Texas Dealer September 2016

TIADA Welcomes 2017 President

Kathrine Tolsch

Also In This Issue: – TIADA Annual Conference & Expo Wrap-Up – Make Your Voice Heard at the Capitol – Underwriting for BHPH – Michael Dunagan on Prior Damage and Selling “As Is”

30

DAYS

FOR

$30

Visit ADESA.com/off-lease to find inventory.

30-day guarantee on select inventory offered in the open sale on DealerBlock.

Applies to eligible off-lease and rental vehicles.

Pay just $30 for 30-day guarantee  Need to return the vehicle?

We’ll pick it up from your lot!  Transportation refund too!

If you use CarsArrive Network for transport for an ADESA Assurance vehicle, we’ll refund your transportation cost, if the vehicle is returned.

© 2016 ADESA, INC.

ADESA Assurance buyer protection program and CarsArrive Network must both be selected at time of purchase to qualify for transportation refund. Vehicle must be returned in same condition as purchased within 30 days from purchase date. ADESA Assurance refund covers vehicle sale price and buy fee; transportation costs are only included if CarsArrive Network is used for transportation. See terms and conditions for full details. ADESA Assurance program may be cancelled by ADESA at any time and without notice.

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 VICE PRESIDENT, CENTRAL TEXAS (REGION 5) Robert Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 Office: 512.280.5333 Email: bob@texasautocenter.net VICE PRESIDENT, SOUTH TEXAS (REGION 6) Dan Keetch/Keetch Motors 1010 S. Staples Corpus Christi, TX 78404 Office: 361.882.3541 Email: dankeetch51@yahoo.com VICE PRESIDENT AT LARGE Juan Sabillon/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: brentfordct@yahoo.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

Volume XVI

/ Issue 9

/ S e p t e m b e r 2 016

texasDealer contents

4 Officers’ Message

by Robert Beck, TIADA Treasurer

11 Legal Corner: Frame/Unibody Damage, Selling “As Is,” and the Texas Deceptive Trade Practices Act

by Michael W. Dunagan

14 On The Cover: TIADA Welcomes 2017 President Kathrine Tolsch compiled by Texas Dealer staff

16 Upcoming Events 20 2016 VIP Auction Card Directory 23 Another Successful Conference Comes to a Close

by Michael Spurlin

29 2016 TIADA Awards Wrap Up

by Michael Spurlin

33 Regulation Matters: A Definite, Unequivocal “Maybe”

by Danny Langfield

37 U nderwriting for BHPH Success and Avoiding Pitfalls

by David Algood

41 New Members 42 TIADA Member Application 45 Local Chapters

46 Behind the Wheel

by Jeff Martin

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

DID YOU KNOW... The fall education schedule has been announced? You can find the lineup and register online under Resources/Education on the TIADA website.

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 Working with the Legislature: Every Voice Counts

W

hen my business partner and I decided to open up our car lot back in 2005, I found out right away that even though we’d be operating an independent business, many other folks would be making decisions which would have a direct effect on my bottom line, and therefore my lifestyle. Some I found, would be good and result in something positive for us. I‘ve been pleased with the technological advances such as interactive websites, social media and even TxDMV updating the temporary tag issuance to an online system. Other decisions that have a negative impact on our business were not so welcomed. One which comes to mind is the Texas Legislature authorizing the sale of limited or named-driver only insurance policies.

My legislative experience with TIADA has taught me getting involved in these matters can often have a positive impact on our industry.

Prior to joining TIADA at age 49, my only experience legislatively speaking was to attend Boys State while in high school. I’ll never forget it. We took over the Idaho Capitol Building in Boise and staged a mock legislative session complete with senators, representatives, a governor and lieutenant governor. Now fast forward 37 years to 2011. I had been a member of TIADA for about five or six years and received an invitation to participate in TIADA’s Lobby Day from Jeff Martin, our Executive Director. I was more than a little intimidated about putting on a suit and going, thinking, “Those folks at the capital don’t care about what’s important to me, a usedcar dealer. They’ve got cigars to smoke and fellow politicians’ backs to slap.” I could not have been more wrong.

When we arrived at the state capitol, the association formed us into groups of four to five dealers each, gave us the talking points and sent us on our way to visit with legislators. My group had two experienced dealers who had been to the capitol before — Brent Rhodes from

4

by Robert

Beck

Stop N’Drive Motors (San Antonio) TIADA TREASURER

Fiesta Motors in Buda and Keith Hagler from Taylor Auto Credit in Taylor. I was amazed at how open the legislators and their staffs were to our viewpoints, and how interested they really were in what issues are important to us.

On a side note, we even got to sit in on Governor Perry’s State of the State address in the House chamber. I chalked that day up as a very positive and patriotic experience. I was glad that I overlooked my fears and attended.

I also attended the Lobby Day in 2013 and experienced the same type of real concern for what our issues are as dealers. This time, I found myself having photos

I’d like to encourage you to not only be a member of TIADA, but to get involved with us politically. taken with Governor Abbott (then a candidate) and also meeting the man who represents the house district I live in — Speaker Joe Straus of the House of Representatives.

I’ve found they ALWAYS want to welcome voters from around the state, especially if you are a constituent. We are the folks they’d like to please! All of this has reinforced my confidence in our representative form of government as well as in my ability to articulate our issues to the legislators. (cont’d on pg. 6) T e x a s

D e a l e r

September 2016

AUTO

DEALERS WANTED

FINANCING

INSTANT

24/7

APPROVALS

AVAILABILITY

When you've got contracts to sell, we are the marketplace to deliver results. Our reliable, knowledgeable staff are here to provide personalized service. Partner with a proven stable finance company that you can trust to help you grow your business and your profits.

Contact the manager at your local branch or visit us online.

Dallas / Fort Worth: 972-660-1000 ● El Paso / Amarillo: 505-232-3100 Houston: 713-218-9500 ● San Antonio: 210-541-9500

© 2016 Lobel Financial. All rights reserved.

www.lobelfinancial.net | Training~Support: 800-871-8051

Building Success Together

Cash for accounts receivable.

Turn sales contracts into cash.

Delivering results you can bank on.

0

Officers’ Message (cont’d from pg. 4)

As a part of the 2013 legislative session, I was asked by Jeff Martin to testify at a Senate committee meeting in favor of a bill sponsored by Senator Wendy Davis (D) Fort Worth which would require complete and honest disclosure by insurance companies when they sell the nameddriver only policies. While the bill wasn’t everything we wanted (we’d like to ban such policies from being sold in Texas), I found myself sitting next to Ms. Davis as we both testified in favor of her bill before the committee.

Afterwards, she expressed her sincere appreciation for my testimony and the support of the TIADA for her bill. Her bill passed, was signed by the Governor and is now law.

Here’s what is important to note about my experience with Ms. Davis; in the whole state of Texas, you could not find two people more different politically than Senator Wendy Davis and I. She’s a liberal Democrat, I’m a rock hard conservative Republican. She’s a plaintiff ’s attorney, and I’m an independent businessman who relishes the free enterprise system. But on this issue, our paths came together, and the support of dealers like myself in the TIADA was crucial to her success in enacting her bill.

