Texas Dealer May 2022

Also In this issue:

– Michael W. Dunagan: Deferred Sales Tax Law Approaches 30 – Five Fundamental Components to Sell More Cars in Today’s Market – The Business of Fathers and Sons – One Farm Boy’s Long Lunch with the CFPB: An Imaginary Tale

DRIVE YOUR DEALERSHIP TO

THE NEXT LEVEL

VALUE, BUY, SELL AND MANAGE INVENTORY To learn more, visit ACVAUCTIONS.COM/OHIOADA WITH CONFIDENCE AND TRANSPARENCY AT TIADA BOOTH #819 To learn more, visit ACVAUCTIONS.COM

CAPITAL

TIADA Board of Directors PRESIDENT Mark Jones/MCMC Corporate 264 Exchange Burleson, TX 76028 PRESIDENT ELECT Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 CHAIRMAN OF THE BOARD Robert Beck/Stop N’ Drive Motors 711 N. General McMullen San Antonio, TX 78228 SECRETARY Eddie Hale/Neighborhood Autos PO Box 1719 Decatur TX 76234 TREASURER Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 ICE PRESIDENT, WEST TEXAS V (REGION 1) Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915 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) Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301 ICE PRESIDENT, CENTRAL TEXAS V (REGION 5) Robert Blankenship/Texas Auto Center 6809 Suite B S IH35 Austin, TX 78744 ICE PRESIDENT, SOUTH TEXAS V (REGION 6) Armando Villarreal/McAllen Auto Sales, LLC 4215 S. 23rd St McAllen, TX 78503 ICE PRESIDENT AT LARGE V Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 ICE PRESIDENT AT LARGE V Greg Phea/Austin Rising Fast 8024 IH 35 North Austin TX 78753 TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org

Vo l u m e X X I I / I s s u e 5 / M a y 2 0 2 2

TexasDealer contents

4 Officers’ Message

by Ryan Winkelmann, TIADA President Elect

6 Upcoming Events 9 Legal Corner: Deferred Sales Tax Law Approaches 30

by Michael W. Dunagan

14 TIADA Membership Application 15 Recruitment Challenge 17 Five Fundamental Components to Sell More Cars in Today’s Market

by Bill Elizondo

21 The Business of Fathers and Sons

by Dr. Jeremy Lurey

24 2022 TIADA Conference & Expo 29 On The Cover: ADESA-Carvana Sale Triggers Multiple Implications for Texas Dealers

by Joe Overby

33 O ne Farm Boy’s Long Lunch with the CFPB: An Imaginary Tale

by Jim Rhoads

38 TIADA Auction Directory 43 New Members 43 Local Chapters 45 Behind the Wheel

by Jeff Martin

The TIADA Conference & Expo features roundtable discussions, where some of the top dealers in the state will discuss best practices and share their honest opinions about the industry. See pages 24-28 for more conference information.

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: Stephen Pallas

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

officers’ message

by Ryan

Winkelmann

Growing Up in the Car Business; and How Things Have Changed

N

ot long ago, my 15-year-old stepson asked if he could work one Saturday at the dealership to earn some extra money. For the past year or so, I’ve slowly introduced him to some of the work within his current skill set and asked other employees to help coach him through various tasks. Tasks include rinsing off the front-line inventory, fueling vehicles, airing up flat tires, cleaning the office, and keeping the parking lot picked up. Recently, he has progressed into changing batteries and learning about chemicals used for washing cars — Porter position 101.

I’m actually doubtful that he has any real interest in the business itself, and I honestly don’t plan to encourage him towards it unless that changes. However, I plan to involve him in every department of the business, so he can better assess his options here and any other opportunities that may present themselves as he gets older. While having lunch together that same day, I mentioned that I felt it was important for a business owner to know how all departments in their business operate from the ground up and that, for most people, the hands-on approach works best. Also, I told him that it was the only way to properly manage people working within those departments and create policies and procedures that would work within those departments.

While discussing his progress so far, and what else would be expected of him for that day, I began to think about what I had learned about the business at his age and how drastically things have changed since that time. I also thought about the word itself, “change.” It was honestly not something that I had given much consideration or preparation for when I

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BJ’s Autohaus (Houston) TIADA PRESIDENT ELECT

became the owner of my business. Over the past few years, I have learned that knowing how all departments in your business work is equally as important as knowing when change is needed so they can continue to work.

In 1992, my introduction to the business was exactly what you’d expect from a Baby-Boomer father to his Generation X son. It wasn’t a very enticing beginning to the business, to say the least. One of my first memories from those days was being sent across town to purchase a used alternator from a local salvage yard.

I arrived when all of their parts pullers (employees who remove the used parts from the vehicles) were at lunch. I used their phone and called my dad to inform him that I’d be returning late, and he told me to ask them for some tools, go find the car, and pull the part myself. I was actually led right through the break area, where all the parts pullers were having lunch. I borrowed one of their tool bags and headed out to the swamp-filled yard full of cars to retrieve the part. I was on crutches from a recent surgery, I might add. It honestly didn’t even cross my mind what I must have looked like when I returned to the office to pay for the part, an 18-year-old kid approaching on muddy crutches while holding the part in one hand and their tool bag in the other, all while managing to walk on crutches using my pinky fingers to hold the handgrips.

During that time, new car parts were tough to get delivered, much less used ones for a dealer on a budget. You had to call a large number of salvage yards for the correct part. If you had good business relations with one, they would run the part on their hotline, a speakerphone system connecting all local salvage yards T e x a s

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24–26 TIADA Conference and Expo Kalahari Resort Round Rock, TX

6

in the area, and whoever picked up and claimed to have the part would chime in as such. Then you’d be sent across town, using a keymap most likely to guide you there and hoping they were right.

Our DMS at the time was an actual program that was loaded onto our computers. The data collected each day on that system had to be manually backed up onto floppy disks and were so valuable that we kept them stored in the safe with our cash deposits in case the computer ever crashed. Our paper contracts were purchased from a printing company and loaded into a Dot-Matrix printer with our fingers crossed that it didn’t jam or print off-line. We called delinquent customers at their place of employment or any of the other 15 references required and verified for the loan.

We paid “skip-tracers” and “doorknockers” to locate those same customers that our repo-man couldn’t find. When caller ID was invented, we registered a business name called “Unavailable,” so that name would show up on the other end of that dedicated phone line when our collectors would make calls.

The full state sales tax was due upon registration when we financed a vehicle in-house. Then if the vehicle was repossessed and resold, you paid it all over again.

Thanks to TIADA for eliminating that one! Our warranties were bumper to bumper on each and every car. When both bumpers made it past the gate on a vehicle’s way out, it was out of warranty.

Customers came to the dealership in person to make their payments by cash, check, or money orders, and we encouraged it as a way to see the condition of our collateral and entice them to trade in when their loan balance was low.

