Texas Dealer, March 2015

Chrysler 300

Cadillac STS

VW Jetta

Dodge Charger

Pontiac Aztek

Dodge Ram

Chrysler PT Cruiser

Nissan Xterra

...and the

Who Love to Hate Them Also In This Issue: – TIADA Lobby Day at the Capitol plus Legislative Update – Michael W. Dunagan on Sequestrations – Social Media, the Puppy

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Volume XV

2015 TIADA Board of Directors

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 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 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

/

M a r c h 2 015

contents

chairman of the board Michael Thomasson/Mike Carlson Motor Company 264 Exchange St. Burleson, TX 76028 Office: 817.366.9578 Email: mthomasson@mcmcauto.com

Treasurer Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net

Issue 3

texasDealer

President Brent Rhodes/Fiesta Motors 5150 Industrial Way Drive Buda, TX 78610 Office: 512.312.2201 Email: brent@fiestamotors.net

Secretary Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd.

Dallas, TX 75229 Office: 214.352.9282 Email: cicoauto@verizon.net

/

6 Officers’ Message

by Brent Rhodes, TIADA President

8 Social Media, The Puppy

by Joe Webb

11 On The Cover: Clunkers and the Dealers Who Love to Hate Them

by Jim Stickford

15

TIADA Scholarship Application

17 TIADA Lobby Day at the Capitol

by Danny Langfield

27

Membership Recruitment Challenge

28

TIADA Member Application

31 Legal Corner: Obtaining Court Orders to Enforce Liens

by Michael W. Dunagan

34

2015 VIP Card Auction Directory

37 Regulation Matters: The “Single Sticker” Dealer Dance: Fees, Contracts, TT&L

by Danny Langfield

40 Upcoming Events 40 News & Notes 43 Local Chapters

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.

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officers’ message

by Brent

Rhodes

Don’t Judge a Book by its Cover?

Y

ou have probably heard the old adage, “Don’t judge a book by its cover.” This statement has been used in many different scenarios but, have you ever used it in the car business? We have all had situations where our sales staff has pre-judged a potential customer as they walked out to greet them.

Thoughts along the line of “They don’t look like they would have enough down payment” or “I doubt they will make their payments on time” or even worse, “They look like a repo waiting to happen” cross their minds. Many times, however, we have pleasantly been surprised when the customer did, in fact, have the down payment required or they did end up making all of their payments, and on time! I have told my salespeople time and time again not to pre-judge a customer.

Putting smart policies and practices in place can help you so you don’t have to “judge a book by its cover”!

I believe that part of your underwriting procedures should take all of the details about your potential customer, from when they first come on the lot to when you have a completed application, and use this information to make good consistent decisions about this customer. Let me give you a situation where we recently failed in this area.

A customer walked on our lot… He literally and physically walked onto our lot (Concern #1.) That should have immediately raised some concern, especially since we are located on the Interstate Highway and not near a bus stop. My salesperson went out to greet him and the customer expressed interest in a 2003 Ford F150. When my salesperson asked him for a copy of his driver’s license, he said he “forgot it” (Concern #2.) Since we don’t allow test drives without a current photo ID, my salesperson asked him to come inside and start the application process to which the

6

iesta Motors F (Buda) TIADA president

customer replied that he didn’t have time (Concern #3) but that he just wanted to take a look at the truck. My salesperson got the keys and proceeded to show him the truck; she then conveniently drove the truck up to our front parking spot and followed the customer inside.

In what we thought was good customer service, the salesperson left the truck running (Concern #4 —you will see why soon, keep reading!). The customer then asked to use the restroom and we showed him the way.

Meanwhile, my salesperson went to her office to start the application process. Unbeknownst to anyone else in the dealership, the customer left the restroom and went back outside where he got in the running truck and drove off! It was a few minutes later before anyone noticed that the truck was gone! Only after reviewing our security camera video did we realize what happened.

I sat down with my staff and discussed what could have been done differently to prevent this from happening. We determined that there are times when the presenting facts should make us “judge the book by its cover” or practice good consistent policies with each customer. If we would have done this with this customer, we possibly could have avoided this unfortunate situation. All of my employees agreed that we all have the responsibility to be more aware of who comes and goes on the lot. We have since made some changes to our process. For one, we used to start each vehicle each week and let them run to charge the battery; we no longer do this without an employee staying out on the lot.

We also do not allow a test drive to anyone who walks up to the dealership.

I hope that you too can learn from this event and take the time to review your policies and procedures to make sure something like this doesn’t happen to you.

