Texas Dealer February 2017

In This Issue: – Michael W. Dunagan on the Reliability of a Certificate of Title – 10 Years of the TIADA VIP Auction Card – Preventing and Detecting Employee Theft

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ADESA is a proud business partner of the Texas Independent Automobile Dealers Association ( TIADA ).

2017 TIADA Board of Directors PRESIDENT Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd.

Dallas, TX 75229 Office: 214.352.9282 / Fax: 214.352.8227 Email: cicoauto@verizon.net PRESIDENT-ELECT Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net CHAIRMAN OF THE BOARD Phil Lathrop/VP Auto Sales Inc. 2921 S. Garland Avenue Garland, TX 75041 Office: 972.864.1300 Email: phillipl@vpautosales.com SECRETARY Trey Crouch/Trey Crouch’s Wheels On Credit, Inc. 636 E. Business 83 McAllen, TX 78501 Office: 956.972.0700 Email: trey@wheelsoncredit.com TREASURER 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, WEST TEXAS (REGION 1) Paul Scott/Fiesta Motors – Lubbock 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 Email: pscott@gofiestamotors.com VICE PRESIDENT, FORT WORTH (REGION 2) Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 Office: 817.703.7973 Email: markjones_1@att.net VICE PRESIDENT, DALLAS (REGION 3) Wayne Meagher/M D Auto Sales 2002 W. Main Street Grand Prairie, TX 75050 Office: 972.641.9598 Email: wayne@navchiefs.com VICE PRESIDENT, HOUSTON (REGION 4) Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net

Volume XVII

/ Issue 2

texasDealer

5 Officers’ Message

contents

by Robert Beck, TIADA Treasurer

9 Legal Corner: How Safe Is That Texas Title?

by Michael W. Dunagan

10 Upcoming Events 12 TIADA Scholarship Application 14 On The Cover: Trailblazers and Newcomers

by Mark Dubis

18 Legislative Bulletin 21 Top 10 Best Practices for Preventing and Detecting Employee Theft in Dealerships

by Tim Wood and John Buelow

25 TIADA Annual Conference and Expo 26 2016 VIP Auction Card Directory 28 Celebrating 10 Years of the VIP Auction Card

by Michael Spurlin

31 Regulation Matters: Tools for Searching a Vehicle’s History

by Amber Hackett Crosby

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

34 TIADA Member Application 37 Predictions for 2017

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

40 New Members 45 Local Chapters 46 Behind the Wheel

VICE PRESIDENT AT LARGE Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: jmsabillon@mitierraautosales.com VICE PRESIDENT AT LARGE Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 Office: 972.780.0001 Email: greg@autoliquidators.net 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

/ Fe b r u a r y 2 017

Compiled by TIADA Staff

by Jeff Martin

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

DID YOU KNOW... You can find the latest industry news and compliance updates in our blog? Whether it is updates from special guest contributors or a post written by one of knowledgeable experts on staff, TIADA keeps you up to date with the news you need to know. Simply go to www.txiada.org and scroll down to the “Latest News” section on the homepage.

The Editor of the Texas Dealer magazine is Michael Spurlin, Social and Communications Coordinator 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 Keys to a Successful Business Partnership

T

il’ death do you part. Those are words most of us are familiar with from most wedding ceremonies.

There are a few of us, however, who have reason to live by these words in the business world. I’m speaking of those of us who are organized as partnerships, or to put it more accurately — Small Business “S” Corporations or LLC’s with two or more shareholders. It’s not that I feel I have another spouse in my business partner, but realistically I’ve likely seen more of him during the 20 years we have been in business together than I’ve seen of my wife.

Especially when you consider that I’m wide awake during business hours as opposed to soundly sleeping for much of the time I am at home overnight!

My business partner, Nelsen Simonsen, and I started operations as a small business corporation in 1996 by serving new-car dealers in providing CRM as a service. We basically generated hundreds of thousands of thank-you letters and cards which our customers then sent to their customers before and after the sale. We generated several organizational tools used by the salespeople in following up with their customers and were responsible for training and retraining salespeople in practicing good follow-up. We were the precursor to Business Development Centers. At one time, we had over 20 new car dealers in San Antonio, Austin and surrounding communities utilizing our services.

by Robert

Beck

Stop N’Drive Motors (San Antonio) TIADA TREASURER

In 2005 we noticed the large international software companies who serviced new-car dealers began to add modules to their software which were designed to do what we were doing, albeit without anyone onsite to retrain and keep the salespeople onboard with working the follow-up. They were, however, a lot cheaper than us. So, we saw the writing on the wall — our days were numbered in this business and we decided to go a different direction. We decided to open a BHPH used car lot!

We operated both businesses during the next four years while the CRM business wound down and the BHPH business got off the ground and became profitable. We are very thankful we had the cash flow from the CRM business to fund our living expenses during the startup of our car lot. I’ve wondered if we would’ve made it otherwise. We have bootstrapped both businesses we have operated. Like most people born into this world, neither Nelsen nor I have had any kind of silver spoon to rely on. We started with nothing. Here is what will really blow you away: while Nelsen and I have had disagreements on various issues over these years, we have never had a disagreement which escalated above calmly discussing our options.

I believe there are many reasons why our partnership has worked well for us. This is the focus of this article:

I’m sure that for every partnership success story, there is likely another which was not successful. I can only say that I have found a lot of fulfillment in the partnership I’m involved in.

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how can we make partnerships work in the business world. Of course, I can only speak effectively from my own experience, so that’s what I’ll do.

Mutual Respect

Nelsen and I are both religious and we belong to the same church.

The values we live by were taught to us from our childhood in religious families. We were both raised by entrepreneurial parents who instilled principles of hard work, honesty and respect for others as a way of life. We don’t ask our business partners (each other) to do anything we would not be comfortable doing ourselves.

Personal Monetary Business Commitment

While there is in business always the fact that one must have their own “skin” in the game, this is not what I mean by Personal “Monetary” Business Commitment. Nelsen and I have always been committed to live within our means and spend money on the personal level only when we have the money unencumbered to do so. In other words, we live and die by what our business generates in cash profits. Neither of us go out and borrow big to live “high on the hog” and then subsequently put pressure on our business to fund our good times. We both understand there will be “fat” times and “lean” times in all businesses. We both also know if there are no profits to distribute, we must make our own private arrangements to fund our own personal lifestyle.

Monetary Business Commitment

The financial commitment on the personal level mentioned above also extends to our business. We don’t spend money we don’t have.

Other than our current real-estate loan and once having used a traditional floor-plan loan in the first few years of our BHPH business, we have not borrowed money to fund operations. After having established

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One of the biggest “killers” of partnerships are the standoffs created when 50/50 partners stake out uncompromising positions on items of business. Usually in this situation there can be a lot of pride involved on the part of one or both partners which result in deadly battles over even routine items of business.

excellent relationships with a local bank for our checking accounts and real-estate loan, we moved our traditional floor-plan loan away from the high-priced floor-plan company to the local bank on an interest only basis. We have steadily reduced the balance owed on our floor-plan loan to where most of the year we owe less than $30k on about $350k in inventory. Soon we will not even need a floorplan loan. We have also accumulated enough capital in our savings account to completely fund the volume of financing required so as to not miss any deals during tax season. Plus, we have accumulated a sufficient “rainy day” fund to pay for unexpected expenses that pop up from time to time. Having all of these items in place enables us to distribute profits as they come in and not have to worry about “cash calls” to us as owners to fund our business operations.

Complementing Skill Sets

We have complementing skills.

When we opened the CRM business, I had experience in operating a small business. My previous work had resulted in multiple business contacts with most of the car dealers in south central Texas. I would go out and sell dealers and managers on using our services, then I would customize the database solution for each dealer. Nelsen had many years of experience working for dealers, knew the business in and out, and had served in management positions for several dealers. His skills at operating the CRM business and maintaining a motivated and professional

staff contributed greatly to our 11year run in that business.

