Texas Dealer October 2017 by Texas Independent Auto Dealers Association

In This Issue: – Greg Phea Named 2017 Texas Quality Dealer of the Year – Michael W. Dunagan on the Deceptive Trade Practices Act – Mobile Auctions Bring the Cars to You

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2018 TIADA Board of Directors PRESIDENT Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: greg@dixonmotorcars.com PRESIDENT-ELECT Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: jmsabillon@mitierraautosales.com CHAIRWOMAN OF THE BOARD Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd. Dallas, TX 75229 Office: 214.352.9282 / Fax: 214.352.8227 Email: cicoauto@verizon.net SECRETARY Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net TREASURER Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 Office: 817.703.7973 Email: mjones@mcmcauto.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) 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) Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net 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 AT LARGE Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 Office: 512.828.0001 Email: greg@risingfastmotorcars.com

Volume XVII

/ I s s u e 10

/ O c t o b e r 2 017

texasDealer

5 Officers’ Message

contents

by Greg Zak, TIADA President

11 L egal Corner: Consumer Protection Law in Texas: The Deceptive Trade Practices Act by Michael W. Dunagan

12 Upcoming Events 16 Board of Directors Meeting Minutes 18 O n The Cover: Hurricane Harvey Leaves Impact Affecting All of Texas by Michael Spurlin

23 2017 TIADA Inventory Resource Directory 29 G reg Phea Named 2017 Texas Quality Dealer of the Year by Texas Dealer Staff

35 Mobile Auctions: Bringing the Cars to You by Michael Spurlin

41 TIADA Member Application 45 New Members 45 Local Chapters 46 Behind the Wheel by Jeff Martin

What’s happening at w w w . t x i a d a . o r g ?

DID YOU KNOW... You can now find more auctions to help

you meet your inventory needs? Our National Inventory Replacement Directory not only lists auctions across the state but also auctions in neighboring states to help you deal with the inventory crunch. Look under the RESOURCES tab on the homepage or see page 23 in this issue for more information.

VICE PRESIDENT AT LARGE Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 Office: 281.354.3355 Email: aokautosales@embarqmail.com

On The Cover: Port Aransas, Texas: Total devastation in the aftermath of Hurricane Harvey.

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

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.

The Americaâ&#x20AC;&#x2122;s Auto Auction Team is reaching out to help those in Houston, Florida, and surrounding communities affected by hurricanes Harvey & Irma. If you would like to join us in contributing see below for donation information. www.AmericasAutoAuction.com

21Locations #irmarelief #harveyrelief

To those recovering from hurricanes Harvey & Irma, you are not alone. You can send checks payable to:

Ameri-Cause Impact Fund

If you need assistance with, or have questions concerning donating contact:

14951 Dallas Pky., Ste. 200, Dallas, TX 75254

Cynthia Butler: 214.736.7902

Austin

TUESDAYS & THURSDAYS AT 1PM

LOCATIONS IN TEXAS

Dallas

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

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

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1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

officers’ message Are You Ready For A Catastrophe?

by Greg

Zak

ixon Motors D (Houston) TIADA PRESIDENT

AMFPhotography / Shutterstock.com

have just experienced, firsthand, one of the most catastrophic events in the history of the United States, and it happened right here in Houston, Texas. The question I have been asked over and over again is, “How bad is it?” Well, let’s just say, the losses are staggering. Some estimates indicate as many as 100,000 homes and up to 500,000 vehicles have been flooded. The losses are estimated to be $160 to $180 billion. Some roads and routes into the fourth largest city in America were still flooded 10 days after the storm and as a result, traffic was a complete nightmare. Some major thoroughfares will be closed as long as 30 days. But know this: Texas is strong and so are its citizens. The sense of community is unbelievable. We are seeing neighbors help neighbors. I experienced the devastation in both Houston and also at

Rockport, Texas — August 28, 2017: An aerial view of damage caused by Hurricane Harvey.

Texas is strong and so are its citizens. The sense of community is unbelievable. We are seeing neighbors help neighbors. October 2017

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the center of the hurricane damage, in Rockport, Texas. My wife and I have had our second home in Rockport for 14 years. If you think the devastation in Houston is bad, you should see Rockport. Rockport was a beautiful, quaint seaside community that now looks like a complete war zone, as if bombs have dropped all over the city. It bears repeating: Texas is strong and so are its citizens. The sense of community in Rockport is overwhelming. I just returned from surveying the damage to my house and there is an army of people there, helping the community get back on its feet. To give you a sense of the magnitude of volunteerism in the wake of Harvey: there are 21,000 volunteers and government assistance personnel helping residents of Rockport, which is part of a county with a population of 24,500. While all of the above is overwhelming, you may ask yourself, “How does this relate to my business?” Let me answer that by posing this question: What if a catastrophic event were to happen in your town and affect your business, your employees and your customers? Are you prepared for such an event? Be it a hurricane, tornado, ice storm, snow storm, fire or flooding, all catastrophes are business interruptors and you should be prepared.

Keep your banker and other lenders in the loop. Your lenders should not be the last to know when something has happened. If they have loaned you money, just keep in mind that they are your financial partners and they deserve to know what’s going on.

(cont’d on pg. 8)

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Officer’s Message (cont’d from pg. 6)

What emergency plans do you have in place to handle a disaster? Do you have a generator? Are your customer files safe? Do you have insurance to cover your losses in the event of a disaster? What would you do with your inventory? How can you continue to operate when a disaster strikes? During times such as this devastating hurricane aftermath, it is

also important to not be entirely self-focused. Remember that your employees are your greatest assets. If they have been affected by this catastrophe, show empathy towards them and help them. Provide them with financial assistance if they are in need. Keep your banker and other lenders in the loop. Your lenders should not be the last to know when something has happened. If they have loaned you money, just keep in mind that they are your

financial partners and they deserve to know what’s going on. Also, work with your customers. Remember — they have just experienced the same tragedy that you have experienced. They are likely suffering worse than you. They may have just lost their two biggest assets: their home/ apartment and their car. They probably feel totally devastated. Show empathy to them as well. Be willing to work with them in their time of need. Doing so will guarantee you a customer for a long time because they will remember who was there for them when they needed help. It’s times like these when we realize that we are all in the same boat of life together and there is no difference between us based on financial status, race, or political opinion. We realize we are all Texans and we can fail or succeed based upon the help of others. As I am writing this article, TIADA, HIADA and NIADA have all come together to help the many dealers and their employees across this state who have been affected by Hurricane Harvey. NIADA, through its foundation, is spearheading a campaign to raise money to help these individuals. Please consider helping your fellow dealer and fellow Texan. Together we are stronger. Those wishing to contribute to help dealers affected by the storm can donate by visiting txiada.org and selecting the Hurricane Harvey Disaster Relief Fund link under the Community tab. Dealers can apply for assistance at that web page as well.