This law, while not all we wanted, has helped all of us.

In 2015 I was asked again to testify before a House of Representatives committee, which was considering an

outright ban on the sale of named-driver only policies in Texas. Several associates from TIADA were there, both dealers and TIADA staff. As I sat in the hearing room listening while several opponents of the bill were trying to convince the legislative committee that these toiletpaper policies were in fact good, my blood began to boil. I couldn’t believe what I was hearing. I knew what the facts were on the ground. I’ve experienced losses from claim denials due to a non-covered driver. I’ve looked into the eyes of an unsuspecting insurance consumer who’s just been told that their policy is junk and will not cover the loss they just incurred on the most expensive asset they have ever owned.

Jeff Martin from TIADA had told us, “Don’t overplay this. We feel we’ve got the votes to pass the bill out of committee.” But I couldn’t help myself. When I stood up to testify, I just told my story of what had actually happened to me and my customers. There was one representative who was leading the opposition who tried to distract me from my mission by disingenuously asking if I’d never heard of single interest policies. He asserted that such policies could protect my business and therefore dismissing out of hand my support of the bill to ban named-driver only policies. He had previously taken and encouraged testimony from the insurance industry (cont’d on pg. 8)

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

** NEW — UP TO 40% PREMIUM CREDIT ON GARAGE LIABILITY AVAILABLE TO TIADA MEMBERS ONLY **

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

• Dealers E&O Coverage • Garagekeepers • Workers Compensation

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

www.teiinsurance.com 6

T e x a s

D e a l e r

September 2016

INDEPENDENT

LIBERATION INTEGRATED TECHNOLOGY FOR ALL. CRM + DMS + Websites + Inventory + Equity Mining and so much more… TOGETHER IN ONE PLATFORM.

INTEGRATION LEADS TO LIBERATION Dealers with an integrated DMS and CRM save an average of $120 on flooring costs per vehicle.

Witness the biggest release in DealerSocket history at DealerSocket User Summit.

JW MARRIOTT SAN ANTONIO

OCTOBER 3–5

USERSUMMIT.DEALERSOCKET.COM

DEALERSOCKET.COM/TIADA

844 .899.1579

Officers’ Message (cont’d from pg. 6)

that if Texas banned the named-driver only policies, the price of insurance coverage would shoot up and therefore prohibit consumers from being able to afford coverage.

So when he asked his dismissive question, I told the committee that my research on my customer portfolio indicated that my customers paid on the average of $8–12 more per month for a standard policy. That they gladly did so, knowing that they would

8

have a quality policy to rely on when a claim was necessary. I mentioned that our customers are no different than anyone else when it comes to being willing to pay a little more for a good policy. I testified that if I were to use the single interest policies he’d brought up, the customer would have to pay $30–40 more per month for just covering my interest in the collateral as a dealer. They also would not have any public liability insurance and

would have to buy a second policy for liability coverage. I ended by saying, “So you’d be requiring them to pay even more for less coverage, plus you would undoubtedly have a lot more drivers without public liability coverage which is something I know you do not want to encourage!” At this point, many of the representatives on the panel became a lot more vocal in their support of banning the named-driver only policies. I heard nothing more from the representative. Jeff Martin was right. We had the votes!

I left that legislative hearing on a cloud. It felt very good to have a part in something at the capitol which was designed to help our industry. We got the bill out of that committee and on to the full House of Representatives where it passed by a large margin. The only problem was that it died in the Senate.

So that is where we are now going to concentrate our efforts. It will take the same type of effort to be able to convince the senators, like their representative counterparts, that this is good public policy.

This is where you can be a big help.

I’d like to encourage you to not only be a member of TIADA, but to get involved with us politically. We need you! Come next January we’ll have another Lobby Day in Austin. I invite YOU to be there! I’m confident you’ll have a very positive experience, just as I did. Our elected officials in Austin are more than willing to listen to us, and we CAN make a difference in the regulatory environment we have to do business in.

My political involvement in TIADA has really reinforced my dedication to the God-inspired idea of this representative republic we live in called the United States of America. And if I’ve learned anything at all in my journey from being an Idaho farm boy to testifying at the Texas Legislature, it’s that EVERY voice counts. Even mine. Your voice counts too. You can help us to help our industry. To not speak up or to not get involved is the only way we lose.

T e x a s

D e a l e r

September 2016

MANHEIM PENNSYLVANIA PRESENTS

• BMW •

ME R C E D

UD I

ES-

•A

BE

HE

N

VOLKSWAGEN • • W PO M B R •

B

MW

•

VO L K S

W A G

EN

•A

UDI

• ME R C E D E S B

E

N Z •

OCTOBER 13TH & 14TH Increased Consignment of High End Imports Dealer Party with Free Beer, Wine and Food Thousands of Dollars in Cash and Prize Giveaways Additional information to come....

TIADA, TEXAS DEALERS, TEXAS HIGH SCHOOL FOOTBALL, and COLLATERAL PROTECTION INSURANCE, makes doing business in TEXAS UNIQUE!

Call Bill Murphy 512-799-2886

Bob Burke @ CP Insurance Associates Inc. 800-366-0036

legal corner

O

Frame/Unibody Damage, Selling “As Is,” and the Texas Deceptive Trade Practices Act

ver the years, vehicle sellers have struggled with issues involving consumer disputes about breakdown repairs and vehicle condition discrepancies after a vehicle was sold “as is.” The most frequent inquiry I have fielded from dealers has involved a consumer complaint about frame damage, mileage issues or who should pay for repairs when warranties were disclaimed. Prior to the enactment of the Texas Deceptive Trade Practices Act (DTPA) in 1973, selling “as is” effectively eliminated most claims (other than actual fraud).

The passage of the DTPA had an immediate and dramatic effect on the relationship between sellers and buyers. Selling “as is” did, and still does, eliminate warranties. The DTPA, however, created a new cause of action for misrepresentation, among other things, that went beyond whether or not warranties existed. The new cause of action could be based on oral statements, did not require proof that the seller knew of the defect or condition complained of, or that the alleged misrepresentation was made intentionally or knowingly. The new law also provided for the possibility of triple damages in certain situations, and added attorneys fees to damages a plaintiff could recover.

A 1995 Texas Supreme Court case gave sellers some hope that, by selling “as is,” one of the elements of a DTPA cause of action was eliminated. In that case, the

September 2016

T e x a s

D e a l e r

court held that a negotiated contractual “as is” clause negated one of the requirements of proof necessary to establish a DTPA claim.

The court found that the element of causation, which connects a misrepresentation to damages suffered by the buyer, could not be established in the presence of the “as is” clause.

Thus, a valid “as is” clause would defeat any DTPA claims, as well as claims of fraud and negligence.

In that case, Prudential Insurance Co. of America v. Jefferson Associates, Ltd., an office building was sold “as is.”

Three years later, it was determined that the building contained asbestos and the buyer sued, claiming DTPA violations, fraud, negligence, and bad faith.

The buyers won the case at the trial level and at the Court of Appeals. However, the Supreme Court reversed, holding: A valid “as is” agreement, like the one in this case, prevents a buyer from holding a seller liable if the things sold turns out to be worth

by Michael

Dunagan

W.

