Texas Dealer January 2020

here comes

Also In This Issue: – Michael W. Dunagan on Internet Sales – A Practical Guide to a Successful Compliance Self-Assessment – 2019 Market Survey of Car Buyers – 4 Sales Lessons from Real Car Shoppers

2020 TIADA Board of Directors PRESIDENT Robert Beck/Stop N’ Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 PRESIDENT ELECT Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 CHAIRMAN OF THE BOARD Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 SECRETARY Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 TREASURER Eddie Hale/Neighborhood Autos 1717 US 287 Decatur, TX 76234 ICE PRESIDENT, WEST TEXAS V (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 ICE PRESIDENT, FORT WORTH V (REGION 2) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas, TX 75218 ICE PRESIDENT, DALLAS V (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 ICE PRESIDENT, HOUSTON V (REGION 4) Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 ICE PRESIDENT, CENTRAL TEXAS V (REGION 5) Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 ICE PRESIDENT, SOUTH TEXAS V (REGION 6) Jose Engler/Irving Motor Corp 211 Braniff Dr. San Antonio, TX 78216 ICE PRESIDENT AT LARGE V Robert Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 ICE PRESIDENT AT LARGE V Armando Villarreal/McAllen Auto Sales 4215 S. 23rd Street McAllen, TX 78503

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

Vo l u m e X X / I s s u e 1 / J a n u a r y 2 0 2 0

TexasDealer contents

4 Officers’ Message

by Robert Beck, TIADA President

9 Legal Corner: Internet Sales Create Risk of Out-of-State Lawsuits

by Michael W. Dunagan

10 Upcoming Events 13 A Practical Guide to a Successful Compliance Self-Assessment

by Jessica Cumbee

16 TIADA Member Application 17 2019 Market Survey of Car Buyers

by Somir Paul

22 TIADA Auction Directory 2019 24 TIADA Conference and Expo 26 On The Cover: Here Comes Tax Season

by TIADA Staff

28 Local Chapters 28 New Members 31 How to Get Involved in TIADA’s Legislative Affairs in 2020

by Chris Bean

33 TIADA Scholarship Application 37 4 Sales Lessons from Real Car Shoppers

by Joe Horlacher

45 Behind the Wheel

by Jeff Martin

Check Out Our 2020 Education Seminars The TIADA Dealer Academy education schedule for Winter/ Spring 2020 is now available. Turn to page 35 for more information and go to txiada.org/education to register.

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: Teresa Orkun

Magazine Ad Sales: Patty Huber, 512-310-9795

officers’ message

by Robert

Tax Week, Are You Ready?

A

s I write this column it is mid-December 2019.

It’s been a cold, windy, and rainy day today and not one soul has visited our car lot. This is the kind of day I usually try to get caught up on things so when the onslaught returns, I won’t feel overwhelmed with stuff I should’ve done long ago. This kinda reminds me of getting ready for tax season. Tax Season — that panacea which solves all our problems, rights all our wrongs and in general has the longstanding reputation of making or breaking the year! All in only a 10-Day window. At least that’s what it has felt like for us the last couple of years. Tax season has not been what it used to be for us. I’ve talked to old-timers who’ve told me tax season for them would be consistently busy from the first of February to mid-May every year. For many years after we opened for business in 2005 we could count on very consistent business from mid-January through mid-April annually. But a couple of years ago, the IRS (at the direction of Congress) modified how they disburse refunds — holding everything back until the end of February while they double check the veracity of our customers’ tax filings, then blowing all the refunds out at the same time in late February and early March. This has made our “tax season” more aptly described as our “tax week”! Nevertheless, compared to the rest of the year we do have a higheer volume of business during this season of the year.

I’d like to talk a little today about how we prepare for tax season at our place. Historically as I mentioned, it’s always been a very busy time of year for us. So, over the years we’ve developed the habit of doing a few things in

4

Beck

Stop N’ Drive Motors (San Antonio) TIADA PRESIDENT

the fall and early winter to prepare for tax season. We always ramp up our buying during the last half of the year so when December arrives, we are loaded and very busy re-conditioning inventory. We also accelerate our driving of existing inventory as we approach the end of the year so we can discover and repair any lot rot which has taken place since the date of purchase. It’s always better to find it ourselves before a customer does on a test drive. We also try to gussy up our lot during November and December — replacing flags and banners, streamers etc. to make the place shine.

We use this time to evaluate our lighting, stock up on our supply of business forms, deal jackets, key FOB’s and supplies etc. so we don’t even have to think about this kind of stuff during the tax season. We usually renew our line of credit at the bank in November as well and make sure everything is clean and current so we are ready to concentrate on sales for the tax season.

Since we are 100% in-house financing, we also try very hard to keep our collections clean during November and December so we are in good shape in January as we get close to the beginning of tax season. We also usually hire additional sales representatives as we begin the new year so we can train them in our way of doing business before the mad rush begins.

Basically, anything we can do ahead of time so we don’t have to be bothered with mundane things during the heat of the battle we do in November and December every year.

Then we cross our fingers and hope we are ready for what comes our way when the refund gods are smiling upon us.

Here is hoping you have a great tax season and that you are positioned well to capitalize on the opportunities available to you between now and April 15th. Good Luck!

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January 2020

legal corner

Internet Sales Create Risk of Out-of-State Lawsuits

by Michael

Dunagan

W.

TIADA GENERAL COUNSEL

T

he internet can be a wonderful thing. New and exciting applications are being discovered every day that make our world seem smaller. On the business side, the internet has expanded our selling opportunities and increased our buying choices. Certainly, those who buy and sell motor vehicles have found a brave new world out there where markets are no longer limited by geographical or mileage restraints.

There has also been a dark side to the internet that seems to follow all new innovations as technology shoots out ahead of the laws and regulations that were designed to protect citizens from theft and fraud. Most of our laws regarding commercial and consumer transactions were written well before the internet was even a gleam in some computer expert’s eye.

