Texas Dealer March 2017

2017 ANNUAL CONFERENCE & EXPO KEYNOTE SPEAKER:

ROY SPENCE FOUNDER, GSD&M AND

TEXAS MONTHLY’S, “ADMAN OF THE CENTURY”

In This Issue: – Michael W. Dunagan on Personal Property in Repossessed Vehicles – 2017 TIADA Lobby Day Recap – Market Survey of Car Buyers

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2017 TIADA Board of Directors PRESIDENT Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd.

Dallas, TX 75229 Office: 214.352.9282 / Fax: 214.352.8227 Email: cicoauto@verizon.net PRESIDENT-ELECT Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net CHAIRMAN OF THE BOARD Phil Lathrop/VP Auto Sales Inc. 2921 S. Garland Avenue Garland, TX 75041 Office: 972.864.1300 Email: phillipl@vpautosales.com TREASURER Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net VICE PRESIDENT, WEST TEXAS (REGION 1) Paul Scott/Fiesta Motors – Lubbock 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 Email: pscott@gofiestamotors.com VICE PRESIDENT, FORT WORTH (REGION 2) Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 Office: 817.703.7973 Email: markjones_1@att.net VICE PRESIDENT, DALLAS (REGION 3) Wayne Meagher/M D Auto Sales 2002 W. Main Street Grand Prairie, TX 75050 Office: 972.641.9598 Email: wayne@navchiefs.com VICE PRESIDENT, HOUSTON (REGION 4) Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net VICE PRESIDENT, CENTRAL TEXAS (REGION 5) Robert Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 Office: 512.280.5333 Email: bob@texasautocenter.net VICE PRESIDENT, SOUTH TEXAS (REGION 6) Dan Keetch/Keetch Motors 1010 S. Staples Corpus Christi, TX 78404 Office: 361.882.3541 Email: dankeetch51@yahoo.com VICE PRESIDENT AT LARGE Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: jmsabillon@mitierraautosales.com VICE PRESIDENT AT LARGE Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 Office: 972.780.0001 Email: greg@autoliquidators.net 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

Volume XVII

/ Issue 3

/ M a r c h 2 017

texasDealer

4 Officers’ Message

contents

by Kathrine Tolsch, TIADA President

6 Board of Directors Meeting Minutes 9 Legal Corner: BHPH Compliance: Don’t Overlook Proper Handling of Personal Property in Repossessed Vehicles

by Michael W. Dunagan

12 Upcoming Events 14 Market Survey of Car Buyers

by Somir Paul

18 TIADA Lobby Day at the Capitol

by Michael Spurlin

24 On The Cover: 2017 Annual Conference & Expo Keynote Speaker: Roy Spence, Founder GSD&M and Texas Monthly’s “Adman of the Century” 28 CRM & BDC... Either, Neither, or Both?

by Brent Carmichael

30 Legislative Bulletin 33 Regulation Matters: Conditional Delivery Agreements Revisited

by Amber Hackett Crosby

35 A utomotive Industry Disruption in 2017: Trump, Autonomous Vehicles and Digital Retailing

by Zack Klempf

38 TIADA Scholarship Application 40 2017 VIP Auction Card Directory 43 New Members 43 Local Chapters 45 Behind the Wheel

by Jeff Martin

What’s happening at w w w . t x i a d a . o r g ?

DID YOU KNOW... You can stay up to date on all the potential legislation being

debated at the Capitol that could affect the industry? At the TIADA Legislative Action Center you can find the latest bills we are tracking, information on how to contact your legislators and blog posts on the latest legislative developments.

Simply select Legislative Action Center under Resources at www.txiada.org.

The Editor of the Texas Dealer magazine is Michael Spurlin, Social and Communications Director of TIADA. To change your address for subscription and/or for other TIADA products, call the TIADA state office at 512.244.6060 or fax 512.244.6218. E-mail: info@txiada.org. New Membership/Subscriptions: If you are a member of TIADA, you may receive this magazine free of charge. Membership year runs from Jan 1 to Dec 31. Back issues are available for $20 each subject to availability. Send a check or money order, along with your name and mailing address to TEXAS DEALER, Attn: Back Issues, 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750. Sorry, no billing. 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.

officers’ message

by Kathrine

Tolsch

Another Day at Work…

Volunteering

I

t’s hard to believe I am almost half way through my year as president of TIADA. It has been enlightening and rewarding, but most of all it has confirmed, if not strengthened, everything I believe about associations and the importance of everyone doing their part to protect our industry. Before running for president, I knew it would take some time away from my business.

I had previously served on the board for five years and had gained some insight on the time commitment required to serve as president. I was well aware of the quarterly board meetings, various committee responsibilities and the need to be more present in Austin throughout the legislative session. But in the last six months I’ve had the opportunity to participate in some meetings that made me realize this position is unlike any volunteering I have ever done. Volunteering my time for the association is genuinely investing in my business, and you should find time to volunteer your talents as well.

In early January, along with our Executive Director Jeff Martin, I met with Bob Borochoff in Houston. Mr. Borochoff is a new commissioner recently appointed by the Governor to serve on the Finance Commission.

The Finance Commission is the eleven member governing board that is, among other things, responsible for overseeing the Office of Consumer Credit Commission. A few weeks later we met with another new commissioner, Vince Puente Sr. in Dallas. I didn’t really know what to expect with either meeting but I quickly learned that both men are volunteers serving at the request of the Governor. Both want to do a good job representing the interest of the public and

4

ICO Auto Sales C (Dallas) TIADA PRESIDENT

industries they oversee, including ours (dealers with a motor vehicle seller finance license). Both are businessmen and we easily found conversation in simply talking business; finding capital, government regulation and other rewards and challenges of being a business owner.

I was also invited to attend the Houston IADA chapter meeting, a Fort Worth IADA chapter meeting and then a joint Dallas and Fort Worth IADA meeting. It’s great to see so many familiar faces and I am always inspired witnessing all the great work the chapters are doing to represent their local dealers. Anyone who has ever served as a chapter officer has a special place in my heart. As a past president of the Dallas chapter I know it can be a challenge and sometimes thankless work, but it’s so important to the overall health of our association and ultimately our industry.

Lastly, along with 55 other TIADA members, I participated in Lobby Day. I will not go into detail; there is a full write up on page 18. However, the past six months have been invigorating! I have always had a firm belief in the state association and been resolute that everyone must do their part. But in these last six months, seeing the magnitude and importance of our work has only motivated and inspired me more. I don’t know what time or talent you have, but I know as an entrepreneur you are a doer; you get things done.

Find your place and get involved with the association; whether it’s recruiting new members, serving as an officer in your local chapter, writing a check to INDEPAC, getting to know your local legislators or finding a committee to serve on. Your association needs you!

T e x a s

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March 2017

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board of directors meeting minutes January 30, 2017 | DoubleTree Suites by Hilton, Austin, TX

compiled by Texas Dealer staff

At its meeting on Monday, January 30, 2017, TIADA took the following actions:

Moved by Greg Reine, seconded by Dan Keetch — PASSED

President Kathrine Tolsch called the meeting to order at 11:59am

President’s Report

Minutes Of Last Meeting

Secretary Trey Crouch presented the minutes of the last Board of Directors Meeting.

