Named Driver Policies Under Fire
In This Issue: - 2013 Tax Changes & The Impact to Dealers - Michael W. Dunagan on Customer Accident Liability - Regulation Matters: Motor Vehicle Inquiries - Controlling Delinquencies in BHPH
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2014 TIADA Board of Directors
Volume XII
Chairman of the Board Byron L. Riley/Uncle Buddy’s PreOwned Autos, LTD. 409 North Loop West Houston, TX 77008 Office: 713.869.3405 Email: byron@unclebuddyauto.com
Secretary HL Hensley/Automax of Lubbock P.O. Box 3040 Lubbock, TX 79452 Office: 806.744.3533 Email: hl@gospac.com Treasurer Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd. Dallas, TX 75229 Office: 214.352.9282 Email: cicoauto@verizon.net Vice President, West Texas (Region 1) James Hobson/H-Town Motors 3714 Dyer Street El Paso TX 79930 Office: 915.564.9797 Email: htownmotors@sbcglobal.net Vice President, Fort Worth (Region 2) Tommy Gregory/Abilene Used Cars Sales Inc. 497 E.S. 11th Abilene, TX 79602 Office: 325.676.8000 Email: aucsinc@sbcglobal.net Vice President, Dallas (Region 3) Kevin Mims/VP Auto Sales 2921 S. Garland Ave. Garland, TX 75041 Office: 972.864.1300 Email: kevinm@vpautosales.com Vice President, Houston (Region 4) Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net Vice President, Central Texas (Region 5) Robert 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) Trey Crouch/Trey Crouch’s Wheels On Credit 636 E. Business 83 McAllen TX 78501 Office: 956.972.0700 Email: trey@wheelsoncredit.com Vice President At Large Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net Vice President At Large Sonny Paredez/Discount Auto Center 7203 NW Loop 410 San Antonio, TX 78245 Office: 210.680.5600 Email: sonnyparedez@yahoo.com TIADA Executive Director Jeff Martin PO Box 127/Round Rock 78680 Office Hours M-F 8:30am - 4:30pm 800.442.5944 • Fax 512.244.6218 jeff.martin@txiada.com
I s s u e 11
/
N o v e m b e r 2 013
texasDealer
President Michael Thomasson/Mike Carlson Motor Company 264 Exchange St. Burleson, TX 76028 Office: 817.366.9578 Email: mthomasson@mcmcauto.com
President Elect Brent Rhodes/Fiesta Motors 5150 Industrial Way Drive Buda, TX 78610 Office: 512.312.2201 Email: brent@fiestamotors.net
/
5 Officers’ Message
contents
by Brent Rhodes, TIADA President-Elect
9 Controlling Delinquency in BHPH by Gene Daughtry
10 Upcoming Events 12 2013 Tax Changes – Do They Affect Me and What Should I Do? by Dave Wiggins, CPA
14 On The Cover: Named Driver Auto Policies Under Fire by Danny Langfield
17 New Members 20 TIADA Day at the Auction: The 2013 Tour 22
Vegas, Baby! Top Recruiters of 2013
24 Regulation Matters: MVInet: Just Another Expense or Cheap Insurance? by Danny Langfield
29 Fines & Violations 41 Legal Corner: Is a Car Seller Liable for Accidents Caused by His Buyer? by Michael W. Dunagan
44 Local Chapters 44 2013 Auto Auction Directory & Resource Guide
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... starting November 15th, members can renew their membership online? Just login with your username and password, follow the prompts for Membership Renewal and your membership will be renewed through December 31, 2014. The Editor of the Texas Dealer magazine is Danny Langfield, Deputy Executive Director 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, P.O. Box 127, Round Rock, TX 78680-0127. 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 Getting Ahead of the Regulatory Curve
W
e all strive to have great customer service. Great customer service leads to satisfied customers which leads to more sales and more payments, right? Well, I contend that an extreme level of customer service may also help our industry get ahead of the regulatory mandates that are looming on the horizon. You may recall the legislation that plagued the used car industry in California recently. Some of this legislation stemmed from the knee-jerk reaction to issues related to customer complaints. Each legislative session here in Texas, our industry is faced with similar issues. Many of these issues come about because of dissatisfied customers that have complained to the regulatory agencies that oversee our industry. The regulatory agencies then assume that ALL car dealers must treat their customers in this same manner, so they try to create rules to solve the problem. Michael Thomasson, our current TIADA president, recently spoke on a panel at a convention I attended. He said, “Why don’t we get ahead of the regulators before they mandate changes on us?” This profound statement really resonated with me. I believe that if our industry would create a pattern of providing Positively Outrageous Service (the theme of one of our keynote speakers from the recent TIADA Annual Conference) that it would be harder for the regulators to mandate changes on us because our industry was already providing this level of service for our customers. When regulators come to investigate dealers regarding customer complaints, they typically look for patterns. Is the complaint a one-time occurrence or a pattern of misconduct? Yes, I know we are all capable of making mistakes. However, if the overwhelming pattern shows excellent customer service, this could make your dealership look favorable in the eyes of regulators. If our
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by Brent
Rhodes
Fiesta Motors (Buda) TIADA president-elect
industry began to be more proactive in taking care of our customers, it could make our entire industry look more favorable. This is another reason I believe education is so important. New dealers as well as seasoned dealers need to constantly learn new ways to become better dealers. TIADA offers many different education options each year. Please check out the Upcoming Events section on page 10 for available sessions in the coming months. When I joined TIADA many years ago, I quickly realized there was a wealth of information to learn from our state’s most experienced dealers. I learned that taking care of our customers was the number one goal in this business. Here are some of the other things I’ve learned along the way: Stand behind my vehicles with a warranty or service plan. Offer maintenance programs to help customers with repairs after the warranty expires. Don’t charge the absolute maximum interest rate. Be transparent about vehicle history reports and vehicle conditions. Report good credit to credit bureaus (not just bad credit). Help educate our customers on mechanical issues and what to do when there is a mechanical breakdown. These are just a few ways that I have chosen to offer better customer service. You may have others. I would love to hear from you if you offer Positively Outrageous Service. Please feel free to email me at brent@fiestamotors.net. Now is the time, my fellow TIADA members, for us to band together and help make our industry better! Take care of your customers! It will help you sell more cars and it just might help our entire industry as well! 5
TIADA DeAler AcADemy 2013
Dealership Accounting for BHPH
a seminar with Dave Wiggins & Kevin Roy, CPAs
Successful BHPH accounting means more than just keeping the books clean. This session will address hot-button accounting issues as well as the overall aspects of a dealership’s financials that most affect your bottom line including: n
Key Benchmarks and Metrics
n
n
Internal Controls
n
n
Cost Analysis
n
n
Bank Covenants
n
When to File the 1099-C
n
The Impact of Healthcare Reform Lease-Here, Pay-Here Related Finance Companies Sales Tax on GPS Units
Seminar will be held 9:00a.m. - 12:30p.m.
Wednesday, November 13, 2013 Arlington, Texas Sheraton Arlington Hotel 1500 Convention Center Drive | Arlington, TX 76011 | 817.261.8200
Thursday, November 14, 2013 Houston, Texas Crowne Plaza Hotel 12801 Northwest Frwy. | Houston, TX 77040 | 713.462.9977
$99 TIADA Members, $199 Non-members (includes up to 3 attendees per dealership)
Register online at w w w . t x i a d a . c o m or by phone at 800.442.5944. Texas Independent Automobile Dealers Association
Sponsored by:
www.cliftonlarsonallen.com
feature Controlling Delinquency in BHPH by Gene Daughtry
Executive Conference Moderator, NCM Associates
U
nderwriting is the first and most important way to control delinquency. You have to determine the amount of risk you want to endure and design your to fit that business model. You should sell vehicles that are in a price range aligned with your risk model, so that your losses are tolerable and the customers you are selling to are happy to pay for the vehicle after they purchase it. In my operations we used a strong closing with visual aids to help the customer remember what they agreed to. From the moment our sales people “upped” a customer, they were working to assist in collections. Our sales people knew their job was to gather information. We trained everyone about the process of underwriting and how it affected the collector long after the car left the lot. One step in our process was after the underwriter approved the customer, our sales people would use a handwritten document to write up trade figures, pickup payments, regular payments and payment dates (always paydays). The handwritten page was signed by the customer and kept on file. Later if disagreements ensued during collection efforts, having that handwritten page usually ended the argument quickly. Most of the time when a customer disagreed with collector activity it was not about the actions of the dealer. It was usually about their job/family situation or ill-advised spending when they should be paying their bills first. Another important way to control delinquency is to make sure your collector is being diligent and organized. If a customer cannot pay the full payment due, your collector needs to receive a payment agreement from the customer when they call or come in. Whatever that agreement, your collector must follow up and attempt to make the customer adhere to it. You being flexible is important when dealing with people. Flexible is agreeing to change payment dates when paydays change, helping customers who have fallen behind by waiving late fees or deferring payments for them if they prove the reason given. Both sides should follow an agreement put together between customer and collector. Remembering that you are dealing with human beings is important. Establishing LTR (Like, Trust, Respect) with the “regular contacts” should be a goal of your collectors. I worked with our collection and
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cashiering staff to make sure they were friendly and understanding (within limits) so customers wouldn’t avoid calling out of a hatred of explaining an issue to an unsympathetic ear. Being flexible is fine, but customers are people and you should listen with a dose of skepticism. My collectors ask customers to bring proof (doctor bill, check stub, garnishment notice, funeral program) of whatever story they are telling in exchange for us forgiving a late charge or deferring a payment. In our operation, I would be the only person who could physically make account changes. That way, I was involved in the decision and the collector kept me in the back of their mind when talking to someone about an account. If the customer broke two agreements, we picked up the vehicle in an attempt to show the customer we were serious. In many cases, if redeemed, the payments on the repo would be paid more consistently in the future. Do not allow your customers to think you are the easiest of their payments to miss while they pay other bills or buy lottery tickets. Also, give the car back to them. If the customer comes in, seems to understand the importance of keeping current and has some money (and proof of insurance) work with them. Finally, the way you handle mechanical failure plays a huge role in your delinquency rate. If the car won’t go, they won’t pay. You have to decide how you are going to handle breakdowns and make sure your customers understand your policy so expectations are controlled later. We offered a third party, 24,000-mile extended service plan on every vehicle we sold and 9
Upcoming Events TIADA Dealer Academy
Other TIADA Events
November 2013 4 Dealer 101: Nobody Told Me That!
