Texas Dealer November 2022

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In this issue:

– Michael W. Dunagan: Does the State Stand Behind Texas Title Certificates? – Why Your Automotive Dealership Needs to Focus on Delivering Exceptional Customer Experiences – Data Breach and Information Security Incident Response for Auto Dealers – On the Road with TIADA

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TIADA Board of Directors PRESIDENT Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 PRESIDENT ELECT Eddie Hale/Neighborhood Autos PO Box 1719 Decatur TX 76234 CHAIRMAN OF THE BOARD Mark Jones/MCMC Corporate 264 Exchange Burleson, TX 76028 SECRETARY Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 TREASURER Greg Phea/Austin Rising Fast 8024 IH 35 North Austin TX 78753 ICE PRESIDENT, WEST TEXAS V (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 ICE PRESIDENT, FORT WORTH V (REGION 2) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas TX 75237 ICE PRESIDENT, DALLAS V (REGION 3) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas TX 75218 ICE PRESIDENT, HOUSTON V (REGION 4) Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301 ICE PRESIDENT, CENTRAL TEXAS V (REGION 5) Robert Blankenship/Texas Auto Center 6809 Suite B S IH35 Austin, TX 78744 ICE PRESIDENT, SOUTH TEXAS V (REGION 6) Armando Villarreal/McAllen Auto Sales, LLC 4215 S. 23rd St McAllen, TX 78503 ICE PRESIDENT AT LARGE V Lowell Rogers/11th Street Motors 1355 N 11th St, Beaumont, TX 77702 ICE PRESIDENT AT LARGE V Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915 TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org

Vo l u m e X X I I / I s s u e 11 / N o v e m b e r 2 0 2 2

TexasDealer contents

4 Officers’ Message

by Vicki Davis, TIADA Secretary

10 On The Cover: Interest Hikes Could Bring Early Pain, Eventual Gain, to Dealer Ecosystem by Daryl Lubinsky

15 Data Breach and Information Security Incident Response for Auto Dealers by Anne Marie Lee-Edwards

17 TIADA Membership Application 19 Legal Corner: Does the State Stand Behind Texas Title Certificates? by Michael W. Dunagan

20 Upcoming Events 27 Regulation Matters: FTC, CFPB and DOJ Enforcement Actions by Earl Cooke

33 Board of Directors Meeting Minutes 35 Why Your Automotive Dealership Needs to Focus on Delivering Exceptional Customer Experiences by Larisa Bedgood

37 On the Road with TIADA by Stephen Pallas

40 TIADA Auction Directory 45 Local Chapters 45 New Members 46 Behind the Wheel by Jeff Martin

Did You Know? The deadline for meeting the

FTC Safeguards Rule requirements is coming up on December 9, 2022. See page 25 for more information about TIADA’s Safeguards Rule Course. Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

Editor: Stephen Pallas

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

officers’ message by

Keys to Successful Delegation


elegation: this is a word I think most business owners and managers struggle with. We often do not want to give up a job or duty to someone else because we can just do it ourselves and we know it will be done correctly and we will not have to check it. But, at the end of the day, we cannot do everything, and we must rely on our employees to do their jobs and rely on the training they have been given to get the job done. We must, however, inspect what we expect. By that I mean, we must teach our staff on how to do a job, set specific and clear expectations, and then periodically check them. When employees are doing something incorrectly, it is our responsibility to show them what they are doing wrong. When you have successfully implemented these steps, you will achieve the kinds of delegation you want for your business. Sometimes this can be frustrating. If, for example, an employee does not catch on as fast as you think they should to complete a project, you may feel compelled to take over the task. Just remember you have been doing this a long time and they have often just started doing it. Remain patient, have empathy for your staff, and trust in the process. Delegation is something I struggle with all the time. I believe you must prioritize your time, regardless of your job title. You must do the most important jobs and delegate the rest to others. A friend of mine once told me he lived by the 80% rule. He said no one is going to do the job exactly as you would, and he felt if they do it 80% of the way he wanted, then he could live with that. I

Vicki Davis

A-OK Auto Sales (Porter) TIADA SECRETARY

adopted his rule and feel it has taken a lot of pressure off myself as a business owner and my staff. Sometimes you will be (and I sometimes do get) aggravated if it is not done exactly the way you would like. When I remind myself about the 80% rule, I find it much easier to move on. When you have a job that you are going to delegate out, look to the strengths of your team and delegate accordingly. Some will be good at certain things, and other employees will show strength elsewhere. I have one employee that is great with anything to do with Microsoft Excel, and she is tasked with anything that has or needs an Excel spreadsheet. I also believe delegating work out promotes teamwork and makes your employees feel important. If we do not delegate work out to our team, we do not need them… and believe me, we need them. Another reason to learn to delegate is you do not want any one person to have too many responsibilities. If you lean too heavily on any individual, anything that happens to them can cause massive disruption in your business. I once had a management-level employee suffer a very bad case of COVID. Although I had encouraged her to delegate some of her work to others, she would not. She had a very difficult time catching up when she came back to work, but if she had delegated some of her work, things would have been much more efficient for her and for the business. We hire good people to help us, and we must all learn to work as a team. This does require delegation, but just remember to inspect what you expect, and your delegation will get much easier to digest.

If we do not delegate work out to our team, we do not need them…and believe me, we need them. 4

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Keeping Your BHPH Dealership Legal & Compliant Dealer Academy Presenter

Michael W. Dunagan,

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


9:00am - 4:00pm


$249 Members, Each Additional $199

(must be from same dealership)

$498 Non-members

Sponsored by:

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One of the quickest ways to ruin a dealership’s profit margin is to be hit with a fine from a regulatory agency, or to lose a lawsuit filed by a customer. This seminar will focus on the practical side of compliance that understands you have a business to run — and you want to run it right. This seminar from TIADA attorney Michael W. Dunagan is the final answer in BHPH compliance. Mike speaks dealer, and with 45 years of experience representing hundreds of BHPH dealers, he knows your business inside and out. Attend this workshop and learn all about: • Properly handling f inancing • How to prepare for (and on repairs survive) an OCCC exam • Real-life DTPA court cases • What to do when the Bankruptcy Notice arrives • Body shops, mechanics, towing and storage issues • Repossessions: f rom A to Z • Specif ic lien-protection steps • TxDMV Enforcement – Title Management Issues • Federal regulations affecting BHPH dealers • Most common advertising violations • Alternatives to traditional insurance • Your right to insurance proceeds • Most common OCCC customer complaints • Using the courts to get your car back • How to respond to an attorney demand letter • Procedures to stay off the CFPB’s radar • Dealer issues in Comptroller audits • Techniques to avoid consumer lawsuits

Monday, December 12, 2022 Houston, Texas Sheraton Houston Brookhollow Hotel 3000 North Loop | West Houston, TX 77092 713.688.0100

To register visit 6

Txiada.org or by phone at 512.244.6060. T e x a s

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JULY 23-25, 2023 SAN ANTONIO, TX

on the cover by Daryl Lubinsky


ross Pointe Auto in Amarillo, Texas, recently sold a 2020 F-150. The customer’s monthly payment on the vehicle is $552. Six or seven months ago, that customer’s payment would have been $477, said Cross Pointe Auto Owner and General Manager, Dean Sather. “So, their payment on this vehicle just went up 75 bucks, purely interest,” Sather said. Sather was referring to the Federal Reserve’s recent interest rate hikes: The late-September increase was the fourth this year. David Lobel of Lobel Financial provided a simple summary of the situation, noting that higher interest rates mean purchasing or expanding through credit is more expensive for consumers and businesses.


