Texas Dealer, October 2015

A victory at the Legislature

TIADA Passes Mechanic’s Lien Transferability Bill

In This Issue: – “ Just Get One” Campaign –B est Practices in Automotive Social Media Use –M ichael W. Dunagan on Dealer Compliance

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Volume XV

2016 TIADA Board of Directors

CHAIRMAN OF THE BOARD Brent Rhodes/Fiesta Motors 5150 Industrial Way Drive Buda, TX 78610 Office: 512.312.2201 Email: brent@fiestamotors.net SECRETARY Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net TREASURER Trey Crouch/Trey Crouch’s Wheels On Credit, Inc. 636 E. Business 83 McAllen, TX 78501 Office: 956.972.0700 Email: trey@wheelsoncredit.com VICE PRESIDENT, WEST TEXAS (REGION 1) Paul Scott/Fiesta Motors – Lubbock 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 Email: pscott@gofiestamotors.com VICE PRESIDENT, FORT WORTH (REGION 2) Tommy Gregory/Abilene Used Cars Sales Inc. 497 E.S. 11th Abilene, TX 79602 Office: 325.676.8000 Email: aucsinc@sbcglobal.net VICE PRESIDENT, DALLAS (REGION 3) Wayne Meagher/M D Auto Sales 2002 W. Main Street Grand Prairie, TX 75050 Office: 972.641.9598 Email: wayne@navchiefs.com VICE PRESIDENT, HOUSTON (REGION 4) Juan Sabillon/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: brentfordct@yahoo.com VICE PRESIDENT, CENTRAL TEXAS (REGION 5) Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net VICE PRESIDENT, SOUTH TEXAS (REGION 6) Dan Keetch/Keetch Motors 1010 S. Staples Corpus Christi, TX 78404 Office: 361.882.3541 Email: dankeetch51@yahoo.com VICE PRESIDENT AT LARGE James Hobson/H-Town Motors 3714 Dyer Street El Paso TX 79930 Office: 915.564.9797 Email: htownmotors@sbcglobal.net VICE PRESIDENT AT LARGE Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am - 4:30pm 800.442.5944 • Fax 512.244.6218 jeff.martin@txiada.com

I s s u e 10

/

O c t o b e r 2 015

texasDealer

PRESIDENT Phil Lathrop/VP Auto Sales Inc. 2921 S. Garland Avenue Garland, TX 75041 Office: 972.864.1300 Email: phillipl@vpautosales.com PRESIDENT ELECT Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd.

Dallas, TX 75229 Office: 214.352.9282 / Fax: 214.352.8227 Cell: 972.333.6024 Email: cicoauto@verizon.net

/

5 Officers’ Message

contents

by Phil Lathrop, TIADA President

8 Board of Directors Meeting Minutes 11 Legal Corner: Dealers’ Compliance Check List: Things You Can Fix Right Now

by Michael W. Dunagan

12 Upcoming Events 17 Regulation Matters: The Deal Jacket

by Danny Langfield

20 2015 VIP Auction Card Directory 22 On The Cover: A Victory at the Legislature: TIADA Passes Mechanic’s Lien Transferability Bill

by Danny Langfield

29 Best Practices in Automotive Social Media Use

by Angela West

32 New Members 35 Just Get One

by Teresa Orkun, Texas Dealer Editor

37

Sell More! Brand Yourself

40

House of Delegates Meeting Minutes

by Dave Kemp

42 TIADA Member Application 45 Local Chapters

46 Behind the Wheel

by Jeff Martin

What’s happening at w w w . t x i a d a . c o m ?

DID YOU KNOW THAT... TIADA Dealers can access the contact information of other dealer members in the Member Directories tab of the member’s only section? This is very helpful when you need to network with TIADA members in other parts of the state.

The Editor of the Texas Dealer magazine is Teresa Orkun, Marketing Communications Coordinator of TIADA. To change your address for subscription and/or for other TIADA products, call the TIADA state office at 800.442.5944, 512.244.6060 or fax 512.244.6218. E-mail: info@txiada.com. 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 It’s a Great Time to Be an Independent Automobile Dealer in Texas!

T

his industry is challenging, ever changing and never boring. Independent dealers represent the spirit of entrepreneurship this country is built on. I am proud to be a part of it, and proud to be the President of the Texas Independent Automobile Dealers Association, known to most as TIADA. I am committed to keeping the momentum going that others started way back in 1944.

The number one reason that TIADA exists is to accomplish what we as individual dealers cannot.

This includes many areas of shared concern, but is particularly true in the political arena, where decisions are made in Austin and DC that can be critical to our success, or devastating to our businesses.

Ask yourself; “Do I want to be at the table when decisions are made at the Capitol that can make or break my business?”

Of course you do!

What does “being at the table” look like?

Be in touch and involved. When the association puts out information or asks for you to contact your legislator or walk the halls of the Capitol in Austin, put in some time. If you don’t have time, make an INDEPAC contribution to support the campaigns of legislators that support our platform. Please don’t be the dealer that lets

by Phil

Lathrop

VP Auto Sales Inc. (Garland) TIADA PRESIDENT

others pay the way. When the association wins, all dealers win. A prime example of this is our recent win with HB 2076. You can read all about it on page 22.

TIADA is not those other guys, over there. It’s you and me. We the dealers!

As Legislative Chair for the past five years, I can assure you the secret is in the numbers when it comes to strength of the association. When we walk the halls of the Capitol meeting legislators, they are always interested in the number of our membership and the influence we have.

I personally try to get non-member dealers to join when the opportunity arises, but I am not the superstar some of our dealer members are. You may not be either.

This is why we are launching a program called “Just Get One” (See page 35 for more information about it.)

We all know cold calling is the toughest way to sell.

Selling to people you know and care about is a lot easier.

I am asking you to help promote membership by just getting one non-member dealer you know and respect to join our ranks in 2015-16. We are at 1,422 members. If we all “Just Get One” we will be at 2,844 within the year.

More members, more strength and more influence to educate dealers and protect our interests.

Diversification in our membership can also add to our strength and influence. When I look around at the auction today, I see a different group of dealers than I did

I am asking you to help promote membership by just getting one non-member dealer you know and respect to join our ranks in 2015-16.

October 2015

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D e a l e r

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even 20 short years ago. Gender, language and cultural differences give the dealer fabric a whole new look. If the association is to remain relevant, we must reach out to incorporate all dealers. Those dealers will reach out to others they know and we will be all inclusive. More strength and more influence!

We also know technology is rapidly becoming crucial to our businesses. The association has recognized and responded to the call. The TIADA Board of Directors just approved a 40% increase in the technology budget to improve the way the association communicates with dealers across Texas. The goal is to have the association website be an integral part of your daily operations. We want to tell our story to non-members and lay out the benefits of membership. We also want to improve dealer education on the web, allowing dealers and their staff to get information when and where they want it. It’s the future.

Dealers, please!

Be at the table when the decisions are being made at

the Capitol concerning your livelihood!

“Just Get One” and lets double our strength and

influence!

Log on to the TIADA website and see how it improves.

Send us your input for what you would like to see!

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board of directors meeting minutes August 9, 2015 | San Antonio, TX JW Marriott San Antonio Hill Country Resort & Spa

compiled by Texas Dealer staff

At its meeting on Sunday, August 9, 2015, TIADA took the following actions:

Danny Langfield reviewed the Business Partners Program renewal application from Repay.

President Brent Rhodes called the meeting to order at 11:15 a.m.

Old Business

Minutes Of Last Meeting

New Business

A motion was made to accept the minutes.

Moved by Kathrine Tolsch, seconded by Juan Sabillón.

Moved by Michael Thomasson, seconded by James Hobson — PASSED

A motion was made to amend the main motion to increase contract labor under technology by $15,000.

