Page 1

Your Annual

Compliance Quiz is Inside

To: TIADA Member From: Your As

sociation

In This SPECIAL COMPLIANCE Issue: - Maximum Finance Rate Charges for 2014 - TxDMV Enforcement’s Updated Dealer Checklist - The OCCC’s Dealer Compliance Report - Dealer Audit Issues from the Texas Comptroller - Regulation Matters: Flapping Temp Tags & Seasonal Storage Lots


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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 12

/

D e c 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 HL Hensley, TIADA Secretary

6 On The Cover: Your Annual Compliance Quiz 11 A Holiday Message On Dealer Inspection Reports by Bill Harbeson

12 Upcoming Events 14 Local Chapters 14 2013 Auto Auction Directory & Resource Guide 16 Maximum Finance Charge Rates for 2014 by Michael W. Dunagan

21

OCCC Regulatory Activities Report by Rudy Aguilar

24 Board of Directors Meeting Minutes 25 Regulation Matters: Flapping Temp Tags & Storage Lots by Danny Langfield

26

Texas Comptroller Audits

Provided by Texas Comptroller of Public Accounts Staff

29 New Members 31 Fines & Violations 41 Legal Corner: Bankruptcy Filed After Repossession: To Return or Not to Return by Michael W. Dunagan

46 Behind the Wheel by Jeff Martin

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

Membership renewal – that’s what’s happening! When you login, your welcome screen displays a reminder of your membership status. If your membership is only current through 12/31/13, click the renewal link and easily renew your membership online for 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 Giving Thanks & Getting Prepared

‘T

is the season! I’ve always enjoyed this time of year. Having my own Thanksgiving and Christmastime traditions, I revel in this time of celebrations. At my dealership, we have a small group of employees who coordinate events throughout the year. They are a self-appointed committee intent on creating a celebration for just about everything. (They asked once if we would close for Arbor Day! I politely said, “Not this year.”) In addition to birthdays, anniversaries and the like, they plan out celebrations for our dealership. Everything Thanksgiving and Christmas, a few days before each, we lock the stores and shutter the windows. We pull the stops and create a feast worthy of any family and we eat and spend time together. For two hours it is our time as a family to be thankful together. This year we have quite a lot to be thankful for. While the market is unpredictable and competition runs deep, we are thankful for a few things. In particular: we are thankful to be employed today; we are thankful for the opportunity to get up and have a place to go every morning; we are thankful to be a part of a winning team and great atmosphere; we are thankful to all of the men and women in uniform whose sacrifice has made these days possible… the list goes on! I am also thankful for the efforts of TIADA, its staff, and members. So many great and wonderful things have occurred/are occurring with our organization. I am thankful for the tireless nights staff spends during the legislative session in order to pursue and protect our goals. I am thankful for the TIADA members who take time and energy (often at their own expense) to meet with law makers. I am also thankful for an ability to get into the offices of these policy makers and directly communicate our goals.

December 2013

T e x a s

D e a l e r

by HL

Hensley

Automax of Lubbock TIADA SECRETARY

This thanksgiving is timely as tax season is coming up. At my dealership, we begin to inventory a few more cars and make various preparations in anticipation of the annual increase in sales volume. This year, we are also working hard on dialing into our customer service policies and procedures. Buyers have many choices and we want to make sure we are delivering high-quality service and products. Are you also looking at your customer relations? This is also our “Spring Cleaning” time of year. We clean-out/up deal shelves and paperwork, take the time to work on our personal and professional goals for the upcoming year, and look to increase our inventory knowledge. In our segment of the market, it is important for us to ensure that our salespeople have as a minimum a cursory knowledge of the vehicles in inventory. In our experience, this not only helps in the sale process but also helps our salespeople to engage in their product. Are you developing your employees into professionals? With this time of thanksgiving also comes a lot of work; but, what’s new in our world? It’s time to be thankful for what we have and gear-up for what is shaping up to be an outstanding sales period. One more item of thanksgiving: I am thankful for you, the reader of this article. I am thankful for the time and consideration you give towards supporting TIADA. I am thankful for the work you do not only to make your dealerships better, but also those things you do that make our industry better. I am thankful for your families, for the sacrifices they endure so that you may do these things. Today, we have a lot to be thankful for. Happy Holidays!

5


on the cover

Your Annual

Compliance Quiz To: TIADA Member From: Your As

sociation

...You’re Welcome! (Editor’s note: Each of the questions on the following quiz is taken from information that appeared in a Legal Corner or Regulation Matters column in the Texas Dealer magazine in 2013.)

1. True or False: If a legal restraint has been placed on a vehicle’s title record by VTR, a motor vehicle inquiry (TWIX) through the MVInet service will indicate the presence of the legal restraint. 2. True or False: The liability insurance of a third party who causes damage to the lien holder’s collateral provides no coverage to the lien holder.

6

3. Dealer metal plates are required to be displayed: a. In the front plate holder b. In the rear plate holder c. In both front and rear plate holders d. In the rear window 4. True or False: The $5 eTag fee must be collected and remitted to the county for out-of-state sales. T e x a s

D e a l e r

December 2013


5. True or False: A facility that does not hold a VSF (Vehicle Storage Facility) license issued by TDLR may not legally charge storage fees for vehicles. 6. Which of the following documents must be in Spanish if the car buyer only speaks Spanish? a. C  redit application. b. Motor vehicle installment contract. c. Buyer’s order. d. Buyer’s Guide. 7. The original rules requiring a dealer to make a copy of their customer’s ID and retain it in the deal jacket went into effect on: a. September 1, 2012 b. September 1, 2013 c. November 1, 2013 d. They have not yet gone into effect 8. True or False: I can refuse to allow my customer to retain salvage and repair a vehicle that has been declared by the insurance company to be a “total loss.” 9. True or False: An employee (non-owner) of a dealership may not accept cash on the sale of a vehicle in a wholesale transaction. 10. True or False: The FTC Buyer’s Guide must be displayed on a side window of every used vehicle offered for sale by a dealer. 11. When it comes to used vehicle pricing, which two of the following practices are acceptable: a. O  ffering a customer a discount for paying cash b. Marking a vehicle up by more than 50% of your acquisition cost c. Increasing the purchase price as a condition of financing d. Advertising $500 off the price of your vehicle e. Increasing the purchase price for anyone from Oklahoma December 2013

T e x a s

D e a l e r

12. Which of the following types of sharing of information would trigger the use of a long-form privacy notice that contains an “opt-out” provision? a. C  ustomers’ personal information given to a finance company that is looking to buy a dealer’s receivables. b. C  ustomers’ personal information given to a collector who is attempting to collect a past-due account. c. C  ustomers’ personal information given to a licensed marketing firm to carry out a sales campaign. d. Customer’s pay-off balance given to another dealer who is negotiating with my customer to work a trade.

17. In a retail installment transaction, the seller is subject to Chapter 348, Texas Finance Code, which allows for which of the following itemized charges to be added to the cash price: a. Fees for registration, certificate of title, and license and any additional registration fees charged by a full service deputy under Section 502.114, Transportation Code b. Any taxes c. Fees or charges prescribed by law and connected with the sale or inspection of the motor vehicle d. Charges authorized for insurance, service contracts, warranties, or a debt cancellation agreement e. All of the above

13. The VTR 271-A Secure Power of Attorney (brown POA) Part A may be used… a. W  hen the title is not present at closing and the customer won’t come back in to sign it later b. W  hen the customer is trading in a vehicle and has lost the title c. W  hen the dealer wants to title and register a vehicle in the dealership’s name

18. True or False: The amount that can be charged for a debt cancellation agreement can’t exceed five per cent of the amount financed.

14. True or False: A dealer who takes fewer than 150 credit applications a year doesn’t have to send written adverse credit action notices to applicants who are turned down. 15. True or False: All significant interpretations of statutes and rules by regulatory agencies are issued by formal opinion. 16. Which of the following charges is not authorized to be added to a motor vehicle retail installment contract: a. A  charge for installation of a GPS unit. b. Title, registration and license fees. c. A  premium for the sale of a commercial service contract. d. A premium for a propertydamage insurance policy.

19. Under guidelines from the Office of Consumer Credit Commissioner, a car creditor can (pick one): a. Reject a property-damage policy that is month-to-month. b. Reject a policy from a company that appears on a creditor’s list of unacceptable companies. c. Reject a policy that specifically excludes coverage to a family member of the debtor. d. Require debtors to obtain insurance from insurers on the creditor’s approved list. 20. Under Texas law, a BHPH seller of a vehicle (has) (doesn’t have) liability for the subsequent negligence of an uninsured customer who causes a wreck. Answers can be found on page 44.

7


TIADA DeAler AcADemy 2014 Education Offerings for the Winter/Spring Seminar Schedule Dealer 101: Nobody Told Me That!

Keeping Your Dealership Legal & Compliant

TIADA 2014 Annual Conference & Expo July 27–30, 2014 — Austin Hyatt Regency Lost Pines Resort & Spa 575 Hyatt Lost Pines Road | Lost Pines, Texas 78612

Monday, January 13, 2014 – Fort Worth

Monday, February 10, 2014 – Houston

Monday, March 24, 2014 – San Antonio

Monday, April 28, 2014 – Fort Worth

Monday, May 12, 2014 – Houston

Monday, June 09, 2014 – San Antonio

8:30 a.m. - 5:00 p.m.

9:00 a.m. - 3:30 p.m.

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, including: • Transferring Titles • Odometers • Title & Registration Fees • Temp Tags & Metal Dealer Plates • Requirements for Maintaining Dealer License • The Buyer’s Guide - As Is • SOLD! The Deal Jacket

The seminar will focus on advanced financing concepts, with special emphasis on in-house financing, repossession & bankruptcy issues, OCCC compliance and federal regulations. • Record Keeping • Motor Vehicle Sales Tax • Vehicle Inventory Tax • Consignment • Online Sales • Out of State / Out of Country • OCCC: the MVSF License • Federal Requirements

• OCCC Audits – what are the most common mistakes dealers make? • What is the Comptrollers position on GPS units? • Credit Card Convenience Fees – what is allowable? • Consumer Financial Protection Bureau (CFPB) – how might it affect dealers? • Bankruptcy – when do we have to give the vehicle back?

