Texas Dealer April 2022

Also In this issue:

– Michael W. Dunagan: Car Creditors’ Rights in Total-Loss Insurance Claims – Ultimate Guide to Blogging for Independent Dealers – Handling Challenged Credit Calls

D M BU RI OR V SI E E TO N YO OLS ES U TO S R

EV EN

GET STARTED NOW AT ACVAUCTIONS.COM

VALUE, BUY, SELL AND MANAGE WITH CONFIDENCE AND TRANSPARENCY.

TIADA Board of Directors PRESIDENT Mark Jones/MCMC Corporate 264 Exchange Burleson, TX 76028 PRESIDENT ELECT Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 CHAIRMAN OF THE BOARD Robert Beck/Stop N’ Drive Motors 711 N. General McMullen San Antonio, TX 78228 SECRETARY Eddie Hale/Neighborhood Autos PO Box 1719 Decatur TX 76234 TREASURER Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 ICE PRESIDENT, WEST TEXAS V (REGION 1) Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915 ICE PRESIDENT, FORT WORTH V (REGION 2) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas TX 75218 ICE PRESIDENT, DALLAS V (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas TX 75237 ICE PRESIDENT, HOUSTON V (REGION 4) Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301 ICE PRESIDENT, CENTRAL TEXAS V (REGION 5) Robert Blankenship/Texas Auto Center 6809 Suite B S IH35 Austin, TX 78744 ICE PRESIDENT, SOUTH TEXAS V (REGION 6) Armando Villarreal/McAllen Auto Sales, LLC 4215 S. 23rd St McAllen, TX 78503 ICE PRESIDENT AT LARGE V Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 ICE PRESIDENT AT LARGE V Greg Phea/Austin Rising Fast 8024 IH 35 North Austin TX 78753 TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org

Vo l u m e X X I I / I s s u e 4 / A p r i l 2 0 2 2

TexasDealer contents

5 Officers’ Message

by Eddie Hale, TIADA Secretary

6 Recruitment Challenge 7 TIADA Membership Application 8 Legislator Spotlight 12 TIADA Auction Directory 15 Legal Corner: Car Creditors’ Rights in Total-Loss Insurance Claims

by Michael W. Dunagan

16 Upcoming Events 19 Technology Is Vital to Succeed in BHPH Today

by Ken Shilson

21 A Look Back at Automotive Advertising & Media

by Ronald Heider

24 2022 TIADA Conference & Expo 30 On The Cover: 10 Essentials for Building an Online Presence

by Kathi Kruse

32 Local Chapters 35 Ultimate Guide to Blogging for Independent Dealers

by Stephen Pallas

37 New Members 41 Handling Challenged Credit Calls

by Maggie Pugesek

43 TIADA Scholarship Application 46 Behind the Wheel

by Jeff Martin

Did You Know? Registration is now open for the TIADA Conference & Expo, taking place July 24–26 at the Kalahari Resort in Round Rock! See pages 24-28 for more information.

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.

Editor: Stephen Pallas

Magazine Ad Sales: Patty Huber, 512-310-9795

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officers’ message by

Being a Good Neighbor

O

ther independent dealers ask me all the time about the name of our dealership and what it means to us.

At Neighborhood Autos, we are guided by customer-service principles that extend to all our staff, policies, and practices. One of the things we always talk about is living out taking care of our customers. That means making friends and neighbors of everyone that comes into the dealership.

The philosophy at our dealership is simple: The best customer we have is the one we already have. While we understand the need to prospect for new customers and find new leads for our business, I believe that one of the best ways to succeed in this industry is to take care of the ones we already have. We have the mindset that each customer is not here for an individual sale. Instead, we want to develop a long-term relationship with that person, and their family and friends.

The foundation of these relationships is a good sales process and high-quality vehicles. We back every one of our vehicles with warranties and servicing. It’s important at our dealership to back what we sell and take care of the customer. We always strive to meet and exceed expectations from the beginning of the process and in the long run.

We also believe that the sales business is about relationships. One of the pitfalls we try to avoid is the idea that when you focus on sales you build long-term relationships with those customers. It can be the case that the opposite is true. We emphasize making friends with our customers and then selling them high-quality vehicles, not the reverse. We find that when you take care of the person, the commodity will always move along with that person.

Eddie Hale

Neighborhood Autos (Decatur) TIADA SECRETARY

We have several multi-generational customers who bought from us because their grandfather bought from us.

In other words, we have long lines of loyalty. The franchise business can be very impersonal. They depend on vehicle brand loyalty to sell their vehicles. Because we work in the independent space, we must create brand loyalty, not to the automotive brand, but to the dealership.

Long-term loyalty to the dealership is our business model. We have a dedicated person to deal with every specific problem that might occur. And this is true of everything from our customer service to financing, collections, and mechanical service. Every one of our cars is warrantied for a reason. It builds trust and lets our customers know that we have their back.

The most important aspect of our independent automobile business is taking care of the customer first. We know we can’t please everyone, but when we honestly work to snuff out the issues that customers might have, we find they are more likely to trust us in the long run. If the customer feels like we sold them a bad car, we do what we can to remove them from that situation and find them a new one.

When our customer base knows we go the extra mile for them, it creates a multi-generational base that we can rely on now and in the future. I believe this is a relationship business, and I depend on my staff to cultivate those relationships, to develop a culture of honesty and transparency. Our name is Neighborhood Autos for a reason, and we’re doing everything we can to do what good neighbors do.

The best customer we have is the one we already have.

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legislator spotlight Representative James Talarico x

Texas Dealer: What inspired you to run for public office?

Representative James Talarico: My students. Before I became a politician, I was a middle school teacher.

I taught 6th grade English Language Arts at Rhodes Middle School on the West Side of San Antonio—a historic Mexican-American neighborhood and one of the poorest zip codes in the state. When I left the classroom, I promised my students that I would fight for them every day. As legislators, we are failing our students until Texas’ education system is second to none.

TD: What skills do you utilize most frequently at the Capitol?

Rep. Talarico: The skills I use daily at the capitol

R

epresentative James Talarico is a former education non-profit leader and public-school teacher elected to serve House District 52 in the Texas House of Representatives. He was born in Williamson County, where he attended Round Rock ISD schools and graduated from McNeil High School. Rep. Talarico earned degrees from The University of Texas at Austin and Harvard University. He taught middle school on the West Side of San Antonio before becoming the Central Texas Executive Director for a nonprofit dedicated to equipping classrooms with innovative technology. He currently serves as the youngest member of the Texas Legislature, sitting on the Public Education Committee, the Juvenile Justice and Family Issues Committee, and the Calendars Committee. Outside of his role as a legislator, Rep. Talarico is an education consultant, crafting and implementing education solutions across Texas

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are the same ones I used daily as a teacher: rallying different people around big goals, problem-solving, conflict resolution, and clear communication. Being a progressive in Texas who can pass significant legislation is no easy task. As a legislator, half of my job is talking to folks who may not completely agree with me and seeing where we can make progress on issues. Since 2019, we’ve passed historic education legislation including the most significant reform to the state’s school finance system in 20 years, the first-ever cap on pre-K class sizes in Texas history, a sweeping bill to improve early childhood education across the state, a policy to open up millions in funds for social-emotional learning programs, and a law requiring all incarcerated minors in Texas be given the opportunity to graduate with a high school diploma. All of these important pieces of legislation were passed with the skills I learned in the classroom.

TD: What do you think makes House District 52 so unique?

Rep. Talarico: House District 52 has strong local communities each with their own unique culture and history. In Taylor, we have the historic downtown area, which is home to the Texas Beer Company and the best T e x a s

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barbeque in Texas—Louie Mueller Barbecue. Thanks to revitalization efforts spearheaded by the city council, Taylor has also quickly become a hub for local artists and creatives. In Round Rock, you can get the biggest donut in Texas at Round Rock Donuts and visit “Old Town” to see the famous round rock on what became known as the Chisholm Trail—a historic cattle route. And if you go to Georgetown—one of the fastest-growing cities in Texas—you can visit the state cultural district, a 40-block area surrounding the Georgetown Square with restaurants, wineries, galleries, and boutiques. This district showcases the culture and history of Texas and has something for everyone to enjoy.

TD: What problem or policy do you think deserves more attention?

