Texas Dealer March 2020

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Send your bracket and WIN one (1) dealer conference registration and two (2) nights hotel at the JW Marriott Hill Country Resort & Spa in San Antonio!

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In This Issue: – New Salvage Rules for Texas Independent Auto Dealers – Michael W. Dunagan on Sales Tax Audits and the 60-Day Rule – 5 Best Practices of Lead Follow-Up for Car Dealers

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

TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org

Vo l u m e X X / I s s u e 3 / M a r c h 2 0 2 0

TexasDealer 4 Officers’ Message

contents

by Juan Sabillión, TIADA Chairman of the Board

7 In Memoriam: D.T. Mosley 9 Legal Corner: Sales Tax Audits Turn Up Dealer Issues

by Michael W. Dunagan

10 Upcoming Events 14 TIADA Auction Directory 2020 17 Membership Corner 17 Local Chapters 21 Board of Directors Meeting Minutes 22 TIADA Scholarship Application 23 Awards and Scholarships: The Rundown

by Texas Dealer staff

24 On The Cover: Best Year for TIADA – A March Madness Bracket

by Texas Dealer staff

29 New Salvage Rules for Texas Independent Auto Dealers

by Jessica Cumbee

32 TIADA Conference and Expo 33 5 Best Practices of Lead Follow-Up for Car Dealers by izmocars.com

35 Tire Hieroglyphics

by John Goux

41 C ongressman Cuellar visits TIADA at Manheim San Antonio

by Texas Dealer staff

44 New Members 46 Behind the Wheel

by Jeff Martin

Did you know? One of the goals of TIADA’s Five-Year Strategic Plan calls for an annual increase of membership by 2%. And you can do your part by taking the Recruitment Challenge in 2020; even if you Just Get One! For more information turn to page 19.

Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

Editor: Teresa Orkun

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

officers’ message

by Juan

Sabillón

Back to Basics

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

oday’s customers are more cautious than ever.

They are at the dealership to buy, but if you are not up to the task, you’ll lose the sale. Plus, the more qualified they are to buy, the more likely they are to walk away from a bad presentation, an arrogant attitude, or ignorance.

Buyers in today’s market are way more concerned about value than price, and if you think cheap selling your product means more deliveries, you’re wrong!

Cheap will cost you sales. Your best bet to sell more units is to build more value than any other salesperson will. To do that, you must learn how to control the sale.

Controlling the sale, or the selling process, means asking questions instead of just answering them. It means keeping the sale on track and continually moving the sale forward instead of losing it. Control means leading the customer through the basic steps of selling and through the process buyers have to go through in order to complete the purchase… all by asking the right questions.

To control the sales process, you’ll need to develop skill sets on how to: Bypass price on the lot to focus on value

Use open-ended questions to build rapport

Use “either…or” questions to investigate, keep the

conversation on track, and close the sale Use “yes” questions to confirm the features,

advantages and benefits they said were important to them Re-focus price in the negotiation

Clarify, rephrase, isolate and close on every objection

you get when you are in the final stage of the sale Rephrase price when you close

Everybody is a buyer, but very few will buy on their own without help from a professional salesperson.

Follow the basics with every prospect because more sales are made or lost due to the basics than everything else combined. Close the deal effectively to increase your sales.

Just showing a vehicle isn’t the same as presenting it effectively. A ride around the block isn’t an effective demonstration. Dropping the price doesn’t increase value. Follow the basics effectively. Look, act and sound like a professional, so that when you first approach your prospect, you make a positive first impression. Greet the prospect promptly and properly with a smile and an open-ended question to get their name, followed immediately by an “either…or” question to move the sale forward.

Ask an open-ended question to build rapport.

Combine building rapport and investigating to put them at ease and learn more from them so you’ll know what to cover during your presentation. Acknowledge price

Controlling the sale, or the selling process, means asking questions instead of just answering them.

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questions but ask an “either…or” question to get the conversation back on track. Control the wander-around to get all the information you’ll later need in your demonstration and walk-around.

Sell your service department and introduce your prospects to several dealership employees because the more people they like, the more likely they are to buy. Use your product knowledge to cover all questions the prospect is interested in. Give a feature advantage and benefit in your walk-around presentation to the primary driver that covers the specific features the primary driver is most interested in. Use tone, inflection and body language to control the process as you ask your final closing questions on the way to your desk.

There is more to investigating, presenting and closing than, “What do you want to spend?” or “Do you want to drive it?” or “Do you all want to go inside and see what we can do on this?” You need good questioning skills, because without them, you can’t stay off price, you can’t build rapport and you can’t investigate to understand each person’s wants and needs. Without effective questioning skills, you can’t present effectively, handle objections, close the sale, get referrals or even schedule appointments to show. Think about closing the sale as a process.

Good selling everyone!

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resource guide The TIADA Website: www.txiada.org Members can log in with their username/password and access our Dealer Member Director y, Legislative Action Center, Compliance Consultation Ser vice and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.

Texas Department of Motor Vehicles

in memoriam D.T. Mosley

by Texas Dealer staff

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e are deeply saddened to announce that former TIADA President and great friend of the association D.T. Mosley passed away Wednesday, February 5, 2020.

D.T., who was the owner of Mosley Motors in Houston, TX served as TIADA President in 1984 and 1992 and also served as NIADA president in 1989–1990.

A recipient of the state Quality Dealer Award in 1977, D.T. was also very involved in the Houston local chapter where he served three times as president. In recognition to all his dedication, he was inducted into TIADA’s Hall of Fame in 2007.

888.368.4689 www.txdmv.gov

Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov

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

NIADA 800.682.3837 www.niada.com

REPOSSESSIONS American Recovery Association 972.755.4755 www.repo.org or contact TIADA state office

FORMS Burrell Printing 800.252.9154 www.burrellprinting.com

March 2020

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D.T. will be greatly missed by many, including fellow former TIADA presidents. “There has never been a better gentleman and leader than Mr. Mosley was during his time,” said Lee Helstrom. That’s a sentiment also shared by Keith Hagler “He was a strong leader that helped shape the association into what it is today.

He was particularly supportive of and looking out for the small dealer,” Hagler added.

George Karlen fondly remembers his friend, “D.T. encouraged many dealers to be more active in both the state and national associations. He was a mentor to me and mainly responsible for me becoming an NIADA President. There was not an association task too big or too small for D.T. to handle, he never said no. As part of our TIADA and NIADA family, he will be greatly missed.”

D.T. was 96 years old.

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legal corner

Sales Tax Audits Turn Up Dealer Issues

by Michael

F

or some Texas dealers, the appearance of auditors from the state comptroller’s office at their dealerships is a rare and frightening experience. Much attention has been paid to coming into compliance with seller finance issues because of frequent examinations by the Office of Consumer Credit Commissioner (OCCC), and, to a lesser extent, visits, letters or calls from the Motor Vehicle Division.

In fact, the emphasis on meeting compliance issues being looked at by the OCCC and MVD has caused many dealers to forget — or to at least put on the back burner — issues raised by motor vehicle sales tax and the state’s limited sales tax. The current sellerfinance sales tax scheme has generally made payment of motor vehicle sales taxes a painless, routine procedure. It is because the administration of deferred sales tax has become so simple and so automated that some of the finer points of motor vehicle sales tax and nonmotor vehicle sales tax may have been overlooked by dealers in recent years.

Recent reports from dealers indicate that comptroller office auditors are more aggressively checking dealers who defer sales taxes, looking for actions (or lack of action) that would result in acceleration of sales tax. So assuming a dealer has bought into the deferred sales tax system, and has been diligent in filing reports and paying the prescribed amounts, what are the areas that could still prove troubling in an audit?