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legal corner

Consumer Protection Law in Texas: The Deceptive Trade Practices Act

or many dealers who follow the national industry trade press, it may appear that a federal agency will be knocking on their door any day. The prospect of an administrative action by the Consumer Financial Protection Bureau or the Federal Trade Commission is indeed a frightening prospect. But the reality for Texas dealers is that a lawsuit (or threat of a suit) by a private attorney on behalf of a disgruntled customer is about 100 times more likely than a federal agency action. A high percentage of threatened consumer litigation will contain references to the Texas Deceptive Trade Practices Act (DTPA). Why? Because the DTPA provides, in the words of one consumer-law expert, “a no-fault standard of recovery, the lowest causation standard, the most liberal standard for the award of exemplary damages, and mandatory attorneys’ fees.” In other words, a very pro-consumer path to obtaining the award of maximum monetary damages. Prior to the enactment of the DTPA in 1973, a consumer that sought to be compensated for defects in a purchased product that had been sold “as is” was typically required to sue the seller for fraud. In order to prevail in a fraud action, the plaintiff had to prove that the seller knowingly misrepresented the product, and with the intent to deceive, misled the buyer, and that the misrepresentation led directly to money damages. Fraud has traditionally been a difficult cause of action to prove, which meant that it

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was rarely used by consumers seeking compensation. Also, there was no basis for a prevailing consumer to collect attorneys’ fees. The DTPA was passed by the Texas Legislature as a direct response to what was perceived as a common and unfair practice by merchants of selling defective goods and avoiding liability by selling “as is.” The express intention of the legislature was to create a remedy for consumers that was cost effective and which eliminated the obstacles that consumers faced in bringing fraud actions, even if warranties had been disclaimed in an “as is” sale.

by Michael

Dunagan

TIADA GENERAL COUNSEL

...the reality for Texas dealers is that a lawsuit (or threat of a suit) by a private attorney on behalf of a disgruntled customer is about 100 times more likely than a federal agency action.

New Cause of Action Created

The DTPA created, among other things, a new cause of action for consumers based on a “false, misleading, or deceptive act or practice…” that was a producing cause of damages to the consumer. The three categories of false, misleading, or deceptive acts include: (1) any of the acts listed in the socalled “laundry list” of violations; (2) breach of an express or implied warranty; or (3) any unconscionable action. The focus of this discussion

will be violations of the “laundry list” items as most claims and suits against independent dealers fall in this category (there are over 30 items on the “laundry list” but because of limitations on space, we’ll only discuss the most common items that apply to dealers). The two most common alleged violations from the list are usually included together in the attorney demand letters: (5) representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities which they do not have or that a person has a 11

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sponsorship, approval, status, affiliation, or connection which the person does not; (7) representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another… In a typical set of allegations against a dealer, the demand letter and subsequent lawsuit will claim that the dealer (or his or her agent) made representations as to the characteristics or to the quality or standards of the vehicle, which representations were false. Here are some specific allegations we’ve seen in actual lawsuits and reported cases: Plaintiff alleged that the sales man represented the vehicle to be in “excellent” condition, but the engine locked up within a week of the sale. Plaintiff alleged that a later mod el year than the actual was used in the sales presentation and contract. Plaintiff alleged that the mileage was understated. Plaintiff alleged that the vehicle was salvaged, or flooded, or rebuilt, but was not informed so by the dealer. Plaintiff alleged that the dealer misrepresented the actual mileage of the vehicle by installing prior to sale a different instrument cluster that showed fewer miles than the removed cluster. Plaintiff alleged that the dealer misrepresented the vehicle by not disclosing that the vehicle had been a lemon-law buy-back. Plaintiff alleged that the dealer misrepresented the vehicle by not disclosing that the frame had been bent or otherwise damaged. Under pre-DTPA law, the consumer would have to bring an action for fraud (assuming the sale was as is and all warranties were

disclaimed), and prove that the dealer actually knew of the defects, and that the dealer intentionally misled the buyer with the intent to defraud him or her. In a lawsuit brought after enactment of the DTPA, however, it wouldn’t matter that warranties were disclaimed. In a DTPA case, the judge or jury (whichever was chosen to decide the facts of the case) would listen to the evidence provided by the parties. Unless the alleged misrepresentations appeared in writing, there would usually be disagreement as to what was said to the consumer, such as whether the product was verbally represented to be “in good condition,” “excellent,” “like new,” or possibly “dependable transportation.” The seller will often deny that such representations were made. If it is found that such a representation was made, then it is up to the finder of fact (the judge or jury) to determine whether the representation was false. If it is found that the representation was in fact made, that is was false, and that the representation was the “producing cause” of the consumer’s damages, then judgment is awarded to the consumer.

Some Important Facts About the DTPA

DTPA rights can’t be waived. Fearing that product sellers would incorporate into their paperwork provisions by which consumers would waive their rights under the DTPA, legislators included in the law a prohibition against such a practice. Thus, any attempt to contractually waive DTPA rights is void and unenforceable. Oral statements can be used. Liability under the DTPA can be based on oral statements. PreDTPA procedural rules made it more difficult to prove fraud with just evidence of oral statements when a contract purported to contain the entire agreement between the parties. By specifically allowing evidence of oral statements made T e x a s

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by a seller (or the seller’s agent), the legislature opened the door for litigation via “swearing matches.” Proof of seller’s knowledge not required. Unlike pre-DTPA causes of action for fraud, which required proof that the seller knew that the representation was false when it was made, the DTPA eliminated the need to prove knowledge on the part of the seller (however, the consumer can seek additional penalty damages by pleading and proving that the seller did in fact have knowledge that the representation was false). One of the laundry list items (failure to disclose known, material information to the consumer) does require proof of knowledge of the defect.

Avoiding Expensive Lawsuits

In establishing a strategy for avoiding or minimizing the expense and down time involved in

DTPA rights can’t be waived. Fearing that [sellers would incorporate provisions] any attempt to contractually waive DTPA rights is void and unenforceable.

litigation, dealers might consider these steps: Use written disclosure forms to disclose known defects to customers, have them signed, and place in files. Set up a for malized complaint process to insure that problems are dealt with before they escalate to litigation. Be receptive to undoing a bad deal when it becomes apparent that the customer is being unreasonable or there is an issue of condition of the vehicle or a defect. Remember that everything is ne gotiable in striking a deal. Once

agreement is reached, reduce the deal to a writing that includes a release of future liability. If at all possible, settle before an attorney is involved (cheapest). If that’s not possible, settle before suit is filed (second cheapest). If that’s not possible, settle before going to court (third cheapest). If that’s not possible,

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be prepared for costs to accelerate quickly. Don’t ignore attorney demand let ters. Sellers have certain defenses and other rights under the DTPA, but some of these expire 60 days after the demand letter is sent. Once an attorney is involved on the other side, it is advisable to obtain legal assistance. Use arbitration agreements. Arbitration agreements will not prevent claims, and won’t make them go away, but might offer dealers and their attorneys some leverage in settling disputes, and in keeping disputes out of the courthouse.