As we transitioned to the BHPH lot, Nelsen has functioned as the “car” man and I have been the regulatory and “business” man. Nelsen’s previous BHPH experience working for Bob Miller and Red McCombs has proved invaluable to us in operating our BHPH lot. He acquires inventory, oversees reconditioning and manages post-sale repairs. I keep all of our finances in order, manage our cash flow, obtain the financing we have utilized and handle IRS, OCCC and other governmental audits. We both work to close new deals, handle customer complaints and keep collections on track with our collections staff.

Family First

I honestly don’t know how solo operators make it in the BHPH (cont’d on pg. 8) T e x a s

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business and are still successful in their marriages and families. Both Nelsen and I have always been committed to seeing that the other takes whatever time is needed to be with his family at school functions, weddings, sicknesses, vacations and holidays etc. Each year we both take about a month off, accumulated at various times throughout the year. Whenever one of us needs to be away from the business, the other is always there to take care of things. Both of us have found comfort knowing we can spend the time necessary to be with our families as our parents have aged or died, or our kids have experienced important life events. We don’t have to worry about our business affairs during such times.

One Partner Having Ultimate Responsibility One of the biggest “killers” of partnerships are the standoffs created when 50/50 partners stake out uncompromising positions on items of business. Usually in this situation there can be a lot of pride involved on the part of one or both partners which result in deadly battles over even routine items of business. We have avoided this problem by having 51/49 ownership. Both of us have always known that the ultimate decision will be made by the 51 partner in the case of not being able to agree on any particular matter of business. We both respect each other enough that we have always been able

8

to arrive at a consensus without the 51 partner having to resort to lording it over the other partner. This provision has kept our focus on what is best for the car lot and away from what is perceived to be best for the individual. I feel this has greatly contributed to the long-lasting success of our partnership.

Professional Training

Both of us have always been committed to education in our line of work. From the day we opened, we have been members of TIADA. Each of us have attended TIADA-sponsored training and compliance seminars over the years, and we both attend the TIADA Annual Conference and Expo. I believe strongly this commitment on the part of both of us has strengthened our business and kept us away from the pitfalls of the regulatory world we live in.

I’m sure that for every partnership success story, there is likely another which was not successful. I can only say that I have found a lot of fulfillment in the partnership I’m involved in. I’m grateful to my partner Nelsen for the success we have shared together over the years. We have watched each other’s kids grow up and our business has made it possible.

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legal corner

How Safe Is That Texas Title?

by Michael

Dealer’s Question: Am I safe in

relying on a certificate of title issued by the state of Texas to ensure that I have good title to a vehicle I buy?

Answer: Unfortunately, no.

Reason: The Certificate of Title Act

was passed to prevent fraud in the purchase and sale of motor vehicles by making the certificate of title to a motor vehicle the primary and controlling evidence of ownership. The possession of a certificate of title, however, is not a guarantee by the state that the holder is the true owner of a vehicle. Ownership of a motor vehicle is governed by the common-law rules of property ownership. Thus, there is a difference between “title” meaning true ownership and “certificate of title” meaning a piece of paper that creates a presumption of true ownership.

W

hile the certificate provides evidence of ownership, and a presumption that the holder is the owner, there are many situations where the holder of a title certificate is not the true owner. For instance, a forged assignment usually does not transfer title, and someone taking possession of a vehicle from the forger may have the original title certificate which, on its face, appears to vest title in the holder. But, under the laws governing personal property, anyone taking from the forger gets no title and the true owner of the vehicle is the person from whom the forger attempted to steal the vehicle. By proving true ownership under the law of property, the owner may overcome the

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presumption of ownership that the certificate of title carries.

Another area where the certificate of title may not indicate true ownership involves the use of a certified copy original title (CCO). The Certificate of Title Act authorizes the Division of Vehicle Titles and Registration of the Texas Department of Motor Vehicles (VTR) to issue a certified copy (or duplicate title) when an application is submitted reflecting that the original has been lost or destroyed.

Since there is little if any effort to verify the validity of the application, it is easy to see how a thief can obtain what appears to be a valid, official, original, negotiable title certificate. Over the years, we’ve received a large number of calls from vehicle lien holders who have found that their collateral has been assigned to a new “owner” on a CCO that the true lien holder never authorized.

VTR has taken steps in recent years to prevent fraud via CCO, but we still get reports of CCO misuse.

The Title Act states that any subsequent purchasers on a CCO take only the title the applicant actually possessed.

This means that if the CCO is issued to a thief or forger, who is not the true owner or lien holder of the vehicle, all assignees on the CCO chain take title that is inferior to the true owner.

Unfortunately, once the vehicle is transferred on the fraudulently obtained CCO, the true owner or lien

Dunagan

W.

TIADA GENERAL COUNSEL

The issuance of a title certificate based on information submitted is not a statement of guarantee from the state that the certificate reflects true title to the vehicle. holder must bear the expense of suing the state and the other parties to have his lien validated by a court, and to have the other title certificate invalidated. Law enforcement agencies will usually not get involved in disputes over ownership between innocent parties. The “new” owner, if he or she is an innocent purchaser, is not too happy about losing the vehicle after paying the thief.

There is a common belief that issuance of a CCO “nullifies” the original title certificate. This misinformation probably evolves from the fact that the state’s title system makes the assumption that the original title certificate is in fact lost or destroyed, and that, if the CCO is used to make the first transfer after its issuance, it becomes the title of record that the system recognizes. This policy is an 9

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

March 2017 2 7 BHPH Compliance:

A Comprehensive Workshop Sheraton Houston Brookhollow Hotel 3000 North Loop West Frwy Houston, TX 77092, 713.688.0100

April 2017 3 Collect the Cash Not the Car

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2 5 Better BHPH Financials

Dallas, TX

May 2017 8 BHPH Compliance:

A Comprehensive Workshop Austin, TX

June 2017 2 0 Better BHPH Financials

Houston, TX

OTHER TIADA EVENTS April 2017 24 Board of Directors Meeting Austin, TX

July 2017 2 3 - 2 5 TIADA Annual

Conference & Expo San Antonio, TX 10

internal record-keeping procedure and does not in any way affect true ownership of a vehicle. In cases of conflict between two certificates, actual ownership will be determined under common law concepts of ownership. If fact, in almost all court cases, the holder of an original certificate has title that is superior to the holder of a CCO. The ultimate determination in case of a conflict between two or more certificates to the same vehicle will be made by a court of law, not the administrative policy of the title system.

The motor vehicle title system in Texas is known as a recording system.

That is, VTR records on its computer system information that comes from other parties, such as county tax assessors and individuals. The information, unless obviously wrong on its face, is accepted as presented without verification. The issuance of a title certificate based on information submitted is not a statement of guarantee from the state that the certificate reflects true title to the vehicle.

The San Antonio Court of Appeals, in a case involving a title dispute, summed up the position of the state with regard to the issuance of titles: The Highway Department (now Texas Motor Vehicle Department, Division of Vehicle Titles and Registration) is not and never claimed to be an insurer of the genuineness of the legal title of a vehicle...

The state does not guarantee or warrant that the one named on the title certificate is the true owner...

A prudent buyer must look to the whole context of a sale, not merely to the certificate... Simply because the State mandates registration does not mean the State compels buyers and sellers to rely exclusively on title certificates as proof of ownership (emphasis added).

The Court also pointed out that the state enjoys protection from liability under the doctrine of sovereign immunity. This means that the state

can’t be sued for damages it causes unless it agrees (through an act of the legislature).

We’ve also seen cases where the true owner of a vehicle used a CCO to commit fraud. A Houston dealer recently found out the hard way that a state-issued title certificate can’t always be relied upon. He purchased a vehicle from an individual who showed up at the dealer’s lot with a CCO title to the vehicle. The dealer purchased the vehicle and put it into his inventory.

After the vehicle was sold to a retail customer, the dealer submitted title transfer papers to the county. The title application was rejected by the county on the grounds that the original title certificate had been submitted two days earlier by a cash-for-title business to record its lien.

