Texas Dealer December 2017

In This Issue: – Texas Comptroller on New Exemptions and Changes for Motor Vehicle Taxes – Maximum Finance Charge Rates for 2018 – TxDMV Enforcement Division Update – The OCCC 2017 Regulatory Update

1,000s OF OFF-LEASE AND RENTAL VEHICLES AVAILABLE WITH

JUST ONE CLICK

L

og

in

to

co .

A S DE

m

an

d

ck i l c

A

© 2017 ADESA, INC.

Lower buy fees CPO-eligible inventory Central processing and post-sale support Extended arbitration with CarsArrive transport ADESA Assurance 30-day guarantee option eligible

• • • • •

ADESA.com/off-lease ADESA is a proud business partner of the Texas Independent Automobile Dealers Association ( TIADA ).

2018 TIADA Board of Directors PRESIDENT Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: greg@dixonmotorcars.com PRESIDENT ELECT Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: jmsabillon@mitierraautosales.com CHAIRWOMAN OF THE BOARD Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd.

Dallas, TX 75229 Office: 214.352.9282 / Fax: 214.352.8227 Email: cicoauto@verizon.net SECRETARY Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net TREASURER Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 Office: 817.703.7973 Email: mjones@mcmcauto.com VICE PRESIDENT, WEST TEXAS (REGION 1) Paul Scott/Fiesta Motors – Lubbock 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 Email: pscott@gofiestamotors.com VICE PRESIDENT, FORT WORTH (REGION 2) Eddie Hale/Neighborhood Autos 1717 US 287 Decatur, TX 76234 Office: 940.539.2272 Email: ehale@neighborhoodautos.com VICE PRESIDENT, DALLAS (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 Office: 972.780.0001 Email: greg@autoliquidators.net 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 Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 Office: 512.280.5333 Email: bob@texasautocenter.net VICE PRESIDENT, SOUTH TEXAS (REGION 6) Armando Villarreal/McAllen Auto Sales 4215 S. 23rd Street McAllen, TX 78503 Office: 956.668.8088 Email: armando@mcallenautosales.net VICE PRESIDENT AT LARGE Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 Office: 512.828.0001 Email: greg@risingfastmotorcars.com VICE PRESIDENT AT LARGE Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 Office: 281.354.3355 Email: aokautosales@embarqmail.com 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

Volume XVII

/ I s s u e 12

/ D e c e m b e r 2 017

texasDealer contents

4 Officers’ Message

by Juan Sabillón, TIADA President Elect

9 TxDMV Moving eTAG System into webDEALER 11 Legal Corner: Failure to Report Cash Transactions Can Lead to Money-Laundering Charges

by Michael W. Dunagan

14 Am I in Compliance?

by David George 16 Upcoming Events 17 Local Chapters 20 On The Cover: Annual Compliance Quiz 2017 23 Office of Consumer Credit Commissioner — Regulatory Update

by Huffman Lewis

27 2017 TIADA Inventory Resource Directory 35 Look Back — Plan Ahead: New Exemptions and Other Changes for Motor Vehicle Taxes

by Robert Baker

37 Maximum Finance Charge Rates for 2018

by Michael W. Dunagan

39 TIADA Member Application 40 2017 VIP Auction Card Directory 43 Board of Directors Meeting Minutes 45 New Members 46 Behind the Wheel

by Jeff Martin

What’s happening at w w w . t x i a d a . o r g ?

DID YOU KNOW... You can now register for our next online Virtual Workshop: Connecting with Subprime Car Buyers on Facebook? Simply go to txiada.org, navigate to the Education page under Resources and select the course.

Then follow the instructions to register.

The Editor of the Texas Dealer magazine is Michael Spurlin, Social and Communications Director of TIADA. To change your address for subscription and/or for other TIADA products, call the TIADA state office at 512.244.6060 or fax 512.244.6218. E-mail: info@txiada.org. New Membership/Subscriptions: If you are a member of TIADA, you may receive this magazine free of charge. Membership year runs from Jan 1 to Dec 31. Back issues are available for $20 each subject to availability. Send a check or money order, along with your name and mailing address to TEXAS DEALER, Attn: Back Issues, 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750. Sorry, no billing. Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

officers’ message

by Juan

SabillĂłn

Create or Renew Your Company Culture

W

e all know that the scorecard of any business is the profit it produces. Without profit, we cannot take care of our employees and families or contribute to the betterment of our communities.

The question is, how do we balance the pursuit of profit and personal character? How do we find a balance by applying principals to our business?

As business owners and operators, we need to take time to let our employees know what our goals are and how we are going to reach those goals. The attitudes and actions of the management team will determine company conduct, good or bad. That is why it is so important to have a good group of employees committed and energized by their peers. They will be less likely to give up or be discouraged. It works in our business life as well as in our personal relationships. When you are fully committed, you see strange and unusual things happen that otherwise would not. I would say this is one of the keys to success. When you have a team fully committed you are likely to succeed and grow.

We should strive to have a good, loving culture in our dealerships where employees serve each other and our customers. The first person in your organization that needs to be committed to this culture is YOU. Whatever culture you establish will have a direct impact on your employees. We are responsible for creating a culture that sets, expects and rewards high standards and

Mi Tierra Auto Sales (Houston) TIADA PRESIDENT ELECT

performance. Additionally, we as managers and operators are responsible for creating and building long-term relationships with our customers to be successful in business.

We need to do more than just care about our customers.

The most important decision we make at the dealership is selecting managers who care about others, who can motivate their teams and who understand your culture and how to run a business. They are the ones meeting customers and selling our dealership and cars. We expect our relationship with our manager to last a long time. Our manager(s) have to be able to communicate a message of quality to the employees or customers. No matter what the content of the message, they have to be a positive influence on all they come in contact with at the organization.

Anyone can open a car dealership. All it takes is money. Keeping it open is the challenge. I invite you to challenge yourself and create or renew the culture in your dealership. Be kind to the customers and give them a product that they are pleased with. Do this, and they will come back.

We gradually become part of those people we associate with, whether good or bad. If you want to be a great businessman, you need to associate with other great businessmen. You have taken that step by becoming a TIADA member. Now pass what you have learned down to your employees and customers.

If you want to be a great businessman, you need to associate with other great businessmen.

4

T e x a s

D e a l e r

December 2017

Dealer Academy VIRTUAL

WORKSHOP

SERIES

Connecting with Subprime Car Buyers on Facebook A virtual workshop with Andrew Street, CEO, Dealer OMG and Partner, Four Kicks Marketing.

Facebook is nothing new to dealers. The cost to reach a shopper with ads has fallen to around one cent. With Facebook’s massive, captivated audiences (2 Billion people a month browsing their news feed an average of 18 times per day), dealers have leveraged paid ads to get in front of local car shoppers.

Now, through partnerships with Oracle and TransUnion, advertisers are able to reach people based on their credit score. Dealers can layer in-market audiences with subprime buyers to connect with local subprime intenders in their newsfeed. Andrew Street with Dealer OMG will show you how in this workshop.

After registering, you will receive a confirmation email containing information about joining the webinar.

Wednesday, January 10, 2018

TIADA texas independent automobile dealers association

TIADA texas independent automobile dealers association

Register online at: w w w . t x i a d a . o r g /e d u c a t i o n

Texas Independent Automobile Dealers Association

11:00 a.m. - 12:00 noon $49 TIADA Members

8

T e x a s

D e a l e r

December 2017

T

feature TxDMV Moving eTAG System into webDEALER

he Texas Department of Motor Vehicles (TxDMV) is excited to unveil the latest in a series of system enhancements for our dealer community. This month TxDMV will move the eTAG system (the system used for Buyer Tags) into the webDEALER application (the online title application system) in an effort to improve reliability and functionality.

TxDMV has designed this change to be as seamless as possible for users.

The department understands that not all eTAG users work in webDEALER, so eTAG users will not need a webDEALER login to access the new eTAG system. Instead, all eTAG users will log in to webDEALER with their current eTAG username and password.

The integration of eTAG into webDEALER will result in even greater convenience for existing webDEALER users. Users who are set up in both eTAG and webDEALER will now have one stop for issuing Buyer Tags and creating title applications. They will simply log in using their current username and password and have access to eTAG and electronic title application submission. This feature eliminates the need for users who work in both systems to log in to each one separately. In addition, information used to issue a Buyer Tag can be used to submit a title application in webDEALER. This will eliminate the entry of duplicate information.

Aside from this access change, eTAG users will also notice a design change for all tags issued through the system.

These changes are intended to enhance the security of the tags. Additionally, the new system will allow Buyer Tags for out of state purchasers to be paid for online by credit card.

TxDMV hosted webinars (Nov. 28, 2017 – Dec. 7, 2017) to familiarize users with these changes and address any questions or concerns they had.

December 2017

T e x a s

D e a l e r

If you were unable to participate in one of the webinars, recordings are available at http://www.txdmv.gov/ dealers so you can tune in when it’s convenient for you.

These changes are the latest example of TxDMV’s commitment to modernizing and streamlining processes that help us meet the

expectations of the customers and the industries we serve. TxDMV thanks you for your continued support and looks forward to providing you even more efficiencies in the future.

For more information on webDEALER visit www.TxDMV.gov/dealers.

.

9

EPI-TIADAhalf_Dec2017.pdf

1

11/6/17

11:28 AM

Every Wednesday at 10:00am

Join Us Weekly for the Best Dealer Consignment and Fleet Lineup in the Region, with weekly Inop video sales featuring wrecks & non-runners!

C

M

Y

CM

MY

CY

EL PASO INDEPENDENT AUTO AUCTION

CMY

K

An XLerate Group Auction

EPI EL PASO | 7930 Artcraft Road, El Paso, TX 79932 | 915.587.6700 | epiaa.com Find out about our family of auctions at XLerateGroup.com

EL PASO

INDEPENDENT

10

T e x a s

D e a l e r

December 2017

legal corner Failure to Report Cash Transactions Can Lead to Money-Laundering Charges In 2011, a Texas car dealer is

convicted and sentenced to 188 months in federal prison for his role in a money-laundering scheme involving the sale and purchase of vehicles with large amounts of cash by alleged drug dealers and other criminals.

In 2012, a Texas car lot is shut

down by a task force involving federal, state, and local police making allegations of money laundering involving the sale of vehicles to a purported drug dealer for cash.

In May, 2014, two car dealers in

Phoenix are charged by federal prosecutors of being involved in money-laundering scheme when they sold vehicles to undercover agents posing as drug dealers.

In November, 2017, a South

Texas bank is assessed a $2 million civil money penalty for not adequately assessing potential money laundering violations.

O

ne of the realities of the car business, especially at the buy-here-pay-here level, is that many customers don’t have bank accounts. Instead of receiving payment for vehicles through traditional banking instruments, most dealers have to deal with cash.

The legitimate use of cash by those who for whatever reason don’t use banks has run into conflict with the federal government’s efforts to monitor criminal activities by following money trails. But unlike regular checks written on a bank account, cash (or cash equivalents, as will

December 2017

T e x a s

D e a l e r

be discussed later) does not leave a paper trail that would make it possible to trace the source of funds. As a result of the finding that drug dealers and smugglers used cash in their transactions, and needed to “launder” the large amounts of cash through seemingly legal activities, the government enacted the Financial Crimes Enforcement Network (FinCEN).

Included in the legislation is a requirement that anyone in a trade or business who receives certain large amounts of cash must report the fact to the Internal Revenue Service.

After the terrorist attacks of September, 2001, Congress enacted the USA Patriot Act of 2001 that increased the scope of the cash reporting rules to help trace funds used to finance terrorism.

For one Dallas dealer, the seriousness of this law became a reality when local police, state and federal agents “raided” his business, closed off access to the lot and confiscated his computers and records, effectively shutting down his office and damaging his business for several days. The officers carrying out the raid, who were armed with a search warrant, refused to tell him why he was the subject of such drastic tactics.

by Michael W. Dunagan TIADA GENERAL COUNSEL

The legitimate use of cash by those who for whatever reason don’t use banks has run into conflict with the federal government’s efforts to monitor criminal activities by following money trails.

Later, the dealer found out that a prior “sale” had been to an undercover officer who paid for a vehicle with over $10,000 cash. The police assumed that the dealer did not report the cash payment as required

by FinCEN, and would thus be liable for civil and criminal penalties.

Thankfully, the dealer had in fact filed an IRS Form 8300. The dealer’s property was returned without an apology by the obviously disappointed officers.

FinCEN provides that any person (person is defined as an individual, company, corporation, partnership of other business entity) in a trade or business who receives more than $10,000 in cash in a single transaction, or a series of related transactions, must fill out an IRS form 8300, reporting the identity of the person paying with cash, and send the form 11

to the IRS. The form must be filed within 15 days of the receipt of the cash.

With regard to the acceptance of payments in coin or currency, reporting is required if: (1) the cash payment is a lump sum exceeding $10,000; or (2) i nstallments or other payments of cash received within one year of the initial payment total $10,000.

In addition to currency, the rules also include in the definition of cash certain cash equivalents such as cashier’s checks, bank drafts, traveler’s checks or money orders. These instruments often can’t be traced to the source of the funds they were purchased with. The acceptance of one of these instruments in full or partial payment for a vehicle (other than as a regular payment on an installment contract) is reportable if: (1) the face amount of the instrument is $10,000 or less (if the face amount is more than $10,000 and was paid for by currency, the issuing institution was required to report that transaction); and (2) a vehicle (or boat or other consumer-use personal property) purchased had a sales price of more than $10,000.

An exception to the reporting rules on cashier’s checks, bank drafts, traveler’s checks and money orders

BLACK GOLD LANE Featuring Gold & Silver Certified Units

Want to run your cars in this lane?

Contact our Sales Team @ (405) 947-2886 Spots fill up fast!

1028 S. Portland Oklahoma City, OK 73108 www.daaokc.com

12

applies if the instrument is the obvious proceeds of a bank loan, or if one is given as a regular installment payment on a retail installment agreement or lease.

A report should also be filed if it appears that a purchaser is trying to avoid the reporting of a cash transaction by structuring payments that fall short of the $10,000 threshold. Banks are required to report to the IRS any transactions that involve an amount less than $10,000, if it appears the bank customer is intentionally keeping the deposit under $10,000 to avoid reporting.

