Texas Dealer October 2016 by Texas Independent Auto Dealers Association

Giving Back TIADA Dealers

to Their Communities Also In This Issue: – Robert Blankenship Named 2016 Texas Quality Dealer of the Year – Regulation Matters: The CFPB & Arbitration – Michael W. Dunagan on Indirect Liability

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2017 TIADA Board of Directors PRESIDENT Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd. Dallas, TX 75229 Office: 214.352.9282 / Fax: 214.352.8227 Email: cicoauto@verizon.net PRESIDENT-ELECT Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net CHAIRMAN OF THE BOARD Phil Lathrop/VP Auto Sales Inc. 2921 S. Garland Avenue Garland, TX 75041 Office: 972.864.1300 Email: phillipl@vpautosales.com SECRETARY Trey Crouch/Trey Crouch’s Wheels On Credit, Inc. 636 E. Business 83 McAllen, TX 78501 Office: 956.972.0700 Email: trey@wheelsoncredit.com TREASURER Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net VICE PRESIDENT, 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) Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 Office: 817.703.7973 Email: markjones_1@att.net VICE PRESIDENT, DALLAS (REGION 3) Wayne Meagher/M D Auto Sales 2002 W. Main Street Grand Prairie, TX 75050 Office: 972.641.9598 Email: wayne@navchiefs.com VICE PRESIDENT, HOUSTON (REGION 4) 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, SOUTH TEXAS (REGION 6) Dan Keetch/Keetch Motors 1010 S. Staples Corpus Christi, TX 78404 Office: 361.882.3541 Email: dankeetch51@yahoo.com VICE PRESIDENT AT LARGE Juan Sabillon/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: brentfordct@yahoo.com VICE PRESIDENT AT LARGE Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 Office: 972.780.0001 Email: greg@autoliquidators.net 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 XVI

/ I s s u e 10

/ O c t o b e r 2 016

texasDealer

4 Officers’ Message

contents

by Kathrine Tolsch, TIADA President

6 In Memoriam: Ron Morrison 6 Local Chapters 9 Legal Corner: Is A Car Seller Liable For Accidents Caused by His Buyer? by Michael W. Dunagan

10 Upcoming Events 12 On The Cover: TIADA Dealers Giving Back to Their Communities by Michael Spurlin

16 Board of Directors Meeting Minutes

obert Blankenship Named 19 R 2016 Texas Quality Dealer of the Year by Michael Spurlin

25 Regulation Matters: Check, Please by Danny Langfield

35 Win the Zero Moment of Truth by Steve Santospago

39 New Members 42 TIADA Member Application 44 2016 VIP Auction Card Directory

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... We have released our newest online learning course,

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

officers’ message by Kathrine

Tolsch

Setting Goals and Keeping Them

ave you ever told yourself, “I’m going to lose ten pounds” or “I’m going to work out at least four times a week?” We all set goals, but how well do you stay true to the mission of the goal? How do you keep yourself accountable? It’s easy to let goals slide when you are the only one that knows about it. You tell yourself, “I’ll start working out next week,” or “I’ll just eat this one last dessert.” You have to have discipline to hold yourself accountable, but an even better strategy is to share your goals with family members, co-workers or a professional trainer. When you announce your goal it suddenly becomes real. You’re not skipping that workout when you have a trainer expecting you to be there, and you’re not eating that dessert at dinner with your family when they know you are trying to lose weight. The same ideas apply with any organization, whether it’s your dealership or our association, TIADA. The Board of Directors approved a new five-year strategic plan in July, which will lead us into the year 2021! To ensure we all stay accountable, I’d like to share the vision with you. The goals are centered on the primary objectives of membership, legislation, and digital communication.

Membership

Five years ago our membership was barely over 1,000 members. I can proudly say we will have well over 1,500 members this year. We will continue growing our association by exploring new membership incentives and increasing awareness within the industry, especially with non-member dealers. We will strive for quality dealers, like our members today, to keep the association grounded, strong and financially sound. Over the next five years we will be confidently moving toward 2,000 members.

ICO Auto Sales C (Dallas) TIADA PRESIDENT

Legislation

It is critical we continue on the path of increasing our role and our voice in legislation and rule-making that impacts our industry. The key to having this kind of influence is nurturing and expanding our relationships with legislators by contributing to the TIADA INDEPAC. This pools the voluntary contributions we, individually as dealers, make and donates those funds to political campaigns. Keeping our focus on ensuring we have a seat at the table and we are heard in Austin is paramount to our industry and our livelihood.

Digital Communication

We are strengthening our efforts in communication, specifically in digital media. We are increasing our resources to gain expertise within this niche of technology, and we have already begun expanding our digital presence through media sites like Facebook, LinkedIn, and YouTube. Our expansion in communication will allow us to have a broader reach within the industry, including dealers who are not currently association members. Reaching people digitally is vital to advancing toward our 2021 goals. Accountability to these goals will be a collaborative effort between members of the association. We all must take part; we must all provide support and be involved in some way through legislative contacts, recruitment or INDEPAC contributions, whatever suits you best. I’ve been privileged to be part of the TIADA Board of Directors to witness the growth and progress over the last five years. Now I’m excited about the next five years and TOGETHER seeing our association enter a new phase of industry influence and financial prosperity.

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Local Chapters VICTORIA Butch Hartman Hartman’s Auto Sales 361.575.1009 hartmanautosales@gmail.com Meeting – 1st Monday (Monthly) FORT WORTH Mark Jones MCMC 817.703.7973 mjones@mcmcauto.com Meeting – 4th Thursday of Jan–May and Sep–Oct

in memoriam Ron Morrison by Texas Dealer staff

e are deeply saddened to announce that Ron Morrison, former TIADA President and great friend of the association, passed away Wednesday, September 7th at the age of 71. Ron, who operated Morrison Auto, Inc. in Round Rock for over 25 years, served as TIADA President in 1993 and then again in 1995.

DALLAS COUNTY Eddie Hale Neighborhood Autos 940-539-2272 ehale@neighborhoodautos.com Meetings as needed/TBD HOUSTON John Freeman Galena Park Motors 713.675.0559 houiada@houiada.com Meeting – 2nd Tuesday (Monthly) SAN ANTONIO Robert Beck Stop N’ Drive Motors 210.432.1101 stopdrive@texas.net Meetings quarterly (dates announced at www.txiada.org) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 6

Ron was also very active in his community and was serving his third term as a Williamson County Commissioner for Precinct 4. At the time of his passing he was also serving on the YMCA Metro Board of Directors. Previously, he held leadership roles for groups such as the Round Rock Chamber of Commerce, Round Rock Rotary Club and Williamson County Pop Warner Football League. “Ron was a special person and a great friend,” Executive Director Jeff Martin said. “Ron was one of the first members I ever met when he helped interview me for the position of Executive Director ten years ago. Over that time, I got to know him very well. He will be greatly missed.” Ron is survived by Glenda, his wife of nearly 50 years. Please keep Ron and his family in your thoughts and prayers.

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legal corner

Is a Car Seller Liable for Accidents Caused by His Buyer?

by Michael

Dunagan

Dealer Question: I’ve received a demand letter from an

attorney who represents an individual who was injured in an accident with one of my customers. My customer did not have liability insurance and the attorney claims I have liability because I failed to ensure that my customer had liability insurance before delivering the vehicle. My questions: (1) Do I have a duty to see that my buyers have liability insurance? And (2), if they don’t, do I have liability for accidents they cause?

Response: At one time, dealers were obligated to present

proof of liability insurance for their customers at the time of title transfer. While that law was in place, dealers were constantly struggling with their customers to bring in proof that they had liability coverage, and in many cases, missed the deadline for making timely transfer. This problem was resolved when the proof-of-liabilityat-title-transfer requirement (as to dealers) was dropped by the Texas Legislature. But there are some folks out there who still think that selling dealers have the responsibility to see that their buyers have liability insurance, or should otherwise be responsible for the accidents the customers cause.

irst, one point needs to be made clear. No one questions the goal of universal liability coverage for drivers. All drivers should have liability insurance. How it should be enforced and who should bear the burden of obtaining it are, however, valid topics for debate (dealers should notify their customers in writing at closing that they are required by state law to have liability insurance). But the reality is that there will always be people driving on the states roads and highways who don’t have current liability coverage. It is thus necessary to examine the law of liability and see how it applies to a motor vehicle seller.

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TIADA GENERAL COUNSEL

In order to be negligent in the ordinary sense, a person must be driving the vehicle. Unless the selling dealer or one of his employees was driving the vehicle when the accident occurred, the dealer wouldn’t be negligent in breaching a duty to drive safely.