Rep. Talarico: Early Childhood Education. I don’t believe

in silver bullets in education policy, but the closest thing we have to a silver bullet is high-quality, accessible early childhood education. That’s why I helped create the Early Childhood Caucus—a bipartisan group of over 32 legislators who are committed to ensuring that every Texas child is prepared to learn by kindergarten, that early childhood professionals are well-qualified, and that each community in Texas has a system of well-organized early childhood service.

TD: What was the first vehicle you owned?

Rep. Talarico: My first car was a black Nissan Hardbody

truck—if you’ve ever seen the Texas documentary “Hands on a Hardbody,” that’s the truck I had. It was passed down to me from my grandad in high school and was named George, which was my grandad’s middle name. I loved that truck, and it lasted me until my senior year of college when it died on Mopac, and I had to push it to the side of the road.

TD: What is the biggest challenge facing small business owners today?

Rep. Talarico: Many of our economic policies are rigged in favor of giant multinational corporations who can afford—unlike small businesses—to line the pockets of politicians and influence public policy for their benefit.

Texas is supposed to be a business-friendly state, but I think that pro-business and pro-family policies go handin-hand. Our state government should be helping to support workers by providing guaranteed healthcare, paid April 2022

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family leave, accessible childcare, and free community college. These investments would support families while taking the pressure off small businesses.

TD: What is the Texas House Public Education Committee

working on currently and in the near future?

Rep. Talarico: We should be working on recovering from the pandemic, increasing teacher morale, addressing teacher attrition and burnout, combatting learning loss, and supporting our administrators and school districts.

Instead, some have used the committee as a political theater to bully trans kids and whitewash our history books. I hope the committee will come together in the next legislative session to help our students, not play political games.

TD: Why is serving on this committee so important to you?

Rep. Talarico: I went from impacting 150 students a year in Room 112 at Rhodes Middle School to impacting 5.5 million Texas school children at our state capitol. Being one of the only teachers in the Texas Legislature allows me to have a better grasp on the issues facing our schools. I used that experience to craft practical solutions to help our schools and educators. The Texas Legislature needs more teachers making education policy.

TD: Do you have any final thoughts for our readers?

Rep. Talarico: Thank you for the work this organization

does to support our independent automobile dealers! I’m looking forward to working with you to get our state in gear.

Want to share your story in an upcoming issue of Texas Dealer?

info@txiada.org

Time to renew your dealer’s license? visit TexasDealerEducation.com 9

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Austin

TUESDAYS & THURSDAYS AT 1PM

LOCATIONS IN TEXAS

Dallas

TUESDAYS & THURSDAYS AT 1PM 219 N. Loop 12 Irving, Texas 75601 Phone: 972.445.1044

16611 South IH 35, Buda, Texas 78610 Phone: 512.268.6600 Houston

THURSDAYS AT 1:30PM

1826 Almeda Genoa Rd, Houston, Texas 77047 Phone: 281.819.3600

Auction Credit is located within each of our Texas facilities for all of your auction financing needs. www.auctioncredit.com

North Houston

TUESDAYS AT 1PM

1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

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Abilene ALLIANCE AUTO AUCTION ABILENE

www.allianceautoauction.com 6657 US Highway 80 West, Abilene, TX 79605 325.698.4391, Fax 325.691.0263 GM: Brandon Denison Friday, 10:00 a.m.

$AVE : $200

C.M. COMPANY AUCTIONS, INC. www.cmauctions.com

2258 S. Treadaway, Abilene, TX 79602 325.677.3555, Fax 325.677.2209 GM: Gregory Chittum Thursday, 10:00 a.m. $AVE : $200

IAA ABILENE*

www.iaai.com 7700 US 277, Hawley, TX 79601 325.675.0699, Fax 325.675.5073 GM: Shawn Lemke Thursday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Amarillo IAA AMARILLO*

www.iaai.com 11150 S. FM 1541, Amarillo, TX 79118 806.622.1322, Fax 806.622.2678 GM: Shawn Norris Monday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Austin ADESA AUSTIN

www.adesa.com 2108 Ferguson Ln, Austin, TX 78754 512.873.4000, Fax 512.873.4022 GM: Michele Arguijo Tuesday, 9:00 a.m.

$AVE : $200

ALLIANCE AUTO AUCTION AUSTIN

www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 GM: Geoffrey Rabb Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

METRO AUTO AUCTION AUSTIN www.metroautoauction.com 8605 Cullen Ln., Austin, TX 78748 512.282.7900, Fax 512.282.8165 GM: Brent Rhodes 3rd Saturday, monthly

$AVE : $200

Corpus Christi CORPUS CHRISTI AUTO AUCTION

www.corpuschristiautoauction.com 2149 IH-69 Access Road, Corpus Christi, TX 78380 361.767.4100, Fax 361.767.9840 GM: Hunter Dunn Friday, 10:00 a.m.

$AVE : $200

IAA CORPUS CHRISTI*

www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880 GM: Patricia Kohlstrand Wednesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

Dallas-Ft. Worth Metroplex ADESA DALLAS

www.adesa.com 3501 Lancaster-Hutchins Rd., Hutchins, TX 75141 972.225.6000, Fax 972.284.4799 GM: Allan Wilwayco Thursday, 9:30 a.m.

$AVE : $200

ALLIANCE AUTO AUCTION DALLAS

www.allianceautoauction.com 1550 CR 107, Hutto, TX 78634 737.300.6300 GM: Brad Wilson Wednesday, 9:45 a.m.

www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136, Fax 469.828.8225 GM: Robert Kersh Wednesday, 1:30 p.m.

AMERICA’S AA AUSTIN / SAN ANTONIO

AMERICA’S AA DALLAS

$AVE : $200

www.americasautoauction.com 16611 S. IH-35, Buda, TX 78610 512.268.6600, Fax 512.295.6666 GM: Jamie McCollum Tuesday, 1:30 p.m. / Thursday, 2:00 p.m.

$AVE : $200 12

IAA AUSTIN*

$AVE : $200

www.americasautoauction.com 219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972.591.2742 GM: Ruben Figueroa Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.

$AVE : $200

IAA DALLAS*

www.iaai.com 204 Mars Rd., Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 GM: Bob Bannister Wednesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

IAA DFW*

www.iaai.com 4226 East Main St., Grand Prairie, TX 75050 972.522.5000, Fax 972.522.5090 GM: Julissa Reyes Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

IAA FORT WORTH NORTH*

www.iaai.com 3748 McPherson Dr., Justin, TX 76247 940.648.5541, Fax 940.648.5543 GM: Jack Panczyk Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

MANHEIM DALLAS**

www.manheim.com 5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800, Fax 214.339.6347 GM: Rich Curtis Wednesday, 9:00 a.m.

$AVE : $100

MANHEIM DALLAS FORT WORTH**

www.manheim.com 12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000, Fax 817.399.4251 GM: Nicole Graham-Ponce Thursday, 9:30 a.m.

$AVE : $100

METRO AUTO AUCTION DALLAS**

www.metroaa.com 1836 Midway Road, Lewisville, TX 75056 972.492.0900, Fax 972.492.0944 GM: Scott Stalder Tuesday, 9:00 a.m.

$AVE : $200

El Paso EL PASO INDEPENDENT AUTO AUCTION www.epiaa.com 7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 GM: Luke Pidgeon Wednesday, 10:00 a.m.

$AVE : $200

IAA EL PASO*

www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489, Fax 915.852.2235 GM: Jorge Resendez Friday, 10:30 a.m.

$AVE : up to $200 Sell Fee T e x a s

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MANHEIM EL PASO

www.manheim.com 485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645 GM: JD Guerrero Thursday, 10:00 a.m.

$AVE : $100

IAA MCALLEN*

www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393, Fax 956.464.8510 GM: Ydalia Sandoval Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

BIG VALLEY AUTO AUCTION**

www.bigvalleyaa.com 4315 N. Hutto Road, Donna, TX 78537 956.461.9000, Fax 956.461.9005 GM: Lisa Franz Thursday, 9:30 a.m.

$AVE : $200

Houston ADESA HOUSTON

www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030 GM: Brian Wetzel Wednesday, 9:00 a.m.

$AVE : $200

AMERICA’S AA HOUSTON

www.americasautoauction.com 1826 Almeda Genoa Rd, Houston, TX 77047 281.819.3600, Fax 281.819.3601 GM: Ben Nash Thursday, 2:00 p.m.

$AVE : $200

AMERICA’S AA NORTH HOUSTON www.americasautoauction.com 1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842 GM: Buddy Cheney Tuesday, 1:00 p.m.