Treasurer’s Report

Treasurer Greg Zak presented the Treasurer’s report.

Moved by Phil Lathrop, seconded by Trey Crouch — Amendment PASSED

A motion was made to accept the report.

Main motion as amended — PASSED

Moved by Kathrine Tolsch, seconded by Ryan Winkelmann — PASSED

A motion was made to accept Business Partners Program renewal application from Repay.

Executive Director’s Report

Moved by Greg Zak, seconded by Ryan Winkelmann — PASSED

Secretary Kathrine Tolsch presented the minutes of the last Board of Directors Meeting.

Jeff Martin reviewed the schedule of events for the 2015 Annual Conference and Expo.

Jeff Martin reviewed the legislative summary and discussed the attendance of special guests Sen. Nichols and Rep. Muñoz.

Jeff Martin discussed the House of Delegates and officer elections.

Greg Zak reviewed the FY15 budget.

Greg Zak reviewed the FY16 proposed budget.

8

None

A motion was made to accept the proposed FY16 budget.

A motion was made to adjourn the meeting.

Moved by Kathrine Tolsch, seconded by Juan Sabillón.

Meeting adjourned at 1:33p.m.

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

T e x a s

D e a l e r

October 2015

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T e x a s

D e a l e r

October 2015

legal corner

A

Dealers’ Compliance Check List: Things You Can Fix Right Now

s we ease into the fourth quarter of the year (can 2015 really be coming to an end?), this might be an excellent time to perform a review of certain operating procedures of important, but often forgotten, obligations that can give rise to problems down the road.

I have found over the years that even the most compliance-conscious dealers can overlook certain lapses that occur in the rush of day-today business. Even items that have been properly established as part of the company’s standard operating procedures can get inadvertently dropped without being noticed.

The following is a list of some of the legal and administrative steps that deserve at least an annual compliance review: Dealer License Status. Has the

dealer license been properly renewed? Has anything changed that would give rise to the need to notify the Texas Division of Motor Vehicles? For instance, has the dealer’s location changed or have new locations been added?

Has ownership (or form of entity) changed? Has phone number, address or other identifying information changed? If the answer is “yes” to any of these queries, DMV should be notified to determine if a new license is necessary or if simple notification is sufficient. Go to txdmv.gov for more information.

OCCC Licensing. The same

questions need to be asked with regard to the Office of Consumer

October 2015

T e x a s

D e a l e r

Credit Commissioner and the dealership’s motor vehicle finance license(s). Also, if the dealer has a related finance company, it is required to have a separate OCCC motor vehicle finance license.

Most updates can be entered on-line at occc.texas.gov.

by Michael

Dunagan

W.

TIADA GENERAL

COUNSEL

...this might be an excellent time to perform a review of certain operating procedures of important, but often forgotten, obligations that can give rise to problems down the road.

Vehicle Inventory

Tax Reporting. An annual report with last year’s summary information must be filed with the county appraisal district’s chief appraiser, with a copy going to the county tax assessor, by February 1 of each year. The form is entitled “Dealer’s Motor Vehicle Inventory Declaration.” In addition, monthly statements must be filed with remittance to the county tax assessor (a copy to the county appraiser) by the 10th of each month, even if no sales took place. As part of the annual review, make sure all 12 monthly statements were filed the prior year.

Some dealers in Harris County have reported receiving penalty notices for late filing of VIT reports that run into the tens of thousands of dollars.

Transfer of Titles. Does the

dealer have a procedure in place

to see that all titles on retail sales are transferred timely? The failure to timely transfer title remains the most frequent violation on DMV violation lists. It also represents the reason for the greatest number of consumer complaints to DMV. A back-up plan should be established for dealing with situations where title certificates from sellers don’t arrive in time to secure transfer and plates for customers.

Recording of Liens. Does some one check every title transfer receipt to make sure the dealer’s 11

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December 2015 7 Keeping Your Dealership Legal and Compliant Dallas, TX Online registration available www.txiada.com

OTHER TIADA EVENTS October 2015 12 Board of Directors Meeting

Austin, TX

12

lien was properly recorded? In an amazing number of cases, negotiable free-and-clear title certificates are being sent to buyers who have only made a small down payment. The vehicle and/ or the title certificate often are then transferred to another dealer or a lender. This situation can be caused by the dealer’s failure to note the lien on the transfer papers, or a tax collector’s clerk failing to note the lien on the information sent to the state. A simple review of the receipt will verify whether the lien was recorded (See Dropped Liens Are Disastrous, But Avoidable in the April, 2015 issue of Texas Dealer).

Insurance Check-Up. Are open

lot and garage liability coverages current? Have personnel changes occurred that require changes in listed drivers? Has the insurance agent provided copies of the insurance policies, and does the dealer know what is and what is not covered? Does the dealer have a copy of a current liability policy for all repossession agents? Does the dealer have liability coverage for wrongful repossessions?

DMV rules require dealers to keep, among other things, copies of all title documents in their files. Beyond this requirement, dealers should for their own protection keep copies of all title certificates and dealer reassignments.

Proper Record

Keeping. DMV rules require dealers to keep, among other things, copies of all title documents in their files. Beyond this requirement, dealers should for their own protection keep copies of all title certificates and dealer reassignments. While it’s true that copies of title histories can be obtained from DMV, it takes a long time and the history is only as good as the documents submitted. For example, if a certified copy original title is subsequently obtained, the reassignments on the back of the original title certificate (along with mileage disclosures) will not show up on the record. The cautious dealer will always be able to produce a copy of the dealer reassignment coming to him and the reassignment going out, in case a problem arises later. A copy of all white slips (Form VTR-500-RTS) should be kept in the file.

Repossession Procedures. Do

dealership employees understand the legal requirements of repossession? Does the dealer have a procedure in place for sending proper notices, handling personal property found in repossessed vehicles, and handling re-sales?

Are deficiencies and surpluses properly calculated and accounted for? Answers can be found in Texas Automobile Repossession: A Lien Holder’s Legal Guide, available from TIADA.

T e x a s

D e a l e r

October 2015

Buyers Guides. Are steps be ing taken to insure that Buyers Guides are properly posted on all vehicles offered for sale as required by the Federal Trade Commission Used Car Rule?

Are they properly filled out? Are Spanish-language versions available when negotiations take place in Spanish? A dealer in Arkansas recently agreed to a $90,000 civil penalty to settle an FTC enforcement action for failing to display Buyers Guides. Texas DMV also enforces the Buyers Guide requirements.

IRS Accrual Basis Reporting.

The federal tax code requires installment sellers (such as BHPH dealers) to report their income using the accrual (as opposed to the cash) basis. Many dealers have found this out for the first time during an IRS audit, which can have disastrous results.

BHPH dealers should make sure their accountants are aware of this requirement and are reporting income properly.

Related Finance Company

Annual Comptroller Registration. As a result of the negative income tax implications of accrual basis reporting (see the previous item above), many BHPH dealers have set up related finance companies to lessen their tax costs. But in order to continue to defer sales taxes on contracts, an RFC must file an annual registration with the state comptroller’s office and pay a $600 fee. The failure to renew the annual registration has resulted in acceleration of sales taxes on assigned contracts for some dealers.

OCCC Documentary Fee

Authorization. Any dealer that charges more than $50 for doc

fees is required to file an on-line notification. Up to $125 can be charged without submitting justification documentation, if the on-line request is received

by OCCC. Dealers should make sure they have a verification of the reporting from OCCC. Failure to prove verification of proper notification has led to some dealers being forced to refund amounts that were charged above $50.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 35 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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TIADA Dealer Academy 2015 Keeping Your Dealership Legal and Compliant a seminar with

Michael W. Dunagan, TIADA General Counsel

Author of the standard-setting books, “Dealer Financing of Used Car Sales” and “Texas Automobile Repossession: A Lien Holder’s Legal Guide.”