Generally, to be liable for an accident, a person must breach some duty to the injured party. For example, a driver of a vehicle has a duty to maintain control of his vehicle so that he can avoid striking a vehicle in front of him. If he causes an accident by driving too fast, by not keeping a proper watch out, by not braking soon enough, or by violating some traffic law, he has breached that duty. Or put another way, he has been negligent. In order to be negligent in the ordinary sense, a person must be driving the vehicle. Unless the selling dealer or one of his employees was driving the vehicle when

the accident occurred, the dealer wouldn’t be negligent in breaching a duty to drive safely. So, in a situation where the driver of a vehicle who causes an accident is insolvent and uninsured, an attempt is often made by the victim to reach the deep pockets of a dealer (or, more accurately, the deep pockets of the dealer’s insurer), through alleging a breach of some other duty by the seller of the vehicle. One such theory is called negligent entrustment. This type of negligence refers to the negligence of an owner in entrusting a vehicle 9

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October 2016 10 Better BHPH Financials

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to someone the owner knows, or should know, is an unsafe driver. Some people think — incorrectly — that the owner of a vehicle is automatically liable for the negligence of someone else. First, mere ownership without something more is not a sufficient legal basis for liability. Second, a dealer who has sold a vehicle, even if a lien is retained, is not the owner. A seller who has completed a sale is no longer the owner, even if the title certificate hasn’t yet been transferred. A dealer client once received a demand letter from an attorney who happened to be the person that the dealer’s buyer had rearended. The buyer didn’t have liability coverage. The attorney/victim demanded that the dealer take responsibility for the damages because the attorney/victim had been informed by an attorney for the Motor Vehicle Division that, since the dealer had not yet transferred the title, he was still the owner of the vehicle. Being the owner, the MVD attorney concluded, the dealer was liable. In this case, both attorneys were wrong. Under almost identical facts, the Court of Civil Appeals San Antonio held that a selling dealer could not be liable for negligent entrustment, even though the title certificate had not yet been transferred at the time of the accident. First, the court held, the law of Texas is that a seller can not have liability under negligent entrustment. Next, the court addressed the non-transfer issue by concluding that ownership passed upon signing the sales contract papers, payment of the down payment, and delivery of possession to the buyer. Title transfer, while important, was not the same as transfer of ownership.

The Texas Supreme Court, in the case of National Convenience Stores, Inc. v. TT Barge Cleaning Company, refused to review or change the long-established rule that a seller in Texas can’t be held liable for the acts of a buyer under the theory of negligent entrustment. We’ve seen several attorney demand letters and even lawsuits that alleged that the selling dealer had a duty to make sure that the buyer had liability insurance. None of these claims has succeeded. One of the most puzzling aspects of the argument that a selling dealer has some type of obligation with regard to liability insurance is

Some people think — incorrectly — that the owner of a vehicle is automatically liable for the negligence of someone else. just how far the obligation would extend. If, for instance, the dealer required that a buyer have an insurance card, and the card was good for only thirty days, would the dealer be obligated to see that the policy was renewed? What if an accident occurred on the thirtyfirst day and the insurance company denied the claim? How about an accident a year later? What if the insurance card was forged? The fact of the matter is that motor vehicle sellers have no obligation with regard to the liability insurance of their buyers. Our firm has been successful in defeating all suits filed against our dealer clients, usually via dismissal early in the proceedings. Yet dealers continue to receive demand letters T e x a s

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in such situations and, occasionally, lawsuits. If such a letter is received, however, it should not be ignored. The dealer should contact his or her attorney and also consider notifying the garageliability carrier about the claim. One warning about relying on the defense of a completed sale: this defense would not be available if the sale is incomplete. In one court case a dealer “sold” a vehicle to an employee, but failed to have all the paperwork signed. The dealer was found liable under the theory of negligent entrustment when the employee caused a wreck without liability insurance, even though the accident occurred on the employee’s personal time.

The fact of the matter is that motor vehicle sellers have no obligation with regard to the liability insurance of their buyers. Another word of warning: This rule does not apply to test drives. A seller could theoretically be held liable under a negligententrustment claim. Thus, it is risky to allow a potential customer to test drive a vehicle without (1) a current driver’s license and (2) a valid liability insurance policy. The law carries a presumption that

an unlicensed driver is an unsafe driver. It would be an easy step to establish that a dealer negligently entrusted a vehicle to an unlicensed (and thus, unsafe) driver in a demonstration drive situation. With regard to liability insurance coverage, dealers should make sure that customers test driving vehicles are covered by the dealer’s garage liability policy or, alternatively, that the test driver has his or her own liability insurance. 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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on the cover

Giving Back by Michael Spurlin Texas Dealer Editor

TIADA Dealers

to Their Communities

iven the cartoonishly outdated and inaccurate ways hackneyed comedians continue to portray them in the media, it’s easy to forget the difference car dealers make in the real world. Considering the ideals that define our association, it is not surprising that many TIADA members go to extraordinary means to help those in need. With the approaching holiday season and all the opportunities for charity it affords, we felt this would be a valuable opportunity to highlight some of the great work our dealers do in their communities. This is, of course, just a small sample and in no way covers all of the great charity work by TIADA dealers. Such a magazine would be too heavy to mail! However, if you would like to share some information about your efforts to help your community please let us know by emailing us at michael.spurlin@txiada.org and we will feature it on our social media channels.

Building a Food Pantry for a Community in Need

Blake Ingram with over 1,200 jars of peanut butter collected by Auto City employees. 12

In 2010 Blake Ingram of Auto City worked to found the Pleasant Grove Food Pantry in Southeast Dallas. Ingram attended a community meeting that year to discuss the creation of a food pantry and felt compelled to act. “I remember feeling like I was being somehow propelled forward,” T e x a s

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Ingram said. “There was no internal debate or question; I just felt absolutely certain that a food pantry had to happen for this community.” Ingram was elected chairperson and worked tirelessly to make the Pantry a reality. “I think one of my very best memories was my whole family pitching in: scrubbing out old donated refrigerators, pulling up the old floor, laying new tiles, caulking windows, and building shelves,” recalled Ingram. Ingram served as the Chairperson and President from 2010 through 2013 and continues to serve as an executive board member. Auto City employees have played an integral role at the pantry from the very beginning. They have transported food, stocked the shelves, served clients, and volunteered as translators. Auto City even donated a van to help the pantry pick up food. The pantry has grown steadily over the years. In its first year it served 3,672 people 57,000 pounds of food. Just four years later it served 19,450 people 159,413 pounds of food. The pantry is also affiliated with a community garden that helps provide fresh vegetables and eggs.

Above: Volunteers work in the food pantry and its affiliated community garden.

Below: Backpacks stuffed with school supplies ready to be picked up by students.

Giving Abilene Students a Head Start for the School Year

At the start of each school year, employees of Abilene Used Cars Sales collect school supplies and backpacks for local students. This year marks the fourth straight year for the backpack drive and they collected enough to provide over 500 children with a good start to the school year.

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Right: Many popular characters join in on the fun as children pick up their backpacks. 13

Elementary school students simply come to the dealership to pick up their backpacks. There they can enjoy food and drinks as well as meet popular cartoon characters. “We like to give back to the community,” owner Tommy Gregory said. “Without the community, we wouldn’t be here.” Tommy’s son Jason, who also works at the dealership, first thought of the idea. “The start of school can be taxing on young families with children,” Tommy added. “We just wanted to do something to help them out.”

A Place for the Children of Taylor

Keith Hagler of Taylor Auto Credit has been deeply involved in his community for years, volunteering with numerous organizations. He was even named Citizen of the Year of Taylor as a result of his work in the community. His next project is focused on helping the children and teenagers of his city. “When I first moved here there wasn’t anything for kids to do,” recalled Hagler of his small community northeast of Austin. “Many of these kids can’t go into Austin or Round Rock, they have to stay out here in Taylor.” That’s why Hagler is keeping the youth in mind as the team leader overseeing the project to build a new church and multi-purpose facility for First Baptist Church of Taylor. In addition to the usual church amenities of a fellowship and banquet hall, the facility will feature a community gymnasium. “The facility will be open seven days a week so that the kids in Taylor will have something to do here in town,” Hagler explained. Groundbreaking for the new facility will be held later this fall.

A rendering of what the new multi-purpose FBC facility will look like once completed.

Cars for Kids auctions donated cars at its facility in Dallas.

