Texas Dealer March 2019 by Texas Independent Auto Dealers Association

TIADA: Your

Voice at the Texas Capitol

In This Issue: – Michael W. Dunagan on Taxes on GPS Devices – Leadership, Management & Coaching – Inventory Acquisition – Back to Basics – Is Facebook Marketplace Right for You?

2019 TIADA Board of Directors PRESIDENT Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: jmsabillón@mitierraautosales.com PRESIDENT ELECT Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net CHAIRMAN OF THE BOARD Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: greg@dixonmotorcars.com SECRETARY Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 Office: 817.703.7973 Email: mjones@mcmcauto.com TREASURER Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net VICE PRESIDENT, WEST TEXAS (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 Email: bkalivoda@gofiestamotors.com VICE PRESIDENT, FORT WORTH (REGION 2) Eddie Hale/Neighborhood Autos 1717 US 287 Decatur, TX 76234 Office: 940.539.2272 Email: ehale@neighborhoodautos.com VICE PRESIDENT, DALLAS (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 Office: 972.780.0001 Email: greg@autoliquidators.net VICE PRESIDENT, HOUSTON (REGION 4) Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 Office: 281.354.3355 Email: aokautosales@embarqmail.com VICE PRESIDENT, CENTRAL TEXAS (REGION 5) Robert Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 Office: 512.280.5333 Email: bob@texasautocenter.net VICE PRESIDENT, SOUTH TEXAS (REGION 6) Armando Villarreal/McAllen Auto Sales 4215 S. 23rd Street McAllen, TX 78503 Office: 956.668.8088 Email: armando@mcallenautosales.net VICE PRESIDENT AT LARGE Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 Office: 512.828.0001 Email: greg@risingfastmotorcars.com VICE PRESIDENT AT LARGE Jose Engler/Irving Motor Corp 211 Braniff Dr. San Antonio, TX 78216 Office: 210.385.2568 Email: pepeton2002@hotmail.com TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am - 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org

Volume XIX

/ I s s u e 3 / M a r c h 2 019

TexasDealer contents

4 Officers’ Message

by Juan Sabillón, TIADA President

8 On The Cover — TIADA: Your Voice at the Texas Capitol by Texas Dealer staff

15 Legal Corner: Answering Dealer Questions About Sales Tax On GPS Units and Air-Time Fees by Michael W. Dunagan

16 Upcoming Events 19 Is Facebook Marketplace Right For Me? by Mark Garland

23 TIADA Scholarship Application 24 TIADA Conference and Expo 31 TIADA Member Application 32 TIADA Auction Directory 2019 35 Inventory Acquisition – Back to Basics by Brent Carmichael

39 Leadership, Management & Coaching by Jay Rose

45 New Members 45 Local Chapters 46 Behind the Wheel by Jeff Martin

2019 Conference Registration Now Open! You can register to attend the 2019 TIADA Conference & Expo! Turn to page 24 for information or register online at 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: Michael Spurlin

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

officers’ message by Juan

Sabillón

Dealerships Don’t Sell Cars, People Do

often hear may auto dealers claim that, “my dealership sells 100 cars a month.” While that may be technically accurate, the real statement should be, “our salespeople sell 100 cars a month.” Dealerships don’t sell cars. Dealerships create the opportunities for their salespeople to sell cars. Owners spend increasing amounts of money every year in operational costs, acquisitions, insurance and advertising just to create a potential opportunity for their sales team to present, demonstrate, and close the sale of vehicle to a customer. The problem facing many dealers is that too often they are spending large amounts of money on their advertising to drive customer traffic to their dealership yet spend very little money in preparing and training their salespeople for that opportunity to close the sale when the customer shows up on the lot (or contacts you via your website, Facebook or phone). Too many owners and managers justify why they are missing sales targets and gross every day, but they don’t examine the core problems. Too often, they will just double up on advertising and marketing in an attempt to improve sales and profit. Training our sales team to realize and identify the opportunities that are already in front of them is becoming more and more important. Could your sales staff improve closings with more effective training? Could they sell more cars with the floor traffic that you already have? Could they improve 10% to 20% in such a way

Mi Tierra Auto Sales (Houston) TIADA PRESIDENT

that could create a lower overall cost per sale? Recover more “missed” sales back in by following up with the customer. Try to bring that customer who has visited you before back to the dealership. There is no new or additional expense to find that lead because you already paid money for advertisements that brought him or her to the dealership in the first place. Do you have a dealer program to contact previous or repeat customers? These are all low cost or no cost ideas. Repeat customers are usually better than walk-in traffic. There is no extra expense for the dealership when a salesperson sells value instead of price. When that happens, you can raise the gross with no new expenses and drive better leads through referrals to friends and family. Dealers could try to turn more of their incoming calls and leads into appointments with better training. Don’t let fresh leads go stale. Training of sales and finance teams should be a priority for many of us. We as dealers often ask, “What’s the real advertising cost per unit sold?” Why do I say, “real” advertising cost?” Because most of us were taught in business to find ad cost per unit by using an outdated formula. I was taught to take our total ad budget and divide that by our total sales, instead of dividing the ad budget by only the sales that come directly from the advertising. Schedule your training plans for 30 days at a time and stay focused on that particular solution until your reach (cont’d on pg. 6)

You have the potential to deliver more units with the same resources that you already have at your dealership just by improving your skills and processes. 4

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your goal. Schedule management meetings to talk about each problem and find possible solutions. Have everyone on your team discuss their notes and observations on the opportunities. In each area, work with your salespeople on a specific topic every day. It doesn’t have to be an hour-long meeting. Just get everyone to start talking about what they are doing. Have them share their success and help wherever they need more help and identify what is not working. At the end of 30 days, review your progress. Then, adapt and adjust your plan as needed and focus on the next 30 days. Give each manager a group of salespeople to train, coach and mange to help them achieve their individual goals.

Of course, not all leads turn into sales. We all know that. However, you have the potential to deliver more units sold with the same resources that you already have at your dealership just by improving your internal skills and processes. More importantly, you can increase your sales volume, your gross and net profit, without spending any more money on additional marketing leads. You may not need more floor traffic to sell more units. You may not need more incoming calls or internet leads either. Your salespeople just need to improve their selling skills to the customers you have. The sales team needs a step-by-step process that they are required to follow in order to turn your incoming calls and leads into deliveries and more net profit. Good selling, everyone!