Just reminiscing for those past few paragraphs gave me a headache. In looking back, as a dealership, we embraced all of that older technology way past its expiration

date. I remember saying no to nearly every available tool for advancement in our industry at least 200 times before trying it out. I thought I was keeping the vendors out of my pocket. Still, I was stuck in the why-fix-somethingthat’s-not-broken mindset, while unintentionally overlooking the ineffectiveness of the way we’ve always done it not quite working as well as it once did.

I did that in the past for GPS, CPI, Service Contracts, GAP, DMS upgrades, and even Education, among others. I remember attending a TIADA conference several years ago and meeting a dealer who was one year in the business. His company was more technologically advanced than I had developed in my two decades of experience. I’m sharing this personal reflection because I feel other dealers are possibly reading this that could relate to that delayed approach to continued growth. If what you’re doing now is working, that’s great.

But could you embrace something new that you’ve been avoiding that could ensure it continues to work or even improve?

Having been in this business personally for 30 years now, I’ve watched some great dealers grow their business to a manageable size with no intention of continued growth. I’ve also watched some of those very people go right out of business by simply not embracing the changes needed to maintain what was once perfect for them. I now take a little extra time to evaluate what we are doing, if there is a way to do it better or at least more efficiently. I’d encourage every dealer reading this article to reconsider doing something you’ve recently said no to, possibly just because you didn’t feel like making the change. You never know; it might pleasantly surprise you in the long run.

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legal corner

Deferred Sales Tax Law Approaches 30

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find it difficult to believe that it has been almost 30 years since TIADA succeeded in getting its deferred sales tax bill approved by the Texas Legislature (the bill was passed and signed by the governor in Spring 1993 and went into effect on January 1, 1994).

In an article that appeared in TIADA’s Texas Dealer, a leading industry accountant who handles taxation issues for dealers throughout the nation referred to the deferred sales tax law in Texas as the most favorable sales tax situation for buy-here-pay-here dealers in the country. He pointed to the direct benefit to dealers of only having to remit tax on payments after they are received (and the forgiveness of any balance owed if payments stop) as part of the business environment for Texas dealers that gives rise to envy by dealers in other states.

Since the passage of Texas’ deferred sales tax law, other state dealer associations have sought TIADA’s assistance in crafting their own legislative bills.

To those Texas BHPH dealers who have entered business in the last 30 years or so, the payment of motor vehicle sales tax out of customer payments, and the cancellation of sales tax once those payments stop, is an important part of their business models. It may be assumed by those dealers that things were always so, but that’s not the case. As we approach the 30th anniversary of the implementation of deferred sales tax, it would be fitting to look back on the process

May 2022

Michael W. Dunagan by

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TIADA COUNSEL

As we approach the 30th anniversary of the implementation of deferred sales tax, it would be fitting to look back on the process that got us where we are now. It’s a story of how some dedicated and forward-thinking dealers, working through their association, took on what appeared to be an impossible task and succeeded. that got us where we are now. It’s a story of how some dedicated and forward-thinking dealers, working through their association, took on what appeared to be an impossible task and succeeded.

In fact, prior to passage by the Texas Legislature of the TIADA’s so-called Fair Tax Bill, dealers were responsible for paying the total amount of the sales tax at the time of transfer. And there was no provision in the law for obtaining a refund if a debtor quit paying on the car (there was a bad debt credit available for sellers who financed

things other than motor vehicles).

There were many situations where dealers would front the sales tax money out of the down payments, or their own pockets, leaving nothing for the dealers to reduce their on-the-street risk. When buyers defaulted or skipped on, say, the first or second payment, those dealers were looking at major losses. The bottom line was that many BHPH dealers paid an effective sales tax rate of over twenty percent of all revenue collected from customers.

As an alternative, some dealers 9

would hold off on the transfer (and advancing of sales tax) until several payments had come in, both to cover the sales tax and to establish that the contract would “take.” The problem with this course of action was that dealers would be late in transferring (or, in the case of an early skip or default, wouldn’t transfer at all). This had, up until the late 80 and early 90s, not proven to be much of a problem, other than the fact that the dealer’s lien didn’t get promptly perfected, if at all. At that point in time, the payment of sales tax was the sole obligation of the buyer, and a dealer, as seller, could simply plead that the buyer had not paid the sales tax.

in the mid-80s that would shift the sales tax obligation back to the selling dealer. A provision was inserted that would make a vehicle seller liable unless (1) the title was timely transferred and the sales

History has proven that a dealer association, led by a group of dedicated members, could successfully petition the state government for a redress of an unfair situation.

Making Sellers Liable for a “Buyer’s Tax”

A change in the tax code was initiated by the Comptroller’s Office

tax paid; or (2) the seller delivered the assigned title certificate and a signed transfer statement to the buyer (the requirement that dealers handle the transfer of title on all vehicles sold had not yet come into effect). The comptroller’s

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office thought that BHPH dealers would not deliver negotiable title certificates to customers who had made small down payments. Thus, dealers would be held liable for the entire tax obligation on the sale of the vehicle.

Also, in the early 90s, the Comptroller’s office began conducting intensive audits of BHPH dealers, looking for untransferred sales.

The result was a number of high-profile assessments — some exceeding $1,000,000 — among a number of high-volume dealers around the state. Many dealers were put in a Catch 22-like bind — either timely transfer all sales and advance sales tax and face economic disaster, or continue to pick-andchoose on transfers and face huge tax assessments. One West Texas dealer, who had chosen the second alternative, was actually indicted and charged with felony tax fraud for doing what many dealers around the state were doing (the case was eventually dismissed after the fair tax bill was passed). The future of the BHPH business in Texas began to look grim as dealers feared expanding sales because of the threat of advanced sales tax payments wiping out any opportunity for profit.

In response to the crisis, the late Jim Watson of Dallas, who would later serve as TIADA president, began an effort to have TIADA lead the charge for legislative change.

Watson enlisted the help of Bill Plaster of Dallas to chair a new committee to raise the funds to put together a lobbying program and see to the passage of a “Fair Tax Bill.” Eighteen BHPH dealers got together in Dallas at the initial meeting that Watson called to form the committee. In addition to Plaster, Watson called on Roy Carlson of Fort Worth and Don Fincher of Houston, both of whom T e x a s

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would later serve as TIADA presidents, and Rick Price of Dallas to serve on the committee.

The committee immediately started raising the $100,000 that the initial budget called for. The committee members pledged the seed money to start the effort. Carlson agreed to serve as treasurer and proved to be a very effective fundraiser. Many dealers were skeptical that anything could be accomplished and hesitated to contribute, but Carlson’s credibility and enthusiasm for fund-raising turned the tide. Soon the funds had been raised to actively begin working on a fair tax bill.

For approximately 18 months, the committee met regularly to get status reports and plan the next steps.

By the time the 1993 legislative session began in January, a bill had been filed. Many committee members began making weekly trips to the capital to meet with legislators. Comptroller John Sharp had agreed to appoint a task force that included members of his staff, the Motor Vehicle Division, and TIADA members.

From the task force meetings, dealers began to articulate a fairness argument about how sales tax was paid and worked to convince Sharp and his staff that gross sales tax collections would actually increase with some type of relief from the burden of the current systems.

