Texas Dealer June 2021

In this issue:

– Michael W. Dunagan on Timely Transfer of Titles – 5 Tips for Acquiring Inventory – How to Find and Maintain BHPH Customers – New Board Member Appointments at TxDMV and OCCC

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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) Armando Villarreal/McAllen Auto Sales 4215 S. 23rd Street McAllen, TX 78503 ICE PRESIDENT AT LARGE V Robert Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 ICE PRESIDENT AT LARGE V Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301 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 / I s s u e 6 / J u n e 2 0 21

TexasDealer contents

5 Officers’ Message

by Juan Sabillón, TIADA Chairman of the Board

7 Legal Corner: Timely Transfer of Titles Requires Diligence

by Michael W. Dunagan

10 On The Cover: TIADA Conference & Expo Is Back in Person

by TIADA Staff

17 How to Find and Maintain BHPH Customers

by Brent Carmichael

18 Local Chapters 18 Upcoming Events 23 5 Tips for Acquiring Inventory

by Zach Klempf

25 2021 TIADA Conference & Expo 35 Legislator Spotlight 37 TIADA Attorney Referral Program

by TIADA Staff

39 New Board Member Appointments for TxDMV and OCCC

by TIADA Staff

40 New Members 41 Legislative Bulletin 44 TIADA Auction Directory 46 Behind the Wheel

by Jeff Martin

Did You Know? There are over 30 hours of education you can choose from during the conference; from the traditional Learning Tracks to the new Learning Laboratory and the popular Roundtable Discussions. You can get a glimpse on page 25 or visit TiadaAnnualConference.com.

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 It Has Been an Honor

T

his is not my official “last act” as a TIADA officer, but this is officially my last Officers’ Message.

I have many mixed emotions running through my head as I write this message. My first thought takes me back to one of my first jobs in the automotive industry. I was working for a local Dodge dealership in Houston and met Don Carlson. The owner of the dealership I worked at wanted to start a BHPH operation and Don was tapped to be the general manager. Over the years, Don and I became very close as he served not only as my boss but as my mentor. I remember thinking, I had just graduated from a university, but I was getting a real education from Don. Early on, he made me promise to be active in the industry associations.

He believed that owners and managers needed to always be knowledgeable, informed, and active and he believed strongly in giving back to others.

When I started my own dealership a few years later, I followed Don’s advice and started attending Houston IADA local meetings. There I met Elwaine Barrett, the Winkelmanns, and Lee Helstrom, just to name a few. I have always believed that one person working alone is not as powerful as everyone sticking together and working towards a greater common goal. Getting to know these industry leaders and being a part of HIADA was my first real opportunity to see this in action.

Later, I became more active in TIADA and continued thinking about the advice Don offered me so many years ago about being actively involved and giving back. I was always so appreciative of the time and energy he spent with me and so many of my co-workers. He once told me, “One day you will be able to help someone, and when you do, that will be a happy day for me.”

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by Juan

Sabillón

Mi Tierra Auto Sales (Houston) TIADA CHAIRMAN OF THE BOARD

Today, we have an annual award at Mi Tierra Auto Sales where we recognize one outstanding employee who finds opportunities to give back and helps others grow at our dealership. It’s called the Don Carlson Outstanding Employee Award. The award recipient doesn’t have to be a manager; it can be anyone who embodies what Don was all about.

I could not write my last article without recognizing some very special people who really make this team go. I cannot say enough about our current leader, Jeff Martin, and his team: Sheila Andrews, Earl Cooke, Mike Dunagan, Cristina Fowler, Mario Martinez, Teresa Orkun, and Claudia Rojo. They are all selfless givers who have helped me, our association, and our industry in ways many will never know or truly be able to appreciate.

I have met so many awesome dealers and great friends through TIADA and know each of you has something you can give back to this association. As I move into my new role as a past president, I want you to know that serving you on the TIADA board has been the honor of a lifetime, and I encourage you to look for ways you can give back. Your reward will be much greater than your sacrifice.

Finally, I would like to extend an invitation to everyone to join me at our TIADA Conference & Expo where you’ll be able to enjoy some of the finest speakers and industry icons from all over the nation that will share the best knowledge and wisdom to run our dealerships in a more profitable way. In this business of so many moving parts, this is our opportunity to renew our skills as we learn from the best, so please save the date! — I promise you will go back to work with renewed energy and new ideas.

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legal corner

Timely Transfer of Titles Requires Diligence

by Michael

Dealer Question No. 1:

I recently retailed a vehicle that was a trade-in I bought from a new car dealer. The title certificate got tied up for some time, so I was late in transferring. Now I’m being fined by the Texas Department of Motor Vehicles for late transfer and I have a very unhappy customer. Where do I stand?

Dealer Question No. 2:

I recently retailed a vehicle I bought at a wholesale auto auction. After two months, the auction informed me that it wasn’t able to get a title certificate for the vehicle. I’m out money for repairs and improvements I made to the vehicle, and the loss of a sale, but the auction refuses to reimburse me for my losses. Where do I stand?

Response and Discussion:

D

MV takes the position that timely transfer by a dealer after a retail sale is strictly and absolutely required, and no excuses are tolerated.

For many years now, the number one complaint against dealers, and the number one DMV violation for which fines have been assessed, has been the failure to timely transfer title after a retail sale. In many of these cases, the dealers have sold vehicles purchased in good faith, but later ran into problems when the title certificates didn’t arrive in time (or not at all).

Often, DMV becomes aware of a late transfer when a consumer files a complaint about dissatisfaction with a dealer for such things as the dealer’s refusal to undo a deal, or to

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make a repair, or because the temp tag has expired and the metal plates haven’t been obtained. In compiling information for the complaint, regardless of the nature of the complaint, DMV acquires information about the timing of the transfer (or non-transfer) of the title. Based on many years of representing dealers in legal and administrative actions involving title problems, and in observing the DMV violation reports, I have concluded that late transfer (and in some cases, failure to transfer) violations can be generally put in three categories: (1) o utlaws, thieves, and scofflaws who have no intention of following the rules; (2) those dealers who, while being basically honest, have trouble keeping up with the burdens of business; (3) diligent, honest dealers who transfer over 99 per cent of their sales in a timely fashion, but who, despite their best efforts, occasionally have one fall through the cracks or have trouble with a late title coming in.

Dunagan

W.

TIADA GENERAL COUNSEL

Dealers should not expect sympathy or a free pass from DMV (or their customers) because an auction, new car dealer, or wholesaler caused the problem by not supplying a title certificate on time.

When this excuse is presented to DMV, the response is usually direct and pointed: “If you didn’t have the title certificate, you shouldn’t have made a retail sale of the vehicle.”

While those in the first category get no sympathy, I feel for the others. I offer some suggestions for those who want to comply but sometimes have trouble keeping up.

The issue of late filing of titles for dealers in the third category could 7

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be totally eliminated by making one change in how business is done: the refusal to sell a vehicle until the title certificate has come in. Most dealers tell me that would be an impossible situation (although I have heard from some who have instituted this policy).

Assuming that retail sales are going to occur prior to receipt of the title certificate, some amount of planning is necessary to handle situations when titles are late coming in, and preventing the problems from escalating.

My recommendation to the dealer who is willing to sell a vehicle before the draft or title arrives has always been to be prepared to address the issue with the buyer if the title is late. Files should be monitored to flag approaching transfer deadlines, so that time is allowed for the extra efforts needed to track down the titles. Instead of ignoring these problems, or waiting for the customers to complain to the state, I recommend calling the customers in, discussing the problems, and offering to remedy the situation. Remedies include swapping the customer into another vehicle or obtaining a 30-day permit from the local tax office (this doesn’t solve the late-transfer problem, but may keep the customer happy). Of course, a second temp tag should never be issued as that is an additional violation of dealer rules, and would only compound the problem.