The Sixty-Day Rule

As part of the negotiations with the comptroller when sales tax reform was obtained, it was agreed that a dealer March 2020

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would have to transfer title to a vehicle in order to take advantage of sales tax deferral and avoid having to front the total sales tax. Initially, the comptroller’s office wanted to tie transfer to a 20-day limit.

We were able to convince the powers that be, however, that there are some occasions when title certificates get hung up and immediate transfer is impossible. Agreement was finally reached that the right to defer sales tax on a vehicle would be waived if the title wasn’t transferred within 60 days of the date of sale (this time limit only applies to taxation and doesn’t affect other areas of the law that address when titles must be transferred). The tax auditors review transfer statements and compare the date of sale to the date of transfer for determining if any 60-day transfer violations have occurred. Where violations are found, sales tax is accelerated retroactive to the 60th day, and sales tax on the original cash price is assessed (less credit for amounts paid on the account).

Additionally, penalties and interest are added that could conceivably double the assessment.

At one time the requirement that dealers provide proof of liability insurance at the time of transfer prevented some timely transfers. Buyers were instructed to come back with proof of insurance, but failed, leaving dealers unable to timely transfer.

Dunagan

W.

TIADA GENERAL COUNSEL

The tax auditors review transfer statements and compare the date of sale to the date of transfer for determining if any 60-day transfer violations have occurred.

That requirement was later (as a result of legislation promoted by TIADA) removed from dealer transfers. However, some dealers are reporting that the one-sticker registration/inspection system has created a new obstacle. Again, some buyers are not bringing their vehicles back for inspection and pollution testing, holding up transfer, which not only could create a 60-day-rule issue, but result in a DMV violation for late transfer. The lesson to be learned from these experiences: Every effort should be made to complete all 9

pre-transfer steps before delivery of the vehicle.

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

April 6 From Inventory Acquistion to

Tracking Service Department Metrics: Getting and Selling the Right Vehicle is the Bottom Line Auto Liquidators 720 N. Watson Road Arlington, TX 76011

May 18 Keeping Your BHPH Dealership Legal and Compliant Holiday Inn Downtown Marina 707 N. Shoreline Blvd.

Corpus Christi, TX 78401

June 8 Cashflow, Budgeting, Forecasting,

Sales and Collections – Critical Topics for the Success and Continued Growth of your Business Houston, TX

Understated Sales Price

Dealers are required to handle the transfer of title and sales tax collection on all sales they make, including cash sales (the exception being outof-state sales).

Auditors will compare the sales price on contract documents against the amount declared on the transfer document. We have found that the switch to deferred sales tax has removed any incentive for buyhere-pay-here dealers to fudge on sales prices, and most violations in this area are committed by individuals and curb stoners. Also, auditors will look at dealer transactions involving a tradein where a trade deduction from sales price has been made. Auditors verify that (a) the vehicle actually existed; (b) the vehicle was brought into the dealer’s inventory, and (c) the correct value of the trade-in was properly reported. And while other types of property can be accepted in trade, only a motor vehicle trade can be used to reduce the taxable value.

Cash Sale Transfers OTHER TIADA EVENTS April 2 0 TIADA Board of Directors Meeting Austin, TX

August 1 6 TIADA Board of Directors Meeting San Antonio, TX

1 6 - 1 8 TIADA Conference and Expo

J.W. Marriott Hill Country Resort and Spa San Antonio, TX

Dealers are required to handle the transfer of title and sales tax collection on all sales they make, including cash sales (the exception being outof-state sales — see below). Auditors are looking for evidence that the dealer simply signed off on the title certificate and gave it to a cash buyer.

(Also, county tax office personnel are on the lookout for dealer sales being handled by non-dealers and will report such transactions to DMV.)

Sales or Assignment of Contracts

In order that deferred sales tax would apply only to seller-financed 10

transactions, and not to third-party financing (both direct and indirect), the comptroller insisted on inclusion of a “due-on-sale” provision when deferred sales tax was created. Thus, if dealer paper is sold or assigned to a third party (other than a related finance company), all sales tax is immediately due and can no longer be deferred. Auditors are looking for evidence that a contract upon which a dealer is continuing to defer sales tax has been assigned.

For an assignment of a contract to a related finance company (that is, one with at least 80 per cent common ownership between the dealership and the finance company) to fit within the exemption to the acceleration rule, the RFC must hold a permit from the comptroller’s office. Form AP-222-1 must be filled out and filed. Because of legislation promoted by TIADA and approved by the comptroller’s office, a $600 annual fee is no longer required, and permits no longer have to be renewed each year.

Dealers can pledge their receivables as collateral under the terms of financing arrangements without triggering acceleration. Care should be taken to ensure that lender financing documents don’t refer T e x a s

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to the pledge of receivables as an “assignment” and any language stamped on retail installment contracts to advise third parties of the lenders interest should also avoid the word “assignment.”

Use of Resale and Out-of-State Certificates

Everyone knows that sales of vehicles to other dealers are exempt from sales tax. However, the Comptroller of Public Accounts has put dealers on notice that auditors will not automatically recognize a wholesale transaction as tax-free.

The seller must obtain a resale statement from the buyer in order to avoid being assessed tax.

The form promulgated by the comptroller’s office for use as a resale statement can be obtained from the comptroller’s website (the back side of form 01-339). The absence of such a statement could result in assessment of sales tax on the transaction, with the statutory penalties and interest. The use of “blanket” resale certificates for multiple sales to the same buyers has been approved by the comptroller and the contents of resale certificates can be incorporated onto other sales documents.

Wholesale auto auctions typically have blanket certificates signed by buyers to assist auction consignors.

Another sales tax exemption that dealers could come across is for vehicles that are sold for out-of-state use.

For instance, if a Texas dealer sells a vehicle to a New Mexico resident who is taking the vehicle directly to New Mexico to register, no Texas sales tax is due. The dealer must, though, obtain a statement to this effect from the buyer to avoid being assessed with tax upon an audit. While the seller is not responsible for the truthfulness of contents of the statement, some evidence, such as a copy of the buyer’s out-of-state driver’s license, should be kept with the statement to demonstrate good faith.

All resale and out-of-state delivery statements should be kept for March 2020

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at least four years in case an audit is performed.

Sales Tax on Repossession Fees

According to Comptroller personnel, charges for collection and repossession services are taxable charges.

Repossession agents are obligated, under the Comptroller’s interpretation of the law, to obtain a sales tax permit. They then are required to collect sales tax on fees billed to

vehicle lien holders. Repossession agents are then obligated to file periodic tax returns and remit the amount of tax collected to the state.

The pertinent provision of the Tax Code makes “collection fees” taxable. While there is no definition in the Tax Code of collection fees, the Comptroller has defined the term in its administrative rules to include repossession services.

Under another section of the Tax Code, the Comptroller can

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assess unpaid taxes against the user of taxable services when tax is not collected and paid.

Thus, dealers have been assessed for sales tax not collected and paid by their repossession agents.

The Comptroller’s Office has begun assessing dealers for sales taxes on repossession fees that they claim should have been collected and paid by repossession agents. Auditors have been going back four years in determining how much the audited dealers owe.

A dealer (or any other lien holder paying repossession fees) can protect himself or herself by (1) demanding that repossession agents have sales tax permits and add tax on all invoices; or (2) calculating the tax and paying it directly to the comptroller on the dealer’s sales tax return. (This tax applies to the Limited Sales Tax on general merchandise and services; not motor vehicle sales tax which is a separate tax.)