January 2014 27 TIADA Board of Directors Meeting
Crowne Plaza Hotel 12801 Northwest Frwy. Houston, TX 77040 713.462.9977 Online registration available at www.txiada.com
13 Dealership Accounting for BHPH
Sheraton Arlington Hotel 1500 Convention Center Drive Arlington, TX 76011 817.261.8200 Online registration available at www.txiada.com
14 Dealership Accounting for BHPH Crowne Plaza Hotel 12801 Northwest Frwy Houston, TX 77040 713.462.9977 Online registration available at www.txiada.com
Austin, TX
April 2014 21 TIADA Board of Directors Meeting
Austin, TX
July 2014 27–30 TIADA Annual
Conference & Expo Hyatt Regency Lost Pines Resort & Spa 575 Hyatt Lost Pines Road Lost Pines, Texas 78612
had penetration on 98 percent of our loans. The policy covered far more than just the power train and allowed our customers to receive service for a small deductible while our shop consistently made a profit. The service contract we used offered nationwide roadside assistance and up to 150 miles per incident towing so our vehicles were not left on the side of the road or in a parking lot. Even if the service policies expiration date or mileage limit had passed, many of our customers would still call to check coverage, which informed us of a problem. Your controlling of delinquency is about anticipating problems that arise in our business and having policies in place to deal with them. In most cases, delinquencies are personal customer issues projected onto you. Making certain your associates and customers understand your expectations in each situation will help you keep better control of your portfolio performance. Gene Daughtry is an executive conference moderator, trainer and consultant for NCM Associates with specialization in sales, finance and special finance for franchised and BHPH/ LHPH dealership operations. To reach Gene, email gdaughtr y@ncm20.com or call 913.232.0871
December 2013 2 Keeping Your Dealership
Legal & Compliant Crowne Plaza Hotel 6121 N. IH-35 @ Hwy 290 Austin, TX 75752 512.371.5210 Online registration available at www.txiada.com
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feature
2013 Tax Changes – Do They Affect Me and What Should I Do? by Dave Wiggins, CPA
Principal, Dealerships, CliftonLarsonAllen
{Editor’s Note: TIADA will be offering a ½ day seminar entitled, “Dealership Accounting for BHPH” on November 13 in Arlington and November 14 in Houston. This seminar will be led by the author and will expand upon the topics addressed below.}
W
e have just survived the government shutdown and a possible credit default for our country. It all started with a cry to overturn ObamaCare, the new health reform that begins in earnest in January, 2014. As we have learned, there will be some changes and additional regulations that will continue to define this law; however, it is here to stay. I want to discuss some of the significant income tax provisions that began in 2013 as part of the Affordable Care Act or other tax law changes that have subsequently been enacted to fund the cost of additional health care or balance the budget. Generally such tax provisions will result in additional tax to those individuals considered to be “wealthy,” even though the definition of wealthy changes with respect to each tax issue. Below are some of the more significant tax changes and the planning you may want to consider for this year-end. First, effective January 1, 2013 the employee portion of Medicare tax will be increased from 1.45 percent, to 2.35 percent for so called “high earners.” This .9 percent tax increase will occur on only the employee share of wages, not the employer share of wages. “High earners” are considered single individuals with wages in excess of $200,000, and married filing joint couples with wages above $250,000. It will also be assessed on self-employment earnings. Employers will be responsible for withholding this additional tax on employee wages. In planning for this additional tax, persons with self-employment income from sole proprietorships or partnerships that have income exceeding these amounts may want to consider converting their current entity to an S corporation. By doing so, you may be able to convert self-employment income subject to this tax to S corporation income that is not subject to this tax. This planning may allow the dealership to avoid all Medicare taxes, except those on a reasonable wage taken from the corporation.
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For employees (including shareholder employees of S corporations) you may want to consider if bonuses can be delayed to stay under the threshold amounts. S corporation shareholder employees may also want to consider reducing their wages below the “high income” amounts. If you are taking other distributions, besides wages, be sure to properly document the reasons for such distributions, to avoid IRS recharacterization of the distributions as wages. The second significant tax increase in 2013 will be the Medicare Tax on Unearned Income. This is generally referred to as the “Net Investment Income Tax” (NII) and represents an additional 3.8 percent surtax on unearned income for taxpayers with modified adjusted gross income in excess of $200,000 – single, or $250,000 married filing joint. Unearned investment income is considered: interest income, dividends, annuities, royalties, rents, passive income (income from businesses that the taxpayer is not materially involved in), and capital gains. Capital gains do not include gains from active business sales or sales of principal residences. Please note that unearned income does not include interest income earned by buy-here, pay-here dealers on their vehicle note portfolios or other income earned through the dealership operations. Such income is considered active business income and therefore is not subject to the additional income tax. It does however include interest income paid to business owners on promissory notes made to their businesses. The unearned investment income surtax does not apply to the following: active trade or business income, IRA and retirement plan withdrawals, self employment income or tax exempt income. It does however apply to investment income from trusts and estates. In planning for this additional tax you may want to consider timing when payments for interest will be paid. Pay interest to cash basis taxpayers in years that your income is less than $200,000 (single) or $250,000 (married filing joint). In years that exceed this amount accrue such income with your company but don’t pay it. You may also want to consider the effect of interest income calculations on intercompany notes between related companies. And you want to consider changing investments from taxable interest income accounts T e x a s
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to tax exempt interest accounts; or changing stock investments from high dividend stocks to low dividend paying stocks. You will also notice that rents are subject to the unearned investment income Medicare surtax. Since many of you have businesses that rent property from other entities, you will want to consider review of your existing lease agreements to determine if rent should be adjusted. To the extent that rental payments still meet the “fair market rent” standards, any reduction in rent paid to the rental company, which then remains in the operating dealership, will result in a 3.8 percent tax benefit. For some people that have significant real estate activities, it may be possible to structure your real estate activities to qualify as “material participation” activities. If qualified a “material participation” activities they will not be subject to the additional 3.8 percent tax. Some of the planning ideas mentioned are complex and will require a further review based on your entire corporate structure. The key message you should take from this article is that planning this year before yearend is crucial and will have more importance than past years. There are tax planning strategies you may also want to consider this year that we haven’t addressed in this article.
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It is clear that the Affordable Care Act is here to stay and you should start planning now. Our firm has a Health Insurance and Penalty Calculator, which will help you to weigh your options along with the tax effects. Contact us to discuss the challenges that you are facing or some of these topics further. To ensure compliance imposed by IRS Circular 230, any U. S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed by governmental tax authorities. Dave Wiggins, CPA is a partner with CliftonLarsonAllen and is a member of the firm’s dealership team. He can be reached at david.wiggins@CLAconnect.com or 314-925-4316. CliftonLarsonAllen is one of the nation’s largest certified public accounting and consulting firms. Structured to provide clients with highly specialized dealership insight, the firm delivers assurance, tax and advisory capabilities. For more information about CliftonLarsonAllen, visit www.cliftonlarsonallen.com.
13
on the cover by Danny Langfield
TIADA Deputy Director
Named Driver Policies Under Fire
D
uring the 2013 Texas legislative session, TIADA actively supported various bills that sought to improve protections for both the public at large and lien holders. Chief among those was HB 1773 (Ed Thompson, R – Pearland), which proposed to eliminate the named driver auto policy altogether. As documented in the September 2013 issue of the Texas Dealer (“2013 Legislative Summary”), HB 1773 passed out of the house but did not pass in the senate. However, SB 1567 (Wendy Davis, D – Fort Worth), which TIADA also strongly supported, did pass and became law on September 1, 2013. This legislation requires, among other provisions, that the ‘proof of insurance’ form for any named driver policy contain the following statement: WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDE COVERAGE FOR INDIVIDUALS
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RESIDING IN THE INSURED’S HOUSEHOLD THAT ARE NOT NAMED ON THE POLICY. The association has been encouraged by recent media reports which have helped highlight the problems caused by these policies. On the following pages the reader will find articles from The Dallas Morning News and The Insurance Record reporting on the problems with named driver and other so-called “junk” policies as well as the implementation of SB 1567. TIADA will be working in the interim to help legislators better understand the nature of the named driver policy and the deleterious effect such policies have on lien holders as well as the public at large. The association’s goal is to partner with other stakeholders and public interest groups to secure the elimination of the named driver policy in the next legislative session. T e x a s
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New Texas law aims at ‘junk’ auto insurance policies covering only certain drivers by TERRENCE STUTZ
Austin Bureau, Dallas Morning News
M
ore than a million Texas drivers with limited auto insurance coverage face increased scrutiny under a new state law that aims to shine a light on policies that cover just one driver, not an entire vehicle. A measure that the Legislature enacted and Gov. Rick Perry signed into law this year requires that insurers who sell “named driver” auto policies disclose the limits of the coverage to drivers. They must also list the names of covered drivers on insurance ID cards they issue to customers. Under such policies, often called “junk” policies, coverage is restricted to one person listed as the driver. They do not cover family members in the household. That means when family members other than the named driver use a family vehicle, they have no insurance protection. The policies are usually cheaper, but policyholders are sometimes unaware of the coverage limits. As a result, other motorists are at risk of being hit by an uninsured driver. House members tried to eliminate the policies outright, but the Senate balked. “We are seeing these policies pop up more and more across Texas,” said Alex Winslow of Texas Watch, a consumer group active in insurance issues. He pointed to Texas Department of Insurance figures estimating that there are more than 1.2 million named driver policies in the state.
Accident victims
Many North Texas drivers in the past have lodged complaints with the insurance department against companies that have regularly sold the policies. The complaints typically center on the refusal of the insurer to pay for damage caused by a driver later disclaimed by the company. The daughter of the longtime chairman of the House Insurance Committee, Republican Rep. John Smithee of Amarillo, faced just that. Her car was rear-ended a couple of years ago by a motorist who provided proof of insurance at the scene of the accident. But when she contacted the man’s insurer, the company said the driver had no coverage under the policy. “We were forced to file a claim with our own insurance company,” Smithee said. The Panhandle lawmaker said the named driver policy has been one of the major loopholes in a state law that requires Texas motorists to carry insurance. He and most House members strongly supported a bill to bar sales of the policies. The House approved it on a 108-24 vote. But the measure
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died in a Senate committee. Key insurance lobbyists representing agents and companies were among the opponents. The named driver legislation that did pass both chambers, written by Sen. Wendy Davis, D-Fort Worth, tightens up state regulation of the policies. It requires insurers to notify policyholders orally and in writing that the policy covers no one else in the household. Further, the limited protection must be clearly stated on the insurance ID form. And the measure would prohibit insurers from selling policies that do not include staterequired minimum coverage. The new requirements must be in place as of Jan. 1. In the insurance policy that most Texans buy, liability coverage follows the vehicle. That means the vehicle is covered for damage caused to other drivers and vehicles, no matter who is at the wheel. Leading insurers generally don’t sell named driver policies. That gives an advantage to the smaller companies that do, as they undercut premiums charged by larger insurers such as State Farm. “Typically the driver gets a quote for insurance and it is usually high. Then the agent says he can reduce the price by limiting drivers who are covered,” Smithee said.
