Texas Dealer September 2018

TIADA Welcomes 2019 President

Juan Sabillón In This Issue: – Michael W. Dunagan on How a Recent Court Ruling Affects Repossessions – TIADA Annual Conference & Expo Wrap Up – Dispute Fraudulent Toll Charges with TIADA’s New Web Portal

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2019 TIADA Board of Directors PRESIDENT Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: jmsabillón@mitierraautosales.com PRESIDENT ELECT Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net CHAIRMAN OF THE BOARD Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: greg@dixonmotorcars.com SECRETARY Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 Office: 817.703.7973 Email: mjones@mcmcauto.com TREASURER Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net VICE PRESIDENT, WEST TEXAS (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 Email: bkalivoda@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) Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 Office: 281.354.3355 Email: aokautosales@embarqmail.com 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 Jose Engler/Irving Motor Corp 211 Braniff Dr. San Antonio, TX 78216 Office: 210.385.2568 Email: pepeton2002@hotmail.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 XVIII

/ Issue 9

/ S e p t e m b e r 2 018

texasDealer contents

4 Officers’ Message

by Ryan Winkelmann, TIADA Treasurer

8 Meeting of the House of Delegates 11 Legal Corner: Repossession Issues Highlighted by Court Case

by Michael W. Dunagan

12 Upcoming Events 14 On The Cover: TIADA Welcomes 2019 President Juan Sabillón

by Michael Spurlin

18 TIADA Day at the Capitol: Save the Date 19 TIADA Concludes a Successful 2018 Conference

by Michael Spurlin

26 2018 TIADA Awards Wrap Up

by Michael Spurlin

28 TIADA Member Application 31 Online Automotive Auction Firm Gains Traction in Marketplace

by Peter A. Salinas

36 2018 Auction App Directory 39 TIADA Launches Portal to Dispute Fraudulent Toll Charges

by TIADA Staff

45 New Members 45 Local Chapters 46 Behind the Wheel

by Jeff Martin

Fight Back Against Fraudulent Toll Charges Contesting erroneous toll charges has been a time consuming and confusing process. That’s why TIADA created a way for dealers to easily resolve these charges with different toll agencies. Turn to page 39 to find out how!

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 Ryan

Winkelmann

Humble Pie, for a Second-Generation Car Guy

W

hen people ask how long I’ve been in business, it’s usually a two-part answer. In short, my company has been in business since 1985. So, either I’ve aged extremely well, or you guessed it, I’m a second generation auto dealer.

Now, what was my job title or description? Well, depending on what year you asked, my answer would go something like this.

1992

My answer: “I’m kind-of being forced to help

manage my parents’ buy-here, pay-here dealership, but my real passion is my rock band.”

Honest answer: I’m an overpaid porter for my parents’ dealership.

1996

My answer: “I’m a sales/operations manager for my parents’ dealership,” Honest answer: I’m a full-time sales person, who is mentally engaged just part time at my parents’ dealership.

2000

My answer: “I’m a partner in my parents’ dealership.”

Honest answer: I’m an operations manager at my parents’ dealership, and other than sales, I rarely really know what’s going on most days.

2004

My answer: “I co-own a used car dealership with my parents, and will be transitioning to owner soon.”

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BJ’s Autohaus (Houston) TIADA TREASURER

Honest answer: I’m Vice President of my parents’ dealership, but gear most of my focus toward collecting accolades through various industry associations so as to appear significant among my peers.

2008

My answer: “I own a used car dealership, and spe-

cialize in in-house financing.”

Honest answer: I’m Vice President of my parents’ dealership, and I’m doubtful I’ll ever really own it.

2012

My answer: “I’m a second generation used car

dealer, and we’re setting some amazing records in business!”

Honest answer: I just purchased the family business that I’ve worked for nearly 20 years. I really do own a used car dealership now, and I have no idea what’s around the corner.

2016 to Current

My Answer and Honest Answer: I’m a used car dealer. This business is changing more rapidly than it ever has, or is it? I honestly don’t know anymore. I’m starting to doubt everything I’ve learned in the past 26 years I’ve worked here. Have I really been here for 26 years?

What happened to all of the BHPH accounts I put on in 2012 and 2013? Why is my cash flow so entirely out of whack? What am I going to do if my AR goes any lower?

How am I going to slow down these repo’s? Why are most of my write-offs lately uninsured total losses? Why are my sales in such a slump? I wonder if my dad would consider coming back to help me straighten out this mess? (cont’d on pg. 6) T e x a s

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As I write this article, I’m sitting inside my office, my dad’s old office. He’s at his summer home right now in Colorado escaping the Texas heat. He’s more than likely playing cards at the local casino in Cripple Creek or engaging in some new adventure alongside my mom. Six years ago, my Mom and Dad sold me the family business, and it has never been the same since.

I remember humbly telling close friends of mine soon after the deal, how we’ll get to see if I in fact will do it bigger or better, like I had sometimes eluded. There was never a doubt that I wouldn’t at least do it as good, but I knew now, the proof would be in the pudding. I was on my own. It was all on me now.

After making me a very generous deal, and owner financing the business, my dad walked away leaving me the company, a strong accounts receivable, veteran employees and zero debt. I literally could not have asked for a more stable beginning. In addition to that, he offered to continue buying cars for an undetermined amount of time in efforts to make the transition easier. This among many more things he did to favor my probability of success.

There are so many things I would like to talk about in this article, but I’ll slim it down for space sake to just one piece of wisdom that was passed down to me from my predecessor. One of his last full days working, he told me that there is an order to this business, the

sub-prime Buy Here Pay Here business. Here are four things you need to financially protect and take care of, in this order.

1. The Company 2. Y ourself 3. Your Employees 4. Y our Customers

The Company: The company has to come first.

I cannot tell you how many friends my parents and I have had in the car business, that we watched go out of business by putting themselves before the company. The majority of them had one thing in common. They lived in the best houses, drove the nicest cars, and took the best trips while it lasted. All while their company had a floor plan it could barely pay off, and nearly no equity in anything else they purchased. Your company cannot sustain much less grow if wasteful spending and poor cash flow management are part of the equation. *This is not the case for some of our friends we have seen close up shop, but worth mentioning since it has been for many.

Basically, without putting your company first, you don’t have a job, your employees don’t have a job and your customers no longer exist.

Yourself: When your company is a well-oiled machine, it is then that you pay yourself. Assuming that

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you’re one of most small business owners who went into business for yourself so that you could work half days?

I’m sure by now you’ve already chosen which 12 hours of the day you’re able to work. This is your life now.

This is what you’re doing to provide for you and your family. Your employees and your customers do not care about how hard you’re working for your family, or for them. They will not be there for you if and when you hit financial struggles of your own. When your company is struggling, ask your employees and your customers what they think could be done to improve your company’s stability. Their personal performance will never be part of the equation.

