Texas Dealer January 2019

In This Issue: – Michael W. Dunagan on Fraudulent Mechanic’s Lien Claims – Top 5 TIADA Compliance Tips of the Year – 2018 Market Survey of Car Buyers

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

Volume XIX

/ Issue 1

/ J a n u a r y 2 019

TexasDealer contents

4 Officers’ Message

by Greg Zak, TIADA Chairman of the Board

SECRETARY Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 Office: 817.703.7973 Email: mjones@mcmcauto.com

11 Legal Corner: Fraudulent Mechanic’s Lien Claims Still Concern Car Creditors

TREASURER Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net

12 Upcoming Events

VICE PRESIDENT, WEST TEXAS (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 Email: bkalivoda@gofiestamotors.com

17 Top 5 Compliance Tips

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

by Michael W. Dunagan

15 TIADA Member Application

by TIADA Staff

22 On The Cover: Growing Our Legislative Footprint

by TIADA Staff

29 2018 Market Survey of Car Buyers

by Somir Paul

33 TIADA Conference and Expo 34 TIADA Auction Directory 2019 36 TIADA Scholarship Application 37 New Members 37 Local Chapters 38 Behind the Wheel

by Jeff Martin

2019 Auction Coupons Now Available!

The 2019 auction coupons are now available on the TIADA Auction App! See page 34 for a complete list of participating auctions.

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

officers’ message

by Greg

2019 Resolutions

W

ell, it’s that time again — time to make those New Year’s resolutions... NOT! Let’s not kid ourselves by making resolutions that won’t be kept by the end of January. But we CAN make a resolution that is guaranteed to make you money. Now that I have your attention, rather than making the typical resolution to lose weight or exercise, let’s make a resolution that can pay big dividends in your business.

These last several years have been extremely difficult.

Whether you are a BHPH dealer or a retail dealer, as a whole, we are still challenged by the lack of customers and the quality of the customers. I find myself constantly changing and tweaking our business model in order to find the magic formula to get back to where I once was with regard to sales and portfolio size.

Last year, I was on a quest to cut costs. This is a resolution that is guaranteed to make you money: work on cutting your costs. Sounds simple, right? Just like losing weight or exercising — simple. You can cut costs by one of two methods: using either a macheté or a surgical knife. Both will work in the end; the question is, how much do you need to cut? Last year, I made the decision to use the surgical knife approach. I had already tried the machete approach a few years before.

For starters, look at every expense category in your profit and loss statement. Since we’ve just finished last year, you should have a good picture of your yearly expenses. In this exercise, everything is subject to review of the knife and nothing can be sacred. For example, let’s take something as basic as your electric bill. You’re probably thinking, “I can’t cut my electricity. I need power in order to run my business.” If so, I agree. But take a closer look at the actual

Zak

ixon Motors D (Houston) TIADA CHAIRMAN OF THE BOARD

expense. I recently changed service providers and by doing so, I reduced my bill by $1,000 a month.

Use this strategy to examine all of the expenses listed on your profit and loss statement. Every time I go through this exercise, I find many items that I can find a way to save money or even eliminate and reduce the expenses for the year.

Just recently, we cut several outside technology and finance services. In so doing, we saved about $3,000 a month, and we haven’t even missed those services. Nowadays, every time you speak with vendors about their services, they want to charge between $1,000 and $2,000 a month.

Don’t get me wrong — there are a lot great technology platforms and services out there that can add to your bottom line. However, you would be wise to keep a close eye on those services and make sure you are getting your money’s worth. When I go through this exercise, every outside service we use is subject to review for being cut. Sorry vendors, but in today’s challenging environment, we as dealers must stay vigilant in order to maintain a profitable bottom line. The standard review period for any new marketing or technology platform we add is 60 to 90 days. If we don’t see results during that time period, the service is cut. However, in the interest of fairness to the vendor and to yourself, make sure you are doing your part and implementing the service during that trial period to achieve results.

Another way to analyze your expenses is to do a yearly comparison. Take your fiscal year end 2017 and 2018 and compare the two periods. Go through every expense category to see if you have increased your expenses in any area. Just know it is ok to have increased your expense in an area, so long as you have received added benefit in that area

...rather than making the typical resolution to lose weight or exercise, let’s make a resolution that can pay big dividends in your business.

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which contributed to an increase in sales or profitability.

But, if you have increased your expenses in an area and you’ve not had a direct bottom line benefit, then you need to look at that expense to see why you spent more in 2018 than you did in 2017.

If you borrow money in your business — either for flooring vehicles or financing your receivables — ­ your borrowing cost increased 1% in 2018. So if you borrowed $500,000 in 2018, your interest expense increased $5,000 for the year. If you borrowed $1,000,000, then your expense increased $10,000 for the year. You get the picture.

With rising interest rates, borrowing costs increase. In order to maintain the status quo, you will need to increase your revenue by the same amount or find another area to cut a corresponding expense. Otherwise your bottom-line just shrunk by the increase in interest expense. FYI interest rates for 2019 are expected to increase another 50 to 75 basis points. Get ahead of the curve now by cutting some expense or figure a way to increase your revenue to offset the increased interest expense.

I know we’ve been talking about cutting expenses, but let’s do just a quick look at the revenue side for a minute.

I can show you a few things you can do that can add to your bottom line without increasing the number of units sold, adding any additional personnel or even adding $1 of expense. First, have you increased your doc fee to $150 from the prior amount of $50? If you haven’t already taken advantage of this simple change call the TIADA office for more information.

Now, let’s switch gears and look at an item that can add profit to your bottom line. A lot of dealers will price their cars at $10,588 or $7,988, meaning their price is always ending in “88.” Whoever came up with this marketing strategy is not very smart because that small detail is costing you a lot of money. Change your price to end with “99.” I promise, the customer is not going to look at

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the 99 at the end of the price and be spooked because it doesn’t end in 88.

Third, look at changing your interest rate. Since we are having rising borrowing costs, look to increase the rate you charge your customer by a half or whole point. A little caution here first. Make sure you stay within the state regulations as far as interest rates are concerned. If you need some help in this area, call TIADA. Let’s take, for example, a dealer who sells just 15 cars a month and see what these changes can have on his bottom line: • Doc fee increased to $150 from $50: Increase equals additional $1500 monthly or $18,000 annually • Sales price changed to end in 99 instead of 88: Additional $165 monthly or $1980 annually • Rate increase by 1/2 point on $10,000 amount financed contract: Additional $1,275 monthly and $15,300 annually In this scenario, the monthly bottom line would increase by $2,940 and the yearly bottom line would increase by $35,280. The dealer who sells just 15 cars a month can add $35,280 to his/her bottom line without adding any additional personnel or expense in order to achieve this increase in profitability. Not bad.

One last bit of advice: Never pass up the chance network with a fellow dealer or industry leader. I have received countless tips and ideas from fellow dealers and industry leaders when talking after a workshop, conference or 20 Group meeting. This time has been extremely valuable over the years and has saved me a lot of money. Just recently our very own Mike Dunagan and I were visiting when he mentioned something to me that I was unaware of, and making this change in my business will save me $60,000 a year in expenses while at the same time increasing my cash flow by $200,000. Not bad for a few minutes of my time with a really great guy. Thanks once again, Mike.