$149 per registrant

tiada Annual Conference & expo

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

Hyatt Regency Lost Pines Resort & Spa 575 Hyatt Lost Pines Road Lost Pines, Texas 78612

Lost Pines

@

austin music

with

+

austin food

+

austin flavor

tiada education

Texas Independent Automobile Dealers Association

Register online at www.txiada.com or by phone at 800.442.5944.


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feature A Holiday Message On Dealer Inspection Reports by Bill Harbeson

Director, TxDMV Enforcement Division

A

h... tis the season. There is a decision what those hours will be, provided touch of winter in the air. The you are still open a minimum of four days lights are going up, and your a week and four hours a day. Being open customers, when not watching the consecutive Saturdays and Sundays is big game, are shopping for a new still not allowed. vehicle (hopefully on your lot). The While your telephone or recordchildren grow excited, the mering device still must be answered or chants become anxious, and we are from 8am to 5pm during the weekall inundated with catalogues addays, the telephone does not have to vertising items you never dreamed be land-based. The number must be that you could live without. And, listed. then, there is the seasonal call from There must still be a sign with six inch Danny Langfield from TIADA asking letters, but that sign may now be a banner that about his yearly gift to all of his members — is affixed to the structure. (We found the banthe annual compliance issue with the new Dealer ner manufacturers often produced a much easier to Inspection Report/checklist. I love this time of year. read and tasteful sign than our licensees. To those of you This year’s offering is different from the checklists we who are artistic, I apologize.) A rule change provides that have used in previous years. We were finally able to catch the sign does not necessarily have to be visible from the up with the many changes made in statute and rules that street. affect our dealer community. Many of these changes, Because of a rule change, we no longer make sure your of course, were the direct result of the outstanding efoffice is 100 square feet and has 7 foot ceilings. That forts of Board Members Blake Ingram*, Laura Ryan and requirement, to the disappointment of the building Raymond Palacios of the other members of the Dealer professions, is no longer on the checklist. License Advisory Committee who greatly simplified the To the excitement of many, we no longer care if premises and other rules that dealers must follow, and your business model calls for the customers to walk that our investigators must review, when an inspection of through a food preparation area to get to your office a dealership occurs. to consummate a transaction. (I was tempted to write Providing you with the Dealer Inspection Report (be“consume” a transaction but was dissuaded by my ginning on pg. 13) serves two important purposes. First, staff.) it allows you, the licensee, to see exactly what the investiIt is now your call as to whether you elect to have gator uses when conducting an inspection. Transparency, electricity, heating and lighting. A dark, cold office is predictability and fairness are guiding principles in our permitted. You can close your deals by candlelight. compliance program. Second, providing you with the However, you must still have internet access and your form provides you with an important tool you can use to lot should be illuminated if you have chosen to be open self-check your operations to make sure you are in comat night. pliance. On those few slow days on your lot, you and/or A desk and two chairs are still required. A filing cabiyour staff can go through the checklist to make sure your net is no longer required. business is on the right track. (We do not require that you The rules and, accordingly, the checklist, have not report to the Enforcement Division any violations you changed appreciably in regard to operations with othmay discover during the self-checks, but do encourage er businesses. What our investigators, or you, check you to address the issue or call our offices for assistance.) when looking at plates and tags has not changed at all So what are the changes and item on the checklist of from earlier versions of the checklist. which you should be aware? In the section on “Sales Records”, a new item has been included, in light of the statute and rule changes, to While your business hours must still be posted outside determine whether the sales file has a copy of the to be visible to the investigators and the public, what purchaser’s personal identification. An item in the those hours are is no longer dictated by rule. It is your “Miscellaneous” section of the report has been added

Naughty Nice?

December 2013

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to determine compliance with the emissions laws, where applicable.

Upcoming Events TIADA DEALER ACADEMY 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

January 2014 13 Dealer 101: Nobody Told Me That! Radisson Hotel Fossil Creek 2540 Meacham Blvd. Fort Worth, TX 76106 817.625.9911 Online registration available at www.txiada.com

February 2014 10 Keeping Your Dealership

Legal & Compliant Crowne Plaza Hotel 12801 Northwest Frwy. Houston, TX 77040 713.462.9977 Online registration available at www.txiada.com

March 2014 24 Dealer 101: Nobody Told Me That! San Antonio, TX

April 2014 28 Keeping Your Dealership

Legal & Compliant Radisson Hotel Fossil Creek 2540 Meacham Blvd. Fort Worth, TX 76106 817.625.9911 Online registration available at www.txiada.com 12

May 2014 12 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

June 2014 9 Keeping Your Dealership Legal & Compliant San Antonio, TX

OTHER TIADA EVENTS

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

Danny requested that I poll the investigators and ask: “What makes a successful inspection?” Unanimously, the response was whether the licensee was cooperative during the visit and receptive to the investigator identifying violations that may have been observed. I know the phrase “We’re from the state and we are here to help you” is often the funny opening line in speeches by regulators (I confess I have used this before), but in our practice, it is the truth. We are sincerely interested in educating our dealers and other licensees in the legal way to operate their businesses. If we are not meeting our goal in this area, or if an investigator does not treat you in a totally professional manner during an inspection, please contact me. In addition to Danny’s question about successful inspections, I also asked our investigators an additional question to try to add some excitement (and maybe length) to the article. That question was: “What was the strangest thing you have ever seen during a visit to a dealership?” The responses I received to this latter question (and there were many) were, upon careful consideration, a bit “too exciting” for this journal, and, thus, will not be shared with you at this time. {Editor’s Note: Mr. Harbeson has been asked to present once again at the TIADA Annual Conference (July 27-30, 2014). One hopes he may be persuaded to share some of the responses he received at that time…} In closing, please contact me or our staff should you have any questions regarding the new inspection report, the underlying laws or any other aspect of our compliance program. We wish you, your employees and your families the very best for the holidays, and for a prosperous new year. We look forward to continuing to serve you in 2014 and beyond. T e x a s

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ENFORCEMENT DIVISION • TEXAS DEPARTMENT OF MOTOR VEHICLES 4000 Jackson Ave. • Austin, Texas 78731 • (512) 302-2474 • FAX (512) 374-5496 • www.txdmv.gov

DEALER I N S P E C T I O N R E P O R T Date/Day: _________________ S M T W T F S Time: ________

GDN: _____________ Type GDN: Retail or Wholesale

Dealership Name: ______________________________________ Representative & Position:_______________________________ Address Inspected: ___________________________________________________________ Date First Licensed: _______________ Operating at licensed address? ___ Yes If Not, Explain: _______________________________________________________________ PREMISE PLATES & E-TAGS _____Open 4 days per week - retail or 2 days per week - wholesale _____Metal dealer plates displayed properly _____Open 4 consecutive hours per day - retail or 2 consecutive _____Metal dealer plates logged and accounted for hours per day - wholesale _____Metal plates removed from cars and light truck inventory _____Hours posted at main entrance of office accessible to the public _____Internet Down e-tags secured _____Posted return sign if not present during posted business hours _____Internet Down e-tags tags accounted for _____Office accessible to public _____Dealer tags used properly _____Owner or bonafide employee present during business hrs _____Buyer tags used properly _____Telephone answered 8a to 5p weekdays TITLES _____Office sign permanent, 6 in letters, same name as on license _____Titles properly assigned _____Office not located within a residence, apt. house, motel, or _____Titles transferred in a timely manner rooming house _____Titles for inventory, original or copies _____Office located in a bldg., with connecting exterior walls on all SALES RECORDS sides _____Consignment agreement (if applicable) _____Meets zoning ordinances and deed restrictions _____Purchase records for inventory _____Not more than 4 retail or 8 wholesale dealers in same structure _____Sales tax exemption form _____Vehicle display area in compliance with rules _____Records available for inspection _____Physical address recognized by USPS or can receive US mail _____Previous 13 months onsite _____If portable structure, not readily moveable _____RIC, sales contract, or bill of sale _____Desk _____Chairs (2) _____ Internet access _____ _____Buyer’s guide _____Working telephone listed in business or d/b/a name _____Copy properly assigned title, front and back _____Salvage vehicles marked with sign, if licensed salvage dealer _____130-U Application for TX Certificate of Title _____Display area illuminated if open after sundown _____VTR-136 County of Issuance form _____Dealer business sign conspicuously displayed _____Odometer statement (if applicable) _____Dealer license conspicuously displayed _____Copy of vehicle purchaser’s personal identification _____VTR-500 (white slip – proof of registration) _____Buyer tag receipt with customer signature In Conjunction With Other Businesses MISCELLANEOUS _____2 or more dealers: inventory not intermingled _____Vehicles display buyer’s guides or Monroney sticker _____No mix of retail & wholesale in same structure if original _____OCCC license, if dealer finances GDN issued after 9/1/1999 _____Emissions and safety inspection sheet (when required) _____5 display spaces, separated by object or barricaded (not _____Export sales conducted properly readily movable) from other businesses’ parking area _____Proof of extended warranty service provider registration _____Vehicle display area in compliance with rules _____Lemon Law poster properly displayed (franchised dealers) _____Permanent sign for each dealer with name and separate _____VIT statements and receipts telephone listing for each dealer _____Export stamp available

COMPLIANCE INSPECTION NOTATIONS

______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________ Investigator,

Enforcement Division Revised October, 2013

December 2013

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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 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 14

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

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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 December 2013

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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

15


feature Maximum Finance Charge Rates for 2014 by Michael W. Dunagan TIADA General Counse

Dealer Question: What is

the maximum finance charge rate I can use on a motor vehicle retail installment contract? Answer: Dealers who hold vehicle finance licenses issued by the Office of Consumer Credit Commissioner (OCCC) are authorized to finance the sale of vehicles, and are allowed to add finance charge or time-price-differential to the amount financed (while the term “interest” is commonly used interchangeably with finance charge and time-pricedifferential, “interest” actually is the amount charged on a loan of money, and should not technically be used in the context of financing the sale of a motor vehicle).