It appears that the vehicle seller, who had a free-and-clear original title, applied for and obtained a CCO. With two title certificates in hand, he first obtained a loan at a cash-for-title business, giving the original title as collateral. He then went to the dealer’s lot, making the sale on the CCO. While it would be impossible to discuss in this limited space all the various types of title conflicts, there are several general rules that may help avoid title problems: Everyone who sells a vehicle and

transfers title in Texas guarantees good title to the buyer. The problem is that the guarantee of the seller is only as good as the person (or business) giving the guarantee. If the seller is a thief, there usually are no assets to satisfy the buyer’s claim of breach of warranty of good title.

The certificate of title is only a

presumption of title. The best guarantee of good title is buying from someone who has the integrity and financial ability to stand behind the vehicles he sells. Major wholesale auto auctions add their guaranty of good title to the one given by sellers to auctions buyers.

Beware buying from individuals and dealers who appear on your lot with a vehicle they must sell T e x a s

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The ultimate determination in case of a conflict between two or more certificates to the same vehicle will be made by a court of law, not the administrative policy of the title system.

in a hurry. Even though the title certificate appears to be genuine, it could be stolen or may have been purchased with a hot check, or it may be just one of multiple title certificates.

If the price of a vehicle makes it a “steal,” it just might be.

Don’t let the prospect of a quick profit cloud your good business judgment.

Remember that you

guarantee good title on every vehicle you sell. Even if you are the victim of a thief who sold you the vehicle, you are required by law to make it good to your buyer. The defense of “I didn’t do anything wrong” does not apply here.

o not take a CCO unless you D

know the seller will stand behind the vehicle. He may be a victim, too, and feel he has no obligation to take the loss. For every CCO, there is at least one original out there somewhere. It may actually be lost or destroyed, or it may be in the hands of

a seller, floor-planner or lien holder (such as a cash-for-title business).

Be wary of the seller who wants

cash or a check on the spot, especially on Friday afternoon or Saturday. There may be a reason he wants his money so fast.

Use extreme caution is buying

from non-dealers. A licensed independent dealer is bonded and has at least $25,000 backing up the titles he assigns. A non-dealer, on the other hand, is not bonded and is not likely to have non-exempt assets from which a judgment can be collected.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for 40 years. He has written a number of books and hundreds of articles for trade journals and law reviews.

His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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February 2017

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ATTENTION STUDENTS!!!

$1,000 TIADA SCHOLARSHIP DEADLINE

May 5, 2017 {Applications and/or any required documents received after May 5, 2017 will NOT be accepted.} Criteria and Guidelines 1. Each applicant must be entering or currently enrolled in an accredited college or a trade school. Proof of enrollment must be included with this application.

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

3. Each applicant must complete the application form.

SCHOLARSHIP APPLICATION Date: Name:

DOB:

Address: City:

State:

Zip:

State:

Zip:

Email: Telephone Number: High School Last Attended: Address: City: Dates of Attendance: Date of Graduation: Other High Schools Attended (Names and Addresses):

4. High school senior applicants must be in the top 25% of class.

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

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

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

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

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

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

State:

Zip:

Sponsor Signature Should you have any questions, please contact TIADA at 512.244.6060.

Please return the completed application with all required documents to: TIADA Attention: Scholarship Applications 9951 Anderson Mill Rd., Suite 101 / Austin, TX / 78750

on the cover

by Mark Dubis

Contributing Writer

T

he auto retail industry is a powerful and dynamic force in our economy. As the consumer market spans millennials to baby boomers, the shopping process, needs and budgets all vary. Auto dealers are always looking for new ways to engage auto shopping prospects; and this means we are seeing creative and sometimes disruptive business models being introduced.

Advancements in technology, especially the phenomenal growth of mobile devices, push auto dealers to re-examine their online presence. Websites that are not mobilefriendly (often called responsive sites) are losing out to ones leveraging new apps and coding that make it simple for auto shopping prospects to browse inventory, compare prices, and complete credit applications online. This article takes a quick look at some Trailblazers offering a

14

twist on traditional business models and unique solutions for dealers.

We also look at some auto retailing Newcomers to the industry to see how they are approaching or recreating the auto retailing process.

Trailblazers Carvana

Carvana puts a new spin on the pre-owned auto buying process.

While the online shopping for a vehicle is the same as other sites, they offer much more detail on the vehicles to provide a greater level of comfort for the prospective buyers.

Site users create a “garage” to house their potential purchases and then can look at financing options. The delivery process is through their oversized “vending machine” which moves the selected vehicle to the delivery area, just as a candy bar is

dropped to the bin for a customer.

They position themselves as the “anti-car dealership” and work with customers in a more consultative environment. Shoppers have the ability to speak with a “Carvana Advocate” who is basically a Business Development Center staffer. The Advocate shares vehicle details, discusses finance options, and helps to expedite the sales and delivery process. Carvana indicates their process cuts out the middleman, the dealer, but in actuality they are a dealer. They own the vehicles, house them in their facility called a vending machine, and implement a discount pricing policy to be competitive in the market.

They provide the services of a traditional dealer but hype the online process and offer free delivery within 75 miles of their locations in Atlanta, Nashville and Houston. http://carvana.com T e x a s

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Carvana’s “car vending machine,” where customers pick up the car they purchased.

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Tricolor Auto

Dallas, Ft Worth, Houston, Austin & San Antonio, TX Starting out in 2007, Tricolor Autos has become the 2nd largest Buy Here Pay Here dealership in Texas with 16 locations. Daniel Chu, the CEO of the company, and his partners decided to focus on the Hispanic audience as their main target. With half of the Hispanic population in the United States residing in California and Texas they had a

clear path to serving this large market. Their marketing is all based on reaching this audience and to that end; they are the largest purchaser of Hispanic media in Texas.

“Knowing who our primary customers are means we have crafted a process and inventory that appeals to our customers,” Chu told Texas Dealer. “Inventory leans towards trucks and SUVs which are very popular in this segment.”

With this laser focus on the

customer, all team members are clear on the mission and the marketing supports the company philosophy of helping these customers.

Websites and branding are simple, mobile-friendly, direct and available in English and Spanish.

Additionally, Tricolor finances 100% of what they sell, and part of their brand promise is to help their customers achieve an improved financial situation. This means they work with “un-bankable” customers, but since they report to the credit bureau it helps improve credit files. And while down payments can range from $1,500 to $5,000, Tricolor has seen 1 out of 5 customers build their credit to the point where they qualify for “new car financing” with a traditional bank.

Tricolor programs and the building of a credit file have also helped customers obtain mortgages. While they are a BHPH operation, interest rates start as low as 9.9%.

“Recognizing the reputation issue in the auto industry, our messaging is one that says, ‘Trust us, our process and our people and you will not be disappointed,’” continued Chu. “We then commit to providing the best buying experience possible, and our team is wholly focused on doing just that.”

The strong commitment to the customer also means employees understand how valuable building relationships and providing a superior customer experience is to their personal success. This translates into the development of a stable work force and enables Tricolor to attract top tier talent to their dealership locations. https://www.tricolorauto.com/

Newcomers Byrd Autos

Crowley, TX (Ft. Worth Area) David Byrd and Rob Anderson got into the auto business after the company they worked with was acquired by a larger telecom 16

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corporation. David’s dad had a Buy Here Pay Here operation since 2011 and invited David and Rob to join the team and help expand the business. One of the first things they did was acquire inventory that was higher quality than the $2000 units they had been selling. Now they are spending anywhere from $6,000 to $20,000 to offer a broader selection to their clients. Byrd Autos will also locate vehicles for customers who want something specific.

They now have a staff of about 20 people and about two-thirds are in the back room operation for managing paperwork, billing, collections, etc. Additionally, their business has grown from selling 15 cars in their first month to 131 just last month.

“Initially, we took a down payment of $1,000 to $2,500 for our vehicles, but found out that the default rate had no correlation to the amount of the down payment,” David Byrd said. “We then adjusted our down payment requirements and in short order increased our monthly sales volume substantially.”

They also install geo-location devices in their vehicles, but not starter-interrupt devices.

Working in the Fort Worth area, one of the things they quickly discovered was the unusual camaraderie between competing auto dealers. At dealer meetings David and Rob were offered detailed advice on all the aspects of running a car lot like theirs, covering strategies, tactics, and vehicle buying tips. That advice was invaluable in building and growing their business.