Several industry insiders and legislative experts assured us that we would never be successful.

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The “Zero Tax” Strategy

An important part of the dealers’ overall strategy was the implementation by a number of dealers of the socall “zero tax” program. Those dealers would register their inventory vehicles in their business name in taxfree “for resale purposes only” transactions at the tax office. When title certificates came back from the state listing the dealer as owner, and vehicles were sold, the dealers would then fill in their liens on the title certificates (at that time, a space appeared on the back of certificates for liens) and deliver the titles, along with filled-out and signed transfer applications, to the debtors with instructions on how to transfer.

Despite the cries of disbelief from some dealers, and the fear that debtors would forge lien releases and obtain free-and-clear titles in their own names, the brave souls who tried out the procedure reported that they had no problems with title theft. What they did report, and what the Comptroller’s office soon found out, was that many of the buyers were not transferring their titles, and the state was receiving no tax revenue on those sales. And, because the dealers had followed the tax code provisions, the dealers were not liable for the tax. The state had no interest in pursuing individual buyers for the tax on single vehicles.

As a side benefit of the “zero tax” plan, those dealers also reported increased cash flow and net profits. Word

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soon spread of the plan’s success, and BHPH dealers from all over the state began adopting their own “zero tax” programs, further impairing sales tax collections by the state.

About this time, discussions within the state’s task force began to move in a positive direction.

Dealers wanted a more fair treatment if they were to be the state’s tax collectors. The state wanted to set up a formal collection procedure that would ensure a steady stream of vehicle sales tax revenue and an audit trail. The focus of the task force became that of achieving both objectives.

A proposal to authorize refunds for taxes paid on written-off debt was initially considered, but the Comptroller’s office felt that setting up a refund system would be expensive and bulky to administrate. Finally, the task force settled on the idea of a pay-as-youcollect system—which appealed

to dealers—and a requirement that dealers would have to obtain a seller-finance sales tax permit and make payments directly to the state — which appealed to the Comptroller’s office.

We also agreed to a provision requiring dealers to handle all transfers, which put an end to the “zero tax” plan. But dealers were more than happy to trade the end of “zero tax” for a fair deferred-tax system.

There was also a “due on assignment” clause inserted into the law, which was designed to limit deferred sales tax to BHPH dealers who owned and serviced their paper. Any dealers who assigned retail installment contracts to a third party (such as a finance company, bank, or credit union) would have to advance sales tax at the time of transfer on point-of-sale transactions or accelerate sales tax at the time of assignment on seasoned receivables. (TIADA has since

resource guide The TIADA Website: www.txiada.org

Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.

License Renewal Certificate

TexasDealerEducation.com

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov 12

Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov

Texas Comptroller

800.252.1382 comptroller.texas.gov

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

sponsored and passed legislation that allows a BHPH dealer to assign contracts to a related entity registered with the Comptroller as a related finance company without accelerating sales tax.)

Another concession the Comptroller wanted was a “drop dead” time limit on transfers that had to be met to defer sales taxes.

It was finally agreed that dealers would have up to 60 calendar days (this time period is unrelated to DMV time limits) to transfer before deferred sales tax would be lost. Sales tax would be accelerated on untransferred sales on the 61st day after the sale to the full amount based on the sales price and due as of that day.

With passage by the legislature and approval by the governor, the Comptroller began setting up the mechanism for deferred sales tax.

TIADA began educating its members on how the system would work. There were some skeptics who didn’t think the new plan would benefit dealers, and many dealers were afraid to make the switch. But I don’t think anyone would now question the wisdom of deferred sales tax for BHPH dealers.

History has proven that a dealer association, led by a group of dedicated members, could successfully petition the state government for a redress of an unfair situation.

Those efforts were rewarded with a new state law that would, in effect, revolutionize the BHPH industry in Texas for generations to come.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 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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feature

Five Fundamental Components to Sell More Cars in Today’s Market!

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ax refunds averaged over $700 more this year than they did last year. Those of us who have been in this business for a while know these are our customers that have filed first, and they are looking to buy a car or make a large purchase with all their newfound money.

Hopefully many of you were able to attract some new customers and capture some of that newfound money.

With vehicles over 30% more than a year ago it an be a challenge. Here are 5 things you should do post tax season to attract customers and keep those new customers you just acquired.

Direction

K now where you want to go. Having a road map and or guide will be essential. Setting specific and early

May 2022

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Featured Speaker Bill Elizondo NIADA

goals is critical for long-term success. You may be able to sell 25 cars a month, but can you buy 25 vehicles a month that fit your inventory?

Branding

M ake sure your branding is “on point” with your message and that it sets you apart from all the other dealerships. Branding properly develops the culture, image, the personality of your business. This will be your message and why a customer will do business with you. After the initial contact, branding will make a lasting impression to revisit or expand your website.

Relationship

W hether you are in retail, buy here pay here, or even the wholesale business, building a relationship 17

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ALLDATA is a registered trademarks of ALLDATA LLC. All other marks are property of their respective owners. All photographic, clerical, typographical, and printing errors are subject to correction.

with your customer increases your odds of making a sale. Every time you say the potential customer’s name, you are helping build that relationship. This is even more important when you are communicating with potential customers on a chat platform.

Most customers will appreciate you communicating

review for you. This will not only continue to grow your business but will hopefully bring in that next customer that reads the review and wants to do business with you.

• A great follow-up to get that “Customer for Life.”

Here are a few ways to keep the loyalty.

Use a Customer

Relationship Manager

with them and thanking them by using their names.

Remember, if they started the sales process by communicating that they don’t want to be sold, they want to be educated and not treated like a number.

Understanding

H aving a good understanding of what the customers are looking for will help you deliver on their expectations. As we have learned, most people will shop online before making a call or sending in their information. They have looked at your website vehicles (Make, Model, Year, Mileage, Price, etc.), so understanding their expectations in advance helps you stand apart from the others. The one thing that might make this difficult in today’s market is the lack of inventory because our customers get sold on one vehicle, and they might not be able to truly afford it.

Make sure you know what features are important to them, and you might have another auto in your inventory that fits their needs and wants.

Constant

O nce you have made the sale, the following will help you continue to build your brand and keep customers coming back to you.

• Always ask for them to do a review for you. You just sold them a new car; they are happy and thankful for the purchase. Have them take 5 minutes while they are waiting for the final paperwork and do a

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(CRM) — The easiest and most efficient way to connect with your potential, current and previous customers.

Offer a Referral Program — Offer ways to have your customers bring you more customers. (Make sure you know the law related to customer referral programs). Call TIADA if you have questions.

Create a Point System or Rewards Program — allow customers to trade out of their vehicle after a certain period of time or skip a payment with so many on-time payments. Reward customers for each referral with a cash bonus or, if that is not an option, to make their payment for them. The options are endless.

Partner with Another Company — Create a way to offer discounts if they do business with a company you already have a relationship with.

Ask for Feedback — Giving your customers a chance to let you know what they liked or not helps you get better, even if it is only their view.

Be Thankful — Send a card to say thank you for the business. Sending a card for their birthday will also solidify that relationship.