Recent Developments

Hurricane Harvey has brought to the forefront some unpleasant realities of the aftermath of such disasters. With a half-million to a million (depending on whose estimate you

use) flooded vehicles, there are sure to be some working their way back into the distribution chain without proper disclosure or title branding. Obviously, extra care is called for in spotting potential problems in vehicles purchased or taken in trade. One of the “laundry list” items of prohibited practices in the DTPA has to do with excessive pricing: (27) t aking advantage of a disaster declared by the governor under Chapter 418, Government Code, by: (A) s elling or leasing fuel, food, medicine, or another necessity at an exorbitant or excessive price; or (B) demanding an exorbitant or excessive price in connection with the sale or lease of fuel, food, medicine, or another necessity…

In addition to private law suits under this provision of the DTPA, Attorney General Ken Paxton has warned that the state would take direct action against violators. Conclusion: The DTPA is a complicated law that was written with the express purpose of protecting consumers. Dealers should establish proactive procedures to deal with consumer complaints in a way that limits potential liability under the DTPA and other consumer protection laws. Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for 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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SALES

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board of directors meeting minutes July 23, 2017 | Hyatt Hill Country Resort & Spa, San Antonio, TX

compiled by Texas Dealer staff

At its meeting on July 23, 2017, TIADA took the following actions: President Kathrine Tolsch called the meeting to order at 12:34 p.m.

Minutes of the Last Meeting

A motion was made to accept the minutes. Moved by Mark Jones, seconded by Wayne Meagher — PASSED

Treasurer’s Report

Treasurer Robert Beck presented the Treasurer’s report. A motion was made to accept the report. Moved by Mark Jones, seconded by Wayne Meagher — PASSED

President’s Report

President Kathrine Tolsch presented the President’s report. President Tolsch attended the NIADA Annual Conference. Congratulations to Board Member Robert Blankenship, National Quality Dealer. President Tolsch enjoyed her service as President and thanked the board of directors.

Executive Director’s Report

Executive Director Jeff Martin talked about annual conference registration, including 98 first-time conference attendees and a number of VIP attendees. Mario Martinez gave an update on government relations and the state legislators expected to attend the conference. Treasurer Robert Beck presented the FY18 budget update.

Old Business None

New Business

A motion was made to realign the TIADA regional map, moving Uvalde, Bexar, Medina, Guadalupe, Gonzales, and Lavaca Counties from Region V and into Region VI. Moved by Phil Lathrop, seconded by Greg Zak. — PASSED A motion was made to accept the proposed FY18 budget. Moved by Greg Zak, seconded by Phil Lathrop — PASSED A motion was made to adjourn the meeting. Moved by Juan Sabillón, seconded by Robert Beck — PASSED Meeting adjourned at 2:54 p.m. Respectfully submitted, Greg Zak 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. 16

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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 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

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Texas Independent Automobile Dealers Association

San Antonio, Texas Hilton San Antonio Airport 611 NW Loop 410 • San Antonio, TX 78216 210.340.6060 Register online at www.txiada.org or by phone at 512.244.6060.

on the cover by Michael Spurlin Texas Dealer Editor

n August 25th Hurricane Harvey, the first major hurricane to hit the United States in over a decade came ashore in Texas. As expected, many communities in its path along the coast suffered extensive damage. However, it was the record-breaking rainfall the storm brought, including areas much further inland, that made this catastrophe truly horrific. The highest rainfall total recorded by the National Weather Service was 51.88 inches in Cedar Bayou, TX. Other parts of the region, including portions of the Houston metropolitan area, saw rainfall totals exceeding 40 inches in just a few days. All this water created extensive flooding that devastated large portions of the state, destroying homes, businesses and property. TIADA immediately jumped into action to help dealers impacted by the storm. Working with Houston IADA, Victoria IADA and the NIADA Foundation, the association began collecting donations for a Hurricane Harvey Disaster Relief Fund. These donations, 100% of

which will go towards those needing assistance, will be disbursed in the coming months to aid in the recovery effort. The foundation had already raised over $100,000 by the time this magazine went to print. “The floods in southeast Texas have been devastating to our members and their customers,” said TIADA Executive Director Jeff Martin (See page 46). “It will take a while to determine just how much damage has occurred. With that being said, I don’t know a more resilient group of people. We couldn’t be more excited to work with NIADA and the local chapters. Their leadership and support will be invaluable during this time as we rally around our members and support them.” While this disaster directly affected many dealers whose business and inventory were damaged or destroyed, it is unique in the fact that its reach is so widespread, affecting dealers all across Texas in some way or another. Those dealers in southeast Texas closest to the storm are seeing some of the more pronounced effects even T e x a s

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“There were thousands of cars that were damaged and need to be replaced and somebody’s got to sell them. Look out. People are going to be coming in buying cars. Kind of like a mini tax season.” Dennis Schroller, Victoria Autos Direct

were totaled by the storm and flooding. A sizeable portion of that number includes cars in the city of Houston and surrounding area. Those cars will have to be replaced. This increased demand and lack of supply in the market is already starting to drive prices up as dealers are looking to expand their inventory.

michelmond / Shutterstock.com

if they did not sustain extensive flood damage. John Freeman of Galena Park Motors, Inc. in Galena Park just east of Houston told Texas Dealer that their offices saw eight inches of water, but their vehicles escaped unharmed. That was not the case for many of their customers. “We have maybe 20 or 30 customers that lost their cars and everything else they owned,” Freeman explained. “As a buy-here-pay-here dealer, that affects your income. Insurance companies are saying it is going to be a long time before claims are processed. Additionally, all our customers have been unable to work. Everyone has suffered a loss of income.” Other dealers told Texas Dealer the widespread damage and lack of power had prevented their customers from working even in areas that didn’t see extensive flooding. “Pretty much everybody lost a week of work,” recalled Vicki Davis of A-OK Auto Sales in Porter, just northwest of Houston. “So, when our customers miss a week of work that’s pretty drastic for them.” It isn’t just those closest to the storm that will feel the effects. While the exact number may not be known for some time or maybe ever, many estimates concluded hundreds of thousands and perhaps up to 1 million cars

Houston, Texas: Cars submerged in Houston during Hurricane Harvey.. October 2017

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IrinaK / Shutterstock.com

Houston, Texas — September 2, 2017: Traffic on flooded roads of the city in the wake of Hurricane Harvey.

“Inventory is low right now because obviously, a lot of customers don’t have anything to trade,” Davis explained. “We went to Dallas this past week, but we didn’t have a lot of luck there. So now we are going to be venturing further away, if we can’t do any better this week in Houston. Actually, we have a really good friend that goes to Florida to buy cars, and I thought we could just go with him, but that is not going to work out very well now. Irma changed all that.” In addition to the price of the cars, the inventory crunch is starting to ripple outwards and affect other aspects of the industry. “I was going to go to Manheim Denver and buy a bunch of cars and have them shipped back,” Freeman explained. “However, it was going to cost $700 a piece to have them shipped back. I can’t afford to do that because of the transportation costs alone. This is really driving up costs. If it costs $1,000 more to get it shipped home and it is already October 2017

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$1,000 over what it costs, that is $2,000 over what the vehicle is normally worth.” While these increased costs are sure to affect dealers in a negative way, the increased demand for cars will eventually lead to more sales. Dennis Schroller of Victoria Autos Direct, whose dealership survived the storm sustaining only minor wind damage but no flooding, has already seen interest rising, especially from out of town shoppers. “I am getting a lot of inquiries, and a lot from areas that had a lot of flooding, looking for cars,” Schroller recounted. “I am getting them out of the Houston area and other areas where it flooded. People just suspect that cars in their area to be damaged. They probably aren’t, but people have a fear so they will look outside the market to buy a car. That is unfortunate for some dealers in the places where it flooded. People may start looking to Austin, San Antonio and other markets to buy their cars.”