That should eventually slow demand, he stated. The hikes, combined with other factors, like supply chain issues, have affected the entire independent dealer ecosystem, including dealers, customers, and lenders. Those groups will feel various nearterm and long-term effects from the higher interest rates.

Effects On The Independent Dealer Ecosystem

Jonathan Smoke, Chief Economist for Cox Automotive, said that for the near term, the feeling that the industry will see pain early on to bring stable prices and control inflation is a reality. “We’re likely to see an environment that’s tougher to sell vehicles

and tougher to manage a business, because costs are still going up, and in the near term, it means the demand side gets hurt as well,” said Smoke. Longer term, Smoke believes that for the end of this year and likely much of next year, the environment should return to being strong and much more stable for dealers. Unemployment could increase in percentage from the low threes to around the low sixes percent. “Although an increase of any type is never a good thing, an approximate 3% increase for a recession is relatively mild,” Smoke said. “That means most people are going to hold on to their jobs, we’re going to return very quickly to a very strong U.S. economy that has a strong labor market, and with that T e x a s

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always comes the demand for vehicles,” Smoke said, adding that the inventory shortages should eventually ease. “If interest hikes reduce inflation, that’s good for consumers, whose wage increases will boost their bottom line and help them buy bigticket items like cars,” Smoke said. “And that will help dealers.” Smoke brought up the 2022 Cox Automotive Dealer Sentiment Index, and one survey question asked independent dealers which aspects of the industry were holding back their business. The economy was the top answer. Interest rates came in at No. 4. “And the Fed communicated they’ve got at least another point and a half to go, so that means floor planning is also likely to get more expensive,” he said. Smoke was speaking in late September as the East Coast was preparing for Hurricane Ian, and he could see an analogy with the interest rate situation. “A key takeaway from my reading of the Fed meeting last week was we need to be packing an umbrella for the vehicle market,” Smoke said. “It’s likely to get tougher before it gets better. But dealers are natural entrepreneurs and have gone through cycles before. This is not going to be remotely close to the worst cycle that they’ve likely ever experienced, and I think the one challenge with this environment is we’re going to be seeing interest rates that, by the end of this year or early next year, are going to be at levels we haven’t seen in 20 years.” Millennials and others who have not owned multiple cars have never seen interest rates quite like that. An adjustment period will be necessary for dealers to manage expectations and help customers navigate an environment in which financing purchases cost more money. But Smoke is confident dealers will handle that situation and be successful. He said that many dealers were November 2022

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selling cars just fine in the late ’90s and early 2000s at the time rates were previously this high. “I have no doubt that the audience will take it in stride and know that means they need to be conservative with their inventory, they need to be prepared to know that there are going to be challenges with their customer base being as strong as it has been, but … you know there will be a positive at the end of this, hopefully, stronger and better for the bottom-line economic situation,” he said.

More on the Dealer Portion of the Ecosystem

Maria Pericaz of Express Auto Financial in Grand Prairie, Texas, and Sather at Cross Pointe Auto addressed the interest rate situation by noting that fewer people are buying cars for the “experience” of buying. They’re buying cars because they have to. Pericaz said interest rate increases have played a significant role in her company’s recent slowdown in sales. “It used to be an exciting experience and used to be something like, ‘I know I have a good car, but I want something better.’ Now, they’re saying, ‘I know my car is falling apart; I prefer to keep fixing it instead of buying.’ I feel like they are seeing not only interest going up but all their expenses going up because of it, so they’re making choices to save money versus expense it,” Pericaz said. Sather expressed the situation similarly, describing the higher-end vehicle market as “more of a need buy versus a want buy.” “They had their car totaled by hail; someone ran a stop sign and hit him and totaled their car; that’s a need buy versus a want,” Sather said. “‘My wife wants to get a new car, so we’re going to go look at Escalades.’ There’s a lot less of that. The way I see it, at least in our market, is it’s going to adjust the people

that are out buying as the economy is constricting. The stock market is definitely hurting. Interest rates are going up. There’s a whole lot more need buying versus want buying because the cost for that same vehicle today versus what it would have cost them five or six months ago, as I showed you, there’s a $75 a month difference.”

More on the Customers

Ken Shilson, an automotive consultant specializing in the buy-here, pay-here business, addressed how interest rates affect buy-here, payhere customers, describing those customers as “unbankable” consumers with very limited liquidity and financial capacity who could not qualify for a traditional loan and are entering into loans with very high interest rates. “An increase in interest rates doesn’t necessarily affect their borrowing cost, because it’s already maxed out,” Shilson said. “But during times like now, when those customers possess limited liquidity, they must find ways to pay their bills. So they start taking out credit card debt,” Shilson added. “And they max out their credit card debt, which is at a higher interest rate, which makes their liquidity situation even worse,” Shilson said. “Those customers often go on to obtain payday loans or cash advances, which are also at very high interest rates. Any increase in their cost of credit further limits their liquidity,” Shilson said. “So it does have an adverse effect on the customer because he has less capital to work with, he’s living off credit cards and other means, and so that just increases the cost of that situation,” he said. “It reduces his liquidity.”

