Texas Dealer, May 2015

Are Your Customers Thinking About

or Car Ownership?

In This Issue: –M ichael W. Dunagan on Internet Sales –S torage Charges: The Never-Ending Story –N amed Driver Disclosure Rule Implemented by TDI

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E ND

H UG

AY

M

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31

RO

TH

TE

EX

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ADESA Assurance buyer protection program must be added to transaction at time of purchase. Vehicle must be returned in same condition as purchased within 30 days from purchase date. Refund covers vehicle sale price and buy fee, but does not include transportation costs. See terms and conditions for full details. AFC financing available for $30 ADESA Assurance fee. Please see an AFC Representative for complete details or call (888) 335-6675.

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2015 TIADA Board of Directors President Brent Rhodes/Fiesta Motors 5150 Industrial Way Drive Buda, TX 78610 Office: 512.312.2201 Email: brent@fiestamotors.net chairman of the board Michael Thomasson/Mike Carlson Motor Company 264 Exchange St. Burleson, TX 76028 Office: 817.366.9578 Email: mthomasson@mcmcauto.com Secretary Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd.

Dallas, TX 75229 Office: 214.352.9282 Email: cicoauto@verizon.net Treasurer Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net Vice President, West Texas (Region 1) James Hobson/H-Town Motors 3714 Dyer Street El Paso TX 79930 Office: 915.564.9797 Email: htownmotors@sbcglobal.net Vice President, Fort Worth (Region 2) Tommy Gregory/Abilene Used Cars Sales Inc. 497 E.S. 11th Abilene, TX 79602 Office: 325.676.8000 Email: aucsinc@sbcglobal.net Vice President, Dallas (Region 3) Kevin Mims/VP Auto Sales 2921 S. Garland Ave. Garland, TX 75041 Office: 972.864.1300 Email: kevinm@vpautosales.com Vice President, Houston (Region 4) Juan Sabillon/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: brentfordct@yahoo.com Vice President, Central Texas (Region 5) Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net Vice President, South Texas (Region 6) Dan Keetch/Keetch Motors 1010 S. Staples Corpus Christi, TX 78404 Office: 361.882.3541 Email: dankeetch51@yahoo.com Vice President At Large Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net Vice President At Large Trey Crouch/Trey Crouch’s Wheels On Credit 636 E. Business 83 McAllen TX 78501 Office: 956.972.0700 Email: trey@wheelsoncredit.com TIADA Executive Director Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am - 4:30pm 800.442.5944 • Fax 512.244.6218 jeff.martin@txiada.com

Volume XV

/

Issue 5

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M a y 2 015

texasDealer contents

6 Officers’ Message

by Michael Thomasson, TIADA Chairman of the Board

8 Crossword 11 Legal Corner: Internet Sales Create Risk of Out-of-State Lawsuits

by Michael W. Dunagan

12 Upcoming Events 14 2015 VIP Auction Card Directory 16 On The Cover: Are Your Customers Thinking About Ridesharing or Car Ownership?

by Kevin Mims

20 News and Notes 23 TIADA Annual Conference and Expo 31 What “They” Do

by Brent Carmichael

32 Crossword Answers 34 Second Part of Named Driver Disclosure Rule Implemented by TDI provided by Texas Department of Insurance staff

37 TIADA Member Application 38 Regulation Matters: Storage Charges: The Never-Ending Story

by Danny Langfield

41 Local Chapters 42 Legislative Bulletin 44 Motivation Without ACTION is BS

by Fred Gleeck

45 New Members 46 Behind the Wheel

by Jeff Martin

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

DID YOU KNOW that... this year you have the option of purchasing single day passes to the 2015 TIADA Annual Conference and Expo?

Visit www.TiadaAnnualConference.com to find out more about this and other great new options.

The Editor of the Texas Dealer magazine is Teresa Orkun, Marketing Communications Coordinator of TIADA. To change your address for subscription and/or for other TIADA products, call the TIADA state office at 800.442.5944, 512.244.6060 or fax 512.244.6218. E-mail: info@txiada.com. New Membership/Subscriptions: If you are a member of TIADA, you may receive this magazine free of charge. Membership year runs from Jan 1 to Dec 31. Back issues are available for $20 each subject to availability. Send a check or money order, along with your name and mailing address to TEXAS DEALER, Attn: Back Issues, 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 Michael

Thomasson

Two Steps, One Conference

A

s my service on the TIADA Board of Directors is coming to an end and I complete my duties as Chairman of the Board, I wanted to take advantage of my final article as an officer to stress the importance of two elements that have helped me have a little success in many aspects of my career.

The first one is, “Get involved.” You don’t have to serve on the board of directors, but find your spot and lean in. Whether it’s attending seminars, serving on a committee, supporting our INDEPAC political action committee, or taking part in our grassroots lobbying efforts, you need to be involved with your association. It has made a world of difference for me.

The second one is, “Get Educated.” This year will be my 13th time attending the TIADA Annual Conference & Expo and you might wonder why I keep going to the same event year after year. Well, let me share with you a few of the reasons.

My staff and I attend several conferences every year, including some of the national conferences, and TIADA’s is by far the most innovative. I get more out of our conference than from all the others combined as TIADA keeps the topics relevant and covers specific legislative issues that directly affect my business.

At every TIADA conference I always find something new and fresh. This year, for example, I am looking forward to the Deeper Dive workshops and am also very interested in the Serial Entrepreneur learning track. I’ve been around for a long time in this business and I like to think that I have the basics covered; however, some of my newer staff will certainly participate in The Basics track and my finance guys will take care of the BHPH track. We divide and conquer to get the best education

6

ike Carlson M Motor Company (Burleson) TIADA chairman of the board

possible according to our individual interests and roles within the company.

The TIADA Expo offers a unique opportunity for dealers to build relationships with industry leaders, learn about new products and services, and compare providers in all lines of business. At the Expo I see familiar faces, meet new ones, and am always reminded how involved the vendors are in our market segment. Throughout the years I have developed great partnerships while walking the aisles of the Expo.

Where else am I going to find nearly 100 companies in the same place, all relevant to my line of business?

And as far as getting the most bang for your buck, the TIADA annual conference has everybody beat hands down, particularly if you register now and take advantage of our early bird rates. This year we are also offering single day passes so you don’t have to pay the full price if you, or someone on your staff, can only attend one of the days.