Your Employees: My newest employee (my porter) has been with me for 12 years, my collector 20 years, my sales and general manager 22 years, and my mechanic 30 years. We’ve fluctuated sales between 200- 400 units per year, all while having a staff of 5-7 maximum. Hiring and keeping the right people is very difficult, and I can honestly say that over the years, I’ve lost good people due to poor management on my part.

When you have good employees, you need to do all you can to keep them. This does not mean overpaying everyone. They won’t search for greener grass if you keep yours fertilized with a genuine caring for them and equal amount of praise for a job well done. Do they ever frustrate me ? Of course they do! I’m simply picking my battles. Dealing with occasional complacency is preferred over dealing with training and trust building that accompanies new hires. Having well trained employees and having their back when you get the occasional negative feedback from your customers will keep them loyal to you.

Your Customers: Whoever coined the phrase that the customer is always right, or the customer comes

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first, has never owned a business. Or, maybe he owned a business long enough to let the last customer he put first, put him out of business. That phrase was most likely written by a customer. I remember very well how good it felt that my customers seemed to like me a little better than my dad, while I was buying those friendships. How a situation could quickly go from demanding my help on their vehicle maintenance cost, to asking for it, to begging for it, then getting it and complaining how long the repair took. “I haven’t even had this car a month,” “I haven’t even had this car 6 months,” “I haven’t even had this car a year!” Guess who didn’t get paid while I was tying up cash flow and rescuing countless numbers of customers with their maintenance? Me, my employees and my company.

When a customer purchases a vehicle that is a few to several years old, it doesn’t change the fact that it’s new to them. If you assume their risk in buying a used car, and your risk in financing it, it’s a recipe for disaster.

I’m not saying you can’t help your customers out of good-will. But if you adopt the belief that it is only you that can help them out of a bind, it will ultimately cost you money that you will not recover, especially if you’re carrying the note. Just like the road to the sale, there is a road to the repair. Proper bases must be covered to determine if you’re even financially able to help, and how often if so. I’ve heard dealers say, “you have to keep them on the road.” And I’ve also witnessed some of them go broke doing it. Know your budget.

In closing I’d like to say that I’m honored to be the new Treasurer for TIADA. I’m looking forward to working closely with the association to maintain the financial, educational and political strength it has gained in the past several years. From the boardroom to my dealership, or even summer conference next year, I’ll give it my best!

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meeting of the house of delegates

Sunday, July 29, 2018 | Hilton Anatole Hotel, Dallas, TX

compiled by Texas Dealer staff

President Greg Zak called the meeting to order at 4:02 pm.

Blake Ingram discussed the proposed amendment to TAC Section 215.85, regarding referral fees.

Greg Zak recognized the 2018 TIADA committee leadership and encouraged members to sign up for committee placements for the upcoming year.

Chris Knox moved to include the following statement in the TIADA Legislative Program: 7. Insurance

a. TIADA supports the elimination of named driver only insurance policies in Texas.

Special Guest Senator Konni Burton addressed the attendees.

Chairwoman of the board Kathrine Tolsch presented the slate of nominees for the 2019 Board of Directors.

John Freeman moved to dispense with the secret ballot and accept the slate as presented. Mark Brown seconded. Motion passed.

Chris Knox gave the legislative committee report.

Ryan Winkelmann seconded. Motion passed.

Vicki Davis moved for adjournment. James Hobson seconded. Motion passed.

Meeting adjourned at 4:36 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.

THE MARVIN NORWOOD SCHOLARSHIP WINNER:

RYAN TOLSCH Ryan graduated from John Paul II High School in Plano with a 3.96 GPA. He will attend Southern Methodist University in the fall where he will pursue a degree in mechanical engineering.

RUNNERS-UP SCHOLARSHIPS

Dillion Jones • Molly Pritchard • Maci Procter • Natalie Ravlin • Kendall Rhodes 8

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EPI-TIADAhalf Aug2018.pdf

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legal corner

Repossession Issues Highlighted by Court Case

by Michael

I

n my book Texas Automobile Repossession: A Lien Holder’s Legal Guide, I point out that vehicle repossession is often the flash point that results in litigation against car creditors. A recent opinion from a Texas appellate court, which has been widely reported in industry media, demonstrates how the repossession process can become the focus of consumer litigation directed at BHPH dealers and other car creditors. Constant review and updating of repossession procedures is important in avoiding situations such as the one outlined in this case.

The opinion in question affirmed the finding of a jury that a dealer had wrongfully repossessed a vehicle and that its actions following the repossession were a violation of the Texas Deceptive Trade Practices Act (DTPA). What really caught the attention of readers of articles about the case, however, was the fact that the appellate court also approved the trial court’s imposition of damages against the dealer that included $2,809 in actual damages, $8,427 in additional damages under the DTPA, and attorney’s fees for trial of $87,000.

The dealer was accused of repossessing the vehicle because of the debtor’s failure to keep property damage insurance current, when, in fact, there was coverage in place.

The dealer claimed that notice of a replacement policy had not been received, while the insurance agent testified that notice was sent.

Further, the debtor testified that she called the dealership to inform them of the new insurance policy.

Believing there was default on the

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contract, the dealership authorized an employee to repossess the vehicle.

A dealer representative also testified that the dealership believed that the consumer was behind on payments when the repossession took place. But the employee admitted at trial that the debtor had actually paid ahead and was current, and that the dealership records failed to reflect that fact.

The repossession was accomplished with the aid of a GPS tracking device which the consumer had not authorized and did not know about.

The problem could possibly have been solved if the dealer had returned the vehicle upon determining that there had been continuous coverage and that payments were current.

But, instead, a $500 repossession fee was demanded of the consumer. When the debtor refused to pay, the dealer foreclosed on the contract and resold the vehicle.

The consumer then filed suit, alleging breach of contract, conversion, and violations of the Texas Deceptive Trade Practices Act. A jury found for the consumer on all issues, which resulted in the court rendering a verdict against the dealership and imposing the damages referred to above.

Dunagan

W.

TIADA GENERAL COUNSEL

A recent opinion from a Texas appellate court, which has been widely reported in industry media, demonstrates how the repossession process can become the focus of consumer litigation directed at BHPH dealers and other car creditors.

Here are some takeaways from the case:

1. In order for there to be a legal repossession, there must be a default in the contract. Due diligence should always be used to verify that there is in fact a default, whether the default is failure to obtain or maintain property damage insurance coverage or failure to make payments when due. Procedures should be in place to double-check that payments have been properly recorded. Detailed notes should 11

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

September 2018 24 Better BHPH Financials Dallas, TX

October 2018 1 5 What Every Dealer Ought to Know

About Management Houston, TX

December 2018 1 0 Collect the Cash, Not the Car

Fort Worth, TX

OTHER TIADA EVENTS October 2018 2 2 Board of Directors Meeting February 2019 1 1 Board of Directors Meeting 1 2 TIADA Day at the Capitol

Austin, TX

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be kept in the file of conversations with debtors, including date, time, person spoken to, and the subject matter of the conversations.