T

he legislature has established a sliding scale of maximum rates, with higher rates allowed on older cars. The maximum rate that sellers of older vehicles can add to the amount financed is $15 per $100 per annum or, stated another way, 15 per cent add on. Depending on such variables as the length of the repayment period, the amount of each payment, and the frequency of payment (weekly, biweekly, semi-monthly or monthly),

the annual percentage rate on 15 per cent add on can exceed 26 per cent. Chapter 348 of the Finance Code allows sellers of vehicles to finance any unpaid balance at rates that generally exceed the rates of interest that can be legally charged by banks and traditional lenders. For purposes of setting maximum rates of finance charge, Chapter 348 establishes four classes of vehicles based of the vehicle’s model year. The attached chart shows allowable rates for calendar year 2014. These rates are valid on sales that take place between January 1, 2014, and December 31, 2014. The maximum rates “roll over” on January 1 of each year. The maximum rates of finance charges are stated in the Finance Code as “add-on” rates. For example, for vehicles that fall into the class-four category, sellers can charge fifteen dollars per one hundred dollars financed per annum. (“Add-on” should not be confused with “annual percentage rate” which

The maximum rates of finance charges are stated in the Finance Code as “add-on” rates. For example, for vehicles that fall into the classfour category, sellers can charge fifteen dollars per one hundred dollars financed per annum. is the rate required to be disclosed by federal law.) These are maximum rates, and any rate lower than the maximum can be charged. All financing sellers, with a few exceptions, are required by federal law to disclose the rate of finance charge as an annual percentage rate, or APR, on their contracts. Since Texas law sets maximum rates as add-on rates, it is necessary to first calculate the amount of finance charge the creditor

Maximum Finance Charge Rates for Calendar Year 2014 Class One Two Three Four

Year Models

2015 and 2014 new Any new note appearing in Class One above; 2014, 2013 and 2012 used 2011 and 2010 2009 and older

Max. Rate

Alternate Rate

12.5 per cent add on 15 per cent add on

18 per cent APR 18 per cent APR

7.5 per cent add on 10 per cent add on

18 per cent APR 18 per cent APR

(cont’d on pg. 18) 16

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Maximum Finance Charge Rates for 2014 (cont’d from pg. 16)

wishes to assess within the legal limit, then determine the APR for disclosure purposes. Federal Truth-In-Lending requires that any finance charge rate be advertised or expressed to a consumer as an APR. It is thus improper to advertise or discuss add-on rates with customers. The process of calculating the APR on contracts that provide for payments other than equal monthly payments is extremely difficult. Most creditors rely on specialized software to perform this function. (For a list of reviewed programs, see the OCCC website at http://www.occc.state.tx.us/). Without appropriate software, it is virtually impossible for a creditor who collects weekly, bi-weekly, or semimonthly payments to accurately calculate an APR and other required disclosures. Dealers should not guess at or estimate an APR as incorrect disclosures are the basis for claims for statutory damages and attorneys fees. Note that the chart also includes a column for what is referred to as an “Alternate Rate.” This rate is 18 per cent APR for all four classes. Many dealers have questioned what the alternate rate is, and how it affects the rates they can charge. The alternate rate is an optional rate. A dealer has the option to use either the standard or alternate rate. As an example, a dealer financing the sale of a 2008 model- year

vehicle can charge up to 15 per cent add-on (since this year model falls into Class Four) or the alternative rate of 18 per cent APR. Since the 15 per cent add-on rate translates to over 26 per cent APR on a typical weekly payment contract, a higher legal return can be achieved using the standard rate than the alternative rate. On the other hand, the sale of a class-two vehicle would be subject to a 10 per cent add-on maximum. Since the actual yield on 10 per cent add-on would be lower than 18 per cent, the alternative rate would allow the seller a higher legal return. Remember that the so-called “add-on rate,” which is the rate used to calculate the finance charge added to a contract, can’t be used on the contract documents or in any communication with consumers. In order that credit consumers can shop rates on an “apples to apples” basis, federal law requires all discussions about rates to refer to the chosen universal rate, or the APR. It would be improper to have an add-on rate appear anywhere on a contract. Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 35 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.


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feature OCCC Regulatory Activities Report by Rudy Aguilar

Director of Consumer Protection, OCCC

T

he Office of Consumer Credit Commissioner closed its fiscal year 2013 regulatory activities on August 31, 2013. Fiscal year-end results showed an improvement in the compliance level of the motor vehicle sales finance industry from previous years. During fiscal year 2013, the agency conducted 1,380 motor vehicle sales finance examinations, of which 70.36% demonstrated an acceptable level of compliance. Of the 1,518 examinations conducted in the previous year, 69.90% demonstrated an acceptable level of compliance. The chart to the right (Figure 1) shows the quarterly examination results in the 2013 fiscal year, which displays the compliance improvement. Agency staff members made 14 presentations to the motor vehicle sales finance industry in this past fiscal year and have provided ongoing examiner training in motor vehicle sales finance regulation to increase the knowledge and effectiveness of our examination team.

The agency is committed to providing learning situations for licensees during the examination process when appropriate. I believe these factors combined have contributed to the improved compliance level of this industry. Although the compliance levels for motor vehicles sales financing are increasing, some significant issues are still prevalent in motor vehicle sales finance examinations.

Figure 2: The trade-in equity form December 2013

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Figure 1.

Documentary Fee

Examiners continue to find that dealers have not met all the filing requirements to increase documentary fees, whether the increase is an initial increase in excess of $50 or is an additional increase since the initial filing. Dealers have provided restitution to retail buyers or paid administrative fees for failing to make the proper filing with the OCCC to increase the documentary fee. In some instances, dealers have provided the restitution and paid administrative penalties for failing to make the proper filings with the OCCC. Dealers licensed by the OCCC are permitted to charge documentary fees in excess of $50 only if the dealer: (1) provides written notice (thru the prescribed electronic system) to the OCCC of the maximum amount of the documentary fee intended to be charged; (2) uses a compliant buyer’s order/purchase order and retail installment contract that includes the new documentary fee notice; and (3) posts the prescribed documentary fee statement in each place where a vehicle sale is finalized so that it is clearly visible to the retail buyer. 21


Documentary fees at or below $125 are considered reasonable by rule, after written notice has been provided. The agency will request additional financial information from a dealer to determine reasonableness for documentary fees above $125.

Posting Of The Documentary Fee Notice

For a documentary fee to be included in the principal balance of a retail installment contract, requisite posting requirements must be fulfilled. The dealer must post the prescribed documentary fee notice and ensure that it is clearly visible to consumers in the place where vehicle sales are finalized. The correct wording for the documentary fee notice is found in the Texas Finance Code §.006 (c)(3)(B) and reads as follows: “A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW.”

A dealer should cease the assessment of the documentary fee if the proper documentary fee notice is not posted. Examiners continue to find that the above required compliant documentary fee notice is not posted at all or is not posted in the proper place where vehicle sales are finalized. A dealer should cease the assessment of the documentary fee if the proper documentary fee notice is not posted.

Disclosure Of Equity In Retail Buyer’s Trade-In Motor Vehicle

Examiners have found that dealers are not complying with providing the disclosure of equity to a retail buyer when a trade-in motor vehicle is accepted under a retail installment contract. A dealer (retail seller) must provide a standard form for the disclosure of equity to the retail buyer before accepting a trade-in motor vehicle for an ordinary motor vehicle sold under a retail installment sales contract (§348.0091, Texas Finance Code). The disclosure of equity form must be maintained in the retail installment transaction file of the customer. The form is not required for transactions where a single cash payment is made for the sale of the motor vehicle. The trade-in equity form has a specific purpose and required elements as prescribed in the Texas Administrative Code, and must fit on one standard-size 8 ½ X 11 sheet of paper as shown on the previous page (Figure 2).

Final Thoughts

As a dealer and a licensee, you are responsible for periodically reviewing your procedures and records to ensure that they are current and compliant with existing regulations. These proactive measures can limit your risk and exposure to private remedies from threatened litigation and may reduce the use of significant resources and monies to address examination or investigation issues. 

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board of directors meeting minutes October 21, 2013 | Crowne Plaza, Austin, TX

compiled by Texas Dealer staff

At its meeting held on Monday, October 21, 2013 TIADA heard reports and took the following actions:

TIADA will be the headlining sponsor of the Tax Assessor-Collector Conference in November.

President Michael Thomasson called the meeting to order at 12:59p.m.

Deputy Director Danny Langfield presented an overview of the 5-year strategic plan and provided an update on the progress of the supporting goals.

Minutes Of Last Meeting

Secretary HL Hensley presented the minutes of the last Board of Directors meeting. A motion was made to accept the minutes. Moved by Kathrine Tolsch, seconded by James Hobson – Passed

Treasurer’s Report

Treasurer Kathrine Tolsch presented the Treasurer’s report. A motion was made to accept the Treasurer’s report. Moved by Brent Rhodes, seconded by HL Hensley – Passed

President’s Report

Michael Thomasson presented the president’s report, where he: shared his recommendations for committee appointments provided an update on the activities of the Community Auto Finance Association asked Trey Crouch to provide an update on the OCCC IT Select Stakeholder Work Group of which Trey is a member mentioned that he and Jeff Martin will be attending the NIADA leadership conference in Washington DC in November briefed the board on his attendance at a recent outing with Rep. Joe Strauss appointed Kathrine Tolsch to the facility committee reviewed plans for the new building renovation

Executive Director’s Report

Jeff Martin presented the Executive Director’s report. The BOD was briefed on meetings with Rep. ChenButton and Chairman Oliveira. Top legislative issues and the upcoming governor’s race were discussed. 24

Jeff Martin provided an overview of conference attendance history as well as plans for the 2014 event. The board discussed the upcoming Fitness and Felony Rule proposals to be considered by the TxDMV licensing advisory committee; President-elect Brent Rhodes is a member. Kathrine Tolsch presented the FY14 TIADA budget.