Those lien holders who already hold a limited sales tax permit (used for parts and other merchandise sold) can add the tax on the “taxable purchases” line of the limited sales tax return. By paying the tax, lien holders can avoid interest and penalties that would be assessed if unpaid tax is discovered on an audit.

Of course, repossession agents have primary responsibility for the tax, and are subject to assessment and penalties if they are audited. Dealers, however, are easier targets for auditors and

...the Comptroller can assess unpaid taxes against the user of taxable ser vices when tax is not collected and paid. Thus, dealers have been assessed for sales tax not collected and paid by their repossession agents.

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

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will likely be the focus of collection efforts.

Sales Tax on Tracking Devices

Recent audits of BHPH dealers have turned up the fact that GPS tracking devices and airtime charges are considered by the comptroller’s office to be a taxable purchase by dealers.

Some suppliers are not collecting and remitting sales tax, which would make the dealer vulnerable upon audit. The comptroller’s office considers tracking devices to be purchased for the ultimate use and benefit of the dealer, unlike parts that are installed on a vehicle that enhance the value of the vehicle. Tax on tracking devices can be handled by dealers under the same options as repossession fees.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 40 years. He has written a number of books and hundreds of articles for trade journals and law reviews.

His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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Dallas-Ft. Worth Metroplex

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

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

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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.

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

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March 2020

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$AVE : $100

Longview ALLIANCE AUTO AUCTION LONGVIEW

Houston ADESA HOUSTON

www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030 GM: Angela Williams Wednesday, 9:00 a.m.

$AVE : $200

AMERICA’S AA HOUSTON

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

$AVE : $200

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

$AVE : $200

AUTONATION AUTO AUCTION - HOUSTON www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 822.905.2622, Fax 281.506.3866 GM: Juan Gallo Thursday, 6:00 p.m.

$AVE : $200

HOUSTON AUTO AUCTION

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

$AVE : $200 March 2020

IAA HOUSTON*

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

$AVE : $200

IAA LONGVIEW*

www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248, Fax 903.553.0210 GM: David Cooper Thursday, 9:00 a.m.

$AVE : up to $200 Sell Fee

Lubbock IAA LUBBOCK*

www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 GM: Lori Davee Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

TEXAS LONE STAR AUTO AUCTION** www.lsaalubbock.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 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

Midland Odessa IAA PERMIAN BASIN*

www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277, Fax 432.366.8725 GM: Christopher Rogers Thursday, 11:00 a.m.

$AVE : up to $200 Sell Fee

ONLINE ACV AUCTIONS**

www.acvauctions.com 800.553.4070

$AVE : $250

San Antonio ADESA SAN ANTONIO

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

$AVE : $200

IAA SAN ANTONIO*

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

$AVE : up to $200 Sell Fee

MANHEIM SAN ANTONIO**

www.manheim.com 2042 Ackerman Road San Antonio, TX 78219 210.661.4200, Fax 210.662.3113 GM: Mike Browning Wednesday, 9:00 a.m.

$AVE : $100

SAN ANTONIO AUTO AUCTION**

www.sanantonioautoauction.com 13510 Toepperwein Rd. San Antonio, TX 78233 210.298.5477 GM: Brandon Walston Tuesday, 10:00 a.m. / Thursday, 1:30 p.m.

$AVE : $200

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

$AVE : $200

Waco ALLIANCE AUTO AUCTION WACO

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

$AVE : $200

15

16

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March 2020

M

Local Chapters

ber s h m i e

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

2020

p

membership corner

Goal for2020 1303

CORPUS CHRISTI

EL PASO

1250

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

1150

FORT WORTH

1300

1100 1000

Currently 958

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

HOUSTON

900

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

L

et’s make the first year of the new decade a goal-crushing one, shall we? As you know, the strength of your association depends on the size of its membership.TIADA wrapped up 2019 with 1,277 members, and we want to invite each of you to help TIADA not only reach but surpass its goal of 1,303 members for 2020.

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

How Can I Help Strengthen My Association?

It’s simple — invite other independent dealers to get involved with TIADA.

Perks of Helping to Strengthen Your Association

The most important benefit is that each member who takes part in TIADA helps strengthen the voice of the independent automobile industry at the state Capitol and beyond. See page 19 to view some of the other benefits of inviting new members to TIADA.

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

See Results

Check out the latest progress each month by following TIADA on Facebook. @TXIADA #2020Goals To learn more, contact the state office: 512.244.6060 or email: membership@txiada.org.

March 2020

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23

LOCATIONS

BUY ONLINE AT www.AmericasAutoAuction.com

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

4

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

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

Austin

LOCATIONS IN TEXAS

Dallas

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

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

TUESDAYS & THURSDAYS AT 1PM

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

THURSDAYS AT 1:30PM

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

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

North Houston

MONDAYS AT 6:30PM

1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

JUST GET ONE

Take the Recruitment Challenge in 2020!

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 2021 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 2020 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 Auction App turns your phone into

CASH

*

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

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

board of directors meeting minutes January 20, 2020 Aloft at the Domain | Austin, TX

compiled by Texas Dealer staff

Members Present

Robert Beck, Mark Jones, Juan Sabillón, Ryan Winkelmann, Chad Lancaster, Greg Reine, Greg Phea, Robert Blankenship, and Armando Villarreal.

At its meeting on Monday, January 20, 2020, TIADA took the following actions: President Robert Beck called the meeting to order at 12:57 PM

Minutes of Last Meeting

Secretary Ryan Winkelmann presented the minutes of the last Board of Directors Meeting.

A motion was made to accept the minutes.

The Board entered Executive Session at 3:08 PM. The Board returned to regular session at 3:12 PM. No action was taken during executive session.

Special Projects Manager Teresa Orkun presented a report on membership renewals and auction app.

Jeff Martin and staff updated the board on the association’s progress on the Five-Year Strategic Plan.

Director of Associate Member Relations Patty Huber presented a report on Associate members activity.

Mark Jones presented the FY20 budget on behalf of absent Treasurer Eddie Hale.

Old Business

Moved by Mark Jones, seconded by Greg Reine – PASSED

Paying back the reserve fund was tabled again until pre-licensing education path is more certain.

Treasurer’s Report

New Business

Mark Jones presented the treasurer’s report on behalf of absent Treasurer Eddie Hale.

A motion was made to accept the report.

Moved by Greg Phea, seconded by Bob Blankenship – PASSED

President’s Report

Robert Beck talked about upcoming meeting in San Antonio with Congressman Henry Cuellar. He noted that he will attend the NIADA Leadership Conference in early February. Attendees reported on their member outreach calls.

Executive Director’s Report

Executive Director Jeff Martin reported on staff changes at TIADA as well as a change in accounting firms. He provided a legislative update. He reported on the ad hoc CPO Committee Meeting.

March 2020

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A motion was made to accept Williams and Stazzone in the business partner program, contingent on signature by both parties. Moved by Robert Blankenship, seconded by Ryan Winkelmann – PASSED A motion was made to adjourn the meeting.

Moved by Juan Sabillón, seconded by Greg Phea – PASSED Meeting adjourned at 5:07 PM. Respectfully submitted, Ryan Winkelmann 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.

21

ATTENTION STUDENTS!!!

$1,000

Marvin Norwood Scholarship DEADLINE

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

Date: Name:

DOB:

Address: City:

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

Telephone Number: High School Last Attended: Address:

3. Each applicant must complete the application form.

Date of Graduation:

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

Other High Schools Attended (Names and Addresses):

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).

Zip:

Email:

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

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.

