Texas Dealer, October 2013 by Texas Independent Auto Dealers Association

Understanding the

New Title Application Form and Customer ID Rules

In This Issue: - GPS Units: The End of 2G? - Getting Your Best Customers Back - New Form 130-U Sample & Instructions - Michael W. Dunagan on Insurance Aggravations

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Volume XIII

2014 TIADA Board of Directors

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 10

O c t o 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 Michael Thomasson, TIADA President

7 On The Cover: Understanding the New Title Application Form and Customer ID Rules by Danny Langfield

11 New Form 130-U & Instructions 17 Legal Corner: Insurance Aggravations Continue to Plague Car Creditors & Drivers by Michael W. Dunagan

23 Regulation Matters: If It’s Not One Thing It’s The Next by Danny Langfield

25 26

House of Delegates Meeting Minutes 2G Network Sunset: What it Means and How it Affects You by Jeff Karg

Getting Your Best BHPH Customers Back by Kenneth Shilson, CPA

31 Upcoming Events 33 Fines & Violations 39 Using Social Media in Hiring: Considerations and Precautions by ADP Small Business HR Services

42 New Members 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... Members can access free legal consultation at any time? Just go to Legal Resources/Legal Consultation Ser vice, enter your question and submit the form. A TIADA staff member or attorney will respond to you directly, usually within one business day. 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 A Look Ahead

’m proud to have served on the TIADA board for many years, but I will admit — being president does feel a little different. I will tell you one time that it hits you, and that’s when you have to give the incoming president’s speech at the annual conference. In this column I’d like to revisit some of the thoughts I shared that night with the awards dinner audience. As I think about the year ahead, I’m looking forward to working with incoming board, especially our two new members. I know this group will rise to the challenge of shaping the coming years of TIADA. I’ve written several Officers’ Messages over the years, but in this one I’d like to take a few moments and look forward to what we may be able to accomplish in the upcoming year. While I am excited about our prospects, I will admit to some apprehension as well. W C Fields said never work with children or animals. He needs to add one more group to that list… Past Presidents. How about following the last two TIADA presidents? One went on to be national quality dealer of the year and the other passed a landmark anti-curbstoning bill. Thanks fellows. No pressure! A couple of years ago, Chris Knox was giving his speech as the incoming president, and he mentioned how he was not interested in a lot of changes, he was interested in continuing the strong momentum the association had built. I have to say I feel the same. If it ain’t broke, don’t fix it. That said, I do have some goals for this year. Like all of you I care about this business. Like you, I know there is a right way to do business, and I believe we are at a regulatory crossroads. State and national agencies are beginning to flex their muscles and sometimes we aren’t even sure what the rules of the

October 2013

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by Michael

Thomasson

Mike Carlson Motor Company (Burleson) TIADA president

game are. It’s time to decide how we are going to be regulated. We need a seat at the national table. We need to make sure we are part of the conversation. I don’t feel we can fly under the radar any longer. It is time for us to tell our story. It is time to be proactive, not reactive. This is a time to come together as an industry, and not allow ourselves to be splintered. With these things in mind, I believe education is the key. The more dealers learn, the better positioned they will be. I think TIADA needs to continue to pursue pre-licensing education. I also think we need to continue to grow our annual conference and the educational opportunities that come with it. Old-timers like me are starting to contemplate the next phase of our business life, and with that we are confronting a paradox: our dealerships are getting older and they’re getting younger. My kids are going from being kids, to being marginal players in our business, to being key players in our business. And my business is a microcosm for the association. How can we continue to provide the value members like me have come to expect while growing to provide the new products and services that the next generation will demand? How do we stay relevant? That is our challenge as an association, and we need to rise to it. The answers are complex, but I think education and communication are two of the keys. We have the leadership in place to tackle these challenges head on, and I’m confident we can succeed. To wrap this column up I just want to encourage all of you out there to find some way you can contribute. Support our political action committee, recruit new members. Find your spot and do what you can. The association needs you. 5

“We Don’t Just Build Solutions,We Build relationships.” — Paul Rosenthal, Vice President of Sales – Automotive Solutions Group

Solutions Built on Relationships. At Spireon, our customers come first. Which might explain why Paul Rosenthal, Vice President of Sales for Spireon’s Automotive Solutions Group, took a personal interest in helping Jim and Renee at Preferred Funding. “GoldStar GPS has been helping us win for over 5 years. In my business, people make the difference and Paul and the GoldStar team are always there when I need them.” – Jim Willis, President of Preferred Funding. With over 25 years industry experience, Paul has continued to build long-standing relationships with automotive dealers and lenders nationwide by setting the Gold Standard in service and quality. More automotive lenders and dealers have chosen GoldStar GPS over any other tracking system. We keep working hard to earn your trust and your business, with innovative technology that meets your evolving needs and through giving you the support and service you deserve.

Join our family: GoldStarGPS.com/Family

on the cover by Danny Langfield

TIADA Deputy Director

Understanding the

New Title Application Form and Customer ID Rules

he month of September brought significant changes to the state of Texas. In addition to some welcome relief from the summer’s sweltering heat, September also brought some less desirable changes; namely the introduction of new rules pertaining to the Texas title application process. Over the past month, TIADA has received many calls from dealers frustrated with these changes and the communications from the state. As the situation became more challenging for dealers, the association became increasingly involved with the process, working with other stakeholders and urging the delay of implementation until a smooth transition for dealers and customers could be achieved. On September 24th, TIADA had an opportunity to meet with the agency in conjunction with representatives from TADA, the franchise dealer’s association, with the goal of getting the clearest information possible to our members for this article. There are three separate (but intertwined) changes that have occurred in the title application process: customer ID requirements, full legal name requirements, and the introduction of a new 130-U Application for Texas Title form.

Customer ID Requirements

Customer ID requirements have been in place since September of 2012; however, new rules went into effect September 1, 2013, that affect what type of ID may be accepted for any sales made on or after that date. The rules still require that a dealer make a copy of the customer’s ID and retain it in the deal jacket. Important points to note: The dealer is NOT required to bring a copy of the customer’s ID to the tax office. I D is considered “current” as long as it is not expired by more than 12 months on the date of sale. If vehicle is to be titled in more than one name, only one ID is required.

As of September 1, 2013, only the following ID types will be acceptable: Driver’s license or state identification certificate issued by a state or territory of the United States; United States or foreign passport (no U.S. Visa required); October 2013

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Highlights from this Story:

— New ID rule went into effect Sept. 1, 2013

– Matricula consular ID no longer acceptable

— Customer ID info NOT required on 130-U until Nov. 1 — New 130-U form NOT mandatory

nited States military identification card; U North Atlantic Treaty Organization identification; Identification issued under a Status of Forces Agreement; United States Department of Homeland Security identification document; United States Citizenship and Immigration Services identification (green card); or United States Department of State identification document What about a temporary ID? VTR has indicated that a temporary version of an otherwise acceptable ID type is permissible, provided the temporary ID contains a photo, a unique ID number, and expiration date. What about a Texas driver’s license or ID that contains a “Temporary Visitor” or “Limited Term” provision? There are two expiration dates on this ID. The ID will be deemed acceptable as long as the “Temporary Visitor / Limited Term” expiration is not expired by more than one year. The expiration date on the bottom of the card should not be used. Is a matricula consular or a Mexico driver’s license an acceptable ID type? No, the administrative rule does not allow either of these ID types for sales made on or after September 1, 2013.

Out-of-State & Wholesale Transactions

Keep in mind that the customer ID rules only apply to initial application for Texas title and registration. Therefore neither out-of-state sales nor wholesale transactions are subject to these requirements, since the dealer will not be applying for Texas title in those situations.

Other Titling Scenarios

If the vehicle is to be titled in the name of a leasing company, then the ID of the lessee (customer) OR the ID of the lessor’s 7

(dealership’s) employee along with a business card or letter of authorization matching the ID of the employee is required, depending upon who signed the 130-U. If the vehicle is to be titled in the name of a trust, then the ID of a trustee is required. If vehicle is to be titled in the name of a business, government entity or organization, then the ID of the applicant along with a business card or letter of authorization matching the ID of the applicant is required.

Power of Attorney (POA)

If a power of attorney is used to apply for title, two ID’s are required under current rule: one from the customer* and one from the person assigned POA. In our meeting with VTR, the association was given to understand that the rules pertaining to POA title transfers may be amended in the near future. For now… The identification of the customer* is required, subject to the same ID restrictions listed above. If the transaction involves the secure (brown) POA assigned to the dealership, a photocopy of the dealership employee’s ID as well as the employee’s business card or authorization on letterhead is also required. If the transaction involves a non-secure (white) POA, a photocopy of the ID of the person to whom the POA has been assigned is also required.

