Texas Dealer October 2018

Also In This Issue: – Michael W. Dunagan on Timely Title Transfers – Keep Your Staff Front Line Ready – Vicki Davis Named Texas Quality Dealer of the Year

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

Volume XVIII

/ I s s u e 10

/ O c t o b e r 2 018

texasDealer contents

4 Officers’ Message

by Juan Sabillón, TIADA President

8 Letter to the Editor 11 Legal Corner: Timely Transfer of Titles Requires Diligence

by Michael W. Dunagan

12 Upcoming Events 15 TIADA Member Application 16 Board of Directors Meeting Minutes 17 Vicki Davis Named 2018 Quality Dealer of the Year

by Texas Dealer Staff

20 2018 Auction App Directory 24 On The Cover: NEW TxDMV Rule Allows for Customer Referral Fees and Here Are Four Things You Must Know

by Texas Dealer Staff

27 TIADA Day at the Capitol: Save the Date 29 Are Your Sales People & Facility Front Line Ready?

by Paul Webb

37 TIADA Dealers Visit Lawmakers in Washington D.C.

by TIADA Staff

38 Local Chapters 41 New Members 45 Behind the Wheel

by Jeff Martin

Download the TIADA Auction App! Now you can download the all new TIADA Auction App on your smart phone. It offers the same great savings of the VIP Auction Card but with the convenience of a mobile app.

Get up to $200 off a a buy/sell fee at over 40 participating auctions around the state. See page 20–22 for details!

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

officers’ message Introducing Your Children to the Business

W

e might all hope in the beginning that our children will follow in our footsteps and want to take on the legacy that we’ve established at our prospective dealerships. Ultimately, we raise our children to be the best human beings that they can be, independent and free to decide what they will be when they “grow up.” It is up to us as parents to give them the tools to follow their own career path. I made sure to instill the importance of a solid education in my household and let the rest follow. This is my own personal account of how the second generation is being introduced into my dealership.

Ever since my children Christina, Jessica, and David were little, I would bring them with me to the office or to conferences during my career. They grew up in the industry. I could tell that my first-born Christina showed the most interest when she said that she was going to pursue a degree in business. My other two still hadn’t showed any interest in the dealership, so I introduced Christina to the finance department. She would work summers and Saturdays in high school taking payments, inputting references in the DMS and making collection calls. My second child graduated high school and she wanted to go in to the medical field, and I supported her in that journey. My youngest, David, would

by Juan

Sabillón

Mi Tierra Auto Sales (Houston) TIADA PRESIDENT

join me at the auction and would observe my process.

During a drive home one day he expressed his desire to want to learn more. I knew then I was ready to share more with my only son.

It is important not to give them too much responsibility too soon. I started both Christina and David with small roles. Christina started in the BDC, making appointments, generating leads and following up on the CRM. David would wash the cars, line the inventory up and tag cars. Christina attended school locally at Houston Baptist University and earned her BBA. David ventured to Florida’s Northwood University campus and finished his studies in Automotive Management. Later, they would earn their current positions as inventory manager and compliance officer.

On Thanksgiving Day in 2013, my life was forever changed. I experienced a heart complication and fell ill. My first reaction to this health scare was to wonder what would become of the business? At the time Christina was a month away from graduation, David was in the middle of his studies, and I had to undergo open heart surgery. I knew it was all in God’s hands, but I had to be prepared for the worst, yet hope for the best.

They both knew that they weren’t prepared to handle all the operations of the business if complications came

They come from the new generation of car buyers, and they can help us as much as we can help them in this ever changing and growing industry.

October 2018

T e x a s

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from the triple bypass. Thankfully, it was not anything they had to face. I grew closer with them and they wanted to learn more after that experience.

They have me to guide them in any obstacle that may come before them. I am happy to pass on any wisdom to them. I can see their growth and can see a new age coming with our second generation.

There is an element of peace knowing that I can trust the operation being run by each one of them.

I do not have to spend time worrying about what is going on because they also have the business’ best interest at heart. There is a philosophy in place that I have taught them. Work hard and stay humble.

Follow the procedures in place, and if there are any new innovative ideas, share them with me first. We create a plan, implement a written policy and execute. This is an interesting time in our industry, but there’s a lot we can learn from our children. It was them who suggested we leave print marketing and apply more attention to digital ads. This increased my sales by 35% the next year. They come from the new generation of car buyers, and they can help us as much as we can help them in this ever changing and growing industry.

h t t p s : // r e c o r d i n g s . t x i a d a . o r g 6

T e x a s

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October 2018

e-Tag Supplies —

In Stock for Immediate Shipment!

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letter to the editor In A Class

By Himself

I

behind the wheel

A Legacy of Leaders with the tired stereotypes and clichés ’m writing in response to Jeff Martin’s hip of the past. He was the consistent Behind the Wheel column from last I embodiment of a consummate promonth regarding Blake Ingram stepfessional. Both his public and private ping down from the TxDMV board. actions were as eloquent as his words; Not long after I arrived here in Tampa he was honest, fair, compassionate and at my new job, I realized I had a couple principled in word and deed. Blake of board members who believed they did what most people would think is knew everything – EVERYTHING. His advocacy for impossible: He gave used car dealers a I texted Blake and said I was dealing the industry and passion for his fellow dea lers might be Bla ke good name. with some folks who thought they Ingram’s greatest contribution.

Maybe Blake’s not in a class by himself, were on his level, so I had to straighten but it sure doesn’t take long to call roll. them out. I told them, “I served with Blake Ingram. I knew Blake Ingram. Blake Ingram is a Danny Langfield friend of mine. Sir, you’re no Blake Ingram.”

(Okay, I did not actually tell my board members this.

Editor’s Note: Danny Langfield is the former TIADA Figured getting fired probably wasn’t the best way to Deputy Director. Now CEO for the National Mobility start the new job.)

Equipment Dealers Association in Tampa, Florida, I hope Blake got a bit of a laugh out of the JFK referDanny worked for TIADA from 2006-2016. ence, but there was more than a grain of truth to what I was saying; Blake genuinely was the quintessential board member, both for TIADA and for TxDMV. When I read that Blake was stepping down, I was reminded of his many accomplishments, which are too numerous to list here. But one intangible achievement stuck out in my mind: He changed the perception of a used car dealer.