More on the Lenders

Sather at Cross Pointe Auto said his company does business with a local credit union that raised its rates effective Sept. 21. This is after 11


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having already raised the interest rate three times prior to that, on August 1, July 18 and April 1. He said many lending institutions are raising rates more frequently. “For a while there, you might get a rate increase every seven or eight months, nine months, now we’re seeing some of them every month bumping their rates up,” Sather said. “Of course, as the rates keep going up, they’re bumping their ABC credit rates higher.” Shilson said banks are seeing the opportunity to increase the yield on their loans, but the concern for them is whether buyhere, pay-here customers will be able to pay in the future. “There’s no more government stimulus, there are no more additional unemployment benefits, so their concern is, without those supplements, will these customers be able to pay for the auto loan? The answer is we just don’t know,” Shilson said. “We just have to hope that they prioritize the car payment as they have in the past and will continue to make the car payments because they need the transportation.” Lobel summed up the increased interest rates’ effects on the auto dealer ecosystem, noting that auto finance companies have seen their cost of funds increase dramatically. He stated that those higher interest rates will eventually be passed through to dealers’ customers, adding that monthly payments will increase and purchasing a vehicle will become less affordable. “In addition, as the likelihood of a recession increases, lenders will tighten underwriting guidelines to minimize the increase in credit losses typical in an economic downturn,” Lobel stated. “Both of these factors will contribute to reduced sales at dealerships.” November 2022

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Data Breach and Information Security Incident Response for Auto Dealers by Anne Marie Lee-Edwards

Compliance Specialist at AutoSavvy



hether an auto dealer conducts third-party or in-house financing, they retain a significant amount of personal information. The security of this information is increasingly important as data breaches and other cybersecurity issues become more frequent. In addition to any potential or existing regulations governing the storage and handling of this information, the responsibility a dealer has to its customers to protect that information is paramount to fostering a relationship built on trust.

Rule/Affirmative Duty TEXAS RULE

The Texas-specific rule governing data breaches was modified as of September 1, 2021, and the complete rule can be found in Section 521.053 of the Texas Business & Commerce Code. The Texas rule allows 60 days for the notice of the breach to be given to the Texas Attorney General and only requires such notice if the breach affects at least 250 Texas residents. However, the rule also November 2022

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requires that the company experiencing the breach provide direct notification to all persons, not just Texas residents, whose sensitive personal information was acquired or reasonably believed to be acquired as the result of the breach, regardless of the number of affected persons. Accurately assessing the breach and providing the correct notice to affected persons is discussed further below.


In addition to the requirements at a Texas state level, there are various Federal laws governing information security and data breach notifications and responses. The most relevant rule for auto dealers is the Gramm-LeachBliley Act (GLBA). Under this Act, an organization’s duty to notify the appropriate regulator, law enforcement, and potentially affected consumer begins when it becomes aware of the potential information security incident. The dealer must coordinate the notification letter to its consumers as soon as possible. The Federal Trade Commission (FTC) offers a wealth of information and advice regarding data breach responses on its website at 15

www.ftc.gov. Seeking the advice of your legal counsel is always the best way to determine what the dealer’s notification duties are to both its consumers and its regulators.

Response and Compliance with the Rule

The key to a successful data breach response is to engage the right key people as soon as a breach is discovered. By implementing the continuous monitoring requirements under the FTC Safeguards rule, any dealer should be alerted immediately to a suspected data breach. The first sign of a potential breach is the most critical time to take steps to decrease the damage done. The information technology (IT) department or outsourced IT professional(s) for the dealership should take point on any remediation measures to assess the problem and stop data loss. Key questions you should ask an external IT professional include: W hat experience does the firm have with responding to data breaches? W hat is the timeframe to determine what data was compromised and for remediation? In conjunction with the IT department, it is equally crucial to engage with legal counsel. Whether this is internal legal counsel or someone outside of the dealership, finding an attorney who can coordinate the response within the allotted timeframe is essential. When seeking outside counsel, key questions you should ask legal counsel include:

W hat experience the firm/attorney has with handling data breach responses? D oes the firm/attorney have a contracted document review team or an internal document review team? D oes the firm/attorney have the current capacity to meet the response deadlines and other requirements? In cases where a formal response or notification is required to be sent to each affected individual, your legal counsel may use their own document review team or suggest retaining an outside document review firm, depending on the size of the breach and the required response deadlines. These firms specialize in the timely and accurate response and reporting procedures for data breaches and can provide various solutions for dealers experiencing a data breach.


Prevention and information security policies are always the most effective forms of data protection. Strict compliance with the requirements under FTC Safeguards rule is key to preventing information security and data breach incidents. The guidance of the FTC on these matters is a valuable tool that is already at the disposal of every auto dealer and should be used as each dealer implements both security measures and responses to a suspected incident.



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TIADA texas independent automobile dealers association

Become a TIADA Member Business Name: ____________________________________________ Select one:

Dealer Member

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________ City: _________________________________________ State: _______ Zip: __________________ County: _____________________________ E-mail address: _____________________________________________ Business Phone: _______________________ Fax: ________________________ Cell Phone: ___________________________________________ Dealer P Number: ___________________________________________

TIADA texas independent automobile dealers association

Membership Dues: $499 New Member

Good through 12/31/2023. Pay full amount today and receive the rest of 2022 for free.

Renewing Member

good through 12/31/2022. Dues include NIADA 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



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.

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EPI-TIADAhalf NOV2022.pdf











11:25 AM

legal corner

Does the State Stand Behind Texas Title Certificates? Michael W. Dunagan by

Dealer’s Question: If the state issues a title certificate to a motor vehicle, does the state stand behind the title to the vehicle? Can I rely on the fact that the state issued the title certificate to a vehicle that I buy to ensure that I receive a good title? Answer: Unfortunately, the answer to both questions is no.


he Certificate of Title Act was passed to prevent fraud in the purchase and sale of motor vehicles by making the certificate of title to a motor vehicle the primary and controlling evidence of ownership. The possession of a certificate of title, however, is not a guarantee by the state that the holder is the true owner of a vehicle. Ownership of a motor vehicle is governed by the common law rules of property ownership. Thus, there is a difference between “title,” meaning true ownership recognized by the law, and “certificate of title,” meaning a piece of paper issued by the state that creates a presumption of ownership. While the certificate provides evidence of ownership, and a presumption that the holder is the true owner, there are many situations where the holder of a title certificate is not the true owner. For instance, a forged assignment usually does not transfer title, and someone taking possession of a vehicle from the forger may have the original title certificate which, on its face, appears to vest title in the holder. But, under the laws governing

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[One] area where the certificate of title may not indicate true ownership involves the use of a certified copy original title (CCO). The Certificate of Title Act authorizes the Texas Department of Motor Vehicles to issue a certified copy (or duplicate title) when an application is submitted by the registered owner (if there is no lien) or lien holder reflecting that the original has been lost or destroyed. personal property, anyone taking from the forger gets no title and the true owner of the vehicle is the person from whom the forger attempted to steal the vehicle. By proving true ownership under the law of property, the owner may overcome the presumption of ownership that the certificate of title carries. Another area where the certificate of title may not indicate true ownership involves the use of a certified copy original title (CCO). The Certificate of Title Act authorizes the Texas Department of Motor

Vehicles to issue a certified copy (or duplicate title) when an application is submitted by the registered owner (if there is no lien) or lien holder reflecting that the original has been lost or destroyed. Since there is little if any effort to verify the validity of the application, it is easy to see how a thief can obtain what appears to be a valid, official, original, negotiable title certificate. Over the years, we’ve received a large number of calls from vehicle lien holders who have found that their collateral has been 19

