Texas Dealer June 2019

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Also In This Issue: – Michael W. Dunagan on Privacy Notice Requirements for Car Creditors – TxDMV Board Continues to Evolve – Increase Your BHPH Cash Flow – How to Choose the Best DMS For You

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2019 TIADA Board of Directors PRESIDENT Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 jmsabillón@mitierraautosales.com PRESIDENT ELECT Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 stopdrive@texas.net CHAIRMAN OF THE BOARD Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 greg@dixonmotorcars.com SECRETARY Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 Office: 817.703.7973 mjones@mcmcauto.com TREASURER Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 ryan.winkelmann@sbcglobal.net VICE PRESIDENT, WEST TEXAS (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 bkalivoda@gofiestamotors.com VICE PRESIDENT, FORT WORTH (REGION 2) Eddie Hale/Neighborhood Autos 1717 US 287 Decatur, TX 76234 Office: 940.539.2272 ehale@neighborhoodautos.com VICE PRESIDENT, DALLAS (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 Office: 972.780.0001 greg@autoliquidators.net VICE PRESIDENT, HOUSTON (REGION 4) Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 Office: 281.354.3355 aokautosales@embarqmail.com VICE PRESIDENT, CENTRAL TEXAS (REGION 5) Robert Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 Office: 512.280.5333 bob@texasautocenter.net VICE PRESIDENT, SOUTH TEXAS (REGION 6) Armando Villarreal/McAllen Auto Sales 4215 S. 23rd Street McAllen, TX 78503 Office: 956.668.8088 armando@mcallenautosales.net VICE PRESIDENT AT LARGE Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 Office: 512.828.0001 greg@risingfastmotorcars.com VICE PRESIDENT AT LARGE Jose Engler/Irving Motor Corp 211 Braniff Dr. San Antonio, TX 78216 Office: 210.385.2568 pepeton2002@hotmail.com TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am - 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org

Volume XIX

/ Issue 6

/ J u n e 2 019

TexasDealer contents

5 Officers’ Message

by Greg Zak, TIADA Chairman of the Board

8 Legislative Bulletin 11 Legal Corner: A Review of Privacy Notice Requirements for Car Creditors

by Michael W. Dunagan

13 Upcoming Events 17 A New Road Ahead for TxDMV

by Texas Dealer staff

22 On The Cover: TIADA Conference and Expo 31 Want To Increase Your BHPH Cash Flow?

by Kenneth Shilson, CPA

34 TIADA Auction Directory 2019 37 Dealers’ 3 Biggest Problems and Solutions

by Sean Kelley

45 Local Chapters 45 New Members 46 Behind the Wheel

by Jeff Martin

2019 Conference Registration Now Open!

You can register to attend the 2019 TIADA Conference & Expo! Turn to page 22 for information or register online at Tiadaannualconference.com.

On The Cover: JW Marriott San Antonio Hill Country Resort & Spa, San Antonio, TX, home of the 2019 TIADA Conference and Expo, July 21–23, 2019.

Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

Editor: Christopher Bean

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

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officers’ message

by Greg

Stagnant, Flat or Down: Is This Your Business?

I

s your business stagnant?

Today it seems no matter which dealer I ask the proverbial question, “How’s your business doing?” I get the same answer. The response is always, “our business is flat or down a little.” This is the same answer from dealers all over the country, not just here in Texas. So, what has changed to make our business “flat” or “down?”

Are the customers no longer buying cars? Have our competitors taken over our market share? Has the market changed so much that everyone is buying new cars now? What is it? I’m sure we can all come up with an excuse to explain this shift.

Notice I said excuse and not reason.

Zak

ixon Motors D (Houston) TIADA CHAIRMAN OF THE BOARD

Let’s step back for a moment and evaluate our business. Do people still need a car to get from point A to point B? The answer is yes. Are people still buying cars? No need to answer that question. Do people still need to replace their cars? The average age of a car on the road today is 11.8 years old, so if you factor in average mileage of 12,000 per year, that would mean the average car has 141,000 miles on the odometer. So I think it’s safe to say cars need to be replaced. What about the economy?

The economy is the best it’s been in many, many years.

What is it that makes our business flat? The times have certainly changed in the last (cont’d on pg. 7)

If you want to see growth, you’ve got to put all your cards on the table. Look at every single detail in your business model and be willing to make a change.

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Officers’ Message (cont’d from pg. 5)

five to ten years. What have you done to incorporate change in your business?

Are you still running your dealership the same way you did 5, 10, 15 or even 20 years ago? In order to compete, you must evolve with the times. Businesses that do not incorporate change will inevitably lose market share to their competitors. If we all still ran our dealerships the way we did 10 years ago, we would be out of business.

These days, only 10% of our sales are made via drive by.

Ten years ago, that was not the case.

What have YOU done to distinguish your business from your competitors? Sometimes we need to take a step back and look at our business from the customer’s perspective. Personally speaking, over the last few years we have incorporated a number of changes to differentiate us from the guy down the street. We have an app through which our customers can make their payments. We have improved our website and upgraded the back end to achieve a quicker response time to online applications. As a result, our Google numbers and Facebook ratings have shown improvement. We have succeeded in adjusting our business model to appeal to a larger and more varied customer base.