We all know the public’s distorted notion of the industry, but Blake’s leadership made it impossible to paint dealers Blake (Third from right) poses with other members of the TxDMV Board of Directors.

by Jeff Martin

TIADA EXECUTIV E DIRECTOR

n 2011 it would take an individual at least three months to get a new all the passionate independent automo opinions that resulted bile dealers license from the Texas in the guidelines used today by the agency. and the licensing renewal Department of Motor Vehicles Blake’s ability to focus process was the picture ficiency. It had been on detail and efficienc of ineftapped again when that way for as long y was he was asked to serve as I can ber and was one of, on a group working to help launch if not, the biggest complai rememthe faltering webDea from the industry. nt I heard Blake allowed the That was the same agency to use his dealersh ler program. year Blake Ingram was appointed by the beta testing sites Governor Rick Perry ip as one of and to serve in the independent dealer throughout the process provided much needed input spot on the relativel y new as Texas moved into Board. Within a few frontier. His input this new months of his appoint TxDMV and guidanc leadership skills became ment Blake’s e was invaluable through out those early stages. more and more evident. asked to chair a subcom He was His advocacy for the mittee to review the industry and passion ing process and make dealer licensdealers might be his for his fellow recommendations greatest contribution on how the state could become more though. At one contentious board effective and efficient meeting an ill-infor . In Blake put together med peace officer was railing against a committee that include short order used car dealers, particul dent, franchise, motorcy d indepenpay-her arly buy-her cle, RV, and salvage e dealers who he painted e just four months the dealers. In as criminals. In typical Blake manner he allowed committee held numero collecting input and the gentleman to finish. us very calmly turned suggestions that resulted meetings, Then he on his report. Today it takes in the final a proud buy-here pay-her microphone and said, “Sir, I am on average nine days new license and the e dealer and everythi to secure a stated is inherently renewal process is ng you just false.” He invited the even faster.

During those meeting officer to stay after the meeting and s it became apparen learn more about the was struggling with t the agency industry.

His peers on the DMV the “fitness and felony” rule that required Board recognized rule — a and elected him to his leadership the agency to factor vice chair in 2016 in the criminal history of an applican and it will come as no surprise that the t. If there were 40 new rule passed last people in the room, there were month that will 40 different opinion allow independent dealers to legally pay s on how to apply this rule and little a customer referral fee was spearhe to no direction given aded by Board Membe to the agency.

Because of their recent r Blake Ingram.

After seven years success, the licensin of serving your industr tee was given the new g commitmatched professionalism y with unchallenge to create a fitness and felony rule that was and dignity Blake away from the DMV clear stepped Board in June. Howeve to watch Blake masterf and fair. I had a front row seat his accomplishmen r, through ully manage the commit ts he is leaving behind tee and a better board, agency and industr y that we can all be proud of.

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October 2018

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legal corner

Timely Transfer of Titles Requires Diligence

by Michael

Dealer Question No. 1:

I recently retailed a vehicle that was a trade-in I bought from a new car dealer. The title certificate got tied up for some time, so I was late in transferring. Now I’m being fined by the Texas Department of Motor Vehicles for late transfer and I have a very unhappy customer. Where do I stand?

Dealer Question No. 2:

I recently retailed a vehicle I bought at a wholesale auto auction. After two months, the auction informed me that it wasn’t able to get a title certificate for the vehicle. I’m out money for repairs and improvements I made to the vehicle, and the loss of a sale, but the auction refuses to reimburse me for my losses.

Where do I stand?

Response and Discussion: TxDMV takes

the position that timely transfer by a dealer after a retail sale is strictly and absolutely required, and no excuses are tolerated.

F

or many years now, the number one complaint against dealers, and the number one TxDMV violation for which fines have been assessed, has been the failure to timely transfer title after a retail sale. In many of these cases, the dealers have sold vehicles purchased in good faith, but later ran into problems when the title certificates didn’t arrive in time (or not at all).

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Often, TxDMV becomes aware of a late transfer when a consumer files a complaint about dissatisfaction with a dealer for such things as the dealer’s refusal to undo a deal, or to make a repair, or because the temp tag has expired and the metal plates haven’t been obtained. In compiling information for the complaint, regardless of the nature of the complaint, TxDMV acquires information about the timing of the transfer (or non-transfer) of the title. Based on many years of representing dealers in legal and administrative actions involving title problems, and in observing the TxDMV violation reports, I have concluded that late transfer (and in some cases, failure to transfer) violations can be generally put in three categories: (1) outlaws, thieves, and scofflaws who have no intention of following the rules; (2) t hose dealers who, while being basically honest, have trouble keeping up with the burdens of business; (3) diligent, honest dealers who transfer over 99 per cent of their sales in a timely fashion,

Dunagan

W.

TIADA GENERAL COUNSEL

For many years now, the number one complaint against dealers, and the number one TxDMV violation for which fines have been assessed, has been the failure to timely transfer title after a retail sale. but who, despite their best efforts, occasionally have one fall through the cracks or have trouble with a late title coming in.

While those in the first two categories get little or no sympathy, I feel for the dealers in the third. And, since dealers in the first two categories are unlikely to read this, I’d like to offer some suggestions for those in the third category.

The issue of late filing of titles for dealers in the third category 11

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12

could be totally eliminated by making one change in how business is done: the refusal to sell a vehicle until the title certificate has come in. Most dealers tell me that would be an impossible situation. Assuming that retail sales are going to occur prior to receipt of the title certificate, some amount of planning is necessary to handle situations when titles are late coming in, and preventing the problems from escalating.

My recommendation to the dealer who is willing to sell a vehicle before the draft or title arrives has always been to be prepared to address the issue with the buyer if the title is late.

Files should be monitored to flag approaching transfer deadlines, so that time is allowed for the extra efforts needed to track down the titles. Instead of ignoring these problems, or waiting for the customers to complain to the state, I recommend calling the customers in, discussing the problems, and offering to remedy the situation.

Remedies include swapping the customer into another vehicle or obtaining a 30-day permit from the local tax office (this doesn’t solve the late-transfer problem, but may keep the customer happy). Of course, a second temp tag should never be issued as that is an additional violation of dealer rules, and would only compound the problem.

Also remember that an expired buyer’s temp tag could possibly result in the customer getting stopped and ticketed for driving an unregistered vehicle. In addition to having a very unhappy customer, the dealer will also likely face action from TxDMV

since police departments often report expired temp tags to TxDMV. It should also be kept in mind that, during the time before the transfer takes place, the dealer’s lien is not recorded or perfected, and third parties are not on notice of the dealer’s interest in the vehicle. This gap can present a major problem if the vehicle is

Dealers should not expect sympathy or a free pass from TxDMV (or their customers) because an auction, new car dealer, or wholesaler caused the problem by not supplying a title certificate on time. impounded, wrecked, or subjected to a mechanic’s lien.

At one time in the ancient past, some BHPH dealers were late in transferring because they were required to advance all sales tax at transfer, and they were waiting to collect additional payments to cover the tax. Deferred sales tax eliminated that problem. Another past problem for dealers was the requirement of having to provide proof of a buyer’s liability insurance before a transfer could be accepted. That requirement was subsequently eliminated on dealer transfers.