Be Honest — This goes without saying that being straightforward in discussing and explaining everything, payments, consequences of missed payments, and your dealerships commitments goes a long way in developing the “Customer for Life.”

Along with a good marketing and advertising initiative, these five fundamental components are easy to establish, implement and build upon. Knowing where you want to go (Direction), who you are (Branding), how you treat your customers (Relationship), your customer expectations (Understanding), and developing Customers for Life (Consistency) will be your guide to sales success!

Bill will be a featured speaker at the TIADA Conference & Expo on Monday, July 25, 2022. To register for this year’s conference, visit www.tiadaannualconference.com.

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Fast-Track Your Finances to Year-End and Beyond Dealer Academy Presenter

in partnership with

Join us for this four-hour event, Collin Kanelakos, CPA, LGT Dealer Services Group lead partner, as well as knowledgeable team members, will be presenting best practices that can successfully build a plan for your dealership to secure your finances and tax benefits to help you grow.

Throughout the presentation we will be presenting on: • Year-End Tax Planning Best Practices for BHPH and Retail-Used Dealers

Collin Kanelakos, CPA LGT Dealer Services Group Lead Partner

Time

9:00am - 1:00pm

Cost

• Managing and Financial Reporting for Growth • Sales and Franchise Tax Best Practices • Succession and Estate Planning for Dealers We will close with a Q&A and Networking luncheon at the end.

Lunch is Included!

$99 Members, Each Additional $49

(must be from same dealership)

$198 Non-members

Tuesday, June 7, 2022 Houston, Texas Maggiano’s Little Italy Memorial City 602 Memorial City Mall | Houston, TX 77024 713.461.0692

Contact patty.huber@txiada.org

for educational seminar sponsorship opportunities 20

To register visit

Txiada.org

or by phone at 512.244.6060.

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feature

The Business of Fathers and Sons

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hen I was 16 years old, I didn’t learn to drive a stick shift from my father. I knew my father could drive a manual transmission, but it was one of my friends whom I asked to teach me — someone I knew wouldn’t get upset with me for grinding the gears or increase the pressure on what was already a stressful learning experience. When I consider the many family businesses I have supported over the years, it’s no different!

Successful Baby Boomer dealers didn’t achieve their success by patiently teaching others what to do. They achieved their success by being driven, results-oriented leaders themselves, striving to accomplish more than those before them. However, this strong character trait often presents itself through a more dominant and autocratic leadership style — one that may work for the Managing Partner of an independent dealership. Still,

May 2022

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Panel Moderator Dr. Jeremy Lurey

Consultant The Family Business Consulting Group

it likely doesn’t work as well when you want to groom your next-generation child to take over as your successor. This is likely why I’m regularly hired by NextGen children to facilitate their transitions rather than the Baby Boomers themselves.

One of the other key challenges with the father/son relationship is the long history these individuals have together. While I did learn to drive a car, I was not a responsible teenage driver. I earned at least a couple of speeding tickets and even got into a couple of minor accidents during my first year of driving. Now imagine if my father ran our family dealership and invited me to work for him. How do you think he would feel about his somewhat irresponsible and overly adventurous son taking the reins? My guess is he wouldn’t have given me the keys to the kingdom before I could demonstrate I had matured — and rightfully so!

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To clarify, not all Baby Boomer business owners are men, and not all NextGen successors are sons.

There are plenty of talented female dealers and NextGen leaders too.

Mothers, however, tend not to be as autocratic or domineering as their male counterparts. Mothers tend to be more selfless, wanting to show support and do what’s best overall for their NextGen children, so the inter-generational tension

is significantly reduced. And any father/daughter relationships I’ve experienced tend to be less adversarial, too, where fathers — perhaps subconsciously — adapt their natural leadership styles to be more effective with their daughters.

So, what do we do to address this inherent tension between fathers and sons, especially during what is already a challenging process of passing the baton from one

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generation to the next? We start by setting clear guidelines and parameters for our NextGen children when joining us in our family dealerships. Don’t just give your sons a job because you want them to become responsible or because they haven’t expressed interest in anything else. That’s a recipe for disaster and simply perpetuates the same parent/child relationship, only now at work.

For our NextGens to step up and learn, we must also consider their present capabilities and performance, not what may have happened years ago. We can’t change the past and remember that those decisions and consequences served as lessons learned. If your son hasn’t been involved in business development and sales, be very clear that he has a gap to close around managing your key customer relationships. Or if your son doesn’t know much about the service side of the business yet, call that out explicitly as an area of focus moving forward.

With that said, NextGens need to take responsibility for their actions and truly demonstrate that they can do more. This can take time, depending on the complexity of your business. It also likely requires a well-defined business succession plan that enables those NextGens to learn all aspects of the business rather than focus on only doing one or two functional things. As highlighted above, only then would I expect fathers to develop a newfound trust for their sons — when they start behaving like leaders and business partners. Then, we can treat our NextGens as equals with a level of respect and appreciation, not treat them like subordinates or question them because of past acts or lack of training.

The following are three key actions fathers and sons can take to facilitate this more collaborative process when transitioning their dealerships: T e x a s

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Fathers —

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Share your plans with your sons and set clear ex-

2 3

pectations for the roles you see them playing in the dealership to continue your legacy.

Proactively promote your sons into positions where they can learn from you, gain your institutional knowledge, and earn greater responsibility.

Listen and be open to your sons’ ideas, enabling them to start contributing to strategic decisions while you are still present to guide and support them.

Sons —

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2 3

May 2022

e respectful of your fathers’ executive positions B and ultimate decision-making power as the ones in charge until you are promoted and assume control.

Learn from and leverage your fathers’ proven capabilities and institutional knowledge as you gain greater exposure to the broader business and across all functions.

Present your recommendations for strategic changes and consider leading discrete innovation projects based on your own market insights and unique perspective as a NextGen to improve the business.

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The answer to addressing the father/son dynamic is, not surprisingly, to stop acting like fathers and sons.

Family is family, but business is business. NextGens need to start taking more initiative and acting like strategic leaders instead of sitting back and waiting for their fathers to tell them what to do, or simply hand over the reins. At the same time, fathers need to recognize that grooming their sons to succeed could potentially be your greatest sign of success and one that can produce even greater results for your family and your dealership well into the future.

About the Author: Jeremy S. Lurey, Ph.D. Dr. Jeremy Lurey is a consultant with The Family Business Consulting Group. With 25 years of progressive experience as a consultant, Jeremy is a talented family advisor and business coach who helps his clients identify their key objectives and take the necessary actions to achieve those personal and professional goals. From Strategic Planning to Succession Planning, he excels at supporting Baby Boomers transitioning into retirement and their NextGen successors accepting increased leadership responsibilities. Jeremy will be moderating and participating in a panel discussion at the TIADA Conference & Expo on Monday, July 25, 2022. To register for this year’s conference, visit www.tiadaannualconference.com.

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A Dealer Driven Event.