And just as good and honest businesspeople look for

January 2020

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Most of our laws regarding commercial and consumer transactions were written well before the internet was even a gleam in some computer exper t’s eye.

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Upcoming Events 2020 TIADA DEALER ACADEMY Online registration available. www.txiada.org

February 1 0 Keeping Your BHPH Dealership

Legal and Compliant 425 North Sam Houston Parkway East Houston, TX 77060

24 Facebook/Instagram Workshop: Increase Sales and Measure Your ROI Sheraton Suites Market Dallas 2101 North Simmons Freeway Dallas, TX 75207

April 6 From Inventory Acquistion to

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

OTHER TIADA EVENTS January 2 0 Board of Directors Meeting Austin, TX

April 2 0 Board of Directors Meeting Austin, TX

August 1 6 Board of Directors Meeting San Antonio, TX

1 6 - 1 8 TIADA Conference and Expo J.W. Marriott Hill Country Resort and Spa San Antonio, TX

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opportunities and markets that something like the internet can bring, so do crooks and thieves see a wonderful universe of new potential victims that they never could have reached under the old ways. Dealing with internet fraud and theft has been a challenge for law enforcement officials who have been forced to expand their activities to a worldwide stage and to incorporate new technologies into their bags of police tools.

And even beyond the scope of fraud and theft on the net, there are new issues involving the relationship of buyer and seller when a civil dispute arises.

For instance, legal disputes arise over the condition of a motor vehicle even when the potential buyer puts his or her hands on the vehicle and possibly has a mechanic inspect it. Imagine, then, what can happen when a buyer never actually lays eyes or hands on the vehicle, but relies solely on photographs and written descriptions.

One of the problems that rarely existed before the internet that the judicial system has had to contend with on an increasingly common basis, is: When does a state’s court have jurisdiction over a resident of another state who sells to a resident of that state over the internet? A number of Texas dealers have had to face up to this issue when an unhappy out-of-state buyer decided to sue over the transaction in the buyer’s home state. We have seen lawsuits brought against Texas dealers in New Jersey, California, Florida, West Virginia, and Hawaii, to name

a few. And similar issues sometimes arise with a sale within Texas, but far from the dealer’s home turf.

Obviously, a litigant in a multistate transaction would prefer to have a lawsuit heard in his or her home state. First, there is the issue of home-field advantage. A judge or jury just might be more sympathetic to a neighbor than to a foreigner.

But far more important is the cost of litigation. The defendant’s regular attorney is likely not licensed

An obvious consideration for those who sell on the internet should be a planned approach to quickly identify and settle consumer disputes on out-of-state and distant sales to avoid having to even face the issue. to practice in the other state. This means that counsel would have to be retained in the state the case was filed in, and in representing a nonresident, that attorney will probably demand a substantial retainer.

Even if the dealer’s regular counsel could obtain temporary permission to appear to challenge the jurisdiction, he or she might not have a grasp of that state’s procedural process. Then there is the problem of the expense and down time an out-of-state litigant faces in having to travel to and from the location of the court.

Consider, for example, the case in which a Texas dealer advertises a vehicle on the internet and T e x a s

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concludes a sale with a resident of Massachusetts. The vehicle is shipped to the purchaser’s home. The buyer in Massachusetts, upon the arrival of the vehicle, decides that it is not the shiny, perfect-condition vehicle that the buyer envisioned when reading the description and reviewing the pictures attached to the internet listing. The dealer takes the position that the vehicle was accurately represented and refuses the buyer’s demand to buy the vehicle back. The buyer then files suit in a Massachusetts state court, seeking to dissolve the transaction and to recover transportation costs and attorney’s fees. The Texas dealer is soon served with the lawsuit papers and must now decide how to respond.

The threshold question in this situation is whether courts of the Commonwealth of Massachusetts (or whichever state is involved) have jurisdiction over the Texas dealer. This is a question that has been the subject of inquiry by legal scholars since the beginning of the republic. The founders recognized that each of the states would be entitled to have its own court system that would operate in parallel with the federal courts, and that the federal courts would be restricted in the type of cases they could hear.

Over the years, the concept of “minimum contacts” was developed to determine when a state’s court would

January 2020

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have power over a non-resident. That is, it was determined that it would be a violation of constitutional due process for one state’s courts to exercise jurisdiction over a non-resident unless that person had certain minimum contacts with that state. Those contacts include (among others) whether the defendant had a place of business or residence in the state; whether the defendant had transacted business with residents of the state before; to what extent the defendant completed the contract or transaction in the state; and whether the defendant targeted advertising to the state’s residents (such as advertising in a newspaper or magazine that was distributed in that state).

In most cases we’ve seen, the primary issue was whether targeted advertising was involved, since the dealer did not have any presence in the other state and had not had prior sales there. The new internet-related sub-issue became whether a listing placed on an internet trading site amounted to targeted advertising since the dealer knew (or at least, should have suspected) that the listing would be seen by residents of Massachusetts, for example.

Some courts have concluded that the placement of a listing on an internet trading site, alone, would not give rise to sufficient contacts to create jurisdiction. Others

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have taken the opposite point of view. We have seen a number of articles that analyze the cases that have addressed this issue.

But when it gets down to decision time for the dealer, it really doesn’t matter all that much which way the courts in the state where the lawsuit was filed have ruled on the issue. More important than the legal issue is the practical problem of the cost of fighting the jurisdictional question in the foreign state. That cost could be as much or more than the cost of litigation over the actual consumer dispute. The point here is that even if the Texas dealer is entitled to have the case heard by a Texas court, the cost of obtaining such a ruling could exceed the amount that is in dispute.

In the event that the Texas dealer loses on the jurisdictional question, he must then defend the actual consumer case in the Massachusetts court and the costs that go with foreign litigation, whether the main case is won or lost. If the jurisdictional question is won by the dealer, then the case would have to be refiled in a Texas court.