One of the most common complaints I hear from dealers who have been cited for late transfer is that it was their seller’s (or an T e x a s

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auction’s) fault in not supplying the title certificate in time. New car trade-ins, for example, are prime late-title prospects because individuals seem to have a hard time keeping track of their title certificates.

And most wholesale auto auctions, despite having personnel assigned to work with sellers in tracking down titles, occasionally run into unusual delays and dead ends.

If, before the title certificate comes in, the buying dealer spends money fixing up a vehicle, or retails it to a consumer who spends money on it, there will be a problem when the unavailability of a title comes to light.

Dealers should not expect sympathy or a free pass from TxDMV (or their customers) be-

Good planning and diligent handling of titles and title transfers can go a long way toward eliminating fines, bad publicity, disgruntled customers, and loss of lien status. cause an auction, new car dealer, or wholesaler caused the problem

by not supplying a title certificate on time. When this excuse is presented to TxDMV, the response is usually direct and pointed: “If you didn’t have the title certificate, you shouldn’t have made a retail sale of the vehicle.”

I routinely get calls from dealers wanting to know what state law provides when an auction is late getting a title to a buying dealer.

The answer is that state law is silent on the issue and the contract between the parties controls.

Most auctions have in their registration agreement or their rules and regulations provisions dealing with the obligation of sellers to timely provide titles and remedies available to buyers when they don’t. The standard contract language provides that a buyer’s sole remedy, if the title doesn’t come in within a specified time (usually 20 to 30 days), is to return the vehicle

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and void the sale. There is usually language advising buyers that if they sell the vehicle, or perform improvements prior to the title coming in, they do so at their own risk. Attempts to obtain restitution for lost profits or other damages caused by a late title usually fail in light of the clear contract provision.

When the e-tag system was implemented a few years ago, the mandate that titles be timely transferred on retail sales became even more critical than it was before.

The keystone of the revised temptag scheme is the on-line reporting of all retail sales that occurs at the time of the sale, making information instantly available to the state as of the date of the sale. Prior to implementation of e-tags, the first notification of the retail sale of a vehicle available to the state was the actual transfer of title at the county tax office (or, possibly, a consumer complaint to the TxDMV).

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TIADA was successful a few years ago in getting the legislature to extend the time periods for dealers to transfer and to lengthen the time that a buyer’s temp tag is valid. Those time periods are: Dealer-financed sales: 45 calen dar days from the date of sale.

Non Dealer-financed sales (cash

or third-party financing): 30 calendar days from the date of sale.

Valid period for use of buyer’s

temp tag: 60 days.

Deferred sales tax: If title isn’t

transferred within 60 days after the date of sale, deferred sales tax treatment is lost and sales tax is accelerated.

Secured creditor position in

bankruptcy: If title is not transferred within 30 days from the date of sale, the car creditor’s security interest can be stripped, resulting in an unsecured creditor position.

Conclusion: Good planning and diligent handling of titles and title transfers can go a long way toward eliminating fines, bad publicity, disgruntled customers, and loss of lien status. Even with extended deadlines for transfer, it’s always best to transfer immediately after the sale.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 40 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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TIADA texas independent automobile dealers association

Become a TIADA Member Business Name: ____________________________________________ Select one:

Dealer Member

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________ City: _________________________________________ State: _______ Zip: __________________ County: _____________________________ E-mail address: _____________________________________________ Business Phone: _______________________ Fax: ________________________ Cell Phone: ___________________________________________ Dealer P Number: ___________________________________________

TIADA texas independent automobile dealers association

Membership Dues: $499 New Member

Good through 12/31/2019.

Pay full amount today and receive the rest of 2018 for free.

Renewing Member

good through 12/31/2018.

Dues include NIADA and local chapter membership where applicable.

Who referred you to TIADA? __________________________________ Mailing Address (if different from above): __________________________________________________________ City: _________________________ State: _______ Zip: ___________

PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Sec.Code: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Expiration Date: ____________ Monthly Payments - $41.58 per month Via Credit Card (Please enter card information above) Via Bank Draft (Authorization Agreement 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.org

512.244.6060

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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board of directors meeting minutes July 29, 2018 | Hilton Anatole, Dallas, TX

compiled by Texas Dealer staff

At its meeting on July 29, 2018, TIADA took the following actions:

A discussion occurred regarding problems with totaled vehicle not being reported

President Greg Zak called the meeting to order at 12:08 p.m.

Treasurer Mark Jones presented the FY19 budget update.

Executive Director’s Report

Moved by Greg Phea, seconded by Vicki Davis — PASSED

Jeff Martin talked about annual conference registration, expectations for BOD members, legislative attendees.

Minutes of the Last Meeting

Secretary Robert Beck presented the minutes from last meeting.

A motion was made to accept the minutes.

Moved by Kathrine Tolsch, seconded by Juan Sabillón — PASSED

Treasurer’s Report

Treasurer Mark Jones presented the Treasurer’s report.

A motion was made to accept the report.

Moved by Kathrine Tolsch, seconded by Greg Phea — PASSED

President’s Report

President Greg Zak presented the President’s report.

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A motion was made to accept the proposed FY19 budget.

Old Business None

New Business

Paul Scott will be the new independent automobile representative on the TxDMV board, replacing Blake Ingram. Official announcement to come on Monday.

A motion was made to adjourn the meeting.

Moved by Eddie Hale, seconded by Greg Reine — PASSED Meeting adjourned at 2:40 p.m.

Respectfully submitted, Robert Beck, 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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feature

Vicki Davis Named 2018 Quality Dealer of the Year

by Texas Dealer Staff

TEXAS DEALER:

What does being named Texas Quality Dealer of the Year mean to you?

VICKI DAVIS: It is an honor to be recognized by my peers at TIADA. I look at all those that have won the award before me and it makes me very proud to be included in such an elite group of dealers, but none of this would be possible without the help of my family and my employees whom have all worked hard to help me achieve my goals.

TEXAS DEALER: When did you decide to get involved in TIADA and why?

VICKI DAVIS: I joined right after we opened in 1992, to get educated in our industry. Once I saw what a great association we had, I knew it was something I wanted to be a part of.

TEXAS DEALER: Which dealers or individuals have been most influential to you in your career?

VICKI DAVIS: I have always looked up to Scott Allen and Juan Sabillón. I first learned about twenty groups at one of the TIADA conferences I went to; after hearing how much they can help I joined one and have formed many lifelong relationships while sharing and learning from others.

TEXAS DEALER: In what ways has TIADA impacted you and/or your business?