Fortunately, the authorities recovered the truck a few weeks later and it seems to be in good shape!

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March 2015

feature Social Media, the Puppy

by Joe Webb DealerKnows Consulting

{Editor’s Note: Joe Webb will be the Tuesday keynote speaker at the 2015 TIADA Annual Conference and Expo.]

M

y wife recently decided it was high time to get a pet dog for the family. I had been delaying this decision since my wife and I first moved in together (years and years ago). I just wasn’t ready for the responsibility. (And, on top of that, I’m allergic).

Nonetheless, over a dozen years and two sons later, I acquiesced and began researching a suitable breed. Long story short, we decided upon a Havanese. We researched breeders, investigated, awaited a litter, and picked up our new puppy. Cute as can be, I realize that this ball of hair will be essential to the growth and development of my children.

But these first few weeks have been a lot of work.

To tie this together, I was recently honored to have been hired by Jacuzzi corporate to speak at their international conference on the subject matters of lead management and process improvement. Even though I was the one to be dispensing knowledge onto the audience of franchise owners and manufacturer reps, I was able to walk away with my mind swimming with ideas as well. I was intrigued by a simple statement from Jacuzzi’s Director of Advertising and Digital Marketing, Martin Borsanyi, during his session on social media. He said “Social Media is free like a puppy is free.” I can say first hand that this statement hit home. Literally.

Any independent dealership can have a social networking account the same way anyone can adopt a dog. It just takes doing it. Sure, breeders charge an arm and a leg the same way a social media management firm does for their set-up costs,

but relatively speaking, a dealer can do it on the cheap himself.

However, if you want to get the most out of your puppy (let’s name her Social Media), then you are going to have to invest a decent amount of money and a lot more time.

Social Media the puppy requires time for training. Not only does the puppy need training, but you need training on the puppy. You have to spend time with it so it doesn’t get lonely.

You have to work with it ongoing if you want to see results in its behavior. You need to dedicate money to its collars, food, and grooming, just as you do to its promoting of posts, PPC campaigns, and FB dark posts. To do it right, you have to spend some money. To be the best owner of Social Media the puppy you can be, you have to give it a fair amount of attention.

It needs to run. It can’t just sleep all day. You need to feed it posts, tweets, links, Likes and comments. You need to listen to its barking notifications, and respond accordingly.

Social Media is a new member of the family, and regardless of what you think of the channel, it is in its infancy. Social Media is the 80 lb black Labrador puppy that is too big to act like one. It still needs to learn its way, in the auto business and everywhere else, and it will break things in the meantime.

Social Media the puppy is a ton of work. If you aren’t giving it attention, money, and time, you aren’t going to like how it behaves when full grown. You’ll never have control and you’ll never have full ownership of it. Treat it the way a young puppy deserves to be treated and your dealership will have a friend and companion for life.

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T e x a s

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March 2015

Chrysler PT Cruiser

Pontiac Aztek

VW Jetta

Chrysler 300

your name:

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

Tiebreaker: How many

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

dealership/Business:

*HOW TO ENTER: Select the car you believe is the bigger clunker in each matchup. The victory chosen by the most members in each matchup will advance. Two points will be awarded for each correct pick in round one, four points for round two, and eight points for the championship. Fax your completed bracket to 512.244.6218 or scan and email to info@txiada.com. Deadline for entry is Wednesday, March 18. Complete results and winner will be published in the April issue of the Texas Dealer.

Complete This Bracket for a Chance to Win $500!

Nissan Xterra

Dodge Ram

Dodge Charger

Cadillac STS

on the cover

Chrysler 300

by Jim Stickford Freelance Writer

VW Jetta

Pontiac Aztek

Chrysler PT Cruiser

...and the

...and the

Who Lo

who love to hate them

M

aking a car is hard. It requires a great deal of engineering expertise, design talent, money, and time. So it’s not that much of a surprise that not every vehicle put out by automakers is a grand slam. And it’s just as important for dealers to know a car’s weaknesses as much as its strengths.

Here are a few vehicles that dealers think didn’t quite hit the mark.

The Chrysler 300; while this is a good looking and stylish car that did much to impress both critics and the public, looks aren’t everything. Several TIADA members mentioned that the 2.7 liter engine is problematic, and can’t be rebuilt.

“It is miserable after it hits 100,000 miles.” said Alex Bahls, owner of The Corner Lot in Bryan. The VW Jetta also made the list, specifically, the VW Jetta Turbo. While some dealers

March 2015

T e x a s

D e a l e r

complained about its electrical and transmission issues, Bahls said that turbos in general are trouble, but the Jetta Turbo had serious problems with head gaskets blowing.