22

SCHOLARSHIP APPLICATION

City:

State:

Zip:

Dates of Attendance:

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

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

State:

Zip:

Sponsor Signature Should you have any questions, please contact TIADA at 512.244.6060. Please return the completed application with all required documents to: TIADA Attention: Scholarship Applications 9951 Anderson Mill Rd. Suite 101, Austin, TX 78750

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March 2020

awards and scholarships The Rundown

compiled by Texas Dealer staff

Quality Dealer of the Year Award

T

he Texas Quality Dealer of the Year designation is the highest honor awarded to a TIADA member each year. The association will recognize our state Quality Dealer at the conference in August. The candidates for this award should demonstrate exceptional business ethics, professionalism, service to TIADA, and all-around good citizenship. The TIADA winner will be eligible for the National Quality Dealer Award which will be presented at the NIADA Convention next year. Nomination deadline for 2020 is May 1st.

Independent Award

T

he Independent Award is given to an individual outside of the industry (ie. politicians, media members, non-industry supporters) who have gone above and beyond in their support of the industry showing a true independent spirit. Nomination deadline for 2020 is June 1st.

Nominations for these awards can be done online.

Visit txiada.org for more information and to submit your nomination. There you can also find the application for the Marvin Norwood Scholarship.

ATTENTION

STUDENTS!!!

$1,000

Marvin Norw ood Scholarship

The Marvin Norwood Scholarship

DEADLINE

May 11, 202

I

n 2015, our academic scholarship was formally renamed the Marvin Norwood Scholarship in honor of Hall of Fame inductee Marvin Norwood from Abilene Auto Sales. Marvin, who passed away in 2013, was an avid supporter of the scholarship program. $1,000 in financial assistance will be awarded to a deserving applicant who is entering or currently enrolled in an accredited college or a trade school. Application (facing page) and required documents must be received by May 11th.

0

{Applications documents and/or any required received after will NOT be May 11, 2020 accepted.} Criteria and Guidelines 1. Each appl icant must be entering currently enro or lled in an accr college or a trade school. edited enrollment must be inclu Proof of ded with this application.

2. Each appl ican from their TIAD t must provide a lette r A member includes the sponsor that sponsor’s addr phone num ess and ber.

3. Each appl icant must complete the application form.

4. A copy of high school tran required for applicants who scripts is freshmen. If are college applicant is currently enrolled, prov ide college with official tran university impr scripts int.

5. Provide a detailed desc participation ription of in honorary, civic any academic, or extracurr activities in icular colle detailed desc ge. In addition, a ription of high activities is school requ freshmen alon ired from college acceptance g with a college letter.

6. Compose an essay of two typed, double-spacedno more than pages. The essay shou 8 ½” x 11” ld applicant’s relationship discuss the with their TIAD scholarship spon A goals and futur sor, current education relates to the e aspirations as it applicant’s subject/traini ng area.

7. Provide at least two (but than three) no more lette no older than rs of recommendation, one year, from college/high school facu lty, or other appr opriate sour employers related). ces (not

SCHOLARSHI

P APPLICAT

Date:

ION

Name: Address:

DOB:

City:

Email:

State:

Zip:

(You will rece ived email confi

Telephone Number: High School Last Attende d: Address: City:

rmation of rece ipt.)

Dates of Atte ndance: Date of Gra duation: Other High

State:

Schools Atte nded (Names

College(s) you

are attendin

g or plan to

and Address

Zip:

es):

attend for adm

ission:

Parents Nam

e(s): TIADA Mem ber Name (Sp onsor): TIADA Mem ber Compan y Name: TIADA Mem ber Address : City: Sponsor Sign

State: ature

Zip:

Should you

have any que return the com stions, please contact pleted applicat TIADA at 512 .244.6060. ion with all Please required doc uments to: Attention: Sch TIADA olarship App 9951 Anderso lications n Mill Rd. Suit e 101, Aus tin, TX 787 50

NIADA Foundation Scholarships

T

he NIADA Foundation promotes the academic growth of youth throughout the United States and awards scholarships annually in June at the NIADA convention. The competition for all students is judged by Northwood University, who narrows the field of competitors down to four candidates representing each of NIADA’s four regions for the regional scholarship and also selects the national scholarship recipient. Application is available at niada.com and must be postmarked no later than March 9th.

March 2020

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on the cover

by Texas Dealer staff

Best Y ear A

M

A

R

C

H

M

A

D

N

for E

How to Enter:

Select the year you think was the best year for TIADA in each matchup. The option chosen by most members in each matchup will advance. Two points will be awarded for each correct pick in round one, four points in round two, six points for

S

S

TIADA B

R

A

C

K

E

T

the next round, and finally eight points if you select the winner. Complete your bracket and email it to info@txiada.org or fax to 512.244.6218 by March 16th.

We will announce the winner on April 2nd in the weekly email and in the April issue of Texas Dealer.

2004

2008

2019

2015

2005

2009

2018

2014 Champion

2006

2010

2017

2013

2007

2011 TIEBREAKER: How many

2016 Your Name:

24

copies of this issue of Texas Dealer were mailed?

Dealership/Business Name:

2012 Your Email or Phone:

T e x a s

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March 2020

W

e recognize there have been some fantastic accomplishments and victories for TIADA over the past 75 years, but frankly, we had to draw the line somewhere. Also, we tried to create a bracket that included a full decade, but the math was too hard, so we only selected the last 16 years (from 2004 to 2019). Enjoy this trip down memory lane and may the best bracket win!

2004 Vs.

‘04 brings a strong argument with President Gregg Hammit. TIADA celebrated their spring conference aboard the M.S. Celebration — who doesn’t like a nice cruise ship? And, in order to increase awareness of the association, the board decided to implement the use of plaques and window decals for members with the TIADA logo as a symbol of superior business practices, responsible salespeople and honorable procedures.

And speaking of superior business practices, Robert Milligan was named NIADA Quality Dealer of the Year.

2019

This obvious newcomer could make a deep run. Juan Sabillón was elected president and, he along with the association, supported and saw the passage of HB 259 that prohibits named driver insurance policies, an issue that has been a thorn in the side of TIADA for a while.

Required pre-licensing education for auto dealers also passed this year. The jury is still out on how that will do for the industry, but it has been a priority for the association for years. ‘19 also marked one of the all-time largest conference events in the history of TIADA.

2005 Vs.

A year TIADA really had to show some chops as the state started moving away from cardboard tags to the new temporary tags. TIADA helped defeat several bad pieces of legislation until more input and information was available. An education committee was formed to explore prelicensing education of automobile dealers. Bill Taylor was the president in a year that covered a lot of ground, but it’s best known for its defense at the Capitol.

2018

Hello Auction App. ‘18 will be remembered as the year of technology and could make a deep run if the techies have anything to say about it. TIADA introduced the Auction App for smart phones and launched an online portal for members to dispute fraudulent toll charges. Who says you can’t have a victory when the legislators aren’t in town? TxDMV passed a rule that allows customer referral fees. President Greg Zak and the board also celebrated as three Texas dealers were awarded the Crystal Eagle for membership recruitment at the NIADA Convention.

March 2020

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2006

President Mark Brown inherited some uncertainty when halfway through the year he found himself and the board looking for a new executive director. The search eventually landed current Executive Director Jeff Martin and, later this year, TIADA Past President Patricia Harless was elected to the Texas Legislature.

‘06 comes into this tournament saying, ‘All’s well that ends well—who’s next?’

Vs.

2017

Most legislative years have an inherent advantage and ‘17 is no exception. TIADA saw some significant legislative changes that were good for the industry: eliminating fees for registering your RFC and eliminating the notification requirements for doc fees $150 and under.

