Texas Dealer, April 2015 by Texas Independent Auto Dealers Association

Bill Targets Texas Used Car Dealers

In This Issue: – Michael W. Dunagan on Dropped Liens – “Single Sticker” Meets the Real World – 3 Questions Always Asked on ABC’s Shark Tank

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2015 TIADA Board of Directors President Brent Rhodes/Fiesta Motors 5150 Industrial Way Drive Buda, TX 78610 Office: 512.312.2201 Email: brent@fiestamotors.net chairman of the board Michael Thomasson/Mike Carlson Motor Company 264 Exchange St. Burleson, TX 76028 Office: 817.366.9578 Email: mthomasson@mcmcauto.com Secretary Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd. Dallas, TX 75229 Office: 214.352.9282 Email: cicoauto@verizon.net Treasurer Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net Vice President, West Texas (Region 1) James Hobson/H-Town Motors 3714 Dyer Street El Paso TX 79930 Office: 915.564.9797 Email: htownmotors@sbcglobal.net Vice President, Fort Worth (Region 2) Tommy Gregory/Abilene Used Cars Sales Inc. 497 E.S. 11th Abilene, TX 79602 Office: 325.676.8000 Email: aucsinc@sbcglobal.net Vice President, Dallas (Region 3) Kevin Mims/VP Auto Sales 2921 S. Garland Ave. Garland, TX 75041 Office: 972.864.1300 Email: kevinm@vpautosales.com Vice President, Houston (Region 4) Juan Sabillon/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: brentfordct@yahoo.com

Vo l u m e X V / I s s u e 4 / A p r i l 2 015

texasDealer 5 Officers’ Message

contents

by Kathrine Tolsch, TIADA Secretary

9 Legal Corner: Dropped Liens are Disastrous, But Avoidable by Michael W. Dunagan

10 Upcoming Events 14 3 Questions Always Asked on ABC’s Shark Tank by Dawn Fotopulos

16 March “Clunkers” Bracket Contest Results 18 On The Cover: Bill Targets Texas Used Car Dealers by Jeff Martin

19 Local Chapters 20 2015 VIP Auction Card Directory 23 TIADA Annual Conference and Expo 30 TIADA Scholarship Application 32 Board of Directors Meeting Minutes 35 Are You Compliant with the New Facebook Rule Changes? by Kathi Kruse

Vice President, Central Texas (Region 5) Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net

38 New Members 40 Excerpts from The CARLAWYER©

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

42 Regulation Matters: Single Sticker Meets the Real World

Vice President At Large Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net Vice President At Large Trey Crouch/Trey Crouch’s Wheels On Credit 636 E. Business 83 McAllen TX 78501 Office: 956.972.0700 Email: trey@wheelsoncredit.com TIADA Executive Director Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am - 4:30pm 800.442.5944 • Fax 512.244.6218 jeff.martin@txiada.com

by Thomas B. Hudson and Nicole Frush Munro

by Danny Langfield

46 Behind the Wheel by Jeff Martin

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

DID YOU KNOW... you can already register for the 2015 Annual Conference and Expo? Go to www.TiadaAnnualConference.com to get registered at low early bird rates and find out what’s new... the Deeper Dive, the Learning Tracks and the Single Day Passes. The Editor of the Texas Dealer magazine is Teresa Orkun, Marketing Communications Coordinator of TIADA. To change your address for subscription and/or for other TIADA products, call the TIADA state office at 800.442.5944, 512.244.6060 or fax 512.244.6218. E-mail: info@txiada.com. New Membership/Subscriptions: If you are a member of TIADA, you may receive this magazine free of charge. Membership year runs from Jan 1 to Dec 31. Back issues are available for $20 each subject to availability. Send a check or money order, along with your name and mailing address to TEXAS DEALER, Attn: Back Issues, 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750. Sorry, no billing. Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

officers’ message Pain of Change

xperiencing a change in your staff is always painful — whether the change is due to resignation, employer termination, or adding staff due to growth. There is always, what I refer to as, “the pain of change.” There is the pain of finding a replacement/new employee, the challenge of who will do the work while you are searching for someone, the added stress on the employee that takes on the additional workload, and then the chore of getting the new person trained and incorporated into your company’s culture. Once you have hired your new employee, how do you get them trained? Hopefully, you have someone on your team that can do that. But again, there is the added stress on that employee of not only training the new person, but also keeping up with their own workload. In our business, there are so many tasks that have to occur before, during, and after the sale; everything from complying with government regulations to maximizing the security of your collateral, and more. Because of the many compliance and financial implications, training becomes very important. Teaching a new employee to understand how their job impacts business profitability and legal requirements can allow them to make better day-to-day decisions, and become an asset in the company.

by Kathrine

Tolsch

ICO Auto Sales C (Dallas) TIADA secretary

Depending on the size of your organization, staff members may wear several hats, or employees may have very specific duties to focus on. One of the many jobs after a sale is the registration and title paperwork. It is often an afterthought to the process but a very critical step, not only because of the registration but it secures your lienholder position, and it must be done correctly. Recently I had the opportunity to train a new employee on this process, but the best part was that I did not have to spend my time doing the training. Instead, she accessed TIADA’s Online Dealer Training Center through their website and for just $49 she took the “Introduction to Transferring Titles” course and was ready to roll in less than an hour! The self-paced interactive module was very user friendly and informative and in fact, it was so educational that, after she completed the online session, she immediately began working some of the backlogged title packets. I made sure I was available for questions, and then reviewed the work. It was perfect! TIADA’s training module saved me several hours of time, which in my world time is money! I’m pleased with this experience and excited about future online training modules that TIADA could offer. It has the potential to save employers and staff time and money and it can make the training aspect of change PAINLESS!

Because of the many compliance and financial implications, training becomes very important. April 2015 T e x a s

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TIADA Dealer Academy 2015 Keeping Your Dealership Legal and Compliant a seminar with

Michael W. Dunagan, TIADA General Counsel

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

Michael W. Dunagan’s ongoing quarterly compliance seminar features updates on both federal and state regulations with a focus on advanced dealership financing issues. This is the practical side of compliance from the association that understands you have a business to run — and you want to run it right. The seminar will focus on advanced financing concepts, with special emphasis on in-house financing, repossession & bankruptcy issues, OCCC compliance and federal regulations. • Customer ID requirements – what is acceptable? • Privacy Notice requirements – do we need a new, custom form? • Risk-Based Pricing – what does the rule require? • Credit Card Convenience Fees – what is allowable? • Adverse Action Rule – who is affected? • Consumer Financial Protection Bureau (CFPB) – what can dealers expect? • Bankruptcy – when do we have to give the vehicle back? • Repossessions – When does the 60% rule apply? Is repo notice required? Do we have to return custom wheels? Do we have to disclose a GPS unit?

• OCCC Audits – what are the most common mistakes dealers make? • TxDMV Enforcement – advertising violations, title management issues & more

PLUS:

• Texas Legislative Session – an update on bills that will affect the industry • Q & A – don’t leave until you get all your questions answered by the top industry expert in Texas, Michael W. Dunagan

Thursday, April 23, 2015 Sponsored by: Collateral Protection Insurance www.cpiai.com

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legal corner

Dropped Liens Are Disastrous, But Avoidable by Michael

ne of the most disheartening calls I can get from a buy here, pay here dealer involves the discovery that the dealer’s lien was somehow left off a title certificate. Inevitably, the credit purchaser/debtor receives a free-and-clear title certificate from the state, and immediately sells the vehicle or takes out a loan against it from a “cash-for-title” business or other lender. In the two-week period prior to writing this article, I received that call three times. In all three cases, the dealers or their employees failed to notate the lien on the titletransfer application, and no one at the dealership caught the omission until it was too late. In my TIADA Texas Dealer Academy program entitled “Keeping Your Dealership Legal and Compliant,” I take the time to stress the importance of verifying liens at the time of transfer because of the frequency of dropped-lien stories I hear, and because of the easy procedures available to prevent them from happening. The direct result of a dropped lien — regardless of whose fault it is — is that a negotiable, free-and-clear, title certificate will be mailed directly to the purchaser who is listed on the transfer information. That purchaser might, upon receipt of the manna from heaven, bring the over-sight to the attention of the creditor and offer to return the lien-free title. Or, more likely based on the cases I see, choose to take advantage of the situation by trying to turn the title into cash. There will often be