VICKI DAVIS: I can’t imagine a life in the car business without TIADA. They are October 2018

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2017 Quality Dealer of the Year Greg Phea presents Vicki with this year’s award.

invaluable. They stay ahead of the curve on all the new laws and legislation that are pending, making sure they do not adversely affect us, and when a new law is passed they educate us on it. Texas dealers are a very fortunate group to have an association as strong as we do, and lucky to have Jeff Martin and staff to lead us.

TEXAS DEALER: How has community involvement played a role in your success?

VICKI DAVIS: I believe involvement in your community is very important and it makes you and

“I would like to challenge everyone to become more involved in the association.”

Vicki Davis, 2018 Quality Dealer of the Year

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Vicki and her husband Jack at the 2018 Annual Conference & Expo.

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Vicki congratulates a customer who just purchased a vehicle.

your employees feel good helping others. We like to support our youth through various ways, sponsoring ball teams to actually working the concession stands. We give out backpacks to the needy each year. This year my dad helped hand them out. He and the community loved it. We also go to the FFA show each year and support

our youth through the auctions there.

TEXAS DEALER: Any additional comments or statements you would like to add about your award/career?

VICKI DAVIS: Once again, I would like to thank TIADA for the award; you have no idea how much

this means to me. I love being a part of this association and I love being a Buy Here Pay Here dealer.

I would also like to thank Jeff and his staff for the great job they do — each and every time I call them, they do their very best to help me.

I would like to challenge everyone to become more involved in the association.

Vicki and the staff of A-OK Auto Sales.

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2018 TIADA Auction Directory

* VIP discount valid for sell fees only

ABILENE

DALLAS/FORT WORTH METROPLEX

Alliance Auto Auction Abilene

ADESA Dallas

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

C.M. Company Auctions, Inc.

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

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

Alliance Auto Auction Dallas

AUSTIN

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

ADESA Austin

America’s AA Dallas

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

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

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

Metro Auto Auction – Austin

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

CORPUS CHRISTI Corpus Christi Auto Auction

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

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

Insurance Auto Auctions DFW*

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

Manheim Dallas

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

Manheim Dallas Fort Worth

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

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

Insurance Auto Auctions Corpus Christi*

Metro Auto Auction – Dallas

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

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

Texas Lone Star Auto Auction

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

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

Insurance Auto Auctions El Paso*

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

Manheim El Paso

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

HARLINGEN/MCALLEN Big Valley Auto Auction

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

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

HOUSTON ADESA Houston

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

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MIDLAND/ODESSA

Manheim Texas Hobby

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

Texas Direct Auto Auction

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

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

America’s AA North Houston

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

NEW

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

Houston Auto Auction

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

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

Insurance Auto Auctions Houston*

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

Manheim Houston

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

Manheim South Houston

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

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NEW

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

America’s AA Houston

AutoNation Auto Auction – Houston

Insurance Auto Auctions Permian Basin*

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

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

Manheim West Texas

www.manheim.com 614 E County Road 7200, Lubbock, TX 79404 806.745.1905 General Manager: Nicole Graham-Ponce Tuesday, 10:00 a.m.

Texas Lone Star Auto Auction – Lubbock

NEW

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

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

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

SAN ANTONIO ADESA San Antonio

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

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

Manheim San Antonio

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

San Antonio Auto Auction

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

TYLER Greater Tyler Auto Auction

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

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

ONLINE ACV Auctions

NEW

www.acvauctions.com 800.553.4070

ONLINE ONLY

Get $250 in Credit 21

Have you downloaded the new

TIADA Auction App yet?

Same great savings in the convenience of a mobile app!

Now offering discounts on online purchases!

FREE buy/sell fees up to $200 at participating locations.

Turn to page 30 to see the latest additions to the app!

How to download and register: Android Users

Apple Users

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

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

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

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October 2018

on the cover

by Texas Dealer Staff

B

efore a few months ago, if an independent dealer paid a customer a referral fee they could and should have received a cease and desist order from the Texas Department of Motor Vehicles. For years the agency interpreted a customer referral fee as brokering, found in the Texas Administrative Code section 215.85. Due to that interpretation, when a dealer would contact TIADA to discuss their customer referral program, the conversation would usually end with frustration and confusion.

Dealers were frustrated they couldn’t pay a customer referral fee and confused as to why it was considered brokering.

Independent dealers were left with a tough choice since many claimed their customer referral programs accounted for 30–40% of their business.

About three years ago, TIADA set out to change the perception and rules related to paying a customer referral fee.

Blake Ingram, an independent dealer from Dallas, who at the time served on the TxDMV Board, lead the charge to educate and inform staff and Board members.

“It never made sense to me that brokering and referral fees were considered the same,” Ingram said.

TxDMV Director of Enforcement, Corrie Thompson, who is charged with enforcing the rule along with TxDMV

“These programs were simply customers referring their friends or family members to a dealership where they had a great experience. I let the Board know that these programs helped both the dealers and customers.”

Robert Beck, TIADA President-Elect

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General Counsel David Duncan, wrote the language of the rule that eventually passed. During the TxDMV Board meeting, TIADA PresidentElect Robert Beck from Stop-n-Drive Motors in San Antonio and TIADA member Erika Blankenship from Texas Auto Center in Austin and San Marcos both testified in favor the language.

“One of the Board’s main concerns was that these types of programs were brokering,” Beck recalled. “I explained that was not the case because they were not involved in negotiating the car deal. These programs were simply customers referring their friends or family members to a dealership where they had a great experience. I let the Board know that these programs helped both the dealers and customers.”

“We are very proud and appreciative of the efforts and time that TIADA staff, Mr. Blake Ingram and the numerous other association dealers put forth to allow and protect an independent dealer to establish a referral program to reward their customers,” said Mark Jones of MCMC Auto in Dallas. “The testimonies given by our TIADA members at the TxDMV Board Meeting were delivered in a common-sense approach and explained very well why customer referral programs are not in fact in conflict with the State’s brokering laws.

“Almost 1/3 of our monthly business is generated by ‘word of mouth’ referrals from our current and past customers to their friends and family members. We have always wanted to reward them, and this new law will allow us to say thank you in a much more engaging way. We are excited about increasing our referral business from this point forward without the fear that we are doing something in conflict with State law.”

The new rule went into effect in early September. TIADA worked with TxDMV to develop clear guidelines on how an independent dealer can implement the new rule and stay compliant.

First, this is only for independent dealers. Your referral program cannot be associated with your franchise, wholesale, motorcycle, house trailer or October 2018

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mobility license — if you have one.

Second, the referral program is only for current customers and customers who have purchased a vehicle in the last four years. The newly referred customer doesn’t have to purchase a vehicle from you.