If the above reasons were not enough, the conference is also an opportunity for a family vacation at a first class resort. The venues that TIADA chooses have never disappointed and my family is looking forward to the biggest of them all, the J.W. Marriott in San Antonio, the perfect setting to accommodate an event that keeps growing and growing every year.

But this year I have one more reason to attend…. I am feeling lucky… I think this will be my “Lucky 13th“ and hopefully win the big special membership prize of $10,000! Maybe that is just wishful thinking but if it doesn’t happen I will still feel like a winner due to all the knowledge gained and friendships made at this year’s Annual Conference and Expo.

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May 2015

2

c r o s s w o r d

Across 1. Buick sedan 5. Aura maker 9. Till bill 11. R X 350 12. High-end, as a neighborhood 14. ___aru Impreza 16. Jiffy liquid 18. Isuzu SUV 21. Document to protect confidentiality, abbreviation 22. German pioneer auto maker 23. Firebird is one of their old models 26. Compact Nissan model 27. Trucker’s radio 28. Headlight 30. Drink that may be hot or cold 32. Credit, abbr.

33. British luxury car that was bought by BMW 35. ____ Mulsanne 37. Way off the freeway 39. Tire’s necessity 40. Scion five-door sub compact hatchback 41. One of six in a V-6 engine

Down 1. XC60, XC70 or XC90 2. Compass direction 3. Dinosaur last name 4. _____ Sentra 6. Braking system 8

7. C hrysler cars are made here

24. Popular Toyota

8. Prerequisite

25. Small Toyota

10. W heel cover

27. Truck driver’s home

13. T ype of computerized design, abbr.

29. Pro driver

15. D ollar, short

34. “All my ___es live in Texas”

17. J eep alternative

36. Dealer’s area

19. N ear-perfect rating

38. Superbowl score

31. ____-freeze

20. L otus sports-car model 22. A rea of Germany whose flag’s colors were used in the BMW logo

(Crossword answers can be found on pg. 32) T e x a s

D e a l e r

May 2015

UNITED ACCEPTANCE, INC

877-281-2360 10

T e x a s

D e a l e r

May 2015

legal corner

Internet Sales Create Risk of Out-of-State Lawsuits

by Michael

T

he internet can be a wonderful thing. New and exciting applications are being discovered every day that make our world seem smaller. On the business side, the internet has expanded our selling opportunities and increased our buying choices.

Certainly, those who buy and sell motor vehicles have found a brave new world out there where markets are no longer limited by geographical or mileage restraints.

There has also been a dark side to the internet that seems to follow all new innovations as technology shoots out ahead of the laws and regulations that were designed to protect citizens from theft and fraud. Most of our laws were written well before the internet was even a gleam in some computer expert’s (or Al Gore’s) eye.

And just as good and honest businesspeople look for opportunities and markets that something like the internet can bring, so do crooks and thieves see a wonderful universe of new potential victims that they never could have reached under the old ways. Dealing with internet fraud and theft has been a challenge for law enforcement officials who have been forced to expand their activities to a worldwide stage and to incorporate new technologies into their bags of police tools.

And even beyond the scope of fraud and theft on the net, are new issues involving the relationship of buyer and seller when a civil dispute arises.

For instance, legal disputes arise over the condition of a motor

May 2015

T e x a s

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vehicle even when the potential buyer puts his or her hands on the vehicle and possibly has a mechanic inspect it. Imagine, then, what can happen when a buyer never actually lays eyes or hands on the vehicle, but relies solely on photographs and written descriptions.

One of the problems that rarely existed before the internet that the judicial system has had to contend with on an increasingly common basis, is: When does a state’s courts have jurisdiction over a resident of another state who sells to a resident of that state over the internet?

A number of Texas dealers have had to face up to this issue when an unhappy out-of-state buyer decided to sue over the transaction in the buyer’s home state. We have seen lawsuits brought against Texas dealers in New Jersey, California, Florida, West Virginia, and Hawaii, to name a few.

Obviously, a litigant in a multistate transaction would prefer to have a lawsuit heard in his or her home state. First, there is the issue of home-field advantage. A judge or jury just might be more sympathetic to a neighbor than to a foreigner.

But far more important is the cost of litigation. The defendant’s regular attorney is likely not licensed to practice in the other state. This means that counsel would have to be retained in the state the case was filed in, and in representing a nonresident, that attorney will probably demand a substantial retainer. Even if the dealer’s regular counsel could obtain temporary permission to appear to challenge the jurisdiction,

Dunagan

W.

TIADA general

counsel

he or she might not have a grasp of that state’s procedural process.Then there is the problem of the expense and down time an out-of-state litigant faces in having to travel to and from the location of the court.

Consider, for example, the case in which a Texas dealer advertises a vehicle on the internet, and concludes a sale with a resident of Massachusetts. The buyer in Massachusetts, upon the arrival of the vehicle, decides that it is not the shiny, perfect-condition vehicle that the buyer envisioned when reading the description and reviewing the pictures attached to the internet listing. The dealer takes the position that the vehicle was accurately represented and refuses the buyer’s demand to buy the vehicle back. The buyer then files suit in a Massachusetts state court, seeking to dissolve the transaction and to recover transportation costs and attorneys fees. The Texas dealer is soon served with the lawsuit papers and must now decide how to respond.

The threshold question that arises in this situation is whether courts of the Commonwealth of Massachusetts (or whichever state is involved) have jurisdiction over the Texas dealer. This is a question that has been the subject of inquiry by legal scholars since the beginning of the republic. The founders 11

Upcoming Events TIADA Dealer Academy May 2015 7 Dealer 101: Nobody Told Me That!

Hilton San Antonio Airport 611 Northwest Loop 410 San Antonio, TX 78216 Online registration available www.txiada.com

June 2015 16 Keeping Your Dealership

Legal and Compliant Best Western Plus 100 Alta Mesa Blvd. East Fort Worth, TX 76134 Online registration available www.txiada.com

other TIADA events August 2015 9 TIADA Board of

Directors Meeting San Antonio, TX

9–12 TIADA Annual

Conference and Expo J.W. Marriott Hill Country Resort and Spa San Antonio, TX

12

recognized that each of the states would be entitled to have its own court system that would operate in parallel with the federal courts, and that the federal courts would be restricted in the type of cases they could hear.