State complaint list
Among the companies that sell a large number of the policies is Loya Insurance Co. It has ranked near the top of the state’s complaint list for major auto insurers for several years. In 2012, the complaint rate for Loya was more than twice the state average for auto insurance companies. Smithee and other supporters of the new law said a big advantage will be that police officers stopping a driver or responding to an accident will now know whether the driver is violating the law. The officer can issue a ticket or arrest the driver if there are multiple violations. “Right now it is difficult to tell the difference between a regular policy and a named driver policy by looking at an insurance ID card,” he said. Winslow said his group will join efforts in the next legislative session to do away with the policies. Mark Hanna of the Insurance Council of Texas, an industry trade group, said there has been a great deal of confusion surrounding the policies. That includes drivers who buy the policies as well as those hit by the drivers. “It’s a less expensive policy, and that’s why people buy it,” he said. “We’ve heard of many cases of drivers involved in horrific accidents who later discover that there is no insurance coverage because of one of these policies.” Smithee said some customers are trying to comply with the mandatory insurance requirement as cheaply as possible. But others don’t understand that their policies are limited. “The truth is a lot of policyholders in Texas are not educated when it comes to insurance,” he said.
©2013 Reprinted with permission from Dallas Morning News 15
Named Driver Policies Evoke Industry Ire by BILL KIDD
Austin Correspondent, The Insurance Record
B
eginning next Jan. 1, Texans who purchase a “named driver” automobile insurance policy must be informed — orally and in writing — that individuals who reside in the household, but are not named on the policy, are not provided coverage. Insurance ID cards associated with Named Driver policies will be required to identify the named driver. Senate Bill 1567 by Sen. Wendy Davis, D-Fort Worth, passed by Texas lawmakers this year, added the notification requirements to the Insurance Code. The legislation applies to policies “delivered, issued for delivery, or renewed on or after” Jan. 1, 2014. SB 1567 passed after the House of Representatives had approved another bill which would have banned named driver policies — but that measure died in a Senate committee.
Insufficient Coverage
Critics of the named driver policies say the policies don’t provide sufficient protection to consumers, and purchasers often don’t understand the policies’ limitations. Alex Winslow, executive director of Texas Watch in Austin, told The Insurance Record the consumer advocacy group will attempt again in the 2015 legislative session to abolish the policies. “They’re junk,” Winslow said. “They don’t offer consumers the protection that’s needed … and we’ll continue our commitment against them,” he reported. The Texas Department of Insurance (TDI) estimates (based on a 2011 named driver data call) that there are approximately 1.2 million named driver policies in the state. A TDI spokesman said the department did not have figures on consumer complaints involving those policies.
No Family Member Coverage
The author’s “statement of intent” for SB 1567 filed with the Senate Business and Commerce Committee explains that named driver policies “provide coverage only for drivers specifically named on the policy and non-household drivers with permission.” “An issue can arise when a member of the policyholder’s household, who is not named on the policy, drives the insured vehicle. “When this situation occurs, the driver is not covered by the policy, regardless of whether they have permission from the policyholder to drive the automobile.
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Policyholders Don’t Get It
“Many policyholders and drivers, however, do not understand these coverage restrictions, which can lead to situations of unknowingly uninsured drivers on Texas’s roads,” the statement says. At a public hearing by the Senate Committee, San Antonio used automobile dealer Robert Beck, president of Stop N Drive Motors and a member of the Texas Independent Automobile Dealers Association legislative committee, said he has “seen first-hand” the consequences of named driver policies. The dealership offers in-house financing and requires “full coverage policies” of its customers, but in recent years has seen “a trend of policies providing less and less coverage for our customers,” Beck said. Most of those customers are not aware of limitations of the policy and believe they are paying for a standard insurance policy, Beck reported. Beck said some customers found out only after an accident that they were not covered for the damage — and in some cases the dealership was forced to absorb the loss.
Industry Support at Hearing
At the House Insurance Committee hearing on SB 1567, the bill received support from the Association of Fire and Casualty Companies in Texas (AFACT), Independent Insurance Agents of Texas (IIAT), Old American County Mutual Insurance Co., and Texas Watch. Rep. Craig Eiland, D-Galveston, carried the legislation in the House.
HB1773 Widely Supported
The House also passed House Bill 1773 by Rep. Ed Thompson, R-Pearland, which would have prohibited named driver policies but would have allowed insurers to add an endorsement to a policy to exclude coverage for a specific driver. The bill received support at an April 2 House Insurance Committee hearing from the Texas Independent Automobile Dealers Association, Texas Trial Lawyers Association, Texas Watch, and Third Coast Auto Group, AFACT, IIAT, Property Casualty Insurers Association of America, and Texas Surplus Lines Association. The House Journal shows the legislation was approved May 9 on a 109-23 vote. The statement of intent for HB 1773 says that in some instances, confusion over coverage “could result in an injured third party having limited recourse to recover damages.” HB 1773 was sent to the Senate Business and Commerce Committee, where it died without a public hearing.
©2013 Reprinted with permission from the Sept. 19, 2013 edition of The Insurance Record, “The Voice of Texas Insurance Since 1934,” Dallas, Texas, www.InsRecord.com. T e x a s
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Please Welcome Our Newest TIADA Members Auto Forum LLC Samuel Lopez 5959 San Pedro San Antonio, TX 78212
CarsAndTrucksDirect.com Bruce Muhlberg 39332 IH 10 W Boerne, TX 78006
Giant Auto Mart Inc. Arik Brounchtaine 7815 Hillcroft St. Houston, TX 77081
Auto Spot Hanan Tuchshnieder 6441 Bissonnet Houston, TX 77074
Champion’s Auto Sales Co. LC #2 Martin Aguayo 2024 Jacksboro Hwy Fort Worth, TX 76114
GMI Credit Omar Mausi 8408 Highway 6 South Houston, TX 77083
Automobiles by Dave LLC Dave Dibble 14528 Wallisville Road Houston, TX 77049
Chesty’s Auto Steven Shaffer 659 County Road 2798 Alvord, TX 76225
Govea’s Auto Sales Martin Govea 5918 W. Cedar Bayou Lynch Rd Baytown, TX 77521
Bennett Auto Plex Tommy Bennett 5959 San Pedro San Antonio, TX 78212
Chimax Auto Sales Christian Ugwu 9510 Old Quarry San Antonio, TX 78250
Grace Automobile Co. Pedro Salmeron 12215 Spring Grove Dr. Houston, TX 77099
Best Car Auto Service Inc. Mustafa Taksh 7407 Harry Hines Dallas, TX 75235
Country Motors Ahmad Husein 6610 N. Eldridge Houston, TX 77041
GSC Sales Charles Papp 143 Snug Harbor Drive Montgomery, TX 77356
Best Drive Auto Wail Suleiman 7767 Culebra Rd San Antonio, TX 78251
Craghead Investments Larry Craghead 801 N Jupiter #200 Plano, TX 75074
H&H Auto Sales Ed Hernandez 4022 Blanco Road San Antonio, TX 78212
Best Price Auto Sales Jesse Lopez 4102 NE 28th Street Haltom City, TX 76111
Daisy Motor Group Josh Godwin 3000 East Palm Valley Round Rock, TX 78665
Hasan Motorcars Inc Dean Al-Haj 1818 Sherwood Forest St. Houston, TX 77043
Buy N Drive Auto Sales LLC Brad Ramsey 11626 E. Northwest Hwy Dallas, TX 75218
Discover Motors Ali Ibrahim 4917 Ross Avenue Dallas, TX 75206
Hou-Tex Finance Sammy Koopaei P.O. Box 1972 Alief, TX 77411
Buy Rite Auto Sales Jeff Noia 3723 S.W. Military Drive San Antonio, TX 78211
Eastern Motors Doug Speer 705 E. Broadway Altus, OK 73521
Icars Donnie Awadat 307 Parker Road Arlington, TX 76012
Capital Fleet Farid Atiqi 2034 Bingle Rd. Houston, TX 77055
Elite Luxury Autos Hodi Bayatneh 3225 Keller Springs Rd Carrolton, TX 75006
Infinity Auto Sales Faustino Castillo 804 W. William Joel Bryan Bryan, TX 77803
Car Mart Max Namazi 6529 W. Sam Houston N Houston, TX 77041
Fidelity Ventures Ramin Nia 11444 N. Stemmons Frwy. Dallas, TX 75229
IPC Investments Inc Gib Nabbout 23 Lake Sterling Gate Dr. Spring, TX 77379
Car Mart 2 A.J. Kajileh 5111 Tarnbrook Dr Houston, TX 77084
Fuentes Used Cars Jose Fuentes 9450 Airline Houston, TX 77037
Itrade Investments Mohammad Shaito 13999 Goldmark Drive, #427A Dallas, TX 75240
Austin Century Auto Sales Reza Amirnejab 16417 FM 1325 Austin, TX 78756
Car Mex Auto Sales Ricky Chavez 3334 Banning Street, Suite C Dallas, TX 75233
Fusion Autoplex Omar Mansi 8408 Highway 6 South Houston, TX 77083
J&R Used Cars Jose Martinez 6415 Airport Blvd. Houston, TX 77048
Auto 8 Plaza Masoud Ashtari 6613 W. Sam Houston Pkwy Houston, TX 77041
Car Zone Motors Joseph Karzoun 9110 Clarkcrest St #720 Houston, TX 77063
Garland Motors Ted Garland 1560 Arndt Rd. New Braunfels, TX 78130
Jalisco Auto Sales Martin Aquiñaga 1131 Bandera San Antonio, TX 78228
Dealer Members 5 etoile LLC M. Riad Sukkar 709 Lingco Drive, #103 Richardson, TX 75081 A & G Auto Sales Aldo Gonzalez 9727 Harry Hines Blvd. Dallas, TX 75220 A2A Auto Sales Kevin Estalou 5630 San Pedro Ave. San Antonio, TX 78212 ACE Motor Group, LLC Hani Saadalla 3312 NE 28th Street Fort Worth, TX 76111 Advanta Auto Enterprise Inc. Hadi Alsayed 6515 Spring Cypress Rd. Spring, TX 77379 All Star Financial Jim Griffin 11848 Lake June Rd Balch Spring, TX 75180 Allied Autoplex Ziad Abd 7115 Airport Blvd Houston, TX 77061 Allstate Auto Sale Shahin Asgari 1131 Basse Rd. San Antonio, TX 78212 American Auto Credit, Inc Nabil Darwish 2903 19th Street Port Arthur, TX 77642 Anderson Auto Ranch Ron Anderson 15373 Highway 198 Mabank, TX 75147 Andres Auto Plex Andres Cantu 620 Coke Street Laredo, TX 78040