Charity Car Auction Helps Fund Texas Can! Academy

TIADA dealers aren’t the only ones making a huge impact in their communities. Our associate members are giving back as well. Cars for Kids is a charity owned and operated car donation program where the cars are auctioned to support Texas Can! Academies in Dallas, Fort Worth, Houston and Austin. Cars for Kids will pick up and tow car donations for free and auction them at one of their 50 annual auctions. Texas Can! Academies have a mission to provide the highest quality education to its students, especially those that have struggled in traditional high school settings. Since they were founded, they have served more than 130,000 students across the state.

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board of directors meeting minutes TIADA Conference | San Antonio, TX

compiled by Texas Dealer staff

As of its meeting on Sunday, July 24, TIADA took the following actions: President Phil Lathrop called the meeting to order at 12:13 p.m.

Minutes Of Last Meeting

Sens. Menendez and Lucio, Reps. Harless, Frullo and Springer, as well as TxDMV Executive Director Whitney Brewster and Comptroller Glenn Hegar. President Phil Lathrop reviewed the proposed 5-year strategic plan.

A motion was made to accept the minutes. Moved by Brent Rhodes, seconded by Kathrine Tolsch – PASSED

Old Business

Treasurer’s Report

A motion was made to accept the proposed FY17 budget. Moved by Dan Keetch, seconded by Wayne Meagher – PASSED A new motion was made to accept the 5-year strategic plan. Moved by Wayne Meagher, seconded by Juan Sabillon – PASSED A motion was made to adjourn the meeting. Moved by Brent Rhodes, seconded by Dan Keetch – PASSED Meeting adjourned at 3:43 p.m.

TIADA Executive Director presented the Treasurer’s Report in place of Trey Crouch. A motion was made to accept the report. Moved by Ryan Winkelmann, seconded by Greg Zak – PASSED

Executive Director’s Report

BOD discussed new member calls. Would like to get emails of new members so they can send an email before they call. Treasurer Trey Crouch presented FY16 budget update. Board of Directors were introduced to new staff member Michael Spurlin, Social & Communications Director. Treasurer Trey Crouch presented FY17 budget proposal. Jeff Martin reviewed the elected officials and regulators that will be in attendance at the conference, including

None

New Business

Respectfully submitted, Greg Zak, 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

Robert Blankenship Named 2016 Texas Quality Dealer of the Year by Michael Spurlin Texas Dealer Editor

“Join TIADA now. If you’re already a member, get engaged through annual conferences, Lobby Days, educational classes, etc. Join a NIADA 20 group today and grow your business understanding in unimaginable ways.” Robert Blankenship accepts the 2016 Texas Quality Dealer of the Year award.

obert Blankenship of Texas Auto Center opened his original location as a cash lot in 1995. In 1999 he began his transformation to the world of buy-here, pay-here. Since then he has grown to three locations with over 100 employees serving 5,000 active accounts. Robert attributes his success to many factors, including a strong foundation of TIADA peers and 20 group members, as well an intense focus on expenses; from debt to operational spending, he keeps a sharp eye on the bottom line. Robert’s business philosophy is also simple: His entire organization takes pride in supporting the community they serve, and providing transportation to those who have been excluded from traditional financing options.

TEXAS DEALER What does being named “Texas Quality

Dealer of the Year” mean to you? ROBERT BLANKENSHIP To be recognized by my peers and TIADA, across our great state of Texas, as a quality dealer is an extraordinary honor. I hold those who have won before me in the highest regard and look to them as a standard in our industry. This is an award that not only recognizes the recipient but all those who have October 2016

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Robert Blankenship, 2016 Texas Quality Dealer of the Year

worked with him or her to achieve their goals including family, extended family, associates, bankers and vendors.

TD When did you decide to get involved in TIADA and why? RB I joined TIADA in 1998 when I first learned about the association and the support and services they provide to BHPH dealers. In 2007, my good friend, Juan Sabillion encouraged me to become more active in the association by attending conferences, serving where needed and joining lobbying events. TD What dealers or individuals have been most influ-

ential to you in your career? RB I met the dealers that have been most influential to me through my 20 group. They include my good friends Jeff Baker, Shane Rhodes, Shawn Richardson and Juan Sabillion. Together, we share ideas, best practices, and discuss opportunities and challenges that we face.

TD In what ways has TIADA impacted you and your business? RB TIADA impacts us and our business in many ways. They offer valuable resources such as legislative, 19

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

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704-882-7100 ext. 7509 AcemotorAcceptAnce.com 20

Robert Blankenship with his wife Erika and daughter Haley.

legal and education services. They provide networking opportunities like meeting with other dealers, state regulators and legislators. They keep us informed of the laws that govern our industry and work to protect us. We utilize their website and Texas Dealer magazine to keep current on regulatory updates, compliance and industry news, as well as upcoming events. TIADA partners with us and all Texas dealers. We are very thankful to Jeff Martin, Danny Langfield and the wonderful TIADA team. TD How has community involvement played a role in your success? RB Community involvement plays an integral role in our success. It improves our attitudes and behaviors, boosts our morale, promotes teamwork and gets people to engage. We find fun ways to get involved as a family and an organization. For example, serving the community through Mobile Loaves and Fishes, supporting

local schools through donating to athletic booster clubs or contributing to scholarships, participating in athletic events that support local charities and, last but not least, investing our time and financial support in mission trips. It is through selfless acts of service that we connect with others and grow ourselves. TD Any additional comments or statements you would like to add about your award or career? RB First I’d like to thank my family, friends, all of our associates, vendors, Leedom and NIADA 20 groups as well as the entire staff at TIADA. Second, I would like encourage other dealers to become involved in TIADA and a 20 group. Join TIADA now. If you’re already a member, get engaged through annual conferences, Lobby Days, educational classes, etc. Join a NIADA 20 group today and grow your business understanding in unimaginable ways. T e x a s

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October 2016

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purchased. vehicle being the motor interest in NT(S ) a security NPA YME Due I give you Date ED DOW owe you, DEF ERR or in the future charge of owe you Amount a late debt I now I will pay any other it is due, ses in it and days after my promi ct and all within 15 payment Charge. on this contra ce sts, owe entire I all ve my of the Finan lt, security intere p this To secure d of part do not recei Security: defau (1)Kee writing. get a refun t nonpayment, ge: If you ises in paym ent. so, I can NO.: Late Char n abou $ all prom sched uled . If I do ds. STOCK put....... informatio % of the er to........ I owe early yment refun ment for deal........ the ........ and prepa pay all that refer to this docu Ask........ rce. ........ nt: I can uled date, I will ............... DATE: to enfo Prepayme l Information: e the sched cult........ REDITOR: diffi........ full befor are........ SELLER/C ises........ Additiona repayment in .$ D prom........ ER : red ................ ................ 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regulation matters Check, Please

n August 8 of this year, NIADA sent an urgent legislative alert email to all member dealers nationwide asking for help in opposing a rule proposal from the Consumer Financial Protection Bureau (CFPB), to wit: NIADA is once again fighting against the CFPB’s over-aggressive regulatory approach to the used car industry. The latest attempt is the Bureau’s proposed rule that would prohibit dealers and finance companies from using arbitration agreements that prevent consumers from participating in a class action lawsuit if a future dispute arises. The email went on to encourage dealers to submit comments to the CFPB in opposition to this rule, and provided contact information as well as a comments template. NIADA also submitted its own comments, found on the following pages. For those TIADA members who are careful readers of the Texas Dealer (or like us on Facebook, follow our blog, etc…), this rule action was not news. In fact, TIADA’s president at the time, Phil Lathrop, was invited to provide input on this very matter to the CFPB in person in Washington, D.C. in October of 2015, an adventure he chronicled in his December 2015 Officers’ Message column in this magazine. So, did the CFPB seek the input of Phil and his peers out of a burning desire to get the rule right, and fully understand the potential impact of its regulatory action on affected industries? Possibly. However, it is also worth noting that the federal Regulatory Flexibility Act actually requires some agencies, under certain conditions, to convene a panel of affected small business representatives and get their input. And this proposed arbitration rule action did indeed require such a Small Business Regulatory Enforcement Fairness Act panel to be convened. So there is that. Deploying one of the great bureaucratic acronyms of all time, our SBREFA panel (pronounced “CHEK-böks”) met for most of the day (I was also in attendance) and the small business owners there acquitted themselves admirably, in my opinion. The group (often led by Phil) was unanimous and

