Texas Dealer November 2018 by Texas Independent Auto Dealers Association

In This Issue: – Michael W. Dunagan on Insurance Claims Against Lien Holders – 2018 TIADA Auction Tour – Facebook & Instagram: A Dealer’s Story

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

Volume XVIII

/ I s s u e 11

/ N o v e m b e r 2 018

texasDealer contents

4 Officers’ Message

by Mark Jones, TIADA Secretary

11 Legal Corner: Law Protects Lien Holders in Liability Insurance Claims by Michael W. Dunagan

12 Upcoming Events 18 TIADA Day at the Auction – 2018 Tour 22 2018 Auction App Directory 24 On The Cover: Indisputable Change Coming to the Automotive Retail Marketplace by Peter A. Salinas

31 Facebook & Instagram: A Dealer’s Story by Andrew Street

34 TIADA Member Application 35 Are “Problem Employees” Haunting Your Business? by Lariza Hebert

43 New Members 43 Local Chapters 45 Behind the Wheel by Jeff Martin

Make Your Voice Heard! Join us for 2019 TIADA at the Capitol on February 12, 2019. It is an opportunity for TIADA members to gather in Austin and meet your lawmakers to advocate on behalf of the used car industry. See page 8 for registration details!

The Editor of the Texas Dealer magazine is Michael Spurlin, Social and Communications Director of TIADA. To change your address for subscription and/or for other TIADA products, call the TIADA state office at 512.244.6060 or fax 512.244.6218. E-mail: info@txiada.org. New Membership/Subscriptions: If you are a member of TIADA, you may receive this magazine free of charge. Membership year runs from Jan 1 to Dec 31. Back issues are available for $20 each subject to availability. Send a check or money order, along with your name and mailing address to TEXAS DEALER, Attn: Back Issues, 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750. Sorry, no billing. Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

officers’ message by Mark

Team Texas Travels to Washington D.C. “

eam Texas” was well represented on Capitol Hill this year at the NIADA National Policy Conference. Much appreciation goes out to our Executive Director Jeff Martin as well as the multiple other TIADA members and vendors who took the opportunity to visit and speak face to face with our Congressman and Senators about the various issues that are likely to impact our industry in 2019. For those who were not able to attend this year, I wanted to quickly bring you “up to speed” with a brief summary of the four primary topics that we discussed with our federal legislators and their staffs in Washington, D.C.

TOPIC #1 — Proposed Tariffs On Cars & Car Parts While we agree that the President is correct about addressing trade imbalances, we believe that tariffs on automobiles (and their parts) would cause numerous unintended consequences that would negatively impact used car dealers across the county. Research predicts that the proposed tariffs imposed on imported vehicles could cause new car prices to rise as much as $7,000 and we all know the effect that would have on our used car inventory acquisition costs...

Jones

MCMC Corporate (Burleson) TIADA SECRETARY

MUCH HIGHER! Not only would this impact your dealership’s cash flows, but in the end, the consumers are ultimately the ones paying the extra dollars via higher payments (that most of them cannot afford). We also believe that tariffs placed on aftermarket auto parts would cause our parts prices to rise from between 8–10%. This increase would raise our reconditioning costs, and would potentially make it less likely that customers would be able to financially afford to perform the services and maintenance on the vehicles that many dealers sell and finance.

Summary

Higher vehicle prices combined with higher service and repair costs equals a much greater risk for used car dealers. Therefore, our Association is OPPOSED to these proposed tariffs.

TOPIC #2 — Making Tax Cuts Permanent (Tax Reform 2.0) A recent index conducted by NIADA overwhelmingly showed that independent dealers business confidence has increased since the passage of the Tax Cuts & Jobs Act in late 2017. By making the pass-through tax cut permanent, (cont’d on pg. 6)

My hope is that every member realizes the importance that our Association’s voice and advocacy efforts has on the outcome of legislation (both in Texas and on Capitol Hill). 4

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November 2018

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Officers’ Message (cont’d from pg. 4)

small businesses will now have certainty as they consider future capital investments, hiring of new employees, wage increases, and other plans to grow their business. The proposed Tax Reform 2.0 would also make perma nent the reduction of the individual tax rates (currently set to expire in 2025) and would allow for small businesses and associations to band together to offer better retirement plans to their employees at lower costs. As well, it also provides a tax deduction for startup businesses to help break down the barriers to short term survival. The nonpartisan Tax Foundation estimates that the passage of this bill will create an additional 1.5 million jobs to what is currently the lowest unemployment rate we have seen in decades. Combined with estimated wage increases of around 1% and an increase of over 2% in the long-run GDP.

Summary

Making these tax cuts permanent would allow dealers to plan long term and potentially be more competitive hiring and retaining quality employees because of the ability to provide more attractive retirement plans. Our Association SUPPORTS the Tax Reform 2.0 proposal.

TOPIC #3 — Used Vehicles with Open Recalls Once again this year, we spent time explaining and educating our legislators on the effects that overbroad legislation would have on our industry if dealers were prohibited

from selling used vehicles with open recalls. We believe a bill like this would not only be harmful to independent dealers, prohibiting the sales of these vehicles would also lower consumer’s trade-in values if they own a vehicle with an open recall. Our position is that prohibiting the sale of open recall vehicles will NOT increase recall completion rates. We see on a daily basis that it is the lack of parts availability that prevents the repair of recalled vehicles, not lack of effort. Making sure that we notify consumers at the time of sale if an open recall exists is certainly considered best practice.

Summary

There is not currently a bill in Congress proposing the “grounding” of open recall vehicles, however, we felt it was important to discuss the potential economic consequences to our industry directly with our representatives in the event such a bill is introduced. We would obviously be OPPOSED to any such bill.

TOPIC #4 — Reforming the CFPB Although the Consumer Financial Protection Bureau may have lost some power and momentum under the current White House administration, they obviously still exist and potentially could regain strength depending on our elections over the next couple of years. Our position is simple, let’s not miss the opportunity to make changes while the possibility exists. We propose that the CFPB needs to be restructured to be more accountable to both Congress and the public by creating a 5-member, bipartisan commission with a budget that is subject to Congressional appropriations.

Summary

The vast majority of lawmakers that we spoke with from Texas agreed that the CFPB’s structure needs to be permanently changed. NIADA will continue to lobby on behalf of all dealers in an attempt to “fix” this agency’s structure while there is a chance to do so. Both NIADA and TIADA certainly SUPPORT these changes.