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Please Welcome Our Newest TIADA Members
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Just Quality Auto Sales Christian Jaramillo 2633 E. Main St. Grand Prairie, TX 75050
North Texas Auto Sales Alex Khafaji 917 Providence Denton, TX 76205
Sam’s Auto Care Sam Cherian 4006 W. Plano Parkway Plano, TX 75093
Tru Kar Frank Akins PO Box 12 Hempstead, TX 77445
Kars Kingdom Fahad Ashraf 8735 Jones Rd Houston, TX 77065
Oil Depot AUto Sales LLC Esam Mobarak 2128 S. Buckner Blvd #200 Dallas, TX 75227
Sami Auto Muhammad Mustafa 10202 Deer Trailor Houston, TX 77038
U 2 Auto Phuc Pham 1316 Berkeley Court Plano, TX 75023
Killeen Auto Sales Jena Kunz PO Box 1693 Killeen, TX 76540
Oryx Motors Ahmad Khatib 210 S. Bagdad Road Grand Prairie, TX 75050
Schneck Motor Company Al Schneck 1212 Commerce Drive Plano, TX 75093
Unique Auto Group Amir Kasbidi 3221 Jeanetta St Houston, TX 77063
KWI Enterprises Inc. Abdzer Kabal 1123 East Abram Arlington, TX 76010
P & L Auto Sales Apolinar Garcia 11479 Harry Hines Blvd Dallas, TX 75229
South Park Motors Ernest Gonzalez 1202 McCauley San Antonio, TX 78224
Uniwide Auto Express Nader Nasiripour 13338 Floyd Circle Dallas, TX 75243
L A Motorcars Lance Adams 346 S Central Expressway Richardson, TX 75080
Pace Motors Clay Pace 1670 S. St Hwy 123, Unit #2 Karnes City, TX 78118
Space City Auto Sales Moises Cisneros 8311 Telephone Road Houston, TX 77061
US Direct Auto Inc Asghar Mohebpour 11527 Jones Rd Houston, TX 77076
Lake City Investment LLC Carlos Sandoval 510 S. Edmonds Lane Lewisville, TX 75067
Palm Tree Auto Sales Rasool Aghlani 7307 Manfield Hwy Kennedale, TX 76060
Supreme FCU Bahram Behjoo 650 S Walton Walker, Ste 100 Dallas, TX 75211
Wheels Unlimited Richard Gray PO Box 1757 Livingston, TX 77351
M & G Auto Sales Fady Guirguis 2121 Southmore Ave Pasadena, TX 77502
R & V Auto Sales Bobby Malhotra 12207 Grove Pt Houston, TX 77066
T2 Autoplex, LLC Troy Babcock PO Box 245 Wheelock, TX 77882
Yesenia’s Auto Sales Yesenia Garza 3039 Mansfield Hwy Fort Worth, TX 76119
Mallards Motors, LLC Isaac Wardell 701 E. Main Street El Dorado, AR 71730
Ram Motors Inc. Arturo Ayon 7522 Danridge Road Rowlett, TX 75089
Texas Hou’s Auto Haiteng Hou 6166 Westline Dr. Houston, TX 77036
Metro Auto Sales Mike Khater 2006 E. Division Street Arlington, TX 76011
Realtech Motors LLC Ahmad Itani 903 W. Division Street Arlington, TX 76012
Texas Outdoor MotorsLLC Robert Blankenship 9201 Hwy 290 W Austin, TX 78736
MGM Auto Karen Mgerian 5711 Industry Park Drive San Antonio, TX 78218
Regency Motor Cars LLC Chuck Duke 6210 FM 1488 , Suite D Magnolia, TX 77354
TH Motors LLC Taissir Haek 1503 White Willow Lane Arlington, TX 76002
Miguel Auto Fleet Miguel Mendoza 2101 E. Main St. Grand Prairie, TX 75050
Rene’s Used Cars Rene Gonzalez 2010 E. Division St. Arlington, TX 76011
theRVdream, LLC Bruce Orr 6408 CR 803- Connie Road Burleson, TX 76028
Miriam’s Auto Sales Miriam Varela 2926 E. Main Street Grand Prairie, TX 75050
Riverside Motors Gerardo Robles 807 W. Hwy 83 Pharr, TX 78577
Tompkins Motor Co Joe Dale Tompkins 1551 W Grant (Hwy 19) Paul Valley, OK 73075
Motor Trade Salman Dadabhoy 5708 Clarewood Dr. Houston, TX 77081
Royal Oaks Motors Inc Waleed Almansi 14310 Auto Parkway Houston, TX 77083
Trademark Financial Service Hani Saadalla 3320 NE 28th St Fort Worth, TX 76111
National Auto Sales Ali Naofal 11329 Huffmeister Houston, TX 77065
RTG Automotive Inc Celestino Ruiz del Pozo 6406 FM 1488 Rd, Suite B Magnolia, TX 77354
Trinity Auto Sales Group Gerardo De Anda 5801 W. Jefferson Blvd. Dallas, TX 75211
Associate members Qualitech Machineries Nigeria Limited Taju Aminu 1335 N. Beltline Road, Suite 15B Irving, TX 75061
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Manheim DFW GM Nicole GrahamPonce with Ahmed Belmeshkan (l) and Wayne Meagher (r)
Billy Kraatz, General Manager of Big Valley AA in Corpus Christi
TIADA Day at the Auction
2013
The
Tour
15 tour stops at 12 different auctions brought an astonishing 219 new members! Special thanks to these auctions for their support! April 17 . . . . . . . . . . . . . . . . . . Manheim San Antonio April 24 . . . . . . . . . . . . . . . . . . . . . . . Manheim Dallas April 25 . . . . . . . . . . . . . . . . . . . . . . . . Manheim DFW May 7 . . . . . . . . . . . . . . . . . . . . . . . America’s AA Buda May 28 . . . . . . . . . . . . . . . . . . . Big Valley AA - Corpus Aug 22 . . . . . . . . . . . . . . . . . . . . . *Adesa San Antonio Aug 29 . . . . . . . . . . . . . . . . . . . . . . *Adesa Dallas (am) Sept 9 . . . . . . . . . . . . . . *America’s AA Houston (pm) Sept 10 . . . . . . . . . . . . . . . . . Manheim Houston (am) Sept 18 . . . . . . . . . . . . . . . . . . Manheim San Antonio Sept 24 . . . . . . . . . . . . . . . *America’s AA Dallas (pm) Sept 25 . . . . . . . . . . . . . . . . . . . . . . . Manheim Dallas Sept 25 . . . . . . . . . . . . . . . . . . . . . . Adesa Dallas (pm) Sept 26 . . . . . . . . . . . . . . . . . . . . . . . . Manheim DFW Oct 3 . . . . . . . . . . . . . . . . . . . . . . . Manheim TX Hobby Steve Green (center) of Manheim Houston with Byron Riley (l) of Uncle Buddy’s PreOwned and Michael Zak of Dixon Motors
In the lanes with America’s AA Dallas GM Robert Hammonds (l) and Wayne Meagher
TIADA dealers (l-r) Byron Riley, Michael Zak, & Michael Wilson came out to help recruit new members at Manheim Houston
We enjoy hosting TIADA Day at the Auction mostly because it gives us a chance to show our dealers how much we value and support the association. It also gives us a chance to talk about all of the great things being done by the association at the state and national level to protect and strengthen the industry. And finally it is nice to get those smiling pretty faces in our lobby helping to promote our sale. Keep up the great work Aimee & Cristina! Wayne Carey, Manheim Dallas AGM
The “TIADA Day at the Auction” gave our customers an opportunity to learn and exchange information about their industry in a great environment with people in the know.
New General Manager of Manheim Texas Hobby, Rich Curtis (l) with Michael Wilson
Buddy Cheney, GM, America’s Auto Auction North Houston
(l to r) Robert Beck, Manheim San Antonio GM Eddie Piatnik and SAIADA chapter president Sonny Paredez
Bill Roberts (l), Asst GM of ADESA Dallas; TIADA staff member Cristina Rosales-Fowler; and Wayne Meagher (r) of MD Auto Sales
Mark Brown (l), Red Carpet Auto Sales; Sam D’Amato, GM of ADESA San Antonio; TIADA staff member Cristina Rosales-Fowler
TIADA visited Manheim DFW and engaged in many conversations with our customers about the benefits of the association. They created an exciting environment with giveaways and some fun. We appreciate the partnership with TIADA and thank them for all they do for our independent customers.
Ahmed Belmeshkan, New Rio Grande Motors and Wayne Meagher, MD Auto Sales at Manheim Dallas
We are honored to host TIADA at our auctions and support all they do for our dealer customers, especially the association’s work at the legislature. ADESA is proud to support TIADA and the dealers of Texas. Keith Crerar Adesa Regional Director- West
Nicole Graham, Manheim DFW GM
The best thing about having TIADA at our auction? All the excitement! We are glad to host the association and support all they do for dealers. Robert Hammonds, GM, Americas Auto Auction Dallas
Hosting TIADA Day at the Auction is just a fun event for our staff. It gives us a chance to interact with the TIADA staff in our environment. Selling something new to the dealers is always a fun thing for our staff to take on, we get bored with the day to day duties of working at an Auction so TIADA Day is a nice change for us. It is always enjoyable when you have something new to talk about with a customer. Also it gives a great sense of accomplishment when the day is over. John Swofford, America’s Auto Auction Austin
Mark Brown (l) with Eddie Piatnik, GM at Manheim San Antonio
Michael Wilson of George’s Pre-Owned in Beaumont with America’s AA GM Buddy Cheney
John Swofford, America’s AA of Austin GM, with TIADA staff members Aimee FreiMiller (l) and Cristina Rosales- Fowler
TIADA dealers Wayne Meagher (l) and Michael Zak (r) with Manheim Dallas AGM Wayne Carey
+
1300 Members ...and counting! “Texas Dealers are highly fortunate to have a state association that is well run, alive, involved, and responsive on matters of day-to-day importance. However it is up to dealers to lend assistance when asked – WE are the association, WE are the ones who benefit and WE should be able to communicate on a dealer-to-dealer basis how we profit from the knowledge gained, legislation passed, and auction buy-sell fee credits. When I was asked to get involved it was a no-brainer.” – Michael Zak
“The best thing about recruiting new members for TIADA is getting to meet the new generation of dealers. Their energy and excitement is very contagious! I have a few that I have personally mentored for the fun of it and to also make sure they are compliant and know the right way to do things. I do this out of love for the association and love of the car business. I also wanted to be a part of helping the association meet its membership goals!” – Mark Brown
M E M B E R S
1315 as of Oct. 25 *we are chasing the all-time high of 1356 members set in 1995
Thank You Michael Zak . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Dixon Motors, Houston Sonny Paredez . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Discount Auto Center, San Antonio Byron Riley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Uncle Buddy’s Pre-Owned, Houston Jose Engler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Irving Motors, San Antonio
*Wondering how you can earn an all-expense-paid trip to Vegas for the NIADA Convention? Simple — support your association and recruit 20 or more members during our October 1 – September 30 recruiting season and you’re in! Wayne, Mark, Michael and Ahmed did it – and so can you!