Over the years, the concept of “minimum contacts” was developed to determine when a state’s court would have power over a non resident. That is, it was determined that it would be a violation of constitutional due process for one state’s courts to exercise jurisdiction over a non resident unless that person had certain minimum contacts with that state. Those contacts include (among others) whether the defendant had a place of business or residence in the state; whether the defendant had transacted business with residents of the state before; to what extent the defendant completed the contract or transaction in the state; and whether the defendant targeted advertising to the state’s residents (such as advertising in a newspaper or magazine that was distributed in that state).

In most cases we’ve seen, the primary issue was whether targeted advertising was involved, since the dealer did not have any presence in the other state, and had not had prior sales there. The new internetrelated sub-issue became whether a listing placed on an internet trading site amounted to targeted advertising since the dealer knew (or at least, should have suspected) that the listing placed by our Texas dealer would be seen by residents of Massachusetts, for example.

Some courts have concluded that the placement of a listing on an internet trading site, alone, would not give rise to sufficient contacts to create jurisdiction. Others have taken the opposite point of view.

We have seen a number of articles that analyze the cases that have addressed this issue.

But when it gets down to decision time for the dealer, it really doesn’t matter all that much which way the

courts in the state where the lawsuit was filed have ruled on the issue.

More important than the legal issue is the practical problem of the cost of fighting the jurisdictional question in the foreign state. That cost could be as much or more than the cost of litigation over the actual consumer dispute. The point here is that even if the Texas dealer is entitled to have the case heard by a Texas court, the cost of obtaining such a ruling could exceed the amount that is in dispute.

In the event that the Texas dealer loses on the jurisdictional question, he must then defend the actual consumer case in the Massachusetts court and the costs that go with foreign litigation, whether the main case is won or lost. If the jurisdictional question is won, then the buyer would have to sue in Texas courts.

An obvious consideration for those who sell on the internet should be a program to quickly identify and settle consumer disputes on out-of-state sales to avoid having to even face the issue. Certainly having the buyer come to the dealer’s location to examine and take delivery (and possibly have an independent appraisal by a mechanic) would increase the seller’s argument that Texas courts should have control.

Also, a provision compelling that disputes would be litigated in the seller’s location (although not always enforceable by other states) could enhance the seller’s argument.

Using the internet to expand one’s markets beyond the state borders can have a very positive impact on sales.

But a dealer’s business plan should also factor in the cost of the risk of facing out-of-state litigation.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 35 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

T e x a s

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May 2015

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2015 TIADA VIP Auction Card Directory

Manheim Manheim DFW Dallas Manheim Manheim San Antonio El Paso Manheim Manheimn Texas Hobby Housto ADESA ADESA Austin San Antonio ADESA ADESA Houston Dallas

Alliance

w Alliance

AA Longvie

Alliance

AA Abilene

AA Waco

Alliance

AA Dallas

’s America AA Austin/ San Antonio

’s ’s America America AA Dallas AA North Houston

Houston

AA AA Metro Austin

Texas Heart of AA El Paso dent AA Waco Indepen Can! America Kids for Texas Lone Star AA Cars Arlington Carrollton CM Dealers y Compan s of OKC Auction

AA

Big Valley AA Donna

Corpus

Austin

Permian

Houston

Basin Dallas

Houston

w North Longvie

McAllen

DFW

abilene

corpus Christi

Alliance Auto Auction Abliene

Insurance Auto Auctions*

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

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

www.allianceautoauction.com

www.iaai.com

C.M. Company Auctions, Inc.

DALLAS / Ft.Worth Metroplex

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

Adesa Dallas

www.cmauctions.com

www.adesa.com

austin

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

Adesa Austin

Alliance Auto Auction Dallas

www.adesa.com

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

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

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

Insurance Auto Auctions* www.iaai.com

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

Metro Austin Auto Auction www.metroautoauction.com

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

www.allianceautoauction.com

9426 Lakefield Blvd.

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

America Can! Cars for Kids www.charitycarauctions.org

1911 E. Division Arlington, TX 76011 972.274.5437, Fax 214.944.1950 General Manager: Jennifer Kitchens Saturday, 9:00 a.m.

America’s AA Dallas

www.americasautoauction.com

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

Insurance Auto Auctions* www.iaai.com

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

Insurance Auto Auctions* www.iaai.com

* VIP card accepted for sell fees only 14

Christi

El Paso

Lubbock

San Antonio

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

204 Mars Road, Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 General Manager: Henry Valenzuela Wednesday, 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: Jeff Modjeski 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.

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: Lori Pidgeon Wednesday, 9:30 AM In-op Video Sale / 10:00 AM Standard Sale.

Insurance Auto Auctions* 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: Brian Walker Thursday, 10:00 a.m.

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May 2015

Insurance Auto Auctions*

san antonio

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

Adesa San Antonio

www.iaai.com

Manheim Houston www.manheim.com

Harlingen / McAllen Big Valley Auto Auction www.bigvalleyaa.com

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

Insurance Auto Auctions* www.iaai.com

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

houston Adesa Houston www.adesa.com

4526 N. Sam Houston Houston, TX 77086 281.580.1800, Fax 281.580.8030 General Manager: Mark Lindenmuth Wednesday, 9:00 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.

Houston Auto Auction

www.houstonautoauction.com

6767 North Freeway Houston, TX 77076 713.644.5566, Fax 713.644.0889 General Manager: Joe Lavigne Tuesday, 1:00 p.m.

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 Texas Hobby www.manheim.com

8215 Kopman Road Houston, TX 77061 713.649.8233, Fax 713.640.6330 General Manager: Rich Curtis Thursday, 9:00 a.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: Jeff Loftin Friday, 10:00 a.m.

Insurance Auto Auctions* 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.

lubbock Insurance Auto Auctions* 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.

midland / odessa

Insurance Auto Auctions*

Insurance Auto Auctions*

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

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

www.iaai.com

May 2015

T e x a s

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www.iaai.com

www.adesa.com

200 S. Callaghan Rd San Antonio, TX 78227 210.434.4999, Fax 210.431.0645 General Manager: Sam D’Amato Thursday, 10:00 a.m.

Insurance Auto Auctions* 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.

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: Darren Darnell Friday, 10:00 a.m.

Heart of Texas Auto Auction www.heartoftexasautoauction.com

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

Oklahoma city, OK Dealer’s Auto Auction of OKC, Inc. www.daaokc.com

1028 South Portland Oklahoma City, OK 73108 405.947.2886, Fax 405.943.8370 General Manager: Gary Smith Thursday, 8:30 a.m.