Also remember that an expired buyer’s temp tag could possibly result in the customer getting stopped and ticketed for driving an unregistered vehicle. In addition to having a very unhappy customer, the dealer will also likely face action from DMV since police departments often report expired temp tags to DMV. It should also be kept in mind that, during the time before the transfer takes place, the dealer’s lien is not recorded or perfected, and

third parties are not on notice of the dealer’s interest in the vehicle. This gap can present a major problem if the vehicle is impounded, wrecked, or subjected to a mechanic’s lien.

At one time in the ancient past, some BHPH dealers were late in transferring because they were required to advance all sales tax at transfer, and they were waiting to collect additional payments to cover the tax. TIADA’s success to obtain deferred sales tax eliminated that problem. Another past problem for dealers was the requirement of having to provide proof of a buyer’s liability insurance before a transfer could be accepted. That requirement was subsequently eliminated on dealer transfers.

One of the most common complaints I hear from dealers who have been cited for late transfer is that it was their seller’s (or an auction’s) fault in not supplying the title certificate in time. New car tradeins, for example, are prime late-title prospects because individuals seem to have a hard time keeping track of their title certificates. And most wholesale auto auctions, despite having personnel assigned to work with sellers in tracking down titles, occasionally run into unusual delays and dead ends. If, before the title certificate comes in, the buying dealer spends money fixing up a vehicle, or retails it to a consumer who spends money on it, there will be a problem when the unavailability of a title comes to light.

Dealers should not expect sympathy or a free pass from DMV (or their customers) because an auction, new car dealer, or wholesaler caused the problem by not supplying a title certificate on time. When this excuse is presented to DMV, the response is usually direct and pointed: “If you didn’t have the title certificate, you shouldn’t have made a retail sale of the vehicle.”

I routinely get calls from dealers wanting to know what state law provides when an auction is late getting T e x a s

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a title to a buying dealer. The answer is that state law is silent on the issue and the contract between the parties controls.

Most auctions have in their registration agreement or their rules and regulations provisions dealing with the obligation of sellers to timely provide titles and remedies available to buyers when they don’t. The standard contract language provides that a buyer’s sole remedy, if the title doesn’t come in within a specified time (usually 20 to 30 days), is to return the vehicle and void the sale.

There is usually language advising buyers that if they sell the vehicle, or perform improvements prior to the title coming in, they do so at their own risk. Attempts to obtain restitution for lost profits or other damages caused by a late title usually fail in light of the clear contract provision.

When the e-tag system was implemented a few years ago, the mandate that titles be timely transferred on retail sales became even more critical than it was before. The keystone of the revised temp-tag scheme is the on-line reporting of all retail sales that occurs at the time of the sale, making information instantly available to the state as of the date of the sale. Prior to implementation of etags, the first notification of the retail sale of a vehicle available to the state was the actual transfer of title at the county tax office (or, possibly, a consumer complaint to the DMV).

TIADA was successful a few years ago in getting the legislature to extend the time periods for dealers to transfer and to lengthen the time that a buyer’s temp tag is valid.

Those time periods are: Dealer-financed sales: 45 calen dar days from the date of sale.

Non Dealer-financed sales (cash

or third-party financing): 30 calendar days from the date of sale.

Valid period for use of buyer’s

temp tag: 60 days.

Deferred sales tax: If title isn’t

transferred within 60 days after the date of sale, deferred sales tax June 2021

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treatment is lost and sales tax is accelerated.

Secured creditor position in bank ruptcy (federal bankruptcy law): If title is not transferred within 30 days from the date of sale, the car creditor’s security interest can be stripped, resulting in an unsecured creditor position.

Conclusion: Good planning

and diligent handling of titles and title transfers can go a long way toward eliminating fines, bad publicity,

disgruntled customers, and loss of lien status. Even with extended deadlines for transfer, it’s always best to transfer immediately after the sale.

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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on the cover

by TIADA Staff

n o s r e P n i k is Bac “W

hether it is seeing our old friends or meeting first-time attendees we really like connecting with other dealers. We are like a big family,” said Keith Hagler from Taylor Auto Credit in Taylor, TX. That is a sentiment shared by many dealers who are already registered and looking forward to the upcoming TIADA Conference and Expo.

Hagler should know — he and his wife Marcia have been attending the annual event for over 30 years and they have certainly seen that dealer family grow. Fifteen years ago, the conference was held on the Riverwalk in San Antonio with fewer than 50 dealers in attendance.

Today, over 600 people attend the show including almost 300 dealers.

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“During the Sunday evening networking cocktail reception, it is always so exciting to see all the regular members, but the anticipation of meeting the new ones is the best! This association continues to thrive and grow each year. This conference is one that I personally and professionally look forward to.” ~ Tammy Swofford, America’s Auto Auction

That growth has been driven by new dealers like Casey Cotton from CBEM Classics who recently opened his dealership in Spicewood, TX and Adriana Martinez from Gigante Auto Group in Dallas who attended her first conference in 2019.

Cotton used to work in the hotel industry and has some history with TIADA. He worked at the resort that hosted the TIADA Conference in 2011 in Horseshoe Bay, TX. “I worked with Jeff and Cristina when I was on the hotel side in the old days.

I saw the professionalism and value of TIADA early on. When I decided to get my dealer’s license, there was no question in my mind — I would join TIADA and attend the conference.” When asked about what he was looking T e x a s

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forward to at his first conference he added: “I am looking forward to networking with other dealers...

What I hope to gain is a better understanding of the business and building relationships that will grow over the years.”

There are plenty of opportunities to network throughout the conference, but the welcome reception on Sunday night is a can’t miss for Hagler. “It is such a great opportunity to reconnect with everyone, and a great way to kick off the event. It is getting hard to visit with everyone, though, since the conference has gotten so big.”

The reception is open to all attendees and it’s not just the dealers who look forward to reconnecting.

Tammy Swofford from America’s Auto Auction has it pretty high on her list as well. “During the Sunday evening networking cocktail reception, it is always so exciting to see all the regular members, but the anticipation of meeting the new

ones is the best! This association continues to thrive and grow each year. This conference is one that I personally and professionally look forward to.”

TIADA prides itself on offering the best dealer education in the country and day two is full of some great sessions. In the morning dealers can choose from

five concurrent sessions including Compliance, Management, Technology, BHPH and Retail. The full lineup of speakers and topics can be found on the TIADA website. Christie Wienecke with Performance Pre-Owned Sales in Livingston, TX said, “I always attend one or two of the compliance sessions, either Dunagan’s and/or

Over the years we have made various changes based on information that we learned at the conference. When I see how much it has helped our dealership, I’d be happy to pay five times the cost of registration because we just get so much more out of it.” ~ Christie Wienecke, Performance Pre-Owned Sales

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the TxDMV because we like to stay informed and up to date on any regulations.” This year’s conference will include sessions from OCCC and TxDMV on Monday. “But we really enjoy ALL of the conference.

After attending we come back to the dealership pumped up and ready to implement what we have learned. Over the years we have made various changes based on information that we learned at the conference. When I see how much it has helped our dealership, I’d be happy to pay five times the cost of registration because we just get so much more out of it.” Martinez agreed that you can learn a lot during the education sessions, and she stressed that she always learns something she can incorporate back at her dealership too, but she pointed out the Expo Hall is where she meets new people and discovers new products and services.

In this year’s Expo, dealers will find over 100 sponsors and exhibitors. “There is really no better marketplace for dealers,” said TIADA Director of Associate Member Relations Patty Huber, “and this year we have more new exhibitors than we have ever had.”