Third, there is no cap on the amount of the referral fee and it doesn’t have to be cash. Yes, you can offer gift cards, TV’s, game tickets and other items that work for your dealership.

Last, you cannot make your referral program a part of any financing

agreement or retail installment contract. The association would not recommend reducing a payment, waving a payment or requiring a current customer to use their referral fee to make a payment as a part of the referral program.

“Thank you to all the TxDMV board members who took the time to understand that this law needed to be changed,” Jones said. “This is just one of the many examples of TIADA working on behalf of dealers across the state.”

.

25

2019

TIADA

Day

at# the Capitol make

your

voice

Heard

Save the date Tuesday, February 12

October 2018

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27

BUY ONLINE AT www.AmericasAutoAuction.com

21

LOCATIONS

Atlanta, GA Austin, TX Baton Rouge, LA Birmingham, AL Bowling Green, KY Chicago, IL

4

Dallas, TX Detroit Toledo, OH Greenville, SC Harrisburg, PA Houston, TX Interstate 94, MI

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

Austin

LOCATIONS IN TEXAS

Dallas

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

Tulsa, OK Virginia Beach, VA West Michigan, MI

TUESDAYS & THURSDAYS AT 1PM

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

THURSDAYS AT 1:30PM

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

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

North Houston

MONDAYS AT 6:30PM

1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

feature

Are Your Sales People & Facility Front Line Ready?

by Paul Webb I.T.S. Inc.

D

ealers and managers all agree that the number one reason customers buy a pre-owned vehicle is CONDITION. When you’ve got diamonds on the lot — you can ask for more and discount less. I know this as a fact because when I buy online or go to the auction I see the same thing happen in the lanes. Two cars come through the auction lane — exact year — model — mileage — tire wear — equipment — EVERYTHING — except for one thing — one’s dirty and one’s clean — how much ($$) of a difference? You tell me. When I ask managers in our Used Vehicles Manager’s workshop they all agree — at least a nickel ($500) — perhaps more. Well, here’s the purpose of this article. Your cars bring more money on the line when they’re in front line condition.

How about your sales staff AND dealership facility? Will they bring more profits to the dealership when they’re in front line condition? You bet they will. Here are just a few areas where you can apply the same techniques and practices you apply to vehicles to get your staff ready.

VEHICLES CONDITION • • • • • • • • • • •

Dead Battery / No Spark Dirty Exterior Dirty Interior No Certified Stickers No Pricing On Vehicles Sloppy Overall Lot Appearance Mis-Matched Tires Aged Inventory Damaged Windshields Missing Items — Mats / Keys / etc.

Small Scratch / Small Dent

SALES PERSON CONDITION • • • • • • • • • • • October 2018

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Lack of Motivation & Enthusiasm No Dress Code or Not Enforced Negative Internal Thoughts Poor Marketing & Prospecting Expectations No Name Tags Inadequate Training Poor Team Work — No Encouragement Wrong Person For The Position — Old School Poor Vision — Lack of Goal Setting & Coaching Sales Person Takes Shortcuts In Sales Process It’s The Little Things That ALL Add Up! 29

DEAD BATTERY — NO SPARK

VEHICLE: NEW Batteries ONLY in All Recons. Staff

starts vehicles every day. This helps avoid the “I hope this thing starts” prayer.

STAFF: Enthusiasm and passion starts with a “spark” from leadership. As the leader, You’re the SPARK! Conduct daily shift meetings. Get excited and have fun!

Every day you check the spark — crank up the vehicles AND people!

DIRTY EXTERIOR — NO DRESS CODE

VEHICLE: Wash pre-owned vehicles twice as often as your normally would.

STAFF: Make sure the staff dresses professionally.

Follow dealership dress code. People buy with their eye, and they buy you! Ensure the rest of the premises is clean as well; clean bathrooms, clean showroom, clean lot, neat desks, proper signage. It’s how things look that make an impact — vehicles, people and the facility.

DIRTY INTERIOR — NEGATIVE INTERNAL THOUGHTS

VEHICLES: Sales staff should arrange the lot, not at-

tendants. Another set of eyes keeps the interiors cleaner.

30

STAFF: Positive internal self-talk is key. The “interior”

of the sales person’s brain is the same as the interior of the vehicle. People who feel good about themselves produce good results. Managers should conduct “continuous improvement reviews” every 14 days. Catch people doing things right! Look inside the “interior” or their brain so to speak. When the sales staff moves vehicles, they get to preview vehicles and remember them. That internal spark, or clean interior (of their brain) adds to the excitement to show the vehicle. When managers coach more often they get to preview each co-workers “look” and disposition.

NO CERTIFIED STICKERS — POOR MARKETING

VEHICLES: Use all marketing materials including flags and stickers

STAFF: Put your people back to work. Teach outside

marketing as the number one step to the road to the sale. If you have a “Certified Program” make sure you merchandise it with flyers, posters and value folders in the vehicles. Separate your certified from non-certified.

Stickers grab attention. Outside marketing grabs the attention of new prospects. Note: At least 36 online pictures per vehicle with rich text description and videos are best.

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PRICES ON ALL VEHICLES — NO NAME TAGS

VEHICLES: Properly displayed pricing on the vehicles

helps build trust with the customers.

STAFF: Suggest name tags, including ones for managers.

Customers love it. They also help new hires adapt faster.

Each sales person could also have an individual presence on the dealership website. Prices on vehicles, name tags on co-workers, it’s all about the look and the branding!

SLOPPY OVERALL LOT APPEARANCE — INADEQUATE TRAINING

VEHICLES: Assign one staff member to “fine-tune” the look and line up of bumpers.

STAFF: Don’t reprimand sales staff for things they haven’t been properly trained to do. Only two things make a dealership successful, great products and well trained people. Sales meetings should be instructional, not “beat up” sessions. Provide all the training resources for success. Fine tune your training the same way you fine tune the lot.

MISMATCHED TIRES — POOR TEAMWORK

VEHICLE: New tires can make the deal. The added safety builds trust in today’s market, and the owner avoids extra expense.

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STAFF: When managers attend training with sales

people, everyone wins. Showing strong teamwork is key.

Just as new tires show you care about your customer’s safety, when managers attend training with the sales staff it shows you care about their success.

AGED INVENTORY — WRONG PERSON FOR THE POSITION

VEHICLES: Adhere to a strict turn policy. The turn is more important than the front end gross.

STAFF: Establish string hiring practices and be more selective. Look for people that are trainable. Some people need to go. If the old school people don’t see value of your strategies, you have something worse than aged inventory. You have aged THINKING! Turn both inventory and thinking.

DAMAGED WINDSHIELDS — POOR VISION

VEHICLES: Special attention to windshields pays off.

STAFF: You staff should be looking towards the future.