Some cars are just cursed! Look at the Pontiac Aztek, a vehicle that was supposed to help the Pontiac brand connect with younger, hipper drivers.

It became synonymous with terrible design and clunky looks. David Miller of Carlisle Motors in Lubbock said he only ever brought one Aztek to auction. “The other dealers were afraid of it; it didn’t help the sale that it was yellow. That great TV show ‘Breaking Bad’ couldn’t even save the Aztek.” But not all drivers have bad things to say about the Aztek. One dealer said that while most people don’t like it, the few people that do are “fanatically loyal” to the Aztek. So there’s a market for them, a dealer just has to know where

to find the customer. Something similar could be said about the Chrysler PT Cruiser; described as ugly and uncomfortable and plagued by suspension and engine overheat problems in addition to many recalls.

Sometimes, it takes more than one time to get an engine right. The 2.7 liter engine used in the Chrysler 300 was a replacement for the 2.7 liter engine that was in the Dodge Charger and Dodge Stratus. Several dealers said those vehicles are just trouble, having problems with overheating and internal engine problems. John Willis of Willis Motors in Wichita Falls referred to them as “delicate” but he also added that the 3.5 liter engines were actually good. So it pays for a dealer to know how engine issues affect buying different makes of a car.

Paying a lot for a car doesn’t mean you are getting a great car. The 11

Cadillac Northstar engine from 2000 to 2009 came in for a lot of criticism. Willis said the trouble seemed to center around the mixing of aluminum and steel components in the engine block. Too much engine heat and the different parts just wouldn’t hold together and they would warp. “Cadillac invested a lot in the Northstar and just kept trying to get that engine to work,” Bahls said.

“They never really got it right, but Cadillacs since 2009 are good. That brand has really upped its game.”

Issues with luxury cars aren’t limited to domestics. Bahls said BMWs, once they get past 100,000, start having serious engine problems. “It seems like fluids start pouring out of every orifice, and the electrical system just has a lot of trouble. If you have a BMW that is about to cross the 100,000 mile mark, get ready to spend a lot of money getting it fixed.” Part of the problem is that parts can be very expensive to get and hard to find.

Pickups also made the trouble list.

Dodge Rams in the mid-2000s were cited by several dealers for having problems with the transmission and “check engine” light problems with the Hemi. Overheating was also a common complaint with this vehicle.

Ford’s reputation over the last decade was made with trucks and SUVs, yet many dealers said that both the company’s 5.4 liter and 4.6 liter engines had trouble. Mark Jones, with the Mike Carlson Motor Company of Burleson, Texas said that a favorite joke of dealers goes something like this – “Knock, knock. Who’s there?

The Ford 5.4 liter engine.”

The Nissan XTerra between the years 2000 to 2004 also made the list, with dealers saying that it had transmission issues as well as overheating problems and weak front end.

Dealers also mentioned that it was a good idea to avoid Land Rovers and Jaguars; while Ford’s ownership of the brand improved it, there was

so much need for improvement that Ford could only do so much before the company sold off Land Rover and Jaguar. Jones said that Hyundai/ Kias before 2005 weren’t very good either. Bahls said that most domestic brands really made improvements to their vehicles, starting at about 2009.

“There have been a lot of changes in quality in the car business over the past six or seven years.” said Mike Falcone of Eastep Auto Sales in Bryan. “A lot of these complaints are about vehicles made before that time, and that’s six or seven years ago. That means these cars are old.

I carry newer cars and don’t worry too much about a vehicle that was made in 2000. There are good cars out there for dealers who know where to look.”

Did we fail to include one of your favorite clunkers? If so, drop us a line at info@txiada.com or give us a call at 800.442.5944 and let us know what we missed.

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T e x a s

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March 2015

e-Tag Supplies —

In Stock for Immediate Shipment!

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March 2015

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.}

Date: Name:

DOB:

Address:

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.

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).

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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

15

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by Danny Langfield

TIADA Deputy Director

J

anuary 27, 2015 was the date of TIADA’s bi-annual Lobby Day at the Capitol, where more than 30 dealers visited 48 different legislative offices to educate and connect with their elected officials.

According to those in attendance, the meetings were quite productive. Dealers often found personal connections among the legislators as well as a consistent willingness to listen to the issues important to the industry.

“We had a visit with Sen. Perry that went very well — I was reminded that he has been a partner in a used car dealership as well as BHPH and currently has several auto dealers as part of his CPA practice,” stated Paul Scott of Fiesta Motors in Lubbock. “We also met with Rep. Burrows, who is a personal injury lawyer and someone who is very open to our issues — another good meeting.”