A motion was made to accept the minutes.

Moved by Robert Beck, seconded by Paul Scott — PASSED Trey Crouch announced his resignation from the board.

Treasurer’s Report

Treasurer Robert Beck presented the Treasurer’s report.

A motion was made to accept the report with correction of date.

President Kathrine Tolsch discussed her visit with Bob Borochoff and Vince Puente of the Texas Finance Commission. She also shared her experience at the HIADA meeting as well as the joint meeting she attended with DCADA and FWIADA.

Executive Director’s Report

Executive Director Jeff Martin presented a legislative update.

Robert Beck presented the FY17 budget.

Executive Session

The board recessed to executive session from 3:10p.m.– 3:59p.m. No actions were taken from executive session.

The board reviewed the Lobby Day procedure.

The board reviewed various association dues model structures and discussed a possible dues increase.

Old Business None

New Business

A motion was made to accept CP Insurance Associates Business Partner Application Moved by Juan Sabillon, seconded by Paul Scott — PASSED A motion was made to accept Manheim’s Business Partner Application Moved by Phil Lathrop, seconded by Greg Zak — PASSED A motion was made to adjourn the meeting.

Moved by Robert Beck, seconded by Juan Sabillon.

Meeting adjourned at 5:53 p.m.

Respectfully submitted, Greg Zak A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.

6

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March 2017

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legal corner

BHPH Compliance: Don’t Overlook

O

Proper Handling of Personal Property in Repossessed Vehicles

ne of the realities of repossessing motor vehicles after a default by the debtor is that vehicles have usually not been cleared of personal effects prior to repossession. The proper handling and disposing of personal property found in repossessed units is an important part of being compliant with the requirements of state statutes, regulations, and the terms of a motor vehicle retail installment contract.

The first rule affecting a debtor’s personal property is that the holder of a security interest in a motor vehicle does not have a lien on the personal property that may be in a vehicle when it is repossessed. Since the creditor doesn’t have a lien on personal property, such property must be returned to the debtor upon demand to avoid unlawful conversion of the personal property. (Sometimes a question arises as to what is personal property, as opposed to something that might be affixed or attached to the motor vehicle. A discussion of that question will be reserved for a later date, as this article refers to things like clothing, tools, toys, and personal effects that are not legally defined as “accessions” to the vehicle.)

Ordinarily, taking the personal property upon which no security interest attaches would be considered a theft of the property. Theft or conversion of someone else’s property is a criminal violation and also gives rise to civil damages. However, the law recognizes that repossessing collateral such as a motor vehicle may entail also

March 2017

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temporarily taking some property that is contained within the collateral, so no penalty is attached to the taking as long as the personal property is immediately returned upon demand.

It is recommended that property that is removed from a vehicle be inventoried and bagged.

Reasonable security measures should be used to protect the property from damage or theft. Any contraband should be reported to police.

Can Personal Property Be Held Pending Return of Keys?

by Michael

Dunagan

W.

TIADA GENERAL COUNSEL

It is recommended that property that is removed from a vehicle be inventoried and bagged. Reasonable security measures should be used to protect the property from damage or theft.

One common question from car creditors is whether personal property can be held until the debtor turns over the keys to the vehicle. Because a debtor’s personal property contained in a vehicle at the time of repossession is not subject to the car creditor’s lien, the property must be returned upon demand by the debtor without placing any conditions or stipulations upon such return. By placing any condition upon the return of the personal property, the creditor risks criminal and civil penalties for converting the property. Examples of conditions that car creditors might be tempted to place upon return of personal property

are: Return of the keys; payment of a storage or management fee; signing a release; or payment of a repossession fee. If the debtor refuses to comply with the condition, and the creditor then refuses to release the personal property, there is the potential that the creditor has converted property. In addition to the criminal and civil penalties associated with conversion, the refusal to return personal property may give rise to actions by the Office of Consumer Credit Commissioner.

Many car creditors request that debtors sign a statement acknowledging that they have picked up their 9

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possessions, which is a good procedure to utilize. In fact, the repossession waiver forms in my book, Texas Automobile Repossession: A Lien Holder’s Legal Guide, contain such an acknowledgement.

I recommend attempting to have debtors sign these forms. However, the refusal of a debtor to sign can’t be used to justify withholding return of personal property. (We’ve seen cases where debtor’s attorneys would claim that the voluntary waiver of repossession notice and agreement to the acceptance of collateral by the creditor, although signed by the debtor, were invalid because the car creditor threatened to withhold personal effects until these were signed).

Many car creditors have found that the reclaiming of personal property is a good time to bring up the possibility of signing a waiver of notice form that includes not only the acknowledgment that personal property has been returned, but also a release from future claims of liability. Just make sure that the form is totally voluntary.

Some repossession agents who store repossessed vehicles for car creditors have begun charging

storage, security, and inventory fees directly to debtors who attempt to pick up their personal effects. It is recommended that car creditors either pay the fees directly or attempt to negotiate waiving those fees to avoid the potential of a conversion action. Since the agent is, in effect, acting on behalf of the creditor, the creditor is primarily responsible for seeing that the rules of repossession are followed.

Here’s another suggestion for car creditors in dealing with debtors who are picking up their things after repossession. We’ve heard a number of instances in which debtors who have been given access to vehicles to claim their property have started the vehicles and driven away. The lien holders have usually found that the police do not consider a debtor driving away with repossessed collateral a crime. Temporarily disabling the repossessed unit during the reclamation process might help avoid such a scenario.

Disposing of Unclaimed Personal Property

At one time, there was no specific provision in Texas law for disposing (cont’d on pg. 12) T e x a s

D e a l e r

March 2017

Legal Corner (cont’d from pg. 10)

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of unclaimed personal property left in a repossessed vehicle. This lack of guidance left many car creditors in a quandary as to when these items could be disposed of, if at all.

The thought of storing property indefinitely evoked visions of large warehouses of unclaimed property.

Fortunately, the Texas Legislature added a section to the Texas Finance Code (it was the Texas Credit Code back then) that offered a structure for giving notice to the debtor of the existence of personal property in a repossessed vehicle, a time frame for holding the property, and permission to dispose of the property if it isn’t timely claimed.

Section 348.407 of the Texas Finance Code requires that a notice be given or sent to the debtor not later than the 15th day after the date the creditor discovers the property. The notice is to inform the debtor that the property can be identified and claimed at a reasonable time before the 31st day after the date the notice is given. It must give the location of the property and state reasonable times during which the property can claimed.

The contents of this notice are included in the post-repossession notice forms in Texas Automobile Repossession: A Lien Holder’s Legal Guide. If the appropriate box is checked on the notice, and the location and hours that the property can be claimed are included, then there is no need to send a separate notice.

If the property is not claimed before the 31st day after the notice is given or sent, the statute provides that the creditor can “dispose of the

property in a reasonable manner and distribute any proceeds of the disposition according to applicable law.” It is presumed that the “applicable law” reference is to the state escheat provisions that govern handling unclaimed property and money through the office of the State Comptroller. It would seem to

Section 348.407 of the Texas Finance Code requires that a notice be given or sent to the debtor not later than the 15th day after the date the creditor discovers the property. be reasonable that property with no value could be thrown out or donated to charity.