Each sales associate should be active on social media (Facebook, Twitter, YouTube, etc.) and have a personal website approved by management. Does your customer waiting area have free, easy internet access? Do you have work stations? Can you send videos to every prospect and sold customer? Have a vision!

31

MISSING ITEMS — SALES PERSON TAKES SHORTCUTS

VEHICLES: Does the vehicle have all the mats, keys, etc.?

STAFF: Are your sales people skipping steps in the

sales process? Internet customers want efficiency.

Don’t make them wait. Have it ready and show them that you care. If something is missing on the vehicle they will beat you up on price. If something is missing in the sales process it looks like you don’t care. It is the little things. Show your customers you care.

watch the small things add up. Look for the good and you will find it. Just as you would get that vehicle with a ding in the bumper back to recon, get the sales person’s attitude back in great condition. Go for the easy win and you will win big.

vehicle and repair them.

Front Line Ready means your vehicles have that great eye appeal or as some people say, “Eye Candy.”

When your inventory has that visual appeal — volume and grosses are increased. (We prove it all the time with higher standards of reconditioning.) When it comes to your sales staff and facility, it’s the same.

Choose some of the items on list above and start today with yourself. Improve the appearance of your staff and facility — bring them up to Front Line Ready — and watch your net profits take on an improved appearance.

tions. Mitigate these emotional swings by setting achievable goals on a daily basis. Always look for the small successes that lead to bigger successes. Look closely at your numbers. Track each sales activity and

Paul H. Webb, is the CEO / Founder of Paul Webb Training / WebbVT / I.T.S., Inc., (www.PaulWebbTraining.com) a contracted trainer who has trained over 41,000 students since 1988.

DING ON THE BUMPER — DING IN ATTITUDE

VEHICLES: Look for small scratches or dings in the STAFF: Sales people ride a roller coaster of emo-

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Dealer Academy On-demand Education Offerings

Online Courses You can quickly create an account, register and purchase these courses at our eLearning site.

How to Become An Independent Auto Dealer An On-Demand eLearning course Independent dealers across the U.S. average gross profits of about $250,000 annually, according to NIADA. But how do you get started in the business? Just what do you need to know?

$149 TIADA Members Available Anytime

AT YOUR CONVENIENCE • ONLINE COURSE • ON DEMAND

An Introduction to Transferring Titles This online course is a one hour, deep dive into the title transfer process.

Want to avoid having your title transfer paperwork rejected at the tax office? This online course is designed to walk you through the title transfer process and is best suited for people new to transferring titles or those who want to brush up on the basics. This course has been reviewed for accuracy by the Tax Assessor-Collectors Association of Texas.

$49 TIADA Members Available Anytime

AT YOUR CONVENIENCE • ONLINE COURSE • ON DEMAND

TIADA

Register and/or Login at w w w . d e a l e r t r a i n i n g . t x i a d a . o r g .

Contact us at the TIADA office at 512.244.6060 independent automobile or email ustexas if you need assistance. dealers association

TIADA texas independent automobile dealers association

Texas Independent Automobile Dealers Association

Dealer Academy

in partnership with Presents

Strategic Planning: The Workshop that Will Lead to a Great Tax Season Presented by Jay Rose, President, Global Training Solutions & VP AutoLoop Tax season is getting shorter and shorter. Make sure your dealership is strategically prepared to get the most out of this very important time of year. Jay Rose with Global Training Solutions-AutoLoop has designed a high impact, results-driven presentation that will give you the tools you need to implement an overall strategy for success by reviewing the most important parts of running your dealership.

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

$499 Non-members

Section one will include: • Building a successful team, hiring and keeping the right people • Processes and procedures that allow dealerships to measure success • Setting goals and helping your team get there Section two will include: • Training any size BDC to work with your sales team • Generating the right leads in the digital world • Turning phone calls into customers

Section three will include: • Selling vehicles professionally with an eye towards referrals • Structuring deals for customer success and a better bottom line • Follow up after the sale Section four will include: • Going over the specific challenges that participants have at their own dealership • Providing advice and solutions to these challenges so you can have the best tax season

Independent dealers wear many hats and this one-day seminar is geared toward helping a large cross section of dealers from owners, general managers, sales managers, internet managers, comptrollers and any key employee who wants to see your dealership grow. Preparing for tax season must start now — Do not miss this opportunity.

Monday, October 15, 2018 Houston Marriott North 255 North Sam Houston Parkway East Houston, TX 77060 281.875.4000

Sponsored by:

CP Insurance Associates www.cpiai.com

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

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Ignorance is no defense.

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

Dealer Financing of Used Car Sales This comprehensive book covers all aspects of the complicated world of seller-financing in Texas, including Maximum Finance Rates; Retail Installment Contracts; Contract Amendments; VIT; Repair Charges; Federal Disclosures and more.

TIADA Member Price: $125 (non-members $175)

Texas Automobile Repossession: A Lien Holder’s Legal Guide Everything you need to know about repossessions is addressed in this book, including Notification Requirements, Post-Repo Procedures, Private Sale vs. Strict Foreclosure, Bankruptcy, Post-Disposition Accounting, Tracking and Shut-off Devices, the 60% Rule and more. PLUS – includes all required forms.

TIADA Member Price: $125 (non-members $175)

TIADA

Now available for purchase online at www.txiada.org under “Legal Resources” or call 512.244.6060 to order by phone.

When ordering online, login with your TIADA username and password to receive the discounted rate. All prices include shipping. Orders are shipped in 3-5 business days. texas independent automobile dealers association

Attorney Michael W. Dunagan is the author of the two must-have books for every Buy-Here, Pay-Here dealer in Texas. Mr. Dunagan has been General Counsel to TIADA for over 40 years.

His law firm specializes in the representation of independent Texas car dealers.

36

TIADA texas independent automobile dealers association

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October 2018

feature

TIADA Dealers Visit Lawmakers in Washington D.C.

by TIADA Staff

“This is one of the most important things we do as an association. I can’t say enough about the dealers who take time away from their dealership to participate in this day at the Capitol.”

TIADA Executive Director Jeff Martin October 2018

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The TIADA delegation prepares to meet with members of Congress.

T

he National Independent Automobile Dealers Association held its annual National Policy Conference in Washington D.C. from September 24–26. In what is now a yearly custom, a delegation of Texas dealers attended and visited Capitol Hill where they met with members of Congress from Texas to discuss issues facing the industry.