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a statement from the debtor to the effect that: “I have free-and-clear title; therefore, I have paid the vehicle off.” It’s always an eye-opener when I describe the losses that have been suffered by dropped liens at my Texas Dealer Academy programs. One dealer who heard my message at a seminar immediately started a program of checking liens on title-transfer applications and on title receipts. Since she began checking, she told me, she had encountered six cases where liens had been dropped or incorrect names or addresses had been entered as to the lienholder. One of the themes of dealer education is the importance of the vehicle lien to car creditors. In the sub-prime universe, and especially with the BHPH industry, I stress the fact that the creditor’s lien is everything. If that is an exaggeration, it’s not much of one. In a debtorfriendly state like Texas, the ability to collect money on a contract from an unwilling obligor, without the collateral, is next to impossible. While some car creditors will file suit against a sub-prime debtor for a deficiency balance, or for indebtedness owed after the collateral is totaled, for instance, most creditors

Dunagan

TIADA general counsel

There are two very important transactional steps in the title-transfer process where the dropped-lien can be avoided, and a third less effective step. know that the effort to collect money from a sub-prime debtor is largely a waste of time and resources. Often, the ability to repossess the collateral, or get it back through the court system, if necessary, are the only ways the creditor can avoid a total loss. There are two very important transactional steps in the titletransfer process where the droppedlien can be avoided, and a third less effective step. The first is the preparation of the title application form (or 130-U in Division of Motor Vehicles terminology). In most cases, the 130-U is generated by the dealer management software package. In some DMS systems, a key-stroke is necessary to have the lien placed in the appropriate space. Others place a lien by default, 9

Upcoming Events

TIADA Dealer Academy April 2015 23 Keeping Your Dealership Legal

and Compliant DoubleTree by Hilton Houston Hobby Airport 8181 Airport Blvd., Houston, TX 77061 Online registration available www.txiada.com

May 2015 7 Dealer 101: Nobody Told Me That! Hilton San Antonio Airport 611 Northwest Loop 410 San Antonio, TX 78216 Online registration available www.txiada.com

June 2015 16 Keeping Your Dealership Legal and

Compliant Best Western Plus 100 Alta Mesa Blvd. East Fort Worth, TX 76134 Online registration available www.txiada.com

other TIADA events April 2015 20 TIADA Board of Directors Meeting

Austin, TX

August 2015 9 TIADA Board of Directors Meeting San Antonio, TX

9–12 TIADA Annual Conference and Expo J.W. Marriott Hill Country Resort and Spa San Antonio, TX 10

requiring instead an extra step to remove it (such as in a cash sale). Regardless of the way the lien is entered, it is a very simple process to have one or more employees responsible for verifying that the lien does appear on the 130-U before the title package goes to the courthouse. In each of the three recent cases I mentioned above, no one looked at the 130-U before it was filed. In one case, the dealer was assuming that his DMS would automatically place the line of the 130-U. The second point of review is when the VTR-500-RTS, or more commonly, the “white slip,” is issued. The title-transfer receipt issued by the County Tax AssessorCollector to prove that the transfer has taken place is a multi-purpose document that is chock full of information that can be used to protect a car seller or creditor, and can also be used to establish legal and regulatory violations. The information that appears on the receipt includes lien information, registration and license fees paid, sales taxes paid (or deferred), and the date of transfer of title. Often, if the dropped lien is discovered by reviewing the white slip, a quick correction can be made by bringing the error to the attention of the tax office. A third, but less effective step, would be to have files flagged where the title certificate has not yet come in from the state. When the title comes in the flag is removed. When a file remains flagged beyond the time the title certificate usually comes back from the state, some follow-up should be performed to get assurance that the lien has been properly recorded. All of the misery of a dropped lien

In situations where the county or state dropped the ball (or lien, in this case), we have found that the state will typically correct the error at no charge. can be avoided by the institution of one sacred, unbending rule. It should be the responsibility of a designated dealership employee to review all titletransfer applications for the presence of lien information before they go to the tax office, and to review receipts that are returned to the dealership to confirm that liens have been listed. (Additionally, the court-house runner should check for the appearance of the lien on the receipt while still at the courthouse.) What are the options available to the lien holder if a lien gets dropped? The answer depends on who did the dropping (either the dealer, the county tax office, or the state), and how soon the omission is discovered. We’ve seen cases where (1) the dealer never put the lien on the titletransfer application; (2) the dealer did note the lien, but the county tax office inadvertently dropped it from the paperwork sent to the state; and (3) the dealer properly put the lien on the application, the county properly sent the correct information to the state, but the state somehow issued the title without the lien. In situations where the county or state dropped the ball (or lien, in this case), we have found that the state will typically correct the error at no charge. A correct title will be issued and sent to the lienholder, and a letter notifying the current title holder (and new lienholder, if there is one) T e x a s

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that the title issued in error is no longer valid. While it may still be necessary to seek legal process to get the car back, the corrected title and lien notation greatly simplify the legal requirements. Texas law provides that the filing of a title transfer application showing a lien, along with payment of all the required fees, establishes the effective date of the lien, and that the lien becomes “perfected,” even if the state’s title and lien database don’t reflect the lien until a later time. This fact becomes very important in a situation where a third-party claim is made against a vehicle in the period of time after a proper transfer is filed but before the lien shows up on the state’s records. The date of the lien shown on the title application receipt is of utmost importance. If the lien was dropped because of an omission by the dealer, however, the state will require that a lawsuit be filed against the state, and a court

order obtained directing the state to correct the title. Additionally, those innocent third parties who bought the vehicle, or loaned money on the title, if they have perfected their ownership and/or lien status by filing with the state, will probably have a superior claim. This is because the lack of the dealer’s lien on the original title was the direct result of the negligence of the dealer. How about the claim of the debtor that since he received a free-andclear title from the state, his account is paid and he owes nothing on the car? What is overlooked here is that the debtor signed a contract promising to pay. Even if he possesses a clear title, he would be in default if he stopped paying or insuring the vehicle. The dealer does have the right to repossess in case of default. This right, however, may be complicated by the fact that police officers or other officials might not understand the role of contracts

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and dropped liens and might tend to look solely to the title certificate held by the debtor. And, as we’ve discussed above, the entry of a third party to the situation will create further complications. Fortunately, all of these problems can be avoided. Every dealer can easily install the triple-pronged verification process and never suffer from a dropped lien. It would indeed be nice if I never again had to take a call in which the dealer laments that “somehow my lien got dropped and my customer got a clear title.” Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 35 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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feature