15

on the cover

by Kevin Mims

VP Auto Sales, Inc.

Are Your Customers Thinking About

or Car Ownership?

A

s a car dealer I am always looking for outside influences that might affect my business so when I started hearing everyone talking about Uber, Lyft, SideCar and similar ridesharing companies I started to wonder what effects these type companies might have on my business. Do I need to be on the lookout? And I didn’t seem to

16

be alone as this topic often came up in casual conversation with other fellow dealers. So I decided to do some research and in this article I will give you my perspective on the current influence and possible future effects of ridesharing companies on the car dealership industry. But first let me share some facts I discovered about one ridesharing company, Uber.

Uber currently operates out of

three Texas cities: Dallas (10th), Houston (14th), and Austin (16th). San Antonio’s operations stopped last month due to excessive regulations on the city’s transportation ordinance.

The vast majority of Uber’s rev enue comes from fewer than 10 cities, none of which are in Texas.

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May 2015

Uber currently has about 160,000

drivers and is adding somewhere around 50,000 new ones per month. 51% of Uber drivers work less than 15 hours per week, and after just 1 year as a driver, about 45% of all drivers no longer drive for Uber.

Only 55% of the US population

has access to the Uber service, the majority of which are in major metropolitan cities with very high population densities.

Ok, I am a BHPH dealer, so what does all of this mean for my dealership in Texas? If we add all of the ridesharing drivers from Texas cities together, the sum does not overcome the top 6 cities drivers independently.

Texas cities are naturally disadvantaged to the ridesharing model as our population density is very low when compared to the top producing cities (Los Angeles, San Francisco, New York, Chicago, DC and Boston). The demand for Uber drivers in Texas

cities is nowhere near the demand for them in the above cities and, unless you are operating a BHPH dealership in Dallas, Houston or Austin, the chances of seeing Uber as employer on a credit application is very low. In addition, with the majority of Uber drivers being very part-time (15 hours or less per week), combined with the high driver attrition rate, seeing Uber as their primary source of income on a credit application becomes even more scarce. I would also put some thought into using Uber income in risk analysis for deal approval as, just like with other forms of income, length of employment is very important.

While driving for a ridesharing service might put a few extra bucks in my customer’s pocket (and help him make his car payment), I am concerned about potentially putting my collateral at additional risk. Specifically, I am concerned that an insurance company could take the position that driving for

a ridesharing service constitutes a “commercial use” of a vehicle, and potentially deny a property damage claim on those grounds. As a matter of fact, TIADA is monitoring several bills at the state capitol that could address this issue.

Becoming an Uber driver is not for everyone. To be an Uber driver you must be over 21, must have instate insurance with your name on the policy, a valid in-state driver’s license, a current registration, a clean driving record, pass a background check, and own a 4 door car that is a 2006 model year or newer (for most cities). For most BHPH dealerships operating in Texas, these criteria probably don’t fit your business model nor your current customer demographic. When combined with the driver stats above, these requirements further decrease the chance of us seeing Uber on a credit application. However, there are some retail dealers who may find a niche in this market.

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Conversely, there are also requirements to being a ridesharing customer. You must have a smartphone, an internet connection, a credit/debit card for payment (no cash or check), some level of tech savvy, and be able to absorb price increases on return trips (surge pricing) that could leave you stranded.

Some of these are becoming less and less of a barrier though as the proliferation of smart-phones increases (cheaper and cheaper) and the businesses distance themselves from taking cash as a form of payment (encouraging debit/credit/pre-paid cards). There exists other barriers that will be more of a challenge for Uber to overcome; developing very intuitive user interfaces for their website, and maybe offering some sort of guarantee for riders being dropped off that they will be able to afford to be picked up and not be left stranded (especially those customers on the margin financially).

I switched the focus to the ridesharing customer (vs. the driver) as I believe this to be the area that potentially could have the biggest impact on our dealerships, just not today. The majority of ridesharing riders are younger and not necessarily our customers today, but one that we could see in the future. The ridesharing service offers a new alternative to not owning a car that is currently competing directly with public transportation and taxis and, while not directly competing with car dealerships today, this service could be very influential on these customers buying a car from us, or not, in the future.

Ridesharing is essentially reducing the fear and the stigma of not owning a vehicle and there is an increasing willingness to try alternative transportation methods.

I believe that car dealerships in Texas still have the natural advantage of the low population density

of Texas cities, the desire to own a vehicle by Texas residents, the lack of public transportation within and across cities, and the relatively low cost of vehicle ownership. We must capitalize on these advantages and enhance them by consistently trying to provide an above average customer service experience, try to sell the best quality product we can, and strive to build and maintain positive relationships with our customers. These things are what makes our customers refer and repeatedly buy vehicles from us. Luckily for us, they are also things that make it possible for people to own cars and use alternative transportation services mutually. Personally, I like ridesharing and I think it provides a very useful service. Will I be giving up my cars? Not a chance. And that is the beauty of the question, “Ridesharing or car ownership?” To me it should be, “Ridesharing AND car ownership.”

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

1-800-687-3236 Tri-State Dealer Services is one of the largest writers of Garage Liability in the state. We work with several A+ rated companies which offer exceptional rates to car dealers and repair shops. Call today for a “quick” 10-minute quote!

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18

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D e a l e r

May 2015

news & notes

Happenings in the Industry…

compiled by Texas Dealer staff

TIADA Introduces the New Community Leader Award

NIADA Convention and Expo

I

ndependent dealerships across the state contribute every day to their communities. TIADA would like to recognize those dealerships that selflessly give back and work to make this the great state of which we are proud. Dealerships and their staff enhance and support their communities in many ways. Through charity events, volunteerism, special innovative projects, sponsorships, financial contributions, or by other charitable activities, our members play a vital role in fostering strong relationships within their communities. This award was created to honor those independent dealers in Texas.

Deadline for nomination is June 1, 2015.

Nominees must be members in good standing with the

Texas Independent Automobile Dealers Association.

Nominations may be made by the dealership, a com munity business or organization, the state independent automobile dealers association, a community member or even a loyal customer.

The winning dealership will be named at the Annual

Conference and Expo in San Antonio, August 9–12, 2015.

To download the Community Leader Award, visit www.txiada.com and click on the “Awards” link found under the “About TIADA” tab. There you can also find the criteria and nomination form for the Independent Award.

T

he National Independent Automobile Dealers Association Convention and Expo will be held June 22–25 at Caesars Palace in Las Vegas.