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on the cover by Texas Dealer staff

TIADA: Your

Voice at the Texas Capitol

The TIADA delegation poses in front of the Capitol after meeting with legislators.

his week a record attendance of over 50 TIADA dealers and associate members traveled to the Capitol in Austin to advocate for legislation and policies beneficial to the independent auto industry. While there, they met with over 70 legislators and members of their staff. The advocacy efforts began Monday evening as TIADA hosted an informal reception where lawmakers and dealers could in an informal setting and introduce

themselves. “The room was filled with lawmakers from across the state,” said Ryan Winkelmann of BJ’s Autohaus in Houston. “They all wanted to talk to us about our businesses.” The following morning, the TIADA delegation split up into small groups to meet with lawmakers from both the Texas Senate and House of Representatives. Members used these meetings to highlight TIADA’s specific legislative priorities for this legislative session. T e x a s

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1) Chad Lancaster, Eddie Hale, Sen. Royce West, Blake Ingram, Ariad Sommer 2) Jeanne Freeman, John Freeman, Pilar Goodson, Shaun Peterson and current TIADA member Rep. Sam Harless 3) Clint Cockerell, Marcia Hagler, Erika Blankenship, Rep. Vicki Goodwin, Robert Blankenship, Haley Blankenship and Keith Hagler 4) Blake Ingram, Chad Lancaster and Rep. Justin Holland 5) Dallas County Tax Collector-Assessor John Ames, Rep. John Frullo, Tarrant County Tax AssessorCollector Wendy Burgess

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5 March 2019

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1) Jerry Smith, Dede Smith, Rep. Nicole Collier, Chris Elkins and Scott Allen 2) Rep. Ed Thompson and Mark Jones 3) Weyland Talafuse, Efrat Bogoslavsky, Mark Jones and Rep. DeWayne Burns 4) Jeanne Freeman, John Freeman, Rep. Mary Ann Perez, Pilar Goodson and Christina Sabillรณn. 5) Chad Lancaster, Ariad Sommer, Rep. Rhetta Bowers, Blake Ingram and Eddie Hale 6) Tommy Gregory, Rep. Stan Lambert and Tyler Simmons

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Specifically, attendees and lawmakers discussed: Simplifying Texas DMV Form 136 — TIADA supports amending the Transportation Code to allow auto dealers the flexibility to transfer in any county agreed on by the customer and the auto dealer. Support more equitable fines for Vehicle Inventory Tax (“VIT”). Common sense changes to named driver automo bile polices — TIADA supports HB 259 filed by Ed Thompson (R – Houston) which would require insurance companies that sell named driver policies specifically name each household driver who is NOT covered under the policy.

1) Ariad Sommer, Chad Lancaster, Rep. John Turner 2) Rep Toni Rose and Greg Phea 3) Brad Kalivoda, Bill Murphy, Armando Villarreal, Rep. Abel Herrero, Baldomero Traviño, Paul Scott and Dan Keetch 4) Chris Bean, Kirk Lauritsen, Greg Phea, Chloe Phea, Rep. Joe Deshotel,Vicki Davis, Jack Davis, Holly Lopez

According to those in attendance, legislators and their staff knew about TIADA, were consistently receptive to the association’s goals and expressed an openness to working with members of the industry.

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included in TIADA’s Day at the Capitol,” said Karyn Wyre of Cox Automotive. “While I spend all my time in the Government Affairs space for the automotive industry in a corporate role, it is the one to one meetings with legislators and their constituents that really get the job done. “There is no other venue that you are able to witness and influence changes that will affect our business and take a leading rule in help creating the future that we desire,” said Efrat Bogoslavsky of Ituran. “The TIADA team organized the meetings and the talking points with professionalism and expertise and we appreciate the opportunity to be part of this day.” “I had a great time and would recommend that all TIADA members should participate in this event and meet their representatives,” said Kirk Lauritsen of Assured Vehicle Protection. “It’s a great way to to let their representatives know about TIADA and how the their decisions effect their constituents.” Even though TIADA Day at the Capitol is over, TIADA’s legislative efforts are just beginning. Be sure to visit the TIADA Legislative Action Center (find it by selecting Advocacy under Resources at txiada.org). You will find blog updates on the latest legislative developments, track key legislation and find information about contacting your representatives. Your voice matters and helps us strengthen our industry.

“Our trip to the Capitol was a huge success!” said Mark Jones of MCMC Autos. “The legislators we visited with were excited to see TIADA members in their offices and they were extremely interested, attentive, and supportive of the Legislative issues we discussed with them to make our industry stronger for both the dealers and our consumers. We had multiple compliments from State Representatives and Senators from both sides of the aisle in regards to the professionalism and common sense legislative agenda of TIADA.” “The legislators we met really understood our issues,” said Christina Sabillón of Mi Tierra Auto Sales in Houston. “Many of them own businesses themselves and understood the importance of taking care of your customers. That’s what we are trying to accomplish with the named driver legislation.” The dealers in attendance as well as the associate members that joined them all expressed how important the trip was and how much they enjoyed it. “It was an awesome time, everyone from the staff to the legislators were very accommodating and attentive to the association’s concerns,” Greg Phea of Austin Rising Fast Motor Cars said. “It was great to be a part of that process and watch the representatives pay attention to local business owners like me.” “As a sponsor and TIADA member, I felt privileged to be

1 1) Sen Menendez, Mark Brown, Robert Beck, Jose Engler 2) A racely Sabillón, Juan Sabillón, Ryan Winkelmann, Greg Zak and Rep. Ed Thompson. 3) M ark Ruckel, Sonny Paredez Rep. John Kuempel, Mark Brown, Jose Engler, Robert Beck

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legal corner

Answering Dealer Questions About Sales Tax On GPS Units and Air-Time Fees Dealer Question: One GPS vendor is telling me that sales tax on GPS devices and air time charges are not subject to state sales tax and thus tax would not be included on my invoices. I’ve been told by another vendor that I have to pay sales tax on GPS devices, even though I buy them from out-of-state and install them as accessories on the vehicles I sell. The second vendor includes sales tax on its invoices. What gives? Answer: The Comptroller’s Office, in audits of

dealers, and in discussions with TIADA, has taken the position that GPS units, purchased by dealers for installation on vehicles sold as a way of tracking collateral, are taxable purchases by the dealer. The taxable amount includes shipping and handling charges billed by the seller. Additionally, the Comptroller’s office has taken the position that air-time charges billed to the dealer are taxable service charges. As to the purchase of the device itself, the Comptroller says the item is taxable as “tangible personal property.” All tangible personal property purchased for use in Texas is subject to sales tax unless specifically exempted. The state’s tax office has taken the position that there is no exemption that applies to GPS devices purchased by dealers for the primary purpose of locating collateral.