3 Questions Always Asked on ABC’s Shark Tank

by Dawn Fotopulos Associate Professor of Business The King’s College, NYC

{Editor’s Note: Dawn will be featured in the Serial Entrepreneur learning track at the 2015 TIADA Annual Conference & Expo.}

hen my Aunt Theodora, who owns a multimillion dollar lighting design business, asked me if I watched ABC’s Shark Tank, I figured it was time to get into the fray and watch it, too. At first I thought the show was a farce to attract eyeballs and sponsors. After watching, it’s clear the sharks are serious about these startups and they ask superb questions. It’s like getting a mini-MBA in 60 minutes. Sometimes, the entrepreneurs have great answers, sometimes they blow a once in a lifetime opportunity. I’ll help you understand what the ABC Sharks care about so you can nab a big fish and not become shark bait in real life. Here we go… There are three questions that always come up on ABC’s Shark Tank: 1. Will I get paid back with a premium for the risk I’m taking? 2. When will that happen? 3. Is this business owner the right person to drive this business to profits and predictable cash flow? If you pay attention, all other questions asked on the show hinge on the three you see above. The investors on ABC Shark Tank test the owners to see if they understand the marketplace, if they can prove how strong demand is for their product, and if the small business owner understands the concept of gross margin, which drives profitability. That’s why knowing your numbers is the minimum cost of entry if you’re an entrepreneur of any kind, including an independent dealer. The first question recognizes that the odds are pretty low that an investor in an early stage business

will ever see their money again, forget about getting a return. Just because someone has a great business idea is no guarantee they’ll make money. When I was panel moderating for the NYT/ AMEX Small Business Conference in NYC, David S. Rose, a big time investor here in NYC said he expects only one in two hundred investments to deliver 20X his original investment in two years. Those are his screens for a successful start-up investment. One in 200 is a .5% success rate even for the smart guys. If the sharks are tough, this is why. Question two is about when payback happens. Time and not just investment returns become an important factor. If an investor invests in this company today, that precludes investments in other potentially stronger business ideas in the near term. So the returns have to be there, but there’s usually a time fuse on it. Revenue growth rates give the investors on ABC Shark Tank a sense of how quickly the business is generating gross profits and cash flow to run the business and pay back investors. If the owner has high profile retailers already on board, that’s golden. It lowers the investment risk for any shark or bank by building unit sales volume and credibility quickly. Remember, a billionaire has choices. He or she can invest in any project and the constraint for them is not money; it’s time. That means they’re looking for businesses with exponential growth. Question three is about the owner’s attitude and aptitude. Even if the idea is a good one, the owner pitching the sharks might be the wrong person to take the idea to fruition. Here is what I can surmise about the qualities the sharks are looking for based on their questions and comments: T e x a s

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Does this person know their numbers and do they have discipline to follow through? Are they uniquely qualified to develop this prod uct or service and to run this company? Did they do their homework on their competition? Do they already have good relationships with retailers and customers? Are they teachable or tone deaf?

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Word to the wise, you can’t just be a creative type or tech nerd, you need to know what drives the financial viability of the dealership and how to measure it. Every shark knows that net profits are driven by revenues and gross profits. If those are in place and growing fast, the business has a fighting chance of survival and returning investor capital with a handsome return. Remember, those must come within that magic two-year window. If you as a business owner have no idea what I just said, you better get smart fast. Learn how to read your financial dashboard which includes your Net Income Statement, Cash Flow Statement and Balance Sheet. If you ever ask for money without knowing how to read these, you will not get funding. Now you know.

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Commercial Fire • Contents • Wrecker • 2-Car Haulers Cargo • Dealer Bonds • Retirement • Life Insurance Homeowner Insurance • Personal Lines 15

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April 2015

Chrysler PT Cruiser

Pontiac Aztek

VW Jetta

Chrysler 300

VW Jetta

Pontiac Aztek

Cadillac STS

Pontiac Aztek

Wins!

Justin Browning

Cadillac STS

Dodge Ram

unique visitors did the TIADA website have during the month of January 2015?

TIEBREAKER: How many

of Browning’s Reliable Cars & Trucks LLC

hich is the top “Clunker” of the past 10 years?

$500

Nissan Xterra

Dodge Ram

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Cadillac STS

on the cover by Jeff Martin

TIADA Executive Director

f Representative Nicole Collier of Fort Worth is successful this legislative session she will create a new law that requires auto dealers to inspect each used motor vehicle and list any issues found on the Federal Buyer’s Guide. House Bill 2169 would amend the Texas Occupation Code, adding language to Chapter 2301 where you will find the Texas motor vehicle “Lemon Law.” This new law would require that each “defect” identified be prominently and conspicuously highlighted on the Buyer’s Guide. A violation of this law could cost as much as $500 per violation. Essentially, Representative Collier would

Bill Targets Texas Used Car Dealers

take the Buyer’s Guide and use it in a manner for which it was not intended. The current Lemon Law, applicable to the sale of new vehicles in Texas, primarily addresses issues between consumers and manufactures. The underlying principle is that a newly manufactured vehicle should meet a certain standard given each vehicle, based on make and model, starts out with the same design, parts, craftsmanship etc. Therefore, it’s reasonable to expect each vehicle to perform similarly over a certain amount of time or after a specified amount of use. However, Representative Collier’s bill is specific to used car dealers.

Requiring used car dealers to inspect and identify “defects” and list them on the Federal Buyer’s Guide implies some sort of guarantee. No one, including a qualified mechanic, can predict exactly when a particular breakdown may occur. Under this proposed law, any “defect” that occurs after the sale of the vehicle could be characterized as a failure by the dealer to highlight the “defect.” Many used car dealers provide warranties and offer service contracts and allow for a vehicle inspection by the consumer’s mechanic either on or off the lot, as suggested by the Federal Buyer’s Guide. But HB 2169 would put used car dealers in legal peril and is a bill T e x a s

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TIADA strongly opposes. At press time this bill had not been referred to committee but it is expected to land in the House Transportation Committee. TIADA members will be asked to take action on this bill and others over the next three months as the challenging task of protecting the industry intensifies.

An update on other important legislation

With the deadline for filing new legislation behind us, the Capitol is now settling in for the tedious process of moving bills through committees. TIADA will remain vigilant throughout this committee process, owing to the fact that legislators frequently change the language in a bill while in committee. These “committee substitutes,” as they are called, often bear little relation to the legislation originally filed. Keeping in mind that from our press deadline to the time you are reading this bulletin a few things have probably changed, here is the latest update on the bills that TIADA is currently tracking:

HB 335 (Thompson, Ed) and HB 318 (Keough) – Both

these bills propose the elimination of named-driver-only policies. Status (HB 318): Referred to Insurance Committee 2/11 Status (HB 335): Referred to Insurance Committee 2/12 Position: TIADA supports these bills.

HB 385 (Keough) – This bill

would allow an individual to sell up to 11 vehicles per year without obtaining a dealer’s license. Currently an unlicensed individual may sell only four per year. We believe anyone selling more than four vehicles in a year is essentially dealing in motor vehicle sales and should be licensed appropriately. Status: Referred to Transportation Committee 2/12 Position: TIADA opposes this bill. April 2015

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SB 441 (Burton) – This bill

Local Chapters

HB 2169 (Collier) – This bill

Victoria Dennis Schroller Victoria Autos Direct 361.578.0530 Dennis@victoriaautosdirect.com Meeting – 1st Monday (Monthly)

would eliminate the blue law, which prohibits dealers from selling vehicles on consecutive weekend days. Status: Referred to Transportation Committee 2/9 Position: TIADA opposes this bill. would require each used car dealer to inspect each vehicle offered for sale and highlight defects listed on the back of the Federal buyers guide. Status: Not yet referred. Position: TIADA opposes this bill.

HB 2335 (Collier) – This bill

would require TxDMV to post an annual report on used vehicle dealer complaints on its website. Status: Not yet referred. Position: TIADA opposes this bill.

HB 533 (Ashby) – This bill would authorize law enforcement to impound a vehicle for no insurance. Status: Not yet referred. Position: TIADA wants to ensure that proper protections and notifications are provided to lienholders and therefore is monitoring this bill. HB 2076 (Oliveira) – Due to a new position taken by TxDMV on the matter of mechanic’s liens notification process, TIADA worked with Chairman Oliveira’s office to develop this bill and to ensure that lienholder’s interests continue to be fully protected. Status: Not yet referred. Position: TIADA supports this bill. Your best source of up-to-theminute information on legislative issues that will affect your industry is the Legislative Action Center, found under Advocacy at the TIADA website, www.txiada.com. As always, we welcome the input of our members regarding legislative matters. TIADA’s legislative team will work diligently to keep you abreast of the issues and call on you to act when needed.