Such transactions are referred to as “structuring.” A former Speaker of the U.S. House of Representatives spent 13 months in federal prison after being found guilty of “structuring” bank transactions to circumvent federal cash reporting laws, even though none of the individual transactions exceeded the $10,000 threshold.

Form 8300s are to be mailed to the IRS at the address that appears on the form. Copies should be kept for five years. The rules require that written or electronic notices be sent to buyers informing them that the Form 8300 was filed. These notices should be sent before January 31 of the year following the year in which the Form 8300 was filed.

Dealers should be aware that banks are also reporting cash deposits to the IRS. This means that when a dealer deposits large amounts of cash, the IRS will probably be informed. One dealer in South Texas recently found that he had drawn the attention of the IRS because several of his deposits contained large amounts of cash, although each was under $10,000.

Congress obviously intended the law to be taken seriously. The simple inadvertent failure to file might lead to an audit and an assessment of penalties. But a finding of intentionally failing to file a form 8300 can include a fine of $250,000 ($500,000 for corporations) and/or five years in prison. Under no circumstances should an agreement be made with a buyer to not report applicable cash transactions.

Some dealer management software packages offer cumulative cash payment monitoring and Form 8300 printing.

While the rules governing filing Form 8300 are complicated and confusing (like the IRS Code, FinCEN contains rules, exceptions to the rules, and exceptions to the exceptions), a good faith effort to comply should be made.

Form 8300 can be obtained from banks or can be downloaded, along with detailed instructions, from the IRS website. IRS Publication 1544, which provides a detailed explanation of the reporting requirements, including some specific references to car transactions, is available at the IRS site (www.irs.gov).

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for 40 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.

T e x a s

D e a l e r

December 2017

feature Am I in Compliance?

by David George Chief Investigator, Enforcement Division,Texas Department of Motor Vehicles

T

he Enforcement Division knows that licensed dealers are interested in knowing if they are in compliance with current statutes and rules that are regulated by the Texas Department of Motor Vehicles (TxDMV).

In an effort to further educate and assist licensed dealers, the Enforcement Division holds monthly dealer training seminars throughout the state of Texas to keep dealers up to date on any changes. The Enforcement Division has also developed a dealership checklist to assist both new and established dealers in conducting a self-audit to better ensure that their dealerships are in compliance.

The checklist is broken down into seven sections for ease of use: Advertising, Premises, Records, Tags/Metal Plates, Vehicles on Display, Dealer Financing, and Sales and Inventory Tax. Each section addresses key areas where common violations occur. Dealers can reference the sections that pertain to their specific business.

The first category involves the main factors that should be taken into consideration when advertising new and used motor vehicles. It makes the recommendation to review the current advertising rules in their entirety, and then points to specific areas to review where Enforcement sees the most common violations. The most misunderstood advertising rule for used car dealers is that it is a violation of department rule to advertise a savings claim or discount offer on a used motor vehicle.

The Dealership Premises section focuses on the dealer’s physical location. There are a number of items a dealer must ensure are present at the dealership location prior to starting business, and there are additional considerations that dealers should keep in mind once the business is up and running. Topics in this section range from posting the required business hours at the dealership location to displaying the dealer license in the business office. The items cited in this section are fairly easy to comply with, yet many dealers fail to do things as simple as posting a ‘be back’ sign when they are away from the office during posted business hours.

The next area covers the requirement for all dealers to maintain complete sales records. Conversations with dealers who have attended dealer training seminars have revealed a general lack of knowledge concerning the

14

specific records that must be maintained in connection with a sale. Many dealers are not aware of the requirement to maintain a copy of the Application for Texas Certificate of Title, Form 130U, in the sales file. Dealers usually submit the document along with the title and forget to make a copy to add to their dealership records. Another common error is making a copy of the properly reassigned title before it too is surrendered to the state.

Proper use of temporary tags and metal plates is next, with an emphasis on reminding dealers not to share user IDs and passwords, and on being able to account for all temporary tags and metal dealer plates.

I personally recommend that all dealers account for all of their plates and temporary tags at the close of each business day. Missing temporary tags need to be voided, and lost or stolen metal dealer plates need to be reported to local law enforcement and the TxDMV. Moving on to the section pertaining to vehicles on display, dealers are reminded that they must be in compliance with the federal law that mandates all used cars and light trucks have the proper Federal Trade Commission Buyers Guide displayed on all vehicles offered for sale, and that franchise dealers have the Monroney sticker displayed on all new vehicles offered for sale. This section also reminds dealers of the notice requirement for rebuilt salvage vehicles being offered for sale on the dealer’s lot.

The checklist also includes a short section for dealers who possess a financing license issued by the Office of Consumer Credit Commissioner, or dealers who may be pondering whether they would like to begin financing vehicles.

Finally, the last section reminds dealers of their annual declaration and monthly report filing requirements for vehicle inventory tax and the collection of motor vehicle sales tax for qualifying retail sales. This section is especially important as tax authorities are required to file complaints with the TxDMV for failure to file the required annual declaration and monthly reports.

Following this checklist will assist dealers in identifying where corrections need to be made. I have received positive feedback from dealers who have used the checklist. Many have expressed how valuable the tool T e x a s

D e a l e r

December 2017

was and how it aided them in avoiding possible violations of department rule when they were inspected by the TxDMV, the State Comptroller of Public Accounts, or the Office of the Consumer Credit Commissioner.

So, if you have any doubts, take out your checklist and make sure you’re in compliance.

The Enforcement Division of the Texas Department of Motor Vehicles (TxDMV) knows that licensed dealers are interested in assisting customers and complying with business regulations. Many complaints received by the division could have been avoided if the dealer had more information concerning the rules and regulations that pertain to license holders. In an effort to further educate and assist licensed dealers, the Enforcement Division has prepared the below checklist to be used for the benefit of dealers and to help keep dealerships compliant with state and federal laws.

This checklist is provided as a service for your own use. You do not have to return the document to anyone.

We hope that you will find it beneficial. Here are some suggestions for use of the checklist: Inspect displayed vehicles and compare them against

the requirements listed in each section listed below.

Be honest with yourself and pretend you are work ing for the TxDMV. Look at your dealership through the eyes of an investigator. If you are currently doing what is required, add a check mark. If you are insufficient in any area, add an ‘X’ instead of a check mark.

Remove license plates and registration stickers from

vehicles being displayed for sale.

This list is not all-inclusive. You are responsible for be ing familiar with and complying with all of the laws and rules applicable to your wholesale or retail dealership.

If you have questions, feel free to call the Enforcement Division at 800-687-7846.

Dealership Check List ADVERTISING ____ Review the Advertising Rules when drafting the dealership’s advertisements. ____ When the price of a vehicle is advertised, you disclose the model year, make and model line and style or model designation of the vehicle and whether the vehicle is a used, a demonstrator or a factory executive or official vehicle. ____ The only charges excluded from the advertised price are the tax, title, license and other fees prescribed by law.

____ Y ou never use a lowest price claim, best price claim, best deal claim, dealer’s cost claim, or invoice price claim or other similar superlative claims in your dealership’s advertisements. ____ Y ou advertise a dealer discount only on new motor vehicles and then only from the manufacturer’s, distributor’s, or converter’s suggested retail price. ____ Y ou never advertise a savings claim or discount offer on used motor vehicles. ____ Y ou always identify your dealership’s used vehicles as either “used” or “pre-owned”.

DEALERSHIP PREMISES ____ The business sign contains the licensed dealer’s business name in at least six-inch high letters and is permanently mounted at your licensed business address. ____ Vehicles are not parked on a right-of-way, public easement, or driveway in the front or side of your business lot. ____ The premises has at least five (5) display spaces for the dealer’s inventory. ____ Business Hours are clearly posted at the main entrance of the licensed premises and show the office is open at least four (4) consecutive hours on at least four (4) days per week. ____ If a wholesale dealer, business hours are clearly posted at the main entrance of the licensed premises and show the office is open at least two (2) consecutive hours on at least two (2) consecutive days per week.

December 2017

T e x a s

D e a l e r

____ The dealer or an employee that has access to business records is always present during posted business hours or has displayed be back sign with date and time of return. ____ There is a business telephone number listed in the licensed dealer’s business name for customers to contact the dealer. ____ The business telephone number is answered by answering service, the dealer, an employee or answering machine Monday–Friday between 8am and 5pm. ____ The office has a separate desk, two (2) chairs for each dealer. ____ The office is not located in a residence, apartment, hotel, motel, rooming house. ____ If a salvage dealer license is also obtained by dealer, salvage vehicles displayed for sale within the dealer’s inventory are clearly marked with the required notice for the customer.

15

Dealership Premises

Upcoming Events TIADA DEALER ACADEMY Online Registration available at www.txiada.org

January 2018 1 0 Connecting with Subprime

Car Buyers on Facebook Online

2 5 Reporting to the Credit Bureaus A Practical Approach for Dealers Online March 2018 8 Uncommon Leadership: The

Challenge of Becoming Remarkable Online

2 6 Collect the Cash, Not the Car San Antonio, TX OTHER TIADA EVENTS January 2018 1 5 Board of Directors Meeting

Austin, TX

continued

____ The dealership premises meets all local zoning ordinances and deed restrictions. ____ The physical address of the office has a recognized postal address or capable of receiving U.S. mail. ____ Th e office is located in a building with connecting exterior walls on all sides. ____ The retail dealer office shall not exceed four (4) dealers housed in the same structure. ____ The wholesale dealer office shall not exceed eight (8) dealers housed in the same structure. ____ The dealer license, and OCCC license, if applicable, is clearly displayed in the office for public view. ____ The dealership premises, if open after sundown, is adequately lighted for inspection of inventory by prospective customers.

RECORDS ____ The dealership keeps sales records for the last 48 months, 13 months on premises and 35 months off-site but within easy access. ____ All originals (or copies) of sales records for the last 13 months are on the licensed premises and available for unannounced inspection by a representative of the TxDMV. ____ Sales records contain copies of all documents pertinent to the vehicle and include, at a minimum MCOs or properly assigned titles (front and back); title applications (Form 130U); work-up sheets; factory invoices; sales contracts, retail installment agreements; buyer’s contract, bill of sale; waivers; copies of Buyers Guide, title receipt (Form VTR-500), customer-signed County of Issuance forms (VTR-136), credit application (if Applicable), written acknowledgement of rebuilt salvage vehicle (if applicable) and names and addresses of buyer, seller and any other agreements. ____ There is a consignment contract in your possession for every vehicle you have consigned from another person. Note: Licensed dealers cannot consign to another licensed dealer. ____ Either you or your floor planner has the original title. At a minimum a legible copy of the front and back of the title for every vehicle on the dealership lot. ____ Your dealership has taken assignment of all titles in your possession, leaving no “open” titles in your records. ____ If there is a lien listed on the title, it has been paid and the lien release obtained. ____ Titles to sold vehicles are transferred to the customer within the time periods proscribed by state law. ____ The odometers on all vehicles in inventory have been checked and recorded if not exempted by law to ensure the correct mileage is captured. ____ The VIN number of all vehicles has been checked against the title. ____ If your records are computerized they must be able to be viewed at the licensed location and copies provided if requested.

TAGS AND METAL PLATES ____ All your Internet-down e-tags, log-in and password information and metal plates are kept in a secure location. Do not share user ID and passwords. Set up additional employees as sub users. ____ All vehicles displaying dealer metal plates are in the dealer inventory. ____ All vehicles displaying metal plates have a current inspection and the title is assigned or registered in the dealership name.

16

T e x a s

D e a l e r

December 2017

____ The dealership keeps a log of all metal plates issued to it that identifies the plate number; the make of the vehicle; the vehicle’s VIN; and the name of the person in control of the vehicle. ____ The metal plates are displayed in the rear license plate holder. ____ The dealer e- tags are used only for demo drives, loaners and to transport vehicles for repair or reconditioning, or to and from the auction. They cannot be used for personal use. ____ Temporary dealer e-tags are only used on vehicles in the dealer’s inventory. ____ All retail sales are reported into the dealer’s e-tag account generating a buyer tag number. Collect official $5 buyer tag fee and remit in accordance with the law. ____ All metal plates and registration stickers from previous owners are immediately removed from all vehicles prior to display for sale. ____ All vehicles sold have a current inspection before a buyer’s tag is displayed on the vehicle. Exception would be if the retail sale was tax exempt, then no inspection is required for the out of state sale.

(Includes Export Sales) ____ You ask every person who sells or trades in a vehicle to you if they wish to keep their plates. ____ You check the TxDMV website regularly for updates on E-tag rules and announcements. ____ All information on Internet tags is filled out with a black pen and is legible. ____ All e-tags are secured to the vehicle in such a way to be immovable, protected from the elements and clearly visible at all times. ____ Temporary tags are placed in the rear license holder and not in the rear view window. ____ You keep an accurate and current log showing where your metal plates are. ____ Recommend a daily inventory of all dealer e-tags to identify if any have been lost or stolen.

VEHICLES ON DISPLAY LOT ____ All used cars and light trucks (GVW 10,000 pounds or less) being offered for sale have buyer’s guide posted prominently. ____ All new vehicles displayed on franchised dealer’s lot have a manufacturer’s Monroney label. Used vehicles have the FTC Buyers Guide in a clear and conspicuous place in or on the vehicle. ____ All license plates have been removed from displayed used vehicles. ____ If sharing a location with another dealer each dealer’s inventory must be separated, and vehicles are marked to identify which dealer owns the vehicles being offered for sale. ____ You prohibit parking or displaying vehicles on the right-of-way in front or on the side of your licensed lot. ____ Required notice displayed on all vehicle being offered for sale that have previously been issued a salvage title, have been rebuilt, and have been issued a branded title.

DEALER FINANCING ____ If you sell vehicles on credit or arrange credit with third party lenders for customers, (Even if there is only one deferred payment), you are licensed with the Office of Consumer Credit Commissioner.

December 2017

T e x a s

D e a l e r

Local Chapters VICTORIA Billy Jurkash Northpoint Auto Sales, Inc. 361.655.9191 npas@att.net Meeting – 1st Monday (Monthly) FORT WORTH Mark Jones MCMC 817.703.7973 mjones@mcmcauto.com Meeting – 4th Thursday of Jan–May and Sep–Oct DALLAS COUNTY Eddie Hale Neighborhood Autos 940.539.2272 ehale@neighborhoodautos.com Meetings as needed/TBD HOUSTON Rick Maroney Maroney Auto Sales 713.691.3800 rmaroney@usa.net Meeting – 2nd Tuesday (Monthly) SAN ANTONIO Robert Beck Stop N’ Drive Motors 210.432.1101 stopdrive@texas.net Meetings quarterly (dates announced at www.txiada.org) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 17

Dealership Financing

continued

____ If you accept any deferred payments after a vehicle has been delivered to a purchaser, whether or not you charge interest, you record the transaction on a legally sufficient retail installment contract. ____ You do not repossess vehicles unless you have a written contract with the purchaser that gives you a perfected security interest in the vehicle.