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

December 2022 12 Keeping Your BHPH Dealership

Legal & Compliant Sheraton Houston Brookhollow Hotel 3000 North Loop West Houston, TX 77092

OTHER TIADA EVENTS February 2023 6 Board of Directors Meeting Austin, TX

7 TIADA Day at the Capitol Austin, TX

April 2023 24 Board of Directors Meeting Austin, TX

July 2023 23 Board of Directors Meeting

JW Marriott Hill Country Resort, San Antonio, TX

23-25 TIADA Conference and Expo JW Marriott Hill Country Resort San Antonio, TX


A Houston dealer recently found out the hard way that a stateissued title certificate can’t always be relied upon ... the vehicle seller, who had a freeand-clear original title, applied for and obtained a CCO. With two title certificates in hand, he first obtained a loan at a cashfor-title business, giving the original title as collateral. He then went to the dealer’s lot, making the sale on the CCO. assigned to a new “owner” on a CCO that the true lien holder never authorized. In many cases involving fraudulently obtained CCOs, a subsequent review of the title history documents reveals that an application was made in the lien holder’s name. Proof of identity and authorization to make the application that was presented to the DMV is often a fake business card showing that the applicant is an employee of the lien holder. CCOs continue to be a major tool used by thieves and fraudsters to attempt to remove valid liens from title records and “sell” the vehicles to unsuspecting buyers, or to obtain loans from cash-for-title lenders. The Title Act states that any subsequent purchasers on a CCO take only the title the applicant actually possessed. This means that if the CCO is issued to a thief or forger, who is not the true owner or lien holder of the vehicle, all assignees on the CCO chain take title that is inferior to the true owner.

Unfortunately, once the vehicle is transferred on the fraudulently obtained CCO, the true owner or lien holder must bear the expense of suing the state and the other parties to have the lien validated by a court, and to have the other title certificate invalidated. Even though the forgery on a title application form is probably a felony criminal offense, law enforcement agencies will usually not get involved. Law enforcement will usually also not get involved in disputes over ownership between innocent parties (the lien holder on one side and a “buyer” or lender on the other), claiming that the situation is a “civil matter.” There is a common belief that issuance of a CCO automatically “nullifies” the original title certificate. The Texas Title Code does have a provision that states that the issuance of a “valid” CCO does in fact nullify the prior original (the key word here being “valid”). The State’s title system makes the assumption that the original title certificate is T e x a s

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in fact lost or destroyed, and that, if the CCO is used to make the first transfer after its issuance, it becomes the title of record that the system recognizes. This policy is a DMV record-keeping procedure and does not affect true ownership of a vehicle. In cases of conflict between two certificates, actual ownership will be determined by a court under common law concepts of ownership. If fact, in almost all court cases that have addressed this situation, the holder of an original certificate has been found to hold title superior to the holder of a CCO that was subsequently improperly issued. The ultimate determination in case of a conflict between two or more certificates to the same vehicle will be made by a court of law, not the administrative policy of the title system. The motor vehicle title system in Texas is known as a recording system. That is, DMV records on its computer system information that comes from other parties, such as county tax assessors and individuals. The information, unless obviously invalid on its face, is accepted as presented without verification. The issuance of a title certificate based on information submitted is not a statement of guarantee from the state that the certificate reflects true title to the vehicle. The San Antonio Court of Appeals, in a case involving a title dispute, summed up the position of the state with regard to the issuance of titles: The Texas Department of Motor Vehicles is not and never claimed to be an insurer of the genuineness of the legal title of a vehicle...The state does not guarantee or warrant that the one named on the title certificate is the true owner...A prudent buyer must look to the whole context of a sale, not merely to the certificate...Simply because the state mandates November 2022

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registration does not mean the state compels buyers and sellers to rely exclusively on title certificates as proof of ownership (emphasis added). The Court also pointed out that the state enjoys protection from liability under the doctrine of sovereign immunity. This means that the state can’t be sued for damages it causes unless it agrees (through an act of the legislature). We’ve also seen cases where a

true owner of a vehicle can use a CCO to commit fraud. A Houston dealer recently found out the hard way that a state-issued title certificate can’t always be relied upon. He purchased a vehicle from an individual who showed up at the dealer’s lot with a CCO title to the vehicle. The dealer purchased the vehicle and put it into his inventory. After the vehicle was sold to a retail customer, the dealer submitted title transfer papers to the county. The title application

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was rejected by the county on the grounds that the original title certificate had been submitted two days earlier by a cash-for-title business to record its lien. It appears that the vehicle seller, who had a free-and-clear original title, applied for and obtained a CCO. With two title certificates in hand, he first obtained a loan at a cash-for-title business, giving the original title as collateral. He then went to the dealer’s lot, making the sale on the CCO. While it would be impossible to discuss in this limited space all the various types of title conflicts, there are several general rules that may help avoid title problems: E veryone who sells a vehicle and transfers title in Texas guarantees good title to the buyer. The problem is that the guaranty of the seller is only as good as the person (or business) giving the guarantee. If the seller is a thief, there usually are no assets to satisfy the buyer’s claim of breach of warranty of good title.

Th e certificate of title is only a presumption of title. The best guarantee of good title is buying from someone who has the integrity and financial ability to stand behind the vehicles sold. Wholesale auto auctions add their guaranty of good title to the ones given by sellers to auctions buyers. B eware buying from individuals who appear on your lot with a vehicle they must sell in a hurry. Even though the title certificate may appear to be genuine, the vehicle could be stolen or may have been purchased with a hot check, or it may be just one of multiple title certificates. I f the price of a vehicle makes it a “steal,” it just might be. Don’t let the prospect of a quick profit cloud good business judgment. R emember that you guarantee good title on every vehicle you sell. Even if you are the victim of a thief who sold you the vehicle,

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you are required by law to make it good to your buyer. The defenses of “I didn’t do anything wrong” or “I relied on the documentation issued by the state” do not apply here. D o not take a CCO unless you know the seller will stand behind the vehicle. The seller may be a victim, too, and feel he or she has no obligation to take the loss. For every CCO, there is generally at least one other title certificate out there somewhere. It may actually be lost or destroyed, or it may be in the hands of a seller, floorplanner or lien holder (such as a cash-for-title business). B e wary of the seller who wants cash or a check on the spot, especially on Friday afternoon or Saturday. There may be a reason he or she wants money so fast. U se extreme caution when buying from non-dealers. A licensed independent dealer is bonded and has at least $50,000 backing up the titles the dealer assigns. A non-dealer, on the other hand, is not bonded and is not likely to have non-exempt assets from which a judgment can be collected. It is important that someone whose business depends upon obtaining true title and ownership of motor vehicles understands the nature of title certificates. By applying that knowledge with some common sense and caution, major losses can hopefully be avoided. Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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Auto Dealer Solutions

regulation matters FTC, CFPB and DOJ Enforcement Actions



n this edition of Regulation Matters we will look at a few recent enforcement actions taken by the Federal Trade Commission, Consumer Financial Protection Bureau, and Department of Justice. These enforcement actions are a great way to know what the focus of the agencies will be going forward. Please let these companies’ misfortunes help you prevent a similar fate by reviewing your own internal policies at this time to make sure you comply with the law.