Brent Rhodes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Fiesta Motors, Buda Fransisco Martinez . . . . . . . . . . . . . . . . . . . . . . . 2 Vaquero Motors, Dallas
Congratulations to the Top 4 TIADA recruiters, each of whom recruited 20 or more new members and earned a free trip to Las Vegas for the 2014 NIADA Convention, including round-trip airfare, four nights hotel stay at Caesar’s Palace, all meals and complete event registration.
Wayne Meagher M D Auto Sales, Grand Prairie
70 New Members! Wayne Meagher will receive the NIADA Crystal Eagle Award for recruiting over 100 members (109, to be exact) over a two-year period.
Congratulations, Wayne!
Mark Brown
Michael Wilson
Ahmed Belmeshkan
Red Carpet Auto Sales Seguin
George’s Pre-Owned Beaumont
New Rio Grande Motors Fort Worth
33 New Members
25 New Members
22 New Members
“I am a firm believer that numbers count. An organization that tries to advance an agenda for its industry has to prove that it does in fact adequately represent a substantial cross section of participants in that industry. This is so that it doesn’t appear to represent an “old boys club” trying to set a personal agenda. 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 possibly and hopefully new leadership to help us grow and represent our industry. Therefore, that is why I help to recruit new members.” – Wayne Meagher
regulation matters
MVInet: Just Another Expense or Cheap Insurance? by Danny
O
kay everybody, gather ‘round. In this transition period between the scary monsters of Halloween and the comforting gratitude of Thanksgiving, Regulation Matters brings you a story guaranteed to raise goosebumps or make you feel grateful — or maybe both. With the names changed (you will soon see why) this real-life story goes like this... Joe’s Good Cars wholesaled a 2008 Nissan Pathfinder to Big Scoot Auto in January of 2013. Big Scoot Auto retailed it to Mr. Danny Citizen in February, getting Mr. Citizen’s deal bought by Cedar Rapids Finance Co. CRFC experienced problems in getting the title, so much so that they began to proceed against Big Scoot Auto’s dealer bond. However, CRFC did eventually receive the title. In June of 2013, Mr. Citizen decided to trade in the Pathfinder at Skippy’s House of Hondas, a franchise dealership. Skippy’s took the vehicle on trade, paid off the CRFC lien, got the title and wholesaled the vehicle to the main character in our tale (you know he had to be introduced eventually) Honest Babe Motors, a TIADA member. Honest Babe Motors, in possession of a clean, unencumbered title certificate, then sold the vehicle to another dealer, Alamo Go-Go, via a wholesale vehicle auction in July 2013. Alamo Go-Go invested some money reconditioning the Pathfinder, then retailed it to Ms. Jane Smith in August 2013. Here’s where things get hairy. When Alamo Go-Go went to transfer the title into Ms. Smith’s name, the county rejected the application, citing the fact that a legal restraint had been placed on the title by VTR in May 2013. Unable to transfer the vehicle, Alamo Go-Go unwound the deal with Ms. Smith and appealed to the auction to reverse the sale. The auction complied, requiring Honest Babe Motors to take the vehicle back. Furthermore, Alamo Go-Go threatened legal action unless Honest Babe Motors also compensated them for the reconditioning costs they incurred.
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Langfield
TIADA deputy director
In researching the matter, it appears that this Pathfinder is one of eight vehicles involved in a legal dispute between Joe’s Good Cars and Big Scoot Auto, which precipitated the legal restraint being placed on the vehicle in May of 2013. However, as illustrated above, it seems that the existence of this legal restraint was not discovered by any of the other parties involved until the vehicle was retailed in August 2013. In situations such as these, according to TIADA legal counsel Mike Dunagan, each downstream owner in the chain of title has little choice other than to sue the upstream entity from whom they acquired the vehicle. Our member, however, is loath to sue the franchise store where he got the vehicle, as they have historically been a good source of inventory. While no help after the fact, there is one resource that our member may consider using going forward: the TxDMV MVInet service. This service, formerly known as running a TWIX, allows a dealer to set up a motor vehicle inquiry account with the state. Among other vehicle information provided, the motor vehicle record, when applicable, will indicate the presence of a legal restraint on the vehicle. A dealer may begin the process of establishing an account by visiting TxDMV.gov and selecting “Motor Vehicle Inquiry” under the “Dealers” tab (direct access at https://mvdinet.txdmv.gov/cencompop.html). More detailed information on the service as well as the obligations of the user are provided on the website. The service requires an initial escrow deposit of $200 and carries a monthly fee of $23 plus .12 cents per vehicle inquiry. While there is no avoiding the fact that unknown variables may lurk behind every potential vehicle acquisition, dealers may want to consider mitigating some of their exposure by utilizing the MVInet service. T e x a s
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TIADA DeAler AcADemy 2013
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.” This class is the 2013 version of attorney Michael W. Dunagan’s ongoing quarterly compliance seminar. Featuring updates on both federal and state compliance issues, this session focuses 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. u u u u u u u u u u
u u
New Customer ID requirements – what is acceptable? New 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? New 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
Monday, December 2, 2013 Austin, Texas
seminar will be held from 9:00am - 3:30pm
sponsored by:
Crowne Plaza Hotel 6121 H. IH-35 @ Hwy. 290 | Austin, TX 75752 512.371.5210
Discount Pricing for Multiple Attendees! MeMbers – First registrant $149, each additional $99
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Collateral Protection Insurance www.cpiai.com
(Must be from same dealership)
NON-MeMbers – $299 register online at w w w . t x i a d a . c o m or by phone at 800.442.5944. Texas Independent Automobile Dealers Association
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Building success together
November 2013
2080 N. State Highway 360, Suite 105 ● Grand Prairie, TX 75050-1454 972-660-1000 ● Fax: 972-660-1001 85 N.E. Loop 410, Suite 130 ● San Antonio, TX 78216-5862 210-541-9500 ● Fax: 210-541-9501 El Paso ● Amarillo ● 505-232-3100 ● Fax: 505-232-3101
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The Talon Challenge. Put Talon’s Quality & Performance to the Test for Yourself. Let’s get to the truth about The Talon GPS Tracking Device from GoldStar GPS. It’s still by far the best-performing and best-selling device in our market.
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No wonder Talon is the dealers’ first choice for GPS tracking hardware. But we’re not stopping there. Stay tuned for the next-generation Talon CDMA device — with even faster speeds and bigger bandwidth from the leading MRM provider in the country. PuT Talon To The TeST. Call Today and Test The Talon Performance for Yourself.
1-866-655-8825 l GoldStarGPS.com/talonfacts ©2013 Spireon, Inc. All Rights Reserved.
fines& violations 10-0645 ENF Shahrokh Soltani DBA Texas International Auto Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $1,500.00 and attend a Dealer Training Seminar. 11-0152 ENF McCall-TII, Inc., DBA Fort Bend Toyota Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 11-0558 ENF McCall-TII, Inc., DBA Fort Bend Toyota Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 11-0669 ENF Beaumont Motor Co., DBA Chevyland, Classic Buick, GMC, Classic Chevrolet Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00.
Final orders for July 2013. Agreed orders represent a settlement of the case between the department and the licensee. In most cases there has been a finding that a law has been violated by the licensee.
11-0704 ENF Archer Automotive, Inc., BA Archer Kia Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. Cease and desist. 11-0804 ENF Murphy J. Provost, DBA Provost Auto Sales Failure to have dealer or a bona fide employee present during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1)(B). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 11-1451 ENF Brazosport Enterprises Inc. DBA A-Z Motors #2 Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a) (8). Failure to make dealership records available for inspection: 43 TAC 215.144(a) and 43 TAC 215.141(a)(3). $500.00 and attend a Dealer Training Seminar. 12-0146 ENF Hassan Rahmanian, DBA Legend Auto Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Falsified or forged tax or title document:
Transp Code 503.038(a)(1). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,500.00. 12-0194 ENF Sonic Richardson F LP, DBA North Central Ford Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a) (8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00. 12-0842 ENF Lake Travis Auto LLC, DBA Lake Travis Auto LLC Failure to comply with a Final Order: Occ Code 2301.651(a)(3). License is cancelled. 12-0965 ENF Patja LTD, DBA Mi Amigo Auto Sales Advertised the amount of down payment in connection with a credit transaction without including the terms of repayment: 43 TAC 215.263. $2,500.00 and attend a Dealer Training Seminar. 12-1029 ENF Aim Holdings, Inc., DBA Austin Auto Direct Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a) (8). Failure to timely pay lien on a motor
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November 2013
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Garage Liability is our specialty. Kevin Smith Insurance Agency is one of the largest writers of Garage Liability in the state. We work with several a+ rated companies which offer exceptional rates to car dealers and repair shops. Call today for a “quick”
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fines& violations vehicle traded in: Finance Code 348.408(c), Occ Code 2301.651(a)(4). Failure to fulfill written agreement with retail purchaser: Occ Code 2301.651(a)(7). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $2,500.00 and attend a Dealer Training Seminar. 12-1124 ENF Frank Uribe, DBA P M Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to make dealership records available for inspection: 43 TAC 215.144(a) and 43 TAC 215.141(a) (3). $250.00 and attend a Dealer Training Seminar. 12-1127 ENF Z’s Auto, Inc., DBA Z’s Auto, Inc. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a) (8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00 and attend a Dealer Training Seminar. 12-1245 ENF Alvin Cars LLC, DBA Alvin Cars LLC Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00. 12-1249 ENF Maxline Auto Group, LLC DBA Maxline Auto Group Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Sold or offered to sell motor vehicles on consecutive Saturday and Sunday: Transp Code 728.002. $500.00 and attend a Dealer Training Seminar. 12-1413 ENF Hensley Inc., DBA Automax Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00.