OTE: according to VTR, the person to whom POA N is assigned may provide any form of photo ID; they are not restricted to the ID types above. This ID is not technically required to be retained in the deal jacket, although it is recommended. Additionally, we understand that counties may require that a photocopy of the ID of the person to whom the POA is assigned be brought in to the tax office with the title application.

Penalties

It is our understanding from TxDMV enforcement that failure to retain acceptable ID in the deal jacket could result in a civil penalty or other sanctions for violation of the board rules similar to actions in other cases when sales records are not complete. As with any violation, civil penalties are subject to potential “increase/decrease” factors based on the particulars of the individual case and the licensee’s compliance history. Some dealers have also expressed concerns regarding their liability if they accept an identification document from a customer that turns out to be fraudulent. Clearly, a dealer may not accept an identification documents that is known by the dealer to be fraudulent. In those other cases where an identification document is later determined to be fraudulent, the agency would attempt to determine whether at the time of the transaction the dealer or its employee was acting in a reasonable manner when accepting the identification document. (cont’d on pg. 10)

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October 2013

On The Cover (cont’d from pg. 8)

Renewal Registration

There are no state-level ID requirements for renewal registration; however many counties do have ID requirements for renewals done at the county level. Online registration renewal (which does not require ID) is available for most counties at https://rts.texasonline.state.tx.us/NASApp/txdotrts/ RegistrationRenewalServlet. Online renewals may be done 90 days before the expiration date, or up to six months after the expiration date, if the registrant has not received a citation for expired registration. Online renewal also requires a valid credit card and current liability insurance.

The New 130-U Application for Texas Title

September also saw the release of a new version of the form 130-U from VTR. This release caught TIADA, as well as many dealers, counties and dealership management system providers somewhat by surprise. Much of the resulting confusion centered around the question of if and when the customer ID information needed to be included on the form, and whether or not the counties would still accept the old form. Confusion notwithstanding, the current situation is this: The county will not reject an application if the customer’s ID type and number are not entered on the 130-U for transactions received by the tax office before November 1, 2013. The ID type and number MUST be entered on the 130-U for transactions received by the tax office on November 1, 2013 or later. The new 130-U is NOT mandatory; counties have been directed to continue to accept the old 130-U for the foreseeable future. If a dealer submits a transaction to the tax office on or after November 1, 2013, using the old 130-U form, the customer’s ID type and number MUST be included. ID information should be entered in the top right blank grey box or the upper right margin on the old 130-U form. Application should be made in the customer’s legal name as it appears on the photo ID (see Full Legal Name Requirements below). The address provided on the 130-U does NOT have to match the customer’s ID.

The new 130-U form and instructions for its completion can be found on pages 11–14. For questions on completing this form, contact TIADA at 800.442.5944 / info@txiada.com or visit with your county tax office.

Full Legal Name Requirements

House Bill 2741 from the most recent legislative session created the requirement that a motor vehicle title issued by the agency include the legal name of the purchaser. VTR has interpreted this to mean that, for individuals, the title application must contain the legal name of the purchaser as presented on the required photo ID.

What if a customer informs the dealer that the name on their ID is no longer their current legal name (i.e. a legal name change has occurred due to marriage, divorce, etc…)? VTR has taken the position that the dealer must still apply for title in the name presented on the photo ID. Does the 130-U need to contain the customer’s address as it appears on the ID? Not necessarily. The 130-U should include the correct, current address of the customer. What if the full name as it appears on the ID will not fit on the 130-U, or the dealer’s DMS will not accept that many characters for that field? VTR is asking that the complete name from the photo ID be included on the 130-U. If the complete name won’t fit, VTR recommends hand-writing the remaining characters on the margin of the form. It is our understanding that a dealer may also substitute the middle initial for the middle name if the full name will not fit. What if, for whatever reason, the name on the photo ID and the name submitted on the 130-U do not match exactly? Is that a violation? Keep in mind that the owner’s photo ID will not be presented at the county, so the county will not be aware of any discrepancy. As far as recordkeeping, it is our understanding that the enforcement division is not creating an additional allegation related to the new identification and legal name requirements; however, they will evaluate any reported violation on a case by case basis to examine whether fraud or negligence exists and whether to initiate an enforcement action. If a vehicle is to be titled in the name of a business, government entity, trust or non-profit, the legal name of the entity should be entered on the top line of box 14 of the title application. In that case, an individual’s name is not required in box 14. However, the ID type and number of the individual making application for the entity will still be required.

Conclusion

Given the scope of these changes, it is understandable that some counties may not always be fully aware of the requirements of the state as described above. If you are a TIADA member and you believe your county’s requirements are not in line with the state, please be in touch with the TIADA office and we will work with the state to address the issue. While these changes to the title application process have caused some frustration, it remains our goal to help dealers work through these changes as smoothly as possible while staying compliant and taking care of their customers.

* While this article states that it is a customer’s (owner’s) ID that must be obtained in a POA transaction, the actual administrative rule language indicates that the dealer may obtain the identification of either the owner or the lienholder. Members with any questions about this distinction should contact TIADA at 800.442.5944. T e x a s

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October 2013

APPLICATION FOR TEXAS TITLE TYPE OR PRINT NEATLY IN INK

TAX OFFICE USE ONLY Tax Collector:

Standard Presumptive Value SPV $

County:

Date:

Transaction Number:

Appraisal Value $

1. Vehicle Identification Number 7. Empty Weight (lbs.) 13. Applicant Type

2. Year

8. Carrying Capacity (lbs.) Individual

Business

3. Make

9. Plate No.

Government

4. Body Style

10. Vehicle Unit No. Trust

Non-Profit

5. Model

11. Major Vehicle Color

Owner's County Name

Middle

Last

Mailing Address

Suffix

City

14a. Applicant/Owner 1 ID Type

12. Minor Vehicle Color (two colored)

Business, Government, Trusts and Non-Profits, use the Business Name line below.

14. Applicant's/Owner's Legal Name 1/Business Name First

State

Zip

Photo ID Number

U.S. Driver's License

U.S. State Identification

U.S. Passport

Foreign Passport

Texas

Other Military Status of Forces Photo ID

U.S. Department of Homeland Security ID

(Name of State or Territory)

Other (Name of Foreign Country)

U.S. Military ID

U.S. Citizenship & Immigration Services ID

NATO ID U.S. Department of State ID

14b. Applicant's/Owner's Legal Name 2 First

Middle

Last

Mailing Address

Suffix

City

State

Zip

14c. Registrant's Name (Renewal Notice Recipient)/Business Name Middle

First

Last

Mailing Address

City

14d. Vehicle Physical Location Address 15. Previous Owner's Legal Name/Business Name

City

First

Middle

Suffix State

Zip

State 15a. GDN -Dealer Use Only

Zip

Last

Mailing Address

Suffix

City

State

Zip

THIS VEHICLE IS SUBJECT TO THE FOLLOWING FIRST LIEN 16. 1st Lien Date

1st Lienholder Name

16a. Electronic Title Request?

Mailing Address

16b. Certified Lienholder ID No.

City 17. FOR CORRECTED TITLE, CHECK REASON(S)

State Change in Vehicle Description Body Style

VIN

Other

No Change in Ownership

Zip

YES (Attach Form VTR-267)

16c. Additional Lien(s)? Add Lien

Remove Lien

Odometer Brand

YES (16c cannot be checked)

Odometer Reading

Year

Make

18. ODOMETER DISCLOSURE - FEDERAL AND STATE LAW REQUIRES THAT YOU STATE THE MILEAGE UPON TRANSFER OF OWNERSHIP. FAILURE TO COMPLETE OR PROVIDING A FALSE STATEMENT MAY RESULT IN FINES AND/OR IMPRISONMENT. , state that the odometer now reads

(no tenths).

(Name of Seller/Agent) THE MILEAGE SHOWN IS

A - Actual Mileage

N - Not Actual Mileage (WARNING-ODOMETER DISCREPANCY)

I hold Motor Vehicle Retailer's (Rental) Permit No. I am a Dealer or Lessor and qualify to take the Fair Market Value Deduction

20. DESCRIPTION OF VEHICLE TRADED IN (if any)

Make

Year

Vehicle Identification Number

rebate has been deducted)

)

(d) Taxable Amount (Item a. minus Item b./Item c.)