Taking possession of collateral upon default is just the first of many steps that need to be taken to complete the repossession process.

Having a compliant procedure in place for handling and disposing of personal property is an important part of that process and shouldn’t be overlooked.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for 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.

T e x a s

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March 2017

feature Market Survey of Car Buyers

by Somir Paul

President, Woodlands Financial Services

T

he following data comes from the Market Survey of Car Buyers conducted annually by Woodlands Financial Services, Inc. From October 3, 2016 to October 31, 2016 350 car buyers were surveyed for the study. Last year’s sample size was 351 customers.

The sample was randomly selected from contracts that were purchased from January 2012 to September 2016. Customers were interviewed in person at the Woodlands Financial payment center or via telephone.

What brought you to the dealer?

50 45 40 35 30 % 25 20 15 10 5 0

46 40 25

21

19 4

9

20

9

3

2

2

2016

2015

TV/Radio Referred by Friend

Magazine/NP Repeat Customer

Dealer Website Driving By

#1 Reason to buy?

42

45

38

40 35 30 %

25

17

20

17

22

20

15 10 5 0

1

6

3

1 2016

Appearance

14

17

16

Location

2015 Financing

Price

Customer Service

Selection/Inventory

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March 2017

When do you plan to buy your next vehicle?

70

60

60 50

36

40 %

27

30 20

19

13

24 12

9

10 0

This Year

Next Year

2016

Future

Undecided

2015

Would you buy new or used?

60 48

50 40

43

36

33

% 30

24

20

16

10 0 2016

2015

New

Used

Undecided

What kind of vehicle?

45 40

40

38

35

30

30 %

30

28

30

25 20 15 10 5

2

2

0 2016

Truck March 2017

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2015

SUV

Car

Van 15

What amount of monthly payment can you make on the next vehicle?

Cash in Full

3

4

$501+

13

5

$401-$500

30

27

31

$301-$400 22

$300 or Less 0

5

10

15

20

38

27 25

30

35

40

%

2016

2015

Do you own or rent your home?

70

66

60

55

50 40 %

39 30

30 20

6

10

4

0 2016

Own

2015

Rent/Lease

Other

Did you research online before shopping for your last vehicle?

80

66

65

70 60 50 % 40

35

34

30 20 10 0

2016

2015

Yes 16

No T e x a s

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March 2017

Do you plan to buy from the same dealer as your last purchase?

80

66

65

70 60 50

35

% 40

34

30 20 10 0

2016

2015

Yes

No

Financial Serv Why would you choose to buy from the last dealer you purchased?Woodlands Dealer Conference 201

70

60

60 50

42

40 %

30

21.5

20

9

10

12.5

8

7

0

8

3

7

*Multiple answers given. Total may exceed 100%. Total response 124.

2016

Repeat Customer Selection/Inventory

11

17

2015

Pricing Customer Service

Financing Other

Important Findings from the Survey Customers who would go back to the same dealer to

buy their next car is at an all-time high of 45%, compared to 35% in 2015 and 40% in 2014.

Critical factors that influenced the buying decision

in order of importance are: Inventory Selection, Customer Service, Pricing and Financing. This year’s results for the first time since our survey started shows Customer Service in second place rather than Pricing.

Driving by, referrals and repeat customers accounted

for 84% of the total buyers at the store, compared to 87% in 2015.

March 2017

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Customers that want to buy a car in the next year

has bounced back to 27% compared to only 19% in the last survey. Customers who will buy their next car in the next 24 months has jumped up to 55% in 2016 compared to 31% in 2015 There is an increase of 3% in customers willing to

make a monthly payment of $400 to $500; compared to $300 to $400. In the $500 plus payment there is an 8% increase in customers compared to last year.

On customer service there has been a dramatic

improvement from a negative score of 32% down to 14%.

17

feature TIADA Lobby Day

by Michael Spurlin

at the Capitol

Texas Dealer Editor

O

n January 31, 2017 a group of over 50 TIADA dealers and associate members descended on the Texas Capitol to advocate for legislation and policies beneficial for the independent auto industry. That represents the highest attendance of any Lobby Day to date.

Their efforts began the night before when TIADA hosted legislators at a reception where dealers could introduce themselves and visit with legislators in a more casual setting.

“That room was packed with legislators and aides who wanted to talk to us about our business,” said TIADA President Elect Greg Zak. “All of the staff that put everything together did a great job.”

The next day the TIADA delegation split up into small groups to attend meetings with legislators from both chambers. In these meetings, the delegation highlighted TIADA’s specific legislative priorities. For an update on these priorities, see page 30.

In meeting after meeting, the TIADA delegation found legislators and their staff receptive to the association’s goals and indicated an openness to working with members of this industry.

18

Scott Allen, Jerry Smith, Dede Smith, Rep Stephanie Klick, Bill Murphy and Wayne Meagher

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March 2017

1) Left to right: John Miller, Jr., Robert Beck, Mark Brown, Speaker of the House Joe Straus, Travis Allison and Sonny Paredez

1

2

3

2) Rep. DeWayne Burns, Karen Wrye, Chris Knox and Jose Gonzalez 3) Wayne Meagher, Scott Allen, Dede Smith, Jerry Smith and Rep. Roberto Alonzo 4) Robert Beck, Mark Brown and Speaker Joe Straus 5) Rep. Ed Thompson, Amber Hackett Crosby, Rep. Toni Rose, Kathrine Tolsch, Rep. Roberto Alonzo, and Rep. Leighton Schubert

4

5 March 2017

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19

2 1 3

5

4

6 20

1) Kirk Lauritsen, Dan Keetch, Rep. Todd Hunter, Lowell Rodgers and Paul Scott 2) Robert Blankenship, Erika Blankenship, Rep. Paul Workman, Kelly Doggett and Brent Rhodes 3) Mark Brown, Sonny Paredez, Robert Beck, Rep. Justin Rodriguez, Travis Allison and John Miller, Jr. 4) Kathrine Tolsch, Rep. Jason Villaba, Rob Michelsen and Phil Lathrop 5) Karen Wrye, Rep. Drew Springer, Jose Gonzalez and Chris Knox 6) Phil Lathrop, Rep. Toni Rose and Rep. Mark Keough

T e x a s

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March 2017

Rep. Justin Holland, Scott Allen, Rep John Frullo, Kathrine Tolsch, Paul Scott and Chris Knox

“From all of the hard work over the years from the TIADA staff and fellow dealers, we now have legislators who are very interested in meeting with us, who care about our industry and who are interested in carrying our legislation,” Zak said. “This just didn’t happen overnight. This has been years in the making, and as dealers we all benefit.”

“In the days following Lobby Day I have been approached by numerous legislators who said they wanted to work with TIADA on our issues,” said TIADA Legislative Consultant Mario Martinez. “The things that our members said in these meetings certainly left an impression on lawmakers.”

Several members of the delegation were first-time attendees, and like their more experienced colleagues, found the day productive and rewarding. David Byrd of Byrd Autos in Crowley, Texas found both meeting with the legislators and other dealers in the industry to be enjoyable.

“It was awesome, getting to do something that I have never done before,” Byrd said. “You have to be quick on your feet when you get questions from the legislators.