Failure to have dealer or a bona fide employee present during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1)(B). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $250.00 and attend a Dealer Training Seminar. 12-1606 ENF Hamdy Aboellhasan DBA Budget Motor Company Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 12-1660 ENF Greig Automotive, Inc., DBA Auto Maxx Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $500.00. 12-1671 ENF Mega Motors, Inc., DBA Mega Motors, Inc. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Cease and desist. 12-1691 ENF Amaru Motors LP, DBA Charlie Clark Mission Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 12-1800 ENF Eric Shawn Longnecker DBA Long Haul Trailer Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a) (8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Delivered title directly to retail buyer: Transp Code 501.0234, 503.038(a)(14), Tax Code 152.0411 and 43 TAC 215.141(a)(23). $500.00 and attend a Dealer Training Seminar.
12-1429 ENF Revon Craig Investments, Inc. DBA The Motorcycle Man Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $250.00 and attend a Dealer Training Seminar.
13-0028 ENF Fox Auto Group, Inc., DBA Autocredit Failure to produce records within (15) days: 43 TAC 215.144(d) and 215.141(a)(3). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar.
12-1486 ENF Tampa Bay Motor Works.com, Inc. DBA Tampa Bay Motor Works.com, Inc.
13-0056 ENF Cooley Enterprises, Inc. DBA Clay Cooley Motor Co.
November 2013
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Advertised the amount of down payment in connection with a credit transaction without including the terms of repayment: 43 TAC 215.263. $1,000.00. 13-0081 ENF Midsouth Capital, LP DBA Midsouth Automotive Group Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-0088 ENF Gunn Nissan LTD, DBA Gunn Nissan LTD Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00. 13-0129 ENF Juan Fernando Rodriguez DBA Bulldogs Auto Salvage Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a) (8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $2,500.00 and attend a Dealer Training Seminar. 13-0227 ENF Tonja Harris DBA H & H Motor Co. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Cease and desist. 13-0233 ENF RCO Auto Group LLC, DBA RCO Auto Group LLC Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 13-0312 ENF Johnny Lee Hughes, DBA Hughes Pre-owned Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $250.00 and attend a Dealer Training Seminar. 13-0329 ENF Royal Imports, Inc. DBA Crown Kia Crown Isuzu of Longview Acted as, or offered to act as, or claimed to be a broker of used motor vehicles: Occ Code 2301.006. Attend a Dealer Training Seminar. 31
fines& violations 13-0360 ENF Brandon Ray Birmingham, DBA B & B Motors Misuse of Internet-Down buyer temporary tag: Transp Code 503.0631 and 43 TAC 215.151, 215.153, 215.155 and 215.158. No metal dealer plate record. 43 TAC 215.138(d). Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a) (10)(11) and Occ Code 2301.651(a)(8). Failure to assign certificates of title for vehicles sold: Transp Code 503.038(a)(4). $500.00 and attend a Dealer Training Seminar. 13-0377 ENF Rakhshanda Khan, DBA Cypress Motors Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10) (11) and Occ Code 2301.651(a)(8). Failure to meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). Failure to maintain complete
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records by licensed dealer or auction: 43 TAC 215.144(a). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $3,500.00 and attend a Dealer Training Seminar. 13-0378 ENF Alamo Used Cars, LLC., DBA Alamo RVs Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $1,000.00 and attend a Dealer Training Seminar. 13-0394 ENF Basin Subaru, LLC, DBA Basin Subaru, LLC Misuse of a temporary tag on a vehicle without a valid certificate of inspection: 37 TAC 3.76(b), Occ Code 2301.651(a)(4), Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $1,500.00 and attend a Dealer Training Seminar.
13-0413 ENF Big State Auto & Truck Sales, LLC. Misuse of a temporary tag on a vehicle without a valid certificate of inspection: 37 TAC 3.76(b), Occ Code 2301.651(a)(4), Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 13-0416 ENF Titan Imports, Inc. DBA Titan Imports, Inc. Failure to comply with a Final Order: Occ Code 2301.651(a)(3). $500.00. 13-0427 ENF Titan Imports, Inc. DBA Titan Imports, Inc. Failure to comply with a Final Order: Occ Code 2301.651(a)(3). $500.00. 13-0457 ENF Payne Brownsville, Inc., DBA Ed Payne Mitsubishi, Payne Lincoln - Mercury Volkswagen - Suzuki Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and
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215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). $500.00. 13-0464 ENF KBE, Inc., DBA Texas Auto Outlet Advertised the amount of down payment in connection with a credit transaction without including the terms of repayment: 43 TAC 215.263. $500.00. 13-0473 ENF Stadium Auto, Inc., DBA Stadium Auto, Inc. Advertised the amount of down payment in connection with a credit transaction without including the terms of repayment: 43 TAC 215.263. $1,000.00. 13-0493 ENF Jaime Miguel Buitron DBA 7-11 Autoplex Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. Filed an application for Texas Certificate of Title containing false or fraudulent lien information: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,500.00 and attend a Dealer Training Seminar.
November 2013
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13-0499 ENF Louis L. Costello, Jr., DBA Costellos Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $4,000.00. 13-0506 ENF Mission Automotive, LLC. DBA Mission Mitsubishi Used false, deceptive, unfair and/or misleading advertising: 43 TAC 215.242. $2,000.00. 13-0510 ENF Jimmie Stanaford DBA Jimmies Motor Company Failure to meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. $500.00 and attend a Dealer Training Seminar.
13-0514 ENF Johnson Grayson Automotive, Inc. DBA Holiday Chevrolet Advertised a disclosure that is not clear and conspicuous: 43 TAC 215.246. Failed to disclose the amount of the customer rebate and the amount of the dealer discount in a savings claim: 43 TAC 215.262(a)(2). Featured a savings claim not available to all buyers: 43 TAC 215.262(b). Failure to disclose the amount of the customer’s rebate and/or the amount of the dealer discount in the advertised new motor vehicle price equation: 43 TAC 215.250©(3). Featured a price not available to all buyers: 43 TAC 215.250(a) and (e). $3,500.00 and attend a Dealer Training Seminar. 13-0520 ENF G L D Investments, Inc. DBA G L D Investments, Inc. Failure to meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. License is cancelled. 13-0521 ENF Third Coast Auto Group LP DBA Third Coast Auto Group
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fines& violations Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00 and attend a Dealer Training Seminar. 13-0554 ENF Albert Sullivan DBA Albert’s Reconditioned Used Cars Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. Failure to have business hours posted at the dealer’s location: Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). Failure to have dealer or a bona fide employee present during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1) (B). $500.00 and attend a Dealer Training Seminar.
13-0561 ENF Hill Country Imports, LTD DBA Round Rock Honda Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Cease and desist. 13-0591 ENF Tab III, Inc., DBA Texas Auto Brokers Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a) (8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 13-0592 ENF Tarek Badawi, DBA TB Auto. Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. Delivered title directly to retail buyer: Transp Code 501.0234, 503.038(a)(14), Tax Code 152.0411 and 43 TAC 215.141(a)(23). $500.00 and attend a Dealer Training Seminar. 13-0595 ENF Texas Longhorn Motors, Inc. DBA Longhorn Motor Co.
Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $500.00 and attend a Dealer Training Seminar. 13-0611 ENF Najwa Al-Muasher, DBA American Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $500.00 and attend a Dealer Training Seminar. 13-0614 ENF Patja LTD, DBA MN Auto Finance Company Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234 $500.00 and attend a Dealer Training Seminar. 13-0618 ENF Potamkin Humble Hy LP DBA Humble Hyundai Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Cease and desist
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13-0622 ENF Henry J. Drapela, DBA Car Store Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $500.00. 13-0623 ENF Kemosabe Motors LP DBA Honda Cars of Katy Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Sold or offered to sell motor vehicles on consecutive Saturday and Sunday: Transp Code 728.002. $1,500.00. 13-0638 ENF J & M Motors LLC, DBA J & M Motors LLC Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00. 13-0673 ENF Knapp Chevrolet, Inc. DBA Knapp Chevrolet, Inc. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $1,500.00. 13-0684 ENF Euro Motor Sale, Inc. DBA Euro Motor Sales Aided and abetted the unlicensed sale of a motor vehicle by allowing the use of its GDN number: Occ Code 2301.351. Failure to fulfill written agreement with retail purchaser: Occ Code 2301.651(a)(7). Defrauded purchaser: Occ Code 2301.651(a)(6). $1,000.00 and attend a Dealer Training Seminar.
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13-0685 ENF C R Car Company, DBA C R Car Company Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Delivered title directly to retail buyer: Transp Code 501.0234, 503.038(a)(14), Tax Code 152.0411 and 43 TAC 215.141(a)(23). $500.00 and attend a Dealer Training Seminar. 13-0686 ENF Charlie T’s Autos, Inc. DBA Talisman Motor City Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00 and attend a Dealer Training Seminar. 13-0696 ENF Forest River, Inc., DBA Forest River, Inc. Licensed manufacturer directly or indirectly owned an interest in and/or operated or controlled a franchised dealer: Occ Code 2301.476©. $3,000.00. 13-0711 ENF TMBC LLC, DBA Bass Pro Shops Outdoor World, DBA Tracker Boat Center Engaged in business as a dealer, directly or indirectly, including consignment without a General Distinguishing Number: Transp Code 503.021. $1,500.00. 13-0769 ENF Shafaamri Incorporated DBA Texas Import Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a) (8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar.
13-0775 ENF Dallas Hyundai, Inc. DBA South Dallas Hyundai Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $1,000.00. 13-0781 ENF Carlos Herrera, Jr., DBA C.H Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to observe right of way: 43 TAC 215.140(11)©. $500.00 and attend a Dealer Training Seminar. 13-0787 ENF Jose A. Molina, DBA M Motors No metal dealer plate record: 43 TAC 215.139(i) or (j). Misuse of dealer’s metal plates: Transp Code 503.068 and TAC 215.138(b). Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a) (8). Failure to answer the telephone, have it answered by a bona fide employee or to have an answering machine or service in operation during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1)(B). $500.00.
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13-0774 ENF Miguel A. Gonzalez, DBA M G Autos Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00.
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fines& violations 13-0788 ENF Yoder Ford, Inc., DBA Hacienda Ford Participated in a new motor vehicle show without obtaining written approval in a timely manner: Occ Code 2301.358. $1,000.00. 13-0792 ENF Judson Motors LTD, DBA Red McCombs Drive Away Motors, Select Auto Network, Universal Toyota Advertised the period of repayment, “Up to 60 months”, in connection with 1.9% APR financing without including the amount or percentage of down payment and the terms of repayment: 43 TAC 215.263. $2,000.00.
13-0820 ENF GPVN Motors Limited Partnership DBA Texas Nissan of Grapevine Advertised the amount of down payment in connection with a credit transaction without including the terms of repayment: 43 TAC 215.263. $1,000.00. 13-0868 ENF Freedom, Inc., DBA Freedom Auto Group Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a) (8). Failure to fulfill written agreement with retail purchaser: Occ Code 2301.651(a)(7). $500.00.