Right to Repair

The Federal Trade Commission took action against motorcycle manufacturer Harley-Davidson Motor Company Group, LLC. According to the FTC’s complaints, Harley was imposing illegal warranty terms that voided customers’ warranties if they used anyone other than the company and their authorized dealers to get parts or repairs for their products. The FTC also alleges that Harley-Davidson failed to fully disclose all of the terms of its warranty in a single document, requiring consumers to contact an authorized dealership for full details. The FTC alleges that these terms harm consumers and competition in multiple ways, including: Restricting consumers’ choices: Consumers who buy a product covered by a warranty do so to protect their own interests, not the manufacturer’s. Harley’s warranty improperly implied that as a condition of maintaining warranty coverage, consumers had to use the company’s part or services for any repairs. Costing consumers more money: By telling consumers their warranties will be voided if they choose third-party parts or repair services, Harley forces consumers to use potentially more expensive options provided by the manufacturer. This violates the Warranty Act, which prohibits these clauses unless a manufacturer provides the required parts or services for free under the warranty or is granted an exception from the FTC. Undercutting independent dealers: The Warranty Act’s tying prohibition protects not just consumers, but also independent repairers and the manufacturers of aftermarket parts. By conditioning their warranties on the use of authorized service providers November 2022

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Earl Cooke


These enforcement actions are a great way to know what the focus of the agencies will be going forward. Please let these companies’ misfortunes help you prevent a similar fate by reviewing your own internal policies at this time to make sure your polices comply with the law. and branded parts, Harley infringed the right of independent repairers and manufacturers to compete on a level playing field.

Fair Credit Reporting Act and Hyundai Capital America

On July 26, 2022, the CFPB issued a consent order against Hyundai Capital America (Hyundai). Hyundai furnishes credit information on the auto loans it services by sending monthly data files to consumer reporting 27

companies. The CFPB alleges that over several years Hyundai repeatedly furnished information containing numerous systemic errors to consumer reporting companies and that it knew of many of these inaccuracies for years before attempting to fix them. When Hyundai furnished inaccurate negative consumer information, it may have negatively affected consumers’ access to credit. The CFPB alleges that Hyundai violated the Fair Credit Reporting Act (FCRA) and Regulation V by failing to promptly update and correct information it furnished to consumer reporting companies that it determined was not complete or accurate, and continuing to furnish this inaccurate and incomplete information; failing to provide the FCRA-required date of first delinquency on certain delinquent or charged-off accounts; failing to modify or delete information disputed by consumers that it found to be inaccurate; failing to establish reasonable identity theft and related blocking procedures to respond to identity theft notifications from consumer reporting companies such that Hyundai continued to report such information that should have been blocked on a consumer’s report; and failing to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information provided to consumer reporting companies. According to the CFPB, these FCRA violations also constituted violations of the


Consumer Financial Protection Act of 2010 (CFPA). The CFPB also concluded that Hyundai’s use of ineffective manual processes and systems to furnish consumer information was unfair in violation of the CFPA. The consent order requires Hyundai to take steps to prevent future violations and to pay $13,200,000 in redress to affected consumers and a $6,000,000 civil money penalty.

DOJ and Servicemembers Civil Relief Act

The Department of Justice recently made settlements with two financial institutions for alleged violations of the Servicemembers Civil Relief Act. One was related to repossessions and lease terminations and the other was related to the interest rate charged to servicemembers who qualify for a reduced rate under the SCRA.

Lease Termination and Repossession

The SCRA provides certain legal and financial protections for servicemembers and their families. The law prevents an auto finance or leasing company from repossessing a servicemember’s vehicle without first obtaining a court order, as long as the servicemember made at least one payment on the vehicle before entering military service. The SCRA also allows servicemembers to terminate a vehicle lease early after entering military service or receiving certain qualifying military orders. (cont’d on pg. 30)

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November 2022

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If a servicemember terminates a vehicle lease under the SCRA, the leasing company may not impose any early termination charges and must refund, within 30 days, any rent or lease amounts paid in advance. In a complaint filed in the U.S. District Court for the Northern District of Texas, the DOJ alleged that, since 2015, GM Financial has improperly denied servicemembers’ lease termination requests, charged servicemembers improper early termination fees or lease amounts after the date of termination, and failed to provide servicemembers timely refunds of lease amounts they paid in advance. The department alleged that GM Financial’s failure to properly handle servicemembers’ lease termination requests resulted in over 1,000 SCRA violations. The complaint also alleges that, since 2015, GM Financial has unlawfully repossessed 71 vehicles owned by SCRA-protected servicemembers. GM Financial agreed to pay $3,534,171 to the affected servicemembers and a $65,480 civil penalty to the United States. GM Financial will pay at least $10,000 to each of the 71 servicemembers who had their vehicles repossessed. For the servicemembers who were charged an improper fee when they terminated their vehicle leases, GM Financial will refund the fee and will pay additional damages of three times the fee or $500, whichever is greater. Servicemembers whose requests to terminate their vehicle leases were improperly denied will

receive a refund of certain payments plus up to $5,000 in additional damages. The order also requires GM Financial to repair the servicemembers’ credit, provide SCRA training to its employees, and implement policies and procedures that comply with the SCRA.

Interest Rate Reduction

The SCRA provides that interest on any debt incurred by a servicemember before entering military service is limited to 6 percent per year. To take advantage of the interest rate cap, a servicemember must provide the creditor with written notice and a copy of their military orders or other documentation of their military service no later than 180 days after leaving service. After receiving notice, a creditor must forgive any interest in excess of 6 percent retroactively back to the date orders are issued calling the servicemember to active duty. The DOJ alleges problems with a bank’s handling of interest rate benefit requests. The DOJ alleges that the bank was failing to apply interest rate benefits back to the date orders were issued calling the servicemember to active duty. The department also determined that the bank had improperly delayed the approval of interest rate benefits to some servicemembers. To resolve those allegations, the bank entered into a settlement requiring the company to pay over $700,000 to servicemembers and a $60,788 civil penalty and to be subject to monitoring by the DOJ.