View us on the web or Facebook for our latest GSA Sale Dates

www.daaokc.com 1028 S. Portland Ave Oklahoma City, OK 73108 (405) 947-2886

Thanks again to all of the dealers that participated. My hope is that every member realizes the importance that our Association’s voice and advocacy efforts has on the outcome of legislation (both in Texas and on Capitol Hill) that directly impacts our day to day businesses and our bottom line. If your schedule does not allow you to participate in person, let me encourage you to participate with a contribution to INDEPAC. It may very well be the best insurance your money can buy!! Happy Thanksgiving to all our members and I look forward to talking with you soon. T e x a s

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November 2018

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2019

TIADA

Day

at# the Capitol make

your

voice

Heard Save the date Tuesday, February 12

BUY ONLINE AT www.AmericasAutoAuction.com

LOCATIONS So thankful for all of our loyal dealers. You are the heart that keeps the auction industry flowing. Atlanta, GA Austin, TX

Dallas, TX Detroit Toledo, OH

Jacksonville, FL Lancaster, PA

Tulsa, OK Virginia Beach, VA

Baton Rouge, LA Birmingham, AL Bowling Green, KY Chicago, IL

Greenville, SC Harrisburg, PA Houston, TX Interstate 94, MI

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

West Michigan, MI

Austin

LOCATIONS IN TEXAS

Dallas

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

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

CP INSURANCE ASSOCIATES

“Custom Collateral Protection Insurance Programs for the BHPH Dealer for over 20 years”

“We invented the program for BHPH Dealers!” “August 2017-Hurricane Harvey-Houston, Texas”

OUR DEALERS WERE THERE FOR THEIR CUSTOMERS! CP INSURANCE ASSOCIATES WAS THERE FOR OUR DEALERS! DO YOU HAVE AN INSURANCE PLAN THAT PROTECTS YOUR COLLATERAL WHEN CATASTROPHE STRIKES? Call:

Bill Murphy (512-799-2886)

“Your Collateral Protection Solution”

Bob Burke (800-366-0036)

Matt Rucker (214-529-7624)

Insurance Associates (800-366-0036)

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November 2018

legal corner

Law Protects Lien Holders In Liability Insurance Claims by Michael

Dealer Question: I just found

out that my customer has received and cashed an insurance settlement check from a third party’s liability carrier that covers damages to the vehicle for which I hold a lien. My customer has spent the money and refuses to pay the balance on the vehicle, which has been totaled. Do I have any recourse against the insurance company? Answer: Yes.

s the average wholesale cost of used cars spirals upward, and the amount of risk that dealers put on the street increases, the importance of vehicle insurance coverage to lien holders grows. Thus, more and more secured creditors are requiring property damage insurance as part of their retail installment contracts and are actively monitoring lapses and cancellations and, in some cases, responding to lack of insurance coverage by repossession or forced placement of singleinterest coverage. Many Buy-HerePay-Here dealers are moving to collateral protection programs that offer additional control over the terms of and continuity of coverage. BHPH dealers that a few years ago never seriously enforced the property damage insurance provisions of their contracts are realizing that a few total losses at today’s prices can severely impact the bottom line. To insure that the lien holder’s position is protected on a policy of property damage insurance

November 2018

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owned by the debtor, it is necessary for the lien holder to be listed as loss payee. Such a listing gives the lien holder certain contract rights in the policy proceeds, and prevents the insurer from paying the insured for vehicle damage without including the lien holder. If the lien holder is not listed on the policy as a loss payee, the insurance company has no obligation to the lien holder and all insurance proceeds, including amounts allocated for damage to the vehicle, belong to the named insured. Because of the nature of liability insurance, which covers third parties who are damaged or injured by the insured, there is no corresponding losspayee provision. One particularly frustrating situation for vehicle lien holders is when a liability claim for property damage to a vehicle is paid directly to the debtor. A common example of this situation: A third party, who has liability coverage, causes an accident that damages lien holder’s collateral. The liability carrier, ignoring the lien holder,

Dunagan

TIADA GENERAL COUNSEL

A bill was passed that placed a lien on liability insurance proceeds in favor of the holder of a perfected motor vehicle lien. That law, which appears at Section 61.001 of the Texas Property Code, has probably saved vehicle lien holders millions of dollars since its passage. negotiates a settlement directly with the debtor, and issues a check payable to the debtor without mentioning the lien holder. The lien holder subsequently finds the vehicle, a total wreck, in a pound, or body shop. The debtor has by now often purchased another vehicle, probably using the insurance proceeds, and refuses 11

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

December 2018 1 0 Collect the Cash, Not the Car

Fort Worth, TX

January 2019 2 1 BHPH Compliance: A

Comprehensive Workshop Houston, TX

February 2019 2 5 Facebook/Instagram Workshop:

Increase Sales and Measure Your ROI Austin, TX

March 2019 2 5 The Competitive Investment:

Integrating Data Analytics & Technology into Your Dealership Strategy Dallas, TX

OTHER TIADA EVENTS February 2019 1 1 Board of Directors Meeting

Austin, TX

1 2 TIADA Day at the Capitol Austin, TX

If a lien holder becomes aware of an accident in which the liability insurance of a third party will likely be involved, the dealer should contact the liability carrier, give lien information, and request (in writing) that the lien holder be included in the settlement negotiations as they relate to the property damage to the vehicle. to make further payments to lien holder. Several years ago, TIADA was able to convince the Texas Legislature that this situation was extremely unfair and needed to be corrected. A bill was passed that placed a lien on liability insurance proceeds in favor of the holder of a perfected motor vehicle lien. That law, which appears at Section 61.001 of the Texas Property Code, has probably saved vehicle lien holders millions of dollars since its passage. The change in the law was motivated by the experience of some lien holders that insurance adjusters were purposely trying to keep the lien holder out of settlement discussions. In some cases, the insurance adjuster would tell the lien holder that he or she had no obligation to talk with the lien holder and no obligation to see that the insurance proceeds were payable to the lien holder. The typical response a lien holder received from the liability carrier, after finding out that the debtor had been paid and had absconded

with the money, was something to the effect that the liability insurance carrier has no obligation to check for recorded liens and no obligation to include the lien holder as a payee. Interestingly, many insurance adjusters are still today telling lien holders that the insurance company has so obligation to them, despite the clear language of Section 61.001. As further indication that lien holders were being intentionally excluded from the settlement process, many insurance companies were contracting with the debtor to allow the debtor to keep the salvage, deducting the salvage value from the settlement. This way, the insurance company didnâ&#x20AC;&#x2122;t need to obtain a released title certificate from the lien holder. Of course, the debtor never claimed the salvage and it was often sold to satisfy a storage lien. Now, if a liability carrier goes around the recorded lien holder, it can be sued and forced to pay again. We still encounter cases where debtors are paid directly. T e x a s