All of this change came about after reviewing data to determine we needed to switch gears in order to maintain growth and market share. In our industry, if you keep doing the same thing you’ve always done, you will lose market share and your sales will decline. It’s a proven fact. The desires and demands of today’s customers are constantly changing. As a business, we need to keep up or be left behind.

Today, we often see customers whose primary form of transportation is Uber or Lyft. Who would have dreamed a decade ago that there

would be prospective customers whose only form of transportation is a taxi? Notice I said taxi and not Uber or Lyft. Neither of these entities existed a decade ago, but the fact of the matter is this: the mindset of today’s vehicle buyer is app-based.

There is an app for everything in life.

Your customers are now so digitally

What have YOU done to distinguish your business from your competitors?

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connected that they would not know how to survive without their phones telling them when to get up, or whether they had enough sleep last night. I’m not saying you must bow to their level of insanity with regard to technology, but you certainly must change and adapt your business if you want to reach today’s vehicle buyer.

If you want to see growth, you’ve got to put all your cards on the table.

Look at every single detail in your business model and be willing to make a change. Just know that not everything you change in your business is going to improve the bottom line or increase sales. To start, go out on a limb and change one thing, then measure the results in 90 days to see if improvement has been achieved.

Sometimes improvement takes longer than 90 days to measure accurately, but be committed to overall improvement of the bottom line.

One thing I know for certain: in today’s environment, your business will become stagnant and your sales will stay flat, or decline, unless you are open to change. Do not fall into this trap or else you’re going to look up one day and ask yourself, “What happened to my business?”

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legislative bulletin

B

Martin

y the time you are reading this bulletin, the 86th regular legislative session will have ended and legislators will have returned to their home districts. We will not know the true outcome until 30 days after the session ends; the Governor has the option to veto bills during that time. We will offer a complete update during the annual conference on July 22 in San Antonio, TX and we will start planning for the 87th session — we hope to see you there.

Below you will find an update on a few key bills we have been watching over the last six months.

STATUS: TIADA testified in favor of this bill April 17

HB 259 (Thompson, Ed) This bill would require

STATUS: TIADA member Mark Jones from Burleson

insures who sell named-driver-only policies specifically name each excluded driver in such policies. TIADA

supports this bill.

STATUS: TIADA signed in favor of this bill during the

public hearing. It was voted out of the House Insurance Committee 8–0 on March 26. The bill picked up numerous authors and coauthors and was voted out of the House April 17, with 124 Yeas and 15 Nays. On May 9th Robert Beck from Stop N’ Drive Motors in San Antonio testified in favor of the bill before the Senate Business and Commerce Committee. Eleven days later the bill passed out of the Senate and is going to the Governor’s desk.

HB 3059 (Holland) This bill would eliminate the VTR-136 and allow dealers to make title application in any county in Texas. TIADA supports this bill.

STATUS: TIADA member Erika Blankenship from

Austin testified in favor of this bill on March 26 before the House Transportation Committee. It was voted out of committee 8 – 2. This bill ran into significant opposition from the rural county legislators and the bill was postponed indefinitely.

HB 3225 (Springer) This bill proposes to amend

the Tax Code and reduce the penalty from $500 to $100 for failure to file the monthly vehicle inventory tax. It also strikes the word “shall forfeit” and replaces it with “may be required by the collector to pay” in an effort to give tax assessors more latitude. TIADA supports

this bill.

8

by Jeff

before the House Ways and Means Committee. The bill passed out of the House. On May 17 it was heard and passed out of the Senate Finance Committee. The bill is currently sitting on the Senate calendar hoping time doesn’t run out.

HB 4120 (Lucio III) This bill would allow a motor

vehicle dealer to be the provider of service contracts on vehicles sold by the dealer if the dealer has a security deposit not less than $25,000. TIADA supports this bill. testified in favor of this bill on April 9 before the House Licensing & Administrative Procedures Committee. The bill was voted out of Committee 10–0 and later out of the house. After some with TDLR to adjust the security deposit amounts it was referred to the Senate Business and Commerce Committee where it was heard and voted out the third week in May.

HB 1087 (Kuempel) SB 2240 (West) As

proposed, these bills would allow a metal recycler, salvage vehicle dealer or used automotive parts recycler to purchase a vehicle without obtaining a title to the vehicle as long as the vehicle is at least 10 years old and is purchased solely for parts, dismantling or scrap. TIADA worked with the author of the bill to amend the language so that a metal recycler, salvage vehicle dealer or used automotive parts recycler could purchase a vehicle without obtaining a title to the vehicle as long as the vehicle is at least 12 years old, has not been subject to a lien in the last seven years and is purchased solely for parts, dismantling or scrap.

STATUS: This bill as amended is waiting to be heard on the House floor.

Your best source of up-to-the-minute information on legislative issues that will affect your industry is the Legislative Action Center, found under Advocacy at the TIADA website, www.txiada.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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legal corner

A Review of Privacy Notice Requirements for Car Creditors

W

e all get them from time to time. They come with our insurance premium notices, in our bank statements, and in our credit card bills. They are innocent-looking pieces of paper that most likely go right to the trash can.