We’ve also seen cases involving sales within Texas to a resident of a distant town. When the dispute arises, the buyer will often file suit in his or her locality, requiring the seller to hire counsel in that location and

traveling there to try to have the case moved to the dealer’s location.

An obvious consideration for those who sell on the internet should be a planned approach to quickly identify and settle consumer disputes on out-of-state and distant sales to avoid having to even face the issue.

Certainly, having the buyer come to the dealer’s location to examine and take delivery (and possibly have an independent appraisal by a mechanic) would increase the seller’s argument that Texas courts should have control. Also, a provision compelling that disputes would be litigated in the seller’s location (although not always enforceable by other states) could enhance the seller’s argument.

Using the internet to expand one’s markets beyond the state borders can have a very positive impact on sales. But a dealer’s business plan should also factor in the cost of the risk of facing out-of-state litigation.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 40 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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feature

A Practical Guide to a Successful Compliance Self-Assessment

by Jessica Cumbee

Regulatory Compliance Attorney

I

n an ever-changing regulatory environment, it is now more important than ever to establish and maintain compliance through all aspects of your business, both in your dealership and in your related finance company, if applicable. While federal agencies and consumers continue to be active in the consumer finance space, state agencies are becoming more and more involved as well. Thus, it is of utmost importance that compliance be an integral part of each piece of your business, from advertising and inventory, to sales and collections, and so much more.

Self-assessments are a valuable tool to pinpoint areas for improvement and ensure that compliant policies and procedures are implemented and being followed.

Here, I will discuss a few areas that you should make sure to review during any self-assessment.

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1

Advertising An “advertisement” is defined

in Regulation Z as a “commercial message in any medium that directly or indirectly promotes” a transaction with a consumer. A best practice is to have upper management review any advertisement before it is published. It is important that companies properly educate and monitor employee posts on social media, as these could be considered advertisements. Disclosure of certain financing terms can trigger additional disclosures under Regulation Z. Reviews and approvals of any advertisements should be documented.

2

Inventory Walk the lot and check your inven-

tory. Make sure the vehicles on hand match your inventory report and that each vehicle is accounted for. In addition, check for compliance with the FTC’s Used Car Rule by ensuring each vehicle is properly displaying 13

either a compliant buyer’s guide or a “not for sale” sign.

Finally, ensure that the buyer’s guides are properly filled out by checking the appropriate box for either “as-is” or “warranty”.

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Showroom and Sales Offices and Closing Rooms Walk your showroom, sales

offices and closing rooms. Are your licenses properly displayed and up to date? Do you have required disclosures clearly and conspicuously posted? Is all consumer nonpublic personal information (“NPI”) appropriately secured and safeguarded per the Gramm-Leach-Bliley Act? Ensure that you are familiar with what constitutes NPI, as the definition is broader than you may think. I often see unlocked computers, completed deals or information on leads left accessible to the public.

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Underwriting and Adverse Action

It is important to establish non-discriminatory underwriting guidelines so as to avoid any fair lending issues under the Equal Credit Opportunity Act (the “ECOA”). Continuous testing of the guidelines will help identify and avoid any disparate impact issues. In addition, decision makers must know what constitutes an adverse action and when to send an adverse action letter under Regulation B, the ECOA and the Fair Credit Reporting Act (the “FCRA”).

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Title Transfers and Taxes One of the

most common issues I see in the industry is failure to timely transfer title to the vehicles into the consumer’s name. A dealer has only thirty days to transfer title, while buy here, pay here dealers typically have 45 days. Failure to timely transfer title could result in a penalty of $10,000 per occurrence. Taxes must be timely remitted on a monthly basis. If a buy here, pay here dealer is eligible to remit deferred sales taxes, failure to timely remit such taxes could result in a loss of the privilege and an immediate tax liability.

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Deal Jackets and Retail Installment Sales Contracts (“RISCs”) Ensure

that your deal jackets include all required documents and are consistently filed, retained and disposed of in accordance with your records retention policy. All deal jackets should be kept in accordance with a written Safeguards Policy so as to protect all NPI. Regularly audit your RISCs to ensure compliance with Regulation Z and the Truth in Lending Act (“TILA”). APRWIN from the Office of the Comptroller of Currency is a free tool that helps to ensure accurate disclosures. Ensure that all parts of the RISC are legible, and thoroughly and accurately filled out to avoid any unfair, deceptive and abusive acts and practices (“UDAAP”) concerns. Make

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sure to only charge and itemize authorized charges, including, taxes, title/license/registration (including eTag) fees, doc fee, inspection fee, service contracts and certain types of insurance.

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Servicing and Collections Servicing

and collections is an area ripe for compliance pitfalls if you are not careful. Below are some common areas that companies struggle with. Make sure to understand your obligations under the Telephone Consumer Protection Act (the “TCPA”) and the Fair Debt Collections Practices Act (the “FDCPA”). Contact times and number of contacts are important, as are honoring “do not call” requests and restrictions on third-party contacts. Companies must be careful so as never to reveal a debt or NPI, so verification of identity is a must.

Appropriate and timely application of all payments is the collecting company’s responsibility. Fees are governed by contract and state law.

All fees should be properly disclosed on the RISC.

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Policies, Procedures and Trainings

Additional areas to consider when thinking about compliance include Red Flags, Safeguards, Office of Foreign Asset Controls (“OFAC”) checks and Servicemember Civil Relief Act (“SCRA”) requirements.

While this is not an exhaustive list of potential compliance pitfalls, it is a starting point for companies wishing to perform selfassessments. Performing a selfassessment may help you identify areas of potential concern that may require tighter or additional controls. A compliance consultant or attorney can help you develop and implement a compliance management system to protect against regulatory scrutiny and consumer harm.