At Lobby Day, small groups of 2-4 dealers from specific geographical areas go to the Capitol and meet with legislators that represent them. This effort is part of the yearround advocacy effort that includes calling on some of these same legislators in their home districts and having them as guests at local chapter meetings.

Jerry Smith of HJ Smith Automobiles in Fort Worth was part of a group that met with Reps. Burns, Klick, and Tinderholt as well as Sens. Hancock and Birdwell.

“Lots of good meetings — and Representative Klick was very receptive to our needs as dealers,” Jerry said.

“Turns out her husband plays golf with one of our other TIADA dealer members. She was very aware of TIADA and actually had papers on her desk dealing with what we were talking about.” (cont’d on pg. 20)

TIADA Executive Director, Jeff Martin; Rep. Carol Alvarado; TIADA Region 4 VP and Texas Quality Dealer of the Year (2004) Juan Sabillón; Christina Sabillón.

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2014 TIADA Top Recruiter Wayne Meagher; Barry Smith; FWIADA President, Jerry Smith; Rep. DeWayne Burns; DeDe Smith; Quality Dealer of the Year (2010) Scott Allen; TIADA Chairman of the Board, Michael Thomasson 17

HIADA President Michael Zak; Rep. Gary Elkins; TIADA Treasurer and Quality Dealer of the Year (2011) Greg Zak

TIADA VP At Large, Trey Crouch; TIADA Region 6 VP, Dan Keetch; Rep. Eddie Lucio III, TIADA General Counsel, Mike Dunagan

Shane Rhodes, Rep. Dwayne Bohac, TIADA Past President, Byron Riley; Christina Sabill贸n; John Freeman; Juan Sabill贸n Texas Quality Dealer of the Year (2013) Blake Ingram; Texas Quality Dealer of the Year (2009) Phil Lathrop; Sen. Robert Nichols

Jerry Smith; Scott Allen; Sen. Kelly Hancock; DeDe Smith; Barry Smith

John Swofford; Sonny Paredez; TIADA Past President, Mark Brown; Rep. Doug Miller; TIADA Region 5 VP and SAIADA President, Robert Beck

TIADA Secretary and Quality Dealer of the Year (2012) Kathrine Tolsch; Sen. Van Taylor, TIADA Region 3 VP and DCADA President, Kevin Mims 18

Michael Thomasson; Trey Crouch; Rep. Ren茅 Oliveira, Rep. Patricia Harless (and TIADA Past President); TIADA President, Brent Rhodes T e x a s

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March 2015

Rep. Toni Rose listens to Blake Ingram, Kathrine Tolsch and Phil Lathrop

legislative bulletin

Updates

on a few bills TIADA is currently tracking: HB 335 (Thompson, Ed) and HB 318 (Keough)

Both these bills propose the elimination of named-driver-only policies. TIADA supports this bill.

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. TIADA opposes this bill.

Michael Zak; Greg Zak; Rep. Ed Thompson; Jason Johnson

Rep. Susan King; TIADA Region 2 VP, Tommy Gregory

SB 441 (Burton)

This bill would eliminate the blue law, which prohibits dealers from selling vehicles on consecutive weekend days.

TIADA opposes this bill.

Rep. John Frullo; Paul Scott

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Your best source of up-to-the-minute 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.

19

(cont’d from pg. 17)

Jason Johnson; Greg Zak; Rep. Sarah Davis; Michael Zak

Kevin Mims; Rep. Jason Villalba; Blake Ingram

Phil Lathrop; Kathrine Tolsch; Rep. Roberto Alonzo

20

Auto Land’s Scott Allen (Ft. Worth) was also a part of Jerry’s group and was equally impressed with the reception they received from the various legislators.

“I thought the whole day was a huge success overall,” said Scott.

“The legislators were all very receptive and seemed interested in our agenda. Sen. Hancock and Rep. Klick are from my district and I feel like I could contact them about anything we are interested in conveying.”

The efforts made by the dealers who attended Lobby Day are a key part of TIADA’s overall legislative strategy.

“The connections these dealers make with their legislators are invaluable to us as we get deeper and deeper into the legislative session,” stated TIADA executive director Jeff Martin. “For those members who did not attend, keep in mind we will be calling upon you to be in touch with your individual representatives as bills start to move.”

“Great meetings and I’m excited about the future of TIADA,” stated Keith Hagler of Taylor Auto Credit in Taylor. “Everyone seemed familiar with TIADA and said they would use us as a resource. We are known throughout the Capitol — and that’s as good as it gets!”