____ I f you repossess a vehicle because a customer defaulted on a loan, you give the customer proper notice and an opportunity to redeem before you sell the vehicle to another person. ____ I f you sell a repossessed vehicle for more money than the original purchaser owes you (after the reasonable costs of repossession and sale), you refund that profit to the original purchaser.

SALES TAX AND INVENTORY TAX ____ Did you file an annual Vehicle Inventory Tax (VIT) Declaration with the County Chief Appraiser within 30 days of being licensed? ____ Do you file original monthly VIT statements with the County Tax Office (TAC) and a copy with the County Chief Appraiser? (Recommend keeping a copy for your records) ____ After the first partial year of business, did you file,

by February 1st of each year in business, an Annual Declaration covering sales for the previous year? ____ Do you file Monthly VIT statements and an annual Declaration, regardless of whether any vehicles were sold? ____ Do you collect 6.25% sales taxes on all cash retail sales? (If applicable)

____ D o you transfer title and remit sales tax as required by law? ____ Do you have the consumer sign a Sales Tax Exemption Certificate for Vehicles Taken Out of State when they purchase a vehicle that is to be transported and titled outside the state of Texas and send a copy to the comptroller? ____ I f you sell to a person who resides out-of-country; do you stamp the title “FOR EXPORT ONLY”? ____ D o you have a person sign a Vehicle Sales Tax Resale Certificate, when you sell a vehicle wholesale to another licensed dealer?

Email comments or suggestions for this checklist to david.george@txdmv.gov.

SPECIALIZING IN THE INSURANCE NEEDS OF THE TEXAS USED CAR DEALER FOR OVER 30 YEARS

(800) 727-7124 • Garage Liability • Dealers Open Lot • Dealer Bonds

• Dealers E&O Coverage • Garagekeepers • Workers Compensation

Contact Mike Pool, John Mahaffey, Bret Jones or Travis Williams for a competitive quote. m.pool@teiinsurance.com • j.mahaffey@teiinsurance.com • bret@teiinsurance.com • t.williams@teiinsurance.com P.O. Box 850746 • Mesquite, TX 75185 • (972) 288-3266 • Fax (972) 288-2608

www.teiinsurance.com 18

T e x a s

D e a l e r

December 2017

OF Tip THE Month

Flood Damage BHPH dealers should stay clear of all flood damaged vehicles.

These cars are much more likely to breakdown and turn into losses.

One step to help identify flood damaged vehicles is to look for water stains, mud or mildew under the carpet, in the trunk or under the hood. Do a smell test to avoid units that stink of mildew or other fragrances which may have been used to cover up the smell.

It is also beneficial to check the fluids for water contamination and electrical and mechanical systems for water damage. In addition all dealers should always run a vehicle history report.

AMAC offers financing to qualified BHPH dealers looking to expand their business.

What’s included:

Funding for Receivables You Collect or We Collect Floorplan Lines Simplified Insurance Tracking Reports Package Training Bulk Roll in for Existing Contracts Cash Flow from Payments

Ace Motor Acceptance Corp. (AMAC) specializes in supplying capital to BHPH dealers.

Our BHPH in a Box™ program provides capital to fund contracts and floorplan lines of credit to purchase inventory. By offering both, AMAC improves your cash flow by allowing you to pay off your floorplan when the deal is funded. We understand what it takes to grow your business. AMAC allows you to maintain your customer relationship, leading to increased repeat and referral business. Instead of selling off your portfolio or doing an expensive payment stream, AMAC has a superior program that allows you to retain strong monthly cash flow from customer payments. We approve you, not your customer. The BHPH in a Box™ program is the most complete program in the industry.

To learn more call AMAC today at 704-882-7100 ext. 7509.

Acemotoracceptance.com

704-882-7100 ext. 7509

on the cover

The Compliance Quiz 2017

(Editor’s note: Each of the questions on the following dealer exam was taken from information in Legal Corner columns that appeared in Texas Dealer magazine in 2017.)

1. After a strict foreclosure, a car creditor can report to a credit reporting agency which of the following items regarding the debtor and the transaction: a. Th at a repossession took place. b. That the debtor owes an unpaid amount to the creditor. c. That the debtor has a deficiency balance on the account. d. Th at the debtor had moved without informing the creditor.

20

2. True or False: A dealer can remove the FTC Buyer’s Guide from the vehicle for the purpose of a test drive.

3. A Certified Copy Original title certificate (CCO) obtained by forgery is ___________ (superior or inferior) to the original title certificate.

4. Deferred sales tax is lost and total sales tax becomes due on a vehicle sale if: a. The title certificate is delivered directly to the buyer. b. Title isn’t transferred within 60 days. c. The title certificate is lost. d. The dealer fails to submit his/her sales tax report by the deadline.

T e x a s

D e a l e r

December 2017

5. With regard to personal property contained in a repossessed vehicle, which of the following is correct: a. P ersonal property found in a repossessed vehicle can be disposed of after 15 days if it is not claimed. b. Any personal property left in a vehicle is covered by the car creditor’s lien. c. A car creditor must return personal property even if the debtor has not returned keys to the vehicle. d. A car creditor can withhold returning personal property until the debtor pays the repossession fee.

6. True or False: If a car creditor leaves lien information off the Form 130-U (title transfer application) resulting in no lien being shown on the title certificate, the buyer’s debt is extinguished.

7. The State Comptroller takes the position that: a. Th e purchase of GPS units is taxable, but air time charges are not taxable. b. The purchase of the GPS is not taxable since the device is attached to the vehicle and increases the sales tax the state receives when the vehicle is sold. c. Th e purchase price of GPS units is not taxable, but air time charges are taxable to the dealer. d. B oth the purchase price of GPS units and air time charges are taxable to the dealer.

8. True or False: If the “60 per cent” rule applies to a repossession, the car creditor must use the strict foreclosure procedure and send a “20-daynotice” letter.

9. The Texas Supreme Court has held that the use of mandatory arbitration agreements in conjunction with the sale of consumer goods is: a. A violation of the Texas Deceptive Trade Practices Act. b. A legal contract right between the parties to the sale. c. A violation of the Consumer Financial Protection Bureau’s ban on class-action waivers. d. Unfair to consumers who don’t read their contracts.

10. True or False: Selling “as is” does not eliminate any obligation to disclose the known existence of repaired prior frame damage to a buyer.

Answers can be found on page 42.

Garage Liability Kevin Smith Insurance is now Tri-State Dealer Services. With expansion and coverages being available outside of Texas, we’ve changed our name to better suit the areas of our growing agency.

1-800-687-3236

Tri-State Dealer Services is one of the largest writers of Garage Liability in the state. We work with several A+ rated companies which offer exceptional rates to car dealers and repair shops. Call today for a “quick” 10-minute quote!

WE ALSO OFFER THESE COVERAGES:

8739 Davis Blvd.

Keller, TX 76248

800-687-3236 / Fax (817) 581-1921

December 2017

T e x a s

D e a l e r

F&I • Vehicle Service Contracts • GAP Insurance • Tire & Wheel Vehicle Protection Products • Property • Wreckers 2 Car Haulers • Cargo • Dealer Bonds • Personal Lines 21

NEED CARS?

We've got thousands to choose from.

TEXASDIRECTAUTO.COM

feature

Office of Consumer Credit Commissioner — Regulatory Update

by Huffman Lewis

Financial Examiner, Office of Consumer Credit Commissioner

L

icensing activities at the agency continue to reflect the dynamic nature of the industry.

Fiscal year 2017 ended with 8,539 motor vehicle sales finance licenses compared with 8,444 at fiscal year-end 2016 and up again from 8,096 active licenses from fiscal year-end 2015. A closer look at licensing activities on a quarterly basis for fiscal year 2017 shows active motor vehicle sales finance licenses increased from 8,444 at fiscal year end 2016 to 8,772 1st quarter, 9,132 2nd quarter, 9,331 3rd quarter and ending 4th quarter fiscal year 2017 at 8,539.

The agency completed investigations on 60 motor vehicle sales finance licenses in fiscal year 2017, equal to the number of investigations completed in fiscal year 2016. In 2016 the agency processed 1,148 complaints related to motor vehicle sales finance operations, compared to 1,149 in fiscal year 2016.

Motor vehicle sales finance complaints represent 53.9% of all complaints processed by the OCCC in fiscal year 2017.

The 5 largest complaint-investigation categories are related to: Repossessions

Account Disputes/Payment Postings

Unlicensed Activity

Financing conditioned on subsequent assignment

of the contract Mechanical Issues

In Fiscal Year 2017 (September 1, 2016 to August 31, 2017), the OCCC conducted examinations covering 2,354 motor vehicle sales finance licenses. This represents an increase of 7.9% in the number of licenses examined in Fiscal Year 2016 (2,181). For Fiscal Year 2017, the acceptable level of compliance for motor vehicle sales finance licenses was a sturdy 85.81% up from 75.47% at fiscal year-end 2016. This significant improvement was in line with agency expectations.

The agency expects industry compliance levels to December 2017

T e x a s

D e a l e r

remain above 80% with additional dealer training and experience in preparing for and responding to the agency’s examination and investigation program.

We continue to believe that our agency’s amplified and consistent focus on examiner training enhances the licensee’s point of contact experience with the agency. By fostering an environment of regulatory training and education combined with the higher order consumer protection focus, we are leaning into our mission of creating a fair, lawful, and healthy credit environment that grows economic prosperity for all Texans.

TIADA MEMBERS!

One Year of Spot Delivery® for only $99 SAVE $250

Spot Delivery® is a concise, easy-to-read, monthly legal update that dealers can depend on to provide timely answers to legal questions they face every day. This newsletter addresses complex legal issues from an industry perspective; it also keeps dealers informed on new legal developments affecting their businesses.

To receive a one-year subscription for only $99 (Retail Value $349), please go to www.counselorlibrary.com and under the “Products” tab, click on “Legal Newsletters” and then choose “Spot Delivery”. At checkout, enter the discount code TIADA. A one-year subscription entitles you to 11 printed issues and online access to all back issues. The discount code expires 2/15/18. If you choose to renew after your one-year subscription ends, it will be at the then current annual rate. Offer valid for TIADA members only.

23

Ituran

Innovative GPS Tracking

ADVANCED VEHICLE GPS TRACKING SERVICES

With controlIt by ITURAN you’re covered!

We offer:

Multilingual GPS disclosures (sale/lease) User management (vehicles & commands accessibility) Password change enforcement Bankruptcy mode User audit reports IP and day time access restrictions and much more

Call or email us today for more information:

1-866-543-5433 | sales@ituranusa.com www.ituranusa.com

WE HAVE THE CASH TO HELP YOU PREPARE FOR NEXT YEAR. BULK PURCHASE STRIP PURCHASE ACCOUNT SERVICING • Our Bulk Purchase and Strip Purchase Programs will turn your receivables into cash today.

• Convert a Strip to a Bulk Purchase for your maximum cash flow strategy with NO RECOURSE. • Eliminate the burden of taking payments, having cash in the office and making collection calls.

United Acceptance, Inc. Proudly helping Texas BHPH dealers since 1991.

Call today 877.281.2360 24

www.uaidirect.com Se Habla Español T e x a s

D e a l e r

December 2017

Special Thanks to our

2017 INDEPAC Contributors (as of November 20, 2017)

Jerry Baker Robert Blankenship

Brad Davis John Freeman Steven J. Greig Charles Allred Steve Babinsky Paul Barnes Billy Bradford Juan Cadena

$2,000 +

Tommy Gregory Eddie Hale

$1,000 -$1,999 Keith Hagler Blake Ingram

$500-$999 Joe Chick Mark Fish Chris Knox Jeff Martin

Greg Reine Paul Scott

Gary Sayre Michael Thomasson Kathrine Tolsch John Mayse Somir Paul Brent Rhodes Jerry Smith Armando Villareal

$250-$499 Scott Allen Eric Batchelor Mark Bearden Ahmed Belmeshkan

Jim Campbell Vicki Davis Mark Jones Patricia Kannel

Wayne Meagher Bobby Moore Barry Smith Russell Smith

$100-$249 Justin Browning David Byrd Habacuc CastaĂąeda Cheri Childress Johnnie Daniels Gerardo DeAnda

Peter Ghan Michael Goff Eddie Grantham Brian Green Carleton Heller

Al Gharatappeh DeeAnna Heavilin

Eric Ryan Christina Sabillon

December 2017

T e x a s

D e a l e r

$10-$99

Kanton Labaj Sonny Paredez Greg Phea Byron Riley Cal Sumrall Weyland Talafuse David Sabillon Jose Saucedo 25

2017 TIADA Inventory Resource Directory Nationwide Available Inventory compiled by Texas Dealer staff The 2017 TIADA Inventory Resource Directory was created to assist Texas independent dealers affected by Hurricane Harvey connect with auctions across the country that have available inventory. We would like to thank all the auctions that have reached out to be a part of this directory.

ALABAMA

CONNECTICUT

Southern Auto Auction America’s Auto Auction Birmingham

1046 AE Moore Drive, Moody, AL 35004 Phone: 205.640.4040 Fax: 205.640.3071 Website: www.americasautoauction.com/ birmingham America’s Auto Auction offers a full spectrum of Dealers Services necessary to successfully complete the remarketing needs for both Buyers and Sellers. Here we understand the value of a customer, and know that every dealership is different with different needs. Sale Day: Wednesdays 11:15 AM (CT).

COLORADO

161 South Main Street, East Windsor, CT 06088 Phone: 860.292.7500 Fax: 860.292.7598 Email: salescontacts@saa.com Website: www.saa.com Contact: Owner: Larry Tribble Vice President: Garison Hudkins VP/Operations: Rick Nadeau Dealer Registration: Janet Lesniak Dealer Sales Manager: Joe Derohanian 20 Lanes, Every Wednesday, EST 1947.