Old Business None

New Business

A motion was made to accept the committee appointments. Moved by Brent Rhodes, seconded by HL Hensley – Passed Michael Thomasson appointed an ad hoc committee (James Hobson- chair, Byron Riley, Kathrine Tolsch, HL Hensley) to make recommendations regarding Fitness and Felony Rules. A motion was made to adjourn the meeting. Moved by Kathrine Tolsch, seconded by Brent Rhodes – Passed Meeting adjourned at 5:34p.m. Respectfully submitted, HL Hensley, Secretary A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request. T e x a s

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regulation matters Flapping Temp Tags & Storage Lots

by Danny

L

aw enforcement has so much to worry about, what with the murderers, thieves and various felons they are obligated to capture, that improperly mounted temp tags would seem likely to go largely unnoticed. And they usually do — but not always. Like all of you, I see vehicles with temp tags flapping in the wind on the highways pretty regularly. Then, several weeks ago, I got a call from a dealer who wanted to know if he had any liability regarding the proper display of a temp tag. It seemed his customer had been stopped and cited for a flapping tag that the officer could not read. After checking the relevant statute and code, it would appear that the dealer might indeed bear some responsibility. The Transportation Code excerpted below clearly states that the dealer is the one responsible for displaying the tag. Transportation Code Sec. 503.063. BUYER’S TEMPORARY TAGS. (a) Except as provided by this section, a dealer shall issue to a person who buys a vehicle one temporary buyer’s tag for the vehicle. (b) Except as provided by this section, the buyer’s tag is valid for the operation of the vehicle until the earlier of: (1) the date on which the vehicle is registered; or (2) the 60th day after the date of purchase. (c) The dealer: (1) must show in ink on the buyer’s tag the actual date of sale and any other required information; and (2) is responsible for displaying the tag.

When taken in conjunction with the section of the Admin Code below which states that the tag must be secured so that the entire tag is visible, it would appear that it is indeed the dealer’s job to make sure the temp tags are not flapping in the wind. Texas Administrative Code TITLE 43 TRANSPORTATION PART 10 TEXAS DEPARTMENT OF MOTOR VEHICLES CHAPTER 215 MOTOR VEHICLE DISTRIBUTION SUBCHAPTER E GENERAL DISTINGUISHING NUMBERS RULE §215.151 Temporary Tags, General Use Requirements, and Prohibitions December 2013

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Langfield

TIADA DEPUTY DIRECTOR

(a) A  ll temporary tags shall be displayed in the rear license plate display area of the vehicle. The tag must be secured to the vehicle so that the entire tag is visible and legible.

So if you are just using two screws at the top of the plate holder, you may want to consider something a bit more secure so your customer does not attract unwanted attention from the authorities.

Storage Lots

As the industry stocks up on inventory for the upcoming tax season, some questions have been raised about the rules surrounding storage lots. A dealer is allowed to have a non-contiguous (that is, separate from their licensed location) storage lot, provided that no sales activity occurs there and there is no public access. A dealer is permitted to post a sign with the dealership name and phone number. According to TxDMV enforcement, the storage lot may be in a different city than the licensed location. So, what does, “no sales activity” mean? It means, among other things, that you may not show a vehicle to a customer at the storage lot. The proper procedure would be to bring the vehicle to the dealership and allow the customer to inspect it there. And what is meant by “no public access?” The agency has indicated that some kind of fence and appropriate signage would be sufficient. The idea is to prevent people from believing the storage lot is a sales or viewing location.  What about a scenario where a dealer does a short-term lease for some land where he can park his excess inventory for a few months during tax season? In this scenario, it may not be practical for the dealer to invest in any sort of fencing (or if they are leasing the space, the owner may not allow it). In such a case the agency says that, under a temporary scenario, a fence would not neccessarily be required. Some simple signage indicating no public access should suffice. Best wishes for a great holiday and a big tax season in 2014. 25


feature Texas Comptroller Audits Provided by Texas Comptroller of Public Accounts Staff

T

he Texas Comptroller of Public Accounts serves as the state’s chief financial officer, responsible for writing the checks, paying the bills and keeping the books for the multibillion dollar business of Texas state government. One of the duties of the office is auditing businesses to ensure tax collection and reporting requirements are being carried out properly. Texas law authorizes the Comptroller’s office to examine the books and records of a business to determine if the correct tax was paid to their office. The majority of audits are routine. Occasionally, an audit may be generated from leads supplied by customers, competitors or others. Regardless of the reason, the auditor is there to determine whether a business is compliant with Texas tax laws and to ensure that the correct tax has been paid. To perform an audit, the auditor must examine a taxpayer’s records. All sales and supporting records of a seller are open to inspection and audit by the Comptroller. Sellers of motor vehicles, whether seller-financed or outright sales, are required to keep detailed records of each sale at the seller’s principal office for at least four years. However, when a refund claim or administrative or judicial proceeding is pending, the seller is required to retain its records for more than four years.

The Tax Code is very specific as to what records must be retained. They include: a copy of the invoice for each vehicle sold, indicating the full sales price and itemizing the price of all accessories; the total receipts from all sources of income and expense; when full payment is made at time of sale, documentation of complete payment (copy of payment instrument or receipt for cash) ; a copy of the receipt for title application, registration and motor vehicle tax issued by the county tax assessorcollector; and resale certificates (Form 14-313, Texas Motor Vehicle Sales Tax Resale Certificate) for any sales for resale.

Dealers making seller-financed sales must retain additional documentation, including a ledger or other document containing:

a complete record of the payment history for a motor vehicle; the name and address of the purchaser; the total consideration paid; the amount of down payment received when the vehicle is sold; the date and amount of each subsequent payment; the date of sale; and the date of any repossession.

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Please note that a dealer making seller-financed sales must hold a Motor Vehicle Seller-Financed Sales Tax Permit issued by the Comptroller and remit the tax imposed on seller-financed sales directly to the Comptroller, based on the seller’s receipts from those sales. If a taxpayer’s records are incomplete or inadequate, so that a competent audit for the period is not otherwise possible, the Comptroller may use sampling auditing methods to project the audit assessment. Further, if the taxpayer’s records do not accurately reflect its business operations, the Comptroller must determine the best evidence available and base the audit report on that information. An audit will normally cover the most recent four-year period; however, tax may be assessed for any period if a taxpayer files a false or fraudulent report with the intent to evade the tax, information contained in a return contains a gross error, or no return is filed.

Errors commonly encountered during audits of used car dealers include:

incomplete records to support the source of sales revenue (auction sales, dealer to dealer, seller-financed, or cash sales); incomplete records to substantiate amounts deposited in bank accounts (vehicles sales, loans, or other sources); lack of documentation to support the existence and value of trade-in vehicles; and vehicles that are not titled/registered timely. Dealers, especially dealers financing their own sales, should pay special attention to the following situations, to avoid common errors that can lead to incorrect collection of tax: Tax accelerates if a note is sold, factored or transferred to anyone other than a related finance company. Tax also accelerates on seller-financed sales if title is not transferred within 60 days of sale, regardless of the reason (remember title transfer on seller-finance sales is due within 45 days to avoid title/registration penalty). The failure of a previous lienholder to provide title does not delay tax acceleration. Tax on cash or third party finance sales remains due within 30 days and is payable to the County Tax AssessorCollector. Again, the failure of a previous lender does not delay penalty being imposed. For more detailed information about some of the requirements noted in this article, see Texas Tax Code Sections 111.0041, 111.0042, 152.047, 152.063 and 152.0635. The Tax Code, related rules and publications are online at http://window.state.tx.us/taxes/index.html. Our publication, Notice of Routine Audit, which can be found at http://www.window.state. tx.us/taxinfo/taxpubs/tx96_146.pdf, may also be helpful. T e x a s

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Please Welcome Our Newest TIADA Members DEALER MEMBERS All Auto Sales Cal Allen 3501 Hwy 36 South Brenham, TX 77833 AMPM Auto Haus, Inc Asghar Mohebpour 11527 Jones Rd Houston, TX 77070 Any Cars Carlos Galeano 5959 W. Jefferson Dallas, TX 75211 Apple Leasing Scott Crossett 12205 Hunters Chase Austin, TX 78729 Auto Luxury Motors Inc Generoso Medina 2233 E. Grauwyler Rd, Ste 124 Irving, TX 75061 Auto Mech Space Johan Borg 404 E 3rd Street Taylor, TX 76574 Autoplex USA Todd Saedi 4515 Hwy 6 N Houston, TX 77084 Babalu Auto Finance Eddie Gole 733 Little York Rd Houston, TX 77076

Corpus Christi Automax Freddie Gonzalez 2202 Gollinar Corpus Christi, TX 78415

Lumberton Auto World, LLC Kim Coutee 3123 Hwy 69 South Lumberton, TX 77657

Trophy Auto Sales Cllint Woody 22209 I-20 Wills Point, TX 75169

Corsicana Eagle Auto Sales Eddie Abel 311 South 9th st Corsicana, TX 75110

Nation Auto Finance GM Soudjani 14217 Main St Houston, TX 77035

Twin City Motors Sam Alnonbani 9410 Ronda Lane Houston, TX 77074

Credit America Auto Finance Jamal Alshaikh 805 New Boston Texarkana, TX 75501

Park and Sell Autoplex.com Brahim Haljiti 6515 Louetta Road Spring, TX 77379

United Motor Imports Sid Farzampour 5611 Evers Road San Antonio, TX 78238

Credit Auto Sales Inc Mike Laney 1808 South Haskell Ave. Dallas, TX 75223

Penske Truck Sales Nick Kamarinos 21021 Springbrook Plaza Dr, Suite 200 Spring, TX 77379