The other cool thing about the day was spending time with the other dealers. I got to ask some really direct questions to some of the smartest guys in the business.”

This year TIADA was also fortunate to have support from several proud sponsors who were eager to help the dealers represent TIADA and its interests. Those sponsors included CP Insurance Associates, Manheim, Assured Vehicle Protection, America’s Auto Auction and DealerLane.com. Their efforts helped ensure Lobby Day was such a resounding success.

“Lobby Day is more critical to our industry every time we go,” Bill Murphy of CP Insurance Associates said. “This was my third Lobby Day and what struck me the most was how the actual legislators wanted to meet with us personally, not just their staff people. They wanted to know our concerns and what we thought the possible fix was.”

“It was a very enlightening experience to be at the State Capitol with so many successful and passionate people in the car business,” Travis Allison of America’s March 2017

T e x a s

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Michael Zak, Rep. Ed Thompson, Greg Zak, John Freeman and Jennie Freeman

Auto Auction added. “Jeff and his team did a great job coordinating the Lobby Day. This allowed our group to be extremely efficient navigating the hallowed halls of the Capitol and to get the most out of our scheduled time with our state senators and representatives.”

Even though Lobby Day is now over, TIADA still needs your help. We encourage you to visit the TIADA Legislative Action Center frequently. There you can read blog updates on the latest legislative developments, track key legislation and contact your representatives. Your voice matters and helps the association strengthen the industry.

21

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Dealer Academy On-demand Education Offerings

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

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

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

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.

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TIADA texas independent automobile dealers association

Texas Independent Automobile Dealers Association

feature CRM & BDC... Either, Neither, or Both?

by Brent Carmichael

Executive Conference Moderator, 20 Groups with NCM Associates, Inc.

I

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s a CRM right for you? Maybe a BDC is what you need. Whether they realize it or not, every BHPH dealer has some form of both. Or at least they better if they want to survive.

Let’s start by defining each of these to clear things up a little. Wouldn’t want anyone running out spending money on something they already have and just don’t realize it.

CRM, or customer relationship

you already have, entice former customers to not be former customers, and hopefully to help reduce the cost of marketing and customer service. Sounds a whole lot like a repeat and referral program, doesn’t it? Something every BHPH dealer should already have.

Using some sort of a software package to help manage your CRM is a necessity. That doesn’t mean you need to go out and purchase one

management, by definition is simply a strategy for managing and nurturing a company’s interactions with customers and sales prospects.

Technology is usually involved in the form of a software package that helps organize, automate and synchronize sales related activities as well as marketing and customer service activities. A CRM’s goals are to find, attract, and win new customers, nurture and retain those

specifically for a CRM. The software that you currently use for your day to day BHPH operations should be able to produce reports of customers with low balances and customer paid out reports. All you need to do is make sure you have in place a process for working those low balance customers and customers that have recently paid off in addition to the potential customers given as referrals from current customers

or other sources. It needs to be a simple follow up plan that a manager is responsible for instituting and can be as simple as a call log that the salesperson has to turn in.

As your business grows, it may be necessary to seek professional help, so to speak, and invest in a software package that can better manage these tasks. Hand written logs are fine when you’re talking about 1020 contacts. When that number gets to 100-200, it’s time to get a little more sophisticated.

A truly effective CRM will cover not only sales, but a service center as well. Both need new customer development, current customer retention, and previous customer renewals. And since they are an integral part of customer service, can have an effect on collections both positive and negative. A poorly managed CRM means poor customer service. Poor customer service from the sales or service departments to current customers can make it difficult to collect from them much less resale them. Poor customer service to previous sales or service customers means no return business from them and pretty much insure no referral business.

You know the old adage: A satisfied customer will tell 5 people about their experience. A dissatisfied customer will tell 20. But that’s another article entirely.

BDC, or business development center, is exactly what the name implies: a center to develop business.

This is usually a department within an organization that’s sole purpose is to get prospective customers through your doors. Their goal is to set as many appointments as possible. This is done through calling T e x a s

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the referrals given by customers, internet leads, and from handling incoming calls to the dealership.

And hopefully a fair amount of those appointments will show. Then it’s up to your sales staff to close the deal.

A BDC can be as simple as your current sales staff or more in-depth including BDRs (Business development representatives), TLs (Team leaders), and BDMs (Business development managers). The level of staffing depends on the number of leads you have. And as with a CRM, a BDC can be used for both sales and service. And as with a CRM, can have a positive and negative effect on collections for all the same reasons.

A specific software package is not necessarily a necessity for an effective BDC. As we’ve already discussed, a BDC can be as simple as your current sales staff. A simple process for routing incoming calls and internet leads to a salesperson along with a process for when and how to work referrals is all that is needed. As your lead volume grows so must your ability to effectively manage them. That will be the time to call in the professionals and find a good BDC software to help manage all those leads. As with a poorly managed CRM, a poorly managed BDC can not only cost you sales and service business, but can cause collection issues.

By definition, every BHPH dealer has, or should have, both of these in some form. If they have a process for generating repeat business or have a referral program, they have a CRM. If their salespeople are taking incoming sales calls or working internet leads, they have BDC. I shudder to think there might be a BHPH dealer out there that doesn’t have both of these. The biggest question is are they managing them as such. And by that I mean do they have a process and procedure in place for these, do they have goals and expectations for each, and do they have follow up and March 2017

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accountability in place? The successful dealers, I can assure you, do.

To be truly successful, dealers are going to have to become more efficient at maximizing repeat business and holding onto customers and turning new leads into sales. Both of these can only be accomplished through a CRM and BDC in some form. With the competition for the subprime customer at an all time high, there are fewer customers in the BHPH arena. So, accomplishing the aforementioned has gotten a lot more

difficult. To insure long term survival, dealers are going to have to manage both their CRMs and BDCs. Brent Carmichael is the Executive Conference Moderator, 20 Groups with NCM Associates, Inc. On April 3, 2017 he will be hosting the TIADA seminar Collect the Cash, Not the Car in Houston Texas.

Carmichael will focus on helping dealers and their collection team maximize their collection opportunities. To register, go to www.txiada.org and select the Education link under Resources.

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legislative bulletin

by Jeff

Martin

A Few Bills We Are Working On Thus Far: HB 915 Thompson, Ed HB 1030 Muñoz, Jr. SB 923 Perry

HB 1247 Pickett This bill would allow motor vehicle storage facilities to notify lienholders using electronic notification.

These are companion (identical) bills that would allow named driver only insurance policies if the following characteristics are present: (1) i t is also an operator’s policy; (2) a ny “named driver exclusion” specifically names each driver that is not covered under the policy; (3) it does not exclude an entire class of people; and (4) The named insured accepts any and all exclusions in writing.

TIADA supports these bills.

HB 849 Murr This bill would require insurers to notify a lienholder of a policy cancellation no later than 10 days before the effective date of the cancellation.

TIADA supports this bill.

TIADA is monitoring this bill.

HB 2067 Oliveira This bill would eliminate the annual registration for a related finance company and repeal the comptroller’s authorization to charge a fee.

TIADA supports this bill.