Due to the pandemic, many dealers had to find new and creative ways to buy and sell vehicles and take care of their customers. Along the way, many of the companies that provide products and services to the used car dealers had to reimagine their businesses as well.

This has created unprecedented innovation in the market and all those new and creative ideas will be on display Monday and Tuesday in the Expo Hall. Swofford turned the tables and explained that the Expo is also a great opportunity for vendors to hear from the dealers too. “I want to get the perspective from the dealers on how they are adapting to the way our industry is changing, what is or isn’t working, how the shortage of cars is affecting them and how they T e x a s

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look to overcome this challenge.”

She also pointed out vendors have a lot of camaraderie and they too use this time to share ideas and pull some pranks on one another, adding “that is a favorite of mine.

All in good fun, of course!”

The business side of networking has always been the dealer roundtables. It is a hallmark of the TIADA Conference, and it’s been a dealer favorite for years. Cesar Stark from S & S Motors in El Paso, TX said he enjoys everything about the conference. He appreciates all the information he gets from the education sessions, but, for him, the dealer roundtables are where he finds the most value.

“I learn so much just by talking to fellow dealers from around the state who are always willing to share their knowledge and experiences in this challenging business.” Teresa Orkun oversees the roundtable discussions for TIADA, and she thinks she knows what makes them so popular. “First, we only allow dealers to attend. This creates an open environment for dealers to discuss issues. Also, we try to keep the tables to no more than 10 dealers per table, a format that allows everyone to participate.

And last, it is very fast paced. I have realized dealers don’t have the longest attention span, so each session is only 40 minutes.” The total allotted time for the dealer roundtables is just over two hours, this allows dealers to choose three out of twelve topics they would like to participate in. A full list of this year’s topics can be found on the TIADA conference website under education.

It’s hard to tinker with something that has been going so well, but TIADA is always looking for ways to improve the conference.

This year that innovation will be found on Tuesday in the new Learning Laboratory. As Orkun explains: “We listened to our members and past attendees to June 2021

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come up with this new concept.”

Dealer Panels, Q & A Sessions and Hands-On demonstrations have always been very popular at the conference, so this year TIADA is offering 15 hours of interactive sessions as part of the Learning Laboratory. “I really do like the dealer panels because I like to see other people like us, in our industry, sharing what works for them on whatever topic that might be,” said Wienecke. And she was not alone. Martinez added “It’s so hard

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to decide. I am looking forward to BHPH Unplugged since I am given the opportunity to listen to some of the most successful dealers in the nation. I am also eager to attend the “2021 Legal Trends” panel discussion in addition to “New Enforcement Philosophy for CFPB & FTC” under Cars and Coffee since compliance plays a very important role in the daily operations of the dealership.

Kathy Castañeda from Manna Motors in Lewisville admitted the 2021 TLSAA Lubbock_TIADA ad.pdf

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conference is where she goes to get up-to-date information on compliance changes and new best practices in the industry: “This year in particular, we have been forced to change the way we do so much, I’m looking forward to hearing the latest on everything.”

Like many, she confessed “It’s also a break from the everyday work at the dealership; an opportunity to disconnect for a while. We are still working and learning while at the conference, 2/28/21

4:11 PM

“There is really no better marketplace for dealers, and this year we have more new exhibitors than we have ever had.” ~ Patty Huber, TIADA Director of Associate Member Relations but in a different and refreshing way.” Having the first live dealer conference in Texas has not gone unnoticed for many vendors and dealers who cannot wait to get back to normal. Stark summed it up best: “The TIADA conference is a must attend event; I really look forward to attending the conference every year and gain a ton of knowledge that I can bring back home and apply to my business. Not being able to attend a live conference last year due to COVID has really made me excited about this year’s event. My whole family is looking forward to it. I get to mix a business trip with a family getaway at a gorgeous resort.”

The TIADA Conference and Expo will be held in person and live from July 25–27 in Round Rock, TX at the Kalahari Resort.

Dealer member registration is $595, but dealers who register early (by June 18) will receive the Early Bird rate and save $100.

There is also tiered pricing for dealerships that bring more than one person.

C

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June 2021

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feature

Featured Speaker

How to Find and Maintain BHPH Customers

I

n today’s ultra-competitive sub-prime and deep subprime environment, not only is it challenging to find a Buy-Here-Pay-Here (BHPH) customer, it’s just as challenging to keep them, if not more so. The number of players vying for this customer is at an all-time high and not looking to shrink anytime soon.

As for BHPH dealers struggling to attract new customers and/or keep the ones they currently have, they have a myriad of excuses for losing their customer base. They easily blame their misfortunes on banks, finance companies, and even credit unions who have all been very aggressive in going after a customer base that they have readily turned their backs on in the past. They blame the vehicles they are selling; lamenting the fact that, because vehicles are lasting longer, customers don’t need to replace them as often. They even blame the customers who have chosen not to buy because they simply don’t want to have a car payment.

Now all three of these excuses do have some merit.

Wells Fargo, Santander, Chase, and Capital One have all been very aggressive in dipping into the typical BHPH credit score range for the better part of the past 24 months. And we are seeing credit unions become a player as well. Unfortunately, with the cost of funds being as low as they are, and appears will be that way for quite some time, it is likely they will stay aggressive for the foreseeable future. Vehicles are better made than back in the day and are, therefore, lasting longer. Despite the mass of recent recalls, vehicle longevity doesn’t seem to be headed in the wrong direction, either. And with job instability due to the pandemic, everyone is apprehensive to take on new debt.

So these are all legitimate challenges that face BHPH dealers’ ability to not only attract, but keep customers. But I can assure you, they are not the only reasons dealers may be struggling with this. Having the opportunity to work with dealers in our 20 Groups, in classes that I teach, and in the consulting I do with BHPH dealers, I typically see that the reason some dealers are struggling is self-imposed.

Brent Carmichael Consultant NCM Associates

Can They Find YOU?

A recent study found that 80-85% of BHPH customers have done some to significant research online prior to ever visiting a dealership. This means that to attract our customer, you have to have a web presence, not just a website. Things to focus on would be Search Engine Optimization (SEO), Search Engine Marketing (SEM), Facebook, and online reviews. Can the customer find you without typing in your dealership name specifically in the search bar? If not, they probably will never visit your dealership. Web technology is advancing at a headspinning pace, so SEO, SEM, and Facebook campaigns should be handled by a professional to be truly effective.

There are quite a few free ways to increase your web presence, but for it to really attract customers on a consistent and ongoing basis, seek a professional.

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Communicating the Right Message

Upcoming Events 2021

July 25 Board of Directors Meeting Kalahari Resorts & Conventions Round Rock, TX

July 25-27

TIADA Conference and Expo Kalahari Resorts & Conventions Round Rock, TX

Local Chapters CORPUS CHRISTI

G.R. Moore The Car Shack (dates announced at www.txiada.org)

EL PASO

Cesar Stark S & S Motors Meeting – 3rd Friday (Monthly)

FORT WORTH

Jerry Smith H J Smith Automobiles Meeting – 4th Thursday of Jan–May and Sep–Oct

HOUSTON

April Hanson Coast to Coast Motors Meeting – 2nd Tuesday (Monthly)

SAN ANTONIO

Jose Engler Irving Motors Corp (dates announced at www.txiada.org) 18

When it comes to advertising to attract customers, conventional wisdom doesn’t apply. Conventional wisdom says customers are price, down payment, payment, or interest rate conscious. Research has shown the advertising hot buttons for BHPH customers are simply quick and easy financing. What they are telling us is that they want their buying and financing process to be short, sweet, and to the point. They seem to not be too concerned with price, down payment, payment or interest rate. They want to get in and get their vehicle and not have to spend all day or jump through a bunch of hoops to get it. So maybe you are spinning your wheels trying to advertise lowest down payments or best prices and focus on the financing experience instead. As with all advertising, if you say it you have to be able to back it up.