But you can’t overlook the fact that TIADA’s Robert Blankenship won the NIADA Quality Dealer of the Year.

Also, TIADA elected only its fourth female as president, Kathrine Tolsch, and that alone could move ‘17 past the first round.

2007

‘07 will tell you, there would be no Auction App if there wasn’t a VIP Auction Card first. It was introduced this year and has saved dealers thousands over the years. Anyone with an RFC though will tell you the passage of SB 1617 that allowed a seller-finance dealer to transfer a vehicle to a qualifying RFC without accelerating and paying the tax is a blue blood and no one would be surprised if ’07 doesn’t win it all. Tack on the fact that TIADA worked to stop a bill that would have created hidden liens on the vehicles of parents who were behind on child support and another bill that would have required dealers to complete a detailed description of every vehicle’s condition prior to sale and you can see why this year with Bill Dobbins as president and a strong board will be hard to beat.

Vs.

2016

This year will stay focused on one thing, the highest membership in the history of the association, 1555 to be exact. President Phil Lathrop led the “Just Get One” campaign and man, did it produce! If the highest 25

2007 Vs. 2016

(continued)

membership ever isn’t enough don’t forget these other accomplishments: implementation of the secure dealer reassignment (VTR 41-A), a brand new association website, new logo, doc fee increase to $150 and TIADA’s launch of the online course, “How to Become and Independent Auto Dealer”. No doubt this is the best matchup in the first round.

2008 Vs.

Everyone needs a good foundation and ‘08 started the ball rolling when President Don Fincher and the TIADA board developed the association’s first ever 5-year strategic plan. This year also saw an overhaul of the bylaws and the creation of the TIADA House of Delegates giving more dealers a voice within the association. ’08 could argue nothing else in this tournament would have been possible without the contributions from 2008. Remember, Mr. B won the NIADA Quality Dealer of the Year too!

2015

Legislatively speaking, ‘15 was one of the most wellEPI-TIADAhalf MAR2020.pdf 1 2/2/20 PM rounded years with a little defense and3:27 a little offense,

making it a tough draw in the first round. The passage of HB 2076 slammed the door shut on mechanic’s liens being transferred and then TIADA lobbied to stop HB 2169 that would have required dealers to try to identify defects using the buyer’s guide. Don’t forget, President Brent Rhodes and the board approved the TIADA Business Partner Program that still thrives today. It will take a strong year to knock this one off.

2009

‘09 was the year TIADA started fighting back against mechanic’s liens with SB 543. But if this year goes far it will be because of HB 3097, the bill that created TxDMV and required one independent dealer position on the board. A few other advantages for 2009 include the passage of SB 1235 increasing the temporary tag to 60 days, rather than 21; HB 5230 that exempts a dealer transfer from being blocked because a prior owner had unpaid red-light camera violations; and HB 3621 that removed the $50 cap on the doc fee. A bill that would increase the dealer’s bond to $250,000 was stopped. President Blake Ingram and the board held its first “Day at the Capitol” and ’09 included a new look for the website.

Vs.

C

M

Y

CM

MY

CY

CMY

K

26

T e x a s

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March 2020

2014

President Michael Thomasson and the board oversaw a big move in 2014. TIADA moved from its 800 sqft offices space in Round Rock to a new 2500 sqft office in Austin and that was just the beginning. The first ever TIADA Dealer Member Survey was conducted providing valuable information for dealers, vendors and legislators alike. The association took the lead and stopped a city ordinance in Pharr, TX that would have imposed an inaugural $1,000 licensing fee on each dealer and a $500 annual renewal fee, as well as $25 tax per vehicle sold.

The fear was ordinances like this would spread to other cities. TIADA launched online courses to offer education 24/7, including “An Introduction to Transferring Titles”.

2010 Vs.

The blue collar year if there ever was one. This year must be thinking upset in the tournament with not much flash but a ton of hard work. President Gary Sayre and the board moved TIADA from a traditional Jan–Dec calendar year operation to Sept– August fiscal year and transitioned all memberships to one fixed date January 1st. Other changes include moving to one annual event known as the TIADA Conference and Expo. This was followed by six years of unprecedented growth for the conference in attendance and expo participation. ‘10 will be best remembered though for reaching 1,000 members, a milestone TIADA had not seen since 1997.

2011

TIADA made quite a splash in 2011 during the NIADA Convention. Scott Allen won the NIADA Quality Dealer of the Year award and Don Fincher was elected NIADA President. Those two feats alone could get 2011 to the final four, but add the passage of HB 2357 that reorganized parts of the transportation code, including an update to reflect automation capabilities in systems and payments, and you can see why this year will be hard to beat.

President Chris Knox and the board implemented a reserve policy that started with $15,000. Today that fund has almost $200,000!

Vs.

2012

It seemed small back then, but TIADA joined Facebook, opening a new platform to communicate with dealers. President Scott Allen and the board moved the association toward social media with other social applications to come. TIADA worked with the local IADA’s and introduced a three-tier program that now includes five different local chapters around the state. TIADA also hired Mario Martinez as its new lobbyist and started focusing on growing our grassroots lobbying efforts. If there was ever a year that emphasized team it’s 2012, and that will be hard to beat.

2013

TIADA supported an anti-curbstoning bill that had been a long time coming. The bill allows any peace officer in the state, regardless of location, to take action against a person who is engaged in business as a dealer without a license. Working to defeat HB 3071, a bill that would have allowed a thirdparty company to finance vehicle repairs and would allow a mechanic’s lien to be assignable to that third party, opened TIADA’s legislative eyes and a record 53 dealers attended Lobby Day. TIADA elected its first African American President, Byron Riley, who along with the board, helped TIADA surpass the $1 million revenue mark. If it’s about “show me the money,” 2013 could win it all. If you’re hungry for more, this was the year Keith Hagler became NIADA President.

March 2020

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27

Keep inventory moving with flexible financing.

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

BacklotCars.com/Float

feature

New Salvage Rules for Texas Independent Auto Dealers

by Jessica Cumbee

Regulatory Compliance Attorney

E

ffective September 1, 2019, licensed Texas independent motor vehicle dealers may buy and sell salvage vehicles.

Pursuant to House Bill 1667, a person holding an independent motor vehicle GDN is exempt from the requirement of also holding a salvage dealer license to act as a salvage vehicle dealer or rebuilder or store a motor vehicle as an agent or escrow agent of an insurance company. What does this mean for you? What does this mean for the industry? And how do you remain compliant?

Let us first take a closer look at the types of vehicles to which this new rule applies. A “salvage” vehicle is one in which cost to repair the damage to the vehicle exceeds the actual cash value of the vehicle. A salvage vehicle cannot be registered or operated on Texas roads.

A “rebuilt-salvage” vehicle is a vehicle that was previously salvage but has been rebuilt and will pass a safety inspection. A rebuilt vehicle may be sold to the public, registered and operated on public roads, but the new title will always note the vehicle is “rebuilt”.

A “non-repairable” motor vehicle cannot be operated and will, therefore, never be titled or registered. The only value is for parts. The new rule allows independent motor vehicle dealers to buy and sell salvage vehicles, rebuilt vehicles and non-repairable vehicles, so long as the appropriate disclosures are made, and forms completed.

A salvage brand is typically determined by an insurance company. The example that comes to the forefront of most minds when talking about salvage vehicles is damage after a wreck — mechanical, frame, airbag deployment, etc.

However, many times, vehicles are branded salvage for far more innocuous issues, such as body damage from hail. After hailstorms, entire groups of vehicles have been marked salvage when only one or a few of the vehicles have body damage. Unfortunately, there is no way to distinguish between the reasons for the salvage brand. So how does this impact you?