Those of you who have followed this process in the past know that the print version of “legislative updates” tends to become outdated before the ink is even dry on the page. Please be aware that your best source for up-to-the-minute information is the TIADA website under Resources/Legislative Action Center. As always, we welcome the input of our members regarding legislative matters. TIADA’s legislative team will work diligently to keep you abreast of the issues and call on you to act when needed.

As always, we welcome the input of our members regarding legislative matters.

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Presented by Brent Carmichael, Executive Conference Moderator, 20 Groups. NCM Associates, Inc. This has been a challenging year in the Buy Here, Pay Here industry, aided by another odd tax season and increased apathy by our customers in regards to their payments. Dealers are finding that every collection opportunity needs to be capitalized on and that’s where this seminar can help.

Collect The Cash, Not The Car is designed to help you and your collection teams maximize your collection opportunities.

Through this 1-day course you can expect to learn: • How to maximize the collectability of every customer • How to overcome the common and not so common customer objections • Effective skip tracing methods and tools • Effective phone collection techniques

9:30am - 4:00pm $249 TIADA/HIADA Members, $199 Add’l Members $499 Non-members

We have put together a very strong course outline that includes a wide array of role playing, classroom learning and interactive activities that will allow your collection team to soak up the information and come back to your dealership ready to collect the cash and not the car.

Monday, April 3, 2017 Houston, Texas Sponsored by:

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TIADA members, register online at www.txiada.org or call 512.244.6060.

HIADA members, obtain registration form at www.houstoniada.com or call 832.604.4355.

Texas Independent Automobile Dealers Association

regulation matters Conditional Delivery Agreements Revisited

B

ack in 2014, we ran an article about conditional delivery agreements (alternatively referred to as CDAs).

CDAs continue to be a blessing and a curse, so revisiting the subject is a good idea. Let’s have a look at what a conditional delivery agreement is and how it works.

What is a Conditional Delivery Agreement?

A CDA is defined as a contract between a retail seller and prospective retail buyer under the terms of which the retail seller allows the prospective retail buyer the use and benefit of a motor vehicle for a specified term.

Th e agreement may not exceed 15 days and is void upon the execution of a retail installment contract between buyer and seller.

Th e value of the buyer’s trade-in must be agreed to and stated in the agreement.

S eller must use reasonable care to preserve the buyer’s trade-in and must, within 30 days of voiding the CDA, return the trade-in to the buyer. The trade-in must be in a substantially similar condition as when the agreement was signed. If the trade-in can’t be returned, seller must pay buyer the value of the trade-in as stated in the agreement.

The Texas Finance Code, §348.1015, prohibits a retail installment contract from being conditioned on the subsequent assignment of the contract to a finance company.

Therefore, CDAs are used to protect a dealer from holding a note that cannot be assigned to a finance company.

How Does It Work?

A CDA is used in situations where the dealer is helping a customer secure financing through a third party.

Typically, a dealer looks for a bank, credit union or finance company willing to “buy” the deal based on the desired vehicle and the customer’s credit information.

If a retail sale is made, it is the dealer who will actually enter into a retail installment contract with the customer.

The dealer will then immediately assign the contract to the finance company that agreed to buy the deal.

In the event that all proceeds as expected — that is, the contract is successfully assigned to the finance company that holds it — there is no issue. However, if the finance company decides not to buy the deal after all, then the

March 2017

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by Amber

Hackett Crosby

TIADA DIRECTOR OF DEALER COMPLIANCE AND EDUCATION

If you as a dealer enter a retail installment contract and are unable to assign it, for whatever reason, you are now in the financing business (at least on that deal). dealer is responsible for financing the deal under whatever terms the customer contracted for.

This is worth reiterating: If you as a dealer enter a retail installment contract and are unable to assign it, for whatever reason, you are now in the financing business (at least on that deal).

One way to avoid this situation is to use a conditional delivery agreement in addition to the retail installment contract. CDAs definitely have pros and cons.

PRO: Your customer may take delivery of her new vehicle immediately. If the financing falls through, you are not left on the hook to finance the vehicle yourself.

CON: You do not have a sale. If the customer decides she doesn’t want the vehicle for any reason during the CDA period before a contract is signed, she can return the vehicle to you and you must return her down payment.

Third party finance carries inherent risk for a dealer, particularly in the subprime space. Dealers in this line of business may want to consider using conditional delivery agreements in those situations where the vehicle will be delivered before financing is finalized.

Adapted from the December, 2014, Regulation Matters article written by Danny Langfield.

33

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Automotive Industry Disruption in 2017: Trump, Autonomous Vehicles and Digital Retailing

resident Trump, autonomous vehicles and digital retailing will be in the driver’s seat for automotive disruption in 2017. The old guards of the industry continue to be challenged by new start-ups with totally bleeding edge business models. Merger and Acquisition activity in the auto space has been white hot, according to Frazer McCombs Auto Ventures Summit. In the past two years, there have been 47 major equity transactions and investments worth $37M in automotive retail.

Consumers have spoken! Hear them loud and clear!

They want a more effortless and transparent car buying process. Consumers’ frustration with the traditional purchasing model has spurred new players in the industry like Vroom and Carvana.

Even President Trump has jumped into the automotive fray with calling for OEMs like Ford and Toyota to move production back to America, and subtly implying that high tariffs may be an option on foreign automakers producing cars outside the US. One more potential nail in the historical business model’s coffin may be the impact autonomous technology will have on legislation, infrastructure and even more innovative utility transportation options.

Uber, Waymo, & Self driving cars

Autonomous vehicle technology has become the belle of the ball for major corporations. A recent CB Insights report showed that over 33 corporations including Apple, Baidu, Intel, and Microsoft are investing heavily in driverless vehicle research and technology.

Google was early on the autonomous vehicle wagon and has built a more defined business that it has spun off to its own entity dubbed Waymo. Waymo has been recently rumored to be in discussions with Honda to help develop their autonomous technology.

Never one to stand by and watch, Uber is another large company involved in autonomous technology. Last year it was practically unavoidable to spot Uber’s self-driving car being tested by engineers when I was out and about in downtown San Francisco. Recently though, they have moved their autonomous vehicle testing to Arizona and while I don’t see them testing in SF, they have been visible among significant technology acquisitions in autonomous technology including a $686M acquisition of selfdriving startup Otto.

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FeaturedPresenter

by Zack Klempf CEO & Founder, Selly Automotive

Andreessen Horowitz partner Frank Chen has outlined a five level evolution scale to complete driving autonomy and posed the question on whether autonomous development will be adopted level-by-level or skip levels to complete autonomy. This will be interesting to watch as that progression will be heavily dependent on advancements in R&D over the next five years, and on how comfortable the National Transportation Safety Board and state legislatures are with safety.

M&A – Ford and General Motors

The traditional OEMs are making sure they are not being left at the automotive disruption dance by making major investments and acquisitions outside of their traditional business focus. 2016 was a busy year for General Motors as they acquired autonomous software company Cruise Automation to quicken deployment of their self-driving car technology, launched car-sharing company Maven, and also invested $500 million into ride-hailing company Lyft.

Ford invested in Chariot, which is a crowd sourced commuter shuttle service operating in major metropolitan areas like San Francisco. The majority of OEM’s have also started to build a presence in the San Francisco Bay area whether its venture arms like BMW i-Ventures or Ford’s Palo Alto based research and innovation center.