“They” are privacy notices, the formal notices from banks, insurance companies, and credit card companies, amongst others, informing us what the companies’ policies are with regard to exchanging our personal information with other companies. In most cases, we are given the opportunity to “opt out” of some of the sharing practices, by filling out a portion of the form and returning it to the issuing company.

One thing all these companies have in common is they fall within the definition of “financial institution” that appears in the GrammLeach-Bliley Act (G-L-B) and the FTC’s Privacy Rule. And, at least one thing that many car dealers have in common with the big boys of the financial world is that they too are often deemed to be “financial institutions” under the very expansive definition.

The Privacy Rule applies to car dealers who (1) extend credit in connection with the purchase of a car for personal, family, or household use (typically a BHPH transaction), or (2) arrange for someone to finance or lease a car for personal, family, or household use (typically an indirect lender transaction).

There are two occasions when privacy notices are generally required to be given: (1) no later than when a retail installment contract is signed,

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and (2) annual follow-up notices to customers whose accounts are active.

A 2015 amendment to the Privacy Act, as explained below, exempts many BHPH dealers from having to send annual follow-up notices.

Here’s how the rule applies to different types of dealer sales:

Cash Sales

The Privacy Rule does not apply on a cash sale or sale in which the buyer arranges financing on his or her own directly through a lender.

No privacy statement has to be given by the dealer in these situations.

Buy-Here-Pay-Here Transactions

While they technically fall under the requirements of the G-L-B and the Privacy Rule, BHPH dealers are not the main target of the rule’s requirements. The central thrust of G-L-B and Privacy Rule is to limit sharing of personal information (name, address, phone number, driver’s license number, and social security number, for instance) with unaffiliated third parties. BHPH dealers (unlike banks, insurance companies, and credit card companies, and maybe franchised dealers) typically don’t sell customer lists or otherwise share customer information with third parties. When they do share personal information with third parties, the sharing most often falls under one of the exceptions to the Privacy Rule (as explained below).

Pre-sale

A BHPH dealer who does not share personal information with

by Michael

Dunagan

W.

TIADA GENERAL COUNSEL

third parties, except under the exceptions discussed below, would not be obligated to give a privacy notice to a potential buyer until the person actually entered into a contract. If the dealer intends to share personal information with third parties beyond the allowed exceptions, it would be necessary to give a privacy notice with an opt-out provision upon the receipt of personal information.

Post-sale

If a BHPH transaction is completed, the dealer would have to give the appropriate privacy notice, no later than the time of the signing of the retail installment contract. And, prior to December 4, 2015, BHPH dealers were required to send annual follow-ups of privacy policies to each customer with an open account.

As will be explained below, many BHPH dealers are now exempt from sending the annual follow-up.

Retail or Indirect Transactions

Because at the time of signing the dealer is listed on the retail installment contract as the seller and creditor, the same rules as those that apply to the BHPH dealer would apply here. That is, a privacy notice would have to be given no later than the time of the signing of the retail installment contract, even though the dealer intends to assign 11

the contract immediately afterward to a third party.

After the assignment to the third party takes place, any responsibility for sending the annual notices shifts to the assignee of the contract, and the dealer is relieved of that duty.

However, the dealer must continue to honor the terms of the privacy policy with regard to protecting the personal information of the debtor.

Third-Party Lenders

Once a third-party lender takes assignment of a retail installment contract, the third-party lender must deliver its privacy notice to the customer within a reasonable time after assignment. The third-party lender can, however, arrange to have the dealer deliver the third-party lender’s privacy notice at the same time the dealer gives its notice. And, as mentioned above, the third-party lender, as the owner and holder of the obligation, must comply with the annual notice requirements.

Turn-downs

If the dealer denies the extension of credit to an applicant, and has no intention of sharing this person’s information, then no privacy notice is required. (However, an Adverse Action Notice under the Equal Credit Opportunity Act and Regulation B is probably required, but that’s a topic for another article).

The Opt-Out Notice

Most financial institutions give their customers the long-form privacy notices that disclose to whom, under what circumstances, and which types of personal information might be shared with unaffiliated third parties. If they intend to share personal information that is not exempt under the exceptions to the Privacy Rule, they must give their customers the opportunity to opt out of having certain types of information shared.

The opt-out is usually exercised by sending in a tear off coupon or calling a toll-free number.

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Since most BHPH dealers don’t share personal information outside the allowable exceptions, the giving of an opt-out is usually not required, since there is nothing for the customer to opt out from. Therefore, the BHPH dealer (and other “financial institutions” that don’t share personal information with unaffiliated third parties) can use simplified shortfrom privacy policy forms that don’t have opt-out language.

The Exceptions

Much has been said to this point about the exceptions to the Privacy Rule and how exchange of personal information under an exception doesn’t constitute a violation of the Privacy Rule or trigger the requirement of giving an opt-out opportunity. What are the exceptions that allow the sharing of information?