Kevin Mims; Blake Ingram; Rep. Cindy Burkett

T e x a s

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March 2015

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D e a l e r

March 2015

SHARE-LEARN-RELAX-WIN! Take the Recruitment Challenge in 2015

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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.

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Relax with the family and turn work into pleasure.

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.

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

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Recruit 5 new members by June 30th and you will receive one free registration to the 2015 TIADA Conference & Expo.

TIADA Membership Application

2015

Business Name: ____________________________________________ Select one:

Dealer Member

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________ City: _________________________________________

2015 TIADA Membership Dues:

State: _______

Zip: __________________ County: _____________________________

$425 (Dues include NIADA membership)

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

PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Expiration Date: ____________ Monthly Payments - $100 initial payment & $29.50 per month Via Credit Card (Please enter card information above. Authorization Agreement required - contact state office) Via Bank Draft (Authorization Agreement & voided check required - contact state office)

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

www.txiada.com

512.244.6060

800.442.5944

Dues are not deductible as charitable contributions for income tax purposes but may be deductible as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20 percent of your dues dollars is used for lobbying activities and is therefore not deductible.

28

T e x a s

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March 2015

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T e x a s

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March 2015

legal corner

Obtaining Court Orders To Enforce Liens

by Michael

Dealer Question: During an at-

tempt to repossess a vehicle, my agent was stopped by the debtor and told to leave. When he refused, the police were called. The responding police officers told my agent it would be necessary to obtain a “court order” to complete the repossession. I thought I was entitled to repossess my collateral upon default without a court order.

What gives?

Answer: The Uniform Commercial Code (the Texas version is known as the Texas Business and Commerce Code) provides that the holder of a security interest in collateral can upon default peaceably repossess the collateral without any type of legal process. The key word here is “peaceably.”

C

ourt cases have held that the refusal of a debtor to relinquish possession of collateral takes the situation out of the realm of peaceable. If a repossession can’t be accomplished peaceably (that is, with the permission of the debtor, or without the knowledge of the debtor and without breaching the peace), then it will be necessary to obtain an order (or “writ”) from an appropriate court.

Law enforcement officers have generally been trained that they can’t order a debtor to release collateral to the creditor without a court order. A creditor, being a private citizen can peaceably repossess collateral without a court order. A law enforcement office, by virtue of his or her position, is, in the eyes of the law, a government official. The U.S. Constitution

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forbids governments or government officials (except in a few emergency situations) from taking property from a citizen without due process of law. Due process of law is accomplished in this situation by applying for relief from a court.

On those occasions when self-help repossession is not available to the vehicle lien holder, such as when the collateral is hidden or locked up and the debtor refuses to return it or when repossession cannot be accomplished without breach of the peace, the creditor may have no alternative but to turn to the court system to enforce his or her rights to the collateral. The most appropriate remedy for a secured creditor seeking court-ordered return of collateral is referred to in Texas as “sequestration.”

Sequestration is a process by which a court, upon suit being filed and upon being presented with evidence of certain required conditions, can order the collateral to be seized by a constable or sheriff and held pending final judicial determination of the ownership rights to the collateral.

Recourse to sequestration involves the use of the officers empowered by the state (as opposed to self-help repossession), so constitutional due process

Dunagan

W.

TIADA general

counsel

Once a judge is satisfied that the creditor is entitled to an order of possession, he or she will sign an order for the clerk of the court to issue the writ of sequestration. considerations arise, and strict compliance with legal procedures is required.

To obtain a writ of sequestration, the secured creditor must show that he or she is legally entitled to possession of the property and that the party in possession will “conceal, dispose of, ill-treat, waste, or destroy the property or remove it from the county during the suit.”

A bond must also be posted, in an amount set by the court, before a writ will issue.

Because of the technical procedural due process requirements of sequestration, it will usually 31

require the involvement of an attorney to prepare the appropriate pleadings and affidavits. Justice of the Peace courts have the authority to issue emergency orders, including writs of sequestration, but not all J.P.s will undertake to handle a sequestration. Some will allow individuals without attorneys to file suits seeking sequestration writs in their courts. Some even provide forms for creditors to fill out.

Justice courts have jurisdiction in cases where the value of the collateral does not exceed $10,000.00.

It has been our experience that some J.P.s, especially those who are not attorneys, choose not to get involved in issuing writs. To determine whether your local J.P. will process a sequestration action and whether the lien holder can file without an attorney, call the justice court and ask the judge or civil clerk.