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When confronted, some insurance adjusters still claim no obligation to the lien holder. Some claim that they aren’t obligated to include lien holders as payees on settlement checks when the amount at stake is under a certain level (we’ve found that some liability insurance carriers impose there own internal minimum amount, under which lien holder contact is not required, but the law contains no such limit). Whether they are ignorant of the change in the law or just bluffing, we don’t know. In every such case, however, we’ve been able to force the company to pay the lien holder. Under the law, the recorded lien holder’s claim extends to the lesser of (a) the fair market value of the vehicle before the damage; (2) the reasonable cost of repair to the vehicle; or (3) the balance owed to the lien holder by the debtor. The liability carrier can satisfy its obligation by making the settlement check jointly payable to the debtor and the lien holder. If the debtor forges the lien holder’s name on the check and cashes it (a fairly common occurrence), the insurance company has no further liability, although the lien holder would probably have recourse against whoever cashed the check with the forged endorsement. It is very important to note that to be protected under this law, the lien holder must have filed an application for transfer of title to the buyer reflecting its lien. All third parties are legally on notice of the lien when it is filed, even if the state hasn’t yet processed the new title certificate. On the other hand, the law offers no protection to the lien November 2018

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holder who has not transferred the title, as an unrecorded lien holder would not fit the definition of “mortgagee.” If a lien holder becomes aware of an accident in which the liability insurance of a third party will likely be involved, the dealer should contact the liability carrier, give lien information, and request (in writing) that the lien holder be included in the settlement negotiations as they relate to the property damage to the vehicle. The identity of the liability carrier can often be obtained from the accident report filed by

the police. In the event that the debtor is paid directly, the lien holder is entitled under the law to bring action against the insurance company for payment. A copy of Section 61.001 can be obtained from TIADA. 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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Have you downloaded the new

TIADA Auction App yet? Same great savings in the convenience of a mobile app! Now offering discounts on online purchases! FREE buy/sell fees up to $200 at participating locations. Turn to page 30 to see the latest additions to the app!

How to download and register: Android Users

Apple Users

1. Search “TXIADA” in the Google Play Store 2. Open the app, scroll down to CREATE ACCOUNT 3. Fill in ALL the fields and select DONE when finished

1. Go to the App Store and search “IADA” 2. Download and open the app 3. Select “Membership Rewards” 4. Select “Texas — TIADA” 5. Scroll down to “CREATE ACCOUNT” and fill in all the fields. Select DONE button when finished.

After you have created an account, TIADA will verify your membership and email that your app is ready to use!

e-Tag Supplies —

In Stock for Immediate Shipment!

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TIADA_Sep_issue_due_aug_2018.indd 1

8/13/18 2:20 PM

Dealer Academy

in partnership with

Presents

Presented by Brent Carmichael, Executive Conference Moderator, 20 Groups. NCM Associates, Inc. This has been a challenging year in the Buy Here, Pay Here industry, aided by another odd tax season and increased apathy by our customers in regards to their payments. Dealers are finding that every collection opportunity needs to be capitalized on and that’s where this seminar can help. Collect The Cash, Not The Car is designed to help you and your collection teams maximize your collection opportunities. Through this 1-day course you can expect to learn:

9:30am - 4:00pm $249 Members, Each Additional $199 (must be from same dealership)

$499 Non-members

• How to maximize the collectability of every customer • How to overcome the common and not so common customer objections • Effective skip tracing methods and tools • Effective phone collection techniques We have put together a very strong course outline that includes a wide array of role playing, classroom learning and interactive activities that will allow your collection team to soak up the information and come back to your dealership ready to collect the cash and not the car.

Monday, December 10, 2018

Sponsored by:

Fort Worth, Texas Courtyard by Marriott Fort Worth University Drive 3150 Riverfront Drive | Fort Worth, TX 76107 817.335.1300

www.passtimegps.com

feature TIADA Day

at the Auction the

2018

Tour

This year TIADA recruiters stayed busy while visiting 21 different auctions across the state. See page 21 for a list of the top recruiters who helped grow TIADA’s membership this year. TIADA would like to sincerely thank the following auctions for their support.

Mark Brown awards Jeff Noi of Buy Rite Auto Sales $50 after his winning spin at Manheim San Antonio.

April 4 . . . . . . . . . . . . . Manheim San Antonio April 10 . . . . . . . . . . . . . . . America’s AA Buda April 17 . . . . . . . . . . . . . . . Manheim Houston April 17 . . . . . . . . . . . . . Houston Auto Auction April 18 . . . . . . . . . . . . . . . . . ADESA Houston April 24 . . . . . . . . . . . . . America’s AA Dallas April 25 . . . . . . . . . . . . . . . . Manheim Dallas April 25 . . . . . . . Alliance Auto Auction Dallas April 26 . . . . . . . . . . . . . . . . . Manheim DFW Aug 15 . . . . . . . . . . . . . Manheim San Antonio

Chris Elkins of MD Auto Sales works the floor at Manheim DFW to recruit new members.

Sameh Dides from Texas Cars of Addison won $100 off his buy/sell fees at Manheim Dallas.

Aug 21 . . . . . . . . . . San Antonio Auto Auction Aug 21 . . . . . . . . . . . . . . . America’s AA Buda Aug 24 . . . . . . . . Corpus Christi Auto Auction Aug 30 . . . . . . . . . . . . . . ADESA San Antonio Sept 25 . . . . . . . . . Metro Auto Auction Dallas Sep 25 . . . . . . . . . . . . . . America’s AA Dallas Sep 26 . . . . . . . . . . . . . . . . . Manheim Dallas Sep 27 . . . . . . . . . . . . . . . . . . Manheim DFW Oct 15 . . . . . . . . . America’s AA North Houston Oct 17 . . . . . . . . . . . . . . Manheim San Antonio Oct 18 . . . . . . . . . . . . . America’s AA Houston 18

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November 2018

Jose Engler, Hunter Dunn and Samuel Engler at Corpus Christi Auto Auction.

Martin Wimberley of Cuero Motors Seminar Winner SAAA.

Jorge Maldonado from San Antonio Auto Credit won $100 off his buy/sell fee America’s Auto Auction in Buda.

Hani Saadalla of Ace Motor Group got $100 off his buy/sell fee at America’s Auto Auction Dallas thanks to TIADA.

It was a good day at ADESA Houston for Jerry Khoury of Texans Auto Group after he won free registration to the 2018 conference.

TIADA Chairman of the Board Greg Zak visits with Amos Brown, Commercial Account Manager for ADESA Houston during TIADA’s visit in April.

At Manheim Dallas Luis Garfias of Garfias & Sons spun the prize wheel and took home $50.

Former TIADA president George Karlen of Karlen Auto Company shows off the free conference registration he when when TIADA visited Alliance Auto Auction in Dallas.

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Perry Stovall of Stovall Used Cars attended the 2018 Annual Conference & Expo free of charge after his lucky spin on the prize wheel.

Ahmed Belmeshkan, one of TIADA’s top recruiters, explains the benefits of membership to a potential member.

Top Recruiter José Engler recruits another new member at ADESA San Antonio.