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13-0900 ENF Masaud Parwani, DBA Markit Autos Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 13-0574 ENF RVC Auto Sales, DBA RVC Auto Sales Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00. 13-0605 ENF Jesus E. Zamarripa DBA Zamarripas Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $250.00. 13-0639 ENF Aya General Remarketing, Inc. DBA Buy Direct Motorcars Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $200.00. 13-0741 ENF Alderson Enterprises DBA Alderson European Motors Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00. 13-0754 ENF Victor H. Resendez, DBA V.H.R. Motors Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Failure to observe right of way: 43 TAC 215.140(11)©. $150.00. 13-0756 ENF Brad Madry, DBA Madry Motorplex Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $200.00. 13-0761 ENF Alvaro Nava, DBA Nava Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $250.00. 13-0764 ENF Graciano Castanon DBA Castanon Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $200.00.
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CT DAT E:
:
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purchased. vehicle being the motor interest in NT(S ) a security NPA YME Due I give you Date ED DOW owe you, DEF ERR or in the future charge of owe you Amount a late debt I now I will pay any other it is due, ses in it and days after my promi ct and all within 15 payment Charge. on this contra ce sts, owe entire I Finan all intere ve my of the p this To secure security d of part do not recei default, Security: (1)Kee writing. get a refun t nonpayment, ge: If you ises in payment. so, I can NO.: Late Char n abou $ all prom scheduled . If I do ds. STOC K put ...... informatio % of the er to........ I owe early yment refun ment for ................ the deal and prepa pay all that refer to this docu ................ rce. Ask nt: I can uled date, I will ................ DATE: to enfo Prepayme l Information: e the sched cult........ REDI TOR: diffi........ full befor are........ SELL ER/C ises........ Additiona repayment in .$ D ................ : ER red ken prom ................ 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Unpaid y) ........ regardle company.. including ance ance comp Services tive equit repairs charges insurs, r and insur to any (nega to Othe $ ff 4. ... y for paid payo ance paid Accessorie insur trade-in onsibilit insurance Options,or comp anies damage A. Net $ no resp damage ...mes physical company TOTAL of physical er assu $ rages with CE $ insurance B. Cost ... nal cove . The deal paid to CASH PRI of optio REPAIRS t insur ance C. Cost $ nal credi Gross FOR ANY cle. e $ ................ of optio Phone: COSTS vehi Allowanc ................ D. Cost $ L PAY ALL nts about the ........................ Trade-in ............. Life any YOU WIL comp ................ eme ........ .$ ff $ ance ................ oral stat ........................ -in Payo ................ insur any Disability ................ Net Trade to theof ........ To: ................ $ ........ ........Lien ance paid Show nt agencies.. ................ .............. ................ insur r rnme ........ ........ gove Bala nce $ E. Othe $ ................ ................ paid to ................ ........... Unp aid Pric e ial fees ................ ................ ................ ................ ling s for F. Offic ess: ................ of Cash ................ tory tax... hand Addr ................ .......... $ ........ the part the nt: rs for ................ er’s inven % of Amou ................ ................ ................ to buye _ired by law. Lienged y of G. Deal ................ Dealer's $ copal ................ ________ ................ a ada ..........$ requ tration fees. berchar and forcarg er's ntory Tax r taxes........ may er ................ ................ notice is ................ : ser labo deal but $ e and/or regis deal ........ dad ........ H. Othe Inve This se ........ the the law, pued the ........ of parties. 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– Save the date! –
july 27–30, 2014
Live at Lost Pines
austin music
with
+
austin food
+
austin flavor
tiada education
Tiada Annual Conference & Expo the 2014
Hyatt Regency lost Pines Resort & Spa | 575 Hyatt lost Pines Road | lost Pines, Texas 78612
Custom Collateral Protection for the Texas BHPH Dealer Collateral Protection Insurance Agency and Bill Murphy developed the Collateral Protection Insurance Program for Texas Buy Here Pay Here Dealers. “A BIG TIADA Thanks to all of the TIADA Staff and all the TIADA DEALERS who made the 2013 TIADA Conference the ”BEST EVER!” For your Collateral Protection Insurance needs as well as your Reinsurance needs, please contact Bill Murphy, 512-799-2886. WARNING: Only purchase a Reinsurance Program from an expert who specializes in the Reinsurance Industry, not a product salesman who “oh, by the way, we can sell you a reinsurance program.” Call Bill or Bob and make an appointment for us to show you how we can Customize a CPI Program and maximize your profits. FOR INFORMATION CALL Bill Murphy
P.O. Box 568 • Huntsville, TX 77342-0568 Cell 512-799-2886 • Fax 512-828-6128 E-mail: murphy.wjm@gmail.com
Bob Burke
P.O. Box 568 • Huntsville, TX 77342-0568 Cell 936-295-0370 or 800-366-0036 Fax 936-295-5358 • E-mail: reb@cpiai.com
legal corner
Is a Car Seller Liable for Accidents Caused by His Buyer? Dealer Question: I’ve received
a demand letter from an attorney who represents an individual who was injured in an accident with one of my customers. My customer’s liability policy had lapsed, and the attorney claims I have liability because I failed to ensure that my customer maintained liability insurance. Where do I stand?
Response: At one time, dealers were obligated to present proof of liability insurance for their customers at the time of title transfer. While that law was in place, dealers were constantly struggling with their customers to bring in proof that they had liability coverage, and in many cases, missed the deadline for making timely transfer.
T
his problem was resolved when the proof-ofliability-at-title-transfer requirement was dropped by the Texas Legislature. But there are some folks out there who still think that selling dealers should retain responsibility for the accidents of the dealers’ customers. First, one point needs to be made clear. No one questions the goal of universal liability coverage for drivers. All drivers should have liability insurance. How it should be enforced and who should bear the burden of obtaining it are, however, valid topics for debate. But the reality is that there will always be people driving on the states roads and highways who don’t have current liability coverage. It is
November 2013
T e x a s
D e a l e r
thus necessary to examine the law of liability and see how it applies to a motor vehicle seller. Generally, to be liable for an accident, a person must breach some duty to the injured party. For example, a driver of a vehicle has a duty to maintain control of his vehicle so that he can avoid striking a vehicle in front of him. If he causes an accident by driving too fast, by not keeping a proper watch out, by not braking soon enough, or by violating some traffic law, he has breached that duty, or put another way, has been negligent. In order to be negligent in the ordinary sense, a person must be driving the vehicle. Unless the selling dealer or one of his employees was driving the vehicle when the accident occurred, the dealer wouldn’t be negligent in breaching a duty to drive safely. So, in a situation where the driver of a vehicle who causes an accident is insolvent and uninsured, an attempt is often made by the victim to reach the deep pockets of a dealer (or, more accurately, the deep pockets of the dealer’s insurer), through alleging some breach of some other duty by the seller of the vehicle. One such theory is called negligent entrustment. This type of negligence refers to the negligence of an owner in entrusting a vehicle to someone the owner knows, or should know, is an unsafe driver. Some people think — incorrectly — that the owner of a vehicle is automatically liable for the negligence of someone else. First, mere ownership without something
by Michael
W. Dunagan
TIADA general counsel
more is not a sufficient legal basis for liability. Second, a dealer who has sold a vehicle, even if a lien is retained, is not the owner. A seller who has completed a sale is no longer the owner, even if the title certificate hasn’t yet been transferred. A dealer client once received a demand letter from an attorney who happened to be the person that the dealer’s buyer had rear-ended. Of course, the buyer didn’t have liability coverage. The attorney/ victim demanded that the dealer take responsibility for the damages because the attorney/victim had been informed by an attorney for the Motor Vehicle Division that, since the dealer had not yet transferred the title, he was still the owner of the vehicle. Being the owner, the MVD attorney concluded, the dealer was liable. In this case, both attorneys were wrong. Under almost identical facts, the Court of Civil Appeals San Antonio held that a selling dealer was not liable for negligent entrustment, even though the title certificate had not been transferred. First, the court held, the law of Texas is that a seller can not have liability under negligent entrustment. Next, the court addressed the non-transfer issue by concluding that ownership passed upon signing the sales 41
contract papers, payment of the down payment, and delivery of possession to the buyer. Title transfer, while important, was not the important step in transfer of ownership. The Texas Supreme Court, in the case of National Convenience Stores, Inc. v. TT Barge Cleaning Company, refused to review or change the long-established rule that a seller in Texas can’t be held liable for the acts of a buyer under the theory of negligent entrustment. We’ve seen several attorney demand letters and even lawsuits that alleged that the selling dealer had a duty to make sure that the buyer had liability insurance. None of these claims has ever succeeded. One of the aspects of the argument that a selling dealer has some type of obligation with regard to
liability insurance that is most puzzling is just how far the obligation would extend. If, for instance, the dealer required that a buyer have an insurance card, and the card was good for only thirty days, would the dealer be obligated to see that the policy was renewed? What if an accident occurred on the thirty-first day and the insurance company denied the claim? Would the dealer have liability? How about an accident a year later? The fact of the matter is that motor vehicle sellers have no obligation with regard to liability insurance. Our firm has been successful in defeating all suits filed against our dealer clients, usually via dismissal early in the proceedings. Yet dealers continue to receive demand letters in such situations and, occasionally, lawsuits. One possible exception to the defense of a completed sale would be some type of quasi-sale. In one case a dealer “sold” a vehicle to an employee, but failed to have all the paperwork signed. The dealer was found liable under the theory of negligent entrustment when the employee caused a wreck without liability insurance, even though the accident occurred on the employee’s personal time. Another word of warning: This rule does not apply to test drives. A seller could theoretically be held liable under a negligent-entrustment claim. Thus, it is imprudent to allow a potential customer to test drive a vehicle without (1) a current driver’s license and (2) a valid liability insurance policy. The law carries a presumption that an unlicensed driver is an unsafe driver. It would be an easy step to establish that a dealer negligently entrusted a vehicle to an unlicensed (and thus, unsafe) driver in a demonstration situation. With regard to liability insurance coverage, dealers should make sure that customers test driving vehicles are covered by the dealer’s garage liability policy or, alternatively, that the test driver has his or her own liability insurance.
We’ve seen several attorney demand letters and even lawsuits that alleged that the selling dealer had a duty to make sure that the buyer had liability insurance. None of these claims has ever succeeded.