March 2020

T e x a s

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SALVAGE MOTOR VEHICLE DISCLOSURE Year:_________________ Make:______________________________________ VIN# ___________________________________________________________ I, (Printed Name of Purchaser)____________________________________________ acknowledge that at the time of purchase, I am aware that the motor vehicle is titled on a salvage title; if I intend to lawfully operate the vehicle on a public highway, I am responsible for applying for a title for this salvage motor vehicle through a Texas county tax assessor-collector’s office accompanied by the required forms showing that repairs have been made to the vehicle; I am responsible for paying the applicable fees; and, I may not drive this salvage motor vehicle on a public highway until after a title branded rebuilt salvage and registration have been issued.

Check box only if the motor vehicle is classified as a salvage motor vehicle based solely on FLOOD DAMAGE.

Purchaser’s Signature

Date of Signature

Form ENF-SAL-221 (Rev. 08/16) Page 1 of 1

NOTICE "This is a salvage titled vehicle that cannot be operated on a public highway. If the salvaged vehicle is to be registered in Texas, the purchaser must apply to a county tax assessor-collector's office, surrender the salvage title, submit the required information on repairs that have been made to the vehicle and pay the applicable fees before the vehicle may be titled and/or registered to operate on the public highway."

SALVAGE VEHICLES INCLUDES FLOOD DAMAGED SALVAGE VEHICLES TEX. ADMIN. CODE §§ 221.50, 221.51(a) and 221.51(f).

SIGN FOR SALE OR OFFER FOR SALE

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Before September 1, 2019, a salvage dealer license was required to sell salvage vehicles to the public. There is a myriad of opinions regarding the new rules for salvage vehicles, which have

been expanded to allow independent motor vehicle dealers to sell salvage vehicles as well. But how does this affect you and your business in a practical sense? The sale of salvage vehicles opens another

REBUILT MOTOR VEHICLE WRITTEN DISCLOSURE

(Year)

(Make)

_

(VIN#)

_

"I, (Printed Name of Purchaser)

acknowledge that at the time

of purchase, I am aware that this vehicle has been repaired, rebuilt, or reconstructed and was formerly titled as a salvage motor vehicle."

Name of Purchaser

Date of Signature

Form ENF-MV-RBLT DSCLMR (Rev. 02/17) Page 1 of 1

NOTICE

“This motor vehicle has been repaired, rebuilt or, reconstructed after formerly being titled as a salvage motor vehicle.”

TEX. ADMIN. CODE §§ 215.160 SIGN FOR SALE OR OFFER FOR SALE

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avenue for dealers to serve its customer. Typically, salvage vehicles cost less to purchase at auction; and, therefore, offer a more costeffective product to the end user.

But as any compliant dealer knows, DISCLOSURE IS KING. So, dealers need to ensure that the status of the title is clearly, conspicuously and accurately disclosed to the consumer. We will explore the specifics related to each designation below.

When selling a “salvage” vehicle to the public without repairing it, a dealer must post the required notices in the vehicle’s window and have the purchaser sign the salvage disclosure form, which can be found on the DMV’s website. Note that the purchaser is responsible for submitting the paperwork to the county tax office, and the dealer will NOT issue a temporary tag.

When selling a “rebuilt-salvage” vehicle, a dealer must post the appropriate sign in the vehicle’s window at all times that the vehicle is on the lot, much like the buyer’s guide. The dealer will also have the purchaser sign a separate disclosure and retain a copy in the deal jacket.

The sign and the disclosure can be found on the DMV’s website. The dealer is responsible for issuing a temporary tag for the vehicle.

The sale of a “non-repairable” vehicle is similar to that of a “salvage” vehicle, except the non-repairable vehicle cannot be rebuilt. The required notices and forms can also be found on the DMV website.

For either a salvage vehicle or a non-repairable vehicle, a dealer must first make sure that the vehicle is properly titled in the dealership name. To do this, you must use form VTR-441, Application for Salvage or Nonrepairable Vehicle Title. This form can also be found on the DMV website.

Mark Brown with Red Carpet Auto Sales in Seguin, Texas stated that, while prior to the bill passing he did not frequently encounter issues with salvage vehicles, he does T e x a s

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see an opportunity for himself and other dealers, especially when it comes to vehicles taken on trade.

He stated that approximately three or four times a year he will take a vehicle on trade that has a salvage title, and he was previously forced to wholesale the vehicle. Now, the opportunity to retail the vehicle means more for the bottom line for these vehicles which can be desirable to the public.

While a lower cost vehicle may appeal to your consumers, your lenders and note purchasers may not be so keen on the idea of collateral with salvage titles. Most loan agreements do not allow a borrower to pledge collateral secured by vehicles with salvage titles or allow only a small percentage of the portfolio to be secured by salvage titles. Note purchase agreements typically contain a representation that the titles are clean.

However, these agreements are negotiable, so disclosure is crucial — being forthcoming about your collateral will allow you to negotiate appropriately.

Your ancillary product providers may exclude salvage vehicles from coverage. Therefore, it is important that you familiarize yourself with the terms of the products, including exclusions. If a vehicle is not eligible for coverage due to the salvage branding, your sales staff needs to be aware of this exclusion, and they need to act accordingly so as not to confuse the consumer. Dealers who offer ancillary products and plan to sell salvage branded vehicles should consider researching the possibility of self-funding warranties, collateral protection insurance and vehicle service contracts for these vehicles.

In conclusion, the new rules seem like an overall win for Texas independent motor vehicle dealers. They now have the ability to purchase salvage vehicles at the auctions for sale to the public and March 2020

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retail trade-ins that have salvage titles without applying for and maintaining a salvage license.

While we wait to see what effects the new rules do have on the industry, be sure to familiarize

yourself and your staff with the notices and forms from the DMV website. And be sure to check out TIADA’s blog for more information.

NONREPAIRABLE MOTOR VEHICLE DISCLOSURE Year:_________________ Make:______________________________________ VIN# ___________________________________________________________ I, (Printed Name of Purchaser)____________________________________________ acknowledge that at the time of purchase, I am aware that the motor vehicle is a nonrepairable motor vehicle. This vehicle will never be able to be lawfully operated titled on a public highway of this state or any other state and cannot be registered to operate on a public highway of this state or any other state. Before selling this nonrepairable motor vehicle I must title the nonrepairable motor vehicle into my name.

Check box only if the motor vehicle is classified as a nonrepairable motor vehicle based solely on FLOOD DAMAGE.

Purchaser’s Signature

Date of Signature

Form ENF-SAL-221-NR (Rev. 08/16) Page 1 of 1

NOTICE "This is a non-repairable titled NOTICE motor vehicle that can never be "This is a non-repairable titled operated on a public highway motor vehicle that can never be of this or any other state." operated on a public highway of this or any other state."

NON-REPAIRABLE VEHICLE INCLUDES NON-REPAIRABLE FLOOD DAMAGED VEHICLES TEX. ADMIN. CODE §§ 221.50, 221.51(c) and 221.51(f).

SIGN FOR SALE OR OFFER FOR SALE

NON-REPAIRABLE VEHICLE INCLUDES NON-REPAIRABLE FLOOD DAMAGED VEHICLES TEX. ADMIN. CODE §§ 221.50, 221.51(c) and 221.51(f).

SIGN FOR SALE OR OFFER FOR SALE

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The best dealers in Texas, the best education anywhere.

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feature

5 Best Practices of Lead Follow-Up for Car Dealers This article first appeared on izmocars.com on April 3, 2019

The most important aspect of online marketing is following-up, figuring out what the customers desire, and making it available to them.