(e) 6.25% Tax on Taxable Amount (Multiply Item d. by .0625) $ (g) Tax Paid to

10%

5% or

(STATE)

(h) AMOUNT OF TAX AND PENALTY DUE (Item e. plus Item f. minus Item g.)

$ $ $

20a. ADDITIONAL TRADE-INS? (Y/N)

$90 New Resident Tax - (Previous State)

(b) Less Trade-In Amount, Describe in Item 20 Above (c) For Dealers/Lessors/Rental ONLY - Fair Market Value Deduction, describe in item 20 above.

(f) Late Tax Payment Penalty

Exempt

and will satisfy the minimum tax liability (V.A.T.S., Tax Code ยง 152.046 [c]). GDN or Lessor Number (V.A.T.S., Tax Code ยง 152.002 [c]).

21. SALES AND USE TAX COMPUTATION (a) Sales Price ($

X - Mileage Exceeds Mechanical Limits

MOTOR VEHICLE TAX STATEMENT

19. CHECK ONLY IF APPLICABLE

$5 Even Trade Tax $10 Gift Tax - Use Comptroller Form 14-317 $65 Rebuilt Salvage Fee 2.5% Emissions Fee (Diesel Vehicles 1996 and Older > 14,000 lbs. ) 1% Emissions Fee (Diesel Vehicles 1997 and Newer > 14,000 lbs. ) Exemption claimed under the Motor Vehicle Sales and Use Tax Law because $28 or $33 APPLICATION FEE FOR TEXAS TITLE (Contact your County Tax Assessor-Collector for the correct fee.)

I HEREBY CERTIFY THAT ALL STATEMENTS IN THIS DOCUMENT ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF. 22. Signature of SELLER, DONOR, OR TRADER 1

PRINTED NAME (Same as signature ) 1

Date

Signature of SELLER, DONOR, OR TRADER 2

PRINTED NAME (Same as signature ) 2

Date

Signature of PURCHASER, DONEE, OR TRADER 1

PRINTED NAME (Same as signature ) 1

Date

Signature of PURCHASER, DONEE, OR TRADER 2

PRINTED NAME (Same as signature ) 2

Date

23. 24. 25.

WARNING: Transportation Code, ยง 501.155, provides that falsifying information on title transfer documents is a third-degree felony offense punishable by not more than ten (10) years in prison or not more than one (1) year in a community correctional facility. In addition to imprisonment, a fine of up to $10,000 may also be imposed.

Form (Rev. 8/2013) 8/2013) Form 130-U 130-U (Rev. October 2013

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Online OnlineForm Format at www.TxDMV.gov www.TxDMV.gov D e a l e r

Page 1 of of 22 Page 1 11

GENERAL INSTRUCTIONS APPLICATION FOR TEXAS TITLE This form must be completed and submitted to your County Tax Assessor-Collector accompanied by any required application fee, supporting documents, registration fee if applicable, and any motor vehicle tax due. An application form may be reproduced or faxed. A completed form must contain the original signature of the buyer. The seller's signature may be reproduced or faxed. All title applications must include one of the government-issued photo IDs listed on field 14a. Rights of Survivorship (Optional) - Two or more persons may enter into a rights of survivorship agreement. It is not restricted to husband and wife. Please use Form VTR-122, Rights of Survivorship Ownership Agreement for a Motor Vehicle. AVAILABLE HELP • For assistance in completing this form contact your County Tax Assessor-Collector. • For information about motor vehicle sales and use tax, or emission fees, contact the Texas Comptroller of Public Accounts, Tax Assistance Section, at 1-800-252-1382 toll free nationwide, or call 512-463-4600. • For title or registration information, contact your County Tax Assessor-Collector or the Texas Department of Motor Vehicles at 512-465-3000 or 1-888-368-4689.

With a few exceptions, you are entitled to be informed about the information the department collects about you. The Texas Government Code entitles you to receive and review the information on request, and to request that the department correct any information about you that is deemed incorrect. Please contact the Texas Department of Motor Vehicles at 512-465-3000 or 1-888-368-4689 for details. NOTICE The sales and use tax must be paid to the County Tax Assessor-Collector within 30 days from the date of purchase or entry of the vehicle into Texas. A $2.50 fee for transfer of current registration is due in addition to the title application fees and other applicable fees. If not currently registered, registration fees will be due. A 6.25 percent motor vehicle sales or use tax is imposed on the sale price (less trade-in allowance) of motor vehicles for use in Texas, or of a motor vehicle purchased outside of the state and later brought into this state by a Texas resident. Standard Presumptive Value (SPV) applies to private-party sales of most used motor vehicles purchased or brought into Texas. The tax is computed on the greater of the sales price or 80 percent of the SPV on the day of title application. New Texas residents are subject to a $90 use tax on a vehicle brought into this state that was previously registered to the new resident in another state or foreign country. This is in lieu of the 6.25 percent use tax imposed on a Texas resident. There is a $10 gift tax when a person receives a motor vehicle as a gift from an immediate family member, guardian or a decedent's estate. A vehicle donated to, or given by, a nonprofit service organization qualifying under IRC 501(c)(3) is also taxed as a gift. Both donor and recipient must sign the Comptroller's joint affidavit Form 14-317, Affidavit of Motor Vehicle Gift Transfer. The affidavit and the title application must be submitted in person by either the donor or recipient. A transaction in which a motor vehicle is transferred to another person without payment of consideration and one that does not qualify as a gift described above is a sale and will be subject to tax calculated on the vehicle's standard presumptive value. A late penalty equal to 5 percent of the tax will be charged if the tax or surcharge is paid from 1 to 30 calendar days late; if more than 30 calendar days late, the penalty will be 10 percent of the tax. Minimum penalty is $1. In addition to the late tax payment penalty, Texas Transportation Code provides for an escalating delinquent transfer penalty of up to $250 for failure to apply for title within 30 days from the date of title assignment. Submit this application, along with proper evidence of ownership, and appropriate valid proof of financial responsibility, such as a liability insurance card or policy. All new residents applying for a Texas title and registration for a motor vehicle must file at the County Tax AssessorCollector of the county in Texas where the applicant resides within 30 days of establishing residency. Texas law requires that all vehicles, previously registered and titled or registered in another state or country, be inspected for safety and the vehicle identification number verified before such vehicles may be registered in Texas. These inspections must be made by a state appointed Safety Inspection Station that will complete a VI-30, Out-of-State Identification Certificate. This form must be submitted to the County Tax Assessor-Collector with your application for registration and Texas title. Form 130–U (Rev. 8/2013) Form 130-U (Rev. 8/2013)

Online Form at www.TxDMV.gov

Page 2 of 2 Page 2 of 2

Online Form at www.TxDMV.gov

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October 2013

Detailed Instructions for Form 130-U, Application for Texas Title Refer to the title assigned to you by the seller for the vehicle information/description.

Vehicle Identification Number (VIN). Found on the certificate of title and also stamped or affixed on the vehicle frame [e.g., driver side door frame, dashboard (facing windshield), or on engine block on 1955 vehicles and prior models].

Year. The model year of the vehicle (e.g., 2011, 2004, etc.).

Make. Brand of vehicle designated by the manufacturer (e.g., Chevrolet, Ford, Toyota, etc.).

Body Style. Description of vehicle (e.g., 2D = 2-door Sedan, CP = coupe, PK = pickup, etc.) For more abbreviations see Form VTR-249, Standard Abbreviations for Vehicle Makes and Body Styles.

Model. Vehicle model designated by the manufacturer (e.g., Silverado, F-150, Prius, etc.).

Reserved for future use.

Empty Weight. Weight (in pounds) of the vehicle without a load, rounded up to the next 100 pounds.

Carrying Capacity. Weight (in pounds) of the heaviest load the vehicle is legally allowed to carry according to the vehicle manufacturer.

Plate Number. License plate number being issued, if available.

10.

Vehicle Unit Number. Applies to vehicles purchased as part of a fleet, if applicable.

11.

Major Vehicle Color. If vehicle has one color, enter it in this field. For a vehicle with more than one color, the Major Color is the primary color that covers most, if not all, of the vehicle.

12.

Minor Vehicle Color (two colored). If the vehicle has more than one color, the predominant color must be shown as the Major Color and the secondary color as the Minor Color (e.g. standard two-toned vehicles, custom paint job, etc.).

13.

Applicant Type: Whether an Individual, Business, Government, Trust or Non-Profit.

14.

Applicant's/Owner's Legal Name 1: The legal name as it is recorded on the identification and mailing address of the owner.