July 24-26, 2022

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Eddie Hale & Greg Reine

Neighborhood Autos (Decatur, TX) and Auto Liquidators (Dallas, TX)

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May 2022

on the cover

by Joe Overby

Cherokee Media Group

To say the wholesale market changed in February is a bit of an understatement.

T

hat’s when KAR Global signed a definitive agreement to sell all of its ADESA physical auction business in the U.S. to Carvana for $2.2 billion. The all-cash deal would include all auction sales, operations, and staff at 56 ADESA vehicle logistics centers in the U.S. Carvana would also have exclusive use of the ADESA.com marketplace in the U.S. Carvana said it has committed financing of up to $3.275 billion from JPMorgan Chase Bank N.A.

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and Citibank. It plans to fund the purchase price and another $1 billion in improvements to the auction locations through that committed debt financing.

The companies said approximately 4,500 current ADESA and KAR employees would move over to Carvana once the deal closes. That includes all field personnel supporting ADESA vehicle logistics centers in the U.S., plus corporate employees and select senior and executive leaders who

primarily focus on the U.S. ADESA physical auction business.

The latter includes ADESA’s U.S. president John Hammer, who will move over to Carvana once the deal closes. The ADESA brand will be retained by Carvana. The deal is expected to close in the second quarter.

How a Carvana-Owned ADESA Auto Auction Might Operate

For decades, you could walk into an ADESA facility (or any auto auction, for that matter) and generally know what to expect on sale day.

ADESA currently operates four auctions in Texas (Austin, Dallas, Houston, and San Antonio). A multitude of lanes, each with a block 29

where an auctioneer would call bids, as vehicles would part of what made the companies “a great fit” for each slowly drive through as dealers put in their bids. other, he said.

The auction format has evolved over the years, par“There’s kind of a secular and a cyclical trend going ticularly recently as more wholesaling goes digital or on with auctions. Where secularly, many more compothrough hybrid online-offline formats — a trend-drivnents of auction transactions are happening digitally, en over time by multiple factors. However, it largely even those there’s a very large desire by many customremains among the most significant avenues through ers, both buyers, and sellers, to go actually transact in which used cars are bought and sold wholesale. person,” Garcia said. “And that oftentimes means that February’s news that Carvana would be buying cars can spend less time on the ground at auctions, the U.S. auctions of ADESA, the nation’s meaning that their space can be utilized in second-largest auction company, from other ways.

KAR Global, shakes up the dy“Then cyclically, we’re in a time namics of the auction industry, where auction volume is very low, certainly when it comes to parhistorically low, in fact. And so ticipant makeup of the space. that means there’s a lot of excess “Carvana has already land at these locations,” Garcia mastered the online buysaid. “The average location ing experience for retailis less than 50% utilized toers,” said Carlos Ido of day. meaning there’s a lot of Carnaval Auto Credit in opportunity for us to work Dallas. “They should be together and for these funcable to make the most of tions to co-exist.” this opportunity in the wholesale space, as well.”

Why KAR Decided But what will an ADESA to Sell its ADESA auction look like after new Auctions in the US ownership? With Carvana’s plans It may seem like the digitizato utilize ADESA facilities as both tion of wholesale automotive is inspection and reconditioning at peak intensity. But it’s only centers and auto auctions, these the beginning, says KAR Global facilities would essentially be chief executive officer Peter operating as “two businesses on Kelly. And KAR’s agreement to the same land,” Carvana chief exsell its ADESA brick-and-mortar ecutive Ernie Garcia explained in auction business in the U.S. to an investors call shortly after the Carvana makes the company acquisition was announced. leaner and more financially flex“We’ve got our inspection cenible to capitalize on this increaster capabilities, and we’ve got our ingly digital environment. logistics capabilities that we’ve That was part of the rationale built out over time,” Garcia said.

Kelly and chief financial officer “I think we can go, and we can Eric Loughmiller outlined in an kind of place those on these 4,000 investors call and accompanyacres of land around the country ing presentation slides. With the and operate them very similarly sale of its U.S. physical auctions, to the way that we historically KAR divests a higher fixed costs have. business, the company said. It “And then I think the auction also allows KAR to repay existcan continue to run the way it ing debt, making the company historically has, as well, so it will more financially flexible to inbe business as usual sort of for vest in growth opportunities. ~Carlos Ido, both sides,” he said.

The sale of the physical auctions Where you might see the onaccelerates KAR toward an opCarnaval Auto Credit site integration soon is with erating model that’s more assetDallas, TX ADESA’s retail reconditioning light with lower overhead costs, capabilities, Garcia said. That is it explained.

"Carvana has already mastered the online buying experience for retailers. They should be able to make the most of this opportunity in the wholesale space, as well."

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Additionally, Carvana becomes a new customer for KAR’s digital platform, as KAR would be a technology partner to Carvana, supporting the ADESA.com digital marketplace and the Simulcast and Simulcast+ technology behind in-lane virtual sales run by ADESA and independent physical auctions.

The agreement between Carvana and KAR has the latter providing technology services for seven years and potentially longer.

“It’s our expectation that if we deliver the services, it would go well beyond that, like it does with many of our private label clients and our technology clients,” Loughmiller said.

Lastly, KAR said in its presentation slides that this move “solidifies KAR’s position as a digital marketplace leader with a large and high-growth market opportunity.”

Kelly and his team have long emphasized the increasingly digital nature of wholesaling vehicles, and its customers’ behavior certainly sees evidence of this pattern. Especially among its commercial customers, where consignment has “migrated towards digital channels,” Kelly said. For example, some commercial customers of KAR sold 90% of their volumes last year through its OPENLANE upstream platform.

“We’re seeing a similar trend now occurring perhaps even more rapidly on the dealer consignment side of the business,” Kelly said. “Digital platforms like BacklotCars, TradeRev, and CARWAVE (are) growing strongly, double-digit growth per annum, and shifting more volume and market share towards those digital platforms. “COVID has certainly accelerated those trends. But fundamentally, we still believe we’re in the early stages of our industry’s digital transformation.”

KAR believes it has a large and growing opportunity in this space and will enter the coming years with a simplified, more asset-light, lower-cost business designed to capitalize on digitization.

“Our digital marketplaces provide low-cost, highly efficient venues for our sellers and our buyers to transact. And as we’ve said before many times, we believe that the digital model increases the total addressable market for our services,” Kelly said.

“Our leading digital brands, our platforms, and technology will fuel our growth as this digital penetration continues to increase,” he said. “And that’s going to be the focus of our company, our investments, our products, our operations, and our people. And that’s what we believe will generate the greatest benefits for our customers and ultimately deliver the greatest shareholder value to our investors.”

Carlos Ido said that the deal is a logical step forward in the way the independent automobile industry operates today. “Online buying has obviously accelerated over the past few years,” he said. “Carvana has the May 2022

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capability to improve the auction system as we know it, so it’s in our best interests to stay ahead of the curve and understand what that means for our own business operations.”

How the ADESA-Carvana Deal Impacts Their Competitors

KAR Global’s agreement to sell its U.S. ADESA auto auction business to Carvana has potential impacts on parties beyond those involved in the deal. For example, their respective competitors have various business relationships with the aforementioned companies.