Dealer Question: If I buy a part to install on a vehicle that I intent to resell, I don’t have to pay sales tax on the part when I purchase it. Can’t I argue that the GPS unit is like an accessory that I purchase for installation on a vehicle that will be included in the motor vehicle sales tax? Answer: There is an exemption for an “accessory” that a dealer would purchase to install on a vehicle that is resold. The theory behind the accessory exemption is that the sales price of the object to which the accessory is installed (in this case a motor vehicle) will be enhanced by the product which results in sales tax being recovered at the ultimate retail sale (in this case, motor vehicle sales tax on the vehicle). March 2019

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by Michael

Dunagan

TIADA GENERAL COUNSEL

The accessory exemption doesn’t apply to GPS devices, the comptroller’s office says, because they are primarily purchased and installed for the use and benefit of the dealer (or other lien holder), not the consumer. Even if the device stays with the vehicle, and is available for the buyer to use after repayment is complete, the initial purchase and installation were primarily for the dealer to locate the vehicle for repossession purposes.

Dealer Question: A dealer down the street

from me who uses GPS devices was recently audited by the Comptroller’s office. He was told by the auditor that, since he didn’t remove units from cars he takes back and from paid-off units, the units would be considered to be non-taxable accessories. Can I rely on the auditor’s statement to that dealer?

Answer: The official opinion of the Comptroller’s office is that GPS devices are taxable regardless of whether they remain the property of the dealer, and regardless of whether or not they are removed. The decision of an auditor in the field is probably not binding on the Comptroller’s office. We can expect future audits to consistently take the official position. Dealer Question: If I buy a book or DVD online from a company that is located out-of-state, I usually don’t pay sales tax. Why do I have to pay sales tax on a GPS device that I purchase from an out-ofstate company that doesn’t have an office in Texas? Answer: According to the Comptroller’s office, you do technically owe sales tax on the books and DVDs and many on-line retailers are not collecting and remitting sales tax on purchases sent to Texas residents. There is a provision of the Texas Tax Code that says there is an equivalent “use tax” owed by the 15

Upcoming Events TIADA DEALER ACADEMY Online Registration available at www.txiada.org

March 2019 1 8 From Inventory Acquisition to

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

2 5 The Competitive Investment: Integrating Data Analytics & Technology into Your Dealership Strategy Dallas, TX May 2019 6 Leadership, Management & Coaching

Arlington, TX

June 2019 3 BHPH Compliance:

A Comprehensive Workshop San Antonio, TX

OTHER TIADA EVENTS April 2019 2 2 Board of Directors Meeting

Austin, TX

July 2019 2 1 Board of Directors Meeting

San Antonio, TX

2 1 – 2 3 TIADA Annual

Conference & Expo San Antonio, TX 16

purchaser on items purchased out-of-state but brought into Texas to be used. As a practical matter, Comptroller personnel are not going to audit every household for taxable purchases. Dealers, however, are subject to audits on motor vehicle sales taxes, and inquiry can easily be made by an auditor of taxable purchases. A separate but related issue on the question of sales tax on out-of-state purchases has to do with when a seller in another state must sign up to collect Texas sales tax on purchases made by Texas residents. This question has been the subject of much litigation. The general answer is a seller must collect Texas sales tax if the seller has “nexus” to the state. That is, does the seller have sufficient contacts with the state to give the state jurisdiction over the selling entity? According to the Comptroller’s office, almost any type of contact with the state is sufficient. For instance, having an office, a warehouse, or employees in Texas creates “nexus.” But what is not commonly known is that just having a sales rep (even an independent agent) calling on customers in Texas, or appearing at a convention or trade show in Texas are sufficient contacts. By the way, whether or not a seller has sufficient contacts or “nexus” to require collecting and remitting sales tax is totally separate from the issue of whether the purchase of a product from a seller is taxable to the buyer. That is, even if an out-of-state seller has no contacts with Texas at all, the “use” tax is owed by the purchaser on taxable items.

Dealer Question: My GPS vendor refuses to collect sales taxes or

even put sales tax on my invoices. How can I pay sales tax to avoid being assessed penalties and interest if I’m audited by the Comptroller?

Answer: The dealer can pay sales taxes that are owed but aren’t collected by the seller by adding the amount of tax owed to his or her Texas Limited Sales Tax report (not to be confused with the Motor Vehicle Sales Tax report on deferred sales taxes) and remitting the appropriate taxes directly to the Comptroller’s office. This same procedure has been recommended for paying sales taxes on repossession fees when repossession agents refuse to add sales tax to their charges. By the way, unlike motor vehicle sales tax, which is uniform throughout the state, the limited sales tax rate varies from location to location as there are optional types and amounts of taxes local governmental units can add to the state’s portion of the sales tax. Dealers need to determine what that rate is (usually in the range of 8.25-8.75 per cent) at their locations. Dealer Question: Why do I have to pay sales taxes on air-time fees that I am charged by my vendor for access to satellite tracking information and for activation of shut-off devices? Answer: The Comptroller’s office takes the position that such charges

are taxable as “security services” and/or “telecommunication services” which are taxable under the Texas Tax Code. The Tax Code lists certain services that are subject to sales tax even though they don’t involve the purchase of tangible personal property.

Dealer Question: I have been audited in the past, but nothing was said about owing sales taxes on the GPS devices I had bought. Can’t I rely on the absence of being assessed for the taxes in a prior audit to establish that the purchases are not taxable to me? T e x a s

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Answer: The Comptrollerâ&#x20AC;&#x2122;s

Office has always taken the position that its failure to raise an issue in an audit canâ&#x20AC;&#x2122;t be relied upon to excuse non-payment of a tax due assessed in a subsequent audit.

