Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753
CHAIRMAN OF THE BOARD
Eddie Hale/Neighborhood Autos PO Box 1719 Decatur, TX 76234
SECRETARY
Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301
VICE PRESIDENT, WEST TEXAS (REGION 1)
Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915
VICE PRESIDENT, FORT WORTH (REGION 2)
Tyler Simmons/Abilene Used Car Sales, Inc. 2150 N. 1st Street Abilene, TX 79603
VICE PRESIDENT, DALLAS (REGION 3)
Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas, TX 75218
VICE PRESIDENT, HOUSTON (REGION 4)
Lowell Rogers/11th Street Motors 1355 N 11th St, Beaumont, TX 77702
VICE PRESIDENT, SOUTH TEXAS (REGION 6)
Cesar Torres/Lofi Motors 4634 Ayers St. Corpus Christi, TX 78415
VICE PRESIDENT AT LARGE
Christina Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017
VICE PRESIDENT AT LARGE
Lucas Ponder/Auto Smart 3202 Summerhill Rd. Texarkana, TX 75503
TIADA EXECUTIVE DIRECTOR
John Frullo
9951 Anderson Mill Rd., Suite 101 Austin, TX 78750
Office Hours M-F 8:30am
john.frullo@txiada.org
TexasDealer contents
officers’ message
Amplify Your Voice
As members of the TIADA, we share a common goal: ensuring our industry’s voice is heard and respected at the legislative level. One of the most effective ways to achieve this is by attending TIADA’s Day at the Capitol. This unique event offers us the chance to directly engage with lawmakers or legislative staff, advocate for our industry, and deepen our understanding of the legislative process.
It’s important to remember that our legislators come from diverse backgrounds — they’re doctors, small business owners, lawyers, and even former teachers. They’re regular people with a commitment to serving their communities. Most importantly, they want to hear from their constituents. Your perspective as a dealer matters to them because it’s grounded in real-world experience. When you share how a piece of legislation impacts your business and your customers, you’re providing invaluable insight that can influence their decisions.
The Day at the Capitol underscores the power of collective action. Imagine a single dealer speaking with a legislator— their voice might be heard, but the impact could be limited. Now picture a group of 100 dealers meeting with that same legislator. The message is amplified, and the weight of our industry’s concerns becomes impossible to ignore. The more dealers who attend, the better positioned we are to create a favorable environment for independent automobile dealers in Texas. Your presence matters, not just for your
See pg. 20 to register for the 2025 Day at the Capitol.
by Eddie Hale Neighborhood Autos (Decatur)
TIADA CHAIRMAN OF THE BOARD
voice but for the strength it adds to ours as a unified group.
The Day at the Capitol provides a rare opportunity to engage in direct, one-on-one conversations with the people shaping our state’s policies. This is your chance to articulate the challenges you face as a dealer and advocate for solutions that will help our industry thrive. These personal interactions allow you to put a face and a story to the issues at hand, making them more relatable and impactful to legislators. By showing up, you give yourself and our industry a stronger voice in the legislative process.
Participating in the Day at the Capitol isn’t just about advocacy — it’s also an opportunity to learn. As a businessperson, understanding how laws and regulations come to be can provide valuable insights into the broader forces shaping our industry. By seeing the legislative process up close, you’ll gain a deeper appreciation for the importance of staying engaged and proactive, not only for the health of your business but for the industry as a whole.
Our role as dealers extends beyond our individual businesses. We are advocates, educators, and stewards of an industry that plays a vital role in the Texas economy. By attending the Day at the Capitol, we can work together to ensure our voices are heard, our concerns addressed, and our future secured. I encourage every dealer to make this event a priority. Your participation makes a difference— for you, for your your peers, your community, and for the industry we all care about so deeply.
By attending the Day at the Capitol, we can work together to ensure our voices are heard, our concerns addressed, and our future secured.
feature
A Dealer’s 2025 Economic Forecast
by Dr. John Coles Vice President of Data and Analytics at ACV Auctions
The last five years in the automotive industry have been historic; from chip shortages to price inflation, we have seen so many rapid changes that one can hardly say where each new disruption began, and the previous event ended. The magnitude of the changes in the automotive industry have been comparable to the oil embargo of the 70s or Great Recession of 2008. From fluctuating interest rates and inflation to the growing role of digital retailing, the year ahead promises both challenges and opportunities.
Understanding and adapting to these trends will be critical for independent automobile dealers in Texas. This forecast explores the most pressing issues—such as interest rate impacts, inventory strategies, consumer behavior, and broader economic conditions—offering insights and strategies to thrive in a dynamic environment. Additionally, we’ll highlight innovative opportunities, like enhancing customer service, that can help dealers differentiate themselves in a competitive market. Whether it’s addressing affordability concerns, refining inventory mixes, or leveraging new technologies, 2025 is a year for proactive decision-making.
The Interest Rate Impact
Interest rates have been a central theme in recent years, with steady increases putting pressure on both dealers and buyers. Heading into 2025, the Federal Reserve’s decisions remain pivotal as they directly influence the cost of borrowing and overall economic confidence. Balancing the dual mandate of inflation and unemployment, the Federal Reserve has retained significant flexibility in policy options as inflation is cooling and the job market remains relatively strong heading into 2025 [5].
Over the last few years, the twin pressures of fewer vehicles entering the market and higher interest rates have made operations and financing more challenging, directly impacting consumer affordability. For buyers, this translated into higher monthly payments, often pushing them toward lower-cost vehicles or delaying purchases altogether. Similarly, dealers faced challenges when securing financing to maintain or expand inventory, as elevated borrowing costs and inflation in the used vehicle market limited independent dealership flexibility, despite record profits in some pockets of the industry.
resource guide
The TIADA Website: txiada.org
Members can log in with their username/ password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.
License Renewal Certificate
TexasDealerEducation.com
Texas Department of Motor Vehicles
888.368.4689
txdmv.gov
Office of Consumer Credit Commissioner
800.538.1579
occc.texas.gov
Texas Comptroller
800.252.1382
comptroller.texas.gov
NIADA
817.640.3838 niada.com
REPOSSESSIONS
American Recovery Association
972.755.4755
repo.org or contact
TIADA state office
FORMS
Burrell Printing
512.990.1188
burrellprinting.com
Finishing 2024, gross profit per vehicle was down across the board, compared to peak levels–particularly as the levels of inflation experienced in the automotive market over the last few years appear to be on track to return to pre-Covid rates of normality. That being said, average profit-per-vehicle looks to start the year still above the typical profits in 2018/2019 when looking at a monthly index. To retain elevated profit levels, the challenge for dealers will be to leverage speed in lot operations and move vehicles more quickly to offset the comparative drop below 2021-2022 peak profits.
Inflation remains a key concern for many consumers heading into 2025, as noted by Director Joanne Hsu at the University of Michigan [4]. While core inflation has been declining through 2024, different perspectives on the potential policy impacts of the incoming administration have resulted in divergent consumer views on changes in inflation in 2025. While these macro trends are important, in the automotive sector supply and demand remain the critical driver of pricing and inflation pressures.