The most common type of sharing

of information by BHPH dealers is the information given to collectors and repossession agents to locate debtors and repossess vehicles when a debtor is in default. This information can be shared under an exception to the opt-out rules for third-party vendors, as long as only information necessary to carry out the purpose of the sharing is given, and as long as the third-party vendor agrees in writing (1) not to pass the information along to a third party and (2) to protect the information and properly dispose of it when it is no longer needed.

Another common exception is the

“secondary market sales” exception that allows the holder of a car receivable to pass on personal information to a third party in conjunction with the sale or assignment of the receivable to a third party without violating the Privacy Rule or triggering the opt-out requirement.

Credit information given to

credit reporting agencies is also exempt. That is, a creditor who routinely reports credit information to a credit bureau is not considered to be sharing or trading

personal information.

Personal information can also le gally be given to law enforcement officers, or otherwise to comply with federal, state or local laws.

Some due diligence should be exercised to verify that the person requesting the information is in fact a law enforcement officer.

Information can be shared at the

request of and with the permission of the debtor (such as payoff information requested by a bank or dealer taking a vehicle in trade), or to comply with a subpoena, or a civil, criminal or regulatory investigation.

The Short-Form Privacy Notice

Dealers who don’t share customers’ personal information with third parties, other than under the exceptions

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September 2019 09

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October 2019 07

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described above, can use a simplified, short-form notice form. The simplified notice describes the categories of nonpublic personal information collected; states the fact that the creditor does not share nonpublic personal information about customers to third parties, except as authorized by law; and describes the steps taken to protect the privacy and security of the information. No opt-out provision is necessary. A form that meets this requirement is available from Burrell

Printing (800-531-5234). The Burrell short form comes in duplicate with a signature line to acknowledge receipt.

One copy is given to the debtor at the time of closing and the other should be kept in the dealer’s file. Some dealer management software programs also have short forms available.

Many BHPH dealers use the long form privacy notice with a customer opt-out provision even though they don’t share information outside of the allowable exceptions. While

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there is nothing improper with doing so, use of the long-form notice triggers the need to send annual follow-up notices.

The Annual Follow-Up

Under the law and rules that existed prior to December 4, 2015, all “financial institutions” were required to send annual follow-up notices (often just a copy of the original privacy notice given at closing) to customers with open accounts. After that date, those creditors who qualify for the shortform notice, and who don’t change their privacy policy during the year, are now exempt from sending the annual follow-up. Creditors who don’t qualify for the short-form notice and must use a “long-form” notice that has an opt-out option are still required to send annual follow-ups.

Here’s the bottom line for BHPH dealers after the Privacy Act was amended: Dealers who only share customers’

personal information under the allowable exceptions to the Privacy Act can use a short-form privacy disclosure statement at closing.

Those dealers who qualify for

the short-form statement, and who do not change their privacy policies during the course of the year, have no obligation to send annual follow-ups.

Dealers who share customers’

personal information beyond the exceptions with third parties, and are thus required to use the long-form disclosure statement with an opt-out, are still required to send annual followups to customers who have open accounts with the dealer.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 40 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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feature

by Texas Dealer staff

L

ast month Texas Governor Greg Abbott appointed four new members, Stacey Gillman, Tammy McRae, Charles Bacarisse, and Shelley Washburn to serve on the Texas Department of Motor Vehicles’ board of directors. He also appointed current board member Guillermo “memo” Trevino to serve as chairman of the board.

Via email, the Texas Dealer had the opportunity to visit with some of the new appointees about the future of the TxDMV board, the agency, and the industry in general.

Newly-appointed TxDMV board members L-R: Stacey Gillman, Tammy McRae, Charles Bacarisse, Shelley Washburn

STACEY GILLMAN

Stacey Gillman, of Houston, is president of Gillman Companies. She has been a dealer for 25 years, which includes 10 dealerships in four cities in Texas representing 11 new car franchises. She is past chairman of the Texas Automobile Dealers Association, Houston Automotive Dealers Association, and the National Dealer Council of Subaru of America.

She is on the board of St. Luke’s United Methodist Church, 1st Tennessee Bank and Buffalo Bayou Partnership in Houston. She was appointed by Governor Perry to serve on the Economic Development Committee. Gillman attended the University of Texas, General Motors Dealer Management Program and National Automotive Dealer Association Dealer Candidate Academy.

Stacey Gillman was appointed in March 2019 by Governor Abbott for a term to expire on February 1, 2025.

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TAMMY McRAE

Tammy McRae of Conroe is the Tax Assessor-Collector for Montgomery County. She serves as vice president of the Tax Assessor-Collectors Association of Texas, member of Texas Association of Assessing Officers, Texas School Assessors Association, Texas Association of Appraisal Districts, and Government Finance Officers Association.

McRae received certification from the Tax AssessorCollectors Association of Texas and the Board of Tax Professionals & Examiners of Texas. In addition, she is active in numerous community activities and clubs. She is appointed for a term to expire February 1, 2025.

WHAT PRIORITIES WOULD YOU LIKE TO SEE THE TxDMV BOARD ADDRESS IN THE SHORT TERM?