October 2016

T e x a s

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by Danny

Langfield

TIADA DEPUTY DIRECTOR

“Although the CFPB’s staff will take the next several months and review the comments submitted, it is highly unlikely the Bureau will change anything contained in the proposal. The Bureau has had ample opportunity to change its direction on arbitration and has refused to do so.” Shaun Petersen, NIADA attorney

vociferous in its denunciation of the proposal, emphasizing the fact that the rule would both harm consumers and be a godsend for predatory plaintiff ’s attorneys. Several panelists implored the agency to consider the fact that providers of consumer financial services come in all shapes and sizes: a mom and pop BHPH lot is a long way from the Toyota Motor Credit Corporation; and to urge the bureau to craft a rule that reflected those significant differences. On December 11, 2015, the CFPB released the 261-page final report summarizing the SBREFA panel’s input. For the next six months, the industry waited with bated 25

breath to see how the agency would incorporate the panel’s feedback into the proposed rule. On May 5, 2016, we announced on the TIADA blog that the rule had been officially proposed. To the chagrin of many observers, certainly including many panelists, it appeared that their concerns had been summarily disregarded. So, did the whole process feel a little bit like a checkbox? Phil Lathrop put it this way: “The Bureau was required to receive public input, so we knew it could be a procedural matter on a near-decided issue. It was the best chance we had to attempt to turn the tide. We gave it our best shot. There were also many Small Business Administration staff there and we hoped there might be some influence to be gained with them as well.” Is this rule a done deal? Not officially, but according to NIADA attorney Shaun Petersen, the outlook is not great: “Although the CFPB’s staff will take the next several months and review the comments submitted, it is highly unlikely the Bureau will change anything contained in the proposal. The Bureau has had ample opportunity to change its direction on arbitration and has refused to do so.” Can anything be done? Maybe. As you read this, we are just returning from the NIADA Leadership Conference in D.C., where dealers from all across the country descended upon the Capitol to lobby their legislators on matters of importance to our industry. Among our top

Stay tuned for details on TIADA’s 2017 Lobby Day at the Capitol, where you can join us in making sure your industry’s voice is heard loud and clear in Austin. priorities: ginning up support for a current bill that includes provisions to curb the CFPB’s authority. Those provisions include: a limitation on the CFPB’s ability to regulate pre-dispute arbitration agreements; changing the bureau’s funding structure and replacing the single-director leadership with a five-person commission. While the fate of that legislation is far from certain, the warm and bi-partisan support we experienced in D.C. was certainly welcome. Stay tuned for details on TIADA’s 2017 Lobby Day at the Capitol, where you can join us in making sure your industry’s voice is heard loud and clear in Austin.

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October 2016

N A T I O N A L I N D E P E N D E N T A U T O M OBI L E D E A L E R S A S S O C I A T ION N A T I O N A L I N D E P E N D E N 2521 T ABROWN U T O BOULEVARD M OBI L E D E A L E R S A S S O C I A T ION N A T I O N A L I N D E P E N D E N T A U T O M OBI L E D E A L E R S A S S O C I A T ION ARLINGTON, TX 76006-5203 2521 BROWN BOULEVARD 2521 BROWN BOULEVARD ARLINGTON, TX ARLINGTON, TX 76006-5203 76006-5203 817.640.3838 / FAX 817.649.5866 WWW.NIADA.COM 817.640.3838 / FAX 817.649.5866 817.640.3838 / FAX 817.649.5866 WWW.NIADA.COM WWW.NIADA.COM

August 22,2016 2016 August 22, August 22, 2016 Submitted Electronically Via Regulations.gov

Submitted Electronically Via Regulations.gov

Jackson SubmittedMonica Electronically Via Regulations.gov Office of the Executive Secretary Monica Jackson Bureau of Consumer Financial Protection Office the Executive Secretary MonicaofJackson 1700 G Street, NW Bureau ofWashington, ConsumerD.C. Financial 20552 Protection Office of the Executive Secretary 1700 Street, NW Financial Protection BureauG of Consumer Re: 20552 Comments to Proposed Rule Governing Use of Arbitration Agreements Washington, D.C. 1700 G Street, NWDocket No. CFPB-2016-0020 or Regulatory Identification Number (RIN) 3170-AA51 Washington, D.C. 20552 Re: Comments Dear Ms. Jackson,to Proposed Rule Governing Use of Arbitration Agreements Docket No. CFPB-2016-0020 or Regulatory Identification Number (RIN) 3170-AA51 Re: Comments to Proposed Rule Governing Use of Arbitration Agreements The National Independent Automobile Dealers Association (NIADA) submits the following Docket No. CFPB-2016-0020 or Regulatory Identification Number (RIN) 3170-AA51 Dear Ms. comments Jackson,to the Consumer Financial Protection Bureau (CFPB or Bureau) regarding the Bureau’s proposed rule governing the use of mandatory pre-dispute arbitration agreements. This proposed

would prohibit covered providers of certain financial products from using mandatory preDear Ms. rule Jackson, The National Independent Automobile Association (NIADA) submits the following dispute arbitration agreements that contain classDealers action waivers. comments to the Consumer Financial Protection Bureau (CFPB or Bureau) regarding the Bureau’s The National Independent Automobile Dealers Association (NIADA) submits the following Additionally, the covered providers that utilize permissible arbitration arbitration agreements in individual proposed rule governing use of mandatory pre-dispute agreements. This commentsarbitration to the actions Consumer Financial Protection Bureau (CFPB orto Bureau) regarding the proposed Bureau’s would be required to submit certain arbitral records the CFPB. Those records rule would prohibit covered providers of certain financial products from using mandatory pre(A) the initial and any counterclaim; (B) the pre-disputeagreements. arbitration agreement proposed include: rule governing theclaim use form of mandatory pre-dispute arbitration This proposed dispute arbitration agreements that contain (C) class waivers. filedprohibit with the arbitrator administrator; theaction judgment or award, if any, issued the arbitrator rule would coveredorproviders of certain financial products from byusing mandatory preor arbitration administrator; and (D) if an arbitrator or arbitration administrator refuses to dispute arbitration agreements that contain class action waivers. administer or dismisses claim due tothat the provider's failure to pay arbitration required filingagreements or administrative Additionally, covered a providers utilize permissible in individual fees, any communication the provider receives from the arbitrator or an arbitration administrator arbitration actions would be required to submit certain arbitral records to the CFPB. Those records Additionally, related to suchcovered a refusal. providers that utilize permissible arbitration agreements in individual include: (A) the initial claim form and any counterclaim; (B) the pre-dispute arbitration agreement arbitration actions would be required to submit certain arbitral records to the CFPB. Those records filed with the arbitrator or administrator; (C) the rule, judgment or award,theif following any, issued by thein arbitrator the proposed NIADA comments include: (A) theAfter initialhaving claimreviewed form and any counterclaim; (B)offers the pre-dispute arbitration agreement opposition thereto. or arbitration administrator; and (D) (C) if an or award, arbitration to filed with the arbitrator or administrator; the arbitrator judgment or if any,administrator issued by therefuses arbitrator administer or dismisses a claim due to the provider's failure to pay required filing or administrative or arbitration administrator; and (D) if an arbitrator or arbitration administrator refuses to fees, any or communication the provider receives from failure the arbitrator or an arbitration administrator administer dismisses a claim due to the provider's to pay required filing or administrative Page | 1 related to such a refusal. fees, any communication the provider receives from the arbitrator or an arbitration administrator related to such a refusal. After having reviewed the proposed rule, NIADA offers the following comments in opposition thereto. After having reviewed the proposed rule, NIADA offers the following comments in opposition thereto.

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A. Introduction of NIADA NIADA is among the nation's largest trade associations representing the used motor vehicle industry comprised of more than 38,000 licensed used car dealers. NIADA's members include independent automobile dealers, unaffiliated with any franchise, that sell used vehicles wholesale, retail, and buy here pay here (BHPH). Since 1946, NIADA has represented the voice and interests of used car dealers at the federal level in Washington, D.C. Coupled with its state association network across the country, NIADA’s grass-roots framework provides a dual layer of advocacy unmatched in the used motor vehicle industry. For 70 years, NIADA has engineered programs and leveraged technology to fulfill its mission to advance, educate, and promote the independent, used car dealer. NIADA stands tall for its members who subscribe to a strict Code of Ethics of duty, honor and integrity and who believe in the advancement of small business in support of the free-market system. NIADA members embody the spirit of American entrepreneurism, and as a result NIADA is dedicated to ensuring the success of small businesses. More than 40 percent of NIADA’s dealer members have been in business for more than 20 years, and almost 50 percent have five or fewer employees. They are, by every criteria of the Small Business Administration, small businesses looking to survive in the best of times and the worst of times. Recognizing that NIADA membership is largely comprised small businesses, and perhaps acknowledging these businesses would be impacted by its rulemaking, the Bureau invited NIADA to recommend dealers that could serve on the statutorily mandated Small Business Regulatory Enforcement Fairness Act (SBREFA) panel that was convened to consider the impact of the proposals. One of NIADA’s members was ultimately selected to serve on the SBREFA panel and shared the used motor vehicle dealer industry’s concerns with the proposals, which are set forth in detail below. Ultimately, the Bureau dismissed these qualms and issued the proposed rule that is the subject of this RIN. B. The Bureau lacks authority to implement the proposed rule The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) authorized the CFPB to conduct a study on the use of mandatory pre-dispute arbitration agreements. After concluding the study, Dodd-Frank enables the Bureau to promulgate a rule governing the use of those arbitration agreements if and only if the Bureau finds that the proposal is “in the public interest and for the protection of consumers.” The enabling statute also requires that the findings in a proposed rule must be consistent with the Bureau’s arbitration study.