Universal Motor Co. Arthur Maruri 1918B Veterans Blvd Del Rio, TX 78840

El Paso Auto Sales Carmen Flores-Griffin 6917 Katherine Court Fort Worth, TX 76118 Fernando’s Auto Sales LLC Fernando Trevi√±o 3932 W. Davis Street Dallas, TX 75211 Fiesta Credit Saeed Nasseri 3133 Chimney Rock Rd Houston, TX 77056 Fischbone Motors Randi Squier 14814 Venture Dr. Farmers Branch, TX 75234

Premier Texas Autos Cole Ivey 14822 Venture Dr Farmers Branch, TX 75234 Ramos Auto Express Generoso Medina 3717 W. Northgate Dr, Apt 914 Irving, TX 75062 Satander Auto Group Manuel Recaman 1844 Amber Lane Carrollton, TX 75007 Shak’s Auto Sales Khaled Obaid 801 NW 28th Street Fort Worth, TX 76164

Grubbs Family Motors Jonathan Grubbs 1716 E. Abrams St, Suite 200 Arlington, TX 76010

SL Auto Sohrab Ahmadi 5010 Pinemont Houston, TX 77092

Hever’s Auto Sales Allan Francis 1818 Tomlinson Trail Dr Houston, TX 77067

Southwest Enterprise Ehsan Abedian 7632 Longpoint Rd Houston, TX 77055

Houston Auto Credit Amir Kasbidi 3221 Jeanetta St Houston, TX 77063

Success Auto Debra Guillory 16258 Mission Glen Houston, TX 77083

Houston Auto Finance Mustafa Ahmadi 1025 N Loop Houston, TX 77022

Taylor Trading Co, LLC Bill Taylor 4125 College St Beaumont, TX 77707

Carrollton Autos Yvonne Cardenas 1924 Old Denton Road, #101 Carrollton, TX 75006

J & O Automotive, LLC Oscar Acevedo 2120 56th Street Lubbock, TX 79412

Texas Best Pre-owned Jamie Wilson 15672 State Highway 205 Terrell, TX 75160

Certified Carland, LLC Saleem Khan 4233 Forest lane Garland, TX 75042

KKS Auto Sales Shapour Babaahmadi 9545A Hwy 6 South, Suite A Houston, TX 77083

Texas Carplex LLC Kevin Godsey 4350 Naco Pass San Antonio, TX 78217

Cooley Enterprises, Inc Larry Hackett 1251 E. Airport Freeway Irving, TX 75062

Lico’s Auto Sales Federico Espinoza 866 Ceniza Drive Eagle Pass, TX 78852

Texas Superauto LLC Eduardo Correa 1950 Lexington Woods Spring, TX 77373

Blue Chip Motors, LLC Robert Blue 10542 Manchaca Rd Austin, TX 78748 Buttross Motors David Buttross PO Box 5396 Austin, TX 78763 CAR BIZ Scott Rollston 3803 San Pedro San Antonio, TX 78212 CarMar Auto Sale Martin Guillen 4823 Rittaman Road, Suite 2 San Antonio, TX 78218

December 2013

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Veloz Movil Srl Generoso Medina 3717 W. Northgate, Apt 914 Irving, TX 75062 Auto Mall 59- Houston Ali Harandi P.O. Box 630042 Houston, TX 77074 Commercial Finance Houman Gandomkar 13506 Sunswept Way Houston, TX 77082 Texas Capital Auto Credit Ali Harandi 9545 Hwy 6 S, Suite A Houston, TX 77083

ASSOCIATE MEMBERS Bestway Dealer Services Jesse James 2346 Belt Line Rd #450848 Garland, TX 75044 Bush & Ramirez PLLC Ed Walton 101 Metro Dr. Terrell, TX 75160 Challenge Financial Services Jayne Werkmeister 1004 W. Taft Ave., Suite 100 Orange , CA 92865 KeyRoyal Steven Burns 8150 North Central Expy., Ste M-2060 Dallas, TX 75206 Manheim Houston Rich Curtis 14450 West Road Houston, TX 77041 REPAY: Realtime Electronic Payments William Brakebill 3 West Paces Ferry Rd, Suite 200 Atlanta, GA 30305 29


Special Thanks to our 2013 INDEPAC Contributors (as of November 30, 2013)

Robert Blankenship Mike Carlson Roy Carlson Herb Cowan Brad Davis Randy Hilliard Blake Ingram Kenny Allison Jeff Atchison Paul Barnes Floyd Browning, Jr. Joe Chick Jerry Baker Mark Bearden Jody Bettis James Campbell James Ashby Carolyn Brown Victor Caldwell Butch Cornelius Eugene Dietert Larry Dzuik Yitshak Eini Eddie Grantham

$1000+

$999–$500

$499–$250

$249+

Greg Reine Brent Rhodes Shane Rhodes Gary Sayre Paul Scott Michael Thomasson

George Dodd Keith Hagler Jeff Martin Wayne Meagher

Henry Joe Drapela Jeffery Johnson John M. Minter

Randy Hall Carleton Heller Marlin Jentsch Loy E. Moore Alton Poole Byron Riley John Tinsley

Our final list of INDEPAC contributors will run in the January issue of Texas Dealer. Make your contribution today and support your association! INDEPAC contributions may be sent to INDEPAC c/o TIADA PO Box 127 Round Rock, TX 78680 (Personal contributions only – corporate funds cannot be accepted) 30

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AT E D C O L L E C T I O N TECHNOLOGY

fines& violations

FINAL ORDERS for July 2013 and September 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.

13-0765 ENF

13-0784 ENF

July 2013

Dora L. Luna, DBA Luna’s 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.

13-0766 ENF

Esteve Banda DBA Los Mavs 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.

13-0768 ENF

Carizma Motors LLC, DBA Carizma Motors Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-0771 ENF

East Houston Corp., DBA SR Auto Sales Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-0773 ENF

Seven Meadows Auto Group LLC DBA Texas Auto Pros Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-0776 ENF

West Oaks Auto Plaza Inc. DBA West Oaks Auto Plaza Inc. Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-0777 ENF

Donny Veliz, DBA Sportline 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. $150.00.

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

Gloria Trevino, DBA Yeye 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. $150.00.

13-0786 ENF

Auto Avenue Inc., DBA Auto Avenue Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-0794 ENF

Oscar Garza DBA Autos Maral, Texas 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. $150.00.

13-0795 ENF

Claudia Zavala De Gracia DBA Lucky McQueen 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. $150.00.

13-0806 ENF

Interstate Remarketing Inc. DBA Interstate Remarketing Inc. 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). Failure to meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). $250.00.

13-0807 ENF

USA Global Brand Inc. DBA Pan 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. $150.00.

13-0841 ENF

Fernando Coronado, Francisca Coronado DBA Zamora 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. $150.00.

13-0842 ENF

Victor M. Alvarez DBA Millenium Auto Plex Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-0843 ENF

Jesus Garza Espino, Victoria Gonzalez Espino, DBA JJL Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). $200.00.

13-0857 ENF

Speed Motor Inc., DBA Speed Motor Inc. 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. $200.00.

13-0869 ENF

William Jeffrey Word Jr., DBA Words Auto Co. Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-0875 ENF

Juan Hernandez, DBA Chava’s Auto Sales #2 & Used Auto Parts & Glass Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Misuse of metal plates: 43 TAC 215.138. $200.00.

13-0915 ENF

Karina Maldonado Camargo DBA Camargo Motors

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fines& violations 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.

13-0917 ENF

Austin Auto Web LLC DBA Austin Auto Web LLC 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. $150.00.

13-0939 ENF

Aspire Automotive Inc. DBA Aspire Automotive Inc. 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.

13-0942 ENF

Amadeo Serna Jr., DBA Genesis Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-0943 ENF

Victoria Motors Inc., DBA Victory KIA Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-0945 ENF

Andrews Radiator, Air & Sound Inc. DBA Simmons 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. $150.00.

13-0946 ENF

Brannon Motors, Inc., DBA Brannon Motors Inc. Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-0948 ENF

N.L. Wilk, LLC DBA Wilkinson Pre-Owned Supercenter Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-0949 ENF

Tim Holyfield, DBA Best Chance Auto Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Misuse of temporary dealer tag(s): Transp Code 503.038(a)(12):43 TAC 215.141(a)(10) $200.00. September 2013

10-1247 ENF

Texan Clear Choice Auto, LLC DBA Texan Clear Choice Auto, LLC Failure to allow purchaser to select county for registration: Transp Code .0234(d),(e). $500.00.

11-0172 ENF

Cartac Inc., DBA Cartac Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to answer the telephone, have it answered by 32

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). Attend a Dealer Training Seminar.

11-0260 ENF

R & D Motors Inc., DBA R & D Motors Inc. Failure to timely pay lien on a motor vehicle traded in: Finance Code 348.408(c), Occ Code 2301.651(a)(4). 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.

11-0409 ENF

Global Motorcars of Houston LLC DBA Global Motorcars of Houston LLC 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 and attend a Dealer Training Seminar.

11-0445 ENF

Hyatt Imports, Inc., DBA Hyatt Imports, Inc. 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). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,250.00.

11-0737 ENF

Gregoria Garcia, DBA Gollo Auto Sales 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.

11-0913 ENF

Golden Gator, Inc., DBA Action Auto Recycling 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 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 maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Attend a Dealer Training Seminar.

11-0959 ENF

Greg Tupper, DBA G T Investments 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.