America’s Largest Independent Auction with 4,000+ vehicles offered every Wednesday.

Honda/Acura Remarketing, Nissan/Infiniti Remarketing, Hyundai/Kia Finance, Toyota Financial Services, GM Financial, Fusion Auto Finance, Ally, US Bank, Chase Off-Lease Subaru, Subaru of America, Remarketing by Element, Exeter, Lease Plan, Motor Lease, Volvo, U-Haul, Harley Davidson Financial, Services, Southeast Toyota Finance

ILLINOIS

America’s Auto Auction St. Louis

721 S 45th St., Centreville, IL 62207 Phone: 618.332.1227 Fax: 618.332.1228 Website: www.americasautoauction.com/saintlouis America’s Auto Auction offers a full spectrum of Dealers Services necessary to successfully complete the remarketing needs for both Buyers and Sellers. Here we understand the value of a customer, and know that every dealership is different with different needs.

Sale Day: Thursdays 9:30 AM (CT)

Greater Rockford Auto Auction

5937 Sandy Hollow Rd., Rockford, IL 61109 Phone: 800.830.4722 Website: www.graa.net Contact: Keeley Capriola, 815-874-7800, kcapriola@graa.net Looking for vehicles? Buy online at www. graa.net or www.auctionpipeline.com.

750+ vehicles available online every Wednesday at 9 AM. 45 minutes west of Chicago. Buy outside of Texas and save! Call our friendly staff to assist you today!

LOUISIANA Dealers Auto Auction of the Rockies

7175 York Street, Denver, CO 80223 Phone: 303.289.7716 Fax: 303.476.9018 Website: www.daarockies.com Contacts: Director of Sales: Brandon Fox, bfox@daarockies.com, 303-407-1255 Assistant Manager of Sales: Lori Martella, lmartella@daarockies.com, 303-407-1216 Fleet/Lease Manager: Danielle Runkle, drunkle@daarockies.com. 303-407-1202 Sale Day: Every Thursday at 9:00am MST Dealers Only Dealers Auto Auction of the Rockies is here to move your business forward with our dedicated sales team, 24/7 secure online access to auction account, onsite services to fuel your bottom line, & online sale services through Edge Pipeline & OVE. Visit www.daarockies.com for more details. See our ad on page 20 in Texas Dealer magazine

December 2017

T e x a s

D e a l e r

America’s Auto Auction Chicago

14001 South Karlov Ave., Crestwood, IL 60445 Phone: 708.389.4488 Fax: 708.389.4558 Website: www.americasautoauction.com Look no further than America’s Auto Auction if you are looking for a state-of-the-art auction site in Chicago, Illinois. We feature a dealer sale every Tuesday at 1:00PM, Wednesday at 9:00AM, a live simulcast sale, and a highline auto auction for dealers at its greater Chicago location. Dedicated to serving each customer’s needs “the old fashioned way”. Sale Days: Monday Online Auction 4:00 pm (CT), Tuesdays 1:00 pm (CT) and Wednesdays 9:00 am (CT)

Americas Auto Auction Baton Rouge LLC

3960 Blount Rd., Baton Rouge, LA. 70807 Phone: 225.778.3737 Fax: 225.778.4030 Website: www.americasautoauction.com Contact: Steve Van Every / svanevery@auctionbroadcasting.com Americas Auto Auction Baton Rouge has a sale every Thursday offering 500-600 vehicles featuring Santander, Chrysler Capital, Ally Financial, Credit Acceptance, Westlake Financial, Innovate/Cap Rock, GSA, ARI, Avis/Budget, Consolidated Recovery Asset Inc. and new and used car dealer consignment. We are a state of the art auction facility with full detail, mechanical, and body shop operations. Come see us!!

27

MARYLAND

NEVADA

Manheim BaltimoreWashington

AutomobileMonitor.com powered by Locator Technologies

7120 Dorsey Run Rd., Elkridge, MD 21075 Phone: 410-796-8899 Fax: 410-799-0512 Website: https://publish.manheim.com/en/ locations/us-locations/manheim-baltimorewashington.html Contact: Greta Stetson, Stetson/ greta.stetson@coxautoinc.com/410-471-6696 Manheim, North America’s leading provider of remarketing services, was established in 1945 as a wholesale vehicle auction operation. Manheim continues to set the industry standard for buying and selling used vehicles today through its 125 traditional and mobile auction sites across the world.

MASSACHUSETTS

7582 Las Vegas Blvd South, Suite 307 Las Vegas, NV 89123 Phone: 678.230.2796 Website: www.AutomobileMonitor.com Contact: 678-230-2796 AutomobileMonitor.com electronically monitors vehicles for lenders and notifies them electronically and instantly on all occurrences including tow, storage, awaiting export / import, collision, stolen, stolen recovery, title change, and more. Vehicle occurrence data comes from public safety, government, and private sector databases.

We monitor more than 30 million vehicles.

Free trial available. See our ad in the TIADA Weekly Update newsletter

NEW HAMPSHIRE Central Mass Auto Auction

12 Industrial Park Rd. East, Oxford MA 01540 Phone: 508.987.8396 Fax: 508.987.6430 Website: www.cmaainc.com Contact: Luke Semmelrock – GM, luke@cmaainc.com 508-987-8396 Sale day Thursday – 8:30 Sale – Donations and Dealer Consignment in 4 Lanes – 10:00 Sale – Dealer Consignment – Fleet Lease and Bank in 6 Lane – Utility Sale – Selected 4th Thursday of Month. Online sale available through Pipeline. Auction Access available

Lynnway Greater Boston Auto Auction, Inc.

400 Charter Way, North Billerica, MA 10862 Phone: 781.596.8500 Fax: 781.581.5033 Website: www.lynnwayautoauction.com Contact: Dana Ducal, Sales Manager 978.337.7762 Lynnway’s Greater Boston Auto Auction Inc. is celebrating its 20th anniversary. Lynnway serves New England and 40 states including Texas. With 1800 vehicles on Wednesdays 8:40am, 8-Lane simulcast and selling at a 70% sale ratio, Lynnway offers luxury, midsize sedans and trucks in every price range. Enjoy Lynnway’s friendly, world-class service. See our ad on page 22 in Texas Dealer magazine.

28

Auto Auction of New England 8 Action Boulevard, Londonderry, NH 03053 Phone: 603.437.5700 Website: AANE.COM Every Thursday at 9:00 AM, thousands of vehicles, including cars, trucks, SUV’s, heavy equipment and recreational vehicles are offered through six lanes as we “Create Liquidity in the Automotive Marketplace”. We welcome you to come and experience a New Standard in Auction Excellence! Visit us at aane.com, and bid online!

NORTH CAROLINA

PENNSYLVANIA

America’s Auto Auction Harrisburg

1100 South York St., Mechanicsburg, PA 17055 Phone: 717.697.2222 Fax: 717.697.2234 Website: www.americasautoauction.com/harrisburg America’s Auto Auction offers a full spectrum of Dealers Services necessary to successfully complete the remarketing needs for both Buyers and Sellers. Here we understand the value of a customer, and know that every dealership is different with different needs. Sale Day: Thursdays 8:45 am (ET)

America’s Auto Auction Lancaster

1040 Commercial Ave., East Petersburg, PA 17520 Phone: 717.569.5220 Fax: 717.569.3109 Website: www.americasautoauction.com/lancaster America’s Auto Auction offers a full spectrum of Dealers Services necessary to successfully complete the remarketing needs for both Buyers and Sellers. Here we understand the value of a customer, and know that every dealership is different with different needs. Sale Day: Wednesdays 9:00 am (ET)

Lakeside Auto Group

10215 W Main Road, North East, PA 16428 Phone: 814.725.4507 Website: www.lakesideAUTO.COM Contact: Andy Gabler, 814-725-4507 X1124, writeitupandy@gmail.com, Josh Kennedy, 814-725-4507 X.1116, jkennedy@lakesidechevybuick.com

TENNESSEE Greensboro Auto Auction & GAA Classic Cars

3907 W Wendover Ave., Greensboro, NC 27407 Phone: 336.299.7777 ext. 2401 Website: www.Greensboroaa.com Contact: Chrissy Chrissy Connor, chrissy@greensboroaa.com, or contact a Customer Care Representative at 800.772.9898 ext. 4 for assistance or questions.

Greensboro Auto Auction (GAA), the Southeast’s largest INDEPENDENT Dealer Exclusive Auto Auction, in Greensboro, NC. GAA offers over 2,500 vehicles every week from a wide variety of fleet, lease & bank accounts as well as dealer consignment. GAA has an in-house trucking company, Direct Transport to assist with your delivery needs.

ADESA Memphis

5400 Getwell Rd., Memphis, TN 38118 Phone: 901.365.6300 Fax: 901.541.6886 Website: www.adesa.com/Memphis Contact: Kristen Baker/ Kristen.Baker@adesa.com ADESA Memphis’ auction provides registered dealers, brokers, automobile manufacturers, rental agencies, as well as corporate and government fleets with a complete vehicle remarketing solution in Tennessee.

T e x a s

D e a l e r

December 2017

Airport Auto Auction

1733 Chandler Rd., Louisville, TN 37777 Phone: 865.970.9600 Fax: 865.970.9603 Email: info@airportautoauction.com Website: www.airportautoauction.com/ Contact: TA Alleman, talleman@airportautoauction.com Airport Auto Auction is an independent auto auction located in the beautiful foothills of the Great Smoky Mountains. We offer weekly dealer-only auctions every Thursday afternoon, and we pride ourselves in our personal, down-home customer service. That is why we are considered The Best Little Auction House in TN.

ALLIANCE AUTO AUCTION OF TEXAS Alliance Auto Auction is a rapidly growing family of auto auctions with locations in Abilene, Dallas, Longview and Waco TX. Our team started Alliance in 2011 to bring trusted relationships back to the core of the auto auction business. Join the Alliance!

Alliance Auto Auction Abilene 6657 US Hwy 80 W., Abilene, TX 79605 Phone: 325.698.4391 Fax: 325.691.0263 Website: www.allianceautoauction.com Contact: Brandon Denison brandon.denison@allianceautoauction.com

Alliance Auto Auction Dallas 9426 Lakefield Blvd., Dallas, TX 75220 Phone: 214.646.3136 Fax: 469.828.8225 Website: www.allianceautoauction.com Contact: Christopher Dean, christopher.dean@allianceautoauction.com

TEXAS

Alliance Auto Auction Longview ADESA OF TEXAS ADESA provides whole car auction solutions with auction sites strategically located near large concentrations of used vehicle dealerships. Each site is a multi-lane, drivethrough facility that hosts at least one vehicle auction per week. See our ad on the inside front cover of Texas Dealer magazine

ADESA Austin, Inc.

2108 Ferguson Lane, Austin, T X 78754 Phone:512.873.4000 Fax: 512.873.4022 Website: www.adesa.com Contact: Rich Levene, rich.levene@karauctionservices.com

6000 SE Loop 281, Longview, TX 75602 Phone: 903.212.2955 Fax: 903.212.2956 Website: allianceautoauction.com Contact: Chris Barile, chris.barile@allianceautoauction.com

Alliance Auto Auction Waco

15735 North Interstate 35, Elm Mott, TX 76640 Phone: 254.829.0123 Fax: 254.829.1298 Website: allianceautoauction.com Contact: James Barron, james.barron@allianceautoauction.com

4526 N. Sam Houston, Houston, TX 77086 Phone: 281.580.1800 Fax: 281.580.8030 Contact: Mark Lindenmuth, mark.lindenmuth@adesa.com

ADESA San Antonio

200 S. Callaghan Rd., San Antonio, TX 78227 Phone: 210.434.4999 Fax: 210.431.0645 Contact: Clifton Springer, clifton.springer@adesa.com

T e x a s

America’s Auto Auction Austin

16611 IH-35, Buda, TX 78610 Phone: 512.268.6600 Fax: 512.268.6607 Website: www.AmericasAutoAuction.com Contact: John Swofford, john.swofford@americasautoauction.com

America’s Auto Auction Dallas

2190N Loop 12, Irving, TX 75061 Phone: 972.445.1044 Fax: 972.591.2742 Website: www.AmericasAutoAuction.com Contact: Robert Hammonds, robert.hammonds@americasautoauction.com

America’s Auto Auction Houston

1826 Almeda Genoa Rd., Houston, TX 77047 Phone: 281.819.3600 Fax: 281.819.3601 Website: www.americasautoauction.com Contact: Rob Frazier, rob.frazier@americasautoauction.com

1440 FM 3083, Conroe, TX 77301 Phone: 936.788.2881 Fax: 936.788.2842 Website: www.americasautoauction.com Contact: Buddy Cheney, buddy.cheney@americasautoauction.com

America Can! Cars for Kids

ADESA Houston

December 2017

America’s Auto Auction offers a full spectrum of Dealers Services necessary to successfully complete the remarketing needs for both Buyers and Sellers. Here we understand the value of a customer, and know that every dealership is different with different needs. See our ad on page 4 in Texas Dealer magazine

America’s Auto Auction North Houston

ADESA Dallas

3501 Lancaster Hutchins Rd., Hutchins, TX 75141 Phone: 972.873.4000 Fax: 972.284.4799 Website: www.adesa.com Contact: Bob Bannister, bob.bannister@adesa.com

AMERICA’S AUTO AUCTION OF TEXAS

D e a l e r

7100 Marvin D Love Frwy., Dallas, TX 75237 Phone: 972.274.5437 Fax: 214.944.1950 Website: www.carsforkids.org Contact: Erica Black, eblack@carsforkids.org Texas Can Cars is a charity auction with proceeds benefiting the Can Academy Schools. America Can! is the only charity owned and operated car donation program that 100 percent of the net proceeds go directly to support Texans Can! Academies.

Auctions are held at 9 a.m. every Saturday.

29

Big Valley Auto Auction

4315 N. Hutto Road, Donna, TX 78537 Phone: 956.461.9000 Fax: 956.461.9005 Website: www.bigvalleyaa.com Contact: Lisa Franz, General Manager WHEN YOU’RE HERE, YOU’RE FAMILY! With a dealer base of more than 2000 registered dealers, Big Valley Auto Auction offers the best Customer Service in South Texas and a world class experience in the Auction industry. Big Valley Auto Auction offers a variety of services from transportation to inspections on vehicles as well as online bidding. Register with us online or come by to our location and register with us today!