Review and address the technology issues that affect the Registration and Titling System (RTS), which causes outages and disrupts the tax office’s ability to service our 17

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mutual customers. It’s incumbent on the board that we make sure the agency is meeting its #1 goal — customer service — in the most efficient, effective way.

I KNOW THERE ARE A NUMBER OF BIG ISSUES THE AGENCY WILL BE ADDRESSING IN THE NEAR FUTURE. HOW DO YOU HOPE TO ADDRESS THEM?

As a board, we are not responsible for the management of the agency. However, we are responsible for oversight — specifically policy-making functions of the agency.

We must have a sufficient grasp of the business processes and risks in order to make informed business decisions.

I think that task can be best accomplished by creating advisory committees to include representatives from all stakeholders to assess the current processes, discuss and vet ways to implement changes when necessary with the least amount of risks to all involved.

WHAT DO YOU SEE AS THE ROLE OR RESPONSIBILITY OF A STAKEHOLDER LIKE TIADA?

TIADA, like many of our other stakeholder groups, is a resource that can be used to help in the success and progression of the agency. TIADA’s members are on the front lines helping customers every day. Much like county tax assessors, they have first-hand knowledge of how rules and laws work in real-life settings. Their input to agency policies and rules not only help streamline operations, but also make doing business with TxDMV and our partners a pleasurable experience for motoring Texans. The role and responsibility of TIADA is to also work hand-inhand with this agency to ensure the continued education and mutual support of all stakeholders as it pertains to dealers, counties and TxDMV.

CHARLES BACARISSE

Charles Bacarisse of Houston is vice president of major gifts at Houston Baptist University. He is a board member of the Association of Fundraising Professionals — Houston Chapter and a board member of the Texas Department of Information Resources. Bacarisse served for 13 years as the District Clerk of Harris County and is a former board member of the County and District Clerks Association of Texas, Neighborhood Centers Inc. and Downtown Houston Association. Bacarisse received a Bachelor of Arts and Bachelor of Fine Arts from Southern Methodist University.

He is appointed for a term to expire February 1, 2025.

WHAT PRIORITIES WOULD YOU LIKE TO SEE THE TxDMV BOARD ADDRESS IN THE SHORT TERM?

We will need to see what the Legislature passes and sends to the governor, and ultimately what becomes June 2019

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law. Those legislative mandates will be our first set of priorities.

I KNOW THERE ARE A NUMBER OF BIG ISSUES THE AGENCY WILL BE ADDRESSING IN THE NEAR FUTURE. HOW DO YOU HOPE TO ADDRESS THEM?

I am thankful to be part of a very strong, talented and engaged board under Chairman Trevino’s leadership. I believe the culture of TxDMV is healthy and has a customer-centric focus. We will need to support and constructively work with Ms. Brewster, our executive director, and her team to set goals and priorities that will guide the TxDMV staff in their work. The board is there to ensure these things happen.

WHAT DO YOU SEE AS THE ROLE OR RESPONSIBILITY OF A STAKEHOLDER LIKE TIADA?

I think your mission statement on the website says it very well. You “are a member-owned, membergoverned association that consists of more than 1400 of the best used car dealers in Texas that believe in creating a better image for the industry while protecting our rights as business owners.” The TxDMV Board wants to work collaboratively with all who have an interest in transportation in Texas — because it’s central to our economy. I believe we will continue to work with and listen to TIADA members and all stakeholders to keep Texas moving.

SHELLEY WASHBURN

Shelley Washburn is the President of GSM, a company specializing in developing marketing solutions for automotive manufacturers and dealers. In this role, she has transformed the culture and the business model of the company — advancing it from a traditional marketing agency and cultivating it into a dynamic marketing technology company. Before becoming president of the Houston, TX-based GS Marketing in 2014, Shelley held multiple leadership positions during her 15-years with the company. Formally, she was the Vice President of Sales and Marketing, and the Vice President of Account Services.

Shelley has over 25-years of diverse automotive experience, including sales leadership, marketing, strategy, process reengineering and strategic account management.

She began her career with Ford Motor Company. From there, her experience expanded into the retail automotive arena at a Lincoln-Mercury dealership. In 1998, she joined MSX International where she led a dealer process improvement consulting team. Shelley joined Gulf States Toyota in 2001.

Her vast experience gives her a unique perspective into the needs of her clients. She has a BBA from the 19

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University of Texas and attended the NADA Dealer Candidate Academy.

Shelley possesses a passion for mentoring women and encouraging their professional growth. In the past, she was the founding member and former president of the Dallas Chapter of the Automotive Women’s Network. Giving back to the community is an equally important passion to her. She now sits on the Executive Board of Child Advocates of Houston and is also a leader of the United Way Women’s Initiative of the Friedkin Companies.

In 2015, Shelley was named one of the Top 20 Business Women in Houston by the National Women’s Council. She was appointed to the TxDMV Board for a term to expire February 1, 2021.

automotive, marketing, and tech industry, I will work to provide insight and industry knowledge to the board and staff. I will also seek input from stakeholders to ensure that the decisions we make are what is best for the people of Texas.

WHAT DO YOU SEE AS THE ROLE OR RESPONSIBILITY OF A STAKEHOLDER LIKE TIADA?