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e-Tag Supplies —

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2019

TIADA

Day

at# the Capitol make

your

voice

Heard Tuesday, February 12 Register now! Visit www.txiada.org and under “EVENTS” select “TIADA Day at the Capitol” to reserve your spot today.

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legal corner

Fraudulent Mechanic’s Lien Claims Still Concern Car Creditors Dealer Question: We’ve located one of the vehicles we’ve been looking for in a mechanic shop. The owner tells us that, to get our vehicle back, we must pay the repair charges he claims were authorized by our customer.

Can he hold the vehicle despite our prior recorded lien?

Answer: In Texas, a valid mechanic’s possessive lien supersedes a perfected security interest in a vehicle. The key word here is “valid.”

When our state’s constitution was written and approved by voters in 1876, one of the things considered important enough to include was a “Mechanics, Artisans, and Material Lien” provision. Since our current constitution predated the invention of the motor vehicle, the lien was probably intended to cover the labor of blacksmiths and buggy makers and similar types of businesses.

Article 16, Section 37 of the Constitution of the State of Texas of 1876 (there was an earlier constitution approved in 1845, but was replaced after the Civil War) provides: Mechanics, artisans and material men, of every class, shall have a lien upon the buildings and articles made or repaired by them for the value of their labor done thereon, or material furnished therefor; and the Legislature shall provide by law for the speedy and efficient enforcement of said liens.

W

hile the creation of a lien to protect honest and honorable mechanics, artisans and material men was probably a good idea, and has no doubt served those folks well over the years, it probably never crossed the minds of the constitutional drafters that this provision would be used by crooks, thieves, and opportunists to take property from the rightful owners.

The problem for car creditors and vehicle mortgage lien holders: Texas statutes give valid mechanic’s liens a “super-lien” status, making them superior to prior, recorded and perfected title liens and security interests.

This “super-lien” status has made vehicle mechanic’s liens a very attractive property right, one that has drawn the attention of many people.

The Texas Department of Motor Vehicles had at one time estimated that around 50% of all mechanic’s

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lien foreclosure applications involved fraudulent or improper claims.

One county tax assessor-collector put the fraudulent or questionable claim figure at more like 70 per cent, and her testimony to that effect before the Texas Senate Transportation and Homeland Security Committee raised some eyebrows. But, no matter whose estimate you take, it was clear that there was a problem.

It was in the spirit of achieving a balance between the legitimate goals of

by Michael

Dunagan

W.

TIADA GENERAL COUNSEL

mechanics and repair shops for the “speedy and efficient” enforcement of their rights, and the need for the state and for owners and lien holders of vehicles to be protected from fraud and theft, that in 2009 TIADA initiated, and the Texas Legislature passed, reform legislation.

The goal of the legislation was to deal with the problem in a way that didn’t interfere with the rights of those who do follow the law and

Mechanics, artisans and material men, of every class, shall have a lien upon the buildings and articles made or repaired by them for the value of their labor done thereon, or material furnished therefor; and the Legislature shall provide by law for the speedy and efficient enforcement of said liens.

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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 1 8 From Inventory Acquisition to

Tracking Service Department Metrics: Getting and Selling the Right Vehicle Is the Bottom Line Houston, TX

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 12

use the lien in the manner and for the purposes that the drafters of the constitution contemplated.

Many of the abusers of the mechanic’s lien law were not mechanics at all.

In fact, one of the major targets of the legislation was the use of fraudulent mechanic’s liens by persons wanting to “wash” liens from vehicles that were purchased or acquired from debtors without awareness of the lien status.

Creating fictitious mechanic’s lien claims, sometimes using non-existent repair shops, was a way to obtain a freeand-clear title certificate to the vehicle.

We have also run into thieves who would apply for a mechanic’s lien to a vehicle, often within a few days after the vehicle was sold by a dealer to a retail purchaser, indicating that the purchase was part of a conspiracy to obtain title to the vehicle. Some of the thieves would attach counterfeit postal receipts to their mechanic’s lien applications, without having given notice to anyone. The vehicles were then sold to innocent individuals and dealers using the mechanic’s lien titles issued by the state.

In a massive prosecution, the U.S. Attorney for the Western District of Texas a few years ago obtained convictions against 19 individuals from Texas, New Jersey, and Arizona who conspired to wash titles and strip liens to approximately 800 vehicles using, among other devices, fraudulent mechanic’s liens. Many of the

In a massive prosecution, the U.S. Attorney for the Western District of Texas a few years ago obtained convictions against 19 individuals from Texas, New Jersey, and Arizona who conspired to wash titles and strip liens to approximately 800 vehicles using, among other devices, fraudulent mechanic’s liens. Many of the victims of those crimes were Texas BHPH dealers. victims of those crimes were Texas BHPH dealers.

Other schemes we’ve seen to abuse mechanic’s liens include: Tow-truck drivers who have

“bought” bad checks given to vendors for repairs or parts, then repossessed the vehicles and demanded as much as $2,500 for a “repossession fee.”

One debtor filed a statement in

court that he had responded to an ad in the Green Sheets offering a fee to persons who were about to be repossessed for turning over their vehicles to the advertiser. After this debtor turned over the vehicle and was paid his fee, the advertising party promptly filed a fraudulent mechanic’s lien application.

Collusion between debtors and

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may not be mechanics to create a mechanic’s lien is a common occurrence.

Some mechanic’s lien claims in clude storage charges and/or rental car charges. These charges don’t qualify for the super-lien status of valid charges for parts and labor.

Under the mechanic’s lien processing system, anyone can submit an application for a mechanic’s lien through a county tax collector’s office, which forwards it to the Texas Department of Motor Vehicles (TxDMV). Except for certain counties that scrutinize the applications, such as Tarrant and Dallas Counties, little or nothing is done to check the accuracy of the claim, or whether the services were actually rendered (Tax Assessor John Ames of Dallas County has appointed an investigator in his office to look for all types of title fraud, including mechanic’s lien fraud).

If the paperwork appears to be in order, the state will issue a

negotiable title, free and clear of any lien or security interest, to the applicant. The only way to stop the issuance of mechanic-lien title is for a real party in interest (such as a secured party) to file a lawsuit naming as defendants the applicant and the State of Texas, seeking an injunction against the issuance of the title.

The 2009 legislation made it more difficult for those without a legitimate claim to game the system. For instance, notice of a lien claim now has to be made to the county tax assessor prior to the application going to TxDMV for processing. The tax assessor then sends notice of the lien, with the information about it, to all registered owners and lien holders, who will have an opportunity to intervene if the claim is not legitimate.

Deadlines were established for filing lien claims.

Also, the claimant has to give registered owners and lien holders an opportunity to inspect the vehicle.

It had been common for mechanic’s

lien claimants to refuse access to vehicles or even disclose their location. Additional information is now required to be submitted with an application, including the legal name of the applicant, an employer I.D., the actual location that the repair took place, and a copy of a signed work order. Franchised dealers, who have not been a part of the problem, are exempted from these additional requirements.

If an applicant for a mechanic’s lien doesn’t comply with the new requirements, any lien foreclosed upon is inferior to a prior recorded mortgage lien. Also, conviction for the submission of false or misleading information with a mechanic lien application is a class B misdemeanor.