Michael W. Dunagan’s ongoing quarterly compliance seminar features updates on both federal and state regulations with a focus on advanced dealership financing issues. This is the practical side of compliance from the association that understands you have a business to run — and you want to run it right.

The seminar will focus on advanced financing concepts, with special emphasis on in-house financing, repossession & bankruptcy issues, OCCC compliance and federal regulations.

• Customer ID requirements – what is acceptable?

• Privacy Notice requirements – do we need a new, custom form?

• Risk-Based Pricing – what does the rule require?

• Credit Card Convenience Fees – what is allowable?

• Adverse Action Rule – who is affected?

• Consumer Financial Protection Bureau (CFPB) – what can dealers expect?

• Bankruptcy – when do we have to give the vehicle back?

• Repossessions – When does the 60% rule apply? Is repo notice required? Do we have to return custom wheels? Do we have to disclose a GPS unit?

Sponsored by: Collateral Protection Insurance www.cpiai.com

• OCCC Audits – what are the most common mistakes dealers make?

• TxDMV Enforcement – advertising violations, title management issues & more

PLUS:

• Texas Legislative Session – an update on bills that will affect the industry • Q & A – don’t leave until you get all your questions answered by the top industry expert in Texas, Michael W. Dunagan This class has been approved by NIADA as a Certified Master Dealer continuing education course.

Monday, October 19, 2015 Corpus Christi, Texas

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Texas Independent Automobile Dealers Association

regulation matters The Deal Jacket

by Danny

I

t’s a simple question, really, and one we get all the time at the association: what documents are required in the deal jacket? Well, like they say, it may be simple, but it’s not easy. Let’s tackle it anyway.

In our Dealer 101 class, we devote 45 minutes to the “SOLD! The Deal Jacket” module, where we complete all the forms for a mock deal. We contemplate a scenario where the buyer is paying cash, the dealer has a clear title in hand, the vehicle is sold as-is and there is no trade in.

This is the simplest possible retail sales scenario a dealer will face, yet we still have our hands full just getting through those documents in that time. Space constraints will not permit a complete discussion of all docs that could possibly be required in a deal jacket (not sure the magazine has that many pages), but we will go over the required and recommended docs for the sales scenario above.

Title

Langfield

TIADA DEPUTY DIRECTOR

...what documents are required in the deal jacket? Well, like they say, it may be simple, but it’s not easy.

You will need a copy of the front and back of the title, signed by the buyer and seller.

Vehicle Purchase Record

This is the record of you, the dealer, purchasing the vehicle for inventory. You will need an auction receipt or purchase record showing the date of purchase, VIN, name and address of seller. If you purchased from an individual you will also need to record their ID type and corresponding ID number.

Buyer’s Order/Bill of Sale

This is one we spend a lot of time on, as this document specifies the sale price and should correctly itemize charges for TT&L, VIT, doc fee, etc…

Buyers Guide (As-Is)

The guide should be signed by the buyer and the back needs to be completed with the dealer’s information.

You are required to retain a copy of the customer’s ID. Subject to the ID requirements, the document must be a government issued photo ID with a date of birth, expiration date and unique identification number. It may not be expired by more than 12 months as of the date of sale.

T e x a s

A dealer is required to transfer the vehicle in the buyer’s county of residence, the dealer’s county, or the lien holder’s county, as directed by the buyer on this form.

Buyer’s Tag Receipt

You need to retain the dealer’s copy of the buyer’s tag receipt showing an etag was issued.

130-U Application for Texas Certificate of Title

Original must be signed by buyer and seller and submitted to the tax office with evidence of ownership. A copy must be kept in the deal jacket.

A Copy of the Customer’s Payment Instrument

Receipt for cash, copy of check, copy of bank draft, etc…

Customer’s ID

October 2015

VTR-136 County of Title Issuance

D e a l e r

VTR-500 Title Application Receipt (the “white slip”)

The tax office will provide you this form after you have applied for title. A copy must be kept in the deal jacket.

17

Every in-state retail sale is required to have the documentation above. In addition, TIADA recommends the following documents (which are NOT required): Test Drive Agreement

Arbitration Agreement

Motor Vehicle Warranty Disclaimer (if sold as-is)

Disclosure of Known Defects

Disclosure on Airbags

Liability Insurance Requirement statement

It is critical to note that there are many more forms that may be required in different sales scenarios. A few examples: a Sales Tax Exemption form for out of state sales; Disclosure of Equity in Trade-In for any deal that includes a trade-in; a Consignment Agreement for any consignment deal; POA and/or other supporting title documents… the list goes on and on. And of course, a financed deal requires forms and disclosures above and beyond that of a cash sale.

What documents are required in the deal jacket — a simple question, huh? The question may be simple, but the answer is anything but.

Special thanks to TxDMV Enforcement Managing Attorney Ray Willoughby and staff for reviewing this article.

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www.adesa.com

AUSTIN

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

ADESA Austin

Alliance Auto Auction Dallas

www.adesa.com

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

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

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

Insurance Auto Auctions* www.iaai.com

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

Metro Austin Auto Auction www.metroautoauction.com

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

www.allianceautoauction.com

9426 Lakefield Blvd.

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

America Can! Cars for Kids www.charitycarauctions.org

1911 E. Division Arlington, TX 76011 972.274.5437, Fax 214.944.1950 General Manager: Jennifer Kitchens Saturday, 9:00 a.m.

America’s AA Dallas

www.americasautoauction.com

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

Insurance Auto Auctions* www.iaai.com

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

Insurance Auto Auctions* www.iaai.com

* VIP card accepted for sell fees only 20

Christi

Get up to $200 off a buy or sell fee at these participating auctions using your TIADA VIP Auction Card!

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

Manheim Dallas Fort Worth 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.

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: Lori Pidgeon Wednesday, 9:30 AM In-op Video Sale / 10:00 AM Standard Sale.

Insurance Auto Auctions* 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: Brian Walker Thursday, 10:00 a.m.

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Insurance Auto Auctions*

SAN ANTONIO

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

ADESA San Antonio

www.iaai.com

Manheim Houston www.manheim.com

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

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

Insurance Auto Auctions* www.iaai.com

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

HOUSTON ADESA Houston www.adesa.com

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

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.

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

Manheim Texas Hobby www.manheim.com

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

LONGVIEW Alliance Auto Auction Longview www.allianceautoauction.com

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

Insurance Auto Auctions* 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 Insurance Auto Auctions* 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.

MIDLAND / ODESSA

Insurance Auto Auctions*

Insurance Auto Auctions*

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

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

www.iaai.com

October 2015

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www.iaai.com

www.adesa.com

200 S. Callaghan Rd San Antonio, TX 78227 210.434.4999, Fax 210.431.0645 General Manager: Sam D’Amato Thursday, 10:00 a.m.

Insurance Auto Auctions* 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.

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: Darren Darnell Friday, 10:00 a.m.

Heart of Texas Auto Auction www.heartoftexasautoauction.com

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

OKLAHOMA CITY, OK Dealer’s Auto Auction of OKC, Inc. www.daaokc.com

1028 South Portland Oklahoma City, OK 73108 405.947.2886, Fax 405.943.8370 General Manager: Gary Smith Thursday, 8:30 a.m.

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on the cover

by Danny Langfield

TIADA Deputy Director

A victory at the Legislature TIADA Passes Mechanic’s Lien Transferability Bill

T

What’s the Problem?