Referrals

Word-of-mouth is another way of attracting customers. Referral programs are a staple in just about every retail business. What better endorsement of your business to a prospective new customer, than a referral from someone who has done business with you? Customers are more likely to buy a product or service from a business where a family member, friend or co-worker has purchased and had a good experience.

Current customer referral programs are the most prevalent. Most dealers offer some sort of monetary reward if a new customer purchases a vehicle that was referred by a current customer. These range anywhere from $50 to as high as $300. Some referral rewards are simply applied as a payment to the referring customer’s account. Some are paid in check directly to the referring customer. Some even offer to pay off referring customers’ vehicles once they have referred a predetermined number of customers. Usually this

number is around 10 and, frankly, I don’t know of any dealer doing this that has actually had to pay it.

Now a referral need not always be from a current customer. The most effective referral programs reward referrals from anyone, including other dealers, vendors and even employees.

It shouldn’t matter where you get the lead, as long as you get it. Who better to get a referral from than, say, a repair shop you use on a regular basis? Or from the rent-to-own store nearby?

Or maybe from the F&I manager at the new car store down the street? All three deal directly with our common customer on a daily basis.

What makes any referral program effective will be the value the person doing the referring perceives in the reward. If you have a referral program and you’re not writing very many checks for referrals, then your customers, vendors, other dealers, or your own employees don’t see the value of the reward, don’t understand how the program works, or don’t think highly enough of your business to tell anyone about it. The first two are fairly easy to fix.

However, if the third is the case, then attracting and keeping customers is the least of your worries.

Some of you are thinking this all sounds great, but in my state it’s against the law for a car dealer to pay a referral or “bird dog fee,” as they are commonly known. This is usually true in states where car sales people must be licensed. There are two ways to you can get around this. The first would be if you have a Related Finance Company (RFC), the RFC can write the referral checks. And the second would be, if you don’t have an RFC, to offer some sort of service as a referral fee. Oil changes, car washes, and details are the most prevalent among dealers who don’t have an RFC and who reside in those restrictive states.

KEEPING CUSTOMERS

When it comes to retaining customers, the most important thing T e x a s

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would be the overall dealership environment. Customers will buy again from a place they enjoy doing business with. A business with a positive, customer friendly vibe where they feel appreciated as a customer is what we all want from any business.

Make the Experience Enjoyable

To accomplish this, you need to have a fun atmosphere in your dealership. Your employees should want to work there and want to interact with your customers.

I was recently in a BHPH dealership where there was just this enormous energy about the place. There were customers just hanging out and chatting with employees, customers in making their payments, and prospective customers working with sales people to buy a vehicle. And this was at 10 a.m. on a Wednesday morning.

I can only imagine what it would be like at 5 p.m. on a Friday! The point being, the dealership was a place customers wanted to be. It was very relaxed, open and inviting. It was a good-looking dealership inside and out.

The windows were painted brightly with the dealership’s logo. It was very neat and clean on the inside. All the vehicles on the lot were clean, arranged in straight lines, and quite a few with their windows painted brightly, as well. It just looked like a very inviting place.

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Too often I visit dealerships where it feels like customers are seen as almost a nuisance. And I can assure you that if I can feel it, the customers can, as well. I hear employees talking derogatorily about their customers, complaining about them. I guarantee you this bleeds over into how they are treated. This is most prevalent on the collections side of the business. Collections staff get frustrated when customers don’t pay on time or break arrangements. Then in turn, their treatment of the customer suffers. We are in a customer service business, and the treatment of your customers should be about treating all customers with courtesy and respect regardless of account performance. It is, after all, the customers that pay not only the bills, but the salaries, too.

Inventory Mix

Inventory is another key area to keeping customers.

When they purchased their vehicle, we sold the customer the dream that when they pay on that vehicle as agreed, we will be able to get them a nicer vehicle next time.

We need to be able to live up to that from an inventory standpoint. It is important to carry some nicer, higherend vehicles to step them up into or they will — because we know for a fact that they can — go somewhere else.

A customer will only buy a ’06 Ford Taurus with 120,000

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miles on it so many times before they will want to step up. Granted, this should not be a significant part of your inventory — 10 to 20 percent at most. And for those two- and threetime customers, you should even be willing to go out find something specific they might want (within reason, of course).

Be Competitive

In today’s competitive environment, you are going to need to be willing to sweeten your deal to keep

customers. This could be in the form of lower down payments, longer terms or lower interest rates. We know our customer is getting a lower rate and longer term and in most cases, a nicer vehicle through the sub-prime market. The question is, are you willing to match their deals?

While you may not be able to match the vehicle they are purchasing, for the right customer, you can match their financing terms. Not every customer is worthy of the special deal, but there are probably more than you

think that would be worth the risk.

Now a quick word of caution here: One of the biggest underwriting mistakes I see is with current or previous customers; usually this happens with the customer’s payment.

They can only afford what they can afford, so make sure you take that into consideration. Extend terms, lower down payment, or lower interest rates, but make sure the payment is affordable first and foremost.

Your Current Customers — Selling Forward

Looking to your current customer base is probably the most underutilized way to retain customers.

Current customers on the books, paid-out customers, and even charged-off customers are all good avenues for retaining customers.

Most dealers do a decent job with repeat customer business, yet overlook or flat out ignore their paidout and charged-off customers.

Let’s start with current customers on the books. Most dealers have a dollar balance at which they start soliciting customers to buy. Usually this is somewhere around six months remaining on the contract.

In my opinion, this would be the latest point to start this effort. This is about the time our customer is starting to see the light at the end of the tunnel, so starting after that will make it tough to keep them. I do not recommend a practice I’ve seen in some dealerships, where they set a remaining balance target before a customer is eligible to trade. An example would be that a customer has to have paid 75% of their beginning balance before they would be eligible. Dealers who base the solicitation start date on the customer, their pay history, and the vehicle will have more success getting that customer into a new contract before they have a chance to shop around.

The bottom line is that from a sales process standpoint, you should have a set time frame to start soliciting current customers to buy.

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Before you decide to start soliciting your low balance customers, make sure you are prepared to deal with the possibility of negative equity on their trade. We talked earlier about sweetening your deal from a financing standpoint and this would most definitely fall into that category. It can be handled in a few ways. It can be rolled onto the new note, which would require more of a down payment from the customer in conjunction with their trade, a higher payment, or a longer term. It can be forgiven, which would invoke 1099-C requirements.

Or a combination of both, where some of the negative equity would be added to the new note and some would be forgiven. There is no right or wrong answer. It all depends on how important it is to retain the customer.

Market to Paid-Out Customers

If you haven’t done so recently, now would be a good time to solicit your entire paid-out customer base. Start with the most recent and work your way back. Most dealers don’t have a formal follow-up process for a customer who pays out. It should be very similar to the follow-up process for a customer who buys and the ones who don’t buy. As soon as you get a call for a payoff for a customer, you should be in contact with that customer immediately to see if there is anything you can do to keep them, whether they are calling for the payoff themselves, or especially if it is a another dealership calling.

