Texas Dealer, March 2016

TIADA’s Top Recruiters:

They want you to Just Get One

In This Issue: – TIADA Introduces New Logo – Dealer Reassignment Update – How to Defend Your Dealership Against Rogue Employees – Michael W. Dunagan on Privacy Notice Law Changes

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2016 TIADA Board of Directors PRESIDENT Phil Lathrop/VP Auto Sales Inc. 2921 S. Garland Avenue Garland, TX 75041 Office: 972.864.1300 Email: phillipl@vpautosales.com PRESIDENT-ELECT Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd.

Dallas, TX 75229 Office: 214.352.9282 / Fax: 214.352.8227 Email: cicoauto@verizon.net CHAIRMAN OF THE BOARD Brent Rhodes/Fiesta Motors 5150 Industrial Way Drive Buda, TX 78610 Office: 512.312.2201 Email: brent@fiestamotors.net SECRETARY Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net TREASURER Trey Crouch/Trey Crouch’s Wheels On Credit, Inc. 636 E. Business 83 McAllen, TX 78501 Office: 956.972.0700 Email: trey@wheelsoncredit.com VICE PRESIDENT, WEST TEXAS (REGION 1) Paul Scott/Fiesta Motors – Lubbock 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 Email: pscott@gofiestamotors.com VICE PRESIDENT, FORT WORTH (REGION 2) Tommy Gregory/Abilene Used Cars Sales Inc. 497 E.S. 11th Abilene, TX 79602 Office: 325.676.8000 Email: aucsinc@sbcglobal.net VICE PRESIDENT, DALLAS (REGION 3) Wayne Meagher/M D Auto Sales 2002 W. Main Street Grand Prairie, TX 75050 Office: 972.641.9598 Email: wayne@navchiefs.com VICE PRESIDENT, HOUSTON (REGION 4) Juan Sabillon/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: brentfordct@yahoo.com VICE PRESIDENT, CENTRAL TEXAS (REGION 5) Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net VICE PRESIDENT, SOUTH TEXAS (REGION 6) Dan Keetch/Keetch Motors 1010 S. Staples Corpus Christi, TX 78404 Office: 361.882.3541 Email: dankeetch51@yahoo.com VICE PRESIDENT AT LARGE James Hobson/H-Town Motors 3714 Dyer Street El Paso TX 79930 Office: 915.564.9797 Email: htownmotors@sbcglobal.net VICE PRESIDENT AT LARGE Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am - 4:30pm 800.442.5944 • Fax 512.244.6218 jeff.martin@txiada.com

Volume XVI

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Issue 3

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M a r c h 2 016

texasDealer

4 Officers’ Message

contents

by Kathrine Tolsch, TIADA President-Elect

6 Letters to the Editor 8 Awards Nominations 11 TIADA Scholarship Application 13 Legal Corner: Change in Law Lessens Privacy Notice Burdens for Some Car Creditors

by Michael W. Dunagan

14 Upcoming Events 18 Board of Directors Meeting Minutes 20 On The Cover: TIADA’s Top Recruiters: They Want You to “Just Get One”

by Aimee Frei-Miller

24 TIADA Annual Conference and Expo 28 Out with the Old, In with the New: TIADA Introduces New Logo 30 The Pulse of Our Economy

by Texas Comptroller Glenn Hegar

32 Regulation Matters: Dealer Reassignment Update & More

by Danny Langfield

35 How to Defend Your Dealership Against Rogue Employees

by Ed Kehl

39 CFPB Fair Lending Attack on Dealer Compensation

by L. Jean Noonan

43 New Members 43 Local Chapters 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... You can learn a lot about the association by

clicking on About TIADA from the menu on the left. There you will find our Mission Statement, our Code of Ethics, our Bylaws, the current Board of Directors and staff, and even a list of our past presidents.

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

by Kathrine

Tolsch

Sharper Image – TIADA Launches Logo Redesign

ICO Auto Sales C (Dallas) TIADA PRESIDENT-ELECT

D

o you ever look around your dealership and think the place looks a little old and tired? Or perhaps you notice your sign or business cards seem outdated? Every business needs to be refreshed from time to time.

In some cases it may be as simple as a fresh coat of paint or a carpet cleaning, and other times it may need a bigger overhaul such as a redesign of your signage and logo. Why update? All of those visuals create an impression of your business. Every time a customer comes to your dealership, it is similar to a job interview. For such an important event, you want to wear your best suit, have a fresh haircut and a clean shave. You definitely would NOT be dirty, smelly and wear a 1970’s suit!

Creating the image you want portrayed to the public can be done in many ways through your office space and display area, website, and logo. In fact, many recognizable companies have updated their logos in the past year to appeal to the current consumer trends. Some changes are very slight and others are significant. Here are a few examples:

As you can see, the trend is to simplify with a cleaner more modern look while maintaining the brand identity. There can be many reasons for change; perhaps it’s rooted in internal structure updates, the refocusing of strategic business objectives, or perhaps to have broader appeal to an ever-changing audience.

In any case, your logo, website, and office should reflect your mission, your culture, and your unique selling proposition.

4

TIADA has become the industry model for education and legislative involvement. To align with our ongoing progress and growth, we are currently in the process of improving our website and internal systems. We also have a new logo which we are officially introducing in this issue (see page 28).

The association is strong and thriving in 2016 and it is looking very sharp. Don’t you think so?

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letters to the editor Succession Plan

L

behind the wheel

by

Jeff Martin

n Hope Is Not A Pla lot has changed in 25 years. Before, I ast week during a flight I was readwas worrying about our kids and who ing the article ‘Hope is Not A Plan’ W would take care of them if something in Behind the Wheel (January ishappened to me and my wife. Now, I’m sue) and it reminded me when we first working on the big kid in the room, started working on the succession plan a “the business.” few years ago. By the way, your article was I’m guilty for not being more diligent great. I hope everybody reads it and takes doesn t nuts if your business plan. on To be blunt, you are emergency successi en in keeping the succession plan current writt step one. e som have and relevant. Your succession plan is I updated my will 2 years ago which, something just like your business. It is I’m embarrassed to say, had not been a living and breathing entity and not just something updated in 25 years. Well, as you might imagine, a you can forget about. I covered a lot of that when I re-wrote my will. But, your article made me think about adding to the plan.

TIADA EXECUTIVE DIRECTOR

and ask yourself primary functions the most imsix to eight of your tomorin your absence. Now, at your dealership who would do each p survive? hat would happen could your dealershi unexpectedly didn’t doesn’t have portant question — row morning if you come nuts if your business What if you didn’t To be blunt, you are More imporshow up to work? y succession plan. weeks or as long in for a week, two some written emergenc to put your business and your your in, or couldn’t come survive p want your dealershi tantly, do you really were to happen to as three months? Could peril if something livelihood in such absence? d ? unplanne of Directors employee the TIADA Board you or another key you may think you At our last meeting succession plan for two person operation y a are you emergenc If who will be reviewed the TIADA or departure of the It’s pretty easy to guess don’t need a plan. to disability, death But do you I can tell contingencies due if you’re not around. informaAs the Executive Director, I suppicking up the slack Executive Director. but one the passwords or contact ask your g project to work on know where to get and you it is a frightenin a six page road down the hallway will We currently have tion if you can’t walk , y succession plan port whole-heartedly. , authority, oversight partner? An emergenc or functions key ts; spouse There may be no map that documen compensation too. plan. It also includes is better a communication force you to discuss inthat conversation but, compensation and contacts, ation key our all of change in compens a comprehensive inventoryThis plan not only establishes there is a lot less emotion. online s. to have now when find can you formation and password create a calm in what might templates of will There are a number and we will be happy a clear direction that time, it will also crecall the state office to free will disorderly feel that and or plan our s, members, seem an uncertain electronic copy of e among employee to provide you an you can have a ate stability and confidenc that the association can move less than four hours so plan in place, get you started. In advertisers and sponsors pattern.