O

ne of the biggest objectives of any auto dealership’s online marketing team is to bring in as many leads as possible and add them to the dealership’s CRM system. However, there is a lot more to do if you want your leads to give you their business.

The most important aspect of it is following-up, figuring out what they desire, and making it available to them.

In this article, we’ll share some of the best practices that your vehicle dealership can put to use when performing lead follow-ups, in order to increase the efficiency of your dealership’s business development department and the valuable time of your sales team.

1

Don’t Waste Time. Follow up with a lead who enters your car dealership CRM system as soon as you possibly can, regardless of whether you do it via phone call, email, text message or any other route.

Every lead should be given to a sales staff within the first 5 minutes of receiving them, and the salesperson must follow up with the lead within that time as well.

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This is quite important, since a prompt follow-up signals to the lead that your dealership is eager to do business with them. Calling a lead within 5 minutes of receiving the request gives your auto dealership a much higher chance of booking an appointment and subsequently closing a deal.

In case you can’t connect with them the first time around, don’t give up yet. Send along reminder emails or call them back, but do so in a way that appears to be subtle. Filling up their email inbox or voicemail with spam will repel potential customers.

2

Understand Your Leads. Before attempt-

ing to reach out to a particular lead, ensure that the sales or marketing staff of your car dealership is familiar with all the information that is stored about that lead in the dealership CRM system. Be thorough with details such as their behavior on your auto dealer website, which car or trim level they’ve shown interest in, any specific doubts or questions they have raised, and so on.

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This enables your dealership sales staff to be relevant and to the point when dealing with these prospective customers, and not waste their time by asking questions that have already been answered by them.

3

Never Automate Your Initial Responses. Automated emails in general do

not provide satisfactory answers to customer queries, making them unhelpful for moving the purchasing process forward. Even if it is a tough ask to respond manually to all your leads, segment your leads and respond to the most lucrative ones with a human touch.

This will go a long way in making potential customers feel valued, thereby increasing the chances of them doing business with your auto dealership.

As we mentioned earlier in this article, make sure your car dealership sales staff reach out to your leads within the first 5 minutes. Another important point is to always set an appointment. Don’t be shy about using multiple channels, including phone, text messaging, email, etc., to connect with your leads, as long as your leads aren’t flooded with communication from your dealership.

4

Qualify Your Leads Every Time. This

is probably one of the most important aspects of lead follow-up. It’s perfectly possible to get a

ton of leads to your auto dealership website. However, despite the fact that your dealership’s leads may be prequalified, your sales staff will still be required to take them through the sales process in order to close the sale.

If your car dealership sales and marketing staff skip over this part, you might be throwing away your hard-earned money on fruitless schemes.

5

Offer Different Value Each Time. It’s of

very high importance for a car dealer to offer its customers and leads something of value every single time they reach out to them. This could be an offer for a test drive, an over the phone financing option, a special offer or promotion specifically for them, and so on.

Auto dealers need to use their experience and expertise in order to anticipate what a particular lead will be interested in, depending on their location in the sales funnel. Being repetitive will never work. Always provide them with offers that are appropriate for their stage in the purchasing process. izmocars is the largest international provider for dealer websites and reputation management. We offer Spanish language websites and Buyerater, an In-Dealership review app to dealers in USA. More info at www.izmocars.com

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F&I • Vehicle Service Contracts • GAP Insurance • Tire & Wheel Vehicle Protection Products • Property • Wreckers 2 Car Haulers • Cargo • Dealer Bonds • Personal Lines T e x a s

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feature

Tire Hieroglyphics

by John Goux

images by Matt Crawford

1

T

he Valley of the Kings, Egypt, 1922: Torch in hand, intrepid archaeologist Howard Carter enters King Tut’s tomb and... sees walls covered in indecipherable hieroglyphics. This is pretty much what most of us see when we try to understand the coded information on the sidewall of a modern automobile tire.

Driving in an F1 race, winning the Indianapolis 500, or stopping safely in the rain all require the right tire.

I’m here to act as your personal Rosetta Stone to the mysteries of tire sidewalls. Adjust your pith helmets, and let’s begin.

To demonstrate, I’ll use the OEM tires for Mercedes’s highest volume seller, the GLC300. It comes fitted with Pirelli’s Scorpion Verde, All Season 235/60 R18 tires.

First, 235 millimeters ( 1 ). Why? John Boyd Dunlop, 19th-century Scottish veterinary surgeon, inventor, and maker of rubber devices, invented pneumatic “tyres” for his daughter’s tricycle. Thus, tires were invented

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2

3

using the Queen’s metrics: 235mm is the width of the tread and 60 is the percentage of the tread width for sidewall height. Doing the math, 235x.60 = 141mm tall sidewall. Now you know a quick method to find the height of any tire. Yay, math!

Next, R ( 2 ). More than just a pirate’s favorite letter in the alphabet, it stands for “radial.” Radial means the plies (cords) under the tread are perpendicular to the tire’s centerline and bead. The centerline is, well, the centerline. The bead is the part of the tire shaped to fit the rim and is what holds the tire to the wheel. Don’t hurt your brain trying to picture the geometry. Just trust me on this one.

And 18 ( 3 ), the 18 of R18 is inches. Yes, 18 inches of inner-tire diameter. Why inches and not millimeters? Because wheels made for American cars have their diameters in inches like God intended!

Followed by 103H ( 4 ). This grouping describes tire load and speed rating; 103 means each tire can 35

4

5

carry a load of 1,929 pounds. The “H” means you can safely cruise at a sustained speed of 130 mph on American interstates. Uh... I meant the Autobahn. To learn more, you can research load and speed ratings at www.TireRack.com, keywords “load rating.” For the rest of you, hang in there.

The fun continues with M+S ( 5 ). These letters mean Mud & Snow. “All Season” just wasn’t engineery enough for the slide rules at Stuttgart. So, engineers at Mercedes insisted Pirelli put M+S. It helps the engineers sleep better at Nacht.

Now, the big three; treadware, traction and temperature ( 6 ) in this case, 600, A and A respectively. “TREADWEAR 600” is internal to Pirelli and

means these tires last six times longer than Pirelli’s quickest-wearing tire. “TRACTION A” means the wheels fall into a category occupied by 77 percent of all tires for stopping ability in a straight line in wet conditions. “TEMPERATURE A” means these tires meet the highest standard for heat resistance — which they’d better, since they’re named Scorpion Verdes!

Hey, we’re almost done, and I promise there won’t be a test at the end.

Introducing MOE ( 7 ). Is MOE one of the Three Stooges? Sure, but in this case, MOE means Pirelli manufactured the tire specifically for Mercedes-Benz; the “E” means Extended. MOExtended tires will run flat for 50 miles. You can “see the MO difference” by searching “Mercedes-Benz tire types.” You’ll be treated to a hilarious video about how choosing the right tire for your Mercedes-Benz is like choosing the right track shoe. Evidently, it’s hard to run in flippers!

Some final glyphs ( 8 ): Let’s finish this rubberinfused expedition by holding the light up to a few remaining glyphs. DOT – the tire meets Department of Transportation safety standards for road use. 93 – the Pirelli manufacturing plant. K3 – Pirelli’s internal size code. T899 – Mercedes internal code for tire brand and characteristics. 0219 – the tire was manufactured

6

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8

the 2nd week of 2019. This information is for recall purposes and so the owner will know when the tires should be replaced.

Tut, tut! Now that wasn’t so bad was it? Like Carter, whose lectures ignited the American Egytomania craze, you can now hold lectures at Coffee and Cars

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and start American Tiremania! Or, ply your significant other with this newfound knowledge to help lull them into a good Nacht’s sleep.