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The day a customer pays off, there should be some sort of contact, whether by phone call, email or text, thanking them for their business and reminding them of your referral program. This should be done by both a representative from the RFC (If you have one) and the customer’s original salesperson (if they are still employed; otherwise, the sales manager). Also, a handwritten thank you card should be sent. After that, some sort of regular contact via text, email or mail just to let them know you are still there for their vehicle financing needs and would love to have them back. Most dealers have the attitude that the customer will be back on their own so why work so hard; or that our customers move all the time and the information we have is not any good. Both attitudes are reactionary, and to retain customers, you have to be proactive. Data from our dealer clients shows that the average time at residence for sold customers is 30 months.

Maybe our customers are more stable than we give them credit for.

Second-Chance Customers

Let’s talk about your charged-off customers. No I’m not crazy. You have a history with the customers you charged off, albeit not the best one. Most dealers will finance a customer who has had a repossession with another dealer, so why not resell to one who has had one with you? If you aren’t currently pursuing deficiencies,

21

why not give them a second chance?

If you are pursuing deficiencies, why not take a look at those that are outside of the statute of limitations? Obviously, I’m not suggesting you should resell all your chargeoffs. There will be some who have burned the bridge for good. But I’ll bet there are quite a few who are in a better position now than when they were charged off. A simple second chance could earn you a customer for life.

STAYING AHEAD OF THE COMPETITION

I mentioned earlier that I’ve seen the results of these strategies in dealerships across the country, so I am confident they will work for you, too. But what works today may not work forever... technology, new competition, the economy, and many other factors impact our BHPH businesses. Staying informed about what works — and what

doesn’t — is critical to maintaining and growing your operation.

Consider ways to connect with and learn from other BHPH dealers. I can’t overstate the importance of getting out of your dealership from time to time to work on these strategic issues with your peers. There’s no need to reinvent the wheel when you can learn what is already working in their dealerships. Then invest in your employees with formal training to make sure their attitudes and processes are in alignment with yours. When you know what you want to accomplish and how to achieve it, and everyone is working from the same page, life is easier and achieving your goals is more realistic!

Whether you are a BHPH dealer struggling to find and keep customers, or you’re the most successful operator in the country, you know the days of hanging out a shingle and drawing customers to your lot

are over. Today’s BHPH customers are using the Internet to find quick and easy financing from dealers who will treat them with courtesy and respect. Fortunately for them, but unfortunately for us, these customers now have a multitude of options. If at least 50% of your current monthly sales are not from repeat and referrals, then one or more of the things discussed here is probably lacking in your operation. Most of these recommendations come at little to no cost to implement or fix. Some will take a financial commitment. But all of them require a desire to do better and the will to make it happen.

Brent Carmichael will be a featured speaker at the TIADA Conference on Monday, July 26, 2021 in the BuyHere Pay-Here Learning Track. He is also participating in a Cars and Coffee session on Tuesday, July 27. To register for this year’s conference, visit www.tiadaannualconference.com.

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feature

Featured Speaker

5 Tips for Acquiring Inventory

A

s an independent dealer, apart from customer acquisition, inventory acquisition is always front of mind. Throughout the past year, auctions have seen an increase in demand, and sites like Manheim and ADESA have had fewer vehicles on their run sheets. The dearth of inventory and the increasing competition for available inventory necessitates a change in approach.

Buying cars off the street should be where you shift significant focus.

In 2020, Carvana again increased the number of vehicles purchased from consumers; they grew from acquiring 104,000 units in 2019 to 204,000 units in 2020.

That’s a 95% year-over-year increase. Although it’s not as high as some of their past increases, it does show that they have continued to lean into a private purchase vehicle acquisition strategy. Part of Carvana’s success is because they make selling a car simple for their customers.

Purchasing inventory from consumers, whether or not they plan to purchase another vehicle, provides limitless opportunities. Here are five tips to help you source inventory from private party purchases.

1

Online Sources. There’s a wealth of places you

can go online to find people looking to sell their car privately. Craigslist, Facebook Marketplace, and

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Zach Klempf

Founder and CEO Selly Automotive

Facebook groups for private party sellers are all places you should keep in mind. For Facebook groups with potential sellers, you might look for local groups that have auto owners or truck groups. You can customize your notifications so that you only see alerts when people post with certain keywords, or you can go in and search for the specific inventory you’re looking for.

2

Leverage your CRM. Although it might

not be the first place you’d think to go, your CRM might hold a treasury of potential vehicles. A customer might not be actively looking to sell; however, you can use your CRM to reach out to customers who in the past have purchased vehicles that are not in high demand. Seek them out and offer a trade-in. You should also use your CRM to advertise and increase your customers’ awareness. Create an email campaign that notifies your customer base that you are looking to purchase used vehicles. You can use segmented populations and personalize the messages. This option allows you to increase your advertising without having to spend extra.

3

Incentivize Trade-ins. Offering an incen-

tive to customers considering a trade-in or outright selling of their vehicle can help create buzz for your dealership. There are several incentives you could offer, from discounts to referral bonuses, to free 23

services. If you use your Facebook page to promote the incentives, you can tie it back into the first tip above. Buzz and word-of-mouth promotion is sometimes the hardest to acquire, but it is one of the most effective. We’ll look at another component of this below.

4

Expand Your Search Parameters. As you are

crafting your searches for FSBO (for sale by owner) inventory, increasing the distance you’re willing to look is another good way to have more options for inventory acquisition. Whether you expand your boundary by a few miles or by a couple of hours’ trip, if you can find the right vehicles, it will be worth it.

5

Train Your Staff. Once you have consumers in the door, it’s important that

you have staff who are specifically skilled when it comes to engaging owners who are considering whether or not they’ll sell their vehicle. You may want someone from an area other than sales to work in these roles. Also, you should ensure that your staff are familiar and comfortable with check-printing and signing. Speed and efficiency are critical for this part of the process and have a cascading effect on the sell process for your customer.

As you explore these different tips, what should always be at the forefront of your mind is how to relate the value of doing business with you to the customer you’re looking to buy from.

Ensure that you’re crafting a premium customer experience when they come in to sell their vehicle, and when they reach out in response to your email campaign

or other tactics. Many individuals choose to sell privately because it seems like less hassle and more money. You have the advantage, though. You can assist the seller with titling, tax, and positive or negative equity. Bringing a car to a dealership to sell it is significantly more secure than going to someone’s home or meeting in a parking lot to exchange cash and a title.

Offer fair and transparent pricing.

These techniques will help ensure that you can actually close the purchase once you’ve connected with a potential seller.

Zach Klempf will be interviewing a representative from Toyota and a used car dealer about electric vehicles at the TIADA Conference on Tuesday, July 27, 2021 in the Live Podcasts section of the Learning Laboratory. To register for this year’s conference, visit www.tiadaannualconference.com.

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legislator spotlight Representative Toni Rose is a mem-

they begin to expect your leadership in more pressing areas of service.

I share with people all the time that I was “voluntold” to run for office.

A seat for Texas House District 110 became open unexpectedly. After years of prodding, and one special call in particular, my answer to the question of running for office shifted to, “I’ll think about it.” The community support of my potential candidacy was absolutely amazing, and I decided to throw my hat in the ring for District 110.

ber of the Texas House of Representatives for District 110, encompassing portions of the cities of Dallas, Balch Springs, and Mesquite. Rep. Rose is a mental health professional, working within the Criminal Justice System prior to her election to the Texas House of Representatives. Her legislative focus includes mental health reform, access to affordable healthcare, and a strong public education system across the State of Texas.

Texas Dealer: What

Texas Dealer: What

skills do you utilize most frequently at the Capitol?

inspired you to run for public office?

Rep. Rose: I’ve been

around politics since I was nine years old. My dad was a politician. After an attempted run for State Representative, he was elected as a School Board Trustee and later served as Justice of the Peace. Despite my love for Dad, I never had the desire to follow in his footsteps as an elected official.