$AVE : $200

AUTONATION AUTO AUCTION - HOUSTON www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 822.905.2622, Fax 281.506.3866 GM: Juan Gallo Friday, 9:30 a.m.

$AVE : $200

HOUSTON AUTO AUCTION

www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566, Fax 713.644.0889 President/GM: Tim Bowers Wednesday, 11:00 a.m.

$AVE : $200

IAA HOUSTON*

www.iaai.com 2535 West. Mt. Houston, Houston, TX 77038 281.847.4700, Fax 281.847.4799 GM: Alvin Banks Wednesday, 9:00 a.m.

$AVE : up to $200 Sell Fee T e x a s

www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300, Fax 281.443.4433 GM: Aracelia Palacios Thursday, 9:00 a.m.

$AVE : up to $200 Sell Fee

IAA HOUSTON SOUTH*

Harlingen/McAllen

April 2022

IAA HOUSTON NORTH*

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Midland Odessa IAA PERMIAN BASIN*

www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277, Fax 432.366.8725 Thursday, 11:00 a.m.

$AVE : up to $200 Sell Fee

www.iaai.com 2839 E. FM 1462, Rosharon, TX 77583 281.369.1010, Fax 833.595.8398 GM: Adriana Serrano Friday, 9:30 a.m.

ONLINE

MANHEIM HOUSTON

E-DEALERDIRECT**

$AVE : up to $200 Sell Fee

www.manheim.com 14450 West Road, Houston, TX 77041 281.924.5833, Fax 281.890.7953 GM: Brian Walker Tuesday, 9:00 a.m. / Thursday 6:30 p.m.

$AVE : $100

MANHEIM TEXAS HOBBY

www.manheim.com 8215 Kopman Road, Houston, TX 77061 713.649.8233, Fax 713.640.6330 GM: Darren Slack Thursday, 9:00 a.m.

$AVE : $100

Longview ALLIANCE AUTO AUCTION LONGVIEW www.allianceautoauction.com 6000 East Loop 281, Longview, TX 75602 903.212.2955, Fax 903.212.2556 GM: Chris Barille Friday, 10:00 a.m.

$AVE : $200

IAA LONGVIEW*

www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248, Fax 903.553.0210 GM: Edgar Chavez Thursday, 9:00 a.m.

$AVE : up to $200 Sell Fee

Lubbock IAA LUBBOCK*

www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 GM: Chris Foster Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

TEXAS LONE STAR AUTO AUCTION** www.lsaalubbock.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 GM: Dale Martin Wednesday, 9:30 a.m

ACV AUCTIONS**

www.acvauctions.com 800.553.4070

$AVE : $250

www.e-dealerdirect.com chris@edealerdirect.com

$AVE : Up to $500/month

San Antonio ADESA SAN ANTONIO

www.adesa.com 200 S. Callaghan Rd., San Antonio, TX 78227 210.434.4999, Fax 210.431.0645 GM: Clifton Sprenger Thursday, 10:00 a.m.

$AVE : $200

IAA SAN ANTONIO*

www.iaai.com 11275 S. Zarzamora, San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 GM: Paula Booker Monday, 9:00 a.m.

$AVE : up to $200 Sell Fee

MANHEIM SAN ANTONIO**

www.manheim.com 2042 Ackerman Road San Antonio, TX 78219 210.661.4200, Fax 210.662.3113 GM: Mike Browning Wednesday, 9:00 a.m.

$AVE : $100

SAN ANTONIO AUTO AUCTION**

www.sanantonioautoauction.com 13510 Toepperwein Rd. San Antonio, TX 78233 210.298.5477 GM: Brandon Walston Tuesday, 10:00 a.m. / Thursday, 1:30 p.m.

$AVE : $200

Tyler GREATER TYLER AUTO AUCTION www.greatertyleraa.com 11654 Hwy 64W, Tyler, TX 75704 903.597.2800, Fax 903.597.3848 GM: Wayne Cook Tuesday, 5:00 p.m.

$AVE : $200

$AVE : $75/Quarterly

Waco

Lufkin

ALLIANCE AUTO AUCTION WACO

LUFKIN DEALERS AUTO AUCTION

www.lufkindealers.com 2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299, Fax 936.632.4218 GM: Wayne Cook Thursday, 6:00 p.m.

$AVE : $200

www.allianceautoauction.com 15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 GM: Christina Thomas Friday, 10:00 a.m.

$AVE : $200

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legal corner

Car Creditors’ Rights in Total-Loss Insurance Claims Michael W. Dunagan by

Dealer Question: One of My Buy-Here-Pay-Here customers wrecked his car, and the insurance company declared a total loss. My customer wants to keep the salvage and have it repaired. Of course, this would reduce the insurance settlement amount since the salvage value would be deducted. I am also concerned about having a rebuilt vehicle with a salvage title as my collateral.

Can I insist that we take the full settlement and apply it to the balance?

Answer: Under the terms of most motor-vehicle-retail-installment contracts, the lien holder has the option of applying insurance proceeds on a totaled vehicle to the balance owed. However, if the customer and the insurance company refuse to cooperate, there may be some practical issues in enforcing this contract right.

O

ne of the reasons that alternative insurance products (such as single-interest coverage, collateral-protection insurance, and debt-cancellation agreements) have become more attractive to BHPH dealers and other lien holders is the difficulty of dealing with the uncooperative customer and a difficult insurance adjustor/company in resolving a damage claim (see “Alternatives to Traditional Property-Damage Insurance Offer Options to Dealers,” Texas Dealer, July 2021).

Many BHPH customers feel that since they are paying the premium for insurance coverage, they ought to be able to walk away with some money in their pockets when a

April 2022

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TIADA COUNSEL

Our recommendation to our carcreditor clients is to take control of the collateral as quickly as possible. Having possession and control makes it easier to prevent unnecessary storage charges, the possibility of unauthorized work that might lead to a mechanic’s lien claim, and problems with submitting a statement of repossession to the insurance company, if needed. claim is paid. Also, the thought of losing a car and still owing money on it is not something the average person feels comfortable with.

In reality, most total-loss situations result in insurance proceeds falling short of the balance owed on the account. The combination of smaller down payments paid by sub-prime customers and the motivation of some insurance adjustors to justify the lowest possible payout make for more upside-down car debt.

Another dynamic at work in this situation is that so many vehicles are declared to be total losses by the

insurance adjustors. With low values placed on wrecked vehicles and increasing costs for parts and labor, it’s not uncommon for the costs of repair to exceed the values which are applied.

It’s not surprising then that subprime debtors are inclined to look for creative ways to use the insurance proceeds for something other than just reducing the debt. The debtors may feel that they are better off applying insurance proceeds to fix their transportation sources while they continue to make car payments. In some situations, debtors feel they can have the vehicle 15

Upcoming Events 2022 TIADA DEALER ACADEMY Online registration available. www.txiada.org

May 2 Keeping Your BHPH Dealership Legal and Compliant Arlington, TX

OTHER TIADA EVENTS April 25 Board of Directors Meeting Austin, TX

26 TIADA Legislative Day Austin, TX

July 24 Board of Directors Meeting Kalahari Resort Round Rock, TX

24–26 TIADA Conference and Expo Kalahari Resort Round Rock, TX

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repaired by a friend or relative at a lower cost. Most BHPH dealers will attempt to work with their customers to put them in other vehicles, especially if the customers have proven to be good payers.

Another factor in the customerretains-salvage scenario is the title certificate issue. Typically, when a vehicle is categorized as a total loss (the cost of repair exceeds value), the title certificate is supposed to be submitted to the Texas Division of Motor Vehicles with a salvage certificate issued in return.

Usually, where the insurance company pays a total loss, it will take the salvage and the title certificate (with the lien released) and resell the salvage at a salvage pool or other salvage outlet, with the blue title going to the state. By reducing the settlement by the value of the salvage, and letting the insured keep the salvage, the back-end process is simplified for the insurance company.

However, for a lienholder, the prospect of ending up with a rebuilt unit (which may or may not have been properly repaired) with a salvage title is not an attractive situation. Thus, the car creditor probably sees the application of the insurance proceeds, without a reduction for retained salvage value, to the indebtedness as a better alternative.

Typical of the language that appears on motor vehicle retail installment contracts is this: PHYSICAL DAMAGE INSURANCE PROCEEDS: I (in this case, “I” is the debtor and “you” is the creditor) must use physical damage insurance proceeds to repair the motor vehicle, unless you agree otherwise in writing.