Garage Liability Kevin Smith Insurance is now Tri-State Dealer Services. With expansion and coverages being available outside of Texas, we’ve changed our name to better suit the areas of our growing agency.

1-800-687-3236

Tri-State Dealer Services is one of the largest writers of Garage Liability in the state. We work with several A+ rated companies which offer exceptional rates to car dealers and repair shops. Call today for a “quick” 10-minute quote!

8739 Davis Blvd. Keller, TX 76248

800-687-3236 / Fax (817) 581-1921

WE ALSO OFFER THESE COVERAGES:

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

D e a l e r

November 2018

2018 TIADA Auction Directory

* VIP discount valid for sell fees only

ABILENE

DALLAS/FORT WORTH METROPLEX

Alliance Auto Auction Abilene

ADESA Dallas

www.allianceautoauction.com 6657 US Highway 80 West, Abilene, TX 79605 325.698.4391, Fax 325-691-0263 General Manager: Brandon Denison Friday, 10:00 a.m.

C.M. Company Auctions, Inc.

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

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

Alliance Auto Auction Dallas

AUSTIN

www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 7520 214.646.3136 General Manager: Chris Dean Wednesday, 1:30 p.m.

ADESA Austin

America’s AA Dallas

www.adesa.com 2108 Ferguson Ln., Austin, TX 78754 512.873.4000, Fax 512.873.4022 General Manager: Rich Levene Tuesday, 9:00 a.m.

America’s AA Austin / San Antonio www.americasautoauction.com 16611 S. IH-35, Buda, TX 78610 512.268.6600, Fax 512.295.6666 General Manager: John Swofford Tuesday, 1:30 p.m. / Thursday, 2:00 p.m.

Insurance Auto Auctions Austin* www.iaai.com 2191 Hwy 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 General Manager: Geoffrey Rabb Tuesday, 9:00 a.m.

Metro Auto Auction – Austin

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

CORPUS CHRISTI Corpus Christi Auto Auction

www.americasautoauction.com 219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972-591-2742 General Manager: Ruben Figueroa Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.

Insurance Auto Auctions Dallas* www.iaai.com 204 Mars Road, Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 General Manager: Henry Valenzuela Wednesday, 9:00 a.m.

Insurance Auto Auctions DFW*

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

Manheim Dallas

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

Manheim Dallas Fort Worth

www.corpuschristiautoauction.com 2149 IH69 Access Road, Corpus Christi, TX 78380 361.767.4100, Fax 361.767.9840 General Manager: Hunter Dunn Friday, 9:30 a.m.

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

Insurance Auto Auctions Corpus Christi*

Metro Auto Auction – Dallas

www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880 General Manager: Adriana Serrano Wednesday, 9:00 a.m. 22

Get up to $200 off a buy or sell fee at these participating auctions using the NEW TIADA Auction App!

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

Texas Lone Star Auto Auction

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

EL PASO El Paso Independent Auto Auction www.epiaa.com 7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 General Manager: Luke Pidgeon 10:00 a.m. Standard Sale

Insurance Auto Auctions El Paso*

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

Manheim El Paso

www.manheim.com 485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645 General Manager: JD Guerrero Thursday, 10:00 a.m.

HARLINGEN/MCALLEN Big Valley Auto Auction

NOW ACCEPTING ONLINE COUPONS!

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

Insurance Auto Auctions McAllen* www.iaai.com 900 N. Hutto Rd, Donna, TX 78537 956.464.8393, Fax 956.464.8510 General Manager: Ydalia Sandoval Tuesday, 9:00 a.m.

HOUSTON ADESA Houston

www.adesa.com 4526 N. Sam Houston , Houston, TX 77086 281.580.1800, Fax 281.580.8030 General Manager: Michael Schenks Wednesday, 9:00 a.m. T e x a s

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November 2018

General Manager: Barbara Hallmark Thursday, 11:00 a.m.

Manheim Texas Hobby

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

Texas Direct Auto Auction

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

NEW

LONGVIEW Alliance Auto Auction Longview www.allianceautoauction.com 6000 East Loop 281 Longview, TX 75602 903.212.2955, Fax 903.212.2556 General Manager: Chris Barile Friday, 10:00 a.m.

America’s AA North Houston

www.americasautoauction.com 1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936-788-2842 General Manager: Buddy Cheney Monday, 6:30 p.m.

NEW

www.autonationautoauction.com ANAAHouston@AutoNation.com 608 W. Mitchell Road, Houston, TX 77037 855.905.2622, Fax 281.506.3866 General Manager: Mike Green Thursday, 6:00 p.m.

Insurance Auto Auctions Longview* www.iaai.com 5577 Highway 80 East Longview, TX 75605 903.553.9248, Fax 903.553.0210 General Manager: Robert Dunning Thursday, 9:00 a.m.

LUBBOCK

Houston Auto Auction

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

Insurance Auto Auctions Houston North* www.iaai.com 16602 East Hardy Rd., Houston, TX 77032 281.443.1300, Fax 281.443.4433 General Manager: Louis Cappi Thursday, 9:00 a.m.

Insurance Auto Auctions Houston*

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

Manheim Houston

Insurance Auto Auctions Lubbock* www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 General Manager: Lori Davee Tuesday, 9:30 a.m.

Texas Lone Star Auto Auction – Lubbock

NEW

www.lsaalubbock.com NOW ACCEPTING 2706 E. Slaton Road ONLINE COUPONS! Lubbock, TX 79404 806.745.6606 General Manager: Dale Martin Wednesday, 9:30 a.m.

LUFKIN Lufkin Dealers Auto Auction

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

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

Manheim South Houston

MIDLAND/ODESSA

www.manheim.com 9605 Galveston Road Houston, TX 77034 713.948.0001, Fax 713.948.0300 General Manager: Darren Slack Tuesday, 6:00 p.m. November 2018

T e x a s

ADESA San Antonio

www.tdaa.com 2000 Cavalcade, Houston, TX 77009 281.550.7277 General Manager: Morgan Cavallo Tuesday 2:00 p.m.

America’s AA Houston

AutoNation Auto Auction – Houston

SAN ANTONIO

D e a l e r

Insurance Auto Auctions Permian Basin*

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

Insurance Auto Auctions San Antonio* www.iaai.com 11275 S. Zarzamora San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 General Manager: Brian Sell Monday, 9:00 a.m.

Manheim San Antonio

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

San Antonio Auto Auction

www.sanantonioautoauction.com 13510 Toepperwein Road San Antonio, TX 78233 210.298.5477, Fax 210.298.5484 General Manager: Brandon Walston Tuesday, 9:30 a.m. / Thursday, 1:30 p.m.

TYLER Greater Tyler Auto Auction

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

WACO Alliance Auto Auction Waco www.allianceautoauction.com 15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 General Manager: James Baron Friday, 10:00 a.m.