El Paso Independent Auto Auction

7930 Artcraft Road, El Paso, TX 79932 Phone: 915.496.6052 Fax: 915.587.6701 Website: www.epiaa.com Contact: Luke Pidgeon, luke@epiaa.com El Paso Independent Auto Auction is a full service, in-lane & online wholesale auto auction. See our ad on page 10 in Texas Dealer magazine GREATER TYLER

Greater Tyler Auto Auction 2258 S. Treadaway, Abilene, TX 79602 Phone: 325.677.3555 Fax: 325.677.2209 Website: www.cmauctions.com Contact: Gregory Chittum C.M. Company Auctions is committed to providing the best possible auction experience for our customers. We pride ourselves in leading the industry by providing quality and innovative liquidation services with honesty and fairness. C.M. Company Auctions conducts 52 wholesale dealer auto auctions per year, held every Thursday at 10 a.m.

11654 Hwy. 64 W, Tyler, TX 75704 Phone: 903.597.2800 Fax: 903.597.3848 Website: www.greatertylerautoauction.com Contact: Jacque Watts officemanager@greatertyleraa.com The Greater Tyler Auto Auction has been a fixture in the East Texas, West Arkansas and West Louisiana auto industry since 2001. Our staff specializes in all aspects of dealer needs; from title work and seller payment to buyer financing and arbitration. Auctions are held every Tuesday at 5 p.m. buyer financing and arbitration. Auctions are held every Tuesday at 5:00 p.m.

Heart of Texas Auto Auction

Corpus Christi Auto Auction

13510 Toepperwein, San Antonio, TX 78233 Phone: 361.767.4100 Fax: 361.767.9840 Website: www.CorpusChristiAutoAuction. com Contact: Wade Walker, wwalker@saaatx.com Corpus Christi Auto Auction prides itself on quality and convenience, boasting an array of dealer services that include vehicle transportation, value detailing, an affordable mechanic shop, and post-sale inspections.

Online auctions are held in conjunction with live

Heart of Texas Auto Auction

2508 Old Marlin Hwy. 6, Waco, TX 76705 Phone: 254.755.7713 Fax: 254.755.7746 Website: www.heartoftexasautoauction.com Contact: Allan Wichkoski, hotaa1@aol.com The Heart of Texas Auto Auction is Waco’s oldest and most reliable auto auction serving central Texas dealers for 26 years.

2191 Highway 21 West, Dale, TX 78616 Phone: 512.385.3126 Fax: 512.295.6666 Website: www.iaai.com Contact: Geoffrey Rabb, grabb@iaai.com

IAA – Corpus Christi

4701 Agnes Street, Corpus Christi, TX 78405 Phone: 361.881.9555 Fax: 361.887.8880 Website: www.iaai.com Contact: Adrian Serrano, aserrano@iaai.com

IAA – Donna

900 N. Hutto Road, Donna, TX 78537 Phone: 956.454.8393 Fax: 956.464.9005 Website: www.iaai.com Contact: Ydalia Sandoval, yssandoval@iaai.com

IAA – El Paso

14651 Gateway Blvd. W., El Paso, TX 79932 Phone: 915.587.6700 Fax: 915.587.6700 Website: www.iaai.com Contact: Jorge Resendez, jrresendez@iaai.com

IAA – Grand Prairie

4226 East Main Street Grand Prairie, TX 75050 Phone: 972.522.5000 Fax: 972.522.5090 Website: www.iaai.com Contact: Jennifer Wessner, jwessner@iaai.com

IAA – Houston

Houston AA

6767 North Freeway, Houston, TX 77076 Phone: 713.328.0723 Fax: 713.644.0889 Website: www.houstonautoauction.com Contact: Tim Bowers, timbowers@houstonaa.com The Houston Auto Auction is a DealerOnly Auction held every Tuesday at 1 p.m.

A variety of sellers includes Local Dealers; Bank/Credit; on Entities; Oil/Gas/Utility and Fleet/Lease companies.

30

Insurance Auto Auctions, Inc. is one of the leading North American salvage auto auctions with the largest facility footprint, strong buyer base and high auction returns. Our exclusive focus on the automotive total-loss industry and over 150 corporate owned facilities across the United States and Canada provide Sellers and Buyers with the best solution to process and acquire total-loss, recoveredtheft, fleet lease, dealer trade-in and collision damaged rental vehicles.

IAA – Austin AUTO AUCTION

C.M. Company Auctions

IAA OF TEXAS

16602 East Hardy Rd., Houston, TX 77076 Phone: 281.443.1300 Fax: 281.443.4433 Website: www.iaai.com Contact: Louis Cappi, lcappi@iaai.com

IAA – Houston

2535 West Mt. Houston, Houston, TX 77038 Phone: 281.847.4700 Fax: 281.847.4799 Website: www.iaai.com Contact: Michelle Casper, mcasper@iaai.com

T e x a s

D e a l e r

December 2017

IAA – Longview

IAA – Lubbock

5311 N. CR 2000, Lubbock, TX 79415 Phone: 806.747.5458 Fax: 806.747.5472 Website: www.iaai.com Contact: Lori Davee, ldavee@iaai.com

IAA – Odessa

701 W. 81st Street, Odessa, TX 79764 Phone: 432.550.7277 Fax: 432.366.8725 Website: www.iaai.com Contact: Barbara Hallmark, bhallmark@iaai.com

IAA – San Antonio

11275 S. Zarzamora, San Antonio, TX 78224 Phone: 210.434.4999 Fax: 210. 662.3113 Website: www.iaai.com Contact: Brian Sell, bsell@iaai.com

IAA – Wilmer

204 Mars Road, Wilmer, TX 75172 Phone: 972.525.6401 Fax: 972.525.6403 Website: www.iaai.com Contact: Henry Valenzuela, hvalensuela@iaai.com

Lufkin Dealers

Auto Auction Lufkin Dealers Auto Auction

2109 N. John Redditt Drive, Lufkin, TX 75904 Phone: 936.632.4290 Fax: 936.632.4218 Contact: Wayne Cook, lufkinauction@yahoo.com Lufkin Dealers Auto Auction is a fixture in the East Texas and West Louisiana auto industry. We excel in remarketing vehicles for banks, title loan companies and other repossessions, and pride ourselves on exceptional customer service. Auctions are held every Thursday at 6 p.m.

M RE

5577 Highway 80 East, Longview, TX 75605 Phone: 903.553.9248 Fax: 903.553.0210 Website: www.iaai.com Contact: Robert Dunning, rdunning@iaai.com

10

%

YOY

GROWTH

FLEXIBILITY WHEN IT COMES TO CUSTOMIZED LINES OF CREDIT* ABDOU EL ASSAL | BEAVERTON CAR CO BEAVERTON, OR

Smart. Simple. Fast.

Learn how Abdou gets MORE at nextgearcapital.com

*This testimonial was received via interview, audio and/or video submission. This testimonial is based on this dealer’s individual experiences, reflecting real life experiences of a NextGear Capital dealer. NextGear Capital does not claim they are typical results that dealers generally will achieve. This dealer’s experiences may not be indicative of future performance or success of any other dealers. Some of the testimonial has been shortened so the whole message is not displayed due to length and/or relevance.

December 2017

T e x a s

D e a l e r

31

MANHEIM OF TEXAS Manheim, Inc. is the leading provider of vehicle remarketing services, connecting qualified buyers and motivated sellers to achieve results. See our ad on the Back Cover of Texas Dealer magazine

Manheim Dallas

5333 W. Kiest Blvd., Dallas, TX 75236 Phone: 214.467.6242 Fax: 214.467.5674 Website: www.manheim.com Contact: Rich Curtis, rich.curtis@coxautoinc.com

Manheim Dallas Fort Worth

12101 Trinity Blvd., Fort Worth, TX 76040 Phone: 817.399.4000 Fax: 817.399.4251 Website: www.manheim.com/locations/DFWA Contact: Nicole Graham-Ponce, nicole.graham@coxautinc.com

Manheim El Paso

485 Coates Drive, El Paso, TX 79932 Phone: 915.833.9333 Fax: 915.581.9645 Website: Manheim.com Contact: Marcos Martinez, marcos.martinez@coxautoinc.com

Metro Austin Auto Auction

8605 Cullen Lane, Austin, TX 78748 Phone: 512.282.7900 Fax: 512. 282.8165 Website: www.metroautoauction.com Contact: Brent Rhodes Metro Austin Auto Auction operates a monthly vehicle auction that is open to the public. We also have a great selection of BUY IN NOW vehicles. The auction is held on the 3rd Saturday of every month at 9:00 a.m.

Metro Dallas Auto Auction

1836 Midway Road, Lewisville, TX 75056 Phone: 292.0900 Fax: 972.492.0944 Website: www.metroaa.com Contact: Scott Stalder Metro Auto Auction is a premier auction group serving auto dealers in the greater Phoenix and Dallas areas. It is our pleasure to provide you with the kind of quality and service you can only find at Metro! The auction is held every Tuesday at 9:00 a.m.

Manheim Houston

14450 West Road, Houston, TX 77041 Phone: 281.955.4667 Fax: 281.955.4649 Website: www.manheim.com Contact: Eddie Pope, eddie.pope@coxautoinc.com

Manheim San Antonio

2042 Ackerman Road, San Antonio, TX 78219 Phone: 210.661.4200 Fax: 210.662.3197 Website: www.manheim.com Contact: Mike Browning, mike.browning@coxautoinc.com

Manheim South Houston

9605 Galveston Rd., Houston, TX 77034 Phone. 713.948.0001 Fax: 713.948.0300 Website: www.manheim.com Contact: Darren Slack, arren.slack@coxautoinc.com

Manheim Texas Hobby

8215 Kopman Road, Houston, TX 77061 Phone: 713.649.8233 Fax: 713.640.6381 Website: www.manheim.com Contact: Darren Slack, darren.slack@coxautoinc.com

32

Rockwall Auto Auction

1810 East I-30, Rockwall, TX 75087 Phone: 972.771.9919 Contact: Frank Post, frankp@rfjauto.com Rockwall Auto Auction has always held true to its standards of excellence and uncompromising focus on customer satisfaction. Our mission is to offer total commitment to our customers, earn your trust, and work hard to maintain it.

Dealer auctions are every Tuesday night at 7p.m.

Texas Lone Star Auto Auction

220 Country Club Drive Carrollton, TX 75006 Phone: 214.483.3597 Fax: 214.483.3814 Website: www.tlsaa.com Contact: Jeff Dunning, Jr., jeffjr@tlsaa.com Texas Lone Star Auto Auction Carrollton has 30-plus years of experience assisting Franchise Dealerships with the sale and disposal of wholesale vehicles to other licensed dealers at auction. The auctions are held every Tuesday and Thursday @ 2:00 p.m.

WASHINGTON

MCCONKEY AUCTION GROUP DAA Northwest | KCI Kansas City | DAA Seattle

2215 South Hayford Road Spokane, WA 99224 Phone: 509.244.4500 Fax: 509.244.8244 Email: dpendergraft@daanw.com Contacts: David Pendergraft, Doug Doll, Dave Blake Website: www.McConkeyAuctions.com The McConkey Auction Group consists of DAA Northwest, KCI Kansas City and DAA Seattle. The three independent auctions feature consignment from virtually every major national account. Additionally, DAA Northwest and DAA Seattle feature 800+ late model trucks & SUVs each week.

Buy in-lane or online via Edge Simulcast.

See our ad in the TIADA Weekly Update e-newsletter.

San Antonio Auto Auction

13510 Toepperwein Road San Antonio, TX 78233 Phone: 210.298.5477 Fax: 210.298.5484 Contact: Brandon Walston, adietze@saaatx.com Website: www.SanAntonioAutoAuction.com Continuously striving to make customer service the number one priority, San Antonio Auto Auction’s reputation is one of integrity, allegiance, quality and expertise. Dealer auctions are held online and in the lanes every Tuesday at 9:30 a.m. Fresh dealer trades are hosted Thursdays at 1:30 p.m.

T e x a s

D e a l e r

December 2017

RECHARGE YOUR BUSINESS WITH 4 SEASONS A/C Offers Good May 7 - July 1, 2017

FREE

R134A 30LB REFRIGERANT CYLINDER! WHEN YOU BUY 10 A/C KITS1

TUAL BOXED OR VIR KITS AVAILABLE

TM

• Covering over 200 MM applications

Lifetime Warranty on A/C Kits2

• Comes with everything you need to do the job right in one box

Order today! Call your Commercial Sales Manager or order online at AutoZonePro.com Lifetime Warranty on the new compressor, drier/accumulator, and orifice tube/expansion device is valid only when the new compressor, drier/accumulator, and orifice tube/expansion device are purchased in same transaction.

2

© 2017 AutoZone, Inc. All Rights Reserved. AutoZone and AutoZone & Design are registered marks of AutoZone IP LLC. All other marks are property of their respective owners.

Online SeSSiOnS mOdule 1

Consumer auto finance basics, including the steps in a typical transaction (for both “indirect” and “direct”), how the federal and state consumer credit laws intersect, and the typical transaction documents used.

mOdule 2

The specific Federal laws and regulations that apply in consumer auto finance in these online sessions with testing throughout

mOdule 3

Begin your compliance training today!

COnSumer Credit COmplianCe CertifiCatiOn Providing the compliance professional with a solid working knowledge of the laws and regulations that govern consumer credit.

Consumer 2017 Credit Compliance December T e xCertification a s DHALF2.indd e a l e1 r

The typical state laws and regulations that apply in consumer auto finance in an online session with tests after each set of session materials.

live ClaSSrOOm SeSSiOn mOdule 4

This session is an in-person classroom setting where the Consumer Financial Protection Bureau (CFPB) is discussed in depth. The discussion includes a comprehensive review of the enforcement and regulatory actions, current CFPB developments, trends and priorities.

www.nafassociation.com/compliance-certification

810-845-3120 10/9/17 4:59 PM

33

e-Tag Supplies —

In Stock for Immediate Shipment!