However, if the motor vehicle is a total loss, I must use the insurance proceeds to pay what I owe you.

There may be some obstacles even with the contractual right to apply the proceeds from a total loss to the balance. For instance, most insurance companies do not want to get involved in a dispute between their insured (the debtor) and the loss-payee (the lien holder). Under the insurance contract, the company is required to include the loss-payee on the settlement check (assuming the creditor is listed as a loss payee on the policy). Often, the check with both names listed as payee is sent to the debtor.

If the debtor endorses the check and delivers it to the lienholder, there’s usually no problem. But what if the debtor refuses to endorse the check and give it to the lienholder? The resulting stalemate can usually only be resolved by reaching some type of compromise agreement or filing a lawsuit to have a court sort out the issues.

Some insurance companies will issue a check solely payable to the loss-payee lienholder if the vehicle has been repossessed and the lienholder submits a statement to the insurance company attesting to that fact. Obviously, this procedure should be sought by a creditor who wishes to stay in control of the situation.

Another practical problem that we’ve seen on numerous occasions is the creative debtor that forges the lien holder’s endorsement on the check and cashes or deposits it. We’ve even seen cases where the debtor went to the trouble to have a rubber stamp made with the apparent endorsement of the car creditor. In forged endorsement cases, we’ve usually been able to get the bank or other institution to pay our lien-holder client under a law that makes a party that pays out over a forged endorsement responsible for the ensuing loss.

Another issue that frequently arises in accident/insurance claims situations is the interjection of T e x a s

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towing and storage fees. That is, while the lienholder is dealing with its customer and the insurance company, storage charges on a vehicle being held by a storage facility (and, in some cases, a body shop) are climbing daily. We’ve seen cases where, when the storage charges exceeded the value of the salvage, the insurance company refused to pay the storage and deducted the salvage value from the settlement offer.

Some insurance companies will issue a settlement check payable solely to the insured without checking for the existence of a lien on the title and ignoring the policy provision protecting the named loss-payee. It is not unusual for an adjustor to tell the lienholder that protection of the loss payee is not required if the amount of the settlement is below a certain threshold. In fact, there is no legal or contractual justification for ignoring the loss payee, but rather it’s an internal policy of some companies to simplify their claims processes by avoiding lien holders. If a debtor cashes or deposits a check that excludes the policy’s named loss payee, a breach-ofcontract cause of action is available against the insurer.

Our recommendation to our carcreditor clients is to take control of the collateral as quickly as possible.

Having possession and control makes it easier to prevent unnecessary storage charges, the possibility of unauthorized work that might lead to a mechanic’s lien claim, and problems with submitting a statement of repossession to the insurance company, if needed.

Finally, all steps taken by a car creditor in this process must be taken in good faith and without unreasonably jeopardizing the debtor’s position. The Texas Business and Commerce Code requires secured creditors to be commercially reasonable in dealing with repossessions and the disposition of repossessed collateral.

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Conclusion

A vehicle lienholder has the authority under most motor vehicle retail installment contract forms to apply the proceeds of a totalloss insurance claim to the balance of the account. But actually collecting the proceeds may involve more work than just receiving and depositing a check. Just as car creditors must diligently monitor that insurance protecting the collateral is in place, they must also attempt to stay in control of

the adjustment and payment procedures on the back end to be able to minimize losses from accident situations.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 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

Technology Is Vital to Succeed in BHPH Today

A

lthough the pandemic has been devastating for some businesses and even entire industries, the buy here, pay here industry prospered from a collection perspective during 2020 and 2021, according to my Subprime Industry Perspectives and Trends report.

Unlike convenience stores, restaurants, bars, and other service providers, the BHPH auto finance business not only adjusted to the COVID-19 challenges but enjoyed more success than anyone anticipated.

Pandemic disaster and necessity provided new opportunities (and challenges) that fueled innovation. Consumers adapted quickly to some new ways of doing business. Consumers who barely used eCommerce before the pandemic increased their online shopping by over 400 percent, according to Accenture.

The pandemic also significantly impacted the workplace, with the work-from-home experiment taking hold at many businesses throughout the country.

In the subprime auto finance business, pandemic influence on the consumer was similar.

Subprime customers opted to shop online instead of spending time searching vehicle inventories at dealerships. Health concerns and other restrictions caused consumers to opt for less time inside dealerships which meant shopping for vehicles online and closing purchases electronically with only a “test drive” in between. Those operators who adjusted and implemented technology and procedures to facilitate this online business prospered while the others struggled. Many industry veterans believed BHPH vehicles could not be sold and financed with subprime customers over the internet.

The pandemic proved them wrong! It is unlikely that this eCommerce trend will disappear when the pandemic ends.

Ecommerce will not replace “brick and mortar” dealerships, but the change above requires operators to integrate technology that complements (not replaces) their historical operating practices. Operators need to embrace online technology and social media, not resist it! Operators who state that “they can’t afford to

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Featured Speaker Ken Shilson

President Subprime Analytics, LLC

invest in technology today” will not remain competitive tomorrow!

Social media must be used to “connect and collect” with and from subprime customers. A primary example is texting solution technology. Subprime customers “live inside their smartphones” and utilize Facebook, Instagram, and other social media sources as their primary source of entertainment. Operators who used texting with social media were more successful during the pandemic than those who did not. Texting will be an important tool in the future of the subprime auto finance business.

Other technologies provide business solutions to help solve business problems!

Dealer management software (DMS) has evolved significantly during the last five years. Today’s best systems are internet-based and provide a fully integrated network to other solutions.

Technology integration is a vital ingredient for improving operating efficiency.

The data stored inside DMS systems provide vital artificial intelligence that should be mined and used to make better operating decisions and validate portfolio performance. DMS solutions, which integrate with payment devices (GPS), CRM technology, texting, credit scoring, portfolio analysis, including online credit applications, inventory management, sourcing technology, and other integrations, are the tools needed to succeed after the pandemic ends!

Inventory at higher costs and capital availability are significant barriers to emerging successfully from the pandemic. Inventory acquisition remains a continuing challenge. Fortunately, excellent sourcing tools are available to locate inventory nationally and facilitate acquisition searches. Operators who used online tools to source inventory during the pandemic fared better than those still using older, labor-intensive manual methods.

Capital will be needed to fund subprime market 19

opportunities ahead. However, the demand for additional money will outpace supply. The pandemic forced capital providers to really know and to understand their borrower portfolios. Lenders proactively monitored portfolio performance trends very carefully during the pandemic.

Portfolio performance reviews focused on cash collection rates, delinquency, recency, deferments, repo rates, and chargeoffs. Positive performance metrics were needed to keep the outside capital flowing into the subprime industry. Expect that trend to continue when the pandemic ends! As one lender said, “if you don’t have metrics today, you won’t be borrowing money tomorrow!”

For operators who are unable to obtain lines of credit sufficient to fund their post-pandemic needs, contract sales to third parties may be their best alternative. Contract purchasers experienced more normal levels of contract availability in the second half of 2020, and contracts garnered better pricing with the additional aging. In 2021, originations improved with another round of economic stimulus, and contract purchasers are expected to be active in the market this year. In 2022 contract availability will be limited by lower originations in the preceding years.

In summary, technology plays a vital role in today’s margin-compressed, competitive auto finance business.

Fortunately, the available technology is the best in history!

Although technology plays a vital role in future operations, operators must not lose personal interaction (the

bond) with subprime customers. Remember, the industry is still named “buy here, pay here” for a reason. Building strong customer relationships should not be lost with the growth in eCommerce activity. This presents some new challenges as customers spend less time inside dealerships and do more online without personal interaction.

The new leadership in Washington has increased the regulatory scrutiny over the used car industry. State AG’s will be more active with enforcement actions to generate revenue.

Operators need to be vigilant in their compliance efforts.

Increased eCommerce customer activity provides some different compliance challenges for subprime operators.

While the pandemic hurt many small businesses, it pushed others to innovate by looking at new ways to reach customers and continue revenue streams. These changes will remain important long after economic stimulus payments end. In summary, operators must adapt and welcome the changes above, not resist them, to prosper in the future.

Kenneth Shilson is President and Founder of NABD and Subprime Analytics which provides computerized portfolio analysis for operators and capital providers in the subprime auto finance industry. Visit their website at www.subanalytics.com or call Ken at 281-723-9508. Ken will be a featured speaker at the TIADA Conference & Expo on Tuesday, July 26, 2022. To register for this year’s conference, visit www.tiadaannualconference.com.