To contend with these challenges, dealers must stay nimble and proactive. Financing customer education could become a valuable differentiator, enabling buyers to make informed decisions in a high-interest environment. In addition to customer-focused strategies, dealers should consider refining their inventory mix to align with shifting consumer preferences. Prioritizing vehicles with lower price points or those with strong resale value can help address affordability concerns. For example, compact cars, hybrids, and older certified pre-owned vehicles may appeal to buyers seeking reliability at a lower cost.
Another key strategy involves strengthening relationships with lending institutions. Collaborating with local banks and credit unions to secure competitive rates or flexible loan packages can create a win-win scenario for dealers and their customers. By negotiating favorable terms or promoting special financing offers, dealers can enhance their value proposition and keep foot traffic steady.
While the current interest rate environment presents significant challenges, it also creates opportunities for dealers to differentiate themselves through innovative solutions. Dealers who embrace financial transparency, educate their customers, and optimize inventory strategies will be better positioned to weather the high-rate storm.
Inventory Strategies
As we head into 2025, independent dealers face the challenge of identifying the most profitable opportunities within the used vehicle market. Recent rebounds in new vehicle production and supply chains are putting downward pressure on new car prices,
indirectly influencing demand for specific segments of the used market. Independent dealers are well-positioned to benefit from sustained valuations for vehicles in the 1- to 5-year and even some in the 6- to 8-year range. These model age segments have become increasingly desirable due to a production shortfall of more than six million vehicles between 2020 and 2023, which has left a gap in the market for lightly used, high-quality inventory. Vehicles in these age ranges, often sourced from lease returns, commercial fleet liquidations, and repossessions, offer strong profit potential as buyers prioritize affordability without compromising on reliability or features. Independent dealers who can secure inventory in these categories will have a significant advantage in capturing consumer demand as economic conditions and market preferences shift. At the same time, the lack of 1-5 year old vehicles means that a higher percentage of the vehicles re-entering the wholesale market are in the 6- to 10-year and 11- to 15-year segments; this dynamic presents both challenges and opportunities in 2025. Increased supply in these age ranges is expected to drive down prices, as we observed during the end of 2024, but this will also make these inventory segments more accessible to budgetconscious buyers or those seeking secondary vehicles. Dealers will need to carefully assess their local markets to determine how best to position these vehicles, whether through competitive pricing, flexible financing options, or targeted promotions. By maintaining a balanced inventory strategy and monitoring supply and demand dynamics across all segments, independent dealers can maximize profitability while meeting the diverse needs of their customers.
Fluctuating fuel prices also play a significant role in shaping inventory decisions. Historically, when
gas prices rise, demand for fuel-efficient vehicles, such as sedans and compact cars, typically increases. Conversely, when gas prices drop, consumers often shift their attention back to larger vehicles like trucks and SUVs, which are traditionally higher-margin options [6].
To stay competitive, independent dealers must adopt a proactive and data-driven approach to inventory management. Capturing newer used vehicles through curb-purchases, lease returns, fleet acquisitions, and repossessions will help meet consumer demand in a tightening market. At the same time, monitoring the influx of older vehicles and leveraging insights into fuel price trends and customer preferences can guide dealers in stocking the right mix of inventory. By staying flexible and responsive, independent dealers can navigate these dynamic market conditions and maximize profitability in 2025.
Consumer Sentiment and Purchasing Behavior
Strong consumer sentiment is emerging as a pivotal factor shaping the 2025 forecast. The US economic engine remains primarily driven by the American consumer, with two thirds of GDP coming from consumer spending [1], with Texas as the 8th largest economy in the world [2]. Despite lingering economic challenges like inflation and fluctuating interest rates, consumer confidence remains robust, particularly in growth markets such as Texas and other economically and demographically expanding regions.
This optimism has been reinforced by year-end strength in key consumer trends, including record-breaking Black Friday and Cyber Monday spending up 8.2% compared to 2023, which indicate an ongoing willingness to make significant purchases [3]. At the time of writing this article, the consumer confidence
CORPUS CHRISTI
G.R. Moore
The Car Shack (dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
EL PASO
Cesar Stark
S & S Motors
Meeting – 3rd Friday (Monthly)
FORT WORTH
Jerry Smith
H J Smith Automobiles
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
HOUSTON
Chris Donnelly
Your Car Store
Meeting – 2nd Tuesday (Monthly)
SAN ANTONIO
Nory Pakravan
210 Auto Credit
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
index was up in December compared to 2023 with Sentiment (+6.2%), Economic Conditions (+6.0%), and Consumer Expectations (+6.2%) each highlighting a more positive finish to the year than in 2023 [4]. These consumer-driven tailwinds, bolstered by expectations of stable or reduced tax rates under the new administration, point to a healthy and resilient retail market as we move into 2025.
Conclusion: Preparing for a Dynamic Year
The economic outlook for 2025 presents independent auto dealers with both challenges and opportunities. From high interest rates to shifting consumer preferences and changes in supply chain dynamics, success will depend on adaptability, innovation, and a customer-first approach.
This positive outlook creates significant opportunities for independent dealers ready to meet the demands of confident buyers seeking value. With consumers prioritizing affordability and quality, independent dealers can leverage these trends by offering well-maintained pre-owned vehicles at competitive prices. Unlike larger franchised operations, independent dealers are often more agile in tailoring inventory to meet local market demands and can position themselves as trusted sources for high-value options. By focusing on reliability, transparent pricing, customer service, and tools to unlock consumer equity, independent dealers can tap into these tailwinds to strengthen their customer base and increase sales.
This positive outlook creates significant opportunities for independent dealers ready to meet the demands of confident buyers seeking value. With consumers prioritizing affordability and quality, independent dealers can leverage these trends by offering well-maintained pre-owned vehicles at competitive prices. Unlike larger franchised operations, independent dealers are often more agile in tailoring inventory to meet local market demands and can position themselves as trusted sources for high-value options. By focusing on reliability, transparent pricing, customer service, and tools to unlock consumer equity, independent dealers can tap into these tailwinds to strengthen their customer base and increase sales.
Understanding these seasonal patterns can help dealers plan their inventory more strategically, ensuring that they’re stocking the right mix of vehicles to meet shifting consumer preferences.
To stay competitive in this optimistic climate, dealers should emphasize promotions, financing incentives, and features that address both consumer priorities and their heightened confidence. Limited-time deals, special rates, and service packages can attract attention, while marketing campaigns highlighting vehicle acquisition programs, extended warranties, or flexible payment options can resonate with buyers seeking value. By tailoring strategies to meet the needs of confident and value-conscious consumers, dealers can build trust and strengthen their market position in 2025.
Effective inventory management will be critical. Dealers who focus on high-demand segments, such as newer preowned vehicles or fuel-efficient options, while strategically pricing older models, can stay competitive. Equally important is addressing affordability concerns through creative financing solutions and transparent pricing, which build trust and attract value-conscious buyers.
Ultimately, 2025 is a year for proactive strategies. Dealers who strengthen local partnerships, leverage data insights, and remain agile in responding to market shifts will turn challenges into growth opportunities. By staying informed and focusing on what matters most to their customers, independent dealers can thrive in a dynamic, competitive marketplace.
Success this year will belong to those who prepare thoughtfully, adapt boldly, and deliver solutions that resonate with buyers’ evolving needs.