TIADA is an important stakeholder that works to ensure that

the board and staff are informed about how issues that we address may impact independent auto dealers in Texas and their customers. It is important that we understand the issues and any potential consequences to our customers or stakeholders before we make a policy decision. Stakeholders like TIADA are a very important part of this process.

WHAT PRIORITIES WOULD YOU LIKE TO SEE THE TxDMV BOARD ADDRESS IN THE SHORT TERM?

In the last several years, TxDMV has made significant steps to modernize technology and streamline processes that have improved our level of service to our customers, the people of the state of Texas.

Customer satisfaction remains a high priority for the agency and the board. I would like to see us continue to update our systems and our processes to become an even better partner to our customers.

I KNOW THERE ARE A NUMBER OF BIG ISSUES THE AGENCY WILL BE ADDRESSING IN THE NEAR FUTURE. HOW DO YOU HOPE TO ADDRESS THEM?

TxDMV is just completing the Sunset process. We are developing and implementing action plans based on the recommendations of the Sunset Commission and directives from the Texas Legislature that will help us better serve Texans.

TxDMV has always been an agency dedicated to customer service, consumer protection and the success of the motor vehicle-related industries in Texas. With my varied background and experience in the June 2019

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respected voices

Some of the most in the industry will tell you TIADA puts on the be are we to argue? Come find out for yourself in San Antonio at the premiere industry ev

The best dealers in Texas, the best education anywhere.

July 21–23, 2019 JW Marriott San Antonio Hill Country Resort & Spa 22

T e x a s

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June 2019

early bird SPECIAL

595

$

495

$

REGISTER BEFORE JUNE 21 AND SAVE!

Online

est dealer conference in the country. Well, who event of the year, the TIADA Conference & Expo.

www.TiadaAnnualConference.com/register

Phone 512.244.6060 Call today to receive the discounted hotel rate.

210.276.2500 Hotel Rooms Only $215 + $5 resort fee If you make reservations before June 21.

This hotel will SELL OUT, hotel accommodations must be made directly with the hotel.

Call 210.276.2500 today to receive the discounted rate.

June 2019

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23

L E A R N I N G tracks SESSION 1

BHPH THE LIENHOLDER’S LEARNING LAB

COMPLIANCE PROTECTING THE BOTTOM LINE

TECHNOLOGY DIGITAL WEAPONS FOR MEASURABLE SUCCESS

Tracking and Improving BHPH Portfolio Performance Jim Rhoads Octane Group

DMV Called: What Do I Do Next?

Corrie Thompson Texas Department of Motor Vehicles

4 Strategies for a Full Funnel Dealership Marketing Approach on Facebook’s Family of Apps and Services Amanda Flippin Facebook

MANAGEMENT MASTER MOTIVATORS SHARE THEIR SECRETS

The Lean Dealership. Startup Principles Your Dealership Can Leverage Zach Klempf Selly Automotive

SPECIAL FINANCE & RETAIL WINNING THE INDIRECT LENDING GAME

24

Retail Inventory KPI’s, Best Practices and Time 2 Line Justin Osburn NIADA

Monday morning

TAILOR YOUR EDUCATION : SESSION 2

Underwriting Is the Key to the Success of Your BHPH Business. Make It a Team Effort Bill Elizondo

MIX AND MATCH FROM 5 TRACKS OVER 5 SESSIONS SESSION 3

SESSION 4

Collectors on Collecting: Time to Get Paid

Finding the Right Financial Partner for BHPH

Collections Panel Discussion

Subprime Analytics

Ken Shilson

AFS Dealers

Repossessions: It’s the #1 Compliance Question…

Every Year!

OCCC Essentials Huffman Lewis

Spotting Document Fraud Sgt. Darren Schlosser

Office of Consumer Credit Commissioner

Houston Police Department — Auto Theft Division/ Vehicle Fraud Unit

Kate Frost

Best Practices & Strategies for Growing Your Dealership with Video

Kate Frost, Inc.

Jason Price

Cut Your Runaway Digital Marketing Spending – Inspecting and Improving Your Paid Search, Social Media, and 3rd Party Classified Advertising George Nenni

Michael W. Dunagan Jameson & Dunegan, P.C.

It’s Google’s World – We Just Live Here

Covideo

Coach Digital Tech into Your Dealership’s DNA: How to Get Buy-in and the Full Potential Out of Your Tools

Winning with Hispanics: Your Sales Growth Opportunity

Sean Kelley & Paul Sansone

Univision

Sara Hasson

Generations Digital

Auction Today and in the Future: It’s Still About the Relationship Auction Panel Discussion

CarMotivators.com

Coffee is for Closers Erikka Tiffany

Jim Ellis Audi Marietta

The Way Car Buyers Choose Dealerships Has Changed, What Are You Doing to Be Competitive?

Ian Cruickshank Leadbox, Inc.