After you have your in an indefinite holding complete plan in place. be seen again. You must commembers forward and is not to a number of board don’t file it away never put it in action After the board meeting, plan to use as a to others so they can have a copy of the municate the plan need to make asked if they could and small dealto time you will also we review if needed. From time own dealership. Large template for their to your plan. At TIADA if.” “what updates or about member changes r during our new board ers alike started talking due to some out for two months our plan every Septembe have a key employee move.

What if you were we auction and Who would go the orientation or whenever a succession plan. Don’t let a unforeseen accident? accounts? Who would service your Don’t start 2016 without m or worse yet, purchase cars? Who Who would down your momentu ions with the bank? brief absence slow would have conversat sales team? the with business. meet your would kill pay the bills? Who p? Write down goals for the dealershi Who would set the

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January 2016

46

Greg Zak, Dixon Motors, Houston

Seismic Change

I

just read the ‘SEISMIC Change to Titling’ in the February publication. I just wanted to say kudos to Danny Langfield and Change to Titling: the other TIADA folks Goodbye, White PO A... Hello, Secure Dealer Reassig ment for working with the TxDMV and playing a huge role in the solution to the ‘No Title Present’ problem we have been facing for so many years. We thank you guys for continuing to lobby for us — and that is why we are proud members of TIADA. Now, if you can get Dallas County to start accepting new WebDealer accounts DRINKS ARE ON ME :) Thanks for all you do!!!

In This Issue :

– “Single Sticker” Part Deux – Michael Dunagan on Fraudulent Mechanic’s Lien Claims – Market Survey of Car Buyers – What You Need to Know About Millennials and Why It Matters

FOUND IT. Improve Customer Payment Performance and Reduce Repossession Risks.

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TIADA Awards and Scholarship The Rundown

compiled by Texas Dealer staff

Quality Dealer of the Year Award

our members play a vital role in fostering strong relationships within their communities. This award was created to honor those independent dealers in Texas. Nominate your dealership today. Application deadline is June 1st.

T

he Texas Quality Dealer of the Year award is the highest honor awarded to a TIADA member each year. Nominees demonstrate exceptional business ethics, service to TIADA, good citizenship and service to community. The TIADA winner will be eligible for the National Quality Dealer Award which will be presented at the NIADA Convention the next year. Nomination deadline is April 17th.

Community Leader Award

I

Independent Award

T

he Independent Award is given to an individual outside of the industry (ie. politicians; media members; non-industry supporters) who have gone above and beyond in their support of the industry showing a true independent spirit. Nomination deadline is June 1st.

ndependent dealerships across the state contribute every day to their communities. TIADA would like to recognize those dealerships that selflessly give back and work to make this the great state of which we are proud. Dealerships and their staff enhance and support their communities in many ways. Through charity events, volunteerism, special innovative projects, sponsorships, financial contributions, or by other charitable activities,

The Marvin Norwood Scholarship

T

his scholarship was established by the Board of Directors and is funded by the association. One applicant who is entering or currently enrolled in an accredited college or a trade school will be awarded this $1,000 scholarship. Application and required documents must be received by May 1st.

Nominations for all of these awards can be done online. Visit www.txiada.org for more information and to submit your nomination. There you can also find the application for the $1,000 Marvin Norwood Scholarship (also see page 11). Go ahead, nominate someone today!

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texas independent automobile dealers association

TIADA

ATTENTION STUDENTS!!!

texas independent automobile dealers association

$1,000 MARVIN NORWOOD SCHOLARSHIP

SCHOLARSHIP APPLICATION

DEADLINE

May 1, 2016

Date:

{Applications and/or any required documents received after May 1, 2016 will NOT be accepted.}

Name:

Criteria and Guidelines

Email:

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.

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

3. Each applicant must complete the application form.

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).

March 2016

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DOB:

Address: City:

State:

Zip:

State:

Zip:

Telephone Number: High School Last Attended: Address: City: Dates of Attendance: Date of Graduation: Other High Schools Attended (Names and Addresses):

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

11

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March 2016

legal corner

Change in Law Lessens Privacy Notice Burdens for Some Car Creditors

W

e all get them from time to time. They come with our insurance premium notices, in our bank statements, and in our credit card bills. They are innocent-looking pieces of paper that most likely go right to the trash can.

“They” are privacy notices, the formal notices from banks, insurance companies, and credit card companies, amongst others, informing us what the companies’ policies are with regard to exchanging our personal information with other companies. In most cases, we are given the opportunity to “opt out” of some of the sharing practices, by filling out a portion of the form and returning it to the issuing company.

One thing all these companies have in common is they fall within the definition of “financial institution” that appears in the GrammLeach-Bliley Act (G-L-B) and the FTC’s Privacy Rule. And, at least one thing that many car dealers have in common with the big boys of the financial world is that they too are often deemed to be “financial institutions” under the very expansive definition.

The good news is that an act of Congress, signed into law by President Obama on December 4, 2015, and effective upon signing, eliminates for most BHPH dealers the requirement that an annual reminder of the dealers’ privacy policies be sent to each customer on an open account (more on that later).

The Privacy Rule applies to car dealers who (1) extend credit in connection with the purchase of a car for personal, family, or

March 2016

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household use (typically a BHPH transaction), or (2) arrange for someone to finance or lease a car for personal, family, or household use (typically an indirect lender transaction). There are two occasions when privacy notices are generally required to be given: (1) no later than when a retail installment contract is signed, and (2) annual follow-up notices to customers whose accounts are active.

Here’s how the rule applies to different types of dealer sales:

Cash Sales

The Privacy Rule does not apply on a cash sale or sale in which the buyer arranges financing on his or her own directly through a lender. No privacy statement has to be given by the dealer in these situations.

by Michael

Dunagan

W.

TIADA GENERAL

COUNSEL

...an act of Congress, signed into law by President Obama on December 4, 2015, and effective upon signing, eliminates for most BHPH dealers the requirement that an annual reminder of the dealers’ privacy policies be sent to each customer on an open account.

Buy-Here-Pay-Here Transactions

While they technically fall under the requirements of the G-L-B and the Privacy Rule, BHPH dealers are not the main target of the rule’s requirements. The central thrust of G-L-B and Privacy Rule is to limit sharing of personal information

(name, address, phone number, driver’s license number, and social security number, for instance) with unaffiliated third parties. BHPH dealers (unlike banks, insurance companies, and credit card companies, and maybe franchised dealers) typically don’t sell customer lists or otherwise share customer information with third parties. When they do share personal information with third parties, the sharing most often 13

falls under one of the exceptions to the Privacy Rule (as explained below).

Upcoming Events

TIADA DEALER ACADEMY

Register online at www.txiada.org

April 2016 11 Keeping Your Dealership

Legal and Compliant Holiday Inn 5247 S. General Bruce Drive Temple, TX 76502

May 2016 11 Better BHPH Financials

Dallas, TX

June 2016 6 Keeping Your Dealership

Legal and Compliant Tyler, TX

22 Better BHPH Financials

Houston, TX

OTHER TIADA EVENTS April 2016 18 TIADA Board of Directors Meeting Austin, TX

July 2016 24 TIADA Board of Directors Meeting San Antonio, TX

24-26 TIADA Annual

Conference and Expo J.W. Marriott Hill Country Resort and Spa San Antonio, TX

14

Pre-sale

A BHPH dealer who does not share personal information with third parties, except under the exceptions discussed below, would not be obligated to give a privacy notice to a potential buyer until the person actually entered into a contract. If the dealer intends to share personal information with third parties beyond the allowed exceptions, it would be necessary to give a privacy notice with an opt-out provision upon the receipt of personal information.

Post-sale

Most financial institutions give their customers the longform privacy notices that disclose to whom, under what circumstances, and which types of personal information might be shared with unaffiliated third parties.

If a BHPH transaction is completed, the dealer would have to give the appropriate privacy notice, no later than the time of the signing of the retail installment contract. And, prior to December 4, 2015, BHPH dealers were required to send annual follow-ups of privacy policies to each customer with an open account. As will be explained below, most BHPH dealers are now exempt from sending the annual follow-up.