References:
Understanding these seasonal patterns can help dealers plan their inventory more strategically, ensuring that they’re stocking the right mix of vehicles to meet shifting consumer preferences. To stay competitive in this optimistic climate, dealers should emphasize promotions, financing incentives, and features that address both consumer priorities and their heightened confidence. Limited-time deals, special rates, and service packages can attract attention, while marketing campaigns highlighting vehicle acquisition programs, extended warranties, or flexible payment options can resonate with buyers seeking value. By tailoring strategies to meet the needs of confident and value-conscious consumers, dealers can build trust and strengthen their market position in 2025.
The economic outlook for 2025 presents independent auto dealers with both challenges and opportunities. From high interest rates to shifting consumer preferences and changes in supply chain dynamics, success will depend on adaptability, innovation, and a customer-first approach. Effective inventory management will be critical. Dealers who focus on high-demand segments, such as newer pre-owned vehicles or fuel-efficient options, while strategically pricing older models, can stay competitive. Equally important is addressing affordability concerns through creative financing solutions and transparent pricing, which build trust and attract value-conscious buyers.
Ultimately, 2025 is a year for proactive strategies. Dealers who strengthen local partnerships,
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feature
Future-Proof Your Dealership: Essential Workforce Strategies for 2025 and
by Sandra Conrad Director of People Services at DriveHRIS;
Mandy Deveau Marketing Manager at DriveHRIS
The automotive industry is transforming rapidly, and while the spotlight often falls on vehicle innovation, the real key to long-term dealership success lies in your workforce. With evolving customer expectations, emerging technologies, and fluctuating service demands, strategic workforce planning is critical for automotive sales and service teams to stay ahead.
Key Workforce Trends for 2025
Reskilling and Upskilling for Digital Transformation:
As more customers start their car-buying journey online, both sales and service teams must adapt. Sales professionals need training in digital engagement, virtual consultations, and CRM tools. Service teams are dealing with increasingly complex vehicle technologies, requiring advanced knowledge of diagnostics and connected systems.
Why It Matters: The ability to handle digital inquiries, use data-driven insights, and manage modern vehicle systems is no longer optional—it’s necessary to
meet customer expectations.
Take Action: Invest in reskilling and upskilling. Implement training programs for digital tools, virtual selling, and new automotive technologies. These are essential for staying competitive in a tech-driven industry.
Addressing Labor Shortages and Retaining Talent:
Labor shortages, especially in technical roles, are affecting dealerships across the board. High turnover in sales adds to the challenge. Retaining skilled workers is crucial to delivering consistent customer satisfaction and maintaining efficiency.
Why It Matters: A stable, knowledgeable team not only reduces costs associated with recruitment and onboarding but also strengthens long-term customer relationships.
Take Action: Provide career development opportunities, mentorship, and clear advancement paths. Competitive compensation, recognition programs, and flexible scheduling can help retain top talent and appeal to younger generations entering the industry.
Flexible Work Models and Employee Well-Being
Customer expectations are shifting, and so are workplace trends. Flexibility in sales roles, like hybrid or remote work options, can drive higher performance and job satisfaction. Meanwhile, promoting employee well-being, especially for service teams, directly impacts productivity and overall customer experience.
Why It Matters: Flexibility and well-being are no longer perks—they’re critical for retention and efficiency. Happy, healthy employees are more productive and engaged.
Take Action: Introduce hybrid work models in sales to balance in-person and virtual appointments. For service teams, prioritize ergonomic workspaces, mental health support, and structured breaks. Use HR systems to monitor well-being and ensure your teams are at their best.
Prioritizing Health and Safety in Service Centers:
Service teams remain on-site, working with increasingly complex vehicles. Ensuring a safe, well-regulated environment is vital for smooth operations and customer trust.
Why It Matters: Customers expect professionalism and safety when visiting a service center. A well-managed, safe workplace fosters loyalty and trust, boosting long-term business success.
Take Action: Use HR systems to track incidents, manage certifications, and provide ongoing safety training. Implement regular training on new diagnostic tools and leverage predictive analytics to prevent risks and create a safer service environment.
Embracing Diversity and Inclusion (D&I)
D&I initiatives are becoming increasingly important across industries. Diverse teams bring fresh perspectives and foster innovation, driving better customer engagement and satisfaction.
Why It Matters: A diverse workforce that reflects your customer base helps build stronger relationships, enhancing customer satisfaction and loyalty—key drivers of dealership success.
Take Action: Set clear diversity goals for hiring and leadership. HR systems can track diversity metrics and support accountability. Inclusive workplace policies, mentorship programs, and targeted recruitment are essential for creating a more inclusive, innovative team.
To thrive in 2025 and beyond, automotive dealerships must prioritize strategic workforce planning. By focusing on reskilling, addressing labor shortages, promoting flexibility, ensuring health and safety, and embracing diversity, you’ll build a team that’s not only skilled but also motivated and engaged.
Please fill out the form on the facing page to help our efforts out at the Capitol!
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on the cover
by TIADA Staff
Greg Reine’s journey from a young boy washing cars to a seasoned leader in the independent automobile dealership industry is a story of resilience, perseverance, and an unyielding passion for the car business. Raised in the heart of Texas, Reine’s early years laid the foundation for a future that would see him not only become a successful entrepreneur but also an influential voice in the independent automobile dealer industry.
TIADA WELCOMES
Greg Reine
AS PRESIDENT
As the newly elected President of TIADA, Reine brings with him decades of experience, a commitment to excellence, and an unwavering dedication to supporting independent dealers. His journey is one that exemplifies the spirit of entrepreneurship and the power of persistence, and his leadership is poised to help shape the future of TIADA and its members.
A Foundation Built on Passion and Hard Work
Growing up in Texas, Greg Reine’s love for cars was evident from a young age. As a child, he spent countless hours detailing cars, learning about the ins and outs of the automotive world, and developing a deep respect for the business. “I was always around cars,” Reine recalls.
“I’M EXCITED TO WORK WITH MY FELLOW DEALERS AND TIADA MEMBERS TO MAKE OUR ASSOCIATION EVEN STRONGER. TOGETHER, WE CAN OVERCOME ANY CHALLENGE AND ENSURE A BRIGHT FUTURE FOR INDEPENDENT DEALERSHIPS IN TEXAS.”
Greg, alongside his wife and daughter, receiving the 2022 Quality Dealer of the Year Award.
“It wasn’t just about driving them; it was about understanding them, taking care of them, and appreciating the intricacies of the business.”
Reine’s early experiences in the automotive world gave him a strong work ethic, which would prove essential in his entrepreneurial endeavors. He learned the value of hard work, dedication, and the importance of delivering quality service to customers. These lessons would stay with him throughout his career and form the foundation of his business philosophy.
A Turning Point: Overcoming Adversity to Build a Business
In 1989, Reine faced an unexpected and life-altering challenge. He was diagnosed with stage four cancer, a diagnosis that would change the course of his life. But even in the face of this daunting reality, Reine’s entrepreneurial spirit never wavered. Determined to pursue his dreams and make a living on his own terms, he launched his first independent automobile dealership in DeSoto, Texas.