If the value of the vehicle exceeds $10,000, it will be necessary to file the action in a county or district court. Generally, it will then require that an attorney be retained to represent the creditor.

Once a judge is satisfied that the creditor is entitled to an order of possession, he or she will sign an

order for the clerk of the court to issue the writ of sequestration. The order will also specify the amount of bond that is to be posted by the creditor. Court rules require bonds to be at least the amount of the value of the property plus costs. Some courts will allow local individuals with non-exempt real property to post signature bonds. Other may require a corporate surety bond or a cash bond.

After the bond is received and approved by the court clerk, the writ is issued and sent to the sheriff or constable to take possession of the property pending a final determination of ownership and the right of possession. Sequestration is only a temporary taking process, so the secured creditor must go forward with obtaining a final judgment awarding ultimate possession. However, once property is taken by an officer with a writ, most debtors don’t respond to the suit. If the debtor doesn’t respond, the creditor is entitled to take a default judgment.

We occasionally run into situations where debtors simply refuse to honor the officer’s demand for possession under the writ. It is then necessary to file an action

in the court seeking to have the debtor held in contempt of court.

This process requires additional procedural steps and thus adds to the expense of the process.

A practical consideration about sequestration: Where neither the debtor nor the vehicle can be found, this remedy is of little value.

The writ must be served upon the debtor (or a person in illegal possession of the property). The sheriff or constable attempting to serve the writ will typically not provide skiptracing services, and will rely on the creditor to supply a valid address.

Conclusion: Given the cost and time restraints of the sequestration process, self-help repossession is still the most desirable way to retake collateral. But when peaceable repossession is unavailable, sequestration is the safest and best remedy for a car creditor.

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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Insurance Auto Auctions*

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

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

C.M. Company Auctions, Inc. www.cmauctions.com

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

austin Adesa Austin

www.adesa.com

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

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

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

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

* VIP card accepted for sell fees only 34

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!

www.iaai.com

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

DALLAS / Ft.Worth Metroplex Adesa Dallas

www.adesa.com

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

Alliance Auto Auction Dallas www.allianceautoauction.com

9426 Lakefield Blvd.

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

America Can! Cars for Kids www.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

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 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.

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.

www.iaai.com

El Paso Independent Auto Auction

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

7930 Artcraft Rd El Paso, TX 79932 915.587.6700, Fax 915.587.6700 General Manager: Lori Pidgeon Wednesday, 1:00 p.m.

www.epiaa.com

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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*

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

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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.

35

regulation matters

The “Single Sticker” Dealer Dance: Fees, Contracts, TT&L

A

packed media room was the scene of a press conference held February 2nd at the Capitol in Austin as various state luminaries held forth on the “Two Steps, One Sticker” initiative. As the reader is no doubt aware, this is the initiative whereby the inspection sticker is eliminated, its function replaced by the registration sticker. The program’s PR tagline is, “Kick up your heels for the new Texas Two Step!”

Based on the calls I’ve been getting here at TIADA, I am dubious that many independent dealers will be indulging in any celebratory dance steps as the program gets underway this month.

Left unaddressed amidst the pomp and circumstance of the “presser” were most of the details regarding exactly how this program will be integrated into the dealer sales process.

Last month’s Texas Dealer cover story featured a detailed description of the “single sticker” process and how it would affect dealers. That article also promised a follow up on the inspection fee, the retail installment contract, and TT&L calculations. This article is that follow up, and it will be assumed below that the reader is already familiar with the basics of the “single sticker” process.

Let’s begin with TT&L. In the good old days (prior to March 1, 2015), TT&L had nothing to do with inspection fees. Now it does. Prior to calculating title and registration fees on a transaction, a dealer will now need to visit www.twostepsonesticker.com and enter the VIN of the vehicle in the lookup tool provided. {Editor’s Note: This tool was not available at press time. TxDMV has indicated that it will be live on March 1.} The lookup tool is meant to provide data on the last inspection type, date, and whether the state’s portion of the inspection fee will be due at registration.

Do you care? Do I? We should. If the state’s portion IS due, it will be added to the title and licensing fees you normally pay at the county and will be reflected on the white slip. So, if the fee is due and you have not included it in your payment, the deal could be kicked back by the county. If you DO include the fee and it is NOT due, you have overpaid and that could slow down your transfer as well. Good times.

Ok, so what about the retail installment contract?

Many RIC’s have a separate line item where the

March 2015

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by Danny

Langfield

TIADA deputy director

Based on the calls I’ve been getting here at TIADA, I am dubious that many independent dealers will be indulging in any celebratory dance steps as the program gets underway this month. inspection fee can be listed. The OCCC has long taken the position that the inspection fee may be passed through to the customer in full, provided the dealer has documented the actual expense incurred (saved the inspection receipt).