Despite the devastation caused by the storm and the ensuing challenges like higher prices, both Schroller and Freeman were optimistic about the future for the industry in Texas. The demand and necessity for cars is just too high. “There were thousands of cars that were damaged and need to be replaced and somebody’s got to sell them,” Schroller said. “Look out. People are going to be coming in buying cars. Kind of like a mini tax season.” After Tropical Storm Allison [in 2001] we were booming for about three months,” Freeman recalled. “It was better than tax season. I assume it is going to be about the same this time around.” Additionally, Freeman expressed his confidence that independent dealers would have the ability to overcome the obstacles created by Hurricane Harvey. “We’re just going to get up off our butts and get to work. It’s what we do.” 21

2017 TIADA Inventory Resource Directory Nationwide Available Inventory compiled by Texas Dealer staff The 2017 TIADA Inventory Resource Directory was created to assist Texas independent dealers affected by Hurricane Harvey connect with auctions across the country that have available inventory. We would like to thank all the auctions that have reached out to be a part of this directory.

ALABAMA

CONNECTICUT

Southern Auto Auction America’s Auto Auction Birmingham

1046 AE Moore Drive, Moody, AL 35004 Phone: 205.640.4040 Fax: 205.640.3071 Website: www.americasautoauction.com/ birmingham America’s Auto Auction offers a full spectrum of Dealers Services necessary to successfully complete the remarketing needs for both Buyers and Sellers. Here we understand the value of a customer, and know that every dealership is different with different needs. Sale Day: Wednesdays 11:15 AM (CT).

COLORADO

161 South Main Street, East Windsor, CT 06088 Phone: 860.292.7500 Fax: 860.292.7598 Email: salescontacts@saa.com Website: www.saa.com Contact: Owner: Larry Tribble – Vice President: Garison Hudkins -VP/Operations: Rick Nadeau – Dealer Registration: Janet Lesniak – Dealer Sales Manager: Joe Derohanian 20 Lanes, Every Wednesday, EST 1947. America’s Largest Independent Auction with 4,000+ vehicles offered every Wednesday. Honda/Acura Remarketing, Nissan/Infiniti Remarketing, Hyundai/Kia Finance, Toyota Financial Services, GM Financial, Fusion Auto Finance, Ally, US Bank, Chase Off-Lease Subaru, Subaru of America, Remarketing by Element, Exeter, Lease Plan, Motor Lease, Volvo, U-Haul, Harley Davidson Financial, Services, Southeast Toyota Finance

ILLINOIS

America’s Auto Auction St. Louis

721 S 45th St., Centreville, IL 62207 Phone: 618.332.1227 Fax: 618.332.1228 Website: www.americasautoauction.com/saintlouis America’s Auto Auction offers a full spectrum of Dealers Services necessary to successfully complete the remarketing needs for both Buyers and Sellers. Here we understand the value of a customer, and know that every dealership is different with different needs. Sale Day: Thursdays 9:30 AM (CT)

Greater Rockford Auto Auction

5937 Sandy Hollow Rd., Rockford, IL 61109 Phone: 800.830.4722 Website: www.graa.net Contact: Keeley Capriola, 815-874-7800, kcapriola@graa.net Looking for vehicles? Buy online at www. graa.net or www.auctionpipeline.com. 750+ vehicles available online every Wednesday at 9 AM. 45 minutes west of Chicago. Buy outside of Texas and save! Call our friendly staff to assist you today!

LOUISIANA Dealers Auto Auction of the Rockies

7175 York Street, Denver, CO 80223 Phone: 303.289.7716 Fax: 303.476.9018 Website: www.daarockies.com Contacts: Director of Sales: Brandon Fox, bfox@daarockies.com, 303-407-1255 Assistant Manager of Sales: Lori Martella, lmartella@daarockies.com, 303-407-1216 Fleet/Lease Manager: Danielle Runkle, drunkle@daarockies.com. 303-407-1202 Sale Day: Every Thursday at 9:00am MST Dealers Only Dealers Auto Auction of the Rockies is here to move your business forward with our dedicated sales team, 24/7 secure online access to auction account, onsite services to fuel your bottom line, & online sale services through Edge Pipeline & OVE. Visit www.daarockies.com for more details. See our ad on page 20 in Texas Dealer magazine

October 2017

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America’s Auto Auction Chicago

14001 South Karlov Ave., Crestwood, IL 60445 Phone: 708.389.4488 Fax: 708.389.4558 Website: www.americasautoauction.com Look no further than America’s Auto Auction if you are looking for a state-of-the-art auction site in Chicago, Illinois. We feature a dealer sale every Tuesday at 1:00PM, Wednesday at 9:00AM, a live simulcast sale, and a highline auto auction for dealers at its greater Chicago location. Dedicated to serving each customer’s needs “the old fashioned way”. Sale Days: Monday Online Auction 4:00 pm (CT), Tuesdays 1:00 pm (CT) and Wednesdays 9:00 am (CT)

Americas Auto Auction Baton Rouge LLC

3960 Blount Rd., Baton Rouge, LA. 70807 Phone: 225.778.3737 Fax: 225.778.4030 Website: www.americasautoauction.com Contact: Steve Van Every / svanevery@auctionbroadcasting.com Americas Auto Auction Baton Rouge has a sale every Thursday offering 500-600 vehicles featuring Santander, Chrysler Capital, Ally Financial, Credit Acceptance, Westlake Financial, Innovate/Cap Rock, GSA, ARI, Avis/Budget, Consolidated Recovery Asset Inc. and new and used car dealer consignment. We are a state of the art auction facility with full detail, mechanical, and body shop operations. Come see us!! 23

MARYLAND

NEVADA

Manheim BaltimoreWashington

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7120 Dorsey Run Rd., Elkridge, MD 21075 Phone: 410-796-8899 Fax: 410-799-0512 Website: https://publish.manheim.com/en/ locations/us-locations/manheim-baltimorewashington.html Contact: Greta Stetson, Stetson/ greta.stetson@coxautoinc.com/410-471-6696 Manheim, North America’s leading provider of remarketing services, was established in 1945 as a wholesale vehicle auction operation. Manheim continues to set the industry standard for buying and selling used vehicles today through its 125 traditional and mobile auction sites across the world.

MASSACHUSETTS

7582 Las Vegas Blvd South, Suite 307 Las Vegas, NV 89123 Phone: 678.230.2796 Website: www.AutomobileMonitor.com Contact: 678-230-2796 AutomobileMonitor.com electronically monitors vehicles for lenders and notifies them electronically and instantly on all occurrences including tow, storage, awaiting export / import, collision, stolen, stolen recovery, title change, and more. Vehicle occurrence data comes from public safety, government, and private sector databases. We monitor more than 30 million vehicles. Free trial available. See our ad in the TIADA Weekly Update newsletter

NEW HAMPSHIRE Central Mass Auto Auction

12 Industrial Park Rd. East, Oxford MA 01540 Phone: 508.987.8396 Fax: 508.987.6430 Website: www.cmaainc.com Contact: Luke Semmelrock – GM, luke@cmaainc.com 508-987-8396 Sale day Thursday – 8:30 Sale – Donations and Dealer Consignment in 4 Lanes – 10:00 Sale – Dealer Consignment – Fleet Lease and Bank in 6 Lane – Utility Sale – Selected 4th Thursday of Month. Online sale available through Pipeline. Auction Access available

Lynnway Greater Boston Auto Auction, Inc.