Circa 2009, the problem was fraudulent mechanic’s liens. For many years an increasing number of unscrupulous individuals posing as “mechanics” had been taking advantage of the fact that in Texas, an auto mechanic’s lien is superior to a previously recorded car

legislature that year, and thanks to the efforts of Rep. Patricia Harless (TIADA past president) and Sen. John Carona, a bill was passed that brought significant reforms to the process. Among those reforms was a key requirement that a mechanic not only notify the owner and any lienholder of the mechanic’s lien, but that he also file an official notification with the county tax assessorcollector. The TAC was then required to notify the lien holder, thus ensuring a car creditor did indeed get reliable, timely notice.

In January of 2015, a bulletin was sent to the TAC’s by TxDMV which modified this process. TxDMV took the position that, according

creditor’s lien. Although a mechanic was required to provide certified mail notice of his lien to a car creditor, notice from these individuals commonly lacked complete information, or provided no information at all. Translation: the bad guys just wanted the certified mail receipt to allow them to get a clean title. In many cases the fraudsters had no desire to actually “notify” the car creditor at all. As a result, fraudulent “mechanics” were able to sell a vehicle out from under the lienholder without obtaining a release of lien, and in some cases completely unbeknownst to the lienholder.

TIADA brought the issue of fraudulent mechanic’s liens to the

to statute, a mechanic could actually foreclose on a lien 30 days after providing notice to the lienholder, rather than 30 days after providing notice to the TAC. The upshot of this new interpretation was that a mechanic could conceivably foreclose on a lien prior to the lienholder receiving notice of the lien from the TAC. Needless to say, this was not good news for car creditors, as this created a serious loophole for the bad guys to potentially exploit.

Although it was somewhat late in the process to be asking for a bill to be filed, TIADA brought the matter to Rep. Rene Oliveira, chairman of the House Business & Industry committee and the 2014 recipient

his is the story of the successful passage of HB 2076 and the people who made it happen. Like a lot of legislation, this bill took a number of unexpected twists and turns on its journey to the governor’s desk. So, with such a tale to tell, where to start? Well, how about at the beginning…

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TRANSCRIPT OF PHIL LATHROP’S TESTIMONY BEFORE THE SENATE BUSINESS COMMERCE COMMITTEE, 5/21/2015

Thank you Mr. Chairman and committee members. My name is Phil Lathrop, I’m an independent used car dealer, and I’ve run a family business in Garland, TX for 28 years. For all of these years, the mechanic’s lien was defined as a possessory lien. As long as the mechanic was in possession of the vehicle then he deserved to get his money. We stand behind that; we think that if somebody works on a car they do need to be paid. The challenge to this is 3rd party entities that have come forward transferring these mechanic liens and actually going and repossessing cars, and now the definition is not as solid. The House Business and Industry committee looked into the existing statute and said that the wording was clear. But as time has gone by, some people in the industry and third party financing have approached the Tax Assessor’s Office in Denton and threatened to sue the Motor Vehicle Division. And now the court system has given varying opinions on this matter, so we definitely need some clarification — and this amendment would do that. I do use a line of credit from a bank in my business and the fear is this: if our collateral, which is the portfolio of loans that we give to the bank, is questionable as to the security that is put forth, or the banks feel that their collateral is threatened by these situations of 3rd party financing, then the fear is that the banks will exit the industry. And that would be some pretty big fall out for us. So I’m asking you to support 2076. I thank you for your time and if you have any questions I’ll be happy to answer.

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of the TIADA Independent Award. Chairman Oliveira graciously agreed to author HB 2076, a cleanup bill that would amend the statute to close this loophole. The bill was not expected to encounter any substantial opposition; as one might expect, the interests of the particular type of bad guy that might oppose such a bill are not very well represented at the Capitol.

Problem solved, right? Not so fast, my friend…

Another front on the mechanic’s lien issue had opened in 2013 when Jim Pitts, chairman of the powerful House Appropriations committee, filed a bill that would have effectively allowed a mechanic’s lien (and its superior lien position) to be transferrable to a third party finance company that had financed the vehicle repair. TIADA worked diligently with the chairman and

his staff to explain the destabilizing effect such a bill could have on the industry for everyone from BHPH dealers to captive finance companies. In the end, Chairman Pitts agreed with the association’s position and allowed the bill to die in committee.

At the request of TIADA and recognizing the importance of the issue, House Speaker Joe Strauss assigned the matter as a topic for an interim study by the B&I committee. On May 27, 2014, TIADA testified before the committee, strongly urging the legislators to conclude that mechanic’s liens were not, in fact, transferrable under current statute.

In the meantime, a finance company called Fix It Today (FIT) had begun financing vehicle repairs, then foreclosing on a “mechanic’s lien” when the customer defaulted on the repair note. FIT would repossess the vehicle with no regard

for the existing car creditor’s lien, claiming their “mechanic’s lien” was superior. As one might suspect, this resulted in litigation, with two different cases landing in appellate courts in the 2nd and 8th districts of Texas, respectively.

TIADA State President and thenLegislative Committee Chair Phil Lathrop, who testified in favor of the bill before the Senate Business & Commerce Committee, underscored the importance of the issue: “We have to realize this is a big deal. A mechanic’s lien is superior to ours, so when a third-party finance company’s business model is to rip off dealers by buying a superior lien position, we have a problem.”

FIT made no secret of the fact that their business model was to exploit the superior position of a mechanic’s lien to guarantee their loans. In the April 2015 edition of the Superlawyers publication, FIT’s

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attorney made the following statement: “So whenever these guys repair a vehicle, they have the toppriority lien. It could revolutionize this industry. Fix It Today was built based on my advice for how a company that expands across the state of Texas — as opposed to just being an individual shop in one locale — could utilize workers’ liens to secure their fees.”

The primary issue for TIADA members was not the threat of losing a vehicle to a mechanic’s lien — a relatively rare occurrence. A far more serious matter was the destabilizing effect that transferrable mechanic’s liens could have on the industry by seriously threatening the lines of credit dealers are dependent upon.

As dealers know, banks provide that line of credit because it is secured by a receivables portfolio — retail installment contracts containing solid, first-priority liens. TIADA realized that, if a finance company could step in at any time and claim an unrecorded mechanic’s lien, superior to the original lien, with no notice, those lines of credit would be severely jeopardized. The resulting pullback by the banks could threaten the stability of the vehicle financing industry as a whole.

In May of 2015, the appellate courts handed down decisions with contradictory opinions. Fix It Today claimed victory in one case, openly threatening to sue the Texas Department of Motor Vehicles if the agency didn’t instruct counties to start processing the company’s mechanic’s lien claims immediately.

The association realized the urgent need to take action and appealed to Senator Robert Nichols, Chairman of the Transportation committee, for help. Sen. Nichols had agreed to carry the original cleanup bill which had just recently been passed out of the House and assigned to the Senate Committee on Business and Commerce.

However, TIADA was now asking October 2015

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204

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for a substantial amendment to the bill that would clarify that mechanic’s liens were not transferrable. This was a big ask — and with only one week left before the end of the session, there were no other options available.

Fortunately, the offices of both Chairman Nichols and Chairman Oliveira were willing to step forward and accept the challenge of addressing this issue.

“When Senator Nichols and the independent dealers came to us with the amendment, we were immediately supportive,” stated JJ Garza, chief of staff for Chairman Oliveira. “Transferability of mechanic’s liens can have a very destabilizing effect on the industry. In order to keep that destabilizing effect from occurring, we knew something had to be done.”

HB 2076 achieved final passage and was signed into law by the Governor on June 19, 2015.

“Kudos to Senator Nichols and Representative Oliveira for their leadership on this issue, we couldn’t have asked for more,” said TIADA executive director Jeff Martin. “But I also want to say, this victory just doesn’t happen without the support of our dealer members.

They called, they emailed, they walked the halls of the Capitol, they testified before committees, and we got a big win. This is what associations are supposed to do — and our dealers did it.”

