly and professionally. If your dealership has received praise for customer service, boasts good feedback from previous clients, and stays in good standing with organizations like the Better Business Bureau (BBB), it will be far more appealing to lenders who value long-term, reliable partnerships.
and GAP providers to ensure those services are paid for, and we validate the legitimacy of the warranty and GAP companies they use.”
Dealerships must diligently follow regulations such as full disclosure of loan terms, including APRs, repayment schedules, and other important terms that affect the borrower’s understanding of the loan. Lenders will look for dealerships that have a robust process in place to ensure all paperwork is clear, accurate, and
Lenders are looking for partners who are financially stable, compliant with regulations, efficient in their operations, and who have a clear strategy for risk management.
Compliance with Regulations
Lenders expect their partners to be fully compliant with both state and federal regulations. Failure to meet legal requirements can expose both the dealership and the lender to significant risk, including legal and financial penalties. Regulations like the Truth in Lending Act (TILA), the Fair Lending Practices Act, and others that govern auto sales and financing are essential to a lender’s due diligence process.
“We take several steps to ensure our dealership partners remain compliant with both state and federal regulations in the lending process,” said Reveles. “This includes verifying that APRs are accurate and validating that the contracts they use comply with state requirements. We also confirm that dealers use the correct contracts for warranties and GAP coverage. Additionally, we request proof of payment to warranty
in full compliance with the law. Ensuring that your dealership follows state-specific regulations, such as those set by the local Department of Motor Vehicles (DMV), is equally important.
Chris Barry of Agora Data notes, “Subprime lenders are held to a high standard, as are dealers, to ensure consumers are treated fairly and in compliance with regulations. This is not optional and a critical part of our dealer partnership considerations.”
Lenders have strict guidelines for how they evaluate a dealership’s compliance. “During our underwriting and due diligence, we review all of the documents in the deal file for consistency, completion, and compliance,” Yates said. “We also engage a third party compliance expert to perform a full audit including a deal file review, check the website for trigger terms or other consumer protection violations, and review of their corporate structure, and HR policies.”
Dealerships that can prove their commitment to compliance not only avoid costly penalties but also gain the trust of potential lending partners who prioritize reducing legal risks.
Financial Stability of the Dealership
Lenders prefer working with dealerships that demonstrate strong financial health. A dealership that is financially stable is more likely to make sound decisions, both in terms of loan origination and loan repayment. Lenders will often request financial statements to evaluate your dealership’s cash flow, profitability, and overall financial stability. They will look at your balance sheets, income statements, and operating expenses to assess whether you can sustain operations and meet future obligations.
“Each lender has specific requirements for dealerships,” according to KGI Dealer Solutions. These may include “a minimum number of monthly financed sales… specific customer credit profiles they work with (e.g., subprime, prime, or no credit) …[and] dealer agreements outlining fees and processes.”
“With margins being squeezed in all dealership revenue channels, an Agora dealer relationship relies on an innovative dealer who embraces building wealth, equity on their balance sheet, and a long-term growth focus,” stated Barry. “Successful dealers believe in a
transformational approach, not transactional, to financial success.”
Having a solid financial profile isn’t just about generating sales; it’s about managing expenses, mitigating financial risks, and ensuring that your business can weather market fluctuations. Dealerships that are financially sound are better equipped to handle volatility in the marketplace, which is a key selling point for lenders looking for a long-term, dependable partnership.
Loan Volume and Sales Performance
Lenders are interested in working with dealerships that can originate high volumes of loans. The more loans a dealership generates, the more profitable the partnership is for the lender. High sales numbers can help lenders meet their revenue goals, making your dealership an appealing partner. However, it’s not just about volume; consistency is just as important.
Lenders will also evaluate the dealership’s sales performance over time. Metrics such as inventory turnover, sales growth, and market share within your region will be key indicators of your dealership’s stability. Dealerships that offer a diverse selection of vehicles, catering to a wide range of customers, will naturally attract more loan opportunities and provide lenders with the volume they desire.
Efficient Operational Processes
Efficiency is highly valued by lenders. Fast, accurate processing of loan applications, credit checks, and approval processes ensure that both the lender and the customer experience a smooth transaction. Lenders want to know that your dealership has systems in place that allow for quick turnaround times and minimal error rates. A streamlined loan application process can help lenders manage costs, reduce the risk of errors, and improve the overall customer experience.
Automation tools, digital document management systems, and customer relationship management (CRM) software can help ensure that all paperwork is completed in a timely and efficient manner. By minimizing operational inefficiencies, your dealership can not only enhance its internal operations but also foster stronger partnerships with lenders
who rely on fast, accurate data to make informed lending decisions.
Embracing Technology and Data Integration
In today’s digital age, lenders are increasingly focused on how dealerships leverage technology. Digital platforms that allow for real-time loan applications, instant credit checks, and electronic signatures can speed up the entire financing process. Lenders are looking for dealerships that embrace this kind of technology to improve both operational efficiency and the overall customer experience.
Furthermore, lenders are keen on working with dealerships that can seamlessly integrate their data systems with the lender’s platform. Whether it’s sharing customer credit information, sales data, or loan origination details, smooth data integration ensures that both parties have access to accurate, up-to-date information. For lenders with a focus on data
analytics and portfolio management, this is a crucial element in making the lending process as streamlined and effective as possible.