400 Charter Way, North Billerica, MA 10862 Phone: 781.596.8500 Fax: 781.581.5033 Website: www.lynnwayautoauction.com Contact: Dana Ducal, Sales Manager 978.337.7762 Lynnway’s Greater Boston Auto Auction Inc. is celebrating its 20th anniversary. Lynnway serves New England and 40 states including Texas. With 1800 vehicles on Wednesdays 8:40am, 8-Lane simulcast and selling at a 70% sale ratio, Lynnway offers luxury, midsize sedans and trucks in every price range. Enjoy Lynnway’s friendly, world-class service. See our ad on page 22 in Texas Dealer magazine.

Auto Auction of New England 8 Action Boulevard, Londonderry, NH 03053 Phone: 603.437.5700 Website: AANE.COM Every Thursday at 9:00 AM, thousands of vehicles, including cars, trucks, SUV’s, heavy equipment and recreational vehicles are offered through six lanes as we “Create Liquidity in the Automotive Marketplace”. We welcome you to come and experience a New Standard in Auction Excellence! Visit us at aane.com, and bid online!

NORTH CAROLINA

PENNSYLVANIA

America’s Auto Auction Harrisburg

1100 South York St., Mechanicsburg, PA 17055 Phone: 717.697.2222 Fax: 717.697.2234 Website: www.americasautoauction.com/harrisburg America’s Auto Auction offers a full spectrum of Dealers Services necessary to successfully complete the remarketing needs for both Buyers and Sellers. Here we understand the value of a customer, and know that every dealership is different with different needs. Sale Day: Thursdays 8:45 am (ET)

America’s Auto Auction Lancaster

1040 Commercial Ave., East Petersburg, PA 17520 Phone: 717.569.5220 Fax: 717.569.3109 Website: www.americasautoauction.com/lancaster America’s Auto Auction offers a full spectrum of Dealers Services necessary to successfully complete the remarketing needs for both Buyers and Sellers. Here we understand the value of a customer, and know that every dealership is different with different needs. Sale Day: Wednesdays 9:00 am (ET)

Lakeside Auto Group

10215 W Main Road, North East, PA 16428 Phone: 814.725.4507 Website: www.lakesideAUTO.COM Contact: Andy Gabler, 814-725-4507 X1124, writeitupandy@gmail.com, Josh Kennedy, 814-725-4507 X.1116, jkennedy@lakesidechevybuick.com

TENNESSEE Greensboro Auto Auction & GAA Classic Cars

3907 W Wendover Ave., Greensboro, NC 27407 Phone: 336.299.7777 ext. 2401 Website: www.Greensboroaa.com Contact: Chrissy Chrissy Connor, chrissy@greensboroaa.com, or contact a Customer Care Representative at 800.772.9898 ext. 4 for assistance or questions. Greensboro Auto Auction (GAA), the Southeast’s largest INDEPENDENT Dealer Exclusive Auto Auction, in Greensboro, NC. GAA offers over 2,500 vehicles every week from a wide variety of fleet, lease & bank accounts as well as dealer consignment. GAA has an in-house trucking company, Direct Transport to assist with your delivery needs.

ADESA Memphis

5400 Getwell Rd., Memphis, TN 38118 Phone: 901.365.6300 Fax: 901.541.6886 Website: www.adesa.com/Memphis Contact: Kristen Baker/ Kristen.Baker@adesa.com ADESA Memphis’ auction provides registered dealers, brokers, automobile manufacturers, rental agencies, as well as corporate and government fleets with a complete vehicle remarketing solution in Tennessee. T e x a s

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Airport Auto Auction

1733 Chandler Rd., Louisville, TN 37777 Phone: 865.970.9600 Fax: 865.970.9603 Email: info@airportautoauction.com Website: www.airportautoauction.com/ Contact person: TA Alleman, talleman@airportautoauction.com Airport Auto Auction is an independent auto auction located in the beautiful foothills of the Great Smoky Mountains. We offer weekly dealer-only auctions every Thursday afternoon, and we pride ourselves in our personal, down-home customer service. That is why we are considered The Best Little Auction House in TN.

ALLIANCE AUTO AUCTION OF TEXAS Alliance Auto Auction is a rapidly growing family of auto auctions with locations in Abilene, Dallas, Longview and Waco TX. Our team started Alliance in 2011 to bring trusted relationships back to the core of the auto auction business. Join the Alliance!

Alliance Auto Auction Abilene 6657 US Hwy 80 W., Abilene, TX 79605 Phone: 325.698.4391 Fax: 325.691.0263 Website: www.allianceautoauction.com Contact: Tim Bartley, tim.bartley@allianceautoauction.com

Alliance Auto Auction Dallas 9426 Lakefield Blvd., Dallas, TX 75220 Phone: 214.646.3136 Fax: 469.828.8225 Website: www.allianceautoauction.com Contact Christopher Dean, christopher.dean@allianceautoauction.com

TEXAS

Alliance Auto Auction Longview ADESA OF TEXAS ADESA provides whole car auction solutions with auction sites strategically located near large concentrations of used vehicle dealerships. Each site is a multi-lane, drivethrough facility that hosts at least one vehicle auction per week. See our ad on the inside front cover of Texas Dealer magazine

ADESA Austin, Inc.

2108 Ferguson Lane, Austin, T X 78754 Phone:512.873.4000 Fax: 512.873.4022 Website: www.adesa.com Contact: Rich Levene, rich.levene@karauctionservices.com

6000 SE Loop 281, Longview, TX 75602 Phone: 903.212.2955 Fax: 903.212.2956 Website: allianceautoauction.com Contact: Chris Barile, chris.barile@allianceautoauction.com

Alliance Auto Auction Waco

15735 North Interstate 35, Elm Mott, TX 76640 Phone: 254.829.0123 Fax: 254.829.1298 Website: allianceautoauction.com Contact: James Barron, james.barron@allianceautoauction.com

ADESA Dallas

3501 Lancaster Hutchins Rd., Hutchins, TX 75141 Phone: 972.873.4000 Fax: 972.284.4799 Website: www.adesa.com Contact: Bob Bannister, bob.bannister@adesa.com

ADESA Houston

4526 N. Sam Houston, Houston, TX 77086 Phone: 281.580.1800 Fax: 281.580.8030 Contact: Mark Lindenmuth, mark.lindenmuth@adesa.com

ADESA San Antonio

200 S. Callaghan Rd., San Antonio, TX 78227 Phone: 210.434.4999 Fax: 210.431.0645 Contact: Clifton Springer, clifton.springer@adesa.com

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AMERICA’S AUTO AUCTION OF TEXAS America’s Auto Auction offers a full spectrum of Dealers Services necessary to successfully complete the remarketing needs for both Buyers and Sellers. Here we understand the value of a customer, and know that every dealership is different with different needs. See our ad on page 4 in Texas Dealer magazine