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As a recent guest at the TIADA conference, Senator Robert Nichols sent a letter thanking the members of the association for having him as a guest as well as an open letter to the members which you will find below:

Senator Robert Nichols

Senate District 3 www.senate.state.tx.us (512) 463-0103

I appreciated meeting and speaking to many of you at the Texas Independent Automobile Dealers Association Annual Conference on August 11, 2015. During my speech, I told you about Proposition 7 which will provide much needed funding for the state’s aging and congested transportation system.

This measure will be on the ballot on November 3rd, 2015. By voting FOR Proposition 7, Texans will have the opportunity to make a critical investment in our state’s economic future and the safety of the traveling public by supporting Proposition 7.

The average Texan spends nearly 50 hours each year idling in traffic, costing over $1,000 in lost productivity and wasted fuel. With more than 1,000 new people making Texas their home every day, commutes are expected to grow longer.

Fortunately, Texans will have an opportunity to reclaim some of that lost time and money by supporting Proposition 7 on the ballot during the upcoming November 3rd, 2015 election.

Proposition 7 would invest $2.5 billion per year to build non-tolled roads and bridges in Texas. By 2025, that amount is expected to grow to $3.5 billion per year. The measure would constitutionally dedicate a portion of the existing state sales taxes — including taxes paid on new vehicles — to transportation, meaning no new taxes would be created. If passed by voters, this legislation will be the largest single increase in transportation funding in Texas history, without issuing debt.

Funding transportation is a core function of state government. Not only do our highways, roads and bridges connect us as a state, they also serve as ribbons of economic activity. A well-maintained transportation system helps businesses’ to deliver their goods to market, gets Texans to work on time and keeps kids safe on their commute to and from school.

Texas has traditionally relied on a federal gas tax, a state gas tax and state vehicle registration fees to fund transportation infrastructure. The state gas tax has not been adjusted since 1991 and vehicle registration fees have not significantly changed since 1987. Since that time, due to inflation, the cost of building and maintaining roads and bridges has increased over 150 percent. As vehicles become more fuel efficient, less fuel tax revenue is available to invest in new roads, even though cars are driving more miles than ever before.

Two years ago, transportation planners projected the need for $5 billion per year in additional revenues to maintain current levels of congestion. Voters overwhelmingly supported a transportation funding measure in November of 2014 to help close that gap, but it only took Texas about halfway down the road.

Governor Greg Abbott saw the need to address this and designated transportation funding as an emergency item for the Legislature during the 84th Legislative session. In response, 180 of 181 legislators – Republicans and Democrats, rural and urban - approved Senate Joint Resolution 5, the legislative measure for Proposition 7.

By voting FOR Proposition 7, Texans will help solve the shortfall in transportation funding and make a critical investment in our state’s future. Building for the future keeps Texas competitive and productive. At the same time, investing in new transportation infrastructure improves congestion, saves time and increases safety. Please join with me on November 3rd by voting FOR Proposition 7.

October 2015

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feature Best Practices in Automotive Social Media Use

by Angela West

S

ocial media helps you brand your dealership in the local community, get word out to potential customers, and capture leads from one of the most coveted generations: millennials. Most Texas dealerships have come around to the idea that they need to be on social media. But how do you use it correctly? Here are some best practices to get you started.

#1 SOCIAL MEDIA BEST PRACTICE: It’s not all about you

More importantly, it’s not all about immediate ROI. Social media is a brand building exercise rather than a way to make sales. It can bring in potential leads, but only if used correctly. Picture yourself as a potential buyer. You have one local dealership that constantly posts nothing but their vehicle listings and promotions.

You have another local dealership that posts about community involvement, relevant news in the auto industry mixed in with their listings. Which one builds trust better? The answer is obvious.

Social media is a conversation rather than a broadcasting vehicle — save broadcasting for radio ads and billboards and make it a truly social venture. Every auto dealership has a certain amount of community involvement; sponsoring local sports teams, charity drives, and more. Leverage this work to build trust with your followers and build your following.

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Tip: When you post about local sports teams, charities, or anything else involving another organization, be sure to reference their Twitter handle (e.g. @charity) in your posts. This will increase your chances of being retweeted by them.

#2 SOCIAL MEDIA BEST PRACTICE: Facebook advertising

While advertising in Google is never a waste of money, advertising on Facebook is more likely to bring in local foot traffic. Facebook’s main strength is the ability to finely target demographics and achieve specific objectives. When you first set up a campaign at https://www. facebook.com/ads, you are presented with this screen:

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If your purpose is to drive sales, you can choose to boost vehicle listing posts or drive people to your website. If your purpose is to build a following for your page, you would choose to promote your page. If you want to increase engagement on your Facebook page and build trust, you would boost community involvement posts. Obviously a mix of these objectives is best, with less emphasis being on sales and more being on boosting your page likes and building trust.

As we mentioned before, demographics and geotargeting are where Facebook shines. You can drill down your ad by postal code if you are in a larger metropolitan area choose to show ads only to parents, choose age, education level, and much more. This is where Facebook really beats Google for local businesses, although you should continue any successful ad

campaigns you have with Google to keep driving traffic to your website.

SOCIAL MEDIA BEST PRACTICE #3: Have a Dedicated Employee on Social Media

Melodie Quinn is the Internal Marketing Manager for Taylor Automall, in Kingston, Ontario, Canada.

Quinn has helped build a following of over 1,700 on Twitter and almost 1,600 on Facebook. Taylor Automall has the perfect mix of promotions, charity events and popular sporting events posted on both Facebook and Twitter. One of the keys to this is that Quinn is handling all social media — a harried owner or sales manager isn’t posting to their social media channels in between writing deals or conducting other important business. While an agency can handle your social media management, the best way to handle it is with an employee who is enmeshed in the culture of the dealership. Here are Quinn’s tips for promoting your dealership on social media.

Follow local people and companies to get followers.

#FF (Follow Friday) is a great way to get new

followers.

Be human and engaging — compliment an artist

who displays their art, etc.

Never be mean, no poking fun. Be positive.

Selling via social media doesn’t work — unless you

are selling for others, like pizza places, new businesses, etc.

Share charity events and items, and retweet local

charity statuses.

Share national brand items.

Posting about vehicles being delivered isn’t best

practice. Having a customer share their new vehicle to your Facebook page is best.

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Ask questions to get engagement.

Measure insights to all social media.

SOCIAL MEDIA BEST PRACTICE #4: Leverage the tools you have to create good listings

Excellent social media posts about your current vehicle stock start with well-written, recent listings. While social media is meant to build trust and your brand in the local community, the vehicle listings that are posted may tweak someone’s interest enough to get them into your dealership.

Dealertrack is already known as a powerful suite of tools to source vehicles at auctions, set quick pricing for trade-ins, price vehicles once they are on the lot, and secure financing for a customer. But it has a very powerful tool, Autolink, which creates unique vehicle descriptions automatically for every site you want to list it on, including your own.

Since you will have already scanned the vehicle VIN to get information about it, all of this information will show when you go to create a description; as will the vehicle pictures.

You can use your iOS device out on the lot.

Dealertrack purchases long and short tail keywords from Google each month that are performing well in searches to help auto-write each description with recent

well-performing key phrases.

You can then edit the description if you want to and set it up to auto-post to each website that you list on; this is very handy if you want to stay on top of Kijiji listings. It will also automatically cross-post when you make changes to the listing, such as pricing, so you don’t need to go each site and make changes manually.

What does this mean for social media? A well-written, comprehensive vehicle listing to link to with pictures that are ready to upload to your Facebook page, with no extra work to ensure a listing has pictures and the correct pricing.