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November 2022

On-Demand Offerings

Featured Courses TIADA designed and implemented some important on-demand courses to give dealers quality educational programs they can access throughout the year. These programs are essential for dealers to stay compliant. They offer flexibility, so you can complete them according to your schedule. These courses are designed for any dealers with questions related to various regulations that affect their businesses.

Repossession 101: What You Need to Know In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of self-help repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.

$98 for two 1-hour videos

The Basics of Transferring Titles* Want to avoid having your title transfer paperwork rejected at the tax office? This online course is designed to walk you through the title transfer process and is best suited for people new to transferring titles or those who want to brush up on the basics. This course has been reviewed for accuracy by the Tax Assessor-Collectors Association of Texas.

$48 for the course

To register visit Txiada.org/on-demand Call us at 512.244.6060 or email us if you need assistance.

Texas Independent Automobile Dealers Association

*Also available in Spanish

board of directors meeting minutes October 27, 2022 Hilton Austin Airport | Austin, TX

compiled by Texas Dealer staff

Board Members in Attendance:

Lowell Rogers, Russell Moore, Greg Reine, Vicki Davis, Eddie Hale, Ryan Winkelmann, Mark Jones, Brad Kalivoda, Chad Lancaster, Bob Blankenship

TIADA Staff in Attendance:

Jeff Martin, Earl Cooke, Teresa Orkun, Patty Huber, Stephen Pallas At its meeting on Monday, October 27, 2022, TIADA took the following actions: President Ryan Winkelmann called the meeting to order at 12:50 p.m.

Minutes of Last Meeting

Secretary Vicki Davis presented the minutes from the last meeting. A motion was made to accept the minutes. Moved by Eddie Hale, seconded by Bob Blankenship — PASSED

Treasurer’s Report

committee appointments with the board. Board members reported on their member outreach calls.

Executive Director’s Report

Executive Director Jeff Martin reported on various meetings and conferences staff attended, provided a report on the 2022 Conference & Expo, and talked about the upcoming TIADA Day at the Capitol. He also updated the board on recent staff changes and discussed pursuing market research and reports as a member benefit. Associate Executive Director Teresa Orkun presented a report on dealer professional development and membership. Director of Business Development and Compliance Earl Cooke presented a report on governmental relations and INDEPAC. Director of Associate Member Relations Patty Huber presented an associate member update. Mark Jones presented FY’22 and FY’23 budget.

New Business

Mark Jones presented the Treasurer’s Report on behalf of Treasurer Greg Phea who was absent.

A motion was made to purchase $10,000 in I bonds. Moved by Eddie Hale, seconded by Brad Kalivoda — PASSED

Discussion took place regarding diversification of reserve account.

A motion was made to adjourn the meeting.

A motion was made to accept the Treasurer’s report.

Moved by Vicki Davis, seconded by Mark Jones — PASSED

Moved by Vicki Davis, seconded by Russell Moore — PASSED

Ryan Winkelmann adjourned the meeting at 4:50 p.m.

President’s Report

Respectfully submitted, Vicki Davis, Secretary

Ryan Winkelmann discussed TIADA’s attendance at the El Paso IADA golf event, the Weslaco and Abilene dealer meetings, and the NIADA Leadership Conference. He also shared the

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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.


Yes, I would like to help with TIADA’s grassroots effort! ______________________________________________________________________________________

Please list me as a sustaining donor. I would like to support my industry by making a monthly credit card donation of $______________ Add me to the KEY-PERSON list! I know (Name of Legislator) _______________________________________________ as a ____ Acquaintance

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** Personal Check or Personal Credit Card only. Corporate contributions are prohibited by state law. Contributions are not tax deductible as charitable contributions for federal income tax purposes. ** Charge my Credit Card V MC D AM __________________________________________________ Exp: _____/_____ CVV: _____ Name on Card: ____________________________________________________________________________ Card Billing Address (if different):



Or donate online at www.txiada.org >> Resources >> Advocacy >> Political Action Committee


Referred by:

c/o TIADA 9951 Anderson Mill Rd Suite 101, Austin Texas 78750

PHONE 512.244.6060 FAX 512.244.6218 EMAIL accounting@txiada.org


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November 2022


Why Your Automotive Dealership Needs to Focus on Delivering Exceptional Customer Experiences by Larisa Bedgood

VP of Marketing at V12, a Porch Company


emember when having the best billboard, the largest inflatable gorilla, or the best selection of inventory was enough to get consumers heading into your dealership? This is no longer the case, as new digital channels and changing consumer expectations have transformed the marketplace. Consumers have more options, do more research, and expect a seamless experience across channels before they will even consider stepping onto your dealer lot. No matter the industry, dealerships included, companies need to know their current and prospective customers and deliver a highly personalized experience. This requires data, lots of it, and the technology and analytic capabilities to analyze these insights to deliver targeted messaging across the proper channels and at the right time.

What Do Consumers See as the Ideal Customer Experience?

Research by Economist Intelligence Unit revealed that the top five areas consumers identified as leading to a positive experience included: November 2022

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1 2 3 4 5

47% – Fast response to inquiries or complaints 46% – Simple purchasing process 34% – Ability to track orders in real-time

25% – Clarity and simplicity of product information across channels 22% – Ability to interact with the company over multiple channels

For dealerships, while having the ability to track orders in real-time doesn’t necessarily apply, some of the key elements that consumers do expect are quick responses to their inquiries, the ability to find information and interact with your dealership across multiple channels, and receiving a personalized and consistent experience. When a consumer is happy with their experience, the results pay off in new customer acquisition, retention of existing customers, enhanced brand loyalty, and positive reviews and feedback. According to the automotive 35

research site Cars.com, the breakdown, by type of car, for reviews and customer feedback is as follows: used-car sales at 38%, new-car sales at 37%, and service at 24%. According to the 2016 J.D. Power Report, customers, on average, will positively recommend the dealership from whom they purchased their vehicle six times, with younger buyers slightly more likely to recommend (6.2 times) than those older than 55 (5.2 times). These numbers can be improved when dealers offer an outstanding customer experience: getting 10 points on a 10-point scale in terms of experience can lead to a rise in the average of recommendations to eight positive comments.