TIADA GENERAL COUNSEL

...sellers should disclose in writing to buyers all material information about a vehicle before closing.

Certainly anything that is announced at an auction, for instance, or anything that would be found in a commercial vehiclecondition report, should be disclosed. less than the price paid because it is impossible for the buyer’s injury on account of this disparity to have been caused by the seller… The sole cause of a buyer’s injury in such circumstances… is the buyer himself.

However, the court, in its opinion, set some limits and exceptions on the application of this 11

What’s included: Funding for receivables You collect or We collect Floorplan Lines Simplified Insurance tracking

reports package training DBA - AmAc Acceptance corporation in texas

704-882-7100 ext. 7509 AcemotorAcceptAnce.com 12

holding. Specifically, the court recognized that an “as is” clause might not defeat DTPA claims if the buyer was induced by a fraudulent representation or by concealment of information.

Also, the court differentiated between the “as is” clause in this case negotiated between two sophisticated parties, and an “as is” clause that appears in a standard form contract that is not negotiated, especially if the parties are not equally sophisticated.

Since the Prudential opinion was issued by the Texas Supreme Court, there have been many appellate cases that considered whether the Prudential ruling would apply to consumer purchases of motor vehicles.

Some courts have applied the Prudential rationale in disallowing DTPA cases where an “as is” provision was part of the closing documents. Others have looked to the exceptions provided in the opinion to refuse to let an “as is” clause cut off liability.

These exceptions and limitations were considered in a recent opinion issued by the Dallas Court of Appeals. In the latter case, a woman purchased a used car from a dealer. The vehicle displayed the Federal Trade Commission-mandated Buyer’s Guide, upon which the dealer had checked the “AS IS — NO WARRANTY” option, which is followed by the preprinted sentences: “YOU WILL PAY ALL COSTS FOR ANY REPAIRS. The dealer assumes no responsibility for any repairs regardless of any oral statements about the vehicle.”

The buyer claimed she was not told about prior frame/unibody damage, despite the fact that the dealer’s purchase documents from a wholesale auto auction clearly made such a disclosure. The buyer also claimed she was told by the salesperson that she could trade it in for a bigger car after

paying on it for a year or so.

Around a year later the buyer tried to trade the vehicle in at another dealership, but was told the vehicle had prior frame/unibody damage and that the dealership wouldn’t take it in trade. Suit was filed against the selling dealer alleging DTPA allegations.

The trial court, citing the “as is” language on the Buyer’s Guide and the Prudential case holding, found for the seller. On appeal, the Dallas Court of Appeals reversed, finding that the exceptions outlined in the Prudential case applied in such a way as to prevent the “as is” clause from eliminating the causation element of the DTPA claims.

In differentiating the Prudential case, the court pointed to the fact that in the car case, the parties did not occupy equal bargaining positions. The car buyer was unsophisticated in negotiating the purchase of a car, whereas the dealer was experienced and sophisticated in such matters.

Secondly, the court held that the language on the Buyer’s Guide referenced that the buyer would be responsible for repairs after the sale. Since this case did not involve repairs, the court found that the Buyer’s Guide language didn’t address the car’s true condition at the time of sale (the prior unibody damage). The opinion referenced the testimony of the buyer to the effect that she wouldn’t have bought the vehicle if she had known of the unibody damage.

Thirdly, the court found the “as is” language on the Buyer’s Guide to be a “boiler-plate” provision that was apparently not negotiated or negotiable, as opposed to the extensive contract term in the Prudential real estate contract.

Based on the evidence produced at trial, the court concluded that the “as is” provision did not eliminate the causation element.

T e x a s

D e a l e r

September 2016

Also, it is not possible to have a buyer contractually waive his or her rights under the DTPA, as the statute makes any such attempt void.

Another takeaway from the recent case is that sellers should disclose in writing to buyers all material information about a vehicle before closing.

Certainly anything that is announced at an auction, for instance, or anything that would be found in a commercial vehicle-condition report, should be disclosed.

Any information about a title certificate being branded (salvage or flooded, for instance), a lemon-law buy-back history, odometer discrepancy (such as

The court remanded the case back to the trial court for further proceedings.

It would appear that selling “as is” is not an absolute shield to liability under the DTPA, and should not be relied on as such.

the replacement of the odometer or instrument cluster that results in fewer miles showing), should be passed on.

Dealers who sell “as is” should also consider using a more complete disclaimer of warranties form and not just rely on the language on the Buyer’s Guide.

Most retail installment contracts contain “as is” and warranty disclaimer language, but a more complete statement in a standalone document, reviewed with the buyer, and signed by the buyer would be preferable.

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.

GARAGE LIABILITY & BONDS PROTECTING YOUR BUSINESS IS OUR ONLY BUSINESS • Save Money! Our prices are very competitive and we work hard to earn (and keep) your business.

• Save Time! We offer time saving benefits like digital signature and online premium payment services that are simple and free.

• More Choices! Instead of having only one insurance company to choose from, we provide

access to many. We represent the top insurance companies that specialize in independent car dealerships.

• We speak plainly; not Insuranceeze! Insurance doesn’t have to be daunting. We simply clarify coverage terms and, most importantly, explain how they affect you and your business.

• Hire an Expert! You diligently hire a good accountant and attorney for a reason, so when

choosing an advisor to help protect your valuable assets and livelihood, why not hire a Certified Insurance Counselor that has extensive education and can better serve you?

“They were very helpful, explained the risks associated with my business, and provided better coverage that actually cost less!” – Eric O., Austin, Texas

Southwest Commercial Insurance Agency, LLC

Call Matt! (512)771-6091 Proudly serving all of Texas!

NO SURPRISES — We Deliver What We Promise.

Remember, protecting businesses like yours is our only business!

September 2016

T e x a s

D e a l e r

13

on the cover compiled by Texas Dealer staff

TIADA Welcomes 2017 President

Kathrine Tolsch Tell us about your personal history—where you grew up, family, education, other ventures, etc.

I

was born in Germany and German is my first language. My father was buying Volkswagens in Germany and exporting them to the US when he met my mother. We moved to Houston when I was four and he opened a “Tote the Note” lot. Over the years we moved around quite

a bit with my dad always starting up a new venture in various industries; used cars, real estate development and oil and gas exploration. We finally settled in a very small town (est. pop. 2000) east of Dallas, named Quinlan.

After graduating high school, I attended college at SMU and earned a degree in accounting. I worked in the public accounting sector for six years in Dallas, Houston and New York where I met my husband, Ed.

When we moved to Dallas, I transitioned to a national staffing company where I recruited accounting personnel for companies. I worked for them for eight years. Ed and I have been married 24 years and have two children, Jason 19 and Ryan 16, and two dogs, Kelsey 13 and Chloe 1 year. Ed continues his career in IT and has worked for the same company in Dallas for 23 years, and he is extremely supportive to the dealership and me.

Kathrine with State Senator Eddie Lucio Jr.

14

T e x a s

D e a l e r

September 2016

How did you get into the car business?