You could spend lots of time reading up on best practices for social media. But in the end, the ones that work the best for auto dealerships are having good content to share in the first place, building trust by broadcasting your involvement in your community, having a dedicated person who is in your dealership managing your social media, and taking advantage of Facebook advertising.

Reprinted with permission from the Ontario Dealer magazine.

Angela West specializes in web copywriting and social media management. She’s written about tech and social media for many print and online publications, including PC World’s Business Center and The Ontario Dealer magazine. www.workingwebcopy.com

UNITED ACCEPTANCE, INC

877-281-2360 October 2015

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Please Welcome Our Newest TIADA Members DEALER MEMBERS 777 Auto Group Joe Walker P.O. Box 496 Lewisville, TX 75057 A & A Motors Alfred Arguello 831 S. WW White Road San Antonio, TX 78220 AAA Auto Sales William Andrews 5799 S-H 19 Elkhart, TX 75839 ADK Interprice Adrian Sanchez 8605 N. Lamar Blvd Austin, TX 78753 Advanced Auto Group LLC Rogelio Guerrero 5700 Manchaca Rd ste 570 Austin, TX 78745 Airport Auto Sales David Schwertner 5516 Martin Luther King Jr Blvd Killeen, TX 76543 American Auto & Truck Sales Guy Paredez 8587 Bandera Road San Antonio, TX 78250 Auto SATX Matthew Ranjbar 1836 Jackson Keller San Antonio, TX 78213 AutoPark Dallas Moe Nimri 4115 Billy Mitchell Dr Addison, TX 75001 B & S Auto Sales Bill Hill 800 23rd St McAllen, TX 78501

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Cityview Classic Cars LLC Jay Satterfield 5031 Bryant Irvin Rd Ft Worth, TX 76132

Irving Motors Corp.

Jose Engler 3907 Blanco Road San Antonio, TX 78212

Peddle Tim Yarosh 111 West 6th Street, Suite 300 Austin, TX 78701

Coyote Autos Mustafa Yassin PO Box 412 Helotes, TX 78023

Irving Motors IH-10 Branch Jose Engler 5400 IH10 West San Antonio, TX 78201

PM Stanley David Lubinsky 1835 Forms Dr, Suite 120 Carrollton, TX 75006

DAKK Fine Cars, LLC Darrell Lyons 1019 Greenbriar Lane Duncanville, TX 75137

J.E. Motors Juan Alcaraz B. 624 W. Hildenbrand Ave San Antonio, TX 78212

Premium Autos Ricky Rodrigues 2222 North Beckley Ave Dallas, TX 75208

Davis Auto Sales 4 U, LLC David Davis 14231 Highway 290 East Manor, TX 78653

Jim’s Discount Auto Center LLC Elizabeth Volz 706 E. 53rd St. Austin, TX 78751

Quality Motors Cars Patricio Canavati 2702 Santa Ursula Ave Laredo, TX 78040

KD Auto Sales Elton Rosales 211 S Business I35 New Braunfels, TX 78130

R. Franklin Automotive Group Robert Williams PO Box 5397 Chicago, IL 60680

Kingdom Auto Sales, LLC Oscar Quinonez 2008 N Beach St Haltom City, TX 76111

Ray’s Automotive & Towing Ray Arias 2925 MacArthur Drive Waco, TX 76708

Kotie’s Cars, LLC David Powell 2325 Franklin Ave Waco, TX 76701

River Chase Motors Rick Brandon 7249 FM 306 New Braunfels, TX 78132

L.I.B. Auto Sales David Perales 2814 Hillcres Dr San Antonio, TX 78201

Rivercity Auto Sales Mahmoud Miri 1131 Basse Rd San Antonio, TX 78212

Love Field Auto Sales Scott Newbury 7304 Harry Hines Blvd Dallas, TX 75235

Round Rock Classic Cars David Tieh 1410 E Palm Valley Blvd Round Rock, TX 78664

Lynn Auto Sales LLC Sergio Valdez 27402 Cypress Wood Dr Spring, TX 77373

San Diego Auto Sales Co. Cecilia Bernal 8819 Airline Drive, Suite #4 Houston, TX 77037

DFW Auto Finance & Sales Jennifer Pickett 6800 Lake Worth Blvd Lake Worth, TX 76135 Driven Motors, Inc. Amy Kennedy 1232 W Marshall Ave Longview, TX 75604 ES Car Auto Carlos Luevano 7121 Alameda El Paso, TX 79915 EZ Auto Connection LLC Edgar Zarins 11018 N IH35 San Antonio, TX 78233 Fincher’s Texas Best Auto & Truck Sales 2 Gale Brooks 8450 North Freeway Houston, TX 77037 God Trucks & Cars Luis Garcia 405 Gladstone San Antonio, TX 78214

Balbisi Auto Sales Laura Balbisi 819 New Laredo Hwy San Antonio, TX 78211

Guaranteed Automotive Chinweuba Nwankwo 14229 Minetta Street Houston, TX 77035

Manna Motors LLC Kathy Castaneda 810 E. Hwy 121 Lewisville, TX 75057

Skipper Brothers Motors, Inc. Jeremy Skipper PO Box 7210 Glen Rose, TX 76043

Car King Phillip Ellis 114 N. Weidner Rd. #1 San Antonio, TX 78233

Harlingen Auto Credit Inc George Longoria 1116 West Harrison Ave Harlingen, TX 78550

Marvel Deals LLC Leo Gonzalez 2010 E. Business 83 Mission, TX 78572

Sterling Import Motors Kimberly Daniel-Nix 2819 Blystone Ln Dallas, TX 78220

Casey Autoplex Kevin Casey PO Box 2386 League City, TX 77574

Heavenly Motors of Texas Rachael Mahaffey 141 Industrial Drive Boerne, TX 78006

Meridian Auto Sales LLC Jorge Asencio 2525 NW Loop 410 San Antonio, TX 78230

Toro Auto Sales James Gonzalez 1001 Guadalupe St Laredo, TX 78040

City Auto Sales Maricela Hashem 923 S. 7th St Harlingen, TX 78550

Hernandez Auto Sales Jose Hernandez 2304 E. Main St, Ste C Grand Prairie, TX 75050

MKZ Trading inc Mike Stanfield 3800 Lime Kiln Rd San Marcos, TX 78666

Triple R Motors Inc Tony Rohan PO Box 614 Yoakum, TX 77995 T e x a s

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October 2015

Please Welcome Our Newest TIADA Members Ultimate Motorsport Inc Cheryl Haseeb 10311 Altonbury Lane Houston, TX 77031 Vega’s Autos INC Adriana Vega 1009 W.Hhwy 83 Pharr, TX 78577 W. H. Genesis Group LLC Jeanette Bynumn 101 Crown Rd. Walton Park, TX 76087 W.A. Auto Sales, Inc. Amanda Andrews 264 Iva Bell Lane Liberty Hill, TX 78642 Wills Point Auto Sales Brett Jensen 715 Houston St Wills Point, TX 75169

House of Webster Zack Marsh P.O. Box 1988 Rogers, AR 72757

ASSOCIATE MEMBERS America’s Auto Auction – ‚ Houston Buddy Cheney 1826 Almeda Genoa Rd. Houston, TX 77047

Houston Auto Auction Tim Bowers 6767 North Freeway Houston, TX 77076

Amy L Taylor & Company Amy Taylor 8700 Manchaca, Ste 403 Austin, TX 78748

Innovative F&I Services Marty Lisk PO Box 2163 Cypress, TX 77429

Belton Auto Auction Joe Lavigne 212 E Loop 121 Belton, TX 76513 CTEX Dealer Solutions, LLC Bill Redmon 1203B E. Grand Ave #332 Marshall, TX 75670 DealerTrack Ernest Lattimer 1111 Marcus Avenue, Suite MO4 Lake Success, NY 11042 Diamond Warranty Corp.