At the time, Reine had limited resources and no access to traditional financing. Undeterred, he sold his car, boat, and motorcycle to fund his new venture. It was a risky move, but Reine was committed to building his business.
“I had nothing to lose,” he says. “I believed in myself,
and I believed that I could make it work.”
The road to success wasn’t easy. Reine faced countless challenges, from securing inventory to establishing a customer base. But through hard work, perseverance, and a relentless drive to succeed, Auto Liquidators was born.
Triumph Over Cancer and Business Success
In 1995, after a successful bone marrow transplant, Reine’s cancer went into remission. This marked a new chapter in his life, both personally and professionally. With his health restored, Reine poured his energy into growing Auto Liquidators. Over the years, the business flourished, expanding to three locations in Dallas, Tyler, and Waco.
Today, Auto Liquidators employs over 60 team members and sells approximately 1,500 vehicles annually. The dealership has served more than 30,000 customers and continues to be a trusted name in the Texas automotive industry. Despite the hurdles he faced early on, Reine’s vision and commitment to excellence have been the driving forces behind his success.
A Tireless Advocate for Independent Dealers
Greg Reine’s accomplishments in business are only part of the story. Beyond his work as an entrepreneur, Reine
Greg with Rick Maroney, Robert Beck, and Mark Jones.
Greg with former State Senator Beverly Powell.
Greg with Robert Milligan and Keith Hagler
has become a tireless advocate for the independent dealer industry. He is a passionate supporter of TIADA, having been an active member of the association since 2005. Over the years, Reine has served on numerous committees, contributing to the organization’s growth and success.
He understands the challenges faced by independent dealers and is committed to ensuring that TIADA remains a powerful voice for the industry. “TIADA plays a crucial role in supporting independent dealers, and I’m proud to be a part of that,” says Reine. “The work that TIADA does to advocate for fair policies and provide valuable resources for dealers is more important than ever.”
Reine’s advocacy extends beyond TIADA’s work at
“WHETHER IT’S DEALING WITH THE COMPLEXITIES OF VEHICLE TECHNOLOGY OR ADAPTING TO NEW REGULATORY REQUIREMENTS, WE CAN OVERCOME THESE CHALLENGES IF WE WORK TOGETHER. TIADA IS HERE TO SUPPORT DEALERS EVERY STEP OF THE WAY.”
the state level. He is also a strong supporter of INDEPAC, TIADA’s political action committee. He recognizes that political advocacy is essential in shaping the regulatory environment for independent dealers. As a leader within the association, Reine is committed to ensuring that TIADA’s voice is heard in legislative discussions that affect the industry.
In addition to his professional endeavors, Reine is deeply committed to giving back to the community. He supports various charitable organizations and believes in using his success to make a positive impact. “I’ve been blessed to achieve a lot in my career, and I want to use that success to help others,” he explains. “Whether it’s supporting local charities or helping other dealers succeed, I believe it’s important to give back.”
Shaping the Future of TIADA
As TIADA’s new president, Greg Reine brings a wealth of experience, insight, and passion to the role. His leadership style is rooted in humility, authenticity, and a strong work ethic. He is known for his ability to connect with people from all walks of life and build lasting relationships. His commitment to excellence and his passion for the automotive industry have earned him the respect of his peers, and his vision for TIADA’s future is one of collaboration, support, and growth.
One of Reine’s key priorities as president is to strengthen TIADA’s role as a leading advocate for independent dealers. He is committed to ensuring that the association continues to serve as a valuable resource for members, providing the tools and support they need to succeed in a rapidly changing industry.
“The challenges facing independent dealers today are significant, but they are not insurmountable,” Reine says. “Whether it’s dealing with the complexities of vehicle technology or adapting to new regulatory requirements, we can overcome these challenges if we work together. TIADA is here to support dealers every step of the way.”
A Personal Reflection: The Power of Resilience and Perseverance
Throughout his career, Greg Reine has faced many challenges, both personally and professionally. But his resilience and perseverance have been the key to his success. He has learned valuable lessons along the way that have shaped his approach to leadership and his outlook on life.
“I’ve been through a lot in my life,” Reine reflects. “But I’ve never given up. I’ve always believed that if you keep moving forward, you’ll eventually reach your destination. It’s about staying focused, staying positive, and never giving up on your dreams.”
Reine’s story is one of triumph over adversity, and it serves as an inspiration to others in the industry. His journey from a young boy washing cars to a successful entrepreneur and advocate for independent dealers is a testament to the power of perseverance, hard work, and a positive mindset.
As TIADA’s new president, Greg Reine is poised to make a lasting impact on the independent dealer industry. His leadership, vision, and dedication to supporting dealers will ensure that TIADA remains a strong and influential voice for independent dealers across Texas.
“We have an exciting future ahead of us,” Reine says. “I’m excited to work with my fellow dealers and TIADA members to make our association even stronger. Together, we can overcome any challenge and ensure a bright future for independent dealerships in Texas.”
With Greg Reine at the helm, TIADA is ready to face the challenges of tomorrow and continue its mission of supporting and empowering independent automobile dealers across the state. His journey is an inspiration, and his leadership promises to guide TIADA into a new era of growth, collaboration, and success.
Greg’s dealership, Auto Liquidators in Arlington.
Greg with his family at Disney.
Greg with his Chief Operating Officer, Jenissa Rice.
Greg and Mark Jones recruiting a new TIADA member.
legal corner
A Look Back at TIADA Legislative Successes
Now that work is about to get underway in the 89th Texas Legislative Regular Session, it might be worthwhile to review some of the legislative activities of TIADA over the past (almost) half-century that I have been affiliated with TIADA. This is my 25th legislative session, and as might be imagined, I’ve seen many changes on the legislative front since my first visit to the capitol in 1977 as a 20-something fresh-out-of-lawschool green attorney.
While TIADA may not rank with the most powerful groups at the legislature, its reputation and ability to effectively carry out members’ goals have grown exponentially in the last few sessions. Executive Director John Frullo (himself a former state representative from Lubbock) and his staff, including Director of Regulatory Affairs Earl Cooke, know the importance of legislative work and allocate their resources and time accordingly. Despite the fact that the legislature is in regular session only six months every two years, TIADA’s legislative work goes on year-round with advance planning to avoid surprises. Plus, Frullo and his staff understand and participate in the state agency rule-making process, which can often have as great an impact on dealers as laws passed by the legislature.
TIADA has an effective grassroots organization, and many active dealer-members are ready to appear at the capitol on short notice and express their views to their representatives or even testify before
by Michael W. Dunagan
COUNSEL
While TIADA may not rank with the most powerful groups at the legislature, its reputation and ability to effectively carry out members’ goals have grown exponentially in the last few sessions.
committees, if necessary. The high level of organization also makes it easier to mount an attack on proposed legislation that is considered to be detrimental to our members’ interests.
Here is a summary of a few of TIADA’s legislative successes –some from decades ago, and some more recent. It’s not a complete list, but it reflects the work of a lot of dedicated folks who have given their efforts and talents to improving the situation of independent dealers in Texas.
SALES TAX REFORM ACT
OF 1993. For years, Texas buyhere-pay-here dealers faced an unpleasant dilemma: (1) advance 100 percent of sales tax up front and lose profitability; or (2) don’t pay sales tax up front and risk being put out of business by a sales tax audit and assessment. Many dealers took
their chances with the latter option and got caught, resulting in several million-dollar assessments. One West Texas dealer even faced a felony criminal charge for not transferring deals that went bad.