Retail or Indirect Transactions

though the dealer intends to assign the contract immediately afterward to a third party.

After the assignment to the third party takes place, any responsibility for sending the annual notices shifts to the assignee of the contract, and the dealer is relieved of that duty.

However, the dealer must continue to honor the terms of the privacy policy with regard to protecting the personal information of the debtor.

Because at the time of signing the dealer is listed on the retail installment contract as the seller and creditor, the same rules as those that apply to the BHPH dealer would apply here. That is, a privacy notice would have to be given no later than the time of the signing of the retail installment contract, even

Third-Party Lenders

Once a third-party lender takes assignment of a retail installment contract, the third-party lender must deliver its privacy notice to the customer within a reasonable time after assignment. The thirdparty lender can, however, arrange to have the dealer deliver the thirdparty lender’s privacy notice at the same time the dealer gives its notice. And, as mentioned above, the third-party lender, as the owner and holder of the obligation, must comply with the annual notice requirements (unless exempted under the December 4 amendment).

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Turn-downs

If the dealer denies the extension of credit to an applicant, and has no intention of sharing this person’s information, then no privacy notice is required. (However, an Adverse Action Notice under the Equal Credit Opportunity Act and Regulation B is probably required, but that’s a topic for another article).

The Opt-Out Notice

Most financial institutions give their customers the long-form privacy notices that disclose to whom, under what circumstances, and which types of personal information might be shared with unaffiliated third parties. If they intend to share personal information that is not exempt under the exceptions to the Privacy Rule, they must give their customers the opportunity to opt out of having certain types of information shared. The opt-out is usually exercised by sending in a

tear off coupon or calling a toll-free number.

Since most BHPH dealers don’t share personal information outside the allowable exceptions, the giving of an opt-out is usually not required, since there is nothing for the customer to opt out from.

Therefore, the BHPH dealer (and other “financial institutions” that don’t share personal information with unaffiliated third parties) can use simplified short-from privacy policy forms that don’t have opt-out language.

The Exceptions

Much has been said to this point about the exceptions to the Privacy Rule and how exchange of personal information under an exception doesn’t constitute a violation of the Privacy Rule or trigger the requirement of giving an opt-out opportunity. What are the exceptions that allow the sharing of information?

e most common type of Th sharing of information by BHPH dealers is the information given to collectors and repossession agents to locate debtors and repossess vehicles when a debtor is in default. This information can be shared under an exception to the opt-out rules for thirdparty vendors, as long as only information necessary to carry out the purpose of the sharing is given, and as long as the thirdparty vendor agrees in writing (1) not to pass the information along to a third party and (2) to protect the information and properly dispose of it when it is no longer needed.

Another common exception is the “secondary market sales” exception that allows the holder of a car receivable to pass on personal information to a third party in conjunction with the sale or assignment of the receivable to

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a third party without violating the Privacy Rule or triggering the optout requirement.

Credit information given to credit reporting agencies is also exempt. That is, a creditor who routinely reports credit information to a credit bureau is not considered to be sharing or trading personal information.

Personal information can also legally be given to law enforcement officers, or otherwise to comply with federal, state or local laws. Some due diligence should be exercised to verify that the person requesting the information is in fact a law enforcement officer.

Information can be shared at the request of and with the permission of the debtor (such as pay-off information requested by a bank or dealer taking a vehicle in trade), or to comply with a subpoena, or a civil, criminal or regulatory investigation.

The Short-Form Privacy Notice

The dealer who doesn’t share customers’ personal information with third parties, other than under the exceptions described above, can use a simplified, short-form notice form. The simplified notice describes the categories of nonpublic personal information collected; states the fact that the creditor does not share nonpublic personal information about customers to third parties, except as authorized by law; and describes the steps taken to protect the privacy and security of the information. No opt-out provision is necessary. A form that meets this requirement is available from Burrell Printing (800-531-5234 or www.burrellprinting.com). The Burrell short form comes in duplicate with a signature line to acknowledge receipt. One copy is given to the debtor at the time of closing and the other should be kept in the dealer’s file. Many dealer

management software programs also have forms available.

The Annual Follow-Up

Under the law and rules prior to December 4, 2015, all “financial institutions” were required to send annual follow-up notices (often just a copy of the original privacy notice given at closing) to customers with open accounts. After December 4, those creditors who qualify for the short-form notice, and who don’t change their privacy policy during the year, are now exempt from sending the annual follow-up.

Creditors who don’t qualify for the short-form notice and must use a “long-form” notice that has an optout option are still required to send annual follow-ups.

Here’s the bottom line for BHPH dealers after passage by Congress of the December 4 amendment: Dealers who only share customers’ personal information under the allowable exceptions to the Privacy Act can use a short-form privacy disclosure statement at closing.

Those dealers who qualify for the short-form statement, and who do not change their privacy policies during the course of the year, have no obligation to send annual follow-ups.

Dealers who share customers’ personal information beyond the exceptions with third parties, and are thus required to use the long-form disclosure statement with an opt-out, are still required to send annual follow-ups to customers who have open accounts with the dealer.

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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board of directors meeting minutes

January 18, 2016 | Hilton Austin Airport, Austin, TX

compiled by Texas Dealer staff

At its meeting on Monday, January 18, 2016, TIADA took the following actions: President Phil Lathrop called the meeting to order at 9:59am.

Minutes of the Last Meeting

Secretary Greg Zak presented the minutes of the last Board of Directors Meeting.

A motion was made to accept the minutes.

Moved by Juan Sabillón, seconded by Robert Beck – PASSED

Treasurer’s Report

Treasurer Trey Crouch presented the Treasurer’s report.

A motion was made to accept the report.

Moved by Kathrine Tolsch, seconded by Greg Zak – PASSED

President’s Report

Phil Lathrop discussed his D.C. trip involving NIADA lobby day. He recapped his involvement as a “small entity representative” at a CFPB stakeholder’s meeting regarding the elimination of class action waivers. He announced he will be attending chapter meetings with legislators in Dallas and Houston.

Executive Director’s Report

Executive Director Jeff Martin introduced the 5 year strategic plan exercise.

He updated board on recent activities with NIADA’s BHPH commission.

Jeff also talked about attending Woodlands Financial Conference.

Deputy Executive Director Danny Langfield talked about recent visits to Atlanta, visits with Cox Automotive, GIADA, and Repay.

He provided an update on the new association management software and new TIADA website progress.

Executive Session

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investment activity for FY15.

Trey Crouch provided a FY16 budget update.

Jeff Martin updated BOD on legislative and regulatory matters, including comptroller issues relating to RFC’s, OCCC matters, and TxDMV updates regarding POA and secure dealer reassignments.

Danny Langfield provided an update on pre-licensing dealer education and the associated online development efforts.

Jeff Martin updated BOD on the 2016 annual conference sponsorships and schedule of events.

Old Business

A motion was made under Article III Section 7 of the bylaws to revoke the membership of Ewing Insurance, and all principals in that company, either singularly or as principals in any current or future entities, from remaining or becoming a member of TIADA. Upon request by Ewing Insurance, within a 180 day window of this decision by the Board of TIADA, all membership dues collected from 2010 to 2016 will be refunded to Ewing Insurance.

Moved by Juan Sabillón, seconded by Trey Crouch – PASSED

New Business

A motion was made to accept Dealer Socket‘s Business Partner Application.

Moved by Kathrine Tolsch, seconded by Ryan Winkelmann – PASSED A motion was made to renew ADESA’s Business Partner agreement.

Moved by Greg Zak, seconded by Kathrine Tolsch – PASSED A motion was made to adjourn the meeting.

Moved by Kathrine Tolsch, seconded by Wayne Meagher – PASSED Meeting adjourned at 5:59p.m.

The board recessed to executive session from 3:10p.m.– 3:28p.m.

Respectfully submitted, Greg Zak, Secretary

Jeff Martin provided a membership update.