2. I f a mistake is made, steps should be taken immediately to correct the situation and undo any harm done.

In another case a few years ago, a car creditor and its repossession agent wrongfully picked up the wrong vehicle (there had been two similar vehicles at the address in question). As soon as the error was discovered the vehicle was returned and an offer was made by the creditor to cover any loss-of-use damages. This quick corrective response mitigated the loss to the consumer and thus, the actual damages awarded against the car creditor.

3. As a follow-up to item 2 above, a repossession fee should not be assessed if the repossession is made by mistake or on the basis of mistaken information. In a case similar to the one which is the main subject of discussion here, but with a different conclusion, a car creditor repossessed a vehicle after repeated cancellations of insurance coverage. The debtor immediately got coverage and demanded that the vehicle be returned without having to pay the repossession fee. The creditor refused, and the debtor filed suit, claiming the dealer was wrongfully charging the repossession fee. The dealer ultimately won this case because it was uncontroverted that there was no insurance in place at the time of the repossession. The Court of Appeals held that because the debtor was in default, the repossession fee was justified.

4. P ass through of a repossession fee (assuming the repossession is lawful) should only be made

if the fee is paid to a third-party repossession agent. The Office of Consumer Credit Commissioner has taken the position that a fee should not be assessed for an inhouse repossession like the one in the case under discussion. Also, the creditor should not add a surcharge (or upcharge) to a fee that is paid to a third party.

5. GPS disclosure and authorization forms should be signed by debtors at closing. In this case, the Court of Appeals referred to the use of an undisclosed GPS tracker by declaring that, without the debtor’s knowledge, “and in violation of Texas law,” the dealer installed an “illegal GPS tracker” on the debtor’s vehicle.

Pass through of a repossession fee (assuming the repossession is lawful) should only be made if the fee is paid to a third-party repossession agent.

Presumably (although no specific basis is stated), the Court was referring to a Texas criminal statute that makes it a crime to place a tracking device on someone else’s vehicle without the owner’s permission. The OCCC also takes the position that a written authorization is required when a GPS tracking device is used.

Other Repossession Issues We still get questions from dealers about the proper methods for giving post-repossession notice and disposing of repossessed units. One of the

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areas of confusion has to do with the differences between a private sale and a strict foreclosure (also known as acceptance of collateral in satisfaction of the debt). One dealer, for instance, was confused by the different holding periods required after sending notice of private sale vs. strict foreclosure. An OCCC audit had turned up that the dealer was using the 10-day holding period of a private sale in a strict foreclosure notice letter, instead of the required 20-day holding period for strict foreclosure. The following is a list of the main characteristics and differences between these two types of post-repossession disposition. (A much more detailed explanation can be found in Texas Automobile Repossession: A Lien Holder’s Guide, available from TIADA.)

Private Sale:

Holding period is at least 10 days.

Debtor has the right to redeem vehi cle by paying the balance owed at any time before disposition is completed.

Disposition must be “commercially

reasonable.”

Disposition can be retail sale, whole sale sale, or sale at wholesale auto auction. Disposition can be for cash or dealer-financed, but credit for entire sales price must be given on a dealer-finance transaction.

Creditor must apply proceeds of

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disposition to balance owed and calculate surplus or deficiency.

If surplus occurs, payment of surplus amount must be made to repossessed debtor along with a post-disposition accounting.

Creditor can sue for deficiency

and/or report deficiency to credit bureau, if post-disposition accounting is given.

Strict Foreclosure (also known as “Acceptance of Collateral in Satisfaction”):

alance owed is extinguished.

B Deficiency no longer exists and can’t be reported to credit reporting agency.

H olding period is 20 days from

date that notice of intent to accept collateral in satisfaction is sent. A debtor has the right to redeem the collateral upon payment of balance during 20-day holding period.

No accounting to debtor of dispo sition is required.

Ownership of the collateral reverts

to the creditor if 20 days expire without written objection to the strict foreclosure from debtor or guarantor.

I f written objection is received in the 20-day holding period, the creditor must send notice of private sale, use the private sale

procedure and make a commercially-reasonable resale. Postdisposition accounting rules apply.

Strict foreclosure can’t be used if

more than 60 per cent of original cash price has been paid in (“60-per-cent rule”). If the 60-percent rule applies, the creditor must send a private sale notice and use the private sale method to dispose of the collateral.

This brief discussion of the differences between public sale, private sale and strict foreclosure isn’t intended to cover all the technical legal requirements for post-repossession procedures. Car creditors should familiarize themselves with and strictly follow the rules. Notice forms should be obtained only from trusted sources and care should be taken to ensure that the actual procedure used matches the type of disposition for which notice is given.

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

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on the cover

by Michael Spurlin,Texas Dealer Editor

TIADA Welcomes 2019 State President

Juan Sabillón

Editor’s Note: 2019 TIADA President Juan Sabillón gave the following speech at the 2018 Annual Conference & Expo on July 31st after being sworn in as president. In the speech, he described his remarkable story of how he came to be a successful businessman and leader in the industry. It is reprinted here so those not in attendance can read the well-received speech and understand his vision and plans for the association.

I

Juan Sabillón and his wife Aracely.

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n 1983 at 17-years-old my parents sent me to Lawrence, Kansas and the University of Kansas. They sought a better education for me and wanted to protect me from the violence that had erupted in Nicaragua, El Salvador and Guatemala and had spilled over into Honduras. At the time I couldn’t speak English. Some might say I STILL don’t speak English.

Who knew then that I would be standing before you today, honored and humbled to be the next President of TIADA. First I want to thank God, and my mom and dad, who taught me from an early age that the purpose of life is to be useful, to be responsible and to be compassionate. It is above all to matter, to count, to stand for something and, at the end, to have made some difference.

I am grateful to have my dad with us tonight.

To my wife Aracely, I have learned a lot from you. I’ve seen you grow so much. I am so fortunate to have a wife like you. You bring out the best in me. Without you, I wouldn’t be half the man I am. My favorite place to be is with you.

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Juan with his family (from left to right): his brother Fernando, son David, father Justiniano, daughter Cristina and wife Aracely..

Fellow dealer Sonny Paredez (left) and Rep. Sergio Muñoz Jr. (right) take a moment to pose with Juan at the 2018 TIADA Conference.

Juan and Rep. Carol Alvarado.

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My children, Cristina, Jessica and David, thank you for your love and support. This is an interesting time frame. Like many of you, some of my children are entering the business I love. There are many unique challenges today that we simply didn’t face 20 or even 10 years ago.

But I am excited to see where this next generation takes our industry. I truly believe our association should be part of tackling the complex issues we face.

I would also like to thank my business partner David Andonie.