America’s Auto Auction Austin 16611 IH-35, Buda, TX 78610 Phone: 512.268.6600 Fax: 512.268.6607 Website: www.AmericasAutoAuction.com Contact: John Swofford, john.swofford@americasautoauction.com

America’s Auto Auction Dallas 2190N Loop 12, Irving, TX 75061 Phone: 972.445.1044 Fax: 972.591.2742 Website: www.AmericasAutoAuction.com Contact: Robert Hammonds, robert.hammonds@americasautoauction.com

America’s Auto Auction Houston

1826 Almeda Genoa Rd., Houston, TX 77047 Phone: 281.819.3600 Fax: 281.819.3601 Website: www.americasautoauction.com Contact: Rob Frazier, rob.frazier@americasautoauction.com

America’s Auto Auction North Houston

1440 FM 3083, Conroe, TX 77301 Phone: 936.788.2881 Fax: 936.788.2842 Website: www.americasautoauction.com Contact: Buddy Cheney, buddy.cheney@americasautoauction.com

America Can! Cars for Kids

7100 Marvin D Love Frwy., Dallas, TX 75237 Phone: 972.274.5437 Fax: 214.944.1950 Website: www.carsforkids.org Contact: Erica Black, eblack@carsforkids.org Texas Can Cars is a charity auction with proceeds benefiting the Can Academy Schools. America Can! is the only charity owned and operated car donation program that 100 percent of the net proceeds go directly to support Texans Can! Academies. Auctions are held at 9 a.m. every Saturday.

Big Valley Auto Auction

4315 N. Hutto Road, Donna, TX 78537 Phone: 956.461.9000 Fax: 956.461.9005 Website: www.bigvalleyaa.com Contact: Lisa Franz, General Manager WHEN YOU’RE HERE, YOU’RE FAMILY! With a dealer base of more than 2000 registered dealers, Big Valley Auto Auction offers the best Customer Service in South Texas and a world class experience in the Auction industry. Big Valley Auto Auction offers a variety of services from transportation to inspections on vehicles as well as online bidding. Register with us online or come by to our location and register with us today!

GREATER TYLER

C.M. Company Auctions

2258 S. Treadaway, Abilene, TX 79602 Phone: 325.677.3555 Fax: 325.677.2209 Website: www.cmauctions.com Contact: Gregory Chitum C.M. Company Auctions is committed to providing the best possible auction experience for our customers. We pride ourselves in leading the industry by providing quality and innovative liquidation services with honesty and fairness. C.M. Company Auctions conducts 52 wholesale dealer auto auctions per year, held every Thursday at 10 a.m.

Corpus Christi Auto Auction

13510 Toepperwein, San Antonio, TX 78233 Phone: 361.767.4100 Fax: 361.767.9840 Website: www.CorpusChristiAutoAuction.com Contact: Wade Walker, wwalker@saaatx.com Corpus Christi Auto Auction prides itself on quality and convenience, boasting an array of dealer services that include vehicle transportation, value detailing, an affordable mechanic shop, and post-sale inspections. Online auctions are held in conjunction with live

El Paso Independent Auto Auction

7930 Artcraft Road, El Paso, TX 79932 Phone: 915.496.6052 Fax: 915.587.6701 Website: www.epiaa.com Contact: Luke Pidgeon, luke@epiaa.com El Paso Independent Auto Auction is a full service, in-lane & online wholesale auto auction. See our ad on page 10 in Texas Dealer magazine

AUTO AUCTION

Greater Tyler Auto Auction

11654 Hwy. 64 W, Tyler, TX 75704 Phone: 903.597.2800 Fax: 903.597.3848 Website: www.greatertylerautoauction.com Contact: Wade Walker, officemanager@greatertyleraa.com The Greater Tyler Auto Auction has been a fixture in the East Texas, West Arkansas and West Louisiana auto industry since 2001. Our staff specializes in all aspects of dealer needs; from title work and seller payment to buyer financing and arbitration. Auctions are held every Tuesday at 5 p.m. buyer financing and arbitration. Auctions are held every Tuesday at 5:00 p.m.

Heart of Texas Auto Auction

2508 Old Marlin Hwy. 6, Waco, TX 76705 Phone: 254.755.7713 Fax: 254.755.7746 Website: www.heartoftexasautoauction.com Contact: Allan Wichkoski, hotaa1@aol.com The Heart of Texas Auto Auction is Waco’s oldest and most reliable auto auction serving central Texas dealers for 26 years.

Houston AA

6767 North Freeway, Houston, TX 77076 Phone: 713.328.0723 Fax: 713.644.0889 Website: www.houstonautoauction.com Contact: Tim Bowers, timbowers@houstonaa.com The Houston Auto Auction is a Dealer-Only Auction held every Tuesday at 1 p.m. A variety of sellers includes Local Dealers; Bank/ Credit; on Entities; Oil/Gas/Utility and Fleet/ Lease companies.

IAA – Austin

2191 Highway 21 West, Dale, TX 78616 Phone: 512.385.3126 Fax: 512.295.6666 Website: www.iaai.com Contact: Geoffrey Rabb, grabb@iaai.com

IAA – Corpus Christi

4701 Agnes Street, Corpus Christi, TX 78405 Phone: 361.881.9555 Fax: 361.887.8880 Website: www.iaai.com Contact: Adrian Serrano, aserrano@iaai.com

IAA – Donna

900 N. Hutto Road, Donna, TX 78537 Phone: 956.454.8393 Fax: 956.464.9005 Website: www.iaai.com Contact: Ydalia Sandoval, yssandoval@iaai.com

IAA – El Paso

14651 Gateway Blvd. W., El Paso, TX 79932 Phone: 915.587.6700 Fax: 915.587.6700 Website: www.iaai.com Contact: Jorge Resendez, jrresendez@iaai. com

IAA – Grand Prairie

4226 East Main Street Grand Prairie, TX 75050 Phone: 972.522.5000 Fax: 972.522.5090 Website: www.iaai.com Contact: Jennifer Wessner, jwessner@iaai.com

IAA – Houston

16602 East Hardy Rd., Houston, TX 77076 Phone: 281.443.1300 Fax: 281.443.4433 Website: www.iaai.com Contact: Louis Cappi, lcappi@iaai.com

IAA – Houston

2535 West Mt. Houston, Houston, TX 77038 Phone: 281.847.4700 Fax: 281.847.4799 Website: www.iaai.com Contact: Michelle Casper, mcasper@iaai.com

IAA – Longview

5577 Highway 80 East, Longview, TX 75605 Phone: 903.553.9248 Fax: 903.553.0210 Website: www.iaai.com Contact: Robert Dunning, rdunning@iaai.com

IAA – Lubbock

IAA OF TEXAS Insurance Auto Auctions, Inc. is one of the leading North American salvage auto auctions with the largest facility footprint, strong buyer base and high auction returns. Our exclusive focus on the automotive total-loss industry and over 150 corporate owned facilities across the United States and Canada provide Sellers and Buyers with the best solution to process and acquire total-loss, recoveredtheft, fleet lease, dealer trade-in and collision damaged rental vehicles. 26