The late Jim Watson of Dallas knew there had to be a better way. Watson organized the Fair Tax Committee and convinced Bill Plaster of Dallas to chair it. Facing impossible odds, Watson and Plaster, with the help of the late Roy Carlson of Fort Worth and Don Fincher of Houston, and too many others to name, raised the necessary money, and undertook to achieve what had been described as an impossible task (we were told by many knowledgeable and experienced legislative operatives that what we were trying to accomplish couldn’t be done). After a series of meetings with Comptroller and DMV staffers, we came up with a
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plan that would benefit not only BHPH dealers, but the state as well. Comptroller John Sharp signed off on the deferred-sales-tax approach for seller-finance dealers, which eliminated the last obstacle. After the tax reform bill passed and went into effect, TIADA’s membership shot up to one of its highest levels ever.
In an article that appeared in TIADA’s Texas Dealer, the late David Keller, a well-known industry accountant who handled taxation issues for dealers throughout the nation, referred to the deferred sales tax law in Texas as one of the most favorable sales tax situations for buy-here-pay-here dealers in the country. He pointed to the direct benefit to dealers of only having to remit tax on payments after they are received (and the forgiveness of any balance owed if payments stop) as part of the business environment for Texas dealers that gives rise to envy by dealers in other states.
Many, if not most, BHPH dealers probably don’t even know that there was a time when deferred sales tax didn’t exist. Those dealers who led the charge deserve our heart-felt appreciation.
DEFERRED SALES TAX TREATMENT FOR RELATED FINANCE COMPANIES.
After passage of the 1993 tax reform bill, BHPH dealers were able to avoid fronting sales tax at the time of transfer and would only have to submit sales tax on amounts actually collected, and pay no tax on unpaid balances. At about the same time, another problem arose when the U.S. Internal Revenue Service ruled that dealers who financed sales would in most cases have to use the accrual method of accounting for income (as opposed to the cash method which most dealers had used). This meant that the entire amount of a contract would have to be taken into income in the
year in which it was signed. This change resulted a substantial increase in the amount of income tax owed and an acceleration of income tax liability. Although a deduction could later be taken on bad debt, many dealers were forced to take out large loans to pay income tax on uncollected receivables.
To counter the burdens of having to advance large amounts of income tax, some dealers set up separate corporations to sell receivables to at a discount. This process reduced the over-all tax obligation since the finance company could use the cash basis of accounting.
The problem was that a provision in the original deferred-sales-tax law required acceleration of sales tax on retail installment contracts that were sold or assigned to third parties. This provision was intended to limit deferred sales tax to dealers who self-financed. Unfortunately, the Texas Comptroller’s Office took the position that assignment of receivables to a separate corporation, even if it had identical stock ownership as the dealership, caused the loss of deferred sales tax treatment. The dealer was then required to accelerate sales tax on each assigned contract, in effect off-setting the federal income tax advantage of having a related finance company.
To overcome this dilemma, TIADA proposed legislation in the 2007 session of the Texas Legislature that would allow a finance company with at least 80 percent common ownership with a dealership to continue to defer sales tax on assignments taken from that dealership. The TIADA bill was passed and signed by the governor, in effect saving BHPH dealers with related finance companies huge amounts of both sales and income taxes.
REQUIRING CRUSHERS
TO OBTAIN TITLES. One of the first dealer calls I took at the TIADA office was a question about
a vehicle that the buy-here-payhere dealer had financed that had been sold by his debtor to a salvage yard. Despite the dealer’s recorded lien, the vehicle was crushed without the knowledge or permission of the lien holder (the thought of a vehicle being squeezed in a crusher evoked images of a vehicle in the James Bond movie “Goldfinger” being hydraulically reduced to a three-foot cube – with one of the villain’s enemies inside). Our dealer was told by the salvage-yard owner that he didn’t need to get permission to crush a vehicle over 10 years old. The police and DMV had indicated that there was nothing they could do. The bill that we crafted to address this deficiency in the law was passed. We were successful in obtaining legislation that required salvage yards to obtain title to vehicles before parting out or crushing them, regardless of age.
That legislative effort took on more significance when bills were filed in recent sessions that would eliminate again the requirement of obtaining title or inquiring as to lien status to a vehicle over seven years old before parting-out or crushing. The bill would have absolved the salvage yard from any liability to a lien holder if the person selling the vehicle signed a statement declaring that he or she owned the vehicle and had the authority to sell it. Based largely on TIADA efforts, these bill didn’t pass. However, it appears that they will be resurrecting this again.
LIABILITY INSURANCE PAYMENT PROTECTION.
Prior to 1989, vehicle lien holders had no legal claim to liability insurance proceeds paid to their customers by insurance carriers who had insured a third party that caused the accident. (A lien holder, by virtue of being listed as loss payee on a debtor’s property-damage insurance, was already legally protected.)
With damaged collateral and a debtor flush with insurance money to buy another car, the lien holder was left holding the bag. But then TIADA sponsored legislation that would place a lien on liability proceeds covering property damage for recorded lien holders. That is, if a liability carrier paid a debtor without including the lien holder on the check, the carrier violated the interest of the lien holder in the proceeds and could be made to pay again. In terms of benefit-tocost, this bill surely ranks up there as dealers have collected untold amounts that would have been lost under prior law. Our law firm has
and does regularly collect claims from liability carriers for a dealer/ lien holder who had been excluded from the initial settlement check, despite the insurance company’s erroneous insistence that it has no duty to investigate lien status or include the lien holder.
Also, TIADA was more recently successful in obtaining passage of an amendment to the Texas Property Code that provided for the award of attorneys’ fees if suit was necessary to enforce the lien holder’s rights to liability proceeds. With passage of both of these bills, TIADA ensured that lien holders could be made whole in the event
liability insurance attributed to damaged collateral was paid directly to debtors.
ELIMINATION OF LIABILITY INSURANCE PROOF AT TRANSFER.
One of the biggest headaches that dealers faced through much of the 90’s was the convergence of (1) the requirement that dealers handle all title transfers on vehicles they sold, and (2) the requirement that proof of liability insurance in a buyer’s name be presented with all title transfers. When buyers failed to bring in proof of insurance by the time title had to be transferred, dealers were unable to record their liens and became sitting ducks for state enforcement officers who issued fines for failure to timely transfer title.
Working with the Texas Automobile Dealers Association, we pushed for legislation that would exempt dealers from being the liability-insurance police. Upon passage of this legislation, dealers were freed up to transfer title and record liens, without being held
hostage by their customers who didn’t provide proof of liability insurance.
MECHANIC’S LIEN REFORM.
TIADA-sponsored bills passed in 2009 and 2015 have helped car creditors fight off the sting of fraudulent mechanic’s lien claims. While a valid mechanic’s lien is still superior to a prior recorded mortgage lien, the two bills have made it easier to challenge fraudulent or fictitious claims. Also, the bills made it harder for thirdparty repair-financing companies, set up to take assignment of mechanic’s liens, to claim liens superior to a car-creditor’s lien.