Repossessions

Repossessions are best performed by a licensed and bonded third-party. Once a vehicle is recovered, proper notices, including a notice of intent to sell, must be timely sent in accordance with applicable laws. After the sale of collateral, the company must properly account for any deficiency or surplus, and any surplus must be paid to the consumer. Personal property must be accounted for and securely held. Notice must be given to the consumer to retrieve the property, and fees for storage may not be charged.

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and timely respond to credit disputes. A quality assurance check on a Metro II file prior to submission will help ensure accurate reporting.

.

Credit Reporting The

FCRA governs credit reporting. Companies that report credit must establish policies and procedures to allow consumers to dispute reported information.

Lenders have a duty to investigate

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feature

2019 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. For the 2019 numbers, they contacted 314 car buyers from November 1–27, 2019. They surveyed only active dealer accounts randomly selected from contracts that were purchased from January 2015 through October 2019. For the 2018 numbers, the sample size was 372 car buyers also randomly selected from active dealer accounts with contracts that were purchased from January 2014 through October 2018. All respondents were interviewed in person at their payment center and over the phone.

%

WHAT BROUGHT YOU TO THE DEALER? 50 45 40 35 30 25 20 15 10 5 0

44

41

24

23 8 0

0

19

19 9

7

2.5

1

1.5

0

0

2 0 19

2 0 18

TV/Radio

Magazine/NP

Sales Person Call or Text

Internet Search

Dealer Website

Referred by Friend

Repeat Customer

Driving By

%

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

46

33 26 16

18

17 11.5

6

5 2019

Location

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Financing

2018 Price

Customer Service

Selection/Inventory

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WHEN DO YOU PLAN TO BUY YOUR NEXT VEHICLE? 60 49

50 39

%

40 30

30

26

22

22

20 10

7

5

0 This Year

Next Year

Future

2019

Undecided

2018

WOULD YOU BUY NEW OR USED? 70

62

60 50

43.5 38

38

%

40 30

18.5

20 10 0

0 2019

2018

New

Used

Undecided

WHAT KIND OF VEHICLE? 45 40 35

%

30

37

39.5 35

35 27 23

25 20 15 10 5

1

0

1.25

0

2019

Truck 18

1.25

2018

SUV

Car

Van

Undecided T e x a s

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WHAT AMOUNT OF MONTHLY PAYMENT CAN YOU MAKE ON THE NEXT VEHICLE? 45

40

40

40.5

35

%

30

26

29

25 20

19

16

15

15

13.5

10 5

0

0 $300 or Less

$301-$400

$401-$500

2019

$501+

1

Cash in Full

2018

DO YOU PLAN TO BUY FROM THE SAME DEALER AS YOUR LAST PURCHASE? 60

53

51

50

%

40 30

26

23

23.5

23.5

20 10 0 2019

2018

Yes

No

Undecided

WHAT IS THE REASON YOU WOULD NOT BUY FROM THE SAME DEALER? 70

63

60

%

50 40 30 20 10 0

27

25

24

27

15 1

4

8

6 0

0

2019 Customer Service

Price

Not Enough Selection

5

3

2018 Car Problems

Closed/Moved

Wants a NEW vehicle

Other

*Multiple Answers Given in 2018

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WHICH WAY DO YOU PREFER YOUR CAR DEALER CONTACT YOU? 38%

23%

Mail Email Text 39%

*Asked in 2019 only

Important Findings

Only 15% of the customers that bought cars were influenced by the dealership’s website or internet search of the

dealership. This number grew in 2019 compared to 2018 but should really average 80% based on national surveys.

This shows that digital marketing is still our biggest opportunity Most important reasons that customers buy are showing an interesting change in trend. Customers are willing to

five up on “more selection” if they can get “financing”. The “selection” preference dripped from 46% to 33% this year, which was offset by the need for “financing” — increased from 12% to 26% in 2019.

The urgency to buy in the next 13 months has dropped from about 40% in 2016/2017 to 30% in 2018/2019. That is

one in three customers that are out of the market.

Customers prefer that the dealer contact them on their mobile devices, either by email or text, rather than through

regular mail service.

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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 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*

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

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

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

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

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 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

AMERICA’S AA DALLAS

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

IAA DALLAS*

El Paso

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 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

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, 10:00 a.m. $AVE : $200 T e x a s

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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

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

ALLIANCE AUTO AUCTION LONGVIEW

Houston

ADESA HOUSTON

www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030 GM: Angela Williams 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.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

IAA LONGVIEW*

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

HOUSTON AUTO AUCTION

www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566, Fax 713.644.0889 GM: Tim Bowers Tuesday, 1:00 p.m. $AVE : $200

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

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

IAA PERMIAN BASIN*

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

MANHEIM SAN ANTONIO**

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

SAN ANTONIO AUTO AUCTION**

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 Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 GM: Carmen Robinson (Sales Manager) Friday, 10:00 a.m. $AVE : $200

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The best dealers in Texas, the best education anywhere.

Save the date

August 16-18, 2020 JW Marriott San Antonio Hill Country Resort & Spa

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I GET MORE BUYING POWER, MORE OPTIONS AND MORE TIME WITH TOOLS AND SUPPORT NEXTGEAR CAPITAL PROVIDES. THAT’S MY PATH TO +MORE

IMRAN AHMED | A.I. MONROE AUTO SALES | BOUNTIFUL, UT

NextGear Capital allows me to buy more cars and floor plan their transportation costs, which frees up my cash flow for other things, like saving for a bigger lot. Without the support of NextGear Capital, I definitely wouldn’t be where I am today.

Discover where we can take you. Visit nextgearcapital.com. *This testimonial was received via interview, audio and/or video submission. This testimonial is based on this dealer’s individual experiences, reflecting real life experiences of a NextGear Capital dealer. NextGear Capital does not claim they are typical results that dealers generally will achieve. This dealer’s experiences may not be indicative of future performance or success of any other dealers. Some of the testimonial has been shortened so the whole message is not displayed due to length and/or relevance.

on the cover

here comes

by TIADA Staff

T

ax season has changed over the last few years. It’s not as fast and furious as it once was but it is still the busiest time of the year for auto dealers. Making sure you are prepared is key. The Texas Dealer reached out to a few dealers to see what they do to get the most out of tax season.