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For all of the reasons set forth herein, the CFPB’s proposal to ban the use of arbitration agreements with class action waivers is neither in the public interest nor for the benefit of consumers. Likewise, the suggested ban is not consistent with the Bureau’s arbitration study. The data contained in the study provides no justification that class action litigation is a better alternative for dispute resolution than arbitration. In fact, the evidence in the study supports the contrary – arbitration is a better alternative for consumers and companies to resolve their disputes. C. Arbitration is a better process for dispute resolution than class action lawsuits Arbitration is a faster, less expensive, and more effective means of resolving consumer disputes than class action lawsuits, points that are supported by the Bureau’s arbitration study. The data in the CFPB’s study showed that the average arbitration lasted 2-7 months, while the average class action litigation takes upwards of 2 years to complete. If the Bureau moves forward with the proposed rule, the likelihood is that class action litigation will take even longer. Court dockets across the country are log-jammed with civil lawsuits. Those courts are having difficulty moving civil cases in a timely manner. By removing legitimate alternative dispute resolution avenues for consumers and providers to resolve their differences, those disputes will be forced into the court system. A larger docket size will not bring about speedier relief to either party – a detriment to both consumer and business interests. Moreover, the costs for the consumer to pursue litigation are significantly more when compared to arbitration. Arbitration forums often cap the consumer’s costs to a portion of the filing fee. The company is then required to pay the balance. The average arbitration fee to the consumer is $200, half of what it costs to file a lawsuit in the federal courts. The flexibility that comes in arbitration forums is also an important benefit to consumers. Litigation requires the consumer to attend court proceedings in front of judge subject to the rules of evidence and civil procedure. Arbitration forums often provide a much more informal process for dispute resolution including telephone proceedings and submission of the matter on paper. Forcing disputes into class action litigation brings with it additional procedural hurdles that must be followed and eliminates the flexibility so many consumers and businesses desire. D. Consumers recover substantially more in arbitration as opposed to class action litigation Consumers that recover monetary damages in a dispute almost always receive more in arbitration than they would in a class action lawsuit. This is especially true in large dollar disputes such as those automobile dealers often face. This conclusion is supported by evidence in the Bureau’s study. In the arbitration cases that the Bureau analyzed as part of the study, consumers received an average recovery of 57 cents on the dollar in arbitration or an average recovery of over $5,000. The average recovery in the individual federal court cases the Bureau considered was virtually identical – approximately $5,000. However, consumers that received a cash award as part of the class action

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resolutions that the Bureau reviewed only received a paltry sum of less than $33. Yet, that does not tell whole story. As the Bureau’s study clearly shows, almost 90% of the members of those class settlements got nothing. In spite of the measly sum consumers got in these class actions, the CFPB’s study showed a definitive winner in those settlements – class action attorneys. While slightly more than 10% of class members got roughly $33, the class action attorneys hauled in nearly a half a billion dollars in attorney’s fees. It is evident that the primary beneficiary to this proposal is not consumers, but the trial lawyers pursuing class action claims whether legitimate or not. E. The disclosure of arbitration agreements varies across industries Whether in the proposed rule or in the study used to support the proposal, the CFPB is treating arbitration agreements the same regardless of the consumer financial products offered or the size of the company offering them. The CFPB makes no distinction between the largest bank and the smallest auto finance company. It does not matter whether a multimillion-dollar bank is offering a credit card through an online application or a buy here pay here dealer is selling a vehicle to a consumer face to face. In its attempt at homogeneousness, the CFPB seems to be making assumptions that the disclosure of arbitration agreements is the same for each of those entities in very different financial products. It appears that the CFPB is operating from the premise that arbitration agreements in automotive financing are always buried in the fine print on the back of a lengthy contract that consumers cannot easily find. Generally, automobile dealers that elect to use an arbitration agreement in their sales and financing process provide the consumers with a separate document containing nothing but the terms of the arbitration agreement. The font is large enough to be readable and understandable. This separate document includes a clear and conspicuous disclosure that the consumer is giving up certain rights (such as the right to participate in a class action) and has a signature line the consumer is required to sign specifically agreeing to those terms. By providing a separate arbitration document, dealers are being open and transparent of what the consumer is agreeing when signing the arbitration agreement. Of course, the consumer always has the option to walk away from the transaction at any time. Presumably, the CFPB exists to ensure transparency. Rather than drive arbitration out of the marketplace, which may ultimately be the result of this proposed rule, perhaps the CFPB should consider a rule that recognizes the benefits of arbitration but ensures that a transparent process is in place for the consumer when agreeing to pre-dispute arbitration.

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The costs of compliance will adversely impact both consumers and small businesses

If the proposed rule moves forward, businesses will face significant financial burdens if compelled to defend class actions, particularly meritless suits. The CFPB has stated that it anticipates an increase of more than 6,000 class action lawsuits to be filed over the next 5 years. Furthermore, the CFPB has estimated that the costs in defending those lawsuits would be over $5 billion dollars. Ultimately, businesses will have no choice but to pass those costs on to consumers. As a result, the price of motor vehicles will increase. The availability and cost of credit will diminish as lenders and lessors will be compelled to reconsider their ability to lend given the increased costs involved in legal defense. In the case of customers of buy here pay here dealers or subprime and deep subprime lenders who may be credit challenged, the increased costs of a motor vehicle and the associated costs of credit associated with the financing of that vehicle may ultimately prove to be too much for them. Where does that customer then turn for financing to purchase a motor vehicle? G.

The CFPB lacks jurisdiction to impose this rule over certain independent dealers

Section 1029 of Dodd-Frank provides an exemption to the Bureauâ&#x20AC;&#x2122;s rulemaking, supervisory and enforcement authority for those automobile dealers that are predominantly in engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both when those dealers when those dealers are routinely assigning retail installment contracts and retail leases to unaffiliated third parties. In addition to franchised automobile dealers, there are many independent dealers that are covered by this exemption. Simply stated, the Bureau cannot oversee the activities of these dealers. Notwithstanding this clear statutory exemption, the CFPBâ&#x20AC;&#x2122;s proposed rule oversteps its statutory authority and is regulates dealers over which it cannot. Under the proposed rule, finance companies acquiring retail installment contracts and retail leases from unaffiliated third party dealers will be required to ensure arbitration agreements in that paper contains the required notice to the consumer about participating in class action suits. The proposed rule contains a procedure for an amended notice if the required language is not in the agreement at time it is acquired by the finance company. Because of the costs finance companies would incur in sending an amended notice, finance companies are likely to require all retail installment contracts and retail leases contain the required notice language at the time of the retail sale or lease. If the retail installment contract and retail leases contain this language, the dealers will almost certainly be subject to the class action provisions under state contract law because they are contracting party with the consumer. Thus, the CFPBâ&#x20AC;&#x2122;s proposed rule is subjecting otherwise exempt dealers to a rulemaking process and outcome despite not having authority to do so.