Jim Limongelli PO Box 970 Pittston, PA 18643

Manheim El Paso Brian Walker 485 Coates Drive El Paso, TX 79932 Paymaxx Pro Lisa Leedom 2601 Cattleman Rd, Suite 200 Sarasota, FL 34232 ProMax Unlimited Mark Bledsoe 226 Charlie Way Weatherford, TX 76087

RouteOne Glenn Burrow 31500 Northwestern Hwy, Ste 200 Farmington Hills, MI 48334 SiriusXM Radio Kathy Sweeney 1221 Avenue of the Americas New York, NY 10020 Texas Direct Dealer Services William Palmer 2200 Pool Rd, Ste 210 Grapevine, TX 76051 The Automotive Advertising Agency Marco Camacho 706 W. Ben White Blvd.

Suite 202B Austin, TX 78704 Veloxiti, Inc. Larry Lafferty 3650 Brookside Parkway, Suite 400 Alpharetta, GA 30022 ZeroRisk HR Inc Ja’Net Penn 12222 Merit Dr, Ste 1600 Dallas, TX 75251-3297

SPECIALIZING IN THE INSURANCE NEEDS OF THE TEXAS USED CAR DEALER FOR OVER 25 YEARS

(800) 727-7124 • Garage Liability • Dealers Open Lot • Wreckers & Haulers

• Dealer Bonds • Garagekeepers • Workers Compensation

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

www.teiinsurance.com October 2015

T e x a s

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33

e-Tag Supplies —

In Stock for Immediate Shipment!

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316 bpc #24-4

feature Just Get One

by Teresa Orkun

Texas Dealer Editor

“J

ust Get One” is the new slogan for the 2016 membership recruitment campaign. This is also TIADA’s new board president Phil Lathrop’s plea to our current members.

Growing its membership is a goal of every association. The more members an association has, the more influence it has with legislators, government agencies and industry decisionmakers, and therefore the more power to protect our industry interests.

Phil gave a powerful acceptance speech during the TIADA conference that resonated with those in attendance. By the next day, several dealers were thinking out loud names of people they know that could benefit from a TIADA membership.

“I already know seven people I’m going to approach and ask them to join TIADA”, Vicente Estrada of Mi Patria Auto Sales in Houston told the TIADA staff during the farewell breakfast.

We ended last year with a record 1418 members; this year the goal is 1475 and we are not too far from it. If every member followed Phil’s request and enlisted just one new member we could easily reach 3,000 by the end of next year.

Just Get One is an attainable goal for everyone, even for the small dealerships that are just starting out. One new member might not sound like a big impact but when everyone does it the impact is huge; the power is in the numbers and, just like with everything else, one individual dealer alone cannot make a big difference, but the association as a whole can, and if everyone participates then the impact is even bigger.

TIADA’s top recruiter Wayne Meagher, who just earned his 3rd Crystal Eagle award in a row, tells October 2015

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us “I fully adhere to the premise that a strong business organization is beneficial to me as a dealer and projects a professional and honest image of our industry, both to legislators and regulators as well as the public. TIADA saves my business money, keeps my entity viable, and contributes to my bottom line.”

All of you are salespeople and if you can sell a used car, it should be a piece of cake to Just Get One and sell one TIADA membership to a fellow dealer that you know. By getting just one you will be doing your part. We know that not everyone can be like Wayne but all of you can Just Get One! Many prospects might, at first, not see the bigger picture and intangible benefits of a strong, large association; but everyone can see the benefit of the very tangible VIP Auction Card. “It’s pretty easy to explain the value of a TIADA membership to a dealer who can save up to $200 on the spot in multiple places by using our VIP auction card,” says Aimee Frei-Miller, who with fellow TIADA Staff Cristina Rosales Fowler, tour the different auction sites recruiting new members and spreading the word about TIADA membership benefits.

So think of who you are going to reach out to next in your quest to Just Get One new member. Who will be happy that you shared the benefits of the VIP card? It is a WINWIN-WIN situation as 1) the association membership grows; 2) the new member saves money with the VIP card; and 3) YOU too can win prizes for helping us recruit. Look out for the new 2016 recruitment challenge details, a recap of the 2015 TIADA Day at the Auction Tour, and the announcement of the 2015 Top Recruiter in the November issue of this magazine.

35

NEED CARS?

We've got thousands to choose from.

TEXASDIRECTAUTO.COM

feature Sell More! Brand Yourself.

by Dave Kemp

E

verybody in Texas is selling your type of cars and trucks, right? So why should prospective buyers buy from you? Because your price is better…

I doubt it. Your vehicle is special… Yeah, sure. Your trade-in appraisals are higher… Duh. Why should they buy from you when similar vehicles can be purchased almost around the corner?

To sell more you have to stand out in this crowd.

Do you? I don’t mean that you are the tallest or the shortest or widest salesperson they have ever met. I mean, does your sales process create a positive difference about YOU… personally in the mind of your buyer?

Think about buying used vehicles from your customer’s point of view. Surveys indicate most customers come to a dealership expecting to meet a sales person more interested in selling something, anything, rather than helping them make the ‘right decision’.

Your prospect’s defense is up before you even enter the ring.

So your sales approach has to say right from the get go, “Hey, I am not the same as every salesperson you have met. Give me a chance to prove it.” If you are not separating yourself from the other sales consultants they meet… you are losing sales. You need to brand yourself as a positive difference in the mind of your buyer or you carry baggage from the other guy.

What’s your brand?

I am not talking about your dealer’s name, I mean your image — your brand! You will sell more if you work on separating yourself from the competitor’s salespeople.

October 2015

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The Automotivator’s Keys to Successful Branding.

1. Treat yourself as the product, not your vehicle.

You have to focus early in your sales process to be

better.

• More caring • more knowledgeable • more skilled • more useful to your client in their time of need.

Become the expert. People buy expertise.

Customers respond to competency and are repelled by inadequacy or mediocrity.

2. You brand yourself by treating yourself as a business person, not a salesperson.

You are in business for yourself. As a commissionbased earner you are selfemployed. Nobody is paying your mortgage or putting the food on your family table.

So, treat yourself as the business person you are and become the most qualified automotive sales professional your client will ever meet. You will stand out as the person they will want to do business with.

It is about branding. Get ahead of the pack and set the standard for professionalism. If you want to sell more you have to give more than the competition.

Give to Get

Give a better sales presentation.

Give more effective answers to product questions.

Give more value to justify your vehicle price.

Give more reasons to buy from your dealership

than the competition.

Go out of your way to serve your clients while they

are in the dealership.

37

Follow-up

If you can’t sell them today, then give them the most effective follow-up they will ever get anywhere. Be the leader in follow-up at your dealership and you will lead the pack in sales. People return and buy from sales professionals who care enough to keep in touch when they need help making their decisions.

Brand yourself as the expert who follows-up with people.

You will gain professional stature in the mind of the buyer.

You will sell more. You will be talked about by your customers as a positive influence in their decision challenge.

Rewards of Success

Stay put and build a business. You have heard your manager and dealer say this and they are right. Look around and see that the best sales professionals don’t bounce around.

You will earn your current client’s future business because they feel nobody compares to you in this truck business — and they know where you are. This is part of your brand too.

Branding yourself will make the difference between no sale and the sale. You will make more commissions, easier and more often when you work on yourself.

Don’t remain mediocre or indifferent to your dealership customers. Don’t sit and wait for customers to return, follow-up diligently.

38

Results come to the committed professional who consistently follows the steps to success that are required.

Look at the Olympians for your model. They practice and work their butt off to make it look soooo easy. You can too.

Improve Your Sales Process — It is your brand.