ONLINE ACV Auctions

NEW

www.acvauctions.com 800.553.4070

ONLINE ONLY

Get $250 in Credit

www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277, Fax 432.366.8725 23

on the cover by Peter A. Salinas TIADA Contributor

T e x a s

D e a l e r

November 2018

early 40 million used vehicles were purchased in the U.S. in 2017, and while demand remains high and prices are strong, automobile sales may have hit the peak as more consumers seek alternatives to traditional vehicle ownership. Mobility services such as ridehailing, carsharing, rentals, and carpooling are showing dramatic growth. Bank of America Merrill Lynch Global Research estimates that mobility services will grow by about 14% per year globally and by 2030 represent 8% percent of all vehicles on the road globally, predominantly in urban areas. There are more than 22 million “transportation as a service” vehicles worldwide on the road today. This means instead of buying a vehicle and paying for maintenance and fuel, many millions will be just a smart phone click away from going from Point A to Point B. This past June at the 72nd NIADA Annual Convention and Expo, Mark O’Neil, chief operating officer of Cox Automotive, told dealers that fundamental change was coming to the retail automotive industry, and it wasn’t a question of if, it was a question of when. He noted that Carvana, online retailer of used vehicles whose mission it is to “cut out dealerships” to lower costs to the consumer, didn’t exist five years ago. “They’ve not invested in real estate,” he told an auditorium packed with NIADA members, “but they’ve invested in technology. They looked at Amazon and embraced the online experience. They have had a steep growth curve. They sold zero vehicles in 2013, and in 2017 sold 45,000. Most dealers here are near a market they serve. Carvana predicts they will sell 360,000 units annually by 2020.” He also said that CarMax, a

November 2018

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company he founded, predicts that it will sell 800,000 units annually by 2020. “Think about that,” he said. “Two companies selling 1.2 million units, nearly 3% of the all the used cars sold in the U.S. Who would have predicted that seven years ago?” Just as change has come in sales and marketing thanks to the Internet and new ways of leveraging data and connectivity, change will come to the way consumers interact with the vehicles they drive or in which they ride.

Cox is Investing

David Liniado, vice president, New Growth & Development at Cox Automotive, is charged with looking at and developing products and services specifically for this new marketplace. He helps to oversee Flexdrive, an Atlanta-based joint venture between Cox Automotive and Holman Automotive group founded in 2017. It offers car subscriptions, where subscribers can sign-up and use cars for either seven or 28 days at a time. All subscriptions come with insurance, maintenance and roadside assistance offerings, so subscribers do not have to worry about a lack of support if anything were to go wrong. With a $250 deposit and an app download, the program sets subscribers up to begin reserving cars that they need without the hassle of loans or paperwork. Liniado points to other companies like Turo.com, which was founded in 2009. Turo is a car sharing marketplace where travelers can rent any car they want, wherever they want it, from a vibrant community of local car owners. Think of it like a ridehailing app, but instead of a driver, you get the vehicle to go where you want, when you want for specific period of time, at an agreed upon fee.

There are more than 22 million “transportation as a service” vehicles worldwide on the road today. This means instead of buying a vehicle and paying for maintenance and fuel, many millions will be just a smart phone click away from going from Point A to Point B. “I believe 2018 is a tipping point for mobility as a service,” Liniado said. “Hundreds of millions of investment dollars are being placed into these services, and we’re seeing more adoption by consumers.” Certainly, many young people don’t look at owning a vehicle the way their parents do. They see no need to make a payment on a vehicle every month for a vehicle that sits for 8-10 hours every day while they sleep. They see no need to pay $50 to store fuel in a vehicle they may not use for two weeks. Certainly, the effectiveness of the applications used to connect vehicle and rider have reached a point where with a little planning the convenience factor of having a vehicle in the driveway or nearby parking lot is offset by significantly reduced costs. According to a McKinsey & Company study, “Urban mobility at a tipping point,” it’s 24% cheaper to use mobility services rather than purchasing a new car. Many younger people still have jobs with low wages, and the extra money is very attractive. In an urban setting insurance, 25

BELOW ARE SOME OF THE “EXPERT” PREDICTIONS OF THOSE THINGS THAT MAY OCCUR, IF CARSHARING, RIDEHAILING, AND AUTONOMOUS VEHICLES BECOME THE NORM, RATHER THAN JUST A SMALL PERCENTAGE OF A HUGE MARKETPLACE. WHAT ARE YOURS? Public parking lots and garages would likely get smaller. People will demand commuter cars on weekdays and sports car or SUV on weekends. Car insurance as we know it today will likely be very different. Anyone with a bad driving record would immediately opt for autonomous vehicle only driving. Small fleets of carsharing luxury cars may make perfect sense for a small retailer in an affluent area. A fleet of fuel-efficient commuter cars would be great for a bedroom community.

These are the types of discussions dealers should be having with their consumers, area business leaders, and their state and national dealer association members and leadership.

parking fees, fuel and maintenance costs are typically higher, adding additional incentive for them to find alternative transportation service. Ridehailing, carsharing and rental easily fits that bill. Liniado said change is coming, but he believes dealers have years to prepare. He noted that doing nothing is a recipe for disaster that could wipe out any business. Keeping apprised of changes, reading, following the trends and listening to your customers is key. 26

“If you’re a dealer you have the infrastructure in place to take advantage of the change that’s coming,” he said. “Dealers understand vehicles, the wholesale process, and if they’ve been successful of late, they understand technology.” He encourages dealers to look at creating a subscription fleet of vehicles and joining one of the many ridehailing or carsharing platforms. “Two to three years from now you’ll have a big advantage over

those that are trying to catch up,” Liniado said.

Dealer Perspective

Ray Lloyd, general manager of Mike Carlson Motor Company, a chain of six buy-here, pay-here dealerships in and around the Fort Worth, Texas area, said he agrees that ridesharing has become popular. However he doesn’t think the model meets the vast majority of consumers’ needs. “I see them as a substitute for cab rides,” Lloyd said, “It doesn’t fit the T e x a s

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day-to-day transportation needs of the vast majority of Americans. Individuals will still need transportation from their suburban homes. In areas where mass transportation is not significant, the ‘family car’ will continue to be necessary.” Lloyd adds that carsharing has been an issue “since the advent of the first BHPH note” and says ridehailing does pose risks for the buy-here, pay-here dealer. “There are issues that need to be addressed regarding the use of vehicles on retail installment sales contracts for commercial livery purposes like Lyft and Uber,” Lloyd said. “There is no accountability of, or responsibility for Uber or Lyft to ensure that a vehicle with a security interest filed against it is covered properly through insurance. “We have had several wrecks where the claims were denied due to use as a Lyft or Uber vehicle. I

“It doesn’t fit the day-to-day transportation needs of the vast majority of Americans. Individuals will still need transportation from their suburban homes. In areas where mass transportation is not significant, the ‘family car’ will continue to be necessary.”

think there needs to be a database accessible by lien holders at the state level to ensure that the vehicles being used for rideshare are free of a lien, or at the very least, the lienholder is aware of the use and has structured the deal accordingly.” Fael Kamal, is the owner of Kay’s Preowned Vehicles, a buyhere, pay-here dealership in Southwest Houston. He’s been in the business for 10 years, sells 60–70 units a month and has seven employees. He points to manufacturers such as General Motors investing in rideshare companies and autonomous vehicles, as well as BMW and others starting their own rideshare programs. “The fact that BMW entered this stream, speaks volumes towards the mindset of our consumers,” Kamal said. “ReachNow, owned and operated by BMW,

Ray Lloyd, GM, Mike Carlson Motor Company

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consideration in their long-term, strategic planning. This paradigm shift might affect the dealer’s location, targeted market and marketing plans. “The state of Texas is fortunate that our vast size requires most people to commute farther distances. Thus despite changes our used car industry in Texas will remain strong.”