Danny Langfield updated the board on the Business Partner program as well as all associate member

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

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on the cover

by Aimee Frei-Miller

TIADA Member Services

TIADA’s Top Recruiters:

They want you to Just Get One

Ahmed Belmeshkan

New Rio Grande Motors, Inc., Fort Worth

31 New Members in 2014 79 New Members in 2015

W

hat a year 2015 was for TIADA — we ended the year with 1,495 members!

A lot of the credit for that number can go to the three gentlemen featured on our cover: Wayne Meagher (M D Auto Sales in Grand Prairie), Ahmed Belmeshkan (New Rio Grande Motors in Fort Worth) and Mark Brown (Red Carpet Auto Sales in New Braunfels) who individually recruited 100+ members over a 2-year period, earning each of them the distinction of the Crystal Eagle award handed out by NIADA. To have just one winner represent Texas is amazing... to have three winners from Texas is astounding! And, to top it all off, each man is well

20

Wayne Meagher

M D Auto Sales, Grand Prairie

80 New Members in 2014 59 New Members in 2015

Mark Brown

Red Carpet Auto Sales, New Braunfels

42 New Members in 2014 58 New Members in 2015

on his way to earn a second Crystal Eagle this year (OK, OK... Wayne is on his way to earn his fourth award... but who’s counting?).

When you ask Wayne, recipient of three Crystal Eagle awards, why he continues to go out and recruit new members his answer is quite simple, “While I am limited in my ability to support TIADA, I feel that assisting in the recruiting of new members will provide TIADA strength in numbers, new blood with new ideas, and hopefully new leadership to help us grow and represent our industry in the future.” You see, Wayne realizes that the backbone of a strong industry is to get as many dealers T e x a s

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March 2016

D e a l e r

tex

as ind ep

Just Ge t One e

dealers

T e x a s

nt autom o

le

March 2016

e nd

bi

involved in the process but to not limit it to the good ol’ boys; the face of the industry is ever changing and Wayne realizes that we need those young dealers, too.

I know what you’re thinking — I can’t put up numbers like those guys! — and the good news is that you don’t have to. It doesn’t take a superstar to make a difference; you need to “Just Get One.” As impressive as the efforts of Wayne, Ahmed, and Mark are, they don’t get ALL of the credit. We had another 42 dealers help recruit new members to the association... and their combined efforts brought in another 80 new members this past year.

I already mentioned that we ended the year at 1,495 members.

Imagine if each one of you stepped up to the challenge presented at the 2015 Annual Conference by TIADA

president Phil Lathrop and “Just Get One.” That’s right, we would be able to double our numbers and push our membership near the 3,000 mark. That’s a lot of members and you only had to “Just Get One.” That’s the way it works — it’s the power of numbers through the magic of teamwork that we can make a difference. Can you imagine the kind of influence we would have during the upcoming legislative session? TIADA is here to fight for the rights of all independent dealers at the state Capitol and we have a much stronger voice when we stand united.

“Just Get One” isn’t reserved just for the “good ol’ boy” that’s been in this industry for a while; it isn’t just for the dealer in the “big city” competing with five or six other dealerships on the same block; and it isn’t just for the megadealer with 500 cars on his lot. Even if you are just starting in the business or new to the association, think about the benefits of your membership and the reasons why you decided to join TIADA — then go out and share that with another dealer you may know and “Just Get One.” Believing in the benefits of membership and sharing that passion with others is exactly what Ahmed does. “I believe in recruiting new members so they can have the support TIADA provides to dealers like getting legal assistance and staying up to date on laws and regulations that directly impact their dealerships. The opportunity to network with other dealers across the state is just an added bonus,” Ahmed said, and then he added in regards to being this year’s top recruiter and a 1st time recipient of a Crystal Eagle award, “I appreciate the opportunity to be recognized by my peers for work I enjoy doing.”

We couldn’t agree more so we want to encourage each of you to go out and share the benefits of TIADA membership with other dealers so we can reward you for your efforts, too. When a dealer you refer joins the association, you will have a chance to earn gift cards, a free trip to the TIADA Annual Conference & Expo this July, and even a chance to go to Las Vegas

a s TIADA n s o c i at i o

TIADA President Phil Lathrop encouraging members to “Just Get One.”

21

for the NIADA convention on us. And you will be recognized with a “Just Get One” pin to proudly wear as well as have your name published in this magazine. TIADA will do our part to help you earn these rewards. We have an online referral form that you can complete at any time, printable membership applications for you to pass out to potential dealers, and opportunities for you to help us during our TIADA Day at the Auction Tour stops; all you need to do is say the word and start recruiting.

Mark Brown, a long-time member and past president of TIADA, decided to do just that and jump on to the recruiting program back in 2011; he ended up recruiting just one new member that year. Well, he continued to talk to dealers he knew, would help us at the TIADA Day at the Auction Tour stops, and steadily added new members to the association each year. Mark said, “The best thing about recruiting new members is getting to meet the next generation of dealers; their energy and excitement is contagious.” He added, “I do this out of love of the association and love of the car business.” Now, here he is on the cover as a recipient of the Crystal Eagle award — and it all started when he “Just Got One”.

So, who else wants to receive an all-expense paid trip to the NIADA conference next year and stand next to these gentlemen and represent Texas? It all starts when you decide to go out and “Just Get One.”

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www.teiinsurance.com 22

T e x a s

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JUST GET ONE Take the Recruitment Challenge in 2016!

Actually, have 4 cups.

d en

ent

auto

mo

le

p

Just Ge t One

bi dealers

Win big in Vegas!

as ind e

when a member you refer joins the association.

Have a cup of coffee on us!

tex

Earn a lapel pin

Recruit a new member and we will send you a $10 gift card — and we’ll do that for the first 4 members you recruit.

Receive top-notch education... for FREE!

a s TIADA n s o c i at i o

(and growing the association is a WIN for all of us!)

Relax with the family and turn work into pleasure.

en

de

nt autom

o bi

tex

dealers

as ind

le

ep

Recruit 20 new members and you will receive an all-expense trip to Las Vegas for you and a guest to attend the NIADA national conference.

a s TIADA n s o c i at i o

Recruit 10 new members by June 30th and you will also receive your hotel room for free (up to two nights) at the JW Marriott Resort & Spa during conference.

Recruit 5 new members by June 30th and you will receive one free registration to the 2016 TIADA Conference & Expo.

Contact the TIADA office for details.

www.txiada.org

July 24–26,

2016

JW Marriott San Antonio Hill Country Resort and Spa * www.TiadaAnnualConference.com

Learning T

24

R

A

BHPH

Special Finance & Retail

The lienholder’s learning lab

Winning in the indirect lending game

C

K

S

Serial Entrepreneur Big time achievers from outside the auto world T e x a s

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March 2016

Back for his third TIADA appearance. . . our most requested keynote speaker ever. . .

WHAT ARE past attendees

SAYING?

“Ingram’s speech was excellent.”

– Chelsea Furrow, Auto Connection, Amarillo

“Can we give Ingram two hours?

Everyone I spoke with thought he was amazing.” – Keith Hagler, Taylor Auto Credit, Taylor

Ingram Wal ters

“He is always great!” – John Freeman, Galena Park Motors, Inc., Galena Park

“Walters had a very good, simple message and was extremely entertaining.” – Michael Thomasson, MCMC, Burleson

“Ingram’s presentation was excellent, that was my favorite.” – Julie Herrington, F & E Auto Sales, Inc., Harlingen

Compliance

Technology

“Loved his presentation!”

– Eddie Massey, Massey Motors, Waco

“Ingram Walters was beyond great.”

Digital weapons for measurable success

Defense against the dark arts March 2016

T e x a s

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– Greg Zak, Dixon Motors, Houston

“The very best.” – Robert Hernandez, Auto Solution, San Antonio

*TIADA has arranged a discounted rate of $199/night for conference attendees.

Call (210)276-2500 for reservations.