If a dealer has paid for an inspection prior to March 1, the entire charge may be passed through on the contract as normal.

If a dealer pays for an inspection on or after March 1, the state’s portion of the inspection fee will be due upon transfer. The OCCC has indicated that the portion paid by the dealer at inspection should be included in the inspection fee box on the RIC. The state’s portion of the fee, which will be collected by the county at transfer, should be included on the RIC where license and registration fees are tallied. If passed through to the customer, the inspection fee receipt still must be retained, as 37

well as the white slip from the county (which is required to be retained anyway).

What about dealers who do not pass the inspection fee through to the customer? Not a problem, but keep in mind that starting March 1, if the state’s portion of the fee is due, the county will be collecting it at transfer regardless.

So, wouldn’t it make sense to simply add the state’s portion of the inspection fee to every deal?

Unfortunately, no, as illustrated below.

Scenario One: A vehicle has been inspected after March 1, but has not been registered since. In this case the state’s portion of the fee WILL be due when the dealer transfers at the county.

Scenario Two: A vehicle has been inspected after March 1, and has been registered since. In this case the state’s portion of the fee WILL NOT be due when the dealer transfers at the county, since it was collected when the vehicle was registered.

Conclusion

First, dealers should be aware that, for any vehicle sold after March 1, you will need to utilize the VIN

lookup tool found at www.twostepsonesticker.com to determine whether the state’s portion of the inspection fee is due. This is necessary to ensure that the correct dollar amount is remitted to the county for each vehicle being transferred.

Second, it is important for dealers to bear in mind that the only fees that may be legally passed through to the customer are those that are actually incurred (and documented) by the dealer. Any overcharges (intentional or not) detected by the OCCC may result in an order to refund the customer or credit his/her account.

Postscript: Hope on the horizon...

TxDMV’s webDEALER application allows a dealer to do title transfers online without ever leaving the store.

This app is currently being beta tested for used vehicles and is expected to be rolled out statewide sometime this year. TxDMV has indicated that webDEALER will automatically tally all fees due (including inspection). To quote Hamlet, “‘Tis a consummation devoutly to be wished...”

CIPG Insurance Issued by

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BHPH/LHPH “Pay-As-You-Go” Programs Available Please call 1-844-542-6217 and leave a message with your call back number or Please Visit

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*Texas Department of Insurance License # 13764570

38

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March 2015

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news & notes Happenings in the Industry…

Upcoming Events TIADA Dealer Academy Online registration available www.txiada.com

March 2015 24 Dealer 101: Nobody Told Me That!

Best Western Plus 100 Alta Mesa Blvd. East, Fort Worth, TX 76134

April 2015 23 Keeping Your Dealership Legal and Compliant

DoubleTree by Hilton Houston Hobby Airport 8181 Airport Blvd., Houston, TX 77061

May 2015 7 Dealer 101: Nobody Told Me That!

Hilton San Antonio Airport 611 Northwest Loop 410, San Antonio, TX 78216

June 2015 16 Keeping Your Dealership Legal and Compliant

Best Western Plus 100 Alta Mesa Blvd. East, Fort Worth, TX 76134

other TIADA events April 2015 20 TIADA Board of Directors Meeting

Austin, TX

August 2015 9 TIADA Board of Directors Meeting

compiled by Texas Dealer staff

TIADA Awards and Scholarship

N

ominations for the 2015 TIADA Quality Dealer and Independent Awards can be done online.Visit www.txiada.com before the deadline of May 1st and click on the “Awards” link found under the “About TIADA” tab for more information and to submit your nomination. There you can also find the application for the $1,000 TIADA Annual Scholarship that is available for college students and high school seniors. The application can also be found in this issue of Texas Dealer on pg. 15.

Go ahead, nominate someone today!

Interested in serving on a TIADA committee?

C

ontact the TIADA office at 800.442.5944 or info@txiada.com if you would like to serve on any of the four different committees available: Awards, Bylaws, Legislative, or Budget & Finance.

Belton Auto Auction

T

he Belton Auto Auction opened its doors for the first time on February 11, 2015. It is located on the same site as what used to be the Highway 35 Auction (212 E. Loop 121 in Belton, TX). The Belton AA will have roughly 250–300 vehicles as well as fleet/ lease vehicles. According to the owners, the auction is firmly committed to outstanding customer service. “I believe in it so much, that every one of our customers will have my cell number, and if their expectations are not being met, I want to know,” said Joe Lavigne. Joe and his partner, Bob Hubregsen, bring a combined 50+ years’ experience in the auto auction field.