Monday afternoon

Real Talk with Three National Rock Stars of Special Finance & Retail Retail Panel Discussion

25

KEYNOTER SESSION 5

BHPH Unplugged

Tim Decker Portrait Of Change: Innovative Or Irritating

National Dealer Panel

Reduce Your Risk on Credit Reporting

Prepare to be informed and entertained as worldrenowned speed painter Tim Decker brings his high energy, fast-paced speed painting to TIADA.

Richard Hudson Ignite Consulting

Human-Centered Search Strategies: Explore How Consumers Search and Develop a Framework to Deliver Content That Resonates Jason Dodge

This outside the box presentation has a powerful message that will motivate and amaze as Tim whips up masterpieces in minutes.

He is not your ordinary keynote speaker.

BlackTruck Media & Marketing

How Harvard Transformed My Approach to Dealership Profitability George Magda Enterprise Dealer Partnerships — Manheim

Nothing Works Without Money Acquiring Capital Panel Discussion

Tuesday morning

Tim delivers an experience as he blends music, humor, and audience interaction all while creating giant portraits of legendary icons within minutes. A high energy keynote will set the tone for you and your staff to have a great conference.

Thank You

TO

P L A T I N U M

G O L D

W Walker Auction Group

L I M I T E D S P O N S O R S H I P & E X H I B I T I N G O P P O R T U N I T I E S AVA I L A B L E

OUR

Sponsors

CURRENT MULLEN Insurance Agency, Inc.

S I L V E R

S P E C I A L T Y

ACV AuCtions – Happy Hour ADEsA – Hotel Key Cards BACklot CArs – Happy Hour AmEriCA’s Auto AuCtion – Special Membership iAA – Welcome Reception mimiC – Guest Room Mirror Cling PrimAlEnD CAPitAl – Meeting Digital Signage trADErEV – Dealer Networking Excursion V12 softwArE – Lanyards B R O N Z E 1st Adjusters

A N D

C O P P E R

700Credit

Advantage GPS by ProCon Analytics

Alliance Auto Auction

ALLDATA

AUL Corporation

AutoRaptor

Calhoun Law Firm, PLLC

Calldrip

First Texas Auto Credit Lobel Financial

Dealerwebb Services

MagiLoop

MicroBilt

Ominique Shop Management Preferred Warranties, Inc. Secure Close

SpinCar TrueCar

KBB

PTS Gap

United Acceptance, Inc.

Dr. Colorchip Keymotive, Inc.

Pep Boys

Randi Long Insurance Services

Westlake Financial Services

Verifacto

Birdeye DealerCenter

El Paso Independent Auto Auction Kevin Smith’s Tri State Dealer Services NEO Podium

NextGear Capital Preferred Dealer Solutions

Route One

SareKon GPS

Shilson Goldberg Cheung & Associates, LLP

Tax Refund Services-Tax Max vAuto

AutoZoom

CAR Financial Services

NASA Searchlight Manufacturing

SDA, Inc.-Small Dealers Assistance, Inc.

Strategic Dealer Services

CarFax

PayNearMe, MT, Inc.

AGORA Data Inc.

AutoNation Auto Auction – Houston

Avis Dealer Direct

Car Care Promotions Inc.

Ignite Consulting Partners

AFS Dealers

AutoAction DMS

Auto Master Systems, Inc.

Dealer Online Marketing Group

OfferUp

Auction123

AFC

TexasARP

VSC Auto Finance LLC

Tribute Capital Partners Wayne Reeves Software

Williams & Stazzone Insurance Agency, Inc.

C O N TA C T PAT T Y H U B E R AT PAT T Y. H U B E R @ T X I A D A . O R G / 5 1 2 . 3 1 0 . 9 7 9 5 26

T e x a s

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June 2019

Win

$10,000

with Special Membership

It’s time for our Special Membership fundraiser and one lucky participant will win the Grand Prize of $10,000! This year we will have an additional drawing for a 2008 Yamaha YFZ 450X All-Terrain Vehicle. The drawings will be held at the TIADA Annual Conference and Expo on July 23rd. You do not need to be present to win but we hope to see you there!

Hit the trails with this advanced sport AT V! For every three (3) Special Membership tickets you purchase at $100 each, you will have one entry into the bonus drawing.

Thank you to our local chapter sponsors:

DCADA FWIADA SAIADA For more information visit www.txiada.org/special_membership Grand Prize Drawing Sponsored by

Buy your tickets online at WWW.TXIADA.ORG/special_membership

For any questions contact us at June 2019

T e x a s

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512.244.6060 or info@txiada.org

27

Dealer Registration Options 2019 TIADA Annual Conference & Expo July 21-23, 2019 JW Marriott Hill Country Resort – San Antonio, TX Customize your conference experience by selecting from the options below. Please complete the registration form and return it with payment in full to the address listed or for online registration, go to www.TiadaAnnualConference.com.

EARLY BIRD RATE

CONFERENCE OPTIONS

through June 21st

Register by June 21st,

Full Conference Pass—Dealers Only (includes Welcome Reception, Monday & Tuesday Education /Sessions, Expo Hall, Legislative Luncheon & Awards Dinner)

1st Registrant 2nd Registrant* 3rd + additional Registrant*

Save $100 per attendee.