While he did do some advertising on Craigslist and some other sources, the vast majority of their business comes from customer and family referrals. Vigorous requirements are in place to validate customer identity, income and residency. For security, vehicle locators are put in every vehicle. https://byrdautos.com/

SimpleCar

Temple, TX When Skip Carruth started SimpleCar he was looking to accomplish two simple goals: 1) provide a way for consumers to find and buy a vehicle they can afford in a risk-free environment, and 2) do it in a way that was in accord with his Christian faith and teachings.

Skip teamed up with friends Jeremy Thompson and Brian Hoppe to create a non-traditional dealership that provides inexpensive used cars in a no-haggle process and provides some basic “safety nets” to keep customers happy. All the vehicles sold include a new battery, tires,

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brakes, a three month/3,000 mile Warranty and a 172 point inspection. Additionally SimpleCar offers a “love it or leave it” seven day return policy, and yes there is fine print to the return policy.

Jeremy Thompson, one of the co-founders shared, “It’s great to hear positive comments from our customers about our process and how they really felt we were trusted advisors during the entire customer experience.”

This delivery policy allows a shopper to view the vehicle details online, arrange the purchase, and have it delivered to their door; all without setting foot in the dealership. Of course customers close to Temple are welcome and invited to come in and test drive vehicles of interest.

Currently, SimpleCar does not provide financing, so customers can do an outright purchase or arrange financing through their bank or credit union. Like most dealerships, they accept trade-ins and will purchase outright vehicles that are for sale.

Skip and his team also believe in paying it forward, so for every 50 cars sold they will give a car away to a deserving family, individual or non-profit group. They even invite folks to submit suggestions for eligible recipients; just send a note to charity@gosimplecars.com. https://gosimplecar.com/ The auto retailing segment offers lots of niches and opportunities for both dealers and vendors to add value to the buying, service and finance process. As the Texas Independent Auto Dealers Association comes across these businesses, we will highlight them in our various publications to our members. Also, if members come across something unique, please feel free to share it with our organization.

Mark Dubis is an automotive market strategist and writer for industry publications and blogs. He is also one of the founders of Carfolks.com, a program to highlight the performance of customer focused auto dealerships. He can be reached at (216) 712-6712.

17

legislative bulletin

by Jeff

Martin

The 85th Texas Legislative Session

T

he gavel in both Texas chambers hammered in the beginning of the 85th Texas Legislative Session last month ushering in 22 new faces on the house side and a handful of new Senators. All told, that is about a 15% turnover from the last session. The top political positions in Texas, including Governor, Lieutenant Governor, Attorney General and Comptroller all remain the same and last month Joe Straus was unanimously elected Speaker of the House by its members.

As the fresh new faces and longtime legislators begin settling in to their new roles of leading the state, the first order of business for both chambers is to appoint committee members and reward House members and Senators with chairmanships. Once all of the committee members have been appointed, you will be able to see the complete list by going to www.txiada.org and clicking on “Legislative Action Center� under the Advocacy tab.

As you know, TIADA will review each bill filed and try to identify those that might have unintended consequences and could negatively affect our members as well as support legislative changes that improve and enhance the independent automobile industry. Our goal is always to work with the author of any bill and other stakeholders and offer substitute language when appropriate.

Through our Legislative Committees, House of Delegates and Board meetings, the association has identified a few issues we will be working on this session, including: Eliminating named-driver only insurance policies

Addressing the steep fines associated with a dealer

filing their VIT late Allowing a dealer to increase his doc fee above $50

without notify the agency Eliminating the annual notification requirement

and fee for Related Finance Companies Those of you who have followed this process in the past know that the print version of the Legislative Bulletin tends to become outdated before the ink is even dry on the page. Please be aware that your best source for up-to-the-minute information is the Legislative Action Center found in the Advocacy section at www.txiada.org. 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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Dealer Academy Education Offerings for Winter/Spring 2017

Online Courses You can quickly create an account, register and purchase these courses at our eLearning site.

How to Become An Independent Auto Dealer An On-Demand eLearning course Independent dealers across the U.S. average gross profits of about $250,000 annually, according to NIADA. But how do you get started in the business? Just what do you need to know?

$149 TIADA Members Available Anytime

AT YOUR CONVENIENCE • ONLINE COURSE • ON DEMAND

An Introduction to Transferring Titles This online course is a one hour, deep dive into the title transfer process.

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

$49 TIADA Members Available Anytime

AT YOUR CONVENIENCE • ONLINE COURSE • ON DEMAND

TIADA

Register and/or Login at w w w . d e a l e r t r a i n i n g . t x i a d a . o r g .

Contact us at the TIADA office at 512.244.6060 independent automobile or email ustexas if you need assistance. dealers association

TIADA texas independent automobile dealers association

Texas Independent Automobile Dealers Association

America’s Auto Auction

4

LOCATIONS IN TEXAS!

America’s Auto Auction

BUY ONLINE AT www.americasautoauction.com Dallas

Dallas

TUESDAYS & THURSDAYS AT 1PM

219 N. Loop 12, Irving, Texas 75601 Phone: 972.445.1044 North Houston

MONDAYS AT 6:30PM

1440 FM 3083,Conroe, Texas 77301 Phone: 936.441.2882

2 HOUSTON LOCATIONS

Houston

THURSDAYS AT 1:30PM 1826 Almeda Genoa Rd, Houston, Texas 77047 Phone: 281.819.3600

Austin/San Antonio

TUESDAYS & THURSDAYS AT 1PM

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

America’s Auto Auction Austin, Dallas & Houston Feature Units From:

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

feature

Top 10 Best Practices for Preventing and Detecting Employee Theft in Dealerships

by Tim Wood and John Buelow CliftonLarsenAllen, LLP

W

hen a dealer becomes a victim of employee fraud, they will always look back and wonder, “How could this have happened and how could I have stopped it?”

Often times, the fraud will have been perpetrated by a long-time trusted employee. Our natural tendency, as we become comfortable and familiar with employees over time, is to think that we have a good person in place and everything is humming along nicely. You may even gradually increase a trusted employee’s responsibilities and tasks, inadvertently giving them tasks that make you more susceptible to theft.

An employee facing financial pressures of their own may see the opportunity to steal and may rationalize that their theft is inconsequential to the overall financial health of the dealership. Often, at the beginning of a cycle of employee theft, the perpetrator may intend to “pay back” what they take in due time. As time goes on, and their theft goes undetected, they may think that they can continue to take small amounts and never be caught.

Throughout our professional careers, we have had clients and known of non-client dealerships that have fallen victim to internal fraud. It occurs much more frequently than you would ever imagine. Though each instance can be different in facts and circumstance, the patterns of shortcomings in the dealership are often similar: The dealer was caught off guard by the theft.

The dealer was either part-time involved or absent

from the daily operations and trusted the perpetrator completely.

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The dealer either did not have adequate internal con trols in place, or the policies and procedures were not regularly followed.

The perpetrator was caught by chance, and not

through systematic fraud controls.

We are not suggesting that a dealer should suspect all of their employees or regard all trustworthy people as crooks, but a dealer does make themselves more vulnerable if they do not recognize that internal theft is an inherent risk in every business and they need to take measures to help prevent it from occurring.

Below are 10 suggestions, or best practices, that we have found to be useful in reducing your risk of employee theft, and unearthing employee fraud:

1

Segregation of all accounting duties — but with shared knowledge of them

It is unwise to give one individual control of all functions in the accounting and finance department. There should be clear and distinct separations of assignments for accounts payable and receivable, cash and bank reconciliations, receivable charge-offs, customer refunds, and titling, among others. These lines of separation are hurdles to fraud, encumbering a perpetrator’s route to theft. Once you have cordoned off these various internal functions, you should make sure

21

that all accounting personnel are cross-trained in each of them, including (and especially) those that fall in the controller’s realm. Hoarding knowledge can cloak a fraudster’s misdeeds.