Fort Worth Jerry Smith HJ Smith Automobiles 817.282.0102 hjsmithauto@yahoo.com Meeting- 4th Thursday of December, February, April, June, August and October Dallas County Kevin Mims VP Auto Sales 972.864.1300 kevinm@vpautosales.com Meetings as needed/TBD Houston Michael Zak Dixon Motors 281.931.1300 houstoniada@gmail.com Meeting – 2nd Monday (Monthly) San Antonio Robert Beck Stop N’ Drive Motors 210.432.1101 stopdrive@texas.net Meetings quarterly (dates announced at www.txiada.com) El Paso Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 19

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Houston

AA AA Metro Austin

Texas Heart of AA El Paso dent AA Waco Indepen Can! America Kids for Texas Lone Star AA Cars Arlington Carrollton CM Dealers y Compan s of OKC Auction

Big Valley AA Donna

Corpus

Austin

Permian

Houston

Basin Dallas

Houston

w North Longvie

McAllen

DFW

abilene

corpus Christi

Alliance Auto Auction Abliene

Insurance Auto Auctions*

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.

www.allianceautoauction.com

www.iaai.com

C.M. Company Auctions, Inc.

DALLAS / Ft.Worth Metroplex

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

Adesa Dallas

www.cmauctions.com

www.adesa.com

austin

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

Adesa Austin

Alliance Auto Auction Dallas

www.adesa.com

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

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

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

Insurance Auto Auctions* www.iaai.com

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

Metro Austin Auto Auction www.metroautoauction.com

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

www.allianceautoauction.com

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

America Can! Cars for Kids www.charitycarauctions.org

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

America’s AA Dallas

www.americasautoauction.com

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

Insurance Auto Auctions* www.iaai.com

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

Insurance Auto Auctions* www.iaai.com

* VIP card accepted for sell fees only 20

Christi

El Paso

Lubbock

San Antonio

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

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

Manheim Dallas

www.manheim.com

5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800, Fax 214.339.6347 General Manager: Jeff Modjeski Wednesday, 9:00 a.m.

Manheim Dallas Fort Worth www.manheim.com

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

Texas Lone Star Auto Auction www.tlsaa.com

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

El Paso El Paso Independent Auto Auction www.epiaa.com

7930 Artcraft Rd El Paso, TX 79932 915.587.6700, Fax 915.587.6700 General Manager: Lori Pidgeon Wednesday, 9:30 AM In-op Video Sale / 10:00 AM Standard Sale.

Insurance Auto Auctions* www.iaai.com

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

Manheim El Paso

www.manheim.com

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

D e a l e r

April 2015

Insurance Auto Auctions*

san antonio

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

Adesa San Antonio

www.iaai.com

Manheim Houston www.manheim.com

Harlingen / McAllen Big Valley Auto Auction www.bigvalleyaa.com

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

Insurance Auto Auctions* www.iaai.com

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

houston Adesa Houston www.adesa.com

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

America’s AA North Houston www.americasautoauction.com

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

Houston Auto Auction

www.houstonautoauction.com

6767 North Freeway Houston, TX 77076 713.644.5566, Fax 713.644.0889 General Manager: Joe Lavigne Tuesday, 1:00 p.m.

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

Manheim Texas Hobby www.manheim.com

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

longview Alliance Auto Auction Longview www.allianceautoauction.com

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

Insurance Auto Auctions* www.iaai.com

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

lubbock Insurance Auto Auctions* www.iaai.com

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

midland / odessa

Insurance Auto Auctions*

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

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

www.iaai.com

April 2015

T e x a s

D e a l e r

www.iaai.com

www.adesa.com

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

Insurance Auto Auctions* www.iaai.com

11275 S. Zarzamora San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 General Manager: Brian Sell Monday, 9:00 a.m.

Manheim San Antonio www.manheim.com

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

waco Alliance Auto Auction Waco www.allianceautoauction.com

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

Heart of Texas Auto Auction www.heartoftexasautoauction.com

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

Oklahoma city, OK Dealer’s Auto Auction of OKC, Inc. www.daaokc.com

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

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Winning in the indirect lending game

Serial Entrepreneur Big time achievers from outside the auto world

Deeper Dive

ToPICS

Estate and Business Succession Planning for Dealers Larry Oxenham Author, Senior Advisor American Society for Asset Protection

The Real Shark Tank: 4 Hours with the OCCC

Eric Fancher Financial Examiner Office of Consumer Credit Commissioner

Everybody Rides: Delivering a Sales Experience They’ll Love

Cory L. Mosley

Principal Mosley Automotive/Mosley Communications

What’s New? Looking for something more than just a one hour sit-and-get? Consider adding one of these special sessions to your registration. Each of our “Deeper Dives” is a small group, four hour workshop full of interactivity, designed to give you a thorough understanding of a specific topic.

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Deeper Dives are offered Sunday afternoon from 1–5pm and each is limited to 30 attendees.

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Thank You to Our Current Sponsors P l At i n u m

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Sponsorship & Exhibiting Opportunities Are Still Available.

Thank You to Our Current Sponsors s i lv e r

specialty sponsors E s c a l a t o r C l i n g : A m e r i c a â&#x20AC;&#x2122;s A u t o A u c t i o n s o f Te x a s Hotel Key Card: ADESA, Inc.

Lanyard: Arcana Insurance Services

Mtg. Directional: Peritus Portfolio Services LLC Re-charge Station: Leedom & Associates

Bronze Plus and Bronze AUL Corp.

Automotive Capital Resources, LLC

AutoRevo

Autostar Solutions, Inc.

B e r ks h i r e R i s k S e r v i c e s

Cadence Insurance

Contact At once!, a LivePerson Company Dealer Center

Floorplan Xpress LLC

Ituran USA Inc.

A u t o Tr a d e r. c o m

C A R FA X

PWI

SDA, Inc.

SecureClose n

Strategic Warranty Services

Titan Card

Victoria Auto Auction

AutoZone

AutoZoom

C o u n s e l o r L i b r a r y/ H u d s o n C o o k L L P

Go Financial

Insurance Auto Auction

L a n e G o r m a n Tr u b i t t P L L C

Lobel Financial

PassTime / Gary Clymans & Associates

Shilson, Goldberg, Cheung & Associates, LLP

SSW Dealer Supply n

C o l l a t e r a l P r o t e c t i o n I n s u r a n c e A g e n c y, I n c .

Frazer Computing, Inc.

NCM Associates

Sigma Payment Processing

Copart Auto Auctions

K e v i n W. S m i t h & A s s o c i a t e s , I n c .

M u l l e n I n s u r a n c e A g e n c y, I n c . PrimaLend Capital

Automotive Finance Corporation (AFC)

Strategic Dealer Services

United Acceptance, Inc.

vAuto

Westlake Financial Services

C O N TA C T : P a t t y H u b e r p a t t y. h u b e r @ t x i a d a . c o m / 5 1 2 . 3 1 0 . 9 7 9 5

Dealer Registration 2015 TIADA Annual Conference & Expo August 9-12, 2015 JW Marriott Hill Country Resort â&#x20AC;&#x201C; San Antonio, TX Customize your conference experience by selecting from many of the options below. Prices will increase on registrations received on or after July 11, 2015. Please complete the form on the reverse side and return it with payment in full to the address listed or go to www.TiadaAnnualConference.com to register online.

EARLY BIRD RATE

CONFERENCE OPTIONS

through July 10th

Full Conference Pass- Dealers Only (includes Welcome Reception, Monday & Tuesday Education/Sessions, Expo Hall, Awards Dinner, Farewell Breakfast) 1st Registrant 2nd Registrant* 3rd + additional Registrant*

(prices will increase $100 after July 10th)

Conference + Deeper Dive- Dealers Only (includes all above PLUS choose one Sunday session from the Deeper Dive options below) 1st Registrant 2nd Registrant* 3rd + additional Registrant*

(prices will increase $100 after July 10th)

$495 $395 $295

$594 $494 $394

Deeper Dive Only (Sunday 8/9)- Space is Limited Limited to 30 attendees per session, this is a small, four-hour workshop full of interactivity designed to give you a thorough understanding of the specific topic presented. See website for full description of each session. Choose one: -Estate and Business Succession Planning for Dealers- Larry Oxenham- Author, Senior Advisor -The Real Shark Tank: 4 Hours with the OCCC- Eric Fancher, Financial Examiner -Everybody Rides: Delivering a Sales Experience Theyâ&#x20AC;&#x2122;ll Love- Cory L. Mosley, Principal, Mosley Communications

$149

One Day Pass (Monday 8/10 or Tuesday 8/11) (includes one day of education and Expo Hall on your selected day)

$300

Spouse, Guest, or Child (10 Years and Older) (includes Meet & Greet, Expo Hall, Awards Dinner, Farewell Breakfast; education not included)

$75

Child (9 and under) (includes Meet & Greet, Expo Hall, Awards Dinner, Farewell Breakfast; education not included)

Free

Non-Member (Dealers Only)

Call 800.442.5944 for Pricing *Registrants must be from same dealership to receive discounted rate

Hotel Accommodations

Discounted rooms are available for $199/night for TIADA Conference attendees. Please contact the hotel directly to book your room.