John Foley is the Director of Operations for CarLotz, a nationwide consignment dealership that has been in business for 8 years.

They opened their first Texas store

26

last year in San Antonio. “For us, we’ve mostly seen that ‘tax season’ is not as predictable as it once was, meaning the spikes have come at different times in different years.

This makes marketing and inventory acquisition/management a challenge.” When asked about preparing for tax season, Foley added, “We make sure we have enough of the right inventory, focus our marketing efforts on driving those buyers to our stores, and take extra steps to keep our team motivated

as they work through heavy volumes of buyers. We don’t bring in more staff, but we do make sure we are not short-staffed. In the past, we have not changed our business hours, though we tend to stay a bit later during this time.”

CarLotz employs about 160 people and they sell around 7,000 cars a year. They offer various financing solutions for buyers with good and bad credit. The average sales price for a vehicle at CarLotz is $14,000.

As for tax season predictions, “Like T e x a s

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January 2020

No matter what part of Texas you are in, all your customers are going to be getting tax returns very soon. Putting a little thought into your marketing, inventory, staffing and processes can help ensure you have a successful season. last year, I think we won’t see a real spike in business until April.

And even then, I don’t think ‘tax season’ is the same spike those of us who have been in the business for years might be used to. With buyers able to take advantage of financing opportunities all year long and manufacturers (operating on a fiscal year) diving deep for business in March, we’re likely to see a steady volume of used car business through most of the selling season.”

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Jeff Stevens opened his BHPH dealership XTRA Auto Center in Pampa in 2009 and just celebrated his 10th year anniversary earlier this year. He sells 250 cars a year with six employees: “Seven or eight years ago tax season would start earlier and would last longer. Now it feels like three days of tax season” Inventory is the key though. Jeff added, “We buy more inventory, we really try to stack up. That’s our biggest deal. We keep same hours and same staff. We try to brand throughout the year, so we have a presence when people are looking to buy.”

While predictions are tough, Jeff said, “We heard from some local customers that they are expecting bigger tax returns this year so that’s a bit positive.

However, tax season is always fun because you never know until it’s here.”

Joshua Watson of Watson Motors in Bryan agreed, “Hard to predict an outcome for tax season, as funding technology has increased so has the volatility of this selling period. We set goals based on our inventory availability while maximizing each and every deal.” Watson Motors is a BHPH dealership that started in 1946. They have one location and six employees.

They sell about 168 units per year and the average retail vehicle price is $9,419.

“The season has condensed increasingly each year. Allotted EFT payments and daily bank card limits continue to pose issues as all return funds are not readily available to the customer.

The scarcity of lump sum funding coupled with inventory shortages and price increases have taken a toll on our market.” Watson does give some attention to the lot and price list to get ready for tax season. “Increase inventory on hand and thoroughly inspect any aged

635 Fritz Dr. Ste 210 Coppell, TX 75019 469-637-0150

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Local Chapters CORPUS CHRISTI G.R. Moore The Car Shack (dates announced at www.txiada.org)

EL PASO Ricardo Gardea Cars Plus Meeting – 3rd Friday (Monthly)

FORT WORTH Chris Templin Auto Land Meeting – 4th Thursday of Jan–May and Sep–Oct

HOUSTON Rudy Roudbari Sarco Enterprise Meeting – 2nd Tuesday (Monthly)

SAN ANTONIO Jose Engler Irving Motors Corp (dates announced at www.txiada.org)

VICTORIA Dennis Schroller Victoria Autos Direct Meeting – 1st Monday (Monthly)

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units and make sure they’re ready to leave first. Also, rearrange the lot to maximize customer parking availability. We print two different price lists for sales staff. Our normal list is sorted by year model and grouped by manufacturer. During tax season we make a price list, sorted and grouped by the amount of minimum down payment for each vehicle, i.e.: $1000, $1500, $2000.”

Trevino’s Auto Mart has been in business for 28 years in McAllen, TX. Mike Trevino has a five staff member operation on location.

They sell about 325 units a year and average retail price is $19,500.

Online shopping has created some changes. “We get hit pretty hard immediately because of online advertising. People have been looking online and as soon as they get their refund check they head over to purchase what they’ve already selected or scouted.”

Mike focuses on inventory, but he also wants the lot to look good when customers arrive. “We try to stock up a little earlier and expand our inventory by at least 30 more units. I run through the operations to make sure everything is smooth.

Right now, for example, I’m outside working on creating more parking spaces because it gets crammed in here. We also try to dress up the car lot a little bit with some painting and landscaping.”

Staffing is very important, “We block out paid time off so nobody

Allotted EFT payments and daily bank card limits continue to pose issues as all return funds are not readily available to the customer. can take PTO during that time unless it’s an emergency. It’s all hands-on deck, everyone is there every day we are open. We also tend to pay more overtime because we get busy.”

Mike was pretty optimistic about tax season hoping he could double what they did last year.

No matter what part of Texas you are in, all your customers are going to be getting tax returns very soon. Putting a little thought into your marketing, inventory, staffing and processes can help ensure you have a successful season.