25

Thank You to Our Current Sponsors P L AT I N U M

GOLD

S I LV E R

Specialty Sponsors H a p p y H o u r E X P O : Te x- C a p F i n a n c i a l , L L C n M e e t i n g D i r e c t i o n a l S i g n a g e : P e r i t u s P o r t f o l i o S e r v i c e s Monday–Wi-Fi: Alliance Auto Auction n Hotel Keycards: ADESA, Inc. n Guestroom Mirror Clings: DealerSocket E s c a l a t o r C l i n g : A m e r i c a ’s A u t o A u c t i o n o f Te x a s

Bronze PLUS and Bronze A r c a n a I n s u r a n c e S e r v i c e s , L P n A u t o m o t i v e F i n a n c e C o r p o r a t i o n n A u t o t r a d e r n A u t o Z o o m n C a d e n c e I n s u r a n c e n C A R FA X n C a r m a x A u c t i o n s Collateral Protection Insurance Associates n Copart Auto Auction n Equifax n GO Financial n Insurance Auto Auctions n Ituran USA, Inc. K e v i n S m i t h I n s u r a n c e n L a n e G o r m a n Tr u b i t t , P L L C n L O B E L F I N A N C I A L n N e x t G e a r C a p i t a l n P a s s T i m e n R o u t e O n e n S D A , I n c .

S i g m a P a y m e n t S o l u t i o n s n S k y P a t r o l n S o l u t i o n s b y Te x t n S S W D e a l e r S u p p l y n S t r a t e g i c D e a l e r S e r v i c e s n U n i t e d A c c e p t a n c e I n c . vAuto n Waymer & Associates n Wayne Reaves Software & Websites n Westlake Financial Services

S p o n s o r s h i p & E x h i b i t i n g O p p o r t u n i t i e s A r e S t i l l A v a i l a b l e . 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 26

T e x a s

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March 2016

feature Out with the Old, In with the New: TIADA Introduces New Logo

1974

1980

1986

28

2003–2006

T e x a s

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March 2016

Big Valley AA Amarillo Houston Corpus Christi Donna

Austin San Antonio Austin • Dallas Houston

Dallas • DFW • El Paso San Antonio • Houston Texas Hobby Longview • Waco • Abilene

Carrollton

San Antonio Dallas • North Houston

Every one of these auctions will give you a

Waco

FREE $200 Buy/Sell Fee

2001–2016

if you can answer this question correctly:

Are You a TIADA Member? q Yes q No (HINT: The answer needs to be YES)

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

Lubbock • El Paso • San Antonio • Houston Permian Basin • Dallas • Houston North Austin • Corpus Christi

Manheim Manheim DFW Dallas

Arlington Texas Independent Automobile Dealers Association

Manheim Manheim El Paso San Antonio Manheim Manheim Houston Texas Hobby San Antonio Austin

Beaumont Dealers Auction

Dallas Houston America’s America’s AA Austin/ AA Dallas San Antonio America’s AA North Houston

Alliance AA Longview Alliance AA Waco

Alliance AA Abilene

The 2013 VIP Auction Card

1st Choice AA Houston

Beaumont El Paso Dealers Independent AA Auction CM

USA AA Company Amarillo Auctions Heart of Texas Houston AA AA Waco Metro AA Dealers AA Austin of OKC Texas Lone1 Texans Star AA1 Can! Cars Carrollton1 Arlington

Now with 39 locations all across the great state of Texas.

Only for our members — only from TIADA.

Big Valley Big Valley Corpus AA Christi Donna

Lubbock El Paso

San Antonio Houston

Permian Basin Dallas Houston North Longview

Austin Corpus Christi

* valid for sell fee only at Insurance AA locations.

P.O. Box 127 Round Rock, Texas 78680 I 800.442.5944 I 512.244.6060 I 512.244.6218 fax I w w w . t x i a d a . c o m

TIADA DEALER ACADEMY 2016 Education Offerings for Winter/Spring 2016

8:30 a.m. - 12:00 p.m.

AND NOW...

9:00 a.m. - 4:00 p.m.

The craziness of a busy BHPH operation can make it tough to plan for future growth. But sometimes you need to take a few hours off from working IN your business so you can work ON your business. Participants will learn:

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

• How to increase their credit line, and/or establish a new line • Cash flow management (the key to future planning) • How to determine how many units and dollars you need on hand • Static pool analysis—what it is and how it works • How to properly value inventory, including turn time • Proper expense allocation and costing MEMBERS - $99 (includes up to 3 attendees for dealership) NON-MEMBERS $199

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

• What is the Comptrollers position on GPS units?

• Credit Card Convenience Fees – what is allowable?

• Consumer Financial Protection Bureau (CFPB) – how might it affect dealers?

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

MEMBERS - 1st Registrant $149, each additional $99 NON-MEMBERS $299

Wednesday, May 11, 2016 – Dallas Wednesday, June 22, 2016 – Houston

Monday, February 8, 2016 – Houston Monday, April 11, 2016 – Temple Monday, June 6, 2016 – Tyler

An Introduction to Transferring Titles This self-guided online course is designed to walk you through the process of a successful title transfer and is best suited for people new to transferring titles or those who want to brush up on the basics.

MEMBERS $49 / NON-MEMBERS $99

TIADA For details and registration, visit www.txiada.org/DealerTrainingCenter

Register online at w w w . t x i a d a . o r g or by phone at 8 0 0 . 4 4 2 . 5 9 4 4 .

Texas Independent Automobile Dealers Association

texas independent automobile dealers association

TIADA texas independent automobile dealers association

March 2016

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feature

The Pulse of Our Economy

F

or the past few months, I’ve been driving across the state, meeting with Texans from all over, talking about our economy — and doing quite a bit of listening, too.

I’ve found that Texans are very interested in the state economy, and a little worried about the tumultuous times in which we live.

Their questions — How are we doing? And where are we headed? — are basically pretty simple, even if the answers aren’t.

Supplying those answers is my job, of course. As Texas’ chief financial officer, I’m charged with managing the state’s finances and monitoring the economy to make sure our revenues stay strong. Our economists and researchers have to keep their eyes fixed on the road ahead, staying abreast of trends and events that could affect our economy and the tax revenues it generates.

Despite a slowdown caused by slumping energy prices, I’m happy to report that the Texas economy is doing well — particularly in comparison to most other states, many of which are still mired in one of the weakest recoveries on record.

In Texas, we added 319,000 nonfarm jobs in fiscal 2015, more than any other state except California. Our unemployment rate

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CELEBRATING OUR 28TH ANNIVERSARY

MARCH MADNESS EVENTS COMING SOON VISIT US ON THE WEB & FACEBOOK FOR MORE !!!

by Glenn Hegar Texas Comptroller

has fallen from an average of 5.3 percent in fiscal 2014 to just 4.4 percent in 2015, well below that of the U.S. Our state’s diverse economy puts us in a good place.

Because car and truck sales reflect the overall mood of consumers, I’m happy to report Texas’ car dealerships are on the high road.

In 2014, the state’s auto dealers paid nearly $40 million in franchise taxes. Add another digit to our fiscal odometer for fiscal 2015 motor vehicle sales and use tax collections, which topped out at $4.2 billion — a 7 percent increase from the previous fiscal year. We estimate that number to reach $9.2 billion for the 2016–2017 biennium.

Texas auto dealers sold an estimated $64.6 billion worth of cars in fiscal 2015, 7 percent more than in 2014.

Motor vehicle sales are a valuable source of state revenue, but their impact on a community’s workforce is equally important. Auto dealerships support local economies by providing a wide range of jobs including accounting, marketing, sales, machining, mechanics and more.

Although car and truck sales represent a solid contribution to our economy, there’s no question that our overall growth will be more moderate than it was during the shale rush. We expect employment growth to drop into lower gear, at less than 2 percent, but the unemployment rate should remain steady, at about half of what it was during the Great Recession.

In the next two years, we expect the growth in Texas’ real gross state product (GSP) and personal income to track U.S. growth rates pretty closely. Our GSP grew by 2.4 percent in 2015 and should do about the same in fiscal 2016 and 2017.