JW Marriott Hill Country Resort 23808 Resort Parkway, San Antonio, TX 78261 Room Reservations: 210.276.2500 Rooms must be reserved on or before July 10, 2015 in order to receive the discounted rate.

Registrant Information Dealership: __________________________________________________ Address: ____________________________________________________ 1st REGISTRANT

Phone: ____________________________________ City/ST/Zip: ________________________________

 FIRST TIME ATTENDEE

Name: ________________________________________ Name for Badge: ________________________ Title: ________________________________ Email: ________________________________________________________ Spouse/Guest: ________________________________________________ Child 10+: ________________ / _________________ / ________________ Child 9&under: _______________ / _______________ / _______________  FULL CONFERENCE ($495 early bird through July 10th; $595 begins July 11th)

$___________  FULL CONFERENCE + DEEPER DIVE ($594 early bird through July 10th; $694 begins July 11th) $___________  DEEPER DIVE Sunday only ($149) $___________ If registered for DEEPER DIVE, please select one: The Real Shark Tank Succession Planning Everybody Rides  ONE DAY PASS- Monday ($300)  ONE DAY PASS- Tuesday ($300) $___________  GUEST/SPOUSE/CHILD 10&over ($75 x ____) = $________  CHILD 9&under (free) _____ $___________ RSVP total # tickets: Awards Dinner (Adult/Child10+) ____ (Child 9&under) ____ Farewell Breakfast _____ 1st Registrant Subtotal $__________ 2nd REGISTRANT

 FIRST TIME ATTENDEE

Name: ________________________________________ Name for Badge: ________________________ Title: ________________________________ Email: ________________________________________________________ Spouse/Guest: ________________________________________________ Child 10+: ________________ / _________________ / ________________ Child 9&under: _______________ / _______________ / _______________  FULL CONFERENCE ($395 early bird through July 10th; $495 begins July 11th)

$___________  FULL CONFERENCE + DEEPER DIVE ($494 early bird through July 10th; $594 begins July 11th) $___________  DEEPER DIVE Sunday only ($149) $___________ If registered for DEEPER DIVE, please select one: The Real Shark Tank Succession Planning Everybody Rides  ONE DAY PASS- Monday ($300)  ONE DAY PASS- Tuesday ($300) $___________  GUEST/SPOUSE/CHILD 10&over ($75 x ____) = $________  CHILD 9&under (free) _____ $___________ RSVP total # tickets: Awards Dinner (Adult/Child10+) ____ (Child 9&under) ____ Farewell Breakfast _____ 2nd Registrant Subtotal $__________ 3rd REGISTRANT

 FIRST TIME ATTENDEE

Name: ________________________________________ Name for Badge: ________________________ Title: ________________________________ Email: ________________________________________________________ Spouse/Guest: ________________________________________________ Child 10+: ________________ / _________________ / ________________ Child 9&under: _______________ / _______________ / _______________  FULL CONFERENCE ($295 early bird through July 10th; $395 begins July 11th)

$___________  FULL CONFERENCE + DEEPER DIVE ($394 early bird through July 10th; $494 begins July 11th) $___________  DEEPER DIVE Sunday only ($149) $___________ If registered for DEEPER DIVE, please select one: The Real Shark Tank Succession Planning Everybody Rides  ONE DAY PASS- Monday ($300)  ONE DAY PASS- Tuesday ($300) $___________  GUEST/SPOUSE/CHILD 10&over ($75 x ____) = $________  CHILD 9&under (free) _____ $___________ RSVP total # tickets: Awards Dinner (Adult/Child10+) ____ (Child 9&under) ____ Farewell Breakfast _____ 3rd Registrant Subtotal $__________

Payment Information  Make check payable to TIADA.

Total Amount Due $ ________

 TIADA is hereby authorized to execute payment to the following credit card:

Credit Card Number _______________________________________________________________

 AMEX

 Visa

Exp.Date ____________

 MC

Discover

SVC _________

Name on Card ___________________________________________________________________ Authorized Signature _____________________________________________________________________________________________________

Please complete this form and return with payment before July 10th to receive Early Bird pricing listed. Prices will increase on July 11, 2015. For more information or to register online: www.TiadaAnnualConference.com TIADA | 9951 Anderson Mill Rd, Suite 101; Austin, TX 78750 | Phone 800.442.5944 | FAX 512.244.6218 | EMAIL info@txiada.com

ATTENTION STUDENTS!!!

$1,000 TIADA

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

SCHOLARSHIP

SCHOLARSHIP APPLICATION

DEADLINE

May 1, 2015 {Applications and/or any required documents received after May 1, 2015 will NOT be accepted.} Criteria and Guidelines 1. Each applicant must be entering or currently enrolled in an accredited college or a trade school. Proof of enrollment must be included with this application.

Name:

DOB:

Address: City:

State:

Zip:

State:

Zip:

Telephone Number: High School Last Attended: Address:

2. Each applicant must provide a letter from their TIADA member sponsor that includes the sponsor’s address and Saturday phone number.

City:

3. Each applicant must complete the application form.

Other High Schools Attended (Names and Addresses):

4. Applicant must be in the top 25% of class. If applicant is currently enrolled, provide college transcripts with official university imprint. In addition, a copy of high school transcripts is required for applicants who are college freshmen. 5. Provide a detailed description of participation in any academic, honorary, civic or extracurricular activities in college. In addition, a detailed description of high school activities is required from college freshmen along with a college acceptance letter. 6. Compose an essay of no more than two typed, double-spaced 8 ½” x 11” pages. The essay should discuss the applicant’s relationship with their TIADA scholarship sponsor, current education goals and future aspirations as it relates to the applicant’s subject/training area. 7. Provide at least two (but no more than three) letters of recommendation, no older than one year, from college/high school faculty, employers or other appropriate sources (not related).

Date:

Dates of Attendance: Date of Graduation:

College(s) you are attending or plan to attend for admission:

Parents Name(s): TIADA Member Name (Sponsor): TIADA Member Company Name: TIADA Member Address: City:

State:

Zip:

Sponsor Signature Should you have any questions, please contact TIADA at 800.442.5944. Please return the completed application with all required documents to: TIADA Attention: Scholarship Applications 9951 Anderson Mill Rd., Suite 101 / Austin, TX / 78750

T e x a s

D e a l e r

April 2015

board of directors meeting minutes

January 26, 2015 | DoubleTree by Hilton, Austin, TX

compiled by Texas Dealer staff

At its meeting on Monday, January 26, 2015, TIADA took the following actions: President Brent Rhodes called the meeting to order at 1:13 p.m.

meeting with Commissioner Leslie Pettijohn regarding the OCCC licensing process.

Minutes Of Last Meeting

A discussion was held regarding various options for a special membership fundraiser.

Kathrine Tolsch presented the minutes of the last Board of Directors Meeting. A motion was made to accept the minutes. Moved by Dan Keetch, seconded by Tommy Gregory — PASSED

Treasurer’s Report

Greg Zak presented the Treasurer’s report. A motion was made to accept the report. Moved by Kathrine Tolsch, seconded by Tommy Gregory — PASSED

President’s Report

Jeff Martin discussed the legislative program and provided an update on the association’s new online advocacy tool, VoterVoice. He also reviewed the program for Lobby Day at the Capitol. Danny Langfield reviewed the Business Partners program and presented an application from ADESA. Jeff Martin provided an update on speakers and sponsors for Annual Conference & Expo 2015.