2

Spot checks

Unfortunately, given the size of an operation, a complete segregation of duties as discussed above is not cost feasible. In this case, the owner may want to consider surprise spot checks over bank reconciliations, reviewing charge-offs, and reviewing check, wire and ACH disbursements. Another option is to involve your CPA with spot checks. You can engage your CPA to drop in with a day’s notice (or no notice at all) to inspect the books and records onsite. The inspection itself will have value, but you can also monitor the reactions of your employees to the announcement and their behavior during the inspection. Panic is a tell-tale sign of wrongdoing, while composure and confidence can be reassuring.

3

Monthly cash reconciliation to the penny, and limits to on-line banking

Train multiple people in your accounting department to perform regular cash reconciliations. It is a good idea to change up the individual who performs this task from time to time, if possible. Additionally, on-line banking

can make life easier for the dealership, but necessary controls should be in-place and reviewed regularly. For instance, no single employee should have the ability to initiate and authorize on-line transactions such as wire payments or ACH transactions. Within your banking application, you should be able to limit various user’s access and abilities. And, while you may think you have taken the necessary precautions, you would be surprised how often a simple review of these limits uncovers incompatible duties that increase your exposure to employee theft.

4

Mandatory controller vacation

5

Mail control

6

Annual vendor audit

7

Journal entry and general ledger reclassification reviews

When accounting personnel are cross-trained and can cover for the controller when he or she is away, you should require the controller’s absence on an annual basis. Mandatory vacation means several consecutive days out of the office so that other staff have to get their hands and eyes on the controller’s business — feel and see his or her world. This can serve to keep them honest or root out any fraud, should it be there.

As the dealer-owner, it is smart to personally open all invoices and payments that are sent to your business. These should never be delivered unopened directly to the individual who processes receipts or payments. If this duty is parceled out to another employee you consider trustworthy, you can test your instincts by mailing yourself $100 cash (with a disguised return address). If the cash does not end up on your desk, it is a safe bet a sticky-fingered employee is in your midst.

Savvy internal thieves often create sham vendors who bill for small amounts, effectively paying themselves significant figures over several years’ time. Every single year, pull a list of all your dealership’s vendors and corroborate each one’s corporate name, dba, physical address (post office box is insufficient), owner’s name, and phone number. Check for any duplicate vendors. You can also compare vendor addresses with your employee addresses. For any suspicious vendors, personally call the phone number and speak with a live person to verify the vendor’s authenticity.

Fraudsters are wily, agile people. An eagle-eyed review of the journal and general ledger can detect some of their financial acrobatics, like a controller cutting themselves a check but reclassifying it to another account. Or they could charge up a big employee receivable and then move it to customer receivables and write it off as aged.

Scour the books for these kinds of tricky maneuvers.

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8

Review of account edits

Obtain a monthly Installment Contracts Edit Listing from your DMS. Review who is making edits, and what type of edits they are making. Spot check some of the edits of principal balance, payment amounts, or due dates to ensure that appropriate support exists.

9

Review your compensation structure

It is natural to want to tie compensation into performance measures, but realize that by doing so, you may be encouraging fraudulent behavior. Are you compensating your underwriters with a bonus for deals booked?

Are you compensating your controller based on bottomline results? It is important to be cognizant that however you may be compensating your employees, there will be opportunities for gamesmanship on the part of the employee, and counter-measures should be considered and implemented to help prevent malfeasance.

10

Welcome and encourage whistleblowers

Employees who suspect or witness fraud often keep their suspicions or knowledge to themselves because they are timid, or fear retribution. You can assure their confidentiality — and show you are serious about preventing and prosecuting fraud — by establishing and

posting anonymous fraud-tip hotlines, encouraging an open-door policy directly to the owner, or setting up a confidential 800 number and post it in internal-only areas of your dealership.

These 10 practices can help you think like a perpetrator and put yourself into a more defensive frame of mind. When these controls are established, communicated, and adhered to, the opportunities for fraud can decline considerably. As a trusting business owner, it can be difficult to enforce what may seem to be such extreme measures, but the value of these controls cannot be overstated. When you understand and practice the power of prevention, you may not have to suffer losses, prosecute employees, and incur other reactive costs of fraud.

How we can help

CLA’s dealerships industry practitioners and consultants can evaluate your financial and operational protocols and help you minimize your vulnerability to fraud. We can also help you engage and strengthen your team with leading-edge hiring, training, and retention strategies.

Tim Wood and John Buelow are Dealership Professionals at CliftonLarsonAllen LLP. They can be reached at 314-925-4300.

GARAGE LIABILITY WAYMER & ASSOCIATES

TIADA texas independent automobile dealers association

(Black & White with gray gradient)

TIADA texas independent automobile dealers association

1-800-447-5152 February 2017

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Proud Member for over 20 years

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S AV E T H E DAT E

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S AV E T H E DAT E

The best dealers in Texas, the best education anywhere.

S AV E T H E D AT E

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•

• S AV E T H E D AT E

S AV E T H E DAT E

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S AV E T H E D AT E

THE

JULY 23–25

DAT E

2017

S AV E T H E D AT E

S AV E

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S AV E T H E D AT E

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HYATT REGENCY HILL COUNTRY RESORT & SPA

S AV E T H E D AT E

JULY 23–25, 2017

S AV E T H E DAT E

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2017 TIADA VIP Auction Card Directory

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

im ManheHousto n ew South

AA Longvi

Alliance

AA Waco

Metro AA Dallas

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

Housto

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

Greate

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

ABILENE

ce AA

at Insuran

IAA*

Manheim Dallas

6657 US Highway 80 West, Abilene, TX 79605 325.698.4391, Fax 325.691.0263 General Manager: 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.

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

C.M. Company Auctions, Inc.

DALLAS / FT.WORTH METROPLEX

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

ADESA Dallas

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

Alliance Auto Auction Abilene www.allianceautoauction.com

www.cmauctions.com

AUSTIN ADESA Austin

www.adesa.com

2108 Ferguson Ln., Austin, TX 78754 512.873.4000, Fax 512.873.4022 General Manager: 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.

IAA*

www.iaai.com

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

Metro Austin Auto Auction www.metroautoauction.com

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

CORPUS CHRISTI Corpus Christi Auto Auction

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

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

* VIP card accepted for sell fees only 26

sell fee only

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

www.iaai.com

www.adesa.com

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

Alliance Auto Auction Dallas www.allianceautoauction.com

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

America Can! Cars for Kids www.carsforkids.org

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

America’s AA Dallas

www.americasautoauction.com

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

IAA*

www.iaai.com

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

IAA*

www.manheim.com

Manheim Dallas Fort Worth www.manheim.com

Metro Dallas Auto Auction New! www.metroaa.com

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

Rockwall Auto Auction

www.rockwallautoauction.com

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

Texas Lone Star Auto Auction www.tlsaa.com

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

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

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

IAA*

www.iaai.com

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

www.iaai.com

Manheim El Paso

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

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

www.manheim.com

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IAA*

MIDLAND / ODESSA

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

IAA*

www.iaai.com

Manheim Houston www.manheim.com

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

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

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

IAA*

www.iaai.com

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

HOUSTON

Manheim South Houston New! www.manheim.com

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

Manheim Texas Hobby www.manheim.com

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

ADESA Houston

LONGVIEW

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

Alliance Auto Auction Longview

www.adesa.com

America’s AA Houston

www.americasautoauction.com

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

America’s AA North Houston www.americasautoauction.com

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

Houston Auto Auction

www.houstonautoauction.com

www.allianceautoauction.com

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

IAA*

www.iaai.com

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

www.iaai.com

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

SAN ANTONIO ADESA San Antonio www.adesa.com

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

IAA*

www.iaai.com

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

Manheim San Antonio www.manheim.com

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

San Antonio Auto Auction

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

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

TYLER Greater Tyler Auto Auction www.greatertyleraa.com

LUBBOCK

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

IAA*

WACO

www.iaai.com

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

Alliance Auto Auction Waco www.allianceautoauction.com

LUFKIN

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

IAA*

Lufkin Dealers Auto Auction New!

Heart of Texas Auto Auction

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

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

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

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

www.lufkindealers.com

www.iaai.com

February 2017

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www.heartoftexasautoauction.com

27

feature Celebrating 10 years of the VIP Auction Card

by Michael Spurlin Texas Dealer Editor

Each block good for one free buy OR sell fee (up to $200) at the auction listed. Valid photo ID required.