In 2002, I left my career to spend more time with my children, who were 5 and 2 at the time. My father asked if I would help my mother with the bookkeeping a few hours a week, which eventually turned into most days a week. Then in 2003 my father passed away at the age of 82. The business is the sole support for my mother, who is quite a bit younger than my father, and being the only child, I took over all aspects of the dealership. Technically, I’m the third generation to be in the car business, as my grandfather also had a note lot and a Buick dealership.

profitability for company longevity. I believe that every situation in our business can be effectively addressed by staying true to the mission and doing the right thing, and doing things right.

How did you first get involved with TIADA?

When I took over the dealership, I knew nothing about the BHPH industry. I was searching for ways to educate myself. Mike

Dunagan suggested I join TIADA. It was the best decision I could have ever made! Attending education seminars, reading the magazine, networking with other dealers and attending the annual conference have all provided me with the knowledge and resources to be successful. I am a strong proponent of education. Education is a tool for industry compliance, business efficiency and profitability. TIADA is our resource for education.

Kathrine with State Representative John Frullo at the 2016 TIADA Conference.

Could you summarize your personal business philosophy?

In a nutshell it’s do the right thing, and do things right. Our mission statement reflects my philosophy. We are committed to our product, our customers and our staff by fostering an environment of mutual respect and honesty, and a spirit of cooperation to achieve a successful outcome for all thereby maintaining

SALE every THURSDAY @ 10am Early bird Sale @ 9:30am

Simulcast Auto IMS Auction Pipeline 4 Lanes Weekly Over 500 Vehicles Air Conditioned Bays Registration BUY & Online SELL ONLINE with US 956.461.9000 www.bigvalleyaa.com

September 2016

T e x a s

D e a l e r

15

What challenges do you foresee in the upcoming year?

Upcoming Events TIADA DEALER ACADEMY Register online at www.txiada.org

September 2016 12 How to Become an

Independent Auto Dealer Crowne Plaza 6121 N. IH-35 @ Hwy 290 Austin, TX 78752

October 2016 10 Better BHPH Financials

Crowne Plaza 6121 N. IH-35 @ Hwy 290 Austin, TX 78752

November 2016 7 How to Become an

Independent Auto Dealer Crowne Plaza 6121 N. IH-35 @ Hwy 290 Austin, TX 78752

OTHER TIADA EVENTS October 2016 1 1 TIADA Board of Directors

Meeting Austin, TX

January 2017 3 0 TIADA Board of Directors

Meeting Austin, TX

16

As we are heading into a legislative session, we never know what surprises may be around the corner. But I am extremely confident with the help of our our TIADA staff, counsel and lobbyist we can rally to stop any detrimental legislation. Also, we will continue to pursue legislation to ban the sale of named-driver only insurance policies.

We will be working hard to bring this to fruition.

What do you think the role of TIADA should be?

around significant membership growth, expanding our legislative influence and actions, and building a first rate digital communication methodology. I believe this vision will propel TIADA to the next level and I am very honored to be a part of it.

...for the association to achieve significant influence in the legislative and rulemaking that affects our industry, it must grow its membership, increase brand awareness and be a resource through education and consultation.

First and foremost, it should be the unified voice of Texas independent dealers, a voice that is heard not only by legislators in Austin but also in municipalities where dealers are regulated, and even in the national arena where we’ve seen some daunting regulatory forces.

Secondly, for the association to achieve significant influence in the legislative and rule-making that affects our industry, it must grow its membership, increase brand awareness and be a resource through education and consultation.

What do you see in the future of TIADA? I’m extremely excited about the future. The board of directors just approved a new 5-year strategic plan which takes us through the year 2021. The vision is focused

Do you have any final thoughts or message for the members?

My message is what I said at the conference. Act! Take action to support your association and be involved; there are many needs and many roles to fill. Find the niche that is best suited to you whether that is recruiting, attending Lobby Day, contributing to INDEPAC, serving on a TIADA committee or being a key-man contact with a legislator. Let TIADA be your industry resource and return the favor by taking ACTion.

T e x a s

D e a l e r

September 2016

Dealer Academy 2016 Better BHPH Financials Presented by David Keller, CPA, a principal with the dealer group at CliftonLarsonAllen, one of the nation’s top 10 CPA and consulting firms.

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

Participants will learn:

10:00am - 3:00pm $99 TIADA Members, $199 Non-members (includes up to 3 attendees per dealership)

• • • • • • • • •

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

Monday, October 10, 2016 Austin, Texas Sponsored by:

www.claconnect.com

www.avpadmin.com

Texas Independent Automobile Dealers Association

Crowne Plaza 6121 N. IH-35 @ Hwy 290 • Austin, TX 78752 512.371.5210

This class has been approved by NIADA as a Certified Master Dealer continuing education course.

Register online at www.txiada.org or by phone at 512.244.6060.

BID TODAY! Weekly ONLINE sales make it easy to get the inventory you need on your schedule.

CONVENIENT

You get five hours to place bids.

FLEXIBLE

Buy cars on your schedule.

LOWER FEES

All fees are posted online.

FLOOR PLANNING The ability to floor plan with most major companies.

MULTIPLE BUYING OPTIONS Place bids online, or at the auction site.

2016 TIADA VIP Auction Card Directory ABILENE

CORPUS CHRISTI

IAA*

Alliance Auto Auction Abliene

IAA*

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.

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

www.allianceautoauction.com

C.M. Company Auctions, Inc. www.cmauctions.com

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

AUSTIN ADESA Austin

www.adesa.com

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

BELTON Belton Auto Auction New! www.beltonautoauction.com

212 E Loop 121, Belton, TX 76513 254.899.2886, Fax 254.613.4582 General Manager: Joe Lavigne Thursday, 10:00 a.m.

* VIP card accepted for sell fees only 20

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

www.iaai.com

Corpus Christi Auto Auction New!

(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, 10:00 a.m.

DALLAS / FT.WORTH METROPLEX ADESA Dallas

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.com

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

America’s AA Dallas

www.americasautoauction.com

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

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.

www.iaai.com

Manheim Dallas

www.manheim.com

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

Manheim Dallas Fort Worth www.manheim.com

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

Rockwall Auto Auction New! 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 Drive Carrollton, TX 75006 214.483.3597, Fax 214.483.3814 General Manager: Jeff Dunning Tuesday, 1:00 p.m. / Thursday, 2:00 p.m.

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

7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 General Manager: Luke Pidgeon 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.

T e x a s

D e a l e r

September 2016

IAA*

SAN ANTONIO

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

ADESA San Antonio

www.iaai.com

IAA*

www.iaai.com

Manheim El Paso

www.manheim.com

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

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

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

Manheim Houston www.manheim.com

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

Manheim 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.

www.adesa.com

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

America’s AA Houston New!

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 New!

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

LONGVIEW

13510 Toepperwein Rd San Antonio, TX 78233 210.298.5477, Fax 210.298.5484 General Manager: Brandon Walston Tuesday, 10:00 a.m.; Thursday, 1:30 p.m.

Alliance Auto Auction Longview

TYLER

www.allianceautoauction.com

ADESA Houston

www.adesa.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

Greater Tyler Auto Auction New! www.greatertyleraa.com

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

WACO

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

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

America’s AA North Houston

LUBBOCK

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.