While the number of reported fraud cases involving mechanic’s liens is down drastically since implementation of the 2009 amendments, suspicious claims are still being filed that appear to be intended solely to strip the car creditor’s lien

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from the title. Third parties, who are attracted to the “super-lien” status of mechanic’s liens, have been formulating schemes to obtain mechanic’s lien rights against vehicles, including the financing of repairs in exchange for the assignment of the mechanic’s lien. After the debtor defaults on the financing agreement, the finance company would repossess the vehicle and demand that the secured party pay the repair charges, interest (sometimes as high as 300%) and repossession and storage fees to get the vehicle back.

TIADA sought additional protections for secured parties in the 2015 session of the Texas Legislature. To make it more difficult for third parties to take assignment of mechanic’s liens (and thus obtain “super” lien status), amendments were added that: made it clear that release of possession of a vehicle by

a mechanic upon receipt of payment (other than by a bad check or stopped credit charge) would extinguish the mechanic’s lien, and provided that a mechanic’s right to possession of a

vehicle under a lien could not be assigned to a third party that advanced loan proceeds for repairs.

What can a secured car creditor do to protect its lien interest from fraudulent mechanic’s lien claims? Here are some suggestions: Titles should be timely transferred to perfect security

interests and to place the creditor’s lien in the state’s

Running every week !!

title records. If a title hasn’t been transferred, the lien holder’s position isn’t perfected against most third-party claims, and the lien holder is not entitled to notice on mechanic’s and storage lien claims.

All mechanic’s lien claims should be investigated.

Determine if the listed shop even exists. Shops are now required to allow lien holders to see the work order and other paperwork, and examine the vehicle. Take along a master mechanic who can tell whether the work has in fact been done. In one fraudulent lien claim case, the mechanic quickly dropped a $5,000 engine overhaul bill when an expert witness confronted him with evidence that the engine still had its original parts, and the block had simply been painted. A certified mechanic can make a good witness at trial if litigation over the matter ensues. There is little that can be done, however, if the vehicle is sold and disappears before your expert can make his inspection. Photos and videos can also be used to assist in evaluating whether work was done, or was done properly.

If the claimed work appears to have been performed,

and the work appears to have been authorized by the owner, an attempt should be made to negotiate a reasonable amount for the parts and services provided.

If a mechanic’s lien claim appears to be fraudulent, it

may be necessary to file suit to seek a court order directing a sheriff or constable to take possession of the vehicle pending a trial on the dispute. The party seeking the writ must swear to facts sufficient to justify the issuance of the order, and must post a bond. But if the value of the vehicle justifies the cost, this is an effective method of forcing the claimant to prove the authorization for the work and the completion of the work under oath. It can also protect the vehicle from sale or alteration pending the trial.

One possibility is to simply pay the disputed lien

charge to get the vehicle, then sue for money damages to the extent you can prove the charges are improper.

The down side of this procedure is that the type of person who files false lien claims probably doesn’t have the assets to satisfy a judgment.

Another suggestion we make is that lien holders encour age their customers to come to them when problems arise. Of course, if the customer is part of the conspiracy to create a bogus lien, there is little the creditor can do to prevent this from happening. Refusing to assist customers in repairs and sending them away with a reminder that they are responsible for repairs is a sure-fire way to have mechanic’s lien claims placed on vehicles.

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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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.

January 2019

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Dealer Academy Education Offerings for Winter/Spring 2019

Instructor-Led Courses Facebook/Instagram Workshop: Increase Sales and Measure Your ROI Presented by Andrew Street, CEO of Dealer OMG.

This jam-packed session will explore the finer points of Facebook and Instagram marketing for dealers and go far beyond the quest for likes. Ideal for any dealer GM or Owner who is tired of not knowing their advertising ROI. 8:30am - 12:00pm

$149 TIADA Members, Each Additional $99 (must be from same dealership), $299 Non-members MONDAY, FEBRUARY 25, 2019, AUSTIN

From Inventory Acquisition to Tracking Service Department Metrics: Getting and Selling the Right Vehicle Is the Bottom Line Presented by Brent Carmichael, Executive Conference Moderator, 20 Groups. NCM Associates, Inc. and the Staff of ADESA Houston.

This workshop is uniquely designed to cover the service department essentials that will increase your bottom line.

It will also include hands-on, interactive training that will allow you to inspect vehicles and learn exactly how to spot the most commonly overlooked types of vehicle damage.

9:00am - 3:00pm

$199 TIADA Members, Each Additional $149 (must be from same dealership), $399 Non-members MONDAY, MARCH 18, 2019, HOUSTON

The Competitive Investment: Integrating Data Analytics & Technology into Your Dealership Strategy Presented by Joe Oliveri, General Manager, Data as a Service, KAR Auction Services, Inc. and Steve Nicholson, Director of Major Dealer Accounts, TradeRev. In this workshop, learn how your dealership can use analytics to harness data to provide meaningful insights and leapfrog the competition. Gain practical tips to reap benefits from the digital revolution, including how to diversify your sales approach by incorporating new technology at your dealership.

8:30am - 12:00pm

$149 TIADA Members, Each Additional $99 (must be from same dealership), $299 Non-members MONDAY, MARCH 25, 2019, DALLAS

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.

$249 TIADA Members, Each Additional $199 (must be from same dealership) $499 Non-members 9:00am - 4:00pm

MONDAY, JUNE 3, 2019, SAN ANTONIO

Register online at www.txiada.org or by phone at 512.244.6060.

Texas Independent Automobile Dealers Association

feature Top 5 Compliance Tips

by TIADA Staff

E

ach week in our email newsletter, TIADA sends members important compliance tips that will help dealers avoid unpleasant surprises like fines, government audits and lawsuits. As 2019 begins, we felt it would be a good idea to revisit the top five most popular compliance blogs of last year. Follow these tips to keep your dealership running smoothly and profitably in the new year!

Should a Customer Sign the Buyer’s Guide?

By Steve Levine, Ignite Consulting Partners

T

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he recent Federal Trade Commission action against several dealers across the country for failing to follow Used Car Buyer’s Guide rule was an industry wake up call. For compliant dealers, one of the questions faced is whether to have its customer sign the Buyer’s Guide. If dealers do choose to require this, they must make sure to follow additional FTC requirements.

FTC guidance states that a dealer may include a signature line on the Guide and ask the buyer to sign to acknowledge that it was received. If the dealer chooses to include a signature line, it must include a disclosure near it that says: “I hereby acknowledge receipt of the Buyers Guide at the closing of this sale.”

This language can be preprinted on the form. The signature line and the required disclosure must appear in the space provided for the name of the individual to be contacted in the event of complaints after the sale.

Some dealers that choose not to obtain the signature view it as an extra step and believe their process offers enough protection. However, having it signed is strong proof that the customer received the information. Whichever path a dealer chooses, they must remember the importance of complying with the FTC regulations regarding buyers guides.

Should You Send Post-Repossession Notices by Certified Mail?

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By Michael W. Dunagan, TIADA General Counsel

Dealer Question: Am I required by law to send post-repossession notice letters by certified mail?

Answer: While there is no legal requirement of sending notices by certified mail, it is recommended to do so to establish proof that the notice was sent and when it was sent.

Additionally, we recommend that a return postal receipt be requested.