Dedicate the time and energy to handling the tough customers, the aggressive customers, the price shoppers with skill and effectiveness. You will be recognized as the best. These people will buy from you because you know how to bring them from the tension zone into their comfort zone. That is what a professional sales consultant does. That is what your sales process should be all about. Make it your brand.

Get Wealthy by Choice, NOT by Chance, my friends.

Dave Kemp is president of Automotivator Professional Development and Trackstar International Follow-up Systems.

He is a car industry expert with decades of success training his sales strategies with thousands of sales team members across North America. 1-800-668-0362 • Dave@automotivator.com • www.automotivator.com

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October 2015

TIADA DEALER ACADEMY 2015

Better BHPH Financials: How to Get Organized for Growth Presented by David Keller, CPA, a principal with the dealer group at CliftonLarsonAllen, one of the nation’s top 10 CPA and consulting firms.

The craziness of a busy BHPH operation can make it tough to plan for future growth. But sometimes you need to take a few hours off from working IN your business so you can work ON your business. This ½ day seminar will demonstrate how better organizing your financial and operations structures can be the key to growing your portfolio. Participants will learn: n

n

n

n

How to increase their credit line, and/ or establish a new line The importance of presenting clean, clear financial statements Cash flow management (the key to future planning) How to determine how many units you need on hand

n

n

n

n n

How to determine how many dollars you need on hand Static pool analysis, what it is and how it works How to properly value inventory, including turn time How to read financial statements Proper expense allocation and costing

Thursday, November 19, 2015 San Antonio, Texas DoubleTree San Antonio Airport Hotel 37 NE Interstate 410 Loop • San Antonio, TX 78216 210.366.2424

8:30am - 12:00pm MEMBERS – $99 (includes up to 3 attendees per dealership)

NON-MEMBERS – $199

Sponsored by:

Texas I n d epen d ent A utomob i l e D ea l ers A ssociation

This class has been approved by NIADA as a Certified Master Dealer continuing education course.

www.claconnect.com

Register online at w w w . t x i a d a . c o m or by phone at 800.442.5944. www.autozone.com

Texas Independent Automobile Dealers Association

house of delegates meeting minutes August 11, 2015 | San Antonio, TX JW Marriott San Antonio Hill Country Resort & Spa

compiled by Texas Dealer staff

At its meeting on Tuesday, August 11, 2015 TIADA took the following actions:

Bylaws Committee

President Brent Rhodes called the meeting to order at 3:25 p.m.

A motion was made to accept the proposed changes presented by the Bylaws Committee.

Moved by Wayne Meagher, seconded by Ryan Winkelmann — PASSED.

2016 Officer Elections

With no contested races, Chairman Michael Thomasson asked for a motion directing the Secretary to submit a single ballot for the following candidates: President: Phil Lathrop; Chairman of the Board: Brent Rhodes; President Elect: Kathrine Tolsch; Secretary: Greg Zak; Treasurer: Trey Crouch; Vice President Region 1: Paul Scott; Vice President Region 2: Tommy Gregory; Vice President Region 3: Wayne Meagher; Vice President Region 4: Juan Sabillón; Vice President Region 5: Robert Beck; Vice President Region 6: Dan Keetch; Vice President at Large; Ryan Winkelmann; Vice President at Large; James Hobson.

Moved by George Karlen, seconded by Scott Allen — PASSED.

Wayne Meagher presented the Bylaws Committee Report.

Legislative Committee

No recommended changes were presented by the Legislative Committee.

Meeting adjourned at 3:48 p.m.

Moved by Keith Hagler, seconded by Chris Knox — PASSED. Respectfully submitted, Kathrine Tolsch, Secretary A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.

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October 2015

TIADA Membership Application

2015

Business Name: ____________________________________________ Select one:

Dealer Member

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________

2015 TIADA Membership Dues:

City: _________________________________________ State: _______

Join Date:

Dues:

Zip: __________________ County: _____________________________

Jan. / Feb. / Mar.

$425

Apr. / May / Jun.

$320

Jul. / Aug. / Sep.

$215

Oct. / Nov. / Dec.

$425

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

(includes all of 2016) (all dues include NIADA membership)

PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Sec.Code: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Expiration Date: ____________ Monthly Payments - $100 initial payment & $29.50 per month Via Credit Card (Please enter card information above. Authorization Agreement required - contact state office) Via Bank Draft (Authorization Agreement & voided check required - contact state office)

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

www.txiada.com

512.244.6060

800.442.5944

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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resource guide The TIADA Website:

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

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

LUBBOCK

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LUFKIN Lufkin Dealers Auto Auction

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TYLER Greater Tyler Auto Auction

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October 2015

T e x a s

D e a l e r

Local Chapters VICTORIA Dennis Schroller Victoria Autos Direct 361.578.0530 Dennis@victoriaautosdirect.com Meeting – 1st Monday (Monthly) FORT WORTH Jerry Smith HJ Smith Automobiles 817.282.0102 hjsmithauto@yahoo.com Meeting- 4th Thursday of December, February, April, June, August and October DALLAS COUNTY Kevin Mims VP Auto Sales 972.864.1300 kevinm@vpautosales.com Meetings as needed/TBD HOUSTON Michael Zak Dixon Motors 281.931.1300 houiada@houiada.com Meeting – 2nd Monday (Monthly) SAN ANTONIO Robert Beck Stop N’ Drive Motors 210.432.1101 stopdrive@texas.net Meetings quarterly (dates announced at www.txiada.com) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 45

behind the wheel

Martin

Your Dues Dollars at Work

T

IADA’s fiscal year runs from September 1 through August 31. We monitor the budget, work on cash flow, adjust and readjust financial projections throughout the year in an effort to be good stewards of your money and keep a healthy association. However, running an association is very different than running a for-profit company. We don’t focus much on balance sheets since we aren’t trying to make the association look attractive to investors, lenders, etc. While many associations can, and do, make a profit (we call it retained earnings in the not-for-profit world), those monies are meant to help support the association’s mission. Our mission is basically to grow the influence of the association to better protect our members and improve our industry. We can do that with a bigger budget as long as the budget is being used wisely. In the last four years, TIADA has grown its budget by 40%. That’s a pretty healthy growth without a dues increase. But that still begs the question, where are your dues dollars going?

The association has made a significant investment in the area of governmental relations over the past five years. We are currently spending almost 50% more in this area. With some of the legislation we have passed and have been able to stop, there is no doubt every dealer has benefited from that investment and the industry is much better off. Our greatest investment though has been growing our grassroots lobbying. From investing in better technology to get members involved, to physically taking dealers to meet with legislators to help educate and inform policy makers

by Jeff

TIADA EXECUTIVE DIRECTOR

about our industry, your $425 has helped fend off legislation that could have cost you thousands.

Creating membership programs that enhance your ROI is always something potential members ask about.

While the VIP Auction Card is the best example of an immediate return on your investment, having knowledgeable people on hand to assist with compliance questions will no doubt save you the most money if and when that time arises. We have invested heavily in our personnel so that we can more effectively and efficiently answer your questions. Over the last five years we have added more full-time staff and built a powerful team of attorneys and consultants that makes your $425 a steal.

Education, technology, and the annual conference round out the other areas we are spending more of your dues dollars. We have almost doubled our spending in all three of these areas over the last five years and anticipate investing over half a million dollars in FY’16. You can anticipate a new website with more member interaction to better serve you. We are also investing in education and in the annual conference to not only serve our current members, but to become even more responsive to the needs of the industry. Look for more online education and a conference with over 300 dealers next year. All of these will help move the association in the right direction.

Next month you will receive your membership renewal letter via email — invest in your industry, invest in your association and invest in your dealership by renewing your membership.

Look for more online education and a conference with over 300 dealers next year.

46

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October 2015

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