MOTO

R VEH

ICLE R

ETAIL

INSTAL

LMENT

SALES

REDITOR SELLER/C : ADDRESS ZIP: CITY, ST,

CONTR

ACT DAT E:

:

ge. ce Char le of the Finan ase the motor vehicding ve a part BUYER: PHONE: ents accor e to purch to recei R: act, I choos to make paym its right CO-B UYE and retain By signing this contr act. I agree do not. “your.” contr : . contract “you” or others es in this ADDRESS assign this is also shown below red to as even if the other charg r is refer The Seller may ZIP: Price” agreement e, and any CITY, ST, ” The Selle Selle r. .” The “CashFinance Charg promises in this Purchased “I” or “me. tiated with the the ced, l Sales Price red to as Use For Which nego PHONE: to keep all the “Tota the Amount Finan be refer as is agree I may , r(s) below or Household r New The Buye Percentage Rate t price is shown I agree to pay youn signs as a buyer respects.

Personal, Family all al License Numbe act. er ble) Commercial The Annu TO PAY: The credi of this contr more than one perso r vehicle(s) in Demonstrator (if applica ion Numb Business or moto xe. act. If to the terms Identificat ved the PROMISE Vehicle Factory Official/E t according ule in this contr ted, and appro Agricultural on credi accep ent Sched Model Used to the Paym ughly inspected, CAT ION IDEN TIFI I have thoro Make VEH ICLE OR No.: Year MOT License Stock No. No.: License

Trade-in( Year: Year:

s):

Make: Make:

ANNUAL TAGE PERCEN cost of my The RATEas a yearly rate. credit

VIN: VIN:

Model: Model:

Financed Amountof credit provided nt

f.

RGE t The amou on my behal E CHA to me or the credi FINANC r amount me.

The dolla will cost

% $

$

Price

ents

Paym Total of I will have paid nt The amouI have made all uled. after as sched payments

$

on Total Sale purchaseof ent cost of my The totalwith down paym credit $

$

purchased. vehicle being the motor interest in NT(S ) a security NPA YME Due I give you Date ED DOW owe you, DEF ERR or in the future charge of owe you Amount a late debt I now I will pay any other it is due, ses in it and days after my promi ct and all within 15 payment Charge. on this contra ce sts, owe entire I all ve my of the Finan lt, security intere p this To secure d of part do not recei Security: defau (1)Kee writing. get a refun t nonpayment, ge: If you ises in paym ent. so, I can NO.: Late Char n abou $ all prom sched uled . If I do ds.

STOCK put....... informatio % of the er to........

I owe early yment refun ment for deal........ the ........ and prepa pay all that refer to this docu Ask........ rce. ........ nt: I can uled date, I will ...............

DATE: to enfo Prepayme l Information: e the sched cult........

REDITOR: diffi........ full befor are........

SELLER/C ises........

Additiona repayment in .$ D prom........

ER : red ................ ................

FINANCE : Spo VIN NUMB ces) ken ADDRESS any requi servi ................

ANT AMO UNT ... $ ORT s, and ................

IMP sorie , ST, ZIP: ION OF ................ ........ acces CITY IZAT ........

ITEM YEAR ................ uding any ................ form. ........ER: ..$ e) ........ ........BUY PHONE: price: (Incl Color: ................

(2) R:abov box 1. Cash ................

UYE L .............. ment follow ing: CO-B(s) ment ....$ ................

MODE........ fied, the Downpay ................

2. Downpay ........: ........ .....$ RESS tions speci l:(3) Deferred ......... $ ........ payment ........ADD ................ r to the Mode ................ terms $and condi ZIP: Cash down LE MAKE ent (Refe VEHIC........ ................ ................ ................ under the E CITY, ST, ............ ........ downpaym ................ ................ase from you, VEHICL ................ $ Deferred ................ ) ................ ................ y purch........ ........ belowE: -in...........

Make: PRICE hereb 4.A.PHON ................ : I/We........ .... ........

(Optional) (St. & No.): Gross trade see Line to License NUMBER ........ ........ ........

G: SOLD........Year: ICLE “0” and by seller STOCK VEHBEIN ................ amounts.): - payoff tive, enter DEALER ........ ........ ........ THIS VEHICLE........ .. $ ge: ........Milea ........ TIES FOR -in (if nega ................ part of these No.: ........ ........ trade ........ keep Stock er may = net ............... .$ ................ WARsRAN ................ lf (Sell ................ payment ................ minu 2) my beha price (1 ................ ................

Total down others on of cash ............$ ................ ................ paid to .: balance ss ................ ................ V.I.Nany.................. amounts 3. Unpaid y) ........ regardle company.. including ance ance comp Services tive equit repairs charges insurs, r and insur to any (nega to Othe $ ff 4. ... y for paid payo ance paid Accessorie insur trade-in onsibilit insurance Options,or companies damage A. Net $ damage no resp ...mes physical TOTAL company of physical er assu $ rages with CE $ insurance B. Cost ... nal cove . The deal paid to CASH PRI of optio REPAIRS t insur ance C. Cost $ nal credi Gross FOR ANY cle. e $ .. .............. of optio Phone: COSTS vehi Allowanc ................

D. Cost .$ L PAY ALL nts about the ........................

Trade-in ................

Life anyeme YOU WIL comp .... ........ ........ ff $ ....... $ ance ................ oral stat ........................

-in Payo insur any ................

Disability Net Trade ................ to theof ........ $ ........To: .......... ........ ........Lien ance paid Show ............. nt agencies.. . ........ insur ........ r rnme ........ ........ ........ gove Bala nce $ E. Othe $ ................ ................ paid to ................ ............

Unp aid Pric e ial fees ................ ................ ................ ....... ........ ling s for F. Offic of Cash ................ ................ tory tax... hand ........ $ Addr ................ ........ess: the part the nt: rs for ................ er’s inven % of Amou ................ ................ .......... ........ to buye _ired by law.

Lienged G. Deal y of ................

Dealer's $ copal ................ ________ ................ a ada tration fees. requ for ............$ berchar and r taxes........ er's ntory Tax may er ................ ................ notice is ...... ........ : ser cargantid labo but deal $ e and/or regis ad deal ........ ........

Inve H. Othe se This ........ the the law, pued the ........ c licen Dated by % of parti es. Ask and una ................ ................ ns, rnment the period. ts. ____ required la ley, pero of title fee... usioer to by e exced ................

Tax ................ is not I. Gove $ , excl pued paynt____ erido por rage more righ anty certificate agreed aryerfee will fees......... requNo.: ................By: warr esStock State Sales ment rnment ación no the no e amoungación dealnabl you even Color: mentcove inspection ................ Quoted A docu anty J. Gove The docu duri ment rario vehicle ial fee.TY. may give ofdewarr fail d a reaso r.............. docu and rnment that de an offic RAN to deale hono ONion........ not exceeems anat rario ..... $ anties" is not ATI License Fees $ K. Gove . Un expl TED WAR fee mayredl.syst ce fee paid Un honofor full ORM ........ lied warr ary feeLIMI a venta on INF ........"imp ty servi Model: N: mentary oficia cove INuna con FULL ........ document (St. & No.): os nt Registrati therario e law, DEume L. Depu ionad la ley. stat Fee: A the sale. A docu License TRA doc relac e es un hono DURATIO anty Under : to mentary erida. por mentos $ requ ons Certificat ación no de docuwarr es Make M. Documents relating $ gati (4) ón ment ...

Fee icaciir obli docu de manejo docu Mileage: repa of Title s rario de Esta notif Year: purpose) (5) ... $ Un hono r como gasto las partes. ........ $ describe mentary $ ........

D: and Docu e: ........ compradoe acordada por ERE ** is paid (6) ................ Phon............... $ S COV for Fee ify who razonabl identTEM ................ ........

V.I.N.: SYS (7) $ (Seller must ................ ................ for ............. r charges ................ ................ ................

N. Othe sed ........ sed ........ asses ......... $ ff To: .......... ........ ge isPayo ge is asses ................ to ce Char ce Char ................ ........ $ Finan ........

Finan .... ........ on, ...... ........ which the ................ which the to ................ ................ sthestateinspecti ges Upon ges Upon ................ ................ IftheSellerperformts,andothercharges. ssed) ess: ................ zed Char zed Char . ge is Asse Addr ........................ ................ contrac mentagency.

Plus Itemi Total Itemi ce Char ................ athirdpartyorgovern oftheinsurance,service Balance $ TAL ................ h No Finan Unpaid ................

Seller to SUB-TO than $ retainparts ................

5. Total insurer By: (Upon Whic ................tion fee will be paid by theSellermayalso nt not more have. The ................

Quoted loss.

Sales Tax ................ inspec Seller and I already damage ornot been ctible amou 6. Total (5 + 6) ........ ered of has Sales Tax) agencies. Any statefee will be retained by $ of insura in:nce with a dedu Financed e proof trade ment in the eventtime andATION OF Cash Tend ssed Upon service : nt I owe, or provid to any 7. Amount the policy ing at this (Not Asse paid by Seller to govern fee and deputy Good Until e I want regaberdpaid under in the amou TO entary anyon has not eter is workTHE ITEMIZ andSED Charge with will be ge or loss nce from ants CAU IN 8. Financefee, and license fee inspection fee. Docum person to . The odom company st dama DUE $ the rty anceAGE and warr ts insura ED prope youis as ed again insur stated aboveINCLUDED byTY ge.

DAM as TOTAL an esen name obtain insur Taxes, title retain $7.00 of each dama ge le repr may r FINANC IS teral PER ed to flood airab will ct. Ihase ed nce. I mustl milea the colla PRO Purc or unrep the Seller this contra expos law, You rty insura and actua INSURANCE loss AND byfigur I must keep Rate. ired a total not been owe under proof of prope URY 1. The trueBIL H SALE to red ntage ctnot INJ RANCE: not requce CAS and has ced. ITY been rende all that I you Perce subje is may ILY al title, paid repla fee LIA INSU give to TY balan ary fee ce subje ctils as I have red or FOR the Annuaryprinc has notBODreconditioned ipal ment . I agree PROPER nce until RGErepai sameAasdocument balanfor deta GEleFOR The vehic ipalAsk n of theA docu be the 2. ERA al fee. ess in Texas rebuilt/or this insura law.

A CHA notoffici id princ no esof sale, by to the sale.ired COV id portio may cle. an salvage, ESS ing unpa a ación unpa not rate I must keep rized to do busin d vehi NCE is The relat requ time UNL act the issue : to s e is on this de document the URA contr uled. autho ment ary fee ce docu ment been of notic contract, Iosam Thisment docues. ge CT. must be %.docu as asched despac URANCE BILITY INS ling Code made rario Finan jo k char able es. This A 90 days ose. date of this in parti for shand by Un hono were de mane LIA ITY INS the thersTexa dad razonition s s any l. trac blan an extr S CONTRA rate from the particular purp eter t with ents by is mentary Fee: at buye to canti ed gasto days oficia THI to d paym a 90 una LIABIL T FINANCED, Docu ed n cond IN lable act defin all conr como rarioicerado agree s for ED nt if as charg exceder conteains and/or odom be as TED act withi or of fitnesthe certain The contr ** t is avaies buy un hono amou Price a serv may od trac mileage the prior owner Salecon al comp no puedand und er but meth it or if it AMOUN IS NOT INCLUDNCE CHARGE: llment earnings service contrhantability Totalnable es.aciónIfno sing youcarga E INSaPEC a reaso ice dand Idaread ment ied by charg ICL ley. serv I owe ents, ts. mentación excee In disclo e ser enters into antie A s of merc docu de docu deexcl righ por la pued befo usions.

CT.retur S VEH of Paym ned check alre anty, or ed CT provide. vehicle suppl OTHERS FIGURE THE FINAthe scheduled insta all that rario rario warr AND registered. ract TRAUn ition Total E THI ts.writt ley, pero or honoe, requerida en warr no impli and rer may reading of the cont la this ing CON Un hono was last n es ance . add HAV Charge, es, factu por in adv you pric CON TRA sales tax, eteror venta vehicle YOU officació will S be makes a there erido sign una MAl Yrigh le manu ge by apply the Finance HOW YOU notif SERVICE r odom my lega pay CT, requ notmay seller uctible, charg which the Esta YOU os congive e majin and THI motor vehic ce Char TRA willionad ge and/o ER. es" protect righs.t to - Irelac som Unless the mileaof MSle,OF the S CON :IF de the laterage, ded er anti toLER r vehic the Finan Charge. You based las parte thelist by the state e the thatTHI TER moto por ract ER'S ORD as to a DEA hav not inclu to cove to the buy RANTIESed, on Iada vehicle inform lied warrlaw, ation cont . thethe was issued THE moto thisER a Finance ce Charge does uding se.

OF WAR ss EE TO THE LOT THIS BUY n the acord ASK I rSIGNED le which or impli Noteicelaw "imp keep N:LAIM THE TH ON NG: stat the vehic will AGR . Under TIO tion, incl on the rever s covering ORE on writte s, expre to a Finan

be: ents dule will ent Sche unt of Paym My Paym Payments Amo of Number

ents When Paym

Are Due

IDE R'S GU ORDER BUYE BUYER'S

Y RRANT NO WA AS IS NTY WARRA

faith I of DISC BEF RNI on antie antie PEC rma ge.

T I sign T: IOFF in good SET FOR warr warr INS certificate infotitle EIPOR char THA SELLER’S Arbitrati 1-800 ER WA relied s noON ONS154 t any Mseller -252-9 nal nce SE hasitio contract the fina REC HER FIR Date: rs on the ement to CO., CON not CTmake EIT INC. DITI CON add CONSUM a copy of the , thent ICseller the does I affec of PURCHA CON TRA buyer AND sion IT. ndPRE ge that appea red by the Agre PRINMS TING orta : to OF provi le to the Ythis MECHANThis imp ELLTER Date vehic IT.ent of milea s. n is cove CALL entitled in a partial refu BY COP THE M for BURR ENTROF icleactio gSofFOR TO TEDreadin r a statem GMYOU vehtrans REV Date: and/oIEW DER EE or this AGR THI CE. AND REOR vehicle may obta ACK NOW LED OF A COMPLE 54 AND d motked, IT the K OF DTO E of LER'S OFFI (800) 252-91 S EIPT box is chec ur in use ERSTAN TO TAK THE BAC Date: THE DEAREORDER CALL Buyer: SEE BUY ER’ LEDGE REC WA S FREEthat may occ If this E READ, UND TO LER, AT I 999 HAV THE DEA r: 4/20/1 OF · I/WE ACKNOWTO ME, AND defects Buye CER : rred s Guide AN OFFI Co-Buyer OVED BYSale 501 · Buyer s Tax Defe GAVE IT 52-91 54 bpc #24-5 APPR ings · DER CALL 800-2 r: uyer: D: Earn UNTIL Selle EPTE REOR ent LER TO ACC Co-B DEA Installm d Inc. ING ON dule g Co., NOTeBIND Seller: - Sche 1· Burrel l Printin er:I SIGN IT. ER ISPag Offic ORD 2009 ANDCONTRACT YOU THIS hed09 · © Copyright Attac · 9/1/20 UNTIL rate 35 VALID t To Arbit bpc #24-43 By: Agreemen IS NOT Inc. TRACT g Co., hed l Printin THIS CON

Attac · Burrel Addendum ight 2009 Insurance 09 · © Copyr · 9/1/20

316 bpc #24-4

feature

Look Back — Plan Ahead: New Exemptions and Other Changes for Motor Vehicle Taxes

by Robert Baker, Texas Comptroller of Public Accounts – Tax Policy Division

2

018 is almost here, the winter selling season is in high gear and it’s a good time to make sure we’re caught up on any important tax issues and that we’re aware of any changes to motor vehicle tax law from the past year’s legislative sessions.