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Automotive CRM

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feature

A Look Back at Automotive Advertising & Media

Featured Speaker Ronald Heider

Founder and President Heider Marketing & Advertising, LLC

T

hey said TV would with information becoming the product, “The greatest thing to be replace the movies. In the Video-Digital-Social combination sells a achieved in advertising is actuality, it made movies lot of cars. believability, and nothing better. The motion picture industry None of the “old” mediums have disapis more believable couldn’t take its audience for granted peared.

People still read books, magazines, than the product any longer. People had a choice, and the newspapers; they still go to the movies, listen itself.” movies responded with blockbusters that to the radio, watch television, and occasionally, - Leo Burnett needed the big screen, and movies and TV they’ll even talk to each other. learned to co-exist.

Word-of-mouth still ranks as the most powerWhen cable TV came along, they said newsful advertising, although the Internet can sort of papers were doomed. People could do that, too. However, as with get up-to-the-minute news all real (as opposed to virtual) day, every day. Well, that didn’t word-of-mouth, customer happen either. Like the movies, comments cut both ways. newspapers had to get better, People do what pleases leaner, more efficient, and more them. They are drawn to responsive. Many folded, but what they’re comfortable many “re-invented” themselves with, and that doesn’t and are now found online. change overnight. As long And that leads us to the as we make our proposiInternet. Radio has sound tion easy, comfortable, and and the “theater of the mind.” beneficial, our marketing Newspapers have tangibility. efforts will still bear fruit, TV has visual and audio and provided, of course, we “feeling.” And the Internet have a good product, treat seems to have it all, plus it’s a the customer right, and get two-way street, making it by far their attention. the most democratic medium Back in the days before to date. Everyone can be a pubtelevision, the mantra was lisher, performer, or critic. there were three advertisMarshall McLuhan’s ing devices that always proposition that “the get attention: babies, medium is the message” animals, and kissing rings particularly meancouples. Look at media ingful in marketing. To a advertising today, and great extent, the medium actually you’ll see things haven’t really creates new product categories and new markets. The changed all that much.

“Infomercial” didn’t exist before television. Some prodThe Internet has become the showroom. Powerful and ucts just naturally relate more to a particular medium. pervasive as it is, it still depends on other mediums to In addition, it’s always wise to go where your competitell people that your dealership exists—what it is, where tion isn’t. it is, and why they should go there. What, Where, Why Some mediums have a natural affinity for each other.

— It all sounds very familiar.

Before television, the newspaper-radio combination The possibilities of the Internet are new, exciting, and sold a lot of automobiles for local dealers, and, to tell seemingly endless. It’s even become a video-based methe truth, it’s still a pretty good combination. Today, dium to rival broadcast and cable TV.

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Unfortunately, some advertisers (including independent car dealers) have forsaken traditional mediums in favor of all-Internet marketing. After all, you still need to drive eyeballs to your website and give them a reason to go there.

The Internet is critically important for automotive marketers. But is it the do-all, be-all? Maybe. But the real goal is still to drive customers to your dealership. If newspaper, radio, TV, bus cards, direct mail, skywriting, or the Internet can deliver people who believe you have something of value to them, all the rest becomes academic.

With the internet capable of doing so much, it’s easy to focus on the technology and lose sight of the goal. Business owners who fell in love with their computer systems have been known to go out of business because they thought everything else would take care of itself if they got the technology right. It would be a mistake to put all your eggs into technology and not your advertising and the message you deliver to those coveted consumers.

It’s like those award-winning ad campaigns that don’t produce profits. In marketing 101, they call that sub-optimizing.

After all is said and done, we find that the basics never change.

A clear, concise, meaningful message delivered to consumers on the medium of their choice will always prove to be a winning combination.

Ronald A. Heider is the President of HMA — an automotive ad and marketing agency serving both retail & BHPH dealerships. Heider’s mission is simple — help dealers sell more cars while spending less on their ads. Heider can be reached at rheider@hmaads.com or online at www.hmaads.com.

Ronald will be a featured speaker at the TIADA Conference & Expo on Monday, July 25, 2022. To register for this year’s conference, visit www.tiadaannualconference.com.

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Auto Dealer Solutions

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Bill Metzinger

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to know

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One of TIADA’s best-reviewed speakers of 2021, Danny will be returning from Kansas City to share his journey on increasing gross and turn across the inventory lifecycle, starting with diversifying your vehicle acquisition strategy and measuring ROI in new ways.

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W hy Choose Us?

Visit Us Online for Customized Solutions & Helpful Insights

M U L L ENINSU RANC E.C O M

F e a t u r e d I n s u r a n c e S o lu t io n s 8 00- 7 8 3 - 6 29 7 - T O L L F R E E ( 9 7 2) 6 8 1- 6 29 7 - L O C A L INF O @ M U L L ENINSU RANC E.C O M

on the cover

by Kathi Kruse

Kruse Control Inc.

I

t’s time to get visible. As most dealers will admit, it’s been a challenge building an online presence to attract today’s hyperconnected buyers. The online and offline worlds are more intertwined than ever, and reaching in-market buyers has become a complex task.

Building a robust online presence that speaks to your customers is key, and if you haven’t already made moves to do so, now is the time to start. You may already have an online footprint and want to optimize or improve what’s there. Here are 10 essentials to consider as you make your store more visible online.

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1

Actively Manage Your Google Business Profile (formerly Google My Business or GMB)

Google Business Profile is a free, simple-to-use tool that allows dealers to manage how they appear in Google Search and its growing portfolio of utilities.

If you haven’t set yours up yet, now would be a good time!

Google Business Profile makes it easier for customers to find you online and at your physical location. Completing your profile info, adding regular updates, and managing your profile, including Google

Reviews, all serve to help build your online presence.

Enter complete data for your

profile (don’t leave anything to a guess or assumption).

Complete the verification process

(Once you’ve provided the necessary verification details, Google will send you a postcard with a PIN. Once you receive it, simply enter it in the space provided on your profile, and you’ll be verified!

Add photos and videos. You’ll need: • Logo image • Header/Cover image • Photos to spotlight your business features that customers T e x a s

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consider when making purchasing decisions.

Manage and respond to customer

reviews.

Why Should I Care About My Google Business Profile?

An optimized GBP listing helps Google understand more about your business: who you are, what services/products you sell, where you’re located, your website address, and what your current customers’ experience has been like.

The benefits of Google Business Profile are threefold: 1. Increased visibility in search.

2. B etter shopping experience for buyers.

3. More traffic to your website, social channels, and your front door.

2

Build an Online Review Funnel

Word of mouth referrals have always been the world’s go-to source for finding trusted sellers, and online ratings sites are where most people turn today.

Online reviews are insanely influential.

90% of consumers read online

reviews.

88% trust online reviews as much

as personal recommendations.

86% will hesitate to purchase from a

business that has negative reviews.

Steps to building an online review funnel: 1. Systematically drive customers to one conversion funnel that routes them to the review sites you care about. (software solutions such as Grade.us provide this funnel) 2. Automatically ask, remind and guide happy customers through the funnel.

3. Recover unhappy customers before they vent online.

4. Analyze results daily for actionable insights to improve upon.

5. Engage employees in the review process. Motivate with proper training, incentives, and recognition.

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3

Build Your Social Media Profiles

Your ideal online presence starts with professional and well-optimized profiles.

Your image is just as important in the digital world as in the real world.

Online, your profile image is the first thing customers will see. Make a good impression with a professional image that isn’t too stuffy but still makes you look trustworthy and friendly.

Your “about us” section on any social network has to accomplish everything a greeting, handshake, and elevator pitch would do in person. Write every word with your prospect in mind and write in the first person, not the third. And be sure to be very clear about sharing your contact info. Include multiple options if there is room.

Take advantage of the “free real estate” that social media gives you.

Be consistent with your image and info on each platform so people will recognize you wherever they go.

Your 4 Merchandize Vehicles Online

It’s always been a top priority to display vehicles in innovative ways to attract customers to your store.

Today, those same actions need to happen online.

There are specific advertising strategies for merchandising your vehicles online using Facebook ads. Facebook has a vast network with valuable data on in-market car shoppers. When you “display” your vehicles online via Facebook ads, Facebook identifies buyers and entices them to view vehicles they are interested in.

Facebook displays only the ideal vehicles each customer wants to see and then, using remarketing tactics, drive buyers to your showroom.