Summer Conference Horseshoe Bay, TX

JULY 27-29, 2008 State Convention Fort Worth, TX

NOVEMBER 8-10, 2007

CALENDAR

VIP

AUCTION MEMBER

Texas Independent Automobile Dealers Associa tion www.txiada.com 800.442-5944

EXPIRES

The 2007 VIP Auction Card 28

L

ast month TIADA mailed out the 2017 VIP Auction Card to all the dealers that renewed their membership. The card offers dealers a free buy or sell fee up to $200 at every auction on the card, 45 of them all across Texas. That equates to a possible $9,000 in buy/sell fees making the VIP Auction Card one of the biggest benefits of membership.

The 2017 VIP Auction Card is the 11th that TIADA has produced. That means TIADA has been passing this amazing benefit on to members for 10 full years. Over that time, the program has grown from just 21 auctions in the first year to the current 45 locations.

Some of those original auctions, including Manheim and Insurance Auto Auctions, are still a part of the program a decade later.

The TIADA Auction Liaison Committee gathered input from various auctions, dealers, industry experts and TIADA

The 2017 VIP Auction Card

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

Alliance AA Waco Dallas

San Corpus Antonio AA Christi AA America America’s Can! Cars AA Austin/ for Kids Arlington San antonio Big America’s Valley AA Dallas AA Donna CM America’s Company AA Auctions Houston El Paso America’s Independent AA North AA Houston

“So much has changed over the last ten years.

There are so many more partnerships now which is more beneficial for every dealer and vendor in the association.”

Houston AA Heart of Texas AA Waco Texas Lone Star AA Metro AA Carrollton Austin Lufkin Greater Tyler Dealers AA AA

Rockwall Auto Auction Insurance Insurance Auto Auctions Auto Auctions Austin* Corpus Christi* Insurance Insurance Auto Auctions Auto Auctions Dallas* DFW* Insurance Insurance Auto Auctions Auto Auctions El Paso* Houston* Insurance Insurance Auto Auctions Auto Auctions Houston North* Longview* Insurance Insurance Auto Auctions Auto Auctions Lubbock* McAllen* Insurance Insurance Auto Auctions Auto Auctions Permian Basin* San Antonio* *valid for sell fee only at Insurance AA locations

TC Lozano, Director of Sales for Insurance Auto Auctions T e x a s

D e a l e r

February 2017

staff to develop the program. The result of their work was an immediate success, offering benefits to both TIADA dealer members as well as associate auction members.

While the card offered dealers a chance to save significant amounts of money, the benefits to the auctions were equally as important. Wayne Carey, then working for Manheim, recalled working with TIADA to help create the card.

“I was on a couple of committees,” Carey told Texas Dealer. “We were always talking about ways to attract new members. I thought this might be a good opportunity to do that while promoting the auctions.”

Carey reached out to the general managers of the Manheim auctions to see if they were willing to participate. Once he had their support, he spoke with other auctions.

Despite the incredible savings the VIP card offered dealers, Carey said he remembered some members were skeptical at first.

“Initially some people greeted the card with suspicion because they just couldn’t believe they could save so much. They wanted to know what the catch was.

Once they understood that the card basically covers the cost of joining TIADA, they were a lot more excited about them.”

TC Lozano, Director of Sales for Insurance Auto Auctions, said he sees enormous benefits from participating in the program since its inception.

“So much has changed over the last ten years,” explained Lozano. “There are so many more partnerships now which is more beneficial for every dealer and vendor in the association.”

According to Lozano, the card continues to allow his organization to build new relationships and strengthen their existing ones with Texas dealers.

“We really appreciate the friendships that we have built over the years by TIADA welcoming us into the family,” Lozano said.

For over ten years the TIADA VIP Auction Card helped nurture these relationships while providing a concrete example of the benefits of membership.

February 2017

T e x a s

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During a visit to an auction last fall, TIADA staff snapped this picture of Julio Cruz from Turcio’s Auto Sales in Arlington with his VIP Auction Card. Cruz had already used the card 10 times for $2,000 in savings!

29

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

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

WE ALSO OFFER THESE COVERAGES:

8240 Mid Cities Blvd N. Richland Hills, TX 76180 800-687-3236 / Fax (817) 581-1921 EPI-TIADAhalf_Feb2017.pdf

1

1/6/17

F&I • Vehicle Service Contracts • GAP Insurance • Tire & Wheel Vehicle Protection Products • Property • Wreckers Car Haulers • Cargo • Dealer Bonds • Personal Lines 10:442 AM

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T e x a s

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regulation matters Tools for Searching a Vehicle’s History

February 2017

T e x a s

D e a l e r

by Amber

Hackett Crosby

TIADA DIRECTOR OF DEALER COMPLIANCE AND EDUCATION

sells subscriptions directly to dealers, and offers the MyCarfax report to consumers.

AutoCheck charges slightly lower prices for its reports and issues each vehicle a numerical score that compares a vehicle to others that were built that year.

AutoCheck also has a division that provides vehicle history reports specifically for auctions. It is called (you guessed it) AutoCheck Auctions. The service uses VINs to sort out which individual vehicles have open recalls.

VinSmart, VinInspect and MotoSnoop are a few other services that deserve a mention. While not as robust as the reports offered by Carfax and AutoCheck, these reports are an affordable option for dealers and consumers alike.

KEN WOLTER / SHUTTERSTOCK, INC.

T

he past two months have been a whirlwind of activity as I stepped into the role so competently performed by Danny Langfield, my predecessor here at TIADA. It has been a great pleasure speaking with many of you about compliance questions. Likewise, I enjoy my conversations with our partners within the TxDMV, OCCC, Office of the Comptroller and county tax assessor-collectors’ offices. All of these conversations have revealed some trends. Identifying a vehicle’s history is at the top of the list.

According to Edmund’s, a vehicle history report is the DNA of a used car. Several tools that identify a vehicle’s title history, accident history, and even police reports that mention its VIN are available to both consumers and dealers. Let’s take a look at some of the more prominent services out there.

The National Motor Vehicle Title Information System, or NMVTIS, is managed by the U.S. Department of Justice. NMVTIS and its VIN Look-up Tool provide an instant report that covers five safety indicators: current state of title and last title date, odometer reading, salvage history, brand history, and total loss history.

In Texas, dealers and consumers can complete a Title Check on the Texas Department of Motor Vehicles (TxDMV) website, www.TxDMV.gov/titlecheck. Clint Thompson, Chief of Title Services for TxDMV, says that his agency relies on its own records and those of the NMVTIS for title history purposes. According to Thompson, odometers comprise the bulk of issues that arise within the title history space.

“Dealers and consumers submit applications attempting to correct an odometer reading previously reported incorrectly,” Thompson said. “We use the transaction history in our database to substantiate the odometer reading for the vehicle at the time a correction is requested.”

He goes on to explain that TxDMV can only correct their records with a Statement of Fact from the seller and the buyer at the time an error is discovered. Of course, this is often difficult since “the incorrect odometer may have been reported multiple title transfers ago,” Thompson notes.

Carfax offers vehicle history reports that provide comprehensive information about a vehicle, including service department records when available. Carfax

CARFAX decal on used automobile for sale. Carfax, Inc. is a service that supplies vehicle history reports.

31

The National Highway Transportation Safety Administration (NHTSA) operates SaferCar.gov.

That website allows owners to check a VIN for safety recalls, and whether a particular recalled vehicle has been repaired.

VINCheck, sponsored by the National Insurance Crime Bureau, allows a person to search a stolen vehicle database. It also checks for vehicles reported as salvage by an insurance carrier.

What the Experts Say

Clint Thompson at TxDMV says that the most important areas of any vehicle’s record and history, regardless of its source, are related to brands, odometers, and any legal restraints which may be on the record. Existing brands will be carried forward to subsequent titles, so it is important to take note of those. A legal restraint means there is some type of hold on the record, so the inquirer should always contact their TxDMV Regional Service Center to find out the specifics of the hold.