Dealerships Must Improve the Buying Process

Autotrader’s Car Buyer of the Future study shows that only 17 out of 4002 people prefer the current car buying process. The survey, released last year, revealed four main areas in which consumers want improvements to the buying customer experience. T est Drives: While 88 percent of consumers say they will not buy a car without test driving it first, the majority report that they do not prefer the way test drives are currently conducted (an accompanied test drive with a salesperson). Instead, they want more convenience and less pressure while test driving, such as having the ability to test drive multiple vehicles across brands in a single place and taking a test drive with a product specialist instead of a salesperson. D eal Structuring: Negotiating will be a part of the car buying process for the foreseeable future, and consumers indicate that they would like to see a big change in the way they go about negotiating the deal structure. Of those who liked the idea of online deal building, over half, 56 percent, want the ability to start the negotiation on their own terms—preferably online—and 45 percent would like to remain anonymous until they lock in the deal structure. F inancing Paperwork: Nearly three-fourths of consumers, 72 percent, want to complete the credit application and financing paperwork online. The key factors driving this desire are to save time at the dealership (reported by 72 percent of those who favor online paperwork) and to have less pressure while filling out paperwork (reported by 71 percent of those who favor online paperwork). A separate study conducted by Cox Automotive in 2014 showed that buyers spend an average of 61 minues in the F&I offices, more than twothirds the total amount of time they want to spend at the dealership (90 minutes). Moving paperwork online and enabling consumers to complete it on their own time would greatly enhance the in-dealership experience and cut down on the time they spend in the dealership on the day of purchase. 36

S ervice: When it comes to servicing their vehicles, 83

percent of consumers indicate that they would like to have the ability to access a network of local service centers that honor service agreements. The key factor driving this desire is convenience. Of those who prefer local service networks, 76 percent want to go to a service center close by, and 63 percent want to be able to service the vehicle anywhere. If the buying process was improved, 72% of consumers stated they would visit dealerships more often, 66% said that they would be much more likely to buy from a dealership that offers their preferred experience, and 53% stated they would buy a vehicle more often.

Data-Driven Customer Experiences

Optimizing each engagement with your dealership plays an important role in the overall experience, whether it is revamping the test drive process, streamlining paperwork, or offering popcorn and snacks while your customers are waiting for service. However, each of your competitors can offer the same amenities, so once again, you are challenged to set yourself apart from the competition. At the heart of a truly excellent and differentiated customer experience is data. Using data-driven insights to deliver highly personalized messaging and interactions greatly impacts the brands and companies a consumer chooses to do business with. You already have a wealth of data available sitting in your CRM, website inquiries, customer service records, browsing history, and more. By integrating each of these sources and adding additional third-party insights, you have the opportunity to deliver highly relevant communications to increase acquisition and boost retention. For example, data such as age, income, and gender helps you decide what medium of outreach may be best. Information on lifestyle, interests, and hobbies can tell you if you should market a minivan to parents with young children or an SUV for lovers of the outdoors. Specialty data sourced from a VIN marketing database provider can provide insights into the type of vehicle your prospect is currently driving, such as make, model, and year and if they are in positive equity. Consumers constantly leave clues about who they are, what they like, and what they’ll buy next. When these insights are gathered and analyzed, you have the opportunity to personalize your outreach and target new customers before the competition may even be aware that they are in the market or what may influence them to purchase. And with 86% of consumers stating that personalization plays a role in their purchasing decisions (Infosys), taking the time to develop a personalized customer experience will pay off every time. A version of this article first appeared on the V12 website. For more insights on dealership marketing solutions, please visit v12data.com. T e x a s

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November 2022


On the Road with TIADA by Stephen Pallas

TIADA Director of Marketing and Communications


he Texas House Transportation Committee met in Brownsville in early September 2022. TIADA Executive Director Jeff Martin attended the meeting and took the opportunity to make stops as he traveled to visit with independent dealers along the

Jeff and Xavier Fuentes of Fuentes Autos, Edna.

300-mile journey between Austin and Brownsville. The normal sixhour trip turned into a 15-hour adventure, and, as Jeff says, “it was worth every minute.” His first stop was Fuentes Autos, in Edna, where he spent some time talking to owner Xavier Fuentes. He has been in business for less than a year and, like most dealers, his biggest struggle is finding affordable inventory. Xavier grew up in the mechanic and auto body repair business with his dad, so he is doing what he does best: finding vehicles that need a little TLC and working hard to get them back on the street. “It means a lot that he stopped by,” said Xavier. “It gives me an uplifting feeling to know that if I need anything related to the business, November 2022

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the association is there to help. With the inventory issues we are facing, it’s great to know TIADA has resources like the auction app to help dealers save time and money.” Xavier also mentioned that, as a relatively new dealer, knowing he has the association’s full support makes him feel more secure in his business, especially when it comes to compliance. “Between the resources, education, and conference, I’m not left alone and know I have somebody to reach out to. I also feel much more connected to other dealers because of my membership.” Jeff ’s next stop was Superior Auto Sales in Beeville. This family-owned and operated dealership has been a fixture in Beeville for years. Larry Dziuk (who has been a TIADA member since 1994) and his son-in-law Shawn Ramon showed Jeff around the dealership and discussed their business and the industry. Their biggest concern at the time was how long it was taking TxDMV to renew their license, how difficult it is finding vehicles these days, and some of the complexities that come with out-of-state titles. “If you are ever in the area, make it a point to stop by and see these guys,” Jeff said. “They have a fantastic operation.”

Jeff with Larry Dziuk and Shawn Ramon of Superior Auto Sales, Beeville.


Attendees of the Dealer Luncheon in Weslaco.

Jeff and Rep. Abel Herrero visited with Ana and Faustino Garcia of A & F Auto Sales in Kingsville.

For Jeff ’s last stop, he invited Texas State Representative Abel Herrero to meet with Ana and Faustino Garcia, who own and operate A & F Auto Sales in Kingsville. Representative Herrero serves district 34, which encompasses Brownsville, Alice, Beeville, Harlingen, Kingsville, and San Benito. They spent a lot of time talking about how they got in the business and, now that they have two sons helping, how things have changed. They recently attended the TIADA Conference and have already started implementing many of the new ideas. Ana and Faustino are passionate about helping the underserved in their community and have even started a non-profit to assist 38

the people who live in Colonias. During the meeting, Rep. Herrera, who was already familiar with their work, pledged to continue helping the non-profit. TIADA also hosted a dealer luncheon in Weslaco. “It was a great turnout,” said Jeff. “We had dealers from Pharr, Brownsville, McAllen, Donna, and in-between.” The luncheon was part of a series of events around the state the association is coordinating to bring together dealers with legislators and experts on policies related to the independent automobile industry. Special guests in Weslaco included Representative Armando “Mando” Martinez and State Senate candidate Morgan LaMantia. Both discussed issues facing independent automobile dealers and took questions from the crowd. Armando Villarreal, from McAllen Auto Sales, LLC, serves as the TIADA Region 6 Vice-President. He was instrumental in helping organize the luncheon. “This is a unique opportunity to visit with our local legislator in a relaxed atmosphere and discuss issues that specifically affect our industry,” Armando said. Martin wrapped up the luncheon by reviewing TIADA’s legislative priorities for the 2023 legislative session and answering several compliance questions from the dealers. “I want to give a special thanks to all the dealers who allowed me to stop by and visit with them last week,” said Jeff. “Spending time at these dealerships helps us better represent your voice in Austin.” T e x a s