During the busy 2017 Regular Legislative Session, the Legislature passed into law three notable changes concerning motor vehicle taxes. The changes to Texas Tax Code included new exemptions from motor vehicle tax for churches, religious societies and open-enrollment charter schools, and changes to the requirements for registering a related finance company. At the 2017 Texas Independent Automobile Dealers Annual Conference and Expo, we also learned that motor vehicle dealers who have branched out into the rental business are taking advantage of the fairmarket value deduction that’s available when replacing a vehicle retired from lease or rental service.

Exemptions for churches, religious societies and openenrollment charter schools

First, let’s take a look at the new exemptions.

For many years, churches and religious societies have been able to purchase a motor vehicle tax-free if it seats more than six passengers and is used for transportation to and from services and meetings. House Bill 897 expanded the exemption to include trailers and updated language in the tax code to allow simply that a church or religious society be the “primary user” of the motor vehicle in order for the sale to qualify for exemption. The same bill also allows open-enrollment charter schools to purchase a motor vehicle tax free as a public agency.

To qualify for exemption, the vehicle must be used exclusively in the service of the school. A public agency, church or religious society does not need to give you an exemption certificate, but their Application for Texas Title and/or Registration must note the exemption.

Registering related finance companies

In 2016, the Comptroller’s office changed its policy for registering related finance companies by requiring

December 2017

T e x a s

D e a l e r

only a one-time registration, with no renewals and no fees. Similarly, House Bill 2067 amended the tax code by removing fees and clarifying that a related finance company’s registration remains effective until canceled by the registrant or the Comptroller’s office.

Replacing rental vehicles

Finally, this year we learned that more independent motor vehicle dealers are exploring opportunities in the vehicle rental business, and are interested in taking advantage of the fair market value deduction available for replacing a vehicle that’s retired from rental service.

Remember, when taking a fair market value deduction, there are two types of vehicles involved: a retired vehicle and a replacement vehicle. You must title both the retired vehicle and the replacement in your dealership/rental company’s name or in the name of a qualified related company. You must purchase the replacement vehicle for business or personal use (not for resale), and you must offer the retired vehicle for sale before claiming the deduction. You can use a fair market value deduction once within 18 months of offering the retired vehicle for sale. If you use the deduction before selling the retired vehicle, the deduction amount equals your book value for the vehicle. If you sell the retired vehicle before claiming the deduction, the fair market value equals the vehicle’s sales price. You cannot use a fair market value deduction that reduces tax to below zero.

Tax laws are complex and subject to change, and the Comptroller’s office is committed to helping Texas taxpayers understand their rights and responsibilities regarding Texas taxes. You can access tax information online 24 hours a day, seven days a week at Comptroller.Texas.Gov. Visit Motor Vehicle Taxes and Surcharges to learn more about motor vehicle taxes and to access forms, publications, taxpayer databases and more. If you have a motor vehicle tax question, visit Texas Taxes Help, or call a tax specialist at 800-252-5555. The Comptroller’s office is open Monday through Friday from 8:00 a.m.to 5:00 p.m.

35

Wishing you all the joy the holidays can bring!

from

21

LOCATIONS

Atlanta, GA Austin, TX Baton Rouge, LA Bowling Green, KY Birmingham, AL Chicago, IL

4

Dallas, TX Detroit Toledo, OH Greenville, SC Harrisburg, PA Houston, TX Interstate 94, MI

Jacksonville, FL Lancaster, PA North Houston, TX Pensacola, FL Pittsburgh, PA St Louis, MO

Austin

LOCATIONS IN TEXAS

Dallas

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

Tulsa, OK Virginia Beach, VA West Michigan, MI

TUESDAYS & THURSDAYS AT 1PM

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

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

North Houston

MONDAYS AT 6:30PM

1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

feature Maximum Finance Charge Rates for 2018

by Michael W. Dunagan TIADA General Counsel

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 timeprice-differential, “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 (see accompanying chart). Depending on such variables as the length of the repayment period, the amount of each payment, and the frequency of payment (weekly, bi-weekly, semi-monthly or monthly), the annual percentage rate on 15 per cent add on can exceed 26 per cent.

Chapter 348 of the Texas 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 2018. These rates are valid on sales that take place between January 1, 2018, and December 31, 2018. 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. These are maximum rates, and any rate lower than the maximum can be charged.

“Add-on” rates should not be confused with “annual percentage rates” which are the rates required to be disclosed on loans and retail installment sales by federal law.

The Annual Percentage Rate (or APR), which appears in the so-call “Fed Box”, will usually be substantially higher than the add-on rate.

December 2017

T e x a s

D e a l e r

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 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 dealers rely on specialized software (often referred to as dealer management software, or DMS) to perform this function. (For a list of reviewed programs, see the OCCC website at http://www. occc.state.tx.us/).

FOR LEASE A 17-year old established car lot with an excellent reputation and located in a prime North Austin location is willing to lease all or part of its car lot. This ¾ acre location features: Over 30,000 square feet Approximately 80-vehicle capacity Repair shop equipped with 5 bays 30-foot lighted sign with great visibility Maximum traffic and appeal with vehicles visible from two roads

Call Salvador

or Gina Gutierrez

512-452-4066

with questions or to set an appointment

37

Maximum Finance Charge Rates for Calendar Year 2018 Class One Two Three Four

Year Models

2019 and 2018 new Any new note appearing in Class One above; 2018, 2017 and 2016 used 2015 and 2014 2013 and older

Without appropriate software, it is virtually impossible for a creditor who collects weekly, bi-weekly, or

Max. Rate

7.5 per cent add-on 10 per cent add-on

18 per cent APR 18 per cent APR

12.5 per cent add-on 15 per cent add-on

18 per cent APR 18 per cent APR

semi-monthly payments to accurately calculate an APR and other required disclosures. Dealers should not guess

NEED HELP WITH COMPLIANCE AND / OR COLLECTIONS?

WE SPECIALIZE IN COLLECTING FOR CAR DEALERS, BANKS, FINANCE COMPANIES, AND CREDIT UNIONS. We Specialize in Account Servicing and Collections for Car Dealers, Banks, Finance Companies and Credit Unions Eliminate Compliance Issues Let Us Do Your Credit Reporting Improve Cash Flow Decrease Charge Off We Also Purchase Finance Contracts if Desired.

Please Contact Us For More Information: (210) 530-0500 • www.alamofinancialcorp.com

FREE Consultation 38

Alternate Rate

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 2012 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 addon 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 “addon 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.

T e x a s

D e a l e r

December 2017

TIADA Membership Application

2018

Business Name: ____________________________________________ Select one:

Dealer Member

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________ City: _________________________________________ State: _______ Zip: __________________ County: _____________________________ E-mail address: _____________________________________________ Phone: _______________________ Fax: ________________________

TIADA texas independent automobile dealers association

TIADA texas independent automobile dealers association

2018 TIADA Membership Dues: Pay full amount today and receive the rest of 2017 for free.

$499 OR join our monthly payment plan of

$41.58 per month *Membership good through 12/31/2018

Dealer P Number: ___________________________________________

(Dues include NIADA membership and local chapter membership where applicable.)

Who referred you to TIADA? __________________________________ Mailing Address (if different from above): __________________________________________________________ City: _________________________ State: _______ Zip: ___________

PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Sec.Code: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Expiration Date: ____________ Monthly Payments - $41.58 per month Via Credit Card (Please enter card information above) Via Bank Draft (Authorization Agreement required - contact state office)

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

www.txiada.org

512.244.6060

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

December 2017

T e x a s

D e a l e r

39

2017 TIADA VIP Auction Card Directory

Manheim ADESA Dallas Austin Manheim ADESA DFW Dallas Manheim ADESA El Paso Houston Manheim ADESA Houston San Antonio Manheim San Antonio AA Abilene Alliance Manheim Texas Hobby AA Dallas Alliance Alliance

im ManheHousto n ew South

AA Longvi

Alliance

AA Waco

Metro AA Dallas

AA San Corpus AA Christi Antonio a’s a Americ Americ AA Austin/ antonio Can! Cars for Kidsn San Arlingto a’s Big Americ Dallas Valley AA AA Donna a’s Americ CM AA ny Houston Compa s Auction a’s Americ El Paso AA North n ndent Indepe AA Housto of Texas n AA Heart AA Waco

Housto

Metro AA Texas Lone Star AA Austin Carrollton Lufkin s Dealer r Tyler AA AA

Greate

Rockwall Auto Auction Insurance s Insurances Auto Auction Christi* Corpus Auto Auction Austin* Insurance s Insurances Auto Auction Auto Auction DFW* Dallas* Insurance s Insurances Auto Auction Houston* Auto Auction El Paso* Insurance s Insurances Auto Auction Longview* Auto Auction North* Houston Insurance s Insurances Auto Auction n* Auto Auctionk* McAlle Lubboc Insurance s Insurances Auto Auction* San Antonio Auto Auction Basin* Permian locations *valid for

ABILENE

ce AA

at Insuran

IAA*

Manheim Dallas

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

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

5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800, Fax 214.339.6347 General Manager: Rich Curtis Wednesday, 9:00 a.m.

C.M. Company Auctions, Inc.

DALLAS / FT.WORTH METROPLEX

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

ADESA Dallas

12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000, Fax 817.399.4251 General Manager: Nicole Graham-Ponce Thursday, 9:30 a.m.

Alliance Auto Auction Abilene www.allianceautoauction.com

www.cmauctions.com

AUSTIN ADESA Austin

www.adesa.com

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

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

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

IAA*

www.iaai.com

2191 Highway 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 General Manager: Geoffrey Rabb Tuesday, 9:00 a.m.

Metro Austin Auto Auction www.metroautoauction.com

8605 Cullen Ln., Austin, TX 78748 512.282.7900, Fax 512.282.8165 General Manager: Brent Rhodes 3rd Saturday, monthly

CORPUS CHRISTI Corpus Christi Auto Auction

(formerly known as Sparkling City AA Corpus Christi) www.CorpusChristiAutoAuction.com

2149 IH69 Access Rd., Robstown, TX 78380 361.767.4100, Fax 361.767.9840 General Manager: Wade Walker Friday, 9:30 a.m.

* VIP card accepted for sell fees only 40

sell fee only

Get up to $200 off a buy or sell fee at these participating auctions using your TIADA VIP Auction Card!

www.iaai.com

www.adesa.com

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

Alliance Auto Auction Dallas www.allianceautoauction.com

9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136, Fax 469.828.8225 General Manager: Christopher Dean Wednesday, 1:30 p.m.

America Can! Cars for Kids www.carsforkids.org

7100 Marvin D Love Frwy Dallas, TX 75237 972.274.5437, Fax 214.944.1950 General Manager: Jennifer Kitchens Saturday, 9:00 a.m.

America’s AA Dallas

www.americasautoauction.com

219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972.591.2742 General Manager: Robert Hammonds Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.

IAA*

www.iaai.com

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

IAA*

www.manheim.com

Manheim Dallas Fort Worth www.manheim.com

Metro Dallas Auto Auction New! www.metroaa.com

1836 Midway Rd., Lewisville, TX 75056 943.492.0900, Fax 972.492.0944 General Manager: Scott Stalder Tuesday, 9:00 a.m.

Rockwall Auto Auction

www.rockwallautoauction.com

1810 I-30 Frontage Rd., Rockwall, TX 75087 972.771.9919, Fax 972.722.4827 General Manager: Frank Post Tuesday, 7:00 p.m.

Texas Lone Star Auto Auction www.tlsaa.com

2205 Country Club Dr., Carrollton, TX 75006 214.483.3597, Fax 214.483.3814 General Manager: Jeff Dunning Tuesday, 1:00 p.m. / Thursday, 2:00 p.m.

EL PASO El Paso Independent Auto Auction www.epiaa.com

7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 General Manager: Luke Pidgeon Wednesday, 9:30 AM In-op Video Sale / 10:00 AM Standard Sale.

IAA*

www.iaai.com

14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489, Fax 915.852.2235 General Manager: Jorge Resendez Friday, 10:30 a.m.

www.iaai.com

Manheim El Paso

204 Mars Road, Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 General Manager: Henry Valenzuela Wednesday, 9:00 a.m.

485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645 General Manager: Brian Walker Thursday, 10:00 a.m.

www.manheim.com

T e x a s

D e a l e r

December 2017

IAA*

MIDLAND / ODESSA

2535 West. Mt. Houston, Houston, TX 77038 281.847.4700, Fax 281.847.4799 General Manager: Michelle Casper Wednesday, 9:00 a.m.

IAA*

www.iaai.com

Manheim Houston www.manheim.com

14450 West Road, Houston, TX 77041 281.924.5833, Fax 281.890.7953 General Manager: Eddie Pope Tuesday, 9:00 a.m. / Thursday 6:30 p.m.

HARLINGEN / MCALLEN Big Valley Auto Auction www.bigvalleyaa.com

4315 N. Hutto Road, Donna, TX 78537 956.461.9000, Fax 956.461.9005 General Manager: Lisa Franz Thursday, 9:00 a.m.

IAA*

www.iaai.com

900 N. Hutto Road, Donna, TX 78537 956.464.8393, Fax 956.464.8510 General Manager: Ydalia Sandoval Tuesday, 9:00 a.m.

HOUSTON

Manheim South Houston New! www.manheim.com

9605 Galveston Rd., Houston, TX 77034 713.948.0001, Fax 713.948.0300 General Manager: Darren Slack Tuesday, 6:00 p.m.

Manheim Texas Hobby www.manheim.com

8215 Kopman Road, Houston, TX 77061 713.649.8233, Fax 713.640.6330 General Manager: Darren Slack Thursday, 9:00 a.m.

ADESA Houston

LONGVIEW

4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030 General Manager: Michael Schenks Wednesday, 9:00 a.m.