BMW i-Ventures plans to quintuple the size of its fund to $530 million and has already invested in companies like Zendrive and Moovit in its portfolio. I think that it’s safe to predict even more M&A activity in the auto space and exciting strategic investments on the OEM side.

Automotive E-commerce and Online Marketplaces

Last year was a banner year for automotive e-commerce and marketplace companies like Carvana and Vroom.

Together they took the spotlight in 2016 for online retail.

Vroom hit over a billion dollars in retail sales and acquired the largest eBay motors online retailer, Texas Direct Auto, in December 2015. Carvana has become a well-known auto ecommerce company with its extensive marketing across 21 markets and ‘viral’ car vending machines. All of the publicity and awareness likely helped Carvana secure $600 million in retail contract financing over the next 12 months from Ally financial. This will allow Carvana to continue to execute and grow its origination volume.

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But it hasn’t been all success this year for every automotive ecommerce darling. Beepi was a casualty of 2016 after raising $150 million. It let go of 180 employees and merged with former TrueCar Founder’s new start up, Fair. This stealth startup is tackling flexible leasing and is targeting millennial consumers with budget based fractional leasing.

Trump Administration and US Auto Manufacturing

The Trump administration may have major impacts on the automotive industry, especially for the end consumer if high tariffs are governed on vehicles manufactured outside the United States. Last year, 43% of vehicle sold in the United States were manufactured in other countries including Mexico and Germany. Trump has already forced a change of strategy with Ford, which was initially planning on building a large $1.6B manufacturing facility in San Luis Potosi, Mexico and employing over 3,000 local workers. In light of Trump’s pressure, Ford has shifted gears to making a $700M investment into a Michigan factory instead. OEM’s like Toyota have also followed suit with a $10 billion commitment to the US over the next five years.

One of Trumps most notable OEM targets is German manufacturer BMW. Trump threatened BMW specifically and was quoted in a German newspaper saying, “I would tell BMW that if you are building a factory in Mexico and

plan to sell cars to the USA, without a 35 percent tax, then you can forget that,” which reinforces his initiative to bring back auto manufacturing jobs to the United States.

As a consequence, this would have a major impact on foreign manufactured component parts of vehicles thus increasing the average vehicle MSRP (Manufacturer Suggested Retail Price) for the American consumer.

Mexico has over 400 part producing plants and according to US data, $50.5 billion in vehicles and $51 billion in auto parts were shipped to the U.S. from Mexico in 2015.

Even Trump’s cabinet will be influencers on the industry with his nominee Elaine Chao as the next Secretary of Transportation. Chao is a proponent for autonomous technology, and her direction on regulation in the space is a “must see” upcoming event.

Traditional Brick and Mortar Dealerships and Tech Savvy Consumers

Traditional brick and mortar dealerships have continued to make business model adjustments over the past couple years with all of the flux within the auto industry.

E-commerce companies like Carvana have put pressure on traditional brick and mortar dealerships to improve or implement digital retailing into their business. No haggle pricing has also come into play as a major driver for consumer transparency.

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Lexus is even testing a “No-Haggle Pricing” program with select dealerships and seeing success. General Motor’s Cadillac unit recently announced its BOOK service aimed at Gen X and Y consumers. The new hybrid service will charge the consumer $1,500 per month and will not lock them into financing or leasing a vehicle. The consumer can also change vehicles up to 18 times a year from a variety of Cadillac models. This is an interesting move for a company more historically associated with grandparents instead of their tech savvy grand kids!

Even in the face of relentless new competitive business models invading their turf, 2016 was one of the best years for dealership auto and light trucks sales totaling 17.55 million units and surpassing the previous year of 17.47 million units. No matter where a consumer purchases a vehicle, they usually return to their local dealership for service, and traditional brick and mortar dealerships excel at capturing new service customers and developing loyalty even with missed opportunities on the pre-owned sales side.

Companies like TrueCar are also assisting dealerships in interfacing with consumers’ online with their new Chase partnership. This allows for a consumer to apply for financing through Chase online and seamlessly receive a haggle-free certified price from a TrueCar dealer so when the consumer arrives at the showroom all they need to do is sign and drive.

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Moreover, Walmart has announced a pilot program with Car Saver to enter the automotive marketplace.

CarSaver’s platform allows buyers to finance and insure a vehicle via its website or on a touch-screen kiosk. Car Saver has partnered with AutoNation and they plan to roll out the Walmart Pilot on April 1st in Houston, Dallas, Phoenix and Oklahoma City.

What’s in store for 2017 and beyond?

Change and more of it coming at you faster than ever is on the automotive industry’s 2017 forecast. As General Motors CEO, Mary Bara, said at the 2016 Consumer Electronics show in Las Vegas recently, “I have no doubt that the automotive industry will change more in the next five to 10 years than it has in the last 50.”

How can it not when George Jetson concepts like autonomous driving and connected vehicles are here already and rapidly moving out of the testing phases and into our digital reality? Stay tuned and let’s see just what 2017 brings for the automotive industry!

Zack Klempf is the Founder and CEO of Selly Automotive. He will be presenting at the 2017 TIADA Annual Conference & Expo taking place from July 23 through July 25 at the Hyatt Regency Hill Country Resort and Spa in San Antonio.

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ATTENTION STUDENTS!!!

$1,000 TIADA SCHOLARSHIP DEADLINE

May 5, 2017 {Applications and/or any required documents received after May 5, 2017 will NOT be accepted.} Criteria and Guidelines 1. Each applicant must be entering or currently enrolled in an accredited college or a trade school. Proof of enrollment must be included with this application.

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

3. Each applicant must complete the application form.

SCHOLARSHIP APPLICATION Date: Name:

DOB:

Address: City:

State:

Zip:

State:

Zip:

Email: Telephone Number: High School Last Attended: Address: City: Dates of Attendance: Date of Graduation: Other High Schools Attended (Names and Addresses):

4. High school senior applicants must be in the top 25% of class.

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

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

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

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

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

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

State:

Zip:

Sponsor Signature Should you have any questions, please contact TIADA at 512.244.6060.

Please return the completed application with all required documents to: TIADA Attention: Scholarship Applications 9951 Anderson Mill Rd., Suite 101 / Austin, TX / 78750

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March 2017

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2017 TIADA VIP Auction Card Directory

Manheim ADESA Dallas Austin Manheim ADESA DFW Dallas Manheim ADESA El Paso Houston Manheim ADESA Houston San Antonio Manheim San Antonio AA Abilene Alliance Manheim Texas Hobby AA Dallas Alliance Alliance

im ManheHousto n ew South

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Alliance

AA Waco

Metro AA Dallas

AA San Corpus AA Christi Antonio a’s a Americ Americ AA Austin/ antonio Can! Cars for Kidsn San Arlingto a’s Big Americ Dallas Valley AA AA Donna a’s Americ CM AA ny Houston Compa s Auction a’s Americ El Paso AA North n ndent Indepe AA Housto of Texas n AA Heart AA Waco

Housto

Metro AA Texas Lone Star AA Austin Carrollton Lufkin s Dealer r Tyler AA AA

Greate

Rockwall Auto Auction Insurance s Insurances Auto Auction Christi* Corpus Auto Auction Austin* Insurance s Insurances Auto Auction Auto Auction DFW* Dallas* Insurance s Insurances Auto Auction Houston* Auto Auction El Paso* Insurance s Insurances Auto Auction Longview* Auto Auction North* Houston Insurance s Insurances Auto Auction n* Auto Auctionk* McAlle Lubboc Insurance s Insurances Auto Auction* San Antonio Auto Auction Basin* Permian locations *valid for

ABILENE

ce AA

at Insuran

IAA*

Manheim Dallas

6657 US Highway 80 West, Abilene, TX 79605 325.698.4391, Fax 325.691.0263 General Manager: Jimmy Compton Friday, 10:00 a.m.