ELIMINATION OF FORM
VTR 136. Prior to passage of Senate Bill 876 in the 2021 legislative session, a dealer was required to have each buyer sign at closing a form VTR 136 in which the buyer could designate any of the 254 counties in the state as the place the dealer would have to file the transfer paperwork. The 2021 law now
authorizes a dealer to file transfer papers in any county where the tax assessor-collector agrees to accept the paperwork. This change also eliminated the need to have a VTR 136 filled out, signed and placed with the dealer’s file.
DEALER LICENSING AND THE BOND.
In 1983, the dealer license was little more than a permit that authorized the holder to use metal dealer tags and to avoid sales tax on the purchase of inventory. There was no prohibition on anyone else buying and selling cars as a business or otherwise. Curb-stoning was legal way to do business. Working with TADA, the state’s franchised-dealer association, TIADA pushed for and passed legislation that set minimum premises requirements, and limits on unlicensed sales. Additionally, the requirement that independent dealers have a $25,000 bond was imposed for the first time (it’s now been raised to $50,000). An immediate effect of that new law was that the number of dealer licenses declined (indicating some casual and non-dealer licensees gave up their licenses). The law also, for the first time, gave the DMV enforcement tools to go after curb-stoners.
There are many other legislative (and non-legislative) successes that come to mind in reviewing 48 years of TIADA memories, but we don’t have the time or the space to discuss them all. My hope is that maybe this list offers a guide to anyone
Featured Courses
TIADA designed and implemented some important on-demand courses to give dealers quality educational programs they can access throughout the year. These programs are essential for dealers to stay compliant. They offer flexibility, so you can complete them according to your schedule. These courses are designed for any dealers with questions related to various regulations that affect their businesses.
Repossession 101: What You Need to Know
In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of self-help repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.
$ 98 for two 1-hour videos
The Basics of Transferring Titles *
Want to avoid having your title transfer paperwork rejected at the tax office? This online course is designed to walk you through the title transfer process and is best suited for people new to transferring titles or those who want to brush up on the basics. This course has been reviewed for accuracy by the Tax Assessor-Collectors Association of Texas.
$ 48 for the course * Also available in Spanish
THE CLOSING PROCESS
In other words: Prove what you said during the sale. The answer is closer than you think... “Expressed Informed Consent” EIC?
JOIN THE WAIT LIST
your mandatory disclosure in every step of the sales process and closing.
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What Don’t You Want? –Explaining the FTC’s Meaning of “Express Informed Consent-(EIC)”
by Ace Christian Founder and CEO of SecureClose
There continue to be several online conversations on whether the FTC’s CARS rule will go into effect or be overturned for not following its own codified rules. In the meantime, several enforcement actions by the FTC already include parts of the new rule — specifically, requiring dealers to obtain consumers’ express informed consent before finalizing the sale. But what is express informed consent? This question exists because most experts say the rule only gives an ambiguous definition of what constitutes express informed consent.
This idea of consent is at the heart of the FTC CARS rule, specifically express informed consent or EIC. You will see a lot of hand-wringing when you ask any compliance professional “What is express informed consent?” The reason is that the FTC has not defined what express informed consent is in full, only what it is not. They have clarified and outlined some of the content and actions such as:
“An affirmative act communicating unambiguous assent to be charged, made after receiving and in close proximity to a Clear and Conspicuous disclosure, in writing, and also orally for in-person transactions, of the following:
1 What the charge is for?
2 The amount of the charge, including, if the charge is for a product or service, all fees and costs to be charged to the consumer over the period of repayment, with and without the product or service.”
Doesn’t the above exist in current documents and closing forms, for every dealer all over the country right now? Where it gets a little confusing is the second part of the definition which explains what express informed consent is not:
1 A signed or initialed document, by itself;
2 Prechecked boxes; or
3
An agreement obtained through any practice designed or manipulated with the substantial effect of subverting or impairing user autonomy, decision-making, or choice.
This way of defining something by stating what it is not is known as a “negative definition.” A “negative definition” is not a method that directly states the attributes or characteristics of a concept. Instead, it clarifies what the subject is by listing what it does not encompass. For example, to use a car analogy, if a consumer tells you, “I do not want to buy a foreign vehicle, I don’t want an SUV or Van and I don’t want anything over 100k miles,” would you be able to sell them the right car knowing only what they don’t want?
At SecureClose we understand that the FTC is using a “negative definition” so as not to be boxed in. Pushing the industry to come up with its own definition of what express informed consent is. By combining simple, consistent programmable explanations of the product’s terms and costs, along with comprehensive audio and video capture of the consumer reviewing and signing the document, SecureClose is the solution to Express Informed Consent.
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Relax with the family and turn work into pleasure.
Recruit 10 new members by June 30th, 2025 and you will receive your hotel room for free (up to two nights) at the Gaylord Texan Resort & Convention Center in Grapevine during the TIADA conference.
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Receive top-notch education.
Recruit 5 new members by June 30th, 2025 and you will receive one free registration to the 2025 TIADA Conference & Expo. 2
Have a cup of coffee on us. Actually, have 4 cups. Recruit a new member and we will send you a $10 gift card — and we’ll do that for the first 4 members you recruit.
A Dealer’s Complete Guide to Upcoming Inspection Changes in Texas
by TIADA Staff
Asignificant change in Texas vehicle inspection laws has taken effect as of January 1, 2025, that will alter how most dealerships operate.
House Bill 3297, passed during the 88th Legislature, eliminates the safety inspection requirement for noncommercial vehicles. While this simplifies the registration process for vehicle owners, it places new responsibilities on dealers to maintain compliance, manage customer expectations, and protect themselves against liability. This guide provides a detailed overview of the key changes, their implications for dealerships, and actionable steps to help you prepare for the transition.
What’s Changing?
Effective January 1, 2025, safety inspections for most non-commercial vehicles in Texas will no longer be required. However, the $7.50 annual safety inspection fee
isn’t going away. Instead, it will be repurposed as the “Inspection Program Replacement Fee,” which will be collected at registration. Here’s what you need to know:
1 Safety Inspections Are Being Eliminated
• Non-commercial vehicles will no longer require annual safety inspections for registration.
• This marks a significant departure from a long-standing practice aimed at ensuring road safety.
2 Introduction of the Inspection Program Replacement Fee
• The $7.50 safety inspection fee will remain, rebranded as the “Inspection Program Replacement Fee.”
• New vehicles will have a higher upfront fee—$16.75 for the first two years—followed by $7.50 annually starting in the third year.
Know
Dealer Academy Repossession 101: What You Need to
This is a video course with
Michael W. Dunagan
TIADA General Counsel, author of Dealer Financing of Used Car Sales and Texas Automobile Repossession: A Lien Holder’s Legal Guide
In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of selfhelp repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.
• Preliminary Considerations Before Repossession
• When is a Customer Considered in Default
• Avoiding Liability from Repossession
• Types of Disposition
• Required Notices to the Debtors
• Handling Personal Property
• Using the Courts to Get Your Car Back Registration $98 for two 1-hour videos
Visit txiada.org/on demand for more information.