Key Takeaways

Expect your customers to request a vehicle history report. Do not be surprised if a customer comes in with their own report. Make sure that you know what the

Expect your customers to request a vehicle history report. Do not be surprised if a customer comes in with their own report. Make sure that you know what the reports say about the history of the vehicles on your lot. reports say about the history of the vehicles on your lot.

Finally, know that you are able to dispute the contents of a vehicle history report. You are the expert on your inventory. That expertise is worth just as much, if not more, than any report a customer may have.

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

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

www.teiinsurance.com 32

T e x a s

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February 2017

JUST GET ONE Take the Recruitment Challenge in 2017!

Actually, have 4 cups.

d en

ent

auto

mo

le

p

Just Ge t One

bi dealers

Win big in Vegas!

as ind e

when a member you refer joins the association.

Have a cup of coffee on us!

tex

Earn a lapel pin

Recruit a new member and we will send you a $10 gift card — and we’ll do that for the first 4 members you recruit.

Receive top-notch education... for FREE!

a s TIADA n s o c i at i o

Relax with the family and turn work into pleasure. (and growing the association is a WIN for all of us!)

Recruit 5 new members

by June 30th and you will receive one free registration to the 2017 TIADA Conference & Expo.

en

de

nt autom

o bi

tex

dealers

as ind

le

ep

Recruit 20 new members and you will receive an all-expense trip to Las Vegas for you and a guest to attend the NIADA national conference.

a s TIADA n s o c i at i o

Recruit 10 new members by June 30th and you will also receive your hotel room for free (up to two nights) at the Hyatt Regency Hill Country Resort & Spa during conference.

Contact the TIADA office for details.

www.txiada.org

TIADA Membership Application

2017

Business Name: ____________________________________________ Select one:

Dealer Member

TIADA texas independent automobile dealers association

TIADA texas independent automobile dealers association

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________ City: _________________________________________

2017 TIADA Membership Dues:

State: _______

Zip: __________________ County: _____________________________

$425 (Dues include NIADA membership)

E-mail address: _____________________________________________ Phone: _______________________ Fax: ________________________ 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 - Prorated monthly based on current dues.

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.

34

T e x a s

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February 2017

e-Tag Supplies —

In Stock for Immediate Shipment!

MOTO

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ETAIL

INSTAL

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SALES

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

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Dealer Academy 2017 BHPH Compliance: A Comprehensive Workshop Presented by Michael W. Dunagan, TIADA General Counsel and author of the standard-setting books, “Dealer Financing of Used Car Sales” and “Texas Automobile Repossession: A Lien Holder’s Legal Guide.”

This revitalized seminar is the final answer in BHPH compliance. Mike speaks dealer, and with 40 years of experience representing hundreds of BHPH dealers, he knows your business inside and out.

Attend this workshop and learn all about…

9:00am - 4:00pm $199 TIADA Members, $149 Add’l Members $399 Non-members

Sponsored by: CP Insurance Associates www.cpiai.com

• • • • • • • • • • • • • • • • •

How to prepare for (and survive) an OCCC audit Your right to insurance proceeds Using the courts to get your car back Procedures to stay off the CFPB’s radar Techniques to avoid consumer lawsuits Properly handling financing on repairs Real-life DTPA court cases Body shops, mechanics, towing and storage issues Specific lien-protection steps Federal regulations affecting BHPH dealers Alternatives to traditional insurance Most common OCCC customer complaints How to respond to an attorney demand letter Repossessions: from A to Z Your rights in a bankruptcy Most common advertising violations Dealer issues in Comptroller audits

Monday, March 27, 2017 Houston, Texas www.passtimegps.com

http://www.funexpress.com/

Texas Independent Automobile Dealers Association

Sheraton Houston Brookhollow Hotel 3000 N. Loop W. Frwy. | Houston, TX 77092 713.688.0100 Register online at www.txiada.org or by phone at 512.244.6060.

feature Predictions for 2017 Compiled by TIADA Staff

A

new year is finally here and with it, new challenges and opportunities for independent car dealers. What will this year be like for dealers?

Will it be successful? Will small businesses struggle?

To determine what 2017 will bring, we reached out to several people including attorney Jordan Mayfield, independent auto dealer Robert Milligan and Texas State Representatives Drew Springer and Eddie Lucio III. They shared their expert opinions on issues such as the Texas economy in the new year and how Trump’s presidency will affect the industry.

JORDAN MAYFIELD

Attorney – Naman, Howell, Smith & Lee

How will the Texas economy perform in 2017?

I think that we will continue to see slow and steady growth as jobs grow in the healthcare and educational sectors, coupled with a small increase in the oil and gas sector.

What will be the biggest challenge independent dealers will face in the next 12 months? From a legal standpoint, I see the biggest

challenge facing independent dealers is attempting to navigate the growing maze of rules and regulations. At this pace, I think that we may run out of letters for the laws that dealerships need to comply with (GLB, TILA, OFAC, ADA, ECOA, FCRA, etc.). Currently I am seeing an increase in wage and hour complaints, employment discrimination claims, and consumer complaints.

Dealerships should start the year off right and review their current processes with their legal counsel to work to ensure compliance.

The number of licensed dealers in Texas has been on the rise. Will that continue in 2017?

Yes, with a growing economy and the ability of customers to obtain financing, I think that individuals will want to become an auto dealer in Texas. This will give an opportunity for the established dealerships to show customers the value of dealing with an experience company that has processes and procedures in place that make the buying experience great. And, it gives the new startups the opportunity to show customers that they want their business and are willing to earn it.

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How will President Trump have a positive or negative impact on the independent auto industry [or small business owners]? It is going

to be HUGE! I do not know what that means but am hopeful that consumer confidence will continue to rise and dealers across Texas will reap the benefits of a growing economy.

Will consumers have more or less buying confidence this year? Based upon the current trend it appears that customer confidence is on the rise and I hope will continue to increase.

ROBERT MILLIGAN

PBR Auto Sales – Buy Here Pay Here Dealer

How will the Texas economy perform in 2017?

I think the Texas Economy is going to perform like it did in 2016, when clearly there was an uptick in car sales. Some cities might see a slowdown, but those would be cities related to the oil and gas industry.

However, I think Texas as an overall economy is going to perform well in 2017.

What will be the biggest challenge independent dealers will face in the next 12 months? The same challenge that we have 37

been facing: There are a lot of regulatory agencies and trying to keep up with it is a continued drain on resources.

I also believe that with all the delinquencies in subprime you are going to see a lot of the big lenders pulling out or at least being cautious. This will make it much more difficult to get the subprime deals done.

Therefore, there will be an uptick in Buy Here Pay Here deals. But on the Buy Here Pay Here side, as all lending institutions see delinquencies increase, they too are going to start getting worried when the larger credit lines fall out.

The number of licensed dealers in Texas has been on the rise. Will that continue in 2017?

No, absolutely not. As the subprime funding goes away, so will the dealers that depend on that funding.

How will President Trump have a positive or negative impact on the independent auto industry [or small business owners]? I don’t

know that Trump can affect anything in the DoddFrank Act in the next year that would affect us. I think we are still going to have the regulation. If there is anything positive about it, I do believe Trump is going to try and reduce the tax rates for people in general and that could help the economy.

Will consumers have more or less buying confidence this year? I don’t know that they will

have any more or less confidence, I think it stays the same. I think their confidence is already strong as indicated by the car sales. The industry is setting all kinds of records for car sales. If anything, I think it will be better because I think we will see an income tax reduction.

What is the most positive change we will see in our industry in 2017? As a Buy Here Pay

Here dealer, as all subprime tightens and it’s more difficult to push the deals off, I believe we get our A and B paper back. I think that our portfolios, if they are rated A, B, C and D and we have had to survive in C and D mode with subprime, you are going to start seeing B and potentially A paper coming back into your portfolios. We have already seen some of that in our Dallas market.

STATE REPRESENTATIVE DREW SPRINGER District 68 (R)

How will the Texas economy perform in 2017? I think it is going to be on the uptick. Oil and

gas has stabilized and is trending up and I think we will continue to see that. We won’t get back to the days of old, but steadiness and trending upwards is positive for that industry. It is a good chunk of the economy, but we have a much more diverse economy so we are 38

not solely reliant on oil and gas. I think other sectors of the economy are doing well. We continue to attract more people from other states. More people means more consumers buying things.