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he Texas Business and Commerce Code (which is the Texas version of the Uniform Commercial Code) requires that, absent a written waiver of notification signed by the debtor after default, a secured creditor send “a reasonable authenticated notification of disposition…” after a repossession of collateral has taken place.

We have seen cases where debtors have challenged whether notices had in fact been sent.

We have found that most judges will accept postal receipts (the green card returned to the sender) as valid proof of sending. Without such proof, the question is left to testimonial evidence to establish sending.

While the law requires “sending” notice to the last known address, it does not require proof that the notice was accepted or read. Whether the mail is signed for by the debtor, or refused, or simply ignored, there is direct proof of the required sending.

There are now some less-expensive ways of having out-going mail recorded by the post office so that a government record exists, if the cost of sending certified with a return receipt is too much.

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3

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FTC Cracks Down on Old Buyers Guides

h t t p s : // r e c o r d i n g s . t x i a d a . o r g

By Amber Hackett Crosby

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he grace period has ended. The Federal Trade Commission has begun conducting compliance sweeps at dealerships to ensure dealers are displaying the revised Buyer’s Guides.

After the FTC amended the Used Car Rule back in 2016, dealers had over a year to comply. This included an opportunity to use up any old Buyers Guides in their inventory and begin using the newly revised ones for all used car sales. As of January 28, 2018, dealers are required to display the revised FTC Buyers Guide on all used vehicles they offer for sale.

The FTC conducted the first compliance sweep of 94 car dealerships in 20 cities between April and June 2018. Dallas, Arlington, and Grand Prairie were part of that sweep. 70% of the more than 2,300 vehicles inspected displayed Buyers Guides, and nearly half of those vehicles displayed the revised Buyers Guide. Under the FTC Act, dealers who fail to comply with the amended Rule face penalties of up to $41,484 per violation. The FTC advises that state and local law enforcement agencies also enforce the recently amended Rule.

For more information, including fillable Buyers Guides, visit the FTC website.

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Four Things to Know Before Implementing a Customer Referral Program

By Jeff Martin, TIADA Executive Director

Avid readers of the TIADA blog know that in August of 2018 the TxDMV Board adopted new rules that allow an independent dealer to offer a customer referral program. So now that your creative juices are flowing, you might ask the question; what do I need to know before I implement my new customer referral program?

First, this is only for independent dealers. Your referral program cannot be associated with your franchise, wholesale, motorcycle, house trailer or mobility license — if you have one.

Second, the referral program is only for current customers and customers who have purchased a vehicle in the last four years. The newly referred customer doesn’t have to purchase a

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Customer’s Death Reveals Risks of Deferred Down Payments

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ecently, a unique incident has brought attention to a special situation that sometimes occurs in our industry. Specifically, there are times when dealers feel forced to take deferred down payments or, in retail transactions, partial payoffs for vehicles sold to customers. If you ask TIADA, they will say their stance is that all members should refrain from engaging in any type of deferred payments. However, in the unavoidable situation where a deferred payment must be taken, dealers should ensure the agreement is memorialized in the confines of the retail installment contract.

The purpose for contracting around the deferred payment is two-fold. First, it is important to have the terms of the payment clearly stated to avoid any confusion with the customer. Second, and just as important, the Office of Consumer Credit Commissioner (OCCC) requires deferred down payments be made within certain time constraints. The down payment must be collected by the time the second payment for the vehicle is due on an in-house financed transaction. If that payment is not received by the due date, the customer will be in breach of contract and the dealer can then exercise his contract remedies.

There are also deferred payments being taken on retail deals by some dealers. Let me first point out that any time a dealer takes more than one payment for a vehicle January 2019

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vehicle from you.

Third, there is no cap on the amount of the referral fee and it doesn’t have to be cash. Yes, you can offer gift cards, TV’s, game tickets and other items that work for your dealership.

Last, you cannot make your referral program a part of any financing agreement or retail installment contract. The association would not recommend reducing a payment, waving a payment or requiring a current customer to use their referral fee to make a payment as a part of the referral program.

By Erik Wilson Erik Wilson and Associates, PLLC

sale, that is considered to be a financed transaction by the OCCC. Dealers have tried to convince me that they do not need the OCCC license because they only do retail deals and my first question to them is, “do you ever take down payments?” If the answer is yes, then you need an OCCC license. It doesn’t matter what the reasoning for taking the payment is, the OCCC has made it quite clear that you will need an OCCC license to lawfully accept multiple payments for a sale in Texas. The Texas Finance Code section 348 governs these types of transactions.

One of the more interesting scenarios I have dealt with had to do with a dealer that entered into a retail deal with a customer but took a deferred payment for the Tax, Title, and Licensing fees. It was a simple matter and the customer was going to return with the $450 within a week or so.

However, the customer died prior to paying the fees. This left the dealer with multiple questions. Does he need to pay the fees? Does he still need to register the car? Can the vehicle be assigned to another family member? All of these were relevant questions and my advice to dealers in similar circumstances is that you should stick with your contract even if you feel like you have walked into a less than optimal situation. The contract is there for your protection, and in this situation that may mean keeping the contract and paying the tax yourself to ensure you can registers the vehicle in time (and keep your dealership from receiving an angry letter from the Texas Department of Motor Vehicles).

Otherwise, depending on the circumstances, you may be able to unwind the deal with the estate of the deceased.

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Austin

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*Only available to current TIADA dealer members. Cash only represents redeemed discount value and does not mean actual currency.

on the cover

by TIADA Staff

I

n the last twenty years TIADA has seen its legislative footprint grow in Texas and it remains a focus today.

“It’s been exciting,” said Keith Hagler of Taylor Auto Credit. “The first time I remember going to the Capitol for TIADA was in 1999 when we were working on HB 1707. I remember watching Gene Fondren from TADA testify that day and you could just tell he was respected by all the legislators.” HB 1707 abolished the requirement that a licensed car dealer provide proof of liability

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insurance for the buyer at the time of transfer and has been widely recognized as one of the greatest legislative victories for auto dealers in the last twenty years. Hagler remembers, “Ken Riley from Uncle Buddy’s in Houston testified for us and he was great, but I am not sure that bill would’ve passed without TADA. From that point forward I was committed to doing whatever I could to help our association.”

Robert Beck of Stop ‘N Drive Motors in San Antonio T e x a s

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first testified in 2013 on a bill that would address named-driver only insurance policies, and he learned firsthand how important it was to build relationships with everyone.

“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,” said Beck.

“But on this issue, our paths came together, and the support of dealers like me and TIADA was crucial to her success in enacting her bill.”

Testifying before legislators is a small part of the big picture for associations. Working to ensure members have a strong unified voice to protect their industry usually takes a combination of; hired lobbyist, member driven grassroots campaigns, in-house governmental relations advisors and political action committees. TIADA is no different.

Over the last twenty years TIADA has employed and deployed multiple approaches to grow the association’s influence. “We have been committed to a number of things but growing our ‘keyman’ network database and our PAC over the last 13 years has made a big difference for us,” explained TIADA Executive Director Jeff Martin. The “keyman” network is a database TIADA developed that allows the association to track every relationship a dealer has with a legislator. Each relationship is given value that correlates with a loosely defined relationship. If a dealer knows the legislator in his or her district and they see each other from time to time that relationship will be given a one. However, if they go to church together or serve on local boards together the relationship may be a two.