14 a.

Applicant/Owner 1 Photo ID: The unique identification number of the photo identification presented by the first owner, type of photo, identification, and issuing entity presented. If the ID used is a driver's license, state ID, or passport, also include the state, territory, or country.

14 b.

Applicant's/Owner's Legal Name 2: The legal name and mailing address of the second owner, if applicable.

14 c.

Registrant's Name: Name and mailing address for registration renewal notice, if different than information in 14 or 14 b.

14 d.

Vehicle Physical Location. If different than the address shown in 14, 14 b, or 14 c, indicate a complete physical address.

15.

Previous Owner's Name and Mailing Address. The seller's name and mailing address indicated on the assigned title or other evidence of ownership being surrendered with the Form 130-U.

15 a.

GDN - Dealer's Use Only. Dealer's general distinguishing number assigned by the State.

16.

First Lien Date. If applicable, the date a security agreement was signed with any financial institution/individual for the financing of the vehicle.

16.

First Lienholder Name and Mailing Address. The lienholder's name and mailing address. If there is no lien, indicate “NONE.”

16 a.

Electronic Title Request? If the lienholder in 16 requests an electronic title, check box 16 a, and enter the Certified Lienholder ID No. in 16 b. (If 16 a. is checked, then 16 c. cannot be checked.)

16 b.

Certified Lienholder ID No. Enter the 11-digit Certified Lienholder Identification Number here. (Required if 16 a. is checked.)

16 c.

Additional Lien(s)? If another lien exists in addition to 16, check the box and attach VTR-267 Additional Liens Statement.

17.

For Corrected Title. If this application is meant to correct an existing title, indicate the appropriate reasons (e.g., Change in Vehicle Description: VIN, Year, Add Lien, Remove Lien, etc.)

18.

Odometer Disclosure. The Seller/Agent is required by law to record the odometer reading at the time of sale and to show: A-Actual (mileage shown), N-Not Actual (broken or replaced odometer), X-Mileage Exceeds Mechanical Limits, or Exempt- If the vehicle meets one of the following criteria, select Exempt, and the remainder of the Odometer Disclosure may remain blank: • is a new motor vehicle prior to its transfer to the first retail purchaser; • has a manufacturer's rated gross vehicle weight rating of more than 16,000 pounds; • is sold by the manufacturer directly to a government agency; • is 10 or more model years old; or • is not self propelled. In situations involving operation of law (court order, storage or mechanic lien, heirship, etc.), the title applicant provides the odometer reading and certification to the best of their knowledge.

Form VTR-130-UIF (rev. 09/13)

Form VTR-130-UIF (Rev. 09/13) October 2013

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Online Form at www.TxDMV.gov Online Form at www.TxDMV.gov

Page 1 of 2

Page 1 of 2 13

19.

Check Only If Applicable. For Dealer and/or Rental or Leasing companies' use. Dealers must include their General Distinguishing Number. Rental Companies must include their Rental Permit Number.

20.

Description of Vehicle Traded In. Describe the vehicle traded in on the purchase (if any), year, make, and VIN.

20 a.

Additional Trade-ins? Check if trade included any vehicle(s) in addition to the one shown in 20.

21.

Sales and Use Tax Computation. Sales and use taxes must be paid. Indicate the vehicle sales price in the second space provided on Line (a).

• • •

Rebates are only applicable for new vehicles sold by a dealership to a retail purchaser. 21(f) provides for a late tax payment penalty of 5% or 10% of the amount in (e). Check the appropriate box if you are a new resident to Texas; obtained the vehicle as an even trade or as a gift; or you are applying for a rebuilt salvage title. The $10 gift tax option may be used when a person receives a vehicle as a gift from an immediate family member, guardian, decedent's estate or nonprofit service organization qualifying under Internal Revenue Code Sec.501(c)(3). Both the donor and the gift recipient must sign the Comptroller's joint affidavit, Form 14-317, Affidavit of Motor Vehicle Gift Transfer. The title application must be accompanied by the Comptroller's joint affidavit and must be filed in person by either the recipient or donor.

•

If the vehicle is subject to the diesel emissions surcharge fee, compute the percentage (2.5% OR 1%) of the fee based on the Taxable Amount shown in (d). This fee is due in addition to the amount of tax due shown in (h).

•

If you are claiming a tax exemption, provide a brief explanation for the reason.

22 and 23. Seller, Donor, or Trader. ALL seller(s), donor(s) or trader(s) of the vehicle indicated on the title or other transfer of ownership document must sign, print their name, and indicate the date of signature. 24 and 25. Purchaser, Donee, or Trader. ALL applicants (person or persons purchasing or receiving the vehicle) must sign, print their name, and indicate the date of signature.

The completed title application, properly assigned title, current registration receipt (if available) and proof of insurance in the title applicant's name are required to be filed in the county where the sale occurred, where the lienholder is located, or applicant's county of residence within 30 days of date of sale. Payment of title, registration, and sales tax fees are required when application for title is filed. Refer to the back of the Form 130-U for phone numbers and additional information concerning fees, taxes, and penalties. Form VTR-130-UIF (Rev. 09/13)

Online Form at www.TxDMV.gov

Page 2 of 2

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October 2013

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

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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

Insurance Aggravations Continue to Plague Car Creditors & Drivers

s there a BHPH dealer or other car creditor in the state of Texas who hasn’t felt the frustration of countless man-hours of “chasing” insurance coverage on vehicles, only to be burned by narrowcoverage insurance policies which limit coverage to a named driver, or exclude from coverage the person driving the vehicle at the time of an accident? And it’s not just vehicle lien-holders who are getting stiffed. A recent article in the Dallas Morning News highlighted the problem of drivers and car owners who had the bad fortune of being hit by vehicles for which the liability coverage was limited, thus resulting in denial of the liability claim. In a series of Texas Dealer articles last year I documented the problems that Texas BHPH dealers were having with certain insurance companies that were relied upon to provide property-damage coverage for the vehicles financed by the dealers. The articles also pointed out other problems car creditors faced after their collateral was damaged, such as claims that policies had been cancelled prior to accidents when no notice of cancellation had been received by the creditor. Another common problem has been the infamous low-ball settlement offers that are apparently based on an

insurance-industry price guide with values that bear little similarity to the prices listed in the auto industry standard guides. As a result of newspaper articles and editorials decrying the problems caused by limited-coverage policies, and the personal experience of at least one member of the legislature, a bill was filed in the 2013 regular session of the Texas Legislature that would have prohibited insurers from selling car policies with excluded drivers and named-driver-only provisions.

In determining whether a DCA program is appropriate, dealers should assess whether the costs of “chasing insurance” and dealing with insurance companies is high enough to consider an option to requiring traditional insurance coverage.

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Despite smooth sailing in the Texas House, the bill was struck down in the Senate. One bill that did survive, however, requires car insurers

by Michael

W. Dunagan

TIADA general counsel

to plainly inform their insureds (and supposedly, lien holders) of the limits in coverage that the policies contain. Another positive development that occurred last year was the issuance by the Office of Consumer Credit Commissioner (OCCC) of an opinion letter stating that car creditors who required property damage insurance as a condition of financing a vehicle could reject policies tendered by their customers that contained named-driver-only or excluded-driver endorsements. TIADA had worked with the agency to obtain clarification of what a dealer could or could not do in trying to protect itself from limited policies. The articles also mentioned some alternative types of coverage that BHPH dealers might want to consider in protecting their collateral. For instance, some dealers are using collateral protection programs that give the lien holder some control over payment of premiums and cancellation of policies. Encouraging vehicle buyers to obtain a standard Texas driver policy (which doesn’t contain limitations) is another option, but standard policies are often more expensive and thus not as attractive to debtors. 17

How the Debt Cancellation Option Came About

One of the options mentioned was the use of a Debt Cancellation Agreement (DCA) as an alternative to requiring property-damage insurance. Prior to September 1, 2009, only national banks and state banks were authorized to offer DCAs. But with the passage of Senate Bill 1966 in 2009, the legislature recognized that sellers licensed under Chapter 348 of the Texas Finance Code could offer and sell DCAs in conjunction

with the financing of motor vehicle sales and could add “reasonable” fees to the contracts. The legislation also specifically provided that a DCA was not insurance subject to regulation by the Texas Department of Insurance. Before the passage of S.B. 1966, dealers could sell a GAP insurance policy that would cover any loss or deficiency that remained after the primary property damage coverage paid. The premium agreed to by the customer and paid to a licensed insurance company for the GAP