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The CFPB should conduct a more comprehensive arbitration study

NIADA agrees with those that have commented previously on the flaws in the CFPB’s study. The study failed to consider the consumers’ experiences in going through the arbitration process and class action litigation both. Did the consumers prefer the arbitration process over the class action litigation? This simple question was not answered because it was not even posed. How can the CFPB impose a rule prohibiting the use of arbitration agreements with class action waivers if the consumers are more satisfied with the speed, efficiency, and final judgment in arbitration than in class action lawsuits? Additional empirical evidence should be gathered on that issue alone. Equally troubling to NIADA is the narrow focus of the financial products actually examined in the study. The report contains virtually no information on automotive financing and what is contained in the report appears to misconstrue the financial product most typically involved in automotive financing as a loan as opposed to a retail installment sales contract. This lack of understanding of the product make the study’s findings as it pertains to the automotive finance markets murky at best. In addition, the CFPB should study the bearing of the CFPB’s existence and activities have had on consumer disputes. The Bureau’s study failed to consider the impact of enforcement actions, supervision, substantive regulation, or complaints filed with the Bureau have had on dispute resolution outcomes. Further study may reveal that the Bureau’s presence in and of itself is an effective deterrent against misconduct and yields prompt, effective resolution of disputes. If that is the case, then the justification for the proposed rule – class action lawsuits serving as a deterrent against bad corporate behavior – is flawed, and the proposed rule is a solution in search of a problem. NIADA encourages the Bureau to be much more comprehensive in its study before proposing such drastic changes to the financial marketplace that ultimately hurt the very consumers the Bureau was created to protect. I.

The record reporting requirements will put business at additional risk of frivolous suits

As troubling as the ban on class action waivers is, NIADA is equally troubled with the provisions of the proposed rule requiring companies to provide certain arbitral records to the Bureau when participating in an individual arbitration action. The CFPB has stated its intent to be the central arbitration repository and publisher of the information it gathers about these individual actions. This plan is wrought with concerns chief among them being privacy related concerns. NIADA is concerned that the publication of arbitration data will put consumers in the untenable position of having their confidential, personal information disclosed without their consent. Furthermore, NIADA fears the publication of this information can put the reputations of legitimate, law abiding businesses at risk simply because they were a party to a dispute. This

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concern is heightened in light of the green-light the Bureau is giving to class action attorneys to run concern is heightened light ofshould the green-light Bureau is and giving to class action to the courthouse. TheinBureau not compeltheproduction publication of theseattorneys records.to run to the courthouse. TheinBureau should not compeltheproduction and publication of theseattorneys records.to run concern is heightened light of the green-light Bureau is giving to class action concern is heightened in light of the green-light the Bureau is giving to class action attorneys to run concern is heightened in light of the green-light the Bureau is giving to class action attorneys to run to the courthouse. The Bureau should not compel production and publication of these records. concern is heightened in light of the green-light the Bureau is giving to class action attorneys to run III. Conclusion to the courthouse. The Bureau should not compel production and publication of these records. concern is heightened in light of the green-light the Bureau is giving to class action attorneys to run III. Conclusion concern is heightened in light of the green-light the Bureau is giving to class action attorneys to run to the courthouse. The Bureau should not compel production and publication of these records. to the courthouse. The Bureau should not compel production and publication of these records. to the courthouse. The Bureau should not compel production and publication of these records. to the courthouse. The Bureau should not compel production and publication of these records. III. Conclusion The Bureau’s proposed rule to ban class action waivers in mandatory pre-dispute arbitration III. Conclusion The Bureau’s proposed to ban waivers mandatory small pre-dispute arbitration III. Conclusion III. Conclusion agreements is a poor policy rule choice that class will action ultimately hurt inconsumers, businesses, and III. Conclusion agreements is a poor policy rule choice that class will action ultimately hurt inconsumers, small businesses, and III. Conclusion The Bureau’s proposed to ban waivers mandatory pre-dispute arbitration benefit only the trial lawyers. The cost and availability of financial goods and services will rise The Bureau’s proposed rule to ban class action waivers in mandatory pre-dispute arbitration benefit only the trial lawyers. The cost and availability of financial goods and services will rise The Bureau’s proposed rule to ban class action waivers in mandatory pre-dispute arbitration agreements is a poor policy choice that will ultimately hurt consumers, small businesses, and The Bureau’s proposed rule to ban class waivers in mandatory pre-dispute adversely impacting NIADA member customers –action the very consumers the Bureau is businesses, out to arbitration serve.and agreements is a poor policy choice that will ultimately hurt consumers, small The Bureau’s proposed rule to ban class action waivers in mandatory pre-dispute arbitration adversely impacting NIADA customers –action the very consumers the Bureau isservices out to arbitration serve. The Bureau’s proposed rule tocost ban class waivers inconsumers, mandatory pre-dispute agreements istheaa trial poor policymember choice thatand willavailability ultimately hurt consumers, small businesses, and benefit only lawyers. The of financial goods and will rise agreements is poor policy choice that will ultimately hurt small businesses, and agreements is a poor policy choice that will ultimately hurt consumers, small businesses, and benefit only the trial lawyers. The cost and availability of financial goods and services will rise agreements is a poor policy choice that will ultimately hurt consumers, small businesses, and benefit only the trial lawyers. The cost and availability of financial goods and services will rise adversely impacting NIADA member customers – the very consumers the Bureau is out to serve. benefit only the trial lawyers. The cost and availability of financial goods and services will rise Given the overwhelming evidence proving the value of arbitration as a faster, cheaper, and adversely impacting NIADA member customers –– the the very consumers the Bureau is out to serve. benefit only the trial lawyers. The cost and availability of financial goods and services will rise Given the overwhelming evidence proving value of arbitration as a faster, cheaper, and benefit only the trial lawyers. The cost and availability of financial goods and services will rise adversely impacting NIADA member customers the very consumers the Bureau is out to serve. adversely impacting NIADA member customersthe–– the the veryshould consumers the Bureau Bureau is out out to to serve. serve. more effective meansNIADA of dispute resolution, CFPB withdraw the proposed rule and adversely impacting member customers very consumers the is more effective means of dispute resolution, the CFPB should withdraw the proposed rule and adversely impacting NIADA member customers – the very consumers the Bureau is out to serve. Given evidence proving the value of arbitration as aa faster, cheaper, and reexamine the the use overwhelming of arbitration from all perspectives. The CFPB should more fully understand Given the overwhelming evidence proving the value of arbitration as faster, cheaper, and reexamine the use of arbitration from all perspectives. The CFPB should more fully understand Given the overwhelming evidence proving the value of arbitration as a faster, cheaper, and more effective means of dispute the CFPB should withdraw the proposed Given the overwhelming evidence proving the value of arbitration as aa faster, cheaper, and include in its study a discussion of resolution, how pre-dispute arbitration agreements are disclosed inrule various more effective means of dispute resolution, the CFPB should withdraw the proposed rule Given the overwhelming evidence proving the value of arbitration as faster, cheaper, and include in its study a discussion of how pre-dispute arbitration agreements are disclosed in various Given the overwhelming evidence proving the value of arbitration as a faster, cheaper, and more effective means of dispute resolution, the CFPB should withdraw the proposed rule reexamine the use of arbitration from all perspectives. The CFPB should more fully understand and more effective means of dispute resolution, the CFPB should withdraw the proposed rule consumer financial products and consider the positive experiences of consumers that have been more effective means of dispute resolution, the CFPB should withdraw the proposed rule reexamine the use of arbitration from all perspectives. The CFPB should more fully understand and more effective means of dispute resolution, the CFPB should withdraw the proposed rule consumer financial products and consider the positive experiences of consumers that have been reexamine the use of arbitration from all perspectives. The CFPB should more fully understand and include in its study aa arbitration discussion of pre-dispute arbitration agreements are disclosed various reexamine use of all perspectives. The CFPB should fully understand and through thethe arbitration process. from In how order to effectively do so, the Bureaumore will have to layin any bias include in its study discussion of how pre-dispute arbitration agreements are disclosed in various reexamine the use of arbitration from all perspectives. The CFPB should more fully understand and through theobjectively process. In order totheeffectively do so, the Bureau will to lay bias reexamine the use of arbitration from all perspectives. The CFPB should more fully understand and includeandin in itsarbitration study a analyze discussion of how pre-dispute arbitration agreements are have disclosed inany various consumer financial products and consider positive experiences of consumers that have been include its study a discussion of how pre-dispute arbitration agreements are disclosed in various aside the data. include in its study a discussion of how pre-dispute arbitration agreements are disclosed in various consumer financial products and consider the positive experiences of consumers that have been aside and objectively analyze the data. include in itsarbitration study products a discussion of how pre-dispute arbitration agreements are have disclosed inany various consumer financial and consider theeffectively positive experiences of consumers that have been through the process. In order to do so, the Bureau will to lay bias consumer financial products and positive experiences of consumers have through the arbitration process. Inconsider order to tothe effectively do so, the the Bureau Bureau will have have that to lay lay anybeen bias consumer financial products and consider the positive experiences of consumers that have been consumer financial products and consider the positive experiences of consumers that have been through the arbitration process. In order effectively do so, will to any bias aside and objectively analyze the data. through the arbitration process. In order effectively do so, the Bureau to lay any bias NIADA encourages the CFPB toto engage interested parties fromwill thehave automotive finance aside and objectively analyze the data. through the arbitration process. In order to effectively do so, the Bureau will have to lay any bias NIADA encourages the CFPB to engage interested parties from the automotive finance through the arbitration process. In order to effectively do so, the Bureau will have to lay any bias aside and objectively analyze the data. aside and objectively analyze the data. industry and other financial sectors in substantive discussions on meaningful solutions addressing aside and objectively analyze the data. aside and objectively analyze the data. industry and other financial sectors in substantive discussions onwhile meaningful solutions NIADA encourages CFPB to engage interested parties from the automotive finance the CFPB’s concerns with the pre-dispute arbitration agreements recognizing the addressing legitimate NIADA encourages the CFPB to engage interested parties from the automotive finance the CFPB’s concerns with pre-dispute arbitration agreements while recognizing the legitimate NIADA encourages the CFPB to engage interested parties from the automotive finance industry and other financial sectors in substantive discussions on meaningful solutions addressing NIADA encourages the CFPB to engage interested parties from the automotive finance benefits for both consumers and businesses. NIADA stands ready to engage in and assist with NIADA encourages the CFPB to engage interested parties from the automotive finance industry and other financial sectors in substantive discussions on meaningful meaningful solutions addressing benefits for both consumers and businesses. NIADA stands ready to engage in and assist with NIADA encourages the CFPB to engage interested parties from the automotive finance industry and other financial sectors in substantive discussions on solutions addressing the CFPB’s concerns with pre-dispute arbitration agreements while recognizing the legitimate industry and other financial sectors in substantive discussions on meaningful solutions addressing those discussions. the CFPB’s concerns with pre-dispute arbitrationdiscussions agreementson while recognizing the addressing legitimate industry and other financial sectors in substantive meaningful solutions those discussions. industry and other financial sectors in substantive discussions on meaningful solutions addressing the CFPB’s concerns with pre-dispute arbitration agreements while recognizing the legitimate benefits for both consumers and businesses.arbitration NIADAagreements stands ready to engage in and assist with the CFPB’s concerns with pre-dispute while recognizing the legitimate benefits for both both consumers and businesses.arbitration NIADAagreements stands ready ready to engage engage in and and assist with the CFPB’s concerns with pre-dispute while recognizing the legitimate the CFPB’s concerns with pre-dispute arbitration agreements while recognizing the legitimate benefits for consumers and businesses. NIADA stands to in assist with those discussions. benefits for both and businesses. NIADA stands ready to engage in and assist with Thank you consumers for your acceptance and review of these comments. benefits for both consumers and businesses. NIADA stands ready to engage in and assist with those discussions. benefits for both and businesses. NIADA stands ready to engage in and assist with Thank you consumers for your acceptance and review of these comments. those discussions. those discussions. those discussions. those discussions. Thank you for your acceptance and review of these comments. Thank you for your acceptance and review of these comments. Thank you for your acceptance and review of these comments. Thank you for your acceptance and review of these comments. Sincerely, Thank you for your acceptance and review of these Sincerely, Thank you for your acceptance and review of these comments. comments. Sincerely, Sincerely, Sincerely, Sincerely, Sincerely, Sincerely, Senior Vice President Senior Vice President Legal and Government Legal and Government Senior Vice President Senior Vice President Senior Vice President Legal and Government Senior Vice President Senior Vice President Legal and Government Senior Vice President Legal and Government Legal and Government Legal and Government Legal and Government