If a dealer considers their legislator a really good friend or they are related to each other that will be three.

Martin smiled and said, “If I see a three, I know our guy can call or text that legislator on their mobile phone during session and that’s where we want to be.” TIADA has just over 100 January 2019

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State Representatives address attendees of the 2018 TIADA Annual Conference during a discussion panel to preview issues the Texas Legislature will address in 2019. (left to right) Rep. Giovanni Capriglione, Rep. Toni Rose and Rep. Eddie Lucio III.

(left to right) Michael Charman, Keith Hagler, Robert Beck and Brent Rhodes attend TIADA Day at the Capitol in 2007.

State Rep. Carol Alvarado meets with members of the local Houston chapter in August 2018. (left to right) TIADA VP Ryan Winkleman, Rep. Alvarado, TIADA Chairman of the Board Greg Zak, TIADA President Juan Sabillón and HIADA President Rick Maroney.

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Michael Zak, Rep. Ed Thompson, Greg Zak, John Freeman and Jennie Freeman discuss legislation during TIADA Day at the Capitol in 2017.

relationships they are tracking in the keyman database and the association’s five-year strategic plan calls for that number to be 140 by 2021. The database is ever changing and after each election the association scrubs the database by deleting those legislators who will not be coming back to Austin.

INDEPAC is the Political Action Committee affiliated with TIADA that allows the association to support various legislators. The PAC has seen some ups and downs over the last two decades but most recently it has been trending up. In 2004 the PAC only raised $12,000.

However, last year INDEPAC reports raising almost $30,000. Paul Scott with Fiesta Motors in Lubbock has served as the INDEPAC Chairman for the last two years. He and the committee have developed a five-year strategic plan that includes raising $100,000 annually by 2021. The focus is on asking for a smaller amount but increasing the number of members who contribute.

Outside lobbyists are also key players for associations, in the last twenty years TIADA has hired three different lobbyists. Mario Martinez has served as the external governmental relations consultant / lobbyist for the last six years. “Mario has pushed the gas pedal down and helped us reach for even higher association goals,” said Mark Brown of Red Carpet Auto Sales in Seguin. “He is 24

really about building relationships.” Mark speaks from experience; he has been involved in the association for over 20 years and served as the President of TIADA in 2006. Mark remembers attending his first TIADA Day at the Capitol in 2009 when 12 dealers attended and visited 17 legislative offices. By 2017, the event included a reception the night before with 22 state representatives and the next day 47 dealers visited 86 different legislative offices. But it doesn’t stop there; TIADA has been inviting legislators to their annual conference for the last twenty years too. In 2007 TIADA welcomed, then state representative, Glenn Hegar to the annual conference (he made a second appearance in 2016 as the Comptroller). Additionally, over the past twenty years TIADA has seen Speaker Joe Straus attend the conference twice, Congressman Roger Williams, Sen. Robert Nichols, Sen. Jose Menendez, Sen. Kelley Hancock and numerous state representatives. The 2018 conference included two state senators and seven state representatives. “I like to invite members from each chamber to our annual event,” said Martinez. “It gives them a great opportunity to see how professional our dealers are, how big our industry is and it’s in a more relaxed setting. I know a number of associations that would kill to have that many legislators at their annual event.”

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Phil Lathrop of VP Auto Sales in Garland served many years on the TIADA Board and as the TIADA Legislative Chair. When asked what he was most proud of he stated, “I remember back when ‘used car dealer’ were dirty words at the Capitol. We felt like we had to take whatever was doled out by legislators that didn’t know us and had a preconceived notion of what we did and why. It wasn’t pretty. As we evolved and acquired staff that knew how to build an association and create a face at the capitol that reflected the good people we are, attitudes changed, relationships were built and the climate for dealers became much better.” Lathrop has also testified many times on behalf of the association, regularly contributes to INDEPAC, attends TIADA Day at the Capitol events and works to build relationships in his district.

Phil,” said Martin. “He just gets it.

EPI-TIADAhalf Nov2018.pdf

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10/29/18

Blake Ingram (second from right, first row) attends a meeting of the Texas Department of Motor Vehicles Board of Directors.

He knows every legislator in his district, the committee they serve on and most of the people who work in their offices. If we had more Phil Lathrops, we would be even more successful.”

Mike Dunagan, who has been instrumental in so many of the

association’s legislative victories and on the frontline representing TIADA for over 40 years added, “One of the most significant improvements in the TIADA legislative effort I’ve observed in the last 40 years has been the growth of dealer-member participation in the process. There were

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no events at the Capitol in the early days. A few members who knew their legislators or senators personally might place calls on some of the topics we were interested in.

But, by and large, the only boots on the ground in Austin were our association executive, our counsel, and our lobbyists. The increase in active member participation through phone banks, gatherings at the Capitol and testifying on bills has been phenomenal, and has taken the association’s legislative efforts to a whole new level.”

For an association that started in 1944 TIADA has plenty of legislative victories to hang its hat on but in politics you are only as good as your last session and growing your influence is key. Dealers must become members and members must get involved.

Hagler has certainly done his part. Just six years after that first visit to the Capitol he and about 100 other buy-here pay-here dealers found themselves in an even bigger fight when the Comptroller ruled Related Finance Companies did not have the same rights as licensed dealers and therefore could not defer sales tax. Dealers with related finance companies had been deferring sales tax for years. This created a significant liability for those dealers so TIADA worked with then State Rep. Ken Paxton and Sen. Chris Harris who filed legislation to address the issue. “I remember so many so-called experts telling us we wouldn’t get that bill passed,” said Hagler. “A ton of people deserve credit but having Patricia [Harless] at the Capitol was huge.

During the 2017 legislative session, Speaker of the House Joe Straus meets with TIADA memShe kept telling us to stay bers (left to right) John Miller, Jr., Robert Beck, Mark Brown, Speaker Straus, Travis Allison and Sonny Paredez. involved throughout the process and keep visiting with legislators and it worked.” Patricia Harless, who is an independent dealer in Houston also served as a Texas State Legislator and is a TIADA Past President.

Hagler did stay involved; in fact in 2008 there was a movement to carve TxDMV out from under TxDOT and create a standalone agency.

A coalition was being built that included tax assessors, auto dealers, law enforcement, dry good haulers and a few more. When TIADA United States Congressman Roger Williams (center) speaks with Erika Blankenship had the opportunity to (left) and Haley Blankenship of Texas Auto Center at the NIADA National Policy Conference in fill one of the committee Washington D.C. 26

T e x a s

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January 2019

spots with a dealer they called on Hagler. “Keith was the obvious choice for us,” said Martin. “We had just gone through the RFC thing and he knew how important this would be to the industry to have good relationships with the agencies that regulate our industry. Plus anyone who meets him has a ton of respect for him.” It did prove to be important as the committee recommended Texas create a new agency with oversight from a board made up of various industry representatives and public members. In 2009 the TxDMV bill wound its way through the legislature and became law. TIADA did its part to make sure an independent dealer would hold one of the seats appointed by the Governor.

Since its inception three independent dealers have served on the TxDMV Board, Jim Campbell, Blake Ingram and currently Paul Scott.