Dealer Question: What does TIADA recommend for dealers who purchase and use GPS devices? Answer: Until further

notorious Herbies case (see the May, 2016 issue of Texas Dealer for a more complete discussion of the case), the placement of a charge for GPS devices on retail installment contracts was found to be one of the violations. First, such charges may be violations under state law (as is the case in Texas). Additionally, the CFPB found that the charges were in fact finance charges as defined in federal Truth in Lending (TIL). But since they were not added to

the disclosed finance charges, and were not included in the annual percentage rates, TIL violations had occurred. 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.

clarification is received from the Comptroller, the administrative process, or, ultimately, the courts and the legislature, the best practices procedure is for the dealer to either pay sales tax as invoiced from the GPS vendor, or, if sales tax does not appear on the invoice, to pay the tax directly to the Comptroller using the Limited Sales Tax report discussed above. Dealers may wish to consult sales-tax specialists for further guidance.

Dealer Question: Can I pass through a charge for GPS devices to a vehicle finance customer on a motor vehicle retail installment contract? Answer: The Office

of Consumer Credit Commissioner (OCCC) has taken the position that charges for GPS devices are not authorized charges that can be passed through. And like the Comptrollerâ&#x20AC;&#x2122;s Office, OCCC cites the fact that GPS devices are primarily for the benefit of the creditor, not the consumer. When such charges have been found on contracts (usually during routine investigations or audits) of licensees, the dealers have been required to refund or credit the charges. Also, in the federal Consumer Finance Protection Bureau (CFPB) opinion in the March 2019

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feature

Is Facebook Marketplace Right For Me? by Mark Garland

Director of Marketing AutoManager, Inc.

acebook is an important part of a well-rounded marketing strategy for any auto dealer. You can communicate directly with local shoppers for free via a Facebook page or leverage one of the many paid advertising products, like Dynamic Inventory Ads, to reach shoppers browsing their Facebook feed. In October 2016, Facebook launched another product that changed the game for auto dealers — Facebook Marketplace. Originally launched as a place for local communities to buy and sell, Facebook Marketplace expanded its product offerings for consumers. After seeing the increasing interest in buying and selling used cars, Facebook added car inventory from dealerships to be posted through third-party listings partners.

What does this actually mean to a used car dealer? The impact is primarily seen in the speed with which dealers can communicate with car buyers. Marketplace features the ability to communicate, in real-time, with interested customers via Messenger. This realtime conversation can happen anywhere, anytime. This includes the freedom of communicating from a laptop or even a smartphone to drive leads. For example, AutoManager reported that its dealers collectively received 12 leads for every 10 cars they posted on Facebook Marketplace. Additionally, for their most successful dealers, the top 10% received 35 leads for every 10 cars they posted. This kind of communication outcome is not typical under traditional lead generating methods.

“Mil l ions o f Am e r ic an s are u s i n g Marketpl a c e e v e r y d ay to loo k for cars . Sin c e this is on e of o u r m ost popu lar c ate gorie s, we ’ r e ex panding ou r u se d c ar in v e n tor y b y par tn e r in g with le ad er s in the auto in d u str y.” - Facebook Newsroom, October 2017

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Success 5 Steps to

with Facebook Marketplace

1 2 3

4 5

F ind an approved vendor that offers both inventory posting and message handling. Don’t cherry pick which inventory to post. Post your whole available inventory. Do your homework before signing up with a vendor who offers interface to Marketplace. The costs vary widely. Some vendors offer products that post at no additional charge. Make sure Facebook Messenger has been installed on your mobile device with notifications turned on. Respond immediately to shopper inquiries. Remember these are “In-Market Shoppers.”

Another significant impact is the quality of the lead now available to the dealer. On Marketplace, your inventory is exposed to people in your market looking for a used vehicle. Marketplace shows listings within 40 miles of a person’s location. Additionally, there is no limit to how many vehicles an independent dealership can place on Marketplace, and Facebook doesn’t charge for listings. The only caveat is that you can only list used vehicles. What does this mean for your average independent auto dealer? Well, are you interested in free distribution of your listings? Then you’re in luck. Do you want to reach shoppers who are in the market for a used car? Well, you came to the right place. Do you believe that instant communication can help you close more sales and keep your finger on the pulse of your shopper? Then rest assured that is included. All of these benefits are available on Facebook Marketplace. Success on Facebook Marketplace for a dealer may be a game changer. Dealers spend a lot of money on 20

...are you interested in free distribution of your listings? Then you’re in luck. Do you want to reach shoppers who are in the market for a used car? Well, you came to the right place. Do you believe that instant communication can help you close more sales and keep your finger on the pulse of your shopper? Then rest assured that is included. All of these benefits are available on Facebook Marketplace. advertising. They use Craigslist, eBay, AutoTrader and other services to promote the sale of their used vehicles. Is considering Facebook Marketplace a valuable resource for you and your dealership? Perhaps now you can decide. Mark Garland is the Director of Marketing for AutoManager, Inc., a dealer management software company that has been serving dealers for over 30 years. If you’re interested in learning more about AutoManager, Inc. solutions, please call 800-300-2808 or visit AutoManager.com.

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Dealer Academy

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Crowd favorite Brent Carmichael will share his service knowledge during the morning session covering points that include: • Inventory acquisition • Reconditioning: a) Step-by-step process, and b) Internal vs. subletting • Finding/Hiring/Training Technicians • Tracking Metrics • Best practices from service department 20 groups

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In the afternoon we’ll roll up our sleeves and follow experts from ADESA as they share their insight on: • Arbitration Rules: a) Understanding the NAAA Arbitration Chart, b) Identifying frame and structural damage – Actual walk around a car to demonstrate this! and c) Learning how the experts assess vehicle value • PSI - What is covered and what is not • Auction 101: a) Basic buying tips at auction; and b) Online buying process and procedure

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Dealer Registration Options 2019 TIADA Annual Conference & Expo July 21-23, 2019 JW Marriott Hill Country Resort – San Antonio, TX Customize your conference experience by selecting from the options below. Please complete the registration form and return it with payment in full to the address listed or for online registration, go to www.TiadaAnnualConference.com.

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CONFERENCE OPTIONS

through June 21st

Full Conference Pass—Dealers Only (includes Welcome Reception, Monday & Tuesday Education /Sessions, Expo Hall, Legislative Luncheon & Awards Dinner)

1st Registrant 2nd Registrant* 3rd + additional Registrant*

Save $100 per attendee.