The Big Players

takes a poke back at Uber, and Lyft. Though, the BMWs and Minis may be of starter class, who would choose an Uber or Lyft individually owned vehicle when you can ride in a BMW or Mini at a similar cost?” Jim Campbell, owner of Big Tex Auto Mart in Dallas, Texas, said he believes the distances consumers

have to travel in Texas will help dealers remain strong. “I do believe there will be an effect initially on the urban areas with a higher use of the ridesharing vehicles and it will have a direct effect on those BHPH dealers,” Campbell said. “Dealers do need to take these type of market changes into

It could remain strong for some dealers, while others will be more directly affected. Self-driving car developers like GM, Ford, Tesla and others or technology companies like Apple and Google, will eventually own and operate a fleet of cars available for riders on an as needed basis, charging customers by the minute or mile. If technology reaches the point where the driver can be eliminated, it would significantly lower the costs to the user and demand for new vehicles along with it. Since new car sales are

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“I do believe there will be an effect initially on the urban areas with a higher use of the ridesharing vehicles and it will have a direct effect on those BHPH dealers. Dealers do need to take these type of market changes into consideration in their long-term, strategic planning. This paradigm shift might affect the dealer’s location, targeted market and marketing plans.” Jim Campbell, Owner, Big Tex Auto Mart November 2018

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the “factory” for the used car dealer, what happens to the used vehicle retailers inventory? These fleets of vehicles would likely never hit a wholesale marketplace, as individual units would be driven until their useful life was over, again limiting the amount of sheet metal available to the used car dealer.

Fiduciary Responsibility

Justin Osburn, 20 Group moderator and trainer with NIADA, said moderators and trainers have a fiduciary responsibility to look at these issues on behalf of their clients, carefully evaluate them and then do their best to guide their group members through the changes coming. “I’m optimistic,” Osburn said. “We absolutely recommend to our 20 group members and our Certified Master Dealers to stay abreast of current trends. It’s critical to be in the loop and be proactive rather than reactive to change.”

He, too, believes that retailers with training, knowledge and experience in the automotive industry, are in a unique position to take advantage of the coming changes. He points to their brickand-mortar infrastructure as key to adapting to the change. “Just as dealers adapted to technology and communications changes to sales, marketing, fixed operations and BDCs,” Osburn said. “they are in a good position to use those resources to take advantage of changes coming from carsharing and ridehailing.” He recommends staying on your toes and being informed. He pointed to what Uber and Lyft have done to disrupt the taxi industry. “Take the time to look at the demographics of your market,” he said. “Talk to your customers. Look at trends. Try to think about what you can do differently that will attract customers today and beyond.” 29

Dealer Academy Education Offerings for Winter 2019

Instructor-Led Courses BHPH Compliance: A Comprehensive Workshop

Presented by Michael W. Dunagan, TIADA General Counsel and author of the standard-setting books, “Dealer Financing of Used Car Sales” and “Texas Automobile Repossession: A Lien Holder’s Legal Guide.” This revitalized seminar is the final answer in BHPH compliance. Mike speaks dealer, and with 40 years of experience representing hundreds of BHPH dealers, he knows your business inside and out.

$249 TIADA Members, Each Additional $199 (must be from same dealership) $499 Non-members 9:00am - 4:00pm

MONDAY, JANUARY 21, 2019 HOUSTON

Facebook/Instagram Workshop: Increase Sales and Measure Your ROI Presented by Andrew Street, CEO of Dealer OMG.

This jam-packed session will explore the finer points of Facebook and Instagram marketing for dealers and go far beyond the quest for likes. Ideal for any dealer GM or Owner who is tired of not knowing their advertising ROI. 8:30am - 12:00pm

$149 TIADA Members, Each Additional $99 (must be from same dealership), $299 Non-members MONDAY, FEBRUARY 25, 2019, AUSTIN

The Competitive Investment: Integrating Data Analytics & Technology into Your Dealership Strategy Presented by Joe Oliveri, Vice President Autoniq and Steve Nicholson, Director of Major Dealer Accounts, TradeRev. In this workshop, learn how your dealership can use analytics to harness data to provide meaningful insights and leapfrog the competition. Gain practical tips to reap benefits from the digital revolution, including how to diversify your sales approach by incorporating new technology at your dealership. 8:30am - 12:00pm

$149 TIADA Members, Each Additional $99 (must be from same dealership), $299 Non-members MONDAY, MARCH 25, 2019, DALLAS

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Texas Independent Automobile Dealers Association

feature

Facebook & Instagram: A Dealer’s Story by Andrew Street CEO, Dealer OMG

“Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”

he quote above is one I’ve heard echoed from dealership owners over and over when discussing how to allocate their marketing budgets. The quote was made by American merchant and US Postman, John Wanamaker, in the 1890’s... Nearly 120 years later, don’t you think we should have more insight? What if I told you that every dollar of your advertising budget should be (and can be) held accountable? With digital marketing, this is possible. Maybe for some people, it’s more comfortable not to be able to know what is working because then they

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PixieMe / Shutterstock.com

don’t have to spend time evaluating and optimizing. But, here is a story of March Motors, a buy-here, pay-here dealership that was tired of being comfortable not knowing. In December of 2016, Jason March, the son of the owners of March Motors attended a conference where a Facebook employee discussed that potential customers spent 75% of the time on their phone looking at Facebook/ Instagram an average of around 20 times a day. Jason was ready to take March Motors’ Facebook/Instagram strategy to the next level. Within

7 months, Jason’s monthly sales grew by 51%.