Just last year Erika Blankenship with Texas Auto Center in Austin testified before the TxDMV Board on a new rule proposal that would allow independent dealers to offer a referral fee to customers, the rule passed unanimously. When she was asked about helping to grow TIADA’s legislative footprint she said, “There are many ways for dealers to get involved in grassroots advocacy for our industry.

Participating in the TIADA Day at the Capitol is one example of this. The next one is coming up in February. I encourage everyone to register and attend this great event. We meet with our state representatives, build relationships with them and educate them about our industry as well as current issues we are facing. I enjoy seeing our dealer friends, meeting other Texas dealers and advocating for our industry.”

Texas Comptroller Glenn Hegar at the 2016 TIADA Annual Conference & Expo

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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January 2019

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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 27

You’re The High Bidder!

$29,650

feature

2018 Market Survey of Car Buyers

by Somir Paul

Woodlands Financial Services

T

he following data comes from the Market Survey of Car Buyers conducted annually by Woodlands Financial Services, Inc. They contacted 372 car buyers from November 1–30, 2018. They surveyed only active dealer accounts randomly selected from contracts that were purchased from January 2014 through October 2018.

The respondents were interviewed in person at their payment center and over the phone.

Key Findings: 50 45 40 35 30 25 20 15 10 5 0

26.75

24 19

17.5

9 2.5

TV/Radio

7

1.5

0.5

2018 Magazine/NP Dealer Website

Inventory and Customer Service make up 66.5% of the top two factors that influence the customer’s buying decision.

Price and Financing follow at 17% and 11.5% .

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1

Referred by Friend

2017 Repeat Customer

Driving By

Driving by, referrals and repeat customers accounted for 87% of the total buyers at the store, compared to 91.5 % in 2017.

The dealership website, magazine/ newspaper and TV/radio increased to 13% from 8.5%.

MOST IMPORTANT REASON YOU BUY? MOST IMPORTANT REASON YOU BUY? 50 45 40 35 30 25 20 15 10 5 0

46

17

42.5

20.75

20.5

5

0.5

0

3.5

2018

D e a l e r

Location

20.5 12.25

11.5

Appearance

January 2019

47.25

44

%

%

WHAT BROUGHT THE DEALER? WHAT BROUGHT YOU YOU TO THETO DEALERSHIP?

2017 Financing

Price

Customer Service

Selection/Inventory

29

DIDYOU YOU ONLINE RESEARCH DID DODO ANYANY ONLINE RESEARCH REGARDING YOUR VEHICLE PURCHASE REGARDING YOUR VEHICLE PURCHASE PRIOR BUYING? PRIORTOTO BUYING? 80

74

73

70

60

%

50 40

27

26

30

Interestingly, this year’s survey shows that 26% shopped on the internet before buying from your store, compared to 27% in 2017.

(Note: was 35% in 2016)

20 10

0

2018

2017

Yes

No

WHAT OFOF MONTHLY PAYMENT WHATAMOUNT AMOUNT MONTHLY PAYMENT CANYOU YOUMAKE MAKE NEXT VEHICLE? CAN ONON THETHE NEXT VEHICLE?

There is a

4% increase

in customers wanting to make a monthly payment of $300 or less and a 5% decrease in the customers willing to pay more than $401 or higher per month.

45

40.5 39.75

40 35

29

%

30

33

25 20 15

16

13.5 14.5

12

10 5

0

1 $300 or Less

$301-$400

$401-$500

2018

$501+

Cash in Full

2017

WHEN TO BUY YOUR NEXT WHEN DODO YOUYOU PLANPLAN TO BUY VEHICLE? YOUR NEXT VEHICLE? 60 49

50

%

40

33.75

30 20

10 0

7

22

27

10.25

This Year

Next Year

2018 30

29

22

Future

0.75

Undecided

2017 T e x a s

Customers that want to buy a car “next year” (2019) is 11.75% lower in this year’s survey compared to the same time last year. Customers wanting to buy a car in the “future” (2020+)

increased to 49% from 29% in 2017.

D e a l e r

January 2019

%

WHAT KIND OF VEHICLE? WHAT KIND OF VEHICLE DO YOU PLAN TO BUY NEXT? 50 45 40 35 30 25 20 15 10 5 0

46 39.5

35 28

24

23

1.25

2

1.25

2018

0

2017

Truck

SUV

Car

Van

Undecided

DOYOU YOU PLAN TO BUY THE SAME DO PLAN TO BUY FROMFROM THE SAME DEALER YOUR PURCHASE? DEALER ASAS YOUR LASTLAST PURCHASE? 60

53

50

45.25

%

40 30

23.5

28.75

26

23.5

increased to 53% from 45% last

20

year.

10 0

2018

2017

Yes

No

33

35 30

20

6

Customer Service *Multiple Answers Given

15

5

0

D e a l e r

27

15

15

5

27

25

25

10

T e x a s

Undecided

WHAT THE REASON YOU WOULD WHAT ISISTHE REASON YOU WOULD NOTBUY BUY FROM DEALER? NOT FROM THE THE SAMESAME DEALER?

%

Customer Service ratings continue to improve!

Unhappy customers numbered 32% in 2015, 14% in 2016, 8% in 2017 and 6% in 2018.

January 2019

In 2016, 40% of customers said they would not go back to the same dealer. In 2017 it dropped to 26% and 23.5% this year. The YES number

16

5

3

2018 Price

12

12

8

Not Enough Selection

2017 Car Problems

Closed/Moved

Wants a NEW vehicle

Other

31

WHY WOULD YOU CHOOSE TO BUY FROM WHY WOULD YOU CHOOSE TO BUY FROM THE SAME DEALER AS YOURYOU LAST PURCHASED? PURCHASE? THE LAST DEALER 70

62

60

53

50 %

40 30

25

20

10

4

10

0

25 9

7

1

2018 Repeat Customer

Pricing

7

7

7

2017 Financing

Selection/Inventory

Customer Service

Other

*Multiple Answers Given

Customer Service accounted for 62% of customers and the reason they would choose your dealership to purchase another vehicle compared to 53% last year.

32

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The best dealers in Texas, the best education anywhere.

Save the date

July 21–23, 2019 JW Marriott San Antonio Hill Country Resort & Spa

January 2019

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D e a l e r

33

2019 TIADA Auction Directory

Save thousands on buy or sell fees at these participating auctions! * VALID FOR SELL FEE ONLY AT INSURANCE AA LOCATIONS

Abilene

ALLIANCE AUTO AUCTION ABILENE

www.allianceautoauction.com 6657 US Highway 80 West, Abilene, TX 79605 325.698.4391, Fax 325.691.0263 GM: Brandon Denison Friday, 10:00 a.m. $AVE : $200

C.M. COMPANY AUCTIONS, INC. www.cmauctions.com 2258 S. Treadaway, Abilene, TX 79602 325.677.3555, Fax 325.677.2209 GM: Gregory Chittum Thursday, 10:00 a.m. $AVE : $200

IAA ABILENE*

NEw

www.iaai.com 7700 US 277, Hawley, TX 79601 325.675.0699, Fax 325.675.5073 GM: Terrie Smith Thursday, 9:30 a.m. $AVE : up to $200 Sell Fee