Alliance Auto Auction Longview

www.adesa.com

America’s AA Houston

www.americasautoauction.com

1826 Almeda Genoa Rd. Houston, TX 77047 281.819.3600, Fax: 281.819.3601 General Manager: Rob Frazier Thursday, 2:00 p.m.

America’s AA North Houston www.americasautoauction.com

1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842 General Manager: Buddy Cheney Monday, 6:30 p.m.

Houston Auto Auction

www.houstonautoauction.com

www.allianceautoauction.com

6000 East Loop 281, Longview, TX 75602 903.212.2955, Fax 903.212.2556 General Manager: Jeff Loftin Friday, 10:00 a.m.

IAA*

www.iaai.com

5577 Highway 80 East Longview, TX 75605 903.553.9248, Fax 903.553.0210 General Manager: Robert Dunning Thursday, 9:00 a.m.

www.iaai.com

701 W. 81st Street Odessa, TX 79764 432.550.7277, Fax 432.366.8725 General Manager: Barbara Hallmark Thursday, 11:00 a.m.

SAN ANTONIO ADESA San Antonio www.adesa.com

200 S. Callaghan Rd. San Antonio, TX 78227 210.434.4999, Fax 210.431.0645 General Manager: Clifton Sprenger Thursday, 9:00 a.m.

IAA*

www.iaai.com

11275 S. Zarzamora San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 General Manager: Brian Sell Monday, 9:00 a.m.

Manheim San Antonio www.manheim.com

2042 Ackerman Road San Antonio, TX 78219 210.661.4200, Fax 210.662.3113 General Manager: Mike Browning Wednesday, 9:00 a.m.

San Antonio Auto Auction

(formerly known as Sparkling City AA San Antonio) www.SanAntonioAutoAuction.com

13510 Toepperwein Rd San Antonio, TX 78233 210.298.5477, Fax 210.298.5484 General Manager: Brandon Walston Tuesday, 9:30 a.m.; Thursday, 1:30 p.m.

TYLER Greater Tyler Auto Auction www.greatertyleraa.com

LUBBOCK

11654 Hwy. 64 W, Tyler, TX 75704 903.597.2800, Fax 903.597.3848 General Manager: Wayne Cook Tuesday, 5:00 p.m.

IAA*

WACO

www.iaai.com

5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 General Manager: Lori Davee Tuesday, 9:30 a.m.

Alliance Auto Auction Waco www.allianceautoauction.com

LUFKIN

15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 General Manager: James Barron Friday, 10:00 a.m.

IAA*

Lufkin Dealers Auto Auction New!

Heart of Texas Auto Auction

16602 East Hardy Rd., Houston, TX 77032 281.443.1300, Fax 281.443.4433 General Manager: Louis Cappi Thursday, 9:00 a.m.

2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299, Fax 936.632.4218 General Manager: Wayne Cook Thursday, 6:00 p.m.

2508 Old Marlin Hwy. 6 Waco, TX 76705 254.755.7713, Fax 254.755.7746 General Manager: Allan Wichkoski Thursday, 7:00 p.m.

6767 North Freeway, Houston, TX 77076 713.644.5566, Fax 713.644.0889 President: Tim Bowers Tuesday, 1:00 p.m.

www.lufkindealers.com

www.iaai.com

December 2017

T e x a s

D e a l e r

www.heartoftexasautoauction.com

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, 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 Knowledge Base.

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

(questions found on pg. 20-21)

1. a. Strict foreclosure forgives any balance remaining; thus, only the fact of the repossession can be reported.

(July, 2017; Clarifying Some Repossession Questions).

2. True. Safety concerns authorize removal during a test drive. (January, 2017; FTC Amends Used Car Rule and Buyers Guide).

3. Inferior. A fraudulently obtained CCO does not affect the rights of the legitimate holder of the original title certificate. (February, 2017; How Safe Is That Texas Title?).

4. b. Failure to transfer within 60 days of sale triggers acceleration of the entire sales tax amount. (June, 2017; Deferred Sales Tax Law Hits 25).

5. c. Since there is no lien on a debtor’s personal effects, they must be returned upon demand, and can’t be held to enforce the debtor’s obligations. (March 2017; BHPH Compliance: Don’t Overlook Proper Handling of Personal Property in Repossessed Vehicles).

6. False. The buyer remains liable for the indebtedness under the terms of the contract entered into by the parties. The problem is that third parties may have purchased or loaned money against the vehicle without knowledge of a lien. (May, 2017; Dropped Liens Are Disastrous, But Avoidable).

7. d. The Comptroller’s Office takes the position that a GPS is for the lien holder’s benefit and does not fall under any exemption to sales tax; thus both equipment costs and air-time charges are considered to be taxable. (April, 2017; Use of Electronic Tracking and Disabling Devices Raises Legal Issues).

8. False. The “60-per cent” rule requires a creditor to use the private sale procedure after repossession, using the so-called “10-day letter.” (July, 2017; Clarifying Some Repossession Questions).

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

9. b. The Texas Supreme Court has upheld the right of the parties to a contract to agree to mandatory arbitration.

(September, 2017; CFPB Issues Rule to Limit Use of ClassAction Waivers [Congress has since killed the proposed CFPB ban on class action waivers]).

FORMS Burrell Printing

10. True. Selling “as is” disclaims warranties. It does not affect a buyer’s rights under the Deceptive Trade Practices Act, and it does not eliminate the obligation of a seller to disclose known material information about the product.

(October, 2017; Consumer Protection Law in Texas: The Deceptive Trade Practices Act).

800.252.9154 www.burrellprinting.com 42

Answers to the Annual Compliance Quiz 2017

T e x a s

D e a l e r

December 2017

board of directors meeting minutes October 16, 2017 | Hilton Austin Airport

compiled by Texas Dealer staff

At its meeting on Monday, October 16, 2017, TIADA took the following actions: President Greg Zak called the meeting to order at 12:51 PM. Greg Zak appointed Armando Villarreal to fill the Region 6 Vice President position.

Moved by Robert Blankenship, seconded by Juan Sabillon — PASSED

Treasurer’s Report

Treasurer Mark Jones presented the Treasurer’s report.

A motion was made to accept the report.

Moved by Vicki Davis, seconded by Robert Blankenship — PASSED

Minutes of Last Meeting

Chairman of the Board Kathrine Tolsch presented the minutes of the last Board of Directors Meeting.

A motion was made to accept the minutes.

President’s Report

Greg Zak announced his schedule this fall, including a visit to the Victoria chapter meeting in November. He explained the new regional map,

committee appointments, and ways to make board members’ calls to TIADA members more effective.

Executive Director’s Report

Executive Director Jeff Martin discussed his trip to the NIADA Leadership Conference in D.C. He updated the board on the local chapter dues structure and the association’s Hurricane Harvey relief efforts. He updated the board on NIADA’s BHPH commission’s activities. He led a detailed discussion of the proposed Dealer Protection Program.

Look to the McConkey Auction Group for Hemis, Power Strokes and everything inbetween.

Thursdays at 9:00 AM, PST Spokane, WA | daanw.com

December 2017

T e x a s

D e a l e r

An average of 800 late model trucks & SUVs in our lanes every week!

Fridays at 9:00 AM, PST Auburn, WA | daaseattle.com

View inventory at edgepipeline.com

43

•

S AV E T H E DAT E

S AV E T H E DAT E

The best dealers in Texas, the best education anywhere.

S AV E T H E D AT E

S AV E T H E D AT E

•

S AV E T H E D AT E

S AV E T H E D AT E

•

•

S AV E THE

DAT E

•

• S AV E T H E D AT E

Director of Special Projects Teresa Orkun updated the board on INDEPAC. Jeff Martin provided a recap of the 2017 annual conference and preliminary goals for the 2018 conference.

Director of Associate Member Relations Patty Huber gave an overview of affinity programs, the business partner program, and revenues to-date from each.

Mark Jones provided a FY17 budget update.

Old Business None.

JULY 29–31

S AV E T H E D AT E

2018

•

•

HILTON ANATOLE HOTEL, DALL AS, TX

S AV E T H E D AT E

S AV E T H E DAT E

Director of Dealer Compliance and Education Amber Hackett Crosby talked about the Compliance Consultation Service and the Attorney Referral Service.

New Business

A motion was made to accept America’s Auto Auction’s Business Partner Application.

Moved by Kathrine Tolsch, seconded by Greg Phea — PASSED A motion was made to adjourn the meeting.

Moved by Robert Blankenship, seconded by Eddie Hale — PASSED Meeting adjourned at 5:25 PM.

•

•

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.

S AV E T H E DAT E

•

S AV E T H E DAT E 44

T e x a s

D e a l e r

December 2017

Please Welcome Our Newest TIADA Members DEALER MEMBERS 6th Gear Auto Sales Chris Johnson 7912 Sheffield Ct North Richland Hills, TX 76182 AB’s Auto Sales Chris Warren 4418 Kelling St Houston, TX 77045 Auto Source of Texas Amir Kutob 1608 14th St. Plano, TX 75074 Auto Ya Group, LLC Delfino Pando 739 S.E. Military Dr. San Antonio, TX 78214 Brannan Auto Sales William Amm 102 Maple Street Suite 102 Denton, TX 76201 CarTopia Holly Lopez 21701 IH 35 Kyle, TX 78640

Cuernavaca Motors Francisco Guizar 12735 Nacogdoches Rd. San Antonio, TX 78217

Ricky’s Autoplex Barney Arana 4701 San Pedro Ave. San Antonio, TX 78212

Triple R Motor Company Rod Jenkins 8005 Vista Del Sol St. Azle, TX 76020

D G Auto Investments David Goyne 5540 East Belknap Haltom City, TX 76117

Ritz Auto Group LLC Mike Abbaszadeh 2650 Northaven Rd. Dallas, TX 75229

Vara Autoplex Jose Vara 511 Pine Sisken St Laredo, TX 78045

Direct One Auto Sales Zamont King 1919 Highway 6 S Suite C Houston, TX 77077

RP Auto Sales & Leasing Bijan Panbechi 1947 W Division St. Arlington, TX 76012

Elegant Auto Sales, Inc. Ruman Ibrahim 12330 Scarsdale Blvd Houston, TX 77089

RV Roundtable LLC Kevin Johnson 727 South Stemmons St., Ste. 100 Sanger, TX 76266

M1 Motors Inc Imran Memon 1032 Doras Drive Pflugerville, TX 78660

Starwood Motors Jesse Urizar 4641 Nall Rd Dallas, TX 75244

Max Auto Sales, Inc. - Branch Max Sauceda 6731 IH 35 S San Antonio, TX 78224

Texas Auto Bay LLC Wali Rahman 3112 E Abram St., #110 Arlington, TX 76010

ASSOCIATE MEMBERS AutoManager Inc. Mark Garland 7301 Topanga Canyon Blvd., Suite 200 Canoga Park, CA 91303 Automotive Capital Services Inc. Rob Cleary 16675 Addison Rd. Addison, TX 75001 Rice-Christ, Inc. Terence Christ 1504 109th St. Grand Prairie, TX 75050

ARE YOUR GPS DEVICES COMPLIANT? GET EXPERT COMPLIANCE TRAINING ON THE BEST WAYS TO USE GPS TO PROTECT YOUR ASSETS Arm yourself with the information you need, directly from industry leaders.

• Discuss how GPS can effectively help manage your portfolio • Federal and state regulations • Device best practices

CALL 800-828-1564 TODAY TO LEARN HOW TO GET AN EXPERT COMPLIANCE REVIEW

December 2017

T e x a s

D e a l e r

45

behind the wheel

by Jeff

Martin

Say It Isn’t so…

TIADA EXECUTIVE DIRECTOR

Saying goodbye to a friend in the Capitol

B

y now you have heard Speaker of the House Joe Straus will not seek re-election. He was favored to win his district and he was the odds-on favorite to be elected by the members of the House to a record breaking sixth term as Speaker. Much has been

46

written about the jostling for power created after the announcement and what Straus’s plans might be for the future. There will be plenty of time to debate that over the coming months.

What cannot be debated is that Joe Straus was a good friend to our association who always had an open door to our members. He was fair to the independent dealers in Texas and championed our cause for small business owner.

He has attended many of our conferences and had become a staple during our lobby days in Austin. I will miss him as our Speaker; I thank him for his service and wish the very best for him and his family. And, I hope we see him down the road very soon.

T e x a s

D e a l e r

December 2017

NOT ALL PROGRAMS ARE CREATED EQUAL Debt Cancellation Coverage Voluntary Debt Cancellation Coverage (DCC) is an alternative to requiring Comprehensive and Collision Insurance.

Benefits NEW PROFIT CENTER REDUCES EXPENSES

DCC provides debt forgiveness in the event of a Total Loss and is offered at the point of sale.

COLLATERAL PROTECTED

See what our clients are saying:

INCREASED CASH IN DEAL

“Our Debt Cancellation Program, serviced through AVP, was one of the best financial decisions our company has ever made in its 21 year history.”

Michael Brill, President B&B Automotive Inc.

INCREASED CSI FINANCED WITH CONTRACT FORMS REVIEWED BY OCCC

AVP DEALERS MAKE MORE MONEY PERIOD! www.avpadmin.com

913.396.5480

*Substantial Discounts for TIADA Members

TEXAS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750

PRSRT STD

U.S. POSTAGE

PA I D

JEFFERSON CITY, MO

PERMIT NO. 210

TEXAS » Manheim Central Texas » Manheim Dallas » Manheim Dallas-Fort Worth » Manheim El Paso » Manheim Houston » Manheim San Antonio » Manheim South Houston » Manheim Texas Hobby » Manheim West Texas manheim.com 1-866-MANHEIM (626-4346)

...RIGHT IN YOUR BACKYARD. See how Manheim can help you succeed — visit your local auction or manheim.com today.

© 2016 Manheim, Inc. All rights reserved.

Manheim M logo is a trademark of Manheim, Inc.