Texas personal income rose about 4.8 percent in 2015, and we estimate similar growth rates over the next two years.

As for state revenues, tax collections in the 2016–17 biennium should generate more than $93.1 billion, about 1.5 percent more than in the previous budget period. Our most recent budget was well below the state’s spending caps, and we anticipate no problem in meeting our obligations over the next two years.

As the state’s chief financial officer, I’ll continue to monitor the Texas economy closely, and inform you of any significant changes. As always, you can stay up to date via our website, Twitter and Facebook accounts.

Glenn Hegar is Texas Comptroller of Public Accounts. For more information on the Texas economy, please visit the Comptroller’s website at Comptroller.Texas.Gov

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T e x a s

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March 2016

TIADA Dealer Academy 2016 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 This class has been approved by NIADA as a Certified Master Dealer continuing education course.

Monday, April 11, 2016 Sponsored by:

Collateral Protection Insurance www.cpiai.com

Temple, Texas

Seminar will be held from 9:00am - 4:00pm Holiday Inn 5247 S. General Bruce Drive • Temple, TX 76502 • 254.778.5511

discount pricing for multiple attendees!

MEMBERS – First registrant $149, each additional $99 (Must be from same dealership)

www.passtimeusa.com

NON-MEMBERS – $299 Register online at w w w . t x i a d a . o r g or by phone at 800.442.5944.

Texas Independent Automobile Dealers Association

regulation matters Dealer Reassignment Update & More

by Danny

M

arch is upon us, and no doubt the changes to the “two steps, one sticker” program, documented in this space last month, are garnering a fair share of attention at your dealership. As you are probably aware by now, vehicles sold by a dealer on or after March 1 will need to have completed a passing inspection in the 180 day period preceding the sale date in order to be registered. But that was last month’s column!

This month let’s have a little deeper look at the secure dealer reassignment form (VTR 41-A) and its appropriate use when title is not present at closing.

For an overview of this matter, please see the cover story from the February issue of this magazine entitled, “Goodbye, White POA... Hello Secure Dealer Reassignment.”

VTR 41-A Not Applicable

One situation not discussed in that story involves the retail resale of a vehicle that has been repossessed by the lienholder. As BHPH dealers know, when a repossessed vehicle is resold, the dealer signs the title as the seller using an affidavit of repossession, and the new customer signs as the buyer. These signatures are entered on the first box labeled “Assignment of Title” on the back of the title. So, if that title is not present at closing, could the dealer have the customer sign the VTR 41-A instead of the title? Unfortunately, the answer is no. Before a reassignment form can be used, there must be at least one assignment completed on back of the title. And in the case of a title on a vehicle that was repo-ed, the back would be blank. (See facing page) Another situation not covered in last month’s article is that of a vehicle which is titled in the dealer’s name.

Though dealers normally only take assignment of titles for vehicles in their inventory, in some instances a vehicle will actually be transferred into the dealership’s name. In other words, in these situations, the dealership is shown as the owner on the front of the title, instead of being an assignee on the back. Federal law specifies that a dealer may not use the secure dealer reassignment form when the dealership is the owner listed on the front of the title.

32

Langfield

TIADA DEPUTY DIRECTOR

A couple other brief notes on the dealer reassignment: many dealers have been asking where exactly they need to write “Reassignment on _____” on the back of the original title. The answer is this: write it on the next available reassignment space, in any area where it will be legible. We recommend using the bottom right line above where it says Printed Name.

Lastly, some members have reported that their county tax offices still will not accept dealer reassignment forms when there are spaces available on the original title.

If you encounter this, you can refer the county to the Registration & Title Bulletin RTB #011-15 entitled, ‘Use of the Dealer Reassignment with “Open” Reassignments’ issued by VTR on 12/18/15. Contact me if you need an actual copy of or link to that bulletin.

Other Agency Happenings…

A few interesting rule actions are in various stages of progress from a couple of state agencies. TxDMV has a rule package which has been posted and is now in the public comment period. Among other things, this rule creates a duty for a seller to post a sign with specific disclosure language on each salvage rebuilt vehicle offered for sale. It would also require a written disclosure, signed by the customer and retained by the dealer, with similar language.

The OCCC is also looking at an administrative rule action, this one including a review of the agency’s motor vehicle rules. The pre-comment draft included several potentially significant provisions, one of which considers increasing the “safe harbor” amount of a doc fee to $150 (currently it is $125). Another provision would provide for a required annual renewal statement from MVSF licensees which would include the dollar volume of contracts originated, acquired, or serviced during the preceding calendar year.

TIADA will continue to track these developments and keep you up to date as they progress.

T e x a s

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March 2016

THIS ASSIGNMENT OF TITLE MUST BE COMPLETED...

T e x a s

D e a l e r

e

March 2016

pl m

Sa

BEFORE THIS FORM CAN BE USED.

33

feature

How to Defend Your Dealership Against Rogue Employees

by Ed Kehl

Director of Independent Sales, DealerSocket

W

hat happens when a fired employee gains access to confidential dealership data? Well, let’s just say it may not be your best day at the office. In today’s wired world, almost every staff member has access to some sort of sensitive internal data. Most of those employees will eventually leave your organization — many times under amicable circumstances, but sometimes not.

Within minutes, a single team member with the right logins can undo a hard-won, spotless reputation. Your customers and vendors trust you to keep their data safe and secure, and a violation of that trust could lead to lawsuits or other serious consequences. Thankfully though, regardless of whether an employee quits or is fired, an airtight separation process can protect your dealership from harm.

Stop for a moment and think about all the data, systems, and information that an average staff member can access at your dealership. This may include personal information about your customers, employees, financials, and potentially even saved payment information. These elements are often critical to day-to-day business, but a rogue ex-employee could turn those operations upside down.

Take this story, for example. In 2010, a disgruntled ex-employee at a dealership in Texas gained access to a starter interrupt system login and proceeded to disable vehicles, set off alarms on more than 100 cars, and essentially cause chaos before he was finally caught.

Not surprisingly, that dealership was flooded with customer complaints. They were also held responsible for towing charges on the affected cars. To put the icing on the cake, the ex-employee had fraudulently ordered $130,000 in parts and equipment from the starter interrupt vendor. In response, the vendor had this to say: “It was a fairly straightforward situation.

He retained a password, and he went in and created a little bit of havoc.”

Wow, now there’s an understatement! But don’t worry; the good news is that implementing a simple separation policy and setting guidelines on login credentials can easily prevent these situations. Here are six steps you can start on today to develop your unique employee separation process:

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1

Complete a formal audit of every staff member. Verify and document all data and sys-

tems that each employee has access to. If you need help getting login information, call the Client Support departments of all your vendors. They likely will be glad to compile this for you.

2

Create a comprehensive checklist of physical offices, computers, systems, and more that you would need to secure if a team member leaves the company. Use the employee audit from the previous step as your guide. The final list may include your CRM, DMS, inventory management, accounting, and website applications, as well as any personal and shared computers or office space.

Once a staff member quits or is terminated, contact the Client Support department of each vendor again — this time to inform them that the individual is no longer employed with your dealership. Your vendors will need to update their internal records to ensure the ex-staff member cannot erroneously gain access in the future.

3

Determine who in your organization will be responsible for denying access to all the items on your checklist. This list may need to

include several people, depending on their particular roles and the size of your dealership. Be sure to include alternate employees as well, in case your first choice is the one who leaves the company.

4

Document the above steps in a written process, and make sure all participating parties understand their responsibilities in the event of an employee separation. Every

step of your process must be documented and, therefore, auditable. If any legal action takes place, you can prove you took every possible precaution to safeguard your customers’ sensitive data.

5

Hold regular “practice runs” to drill the processes into your team. Your dealership

is run by humans, so mistakes happen. However, one oversight out of 100 flawlessly executed processes can still come back to bite you. Emphasize the importance of handling each step with care, and follow up with frequent dress rehearsals to ensure all team members feel confident in their roles.

35

6

Audit the process, both during your prac-

tice runs and during actual employee separations, to confirm that your team properly follows protocol every time. Make adjustments as needed, but aim for 100 percent error-free execution of your processes.