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

IAA*

Heart of Texas Auto Auction

www.americasautoauction.com

www.americasautoauction.com

Big Texas Auction of Houston New! www.bigtxauctions.com

2000 Cavalcade St. Houston, TX 77009 832.204.7500, Fax 832.204.7499 General Manager: Joe Lavigne Friday, 10:00 a.m. www.houstonautoauction.com

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

T e x a s

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

D e a l e r

www.allianceautoauction.com

www.heartoftexasautoauction.com

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

MIDLAND / ODESSA

OKLAHOMA CITY, OK

IAA*

Dealer’s Auto Auction of OKC, Inc.

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

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

www.iaai.com

Houston Auto Auction

September 2016

www.iaai.com

Alliance Auto Auction Waco

www.daaokc.com

21

feature Another Successful Conference Comes to a Close

by Michael Spurlin

TIADA Social and Communications Director

W

hat a show! Last month we staged our most successful Annual Conference and Expo in San Antonio. After a stellar 2015 conference, attendance grew even higher this year. A record number of over 280 dealers attended from 163 individual dealerships. That number included 110 first time attendees.

Those attendees participated in 35 breakout sessions along five different learning tracks, our largest offering of education to date. They also heard from the best reviewed speaker in the history of our conference, Ingram Walters, who delivered the keynote address. The expo hall was once again sold out as dealers took time to visit with over 100 sponsors.

“It was enjoyable talking to the first time attendees, and I’m looking forward to their return in the future. The welcome reception is always a pleasure to mix with other dealers and our guests.”

Wayne Meagher

– MD Auto Sales, Grand Prairie –

September 2016

T e x a s

D e a l e r

23

In addition, dealers heard from a wide range of Texas legislators throughout the week. State Senator Eddie Lucio Jr. and Representative Ryan Guillen addressed the Board of Delegates on Sunday. The next day State Senator Jose Menendez and State Representative Drew Springer welcomed attendees during the Opening General Session. Dealers heard from State Representative and Chairman of the Insurance Committee John Frullo, State Representative and former TIADA President Patricia Harless as well as Whitney Brewster, Executive Director of the Texas Department of Motor Vehicles at the General Session Luncheon. Finally, Texas Comptroller Glenn Hegar helped close out the conference when he spoke during the Presidential Awards Banquet.

“Y’all really gave it all you had to make sure everybody had everything they needed.”

Charlie Drugg

– Hope Motors, New Braunfels –

The conference ended on a high note when President Elect Greg Zak of Dixon Motors in Houston was the lucky winner of the Harley Davidson.

Congratulations Greg! The executive director of the Alabama IADA, Randy Jones, who was in attendance won the $10,000 prize.

24

T e x a s

D e a l e r

September 2016

“I think our round tables are still the best experience for all dealers especially our new dealers. it allows real time discussions and info sharing.”

Eddie Hale

– N eighborhood Autos, Decatur, TX –

September 2016

T e x a s

D e a l e r

25

“It is by far the best State Association Convention in the country.”

Kevin Roy

– CliftonLarsonAllen, LLP –

Thank you to all the dealers and sponsors that made this year such a wonderful success. Each year the conference grows bigger and better. If you want to be a part of this rapidly growing conference then mark your calendars for July 23-25, 2017.

We will once again be headed to the San Antonio area and will host the conference at the Hyatt Hill Country Resort & Spa. See you next year!

26

T e x a s

D e a l e r

September 2016

“The conference is a great opportunity for dealers to learn more, help one another and relax with their families.”

Lanny Williams – Raceway Motors, Lufkin –

“I think this conference offers the best education of any other conference!”

Brent Rhodes – Fiesta Motors, Buda –

September 2016

T e x a s

D e a l e r

27

We Get in the Weeds, So You Don’t Have to.

We'll Find Your Vehicle or Pay You Up To $10,000* The STARS GPS next generation solution is ultra intelligent, all-out powerful and so easy to use. In fact, it's so robust that we’re backing it with a Vehicle Recovery Performance Warranty for no additional cost. Under the warranty, we guarantee to locate your vehicle or we’ll pay you the value of it up to $10,000.* Our Vehicle Recovery Warranty also: • Provides 60 days of theft coverage – while on the lot • Gives you the flexibility to increase insurance deductibles so you can reduce premiums and save even more money • Increases the value of your portfolio – instantly

STARS GPS Vehicle Recovery Warranty. A Promise You Can Take to the Bank.

Schedule a demo online at STARS-GPS.com or give us a call: East Coast: 1-877-828-4770

West Coast: 1-844-807-9590

For more than a decade, STARS GPS has been servicing the vehicle finance industry offering the latest risk mitigation tools at the best value.

* Contact us for terms of warranty.

CONNECT WITH US:

feature 2016 TIADA Awards Wrap Up

by Michael Spurlin

TIADA Social and Communications Director

A

s always, the Presidential Awards Dinner capped off a successful annual conference.

There were several surprises and emotional moments as the awards were handed out to longtime members and staff.

TIADA Chairman of the Board Phil Lathrop kicked off the awards ceremony by presenting the highest honor the association has for a non-dealer, the TIADA Independent Award, to Texas Comptroller Glenn Hegar. Comptroller Hegar first spoke to TIADA members at the 2006 convention when he was a sitting state representative who had just been elected to serve as the youngest state senator in Texas history.

Two of the most significant awards were handed out to individuals who have contributed greatly to the success of TIADA over the years.

Michael Dunagan was honored for his outstanding work as the association’s general counsel for the past 40 years. Past president and TIADA Hall of Famer Keith Hagler had the honor of presenting Dunagan with a Texas flag that had flown over the Capitol in Austin on that very day.

Later, Executive Director Jeff Martin took the stage to honor dealer Blake Ingram with the highest honor the association gives out, induction into the TIADA Hall of Fame. Ingram was joined onstage by his family members who flew in to surprise him for the special occasion.

In one of the night’s other big awards, Robert Blankenship of Texas Auto Center in Austin won 2016 Quality Dealer of the Year.

Additionally, several dealers in attendance were recognized for their recruiting efforts on behalf of the association. Michael Zak

September 2016

T e x a s

D e a l e r

Texas Comptroller Glenn Hegar with TIADA Chairman of the Board Phil Lathrop

TIADA General Counsel Michael Dunagan

Michael Zak receives his NIADA Eagle Award from President Kathrine Tolsch

TIADA Quality Dealer of the Year Robert Blankenship

29

TIADA Hall of Fame Inductee Blake Ingram joined by his business partner Robert Milligan; wife Kim; daughter Katie; and son Blake Jr.

Phil Lathrop presents Executive Director Jeff Martin with an award.

2016 TIADA Board of Directors

was awarded the NIADA Eagle for recruiting 20 new members in a single year. Mark Brown, Wayne Meagher and Ahmed Belmeshkan were awarded the NIADA’s highest recruiting honor, the Crystal Eagle, for having recruited more than 100 new members in the past two years.

Lastly, but certainly not least, TIADA Executive Director Jeff Martin was honored with an award to commemorate his 10 years of service to the association. Congratulations to all the recipients!