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policy could be added to the motor vehicle installment contract. The insurance companies that marketed GAP policies offered them primarily to franchised dealers and most products were unavailable to independents. Some dealers wrongly thought they could add a charge to a contract for GAP coverage without actually purchasing a GAP policy (a charge sometimes referred to as a “GAP waiver”). The OCCC took the position that GAP waiver charges were unauthorized by the Finance Code. Upon discovering through audits that such unauthorized charges had been made, the OCCC has required dealers to make refunds. The OCCC, through its audits of dealers, has also found that some dealers have been adding charges for some type of “insurance waiver,” a unilateral charge made in exchange for waiving the insurance requirement in the contract. A charge for an “insurance waiver” is also considered to be an unauthorized charge and is subject to refunding upon discovery. In addition to the legislative provisions of S.B. 1966 that appear in the Finance Code, there are rules issued by the OCCC that further regulate DCAs. For instance, the Finance Code authorizes a “reasonable” fee, while the OCCC rules set a maximum fee that is considered to be reasonable. The rules also offer detailed provisions as to what can be included in a DCA and what can’t. There are three types of DCAs recognized by OCCC, but for the purpose of this article, we’ll only discuss the type that would apply in most BHPH situations (sometimes referred to by OCCC as “Model 2”). Some of the more important provisions of the statute and rules governing DCAs are: Purchase of the DCA can’t be required as a condition of financing. That is, the buyer has the T e x a s

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right to meet the property-damage insurance requirements of the contract by buying a policy. If the vehicle is totaled or stolen, the balance of the contract owed as of the date of loss is forgiven. It doesn’t affect the debtor’s obligations to repair a vehicle that is damaged, but not totaled. Even if the debtor agrees to purchase the DCA, but also buys insurance, the seller can’t be listed as loss payee on the debtor’s policy and can’t receive payment upon loss. The DCA form must be approved by the OCCC. (Burrell Printing has a Model 2 form that has been pre-approved.) Certain permissible exclusions can be placed in the contract that would not require debt forgiveness, such as losses from intentional acts, losses from normal wear and tear, and losses from voluntary abandonment of vehicles.

What are the Rates That Can Be Charged?

The OCCC rules set forth maximum rates can are considered to be “reasonable.” These percentages are multiplied by the amount

financed on the contract, with the corresponding amount added as an “other charge” on a line that is to be identified as a “debt cancellation agreement fee.” The DCA fee thus becomes a part of the amount to be paid by the debtor for which finance charge is assessed, and is spread over the term of the contract. No sales tax is added to the contract on the DCA fee. Maximum rates are based on the length of the contracts. In the case of contracts that run 12 months or less, the maximum is ten per cent. Contracts between 13 and 35 months can have 12 per cent added. And on contracts that are over 36 months, up to 14 per cent can be added. The following is an example of how the rates would work in a sample transaction. Assume an amount financed on a contract of $7,500 to be paid over 30 months. Since this transaction fits under the 12 per cent maximum, the amount to be added to the contract would be $900.00. The monthly payment would thus be boosted by $30 plus finance charge. A self-administered DCA program can be set up without any start-up or maintenance costs. There are also commercially available programs

that include assistance in administration. They usually involve the purchase of some type of insurance and setting up an off-shore company for tax shelter purposes. In determining if a DCA program is appropriate, dealers should assess whether the costs of “chasing insurance” and dealing with insurance companies is high enough to consider an option to requiring traditional insurance coverage. That cost should be balanced against the amounts actually collected from customer’s insurance policies, and weighed against the amounts that could be collected under a DCA program. Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 35 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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October 2013

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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, October 14, 2013 Dallas, Texas

seminar will be held from 9:00am - 3:30pm DoubleTree by Hilton – Dallas Market Center 2015 Market Center blvd. | Dallas, TX 75207 214.741.7481

Discount Pricing for Multiple Attendees! MeMbers – First registrant $149, each additional $99 (Must be from same dealership)

sponsored by:

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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.

Upcoming seminar dates: December 2, 2013 - Austin Texas Independent Automobile Dealers Association

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regulation matters If It’s Not One Thing It’s The Next

by Danny

fter absorbing all the information in the lengthy cover story for this issue, I figured the reader might be interested in a Regulation Matters column that was digestible in somewhat smaller (and less complex) chunks. Some of the tidbits below come from the updated Dealer 101 seminar which was held in September (the next one will be in Houston on November 4 — see pg. 38) and some come from the various member calls and emails that we get each week here at the TIADA office.

Emissions Control Systems Reminder

It has come to the association’s attention that some dealers are acquiring vehicles with a portion of the emissions controls either removed or made inoperable. The Texas Clean Air Act contains a provision making it illegal to retail a vehicle that has had the emissions controls removed or made inoperable (dealer wholesale transactions are exempt). The Texas Commission for Environmental quality has enforcement jurisdiction. In addition to complying with this law, dealers must also post the following notice in a conspicuous and prominent location near each customer entrance in each sales or lease office. The sign must be no smaller than 8” x 10” and clearly visible to all customers: STATE LAW PROHIBITS ANY PERSON FROM SELLING, OFFERING FOR SALE, LEASING OR OFFERING TO LEASE ANY VEHICLE NOT EQUIPPED WITH ALL EMISSION CONTROL SYSTEMS OR DEVICES IN GOOD OPERABLE CONDITION. VIOLATORS ARE SUBJECT TO PENALTIES UNDER THE TCAA OF UP TO $25,000 PER VIOLATION.

Dealer Metal Plates

As many of you know, some of our friends in law enforcement are not entirely clear on the fact that a vehicle operating on a metal dealer plate will only have a plate on the rear of the vehicle and will not have a front plate. If your dealership is ticketed for this, please contact TIADA. We can work with TxDMV to address the matter and potentially get the ticket dismissed.

Bankruptcy

One of the most common questions we get from our BHPH members concerns what to do if the dealer is

October 2013

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Langfield

TIADA deputy director

informed that a customer has filed bankruptcy after the vehicle has been repossessed but before the holding period has expired and the vehicle has been disposed of. The subject has some complexity — TIADA’s general counsel, Mike Dunagan, has an entire chapter on bankruptcy in his Repossessions book but the short answer is this: absent some other compelling reason, most courts will mandate the return of the repossessed vehicle upon the debtor’s presentation of proof of property damage insurance. The safest approach in such a situation would appear to be to return the vehicle upon a showing of proof of insurance and to immediately file a motion for relief from the bankruptcy stay.

Single Sticker

As reported in the Legislative Summary found in the September issue of this magazine, the passage of HB 2305 requires the combination of the inspection and registration stickers. There is a long and complicated story about how this bill came to be and TIADA’s efforts to mitigate the potential problems a single sticker system could create for dealers. However, the end result was that for dealers, a new inspection will be required on any vehicle sold which had not been inspected in the 180 day period preceding the vehicle sale date. One important thing to keep in mind: the “single sticker” initiative will be a significant undertaking for the state, requiring coordination and data-sharing among multiple state agencies. It is our understanding that implementation is still a long way down the road. TIADA will closely monitor this topic and keep our members up to date on this issue. Remember, if you have any type of industry-related legal or compliance question, you can get it answered for free through our Legal Consultation Service. This benefit is for members-only and can be accessed by sending us the LCS form found under Legal Resources at www.txiada.com or giving us a call at 800.442.5944. 23

MOTOR

VEHICL

E RETAIL

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SALES

RED ITOR SELL ER/C : ADD RESS ZIP: CITY, ST,

CONTRA

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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 ........ 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house of delegates meeting minutes July 30, 2013 | San Antonio, TX Hyatt Regency Hill Country Resort and Spa

compiled by Texas Dealer staff

At its meeting on Tuesday, July 30, 2013, TIADA took the following actions: President Byron Riley called the meeting to order at 4:43pm.

2014 Officer Elections

With no contested races, Scott Allen asked for a motion directing the Secretary to submit a single ballot for the following candidates: President, Michael Thomasson; Chairman of the Board, Byron Riley; President Elect,Brent Rhodes; Secretary, HL Hensley; Treasurer, Kathrine Tolsch; Vice President West Texas – (Region 1), James Hobson; Vice President Fort Worth – (Region 2), Tommy Gregory; Vice President Dallas – (Region 3), Kevin Mims; Vice President Houston – (Region 4), Ryan Winkelmann; Vice President Central Texas – (Region 5), Robert Beck; Vice President South Texas – (Region 6), Trey Crouch; President at Large, Greg Zak; Vice President at Large, Sonny Paredez.