Please Welcome Our Newest TIADA Members DEALER MEMBERS Auto-Mex Brenda Sandoval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PO Box 29084, Dallas, TX 75229 CEEJAY HAULAGE Christopher Ogbonnna . . . . . . . . . 4739 North Cashel Circle, Houston, TX 77069 Corvette Warehouse, LLC Douglas Ernest . . . . . 2158 W Northwest Hwy, #400, Dallas, TX 75220 JJ’S Auto Sales Mohammed Hoque . . . . . . . . . . . . . . . . 7134 Bellfort St., Suite B, Houston, TX 77087 Public Auto Auctions Frederick Britton . . . . . . . . . . . . . . . . . . 12253 Camino Real, Kyle, TX 78640 Shift Automotive Group Derek Beard . . . . . . . . . . . . . . . . . . . . . 5610 58th St, Lubbock, TX 79424 Texotic Motorsports Frank Herzik . . . . . . . . . . . . . . . . . . . . . . . . . . 3913 Arc St., Houston, TX 77063 Vance Eugenia Vance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 508 Wisconsin, South Houston, TX 77587 Your Car Store Chris Donnelly . . . . . . . . . . . . . . . . . . . . 17000 NW Freeway, Jersey Village, TX 77040 T e x a s

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January 2020

TIADA Auction App turns your phone into

CASH

*

Score savings on your phone with coupons that range from $75 to $250 each on buy-sell fees.

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

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feature

How to Get Involved in TIADA’s Legislative Affairs in 2020

by Chris Bean TIADA Staff

“ P lan for what is difficult while it is easy, do what is great while it is small.” ~Sun Tzu

T

ime flies. While the 86th Texas Legislature adjourned back in June of this year, it is not too early to start planning for the 87th Legislature in January of 2021. Speaking of planning, have you considered getting involved in the legislative affairs program with the Texas Independent Automobile Dealers Association in 2020?

“Plan for what is difficult while it is easy, do what is great while it is small.” Sun Tzu

January 2020

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While January 2021 seems far away, November elections will be here before you know it. Now is the time to start looking ahead at what you can do to make a difference for your business. TIADA is proud of our recent legislative successes with key revisions to named driver insurance laws and protecting liens from unscrupulous salvage operators. There will always be new challenges ahead, but it will be the action and effort of members to help protect our best interests.

It is often said that if I don’t speak up in politics, someone else will. One dealer CAN make a difference.

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By working together, we can help tell our elected officials about the impact that independent dealers have on the state’s economy: 662,574 total auto jobs in the state, 3.9% of the state workforce, $2 Billion in annual revenue from used car sales taxes.

Every TIADA member contributes to the Texas economy via taxes, fees, and regulations. Now is the time to get involved to determine how those laws, taxes, rules, forms, and fees are utilized.

Every TIADA member can make a difference. Do you believe that certain laws and regulations are having a negative impact on your business? Speak up! Reaching out to your elected officials and voicing your support (or opposition) to a current law or proposed bill only takes a few minutes. Each dealer has a sphere of influence in their community. You can help by getting your employees and families involved in upcoming elections.

A simple act such as putting a political candidate’s sign at your dealership can provide lasting impressions on our policymakers.

Getting involved is easier than ever by making a donation to INDEPAC. INDEPAC is TIADA’s political action committee and provides resources to elected officials that support our businesses. Large contributions are always welcome, but smaller contributions are just as important. $10-$25 a month can really make a difference for our political advocacy efforts. Political donations are easy to make. INDEPAC can schedule recurring monthly 32

Grassroots is about relationships.

donations of $10-$25-$50 per month (on personal checking accounts). Every PAC donation helps your industry. INDEPAC encourages you to get involved today!

What is grassroots?

It is not always about political donations, but communities.

Do you have a friend, employee, or relative that is related to an elected official or works in government? Do you attend church with a State Representative or play golf with an elected official? Let TIADA know!

Grassroots is about relationships. It is not always about political donations but communities. Do you have a friend, employee, or relative that is related to an elected official or works in government?

Do you attend church with a State Representative or play golf with an elected official? Let TIADA know! It is often these types of relationships that are the difference between success and failure in the political process. TIADA is here to help and we welcome your inquiries and contacts.

Greg Zak of Dixon Motors in Houston notes “Through INDEPAC I have been able to meet and develop personal relationships with several legislative members. These relationships have been vital to the legislative efforts of TIADA. Every TIADA member should take advantage of this opportunity. Who knows what we could accomplish if more dealers get involved.”

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ATTENTION STUDENTS!!!

$1,000

Marvin Norwood Scholarship DEADLINE

May 11, 2020 {Applications and/or any required documents received after May 11, 2020 will NOT be accepted.}

SCHOLARSHIP APPLICATION Date: Name:

DOB:

Address: City:

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.

State:

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

Telephone Number: High School Last Attended:

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

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):

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.

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).

January 2020

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Zip:

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

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23

LOCATIONS

May this New Year bring you success and the fondest of memories!

Our America’s Auto Auction Family wishes you the best in all that is to come.

Atlanta, GA Austin, TX Baton Rouge, LA Birmingham, AL Boston, MA Bowling Green, KY

4

Chicago, IL Dallas, TX Detroit Toledo, OH Greenville, SC Harrisburg, PA Houston, TX

Interstate 94, MI Jacksonville, FL Kansas City, MO Lancaster, PA North Houston, TX Pensacola, FL

Austin

LOCATIONS IN TEXAS

Dallas

TUESDAYS & THURSDAYS AT 1PM 219 N. Loop 12 Irving, Texas 75601 Phone: 972.445.1044

Pittsburgh, PA St Louis, MO Tulsa, OK Virginia Beach, VA West Michigan, MI

TUESDAYS & THURSDAYS AT 1PM

16611 South IH 35, Buda, Texas 78610 Phone: 512.268.6600

Houston

THURSDAYS AT 1:30PM

1826 Almeda Genoa Rd, Houston, Texas 77047 Phone: 281.819.3600

AuctionCredit is located within each of our Texas facilities for all of your auction financing needs. www.auctioncredit.com

North Houston

MONDAYS AT 6:30PM

1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

Dealer Academy Education Offerings for Winter/Spring 2020

Instructor-Led Courses Keeping Your BHPH Dealership Legal and Compliant 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 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. He will focus on the practical side of compliance that understands you have a business to run -and you want to run it right.