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. 42
T e x a s
D e a l e r
November 2013
BHPH Credit & Collections Conference
December 9-11, 2013 Dallas, TX
Embassy Suites Outdoor World DFW North
CHUCK BONANNO
WHO SHOULD ATTEND:
WHAT TO EXPECT: • Updated Industry Benchmarks • Secrets to Underwriting Good Loans • Collection Call Technique Workshop • Lead and Regulatory Compliance Updates • Skip Tracing Workshop • Credit and Underwriting Panel • Collection Panel — Best Practices • Collections Compliance • Team Building • Motivational Techniques • Roundtable and Networking Sessions • And Much More!
WHAT’S INCLUDED:
• BHPH Dealers • Finance Company Managers • Collection Managers • Underwriters • Collectors • Skip Tracers
• Breakfast • Training Materials • Lunch • Networking Sessions • Coffee and Snack Breaks • In-Depth Personalized Training
www.TwentyGroups.com/registernow 888.563.8133 • email: sales@leedomgroup.com
$795 per person* *Ask about the TIADA discount
Three Days of Intense BHPH Training HOUSTON, TX 8:30 am-4:30 pm • Jan. 7, 2014 • $695 BHPH MANAGER’S BOOT CAMP Presented by: Chuck Bonanno
Immerse your BHPH Managers in an intensive one-day seminar to bring them up to date on the latest in processes, procedures, technology compliance and industry benchmarks.
8:30 am-4:30 pm • Jan. 8, 2014 • $595 BHPH COLLECTIONS BOOT CAMP Presented by: Chuck Bonanno
BHPH
SALES TRAINING ACADEMY
Your collections managers and account reps will receive training on how to best keep your customers current using proven methods and harnessing the lastest technology.
8:30 am-4:30 pm • Jan. 9, 2014 • $595 BHPH SALES TRAINING ACADEMY Presented by: Jay Prassel
Your entire sales team will benefit from the training and tools presented in this sales training academy. We will help your managers and sales people get the most out of your advertising dollar.
CALL FOR DISCOUNT ON MULTIPLE ATTENDEES Jay Prassel Consultant LEEDOM GROUP
888.563.8133
sales@leedomgroup.com TwentyGroups.com/registernow
Chuck Bonanno Exec. Vice President LEEDOM GROUP
2 013 t i a d a a u t o a u c t i o n
Local Chapters Victoria Donny Cowan • Rock Motors 361.573.3325 rockmotorsllc@tisd.net Meeting - 1st Monday (Monthly) Fort Worth Jerry Smith HJ Smith Automobiles 817.282.0102 hjsmithauto@yahoo.com Meeting - 4th Thursday (Monthly) Dallas County Kathrine Tolsch • CICO Auto Sales 214.352.9282 cicoauto@verizon.net Meetings every other month Houston Greg Zak • Dixon Motors 281.931.1300 houstoniada@gmail.com Meeting - 2nd Monday (Monthly) Waco-Heart of Texas Bill Miller • Bill Miller Used Cars 254.753.4161 bmillercars@hot.rr.com Meeting - 2nd Monday (Monthly) For more information contact Eddie Massey, Massey Motors 254.753.6661 San Antonio Sonny Paredez • Discount Auto Center 210.680.5600 sonnyparedez@yahoo.com Meetings quarterly (dates announced at www.txiada.com) El Paso James Hobson • H -Town Motors 915.564.9797 htownmotors@aol.com Meeting - 3rd Friday (Monthly) Austin Brent Rhodes • Fiesta Motors 512.312.2201 brent@fiestamotors.net Meetings quarterly Beaumont Laura Miller Sattler Automotive Group 409.866.2987 lsattler@sattlerautomotive.com Meetings quarterly 44
ABILENE
CM Company Auctions 2258 S. Treadaway / 79602 325.677.3555 / 866.310.3555 www.cmauctions.com Gregory Chittum, Owner Thursday: 10:00 AM
AUSTIN
America’s Auto Auction Austin / San Antonio 16611 S. IH-35 / Buda / 78610 512.268.6600 www.americasautoauction.com John Swofford, General Manager Tuesday: 1:30 PM
BEAUMONT
Beaumont Dealers Auction, Inc. 12151 Highway 90 / 77713 409.866.5677 www.beaumontdealers.com Laura Miller-Sattler, Owner Tuesday: 7 PM Gulf Coast Auto Auction 4450 South 11th Street / 77701 409.840.6000 www.gulfcoastautoauction.com Roger Rashall, General Manager Rocky Rashall Blake Rashall Thursday: 7 PM
CARROLLTON
Texas Lone Star Auto Auction 2205 Country Club Drive / 75006 214.483.3597 www.TLSAA.com Jeff Dunning, Jr., General Manager Tim Clement, Assistant GM Michelle Elrod, Office Manager Tuesday: 1 PM / Thursday: 2 PM
CORPUS CHRISTI Big Valley Auto Auction 5661 Agnes St / 78405 361.356.2020 www.bigvalleyaa.com Bernard Watson, Owner Billy Kratz, GM Tuesday: 10 AM
DALLAS / FT. WORTH METROPLEX ADESA Dallas 3501 N. Lancaster-Hutchins Rd / Hutchins / 75141 972.225.6000 Ken Osborn, GM Wednesday: 3 PM - New Car Trade Thursday: 9:30 AM - Consignment/Fleet/Lease America’s Auto Auction - Dallas 219 N. Loop 12 / Irving / 75061 / 972.445.1044 www.americasautoauction.com Robert Hammonds, GM Ruben Figueroa, Assistant GM. Tuesday: 2 PM / Thursday: 2 PM
EL PASO
El Paso Independent Auto Auction 7930 Artcraft Road / 79932 / 915.587.6700 www.epiaa.com Lori Pidgeon, GM JD Glover, AGM Wednesday: 10 AM - Fleet/Lease & Dealer Consignment Wednesday: 1 PM as scheduled GSA Public Auction
HARLINGEN / McALLEN Big Valley Auto Auction 4315 N. Hutto Rd. / Donna / 78537 956.461.9000 www.bigvalleyaa.com Bernard Watson, GM Lisa Harms, alternate contact Thursdays: 10 AM
HOUSTON
America’s Auto Auction – North Houston 1440 FM 3083 / Conroe / 77301 / 936.441.2882 www.americasautoauction.com Buddy Cheney, GM Ben Nash, Sales Manager Mondays: 6:30 pm
LUBBOCK
Lone Star Auto Auction 2706 Slaton Hwy / 79404 806.745.6606 (local) / 888.299.6606 (toll-free) www.lsaalubbock.com Jim McNulty, Owner Dale Martin, General Manager Wednesday: 10 AM
T e x a s
D e a l e r
November 2013
directory & resource guide LUFKIN
Lufkin Dealers Auto Auction 2109 N. John Redditt Drive / 75904 936.632.4299 Wayne Cook Thursday: 6 PM
ROCKWALL
Lakeside Auto Auction 1810 East I-30 / 75087 972.771.9919 www.lakesideaa.com Pete Conley, Owner Tuesday: 7:00 PM
TYLER
Greater Tyler Auto Auction 11654 State Highway 64 W / 75704 903.597.2800 Tuesday: 5 PM - Repo Lane Tuesday: 6 PM - Consignment
WACO
Heart of Texas Auto Auction (Waco’s oldest auto auction- Proudly serving dealers for 20 years!) 2508 HWY 6 / 76705 / 254.755.7713 www.heartoftexasautoauction.com Allan Wichkoski, Owner Kenny Reigert, General Manager Shirley McMillan, Office Manager Thursday: 7 PM Alliance Auto Auction 15735 N. IH-35 (exit 346) / 76715 254.829.0123 / 254.829.1298 (fax) www.allianceautoauction.com Darren Darnell, GM darren.darnell@allianceautoauction.com Carmen Klaus, Office Manager Every Friday: 10 AM
oKLAHOMA CITY, OK
Dealers Auto Auction of OKC 1028 S. Portland / Oklahoma City, OK / 73108 405.947.2886 /405.943.8370 (fax) www.daaokc.com Gary Smith, Owner/President/GM John Reininger, Asst. GM Mike Egdahl, F/L Manager Thursdays: 8:30 AM - Consignment Sale INOP Sale held weekly GSA sale held monthly (open to public) Call for info on sale dates and times Every other Tuesday: 10:00 AM - GM Sponsored Factory Sale November 2013
T e x a s
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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
45
behind the wheel
by Jeff
Martin
Who’s Counting? Legislators, Votes & Members
tiada executive director
L
ast month the political campaign season started for TIADA. It’s early in the campaign season, when you find most would-be legislators reaching out to various groups and individuals in an effort to fill their coffers before the real campaign starts. This creates a unique opportunity for our association to get to know legislators and start to educate them on issues that are important to us. We usually do not start making these visits until the start of the new year; however, two opportunities popped up last month and we took advantage of both. During both visits we discussed issues on our legislative agenda. We asked if the legislator could support some of our broad issues and some specific issues that affect the independent automobile industry. The legislators asked all the appropriate questions, too. They all like to talk about small businesses and creating more jobs. They like to talk about promoting policies that help businessmen and women and also help the state. The one thing that always strikes me, though, is that they always want to talk about how many members we have. They ask how many independent dealers are in Texas, how many are TIADA members and ultimately, how many of our members live in their district. In fact, if we had a member for every time a legislator asked that question ...well, we would have a lot more members than we do. The answer varies from district to district but it’s pretty exciting these days to tell legislators we have over 1300
members (see page 20–21)! During one of our visits a legislator actually said, “That is a lot more than you used to have, right?” We have been visiting with her for the last five years and she has seen our association grow. Our recruiters listed on page 22–23 along with our auction partners have helped grow the association more than 65% over the last six years. That is the kind of growth that will get the attention of those who count votes for a living. Keeping those membership numbers up will depend on our renewal campaign and that starts with you. Most of you will receive an email later this month asking you to renew your membership. By renewing, you will help strengthen our voice. It is actually the very least you can do to protect your industry. If you are looking to do more, you can always recruit that dealer down the street, sign up your other lots if you have any, write a check to INDEPAC or even attend the TIADA Conference and participate in our Legislative Caucus. There is more, but your renewal is step one. Starting in January we will begin our trek, crisscrossing Texas and visiting with hopeful candidates who have thrown their hat in the ring for the opportunity to represent you. We will be discussing your issues and asking them to help protect our industry. By then you will have had two months to renew your membership. I hope when your legislator asks how many members we have, we can count on you.
Keeping those membership numbers up will depend on our renewal campaign and that starts with you. 46
T e x a s
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November 2013
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FINANCED WITH CONTRACT FORMS REVIEWED BY OCCC
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*Substantial Discounts for TIADA Members
Texas Independent Automobile Dealers Association P.O. Box 127 Round Rock, TX 78680-0127
PRSRT STD U.S. Postage
PAID
Fort Worth, TX Permit No. 1016
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