Amarillo

IAA AMARILLO*

NEw

www.iaai.com 11150 S. FM 1541, Amarillo, TX 79118 806.622.1322, Fax 806.622.2678 GM: Shawn Norris Monday, 9:30 a.m. $AVE : up to $200 Sell Fee

Austin

ADESA AUSTIN

www.adesa.com 2108 Ferguson Ln, Austin, TX 78754 512.873.4000, Fax 512.873.4022 GM: Rich Levene Tuesday, 9:00 a.m. $AVE : $200

AMERICA’S AA AUSTIN / SAN ANTONIO www.americasautoauction.com 16611 S. IH-35, Buda, TX 78610 512.268.6600, Fax 512.295.6666 GM: John Swofford Tuesday, 1:30 p.m. / Thursday, 2:00 p.m. $AVE : $200

INSURANCE AUTO AUCTION AUSTIN* www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 GM: Geoffrey Rabb Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

34

METRO AUTO AUCTION AUSTIN

IAA DFW*

Corpus Christi

IAA FORT WORTH NORTH*

www.metroautoauction.com 8605 Cullen Ln., Austin, TX 78748 512.282.7900, Fax 512.282.8165 GM: Brent Rhodes 3rd Saturday, monthly $AVE : $200

CORPUS CHRISTI AUTO AUCTION

www.corpuschristiautoauction.com 2149 IH-69 Access Road, Corpus Christi, TX 78380 361.767.4100, Fax 361.767.9840 GM: Hunter Dunn Friday, 10:00 a.m. $AVE : $200

IAA CORPUS CHRISI*

www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880 GM: Patricia Kohlstrand Wednesday, 9:00 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, Fax 972.284.4799 GM: Allan Wilwayco Thursday, 9:30 a.m. $AVE : $200

ALLIANCE AUTO AUCTION DALLAS www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 7520 214.646.3136, Fax 469.828.8225 GM: Chris Dean Wednesday, 1:30 p.m. $AVE : $200

AMERICA’S AA DALLAS

www.americasautoauction.com 219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972.591.2742 GM: Ruben Figueroa Tuesday, 1:00 p.m. / Thursday, 1:00 p.m. $AVE : $200

IAA DALLAS*

www.iaai.com 204 Mars Road, Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 GM: Joshua Boyd Wednesday, 9:00 a.m. $AVE : up to $200 Sell Fee

www.iaai.com 4226 East Main Street, Grand Prairie, TX 75050 972.522.5000, Fax 972.522.5090 GM: Robert Brown Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

NEw

www.iaai.com 3748 McPherson Dr., Justin, TX 76247 940.648.5541, Fax 940.648.5543 GM: Jack Panczyk Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

MANHEIM DALLAS

www.manheim.com 5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800, Fax 214.339.6347 GM: Rich Curtis Wednesday, 9:00 a.m. $AVE : $100

MANHEIM DALLAS FORT WORTH

www.manheim.com 12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000, Fax 817.399.4251 GM: Nicole Graham-Ponce Thursday, 9:30 a.m. $AVE : $100

METRO AUTO AUCTION DALLAS

www.metroaa.com 1836 Midway Road, Lewisville, TX 75056 972.492.0900, Fax 972.492.0944 GM: Scott Stalder Tuesday, 9:00 a.m. $AVE : $200

TEXAS LONE STAR AUTO AUCTION

www.tlsaa.com 2205 Country Club Drive, Carrollton, TX 75006 214.483.3597, Fax 214.483.3814 GM: Patrick Stevens Tuesday, 1:00 p.m. / Thursday, 2:00 p.m. $AVE : $200

El Paso

EL PASO INDEPENDENT AUTO AUCTION www.epiaa.com 7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 GM: Luke Pidgeon Wednesday, 1:00 p.m. $AVE : $200

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January 2019

IAA EL PASO*

www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489, Fax 915.852.2235 GM: Jorge Resendez Friday, 10:30 a.m. $AVE : up to $200 Sell Fee

MANHEIM EL PASO

www.manheim.com 485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645 GM: JD Guerrero Thursday, 10:00 a.m. $AVE : $100

IAA HOUSTON*

Midland Odessa

IAA HOUSTON NORTH*

www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277, Fax 432.366.8725 GM: Christopher Rogers Thursday, 11:00 a.m. $AVE : up to $200 Sell Fee

www.iaai.com 2535 West. Mt. Houston, Houston, TX 77038 281.847.4700, Fax 281.847.4799 GM: Alvin Banks Wednesday, 9:00 a.m. $AVE : up to $200 Sell Fee www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300, Fax 281.443.4433 GM: Christina Nieves Thursday, 9:00 a.m. $AVE : up to $200 Sell Fee

MANHEIM HOUSTON

Harlingen/McAllen IAA MCALLEN*

www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393, Fax 956.464.8510 GM: Ydalia Sandoval Tuesday, 9:00 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, Fax 956.461.9005 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, Fax 281.580.8030 GM: Michael Schenks Wednesday, 9:00 a.m. $AVE : $200

AMERICA’S AA HOUSTON

www.americasautoauction.com 1826 Almeda Genoa Rd, Houston, TX 77047 281.819.3600, Fax 281.819.3601 GM: John Swofford Thursday, 2:00 p.m. $AVE : $200

AMERICA’S AA NORTH HOUSTON www.americasautoauction.com 1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842 GM: Buddy Cheney Monday, 6:30 p.m. $AVE : $200

www.manheim.com 14450 West Road, Houston, TX 77041 281.924.5833, Fax 281.890.7953 GM: Brian Walker Tuesday, 9:00 a.m. / Thursday 6:30 p.m. $AVE : $100

MANHEIM TEXAS HOBBY

www.manheim.com 8215 Kopman Road, Houston, TX 77061 713.649.8233, Fax 713.640.6330 GM: Darren Slack Thursday, 9:00 a.m. $AVE : $100

Longview

HOUSTON AUTO AUCTION

www.houstonautoauction.com 6767 North Freeway, Houston, TX 77076 713.644.5566, Fax 713.644.0889 GM: Tim Bowers Tuesday, 1:00 p.m. $AVE : $200 January 2019

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ONLINE

ACV AUCTIONS

www.acvauctions.com 800.553.4070 $AVE : $250

San Antonio

ADESA SAN ANTONIO

www.adesa.com 200 S. Callaghan Rd, San Antonio, TX 78227 210.434.4999, Fax 210.431.0645 GM: Clifton Sprenger Thursday, 10:00 a.m. $AVE : $200

IAA SAN ANTONIO*

www.iaai.com 11275 S. Zarzamora, San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 GM: Brian Sell Monday, 9:00 a.m. $AVE : up to $200 Sell Fee

ALLIANCE AUTO AUCTION LONGVIEW

MANHEIM SAN ANTONIO

IAA LONGVIEW*

SAN ANTONIO AUTO AUCTION

www.allianceautoauction.com 6000 East Loop 281, Longview, TX 75602 903.212.2955, Fax 903.212.2556 GM: Chris Barille Friday, 10:00 a.m. $AVE : $200

www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248, Fax 903.553.0210 GM: David Cooper Thursday, 9:00 a.m. $AVE : up to $200 Sell Fee

Lubbock

IAA LUBBOCK*

www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 GM: Lori Davee Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