12-0070 ENF

Joseph Dib, DBA JD Motors Failure to comply with a Final Order: Occ Code 2301.651(a)(3). $250.00 and attend a Dealer Training Seminar.

12-0112 ENF

Abir Nasreddine, DBA Last Chance Auto Sales 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. Sold a motor vehicle without certificate of title

or title receipt: Transp Code 501.152. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $5,000.00.

12-0305 ENF

Hanan Tuchshnieder, DBA Auto Spot Advertised a monthly payment in connection with a credit transaction without including the amount or percentage of the down payment, number of months to make repayment and annual percentage rate (APR): 43 TAC 215.263. $2,000.00.

12-0324 ENF

Garry Lee Welborn, DBA Nationwide Import Cars Failure to comply with a Final Order: Occ Code 2301.651(a)(3). $500.00 and attend a Dealer Training Seminar.

12-0829 ENF

Prestige Ford Co Limited Partnership DBA Randall Reed’s Planet Ford Sold or offered to sell motor vehicles on consecutive Saturday and Sunday: Transp Code 728.002. $250.00.

12-1041 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).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 and attend a Dealer Training Seminar.

12-1115 ENF

Maxwell Ford, Inc., DBA Maxwell Ford, Maxwell Ford Supercenter 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.

12-1273 ENF

Sherrard Auto Sales, Inc. DBA Sherrard Auto Sales Failure to comply with a Final Order: Occ Code 2301.651(a)(3). Cease and desist.

12-1347 ENF

Jose Alfredo Perez Jr, / Hector Herrera DBA Expo Auto 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). $500.00.

12-1442 ENF

Shafaamri Inc., DBA Texas Import Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 T e x a s

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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 and attend a Dealer Training Seminar.

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. Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00 and attend a Dealer Training Seminar.

dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to timely transfer title to out of state purchaser: 43 TAC 215.144(f). $500.00 and attend a Dealer Training Seminar.

12-1447 ENF

13-0344 ENF

Drive Now Cars, LLC, DBA Drive Now Cars, LLC 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). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00.

S-Banna Investment Group, Inc. DBA Car Values Aided and abetted the unlicensed sale of a motor vehicle: Occ Code 2301.351. 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). Filed a false title and tax document: Transp Code 503.038(a)(2). $2,000.00 and attend a Dealer Training Seminar.

12-1499 ENF

Ornelas Transport LLC, DBA Ornelas Auto Sales 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 take assignment of title or MCO: Transp Code 503.038(a) (3) and 43 TAC 215.141(a)(13). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. License is cancelled.

12-1708 ENF

Jon Wesley Hester, DBA J & G Freedom Motors Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). $250.00 and attend a Dealer Training Seminar.

13-0080 ENF

Oscar M. Perez, DBA Rosy’s Auto Sale Aided and abetted the unlicensed sale of a motor vehicle: Occ Code 2301.351. 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. $750.00 and attend a Dealer Training Seminar.

13-0110 ENF

Best Drive Auto, Inc., DBA Best Drive Auto 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. $3,000.00 and attend a Dealer Training Seminar.

13-0301 ENF

Carmen Lopez, DBA Car Finders Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $1,000.00 and attend a Dealer Training Seminar.

13-0319 ENF

Sena Saburi, DBA Republic Auto of Texas 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 December 2013

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Manuela Cantu, DBA Toby 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 timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar.

13-0358 ENF

Leon Vardell Madding, DBA Go Time Auto Sales Failure to maintain complete records by licensed

13-0382 ENF

13-0387 ENF

Juan F. Garza, DBA Garza’s Auto Sales Failure to notify of change of address or telephone number: 43 TAC 215.141(a)(6). Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00 and attend a Dealer Training Seminar.

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fines& violations 13-0432 ENF

Albert Chitanda, DBA S & C Auto Sales 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 and attend a Dealer Training Seminar.

13-0490 ENF

Tmcervantes Enterprises, LLC DBA Moreno and Sons Auto Sales Filed a false title and tax document: Transp Code 503.038(a)(2). 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. License is revoked - oppose new or renewal for two years.

13-0505 ENF

David G. Davis, DBA Davis Auto Sales 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. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00 and attend a Dealer Training Seminar.

13-0534 ENF

AMPM Auto Haus, Inc. DBA AMPM Auto Haus, Inc. Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). 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.

13-0677 ENF

Ihab Mohammed Munier Shrideh DBA Texas Advanced Motors 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 take assignment of title or MCO: Transp Code 503.038(a)(3) and 43 TAC 215.141(a)(13). $500.00 and attend a Dealer Training Seminar.

13-0682 ENF

Efrain Orozco, DBA Orozco Auto Sales Misuse of dealer’s metal plate: Transp Code 503.038(a)(5) and 43 TAC 215.141(a)(10). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Sold or offered to sell salvage vehicles without the proper license: 43 TAC 217.72(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $2,000.00 and attend a Dealer Training Seminar.

13-0688 ENF

Clear Lake Auto World Inc. DBA Clear Lake Auto World, Inc. 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. 34

13-0704 ENF

General Motors LLC, DBA General Motors LLC Participated in a new motor vehicle show without obtaining written approval in a timely manner: Occ Code 2301.358. $5,000.00.

13-0730 ENF

Lisa L. Scott, DBA Pal’s Auto Center Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $250.00 and attend a Dealer Training Seminar.

13-0731 ENF

GPI TX-SBII, Inc. DBA BMW of El Paso, Mini of El Paso 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.

13-0732 ENF

Lithia DMID, Inc., DBA All American Chrysler Jeep Dodge of Midland Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00 and attend a Dealer Training Seminar.

13-0734 ENF

Daniel Garcia, DBA Genesis Auto Sales 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 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. $1,500.00.

13-0772 ENF

Tury’s Auto Sales, Inc. Aided and abetted the unlicensed sale of a motor vehicle by allowing the use of its GDN number: Occ Code 2301.351. 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 notify of change of address or telephone number: 43 TAC 215.141(a)(6). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to make dealership records available for inspection: 43 TAC 215.144(a) and 43 TAC 215.141(a)(3). 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. $5,000.00 and attend a Dealer Training Seminar.

13-0783 ENF

Trevino’s Auto Sales, Inc., DBA Mr B Motor Co. 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.

13-0791 ENF

Texas La Fiesta Auto Sales LLC DBA La Fiesta Auto Sales

Advertised the amount of down payment in connection with a credit transaction without including the terms of repayment: 43 TAC 215.263. $2,000.00.

13-0796 ENF

Brew Pontiac, Inc., DBA Brew Pontiac-Honda, Fenton Honda of Longview 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. $3,000.00 and attend a Dealer Training Seminar.

13-0859 ENF

Ryan Thomas McKesson DBA North Texas Autosports Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). 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). $500.00.

13-0891 ENF

John Porter, DBA J P Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). 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). Attend a Dealer Training Seminar.

13-0892 ENF

Lithia CJDSA, Inc., DBA All American Chrysler Jeep Dodge of San Angelo 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.

13-0895 ENF

Phillip Hull, DBA Phil’s Auto Sales 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). Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00 and attend a Dealer Training Seminar.

13-0896 ENF

Superior Auto Brokers, LLC. DBA Superior Auto Brokers, LLC 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. Cease and desist.

13-0897 ENF

Hannon, Inc., DBA Auto Plaza Advertised a monthly payment in connection with a credit transaction without including the amount or percentage of the down payment, number of months to make repayment and annual percentage rate (APR): 43 TAC 215.263. $1,000.00 and attend a Dealer Training Seminar.

13-0898 ENF

Auto Xtreme, Inc., DBA Auto Xtreme, Inc. Advertised a monthly payment in connection with a credit transaction without including the amount or percentage of the down payment, number of months to make repayment T e x a s

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December 2013


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fines& violations

13-0979 ENF

and annual percentage rate (APR): 43 TAC 215.263. Advertised “Everyone is Approved”, thereby representing that no prospective credit purchaser will be rejected: 43 TAC 215.247(2). $1,000.00 and attend a Dealer Training Seminar.

13-0899 ENF

Daniel Bazaldua, DBA Lone Star Auto 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. $500.00.

13-0902 ENF

Lonnie Matthews, Jr., DBA L & A Auto Sales Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar.

13-0907 ENF

Sherman PI LLC, DBA Pers Auto 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). Filed a false title and tax document: 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.

13-0910 ENF

Kelley’s Used Auto Parts Inc. DBA Kelley’s Used Auto Parts Inc., 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 maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $500.00 and attend a Dealer Training Seminar.

13-0940 ENF

Xevex, LLC DBA Xevex Auto Sales 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

13-0953 ENF

Samuel Smith & Associates DBA Specialist Motor Sales.com Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00 and attend a Dealer Training Seminar. December 2013

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Emerio Roche, DBA Roche Auto Sales 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. 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). $2,000.00.

13-0981 ENF

Ed Payne Motors LLP Filed a false title and tax document: Transp Code 503.038(a)(2). 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. 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.

13-0988 ENF

license: 43 TAC 215.140(14). 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). Attend a Dealer Training Seminar.

13-1007 ENF

W & A Used Auto Parts, DBA W & A Used Auto Parts (Salvage #108236077). Failure to keep accurate records by a salvage dealer: Occ Code 2302, 43 TAC 217.80(a), constituting grounds for sanctions under Occ Code 2302.108 and 2302.354 and 43 TAC 217.81(b)(2) and 217.81(c). Respondent allowed the use of its license for the purpose of avoiding salvage dealer laws: 43 TAC 217.81(b)(11), Occ Code 2302.108 and 2302.354 and 43 TAC 217.81(c). Cease and desist as salvage dealer and oppose new or renewal for four years.

13-1010 ENF

Dargel Boats, 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 have written consignment agreement: 43 TAC 215.144(g). Filed a false title and tax document: Transp Code 503.038(a)(2). $500.00 and attend a Dealer Training Seminar.