Facebook Strategy

Jason and his brother, Dylan, began a #TradeInTuesday show that they would post to their store’s Facebook page weekly. Their affable, tongue-in-cheek banter would describe an interesting trade-in that they were inspecting while someone recorded them with an iPhone. Think of a walkaround of a mid2000’s VW Beetle with a custom Baja lift kit, or just search Facebook for #TradeInTuesday to watch the show for yourself. 31

Now that he had cultivated his online presence, Jason knew that he needed to drive traffic to his page. He reached out to the Facebook employee that had inspired the new direction he was taking. She referred him to Dealer Online Marketing Group, my firm, which is how Jason and I met. Together we launched a calculated Facebook/Instagram paid ad strategy for March Motors. The strategy: start as narrow as possible to eliminate advertising waste and then broaden the scope to reach more people as you learn what type of consumers respond and how. Something that would have been impossible with his traditional marketing. Jason was able to eliminate advertising waste by just targeting people near his store who had credit challenges and were actively shopping other websites for vehicles. This strategy narrowed the audience he could reach from the 1.2 million people in Jacksonville that are on the social media sites, to roughly 9,000

people who are his ideal customers. Eliminating people that were a bad fit allowed him to reduce his ad budget while being more precise than their traditional advertising efforts. We discovered that the Facebook/ Instagram ads drawing the most engagement were images of March Motors’ inventory when we uploaded images of his vehicles into carousel ads. In these ads, shoppers could thumb through relevant options while on Facebook/Instagram. The ads also catered to their creditchallenged customer base with the tagline: “Good Credit, Bad Credit, We Don’t Care — But we do Care about you!” As a trailblazer, Jason was also one of the first dealerships to test out Facebook’s new lead generation product that came out in late 2016. Lead Form ads connected the consumer directly from Facebook/ Instagram to March Motors’ sales team. The lead ads open within Facebook/Instagram with a prepopulated lead form that immediately fills in the customer’s first and last name, personal email address, and cell phone number. Upon the first tap, the customer’s info was routed right into March Motors’ CRM and sales’ email inbox. To date, Jason is receiving around 40 leads per month directly off of Facebook/Instagram lead forms. T e x a s

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What if I told you that every dollar of your advertising budget should be (and can be) held accountable? With digital marketing, this is possible.

Results

After launching the paid Facebook, Instagram, and Google ad campaigns, Jason first noticed a huge jump in the number of people that were seeing and engaging with his dealership on Facebook/ Instagram. Next, he noticed a spike in traffic to his website’s vehicle detail pages. After a couple of months, Jason was able to see a jump in the volume of leads his store received. March Motors was able to analyze sales year over year

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and noticed the spike from 45 cars to 68 per month after launching his paid search and social media strategies.

What Next?

What’s next on the horizon for Jason and March Motors? He and his brother are relaunching their #TradeInTuesday show after a short hiatus. They are receiving overwhelming requests to relaunch the show as their fans and network became accustomed to the funny

6–10 minute car inspection with the familiar faces. Additionally, they are posting fun Facebook live videos, like a contest to take a test drive and get 3 chances to throw a football through a tire for a gas card. A dozen or so people shared this with their network on Facebook and a few people showed up to the lot. They continue to work with Dealer OMG to evolve their Facebook/ Instagram ad strategies and are starting to also launch Google ad campaigns to get in front of consumers as they research future car purchases.

Using specific terms like “2011 Honda Odyssey for sale,” Dealer OMG has been able to leverage March Motors’ specific inventory and BHPH terms to avoid competing with OEM’s and franchise dealerships. These digital marketing plays will ensure that March Motors is one of the few BHPH dealerships in shoppers’ newsfeeds and Google searches. Andrew Street is the CEO of Dealer OMG. For more information about digital marketing, visit DealerOMG.com/TXIADA 33

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

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feature

Are “Problem Employees” Haunting Your Business?

? by Lariza Hebert

Fisher Phillips (Houston)

Company leadership should train managers to appropriately address difficult employees, whether it be for attendance, attitude or something more serious, like harassment or bullying.

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mployers often refer to difficult employees — the people who monopolize your time and keep you from more productive tasks — as “problem employees.” These individuals are not employed in one specific position, nor are they employees of one specific generation, background or education. Sometimes an employee who has been a good worker for 10 or more years turns into a difficult employee (or even worse, the issues were there the whole time but you never got around to doing anything about it). 35

What exactly are “problem employees?” These are workers who typically fail to conduct themselves professionally or appropriately in the workplace. It is situational, of course; some employees are fine in some circumstances and dreadful in others. Sometimes this definition applies to an individual who likes to stir up drama and engages in workplace gossip; sometimes this individual is one whose behavior may border on “harassment;” sometimes this individual has an attendance problem; or sometimes the employee simply has a negative attitude. Whatever the “problem” specific to the employee, the employee’s conduct is not consistent with the employer’s expectations.

Managers: Be Aware, Behave and Be Proactive

These individuals and their “problems” are something your dealership will want to address before the “problem” spreads like a cancer. Typically, problem employees’ behaviors spawn a domino effect. For example, say one employee has been abusing the company attendance policy without appropriate corrective action. Other employees see that the first worker shows up 20 minutes late every day without penalty and start showing up late themselves. Now your entire morning staff comes in after your designated work hours have begun.

Any complaint — from sexual harassment to employee bullying or any other behavior that could conceivably rise to the level of harassment and/or discrimination — should be addressed promptly. Failing to take action against problem behaviors can have a demoralizing effect. When good workers see problem employees “getting away with murder,” even if they are not tempted to violate the rules themselves, they can become frustrated and disgruntled that someone else is not pulling his weight. That T e x a s

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If you see that an employee is not improving performance or is unwilling to comply with rules despite repeated reminders, termination may be the best option. sense of frustration can result in distraction and inefficiency. The ultimate goal for employers is to have respectful and collaborative workplaces, which produce high morale and productivity. Managers need to be on high alert and assert corrective action when necessary. Company leadership should train managers to appropriately address difficult employees, whether it be for attendance, attitude or something more serious, like harassment or bullying. And, if corrective action does not turn a problem employee around, do not kick the can down the road. One of the biggest weaknesses many supervisors have is an aversion to confrontation. These supervisors would rather not deal with the problem employee, hoping that “things will be better tomorrow.” They often are not. If you see that an employee is not improving performance or is unwilling to comply with rules despite repeated reminders, termination may be the best option. Don’t be afraid of termination. Often, managers fret that, if the difficult employee is terminated, other employees will worry that they are next. But if you have explained the rules, fairly applied and enforced them, in most cases other employees will be relieved to see that you removed the “cancer” from the organization. With the tumor removed, the rest of the body is healthier and can thrive. More often than not, November 2018

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the remaining employees look at a termination done properly and say, “What took so long?”