San Antonio, TX

9–12 TIADA Annual Conference and Expo J.W. Marriott Hill Country Resort and Spa San Antonio, TX 40

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March 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 800.538.1579 www.occc.state.tx.us

Texas Comptroller 800.252.1382 www.window.state.tx.us NIADA 800.682.3837 www.niada.com

Repossessions

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

Forms

Burrell Printing 800.252.9154 www.burrellprinting.com

lubbock

Auction Listings

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

March 2015

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Local Chapters Victoria Dennis Schroller Victoria Autos Direct 361.578.0530 Dennis@victoriaautosdirect.com Meeting – 1st Monday (Monthly) 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) Waco-Heart of Texas Bill Miller Bill Miller Used Cars Meeting – 2nd Monday (Monthly) For more information contact Eddie Massey, Massey Motors 254.753.6661 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) 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

n

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

n n

n

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

n n n

n n n n n n n n

SOLD! The Deal Jacket Record Keeping Garage Liability & Dealer Bond Motor Vehicle Sales Tax Vehicle Inventory Tax Online Sales Out of State / Out of Country OCCC: the MVSF License Advertising Rules Federal Requirements Forms Review

We will build a deal jacket from scratch... we will role-play an actual of transfer of title at the tax office... we will do a simulation of VIT calculation, with real numbers over multiple years... and much more.

TIADA teaches you the business from an experienced, practical point of view.

Presenters will include:

Dorothy Starr, Motor Vehicle Manager, Tarrant County Tax Assessor-Collector Danny Langfield, Deputy Director, TIADA Michael W. Dunagan, attorney, Jameson & Dunagan, TIADA General Counsel

Sponsored by:

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Tuesday, March 24, 2015 Fort Worth, Texas Best Western Plus 100 Altamesa Blvd. East / Fort Worth, TX 76134 817.293.3088

Featuring updates on the Single Sticker Initiative!

Register online at w w w . t x i a d a . c o m or by phone at 800.442.5944.

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March 2015

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S I N C E 1972.

45

behind the wheel Grassroots Lobbying… In the Weeds & A True Clunker

I

have written numerous articles for this publication and others on effective grassroots lobbying. I typically use an inverted pyramid to explain the concept of starting with a very basic relationship and the stages of moving toward building a much closer relationship overtime. It’s really pretty basic human science psychology mumbo jumbo stuff but, it can also feel very esoteric and sterile when you chart out “how-to” build a relationship with your legislator. Obviously, it’s better when the relationship exists prior to the individual being elected but it’s essentially about who knows who and how well. Many times I find that some relationship already exists once two people who live in the same area are introduced.

Just last month, a freshman legislator filed a bill that created some concern for our legislative committee. This got the wheels in motion; who do we know in that representative’s district who might know this legislator? We scheduled a meeting with the new house member but prior to the meeting I reached out to one of our past presidents who resides in the same city as said legislator. When I say a past president, I don’t mean someone who served in the last five years. I am talking about 1998 past president Lee Helstrom. Fortunately for us, Lee has stayed active and is still a good friend of the association, and more importantly, Lee understands the value of grassroots lobbying.

I explained the situation to Lee. He told me he was

by Jeff

Martin

tiada executive director

going to make a few phone calls and would be back in touch soon. The next day Lee calls and low and behold Lee and our freshman legislator have attended the same church in the past; they even know a lot of the same people. After visiting with the legislator about our concerns I feel confident we can stop this bill. But Lee’s relationship will be key in creating the trust needed to build a better relationship and hopefully develop into a legislator who will understand and champion our cause in the future.

Thanks to all who attended this year’s lobby day; while it’s hard to measure our success immediately, the relationships you are developing will pay dividends for years to come.

••• I hope you enjoy this month’s cover and that you submit your bracket. I know I always get a kick out of hearing our dealers talk about some of the clunkers they’ve dealt with in the past. It seems like laughing about it is sometimes the best medicine. While I have never owned any of the vehicles listed in our bracket, I did have a 1988 Jeep Cherokee when I was in college. I could tell stories all day about how many times that vehicle left me stranded. One of my roommates cut a small “H” out of some sheet metal and welded it over the “J” on the back gate of my Jeep. It was the best I could do in disclosing the truth and I sold it that way.

Thanks to all who attended this year’s lobby day... the relationships you are developing will pay dividends for years to come.

46

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March 2015

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