3 Emissions Inspections Will Continue in Certain Counties
• Emissions testing requirements remain in place for 17 urban and high-population counties, including: Brazoria, Collin, Dallas, Denton, El Paso, Ellis, Fort Bend, Galveston, Harris, Johnson, Kaufman, Montgomery, Parker, Rockwall, Tarrant, Travis, and Williamson.
• Vehicles registered in these counties must still pass emissions inspections annually.
Implications for Dealerships
The elimination of safety inspections offers both opportunities and challenges for dealers. Understanding these impacts will help your dealership navigate the changes while remaining compliant.
Streamlining Sales and Registration
Without the safety inspection requirement, the vehicle registration process will become more efficient, potentially speeding up sales finalization. This could result in shorter wait times for customers, improving their overall buying experience. However, while the process simplifies for buyers, dealers must remain vigilant about their legal responsibilities. Selling a vehicle with undisclosed safety issues could lead to disputes, returns, or even legal consequences.
Educating Customers
With major changes like these, customer education is crucial. Many buyers may not realize that safety inspections are no longer required or may be unaware of the Inspection Program Replacement Fee. Clear communication about these changes will help manage customer expectations and prevent misunderstandings.
Handling Emissions Inspections
If your dealership operates in or near one of the 17 counties requiring emissions inspections, make sure your customers understand that this requirement still applies. Be prepared to guide buyers through the emissions testing process if they plan to register their vehicle in one of these areas.
A Closer Look at the Inspection Program Replacement Fee
Properly handling the Inspection Program Replacement Fee is essential for compliance. The fee must be itemized correctly in the Retail Installment
Contract (RIC) to avoid regulatory penalties.
Fee Categorization
• This fee should not be labeled as a “registration fee” or an “inspection fee.” Instead, it must be explicitly identified as the “Inspection Program Replacement Fee.”
• This distinction is vital for compliance with federal Regulation Z, which governs disclosure requirements for consumer credit.
Placement in the RIC
• On contracts with an “Other fees” section, the Inspection Program Replacement Fee can be included here, clearly identified by name.
• For older contracts, you may need to use a generic line like “Official fees paid to government agencies” but ensure the fee name is abbreviated or clarified in documentation.
• If a customer’s vehicle requires emissions testing, separate the emissions inspection station fee from the state’s Inspection Program Replacement Fee to avoid confusion.
Preparing for 2025: What You Should Do Now
1 Verify DMS Updates
Most Dealer Management Systems (DMS) will update automatically to reflect the new laws, but you should confirm that the changes have been made. Check your DMS for the following:
• Accurate inclusion of the Inspection Program Replacement Fee.
• Adjustments for counties where emissions inspections are required.
Testing your system before January 1, 2025, will help avoid errors and delays during the transition.
2 Review and Revise Contracts
Work with your legal or compliance team to review your current RIC templates. Update them to reflect the Inspection Program Replacement Fee and ensure they meet all disclosure requirements.
3 Train Your Staff
Your sales and finance teams should be well-versed in these changes. Provide training sessions to:
• Explain the elimination of safety inspections.
• Clarify how the Inspection Program Replacement Fee should be presented to customers.
• Emphasize emissions inspection requirements for applicable counties.
4 Communicate with Customers
Proactively notify your customers about these changes using multiple channels, such as:
• Email campaigns: Send out newsletters explaining the updates.
• Social media: Use posts or videos to break down the new requirements.
• In-person conversations: Train staff to address customer questions during the sales process.
Transparency builds trust and positions your dealership as a helpful resource during this transition.
5 Check your whiteslip to verify that you are charging the correct fees.
Liability Concerns: What Dealers Need to Know
Although safety inspections are being eliminated, dealers remain
liable for the condition of vehicles they sell. This means you must continue inspecting inventory to ensure compliance with lemon laws and avoid selling vehicles with undisclosed damage.
Best Practices for Protecting Your Dealership
• Perform internal safety checks on all vehicles, even though state inspections are no longer required.
• Keep detailed records of these checks as evidence of due diligence.
• Clearly disclose any known issues to buyers to prevent disputes.
Resources for Dealers
To ensure a smooth transition, consult these resources:
• Texas Vehicle Registration (TxDMV): Information about vehicle registration, including guidance on compliance and updates, can be found on the TxDMV website. Visit TxDMV’s Dealer Information page (https://www.txdmv.gov/dealers) .
• Vehicle Safety Inspection Information (Texas DPS): Details on vehicle safety inspections and requirements are available through the Texas
Department of Public Safety. Visit the Texas DPS Vehicle Inspection page (https://www.dps.texas.gov/ section/vehicle-inspection).
• Emissions Inspections in Texas (TCEQ): For emissions inspection requirements and testing information, refer to the Texas Commission on Environmental Quality. Learn about emissions inspections on the TCEQ site (https://www.tceq.texas. gov/airquality/mobilesource/vim.html)
• House Bill 3297 (88th Legislature): Information on the legislative background and details about HB 3297 can be accessed via the Texas Legislature’s website (https:// capitol.texas.gov/BillLookup/BillSummary. aspx?LegSess=88R&Bill=HB3297) .
Final Thoughts
The changes currently in effect present an opportunity to simplify processes while continuing to provide excellent service. By staying informed and proactive, dealers can adapt to the new requirements seamlessly. As always, TIADA is here to support you. As these changes take effect, reach out with any questions or for additional guidance. Together, we’ll ensure a successful transition for Texas dealers and their customers.
The Power of Membership.
Since 1944, TIADA has been and continues to be the only statewide organization for independent automobile dealers. You are connected with more than one thousand independent automobile dealers across Texas, who are all committed to creating a better image for the industry, while protecting our rights as business owners and increasing our bottom line. Individually, you are strong, but together, as an association, we are powerful .
Get involved with the association’s advocacy efforts, find out what policies may be affecting used car dealers. Have a say, make a difference.
Join other successful dealers. Membership dues include full membership to TIADA and the national association, NIADA.
Connect with industry leaders. Attend the annual TIADA Conference & Expo, access the member-only online directory.
Education offerings designed with you in mind, your personal copy of the Texas Dealer magazine, twice monthly industry updates, exclusive access to industry articles—a wealth of knowledge at your fingertips.
The perks are many, starting with over $10,000 in auction and vendor savings through TIADA’s mobile app. Redeem just a few auction discounts and you’ve basically covered the cost of membership for the year.
Get quick answers on industry, regulatory or compliance issues.
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2025 Automotive Digital Marketing Trends: Adapting to a Transforming Industry
by Stephen Pallas TIADA Director of Marketing and Communications
The automotive sector is entering a period of significant transformation in digital marketing, driven by rapid technological innovation, changing consumer behaviors, and a competitive market environment. As 2025 approaches, staying ahead of these shifts is critical for automotive businesses seeking to build trust, engage effectively with their audience, and drive sales. Here's a look at key trends shaping the future of digital marketing in the automotive industry.
Data-Driven Marketing in a Privacy-Conscious Era
The automotive industry is undergoing a paradigm shift in how data is collected and utilized. As third-party cookies are phased out and privacy regulations such as GDPR and CCPA set stricter boundaries, brands must lean into first-party data collection.