#MeToo and Time’s Up Affect Dealerships

Right now, employees who exhibit inappropriate behavior should be of particular concern to dealerships. That’s because the country continues to reel from the myriad sexual harassment allegations against high-profile individuals in what is now known as the Weinstein effect. After the Weinstein effect, the #MeToo movement encouraged women (not just celebrities) to share

personal experiences of sexual harassment in the workplace. Social media was flooded with personal accounts of sexual harassment, bringing what at first seemed like a faraway Hollywood occurrence into our backyards. It was no longer about famous people; it became about friends and family members of your employees. Now, employers should be cognizant of the Time’s Up campaign, which has established a legal fund for women to seek justice for claims of sexual harassment against their employers. You may or may not be thinking that these movements affect your business. But you are urged to reexamine your workplace (and your policies, discussed below). Think of your current workforce. Is there an employee engaging in questionable behavior who sticks out in your mind? Does Mike hug a little too long? Do all the employees know that about him and simply write it off as “that’s just Mike being Mike?” Remember, when your employees are saying something like this, it is usually the tip of the iceberg. Employers should investigate any comments or rumors of inappropriate behavior. This is why it is important for managers to be trained on how to promptly investigate and address complaints.

Best Practice: Create and Implement Solid Policies

It is extremely important for employers to have and implement strong policies. Make sure you not only have a policy that prohibits sexual harassment (every employer

if an employee consistently violates the attendance, work hours or other policies, managers should actively apply the policy and document any and all violations. The key here is to apply the policies consistently and equally among your workforce. should be revisiting this), but your policies also should prohibit harassment (and bullying) of any kind, including harassment based on race, religion and other protected classes. In fact, employers should implement a zero tolerance harassment policy. You would be surprised how often employers have policies prohibiting sexual harassment but have no policy that addresses harassment based T e x a s

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on other protected classes. Having solid policies is important because there are affirmative defenses available for employers under Title VII for harassment claims that do not involve an adverse employment action (e.g., termination or demotion) if the employer can demonstrate: (1) it took reasonable steps to prevent and promptly correct sexual harassment in the workplace, and (2) the aggrieved employee unreasonably failed to take advantage of the employer’s preventive or corrective measures. Any complaint — from sexual harassment to employee bullying or any other behavior that could conceivably rise to the level of harassment and/or discrimination — should be addressed promptly. Additionally, if an employee consistently violates the attendance, work hours or other policies, managers should actively apply the policy and document any and all violations. The key here is to apply the policies consistently and equally among your workforce. When you are dealing with a difficult employee, you do not

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When you are dealing with a difficult employee... your sole question should be whether the employee’s behavior violates a company policy. If it does, then you should take appropriate action, whether this means verbal counseling, a write-up or something more serious.

resource guide The TIADA Website:

www.txiada.org Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online at the Calendar of Events; access our online membership application; find contact information for all our Local Chapters, and find many additional resources at our Knowledge Base. Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov Office of Consumer Credit Commissioner 800.538.1579 www.occc.state.tx.us

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

need to conduct a legal analysis to determine if the behavior rises to actionable harassment or, heaven forbid, criminal misconduct. Rather, your sole question should be whether the employee’s behavior violates a company policy. If it does, then you should take appropriate action, whether this means verbal counseling, a write-up or something more serious. Remember to contact your labor and employment attorney if you have any questions regarding a difficult employee or you want to overhaul your current employee policies. Lariza Hebert is an attorney in the Houston office of Fisher Phillips. She can be reached at lhebert@fisherphillips.com or 713.292.5603.

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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.

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Please Welcome Our Newest TIADA Members DEALER MEMBERS ADL Auto Sales Fatih Kocak 300A E. Hwy 121 Business Lewisville, TX 75057

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ASSOCIATE MEMBERS Digital Air Strike Amber Jamison 6991 E. Camelback Rd., Ste B111 Scottsdale, AZ 85251

Local Chapters VICTORIA Rowdy Ransom RTR Motors 351.582.4511 rowdyroy78@yahoo.com Meeting – 1st Monday (Monthly) FORT WORTH David Byrd Byrd Autos 817.915.2185 david@byrdautos.com Meeting – 4th Thursday of Jan–May and Sep–Oct DALLAS COUNTY Kathrine Tolsch Cico Auto Sales 214.352.9282 cicoauto@verizon.net (dates announced at ww.txiada.org) HOUSTON Rick Maroney Maroney Auto Sales 713.691.3800 rmaroney@usa.net Meeting – 2nd Tuesday (Monthly) SAN ANTONIO Jose Engler Irving Motors Corp 210.385.2568 pepeton2002@hotmail.com (dates announced at www.txiada.org) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 43

behind the wheel Preparing for the 86th Texas Legislative Session

y the time you are reading this the elections are most likely over, now what? I don’t know about you but I am excited there will be no more political ads, no more campaign promises and no more campaign spin. Whether you are excited about the outcome or disappointed in the results, most citizens believe their involvement in the process is over until the next election. Not so — your responsibility as a voter ended the second after you dropped that ballot in the box, but your work as a constituent continues on. While the statewide and national campaigns took center stage with the pundits, poll readers and media, the elections that will have the greatest impact on our industry took place a little further down on the ballot. The results of the State Senate and the Texas House of Representatives races were our main focus. The winners from around the state will soon make their way to Austin and bring with them their ideas and ideology. This begs the question: what have we done (or can we

by Jeff

Martin

TIADA EXECUTIVE DIRECTOR

do) to make sure we have common philosophies and that our new legislators are representing our best interests? I’m glad you asked. We have worked hard over the past few years getting to know many legislators in their respective areas. We crisscrossed the state visiting with new candidates and old friends discussing the association’s legislative priorities and interests. We had nine elected officials attend this year’s conference and we have scheduled a meeting with some new faces that will one day wield significant influence over our industry. Our local chapters did their part as well, inviting local legislators and Tax AssessorCollectors to their monthly meetings and in an effort to help them get to know the business a little better. Thanks to you, INDEPAC was able to make over $45,000 in contributions to candidates who support the independent automobile dealers of Texas. We touched candidates who represent Amarillo, Beaumont, Brownsville, El Paso and many districts in-between. However, we didn’t touch them all and more importantly they want to hear from you. Before the holidays, I

...your responsibility as a voter ended the second after you dropped that ballot in the box, but your work as a constituent continues on. November 2018

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encourage you to call your state representative and congratulate them on their victory. If you donâ&#x20AC;&#x2122;t already know them, explain who you are and what you do in the community. They want to know you and they need to know you, as a constituent. We are already tracking pre-filed legislation and will continue tracking bills throughout the session. As we track bills we will notify you if your legislator is taking a position opposed to the associationâ&#x20AC;&#x2122;s legislative

EPI-TIADAhalf Oct2018.pdf

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agenda. From time to time we may also ask you to write or call your legislator to explain how legislation might affect your business. If you have already had an initial conversation with your representative they will be much more receptive to your input during the session. When you make that call remind them you will be stopping by to see them in Austin during TIADA Day at the Capitol on February 12th. For more information turn to page 8.

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

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JEFFERSON CITY, MO

PERMIT NO. 210

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