During the conference NIADA welcomed speakers from several regulatory agencies who offered updates on important issues facing dealers and the industry. These officials included representatives from the Federal Trade Commission, the National Highway Traffic 37

Local Chapters VICTORIA Rowdy Ransom RTR Motors 351.582.4511 rowdyroy78@yahoo.com Meeting – 1st Monday (Monthly) FORT WORTH David Byrd Byrd Autos 817.915.2185 david@byrdautos.com Meeting – 4th Thursday of Jan–May and Sep–Oct DALLAS COUNTY Kathrine Tolsch Cico Auto Sales 214.352.9282 cicoauto@verizon.net (dates announced at ww.txiada.org) HOUSTON Rick Maroney Maroney Auto Sales 713.691.3800 rmaroney@usa.net Meeting – 2nd Tuesday (Monthly) SAN ANTONIO Jose Engler Irving Motors Corp 210.385.2568 pepeton2002@hotmail.com (dates announced at www.txiada.org) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 38

The TIADA delegation meets with U.S. Representative Henry Cuellar (third from left).

“We have been attending this event for several years, and now when we walk into an office, they know who we are.

They are eager to listen to us.”

Safety Administration and the Occupational Safety and Health Administration.

On the final day of the conference, dealers from all over the country met with their representatives from Congress. The Texas delegation met with Republican Congressman Roger Williams and Democratic Congressman Henry Cuellar. They also spoke to staffers from the offices of several other members of Congress. Among the topics discussed were tariffs on vehicles and vehicle parts. The dealers explained NIADA’s position that these tariffs would hurt the auto industry. They also urged the Congressmen to make last year’s tax cuts, including the pass through tax cut, permanent.

Additionally, they touched on issues that are always a concern for independent dealers such as auto recalls and CFPB reform.

“This is one of the most important things we do as an association,” said TIADA Executive Director Jeff Martin, “I can’t say enough about the dealers who take time away from their dealership to participate in this

TIADA Executive Director Jeff Martin

day at the Capitol. We have been attending this event for several years, and now when we walk into an office, they know who we are. They are eager to listen to us.”

The TIADA delegation included TIADA President Juan Sabillón of Mi Tierra Auto Sales, his wife Aracely, Erica Blankenship, Haley Blankenship and Martin Garcia of T e x a s

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U.S. Representative Roger Williams (center) talks with Erika Blankenship and Haley Blankenship of Texas Auto Center.

U.S. Representative Roger Williams (Center). meets with the TIADA delegation.

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39

Texas Auto Center, Mark Jones of MCMC Auto, and Scott Allen of Auto Land. Ariad Sommer and Efrat Bogoslavsky of Ituran and TIADA Executive Director Jeff Martin also made the trip.

We encourage all members to get involved in the legislative process and the next opportunity will come on February 12, 2019 at TIADA Day at the Capitol (see page 27). This is the specific day that TIADA members gather to meet with state legislators in Austin to advocate for legislation relevant to the used car industry. Dealers will have the opportunity to tour the Capitol, attend legislative meetings and interact with other dealers from across the state.

Attendance is free and TIADA will provide dealers with more information on how to register in the coming weeks.

Additionally, those dealers that did not make the trip and can’t be there in February still have an opportunity to strengthen the voice of the association and aid its legislative efforts by making a donation to TIADA’s political action committee INDEPAC. With just a few weeks before the election, time is running out for you to make a contribution that helps TIADA advocate on behalf of your business and your industry (see page 42 for more details).

We encourage all members to get involved in the legislative process and the next opportunity will come on February 12, 2019 at TIADA Day at the Capitol.

This is the specific day that TIADA members gather to meet with state legislators in Austin to advocate for legislation relevant to the used car industry.

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

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8739 Davis Blvd.

Keller, TX 76248

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

40

WE ALSO OFFER THESE COVERAGES:

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

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October 2018

Please Welcome Our Newest TIADA Members Discount Diesels LLC Lee Warriner 1481 N Hwy 183 Austin, TX 78642

DEALER MEMBERS AJ Auto Sales Anthony Jackson 16294 State Hwy 135 Arp, TX 75750 Aleman Auto Sales Gustavo Aleman 5507 Enrique M Barrera Pkwy San Antonio, TX 78227 AR1 Auto Group Alex Rizo 5402 Grissom Rd., 2A San Antonio, TX 78238 Auto Casa Omar Sharif 12205 East Northwest Hwy. Dallas, TX 75228 Auto SA Texas Narges Izad 8627 Bandera Rd. San Antonio, TX 78250 Automax Mack Amiri 1715 Alpine Circle San Antonio, TX 78248

Econo Cars Inc Jeff Jafari 2219 W. 43rd St Houston, TX 77018 Empyrean Auto Group – 6210SPID Ronnie Lillard 6210 South Padre Island Dr. Corpus Christi, TX 78412 Empyrean Auto Group – 7202SPID Ronnie Lillard 7202 South Padre Island Dr. Corpus Christi, TX 78412 Empyrean Auto Group – IH 45 Ronnie Lillard 779 Interstate 45 S Conroe, TX 77301 Empyrean Auto Group – Main Ronnie Lillard 3615 South Padre Island Dr. Corpus Christi, TX 78415

Autos Boulevard – IH 35 Isael Acosta 10526 IH 35 San Antonio, TX 78233

Empyrean Auto Group – S Staples Ronnie Lillard 4341 S. Staples Corpus Christi, TX 78415

Autos Boulevard – Main Isael Acosta 11300 I-35 San Antonio, TX 78233

Expocar Premium Angel Arellano 3102 West Avenue San Antonio, TX 78213

Autos Boulevard – San Pedro Isael Acosta 3904 San pedro Ave San Antonio, TX 78212

Grupo Aztecar Jose Rodriguez 16505 La Cantera Parkway, Apt 1523 San Antonio, TX 78256

Bay Area Auto Gallery Reed Woodcox 600 West Texas Avenue Baytown, TX 77520

GT Performance Group, LLC Timothy Garcia 4523 Westchester Glen Dr. Grand Prairie, TX 75052

BMW Preventative Maintenance Inc Ismael Martinez 9201 Richmond Ave Houston, TX 77063

Jendiz Auto Sales Vahsek Dinga 10201 Plano Rd., Ste 114 Dallas, TX 75238

Bonillas Auto Sales Humberto Bonilla 1005 Springdale Rd. San Antonio, TX 78721

Kent Beck Motors Douglas Beck 710 South Clack Abilene, TX 79605

Cali Cars Lucinda Moraida 9258 Culebra Rd., Ste. 133 San Antonio, TX 78251

Kerns Auto Sales Billy Kern 213 Main St. Kerrville, TX 78028

October 2018

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Kor Auto Sales – Branch Rodrigo Cortes 5828 IH 10 West San Antonio, TX 78201 Kor Auto Sales – Main Rodrigo Cortes 5828 IH 10 West San Antonio, TX 78201 Novax Auto Sales Noe Sifuentes 4910 Callaghan Rd. San Antonio, TX 78228 Preowned Cars of SA Alex Munoz 3124 Running Springs San Antonio, TX 78261 RLB Sales & Leasing Margaret Givler 5925 Camp Bowie Blvd.