Ramiro E. Sanchez DBA Sanchez Tire Shop #3 (Salvage Dealer). Engaged in activities outside of salvage dealer license: Transp Code 503.021 and 503.095. $500.00.

13-1019 ENF

13-0992 ENF

Beasley Wilson Inc., DBA Miller Kia, Miller Mazda, Miller Suzuki Aided and abetted the unlicensed sale of a motor vehicle: Occ Code 2301.351. Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $500.00 and attend a Dealer Training Seminar.

Jal-Mex Auto Sales DBA Jal-Mex Auto Sales (Salvage) Sold a motor vehicle required to be registered and titled a “blue title” which respondent owned, without first transferring title to this vehicle to himself: Transp Code 501.022(c). and TAC 217.81(b)(16). $500.00.

13-0995 ENF

Gunn Nissan LTD, DBA Gunn Nissan LTD Featured a savings claim not available to all buyers: 43 TAC 215.262(b). $2,000.00.

13-1022 ENF

13-1026 ENF

L&L Auto Sales DBA L&L Auto Sales #31240281 Sold or offered for sale a salvage titled motor vehicle from a location other than a licensed salvage vehicle dealer’s business location: 43 TAC 217.76(b), Occ Code 2302.108 and 2302.354 and 43 TAC 217.81(b)(12) and 217.81(c). Cease and desist.

Basin Subaru, LLC, DBA Corpus Christi Preowned, Corpus Christi Subaru 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. 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 produce records within (15) days: 43 TAC 215.144(d) and 215.141(a)(3). Failure to timely pay lien on a motor vehicle traded in: Finance Code 348.408(c), Occ Code 2301.651(a)(4). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,500.00 and attend a Dealer Training Seminar.

13-1003 ENF

13-1030 ENF

Elaine T. Centanni, DBA Etc 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 maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Attend a Dealer Training Seminar.

13-0999 ENF

AJS Motors LLC, DBA AJS Auto Sales Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Failure to display

Mostafa Sabih DBA Best Automotive & Used Cars Filed a false title and tax document: Transp 37


fines& violations Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar.

13-1077 ENF

Simply Motorsports, LLC DBA Simply Motorsports LLC Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $500.00.

13-1079 ENF

R T Sparks Autos, 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. Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00 and attend a Dealer Training Seminar.

13-1086 ENF

Eli Dehoyos DBA Pharr Cars on Credit Failure to provide the Federal Trade Commission Buyer’s Guide in Spanish after conducting the sale in Spanish: 16 C.F.R. 455.5 and Occ Code 2301.651(a)(4). Cease and desist.

13-1109 ENF

Ricardo E. Galvan DBA Galvan Auto Sales Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00.

13-1110 ENF

Luis Garcia DBA Louie Auto Sales 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. 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). Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $2,500.00 and attend a Dealer Training Seminar.

13-1112 ENF

Xavier Cardona, DBA Real Street Auto Sales, Real Street Auto Sales #2 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 maintain complete records by licensed dealer or 38

auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00.

13-1119 ENF

Ron Hoover Companies of Rockport, Inc. DBA Ron Hoover Companies of Rockport, Inc. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Attend a Dealer Training Seminar.

13-1152 ENF

Gloria Q. Mares DBA Mares Motors Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00 and attend a Dealer Training Seminar.

13-0854 ENF

Malova Auto Group Inc. DBA Malova Auto Group Inc. Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-0870 ENF

H-Town Motors Inc., DBA H-Town Motors Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-0916 ENF

Gabriel Bocaneora DBA Gabriel’s Auto Sales and Services 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. $150.00.

13-0937 ENF

Charlene M. Connolly, DBA Cash Cars 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)(c). $200.00.

13-1059 ENF

Najwa Al-Muasher, DBA American Auto Sales Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-1060 ENF

MH & Sons Inc., DBA Motor Car Finance Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-1061 ENF

TSW Financial LLC, DBA TSW Financial LLC 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 observe right of way: 43 TAC 215.140(11)(c). $300.00.

13-1065 ENF

Villa Paras Inc., DBA Lacho Ayala Motors Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-1066 ENF

Southern Comfort Choppers, Trikes & Rides LLC 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.

13-1069 ENF

Travis Crawford Buick GMC Truck, DBA Crawford Buick GMC, Crawford Buick Pontiac Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). 100.00.

13-1072 ENF

Rudolph Chevrolet LLC DBA Rudolph Chevrolet Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-1073 ENF

Magdaleno De La Cruz / Domitila De La Cruz DBA Ruby’s 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.

13-1074 ENF

Albert J. Mascola II, DBA Alamo Car Center 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. $150.00.

13-1095 ENF

Hector Reyna Sr., DBA Diamante 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. $150.00.

13-1096 ENF

Credit Plex Auto Sales LLC DBA Greenville Mitsubishi 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

13-1097 ENF

Britain Chevrolet Inc. DBA Britain Chevrolet Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-1098 ENF

Orr Motors of Greenville Inc. DBA Nissan of Greenville 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 meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). $250.00.

13-1100 ENF

Jose Sandoval Mejia DBA JMS Auto Sales Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-1102 ENF

Southwest Buick GMC of East Texas LLC DBA Southwest Buick GMC Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-1104 ENF

Paul B. Merrell DBA Merrell Used Cars Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00. T e x a s

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13-1106 ENF

Mike Garrison DBA Rock Hill Used Cars Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-1108 ENF

Austin Finance Company, LLC DBA Austin Finance Company LLC 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 manufacturer, distributor or converter: 43 TAC 215.115. $250.00.

13-1120 ENF

Bar-W Ford Mercury - Tulia LTD DBA Bar-W Ford Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-1121 ENF

Ahmadi, Inc. DBA Certified Auto Group 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)(c). $200.00.

13-1122 ENF

Cesar Used Cars, Inc. DBA Cesar Used Cars, Inc. 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. $150.00.

13-1131 ENF

Wathiq Al-Khazali, DBA Motor-Tex Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-1133 ENF

Laredo Reliant Transfers, LLC DBA Dice Motor Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

13-1135 ENF

Racing Motors LLC DBA Racing Motors LLC 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. $150.00.

13-1143 ENF

Jose A. Carlos, DBA Carlos 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. $150.00.

13-1137 ENF

Marlene Terrazas Vasquez DBA Tarrazas Auto Sales 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). $150.00.

13-1138 ENF

Cavazos Auto Sales Inc. DBA Cavazos Auto Sales Inc. Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. Failure to observe right of way: 43 TAC 215.140(11)(c). $150.00.

13-1163 ENF

Abdolhamid Vatankhah DBA Direct Autoplex Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-1165 ENF

First Caprock Investments LP DBA BI-Wize Auto Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-1166 ENF

Wade E. Maynard DBA Auto Unlimited 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). $150.00.

13-1167 ENF

Texas Auto Investors LTD DBA Whiteface Ford Failure to remove Texas plates: Transp Code 502.451, 43 TAC 17.14. $50.00.

13-1171 ENF

Jose Manuel Sanchez DBA J & D Autos 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. $200.00.

13-1187 ENF

Speed Motors LLC DBA Speed Motors LLC Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

Better Business Through Superior Customer Service!

December 2013

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39


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

40

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

T e x a s

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December 2013


legal corner

Bankruptcy Filed After Repossession: To Return or Not to Return Dealer Question: I repos-

sessed a car last week because of default on payments and failure to maintain property-damage insurance. I just received a fax from an attorney advising that my debtor filed Chapter 13 bankruptcy today. He is demanding that I return the vehicle. Since I repossessed before the bankruptcy was filed, can I refuse?

Answer: Probably not.

M

ost car creditors and lien holders know by now that the filing of a bankruptcy is effective to stop the creditor from attempting to collect a debt, including repossession of collateral. We have addressed, in prior articles, the liability a creditor faces for repossessing collateral after a bankruptcy has been filed, and after the creditor has been notified of the bankruptcy. (We have also discussed the fact that any notice is sufficient to advise the creditor of the bankruptcy, regardless of the form of the notice, and that the creditor can’t refuse to recognize the bankruptcy just because he or she has not received official notice from the bankruptcy court.) A more difficult question arises when a buy-here-pay-here dealer (or other car creditor) has lawfully repossessed a vehicle, sent appropriate notice stating intention to dispose of the collateral, then is informed that the debtor filed bankruptcy after the repossession. As shown by the large number of calls we get from dealers facing this situation (usually on

December 2013

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a Friday afternoon), most car creditors believe that logic would dictate that the bankruptcy filing would be ineffective as to the repossessed collateral since the repossession took place before the automatic bankruptcy took effect. Unfortunately, the bankruptcy courts disagree. What makes the situation even more frustrating is that often the debtor had been hiding the vehicle prior to repossession. The creditor may fear that after giving it back to the debtor, it will likely never be seen again. The issue of post-repossession filing of bankruptcy was discussed in the case of In Re Frank R. Zaber in the Northern District of Texas. GMAC had repossessed Zaber’s vehicle on April 9 when he fell behind on payments. On April 15, Zaber filed a Chapter 13 bankruptcy. He promptly notified GMAC of the filing and presented proof of insurance and demanded return of the vehicle. When GMAC refused to return the vehicle, Zaber filed a motion asking the court to force GMAC to return the vehicle to him (formally called “turnover of property of the estate”) and to find that GMAC intentionally violated the bankruptcy stay. After an emergency hearing, the court found that GMAC had intentionally violated the bankruptcy stay by refusing to return the vehicle in a reasonable time after notice of the bankruptcy was given and proof of insurance was presented. The court looked to the statutory language of the bankruptcy stay found in Section 362(a)(3) of the Bankruptcy Code, which prohibits

by Michael

W. Dunagan

TIADA GENERAL COUNSEL

a creditor from taking “any act to obtain possession of property of the estate… or to exercise control over property of the estate.” The court found that the first part (“obtain possession”) referred to repossession, but that the second part (“or to exercise control over property of the estate”) applied to the refusal of a creditor in possession of collateral to return it once a bankruptcy had been filed. That is, even though the creditor took possession prior to bankruptcy, the subsequent filing of bankruptcy imposed a duty on the creditor to return the property. The creditor’s failure to return it amounted to an exercise of control of the property of the (bankruptcy) estate in violation of the automatic stay. In addition to compelling return of the vehicle, the court ordered GMAC to pay Zaber’s attorneys fees and to reimburse Zaber for the cost of a rental car between the time the vehicle should have been returned and the date it was actually given back. The majority position of bankruptcy courts around the country is that the debtor retains property rights in the repossessed collateral until the time that the vehicle has been properly and legally disposed of by the creditor under the requirements of the Uniform Commercial Code. Under the U.C.C., a debtor has the right to redeem repossessed collateral up until the time it is actually disposed of. 41