AUTONATION AUTO AUCTION - HOUSTON TEXAS LONE STAR AUTO AUCTION www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 822.905.2622, Fax 281.506.3866 GM: Mike Green Thursday, 6:00 p.m. $AVE : $200

IAA PERMIAN BASIN*

www.lsaalubbock.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 Wednesday, 9:30 a.m $AVE : $75

Lufkin

LUFKIN DEALERS AUTO AUCTION

www.lufkindealers.com 2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299, Fax 936.632.4218 GM: Wayne Cook Thursday, 6:00 p.m. $AVE : $200

www.manheim.com 2042 Ackerman Road, San Antonio, TX 78219 210.661.4200, Fax 210.662.3113 GM: Mike Browning Wednesday, 9:00 a.m. $AVE : $100 www.sanantonioautoauction.com 13510 Toepperwein Rd., San Antonio, TX 78233 210.298.5477 GM: Brandon Walston Tuesday, 10:00 a.m. / Thursday, 1:30 p.m. $AVE : $200

Tyler

GREATER TYLER AUTO AUCTION www.greatertyleraa.com 11654 Hwy 64W, Tyler, TX 75704 903.597.2800, Fax 903.597.3848 GM: Wayne Cook Tuesday, 5:00 p.m. $AVE : $200

Waco

ALLIANCE AUTO AUCTION WACO

www.allianceautoauction.com 15735 I-35 Frontage Road, Elmott, TX 76640 254.829.0123, Fax 254.829.1298 GM: Carmen Robinson (Sales Manager) Friday, 10:00 a.m. $AVE : $200

35

ATTENTION STUDENTS!!!

$1,000

Marvin Norwood Scholarship DEADLINE

May 10, 2019 {Applications and/or any required documents received after May 10, 2019 will NOT be accepted.} Criteria and Guidelines 1. Each applicant must be entering or currently enrolled in an accredited college or a trade school. Proof of enrollment must be included with this application.

Date: Name:

DOB:

Address: City:

State: (You will received email confirmation of receipt.)

Telephone Number: High School Last Attended: Address:

3. Each applicant must complete the application form.

Date of Graduation:

4. A copy of high school transcripts is required for applicants who are college freshmen. If applicant is currently enrolled, provide college transcripts with official university imprint.

Other High Schools Attended (Names and Addresses):

6. Compose an essay of no more than two typed, double-spaced 8 ½” x 11” pages. The essay should discuss the applicant’s relationship with their TIADA scholarship sponsor, current education goals and future aspirations as it relates to the applicant’s subject/training area.

7. Provide at least two (but no more than three) letters of recommendation, no older than one year, from college/high school faculty, employers or other appropriate sources (not related).

Zip:

Email:

2. Each applicant must provide a letter from their TIADA member sponsor that includes the sponsor’s address and phone number.

5. Provide a detailed description of participation in any academic, honorary, civic or extracurricular activities in college. In addition, a detailed description of high school activities is required from college freshmen along with a college acceptance letter.

36

SCHOLARSHIP APPLICATION

City:

State:

Zip:

Dates of Attendance:

College(s) you are attending or plan to attend for admission:

Parents Name(s): TIADA Member Name (Sponsor): TIADA Member Company Name: TIADA Member Address: City:

State:

Zip:

Sponsor Signature Should you have any questions, please contact TIADA at 512.244.6060. Please return the completed application with all required documents to: TIADA Attention: Scholarship Applications 9951 Anderson Mill Rd. Suite 101, Austin, TX 78750

T e x a s

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January 2019

Please Welcome Our Newest TIADA Members DEALER MEMBERS Distinctive Motors Group LLC Ehimen Ordia PO BOX 156155 Fort Worth, TX 76155 DriveTown Inc Mike Shaikh 10440 Gulf Freeway Houston, TX 77034

Little Black Book Paul Malone 3900 San Mateo Dr Plano, TX 75023 Sal’s Auto LLC Jacqueline Morales 4431 Hanley Lane Houston, TX 77093 SFG Auto Giray Gunes 11444 Manchaca Rd. Austin, TX 78748

Exclusive Auto World Zakeyius Simmons P.O. Box 461132 Garland, TX 75046

ASSOCIATE MEMBERS

Latino Auto Group Gonzalo Barajas PO Box 701449 Dallas, TX 75370

Infinite Dealer Solutions, LLC Dan Looney 28202 Sandy Meadow Court Fulshear, TX 77441

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, Compliance 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

Texas Comptroller

800.252.1382 www.window.state.tx.us

January 2019

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NIADA

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

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 www.txiada.org) HOUSTON Rudy Roudbari Sarco Enterprise 713.672.3950 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) 37

behind the wheel

Martin

86th Legislative Session

P

articipating in this month’s cover story was a fun exercise. Reading the stories from so many of the people instrumental in helping grow the association’s legislative footprint was a fun walk down memory lane. It was inspiring and intimidating. I have only been with the association for twelve and half years so I missed out on some of the industry changing legislation like the deferred sales tax and the elimination of the requirement for dealers to verify liability insurance.

Having played a small part in some of the more recent victories makes it easy for me to imagine the excitement for the association members, legislators and the TIADA governmental relations team who made this possible. It’s also easy to appreciate the hard work it must have taken to get the message out, keep members involved and make sure the independent dealer’s voices are being heard. But as the article points out, you are only as successful as your last legislative session, and the next one starts this month. So, what might our members look back on in six months and what might our members look back on 20 years as it relates to the 86th legislative session?

I have written extensively on how I believe this session will be more about “playing defense” since the two agencies that license and regulate our industry are under Sunset review. Both will see an omnibus

by Jeff

TIADA EXECUTIVE DIRECTOR

bill that will require a lot of attention throughout the session. We will also have a new Speaker of the House who will bring his own ideas and agenda forward creating a lot of unknowns. However, our board, with input from the legislative committee, has asked us to work on a few issues this session.

In light of a recent court ruling we will look for opportunities to address a credit card surcharge. We will also seek some relief from the onerous fines associated with filing your VIT. Eliminating bureaucracy will continue to be a focus for the association by working to eliminate the VTR 136 form. Also, we will continue to work with stakeholders and introduce ideas that will address the issues created with the named drive only insurance policies.

These are just a few of the initiatives TIADA will be exploring during this year’s legislative session. Truth be told, no one really knows what will come out of the session but hopefully, with your involvement, our effort through the governmental relations team and legislators who share our views we will be celebrating a few victories later this year as well as 20 years from now.

If you are a dealer and you would like to help your industry firsthand, plan to join us February 12 at the TIADA Day at the Capitol when we will discuss these issues and more. For information on registration turn to page 8.

If you are a dealer and you would like to help your industry firsthand, plan to join us February 12 at the TIADA Day at the Capitol.

38

T e x a s

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January 2019

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

TEXAS » Manheim Dallas » Manheim Dallas Fort Worth » Manheim San Antonio » Manheim Texas Hobby » Manheim Houston » Manheim South Houston » Manheim El Paso

manheim.com 1-866-MANHEIM (626-4346)

YOUR LOCAL TEAM IS HERE TO HELP DRIVE YOUR PROFITS.

At Manheim, dealers’ success is our success. That’s why we put the industry’s largest marketplace to work for you and help you discover new ways to increase profits in your used car operations. Come see how we can help you today.

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