Useful, High5 Create Quality, Original Content

Getting the right messages to the right customers at the right time is crucial, and it involves careful planning and skillful execution.

“Content” means everything from your website, VDPs, social media, social advertising, Google Business Profiles, online review sites, print, TV, radio, and more. Every place your business engages with a prospect requires content. Depending on where the customer is in their purchase journey, content should educate, empathize, and ultimately entice them to buy.

High-quality content does not happen without a content strategy (who, what, where, why, and when you post). The benefits of developing a content strategy include: Influences buying decisions

Improves brand equity and

reputation Earns customer loyalty

Attracts more of the right buyers

Competitive advantage

Increased leads and sales

People 6 Engage Directly (Be Social)

Yes, you really do need to be social on social media.

Instead of broadcasting the “benefits” of products and services to strangers, add the steps to attract interested buyers by engaging with them on social media.

7 1% of consumers who have had a positive experience with a business on social media are likely to recommend that business to others.

Only 19% of those who don’t get

any response are likely to recommend that business.

When comments show up, respond. When online reviews are posted, respond. Be more accessible, and you’ll notice more customers engaging.

Crush Your 2022 Sales 7 Goals with Customer Video Testimonials Is 2022 the year we finally see customer video testimonials go mainstream?

A recommendation from someone remains the most-trusted

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source of information to help car buyers decide to purchase. The web affords car shoppers many opportunities to seek recommendations: They reach out to their friends

and family on social media.

They visit Google, Yelp, and other

review sites.

They look for testimonials on the

dealership’s website.

They might even Google your

salespeople!

It’s pretty powerful to see and hear a loyal, happy customer’s feedback about their car buying experience. Prospects feel more comfortable about their purchase knowing others had a great experience.

Video testimonials are extremely compelling as influential ways to reinforce your credibility. A powerful video testimonial may even be the deciding factor that makes your deal.

Customer 8 Reduce “Friction Points”

A “friction point” is any step in the customer experience that impedes the customer from buying the product, having success with the product, or finding value in the product.

That might sound a little complex, but think of it as basically any hurdle that gets in the customer’s way.

You’re not in the business of selling things. You’re in the business of helping people buy things. The best way to help people buy the things you sell is by reducing customer friction points along the way.

There are just too many alternatives available when buyers confront friction. If you can identify and understand your customers’ pain points, it will bring you closer to them and solidify the relationship.

What are the most prominent customer friction points?

Bad website user experience and/

or lead conversion tactics Not using automation to benefit

the customer Apathetic or uninformed

salespeople

Unfavorable customer service

Not providing a self-serve knowl edge base Poor public perception and/or

reputation Negative online reviews

Allow and Encourage 9 Salespeople to Use Social Media

Digital retailing has become an integral part of dealership operations. Communicating with customers and conducting business online is here to stay, which means that salespeople need to navigate the online world as well as they do over the phone or in person.

Social Selling is a sales technique that allows salespeople to laser-target their prospecting and establish rapport through existing connections.

79% of salespeople who use social media in the sales process outperform those who don’t.

With Social Selling, you can provide more options for your customers and engage them during their purchase cycle – not just at the time they want to buy – thereby boosting your chances of making the sale.

Yourself with 10 Protect a Social Media Policy

If there’s one constant in social media, it is change. All this change means dealers should regularly assess and realign where appropriate. Do you have an employee social media policy in place for your organization?

If so, how often do you review it?

If you haven’t reviewed your social

media policy in over 6 months, now is a good time to review it.

If you don’t have an employee social media policy, NOW would be an excellent time to implement one.

Intangible assets such as digital properties, all your content, and your online reputation are better protected when there’s a companywide, written employee social media policy. Reviewing your policy on an annual basis is a best practice.

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Safeguards Compliance Course Keep Your Dealership Compliant with the FTC's Safeguards Requirements Ensure your staff knows how to protect consumer information to comply with the FTC requirements, avoid inadvertent exposure of your customer's information, government enforcement actions, lawsuits, and bad press.

Brought to you by TIADA. Powered by the Dealer Education Portal.

Visit https://www.txiada.org/on-demand Or scan the QR Code for info and registration

Only $75 for the Qualified Individual Only $49 Each for All Other Employees

April 2022

Sample policies and agreements are included at no additional charge

The course is flexible and on-demand to fit your busy schedule

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All users earn a certificate upon completion

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feature

Ultimate Guide to Blogging for Independent Dealers

by Stephen Pallas

TIADA Director of Marketing and Communications

M

ost dealers have never considered starting a blog for their website, but it can be a powerful tool for driving online search traffic and sales.

A blog might be one of the best marketing tactics you can employ at your dealership in terms of ROI. I thought it might be helpful to start with what a blog is and what it is really for. In short, a blog is a way to tell your story. As content expert Paul Colligan puts it, “your audience is at your blog to learn more about you. Make sure you give them the whole story.” The car-buying landscape has changed dramatically and has become much more digital in recent years. Dealers don’t always tell their stories to potential customers in person. Instead, the website has become one of the primary vehicles to driving sales.

The Benefits of Running a Dealership Blog

There are two primary benefits to starting, maintaining, and regularly posting dealership blog articles. The number one quantitative competitive advantage a blog gives your business is Search Engine Optimization (SEO).

Basically, Google and other search engines reward websites with higher search rankings when those websites provide consistent and valuable content to their intended audience. For dealers, this audience primarily includes local car buyers. Since Google is the number one source for consumers looking to purchase vehicles, your dealership needs to rank as highly as possible on the search engine. The truth is that consumers love blogs. In fact, “60 percent of consumers say blog posts are valuable in the early stages of the buying process,” according to the ecommerce experts at Oberlo.

The other important benefit is that a blog can help drive sales. According to marketing advisors at Demand Metric, companies with blogs produce 67% more leads on average than companies that don’t. And, according to leading online visibility platform Semrush, businesses “who utilize blogging for marketing purposes see 13 times the ROI of businesses that don’t. As we all know, car sales is a highly competitive business. A blog can showcase your leadership and expertise in the industry, demonstrate your dealership’s particular niche, and help local buyers who might feel overwhelmed about the car-buying process.

Despite these advantages, dealers can be quite apprehensive about starting a blog. They feel it can be time-consuming and not necessarily worth all the effort. Many also April 2022

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feel like they don’t have the writing skills to keep up with a long-term project like a blog for their website. This article offers specific tips on what dealers can do to deliver quality content that drives SEO and sales.

Car Factory Direct is an independent dealership in Milford, Connecticut. They have run a monthly blog on their dealership website since 2020. “We use our blog to give our customers all the relevant content to help them make the best decision,” says General Manager Armando.

Original and Valuable Content

Provide original content. You want to be careful to

avoid repurposing content you find on the internet or from automobile manufacturers in your blog articles.

Your stories are more substantial and more authoritative when they are original. Writing original content has practical benefits for SEO and sales because it shows search engines and human readers that you are an expert and a leader in your business.

The content on Car Factory Direct’s blog ranges from a consumer guide to selling their car, buying tips, and reviews of safety features on different vehicles. All their content is original and relates directly to the areas of the industry in which their dealership is directly involved. “We provide a variety of articles,” Armando says. “Helping people with their search for a vehicle is our number one priority.”

A dealership blog must provide value to the reader. One of the worst things you can do when post-

ing blog content is to offer stories that are irrelevant to your business. Maybe you had a great time snorkeling in Costa Rica over vacation, but maybe leave those stories and pictures for your friends and family. For your business, you will probably want to focus on car care, comparing one model to another, debunking common untrue stories about cars, and similar stories. Not only does this make for a much better reading experience for potential buyers; it also alerts search engines to your dealership’s areas of business. Armando emphasizes that, as an independent pre-owned dealer, his stance is always to do the right thing for his customers and help buyers find the best solution for their needs. “It builds trust with that particular customer,” he says. “Even if they don’t purchase from us directly, they will send referrals to our dealership because we have established a relationship.”

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Ensure content is relevant to your niche and your audience.

It is also not enough simply to provide content about cars and the automobile industry. You want to write about what you know, a lesson you might remember from writing classes. This makes for a much easier and quicker writing process, but it also helps guide potential buyers to what you do best. It’s also important to remember that no one knows your audience better than you do. If you primarily sell pickup trucks, I’ll bet you have a good idea of what a pickup

truck buyer’s needs are. Focus your blog on those needs and how your dealership can help address them.