Methods like interactive digital experiences, CRM tools, and loyalty programs not only gather essential data but also enhance customer relationships by fostering trust. For instance, personalized email campaigns that reflect individual customer preferences are proving
to be game changers in creating tailored marketing strategies. A report from MarketingProfs notes that “companies leveraging first-party data for customer insights see higher engagement and conversion rates compared to those relying on third-party data.”
Furthermore, AI-powered analytics tools can process and interpret first-party data in real-time, offering insights into consumer preferences and predicting future trends. This allows automotive businesses to craft strategies that are not just reactive but proactively aligned with market demands.
Emerging Marketing Strategies for the Automotive Industry
Connected TV (CTV) Advertising: The Future of Targeted Campaigns
The rise of streaming platforms like Hulu, Roku, and Disney+ has revolutionized video advertising. Connected TV (CTV) ads now enable automotive
brands to showcase their vehicles to specific audiences based on viewing habits, geographic location, and even lifestyle preferences.
According to eMarketer, CTV advertising is projected to grow to $27.5 billion in 2025, underscoring its importance in the marketing mix. The dynamic nature of CTV ads — featuring clickable links to dealership appointment pages or virtual tours — bridges the gap between traditional video advertising and direct consumer action.
Maximize Your Sales Potential with the TIADA CPO Program.
Participating in the certified pre-owned program means your dealership and the CPO vehicles you offer are held to a higher standard.
For more info, visit Txiada.org /TiadaCPOprogram or call 512.244.6060
Moreover, the format’s high-quality visuals and storytelling opportunities allow marketers to deliver a cinematic experience, showcasing features like luxury interiors or advanced tech integrations in real-life contexts. This emotionally resonant advertising method captures consumer attention more effectively than static ads.
Revitalized Email Marketing: Beyond the Inbox
Email marketing continues to evolve as a critical touchpoint for long-term customer engagement. Unlike social platforms, where algorithms dictate visibility, email provides a direct and controllable avenue for communication.
Segmentation is key: dividing audiences based on demographic factors, purchase history, and browsing behaviors enables highly personalized messaging. Forbes recently highlighted the success of brands integrating automation in email workflows, ensuring timely delivery of service reminders, promotional offers, and personalized recommendations.
Interactive email features, such as embedded videos or clickable car customization options, are also emerging trends. This format allows customers to interact with the content without leaving their inbox, enhancing convenience and engagement.
Innovations in Customer Experience
AI-Powered Chatbots: A New Standard for Customer Service
AI chatbots are transforming customer interactions in the automotive industry, providing instant, roundthe-clock assistance. From answering questions about financing to scheduling test drives, these bots use natural language processing to create seamless customer experiences.
“AI chatbots are now a critical part of the sales funnel, offering highly personalized recommendations based on real-time data analysis,” notes VentureBeat. By automating repetitive queries, dealerships free up their sales teams to focus on high-value tasks while still delivering exceptional service.
Additionally, these bots can escalate complex queries to human representatives, ensuring that customers receive the right level of attention. With capabilities like multilingual support and integration with virtual showrooms, chatbots are poised to become indispensable tools in the automotive marketing toolkit.
Video Marketing: Storytelling in Motion
Video remains one of the most effective mediums for conveying complex information and engaging emotionally with audiences.
Automotive brands are leveraging advanced video technologies to bring their offerings to life.
For example, 360-degree video tours allow potential buyers to explore a vehicle's interior and exterior in detail. Test drive simulations, often integrated with augmented reality (AR), provide an experiential feel that previously required an in-person visit. According to Wyzowl’s Video Marketing Report, 91% of marketers consider video essential to their marketing strategies due to its proven impact on engagement and conversion rates.
Moreover, platforms like TikTok and Instagram, known for their short-form content, enable brands to showcase key features in quick, digestible formats, making them accessible to younger, tech-savvy audiences.
Voice Search Optimization: An Overlooked Opportunity
Voice search is growing in relevance as consumers adopt smart devices like Amazon Echo and Google Home. These tools are driving a shift toward more conversational search queries, requiring brands to optimize their content accordingly.
For local dealerships, this means ensuring that their location, inventory, and services are easily discoverable via voice search. According to Search Engine Journal, 22% of voice queries are for local information. Incorporating natural language patterns into SEO strategies can significantly boost visibility and lead generation.
Conclusion: Thriving in a Dynamic Industry
The trends shaping 2025 emphasize the importance of
customer-centric innovation in automotive marketing. Data-driven insights, CTV ads, revitalized email campaigns, AI-powered chatbots, immersive video content, and voice search optimization offer automotive businesses multiple avenues to build strong connections with consumers.
By embracing these strategies,
brands can not only adapt to industry shifts but also set new benchmarks for engagement and growth in a competitive marketplace. Automotive marketers who prioritize personalization, interactivity, and cutting-edge technology will position themselves as leaders in the digital marketing race.
Suresh Krishnamurthy 1013, Centre Road, Suite 403-B, Wilmington, DE 19805
Day at the C apitol, 2023
behind the wheel
You Never Know
We are preparing to embark on the Great State of Texas’s legislative session, the 89th if you are counting. I can’t help but ponder on the words of Forrest Gump. That famous philosopher just might have been talking about politics when he said, “My momma always said life was like a box of chocolates. You never know what you’re gonna get.”
Every odd year, the Texas legislature meets to pass a budget and the laws by which the state will be governed. It starts on the second Tuesday of January and lasts for 140 days. The first 60 days are rela tively tame; the next 50 days are where the action increases, with the final 30 days being very hectic and where a small percentage of legislation is passed and most are killed or left for dead.
Compared to the last session, the Governor will continue to be Greg Abbott, and the Lieutenant Governor will continue to be Dan Patrick, with the composition of the 31 Texas senators remaining about the same. The larger changes will occur in the Texas House, which, at the time of writing this article, is in the process of selecting a speaker. There are 150 representatives in the House, of which 32 will be freshman. A fun fact is there are the same numbers of senators as there are Proverbs and the same number of representatives as there are Psalms in the bible. What does all this mean to you? Your team will be devoting their time and resources, reading bills, visiting
See pg. 20 to register for the 2025 Day at the Capitol.
by John Frullo
TIADA EXECUTIVE DIRECTOR
legislators and their staff, and other associations, working to help ensure our views and positions are conveyed and that our industry has its views represented. This will mean meetings at the Capitol and with other people doing what we are doing for our interests. Their interests can be in conflict with ours causing parties to work out issues as we navigate through the legislative process.
With our industry being so heavily regulated by the state and federal government, we need to have an active role in the activity that occurs in the Capitol, aka “the pink building,” named after the pink granite used in its construction. As a member of the industry, you are probably wondering how you can help ensure your livelihood is protected. The first is to make plans to attend the “Day at the Capitol” on February 11, 2025, where you will join fellow dealers and legislators and their staff for a day to advocate for issues important to us. If you have never been to the Capitol for this event, it is a real treat to be part of history in the making. You can also review the latest data, you can read the emails and blasts that we send out. Please also pay special attention to requests for assistance in which we ask for your help to contact your legislator on matters of importance to convey our position.
The process of laws being made is fun, but you do have to wonder if Forrest’s mother was thinking about the legislative process.
... you do have to wonder if Forrest’s mother was thinking about the legislative process.