4701 Agnes Street Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880 General Manager: Adriana Serrano Wednesday, 9:00 a.m.

5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800, Fax 214.339.6347 General Manager: Rich Curtis Wednesday, 9:00 a.m.

C.M. Company Auctions, Inc.

DALLAS / FT.WORTH METROPLEX

2258 S. Treadaway, Abilene, TX 79602 325.677.3555, Fax 325.677.2209 General Manager: Gregory Chittum Thursday, 10:00 a.m.

ADESA Dallas

12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000, Fax 817.399.4251 General Manager: Nicole Graham-Ponce Thursday, 9:30 a.m.

Alliance Auto Auction Abilene www.allianceautoauction.com

www.cmauctions.com

AUSTIN ADESA Austin

www.adesa.com

2108 Ferguson Ln., Austin, TX 78754 512.873.4000, Fax 512.873.4022 General Manager: Steve Swanson Tuesday, 9:00 a.m.

America’s AA Austin / San Antonio www.americasautoauction.com

16611 S. IH-35, Buda, TX 78610 512.268.6600, Fax 512.295.6666 General Manager: John Swofford Tuesday, 1:30 p.m. / Thursday, 2:00 p.m.

IAA*

www.iaai.com

2191 Highway 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 General Manager: Geoffrey Rabb Tuesday, 9:00 a.m.

Metro Austin Auto Auction www.metroautoauction.com

8605 Cullen Ln., Austin, TX 78748 512.282.7900, Fax 512.282.8165 General Manager: Brent Rhodes 3rd Saturday, monthly

CORPUS CHRISTI Corpus Christi Auto Auction

(formerly known as Sparkling City AA Corpus Christi) www.CorpusChristiAutoAuction.com

2149 IH69 Access Rd., Robstown, TX 78380 361.767.4100, Fax 361.767.9840 General Manager: Wade Walker Friday, 9:30 a.m.

* VIP card accepted for sell fees only 40

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www.iaai.com

www.adesa.com

3501 Lancaster-Hutchins Rd. Hutchins, TX 75141 972.225.6000, Fax 972.284.4799 General Manager: Brad Garrett Thursday, 9:30 a.m.

Alliance Auto Auction Dallas www.allianceautoauction.com

9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136, Fax 469.828.8225 General Manager: Christopher Dean Wednesday, 1:30 p.m.

America Can! Cars for Kids www.carsforkids.org

7100 Marvin D Love Frwy Dallas, TX 75237 972.274.5437, Fax 214.944.1950 General Manager: Jennifer Kitchens Saturday, 9:00 a.m.

America’s AA Dallas

www.americasautoauction.com

219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972.591.2742 General Manager: Robert Hammonds Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.

IAA*

www.iaai.com

4226 East Main St., Grand Prairie, TX 75050 972.522.5000, Fax 972.522.5090 General Manager: Jennifer Wesner Tuesday, 9:00 a.m.

IAA*

www.manheim.com

Manheim Dallas Fort Worth www.manheim.com

Metro Dallas Auto Auction New! www.metroaa.com

1836 Midway Rd., Lewisville, TX 75056 943.492.0900, Fax 972.492.0944 General Manager: Scott Stalder Tuesday, 9:00 a.m.

Rockwall Auto Auction

www.rockwallautoauction.com

1810 I-30 Frontage Rd., Rockwall, TX 75087 972.771.9919, Fax 972.722.4827 General Manager: Frank Post Tuesday, 7:00 p.m.

Texas Lone Star Auto Auction www.tlsaa.com

2205 Country Club Dr., Carrollton, TX 75006 214.483.3597, Fax 214.483.3814 General Manager: Jeff Dunning Tuesday, 1:00 p.m. / Thursday, 2:00 p.m.

EL PASO El Paso Independent Auto Auction www.epiaa.com

7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 General Manager: Luke Pidgeon Wednesday, 9:30 AM In-op Video Sale / 10:00 AM Standard Sale.

IAA*

www.iaai.com

14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489, Fax 915.852.2235 General Manager: Jorge Resendez Friday, 10:30 a.m.

www.iaai.com

Manheim El Paso

204 Mars Road, Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 General Manager: Henry Valenzuela Wednesday, 9:00 a.m.

485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645 General Manager: Brian Walker Thursday, 10:00 a.m.

www.manheim.com

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IAA*

MIDLAND / ODESSA

2535 West. Mt. Houston, Houston, TX 77038 281.847.4700, Fax 281.847.4799 General Manager: Michelle Casper Wednesday, 9:00 a.m.

IAA*

www.iaai.com

Manheim Houston www.manheim.com

HARLINGEN / MCALLEN Big Valley Auto Auction www.bigvalleyaa.com

4315 N. Hutto Road, Donna, TX 78537 956.461.9000, Fax 956.461.9005 General Manager: Lisa Franz Thursday, 9:00 a.m.

IAA*

www.iaai.com

900 N. Hutto Road, Donna, TX 78537 956.464.8393, Fax 956.464.8510 General Manager: Ydalia Sandoval Tuesday, 9:00 a.m.

HOUSTON

14450 West Road, Houston, TX 77041 281.924.5833, Fax 281.890.7953 General Manager: Eddie Pope Tuesday, 9:00 a.m. / Thursday 6:30 p.m.

Manheim South Houston New! www.manheim.com

9605 Galveston Rd., Houston, TX 77034 713.948.0001, Fax 713.948.0300 General Manager: Darren Slack Tuesday, 6:00 p.m.

Manheim Texas Hobby www.manheim.com

8215 Kopman Road, Houston, TX 77061 713.649.8233, Fax 713.640.6330 General Manager: Darren Slack Thursday, 9:00 a.m.

ADESA Houston

LONGVIEW

4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030 General Manager: Mark Lindenmuth Wednesday, 9:00 a.m.

Alliance Auto Auction Longview

www.adesa.com

America’s AA Houston

www.americasautoauction.com

1826 Almeda Genoa Rd. Houston, TX 77047 281.819.3600, Fax: 281.819.3601 General Manager: Rob Frazier Thursday, 2:00 p.m.

America’s AA North Houston www.americasautoauction.com

1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842 General Manager: Buddy Cheney Monday, 6:30 p.m.