$595 $495 $495 $395 $395 $295

One Day Dealer Pass

$300 $400 non-members

(Monday 7/22 or Tuesday 7/23) (includes Monday or Tuesday Education and Expo Hall on your selected day)

Non-Member (Dealers only)

$895 $795 (except as noted)

TADA and out-of-state IADA members are eligible for TIADA member rate (coupon code required)

Session Recordings

$99 $399

With Conference Registration Regular (Non-attendees)

Special Membership Ticket—Win $10,000 Each $100 membership donation enters you in the $10,000 drawing to be held at the Conference. You need not be present to win!

$100/each

Sponsored by America’s Auto Auction *Registrants must be from same dealership to receive discounted rate

Hotel Accommodations

Discounted guestrooms are available for $215/night plus $5 discounted resort fee for TIADA Conference attendees. Please contact the hotel directly to book your room. Must be reserved on or before June 21st to receive discounted rate.

JW Marriott Hill Country Resort / 23808 Resort Parkway / San Antonio, TX 78261 Call 210.276.2500 or book online TiadaAnnualConference.com/jwmarriott-hillcountry.com 28

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Dealer Registration Dealership: ______________________________________________________ Phone: ____________________ Address: ________________________________________________City/ST/Zip: ______________________  BHPH Dealer

 Primarily Retail Dealer

REGISTRANT DETAILS

1st Registrant 1st TIME ATTENDEE? Yes No

2nd Registrant 1st TIME ATTENDEE? Yes No

Name: __________________________________________________ Name for Badge: _________________________________________ Title: ___________________________________________________

Email:__________________________________________________  FULL CONFERENCE ($495 Early Bird through 6/21)  ONE DAY PASS ($300) Circle Preferred Day MONDAY TUESDAY  Expo Hall Guest Wristband (10 & older) ($99 x ____)  Addt’l. Awards Dinner Ticket (10 & older) ($50 x ____)  Tuesday Dealer Excursions* ($10 x ____)  River Boat Tour  Salsa/Guacamole Makin’  Painting with a Twist  Rebecca Creek Distillery

$____ $____ $____ $____ $____

Email:__________________________________________________  FULL CONFERENCE ($395 Early Bird through 6/21)  ONE DAY PASS ($300) Circle Preferred Day MONDAY TUESDAY  Expo Hall Guest Wristband (10 & older) ($99 x ____)  Addt’l. Awards Dinner Ticket (10 & older) ($50 x ____)  Tuesday Dealer Excursions* ($10 x ____)  River Boat Tour  Salsa/Guacamole Makin’  Painting with a Twist  Rebecca Creek Distillery

$____ $____ $____ $____ $____

2nd Registrant Subtotal $_____

1st Registrant Subtotal $_____ 3rd Registrant 1st TIME ATTENDEE? Yes No Name: __________________________________________________ Name for Badge: _________________________________________ Title: ___________________________________________________ Email:__________________________________________________  FULL CONFERENCE ($295 Early Bird through 6/21)  ONE DAY PASS ($300) Circle Preferred Day MONDAY TUESDAY  Expo Hall Guest Wristband (10 & older) ($99 x ____)  Addt’l. Awards Dinner Ticket (10 & older) ($50 x ____)  Tuesday Dealer Excursions* ($10 x ____)  River Boat Tour  Salsa/Guacamole Makin’  Painting with a Twist  Rebecca Creek Distillery

$____ $____ $____ $____ $____

3rd Registrant Subtotal $_____ Need to register more staff? Call us at 512.244.6060

Payment Information

A LA CARTE OPTIONS TUESDAY DEALER EXCURSIONS*

May select one (1) excursion per dealer registrant; may bring one (1) guest over the age of 21 years old. Some excursions may sell out! For offsite excursions, buses depart at 3p. *For more info, visit www.TiadaAnnualConference.com/dealer-networking.excursions/.

SESSION RECORDINGS+  $99 with Conference Registration  $399 Regular (Non-attendees) +Approximately

$____ $____

20 hours of recorded breakout sessions

SPECIAL MEMBERSHIP TICKETS $100 X _____

$____ A la Carte Subtotal $_____

Total Amount Due $ ____________

 Make check payable to TIADA.  TIADA is hereby authorized to execute payment to the following credit card:

 AMEX

 Visa

CC Number__________________________________________________________________Exp. Date ____________

 MC

 Discover

SVC _________

Name on Card_________________________________________________Authorized Signature_______________________________________ TIADA | 9951 Anderson Mill Rd, Suite 101; Austin, TX 78750 Phone 512.244.6060 | Fax 512.244.6218 | conference@txiada.org March 2019

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JUST GET ONE

Take the Recruitment Challenge in 2019! Actually, have 4 cups.

omm nt auto de oo n e

dealers le bi

Travel to Vegas, or Orlando or somewhere else!

Have a cup of coffee on us!

as ind ep te x

Recruit 20 members and you will receive an all-expense trip for you and a guest to attend 2020 NIADA Convention & Expo.

Recruit a new member and we will send you a $10 gift card — and we’ll do that for the first 4 members you recruit.

a s TIADA nn s o c i a t i oo

Receive top-notch education... for FREE!

Relax with the family and turn work into pleasure. Recruit 5 new members by June 30th and you will receive one free registration to the 2019 TIADA Conference & Expo. Recruit 10 new members by June 30th and you will also receive your hotel room for free (up to two nights) at the JW Marriott San Antonio Hill Country Resort & Spa during the TIADA conference.

Contact the TIADA office for details.

www.txiada.org

TIADA texas independent automobile dealers association

Become a TIADA Member Business Name: ____________________________________________ Select one:

Dealer Member

TIADA texas independent automobile dealers association

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________ City: _________________________________________ State: _______

Membership Dues:

Zip: __________________ County: _____________________________

$499

E-mail address: _____________________________________________

Dues include NIADA and local chapter membership where applicable.

Business Phone: _______________________ Fax: ________________________ Cell Phone: ___________________________________________ Dealer P Number: ___________________________________________ Who referred you to TIADA? __________________________________ Mailing Address (if different from above): __________________________________________________________ City: _________________________ State: _______ Zip: ___________

PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Sec.Code: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Expiration Date: ____________ Monthly Payments - $41.58 per month Via Credit Card (Please enter card information above) Via Bank Draft (Authorization Agreement required - contact state office)

Mail or Fax Application To: TIADA Membership Services, 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750 FAX 512.244.6218

www.txiada.org

512.244.6060

Dues are not deductible as charitable contributions for income tax purposes but may be deductible as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20 percent of your dues dollars is used for lobbying activities and is therefore not deductible.