What will be the biggest challenge independent dealers will face in the next 12 months? I hope the biggest challenge they face

is how fast they can respond to less regulations. One of the things we are going to look at here in the 85th Legislature is making sure we don’t have any more of these overreaching local governments that are stepping beyond what a city should be doing. I know after visiting the dealers that some don’t have any problems and some have massive problems like in Pasadena.

We understand we want cities to be unique but they can’t stifle the relationship between consumers and the business.

How will President Trump have a positive or negative impact on the independent auto industry [or small business owners]? From a

dealer’s standpoint, I think it is going to be positive.

Everything he has said has been about less regulation and rebuilding the blue-collar workforce and bringing jobs back. That has got to be good for somebody who is looking for an affordable vehicle and being able to make a payment for that vehicle. I think that is a positive.

Will consumers have more or less buying confidence this year? I think overall it is trend-

ing upward. I don’t think it is going to be gangbusters just simply because the oil and gas industry isn’t going gangbusters. Some areas with a lot of oil and gas business may struggle, but I think the rest of the state will be going strongly. Additionally, rural areas with declining populations may struggle, but that’s a small percentage of the overall economy in Texas.

What will be the most positive change you will see in 2017? I think the positive side of 2017 is that we are going to put the power back in the individual. They are going to have opportunities to do whatever they want. We are going to get government out of their way.

STATE REPRESENTATIVE EDDIE LUCIO III District 38 (D)

How will the Texas economy perform in 2017? Well everyone is concerned with the oil and

gas industry and how that will affect the economy.

But our economy is so much more diverse compared to the 1980’s where a downturn in that sector was so devastating. Because of that diversity I think we can withstand this lull and have a profitable, growing economy. The fact that Texas has 1000 people moving T e x a s

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here a day helps. I believe Texas stands a chance to become one of the best economies in the world.

What will be the biggest challenge independent dealers will face in the next 12 months? I think infrastructure is going to be a challenge for businesses. We are growing faster than we previously planned for in past decades. For independent dealers that have businesses that require adequate infrastructure to get inventory delivered to them, that’s going to be a big issue. How we afford infrastructure in a state that’s growing faster than we can keep up with, especially with the tremendous cost of infrastructure, that’s going to be a big issue.

Secondly, is Texas going to continue to have a tax structure that favors small businesses? I think it is, but we need to be mindful of that. We need to be mindful of regulations and bills that we are passing each legislative session and how that impacts small businesses.

How will President Trump have a positive or negative impact on the independent auto industry [or small business owners]? I am a Democrat, and I supported the Democrat, but I am praying and rooting for Trump to have a successful presidency. He does have a successful background in business, and hopefully he can translate that into good, solid government. He is taking a strong position on keeping manufacturing jobs in

America. That’s great for the U.S. economy. I think we have to have a delicate balance with keeping the cost of the product down. We need to maybe have partnerships like we have had on the border for years. We can have dual plants where we can take the brainpower of designers and engineers and keep them on the US side but have some of that component manufacturing that is tedious on the Mexican side and still grow our economy on the US side.

Will consumers have more or less buying confidence this year? In a transition, whether it is to

Democrats or Republicans, I am personally more conservative. There may be some hesitancy in terms of purchases made that could affect independent auto dealers. One of the concerns that we have is that Trump is very quick to make statements without thinking of the consequences.

That could in turn impact people’s savings or retirements.

When they see at the end of the month that their portfolios are impacted, they might be less likely to spend the money that they do have.

What will be the most positive change you will see in 2017? I am most excited about technical

education. I think this is going to be a great session for workforce training and education. We are going to create confidence in the business world that you can open up in Texas and have the work force to be successful.

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DEALER MEMBERS Alan’s Auto Sales Ashley Emmert 2030 S Austin Ave Georgetown, TX 78626 Auto Elite DFW Tobias Ima 2355 Lebanon Rd, #8107 Frisco, TX 75034 Barron’s Auto Enterprise, Inc. Robin Essex 219 S. Waco St. Hillsboro, TX 76645 Barron’s Auto Enterprise, Inc. – Cleburne Robin Essex 1004 E. Henderson Cleburne, TX 76031 Barron’s Auto Enterprise, Inc. – Gatesville Robin Essex 1601 E. Main Gaitsville, TX 76528

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Ignorance is no defense.

Know the law.

Repo and financing issues are among the most common violations found by the OCCC. If you own a previous edition of these books from 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.

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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.

February 2017

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TIADA texas independent automobile dealers association

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resource guide The TIADA Website: www.txiada.org

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

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov

Office of Consumer Credit Commissioner 800.538.1579 www.occc.state.tx.us

Texas Comptroller

800.252.1382 www.window.state.tx.us

NIADA

800.682.3837 www.niada.com

REPOSSESSIONS

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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Local Chapters VICTORIA Butch Hartman Hartman’s Auto Sales 361.575.1009 hartmanautosales@gmail.com Meeting – 1st Monday (Monthly) FORT WORTH Mark Jones MCMC 817.703.7973 mjones@mcmcauto.com Meeting – 4th Thursday of Jan–May and Sep–Oct DALLAS COUNTY Eddie Hale Neighborhood Autos 940-539-2272 ehale@neighborhoodautos.com Meetings as needed/TBD HOUSTON Rick Maroney Maroney Auto Sales 713.691.3800 rmaroney@usa.net Meeting – 2nd Tuesday (Monthly) SAN ANTONIO Robert Beck Stop N’ Drive Motors 210.432.1101 stopdrive@texas.net Meetings quarterly (dates announced at www.txiada.org) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) 45

behind the wheel

Martin

2016, Before You Go…

E

ach year I receive numerous compliments about the work the association is doing on behalf of our members. Most come in the form of a verbal attaboy over the phone. We have very high expectations so I follow with the standard response, “Thank you very much and please let me know if we are ever not meeting your expectations.” Of course I get some of those too when we do drop the ball.

But, every so often some of our members feel compelled to send me an email or write a note on a renewal letter. Before we put 2016 to bed I wanted to toast our team and share a few comments I received last year.

“Thanks for all the association does for the Dealers of Texas, we are proud to be part of it.”

— Larry Dziuk, Superior Auto Sales, Beeville “I want to thank the staff at TIADA for helping me with two fraud cases our dealership was a victim of recently. They put me in touch with the proper person at DMV to put a legal hold on the titles and had a representative from DMV call me to discuss the matters. Your guys explained everything.

TIADA referred us to a reputable and experienced attorney in San Antonio who is helping us litigate in these two cases. The attorney put us in touch with the proper authorities to press criminal charges.

Because of TIADA I get my collateral (and titles) back and we set a precedence that crooks cannot just steal vehicles from us and get away with it!

Thanks again!”

by Jeff

TIADA EXECUTIVE DIRECTOR

“We wouldn’t be around today if I hadn’t found TIADA back in 2007. We inherited the business and it was either sink or swim. They got us through. Thanks for your help today. I meant it when I said you all do an outstanding job for the members in general. I hope you have a great rest of the week.”

— Kathy L. Roberts, Roberts Motor Co, Ennis “We really appreciate all the help you and your staff have given to us. Valerie was really nice and helpful yesterday signing us up. Please pass this onto everyone in your office. Sounds like a great place to work. Looking forward in working with TIADA in the years to come. Thanks.”

— Denny Parlin, Southwestern Regional Insurance Center, Houston “I have retired after 35 years, thank you for all you have done to make the job of used car dealers easier.”

— Rick Hardy, Rick Hardy Auto Sales, Palestine Larry, we are just as proud to represent you. Erica, glad we could help. Kathy, thanks for sharing and thanks for letting us be a part of your success. Denny, it is a pretty cool place to work. Rick, congratulations!

Enjoy retirement. Thanks to all our members. You make this association great. Here is to 2017!

— E rica Soefje, Westside Used Cars, Inc., San Antonio

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February 2017

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