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Moved by Bill Taylor, seconded by Juan Sabillón – Passed.

Bylaws

A motion was made to accept the proposed changes presented by the Bylaws Committee. Moved by Shane Rhodes, seconded by Keith Hagler – Passed.

Legislative

No recommended changes were presented by the Legislative Committee. Meeting adjourned 5:24pm. Moved by Kathrine Tolsch, seconded by Phil Lathrop – Passed. Respectfully submitted, Brent Rhodes, Secretary A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.

feature 2G Network Sunset:

What it Means and How it Affects You by Jeff Karg

Member Company, Payment Assurance Technology Association

f you are using a GPS device to track assets for repossession and recovery, your device likely uses cellular technology. That is, it operates in a similar way to a cell phone — communicating over a wireless network. Consequently, changes made by wireless carriers can and will affect your GPS devices — and there are some important changes coming. GPS tracking devices are considered “machine-tomachine” or M2M devices. That means one machine (the GPS device) is communicating with another machine (computer servers hosting a website). Most M2M devices, including GPS tracking systems, utilize the 2G cellular network. Based on the need for more advanced 3G or 4G capacity, the 2G network’s sunset is approaching and depending on your carrier, may have already begun.

Let’s take a look at how a GPS device works in general

You may be asking: I thought GPS uses satellites. What does this have to do with my device? The GPS device in the vehicle searches for GPS satellites on a continuous basis. When a location is requested, the latitude and longitude coordinates are determined based upon the location of the satellites and the vehicle. However, the device needs a method to get that information from the device to a place that is relevant to you (i.e. your device provider’s website showing a map). The device typically sends the GPS coordinates over the cellular network to the manufacturer or device provider’s

COLLECT IT. A U T O M AT E D C O L L E C T I O N TECHNOLOGY

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datacenter — so you can see its location on a map. The cellular network is a vital piece of this equation, allowing the information from the device to be sent to the datacenter in order to be accessible through a website.

Cellular Technology

In the United States, there are two primary technology standards for cellular networks: GSM and CDMA. Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA) are two competing standards in cellular service. The major difference between the two technologies is how they turn voice data into radio waves and how the carrier connects to the phone. Other differences include the coverage area and that only GSM uses SIM Cards. Currently, GSM (2G, 3G, and 4G) is used by AT&T and T-Mobile, and CDMA is used by Verizon and Sprint. 2G or 2nd generation wireless cellular technology was first introduced in the United States in 1992. It marked a change to digital technology from analog used in earlier technology (1G networks). 2G was the first technology to offer data services, such as text and picture messages. Nearly all commercial GPS devices in the subprime automotive industry today operate on the 2G network, as well as many other machine-to-machine (M2M) industries including home alarms and electronic metering. All these industries have adopted 2G technology for its board network coverage and price point. 3G, 3rd generation wireless cellular technology was first launched in the United States in 2002. This successor

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CALL 1-800-828-1564 passtimeusa.com

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to 2G offers faster speeds which allowed additional services such as video calls and mobile internet browsing and downloads. 3G technology was also seen integrated into laptops, tablets and other devices as a way to access the internet on the go. While 3G offers faster speeds, the price point and smaller initial footprint made it less appealing than 2G for the GPS device industry. As you can likely guess, 4G comes after 3G and offers even faster data speeds. 4G and 4G LTE speeds in many cases are comparable to traditional internet connections which allow the technology to be used in cell phones, computers, tablets, etc. in order to browse the internet, stream video, watch television and other functions which require high data speeds not available with earlier technologies. CDMA is a different mobile communication standard than GSM (2G, 3G, 4G LTE). CDMA is used by Sprint and Verizon and has various evolutions and generations itself. CDMA, historically, has not been used in GPS solutions due to higher price points. However, prices have come down recently for CDMA and opened up this 2nd standard as an option for GPS providers. Current CDMA networks are estimated to outlast GSM 2G.

GPS Devices Use 2G

Why? Well, primarily because it is the least expensive and currently has the most expansive network. As you have now learned, 2G technology has been around for more than twenty years. As with most technology, equipment for 2G technology has come down in price over the years, which allows you to purchase a GPS device these days for $100–$200, usually including at least a year of airtime. Compare that to the cost of your 3G or 4G cell phone which probably runs you $80 to $100 a month. It is estimated that as of 2012, there were more than 150 million M2M devices connected and of those, 64% were on 2G. Additionally, GPS based devices do not need lightningfast speeds that are required to browse the web on a smart phone or to video chat. Sending and receiving location information does not typically require anything more than what 2G offers. Low costs, wide coverage footprint, and adequate data speed make 2G a perfect fit for GPS tracking solutions, in addition to many other M2M industries, including applications for health care, electronic metering, home security and others. But, unfortunately, 2G’s end is in sight.

2G Sunset

As wireless carriers continue to build out their networks to support 4G/4G LTE and future technologies, 2G is getting more difficult to maintain. And in a few years, cellular carriers will “sunset” their 2G networks. Based on what has been announced thus far, AT&T, which seeks to expand

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its available bandwidth spectrum, appears to be the most aggressive in pursuing a 2G sunset. Announced in 2012, AT&T will have its 2G network completely shut down by the end of 2016. The process began as far back as a year ago and depending upon the location, AT&T may have already taken down its 2G capability and “re-farmed” its towers for 3G & 4G. According to an AT&T press release in May 2012, networks in New York City were being reallocated for faster, more advanced networks. It is clear that 2016 is the END date for 2G and the network is already being taken down, piece by piece. The other carriers have less aggressive timelines and have claimed they are maintaining their 2G networks for the foreseeable future, having mentioned dates of 2019 or 2021.

So, what should you do?

If you are buying a device that operates on the AT&T’s 2G network, you may want to start looking into the situation — especially if you are purchasing two or three years of airtime upfront. But regardless of which carrier your device is on, the end of the 2G network will be here before you know it and it would be prudent to understand your provider’s roadmap to newer technologies.

Steps to take now:

Get informed! Ask your device provider: What wireless carrier is my current device using? How long does the provider anticipate the current technology will work on the network? Am I purchasing airtime that exceeds the date the 2G network will be up? Most importantly: What is the provider’s technology roadmap and plan for the end of 2G?

Payment Assurance Technology Association (PATA) serves the starter interrupt/GPS tracking industry. PATA seeks to unify, standardize and validate the activities of the industry and markets engaged in the manufacture, sale and use of technology for monitoring or disabling vehicles and for other applications. Jeff Karg is Director of Corporate Communication for PassTime, a founding member company of PATA. For more information on PassTime’s technology roadmap, call 877-727-7846 or visit passtimeusa.com.

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– Save the date! –

july 27–30, 2014

Live at Lost Pines

austin music

with

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Tiada Annual Conference & Expo the 2014

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feature Getting Your Best BHPH Customers Back by Kenneth Shilson, CPA

Founder/President, NABD/Subprime Analytics

he first half of 2013 is now in the rearview mirror for the buy here, pay here industry and it’s time to look back. Many operators reported lower unit sales versus the same period last year. Two important questions are, “Why?” and “What can be done to improve unit sales during the remainder of the year?” I address both in this article. Experian Automotive provides excellent information quarterly on automotive market share. Their numbers for the first quarter of 2013 indicated that BHPH market share declined 6.4%. Although a 6% decline is not good, the real math is worse. Experian reports that BHPH market share declined from 17.1% to 10.7%. Therefore, the real decrease was actually 33% of the previous market. Correspondingly, subprime auto financing increased almost the same percentage. Second quarter numbers will be announced shortly, but don’t expect a big rebound!

OK, enough bad news already: what caused the decline? A careful analysis of the first-half performance reveals that the following influences adversely impacted BHPH sales: Tax refunds were slow to arrive and somewhat smaller when they did! Some never arrived at all. Additional payroll withholding reduced low-income earners ($30,000 - $50,000 per annum) take-home pay by $600 to $1,000. This really hurt their liquidity! Gas and food prices increased sharply compared with 2012, consuming more of each customer’s disposable income. The US economy has rebounded somewhat; however, overtime hours and workforces have been reduced. The subprime auto finance industry has been extremely aggressive in buying deals from deep subprime customers with bureau scores as low as 460! Worse yet, these customers are being sold new and late-model vehicles with long repayment terms and very large monthly payments, which they can’t afford. Subprime customers are encouraged to “give back” their existing vehicles by subprime finance companies, and to purchase the vehicles described in 5 above. This has resulted in more voluntary repossessions for BHPH operators. Enough negative news; what should the BHPH industry do in response? My suggestions start with what not to do! Operators should not change their business models by putting too little customer into too much vehicle. This is a “road map for failure” as documented by more than $11 billion in contracts I have analyzed. However, operators must not sit back and wait for the market to return. If you do nothing, you cannot expect different results. The answer is to rebuild a stronger bond with their BHPH customers. As I survey the operators who are maintaining or growing market share, I note one common trait — they are proactive. At a recent NABD Boot Camp meeting, several of the nation’s most experienced operators offered creative ways to compete proactively. Here are some of the ideas: Place a ‘welcome’ telephone call shortly after each sale, and ask for referrals. Hold customer appreciation events.