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TIADA Auction Directory 2019

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*

NEW

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

Amarillo IAA AMARILLO*

IAA DFW*

Corpus Christi

IAA FORT WORTH NORTH*

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

CORPUS CHRISTI AUTO AUCTION

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

IAA CORPUS CHRISI*

www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880 GM: Patricia Kohlstrand Wednesday, 9:00 a.m. $AVE : up to $200 Sell Fee

Dallas-Ft. Worth Metroplex NEW

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

Austin

ADESA AUSTIN

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

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

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

METRO AUTO AUCTION AUSTIN

ADESA DALLAS

www.adesa.com 3501 Lancaster-Hutchins Rd., Hutchins, TX 75141 972.225.6000, Fax 972.284.4799 GM: Allan Wilwayco Thursday, 9:30 a.m. $AVE : $200

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

AMERICA’S AA DALLAS

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

IAA DALLAS*

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

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

NEW

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

MANHEIM DALLAS

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

MANHEIM DALLAS FORT WORTH

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

METRO AUTO AUCTION DALLAS

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

TEXAS LONE STAR AUTO AUCTION

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

El Paso

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

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IAA EL PASO*

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

MANHEIM EL PASO

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

IAA HOUSTON*

Midland Odessa

IAA HOUSTON NORTH*

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

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

MANHEIM HOUSTON

Harlingen/McAllen IAA MCALLEN*

www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393, Fax 956.464.8510 GM: Ydalia Sandoval Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

BIG VALLEY AUTO AUCTION**

www.bigvalleyaa.com 4315 N. Hutto Road, Donna, TX 78537 956.461.9000, Fax 956.461.9005 GM: Lisa Franz Thursday, 9:30 a.m. $AVE : $200

Houston

ADESA HOUSTON

www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030 GM: Michael Schenks Wednesday, 9:00 a.m. $AVE : $200

AMERICA’S AA HOUSTON

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

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

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

MANHEIM TEXAS HOBBY

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

Longview

HOUSTON AUTO AUCTION

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

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ONLINE

ACV AUCTIONS**

www.acvauctions.com 800.553.4070 $AVE : $250

San Antonio

ADESA SAN ANTONIO

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

IAA SAN ANTONIO*

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

ALLIANCE AUTO AUCTION LONGVIEW

MANHEIM SAN ANTONIO

IAA LONGVIEW*

SAN ANTONIO AUTO AUCTION

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

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

Lubbock

IAA LUBBOCK*

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

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

IAA PERMIAN BASIN*

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

Lufkin

LUFKIN DEALERS AUTO AUCTION

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

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

Tyler

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

Waco

ALLIANCE AUTO AUCTION WACO

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

BUY ONLINE AT www.AmericasAutoAuction.com

LOCATIONS

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

Dallas, TX Detroit Toledo, OH Greenville, SC Harrisburg, PA Houston, TX Interstate 94, MI

Jacksonville, FL Lancaster, PA North Houston, TX Pensacola, FL Pittsburgh, PA St Louis, MO

Austin

LOCATIONS IN TEXAS

Dallas

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

Tulsa, OK Virginia Beach, VA West Michigan, MI

TUESDAYS & THURSDAYS AT 1PM

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

THURSDAYS AT 1:30PM

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

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

North Houston

MONDAYS AT 6:30PM

1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

feature

Inventory Acquisition â&#x20AC;&#x201C; Back to Basics by Brent Carmichael NCM Associates, Inc.

ne of the hottest topic in the buy-here, pay-here world is and has been inventory. Not only where, but what and how to find and buy it. Like most other areas of the buy-here, pay-here business, the most successful dealers are focusing on the basics in this area as well. They are firm believers in the K.I.S.S. philosophy. Keep It Simple, Stupid. No need to overthink and thus overcomplicate things. The first basic they are focusing on in regards to inventory acquisition is repeat business. For the more successful dealers, between 30-40% of their monthly sales are from repeat customers. These will be either low balance customers traded into a new vehicle or previously paid out customers that have returned to purchase again. So 30â&#x20AC;&#x201C;40% of their monthly inventory need could be satisfied with vehicles they have a history of and with. Pretty valuable information to have when it

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For the more successful dealers, between 30-40% of their monthly sales are from repeat customers. These will be either low balance customers traded into a new vehicle or previously paid out customers that have returned to purchase again. 35

comes to the vehicles we deal with. Recycling of repossessions is the next basic to focus on. With these, you have the ability and time to completely check the vehicle out to determine its reconditioning need. You also have some historical information for the vehicle. The dealers I have the privilege of working with are recycling on average 60% of their repossessions each month to put back out on the lot for sale. The only negative seems to be that the recycled vehicles tend to have a higher reconditioning cost. They seem to need a little more love to get them lot ready, but overall are more cost effective than purchasing at auction. Speaking of auctions, they are a basic that should not be overlooked. It is true that there are not as many vehicles going across the block these days, but it is still an effective source. The positive to vehicle volumes at auction being down is that the auctions are becoming very competitive with one another for dealer business. Some are even waiving buy or post sale inspection fees. There is no better time to expand your horizons and check out as many auctions as travel and expense will allow. Additionally, when shopping for new or additional auction sources, do not limit it to just the large national auctions. Independent auctions are becoming very aggressive in going after dealer business as well. I may be a

The positive to vehicle volumes at auction being down is that the auctions are becoming very competitive with one another for dealer business. Some are even waiving buy or post sale inspection fees. little old fashioned, but have always preferred the independent auction as they seem to provide better service and an overall buying and selling experience. It’s also recommended to utilize the internet as an aid in searching for an auction honey hole. Most auctions, national and independent, are posting most, if

SPECIALIZING IN THE INSURANCE NEEDS OF THE TEXAS USED CAR DEALER FOR OVER 30 YEARS

(800) 727-7124 • Garage Liability • Dealers Open Lot • Dealer Bonds

• Dealers E&O Coverage • Garagekeepers • Workers Compensation

Contact Mike Pool, Bret Jones or Travis Williams for a competitive quote. m.pool@teiinsurance.com • bret@teiinsurance.com • t.williams@teiinsurance.com P.O. Box 850746 • Mesquite, TX 75185 • (972) 288-3266 • Fax (972) 288-2608

www.teiinsurance.com 36

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not all, of their upcoming sale vehicles and post-sale information as well. Most are utilizing Smart Auction, Open Lane, and OVE for the posting. These are also great resources for the dealer to not only purchase vehicles from the comfort of their office but also to research what auctions have available to know where your next auction visit needs to be. You might just stumble upon an auction you weren’t even aware existed. And Trade Rev and ACV are recent additions to the online buying options. A final basic in the K.I.S.S. philosophy would be dealer trades. New car sales are at an all-time high so there should be a few trades laying around. It won’t fill the overall need since they are trying to hold on to their trades for the super aggressive subprime market, but it still could fill a partial need. I think the key here is