Specializing in Software for the “BHPH” Dealer!

Visit us at

www.wincarsdms.com or call

817-927-5994 30

T e x a s

D e a l e r

September 2016

THE MARVIN NORWOOD SCHOLARSHIP WINNER: SETH REINE.

Seth graduated as valedictorian from James Martin High School in Arlington and will attend Texas A&M this fall. He was sponsored by his parents Greg and Jenny Reine of Auto Liquidators in Dallas.

5 runner-up scholarships:

-Olivia Schilling, sponsored by Juli Ward, Ward Motors -Caleb Santana, sponsored by Haskell Griffin, Texas Auto and Truck -Ryan Gonzalez, sponsored by Michael Charman, Sierra Motors -Dylan Bostick, sponsored by Gary Bostick, Bostick’s Auto and Truck Sales -Sandra Simmons, sponsored by Larry Simmons, Simmons Auto Sales.

Marvin Norwood Scholarship Winner Seth Reine joined by his parents Greg and Jenny Reine.

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 September 2016

T e x a s

D e a l e r

Proud Member for over 20 years

31

Dealer Academy 2016 How to Become an Independent Auto Dealer Presented by Danny Langfield, Deputy Executive Director of TIADA Got any “Green Peas” at your store?

Anyone you’d like to get familiar with the business from the bottom up? Send ‘em here for a crash course in Dealer 101!

This four part course is broken down as follows: • • • •

Section Section Section Section

I – Getting Into Business II – Selling A Vehicle III – Titles, Records & Vehicle Inventory Tax IV – OCCC, the Feds & More

9:30am - 4:30pm $149 Per Attendee

Highlights include: • License types • What’s On Your Wall?

• Your business model • Requirements for dealer license • VIT • Acquiring inventory / Auction 101 • The deal jacket (every document you’ll need) • The basics of transferring titles • Record keeping requirements • Federal requirements • Advertising rules...

And a whole lot more!

Monday, September 12, 2016 Austin, Texas Crowne Plaza 6121 North IH-35 • Austin, TX 78752 512.323.5466 Register online at w w w . t x i a d a . o r g or by phone at 512.244.6060.

Texas Independent Automobile Dealers Association

regulation matters

A Definite, Unequivocal “Maybe”

by Danny

E

ver try to get a straight answer out of an attorney? One is reminded of the 1833 quote attributed to Charles Lamb: “He is no lawyer who cannot take two sides.” Or this one, from G.N. Tillman: “Lawyers are doubters, skeptics; not in a bad sense. But they never know anything absolutely and utterly without qualifications or modifications.”

Nonetheless, I was excited to welcome a veritable who’swho of top legal talent to our conference this year and looked forward to getting some highly educated opinions on a high-profile issue; namely, cash vs. credit pricing.

The formidable intelligentsia assembled at the TIADA Annual Conference included our own general counsel of 40 years, Mike Dunagan of Jameson & Dunagan in Dallas; NIADA’s Senior Vice President of Legal & Government Affairs, Shaun Petersen out of Arlington; Terry O’Loughlin, Director of Compliance, Reynolds Document Solutions in Florida, and Tom Hudson, a partner in Hudson Cook out of Washington, D.C.

Langfield

TIADA DEPUTY DIRECTOR

With regard to cash vs. credit pricing, Mr. Hudson and Mr. O’Loughlin addressed the topic at a breakout session on Tuesday, and I understand the issue also came up several times at Monday’s dealer roundtable on Handling Customer Complaints moderated by Mr. Hudson and Mr. Petersen. All of the lawyers at the conference had previously opined on the topic, often in writing, normally in reference to the CFPB’s enforcement action against Herbie’s, and most recently with Mike Dunagan’s comprehensive article in the May issue of this magazine entitled, “The Herbie’s Case from a Texas Dealer’s Perspective.”

Tom Hudson (center) visits with TIADA conference attendees at the “Handling Customer Complaints” dealer roundtable.

September 2016

T e x a s

D e a l e r

33

To sum up TIADA’s understanding of the issue, a vehicle may only have one price. There should be no cash price, credit price, internet price, etc… just one price. We should also stop thinking of inventory in terms of “cash cars” and “finance cars” on the lot. You simply have vehicles on your lot, and you accept various methods of payment for those vehicles, which may include cash, 3rd party financing or inhouse financing. A customer may negotiate to strike the best bargain; as long as the negotiated price is not contingent upon the payment method, there is no prohibition (yet) on price negotiation.

Some dealers have interpreted the Herbie’s enforcement action to mean that prices cannot be negotiated at all. And in fact, many dealers choose not to negotiate price on any deal, period, which is certainly their right; that practice reduces 1-EPI_TIADA 0816.pdf

1

8/10/16

the risk of a regulatory action. However, as stated earlier, there is currently no federal or state law that explicitly prohibits price negotiation on the sale of a vehicle, as long as substantially similar negotiation takes place in both cash and credit sales.

So, does following the policies above make you impervious to a consumer lawsuit or regulatory action? Nope.

The attorneys at our conference agreed that no such bullet-proof policy exists. These are simply best practices to minimize your risk. Will they be enough to protect your dealership? Our experts agreed… maybe.

Can’t resist closing with one final bit of humor at the expense of our attorney friends…

To sum up TIADA’s understanding of the issue, a vehicle may only have one price.

There should be no cash price, credit price, internet price, etc… just one price.

Why are scientists now using lawyers in laboratory experiments instead of rats? Three reasons: (1) lawyers are more plentiful than rats, (2) there is no danger the scientists will become attached to the lawyers, and (3) there are some things rats just won’t do.

4:43 PM

C

M

Y

CM

MY

CY

CMY

K

34

T e x a s

D e a l e r

September 2016

Offer More Payment Options ACH, Credit and Debit Cards

Pay by Text, Web or Phone • Live Customer Support • Software Integration Bring two months of processing statements to Booth 519 and we’ll give you a $25 AmEx Gift Card.

For new Paymaxx Pro customers only.

Call us at 866.684.3420 for a free savings analysis.

A Payment Processing Company

Communicate with Customers the way they prefer – by text.

93% of text messages are opened within 3 minutes of receiving.

Leedom Group has optimized a texting solution for auto dealers and related finance companies.

Call us at 866.684.3420 to find out more, or visit www.TextmaxxPro.com

TEXT

Messaging Solutions

PRO

Marketing message campaigns • Collection and payment reminders Two-way sales conversations • Service Reminders

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!

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

WE ALSO OFFER THESE COVERAGES:

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

DO YOU WANT TO SELL MORE CARS &

MAKE MORE

MONEY?

The only finance company you can’t afford to live without!

To learn how, call 800-873-0512 or visit creditacceptance.com

EASIE R, FA S TE R, M O RE

36

P R O FITABLE!

T e x a s

D e a l e r

September 2016

feature Underwriting for BHPH

Success and Avoiding Pitfalls

by David Algood

Director of Sales and Marketing, AMAC

U

nderwriting is a key component of success for BHPH dealers. Underwriting can be broken down into two important categories: the customer, and the deal structure.

Remember, you don’t make your profit unless the customer pays.