Fort Worth, TX 76107 SA Auto Credit Jorge Maldonado 5131 NW Loop 410 San Antonio, TX 78229 Silver Auto Partners Sergio Sepulveda 10255 O’Connor Rd., #7 San Antonio, TX 78233 Texas Auto Outlet Fred Williams 13339 Murphy Road Suite B Stafford, TX 77477 Texas Auto Save Dominique Moraida 9410 Old Tezel Rd. San Antonio, TX 78254 TX Star State Motors, LLC Austin Johnson 3411 Ranch Rd. 620 N Unit C Austin, TX 78734

ASSOCIATE MEMBERS FT Acceptance Corp.

Orlando Hernandez 703 Waterford Way Suite 780 Miami, FL 33126

41

Yes, I would like to help with TIADA’s grassroots effort!

______________________________________________________________________________________

Add me to the KEY-PERSON list! I know (Name of Legislator) _______________________________________________ as a ____ Acquaintance

____ Personal Friend

____ Professional Contact

I would like to attend political fundraisers in my area I would like to support my industry by pledging a one-time donation of ___$1,000

___$500

___$250

___$100

Other $________

I would like to support my industry by pledging a monthly credit card donation of

$______________

______________________________________________________________________________________

____ Personal Check Payable to INDEPAC

_____Credit Card

_____ Invoice Me

Name_______________________________________________________________________________ Company ___________________________________________________________________________ Home Address_______________________________________________________________________ Email ______________________________________________________________________________

** Personal Check or Personal Credit Card only. Corporate contributions are prohibited by state law.

Contributions are not tax deductible as charitable contributions for federal income tax purposes. ** Charge my Credit Card V MC D AM __________________________________________________ Exp: _____/_____ CVV: _____ Name on Card: ____________________________________________________________________________ Card Billing Address (if different):

______________________________________________________

______________________________________________________________________________________

Or donate online at www.txiada.org >> Resources >> Advocacy >> Political Action Committee ______________________________________________________________________________________ c/o TIADA 9951 Anderson Mill Rd Suite 101 Austin Texas 78750

PHONE

42

512.244.6060 FAX 512.244.6218 EMAIL accounting@txiada.org T e x a s

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October 2018

Special Thanks to our

2018 INDEPAC Contributors (as of September 30, 2018)

Tommy Gregory Eddie Hale

$2,000 + $1,000 -$1,999

Mike Carlson Roy Carlson Steve Grieg Blake Ingram

$500-$999

Jeff Atchison Stephen Barrett Mark Jones* Dan Keetch

$250-$499

Ahmed Belmeshkan Clint Cockerellˆ John Freemen* Matthew Brewster David Byrd Habacuc Castaneda Vicki Davis Chris Elkins

October 2018

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Greg Reine Paul Scott Phillip Lathrop Juan Sabillon Michael Thomasson Kathrine Tolsch* Jeff Martin Wayne Meagher Brent Rhodes Jerry & DeDe Smith Sonny Paredez* Greg Zak*

$100-$249 Jose Engler Pilar Goodson Keith Hagler Debra Hayden*ˆ Carleton Heller*

*Monthly Contributors ˆNon-Dealer/Associate Member

Byron Riley*ˆ Rudy Roudbari Nelson Simonsen Chris Templin Tommy Wittrock

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behind the wheel A Customer Referral Program for You and for TIADA

L

ast month I was having lunch with one of our dealer members and we were talking about the new TxDMV rule that allows independent dealers to legally implement a customer referral program. He admitted he kind of already had a program in place but that they didn’t really promote the program that much since he was unclear about the brokering rules. We talked about how his program worked and about referral programs he had discussed with other dealers in and out of Texas.

We concluded that while the programs are all pretty simple, there are a number of different ways to promote the programs and engage your customers. He was excited about the opportunity to try some new marketing campaigns with his

current and future customers.

Then he delivered a blow that really hurt me! He said, “You know, we should think about doing some type of member referral program with the association.” I asked him what kind of member referral program would work and he started to throw ideas out. First he told me a dealer would be crazy not to join TIADA and he didn’t think he knew any dealers who weren’t already members. But he figured a member referral program that included $100 referral fee or recruit five members and get a free membership would probably do the job. Seemed to make sense, after all, his referral program included $100 for the referral.

The look on my face must have given it away. He stopped in midsentence and asked me if we

by Jeff

Martin

TIADA EXECUTIVE DIRECTOR

already had a referral program to which I replied, “yes.” We talked about the difference in him paying a $100 referral fee for his $8,000 to $12,000 vehicles and the association paying a $100 referral fee for a $499 membership and we both concluded that math didn’t work.

I explained our program; recruit 5 members and receive a complimentary annul conference registration, recruit 10 and receive the registration plus two night hotel and recruit 20 new members and the association will add an all expense (hotel, travel and registration) trip to the NIADA Conference for you and your guest.

He posed the next obvious question to me: How man people can actually recruit 20 members?

Since we started the program

Referral and recruitment programs work for your association the same way they work for your dealership. A referral from a peer is much more effective than a postcard in the mail.

October 2018

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seven years ago, we have had nine different people recruit 20 members in a 12 month period and five of them have done it more than once. Fourteen members have recruited at least five members, many doing it multiple times.

Referral and recruitment programs work for your association the same way they work for your dealership. A referral from a peer is much more effective than a postcard in the mail. And the more members you recruit, the stronger your association becomes.

The stronger your association becomes, the easier it is to work with the state agencies and legislators who represent your interest.

Three days after that lunch, I received a phone call from the same gentleman. He had spoken to a dealer at the auction who wasn’t a member. He had known the dealer for years and couldn’t believe his buddy wasn’t a member. He told me they chatted about all the great things the association had been working on and he said his friend had no idea. He told me the dealer was ready to join today if someone could call him to get him signed up. Within minutes TIADA had a new member and your association became a little stronger. I hope your new referral programs work at your dealership and I hope we get a similar phone call from you soon.

resource guide The TIADA Website: www.txiada.org

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

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov

Office of Consumer Credit Commissioner 800.538.1579 www.occc.state.tx.us

Texas Comptroller

800.252.1382 www.window.state.tx.us

NIADA

800.682.3837 www.niada.com

REPOSSESSIONS

American Recovery Association 972.755.4755 www.repo.org or contact TIADA state office View us on the web or Facebook for our latest GSA Sale Dates

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

46

FORMS Burrell Printing

800.252.9154 www.burrellprinting.com

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October 2018

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