So, what happens to those relationships moving forward? A lot is still to be determined, but here is what some of these competitors are saying thus far, starting with Cox Automotive, KAR’s chief competitor. A company spokesperson said Cox Automotive is not, nor has ever been, an investor in Carvana itself.

However, its Manheim auto auction unit has worked with the online retailer, and the two have been partners, as Cherokee Media Group has previously reported. For example, in late June 2020, Carvana announced that through a partnership with Manheim Digital, it launched an online wholesale platform, CarvanaACCESS, that allows dealers to buy wholesale vehicles directly from the company.

As Cherokee Media Group reported in 2018, the relationship between the companies goes back years — in fact, almost a decade at this point. There’s also an investment and operational lineage between Manheim and the subprime auto finance company, and BHPH dealership chain associated with the origins of Carvana.

So, February’s news that Carvana would be acquiring the U.S. locations of Manheim’s chief rival, ADESA, certainly raises some questions. Will their partnership continue once ADESA’s auctions are under the Carvana umbrella? If so, what would that look like? At this point, answers to those questions and others aren’t yet clear. But the door, it seems, at least remains open.

In a statement provided to Cherokee Media Group, a Cox Automotive spokesperson said: “Cox Automotive is the undisputed leader and has serviced the best interests of all our industry constituents for many decades and will continue to loyally do so. We are advancing on our path to create value across retail and wholesale solutions with innovative open-access products and remain here to serve the broader automotive industry.”

For independent automobile dealers, the acquisition can be seen as an inevitability and an opportunity.

“Many dealers might like to go back to conducting business as we used to,” said Carlos Ido. “But our best bet is to recognize how the market is changing and adapt accordingly.”

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See us in

BOOTH #405 at the TIADA Conference!

feature

One Farm Boy’s Long Lunch with the CFPB: An Imaginary Tale

F

irst, the non-fiction part of this story. I’m a fairly well-known coach in the Buy Here Pay Here (BHPH). I know most of the leaders in the world of self-financing, and they know me. I’ve made professional visits to BHPH dealerships and subprime finance companies in more than half of the US states in my career. I’m a former BHPH dealer who has compassion for the BHPH consumer. Oh, and I grew up on a farm and ranch on the high plains of western Oklahoma, still home to genuine kindness and authenticity. It is also true that the Consumer Financial Protection Bureau (CFPB) is a real agency, though they are often portrayed as having business-crushing powers of mythical proportions.

The following is a made-up, daydream-inspired story.

David, played by me in this fanciful tale, crosses paths with the regulatory Goliath.

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Featured Speaker Jim Rhoads

Founder and CEO Octane Group

Like you, I sometimes allow my mind to wander while at my desk or on a too-familiar stretch of highway. On a few occasions, I’ve entertained a fun narrative where this one-time Oklahoma farmboy meets up with the CFPB. Maybe it’s a sandwich shop in DC with outdoor dining. A chance encounter where I get the undivided attention of the top brass of this agency thought to have its crosshairs aimed squarely at Buy Here Pay Here dealers. I stay long enough to get all my key questions answered and share what I think is important for them to know about BHPH. Let’s imagine that I dispense quickly of any small talk and begin to ask some very pointed questions: “Who is your target?” Or maybe “How do you go about the business of deciding who gets those dreaded audits?” I could ask, “What does success look like to the CFPB?” These are just a few of the things I’d like to know. By the end of the conversation, I’d ask whatever was necessary to 33

clarify motivation and intent. Plus, as someone who has journeyed many miles in those trenches, I’d take my opportunities to express my own thoughts about BHPH dealers and the consumers they serve. I’m uniquely qualified to articulate the very real risk dealers take to provide transportation solutions for “unbankable” borrowers.

As the conversation continued, I’d be thoughtful and artful in my word choices. They’d soon view me as sensible and level-headed. I’d be seen as passionate and, at times, emotional. The emotions run close to the surface with me — not entirely sure why. I only know that I can’t speak to anyone about the too-often-mistreated consumers in the poor credit segment without my throat and voice quivering. It’s genuine empathy for the less fortunate folks in our communities.

Are all BHPH consumers deserving EPI-TIADAhalf MAY2022.pdf

1

4/8/22

of my caring and support? Nope!

But most definitely are. Regardless of their circumstances, they are navigating through life in a difficult place, most living near or below the so-called “poverty line.” Their life is hard enough without being mistreated by unscrupulous creditors. The bad actors are out there in the subprime auto finance sector. I won’t be asking the CFPB for any mercy on those who brutalize consumers in the interest of padding their own pockets. Instead, I’m saving my breath and using my words to defend the “good guys and girls” of Buy Here Pay Here. As a former pawnshop owner and BHPH dealer, I’ve seen the need. I’ve personally taken lots of applications. And I’ve been on-site for my share of repossessions. This means I’ve also seen the cost and risk associated with meeting that need. Now, as an advisor and coach, my wife and I strive

to help dealers provide subprime financing more effectively and successfully. We make the case that having more successful customers means more successful dealerships and dealers. Unfortunately, not all dealers buy into that approach.

As the long lunch continues, I hear the regulatory bosses describe the “target” dealers and creditors in the way I expected. Words such as “abusive” and “predatory” come up.

I acknowledge that those lenders and creditors are out there. I also make a point to speak on behalf of the dealers who aren’t in that group.

I describe the many I’ve met who illustrate day after day that they truly care about their customers.

They offer supportive solutions and give back to their customers and the larger community. And, yes, those same dealers strive to make a profit and generate positive cash flow. They are, after all, a business

3:59 PM

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providing a much-needed service.

They also invest/risk a great deal of capital to do so.

In this imaginary dialog, I turn to one of the gray-suited men and ask, “Where do you live? DC? Inner-city?” He explains that he lives in a large suburban community across the river. “OK, suppose that you put a few of the larger BHPH dealers in your community out of business? Suppose that you did so by directly by fining them heavily or indirectly by regulating their industry in a way that they chose to get out and invest elsewhere?” I pause to let them ponder. “Now, suppose your golfing buddy’s daughter needed help with financing for a car because she just landed a new job about 10 miles from her home. She’s divorced with one kid. The dad’s been no help. Caring for the child alone has made it difficult for her to maintain full-time employment.

She will get her first check on Friday and can manage about $500 for a down payment. Would you loan her the $15,000 she needs to buy a used car?” My well-dressed regulator squirms. “How about $10,000?” I ask. “$5.000?” I let him off the hook. “Don’t answer. I’ve made my point.”

Now, addressing all of them, I explain that it is important for them to remember, as they do their job, that many BHPH dealers are not abusive or predatory.

They are operators who are meeting an important need and, as such, should be better supported by their government on a local and national level. Most of us in the community are not prepared or equipped to meet the needs of poor credit consumers. So, we all should better support those who are willing and able to fill that void. “By all means, penalize the bad actors. Heck, put them out of business! But look to find ways to make it easier for ‘specialty lenders’ to serve their communities.”