5311 N. CR 2000, Lubbock, TX 79415 Phone: 806.747.5458 Fax: 806.747.5472 Website: www.iaai.com Contact: Lori Davee, ldavee@iaai.com

IAA – Odessa

701 W. 81st Street, Odessa, TX 79764 Phone: 432.550.7277 Fax: 432.366.8725 Website: www.iaai.com Contact: Barbara Hallmark, bhallmark@iaai.com

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IAA – San Antonio

IAA – Wilmer

204 Mars Road, Wilmer, TX 75172 Phone: 972.525.6401 Fax: 972.525.6403 Website: www.iaai.com Contact: Henry Valenzuela, hvalensuela@iaai.com

Lufkin Dealers

Auto Auction Lufkin Dealers Auto Auction

2109 N. John Redditt Drive, Lufkin, TX 75904 Phone: 936.632.4290 Fax: 936.632.4218 Contact: Wayne Cook, lufkinauction@yahoo.com Lufkin Dealers Auto Auction is a fixture in the East Texas and West Louisiana auto industry. We excel in remarketing vehicles for banks, title loan companies and other repossessions, and pride ourselves on exceptional customer service. Auctions are held every Thursday at 6 p.m.

MANHEIM OF TEXAS Manheim, Inc. is the leading provider of vehicle remarketing services, connecting qualified buyers and motivated sellers to achieve results. See our ad on the Back Cover of Texas Dealer magazine

Manheim Dallas

5333 W. Kiest Blvd., Dallas, TX 75236 Phone: 214.467.6242 Fax: 214.467.5674 Website: www.manheim.com Contact: Rich Curtis, rich.curtis@coxautoinc.com

M RE

11275 S. Zarzamora, San Antonio, TX 78224 Phone: 210.434.4999 Fax: 210. 662.3113 Website: www.iaai.com Contact: Brian Sell, bsell@iaai.com

YOY

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Manheim Dallas Fort Worth

12101 Trinity Blvd., Fort Worth, TX 76040 Phone: 817.399.4000 Fax: 817.399.4251 Website: www.manheim.com/locations/DFWA Contact: Nicole Graham-Ponce, nicole.graham@coxautinc.com

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Manheim El Paso

485 Coates Drive, El Paso, TX 79932 Phone: 915.833.9333 Fax: 915.581.9645 Website: Manheim.com Contact: Marcos Martinez, marcos.martinez@coxautoinc.com

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*This testimonial was received via interview, audio and/or video submission. This testimonial is based on this dealer’s individual experiences, reflecting real life experiences of a NextGear Capital dealer. NextGear Capital does not claim they are typical results that dealers generally will achieve. This dealer’s experiences may not be indicative of future performance or success of any other dealers. Some of the testimonial has been shortened so the whole message is not displayed due to length and/or relevance.

Manheim Houston

14450 West Road, Houston, TX 77041 Phone: 281.955.4667 Fax: 281.955.4649 Website: www.manheim.com Contact: Eddie Pope, eddie.pope@coxautoinc.com

Manheim San Antonio

2042 Ackerman Road, San Antonio, TX 78219 Phone: 210.661.4200 Fax: 210.662.3197 Website: www.manheim.com Contact: Mike Browning, mike.browning@coxautoinc.com

Manheim South Houston

9605 Galveston Rd., Houston, TX 77034 Phone. 713.948.0001 Fax: 713.948.0300 Website: www.manheim.com Contact: Darren Slack, arren.slack@coxautoinc.com

WASHINGTON

Rockwall Auto Auction

1810 East I-30, Rockwall, TX 75087 Phone: 972.771.9919 Contact: Frank Post, frankp@rfjauto.com Rockwall Auto Auction has always held true to its standards of excellence and uncompromising focus on customer satisfaction. Our mission is to offer total commitment to our customers, earn your trust, and work hard to maintain it. Dealer auctions are every Tuesday night at 7 p.m.

Manheim Texas Hobby

8215 Kopman Road, Houston, TX 77061 Phone: 713.649.8233 Fax: 713.640.6381 Website: www.manheim.com Contact: Darren Slack, darren.slack@coxautoinc.com

Metro Austin Auto Auction

8605 Cullen Lane, Austin, TX 78748 Phone: 512.282.7900 Fax: 512. 282.8165 Website: www.metroautoauction.com Contact: Brent Rhodes Metro Austin Auto Auction operates a monthly vehicle auction that is open to the public. We also have a great selection of BUY IN NOW vehicles. The auction is held on the 3rd Saturday of every month at 9:00 a.m.

Metro Dallas Auto Auction

1836 Midway Road, Lewisville, TX 75056 Phone: 292.0900 Fax: 972.492.0944 Website: www.metroaa.com Contact: Scott Stalder Metro Auto Auction is a premier auction group serving auto dealers in the greater Phoenix and Dallas areas. It is our pleasure to provide you with the kind of quality and service you can only find at Metro! The auction is held every Tuesday at 9:00 a.m.

San Antonio Auto Auction

13510 Toepperwein Road San Antonio, TX 78233 Phone: 210.298.5477 Fax: 210.298.5484 Contact: Brandon Walston, adietze@saaatx.com Website: www.SanAntonioAutoAuction.com Continuously striving to make customer service the number one priority, San Antonio Auto Auctionâ&#x20AC;&#x2122;s reputation is one of integrity, allegiance, quality and expertise. Dealer auctions are held online and in the lanes every Tuesday at 9:30 a.m. Fresh dealer trades are hosted Thursdays at 1:30 p.m.

MCCONKEY AUCTION GROUP DAA Northwest | KCI Kansas City | DAA Seattle

2215 South Hayford Road Spokane, WA 99224 Phone: 509.244.4500 Fax: 509.244.8244 Email: dpendergraft@daanw.com Contacts: David Pendergraft, Doug Doll, Dave Blake Website: www.McConkeyAuctions.com The McConkey Auction Group consists of DAA Northwest, KCI Kansas City and DAA Seattle. The three independent auctions feature consignment from virtually every major national account. Additionally, DAA Northwest and DAA Seattle feature 800+ late model trucks & SUVs each week. Buy in-lane or online via Edge Simulcast. See our ad in the TIADA Weekly Update e-newsletter.

Texas Lone Star Auto Auction

220 Country Club Drive Carrollton, TX 75006 Phone: 214.483.3597 Fax: 214.483.3814 Website: www.tlsaa.com Contact: Jeff Dunning, Jr., jeffjr@tlsaa.com Texas Lone Star Auto Auction Carrollton has 30-plus years of experience assisting Franchise Dealerships with the sale and disposal of wholesale vehicles to other licensed dealers at auction. The auctions are held every Tuesday and Thursday @ 2:00 p.m.

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feature

Greg Phea Named 2017 Texas Quality Dealer of the Year by Texas Dealer staff

Greg with his daughter Chloe (left) and his wife Patricia (right).