This right of redemption is the legal basis used by these courts to hold that the collateral remains “property of the estate” and thus subject to the bankruptcy stay. As long as the vehicle remains in the possession of the creditor, this line of reasoning goes, the court has the power to order it returned to the debtor. In cases where the creditor has refused over a long period of time, we have seen bankruptcy judges angrily impose expensive sanctions against the car creditors. If, on the other hand, the car creditor has sent appropriate notice, waited the appropriate time period, and disposed of the collateral — all prior to the filing of the bankruptcy — the courts have held that the vehicle is no longer property of the estate. In one actual case we handled, the car creditor had sent strict foreclosure notice to the debtor, and the 20-day holding period had expired before the bankruptcy petition was filed. No written objection to the strict foreclosure was given to the dealer during the 20-day period. The debtor’s counsel filed a motion for turnover and for sanctions against the dealer when the dealer declined to return the vehicle. After a hearing on the debtor’s motion, the court ruled that, under the strict foreclosure rules of the U.C.C., all redemption rights were cut off after the 20-day period expired, and the property reverted to the creditor. With no property rights with which to bring the collateral into the bankrupt’s estate, the court held that the dealer was not subject to the bankruptcy stay. If the car creditor uses the private sale procedure (instead of strict foreclosure), the debtor has the right of redemption of the collateral up to the time the vehicle is actually resold. That is, if the secured creditor sends a private sale notice with the usual 10-day period before the vehicle is to be resold, the debtor’s right to redeem doesn’t end with the expiration of the 10 days, but rather when the collateral is sold. Thus, even if the 10-day

period has passed, the unsold vehicle remains property of the estate. If the vehicle is sold on the 11th day, and the debtor files bankruptcy on the 12th day, the vehicle is not subject to the bankruptcy. Repossession (or anticipation of repossession) is often the event that triggers bankruptcy filing. It is thus not unusual for the car creditor to get a call from a debtor’s attorney just after repossession, advising that bankruptcy has been filed and demanding that the vehicle be returned to the debtor. We receive several calls from dealers each week seeking guidance in this situation. Unfortunately, under current law, we have to advise the dealer to return the vehicle. 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 validity of the insurance policy should be verified, and the policy should be checked to insure that the creditor is listed as loss payee, and that property damage coverage is included. (Many of the insurance verification papers we see are simply certificates of liability coverage). The actual filing of the bankruptcy can be checked, usually by calling the clerk of the bankruptcy court. In most cases, the attorney or the debtor will readily give the case number. 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. 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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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. We’ll cover everything you need to know to run a clean, compliant used car dealership in Texas. Topics include: n n

n

n n n n

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

n

n

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 Buyer’s Guide - As Is

n n n n n n n

n n n n n

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

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

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Texas Independent Automobile Dealers Association

Sponsored by:

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answers to annual compliance quiz 1. True. As long as the restraint was placed on the vehicle prior to the inquiry being run, it should show up on the motor vehicle inquiry. (November 2013; MVInet: Just Another Expense or Cheap Insurance?) 2. False. As a result of a TIADA legislative initiative, a vehicle lien holder now has a lien against the proceeds of a third party’s liability policy for property damage payments . (January, 2013; Participation in the Legislative Process) 3. b  . In the rear plate holder. As dealers know, metal dealer plates are not issued in pairs, and they belong in the rear plate holder. (October 2013; If It’s Not One Thing It’s The Next) 4. True. Even though the title will not be transferred at the county on an out-of-state sale, the $5 eTag fee must still be collected and (eventually) remitted to the county. (January 2013; Out-of-State & Out-of-Country Sales) 5. F  alse. Storage may be charged by non-VSF facilities, but such an entity is not legally entitled to foreclose on a storage lien without obtaining a release of lien from the car creditor. (September 2013; Can They Do That?? Storage Charges & Mechanic’s Liens) 6. d  . The FTC Buyer’s Guide must be posted in Spanish if sales negotiations take place in Spanish. (March, 2013; Should Contracts Be in Spanish?) 7. a  . September 1, 2012. This was the date the original ID rules went into effect. On September 1 of 2013, the rules changed to limit the types of ID the state would consider acceptable. November 1, 2013 was the date the state started requiring that the customer’s ID type and number be included on the title application form. (July 2013; New ID Requirements Effective September 1) 8. T rue. Standard language in motor vehicle retail installment contracts allows a lien holder to apply insurance proceeds on a total loss to pay off of the indebtedness. (April, 2013; Applying Total-Loss Insurance Proceeds to Reduce Customer’s Balance) 9. True. According to the Administrative Code §215.148(e): Only checks or drafts drawn on the purchasing dealer's account, or cashier’s checks in the name of the dealer, or wire transfers from the dealer's bank account shall be accepted for motor vehicles purchased in a wholesale transaction. (June 2013; The Dealer Agent Rule) 10. F  alse. The Buyer’s Guide must be displayed in a “clear and conspicuous” manner on used vehicles offered for sale. The original requirement of placing it on a side window has been amended to allow placement anywhere that is clear and conspicuous. (May, 2013; Is That Car For Sale?) 44

(questions found on pg. 6)

11. a & b. Increasing the purchase price as a condition of financing (c) is not allowed; the selling price of the vehicle must be the same for any buyer. Advertising a discount on a used vehicle (d) is a violation of advertising rules. And (e) is understandable, but not allowed. As stated above, the selling price of the vehicle must be the same for any buyer (even a Sooner). (May 2013; What Goes Up…Is Probably a Violation) 12. c  . Using customer’s personal information for marketing purposes triggers the obligation to give an “optout” opportunity. The others fall under permissible exceptions. (June, 2013: Privacy Notice Requirements for Independent Dealers) 13. b  . The brown POA (Part A) may only be used if the title is lost or if the title is physically held by a lienholder. (April 2013; Appropriate Usage of POA Forms) 14. T rue. An exception was carved out of the Adverse Action notice requirements for small creditors. A verbal statement of reasons for taking adverse action must still be given. (July, 2013; Adverse Action Notices Require Special Planning) 15. F  alse. Regulatory agency interpretations often evolve over time and are not commonly issued as formal opinions. (March, 2013; Statutes, Rules…and Opinions?) 16. a  . The OCCC has ruled that neither equipment nor installation charges for GPS units can be added to retail installment contracts. (September, 2013; Dealers Face Increased Compliance Enforcement) 17. e – all of the above. (February 2013; How Can They Do That?) 18. F  alse. The OCCC has established maximum rates that are substantially higher than five per cent for debt cancellation agreements that meet certain requirements. (October, 2013; Insurance Aggravations Continue to Plague Car Creditors & Drivers) 19. c  . A car creditor that requires insurance coverage can demand that the debtor provide property damage insurance without named-driver-only or excludeddriver endorsements . However, the creditor can’t require a minimum six-month policy or specify which insurance companies are acceptable. (February, 2013; Can Limited-Coverage Property Damage Policies Be Rejected by a Car Creditor?) 20. D  oesn’t Have. A bona fide completed sale of a product cuts off the liability of the seller. (November, 2013; Is a Car Seller Liable for Accidents Caused by His Buyer?) T e x a s

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December 2013


behind the wheel

Martin

Keeping Tabs on the Feds

B

ased on a whole bunch of unscientific, anecdotal evidence, we believe the December issue of the Texas Dealer is the most-read issue by our members all year. If you are the type of reader who reads a magazine cover to cover and you are finally at the end of this magazine, congratulations! That was a gauntlet of rules and regulations that might have you wondering how you can possibly stay in business one more hour without the state or federal government coming in to shut you down. On the other hand, if you are like me and you skip around magazines scanning for the most interesting headline or photo and you have found yourself on this page, I will confess I am not contributing much to the “compliance” issue — but I do wish you luck on the quiz. Either way, this issue always begs the question: what is my association doing to help keep me compliant and keep some of the regulations off of me? At the end of the day, don’t you just want to take care of your customers and sell cars? Well, I hear you. Last month I spent

46

NIADA President and Past TIADA President Keith Hagler, US Rep. John Carter and NIADA Executive VP Steve Jordan.

Michael Thomasson visits with Rep. Roger Williams.

by Jeff

TIADA EXECUTIVE DIRECTOR

three days in Washington, DC at the NIADA Leadership Conference. Our association President, Michael Thomasson; NIADA President, Keith Hagler (TIADA Past President) and a whole host of other dealers and association representatives from around the country attended. We spent a full day listening to and questioning representatives from the FTC (Federal Trade Commission), CFPB (Consumer Financial Protection Bureau), NMVTIS (National Motor Vehicle Title Information System) as well as just about any other federal level regulatory agency you can think of. We also had a chance to spend a day on Capitol Hill visiting with legislators and discuss our industry. In part, this will give us a better understanding of just what regulators are looking for so we can help keep you informed. More importantly, it keeps the door open to legislators so that your voice can be heard. Special thanks to Michael Thomasson and Keith Hagler for their leadership in protecting our industry. 

Michael Thomasson visits with Rep. Joe Barton. T e x a s

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