Remember, these are merely guidelines. Every dealership is different, and it’s up to you to customize a procedure that fits your circumstances. Most importantly, keep in mind what’s at stake: your money, your reputation, and your customers’ trust.

By creating and implementing a rock-solid employee separation process, you’ll ensure that even angry ex-staff members can’t erase your years of hard work.

Ed Kehl is Director of Independent Sales at DealerSocket.

After eight years owning his own dealerships, Ed brings insight and passion for the Independent space to his role at DealerSocket. He has been with DealerSocket for six years. Ed can be reached at ekehl@dealersocket.com. For more information on DealerSocket visit dealersocket.com.

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feature

Congressional Staff Report Reveals Sad Inner Workings of CFPB Fair Lending Attack on Dealer Compensation

by L. Jean Noonan

Partner, Hudson Cook, LLP

J

ust before Thanksgiving, Capitol Hill lobbed a bomb at the Consumer Financial Protection Bureau. The explosion was heard across Washington, and the aftershocks were felt throughout the indirect auto finance world.

On November 24, the House Committee on Financial Services released a 54-page report by its Republican staff, entitled “Unsafe at Any Bureaucracy: CFPB Junk Science and Indirect Auto Lending.” The report is a devastating attack on the Bureau’s pursuit of discrimination claims under the Equal Credit Opportunity Act against indirect auto creditors for alleged pricing differences in contracts they buy from dealers.

Despite the title of the report, its tone is restrained and even academic. The shock is provided by the report’s liberal quotations from Bureau internal documents. Quotes from leaked CFPB confidential documents began appearing in the press last summer, which prompted renewed requests from both Democratic and Republican Congress members for the Bureau to provide the Committee with answers to questions and internal documents related to its ECOA enforcement program regarding indirect auto finance.

The CFPB documents cited in the report paint a picture of a staff that is well aware of the weaknesses of its legal theory and of the fact that its evidence is based on a seriously flawed methodology. One hardly knows whether to be pleased or dismayed that the CFPB staff discussed these problems candidly in memoranda to Director Cordray-pleased because the staff was frank about the weaknesses in both the law and the evidence, and dismayed because the CFPB proceeded with the cases nonetheless.

From my many years of enforcing the ECOA at the Federal Trade Commission, I know the Commission would have refused to authorize an enforcement action if presented with staff admissions of such a flimsy case.

Government agencies do not like to lose cases, and they have plenty of strong cases to prosecute. So, why did Director Cordray sign off on these fair lending cases?

The most troubling part of this sordid tale appears in a final decision memorandum seeking authority for the enforcement action against Ally Financial Inc. and

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Ally Bank. The staff conceded that the Bureau’s claims against Ally presented “issues,” such as the use of proxies and the disparate impact theory, “that would pose litigation risk of enough significance to merit serious consideration prior to taking administrative action or filing suit in district court.”

Yet the staff recommended, and Director Cordray approved, the enforcement action because it had “powerful” political leverage on Ally, making such weaknesses in its case likely irrelevant. “Ally might have a powerful incentive to settle the entire matter quickly without engaging in protracted litigation,” the Bureau staff wrote in reference to Ally’s pending application for financial institution holding company status. If the Federal Reserve Board did not approve Ally’s application by December 24, 2013, Ally would be forced to divest its insurance and used-car remarketing operations. “Settlement of the Bureau’s fair lending investigation was a prerequisite for Ally’s status change,” the Committee staff ’s report observed. Ally signed the settlement, costing it $98 million, five days before its deadline to achieve financial institution holding company status. In short, the agencies had Ally over a barrel, so Ally was the perfect target for the ECOA enforcement action that the CFPB hoped would change the way banks and finance companies compensate auto dealers for the credit contracts they buy from dealers.

The Committee staff ’s report details the significant shortcomings of both the Bureau’s legal theory and the evidentiary basis for the CFPB’s attack on dealer compensation. Any one of these shortcomings would be sufficient to defeat the CFPB’s fair lending case against indirect auto creditors. Let’s take a quick tour of them.

Disparate Impact

The CFPB’s legal case relies on a controversial theory of disparate impact, which challenges a practice that is discriminatory in effect because it has a disproportionately negative impact on a prohibited basis, even though the company has no intent to discriminate and the practice appears neutral on its face. Here are the problems with disparate impact.

Supreme Court decisions cast doubt on whether a

disparate impact theory is valid under the ECOA. 39

The statutory language that recent Supreme Court decisions have relied on to recognize disparate impact liability under other laws is absent in the ECOA. Dealer “discretion” in pricing is not a finance com pany “policy or practice” required for disparate impact liability. CFPB internal memoranda acknowledge the Supreme Court’s rejection of “discretion” as policy giving rise to potential disparate impact.

Factors other than dealer discretion are likely to be

the real cause of markup differences. The Supreme Court has stressed there must be a “robust causality” between the challenged practice and the adverse impact on minorities. The Bureau has refused to control for factors such as credit tier, term, new/ used, and LTV that might explain the pricing differences, although the Bureau staff acknowledged internally that refusing to control for race-neutral factors might be unfair to assignees of auto finance contracts.

Indirect auto creditors have a legitimate business

justification for current dealer compensation policies. CFPB internal memoranda acknowledge that indirect creditors that have gone to flat fees have lost significant market share and refer to the compensation shift as “corporate suicide.” The memos acknowledge that Honda and other indirect creditors “may be able to convince a court that they had a legitimate business justification for their policies.”

Indirect auto finance companies as ECOA “creditors”

Under the ECOA, an assignee of a credit contract is a “creditor” only if it participates in the credit decision.

Often, assignees are not ECOA “creditors.” The

CFPB acknowledges internally that indirect lenders are not ECOA creditors in spot deliveries because the terms are set before the assignee’s involvement.

Even in other transactions, the dealer often receives many wholesale rate quotes and may have set the retail rate based on factors other than the assignee’s quote. Banks and finance companies generally do not know if a transaction was a spot delivery or why the dealer contracted with the customer for a specific rate. It is the Bureau’s burden, as plaintiff, to prove that the assignee was an ECOA creditor, but the Bureau has no way of doing this in any given transaction.

Use of BISG to proxy race and national origin

The Bureau has staunchly promoted the use of BISG methodology, which combines the odds of being a member of a minority group based on surname and geographical location. Yet it has admitted, in internal memos, that other proxy methodologies have been proven more reliable. In fact, internal memoranda argue against revealing the CFPB’s proxy methods because companies targeted for enforcement will “show how our methods are inferior to other proprietary proxies.”

BISG proxy methods are inferior to proprietary

data. The Bureau staff defended the use of BISG over more accurate proxies by arguing that companies could save money by not having to buy proprietary products. As the House Committee staff noted, the concern about saving regulatory costs is “undoubtedly cold comfort to creditors publicly

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labeled as engaging in racial discrimination brought by the Bureau using a methodology it knew to be faulty and unreliable.”

BISG proxy methods are highly unreliable, espe cially for African Americans. The CFPB’s 2014 public white paper on proxy methodology admitted a 20% overestimation of African Americans. But its internal memos acknowledged that data from an outside source demonstrated that for every 100 African-American consumers, BISG could identify only 19 of them as African Americans. Statisticians refer to these errors as false negatives; there are also whopping false positives. “Out of 100 applicants that are identified by the proxy methodology as AfricanAmericans, only 54 of them are actually AfricanAmericans according to the HMDA data,” conceded an internal memo.

The House Committee on Financial Services staff report provides a rare look into the inner workings of the CFPB. That picture is grim. In a sense, nothing the report revealed is different from many in the industry have suspected. But the frank admission of the weaknesses in the Bureau’s legal theory and evidence

surprised me. It suggests an adherence to an approach the staff acknowledges is seriously flawed. Although I expected to feel anger on reading the Committee staff ’s report, I felt sad. For more than a decade, I directed the FTC’s enforcement of the ECOA. Like most creditors, I believe that a commitment to nondiscriminatory practices is not only good for business but also required by our legal system and our values. I also believe that the role of government is to do what is just, not to “win” at any cost.