This article first appeared in The Star magazine of the Mercedes-Benz Club of America (www.mbca.org).

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Dealer Academy

Presents

From Inventory Acquisition to Tracking Service Department Metrics – Getting and Selling the Right Vehicle is the Bottom Line Presented by Brent Carmichael, Executive Conference Moderator, 20 Groups, NCM Associates, Inc. (with special afternoon guest presenters, auction gurus Wayne Carey and Stacey Enterline and a Dealer Panel) This workshop is uniquely designed to cover the service department essentials that will increase your bottom line. It will include hands-on, interactive training that will allow you to inspect vehicles and learn exactly how to spot the most commonly overlooked types of vehicle damage. You will also find out how these practices are being implemented in various dealerships around the state.

Crowd favorite Brent Carmichael with NCM Associates 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

9:00am - 4:00pm $249 Members, Each Additional $199 (must be from same dealership)

$499 Non-members

Sponsored by:

In the afternoon we’ll roll up our sleeves and follow Wayne Carey and Stacey Enterline, two of the most knowledgeable guys in the nation with a combined 50+ years hands-on auction experience, as they share their insight on: • Identifying frame and structural damage – Actual walk around cars to demonstrate this!

• Learning how to assess vehicle value • Arbitration Rules: Reviewing the NAAA Arbitration Chart • PSI - What is covered and what is not • Auction 101: a) Basic buying tips at auction; and b) Online buying process and procedure Wrap up the day with an interactive Q & A session with a panel of top dealers in Texas that will share how these practices are being implemented at their dealerships and walk you through their process of getting vehicles from the auction to the frontline.

Monday, April 6, 2020 Arlington, Texas Auto Liquidators 720 N. Watson Road | Arlington, TX 76011

www.ituranusa.com

Register online at: w w w . t x i a d a . o r g /e d u c a t i o n For more information or to register over the phone, please call the state office at 512.244.6060

Texas Independent Automobile Dealers Association

feature

Congressman Cuellar Visits TIADA at Manheim San Antonio

by Texas Dealer staff

T

IADA, along with the San Antonio local chapter and the National Independent Automobile Dealers Association (NIADA), welcomed Congressman Henry Cuellar to Manheim San Antonio.

Cuellar, who represents the 28th District of Texas that stretches from San Antonio all the way down to Laredo and McAllen, was on hand to visit with dealers about the industry and to better understand the used car market. “He has been a really good friend to the association,” said TIADA Executive Director Jeff Martin.

“He always wants to better understand our industry.

We go see him every year when we go to D.C. and he always takes time to visit with our dealers about their concerns.”

Congressman Cuellar is the only Texas Democrat on the U.S. House Appropriations Committee. He is also the Vice Chair of the House Appropriations Subcommittee on Homeland Security.

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Cuellar visited the auction on a Wednesday, Manheim’s primary sale day, which gave the Congressman an opportunity to tour the auction and see it in full operation. Manheim San Antonio General Manager Mike Browning said, “It was our privilege to host Congressman Cuellar at the auction today. It’s a team effort when it comes to showing our elected officials the breadth and scope of our industry. Loved partnering with NIADA and our Texas dealers.”

Cuellar visited with approximately 30 independent dealers for about an hour and half. Many dealers who

attended either live in or have a dealership in Cuellar’s district. Shaun Petersen who is the Senior Vice President of Legal and Government Affairs for NIADA was thrilled to see such a great turn out.

“While bringing our dealers to D.C. to visit legislators is important, nothing has a bigger impact than elected officials visiting the dealers at their places of business. Congressman Cuellar has always been a champion of the independent dealer and showing him our industry and our impact on the economy is invaluable.”

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Please Welcome Our Newest TIADA Members DEALER MEMBERS All Star Rent-A-Car Pat Hubbard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5828 Spur 327, Lubbock, TX 79424 Auto Haven Danish Noorani . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1205 W.Trinity Mills Rd Suite 200B, Carrollton, TX 75006 Auto Imports Inc. Bilal Abdallah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1135 Edgebrook Dr., Houston, TX 77034 Auto Liquidators - Cooper Greg Reine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2919 S. Cooper St, Arlington, TX 76015 Cassius Classic Cars & Exotics LLC Eric Evans . . . . . . . . . . . . . . . . . . . . . . . 8333 Oak Country Lane, Mansfield, TX 76063 Cowboys Auto Sales Hosam Adi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4123 Forest Ln, Garland, TX 75042 Houston Used Auto Sales Giwa Moude . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8725 Cypress Creek Parkway, Houston, TX 77070 InterTX Motors Charles Gulledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17794 S InterTX 35, Bruceville, TX 76630 MCMC Make Ready Mark Jones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2424 East Lancaster St, Fort Worth, TX 76103 Texas 5K Motors, LLC John Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3014 Currier Ct, Rosenberg, TX 77471 W G Mokry Auto Sales William Mokry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Eagle Cove, Austin, TX 78734 ASSOCIATE MEMBERS Drive Easy Auto Services Brian Baker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18601 LBJ Fwy, Suite 722, Mesquite, TX 75150 Edward Jones- Stacy Carrington Stacy Carrington . . . . . . . . . . . . . . . . . . . . . . 1400 Preston Dr Suite 275, Plano, TX 75093 HyreCar Inc. Patrick Patterson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3105 Bullock Drive, Plano, TX 75023

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Ignorance is no defense.

Know the law.

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

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

behind the wheel

Martin

In the Next 16 Years

I

hope you have already completed your “Best Year Ever” March Madness Bracket and sent it in to the state office. More importantly, I hope you enjoyed reading it as much as we enjoyed putting it together. It’s a pretty comprehensive look at the last 16 years of accomplishments for the association. OK, comprehensive may be a stretch, but it’s the best we could do in four sentences or less. No doubt there are some earlier years that would rival any year listed in this bracket. Like the year TIADA worked with legislators and the Comptroller to eventually pass the “fair tax” bill and ushered in deferred sales tax. Or the year when TIADA helped form the National Association (NIADA) in an effort to have a voice in Washington D.C. But we couldn’t include every year, so we narrowed it down to the last 16.

Looking back is always fun and well, predictable. But what about looking ahead? Where might the association be in the next 16 years? Your guess is as good as mine.

Will there be more technology? Absolutely. Technology will have a profound impact on automobiles in general and the way we sell them. And what about the association; in two, three or maybe four years will the association still have a paper magazine delivered to your door?

I can see that change happening in the next 16 years for sure. What about legislation, what will the next issue be

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by Jeff

TIADA EXECUTIVE DIRECTOR

and, more importantly, who will be around to make sure it doesn’t go down as one of the worst years ever? There are few certainties when it comes to the future of any association and, for that matter, its success. But member involvement is not only key, it is a necessity to make sure the next 16 years is as successful as the last.

The next 16 years will be met with ups, downs, challenges and struggles. After all, that is what associations are all about.

Associations take on those issues and collectively deal with the challenges facing the industry. So, I can tell you that part will not change. The part that can change is your involvement. If you are not involved, the association will certainly falter.

Successful associations not only need members, they need active members. We have been and continue to be very fortunate with the quantity and quality of leadership in TIADA. We are lucky to have a very active board made up of dealers just like you, and an active number of members who participate on our committees. However, we don’t have everyone. If every member, attended the conference, made a $25 contribution to INDEPAC and recruited one new member just this year, your association would become unmatched in what it could accomplish.

The next 16 years look very bright, as long as you are a part of TIADA. T e x a s

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