Brent Rhodes announced the resignation of PresidentElect HL Hensley.

Danny Langfield reviewed the associate member activity for FY15.

Executive Director’s Report

Old Business

Jeff Martin discussed the various TIADA staff changes. Jeff Martin discussed legislative visits and public relations visits made over last few months. Michael Thomasson talked about TIADA’s participation in the NIADA leadership conference in Washington, D.C. Danny Langfield presented the Towing & Storage Ad Hoc committee report. It was reported that a significant number of issues experienced by lien holders were the result of actions by body shops, which are not licensed. Danny Langfield provided a membership update, including the progress and goals for 2015. Danny Langfield discussed the association’s agency stakeholder involvement, including numerous meetings with TxDMV regarding the single sticker initiative and TIADA’s participation in VTR’s Title & Registration Workgroup. He also reported on the association’s

Greg Zak presented the budget.

None

New Business

A motion was made to accept ADESA to the Business Partner program. Moved by Greg Zak, seconded by Kevin Mims — PASSED A motion was made to adjourn the meeting. Moved by Robert Beck, seconded by Greg Zak Meeting adjourned at 5:44p.m. 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.

T e x a s

D e a l e r

April 2015

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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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Downpay ........: ........ .....$ RESS tions speci l:(3) Deferred ......... $ ........ payment ........ADD ................ r to the Mode ................ terms $and condi ZIP: Cash down LE MAKE ent (Refe VEHIC........ ................ ................ ................ under the E CITY, ST, ............ ........ downpaym ................ ................ase from you, VEHICL ................ $ Deferred ................ ) ................ ................ y purch........ ........ belowE: -in........... Make: PRICE hereb 4.A.PHON ................ : I/We........ .... ........ (Optional) (St. & No.): Gross trade see Line to License NUMBER ........ ........ ........ G: SOLD........Year: ICLE “0” and by seller STOCK VEHBEIN ................ amounts.): - payoff tive, enter DEALER ........ ........ ........ THIS VEHICLE........ .. $ ge: ........Milea ........ TIES FOR -in (if nega ................ part of these No.: ........ ........ trade ........ keep Stock er may = net ............... .$ ................ WARsRAN ................ lf (Sell ................ payment ................ minu 2) my beha price (1 ................ ................ Total down others on of cash ............$ ................ ................ paid to .: balance ss ................ ................ V.I.Nany.................. amounts 3. Unpaid y) ........ regardle company.. including ance ance comp Services tive equit repairs charges insurs, r and insur to any (nega to Othe $ ff 4. ... y for paid payo ance paid Accessorie insur trade-in onsibilit insurance Options,or companies damage A. Net $ damage no resp ...mes physical TOTAL company of physical er assu $ rages with CE $ insurance B. Cost ... nal cove . The deal paid to CASH PRI of optio REPAIRS t insur ance C. 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feature Are You Compliant with the

New Facebook Rule Changes? by Kathi Kruse

Founder CEO at Kruse Control Inc.

n case you missed it... Back in November, Facebook announced some changes that will affect Facebook Business Pages and the people who love them — or do their marketing — or both. These changes have already been set in motion and many businesses either still aren’t aware of the changes or are confused about what to do going forward. The Facebook changes effective in January 2015 could mandate a shift in your content strategy. Now that the changes are in effect, it is important to know and understand them so you can revise the content published on your Page. Not usually forthcoming about the changes, I was happy to see Facebook published information before they put the changes into effect. “Our goal with News Feed has always being to show people the things they want to see. When people see content that’s relevant to them, they’re more likely to be engaged with their News Feed, including stories from businesses.”

a marketing plan and some expert tactics. This is nothing new. The only thing new is that you can reach intended buyers more readily. This is the cost of generating leads and winning sales. As a novice Facebook marketer, you may be inclined to want to post promotional content on your page. It seems like that’s what you’d do (if you’re new or if you have the old school advertising mentality). If this is the case, then the biggest change in your Facebook content will be to stop posting organic promotional messages. Here are some consistent traits that make organic posts feel too promotional: Posts that solely push people to buy a product or in stall an app. Posts that push people to enter promotions and sweepstakes with no real context. Posts that reuse the exact same content from ads. This is an example of these types of Page posts:

Translation: People don’t want to see promotional posts in their News Feed. Deeper Meaning: If your business publishes posts with promotional content, we want you to pay for that privilege. “News Feed has controls for the number of ads a person sees and for the quality of those ads (based on engagement, hiding ads, etc.), but those same controls haven’t been as closely monitored for promotional Page posts. Now we are bringing new volume and content controls for promotional posts, so people see more of what they want from Pages.” Bear in mind, this is not a negative change. Quite the contrary. What other mediums allow you to publish marketing messages for free? None that carry the impact Facebook does. I spoke with a dealer client recently about this and was able to convince him that for a few hundred dollars per month in Facebook ads budget, he could grow his Page, drive traffic to his website and convert fans into customers. Spending marketing dollars on ads requires April 2015

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As in similar algorithm changes, Facebook told us what NOT to do and were very vague on what TO do. They did say this: “Businesses should think about their 35

Page as a cornerstone of their online identity, not simply as a publishing service.” (Because if you want a publishing service, you need to pay them.) Every brand is different; however, for the smarter brands with a solid content strategy in place, these changes will have minimal effect. If you are new or don’t have a solid content strategy, there’s still time to overcome the Facebook changes effective in January. Here’s a twist on how to get your product out there without being promotional in an organic post:

sales-oriented content of the type that Facebook cited in its post be created as Dark Posts. While sounding a bit evil, Dark Posts are simply the tactic of using the Power Editor to create News Feed– style ads that don’t actually get published to the News Feed of your page but do land in the News Feed and mobile devices of users. The balance of what you do on Facebook should be geared toward engaging, conversing with and helping your fans, along with driving them to content across your other web channels. Facebook marketing is not getting any easier, my friends. In 2015, it will become even more important to have an expert help you develop a marketing plan and assist with implementing it. While things get ultra-tricky, you’ve got to be better at playing the game. If you find social media and online marketing overwhelming or just would like to be more effective with your marketing, we offer a free marketing assessment. We’ll review the information you provide, research it, compare it to your competitors and then set up a time with you to share our recommendations. The goal is to provide you with at least three solid recommendations on how you could improve your marketing today. A marketing assessment can be found here: http://www. krusecontrolinc.com/signature-brand-audit-marketingcheckup.

It will now be essential, rather than just advisable, to plan to boost sales content on Facebook from the start. It will also likely be a good idea that specifically

Kathi Kruse is a Social Media Marketing Expert, Consultant, Blogger, Speaker, Author and Founder of Kruse Control Inc. Her Kruse Control Blog is the leading Automotive Social Media blog in the U.S.