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S trengthen warranty or extended service-contract programs. Offer free maintenance services to good paying customers. Maintain more-positive contact with customers during the entire term of their contracts. Other suggestions were discussed but readers should get the message. Successful operators today embrace technology. Payment devices, the internet, pay portals, and other technology have increased efficiency, profits, and cash flow. Technology plays an important role in competing successfully, and its use is strongly encouraged. However, operators should not replace their personal customer bond with a technological substitute! The industry needs to help customers make better longer-term decisions when purchasing their next vehicle. A short-term default created by unrealistic repayment terms does not provide the “transportation solution” they really need. I deeply respect the creativity and innovative ideas posed by the successful operators in the BHPH industry today. They represent many of the best business people I have ever met and they are survivors. The future of the automotive industry in America needs them to be! Good luck during the remainder of 2013 and let’s make 2014 our best year ever! The upcoming NABD East Coast BHPH Conference in New Orleans on November 3–5 will focus on how to find and keep your best customers. NABD membership is open to anyone in the BHPH industry and to service providers. Members pay no dues. For more information on upcoming NABD events, call 832-767-4759 or visit www.bhphinfo.com.

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Upcoming Events TIADA Dealer Academy October 2013 14 Keeping Your Dealership

Legal & Compliant DoubleTree by Hilton Dallas Market Center 2015 Market Center Blvd. Dallas, TX 75207 214.741.7481 Online registration available at www.txiada.com

November 2013 4 Dealer 101: Nobody Told Me That!

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

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

Other TIADA Events October 2013 21 TIADA Board of Directors Meeting

Austin, TX

January 2014 27 TIADA Board of Directors Meeting

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

TIADA ad 7.5x10.ai 1 9/10/2013 2:29:55 PM

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fines& violations 11-0770 ENF Serene Unlimited, Inc. DBA Xena Auto Sales Failure to have business hours posted at the dealer’s location. Failure to timely transfer title and pay sales tax. $500.00 and attend a Dealer Training Seminar. 12-0999 ENF Auto Brokers Express LLC DBA Auto Brokers Express LLC Failure to timely transfer title and pay sales tax. Failure to allow purchaser to select county for registration. $500.00 and attend a Dealer Training Seminar. 12-1415 ENF Grapevine Imports LTD DBA Texas Toyota of Grapevine Failure to timely transfer title and pay sales tax. $500.00 and attend a Dealer Training Seminar.

Final orders for May 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.

12-1432 ENF Eric L. Ferguson DBA APB Motor’s Failure to have business hours posted at the dealer’s location. Sold or offered to sell a motor vehicle at an unlicensed location. Failure to timely transfer title and pay sales tax. $500.00 and attend a Dealer Training Seminar. 12-1790 ENF Julio Cesar Medina DBA Julio’s Used Cars Delivered title directly to retail buyer. Failure to allow purchaser to select county for registration. $1,000.00 and attend a Dealer Training Seminar. 13-0108 ENF Alfredo Jose Roel, Jr. DBA Diamond Automotive Group Failure to maintain complete records

by licensed dealer or auction. Failure to timely transfer title and pay sales tax. $1,500.00 and attend a Dealer Training Seminar. 13-0120 ENF James Higdon, Simone Higdon DBA Bull Frog Auto Sales Failure to comply with a Final Order. Failure to maintain complete records by licensed dealer or auction. Failure to produce records within (15) days. Failure to timely transfer title and pay sales tax. Failure to allow purchaser to select county for registration. $2,750.00 and attend a Dealer Training Seminar. 13-0174 ENF Carz of Texas Auto Sales, LLC DBA Carz of Texas Failure to timely transfer title and pay sales tax. $1,000.00.

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13-511 CAF NIADA October 2013 T Local e x Ad a fors October D e- Texas.indd a l e r

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fines& violations 13-0226 ENF Renato Madrigal DBA Charro Auto Sales Failure to remove Texas plates. Failure to take assignment of title or MCO. $1,000.00. 13-0381 ENF Ana Lilia Gomez DBA Dicker Auto Sales and Body Shop Misuse of buyer temporary E-tag. Failure to timely transfer title and pay sales tax. $1,000.00 and attend a Dealer Training Seminar. 13-0391 ENF McGavock Auto Group LLP DBA McGavock Nissan Failure to timely transfer title and pay sales tax. $500.00 and attend a Dealer Training Seminar. 13-0399 ENF KBLB-Ken LTD, DBA San Marcos Auto Outlet, San Marcos Nissan Failed to identify a motor vehicle by model year, make, and model line and style when the price is advertised. $1,000.00 and attend a Dealer Training Seminar. 13-0434 ENF Attractions Unlimited, Inc. DBA Attractions Unlimited Auto Brokers Misuse of buyer temporary E-tag. Failure to meet premises requirement(s). Failure to remain actively engaged in business as a motor vehicle dealer by failing to sell at least five (5) vehicles in a 12 month period. Failure to timely transfer title and pay sales tax. $1,500.00. 13-0446 ENF Aaron Tucker, DBA Aarons Autos Failure to comply with a Final Order. $4,500.00. 13-0469 ENF Gustavo Leija, Jose Victor Longoria DBA L & L Auto Sales Misuse of temporary dealer tag or failed to comply with recordkeeping requirements. Misuse of buyer temporary E-tag. Failure to produce records within (15) days. $1,500.00 and attend a Dealer Training Seminar. 13-0470 ENF Jose L. Liceaga, DBA Liceaga Auto Sales Failure to maintain complete records by licensed dealer or auction. Sold or offered to sell motor vehicles on consecutive Saturday and Sunday. $2,000.00 and attend a Dealer Training Seminar. 34

13-0492 ENF Emanuel Motor Company, Inc. DBA Emanuel Motor Company, Inc. Misuse of buyer temporary E-tag. $2,000.00 and attend a Dealer Training Seminar. 13-0495 ENF Mission Automotive, LLC DBA Mission Mitsubishi Misuse of buyer temporary E-tag. Failure to timely transfer title and pay sales tax. Failure to allow purchaser to select county for registration. $1,500.00. 13-0497 ENF VBM Acquisition, LLC DBA Scion of Boerne, Toyota of Boerne Misuse of buyer temporary E-tag. Sold a motor vehicle without certificate of title or title receipt. $1,000.00. 13-0577 ENF Autogroup Premier Inc. DBA Roger Beasley Mazda Killeen Sold a motor vehicle without certificate of title or title receipt. Cease and desist. 12-1049 ENF Griselda Bayona DBA Chaparral Motors Failure to display buyer’s guide. Failure to maintain complete records by licensed dealer or auction. Failure to have written consignment agreement. $300.00. 12-1052 ENF Nosrat Heidarian/Cyrous Heydarian DBA Auto Mall Failure to display buyer’s guide. Failure to remove Texas plates. Failure to meet premises requirement(s). $250.00. 13-0476 ENF Juan Delapaz DBA Ody’s Autos Failure to remove Texas plates. $50.00. 13-0478 ENF Daniel Vega, Jose Luis Escarsega DBA Reliable Auto Sales Failure to remove Texas plates. $50.00. 13-0479 ENF JCRJ Inc. DBA El Ray Auto Sales Failure to remove Texas plates. Failure to observe right of way. $150.00. 13-0529 ENF Patrick Glenn Porter DBA Automotive Depot Failure to display buyer’s guide. Failure to remove Texas plates. Failure to maintain complete records by licensed dealer or auction. $250.00. T e x a s

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October 2013

13-0530 ENF Ramiro Tanguma DBA Capitol Motors Failure to display buyer’s guide. Failure to maintain complete records by licensed dealer or auction. Failure to observe right of way. $300.00. 13-0537 ENF Luna Car Center LLC DBA Luna Car Center Failure to display buyer’s guide. Failure to remove Texas plates. Failure to maintain complete records by licensed dealer or auction. $250.00. 13-0538 ENF Alamo Motor Sales Co. DBA South Texas Motors Failure to display buyer’s guide. Failure to remove Texas plates. $150.00. 13-0539 ENF Champion Pre-owned Cars & Truck LLC DBA Champion Motor Company Failure to display buyer’s guide. Failure to remove Texas plates. $150.00. 13-0540 ENF Henry Joseph Garcia DBA Garcia Brothers Auto Sales Failure to display buyer’s guide. Failure to take assignment of title. $200.00.