Answer customer FAQs. A blog

is a fantastic place to answer frequent or interesting customer questions, especially if you know the answers to those questions like the back of your hand. For your dealership, you should keep a list of questions you receive over the phone, by email, and in person. If you can write a short article answering those questions, you’ll be surprised how much content you can

gather just from those.

According to Mike Kappel, CEO of Patriot Software, “Answering customer questions through your blog helps you kill two birds with one stone. You can answer common questions that are plaguing your customers. And, it helps you come up with actionable content that can engage others with similar questions.”

Warning! If a potential customer asks a question you have already addressed in your blog, it’s not the best idea to turn their attention to your article. Still give them the best customer service and individualized attention you would if you never had a blog.

Delivering Your Content

Add variety to who writes your articles. You can choose

.

how involved you want to be in the blogging process at your dealership.

However, it is usually a good idea to have a variety of authors contributing to the blog whenever possible.

Encouraging your sales team to write articles can be an excellent way to showcase their expertise and leadership. Suppose a salesperson writes an article that leads directly to the sale of a vehicle for that staff member. In that case, you can almost guarantee everyone else on the sales floor will be interested in writing as well. Armando uses a third-party marketing company to provide his monthly articles. “They take care of the blog, and what they do is an extension of our business philosophy.

We use the blog to engage our customers and to help them understand that there’s more to buying a car than just buying a car.”

Organize content properly on your website. While the blog will

never be the most important part of your sales or marketing, it should have a somewhat prominent place on your dealership’s website. It’s best if your blog is listed as its own menu item or as a sub-menu item underneath some other relevant content, like an “About Us” section or similar.

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You will also want to make sure your articles are similar in length and style, written in your voice (or whatever author’s voice is writing each article), and error-free. Nothing can turn off a reader more quickly than glaring or consistent grammatical errors. If your webmaster can incorporate simple and efficient content management software, make sure it is well organized.

Planning a posting schedule is critical. As with most things

in life, planning your content ahead of time will save you a ton of headaches. It will also signal to search engines and potential car buyers that you are thoughtful and organized in your content delivery.

There’s no magic bullet to determine how much content you should write or how frequently. The most important thing to consider is consistency. Try that out if you have the bandwidth and intellectual resources for a weekly blog. If once a month is more appropriate for you, that’s equally fine. Try not to post new articles every week, and then stop for six months. This can negatively affect SEO and your readers who think you are not updating your content regularly (which is why planning and scheduling ahead is so important).

Share your blog content widely.

You might feel like sharing your content in email newsletters or social media is unnecessary. Still, it can be a great way to communicate your leadership and expertise with your loyal and potential buyers. If you have a recurring newsletter, that’s a great way to share your new articles, and you should consider sharing all new content on whatever social media pages you use. People want to hear from you, and they are always looking for great ideas and insights.

Taking the First Step

Starting a blog can seem like an enormous undertaking, but don’t April 2022

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take for granted just how valuable creating original content can be for your business goals. A blog is one of the most powerful ways to lead your local search rankings and showcase your dealership’s brand to the public.

Once you take that first step, you

might be surprised how easily the ideas start flowing and how quickly the content leads to results.

You can see how Car Factory Direct publishes the content for their dealership at https://www.carfactorydirect.com/blog/.

Please Welcome Our Newest TIADA Members DEALER MEMBERS ARO Enterprises LLC Anita Ruiz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.O. Box 7774, Tyler, TX 75711 AZR Auto Group LLC Richard Olivar . . . . . . . . . . . . . . . . 7801 Confederate Park Rd, Fort Worth, TX 76108 CENTEX Cars and Trucks LLC Nathan Phillips . . . . . . 2855 E Hwy # 190, Unit A, Lampasas, TX 76550 EAN Holdings, LLC - El Paso Christen Rumsey . . . . . . . . . . . . 8000 Gateway Blvd E., El Paso, TX 79907 EP Transportation Equipment Sales Ricardo Zesati . . . . . . . . 5045 S Desert Blvd, El Paso, TX 79932 Heaglez Auto Sale RIcardo Hernandez . . . . . . . . . . . . . . . . . . . . . . . . 4119 Dappled Trl, Humble, TX 77346 Levart Motors Artem Mastyugin . . . . . . . . . . . . . . . . . . 11755 W Little York Rd., Bldg 2, Houston, TX 77041 Mid Valley Motors LLC Fidel Hernandez . . . . . . . . . . . . . . . . . 421 W Expressway 83, La Feria, TX 78559 Morales Motors, LLC Ruben Morales . . . . . . . . . . . . . . . . . . . . . . 1711 Vidaurri Avenue, Laredo, TX 78040 Otwell Enterprises Inc Jerry Otwell . . . . . . . . . . . . . . . . . . . . . . . 5202 Spencer Hwy, Pasadena, TX 77505 Texas Hot Rides Bill Westerfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1833 N I-35E, Carrollton, TX 75006 ASSOCIATE MEMBERS C&M Coaching Maggie Pugesek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.O. Box 173, Elkhorn, WI 53121 Coverlay Manufacturing James Bird . . . . . . . . . . . . . . . . . . . . 4017 Hwy 67 North, San Angelo, TX 76905 Dealer Key Solutions Nick Hoffmann . . . . . . . . . . . . . . . . . . 633 Hickory Hill Drive, Vernon Hills, IL 60061 National Lenders General Agency LLC

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Ignorance is no defense.

Know the law.

Repo and financing issues are among the most common violations found by the OCCC.

If you own a previous edition of these books from 2015 or earlier, it is recommended that you upgrade to the current editions.

Texas Automobile Repossession: A Lien Holder’s Legal Guide

TIADA Member Price: $125 non-members $175

Everything you need to know about repossessions is addressed in this book, including Notification Requirements, Post-Repo Procedures, Private Sale vs. Strict Foreclosure, Bankruptcy, PostDisposition Accounting, Tracking and Shut-off Devices, the 60% Rule and more. PLUS – includes all required forms.

Dealer Financing of Used Car Sales

TIADA Member Price: $125 non-members $175

This comprehensive book covers all aspects of the complicated world of seller-financing in Texas, including Maximum Finance Rates; Retail Installment Contracts; Contract Amendments; VIT; Repair Charges; Federal Disclosures and more.

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Attorney Michael W. Dunagan is the author of the two must-have books for every Buy-Here, Pay-Here dealer in Texas. Mr. Dunagan has been General Counsel to TIADA for over 45 years.

His law firm specializes in the representation of independent Texas car dealers.

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Available for purchase online at www.txiada.org under “Resources, Legal and Compliance” or call 512.244.6060 to order by phone.

When ordering online, login with your TIADA username and password to receive the discounted rate. All prices include shipping. Orders are shipped in 3-5 business days.

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feature

Handling Challenged Credit Calls

Featured Speaker Maggie Pugesek Owner C&M Coaching

Demonstrating Empathy

Y

ou are not human if you or someone you know hasn’t gotten themselves into a situation where they over-spent on credit cards, got ill, couldn’t pay bills, or maybe even went through a life-changing situation like divorce. The fact is, we have all been there before, a place where we just needed a little extra help to get back on track. Challenged credit customers do not want to be put down and made to feel as though they aren’t deserving of our attention, but the fact is they are treated poorly sometimes. It’s important that while you speak to these customers, you remember challenges you’ve faced and think about how others treated you.

Always be respectful to the customer, and even if we may not be able to help them, they still deserve a friendly voice on the phone and not to be treated like they are a waste of time. Things change, and when that customer’s situation does improve, you want them to remember the kindness your dealership showed them. Trust me.

What to Say

If your customer brings credit issues up first thing in the call, it’s a great spot to try to put them at ease. Always remember that unless the customer is actively going through bankruptcy, you don’t really know if you can assist them or not until they show up in person and we take the proper steps to qualify them. Many stores suggest the customer goes online and completes a credit application. I typically advise you to reserve that option only for customers who are not local. If a customer truly needs a vehicle, we should try to work with them in person to explore all options, and online does not provide that personal touch.

Start with explaining that your store helps all types of customers, folks with good and challenged credit. Let them know your goal is to do everything you can to help get them into a vehicle. Take a moment to explain that the best way to figure out how we can help is for them to be at the store in person. Remember to use your voice inflection to remain empathetic to the customer’s situation. If they tell you a story along with it, be mindful of your response. I once heard a salesperson, just out of habit, say to a customer going through a divorce, “that’s great! I’d be happy to help.”