People occasionally assumed I was running for office because of my level of community engagement and, of course, my father’s record of service. Running for office definitely wasn’t in the plan, as the majority of my professional career has been in correctional mental health.

My real plan was to retire from the local county hospital and continue serving my community.

Now, those same people who would assume I had plans to run for office began to encourage me to do so.

My answer remained the same, “No, thank you.” I’ve come to understand, however, that when people see your involvement and commitment to the community, June 2021

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Rep. Rose: I think most

legislators will point out that relationship building and networking are the most often used skills within the halls of the state capitol. Many people, unfamiliar with the culture of the capitol, expect legislators to generally dislike each other or remain at odds regarding the more partisan deliberations that occur.

That couldn’t be further from the truth! The fact is that most of us like and enjoy each other’s company, despite political affiliations.

Texas Dealer: What is your favorite aspect of Texas’s House District 110?

Rep. Rose: The constituents of District 110 are

my neighbors, family members, and friends. They are students, small business owners, parents, aunts, uncles, and grandparents. They are vibrant, loving, and care about their communities, as well as the outcomes of their fellow citizens. I love the culture, food, and 35

connectivity of the people who live, work, and play in the district. I am proud to call District 110 home.

Texas Dealer: What problem or policy issue do you think deserves more attention?

Rep. Rose: Texas elected officials on both sides

of the aisle have been crafting legislation to expand Medicaid services for specialized populations of Texans in need.

Although Texas has not found its own solution to expanding healthcare coverage comprehensively, I believe a viable solution is both possible and necessary, as families continue to bear the brunt of skyrocketing healthcare costs and untreated illness.

Texas Dealer: What was your first vehicle?

Rep. Rose: 1979 charcoal gray Buick Regal.

Texas Dealer: What is the biggest challenge facing small business owners today?

Rep. Rose: To accurately address the impact of the

Access to capital, access to developmental resources and mentorship, and access to banks have been longstanding hurdles for business owners living and operating in District 110. These real and overwhelming challenges existed before the pandemic.

I think the impact of COVID-19 on businesses can be summarized with this staggering fact: According to the National Bureau of Economic Research, some 41% of African American small businesses were forced to close permanently due to COVID-19 as compared to 17% of their business counterparts.

While business ownership is certainly diverse in District 110, I believe this example points to structural inequalities in business ownership. Shoestring momand-pop businesses don’t have the capital to pivot in the face of a rapidly changing economic environment.

The impact of the pandemic on our economy and small business community should give current business owners pause and highlights the need for beefing up the foundation, mission clarity, and cash reserves of their enterprise.

coronavirus on businesses operating in District 110, we must create a demarcation line between the challenges our business owners faced before the pandemic and those faced after the pandemic began.

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5/7/21 4:21 PM June 2021

feature

TIADA Attorney Referral Program

by TIADA Staff

A

ny dealer who is in business long enough will need an attorney at some point to deal with a lawsuit from a customer or employee, review contracts, handle an enforcement action from a government agency, or one of numerous other reasons. If you ever think you need legal representation, TIADA is here to help.

First, TIADA will discuss your concern with you to see if there are alternatives to hiring legal counsel.

Hiring an attorney to resolve a matter is not always the best or only option, sometimes things can be worked out without a lawyer, but one of the worst decisions you can make is forgoing representation when legal counsel is necessary for a favorable outcome. TIADA will help you figure out which situations require representation.

Should you need representation, TIADA will also help you decide who is the best lawyer for you. Dealers often ask who the best lawyer is and the answer, like with almost every strategic business question, is “it depends.” The trick in this situation and many others is knowing what it depends on.

TIADA is here to help match you with the best lawyer for your situation. Currently, TIADA has over 20 fantastic lawyers with various specialties in different cities throughout the state who have agreed to offer a free consultation to our members.

Since the emphasis of this issue of the Texas Dealer is on our upcoming Conference, I would like to take the time to highlight four of those lawyers who will be participating as panelists in one of the education sessions on Tuesday morning. Those attorneys are:

Bankruptcy, and Commercial Litigation focusing on collecting delinquent accounts.

Brandon Starling is an experienced litigator who has represented independent car dealers throughout the State of Texas for the last ten years.

Such representation includes assisting independent car dealers in both litigation and administrative law matters, including consumer litigation and complaints, contract disputes, protests before the Motor Vehicle Board, enforcement matters before the TxDMV and OCCC, employment matters and litigation, construction disputes, and in general, the dayto-day operations of the dealership.

Please join us at our conference because compliance is always cheaper than having to hire an attorney.

Carlos Miranda is an attorney based in El Paso who has been practicing law for over a quarter century in that city. He practices in the fields of Business and Family Immigration, Business and Consumer June 2021

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Susan White has represented independent car dealers since 1995. She represents independent dealers before the TxDMV and OCCC in licensing and enforcement matters. Susan’s practice also includes asset purchase agreements involving new and independent dealerships.

Erik Wilson is an attorney based in Houston.

He handles all aspects of small business legal matters while specializing in auto and auto dealer related litigation. He handles everything from major Deceptive Trade Practice litigation and other customer disputes, to OCCC and TxDMV violations, breach of contract claims, dealer disputes with lenders, insurance disputes, title encumbrances, sequestration, repossessions, and much more.

Please join us at our conference because compliance is always cheaper than having to hire an attorney. We have great attorneys besides this panel that will be presenting including Mike Dunagan, Jean Noonan, and several state agencies. I hope to see you all in Round Rock on July 25th through 27th.

37

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feature

New Board Member Appointments at TxDMV and OCCC

by TIADA Staff

Governor Abbott Names Chair and Appoints Two New Members to the Texas Department of Motor Vehicles Board and Appoints Scanlon to Finance Commission of Texas.

T

he Texas Department of Motor Vehicles provides regulation of vehicle dealers. Governor Abbott has named Charles Bacarisse to serve as Chair of the board and has appointed Christian Alvarado and Sharla L. Omumu to the Board for terms set to expire on February 1, 2027. Also, Governor Greg Abbott has appointed Debbie Scanlon to the Finance Commission of Texas for a term set to expire on February 1, 2022. The commission is the governing body of that oversees the OCCC.

Charles Bacarisse of Houston

is Vice President of Major Gifts at Houston Baptist University. He is a former board member of the Department of Information Resources, where he served as Chair. He served for 13 years as the District Clerk of Harris County.

Previously, he served on the boards of the County and District Clerks Association of Texas, Neighborhood Centers Inc., the Association of Fundraising Professionals – Houston Chapter, and Downtown Houston Association. Bacarisse received a Bachelor of Arts and a Bachelor of Fine Arts from Southern Methodist University.