He is a great friend and has been a big influence on my personal and professional life. It helps when your business partner comes with a business and finance degree from MIT. He is our CFO. Additionally, my brother Fernando is my right hand at work. He is my internal comptroller. Thank you for being here with my sister-in-law Martha.

Just like many of you I had a great mentor, Don Carlson. He taught me to build a company with integrity and values. He taught me to lead by example and to promote key management personnel from within. He also taught me to treat everyone with respect. He always said, “Juan, we all buy vehicles from the same sources. You are responsible for buying the best vehicles for your customers. You need to create a unique program that will differentiate you from the rest of the dealers.”

I want to make a special mention of someone who has shaped the landscape of TIADA for 42 years.

That person, of course, is Mike Dunagan. He has been our attorney and has guided us through many difficult times. He is a great human

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Juan Sabillón in the summer of 1983, back home in Santa Barbara, Honduras after his first year majoring in agriculture at the University of Kansas.

Juan participates in a group discussion at the Annual Conference & Expo.

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being and his ability to be a smart man of the law and understand our industry is admirable. Thank you, Mike.

A young man came to TIADA during a difficult time and accepted the role of executive director. It must have been God who sent us this gentleman because we were in need. Unselfish, smart, well-educated and possessing great determination, he has successfully guided TIADA to much better times. Mr. Jeff Martin, thank you.

Of course, I want to thank everyone who has served on the TIADA board or any TIADA committee. We are a better association and industry because of you.

Also, a special thanks goes out to my NIADA 20 group brothers who are here tonight: Bob Blankenship, Blake Ingram, Robert Milligan and Keith Hagler.

When I spoke with Jeff about the upcoming year, I told him I remember something Chris Knox, Blake Ingram and Michael Thomasson said something along the lines of, “If it ain’t broke, don’t fix it.” That seemed to work out pretty well for those guys. I want to continue the strong momentum of our association.

I want to keep growing our membership. There is strength in numbers. I want the association to continue to provide top notch education. I hope one day we can pass required pre-licensing education. I want to remember we are an association for all dealers, big or small, retail or buy-here, pay-here. There is a place for them in TIADA. I want to continue our advocacy.

It is our greatest member benefit and the most important thing we do. Also, I want to continue to grow the voice of the association. I am excited about the I.D.E.A. program. I feel confident with more and more participation from the auctions we can build one of the strongest associations in Texas.

In closing, I would like to ask for your help and support. It is rare that someone aspires to this position, and I am no different. At some point though, you simply feel obligated to give back to an association that has given you so much. So here I am. I am not going to lie to you. Like that 17-year-old kid who landed in Lawrence, Kansas over 25 years ago I have some apprehension. But I have little doubt. If we do what associations are supposed to do — help and support each other — anything is possible. Like someone once said, “If you want to go fast, you must go alone, but if you want to go far, we must go together.”

Thank you.

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2019

TIADA

Day

at# the Capitol make

your

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Heard

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feature

TIADA Concludes a Successful 2018 Conference

by Michael Spurlin, Texas Dealer Editor

I

n July, TIADA members converged at the Hilton Anatole in Dallas for the 2018 Annual Conference & Expo. It was a roaring success from start to finish. Over 270 dealer attendees heard from the industry’s best and brightest over 25 hours of breakout sessions. Dealers were able to participate in hands on learning demonstrations in the Expo Hall on topics ranging from identifying document fraud to spotting vehicle damage. Speaking of the Expo Hall, this year was our biggest ever with over 100 exhibitors!

TIADA has worked hard to grow the association’s political influence and it showed at this year’s conference. There were nine state legislators in attendance that spoke to dealers as well as several other government officials (see pg. 22). Finally, the conference ended with the Presidential Awards Banquet where Mark Jones of MCMC won the $10,000 drawing and Chris Knox of Auto Center of Texas won the customized golf cart! If you didn’t come this year, we hope to see you in 2019 when TIADA will try the impossible and stage an even better conference!

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TIADA would like to thank the following state lawmakers and officials who joined us at the 2018 Conference: Sen. Konni Burton (R - Colleyville)

Sen. Kelly Hancock (R - North Richland Hills)

Rep. Giovanni Capriglione (R - Southlake)

Rep. Dan Flynn (R - Canton)

Rep. Justin Holland (R - Rockwall)

Rep. Linda Koop (R - Dallas)

Rep. Eddie Lucio III (D - Brownsville)

Rep. Toni Rose (D - Dallas)

Rep. Paul Workman (R - Austin)

Dallas County Tax AssessorCollector John Ames Lubbock County Tax AssessorCollector Ronnie Keister Denton County Tax Assessor-Collector Michelle French Finance Commissioner Phillip Holt

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Have you downloaded the new

TIADA Auction App yet?

Same great savings in the convenience of a mobile app!

Now offering discounts on online purchases!

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Turn to page 30 to see the latest additions to the app!

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1. Search “TXIADA” in the Google Play Store 2. Open the app, scroll down to CREATE ACCOUNT 3. Fill in ALL the fields and select DONE when finished

1. Go to the App Store and search “IADA” 2. Download and open the app 3. Select “Membership Rewards” 4. Select “Texas — TIADA” 5. Scroll down to “CREATE ACCOUNT” and fill in all the fields. Select DONE button when finished.

After you have created an account, TIADA will verify your membership and email that your app is ready to use!

BUY ONLINE AT www.AmericasAutoAuction.com

21

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

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

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North Houston

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1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

feature 2018 TIADA Awards Wrap Up

by Michael Spurlin Texas Dealer Editor

T

his year’s successful Annual Conference & Expo concluded on Tuesday July 31st with the Presidential Awards Banquet.

During the banquet, several men and women were honored for their work over the past year.

Among the first to be recognized were the top recruiters who worked to grow TIADA’s membership. Mark Brown of Red Carpet Auto Sales and Chris Elkins of MD Auto Sales were honored with NIADA Eagle Awards. These awards are given to those who recruited at least 20 members in one year. Next, Wayne Meagher of MD Auto Sales, Ahmed Belmeshkan of New Rio Grande Motors and Jose Engler of Irving Motors were awarded the NIADA Crystal Eagle. These dealers recruited over 100 new members in the past two years. It was Jose’s first award while Ahmed took home his third Crystal Eagle. It was a record breaking fifth win for Wayne.

Then the association honored Lieutenant David “Sig” Sauer of the Houston Police Department with the highest award given to non-dealers, the Independent Award. Over the past year Sauer has worked closely with dealers to stop document fraud. He offered training at HIADA chapter meetings to help dealers spot fraudulent documents and worked with dealers to track down perpetrators. He also presented fraud detection training during this year’s conference.

Afterwards, TIADA Executive Director Jeff Martin took the stage to induct Michael Thomasson of Mike Carlson Motor Company into the TIADA Hall of Fame. Michael has been a leader role model in the industry for years, even serving as TIADA President in 2014.