Houston Auto Auction

www.houstonautoauction.com

www.allianceautoauction.com

6000 East Loop 281, Longview, TX 75602 903.212.2955, Fax 903.212.2556 General Manager: Jeff Loftin Friday, 10:00 a.m.

IAA*

www.iaai.com

5577 Highway 80 East Longview, TX 75605 903.553.9248, Fax 903.553.0210 General Manager: Robert Dunning Thursday, 9:00 a.m.

www.iaai.com

701 W. 81st Street Odessa, TX 79764 432.550.7277, Fax 432.366.8725 General Manager: Barbara Hallmark Thursday, 11:00 a.m.

SAN ANTONIO ADESA San Antonio www.adesa.com

200 S. Callaghan Rd. San Antonio, TX 78227 210.434.4999, Fax 210.431.0645 General Manager: Clifton Sprenger Thursday, 9:00 a.m.

IAA*

www.iaai.com

11275 S. Zarzamora San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 General Manager: Brian Sell Monday, 9:00 a.m.

Manheim San Antonio www.manheim.com

2042 Ackerman Road San Antonio, TX 78219 210.661.4200, Fax 210.662.3113 General Manager: Mike Browning Wednesday, 9:00 a.m.

San Antonio Auto Auction

(formerly known as Sparkling City AA San Antonio) www.SanAntonioAutoAuction.com

13510 Toepperwein Rd San Antonio, TX 78233 210.298.5477, Fax 210.298.5484 General Manager: Brandon Walston Tuesday, 9:30 a.m.; Thursday, 1:30 p.m.

TYLER Greater Tyler Auto Auction www.greatertyleraa.com

LUBBOCK

11654 Hwy. 64 W, Tyler, TX 75704 903.597.2800, Fax 903.597.3848 General Manager: Wayne Cook Tuesday, 5:00 p.m.

IAA*

WACO

www.iaai.com

5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 General Manager: Lori Davee Tuesday, 9:30 a.m.

Alliance Auto Auction Waco www.allianceautoauction.com

LUFKIN

15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 General Manager: James Barron Friday, 10:00 a.m.

IAA*

Lufkin Dealers Auto Auction New!

Heart of Texas Auto Auction

16602 East Hardy Rd., Houston, TX 77032 281.443.1300, Fax 281.443.4433 General Manager: Louis Cappi Thursday, 9:00 a.m.

2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299, Fax 936.632.4218 General Manager: Wayne Cook Thursday, 6:00 p.m.

2508 Old Marlin Hwy. 6 Waco, TX 76705 254.755.7713, Fax 254.755.7746 General Manager: Allan Wichkoski Thursday, 7:00 p.m.

6767 North Freeway, Houston, TX 77076 713.644.5566, Fax 713.644.0889 President: Tim Bowers Tuesday, 1:00 p.m.

www.lufkindealers.com

www.iaai.com

March 2017

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www.heartoftexasautoauction.com

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BUY ONLINE AT www.americasautoauction.com

Harrisburg Lancaster

Chicago Detroit Toledo

Pittsburgh Virginia Beach

St Louis Bowling Green

Tulsa

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Atlanta

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

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

Houston, TX Jacksonville, FL Lancaster, PA North Houston, TX Pensacola, FL

Austin

LOCATIONS IN TEXAS Dallas

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

Pittsburgh, PA St Louis, MO Tulsa, OK Virginia Beach, VA

TUESDAYS & THURSDAYS AT 1PM

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

THURSDAYS AT 1:30PM

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

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

North Houston

MONDAYS AT 6:30PM

1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

Please Welcome Our Newest TIADA Members DEALER MEMBERS Derby Motors Corporation Hugo Zamora 1292 Costa Del Sol Brownsville, TX 78520 JC Motors James Crews 2508 Patricia Lane Whitesboro, TX 76273 Tomball Car Connect Matthew Brewster 15821 FM 529, Ste. 293 Houston, TX 77095 US Auto Group Inc. Michael Demian 810 College Ave South Houston, TX 77587 WBG Auto Sales Sky Chung 13541 Jefferson St. Westminster, CA 92683

West Auto Sales Enrique Perez 5401 S. Congress Avenue Austin, TX 78745 ASSOCIATE MEMBERS CarGurus Nicole Bachand 2 Canal Park, 4th Floor Cambridge, MA 02141 D&G Quality Roofing, Inc. Christa Weatherby 4305 FM 1187, Suite 100 Burleson, TX 76028 Profit Concepts Management Inc Michael Hall 441 Santaluz Ln Astin, TX 78732

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, Legal Consultation Service and much more. Register for all upcoming TIADA events online at the Calendar of Events; access our online membership application; find contact information for all our Local Chapters, and find many additional resources at our Knowledge Base.

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov Office of Consumer Credit Commissioner 800.538.1579 www.occc.state.tx.us March 2017

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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

Local Chapters VICTORIA Butch Hartman Hartman’s Auto Sales 361.575.1009 hartmanautosales@gmail.com Meeting – 1st Monday (Monthly) FORT WORTH Mark Jones MCMC 817.703.7973 mjones@mcmcauto.com Meeting – 4th Thursday of Jan–May and Sep–Oct DALLAS COUNTY Eddie Hale Neighborhood Autos 940.539.2272 ehale@neighborhoodautos.com Meetings as needed/TBD HOUSTON Rick Maroney Maroney Auto Sales 713.691.3800 rmaroney@usa.net Meeting – 2nd Tuesday (Monthly) SAN ANTONIO Robert Beck Stop N’ Drive Motors 210.432.1101 stopdrive@texas.net Meetings quarterly (dates announced at www.txiada.org) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 43

NEED CARS?

We've got thousands to choose from.

TEXASDIRECTAUTO.COM

behind the wheel Insert Motivational Phrase Here

by Jeff

Martin

TIADA EXECUTIVE DIRECTOR

A

bout eight years ago, we started looking for a way to do something outside the office as a group. Call it staff teambuilding, team bonding or whatever. We weren’t big enough for a company softball team so we opted to close the office for about half a day once a quarter and go volunteer somewhere. It’s a pretty loose

program but it works like this. Each quarter, one person on staff takes on the responsibility of finding a place for the team to volunteer. The staff member sets everything up and organizes our team.

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No one is ever required to participate, but over the years we have moved appliances for the Habitat for Humanity, fixed lunch for families at the Ronald McDonald House, walked dogs at the animal shelter, sorted food at the food pantry, scanned documents for Catholic Charities, made deliveries for Meals on Wheels and much more. We have always been inspired by you, the dealer, who gives so much to their community, and we thought we would share some of the photos of our staff volunteering.

It’s humbling and it’s motivational. It makes us better employees because it makes us better people. I understand next quarter we are cleaning horse stalls at a place called Open My World, a horse riding park for those with special needs.

I can’t wait!

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www.teiinsurance.com 46

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March 2017

NOT ALL PROGRAMS ARE CREATED EQUAL Debt Cancellation Coverage Voluntary Debt Cancellation Coverage (DCC) is an alternative to requiring Comprehensive and Collision Insurance.

Benefits NEW PROFIT CENTER REDUCES EXPENSES

DCC provides debt forgiveness in the event of a Total Loss and is offered at the point of sale.

COLLATERAL PROTECTED

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INCREASED CSI FINANCED WITH CONTRACT FORMS REVIEWED BY OCCC

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913.396.5480

*Substantial Discounts for TIADA Members

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

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