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November 2022

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

$AVE : up to $200 Sell Fee


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

$AVE : up to $200 Sell Fee


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

$AVE : up to $200 Sell Fee


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

$AVE : $100


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

$AVE : $100


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

$AVE : $200

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

$AVE : $200


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

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

D e a l e r

November 2022


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

$AVE : $100


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

$AVE : up to $200 Sell Fee


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

$AVE : $200


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

$AVE : $200


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

$AVE : $200

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

$AVE : $200

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

$AVE : $200


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

$AVE : $200


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

$AVE : up to $200 Sell Fee

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

$AVE : up to $200 Sell Fee



November 2022


D e a l e r


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

$AVE : up to $200 Sell Fee

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




$AVE : up to $200 Sell Fee

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

$AVE : $100


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

$AVE : $100

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

$AVE : $200


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

$AVE : up to $200 Sell Fee


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

$AVE : up to $200 Sell Fee

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


www.acvauctions.com 800.553.4070

$AVE : $250

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

$AVE : Up to $500/month


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

$AVE : $200


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

$AVE : up to $200 Sell Fee


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

$AVE : $100


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

$AVE : $200

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

$AVE : $200

$AVE : $75/Quarterly





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

$AVE : $200

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

$AVE : $200







at the




February 7, 2023

REGISTER TODAY! Visit www.txiada.org and look under “At the Capitol.” See Pg. 46 for more details.

Please Welcome Our Newest TIADA Members

Local Chapters



Edward Curtis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5727 Martha Lane, Houston, TX 77032

G.R. Moore

Corina Martinez . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2111 Pleasanton Rd, San Antonio, TX 78221

AML Ventures LLC dba Dealer Alternative Auto Sales

The Car Shack

Cash Cars Dallas

(dates announced at

Dallas Select Motors LLC


A to Z Auto Sales

Advanced Auto Plex LLC

Jill Dilbeck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1810 S Interstate 35, San Marcos, TX 78666 Amir Qureshi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10845 Ferguson Rd., Suite A, Dallas, TX 75228 Gholam Bozorgpor . . . . . . . . . . . . . . . . . . . . . . . . . 2305 W Parker Rd. STE 100, Plano, TX 75023

Executive Sports & Imports, LLC

Keith Lee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1001 South Interstate 35 E, Denton, TX 76205

Funded Auto Group LLC – dba Garland Auto Sales


High Beam Auto, LLC

Cesar Stark

Mahmud Ali . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 S Cesar Chavez Blvd. 1530, Dallas, TX 75201 Victor Jordan . . . . . . . . . . . . . . . . . . . . . . . . . . 10209 Regal Oaks Dr, Apt #112, Dallas, TX 75230

OIA Motors LLC

Emad Habib . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4115 Billy Mitchell Dr, Addison, TX 75001

S & S Motors

Frank Froese . . . . . . . . . . . . . . . . . . . 1919 Golden Heights Rd., Suite 108, Fort Worth, TX 76177

Meeting – 3rd Friday

Canuto Elias . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Po Box 1267, Seminole, TX 79360


Top Gear Auto Sales Western Wagon Inc.

Wheels On Deals Finance, LLC

Yesenia Silva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5959 Hillcroft St., Suite F, Houston, TX 77036

You Drive Auto – Austin

Henry Sarmiento . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 E Stassney Lane, Austin, TX 78745


Jerry Smith

Commercial Sales & Leasing LLC

Kat Lively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8113 Lea Shore St, Fort Worth, TX 76179

resource guide The TIADA Website: www.txiada.org

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

License Renewal Certificate TexasDealerEducation.com

Texas Department of Motor Vehicles

November 2022

T e x a s

Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov

Texas Comptroller

800.252.1382 comptroller.texas.gov


800.682.3837 www.niada.com


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


Burrell Printing

888.368.4689 www.txdmv.gov

800.252.9154 www.burrellprinting.com D e a l e r

FORT WORTH H J Smith Automobiles (dates announced at


HOUSTON April Hanson Coast to Coast Motors Meeting – 2nd Tuesday (Monthly)

SAN ANTONIO Jose Engler Irving Motors Corp (dates announced at

www.txiada.org) 45

behind the wheel Your Day at the Texas Capitol is Scheduled


t’s been four years since TIADA hosted a Dealer Day at the Capitol. Since the Texas legislature only meets during odd-numbered years, and the world was sheltered in place through much of 2021, our ability to bring dealers to the Capitol has been put on hold for quite some time. On February 7th, 2023, that will change. I hope you will join us as we take one day out of the year to bring as many independent dealers as possible to Austin to make sure legislators get an opportunity to hear directly from dealers just like you. For those of you who have attended in the past, you know how important this day is for TIADA. As we continue to grow the association, it’s crucial that we present a professional, unified voice that is large in number and diverse. We not only want to educate legislators about our industry, but we also want legislators to know we are the trusted resource they can call and depend on when they have questions about issues that affect independent automobile dealers. I look forward to seeing you again this year. If you have never attended, I strongly encourage you to consider joining us this year. After redistricting in 2021, several legislators will represent a slightly different area of Texas, and there will be several new faces in the House and Senate for the 88th Legislative Session. I always encourage dealers to get to know their legislators back home in their district, but it’s also important for your legislator to know you are willing to travel to Austin and visit with

Jeff Martin by


them there too. When legislators know there are independent dealers in their area, and they know who they are, it gives even more credibility to our issues. I recognize coming to the Capitol can be a bit overwhelming. If you are concerned about not knowing who your legislator is or how to set up a meeting, don’t be. We will identify who represents you prior to the Day at the Capitol, and we schedule all the meetings with each legislator’s office. And, if you are worried you don’t know the issues or how to present the material to policymakers, we have that covered too. We do some training the day before we send everyone to the Capitol, provide each group with talking points and supporting material you can leave behind, and make sure and put first-time attendees with an experienced group of dealers for each visit. Registration for the event is free and easy. Go to the TIADA website and look under “At the Capitol” to get registered. Most attendees come in the day before for some training and an evening social hour with legislators. We will provide breakfast and lunch the following day between your meetings, and we wrap things up with a one-onone debrief with each group. The association is making sure your voice and interest are being heard in Austin year-round, but on February 7th, we have an opportunity to introduce legislators to the faces behind that voice. I hope one of those faces will be yours.

When legislators know there are independent dealers in their area, and they know who they are, it gives even more credibility to our issues. 46

T e x a s

D e a l e r

November 2022

Assured Vehicle Protec on, Inc., 6300 Glenwood St., Ste 200, Mission, KS 66202 www.avpadmin.com

© Assured Vehicle Protec on, Inc.. 2021









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