Affairs Affairs Affairs Affairs Affairs Affairs Affairs Affairs

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|7 |7 || 77 || 77 || 77

feature Win the Zero Moment of Truth by Steve Santospago

re the cars out front aligned perfectly?

Are the ones parked in your showroom gleaming, detailed and could pass for Bio-tech cleanrooms? Is the coffee in your waiting areas and customer lounges fresh? All these efforts on your part may be useless if your online presence, visibility and marketing messages are not as clean, shining and polished. Some dealers today worry endlessly about how the store looks, yet they fail to pay as close attention to their online presence. Not too long ago how things looked did matter more. The phone “up” into your departments was king and important to sales. The physical appearance of the facility and how your people engaged with a client at the store level were the first lasting impressions made on a prospective customer. However, with the advent of the internet and the infusion of online search engines, things have changed radically. Here is some background and reasoning as to why what “was” is no longer the case. Let’s look at this from a Consumer Scientist’s standpoint. Ex Proctor and Gamble CEO A.G. Lafley’s “two moments of truth” concept simplified what had been

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thought of as complex consumer transactions. There are PhD level brains out there that would complicate this process to validate their theories but, simply put, there were two moments that were pivotal to a consumer’s buying decision. The first moment occurs when a product is seen on the shelf. Its packaging imparts impulses on the consumer brain. Color, logo, etc. create impulse. The second

Based on Google’s research, people checked 10.4 sources of information to make a decision in 2011, an increase from 5.3 sources in 2010. In 2016 those numbers have doubled. 35

moment is characterized by what happened when a prospect experienced the product. Is the sizzle backed up by the experience? Those were the instances when consumer opinion could be forged, influenced and changed. There are many things going on in between but, if you won at those two fronts, you stood a much greater chance of winning a long term customer. As stated earlier, Google and the development of e-commerce related online processes changed all that. Now there is a third moment which comes much sooner. This new moment has been termed the Zero Moment Of Truth or ZMOT for short and it is all about the emerging dynamic of richly available information, digital advertising, video formatting, consumer review feedback, expression and opinion. Retailers and service providers now have the ability to entice consumers anywhere, on any type of device. Consumers are now able to make choices long before experiencing the brand or your dealership for that matter, at any level of physical contact. Coined in 2011 by Google’s Jim Lecinski, Director of U.S. Sales and Service, the ZMOT concept explains how consumers can now analyze their options prior to even venturing onto

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your web site. These general search results and what is seen and, moreover, what is experienced figure hugely into this because they immediately establish where your dealership sits in the hierarchy of credibility within the market. A Google Shoppers Sciences Study showed that this moment can happen within the mind of the automotive shopper as much as six months prior to the actual purchase and instantly once a mishap that requires service occurs. As consumer digital mobility increases, creating a strong digital presence is not limited to car sales, but also applies to the selection of service providers as well. Based on Google’s research, people checked 10.4 sources of information to make a decision in 2011, an increase from 5.3 sources in 2010. In 2016 those numbers have doubled. Concentrating on what online shoppers are seeing, what they are experiencing and where they are viewing is key to winning the battle for available consumers. Engaging in a mindful “digital” centric advertising mentality combined with email and direct mail efforts will allow shoppers and the pool of potential customers to make a clearer choice. Bottom line: making stronger connections with more potential customers will drive more of them to your web site and into your business. It’s proven and it’s true — make the Zero Moment Of Truth work for you.

of it has only been spoken about with the front end of dealerships. But it is even more important to concentrate on the back end as we travel farther into 2016 and sales figures start to level off. Executing a strategic marketing approach that combines attraction, direction, persuasion and influential messaging will allow you to feel and know that you are doing all that can be done to create revenue. And at

the end of the day, that’s what it is all about. Steve is a 30 year industry veteran who has worked as an owner, consultant and advisor to some of the most successful dealerships in the country. He is now employed by G.S. Marketing, Inc. where he offers best of breed automotive specific marketing solutions. He can be contacted at SSantospago@gsmarketing.com.

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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.

TIADA texas independent automobile dealers association

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, Legal Consultation Service and much more. Register for all upcoming TIADA events online at the Calendar of Events; access our online membership application; find contact information for all our Local Chapters, and find many additional resources at our Knowledge Base.

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov

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

Texas Comptroller

800.252.1382 www.window.state.tx.us

NIADA

800.682.3837 www.niada.com

REPOSSESSIONS

American Recovery Association 972.755.4755 www.repo.org or contact TIADA state office

FORMS Burrell Printing

800.252.9154 www.burrellprinting.com

October 2016

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TIADA Membership Application

2016

Business Name: ____________________________________________ Select one:

Dealer Member

TIADA texas independent automobile dealers association

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________

2016 TIADA Membership Dues:

City: _________________________________________ State: _______

Join Date:

Dues:

Zip: __________________ County: _____________________________

Jan. / Feb. / Mar.

$425

Apr. / May / Jun.

$320

Jul. / Aug. / Sep.

$215

Oct. / Nov. / Dec.