Risk Management
Lenders are deeply concerned with minimizing risk. “A solid risk management strategy can reposition your dealership, enhancing its ability to mitigate financial risk, increase growth opportunities, and optimize profitability,” said Barry.
“The effectiveness of underwriting and collections is demonstrated in the portfolio performance numbers,” Yates said. “Lenders support those dealers who have clearly defined underwriting and collections guidelines that keep their delinquency and defaults to a minimum.”
Long-Term Partnership and Strategic Alignment
Lenders often prefer working with dealerships that demonstrate
long-term stability and a strategic alignment with their own goals. Lenders look for dealerships that not only produce high loan volumes but also share the same values in customer service and operational efficiency. A dealership that is committed to providing exceptional customer service and who is proactive in finding financing solutions for its clients will be far more attractive to a lender.
Additionally, long-term partnerships are highly valued. Lenders want to form relationships with dealerships that can adapt to the changing marketplace and continue growing over time. By showing commitment to mutually beneficial collaboration, dealerships can secure better terms and more favorable loan conditions in the future.
“Dealers who are focused on transforming the retail automotive industry and building a long-term strategy for sustainable wealth and operating excellence are the best dealer partners,” Barry shares.
Conclusion
Building strong, lasting relationships with lenders is essential for any dealership that wants to grow its business. Lenders are looking for partners who are financially stable, compliant with regulations, efficient in their operations, and who have a clear strategy for risk management. By demonstrating these qualities, dealerships can not only attract more lending partners but also secure better financing terms, which ultimately benefits both the dealership and its customers.
By focusing on building a solid reputation, integrating technology, maintaining financial stability, and ensuring effective risk management, dealerships can position themselves as valuable, reliable lending partners. In doing so, they create a foundation for long-term success in the highly competitive automotive sales and financing market.
Please Welcome Our Newest TIADA Members
DEALER MEMBERS
CarMax – Alliance
Michele Mardigian
CarMax – El Paso West
. 2800 Citadel Drive, Forth Worth, TX 76177
Michele Mardigian 6101 S Desert Blvd, El Paso, TX 79932
Generations Auto Center
Juan Macias 2011 Rigsby Avenue, San Antonio, AL 78210
Johnny’s Auto Center
Juan Gutierrez
Martin Motors LLC
. 3413 N . La Homa Rd, Mission, TX 78574
Erica Soefje 5603 Kenwick St Ste 103, San Antonio, TX 78238
Next 1 Auto
Jose Perez Miranda 5251 Burnet Rd, Austin, TX 78756
Southwest Fleet Sales
Elizabeth Smith 1601 Osprey Drive Suite 105, DeSoto, TX 75115
Specialty Motors of Austin LLC
Jorge Ramirez .
. 3400 Ed Bluestein Blvd, Austin, TX 78721
Texas Car-Mart, Inc – San Marcos
Debbie Breznik 2701 S Interstate 35, San Marcos, TX 78666
Texas Car-Mart, Inc. – Austin
Debbie Breznik 6809 S Interstate 35, Austin, TX 78744–4815
resource guide
The TIADA Website: txiada.org
Members can log in with their username/ password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.
License Renewal Certificate
TexasDealerEducation.com
Texas Department of Motor Vehicles
888.368.4689
txdmv.gov
Office of Consumer Credit Commissioner
800.538.1579
occc.texas.gov
comptroller.texas.gov
817.640.3838 niada.com
behind the wheel
Protecting Your Interests During and After the Legislative Session
As Texas kicks off its 89th Legislative Session, the team at TIADA is laser-focused on ensuring that the voices of independent auto dealers are heard loud and clear at the Capitol. This session is a critical time for our industry as lawmakers deliberate on policies that could directly impact the way dealers do business across the state. TIADA is committed to advocating for you, addressing the issues that matter most, and protecting your interests!
TIADA’s Day at the Capitol serves as a reminder of how impactful dealer engagement can be. Those who participate not only help shape conversations around key legislative matters but also play a vital role in building relationships with lawmakers. These relationships are essential to ensuring our industry’s concerns are understood and taken seriously.
But the work doesn’t stop there. As we look ahead, TIADA is gearing up for the 2025 TIADA Conference & Expo — a premier event designed to provide dealers with the tools, knowledge, and networking opportunities needed to not only survive, but to thrive. This year’s conference promises an exceptional lineup of speakers, exhibitors, and sessions tailored specifically
by John Frullo
TIADA EXECUTIVE DIRECTOR
to the challenges and opportunities facing Texas dealers today. Mark your calendar and prepare to join us for what promises to be a transformative event for you and your business. For more information, please visit conference.txiada.org.
In addition to the conference, we’re excited to announce the development of new educational programs set to launch this spring. These initiatives are being crafted to address the evolving needs of our members, equipping dealers with actionable insights and strategies to navigate the complexities of our industry. Whether you’re seeking compliance guidance, operational tips, or best practices to enhance your dealership, TIADA’s educational offerings will deliver valuable resources to help you.
Your association remains steadfast in its mission to represent and support independent auto dealers across Texas. Together, we can continue to strengthen our industry, advocate for positive change, and build a bright future for dealers statewide.
Stay tuned for updates on upcoming events, legislative developments, and educational opportunities. For questions or additional information, please contact us at any time.
TIADA’s Day at the Capitol serves as a reminder of how impactful dealer engagement can be.