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personal contact with the dealer. I am seeing too many buyers just calling the dealer asking what they have instead of taking the time to actually visit the dealers. Not necessarily a basic, but a stone that should not go unturned would be the private seller. eBay, Craigslist, newspapers and auto magazines are all sources to find vehicles. I, too, used to turn my nose up at this stone feeling it wasn’t worth the time and effort. However, with today’s economic challenges, there are sellers out there who simply need the money to get by and are far more reasonable in their expectations. Will it fill the lot? No, but it could fill part of it and that is what counts. Ultimately, there are two simple questions to remember when acquiring inventory. How much do you have in the bank account? How much of that are you willing

to spend? There still is enough inventory available as long as you are willing to pay for it. Values are still a little on the high side, but there seems to be some leveling off. Finding the right inventory for the right price is still possible. The key will be not to overthink and thus over complicate it. If you focus on the basics and keep it simple, you will be working smarter and not harder. Brent Carmichael is the Executive Conference Moderator, 20 Groups with NCM Associates, Inc. He will be presenting, along with the staff of ADESA Houston, the TIADA Education Seminar From Inventory Acquisition to Tracking Service Department Metrics: Getting and Selling the Right Vehicle is the Bottom Line March 18th in Houston. Turn to page 21 for more information.

Dealer Academy

in partnership with

Presents

The Competitive Investment: Integrating Data Analytics & Technology into Your Dealership Strategy Presented by Joe Oliveri, General Manager, Data as a Service, KAR Auction Services, Inc. and Steve Nicholson, Director of Major Dealer Accounts, TradeRev.

8:30am - 12:00pm $149 Members, Each Additional $99 (must be from same dealership)

$299 Non-members

Technology and data are rapidly transforming the automotive industry — competition is intensifying, customer expectations are increasing and now buyers and sellers have more information at their fingertips than ever before. But only those who invest in data and new technology will yield the benefits — including a competitive edge like no other. In this workshop, learn how your dealership can use analytics to harness data to provide meaningful insights — including floorplan decisionsupport and optimal vehicle valuation and pricing — and leapfrog the competition. And, gain practical tips to reap benefits from the digital revolution, including how to diversify your sales approach by incorporating new technology at your dealership. Session Takeaways: • First-hand, concrete tips for capitalizing on mobile and tech to improve sales and efficiency • Advantageous methods for incorporating a data and analytics strategy into your dealership, including where to start and what insights to look for • Authentic guidance on how to diversify your sales approach to maximize return and outpace the competition

Sponsored by:

Monday, March 25, 2019 Dallas, Texas Sheraton Suites Market Center 2101 N. Stemmons Freeway, Dallas, TX 75207 | 214.747.3000

www.traderev.com

www.autoniq.com

Texas Independent Automobile Dealers Association

For more information or to register over the phone, please call the state office at 512.244.6060

feature

Leadership, Management & Coaching by Jay Rose

VP of Dealer Development, AutoLoop

ealerships across the country are all looking to develop their teams, increase their leads, close more customers and keep customers in their customer base (portfolio). Retail or buy-here, pay-here dealers, they all have the same goal but whether they actually achieve those desired results will come down to how they execute their plan. Their success

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will come down to Leadership, Management and Coaching.

Leadership skills will be needed to set a vision of what your culture is and how do you want to do business. Are you only concerned about a transaction (selling a car) or are you more interested in developing long term relationships with customers and their families?

Do your current software, training programs and compensation plans support this? Most dealers tell me they want happy employees and customers for life. However, how they conduct their business, manage employees and the way they compensate their staff does not support this. You need to lead by example and make sure your policies (what you want your team to 39

do) and procedures (how you want them to do their job) are followed and create a positive place of business that employees and customers never want to leave. In 31 years of working with dealers around the world, I have never seen a dealership with high turnover of staff with high customer loyalty. Take care of your team and they will take care of your customers.

Management skills will be needed to manage the pro-

cesses you want to have happen in each department (BDC, Sales, F&I, Service, Collections, etc.). This includes tracking each metric that is important for that department such as: BDC — number of leads, appointments, appointments showed and appointments purchased. Sales — number of deliveries, gross profit per vehicle and sales CSI percentage. F&I — average per vehicle unit cost, average finance percentage and average product penetration percentage. Collections — percentage of delinquent accounts, percentage of recency accounts, number of OFR, number of repos, number of ROH and charge-off percentage. Do not have any policies unless you have a consequence if they are not followed. You manage a process, not people. You have to coach people to follow your process.

Coaching skills are needed if you want to have a happy, developing, and successful team. Notice I didn’t say “Boss” skills. A Boss tells people what to do, a Coach shows their

team how to do their job. I have trained over 9,500 dealership personnel and I have never asked someone to do something I am not willing to demonstrate how to do. Your team will not follow you because of your title, they will follow you if they respect you because you are willing to demonstrate how to do their job better or you hire a professional to demonstrate better techniques. Do not hire a “Consultant” to tell you what to do, hire a “Coach / Trainer” that will take the next customer and show you how to do it.

Developing your Team:

Building a successful team, hiring and keeping the right people Processes and procedures that allow dealerships to measure success Setting goals and motivating your team achieve them How to train skills in a group meeting or a 1 on1 meeting

Lead Generation & Lead Management:

Training any size BDC to work with your sales team Generating the right leads in the digital world Turning emails and phone calls into customers How to successfully post on Social Media

Purchase Process:

Get customer to like, trust and respect you Ask the right questions then present only the ve hicle features to fit their needs Structuring financial terms that are a win/win for customer and dealership Follow up after the delivery and get more referrals

Consignment Sale Every Thursday, 9:00 am

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

Customers for Life:

CRM - Going over the specific challenges that par ticipants have at their own dealership Providing advice and solutions to these challenges so you can have the best tax season Learn how to engage with your customer to have a customer for life.