Finally, 2017 TIADA Quality Dealer of the Year Greg Phea announced this year’s Quality Dealer of the Year Award — Vicki Davis of A-OK Auto Sales. Congratulations to all the winners!

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Vicki Davis, 2018 Quality Dealer of the Year with her husband Jack.

TIADA Hall of Fame Inductee Michael Thomasson with his wife Lori.

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TIADA’s top recruiters (from left to right) Jose Engler, Chris Elkins, Wayne Meagher, Ahmed Belmeshkan and Mark Brown.

Independent Award Winner Lieutenant David Sauer (Center) with other Houston area dealers.

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TIADA

Become a TIADA Member

texas independent automobile dealers association

2018

TIADA

Business Name: ____________________________________________ Select one:

Dealer Member

texas independent automobile dealers association

Associate Member

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

2018 TIADA Membership Dues: $499* Renewing Member $250* New Member (*Membership is thru 12/31/18. Dues include NIADA and local chapter membership where applicable.)

Dealer P Number: ___________________________________________ 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.

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feature

Online Automotive Auction Firm Gains Traction in Marketplace

by Peter A. Salinas Contributing Writer

T

ORLANDO, FLA. — IADA members received a personal introduction and overview of ACV Auctions by its CEO during the inaugural NIADA-NABD combined convention and expo this June.

By itself, that’s hardly noteworthy, but given ACV Auctions’ position as a newcomer and disruptor of the status quo in the automotive wholesale marketplace, the keen interest was significant.

Flanked by a dozen or so ACV Auctions associates in black polo shirts spilling out into the trade show aisle away from a large, double booth, George Chamoun began the demo by picking up his cell phone.

Using a nearby monitor he started showing off the features of the company’s mobile application that allows Dealers listen to a presentation from ACV at the NIADA Conference in June. dealers to buy vehicles located anywhere in the country via any computer or handheld mobile device.

Chamoun, 44, was previously the founder of Synacor, used vehicle inventory.” It holds speedy daily auctions a tech startup that grew into a publicly traded technol(except Sundays) that take place in just 20 minutes. ogy, services and revenue partner of leading cable, satelAll transactions are backed by a nationally recognized lite, telecom and consumer electronics companies, then arbitration policy. It facilitates extensive vehicle condibecame CEO of ACV Auctions in September of 2016. tion reports, title transfers and transportation.

He was one of the original angel investors in the compaGrowth has been nearly perpendicular for the startup ny, which was founded by former used car dealer turned in recent months. The company sold 5,000 units in technology entrepreneur Joe Neiman, who incorporated March, 6,000 in April and more than 7,000 in May. June, the firm in October 2014. said Chamoun, was on par with May. Growth year over Both Chamoun and Neiman reside in the greater year, he noted, is up 400 percent.

Buffalo, N.Y., area, which is home to the company’s It’s often the case, early on, to see exponential growth headquarters. All told, the young company now employs for a tech startup backed by tens of millions of dollars in more than 350 including about 60 territory managers in venture capital, and that has been true for ACV Auctions. more than 20 states. Total number of employees could “There are more than 20 million wholesale transacreach 500 with more than 70 territories across the countions that occur in the U.S. every year,” Chamoun said. try by year end.

“We are simply going to take our share.”

ACV Auctions’ mission, simply put, is to revolutionBut, he added, many market disruptors like Amazon, ize the wholesale vehicle marketplace by “becoming Airbnb, Lyft and others went unnoticed for years, until the most-trusted source in the industry for purchasing they fundamentally changed their marketplaces.

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Dealers listen to a presentation from ACV at the NIADA Conference in June.

“Dealers, banks and finance companies have choices,” Chamoun said. “They are open to new ways of doing business if they can see the value. If they eliminate transportation costs of moving vehicles to a central location for an auction, market them nationally, and get the customer service, transparency and level of trust they demand, they will gravitate to ACV Auctions.”

From a buyer’s perspective, not having to leave the dealership, not losing time and money in attending a weekly sale perhaps hours away by car or plane, yet still finding the inventory needed with a high degree of trust are big incentives to try online purchasing.

Wholesale auctions leadership and staff have always had strong personal relationships with their dealer clients. But, as more dealers buy online, many relationships have become more distant.

“What we have done is create a relationship between ACV Auctions, its territory managers and account management personnel with the buyers and sellers,” Chamoun said.

Interestingly, unless a seller requests it, ACV does not disclose who the seller of the vehicle is. This anonymity seems to fly in the face of the “most-transparent” mantra, but it’s not a high-priority issue with buyers, Chamoun said.

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“We have more than 2,000 dealerships buying on our platform right now,” he said.

“Our buyers and sellers deal with ACV Auctions. If there is an issue as to a vehicle’s condition report, title or other problem, ACV Auctions deals with it. We take the car back and make it right for everyone. We still look at this industry as a relationship business, but it’s difficult for a buyer in Virginia to have a personal relationship with a seller in Illinois. Instead, both have a relationship with ACV Auctions. In many instances buyers know who the seller is.

If it were to become an issue with our clients, we’d look at it.

We are always working toward making the platform better.”

Neiman, ACV’s founder, has had decades of experience with online buying, and felt the time was ripe for a better online wholesale experience back in late 2014.

Neiman started in the car business as a teenager in Albany, New York. He bought a $1,000 car, did the reconditioning himself, and sold it for $2,000. He was hooked. He later had a mentor that introduced him to wholesale auctions, and he continued buying and selling throughout high school and college.

“Once I was in college, I started to get real heavy into eBay,” Neiman said. “It was new at the time, but if you T e x a s

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ACV Joins NIADA’s Independent Dealer Education and Advocacy Program NIADA has recently launched the brand-new I.D.E.A. Program and is proud to announce ACV Auctions is the first auction to participate in Texas.

The program is designed to advance and promote the interests of the independent automobile dealers through advocacy and education.

How it works: Each time you purchase a vehicle at a participating auction, that auction will collect one dollar from the buyer. That dollar will be sent to NIADA who will keep a portion of that money to help fund dealer advocacy programs in Washington D.C. The majority of the funds will go to the state associations and will be used to help grow the influence of your association.

“I’m excited about ACV and TIADA taking the lead to help jump start this program and also looking forward to other auctions participating and being a part of this in the near future,” said NIADA CEO Steve Jordan.

“It will ultimately help grow our grassroots infrastructure and help build and protect our industry.”

understood the platform, provided all the information the buyers wanted, and maintained a solid reputation, you could do very well. I started selling Porsches, BMWs, and other specialty cars and niche vehicles.”

He needed brick and mortar to expand his business, and during the Great Recession was able to secure a defunct Chevrolet dealership in Albany. He opened In Demand Auto.

He maintained his internet sales and backed it up with local business selling specialty cars, commercial trucks and RVs. At its peak, In Demand moved 550 vehicles a year.