October 2013

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13-0541 ENF Orbitrom USA Inc., DBA EZ Motors Failure to display buyer’s guide. Failure to remove Texas plates. Failure to take assignment of title. $250.00.

13-0555 ENF Nicolas Macias, DBA Go Auto Sales Failure to remove Texas plates. Failure to maintain complete records by licensed dealer or auction. $150.00.

13-0544 ENF Arturo Martinez DBA Smart Guy Auto Sales Failure to display buyer’s guide. Failure to remove Texas plates. $150.00.

13-0556 ENF S.F.M. Motor Inc., DBA S.F.M. Motors Failure to display buyer’s guide. Failure to remove Texas plates. Failure to maintain complete records by licensed dealer or auction. $250.00.

13-0545 ENF C.E. Littlefield DBA C.E. Littlefield Auto Sales Failure to display buyer’s guide. Failure to remove Texas plates. Failure to maintain complete records by licensed dealer or auction. $250.00. 13-0548 ENF Dale A. McCulloch, DBA Dales Motor Co. Failure to remove Texas plates. $50.00. 13-0549 ENF Miguel Angel Chi DBA El Padrino Auto Sales Failure to display buyer’s guide. $100.00. 13-0550 ENF Armando Echeverria DBA E.P. Auto Sales Failure to remove Texas plates. $50.00.

13-0557 ENF Armin Mazaheri, DBA Atlas Motors Failure to display buyer’s guide. Failure to remove Texas plates. $150.00. 13-0558 ENF Salamon Enterprises Inc. DBA Dallas Auto Nation Failure to display buyer’s guide. $100.00. 13-0559 ENF Manuel Rivera, DBA Aleman Automotriz Failure to remove Texas plates. Failure to take assignment of title. $150.00. 13-0562 ENF El Dorado Motor LLC DBA Texas Ed Dorado Motors LLC Failure to display buyer’s guide. Failure to take assignment of title. $200.00.

fines& violations 13-0563 ENF Zachary Neal Grier, DBA A. Affordable Autos Failure to display buyer’s guide. Failure to remove Texas plates. $150.00. 13-0564 ENF Javier Lerma, DBA Jay’s Auto Sales Failure to display buyer’s guide. Failure to remove Texas plates. $150.00. 13-0365 ENF Ernesto Saucedo, DBA Ernesto Auto Sales Failure to display buyer’s guide. Failure to remove Texas plates. Failure to maintain complete records by licensed dealer or auction. $250.00. 13-0566 ENF Cowboy’s Auto Group, LLC DBA Cowboy’s Auto Sales Failure to display buyer’s guide. Failure to remove Texas plates. $150.00. 13-0567 ENF Roberto Q. Garcia, DBA R & R Motors Failure to display buyer’s guide. Failure to remove Texas plates. $150.00.

13-0569 ENF Magic Time Motors Corporation DBA Magic Time Motors Corporation Failure to display buyer’s guide. Failure to maintain complete records by licensed dealer or auction. Failure to display license. $300.00. 13-0572 ENF McAk Used Cars and Auto Repair LLC DBA McAk Used Cars and Auto Repair LLC Failure to display buyer’s guide. Failure to remove Texas plates. $150.00. 13-0573 ENF David Dustin Boswell DBA Best Choice Motors Failure to display buyer’s guide. $100.00. 13-0578 ENF Mohammad Paran DBA San Antonio Auto Brokers Failure to display buyer’s guide. Failure to meet premises requirement(s). Failure to display license. $300.00. 13-0579 ENF Brasada Ford LTD, DBA Southside Used Failure to display buyer’s guide. Failure to maintain complete records by licensed dealer or auction. Failure to display license. $300.00.

13-0580 ENF Russell Hild DBA Texas Auto Mart Failure to display buyer’s guide. Failure to remove Texas plates. $150.00. 13-0581 ENF Monarca Motor Inc. DBA Monarca Motor Inc. Failure to display buyer’s guide. Failure to maintain complete records by licensed dealer or auction. Misuse of temporary dealer tag(s). $300.00. 13-0584 ENF Jesus M. Torresdey DBA Carlo Motors Failure to display buyer’s guide. Failure to observe right of way. $200.00. 13-0598 ENF Carlos Jimenez, DBA C.J. Auto Sales Failure to display buyer’s guide. Failure to remove Texas plates. $150.00. 13-0599 ENF D.I.S. Investments, LLC DBA S.I.D. Motors Failure to display buyer’s guide. Failure to remove Texas plates. $150.00.

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HOUSTON 4526 N SAM HOUSTON PWY W HOUSTON TX, 77086 281-580-7755

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October 2013

fines& violations 13-0600 ENF Chubby’s Auto Center Inc. DBA Chubby’s Auto Center Failure to display buyer’s guide. Failure to remove Texas plates. $150.00. 13-0601 ENF Roberto Rodriguez DBA RRR Car Sales Failure to display buyer’s guide. Failure to remove Texas plates. No metal dealer plate record. $250.00. 13-0602 ENF Mervat Adzy Kamel, DBA Phillips Motor Cars Failure to display buyer’s guide. Failure to remove Texas plates. Failure to display license. $250.00. 13-0607 ENF Fred Yamaguchi DBA Trade Winds Auto Sales Failure to display buyer’s guide. Failure to remove Texas plates. Failure to maintain complete records by licensed dealer or auction. $250.00.

October 2013

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13-0608 ENF Charles E. Polanco Jr. DBA Frank N. Sons Motors Failure to display buyer’s guide. Failure to remove Texas plates. Failure to maintain complete records by licensed dealer or auction. $250.00. 13-0609 ENF Arturo Monroy, DBA Monroy Auto Sales Failure to display buyer’s guide. Failure to remove Texas plates. $150.00.

13-0629 ENF Luis Rodriguez, Lidia Rodriguez DBA LL Rodriguez Car Sales Failure to display buyer’s guide. Failure to maintain complete records by licensed dealer or auction. $200.00. 13-0656 ENF Idolina Guzman DBA Guzman Auto Sales Failure to remove Texas plates. $50.00.

13-0624 ENF Mohammed Nafiz Bhuiyan, Fahim Hoq DBA Half Price Motors Failure to display buyer’s guide. $100.00.

13-0670 ENF American Auto Sales of Killeen, Inc. DBA Payless Car Sales Failure to display buyer’s guide. Failure to observe right of way. $200.00.

13-0625 ENF One Nation Auto Group, Inc. DBA One Nation Auto Group Failure to display buyer’s guide. Failure to remove Texas plates. $150.00.

13-0675 ENF Eakin Killeen, LP DBA Dennis Eakin, KIA-Preowned Failure to display buyer’s guide. Failure to observe right of way. $200.00.

13-0627 ENF Henry Rangel, DBA Auto Advantage Failure to display buyer’s guide. Failure to remove Texas plates. Failure to maintain complete records by licensed dealer or auction. $250.00.

13-0702 ENF East West Auto Sales/Olma Enterprises Inc. DBA East West Auto Sales Failure to display buyer’s guide. Failure to maintain complete records by licensed dealer or auction. $200.00.

TIADA DeAler AcADemy 2013

Dealer 101: Nobody Told Me That! This class is designed for those dealers new to the business, those considering opening their own dealership, new employees, family members or anyone else needing a refresher on the basics. Weâ&#x20AC;&#x2122;ll cover everything you need to know to run a clean, compliant used car dealership in Texas. Topics include: n n

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8:30am - 5:00pm $149 Per Registrant

Transferring Titles Inspections, Emissions, Green Slip Garage Liability & Dealer Bond Odometers Title & Registration Fees Acquiring Inventory Temp Tags & Metal Dealer Plates Requirements for Maintaining Dealer License The Buyerâ&#x20AC;&#x2122;s Guide - As Is

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

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

Presenters will include:

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

Monday, November 4, 2013 Houston, Texas Crowne Plaza Hotel 12801 Northwest Frwy. | Houston, TX 77040 713.462.9977

Featu updat ring the N es on EW APP a TITLE Requi nd ID remen ts!