$425

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

(includes all of 2017) (all dues include NIADA membership)

PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Sec.Code: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Expiration Date: ____________ Monthly Payments - $35.42 per month Via Credit Card (Please enter card information above. Authorization Agreement required - contact state office) Via Bank Draft (Authorization Agreement & voided check required - contact state office)

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

www.txiada.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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GARAGE LIABILITY WAYMER & ASSOCIATES

TIADA texas independent automobile dealers association

(Black & White with gray gradient)

TIADA texas independent automobile dealers association

1-800-447-5152 1-EPI_TIADA 0816.pdf

8/10/16

Proud Member for over 20 years

4:43 PM

CMY

October 2016

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2016 TIADA VIP Auction Card Directory ABILENE

CORPUS CHRISTI

IAA*

Alliance Auto Auction Abliene

IAA*

6657 US Highway 80 West Abilene, TX 79605 325.698.4391, Fax 325.691.0263 General Manager: Jimmy Compton Friday, 10:00 a.m.

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

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

www.allianceautoauction.com

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.

AUSTIN ADESA Austin

www.adesa.com

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

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

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

IAA*

www.iaai.com

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

Metro Austin Auto Auction www.metroautoauction.com

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

BELTON Belton Auto Auction New! www.beltonautoauction.com

212 E Loop 121, Belton, TX 76513 254.899.2886, Fax 254.613.4582 General Manager: Joe Lavigne Thursday, 10:00 a.m.

* VIP card accepted for sell fees only 44

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

www.iaai.com

Corpus Christi Auto Auction New!

(formerly known as Sparkling City AA Corpus Christi) www.CorpusChristiAutoAuction.com

2149 IH69 Access Rd Robstown, TX 78380 361.767.4100, Fax 361.767.9840 General Manager: Wade Walker Friday, 10:00 a.m.

DALLAS / FT.WORTH METROPLEX ADESA Dallas

www.adesa.com

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

Alliance Auto Auction Dallas www.allianceautoauction.com

9426 Lakefield Blvd. Dallas, TX 75220 214.646.3136, Fax 469.828.8225 General Manager: Christopher Dean Wednesday, 1:30 p.m.

America Can! Cars for Kids www.carsforkids.com

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

America’s AA Dallas

www.americasautoauction.com

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

IAA*

www.iaai.com

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

www.iaai.com

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.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.

Rockwall Auto Auction New! www.rockwallautoauction.com

1810 I-30 Frontage Rd. Rockwall, TX 75087 972.771.9919, Fax 972.722.4827 General Manager: Frank Post Tuesday, 7:00 p.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 Wednesday, 9:30 AM In-op Video Sale / 10:00 AM Standard Sale.

IAA*

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. T e x a s

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October 2016

IAA*

SAN ANTONIO

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

ADESA San Antonio

www.iaai.com

IAA*

www.iaai.com

Manheim El Paso

www.manheim.com

485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645 General Manager: Brian Walker Thursday, 10:00 a.m.

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

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

IAA*

www.iaai.com

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

HOUSTON

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 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.

www.adesa.com

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

America’s AA Houston New!

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

IAA*

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 New!

(formerly known as Sparkling City AA San Antonio) www.SanAntonioAutoAuction.com

LONGVIEW

13510 Toepperwein Rd San Antonio, TX 78233 210.298.5477, Fax 210.298.5484 General Manager: Brandon Walston Tuesday, 10:00 a.m.; Thursday, 1:30 p.m.

Alliance Auto Auction Longview

TYLER

www.allianceautoauction.com

ADESA Houston

www.adesa.com

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

IAA*

www.iaai.com

Greater Tyler Auto Auction New! www.greatertyleraa.com

11654 Hwy. 64 W, Tyler, TX 75704 903.597.2800, Fax 903.597.3848 General Manager: Wayne Cook Tuesday, 5:00 p.m.

WACO

1826 Almeda Genoa Rd., Houston, TX 77047 281.819.3600, Fax: 281.819.3601 General Manager: Rob Frazier Thursday, 2:00 p.m.

5577 Highway 80 East Longview, TX 75605 903.553.9248, Fax 903.553.0210 General Manager: Robert Dunning Thursday, 9:00 a.m.

America’s AA North Houston

LUBBOCK

15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 General Manager: James Barron Friday, 10:00 a.m.

1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842 General Manager: Buddy Cheney Monday, 6:30 p.m.

IAA*

Heart of Texas Auto Auction

www.americasautoauction.com

Big Texas Auction of Houston New! www.bigtxauctions.com

2000 Cavalcade St. Houston, TX 77009 832.204.7500, Fax 832.204.7499 General Manager: Joe Lavigne Friday, 10:00 a.m. www.houstonautoauction.com

6767 North Freeway, Houston, TX 77076 713.644.5566, Fax 713.644.0889 President: Tim Bowers Tuesday, 1:00 p.m. T e x a s

5311 N. CR 2000 Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 General Manager: Lori Davee Tuesday, 9:30 a.m.

D e a l e r

www.allianceautoauction.com

www.heartoftexasautoauction.com

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

MIDLAND / ODESSA

OKLAHOMA CITY, OK

IAA*

Dealer’s Auto Auction of OKC, Inc.

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

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

www.iaai.com

Houston Auto Auction

October 2016

www.iaai.com

Alliance Auto Auction Waco

www.daaokc.com

behind the wheel

Martin

The 80 / 20 Rule & Gardening

he day after an election is like looking at a garden the day before you plant the seeds: nothing but fresh, fertile soil. Gardens take time, and so does the political process. In one month the elections will be over, then what? No more political ads, no more campaign promises and no more campaign spin and dare I say, no one will miss any of that. But what about us? What about our profession? What do you do after you cast your vote? Most of you will go back into your daily routine, sit back and take whatever others do for you. If this is you, let’s face it: you make up the 80%. TIADA leaders, including state officers, chapter leaders and active members know you can’t plant seeds one day and pick fruit the next. They have worked hard over the past year to get to know many legislators in their respective areas. They sat down with numerous potential policy makers across the state and discussed the association’s legislative priorities and interests. Our local chapters did their part as well, inviting local candidates to their monthly meetings in an effort to help them get to know our business a little better. Our political action committee, INDEPAC, has also been very active. INDEPAC has developed an aggressive campaign to raise more money than we ever have so we will be able to contribute more dollars to candidates who support the independent automobile dealers of Texas.

by Jeff

TIADA EXECUTIVE DIRECTOR

This is the 20% — The members who are constantly planting the seeds, watering, weeding and fertilizing the garden and doing the things that make associations effective so we can improve the industry. We measure the number of members who help us grow our political garden and the numbers aren’t good. Less than 10% of you have contributed to INDEPAC, met with your legislator, or attended a Lobby Day. If you are in the 10%, thank you, I will see you on January 31st and you can stop reading now. For the rest of you ninety percenters, let’s be frank. You and I both know you benefit from all the time, energy and money the other dealers are contributing. Change that today and do your part — commit to watering the garden once by making a $100 INDEPAC contribution at www.txiada.org — click on Resources, Advocacy and then Political Action Committee. It’s very easy to make your contribution online. If you really want to help, come plant some seeds in January and join us for Lobby Day in Austin January 31st so we can personally introduce you to your legislator. Registration information is coming soon. This is a great opportunity to come meet your legislator and help TIADA lobby for your industry and your interests. With your help we can reap some positive changes for 2017, and the fruits of your labor will taste even sweeter.

TIADA leaders, including state officers, chapter leaders and active members know you can’t plant seeds one day and pick fruit the next. 46

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October 2016

NOT ALL PROGRAMS ARE CREATED EQUAL Debt Cancellation Coverage Voluntary Debt Cancellation Coverage (DCC) is an alternative to requiring Comprehensive and Collision Insurance.

Benefits NEW PROFIT CENTER REDUCES EXPENSES

DCC provides debt forgiveness in the event of a Total Loss and is offered at the point of sale.

COLLATERAL PROTECTED

See what our clients are saying:

INCREASED CASH IN DEAL

“Our Debt Cancellation Program, serviced through AVP, was one of the best financial decisions our company has ever made in its 21 year history.” Michael Brill, President B&B Automotive Inc.

INCREASED CSI FINANCED WITH CONTRACT FORMS REVIEWED BY OCCC

AVP DEALERS MAKE MORE MONEY PERIOD! www.avpadmin.com

913.396.5480

*Substantial Discounts for TIADA Members

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

PRSRT STD

U.S. POSTAGE

PA I D

JEFFERSON CITY, MO

PERMIT NO. 210