9:00am - 4:00pm

$249 TIADA Members, Each Additional $199 (must be from same dealership), $499 Non-members MONDAY, FEBRUARY 10, 2020, HOUSTON

Facebook/Instagram Workshop: Increase Sales and Measure Your ROI Presented by Lindsay Shearon, Dealer Consultant with 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 24, 2020, DALLAS

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.

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. Wrap up the day with an interactive Q & A session with a panel of top dealers in Texas that will share how these practices are being implemented at their dealerships and walk you through their process of getting vehicles from the auction to the frontline.

9:00am - 4:00pm

$249 TIADA Members, Each Additional $199 (must be from same dealership), $499 Non-members MONDAY, APRIL 6, 2020, ARLINGTON

Cashflow, Budgeting, Forecasting, Sales and Collections – Critical Topics for the Success and Continued Growth of your Businesses Presented by Bill Elizondo, Chief Operating Officer, AFS Dealers, LLC BHPH/LHPH Web Based Software, Training and Consulting.

Choose Full Day or Half Day 9:00am - 4:00pm

The morning session will cover cashflow (Where are you now?) budgeting (Where do you want to go?), and forecasting (Where have you been?) and will focus on strategies around these areas. In the afternoon, dive into the Selling System and best practices and find out how your collection practices will empower your business as “The Real Money Maker.” Come for the whole day or just the half that works for you!

Full Day: $249 TIADA Members, Each Additional $199 (must be from same dealership), $499 Non-members Half Day (a.m. OR p.m.): $149 TIADA Members, Each Add’l $99 (must be from same dealership), $299 Non-members

MONDAY, JUNE 8, 2020, HOUSTON

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

Texas Independent Automobile Dealers Association

e-Tag Supplies —

In Stock for Immediate Shipment!

MOTO

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ETAIL

INSTAL

LMENT

SALES

REDITOR SELLER/C : ADDRESS ZIP: CITY, ST,

CONTR

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feature

4 Sales Lessons From Real Car Shoppers

by Joe Horlacher

Regional Program Manager, Foureyes

I

’ve worked with auto dealerships across the country and 99% of the time, when I ask what their primary goal is, the answer is increasing car sales. A study by DrivingSales found that auto sales could rise up to 24% if the retail experience improves, which is why I always recommend focusing on the sales process at the dealership to see where improvements can be made to close more sales in their existing pipeline.

After analyzing sales calls with real car shoppers, I’ve seen firsthand that there are common frustrations that customers experience with auto dealerships that are negatively impacting sales. To learn from a few of these calls and improve follow up with car buyers, here are four tips for car salespeople to improve sales process at their dealership.

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Sales Lessons From Real Car Shoppers Limit Hold Times

This should go without saying, but limit the amount of time that sales leads spend on hold. It doesn’t matter how enjoyable your hold music is, no one likes to sit on hold for longer than a minute and you risk frustrating or even losing leads if they hang up. Here are a few examples of what NOT to do: Lead A called and asked to speak with a used car salesman. He was put on hold for 4 minutes.

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The call was disconnected before he spoke with anyone.

Lead B called and said she wanted to purchase a 2007 Chevrolet Suburban listed on the dealership’s website. She was put on hold for 8 minutes and hung up before being given the status of the vehicle.

Lead C was put on hold for 12 minutes before hanging up.

Make it your policy that no one waits on hold for a minute or longer. If a salesperson isn’t available or you need to look something up, instead of putting a lead on hold, take a detailed message and let the customer know when they’ll receive a call back. Monitor hold times to fix any lingering issues with your sales process or phone system that may be leading to longer hold times.

Make Sure Leads Can Leave a Voicemail

We’ve all been there, sitting through six or seven rings before being sent to voicemail. Waiting for an answer only to reach voicemail is frustrating enough, but it’s even worse when you spend that time waiting only to hear, “we’re sorry, the voicemail box of the person you’re trying to reach is full… .”

Learn from these examples and never put your leads through this frustrating process:

Keep Your Leads Updated

Especially for used and pre-owned inventory, it’s important to keep prospects in the loop when specific vehicles sell or are no longer available. Don’t make these mistakes: Lead A drove two hours to the dealership to view a 2003 Dodge Ram and was informed it sold after arriving.

Lead B spoke with a salesperson to confirm the availability of a 2017 Lincoln MKC that was on the dealership’s website. He was informed the car was no longer available and when he tried to ask if there were any other similar cars, the salesperson was already hanging up.

Let your leads know when a vehicle they’ve been looking at has sold, and use that as an opportunity to recommend similar vehicles they may be interested in.

Price drops, new inventory, sales events, and rebates or incentives are other relevant updates that your leads appreciate hearing about proactively. Out of stock inventory doesn’t have to mean you lose the sale, know how to turn around these inconveniences.

Lead A called the dealership and was transferred to a salesperson, but their mailbox was full. Lead A called the dealership back and was sent to voicemail again.

Lead B called wanting to ask about the price and availability of a 2017 Ram 1500 he saw on the dealership’s website. The call was transferred to a salesperson whose voicemail box was full and unable to accept new messages. Lead B disconnected the call and did not call back.

You invest too much time following up with leads to miss out when they call you back. Clean out your voicemail box (and review your voicemail greeting!) regularly to make sure any prospects who need to contact you aren’t turned away by an automated recording.

Many more Consignors @ DAAOKC.COM

1028 S Portland, OKC 73108, PH: 405-947-2886

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Always Be Closing

resource guide The TIADA Website: www.txiada.org Members can log in with their username/password and access our Dealer Member Director y, Legislative Action Center, Compliance Consultation Ser vice 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.

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov

Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov

Texas Comptroller 800.252.1382 www.window.state.tx.us

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 40

Dealers miss opportunities nearly three-quarters of the time by not asking callers for an appointment. When you have a warm lead on the phone, don’t waste the opportunity! Some customers want to get as much information as they can over the phone, before traveling to a dealership and stepping on the lot. Take the time to answer their questions and arrange next steps before ending the call.