While underwriting a deal, the dealer must evaluate a customer’s willingness and capacity to pay. A common pitfall for many BHPH dealers is that they avoid pulling credit bureaus because they know the customers will either have no credit or poor credit. While this is often the case, it is an excellent way to do some basic fact checking with the customer and see if the information is consistent with both the application, and what they have told you. Some key items to look for are prior auto credit or installment loans, and previous address information. If a customer has several repossessions, you will certainly want a very good explanation and check the timeline consistencies for things such as a job loss or divorce. Also, the time and number of payments the customer paid for the previous auto loan is very important as well. When the customer has prior repossession(s), but had paid timely for over a year, you should ask them what caused the repossession, so as not to put them in the same situation. One example of this would be a customer who drives over 3,500 miles a month whose car broke down. This customer would need to be on a short term contract relative to the miles on the car. Conversely, if they paid for their last car or have payed installment loans your likelihood of repayment improves significantly.

Customers with multiple repossessions in the first year and no positive credit, are ultra-high-risk and should be avoided or limited to deals where you have little or no money on the street.

Additional valuable information may be gleaned from the credit bureau report. Review prior addresses in the bureau with the credit application, discussing any significant differences with the customer. When the customer has recent prior addresses well outside of your area, find out what brought them to your area and the likelihood

September 2016

T e x a s

D e a l e r

of their moving back. If they did move back it could make both collections and repossession more difficult.

When the credit bureau shows a Red Flag alert you should get a copy of their driver license, proof of residence and if the warning involves the social security number, then you should get a copy of their social security card. The next area to look at is OFAC (Office of Foreign Asset Control) warnings. An OFAC warning exists when the person on the credit bureau is considered to be a “person of interest” to the government. It is very important that all OFAC warnings are cleared before a car is sold to the applicant.

37

The second key to successful underwriting is proper deal structure. The proper deal structure will be affordable for your customer, for a term no longer than the useful life of the vehicle, and provide the dealership solid profit margins. BHPH customers often live paycheck to paycheck and therefore getting a payment that works for both the dealer and the customer is vital.

The monthly payment should not exceed the lesser of one week take home pay or two weeks net pay less rent ( Net pay $400x2=$800 - Rent $450 = $350 Max Payment).

If the customer has a recent repossession while on their current job, their payment should also be at least $50 below their prior payment. In addition to these two, the most successful dealers often work up a budget with the customer to help determine what they can actually afford.

There is an old saying in the BHPH business, “When the car quits running — the customer quits paying”.

With that in mind, it is important to structure the financing so that the car will still be running at the end of the contract. To estimate the remaining useful life of the car you will need to consider how long you expect the car to last based on its’ current condition, make, model, age, and engine. Most customers will drive 15,000–20,000 miles a year, but some will drive substantially more.

Someone driving 100 miles roundtrip to work each day will drive far more than someone who lives a mile or two from their job. How long the car will last will also depend on how much the owner is willing to do in repairs and maintenance to keep it running.

Down payment is another key factor for underwriting and deal structure. A strong down payment will improve your cash flow, while also reducing your risk by lowering your cash in deal. Strong down payments will also increase their incentive to pay, especially when the cash down is money the customer has saved over time. On the other side of the coin, down payments below $800$1,000 lead to a renter’s mentality. When they get tired of the car after 3–9 months, many will quit paying and you get your “rental car” back.

BHPH dealers require a solid markup to be successful. While some dealers will mark-up cars 200% or more, this is not advisable. Excessive markups will force either much higher payments or terms which far exceed the useful life of the vehicle.

Both of these will result in higher credit losses and decreased repeat and referral business. According to the NCM 2014 benchmark, the average gross profit per car sold was $4,484 on an average ACV of $6,237. These reasonable profit margins allow for shorter contract terms and will put the customer in an equity position sooner. This allows you to sell them a car up to a year earlier. The BHPH business is built on repeat and referral business. This level of markup, combined with proper underwriting, deal structure and effective collections will lead to success in the BHPH business.

David Algood is the Director of Sales and Marketing at AMAC, a rapidly growing finance company doing business in the Eastern half of the United States. Anyone wanting more information can contact AMAC at 704-882-7100 (ext. 7509) or visit their website at www.acemotoracceptance.com.

38

T e x a s

D e a l e r

September 2016

e-Tag Supplies —

In Stock for Immediate Shipment!

MOTO

R VEH

ICLE R

ETAIL

INSTAL

LMENT

SALES

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

CONTR

ACT DAT E:

:

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

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

Trade-in( Year: Year:

s):

Make: Make:

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

VIN: VIN:

Model: Model:

Financed Amountof credit provided nt

f.

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

The dolla will cost

% $

$

Price

ents

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

$

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

$

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Quoted loss.

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

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

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

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

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

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

ents When Paym

Are Due

IDE R'S GU ORDER BUYE BUYER'S

Y RRANT NO WA AS IS NTY WARRA

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

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

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

316 bpc #24-4

Please Welcome Our Newest TIADA Members DEALER MEMBERS

Speedway Motors LLC Austin Hunter 5380 N Foster Rd San Antonio, TX 78244

Dune Autos Susana Blanchard 8011A Cameron Rd Austin, TX 78754

Dallas Auto Financial Jeremy Williams 2660 S Garland Ave Garland, TX 75041

McDavitt Auto Plex Inc. Gerardo Borrego 423 Brookshire Dr Brownsville, TX 78521

Hill Country Rides Heidi Shaw 1900 Greystone Dr New Braunfels, TX 78132

North Texas Autosports Ryan McKesson 2630 Brads Way Midlothian, TX 76065

Dunbar’s Dependable Auto Malcolm Batts 8800 Telephone Rd STE B Houston, TX 77061

Lucky Motorsports, Inc. Felipe Ibarra 9821 Montana Ave. El Paso, TX 79925

Spring Branch Auto Sales, LLC Eli Vardi 8545 US HWY 281N Spring Branch, TX 78070

Quality Motors Patricio Canavati 3520 E. Saunders Laredo, TX 78041

Genius Systems International LLC Foster Adesoye PO Box 600614 Dallas, TX 75360

Rapid Finance Becky Martinez 3615 South Padre Island Dr. Corpus Christi, TX 78415 Auto Wrangler Inc. Kevin Allbright P.O.Box 60254 San Angelo, TX 76906

Rancho Autos Raul Velez 511 North Beltline Irving, TX 75061 Victory Motor Company Brodick Maphet 1401 N Frazier St Conroe, TX 77301

Mule Barn Auto Monty Mitchell 1502 FM 4 Jacksboro, TX 76458 Caprock Auto Connect Monte Scarbrough 4501 99th St Lubbock, TX 79424 Auto Vera Inc. Jose Vera-Gomez 12106 Coldwater Cove Ln. Cypress, TX 77433

The Auto Butler Don Dowden 6411 Holden Mills Dr. Spring, TX 77389

Auto Options Inc DBA Just Jeeps of Texas Larry Loyd P.O. Box 54654 Hurst, TX 76054