Full access registration is $599 per person and includes all education sessions and materials, Expo admission, meals and social functions including both Wednesday & Thursday awards reception, dinners and after-party. Complete event information and registration is available at www.niada/convention.php.

Recruiting Challenge Update

T

he following dealers have already earned a cup of coffee on us and are on their way to earn a free registration to the TIADA Annual Conference & Expo, with one dealer working on his trip to Vegas.

Michael Zak (10) Brent Rhodes (2) Phil Lathrop (1) Trey Crouch (1) Michael Kirby (1) George Dodd (1) Donny Cuevas (1) Richard Dodson (1)

Want to see your name on this list? Jeff tells you how in “Behind the Wheel” on page 46 of this issue or find the full details on page 27 of the March 2015 Texas Dealer.

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feature

What “They” Do

by Brent Carmichael Executive Conference Moderator NCM Associates 20 Group Operations

{Editor’s Note: Brent will be featured in the BHPH learning track at the 2015 TIADA Annual Conference & Expo.}

I

have the privilege and honor of traveling this great country of ours and working with BHPH dealers of all shapes and sizes. But no matter where I am or the size or shape of the dealer, I always get the same question: What do “They” do? The “They” they are asking about is the better or more successful dealers.

Now, the good thing about BHPH is that there are whole bunches of ways to do it. There is no one single way that will work for everyone, everywhere. Problem is there are just as many ways to do it wrong. But for the dealers that seem to do it a little bit better than everyone else there are a few common denominators; a few things that “They” seem to do a tad bit better than the average Joe. The first, and I feel the most important one, is people.

Their overall people management makes them better.

From hiring, to training, to pay plans, to simply their employment environment. They hire slow and fire fast. They hire who they want, not have to hire who they need. They continually train their entire staffs. Their pay plans promote a team mentality. And they provide a professional but fun work environment. “They” do people very well.

Next are processes and procedures. They have documented processes and procedures for most, if not all, of what happens in their organization. Documented being the key word here. They make sure that those processes and procedures are implemented and adhered to on a consistent basis. They do this by continually training on them

and updating them when necessary. “They” do processes and procedures well.

Education is the next thing that sets them apart. They are always looking for ways to educate themselves. They belong to local, state and national dealer associations. They subscribe to as many trade publications as they can. They attend industry conventions and conferences. And they seek advice from industry consultants and are members of 20 Groups. “They” educate themselves well.

Technology is something else that they take advantage of.

They not only have a DMS that can handle their needs, but they know how to use all it has to offer. They not only have a well-functioning website, but track and make changes when necessary. And they take full advantage of the World Wide Web; from collections, to car buying, to pre-employment testing. “They” are technologically savvy.

Lastly, they plan. They know what their cash flow needs are. They budget for expenses. They project collections and sales. They do this not only on a monthly basis, but annually as well. And they do this based on what they can do, not what they necessarily want to do. “They” plan effectively.

This is what “they” do. I can assure you that they didn’t always do these things. They all realized at some point what it would take to be one of them. Most dealers I know do at least one of these. Some even two or three, but only a few do all of them. And do them well. How close are you to being one of “Them”?

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TIADA Dealer Academy 2015 Keeping Your Dealership Legal and Compliant a seminar with

Michael W. Dunagan, TIADA General Counsel

Author of the standard-setting books, “Dealer Financing of Used Car Sales” and “Texas Automobile Repossession: A Lien Holder’s Legal Guide.”

Michael W. Dunagan’s ongoing quarterly compliance seminar features updates on both federal and state regulations with a focus on advanced dealership financing issues. This is the practical side of compliance from the association that understands you have a business to run — and you want to run it right.

The seminar will focus on advanced financing concepts, with special emphasis on in-house financing, repossession & bankruptcy issues, OCCC compliance and federal regulations.

• Customer ID requirements – what is acceptable?

• Privacy Notice requirements – do we need a new, custom form?

• Risk-Based Pricing – what does the rule require?

• Credit Card Convenience Fees – what is allowable?

• Adverse Action Rule – who is affected?

• Consumer Financial Protection Bureau (CFPB) – what can dealers expect?

• Bankruptcy – when do we have to give the vehicle back?

• Repossessions – When does the 60% rule apply? Is repo notice required? Do we have to return custom wheels? Do we have to disclose a GPS unit?

• OCCC Audits – what are the most common mistakes dealers make?

• TxDMV Enforcement – advertising violations, title management issues & more

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feature

Second Part of Named Driver Disclosure Rule Implemented by TDI provided by Texas Department of Insurance staff

T

he following information has been provided to TIADA by the Texas Department of Insurance (TDI) regarding rules recently implemented for named driver auto policy disclosure requirements.

IMPORTANT NOTE: these rules are the result of legislation that passed in 2013. The current legislature is considering a bill that would essentially prohibit the issuance of named driver policies altogether (HB 335 — Thompson and Senate companion SB 1755 — Seliger), legislation that TIADA strongly supports. Bills have also been filed this session that propose to further change the disclosure requirements for named driver policies.

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You can track the progress of these bills as well as all the legislation TIADA is following at www.txiada.com under Advocacy / Legislative Action Center / Key Issues.

Synopsis and Action

The commissioner of insurance adopted a rule to add new Section 5.208 to Title 28, Texas Administrative Code (28 TAC §5.208). The rule implements the named driver disclosure requirements in new Texas Insurance Code §1952.0545, which was created by Senate Bill 1567, 83rd Legislature, Regular Session, 2013.

Background

SB 1567 created requirements for certain personal auto insurance policies known as “named driver policies.” SB 1567 defined a named driver policy as a policy “that does not provide coverage for an individual residing in a named insured’s household specifically unless the individual is named on the policy.” The legislation requires a specific disclosure statement, given orally and in writing, for auto policies that qualify as named driver policies under the bill. Insurers and agents must provide the disclosure on auto insurance identification cards, as well as on the policy. Insurers and agents must also provide the disclosure in writing and orally when a consumer buys a named driver policy.

TDI implemented rules for SB 1567 in two parts.

On April 28, 2014, TDI completed the first part of its SB 1567 implementation when the commissioner adopted revisions to 28 TAC §5.204 to require disclosures on the prescribed auto ID card form.

Section 5.208 is the second part of TDI’s SB 1567 implementation effort and addresses other written and oral disclosure requirements in SB 1567.