May 2022

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O N

D E M A N D

Repossession 101: What You Need to Know

Dealer Academy This is a video course with

Michael W. Dunagan TIADA General Counsel, author of Dealer Financing of Used Car Sales and Texas Automobile Repossession: A Lien Holder’s Legal Guide.

In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of selfhelp repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.

• Preliminary Considerations Before Repossession • When is a Customer Considered in Default • Avoiding Liability from Repossession • Types of Disposition • Required Notices to the Debtors • Handling Personal Property • Using the Courts to Get Your Car Back

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36

www.txiada.org/on-demand for more information.

My wife and business partner, Michelle, and I teach our dealer clients more than Buy Here Pay Here systems and processes. We also weave in some freshman-level psychology. We remind dealers that human behavior is more effectively influenced by reward than it is by punishment.

If this is true of dealers rewarding their customers, it must also be true of regulators looking to influence creditor behavior.

The CFPB’s landing page (www.consumerfinance. gov) expresses a well-intentioned message of being “on [the consumer’s] side through life’s financial moments.” That’s a message this empathetic “farm boy” can get behind. The site also vows to “make sure [consumers] are treated fairly by banks, lenders and other financial institutions.”

Again, as one who advises in the BHPH space, this is a mission I can support wholeheartedly.

Why, then, all the anxiety amongst Buy Here Pay Here dealers? Here’s the perspective of one non-attorney with a cursory view of what the CFPB is charged with accomplishing on behalf of consumers, especially those with limited means of defending themselves. If you’re a BHPH dealer or finance company charging the maximum allowable interest rate, you might just get noticed.

If you are the type of creditor, large or small, who also piles on excessive fees, you might increase your chances of a look under the hood.

Additionally, suppose there is a pattern in your operation of ignoring or putting forth little effort to comply with new regulations intended to protect consumers, and you are quick to repossess. In that case, the bullseye on your company’s chest might be starting to glow. I don’t view it as a hard thing. If you are charging at or near max and can point to almost nothing in the way of goodwill, the CFPB has little reason to keep you in business.

As I snap out of my daydream, I realize that I may never get the opportunity to have that long lunch and express these ideas. Just know that, if I ever do, I’ll be a champion for and voice of the “good guys” along with the good folks they serve.

And I’ll have little sympathy for those who have shown no compassion for the disadvantaged customers they finance.

Jim Rhoads is the founding partner at The Octane Group, a coaching and implementation firm that specializes in launch packages and transformational engagements. In 2021, Jim and Michelle Rhoads launched the BHPH industry’s first online training platform, the BHPH Institute. They will be featured speakers at the TIADA Conference & Expo on Monday, July 25, 2022. To register for this year’s conference, visit www.tiadaannualconference.com.

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Auto Dealer Solutions

DEALER SOFTWARE , WEBSITES & MARKETING

TIADA Auction Directory

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

Abilene ALLIANCE AUTO AUCTION ABILENE

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

$AVE : $200

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

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

IAA ABILENE*

www.iaai.com 7700 US 277, Hawley, TX 79601 325.675.0699, Fax 325.675.5073 GM: Shawn Lemke Thursday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Amarillo IAA AMARILLO*

www.iaai.com 11150 S. FM 1541, Amarillo, TX 79118 806.622.1322, Fax 806.622.2678 GM: Shawn Norris Monday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Austin ADESA AUSTIN

www.adesa.com 2108 Ferguson Ln, Austin, TX 78754 512.873.4000, Fax 512.873.4022 GM: Michele Arguijo Tuesday, 9:00 a.m.

$AVE : $200

ALLIANCE AUTO AUCTION AUSTIN

www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 GM: Geoffrey Rabb Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

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

$AVE : $200

Corpus Christi CORPUS CHRISTI AUTO AUCTION

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

$AVE : $200

IAA CORPUS CHRISTI*

www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880 GM: Patricia Kohlstrand Wednesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

Dallas-Ft. Worth Metroplex ADESA DALLAS

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

$AVE : $200

ALLIANCE AUTO AUCTION DALLAS

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

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

AMERICA’S AA AUSTIN / SAN ANTONIO

AMERICA’S AA DALLAS

$AVE : $200

www.americasautoauction.com 16611 S. IH-35, Buda, TX 78610 512.268.6600, Fax 512.295.6666 GM: Jamie McCollum Tuesday, 1:30 p.m. / Thursday, 2:00 p.m.

$AVE : $200 38

IAA AUSTIN*

$AVE : $200

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

$AVE : $200

IAA DALLAS*

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

$AVE : up to $200 Sell Fee

IAA DFW*

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

$AVE : up to $200 Sell Fee

IAA FORT WORTH NORTH*

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

$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

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

$AVE : $200

IAA EL PASO*

www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489, Fax 915.852.2235 GM: Jorge Resendez Friday, 10:30 a.m.

$AVE : up to $200 Sell Fee T e x a s

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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

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: Brian Wetzel 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: Ben Nash Thursday, 2:00 p.m.

$AVE : $200

AMERICA’S AA NORTH HOUSTON www.americasautoauction.com 1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842 GM: Buddy Cheney Tuesday, 1:00 p.m.

$AVE : $200

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

$AVE : $200

HOUSTON AUTO AUCTION

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

$AVE : $200

IAA HOUSTON*

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 May 2022

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IAA HOUSTON NORTH*

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

$AVE : up to $200 Sell Fee

IAA HOUSTON SOUTH*

Midland Odessa IAA PERMIAN BASIN*

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

$AVE : up to $200 Sell Fee

www.iaai.com 2839 E. FM 1462, Rosharon, TX 77583 281.369.1010, Fax 833.595.8398 GM: Adriana Serrano Friday, 9:30 a.m.

ONLINE

MANHEIM HOUSTON

E-DEALERDIRECT**

$AVE : up to $200 Sell Fee

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 ALLIANCE AUTO AUCTION LONGVIEW 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: Edgar Chavez 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: Chris Foster Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

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

ACV AUCTIONS**

www.acvauctions.com 800.553.4070

$AVE : $250

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

$AVE : Up to $500/month

San Antonio ADESA SAN ANTONIO

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

$AVE : $200

IAA SAN ANTONIO*

www.iaai.com 11275 S. Zarzamora, San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 GM: Paula Booker 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

$AVE : $75/Quarterly

Waco

Lufkin

ALLIANCE AUTO AUCTION WACO

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

$AVE : $200

39

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May 2022

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Booth 310

41

Safeguards Compliance Course Keep Your Dealership Compliant with the FTC's Safeguards Requirements Ensure your staff knows how to protect consumer information to comply with the FTC requirements, avoid inadvertent exposure of your customer's information, government enforcement actions, lawsuits, and bad press.

Brought to you by TIADA. Powered by the Dealer Education Portal.

Visit https://www.txiada.org/on-demand Or scan the QR Code for info and registration

Only $75 for the Qualified Individual Only $49 Each for All Other Employees Sample policies and agreements are included at no additional charge

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Volume purchase discounts available for members

All users earn a certificate upon completion

Please Welcome Our Newest TIADA Members DEALER MEMBERS

Local Chapters CORPUS CHRISTI G.R. Moore

Always A-Way Automotive LLC.