Going up against the powerhouses in the wholesale auction industry poses challenges, but then Neiman never considered what his competitors were doing when it came to his eBay Motors online sales in 2004. He just did it.

ACV Auctions is a simple concept but has required sophisticated technical engineering to make the completely mobile-friendly app work flawlessly. The process starts out like any

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“Our buyers and sellers deal with ACV Auctions.

If there is an issue as to a vehicle’s condition report, title or other problem, ACV Auctions deals with it. We take the car back and make it right for everyone.”

George Chamoun, ACV Auctions

34

auction. A sales force goes into the marketplace to secure dealers, mostly franchise, to sell their unwanted trades and aged inventory. Cars are inspected, a detailed condition report is prepared, and high-resolution photographs are taken of them while on the dealer’s lot. All the information is compiled and uploaded to the central database.

Then the vehicle is placed into one of the ACV Auctions 20-minute sales. Buyers can bid in real time or set up proxy bids in $100 increments, setting their own limits.

ACV Auctions assists with secure payments, title transfers, and logistics with a network of transportation partners, and all transactions are backed by a widely recognized arbitration policy.

Strong personal relationships between traditional wholesalers and dealers do pose a hurdle for ACV Auctions. The large corporate and independent auctions have longstanding bonds steeped in tradition with state dealers associations, industry trade organizations and traditional industry publications.

“We will be around for a long time,” Chamoun said.

“There are 20 million wholesale transactions. There are some fantastic companies and operators out there. But there’s room for more players. There is room for innovation. We’re not the only players in the online auction business. What we all want is a more-efficient, more-transparent marketplace. That’s healthy for the entire industry.”

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316 bpc #24-4

2018 TIADA Auction Directory

* VIP discount valid for sell fees only

ABILENE

DALLAS/FORT WORTH METROPLEX

Alliance Auto Auction Abilene

ADESA Dallas

www.allianceautoauction.com 6657 US Highway 80 West, Abilene, TX 79605 325.698.4391, Fax 325-691-0263 General Manager: Brandon Denison Friday, 10:00 a.m.

C.M. Company Auctions, Inc.

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

AUSTIN ADESA Austin

www.adesa.com 3501 Lancaster-Hutchins 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 7520 214.646.3136 General Manager: Chris Dean Wednesday, 1:30 p.m.

America’s AA Dallas

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

www.americasautoauction.com 219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972-591-2742 General Manager: Ruben Figueroa Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.

America’s AA Austin / San Antonio

Insurance Auto Auctions Dallas*

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.

Insurance Auto Auctions Austin* www.iaai.com 2191 Hwy 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 General Manager: Geoffrey Rabb Tuesday, 9:00 a.m.

Metro Auto Auction – Austin

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

www.corpuschristiautoauction.com 2149 IH69 Access Road, Corpus Christi, TX 78380 361.767.4100, Fax 361.767.9840 General Manager: Hunter Dunn Friday, 9:30 a.m.

Insurance Auto Auctions Corpus Christi* www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880 General Manager: Adriana Serrano Wednesday, 9:00 a.m.

36

Get up to $200 off a buy or sell fee at these participating auctions using the NEW TIADA Auction App!

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

Insurance Auto Auctions DFW*

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

Manheim Dallas

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

Manheim Dallas Fort Worth

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

Metro Auto Auction – Dallas

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.

Texas Lone Star Auto Auction www.tlsaa.com 2205 Country Club Drive 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 10:00 a.m. Standard Sale

Insurance Auto Auctions El Paso* 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.

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

HARLINGEN/MCALLEN Big Valley Auto Auction

NOW ACCEPTING

ONLINE COUPONS! 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.

Insurance Auto Auctions McAllen* www.iaai.com 900 N. Hutto Rd, Donna, TX 78537 956.464.8393, Fax 956.464.8510 General Manager: Ydalia Sandoval Tuesday, 9:00 a.m.

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

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MIDLAND/ODESSA

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.

Texas Direct Auto Auction

NEW

www.tdaa.com 2000 Cavalcade, Houston, TX 77009 281.550.7277 General Manager: Morgan Cavallo Tuesday 2:00 p.m.

America’s AA Houston

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

LONGVIEW Alliance Auto Auction Longview www.allianceautoauction.com 6000 East Loop 281 Longview, TX 75602 903.212.2955, Fax 903.212.2556 General Manager: Chris Barile Friday, 10:00 a.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.

AutoNation Auto Auction – Houston

Insurance Auto Auctions Permian Basin*

NEW

Insurance Auto Auctions Longview*

www.autonationautoauction.com ANAAHouston@AutoNation.com 608 W. Mitchell Road, Houston, TX 77037 855.905.2622, Fax 281.506.3866 General Manager: Mike Green Thursday, 6:00 p.m.

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.

Houston Auto Auction

LUBBOCK

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

Insurance Auto Auctions Houston North* www.iaai.com 16602 East Hardy Rd., Houston, TX 77032 281.443.1300, Fax 281.443.4433 General Manager: Louis Cappi Thursday, 9:00 a.m.

Insurance Auto Auctions Houston*

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

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.

Manheim West Texas

www.manheim.com 614 E County Road 7200, Lubbock, TX 79404 806.745.1905 General Manager: Nicole Graham-Ponce Tuesday, 10:00 a.m.

Texas Lone Star Auto Auction – Lubbock

NEW

www.lsaalubbock.com NOW ACCEPTING 2706 E. Slaton Road ONLINE COUPONS! Lubbock, TX 79404 806.745.6606 General Manager: Dale Martin Wednesday, 9:30 a.m.

LUFKIN www.lufkindealers.com 2109 N. John Reditt Dr. Lufkin, TX 75904 936.632.4299, Fax 936.632.4218 General Manager: Wayne Cook Thursday, 6:00 p.m.

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

T e x a s

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.

Lufkin Dealers Auto Auction

Manheim South Houston

September 2018

Insurance Auto Auctions Lubbock*

D e a l e r

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.

Insurance Auto Auctions San Antonio* 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

www.sanantonioautoauction.com 13510 Toepperwein Road 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 11654 Hwy 64 W, Tyler, TX 75704 903.597.2800, Fax 903.597.2800 General Manager: Wayne Cook Tuesday, 5:00 p.m.

WACO Alliance Auto Auction Waco www.allianceautoauction.com 15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 General Manager: James Baron Friday, 10:00 a.m.

ONLINE ACV Auctions

NEW

www.acvauctions.com 800.553.4070

ONLINE ONLY

Get $250 in Credit 37

“SAVE THE DATE” Dealers Auto Auction of OKC 30th Anniversary Sale Thursday, October 25, 2018 *$50,000+ in cash and Prizes including Grand prize CAR giveaway!!! *Gift for every Dealer!!! *Breakfast, Lunch, Snacks & Drinks in Lane!!

*$5,000 in lane drawings throughout the day Including Early bird, Late bird!!