Detailed Summary of the Rule

The rule restates the SB 1567 requirements that agents and insurers may not accept any premiums or fees for named driver policies until they provide the following disclosure:

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WARNING: A NAMED DRIVER POLICY DOES NOT PROVIDE COVERAGE FOR INDIVIDUALS RESIDING IN THE INSURED’S HOUSEHOLD THAT ARE NOT NAMED ON THE POLICY. The rule reiterates the statutory requirements that agents and insurers must: 1. provide the disclosure in writing on the policy and on the auto ID card 2. receive a copy of the disclosure signed by the applicant or insured 3. make the disclosure orally to the insured, and 4. require the applicant or insured to confirm contemporaneously in writing the provision of the oral disclosure.

The rule also clarifies that it applies to all agents and insurers offering automobile insurance in Texas, and to: 1. all new and renewal named driver policies 2. named driver policies of any length of term, and 3. policies in which any type of coverage applies only to named drivers (for example, if liability coverage applies to all drivers, but collision applies only to named drivers, then the policy is still considered to be a named driver policy).

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The rule allows the agent or insurer to choose how to comply with the oral disclosure requirements, including live in-person disclosures and recorded disclosures that are provided in person, over the Internet, or by telephone. All signatures that the proposed rule requires must be original or electronic signatures executed specifically for each new and renewal policy.

The rule also includes prohibitions to prevent violations of the disclosure and signature requirements, including prohibiting: obtaining signatures before agents or insurers make the disclosures, copying signatures from other documents, or presuming that paying the premium demonstrates that the signature requirement has been met.

Agents and insurers must provide the disclosures, which are in English, and they may also provide them in other languages. Agents and insurers are not required to get disclosures each time an installment payment is made. If an agent or insurer fails to comply with the requirements in the rule or statute, the agent or insurer may not use that noncompliance as a reason to avoid liability under the policy.

For more information, contact Mark Worman by email at mark.worman@tdi.texas.gov, or by phone at 512-676-6740.

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TIADA Membership Application

2015

Business Name: ____________________________________________ Select one:

Dealer Member

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________

2015 TIADA Membership Dues:

City: _________________________________________ State: _______

Join Date:

Dues:

Zip: __________________ County: _____________________________

Jan. / Feb. / Mar.

$425

Apr. / May / Jun.

$320

Jul. / Aug. / Sep.

$215

Oct. / Nov. / Dec.

$425

E-mail address: _____________________________________________ Phone: _______________________ Fax: ________________________ Dealer P Number: ___________________________________________ Who referred you to TIADA? __________________________________ Mailing Address (if different from above): __________________________________________________________ City: _________________________ State: _______ Zip: ___________

(includes all of 2016) (all dues include NIADA membership)

PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: _____________________________________________ Expiration Date: ____________ Monthly Payments - $100 initial payment & $29.50 per month Via Credit Card (Please enter card information above. Authorization Agreement required - contact state office) Via Bank Draft (Authorization Agreement & voided check 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.com

512.244.6060

800.442.5944

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.

May 2015

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regulation matters

Storage Charges: The Never-Ending Story

by Danny

Langfield

N

early two years ago I did a column about a Dealer Roundtable discussion I co-moderated at the 2013 TIADA Annual Conference & Expo.

The topic was vehicle storage charges, and unfortunately, this subject continues to generate plenty of angry calls from our members to this day.

The object of their frustration is commonly not a licensed vehicle storage facility (although they are not exempt from the occasional cussing), but body shops and other non-VSF entities who seem to believe they can charge whatever storage fees they want to, without notification and with no regard for the lienholder — or anyone else, for that matter.

Much of what follows is excerpted from that 2013 column as well as the Dealer Roundtable discussions, both of which were entitled: “Can They Do That?? Storage Charges & Mechanic’s Liens.”

With regard to storage charges, the first fork in the road comes in determining whether you are dealing with a licensed VSF or a non-licensed facility. Contrary to popular belief, non-licensed facilities may legally charge storage fees. The difference between a VSF and a nonVSF is that a VSF is licensed and regulated by TDLR (Texas Department of Licensing and Regulation), and as a licensed entity, is subject to the limitations of Chapter 2303 of the Occupations Code. That statute sets out what charges are permissible and allowable amounts for each.

All that is the good news. The bad news is that a VSF storage lien is superior to a dealer’s lien, and therefore a VSF licensee is able to get title to a vehicle without obtaining a release of lien from the car creditor.

A non-VSF (such as a body shop), on the other hand, is not subject to the terms of Chapter 2303 above and is regulated by... well, no one. Such a facility is defined (sort of) in Chapter 683 of the Transportation Code, but it is neither licensed nor regulated — more bad news. On the bright side, however, their lien is inferior to a dealer’s lien, and therefore a non-VSF should not be able to get title without a release of lien from the car creditor.

Both types of entities above are prohibited under Chapter 683 from charging more than five days of storage until notice is mailed to the owner and any lienholder on the vehicle. That means that, no matter how long someone has been holding your vehicle, they are only entitled to five days of storage fees if they have not provided you written

38

TIADA deputy director

...no matter how long someone has been holding your vehicle, they are only entitled to five days of storage fees if they have not provided you written notification.

That goes for both VSF’s and non-VSF’s. notification. That goes for both VSF’s and non-VSF’s.

Many dealers in our discussions were frustrated by the five day notification period, which, in practice, obligates the dealer to pay for at least five days (plus mail delivery time) of storage without even knowing where the vehicle is. Some attendees also pointed out that certain shady operators engage in a practice of basically holding a vehicle hostage for storage fees, whether they are authorized or not. These operators often disregard the notification laws entirely, and in some cases illegally part the car out a piece at a time when they are unable to get title.

In a scofflaw situation such as this, a dealer has little choice other than to take legal action by filing a writ of sequestration and having the vehicle removed by a constable. This option is understandably not very appealing to the car creditor when the collateral in question does not justify such an expense.

In the fall of 2014, TIADA president Brent Rhodes appointed an ad-hoc committee to study towing and storage issues. The committee was charged with classifying and T e x a s

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prioritizing the myriad issues dealers encounter in this arena, reaching out to other stakeholders (including the storage industry itself), and identifying possible solutions.