Lead A called the dealership to inquire about the price and availability of a specific vehicle. The lead was transferred four times and each time was transferred to the wrong department. He eventually spoke to a salesperson who could confirm availability but didn’t provide their name or discuss next steps.

Lead B asked about the price of a vehicle and the salesman said to look online for the price before ending the call.

Lead C called to confirm the price of a used vehicle after viewing it online. The salesperson did not identify themselves, did not attempt to gather any contact information, and told them to come to the dealership in person before hanging up.

Start by introducing yourself, making sure you understand what they’re looking for and answer their questions, and then focus on the next steps. Would they like to schedule a test drive? Are there any additional resources you can share with them? Do they have questions about down payments or financing? Don’t let one conversation end before you know when your next conversation will be.

Takeaways for Car Salespeople

The best salespeople know that there’s always room to improve. By putting these tips to work and continuing to refine sales process at your dealership, you can improve engagement with leads, save interested car buyers from slipping through the cracks, and have more impactful sales calls that are quicker to close. 54% of consumers would buy from a dealership that offers their preferred experience. Give your customers what they want; by improving the customer experience at your dealership, you can improve your sales numbers as well.

Foureyes, a sales intelligence platform, employs user-level data from over 150 million website sessions to improve the automotive sales experience. Joe can be reached at joe@foureyes.io.

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Ignorance is no defense.

Know the law.

Repo and financing issues are among the most common violations found by the OCCC. If you own a previous edition of these books from 2008 or earlier, it is recommended that you upgrade to the current editions.

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TIADA Member Price: $125 (non-members $175)

Texas Automobile Repossession: A Lien Holder’s Legal Guide Everything you need to know about repossessions is addressed in this book, including Notification Requirements, Post-Repo Procedures, Private Sale vs. Strict Foreclosure, Bankruptcy, Post-Disposition Accounting, Tracking and Shut-off Devices, the 60% Rule and more. PLUS – includes all required forms.

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Now available for purchase online at www.txiada.org under “Legal Resources” or call 512.244.6060 to order by phone.

When ordering online, login with your TIADA username and password to receive the discounted rate. All prices include shipping. Orders are shipped in 3-5 business days. texas independent automobile dealers association

Attorney Michael W. Dunagan is the author of the two must-have books for every Buy-Here, Pay-Here dealer in Texas. Mr. Dunagan has been General Counsel to TIADA for over 40 years.

His law firm specializes in the representation of independent Texas car dealers.

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Keep inventory moving with flexible financing.

Getting cars on the lot without the hassle of traditional financing.

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Online Courses You can quickly create an account, register and purchase these courses at our eLearning site.

How to Become An Independent Auto Dealer An On-Demand eLearning course Independent dealers across the U.S. average gross profits of about $250,000 annually, according to NIADA. But how do you get started in the business? Just what do you need to know?

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An Introduction to Transferring Titles This online course is a one hour, deep dive into the title transfer process.

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Contact us at the TIADA office at 512.244.6060 independent automobile or email ustexas if you need assistance. dealers association

TIADA texas independent automobile dealers association

Texas Independent Automobile Dealers Association

behind the wheel 2019, Before You Go

E

ach year I receive numerous compliments about the work the association is doing on behalf of our members. Most come in the form of a verbal attaboy over the phone. We have very high expectations, so I usually follow with the standard response, “thank you very much and please let me know if we are ever not meeting your expectations”.

Of course, I get some of those too when we do drop the ball.

But, every so often some of our members feel compelled to send me an email or write a note on a renewal letter and before we put 2019 to bed, I wanted to toast our team and share a few comments we received last year: “Just wanted to say thanks again to you and the staff for all the time and effort that went into making the event this week successful. I was impressed with how streamlined things were and pleased to be a part of the process. Thanks for what you do for the association and please let your team know we appreciate what they do too.”

— Chad, Chacon Autos, Dallas

by Jeff

Martin TIADA EXECUTIVE DIRECTOR

“I’m not renewing because I am closing down, but I was member from 2010–2019. Best money I ever spent; you guys are a great organization.

Thanks for all you do.”

— Dan, Pinehurst Auto Sales, Inc, Pinehurst “Thank you and your team for getting on this and resolving the problem. You guys are a great support group.”

— Greg, Legend Motorcars of Garland, Garland “It’s comforting to know that our membership in TXIADA affords us this type of treatment.”

— Thomas, Magnolia Auto Group, Houston

“Great to know that we belong to an organization that is willing to help and has the teeth to accomplish something!”

— Diana, Brink Fleet, Lubbock

...before we put 2019 to bed, I wanted to toast our team and share a few comments we received last year.

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“Y’all are both ROCK STARS and worthy of 2x paying for a membership [However I will deny it was me who suggested paying more!] Look forward to learning more in the near future and seeing both of you in San Antonio.”

— Michael, Dixon Motors, Houston

“Well done! Thank you, this is tremendous!”

— Ray, Mike Carlson Motor Company, Burleson

“I did read the article when it came out in the email. Thank you for taking the time to put that together and clearing up what the requirements are and some of the downfalls/risks. I have that email pinned to the top of my email list for future reference.”

— Jeff, Budget Used Car Sales, Killeen

“Thank you so much for your help. It really gives a sense of security to know someone is out there, like you, looking after us.”

— Nitin, Kar Market, Houston And to that we say; Chad we appreciate you attending the TIADA Day at the Capitol, you guys make it all work. Happy retirement Dan, we were glad to represent you for the last nine years. Greg, Thomas and Diana, we love helping our members from so many different areas of the state. Michael, I have the part about paying more in writing. Ray, we have fought that named-driver issue for years and yes, it is tremendous. Jeff, glad to know someone is reading those emails. Nitin, gives us a sense of pride to know we have members out there like you. Thanks to all of you for a great 2019. Here is to an even better 2020.

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