*$15,000 in cash drawings plus CAR end of sale!!!

$25,000 Total After Sale Drawings!!!!!

That’s right, we Are Bringing it Back!!

1st Specialty Sale @ this Event!!

feature

TIADA Launches Portal to Dispute Fraudulent Toll Charges

by TIADA Staff

L

ast summer, a TIADA member in east Texas received bills from the North Texas Toll Authority and from TxTag. The bills were tied to a dealer agent tag that the dealer believes was photographed and replicated. The tag expired in May 2017, long before the tag numbers began running up toll charges in cities that are over 100 miles away from the dealership.

After filing a police report in Dallas for theft of tag, the dealer called both toll agencies’ customer service departments. Neither was helpful, initially. According to the dealer, the NTTA service representative asked for a title history. How could the dealer produce a title history for a vehicle that he never owned? If such a document could

September 2018

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be produced, then where should it be sent? In what format?

In September, CBS DFW approached this dealer as part of an investigative report into fake paper tags. CBS learned of the dealer after law enforcement provided a copy of a fraudulent dealer agent tag that had the east Texas dealership name on it. The story aired on CBS 11 in late September. NTTA and TxTag sent bills to the dealer for toll charges incurred on the fake tag, which was prominently displayed during the broadcast. After this, a new (fake) plate popped up, this one with a new tag number.

Even with a police report and an investigative report, NTTA and TxTag customer service representatives refused to remove toll charges

incurred on the fake dealer agent tags.

The dealer called TIADA’s Compliance Consultation Service in late March, 2018. TIADA contacted both NTTA and TxDOT (parent of TxTag). Within two hours, TxDOT spoke to the dealer, waived the improper tolls, and forwarded the information to NTTA. Six days later, NTTA responded to TIADA. The response was considerably different than that of TxDOT.

A Challenge with Many Parts

TIADA decided that dealer members needed a way to obtain the efficient and professional resolution to fraudulent toll charges that TxDOT provided.

39

Most Texas toll agencies are aware of the rampant proliferation of fake paper license plates. One could point to the ease with which the fake plates can be created, or to the duty of law enforcement to investigate criminal theft and fraud. However, neither the Texas Department of Motor Vehicles nor local law enforcement agencies can force the toll agencies to take action on behalf of dealers falling victim to tag fraud.

This is the purview of the individual toll agency, which creates their own

policies for ensuring that the person charged for toll road usage is the person who actually used the road.

The agencies understand well the limitations of front-line customer service staff; after all, they do not deal with auto dealers on a regular basis. Moreover, front-line staff may not know what documents a dealer could submit to demonstrate that toll charges are improper. If they did know which documents were acceptable, then they may not know how a dealer should submit them.

Meanwhile, every day that passes brings additional fees and penalties for unpaid tolls. It also increases the likelihood that the unpaid tolls will be referred to a collection agency.

This can be alleviated by (1) making sure that each agency’s process for addressing fraudulent toll charges is known; (2) identifying one person at each agency who will facilitate the resolution of a dealer’s complaint; and (3) connecting the dealer and the agency representative as soon as possible.

New Ideas

.

40

This is why the association created the Toll Charge Complaint Form.

This online form will allow members to enter information about toll charges that the dealer believes are fraudulent. Once submitted, TIADA will route the form to the appropriate toll agency. At participating agencies, a designated representative will then contact the dealer and work on a solution.

To access the form, simply go to txiada.org and select TOLL CHARGE COMPLAINT FORM in the drop down menu under RESOURCES. Then, log in and submit as much information about the fraudulent charge as possible.

In addition to this portal, TIADA recommends the following steps to help reduce your exposure to this type of crime: Make sure that you are the only

person who can access your eTag User ID. You can create sub-user IDs within

your eTag account. This way, you know exactly who created an eTag that has been copied without authorization.

Print only the number of eTags

that you need.

Void out any tags that you put

on vehicles that are going to the auction.

Make sure that your employees re move the paper tags once the cars arrive at auction, just in case someone forgets to void the eTag online.

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September 2018

Assign expiration dates to all dealer agent tags.

Review all dealer agent tags that you provide to

your employees on a weekly basis.

If you discover an issue, access the eTag system and

immediately void any compromised tags.

Notify TXDMV as soon as you discover an issue.

Notify law enforcement, either your local police or

the police in the area where the toll charges arose, the moment you receive a toll bill that has improper charges.

• Give the date of the first improper toll unless the toll charge is for an eTag that you previously voided. In that case, give the date that you voided the eTag. • Request a report number, incident number, or some other indication that you reported the problem.

An auto dealer can do everything right and still have their eTags counterfeited. As the dealer in east Texas found, toll charges can be improperly assigned to you even if you live hundreds of miles away from a toll road and vehicles with your agent tags don’t have a chance to incur such fees. The silver lining to that worst-case scenario is that it created a new portal that has the ability to clear up such situations sooner rather than later.

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Toll charges can be improperly assigned to you even if you live hundreds of miles away from a toll road and vehicles with your agent tags don’t have a chance to incur such fees. The silver lining to that worstcase scenario is that it created a new portal that has the ability to clear up such situations sooner rather than later.

41

Ignorance is no defense.

Know the law.

Repo and financing issues are among the most common violations found by the OCCC. If you own a previous edition of these books from 2008 or earlier, it is recommended that you upgrade to the current editions.

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

TIADA Member Price: $125 (non-members $175)

Texas Automobile Repossession: A Lien Holder’s Legal Guide Everything you need to know about repossessions is addressed in this book, including Notification Requirements, Post-Repo Procedures, Private Sale vs. Strict Foreclosure, Bankruptcy, Post-Disposition Accounting, Tracking and Shut-off Devices, the 60% Rule and more. PLUS – includes all required forms.

TIADA Member Price: $125 (non-members $175)

TIADA

Now available for purchase online at www.txiada.org under “Legal Resources” or call 512.244.6060 to order by phone.

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

Attorney Michael W. Dunagan is the author of the two must-have books for every Buy-Here, Pay-Here dealer in Texas. Mr. Dunagan has been General Counsel to TIADA for over 40 years.

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

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TIADA texas independent automobile dealers association

43

Dealer Academy

in partnership with

Present

Better BHPH Financials: How to Get Organized for Growth Presented by David Keller, CPA, a principal with the dealer group at CliftonLarsonAllen, one of the nation’s top 10 CPA and consulting firms.

The craziness of a busy BHPH operation can make it tough to plan for future growth. But sometimes you need to take a few hours off from working IN your business so you can work ON your business. This ½ day seminar will demonstrate how better organizing your financial and operations structures can be the key to growing your portfolio.