Should the reaction to the Committee staff ’s report be outrage? I think of Horatio’s response to Hamlet that the ghost of Hamlet’s father had “a countenance more in sorrow than in anger.” Read the report. If your response is anger, I understand that. Right now, I’m feeling sorrow.

L. Jean Noonan is a partner in the Washington, D.C., office of Hudson Cook, LLP. Jean can be reached at 202.327.9700 or by email at jnoonan@hudco.com. Reprinted from the December issue of Spot Delivery with the permission of CounselorLibrary.com.

Single reproduction rights only, all other rights reserved. ©CounselorLibrary.com (2016).

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S I N C E 1972.

T e x a s

D e a l e r

March 2016

Please Welcome Our Newest TIADA Members Frayer Motor Company Charles Frayer 901 N Main St, Suite A Cleburne, TX 76033

DEALER MEMBERS AJ’s Auto Sales Priscilla Elizondo PO Box 2822 Elsa, TX 78543

HARO Auto Group Tom Rzasa 1521 Snowberry Dr Allen, TX 75013

Bayou City Discount Auto, LLC Thomas Wheelis PO Box 87629 Houston, TX 77287

Hope Motors Charlie Drugg 646 Evergreen Lane New Braunfels, TX 78130

Byrd Autos Timothy Byrd 1613 N Crowley Rd #100 Crowley, TX 76036 CarMax Auto Superstores 6081 Dave Marrero 12939 Southwest Freeway Richmond, TX 77469 Express Autoplex Jaime Gomez 4204 Southmost Rd Brownsville, TX 78521

SJB SimpleCar Group LLC d/b/a SimpleCar Wybert Carruth 615 N General Bruce Dr Temple, TX 76504 Time Auto Sales- SoCo Hector Villalpando 5412 South Congress Austin, TX 78745

Zeus Financial Harry Buchelly 8100 N IH 35 Austin, TX 78753 ASSOCIATE MEMBERS Dealers Credit Express Lucas Ponder PO Box 7030 Texarkana, TX 75504 EAN Holdings, LLC. Laura Lively 3737A South 26th Avenue Dallas, TX 75261 V12 Software Inc. Saad Laraki 2041 Mission College Blvd, Suite 180 Santa Clara, CA 95054

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 Links page.

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov Office of Consumer Credit Commissioner 800.538.1579 www.occc.state.tx.us March 2016

T e x a s

D e a l e r

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

Local Chapters VICTORIA Dennis Schroller Victoria Autos Direct 361.578.0530 Dennis@victoriaautosdirect.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 DALLAS COUNTY Kevin Mims VP Auto Sales 972.864.1300 kevinm@vpautosales.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) 43

2016 TIADA VIP Auction Card Directory

Manheim ADESA Dallas Austin Manheim ADESA DFW Dallas Manheim ADESA El Paso Houston Manheim ADESA Houston San Antonio Manheim San Antonio AA Abilene Alliance Manheim Texas Hobby AA Dallas Alliance Alliance

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

City AA SparklingChristi ew Corpus

AA Longvi

Alliance

City AA Sparkling Antonio AA Waco San a’s a Americ Americ AA Austin/ antonio Can! Cars for Kidsn San Arlingto a’s Big Americ Dallas Valley AA AA Donna a’s Americ CM AA n ny Compa s Housto Auction a’s Americ El Paso AA North ndent Houston Indepe AA Belton n AA Auto Housto Auction Heart of

Big Texas Texas of Houston AA Auction Waco

Metro AA Texas Lone Star AA Austin Carrollton r Tyler

AA Greate AA Dealers of OKC

Insurance s Insurances Auto Auction Christi* Corpus Auto Auction Austin* Insurance s Insurances Auto Auction Auto Auction DFW* Dallas* Insurance s Insurances Auto Auction Auto Auction Houston* El Paso* Insurance s Insurances Auto Auction Longview* Auto Auction North* Houston Insurance s Insurances Auto Auction n* Auto Auctionk* McAlle Lubboc Insurance s Insurances Auto Auction* Auction Auto Basin* San Antonio Permian s

*valid for

ce AA location

at Insuran

ABILENE

CORPUS CHRISTI

Insurance Auto Auctions*

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.

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

www.iaai.com

Sparkling City AA Corpus Christi New! www.sparklingcityaa.com

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

ADESA Austin

DALLAS / FT.WORTH METROPLEX

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

ADESA Dallas

www.adesa.com

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

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

sell fee only

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.charitycarauctions.org

www.iaai.com

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.

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.

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

EL PASO

America’s AA Dallas

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.

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

El Paso Independent Auto Auction www.epiaa.com

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.

T e x a s

D e a l e r

March 2016

Insurance Auto Auctions*

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

Insurance Auto Auctions* 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.

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

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: Rich Curtis Thursday, 9:00 a.m.

LONGVIEW Alliance Auto Auction Longview www.allianceautoauction.com

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.

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

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.

Sparkling City AA San Antonio New! www.sparklingcityaa.com

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.

TYLER 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.

Insurance Auto Auctions*

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.

Alliance Auto Auction Waco

America’s AA North Houston

LUBBOCK

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.

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

Insurance Auto Auctions*

Heart of Texas Auto Auction

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

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

America’s AA Houston New! www.americasautoauction.com

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

www.iaai.com

D e a l e r

www.allianceautoauction.com

www.heartoftexasautoauction.com

MIDLAND / ODESSA

OKLAHOMA CITY, OK

Insurance Auto Auctions*

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

March 2016

www.iaai.com

www.daaokc.com

45

behind the wheel

Martin

New Website is Ready to Launch in 5, 4, 3, 2, 1...

I

grimaced a little when we first started talking about doing a new website and implementing new association management software. I must confess technology is not my strong suit. I don’t like it, I don’t really understand it, and I am not particularly good with it.

However, on a typical day I bet I spend six hours frying my retinas with the light of a PC and 80% of my conversations are held over a mobile phone, talking, texting and emailing. I would prefer to have three quality face-to-face conversations with three different people any day of the week. Instead, I send short messages and spend my day in conversations like this one: Them: r u ok with letter?

Me: OK, few changes.

Them: will look @ changes and get back 2 u.

Me: k Them: can u take a call?

Me: n a sec Them: thx The advantage to this conversation is that I can have it while sitting at the TxDMV board meeting. I can be more involved and truth be known, I can get more done. Like it or not, as confusing and frustrating as technology can be, it has made our lives more efficient.

As an association we are always looking for ways to

46

by Jeff

TIADA EXECUTIVE DIRECTOR

get more members involved. The more input we receive the easier it is for the association to offer valuable services to you, the member, and the better the association can represent the industry. We also take great pride in our fiduciary responsibility with your dues dollars. Therefore, we are always looking to save a nickel when we can.

Just last month we hosted a webinar on new rules related to the use of a dealer reassignment form. The webinar is much less expensive than the traditional brick-and-mortar classroom training sessions. During the webinar we had a dealer from Beaumont and also one from Lubbock participate. When the webinar was over, everyone was sitting at work. No doubt technology is allowing us to be more efficient.

Later this month we are scheduled to launch a new website. The geeks in the tech world call it a “soft launch,” so we can’t tell anyone. I think that is code for “we have no idea if this is going to work, and don’t want a bunch of people around watching us if it fails.” Either way, don’t tell anyone you heard it here. After the soft launch we will work out the bugs for about a week and then we will start making a lot of noise about a new website.

The point is, one day this month when you visit txiada.org you will see an all-new website. It will have new bells and whistles that will help you stay more informed, be more efficient, become a better dealer and, most importantly, interact with your association even more. After you check it out let me know what you think. You can email, call or text me, you can post your thoughts on our Facebook page or comment about it on our new forum. Heck, you can even stop by the office — I would love to visit with you face-to-face.

T e x a s

D e a l e r

March 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