Jay Rose is the VP of Dealer Development for AutoLoop. As the leader of customized in-dealership coaching & training in the automotive industry since 1988, Jay works with your team to create dynamic solutions for Sales, Management, BDC, F&I, and BHPH training programs that will get ongoing results. Call Jay if you want more information or free videos. Cell – 904955-7666. Attend Jay’s TIADA “Leadership, Management & Coaching” workshop May 6th Arlington, TX. Attend this workshop with your biggest challenge written down and you will leave with an action plan on how to implement change, get the results you want and make 2019 your best year. Do not miss this opportunity. T e x a s

D e a l e r

March 2019

TIADA Auction App turns your phone into

CASH

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

e-Tag Supplies —

In Stock for Immediate Shipment!

MOTO

R VEH

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ETAIL

INSTAL

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SALES

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316 bpc #24-4

Ignorance is no defense. Know the law. Repo and financing issues are among the most common violations found by the OCCC. If you own a previous edition of these books from 2008 or earlier, it is recommended that you upgrade to the current editions.

Dealer Financing of Used Car Sales This comprehensive book covers all aspects of the complicated world of seller-financing in Texas, including Maximum Finance Rates; Retail Installment Contracts; Contract Amendments; VIT; Repair Charges; Federal Disclosures and more.

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

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

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

TIADA

Now available for purchase online at www.txiada.org under “Legal Resources” or call 512.244.6060 to order by phone. When ordering online, login with your TIADA username and password to receive the discounted rate. All prices include shipping. Orders are shipped in 3-5 business days. texas independent automobile dealers association

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

TIADA texas independent automobile dealers association

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March 2019

Please Welcome Our Newest TIADA Members DEALER MEMBERS Archer KIA Todd Archer 11614 Southwest Frwy Houston, TX 77031

Rutledge Auto Group Richard Rutledge 412 East Spring St Palestine, TX 75801

ASSOCIATE MEMBERS Auction Credit Matt Hoenig 16611 S Interstate Highway 35 Buda, TX 78610

Bella Motorz Samuel Adebola P.O. Box 673061 Houston, TX 77267 Discount Motor Co Arnulfo De La Rosa 4602 South Padre Island Dr. Corpus christi, TX 78418 Kar Market Nitin Narang 4709 N. Shepherd Dr. Houston, TX 77018

Cordell & Company Insurance Agency Lance Thompson 3513 South Freeway Fort Worth, TX 76110 IkonGPS Ken Terkel 1161 W. Corporate Dr, Suite 120 Arlington, TX 76006 Integrity Warranty LLC Scott Siperko 9325 Apison Pike, Ste 101 Ooltewah, TN 37363

LLA Automotive LLC Alexia Cooke 800 Fulgham Rd, Ste 6 Plano, TX 75093

Pronto Finance Steven Engmann 1900 East Golf Road, Suite L140 Schaumburg, IL 60173

Luxury Motorsports LLC Raed Zayed 2911 Lawrence Dr Austin, TX 78734 RJ’s Autos Rod Jenkins 8005 Vista Del Sol St Azle, TX 76020

resource guide The TIADA Website:

www.txiada.org Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online at the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access 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 2019

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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 CORPUS CHRISTI G.R. Moore The Car Shack 361.813.2466 grcarshack@grcarshack.com (dates announced at www.txiada.org) DALLAS COUNTY Graham Lathrop VP Auto Sales 972.864.1300 grahaml@vpautosales.com (dates announced at www.txiada.org) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) FORT WORTH David Byrd Byrd Autos 817.915.2185 david@byrdautos.com Meeting – 4th Thursday of Jan–May and Sep–Oct HOUSTON Rudy Roudbari Sarco Enterprise 713.672.3950 Meeting – 2nd Tuesday (Monthly) SAN ANTONIO Jose Engler Irving Motors Corp 210.385.2568 pepeton2002@hotmail.com (dates announced at www.txiada.org) VICTORIA Rowdy Ransom RTR Motors 361.484.6526 rowdyroy78@yahoo.com Meeting – 1st Monday (Monthly) 45

behind the wheel

Martin

Your Voice for Change

f you have already skimmed through this issue you have seen the carefully crafted words and bright pictures depicting what is taking place at the Texas Capitol and how it will affect independent automobile dealers. I’m sure you recognized some of the dealers who attended the TIADA Day at the Capitol and maybe even spotted one of your legislators. By all accounts, it was a success and the largest legislative visit we have ever hosted. We use this magazine to make sure that as a member of the association you know that your voice is being heard. That’s why you joined — to have YOUR interests professionally represented, to strengthen YOUR voice. The association is representing you and voicing your concerns to Texas legislators. But is that YOUR voice being heard? We used the TIADA Legislative Agenda to guide us through this session. That is the agenda that is set each year at the TIADA Conference & Expo. We also discussed bills and ideas regularly with the TIADA Legislative Committee and Board of Directors via teleconference. On that call you are represented by your state officers — the guys you voted in to office last July. Your voice was somewhere in there, right? If not, and you’re thinking that maybe it’s time your voice is heard, I have good news. This year’s conference is just around the corner. I could go on and on about the leadership, learning and fun

by Jeff

TIADA EXECUTIVE DIRECTOR

opportunities we are going to offer at this event (see pg. 24), but many of you already know about all that. What I want to point out is that without YOU attending this year’s conference, YOUR individual voice really may not be heard. Collectively, as an association, you are represented, but you are missing an opportunity to voice your ideas. It doesn’t matter to me whether people agree with your ideas or not — what matters to me is that you have the chance to express that opinion. I have been around car dealers long enough to know — you have an opinion! The conference is the place to share your opinion and start the conversation about changes that will influence the industry. Through some great volunteer leadership and a lot of hard work, we are consistently growing the influence of the association. But nothing cultivates a strong association with a strong voice like active members. The conference is where your voice really starts to take shape. We had almost 300 dealers attend last year’s conference and it created momentum that has us in a very strong legislative position. Let’s build on that momentum this year. As you roll out of tax season, take a moment to jot down three things you would like to see changed in the industry, tear out that registration page or go online and register for conference. Then in July, bring your ideas to the conference. Let’s talk about what we can do to make positive changes to the independent automobile industry for years to come.

The conference is the place to share your opinion and start the conversation about changes that will influence the industry. 46

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March 2019

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

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