Christian Alvarado of Austin is

.

co-founder and partner of CB Capital, LLC. He is the past board president for Austin Angels, board member of Friends of the Children Austin, a member of the Dell Children’s Trust, and a volunteer for the Lake Travis Youth Sports Association. Governor Abbott previously appointed him to serve on the board of June 2021

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Please Welcome Our Newest TIADA Members DEALER MEMBERS Antler Auto Tray Tyner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 Riverhill Blvd., Kerrville, TX 78028 AutoWay Tanner Harris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9701 Dessau Rd., 901, Austin, TX 78754 Caravan Auto Sales -Inc Alamzeb Khan . . . . 6720 Fairbanks N Houston Rd., Houston, TX 77040 DGB Motors LLC David Gonzalez . . . . . . . . . . . . . . . . . . . 3817 E. Amarillo Blvd., Amarillo, TX 79108 DGL Auto Susana Lozano . . . . . . . . . . . . . . . . . . . . . . . . . . . 4242 Culebra Rd., San Antonio, TX 78228 Discount Auto Sales James Mills . . . . . . . . . . . . . . . . . . . 2713 Devon Rd, Wichita Falls, TX 76308 Mass Automotive Group, Inc. Irfan Siddiqui . . . . . . . . . . . . 4014 Parker Rd., Houston, TX 77498 MSTR Martin Guevara . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 Pequin Rd., Unit 1, Crosby, TX 77532 Muenster Autohaus Llewyn Jobe . . . . . . . . . . . . . . . . . . . 100 North Main St., Muenster, TX 76252 North Texas Autos Hussien Khafaji . . . . . . . . . . . . . . . . . . . . 7201 Native Oak Ln., Irving, TX 75063 NYC Auto Sales Sally Taylor . . . . . . . . . . . . . . . . . . . . . . . . . . 128 SE 15 St., Grand Prairie, TX 75050 Ruiz Ranch Motors Constantino Ruiz . . . . . . . . . . . 4820 US Hwy 281 N, Spring Branch, TX 78070 Southern Premier Auto Michael Smith . . . . . . . . . 922 West Beacon St., Philadelphia, MS 39350 Team X-TREME Mohammad Hanif . . . . . . . . . . . . . . . . . . . . . . . . . 7090 SW Fwy, Houston, TX 77074 Theodos Jimmy Theodos . . . . . . . . . . . . . . . . . . 15355 State Highway 43 N, # TX7, Karnack, TX 75661 Triple D Cars and Trucks Armando Perez . . . . . . . . . . 11022 Harry Hines Blvd., Dallas, TX 75229 ASSOCIATE MEMBERS Butler & Sanchez LLC Amanda Sanchez . . . . . 1849 Kingwood Dr., Ste. 101, Kingwood, TX 77339 Byrider Franchising Jack Humbert . . . . . . . . . . . 12802 Hamilton Crossing Blvd., Carmel, IN 46032 Get Spiffy, Inc. Laura Ryan . . . . . . . . . . . 2290 Springlake Rd., Ste. 102, Farmers Branch, TX 75234 LodeStar Re Paul Griego . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PO Box 92647, Albuquerque, NM 87199 Lotpop Inc. Jasen Rice . . . . . . . . . . . . . . . . . . . . . . 13470 S Arapaho Dr., Ste. 120, Olathe, KS 66062 PureCars Melissa Cofar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1618 Seignious Dr., Charleston, SC 29407 The Octane Group Jim Rhoads . . . . . . . . . . . . . . . . . 3267 E 3300 S #321, Salt Lake City, UT 84109 Total Dealer Training Jay Rose . . . . . . . . . . . . . . . . . . . . . . . 10917 Upland Park, Houston, TX 77043

resource guide The TIADA Website: www.txiada.org

Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more.

Register for all upcoming TIADA events online 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 www.txdmv.gov 40

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

the Department of Information Resources, and he is a former member of the One Call Board of Texas. He is an active member of the State Bar of Texas and previously served as Chief of Staff at the Railroad Commission of Texas and as a corporate attorney at Jackson Walker, LLP. Alvarado received a Bachelor of Arts from the University of North Texas and a Juris Doctor degree from The University of Texas School of Law.

Sharla L. Omumu of Cypress is

Director of Incentives for Gulf States Toyota, Inc. She has held several positions at Gulf States Toyota since 2001. She is an active member of the Sherriff ’s Association of Texas and the Girl Scouts of San Jacinto, and a supporter of several other local organizations. Omumu received a Bachelor of Business Administration from the University of Houston, and a Master of Business Administration from the University of Phoenix. Omumu will serve as the manufacturer or distributor licenseholding representative.

Debbie Scanlon of Missouri City

is Audit Partner and Regional Industry Leader for BKD, LLP, and is a Certified Public Accountant. She is a member of the American Institute of Certified Public Accountants (AICPA), Texas Society of CPAs, Missouri Society of CPAs, and the Puerto Rico Society of CPAs. She is a member of the AICPA Investment Company Expert Panel, and was recently elected to BKD’s Governing Board. She is a past board member of the Independent Bankers Association of Texas Leadership Division and past president of the board of Susan G. Komen for the Cure Houston Affiliate. Scanlon received a Bachelor of Science in Accounting from Northwest Missouri State University.

On a related note, please join us for our conference at Kalahari Resorts on July 25th to 27th, where both the TxDMV and OCCC will be presenting. Specifically, Corrie Thompson, Director of Enforcement Division, will discuss the TxDMV investigation process and from the OCCC, Huffman Lewis, Director of Consumer Protection, and Eric Fancher, Financial Examiner, will discuss nine areas of compliance you need to check today.

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June 2021

legislative bulletin

T

he 87th Legislative Session officially ended May 31, 2021. TIADA worked until the end to make sure your voices were heard; TIADA attended numerous hearings, met with other stakeholders, provided information to members of the legislature on your behalf, and reached out to the members with some calls for action. As the closing of the session, here is the latest status of the many bills we’ve been following:

SB 15 (Nichols) This bill would limit the access to TxDMV records to help eliminate unwanted telemarketing calls. The initial version of this bill eliminated all uses of TxDMV records and would have prevented dealers from verifying ownership of vehicles.

TIADA recognized the importance of eliminating unwanted calls and worked to ensure legitimate uses were not prevented access.

STATUS: TIADA worked closely with Senator Nichols and his office to ensure legitimate uses of this information are not made inaccessible. TIADA explained and Senator Nichols recognized there are numerous legitimate uses dealers have for this information, including verification of ownership of trades.

TIADA also understands the Senator’s goal to prevent illegitimate uses of this information. TIADA believes the right balance was found and dealers will not be negatively impacted while consumers will benefit from prevention of improper uses. This bill has been sent to the governor for his signature as amended.

SB 876 (Hancock) This bill allows a motor ve-

hicle dealer to apply for the registration of and title for vehicles sold by the dealer with any county assessorcollector who is willing to accept the application.

TIADA supported this bill.

STATUS: TIADA worked closely with other stakeholders to help move this bill through the legislative process. This bill will not immediately take effect if signed because the TxDMV must first update manuals, provide guidance to the counties, and perform system updates. This bill has been sent to the governor for his signature.

June 2021

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SB 935 (West) This bill would allow a metal recycler or used automotive parts recycler to purchase a vehicle for crushing or parting without obtaining title to the vehicle or notifying a lienholder if the vehicle is at least 12 years old and the lien is at least four years old. TIADA opposed this bill.

STATUS: TIADA worked hard to ensure members of the legislature were aware that 12-year-old vehicles are very common and not clunkers and that this bill would hurt the ability of lienholders to ensure their collateral is safe from bad actors. This was the second session that a bill like this has appeared and we fully expect to see another in the next regular session. This

bill passed the Senate but did not pass the House.

HB 2879 (Landgraf) This bill would change the

notice requirement to lienholders before the sale or disposition of a motor vehicle by allowing the later of the 30th day after the date on which the charges accrue or the 30th day before the date of a proposed sale or disposition of the motor vehicle. Current law requires notice prior to the 30th day on which the charges accrue.

This bill would significantly slow down the current process for lienholders to be notified about the threat of a mechanic’s lien. TIADA opposed this bill initially.

STATUS: TIADA worked with the stakeholders behind the bill and discovered the motivation was to allow more time for heavy equipment. Afterwards, TIADA worked with members of the legislature to ensure the stakeholders issues were addressed without negatively impacting dealers. This bill was sent to the governor with an amendment that limits the change to vehicles over 16,500 GVWR. HB 3510 (Lambert) This bill would allow em-

ployees of businesses licensed by the Texas Finance Commission, including the OCCC, to have employees work remotely as long as licensees appropriately safeguard data, appropriately monitor employees, and ensure unimpeded regulatory oversight. TIADA supported this bill.