The Car Shack

Arlington Motorsports

(dates announced at

Athena Auto Sales

www.txiada.org)

Darvin Johnson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2555 Walnut Hill Ln., 100, Dallas, TX 75229 Kip Niles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2501 Centennial Dr., Suits 100, Arlington, TX 76011 Maria Diaz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27402 Cypresswood Dr., Spring, TX 77373

Auto Financing LLC

Tony Lester . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Old Coach lane, Elgin, TX 78621

Autos C & R LLC

EL PASO

Avis Car Sales, LLC - Houston

Cesar Stark

Avis Car Sales, LLC - Irving

S & S Motors

Crazy Bobs Cars, LLC

Meeting – 3rd Friday

EJ Motor Company

(Monthly)

Sylvia Reyna . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7919 E State Hwy 107, Edinburg, TX 78542 Geoff Hartman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10050 Gulf Freeway, Houston, TX 77034 Geoff Hartman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1600 E Airport Fwy, Irving, TX 75062 Chris Custer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4300 Sunbelt Drive, Addison, TX 75001 Elizabeth Lopez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 945 E. Henderson Street, Cleburne, TX 76031

Frontera Truck Parts & Equipment, Inc.

Kalien Thomas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3116 S Hwy 77, Waxahachie, TX 75165

FORT WORTH

Steven Kelso . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5202 Bingle Rd., Houston, TX 77092

Jerry Smith

Scott Sniffin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2021 E Bell Road, Phoenix, AZ 85022

H J Smith Automobiles

Sean Lambert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7910 Burleson Rd. Bldg. #2, Austin, TX 78744

(dates announced at

Olumide Popoola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 N Midland Dr, Midland, TX 78703

www.txiada.org)

Kelso Automotive Inc. Lifted Trucks

Moorespeed LLC

Olumighty Auto LLC Prosale Nation LLC

Melinda Ke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1400 Broadfield, #200, Houston, TX 77084

You Drive Auto

Jesse Hernandez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11311 Reeder Rd, Dallas, TX 75229

HOUSTON

ASSOCIATE MEMBERS

April Hanson

Susan Lang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1337 Canton Rd, Suite D, Marietta, GA 30066

Coast to Coast Motors

Nancy Vanderbilt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10514 FM 1764, Santa Fe, TX 77510

Meeting – 2nd Tuesday

Ed Braunbeck . . . . . . . . . . . . . . . . . . . . . . . . . . 2260 W. Henderson Road, Suite 200, Columbus, OH 43220

(Monthly)

Arrow Acceptance LLC

Automotive Aftermarket Services AutoSweet

Heider Marketing and Advertising LLC

Ronald Heider . . . . . . . . . . . . . . . . . . . . . . . . . 4663 Haygood Road, Suite # 212, Virginia Beach, VA 23455

Kinetic Advantage

SAN ANTONIO

Radius Security

Jose Engler

ScoreNavigatorauto.com

Irving Motors Corp

SVR Tracking

(dates announced at

Lori Kahre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10333 N. Meridian Street, Suite #400, Carmel, IN 46290 Sam Alderson . . . . . . . . . . . . . . . . . . . . . . . . . 2211 East Continental Blvd, Suite 160, Southlake, TX 76092 Hoss Williamson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 E Clinton Road, Gray, GA 31032 Michael Langlois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7071 Convoy Ct., 3rd Floor, San Diego, CA 92111

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www.txiada.org) 43

behind the wheel Goal Number Three

T

his month, we continue our explanation of the association’s five-year strategic plan with a look at supporting goal number three. We explained in April how important it is to TIADA’s success that its members are involved in its legislative activities. The same logic applies to all of the other programs we offer as part of your membership. The association relies heavily on its dealer members to serve on our various committees, attend our legislative events and meetings, join us in the annual conference, and participate in our educational offerings.

These membership engagements are the core focus of goal number three.

Goal #3 — Increase dealer member engagement by 20% annually.

A member engagement: O ne person from a dealership participates in a program one time.

I f multiple people from the same dealership participate in the same program, it counts as one engagement.

I f one person or multiple people from the same dealership participates in multiple engagements, it will count as one engagement.

Current dealer engagement programs include:

Jeff Martin by

TIADA EXECUTIVE DIRECTOR

S erving on a committee (must attend at least one committee meeting).

A ttending day at the Capitol or Legislative Day. C ontribution to INDEPAC. A ttending one IDEA Meeting.

R edeeming on auction coupon.

A ttending the annual conference.

A ttending any TIADA hosted education program (not required PLE or CE).

R eferring at least one member to TIADA. C alling the Compliance Consultation Program one time.

O rdering any book offered through TIADA.

STRATEGIC PLAN:

By Year-End FY’22

D efine current dealer member engagement programs and develop a benchmark for dealer member participation in four areas: Governance, Membership Recruitment, Education, and Advocacy.

M easure member renewal rate for each program.

C reate one new dealer engagement program in any of the specified areas.

C reate one new dealer engagement program specific to online participation.

C reate a written marketing plan to increase engagement in each program.

Your association relies heavily on its dealer members to actively engage. Membership engagement is the core focus of goal number three.

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By Year-End FY’23

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D evelop a marketing program that clearly communicates the dealer member engagement opportunities and anticipated growth.

C reate at least one new engagement program focused on dealer education, association governance, and advocacy.

E xplore dealer engagement from non-dues revenue partnering with associate members.

By Year-End FY’24

B ased on the number of dealer members participating in the engagement programs, TIADA will focus its resources on promoting successful programs and creating efficiencies in each program.

E liminate any program that is deemed not successful.

C reate at least one new program in any of the specified areas.

By Year-End FY’25

I dentify dealer member trends within each program.

C reate target campaigns designed to attract dealer members to each program that fits the dealership’s demographic.

C reate targeted campaigns to promote programs to non-members.

By Year-End FY’26

M easure dealer engagement in each of the six regions.

Determine if different programs work better or worse in specific regions.

P lace resources in each region that have not been meeting the 20% annual growth.

Next month, we will discuss supporting goal number four.

© 2022, Agora Data, Inc. All rights reserved.

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

PRSRT STD

U.S. POSTAGE

PA I D

JEFFERSON CITY, MO

PERMIT NO. 210

INTEGRATED INVENTORY SOLUTIONS: MARKETPLACE | ASSURANCE | RECONDITIONING | FLOOR PLANNING | LOGISTICS | DECISIONING

BETTER, FASTER

As the nation’s leading provider of end-to-end wholesale vehicle solutions, Manheim is here to help you be more successful with the in-lane and online tools you need.

We’ll be at TIADA Conference 2022 VISIT US AT BOOTH #319

VISIT OUR TEXAS LOCATIONS Manheim Dallas, Manheim Dallas-Fort Worth, Manheim El Paso, Manheim Houston, Manheim San Antonio, Manheim Texas Hobby