He didn’t even realize what he had said. After you explain that we help customers in various situations, take control of April 2022

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the call and build rapport with the customer. Ask them your prequalification requirements, proof of income, valid license, and proof of residency, and move to obtain their information and offer an appointment.

If you have already established a bit of rapport with the customer, have their info, and are trying to sell an appointment, when the customer brings up this information, you should still explain you help all types of credit. The key to handling this situation is making the customer comfortable enough to set an appointment. I suggest something like, “I understand completely. Let me explain that we help customers with all types of credit: good credit and challenged credit. Our goal is to help every customer get into a vehicle! In order for us to see exactly how we can help you, we would need to have you come in so we can sit down together and see what we can do. When are you available to do that, today or tomorrow?” This explains to the customer you want to help, but they must be there in person to see exactly how that can happen. If you circle towards an appointment, you should have some momentum built and be able to secure the appointment. Again, having the customer in-store is best, as opposed to sending them to your website if they are local. Just make sure you have asked them your basic requirement questions, which helps you determine if you can help them at all.

Also, stay away from saying “bad credit.” I hear this all the time. Think about it from the customer’s perspective, how negative that sounds. Their “bad credit” hovers over their heads, like a rain cloud and follows them everywhere 41

resource guide The TIADA Website: www.txiada.org

Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.

License Renewal Certificate

TexasDealerEducation.com

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov

Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov

Texas Comptroller

800.252.1382 comptroller.texas.gov

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

they go. Instead, I always suggest saying “less than perfect or none,” or you can say “challenged credit,” but the phrase “bad credit” brings more negativity to the conversation – something we do not need! We want them to hang up feeling optimistic about the opportunity to get financed, so keep the conversation positive.

Just Remember

Keep in mind that the goal is to see how we can help.

Perspective is critical on these types of calls. I have worked with BDCs that call me upset because they offered appointments to challenged credit customers, and the sales team was upset with them for wasting their time. While I completely understand that time is money for sales, no customer should be treated this way. If you simply treat them with compassion and show them you are trying to help, you have no idea how many referrals that customer may give you or if they will return to you when their situation is improved. Having the customer in-store does give you the best grip on the situation and allows you to explore all opportunities. Don’t think of customers as credit scores; think of them as the people they are, and remember that credit challenges can happen to anyone. How do you want to be treated if it happens to you?

Maggie will be a featured speaker at the TIADA Conference & Expo on Monday, July 25, 2022. To register for this year’s conference, visit www.tiadaannualconference.com.

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April 2022

ATTENTION STUDENTS!!!

$1,000

Marvin Norwood Scholarship DEADLINE

May 13, 2022 {Applications and/or any required documents received after May 13, 2022 will NOT be accepted.}

SCHOLARSHIP APPLICATION Date: Name:

DOB:

Address: City:

Criteria and Guidelines 1. Each applicant must be entering or currently enrolled in an accredited college or a trade school. Proof of enrollment must be included with this application.

State:

Email: (You will receive an email confirmation of receipt.)

Telephone Number: High School Last Attended:

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

Address:

3. Each applicant must complete the application form.

Date of Graduation:

4. A copy of high school transcripts is required for applicants who are college freshmen. If applicant is currently enrolled, provide college transcripts with official university imprint.

Other High Schools Attended (Names and Addresses):

5. Provide a detailed description of participation in any academic, honorary, civic or extracurricular activities in college. In addition, a detailed description of high school activities is required from college freshmen along with a college acceptance letter.

6. Compose an essay of no more than two typed, double-spaced 8 ½” x 11” pages. The essay should discuss the applicant’s relationship with their TIADA scholarship sponsor, current education goals and future aspirations as it relates to the applicant’s subject/training area.

7. Provide at least two (but no more than three) letters of recommendation, no older than one year, from college/high school faculty, employers or other appropriate sources (not related).

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Zip:

City:

State:

Zip:

Dates of Attendance:

College(s) you are attending or plan to attend for admission:

Parents Name(s): TIADA Member Name (Sponsor): TIADA Member Company Name: TIADA Member Address: City:

State:

Zip:

Sponsor Signature Should you have any questions, please contact TIADA at 512.244.6060. Please return the completed application with all required documents to: TIADA Attention: Scholarship Applications 9951 Anderson Mill Rd. Suite 101, Austin, TX 78750

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Keeping Your BHPH Dealership Legal & Compliant Dealer Academy Presenter

Michael W. Dunagan,

TIADA General Counsel, author of Dealer Financing of Used Car Sales and Texas Automobile Repossession: A Lien Holder’s Legal Guide.

Time

9:00am - 4:00pm

Cost

$249 Members, Each Additional $199

(must be from same dealership)

$498 Non-members

Sponsored by:

One of the quickest ways to ruin a dealership’s profit margin is to be hit with a fine from a regulatory agency, or to lose a lawsuit filed by a customer. This seminar will focus on the practical side of compliance that understands you have a business to run — and you want to run it right.

This seminar from TIADA attorney Michael W. Dunagan is the final answer in BHPH compliance. Mike speaks dealer, and with 45 years of experience representing hundreds of BHPH dealers, he knows your business inside and out.

Attend this workshop and learn all about: • Properly handling f inancing • How to prepare for (and on repairs survive) an OCCC exam • Real-life DTPA court cases • What to do when the Bankruptcy Notice arrives • Body shops, mechanics, towing and storage issues • Repossessions: f rom A to Z • Specif ic lien-protection steps • TxDMV Enforcement – Title Management Issues • Federal regulations affecting BHPH dealers • Most common advertising violations • Alternatives to traditional insurance • Your right to insurance proceeds • Most common OCCC customer complaints • Using the courts to get your car back • How to respond to an attorney demand letter • Procedures to stay off the CFPB’s radar • Dealer issues in Comptroller audits • Techniques to avoid consumer lawsuits

Monday, May 2, 2022 Arlington, Texas Sheraton Arlington Hotel 1500 Convention Center Drive | Arlington, TX 76011 817.261.8200

To register visit 44

Txiada.org or by phone at 512.244.6060.

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April 2022

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behind the wheel Goal Number Two

T

his month we will dive into supporting goal number two as we continue exploring the association’s new five-year strategic plan. As you already know, used car dealers are a heavily regulated industry. Our board is committed to making sure we are playing an active role with legislators and policy makers and that the independent dealer’s voice is being heard.

We also know we are most effective when you are involved in that process through grassroots lobbying, and that is the focus of supporting goal number two.

Goal #2 — Increase member engagement in legislative efforts by 10% annually.

STRATEGIC PLAN:

By Year-End FY’22

C reate a new INDEPAC donation form that is more presentable.

D evelop an INDEPAC match for conference efforts to raise funds.

P romote the monthly donors through TIADA platforms.

I ncrease legislative exposure at the conference.

D irect mail piece highlighting legislative efforts.

R evise INDEPAC bylaws to establish a 15-member board.

D evelop a TIADA Legislative Day to occur during the interim.

E stablish a benchmark for key-person network, INDEPAC donors, IDEA Meetings, Day at the Capitol, and a legislative event during a nonsession year.

H ost 10 Independent Dealers for Education and Advocacy (IDEA) meetings.

By Year-End FY’23

I ncrease the size of INDEPAC board to 15 members and ensure geographic diversity.

46

Jeff Martin by

TIADA EXECUTIVE DIRECTOR

I nvest in marketing and promoting efforts at Legislative Day. E valuate Mail Drop from FY’ 22.

E valuate budget for promoting awareness of TIADA’s legislative engagement and adjust accordingly.

By Year-End FY’24

I ncrease the number of IDEA meetings to 15.

D evelop legislative talking points for chapter and town hall meetings.

E valuate staffing needs for member legislative engagement.

D evelop a plan with membership to increase member geographic diversity to focus on critical members of the Legislature.

E valuate the current programs and determine if those programs are increasing our keyperson network.

H ost a legislative event in Austin in conjunction with the April board meeting.

By Year-End FY’25

I ncrease the number of IDEA meetings to 20.

I ncrease the total number of associate members contributing to INDEPAC. C reate one new engagement program focused on advocacy.

I ncrease sponsorship at TIADA Day at the Capitol.

By Year-End FY’26

E valuate IDEA meetings and determine if we should increase the number of current staff.

D evelop a plan to move the legislative event around the state during the interim.

Next issue we will discuss supporting goal number three.

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