41

STATUS: The legislature recognized dealers and

lenders have shown they are capable of working remote and still ensure the safety of customer data. TIADA worked with lenders and other stakeholders to help this bill through the process. This bill was sent to the

governor for his signature.

HB 3533 (Martinez) This bill raises the surety

bond from $25,000 to $50,000. The bill also requires a dealer to post a notice of the surety bond and the procedure by which a claimant may recover against the bond. TIADA was neutral on this bill. It will result in a minimum cost to independent dealers, will provide more protection for dealers and avoids more significant

changes that were proposed in the past.

STATUS: TIADA worked to remove the post-

ing requirement, but ultimately was unable to do so.

This bill was sent to the governor for his signature.

These bills and numerous others will be discussed at TIADA’s conference along with any changes you need to make to stay compliant. New laws in Texas go into effect September 1, 2021. In the meantime, TIADA will work with different stakeholders including the TxDMV, OCCC, and local TACs to figure out the best practices to implement any laws that were passed.

Time to renew your dealer’s license? visit TexasDealerEducation.com

42

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June 2021

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Houston

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

Abilene ALLIANCE AUTO AUCTION ABILENE

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

$AVE : $200

C.M. COMPANY AUCTIONS, INC. www.cmauctions.com

2258 S. Treadaway, Abilene, TX 79602 325.677.3555, Fax 325.677.2209 GM: Gregory Chittum Thursday, 10:00 a.m. $AVE : $200

IAA ABILENE*

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

ALLIANCE 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

METRO AUTO AUCTION AUSTIN www.metroautoauction.com 8605 Cullen Ln., Austin, TX 78748 512.282.7900, Fax 512.282.8165 GM: Brent Rhodes 3rd Saturday, monthly

$AVE : $200

Corpus Christi CORPUS CHRISTI AUTO AUCTION

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

$AVE : $200

IAA CORPUS CHRISTI*

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 1550 CR 107, Hutto, TX 78634 737.300.6300 GM: Brad Wilson Wednesday, 9:45 a.m.

www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136, Fax 469.828.8225 GM: Chris Dean Wednesday, 1:30 p.m.

AMERICA’S AA AUSTIN / SAN ANTONIO

AMERICA’S AA DALLAS

$AVE : $200

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 44

IAA AUSTIN*

$AVE : $200

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

$AVE : $200

IAA DALLAS*

www.iaai.com 204 Mars Rd., Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 GM: Joshua Boyd Wednesday, 9:00 a.m.

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IAA DFW*

www.iaai.com 4226 East Main St., Grand Prairie, TX 75050 972.522.5000, Fax 972.522.5090 GM: Robert Brown Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

IAA FORT WORTH NORTH*

www.iaai.com 3748 McPherson Dr., Justin, TX 76247 940.648.5541, Fax 940.648.5543 GM: Jack Panczyk Tuesday, 9:00 a.m.

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MANHEIM DALLAS**

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

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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.

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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

El Paso EL PASO INDEPENDENT AUTO AUCTION www.epiaa.com 7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 GM: Luke Pidgeon Wednesday, 10:00 a.m.

$AVE : $200

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 T e x a s

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June 2021

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 NORTH* www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300, Fax 281.443.4433 GM: Aracelia Molina Thursday, 9:00 a.m.

$AVE : up to $200 Sell Fee

Harlingen/McAllen

MANHEIM HOUSTON

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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.

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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.

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 : $200

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Houston

Longview ALLIANCE AUTO AUCTION LONGVIEW

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 Tuesday, 1:00 p.m.

$AVE : $200

AUTONATION AUTO AUCTION - HOUSTON www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 822.905.2622, Fax 281.506.3866 GM: Juan Gallo Friday, 9:30 a.m.

$AVE : $200

HOUSTON AUTO AUCTION

www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566, Fax 713.644.0889 President/GM: Tim Bowers Wednesday, 11:00 a.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

TEXAS LONE STAR AUTO AUCTION** www.lsaalubbock.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 GM: Dale Martin Wednesday, 9:30 a.m

$AVE : $75/Quarterly

Lufkin

Midland Odessa IAA PERMIAN BASIN*

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

ONLINE ACV AUCTIONS**

www.acvauctions.com 800.553.4070

$AVE : $250

E-DEALERDIRECT**

www.e-dealerdirect.com chris@edealerdirect.com

$AVE : Up to $500/month

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

IAA HOUSTON*

LUFKIN DEALERS AUTO AUCTION

ALLIANCE AUTO AUCTION WACO

$AVE : up to $200 Sell Fee

$AVE : $200

$AVE : $200

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.

June 2021

T e x a s

D e a l e r

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.

www.allianceautoauction.com 15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 GM: Christina Thomas Friday, 10:00 a.m.

45

behind the wheel

by Jeff

Martin

Getting Back to Normal Giving Back is Normal

TIADA EXECUTIVE DIRECTOR

L

ike many of you, over the past 14 months I have of you found ways to give back and help your communipondered the question, what is normal? When will ty, but a lot of fundraisers, social events, and charitable we know when we are back to normal or will we opportunities were canceled or put on hold, just like ever really be back to normal? I am happy to report that everything else. last month, I saw a glimmer of normal.

In April, I had an opportunity to participate in such Over the past fifteen years we have used this magazine an event through a special invite from Chacon Autos. and I have used this column to highlight some of the Little Elm Box 620 Support Company was hosting a great work our members golf tournament do in the community. I fundraiser just north am always inspired to of Dallas, the same see how much our dealtournament they had ers give back. I recogto cancel last year, nize it’s not a complete and Chacon Autos selfless act to have your was one of the title logo and name on a sign, sponsors. Box 620 is banner or website prommade up of a group inently displayed in the of volunteers who community you do busiprovide rehydration ness in. However, there and nourishment stadoes seem to be a differtions to firefighters ence in those dealerships and first responders that find their favorite during fires and other charities, clubs, and orprolonged emergency ganizations to support; service situations. they become part of the Pictured from left to right: Ty Farquhar, IT Director Chacon; Jason Certainly, a noble Freeman, Director of Operations Chacon, Chad Lancaster, CFO Chacon; fabric of the community mission and worand interwoven in their Travis Allison, CFO Coast to Coast Auto Group; Jeff Martin, Executive thy organization to Director, TIADA. mission. Either overtly support. or by accident the dealership becomes about more than As I stood around listening to the organizers, particijust selling cars; employees, customers, and local leaders pants, and sponsors, it felt like the Good Ol’ Days. I’d start to brag about “their” dealership. like to think that our dealerships giving back is a clear We have written about back-to-school backpack givesign we are on the right track to getting back to normal. aways, Christmas bazaars, coat and shoe drives, animal Thanks to all our members who find ways to give shelter fundraisers, adopt-a-school programs, county back. We look forward to being inspired as we hear fairs, little league teams and much more. Since March your stories of supporting your communities, just like 2020, most of those stories went silent. I am sure many normal.

46

T e x a s

D e a l e r

June 2021

TEXAS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750

PRSRT STD

U.S. POSTAGE

PA I D

JEFFERSON CITY, MO

PERMIT NO. 210

FEEL THAT TEXAS PRIDE IN AND OUT OF THE LANES Whether you are doing business with us in person or online, your local Texas Manheim team is here for you - finding new ways to continue to bring you the cars you need. Let us help you on the road ahead.

Join us at the TIADA Conference July 25 - 27 at booth #805.

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