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www.wincarsdms.com or call

817-927-5994 36

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April 2015

Please Welcome Our Newest TIADA Members Dealer Members

autoArts Pre-Owned Samuel Aflalo 6912 Edelweiss Cir Dallas, TX 75240

Big Star Cars LLC

Morty Forshpan 11479 Perrin Bitel San Antonio, TX 78217

Car Boys

Mehrdad Behimehr PO Box 472512 Garland, TX 75047

CarMax Auto Superstores SW Ft. Worth

Eric Scott 4700 River Ranch Blvd Ft. Worth, TX 76132

DG Auto Sales LLC Donavin Greenberg 3710 Airport Blvd. Austin, TX 78722

Dons Cars Inc

Tammy Doughty 521 Hwy 3 N League City, TX 77573

Down Under Auto Sales Cindy Mendez 2201 S. Lamar Blvd Austin, TX 78704

Dynamic Imports Masoud Shaygan P.O. Box 793923 Dallas, TX 75379

F-1 Motors LLC

Ferdinando Cantu 8508 S. Cage Blvd Pharr, TX 78577

Family Auto Center and Services Keith Davis 821 K. Avenue Plano, TX 75074

First Choice Auto Center – branch Jeff Salehi 5718 Babcock San Antonio, TX 78240

G & H Motors

Jeff Hansen 1101 Little School Rd Arlington, TX 76013

H & R Auto Motors – Fredericksburg Rd

Mark Jones 800 S.W. Wilshire Burleson, TX 76028 George Vrba 13284 Pond Springs Rd. Ste 101 Austin, TX 78729

Hyperdrive Auto

Moto-vated

Homer Hargrove 1000 E HWY 90 Del Rio, TX 78840

Irwin Adams 108 Reynolds St Lockhart, TX 78644

iAuto

Nicer Cars of Texas

Troy Chavez 3104 West Division Arlington, TX 76102

Robert Doggett 2005 N Bell Blvd Cedar Park, TX 78613

JD Byrider/D P Auto Sales – 35N

ORMOR, LLC dba Benz Man Auto Sales

JD Byrider/D P Auto Sales – Bandera Lucy Alvarez 6226 Bandera Rd San Antonio, TX 78238

JD Byrider/D P Auto Sales – Lamar Lucy Alvarez 2027 S. Lamar Blvd. Austin, TX 78704

JRB Motors Branch Jim Baker PO Box 5392 Arlington, TX 76005

Julio’s Motors LLC Michelle Hogan 5507-B Buffalo Path Austin, TX 78745

Loop East Motor Co., Inc. Danny Jackson 3622 Flagstone Dr Tyler , TX 75707

MCMC Lot 2

Mark Jones 7401 S. Cooper St Arlington, TX 76001

William Hayes 8045 E RL Thornton Frwy Dallas, TX 75228

MHD Auto Sales LLC

Elias Amaya 4623 Fredericksburg Rd San Antonio, TX 78201

Lucy Alvarez 11150 IH-35 North San Antonio, TX 78233

Texas Certified Motors – Main

MCMC Lot 8

Texas Certified Motors – Midland

Shane Stockton 4700 W. Wall St Midland, TX 79705

Texas Certified Motors – Odessa

Jason Anderson 2543 E. 8th Street Odessa, TX 79761

Travis Auto Group Jeremy Travis 1629 Vision Dr Abilene , TX 79602

Triple H Auto Sales

Jason Ormsby 1990 Post Oak Blvd, Ste 800 Houston, TX 77056

Platinum Autoplex – branch

Rickey Herrington 12274 Peak Cir Frisco, TX 75035

Walt’s Auto Sales, Inc

Ray Zayed 217 W Veterans Memorial Blvd Killeen, TX 76541

Sebaugh’s Auto World Tom Sebaugh 3532 Old Spanish Trail Houston, TX 77021

Sin Fronteras Auto Sales Ricardo Velazquez 4901 Airport Blvd Austin, TX 75751

South Texas Autoplex Jeff Stein 10614 IH-35 San Antonio, TX 78233

Specialty Autoplex – branch Don Brooks 3005 Division St Arlington, TX 76011

StraightLine Auto Pros Robert Fuller 29103 FM 2978 Magnolia, TX 77354

Jody Ashley 1718 N Bryant Blvd San Angelo, TX 76903

Associate members

Contact At Once!

Leslie Crews 11675 Great Oaks Way Suite 350 Alpharetta, GA 30022

Harrington Insurance & Surety Bonds Brent Alyea 2300 Valley View, Suite 1025 Irving, TX 75062

Rockwall Auto Auction Frank Post 1810 East I-30 Rockwall, TX 75087

Strategic Warranty Services (SWS)

Kyle Johnson 5605 Macarthur Blvd. #560 Irving, TX 75038 T e x a s

D e a l e r

April 2015

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feature Excerpts from The CARLAWYER

by Thomas B. Hudson and Nicole Frush Munro, Hudson Cook

Federal Developments

Another Used Car Rule Buyers Guide Extension

n January 22, the FTC extended the public comment period on proposed changes to its Used Car Rule from January 30, 2015 to March 17, 2015. In response to comments received on its December 2012 proposed changes to the Used Car Buyers Guide, the FTC announced in November 2014 that it was seeking public comment on additional proposed amendments to the Guide required by its Used Car Rule. The Commission seeks comments on potential additional revisions to the Rule that would: (1) require dealers to indicate on the Guide whether they obtained a vehicle history report and, if so, to provide a copy of the report to consumers who request it; (2) revise the Guide statement describing the meaning of an “As Is” sale; (3) move boxes to the front of the Guide for dealers to indicate whether non-dealer warranties apply to a vehicle; and (4) place a statement in Spanish on the front of the English-language Guide advising Spanish-speaking consumers to ask for the Guide in Spanish if they cannot read it in English. The FTC continues to consider comments submitted in response to its December proposal.

Do People Still Tamper With Odometers?

Evidently so. On January 6, the Department of Justice

announced indictments against two men for odometer tampering and money laundering. The indictments allege that the defendants used fictitious dealer names to buy high-mileage used vehicles from a national vehicle leasing company and altered the vehicles’ odometers to reflect lower mileages. The defendants then allegedly altered titles to reflect the false mileages and sold the vehicles at wholesale automobile auctions. The indictment alleges that, in some instances, the title indicated mileage more than 100,000 miles less than the true mileage of the vehicle, and, as a result, the defendants received inflated prices for the vehicles they sold.

Litigation

Dealership that Allegedly Threatened Buyer with Repossession for Failure to Sign New, Materially Different Financing Contract Subject to Unfair and Deceptive Trade Practices and Fraud Claims

A woman co-signed her son’s vehicle retail installment sales contract. The woman alleged that an employee of the dealership contacted her several weeks later and stated that the financing had fallen through and that she needed to sign a new RISC. The employee also allegedly stated that if she did not sign the new RISC, the car would be repossessed. A dealership employee then

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went to the woman’s home and presented her with the new RISC, which was backdated. The employee allegedly told her that the contract terms were the same. The woman alleged that the employee physically obscured the top half of the RISC when she signed it. The second RISC almost doubled the monthly payment that was allegedly required under the original RISC. After the mother and son defaulted, the car was repossessed. The woman sued the dealership for unfair and deceptive trade practices, fraud, and common law extortion. The trial court granted the dealership’s motion for summary judgment, and the Court of Appeals of North Carolina affirmed in part and reversed in part. The appellate court found that a material question of fact existed as to whether the dealership committed an unfair or deceptive act when it threatened to repossess the car if the woman did not sign the second RISC. If such an act took place, the resulting harm would be that the woman was subjected to a subsequent RISC on less favorable terms. The appellate court noted that questions remained regarding whether the woman reasonably relied on the dealership’s assertion that the terms of the second RISC were the same as the original contract. If she did, her alleged failure to read the second RISC would not preclude recovery. There was also a question regarding whether she signed the second RISC under duress because of the dealership’s threat to repossess the car. Next, the appellate court concluded that the claim for fraud should survive summary judgment based on the same evidence supporting the UDTP claim. The woman presented evidence that the dealership intentionally and falsely represented to her that it could repossess the car in order to induce her to sign the second RISC. With respect to the common law extortion claim, the appellate court found that extortion is not a cognizable tort under North Carolina law. See Hester v. Hubert Vester Ford, Inc., 2015 N.C. App. LEXIS 2 (N.C. App. January 6, 2015). Tom (thudson@hudco.com) and Nikki (nmunro@hudco.com) are partners in the law firm of Hudson Cook, LLP. Tom has written several books, available at www.counselorlibrary.com. Tom is also the publisher of Spot Delivery,® a monthly legal newsletter for auto dealers, and the Editor in Chief of CARLAW,® a monthly report of legal developments for the auto finance and leasing industry. Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. Spot Delivery, CARLAW, and the books are produced by CounselorLibrary.com LLC. For information, visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2014, all rights reserved. Single publication rights only, to the Association. (2/15), HC# 4817-1442-6145.