After several meetings and soliciting input from numerous industry stakeholders, the committee determined that the majority of the serious issues experienced by dealers appeared to emanate primarily from unlicensed body shops, rather than licensed VSF’s. The committee also determined that licensing body shops may be the most effective way to address many of the issues that were identified. It was noted that an ally might be found with the insurance companies, who also have issues with body shop charges. It was also noted that such a licensing change would require a significant legislative effort and likely would encounter serious opposition not only from body shops themselves, but also from those legislators opposed to increased governmental regulation.

The Houston Auto Board has also been studying issues surrounding the towing and storage of vehicles in their municipality and is contemplating various tactics to address these problems. TIADA will monitor the auto board’s progress and keep our members informed as developments warrant.

May 2015

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resource guide The TIADA Website:

www.txiada.com Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Legal Consultation Service and much more. Register for all upcoming TIADA events online at the Calendar of Events; access our online membership application; find contact information for all our Local Chapters, and find many additional resources at our Links page.

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov Office of Consumer Credit Commissioner 800.538.1579 www.occc.state.tx.us

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

Repossessions

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

Forms

Burrell Printing 800.252.9154 www.burrellprinting.com

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lufkin Lufkin Dealers Auto Auction

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

tyler Greater Tyler Auto Auction

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May 2015

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Local Chapters Victoria Dennis Schroller Victoria Autos Direct 361.578.0530 Dennis@victoriaautosdirect.com Meeting – 1st Monday (Monthly) Fort Worth Jerry Smith HJ Smith Automobiles 817.282.0102 hjsmithauto@yahoo.com Meeting- 4th Thursday of December, February, April, June, August and October Dallas County Kevin Mims VP Auto Sales 972.864.1300 kevinm@vpautosales.com Meetings as needed/TBD Houston Michael Zak Dixon Motors 281.931.1300 houiada@houiada.com Meeting – 2nd Monday (Monthly) San Antonio Robert Beck Stop N’ Drive Motors 210.432.1101 stopdrive@texas.net Meetings quarterly (dates announced at www.txiada.com) El Paso Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 41

legislative bulletin

A

t press time, there were less than six weeks left in the 84th regular legislative session, which means a mad dash to the finish line as legislators push to have their bills voted out of committee. If a bill hasn’t had a committee hearing at this point in the session the bill is essentially dead. Even if a bill is voted out of committee in the next couple of weeks, time will simply run out before the bill can weave its way through the legislative process and become law. Below I have identified a few bills we have been watching that have and have not been heard in committee:

Did not receive a committee hearing

HB 318 (Keough) – This bill is very similar to HB 335, Rep. Ed Thompson’s bill that would eliminate named-driver only polices. Rep. Keough elected to join Rep. Thompson and signed on as author to HB 335 which has received a hearing. TIADA supports this bill.

HB 385 (Keough) – This bill would allow an individual to sell up to 11 vehicles per year without obtaining a dealer’s license. Currently an unlicensed individual may sell only four per year. We believe anyone selling more than four vehicles in a year is essentially dealing in motor vehicle sales and should be licensed appropriately. TIADA opposes this bill.

SB 441 (Burton) – This bill would eliminate the blue law, which prohibits dealers from selling vehicles on consecutive weekend days. TIADA opposes this bill.

HB 2169 (Collier) – This bill would establish a used car lemon law. TIADA opposes this bill.

HB 2335 (Collier) – This bill would require

TxDMV to post an annual report on used vehicle dealer complaints on its website. TIADA opposes this bill.

SB 1143 (Watson) – This bill proposes to allow

the county TAC to enter contracts with customers to pay their TT&L fees over time, rather than upfront. We 42

by Jeff

Martin

are very concerned about this bill and the possibility of a hidden lien being created. We are working with Sen. Watson’s office to address our concerns as we monitor this bill.

Did receive a committee hearing

HB 335 (Thompson, Ed) – This bill would elimi-

nate the named-driver-only policies. TIADA supports this bill.

HB 533 (Ashby) – This bill would authorize law

enforcement to impound a vehicle for no insurance.

TIADA wants to ensure that proper protections and notifications are provided to lienholders and therefore is monitoring this bill.

HB 2076 (Oliveira) – Due to a new position taken

by TxDMV on the matter of mechanic’s liens notification process, TIADA worked with Chairman Oliveira’s office to developed this bill and to ensure that lienholder’s interests continue to be fully protected. TIADA supports this bill.

So does that mean if a bill didn’t receive a committee hearing that the language is dead? No, the bill is dead but the language could show up as an amendment to another bill in the next month. TIADA will remain vigilant throughout the session to keep negative amendments off legislation that is moving forward.

Since many of the bills we support did receive a hearing does this mean they will pass? No, there are still numerous stages the bill must endure to become law and time is ticking.

Your best source of up-to-the-minute information on legislative issues that will affect your industry is the Legislative Action Center, found under Advocacy at the TIADA website, www.txiada.com. As always, we welcome the input of our members regarding legislative matters. TIADA’s legislative team will work diligently to keep you abreast of the issues and call on you to act when needed.

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feature

Motivation Without ACTION is BS

by Fred Gleeck Information Marketing Expert Fred Gleeck Productions

{Editor’s Note: Fred will be featured in the Serial Entrepreneur learning track at the 2015 TIADA Annual Conference & Expo.}

I

f you are one of those people who think “The Secret” was brilliant, you better get off this train right here.

The idea that you can THINK yourself into a “wealth of riches” is patently absurd and ridiculous. I certainly don’t want to paint everyone with the same brush (and won’t here), but James A. Ray, now on trial for MURDER, was part of this illustrious group.

Can you inhibit your own ACTIONS by what you have (or put) in your mind?

Absolutely. But think of this. Have you ever known some really negative thinking S.O.B. who made a boatload of money and got famous? I SURE HAVE!! There are too many examples to illustrate this point.

Whatever you can do to get yourself to take ACTION will help you get things done. AND, help you get what you want in life. The problem is: WHAT/ WHICH action or actions to take? There is so much BAD information out there that it’s easy to make the wrong choices. Follow the wrong guru or advice and all the action you take won’t get you SQUAT! The people who are doling out the BAD information are often times gifted with an unbelievably strong ability to represent themselves as geniuses. And PROPHETS for that matter.

If you’re with me so far, you agree that ACTION is what gets things done. It makes things happen. It gets your results accomplished. It has NOTHING to do with what you THINK. I’m not suggesting that you “think negatively” or act like a jerk. That’s just not as easy as having a positive attitude and trying to be nice. No matter how hard you think, motivate yourself, or even pray, it still takes getting off your BUTT and doing something. You need a PATH to take and a WAY to get yourself to take ACTION. We’ll talk about how you get yourself to take that action a bit later.