Participants will learn:

8:30am - 12:30pm $99 TIADA Members, $49 Additional Members, $199 Non-members

• • • • • • • • • •

How to increase their credit line, and/or establish a new line How some of the new tax code will affect your dealership The importance of presenting clean, clear financial statements Cash flow management (the key to future planning) How to determine how many units you need on hand How to determine how many dollars you need on hand Static pool analysis, what it is and how it works How to properly value inventory, including turn time How to read financial statements Proper expense allocation and costing

Monday, September 24, 2018 Sponsored by:

www.claconnect.com

www.passtimegps.com

Texas Independent Automobile Dealers Association

Dallas, Texas Hilton Garden Inn 2325 N. Stemmons Freeway • Dallas, TX 75207 214.634.8200 Register online at www.txiada.org or by phone at 512.244.6060.

Please Welcome Our Newest TIADA Members DEALER MEMBERS 500 Below Jason Goodman 3135 Riley Fuzzel Rd. Spring, TX 77386 A-Elite Enterprises Stephanie Hester PO Box 21122 Houston, TX 77226 Armada Auto Group Lupe Chavez 511 N. Belt Line Rd. Irving, TX 75061 Autos Direct Plus Brian Rahlf 1115 Wentwood Dr. Corinth, TX 76210 Drivers Market LLC Israel Ochoa 1310 2nd St. Palacios, TX 77465 FleetWorks of Houston Mo Abusham 4815 Katy Freeway Service Road Houston, TX 77007 Internet Auto Group, LLC Randi Hedge 4455 LBJ Freeway 1200 Dallas, TX 75244 Keith McCoy Automotive LLC Joey Azzam 5720 Forest Park Rd. Dallas, TX 75235

MBM Automotive Mauricio Sanchez 13230 Hempstead Rd. #322A Houston, TX 77040

Yoco Automotive Solutions Colli Bethelmy 14106 Kelann Ct. Dallas, TX 75253

Midwest Auto Group Alexander Touder 3363 MCCue Rd., Apt. 343 Houston, TX 77056

ASSOCIATE MEMBERS Get My Auto Amir Razavi 2333 N Broadway Ste. 100 Santa Ana, CA 92706

Mustang Ridge Hi Tech, Inc. Sahar Chamis 11700 US Hwy 183 S Buda, TX 78610 Pristine Auto Sales Alejandro Moreno 4108 Iris Ave. Fort Worth, TX 76137 River Oaks Autohaus LLC Eric Huber 2929 Buffalo Speedway, #206 Houston, TX 77098 Texas Showcase Owais Zahid 14807 Stocklin Court Sugar Land, TX 77498 Weslaco Automart LLC Jaime Perez 2500 E. Expressway 83 Weslaco, TX 78596 World Auto Direct Angie Rubalcaba 9731 SW Fwy. Houston, TX 77074

Handle Financial Bruce Gaskill 292 Gibraltar Dr. Suite 104 Sunnyvale, CA 94089 OfferUp Cara Schmitz 1745 114TH Ave. SE Bellevue, WA 98004 OpenEdge Kelly Hadlock 8200 Central Ave. Newark, CA 94560 PTS Financial Services, Inc. Krystal Frachiseur 113 North Park Avenue Calhoun, GA 30701 Xclaim Mobile, Inc. Mike Kuryak 8144 Walnut Hill Lane Suite 310 Dallas, TX 75231

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 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 September 2018

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Texas Comptroller 800.252.1382 www.window.state.tx.us NIADA 800.682.3837 www.niada.com

REPOSSESSIONS

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

FORMS

Burrell Printing 800.252.9154 www.burrellprinting.com

Local Chapters VICTORIA Rowdy Ransom RTR Motors 351.582.4511 rowdyroy78@yahoo.com Meeting – 1st Monday (Monthly) FORT WORTH David Byrd Byrd Autos 817.915.2185 david@byrdautos.com Meeting – 4th Thursday of Jan–May and Sep–Oct DALLAS COUNTY Kathrine Tolsch Cico Auto Sales 214.352.9282 cicoauto@verizon.net (dates announced at ww.txiada.org) HOUSTON Rick Maroney Maroney Auto Sales 713.691.3800 rmaroney@usa.net Meeting – 2nd Tuesday (Monthly) SAN ANTONIO Jose Engler Irving Motors Corp 210.385.2568 pepeton2002@hotmail.com (dates announced at www.txiada.org) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 45

behind the wheel

Martin

A Legacy of Leadership

I

n 2011 it would take an individual at least three months to get a new independent automobile dealers license from the Texas Department of Motor Vehicles and the licensing renewal process was the picture of inefficiency. It had been that way for as long as I can remember and was one of, if not, the biggest complaint I heard from the industry. That was the same year Blake Ingram was appointed by Governor Rick Perry to serve in the independent dealer spot on the relatively new TxDMV Board. Within a few months of his appointment Blake’s leadership skills became more and more evident. He was asked to chair a subcommittee to review the dealer licensing process and make recommendations on how the state could become more effective and efficient. In short order Blake put together a committee that included independent, franchise, motorcycle, RV, and salvage dealers. In just four months the committee held numerous meetings, collecting input and suggestions that resulted in the final report. Today it takes on average nine days to secure a new license and the renewal process is even faster.

During those meetings it became apparent the agency was struggling with the “fitness and felony” rule — a rule that required the agency to factor in the criminal history of an applicant. If there were 40 people in the room, there were 40 different opinions on how to apply this rule and little to no direction given to the agency.

Because of their recent success, the licensing committee was given the new challenge to create a fitness and felony rule that was clear and fair. I had a front row seat to watch Blake masterfully manage the committee and

by Jeff

TIADA EXECUTIVE DIRECTOR

all the passionate opinions that resulted in the guidelines used today by the agency.

Blake’s ability to focus on detail and efficiency was tapped again when he was asked to serve on a group working to help launch the faltering webDealer program.

Blake allowed the agency to use his dealership as one of the beta testing sites and provided much needed input throughout the process as Texas moved into this new frontier. His input and guidance was invaluable throughout those early stages.

His advocacy for the industry and passion for his fellow dealers might be his greatest contribution though. At one contentious board meeting an ill-informed peace officer was railing against used car dealers, particularly buy-here pay-here dealers who he painted as criminals. In typical Blake manner he allowed the gentleman to finish. Then he very calmly turned on his microphone and said, “Sir, I am a proud buy-here pay-here dealer and everything you just stated is inherently false.” He invited the officer to stay after the meeting and learn more about the industry.

His peers on the DMV Board recognized his leadership and elected him to vice chair in 2016 and it will come as no surprise that the new rule passed last month that will allow independent dealers to legally pay a customer referral fee was spearheaded by Board Member Blake Ingram.

After seven years of serving your industry with unmatched professionalism and dignity Blake stepped away from the DMV Board in June. However, through his accomplishments he is leaving behind a better board, agency and industry that we can all be proud of.

His advocacy for the industry and passion for his fellow dealers might be Blake Ingram’s greatest contribution.

46

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September 2018

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