Thomas Dotson Motors Thomas Dotson P.O. Box 427 Rio Vista, TX 76093

Mobile X Autos Mark Hutchins 9377 Latium Cementery Rd. Burton, TX 77835

Value Ride David Covalt 103 Carmel Dr. Bullard, TX 75757

AutoEquation, LLC David Soliman 906 Spencer Highway South Houston, TX 77587

Pharr Auto Sales Efraim Barrera 1900 N. Cage Pharr, TX 78577

Capital Auto Sales Dwight Pillow 601 N. Beltline Rd Irving, TX 75061

Doyle Chapman Motor Sales Doyle Chapman 6000 Cameron Road Austin, TX 78723

Big Sexy Auto Kyle Gerst 10651 Steppington Dr. Apt 3034 Dallas, TX 75230

ASSOCIATE MEMBERS

Larry Meckley Auto Sales, LLC Larry Meckley 401 Southerland Dr Tyler, TX 75703

Branch Auto Sales Michael Parker 4905 Hackney Lane The Colony, TX 75056

September 2016

T e x a s

E&V Auto Sales Vincent Guzman 9202 FM 812 Austin, TX 78719

D e a l e r

Stedson Auto Sales LLC David Byers 16299 FM 1325 Austin, TX 78728

Innovate Auto Finance Brandi Hudecki 6707 Brentwood Stair Rd. Ste 610 Ft Worth, TX 76112 iCap Financial of Texas, LLC Sylvia Pena 6606 FM 1488 Ste. 148-347 Magnolia, TX 77354 Podium Cami Ho 3401 N Thanksgiving Way Ste #250 Lehi, UT 84043 Naman, Howell, Smith & Lee Jordan Mayfield 500 Austin Ave. Suite 800 Waco, TX 76701 Factor Trust – The Alternative Credit Bureau Jane Rafeedie 695 Mansell Road, Suite 200 Roswell, GA 30076 BuySurety Tony Balzano 781 Neeb Rd Cincinnati, OH 45233 CalAmp Bill Caan 15635 Alton Parkway Suite 250 Irvine, CA 92618 CarPay, Inc. Brandon Cavalier 222 S. Church Street Charlotte, NC 28202

E Z Office Solutions Estela Marcelino 508 Blarney Rd Floresville, TX 78114 Buckeye Dealership Consulting AJ Johnson 545 N. Broad Street Suite 2 Canfield, OH 44406

41

TIADA Membership Application

2016

Business Name: ____________________________________________ Select one:

Dealer Member

TIADA texas independent automobile dealers association

TIADA texas independent automobile dealers association

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________

2016 TIADA Membership Dues:

City: _________________________________________ State: _______

Join Date:

Dues:

Zip: __________________ County: _____________________________

Jan. / Feb. / Mar.

$425

Apr. / May / Jun.

$320

Jul. / Aug. / Sep.

$215

Oct. / Nov. / Dec.

$425

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

(includes all of 2017) (all dues include NIADA membership)

PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Sec.Code: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Expiration Date: ____________ Monthly Payments - $35.42 per month Via Credit Card (Please enter card information above. Authorization Agreement required - contact state office) Via Bank Draft (Authorization Agreement & voided check required - contact state office)

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

www.txiada.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.

America’s Auto Auction

4

LOCATIONS IN TEXAS!

BUY ONLINE AT www.americasautoauction.com

Dallas

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

North Houston

NOW 2 HOUSTON LOCATIONS

MONDAYS AT 6:30PM 1440 FM 3083,Conroe, Texas 77301 Phone: 936.441.2882

Houston

THURSDAYS AT 2PM 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

FOUND IT.

LET THE SALES BEGIN!

Improve Customer Payment Performance and Reduce Repossession Risks.

If It Runs on PassTime, It Doesn’t Run Away.

44

T e x a s

D e a l e r

September 2016

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

September 2016

T e x a s

D e a l e r

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 Kevin Mims VP Auto Sales 972.864.1300 kevinm@vpautosales.com Meetings as needed/TBD HOUSTON John Freeman Galena Park Motors 713.675.0559 houiada@houiada.com 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 45

behind the wheel

Martin

Why in the Hell Would You Want This Job?

D

uring the TIADA Award Ceremony at the annual conference last month President Phil Lathrop diverted from the preapproved script and recognized me for ten years of service with TIADA. I grew up in the generation just before the generation of kids who are used to getting participation trophies so I am always a little taken aback when recognized for doing my job. Being reared in a family full of high expectations and stingy with the praise has also made me who I am today. For better or worse I don’t always handle recognition very well. It goes without saying that I was honored to be recognized and moved by the warm response from the attendees. It had me thinking on the drive home of so many influential people who have helped me along the way, but I kept going back to my initial interview.

I didn’t have an opportunity to meet with the full board for an interview but instead met with Mark Brown and Bill Taylor on one occasion, they were serving as President and Chairman of the Board at the time, and Keith Hagler and Ron Morrison on a separate occasion. Keith was serving on the board and both were past presidents of the association.

After about an hour Keith and Ron wrapped up their questioning, but before we left Ron took a very serious tone and said, “I have one more question… why in the hell would you want this job, son?” In fairness I had spent most of the lunch telling Keith and Ron how much I liked the people I currently worked with and how I loved representing educators (the group I represented prior to TIADA) so it was a fair question. I mumbled something about looking for a challenge but I didn’t really have a great answer.

by Jeff

TIADA EXECUTIVE DIRECTOR

Like most dealers in this association I have gotten to know Mark, Bill, Keith and Ron very well over the last ten years and consider so many of you dear friends of mine. Because of those friendships I finally have answer to Ron’s question; I want to represent you. I didn’t know it that day but ten years later it’s pretty clear, the reason I want this job is because of you, the people who belong to this association. I owe so much to those four gentlemen who spoke on my behalf at the TIADA board meeting ten years ago that ultimately placed me here today.

TIADA has seen some phenomenal growth in the last ten years; our membership and our annual budget has doubled, we just hosted our largest conference ever and the association now owns a new significantly larger office building that is designed to see even more growth.

All this allows us to provide more services to you, our member. It has also given us the opportunity to increase our influence with legislators and policymakers and assures us a seat at the table when issues related to our industry are being discussed.

Over that time I have had the opportunity to work with some of the most talented, creative and professional staff members, committee members and board members a person could ask for. If I can be smart enough to stay out of their way in the future I expect they will continue to grow this association to levels we have never seen. Mark, Bill, Keith and Ron, thanks for believing in a 34-year-old kid ten years ago. And to everyone else, thanks for letting me stay along for the ride.

...ten years later it’s pretty clear, the reason I want this job is because of you, the people who belong to this association.

46

T e x a s

D e a l e r

September 2016

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

Benefits NEW PROFIT CENTER REDUCES EXPENSES

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

COLLATERAL PROTECTED

See what our clients are saying:

INCREASED CASH IN DEAL

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

Michael Brill, President B&B Automotive Inc.

INCREASED CSI FINANCED WITH CONTRACT FORMS REVIEWED BY OCCC

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

913.396.5480

*Substantial Discounts for TIADA Members

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

PRSRT STD

U.S. POSTAGE

PA I D

JEFFERSON CITY, MO

PERMIT NO. 210