It’s also confusing because the path you select to get something done may be COMPLETELY different than someone else pursuing the exact same goal. YET, both of you can succeed. How’s that? Because just as you can get to an address in many different ways on the streets

44

and highways, you can also get to the same destination in your career/job/goal in a bunch of different ways. The problem comes back to the map. And who’s selling the map. There are a LOT of people out there who will make money selling you a map. Their concern about the map being accurate is often times less important.

Let’s talk about PATH SELECTION. How to best do it? First remember the old adage: If it sounds TOO GOOD to be true, it probably is.

Don’t believe ridiculous claims. They are just that: RIDICULOUS. Second, ask to see proof of results. If the person selling you the map can’t show you his/her results that match the claims, then RUN! Third, remember that there may be a few people that sell legitimate maps. Choose the right map for you by using your gut. Those “Secret” people should LOVE that advice.

What about taking ACTION? How do you get yourself to do it? This is VERY different for everyone.

For me I get things done and take action because I feel I HAVE TO! I have a voice inside me that won’t let me settle for second place. I have to win. Therefore, I find it easy to take action. Because without it, I definitely WON’T win!

The best way I’ve found to discover how to get YOURSELF to take action is to look at your past behavior. What did you GET DONE with EASE earlier in your life? Try and figure out what factors motivated you back then and try and see if you can use a similar system to get you to take action NOW. For instance, when I was growing up I was a competitive junior golfer. I hated to lose. Couldn’t stand it. I would go out to the range and hit 500+ balls each day because I wanted to win the big tournaments. Without practicing I would have no chance. So, as much as I “hated” it at the time, I DID IT! What about you? I wish I could give you one STANDARD way to get YOU to take action but I can’t. I don’t know you. YOU know YOU. Figure this one out and you’ll be on your way.

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Please Welcome Our Newest TIADA Members Dealer Members 3G Motors Adriana Garcia-Vasquez 3719 Santa Maria Laredo, TX 78041 Auto Advance Sales Inc Michael Graves 1620 E State HWY 121 Business, Building C, Suite 100 Lewisville, TX 75056 Barrett Auto Gallery Carmen Hughey 421 N. 10th St. McAllen, TX 78501

Cal Collins Auto Group, LLC Amiee Godina 316 S. Col Rowe Blvd.

McAllen, TX 78501

G8 Auto Group- branch Houston Sutton 8312 Camp Bowie West Ft. Worth, TX 76116

Credit Choice Motors Barry Fontaine 4505 Texoma Pkwy.

Sherman, TX 75098

Prestige Lopez Auto Group, LLC Eric Lopez 408 W. Dicker Dr. Pharr, TX 78577

E-Z Auto Kyle Allen P.O. BOX 642 Timpson, TX 75975

Associate members Arrowhead Automotive Aftermarket Greg Bowman P.O. Box 1343 Helotes, TX 78023 MicroBilt Corporation Jacqlyn Speiser 1640 Airport Road, Suite 115 Kennesaw, GA 30144

G8 Auto Group Keith Wright P.O. Box 7249 Amarillo, TX 79114

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May 2015

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Experience one of our core values: 45

behind the wheel

Martin

Measuring our Goals

F

our years ago the TIADA Executive Committee developed a five-year strategic plan. The overarching goal was clear: ...to significantly increase our role in the legislation and rule-making that affects our industry... and ensure that the voice of the association grows in unity and influence.

Overarching association goals are usually lofty and hard to measure. Therefore we developed six supporting goals along with a strategic plan for each to help guide the association. If you develop strategic plans for your business you know it’s pretty rare to still be on pace four years after the initial plan was introduced. Too many factors change in today’s market to identify goals five years in the future but here we are, focused on a plan that has helped us realize growth for the association and more influence for the industry.

Just like in any business, goals and strategic plans need to be reasonable and measurable. One of our supporting goals was to increase the association’s membership 4% annually. Based on the performance of the association prior to the strategic plan some might argue the reasonableness of such aggressive growth. However our initial research showed the opportunity for growth was there and the best way to build political influence is through a large active membership base — so far so good. We set a baseline in 2012 with 1113 members and when the dust settled last year we boasted 1418 members!

One of our most successful recruitment programs during that time has been the TIADA Day at the Auction. Non-members can join the association and

by Jeff

tiada executive director

receive their Auction VIP Card on the spot, and members are always eligible for great giveaways and prizes.

Because of the generosity of the auctions, the giveaways increased and the value of being a member far surpassed the cost of membership. Last month we started hitting the auctions again, complete with a membersonly prize wheel with over $1000 worth of giveaways and, of course, discounts on buy/sell fees. When you see the TIADA booth at an auction stop by and spin the wheel. Every spin is a winner! While you are at the auction help us recruit a few new members by sharing your story with a non-member. The strength of your association comes from the size of the membership and peer recruitment is still the most effective method.

Plus there is a lot in it for you, recruit just 5 members

by June 30 and receive a free registration to the TIADA Conference, recruit 10 and you will also receive two nights hotel complementary, and recruit 20 new members and you will receive an all-expense paid trip to Las Vegas for you and a guest to attend the NIADA National Conference. Don’t think it can be done? Last year we sent three dealers to Vegas and six dealers attended the TIADA Conference for free!

I would love to be at the Capitol this year telling legislators we have over 1,500 members and with your help we can get there. When you see us at an auction this year, stop by and win a prize. While there, recruit a handful of new members and help us win in the ultimate goal — building influence for your association to protect and represent your industry.

Just like in any business, goals and strategic plans need to be reasonable and measurable.

46

T e x a s

D e a l e r

May 2015

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

Benefits NEW PROFIT CENTER REDUCES EXPENSES

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

COLLATERAL PROTECTED

See what our clients are saying:

INCREASED CASH IN DEAL

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

Michael Brill, President B&B Automotive Inc.

INCREASED CSI FINANCED WITH CONTRACT FORMS REVIEWED by OCCC

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

816.756.5430

*Substantial Discounts for TIADA Members

Texas Independent Automobile Dealers Association 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750

PRSRT STD

U.S. Postage

PA I D Jefferson City, MO

Permit No. 210

IT’S YOUR LOCAL

AUCTION

LANE. BUT IT’S THE WORLD’S LARGEST

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