April 2015

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resource guide The TIADA Website: www.txiada.com

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

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov

Office of Consumer Credit Commissioner

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

800.538.1579 www.occc.state.tx.us

AuctionListings lubbock Lone Star Auto Auction www.lsaalubbock.com

2706 Slaton Hwy • Lubbock, TX 79404 806.745.6606 , Toll-Free 888.299.6606 General Manager: Dale Martin Wednesday, 10:00 a.m.

lufkin Lufkin Dealers Auto Auction

2109 N. John Reddit Drive • Lufkin, TX 75904 936.632.4299 General Manager: Wayne Cook Thursday, 6:00 p.m.

tyler Greater Tyler Auto Auction

11654 State Higway 64 W • Tyler, TX 75704 903.597.2800 General Manager: Wayne Cook Tuesday, 5:00 p.m. – Repo Lane Tuesday, 6:00 p.m. – Consignment 41

regulation matters Single Sticker Meets the Real World

“T

Langfield

he best laid plans of mice and men often go awry.”

Those looking to argue the veracity of John Steinbeck’s famous quote above will likely get no takers from the various state agencies, tax offices, inspection stations, citizens and, of course, car dealers who have been obligated to face the real-world challenges of “single sticker” implementation. As of March 1, state law decrees that counties cannot register a vehicle without verifying that the vehicle has a current, passing inspection. “Current” means at least one full month remaining at the time your paperwork is submitted to the county (the date the vehicle was sold is irrelevant here). For example, a transaction submitted to the county at any time in May 2015 must have inspection good through June 2015 or later. If the inspection expires May 2015 or earlier, a new inspection will be required. The February cover story of this magazine described in detail how “two steps, one sticker” was meant to work. The March issue of this column then tackled the issues surrounding calculation of the fees and contract documentation. Members can access the online versions of past issues at txiada.com under Texas Dealer Magazine / Texas Dealer Online. For this column we will once again assume the reader is familiar with those articles. {Side note: Not a member? Not sure what to tell you. Tracking major issues like single sticker on your own seems like a pretty steep hill to climb. If you want to be on the good guys’ team, you can join TIADA for the rest of the year for the prorated dues amount of $320.} The following information is for vehicles that you believe DO have current inspection: According to TxDMV, as long as a vehicle’s inspection is current, the county’s systems are supposed to automatically verify the date and type of the last inspection. However, if that automatic verification fails (this is reportedly happening on about 3% of transactions), the county must manually enter the date and type of last inspection. To do that, the county may require the dealer to provide a copy of the vehicle’s VIR (Vehicle Inspection Report).

by Danny TIADA deputy director

As of March 1, state law decrees that counties cannot register a vehicle without verifying that the vehicle has a current, passing inspection. If a dealer doesn’t have a copy of the VIR, we are told that you may go to the website mytxcar.org, enter the VIN and print out the result, if it shows inspection to be current and passing. TxDMV has stated that the county will accept either the VIR or the printout from mytxcar.org as proof of current inspection. A copy of the VIR may also be obtained at any inspection station, according to TxDMV. TxDMV has taken the position that, if automatic verification fails, and if a VIR or a printout from mytxcar. org does not indicate that the vehicle has current and passing inspection, that means the state has no record of a current inspection. In that case, TxDMV has stated that a new inspection must be obtained. Recommendation: In the short term, we are highly recommending that dealers include a copy of the current and passing VIR or a printout from mytxcar.org with each title transfer submitted, rather than relying solely on the automated inspection verification from TxDMV. T e x a s

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April 2015

The VI-30 Form – VIN Identification (Green Slip)

As we all know, when a vehicle was last titled or registered outside of Texas, a VI-30 form is required at the county when applying for Texas title. According to an announcement made in late February by TxDMV, the VI-30 is being phased out and will be eliminated by March of 2016. In the meantime, a VI-30 will continue to be valid for one year. In lieu of the VI-30, the standard VIR from an inspection station will serve as proof of VIN identification. A few important notes from TxDMV need to be added here: 1. When VIN certification is necessary, the VIR (or VI-30) must be submitted to the county with the title paperwork. The county is unable to electronically verify VIN certification. 2. A VIR submitted for VIN certification must be signed by the inspection station and mut be the original form. (A VIR submitted for inspection purposes only does NOT need to be signed and may be a photocopy.) 3. A printout from mytxcar.org will not be accepted in lieu of the VI-30 or VIR for purposes of VIN certification.

TxDMV has stated that the county will accept either the VIR or the printout from mytxcar.org as proof of current inspection. One final caveat (which has appeared in this space before): tax assessor-collectors are elected officials with significant authority in each county. If his or her policies are more lenient than those listed above, great! I certainly wouldn’t argue. However, if you encounter a policy more stringent than those above, contact TIADA. TxDMV has been very good about working with us to make sure the correct policies and procedures are being communicated to each county.

Come for the cars, stay for the

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April 2015

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Experience one of our core values: 43

TIADA DeAler AcADemy 2015

Dealer 101: Nobody Told Me That! This class is designed for those dealers new to the business, those considering opening their own dealership, new employees, family members or anyone else needing a refresher on the basics. We’ll cover everything you need to know to run a clean, compliant used car dealership in Texas. Topics include: n n n n n n

8:30am - 5:30pm $149 Per Registrant

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Transferring Titles Customer ID Requirements Odometer Disclosures Title & Registration Fees Acquiring Inventory Temp Tags & Metal Dealer Plates Requirements for Maintaining Dealer License The Buyer’s Guide - As Is Inspections, Emissions, Green Slip Power of Attorney

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April 2015

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behind the wheel

Martin

FAQs from the Annual Conference

tiada executive director

his time of year I start getting the same questions from our members about our annual conference, so I thought I would jot them down and share them with you.

2 and Day 3 to create more value for each day. This year we are also grouping the breakout sessions into 5 concurrent learning tracks. We also offer your choice of full conference registration, or single-day passes.

What are the dates of the Conference?

What kind of education can I expect at the Conference?

This year, the Conference will take place from August 9–12. You can come in late on the 9th and sneak out after lunch on the 11th, if you are trying to save some time but want to get in all the education.

Where is the 2015 Conference?

The Conference will be held at the J. W. Marriott Resort in San Antonio, TX. In my opinion it’s the premier luxury resort in Texas.

Are there special hotel rates?

Yes, room rates for J.W. Marriott are traditionally over $300 during this time of year but TIADA has arranged a special TIADA conference attendee rate of $199. Space is limited and this special rate will expire July 10. You can reserve your hotel today by calling 201.276.2500. Make sure to tell them you are with TIADA. Note: because of our incredible growth over the past four years we traditionally sell out of hotel rooms. Do yourself a favor and reserve your rooms early to make sure you don’t get shut out.

What is new this year?

It’s hard to tinker with a conference that has been busting at the seams but we are always looking to improve. We’ve added Deeper Dive workshops to the front end of the conference, and moved the dealer roundtables up to Day 2 so you can start your networking earlier. We distributed the breakout sessions across Day

by Jeff

The heart and soul of the TIADA Conference is our education — 37 hours’ worth, in fact. It all starts with our optional Deeper Dive sessions, followed by a healthy mix of Keynote Presentations, Learning Tracks and Dealer Roundtable Discussions. In our Learning Tracks you’ll find 20 hours of quality education, with five concurrent sessions offered across four different timeslots. Learning Tracks will be offered on Monday and Tuesday and include; BHPH, Special Finance & Retail, Serial Entrepreneur, Wildcard and The Basics. We will have our very popular dealer roundtable discussions which are a remarkably open environment where some of the top operators in the state will discuss their best practices. Attendees also use this opportunity to ask and share their honest opinions about products, services, and providers with each other in a casual, conversational setting. As I mentioned, the Deeper Dive is new this year. It’s built for a small group, four hour workshop full of interactivity, designed to give you a thorough understanding of a specific topic. Deeper Dive workshops are only offered Sunday afternoon from 1-5pm and each is limited to 30 attendees. You will be able to add one to your Conference registration for just $99, or choose to attend a la carte for $149. For more information go to www.txiada.com and click on Annual Conference. T e x a s

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April 2015

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