TEXAS DEALER What does being named “Texas Quality Dealer of the Year” mean to you? GREG PHEA I have to first start by saying that I consider it an honor and I am humbled by it. Winning the Quality Dealer of the Year award means a lot to me because of the standard it upholds. For years I have admired and respected the previous recipients and I feel blessed and grateful to now be among them in sharing this honor. It gives my business a credibility that speaks for itself. More than anything, it means that I can share this award with the people who made it possible. I did not get to this point alone. My faith, family, employees and customers, all had a role. October 2017

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“Without community involvement, you cannot thrive or stay in business. Community interaction is the favorite part of my business.” Greg Phea, 2017 Texas Quality Dealer of the Year

Greg speaks with customers at Austin Rising Fast Motor Cars.

TD When did you decide to get

involved in TIADA and why? GP I was recruited in May of 2005 by Jackie Gill, who was the Director of TIADA at that time. She was pretty persistent, so I joined. Being a member of TIADA has made a difference in my continued growth and success. The current staff is always available for resourceful support and they go above and beyond to provide current, relevant information in the field. I encourage everyone to join because it helps your 30

business maintain a higher level of professionalism.

TD What dealer(s) or individuals have been most influential to you in your career? GP Keith and Marsha Hagler, Byron Riley, Wilber Laney, Gary Sayre, Gary Bostick, Greg Zak, Tommy Gregory, Don Wilson, Juan Sabillon, Baldomero Treviño, Sonny Paredez, and Bob Lipsey — there are just too many to name. TIADA members become like family over

time and I’ve learned a lot from so many. We call each other when we have questions or when we need help and we are always there for one another. So many people have been influential and supportive that I can’t name them all.

TD In what ways has TIADA impacted you and/or your business? GP TIADA has allowed me to be a part of an organization where everyone has similar goals, standards and integrity. It is nationally T e x a s

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What’s included: Funding for receivables You collect or We collect Floorplan Lines Simplified Insurance tracking

reports package respected and since its start, it has provided members with the compliance guidelines, news and education in the field that directly can impact our success. TIADA also keeps us competitive locally and nationally.

TD How has community involvement played a role in your success? GP Without community involvement, you cannot thrive or stay in business. Community interaction is the favorite part of my business. October 2017

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Visiting schools, helping out in the community motivates me to be a better person. Just recently, I met with Byron Riley in Houston to deliver water and supplies to a church whose community was greatly impacted by hurricane Harvey. It was an extremely humbling experience and it certainly confirmed our priorities because in the grand scheme of things, “it’s not about the cars, it’s about the people.”

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October 2017

feature

Mobile Auctions: Bringing the Cars to You by Michael Spurlin Texas Dealer Editor

A dealer completes a sale at a Manheim mobile auction.

very dealer knows that no matter how strong a sales pitch or how spiffy the dealership, if the customers do not like the car, they won’t buy it. Having the vehicles customers want is key to success. Many dealers will travel long distances to auctions across the state of Texas and even other states to find the right inventory. This is especially true for dealers located outside of the major metropolitan areas that might not

October 2017

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be near a permanent auction location. However, there is another option for these dealers, and that’s a mobile auction. A mobile auction is when the wholesaler brings the cars to the dealers, hold temporary auctions in locations such as dealerships, convention centers, hotels or race tracks. Texas Dealer reached out to representatives from Manheim and ADESA to learn more about their mobile auctions and how dealers might benefit from using them.

How Mobile Auctions Are Different

“A mobile auction is simple, we bring the auction to the client,” explained Alison Spangler, Director of Manheim Mobile Auctions. “We give them what they want, how they want it. It is very customizable. We bring the technology, such as simulcast, our processes and people and literally load them up 35

Dealers search for the right inventory at a mobile auction.

in a truck and trailer, bring them to a location and execute a sale.” According to Spangler, they are capable of emulating a traditional sale from any location with mobile auctions. Typically, they work with dealers when staging mobile auctions but have also hosted special event sales with commercial clients in the past such as BMW at the 36

NADA conference in New Orleans this past year. Jane Morgan, President of the Specialty Division with ADESA, said her company utilizes mobile auctions as part of their commitment to help dealers buy and sell vehicles no matter their location. “At ADESA and across [our parent company] KAR, we don’t dictate

where and how a vehicle should be sold,” Morgan said. “We’re committed to providing the best, most technologically advanced venues for selling and buying used vehicles. Whether it’s physical auctions, online, mobile and mobile apps — we want to be in every space and are creating marketplaces to sell any vehicle, any time, in any channel.” T e x a s

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we’re looking to have that consistent experience across all auctions whether you are at a mobile auction or physical location.” “A mobile auction is very similar to a sale day at a physical auction location,” echoed Morgan. “ADESA handles every aspect of the mobile auction. Mobile auction units include the same services as a physical auction house. We handle every stage from check-in to check-out

The most obvious benefit of mobile auctions is convenience. They eliminate the need to travel to out of town auction sites and offer more options to address inventory needs.

For dealers attending a mobile auction for the first time, the experience will seem familiar to that of a traditional auction. Both Spangler and Morgan stressed that their companies strive to recreate the feel of a traditional auction at their mobile venues. “Honestly, it’s not much different from an operational standpoint,” October 2017

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said Spangler. “The main difference is that most of these locations can pick up and leave right after a sale. We just drive the trailer away. While we do try to add many of the value-added services, such as the PSI which is the post-sale inspection, they’re not available at every mobile sale. But from a service and experience standpoint,

and everything in between: dealer registration, payments, titles, and more. From marketing to operations, to selling and releasing the vehicles, we do it all. Of course, ADESA also provides the ringman and auctioneer.” Morgan offered the same advice for first time attendees to a mobile auction that she would give to those attending a traditional auction for the first time. First, dealers should understand all the nuts and bolts of how an auction is run and the rules of attending a new auction. For example, dealers should be familiar with the hours of operations so they know when to preview vehicles and when to pick them up. They should also make 37

sure they have met all the registration requirements and understand the payment process.

Mobile Auctions Offer Dealers Many Benefits

For dealers, mobile auctions can offer an array of benefits. The most obvious benefit to dealers not located near a permanent auction site is convenience. It eliminates the need to travel to an out of town auction site which could be hundreds of miles away. It also gives them more options to address their inventory needs. According to Spangler, Manheim first began running mobile auctions as a way to give dealers more flexible options for managing their inventory. They allowed

them to save time and money while dealers worked to grow their business. “For buyers and sellers, transportation costs and times are drastically reduced because we’re coming to them,” Spangler said. “For clients in underserved markets, we bring more choice and competition, along with giving them more options in where and how they can wholesale their inventory.” Also, these types of auctions can help dealers attract new business. “There is a captive audience at a mobile auction, with all eyes on the seller’s vehicles,” Morgan said. “Mobile auctions might attract new customers that typically don’t attend physical auction sites.” Spangler and Morgan encouraged dealers wishing to attend a mobile auction to visit their auction websites or reach out to

representatives at a physical auction location. There is always a possibility to add new locations. “We are looking to be as nimble as possible, and we’re really listening to what the dealers want,” Spangler said. “So, if we are hearing out there hey we need a sale in Decatur, Texas or maybe outside of Austin we really take that information to heart and we’ll do the research and start touching base with our clients there to find a location to start serving more.” For more information on Manheim mobile auctions, visit their website Manheim.com and look under the BUY tab or ask a local representative. For more information on ADESA mobile auctions visit http:// mobile-auction.adesasource.com/ or email mobile.auctions@adesa.com.

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