$595 $495 $495 $395 $395 $295

One Day Dealer Pass

$300 $400 non-members

(Monday 7/22 or Tuesday 7/23) (includes Monday or Tuesday Education and Expo Hall on your selected day)

Non-Member (Dealers only)

$895 $795 (except as noted)

TADA and out-of-state IADA members are eligible for TIADA member rate (coupon code required)

Session Recordings

$99 $399

With Conference Registration Regular (Non-attendees)

Special Membership Ticket—Win $10,000 Each $100 membership donation enters you in the $10,000 drawing to be held at the Conference. You need not be present to win!

$100/each

Sponsored by America’s Auto Auction *Registrants must be from same dealership to receive discounted rate

Hotel Accommodations

Discounted guestrooms are available for $215/night plus $5 discounted resort fee for TIADA Conference attendees.

Please contact the hotel directly to book your room. Must be reserved on or before June 21st to receive discounted rate.

JW Marriott Hill Country Resort / 23808 Resort Parkway / San Antonio, TX 78261 Call 210.276.2500 or book online TiadaAnnualConference.com/jwmarriott-hillcountry.com 28

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June 2019

Dealer Registration Dealership: ______________________________________________________ Phone: ____________________ Address: ________________________________________________City/ST/Zip: ______________________  BHPH Dealer

 Primarily Retail Dealer

REGISTRANT DETAILS

REGISTRANT DETAILS

1st Registrant 1st TIME ATTENDEE? Yes No

2nd Registrant 1st TIME ATTENDEE? Yes No

Name: __________________________________________________ Name for Badge: _________________________________________ Title: ___________________________________________________

Name: __________________________________________________ Name for Badge: _________________________________________ Title: ___________________________________________________

Email:__________________________________________________  FULL CONFERENCE ($495 Early Bird through 6/21)  ONE DAY PASS ($300) Circle Preferred Day MONDAY TUESDAY  Expo Hall Guest Wristband (10 & older) ($99 x ____)  Addt’l. Awards Dinner Ticket (10 & older) ($50 x ____)  Tuesday Dealer Excursions* ($10 x ____)  River Boat Tour  Salsa/Guacamole Makin’  Painting with a Twist  Rebecca Creek Distillery

$____ $____ $____ $____ $____

Email:__________________________________________________  FULL CONFERENCE ($395 Early Bird through 6/21)  ONE DAY PASS ($300) Circle Preferred Day MONDAY TUESDAY  Expo Hall Guest Wristband (10 & older) ($99 x ____)  Addt’l. Awards Dinner Ticket (10 & older) ($50 x ____)  Tuesday Dealer Excursions* ($10 x ____)  River Boat Tour  Salsa/Guacamole Makin’  Painting with a Twist  Rebecca Creek Distillery

$____ $____ $____ $____ $____

2nd Registrant Subtotal $_____

1st Registrant Subtotal $_____ 3rd Registrant 1st TIME ATTENDEE? Yes No Name: __________________________________________________ Name for Badge: _________________________________________ Title: ___________________________________________________ Email:__________________________________________________  FULL CONFERENCE ($295 Early Bird through 6/21)  ONE DAY PASS ($300) Circle Preferred Day MONDAY TUESDAY  Expo Hall Guest Wristband (10 & older) ($99 x ____)  Addt’l. Awards Dinner Ticket (10 & older) ($50 x ____)  Tuesday Dealer Excursions* ($10 x ____)  River Boat Tour  Salsa/Guacamole Makin’  Painting with a Twist  Rebecca Creek Distillery

$____ $____ $____ $____ $____

3rd Registrant Subtotal $_____ Need to register more staff? Call us at 512.244.6060

Payment Information

A LA CARTE OPTIONS TUESDAY DEALER EXCURSIONS*

May select one (1) excursion per dealer registrant; may bring one (1) guest over the age of 21 years old. Some excursions may sell out! For offsite excursions, buses depart at 3p. *For more info, visit www.TiadaAnnualConference.com/dealer-networking.excursions/.

SESSION RECORDINGS+  $99 with Conference Registration  $399 Regular (Non-attendees) +Approximately

$____ $____

20 hours of recorded breakout sessions

SPECIAL MEMBERSHIP TICKETS $100 X _____

$____ A la Carte Subtotal $_____

Total Amount Due $ ____________

 Make check payable to TIADA.  TIADA is hereby authorized to execute payment to the following credit card:

 AMEX

 Visa

CC Number__________________________________________________________________Exp. Date ____________

 MC

 Discover

SVC _________

Name on Card_________________________________________________Authorized Signature_______________________________________ TIADA | 9951 Anderson Mill Rd, Suite 101; Austin, TX 78750 Phone 512.244.6060 | Fax 512.244.6218 | conference@txiada.org June 2019

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THANK YOU JUNE IS OUR MONTH TO SAY

THIS MONTH

20 LOANS WILL BE FORGIVEN* This June, we’re celebrating you! To show appreciation to our clients, each week we’re awarding a loan forgiveness to five dealers plus offering a chance to win a

custom golf cart.

Floor plan any vehicle during the month of June 2019 either in-lane or online to be entered to win! Prizes will be drawn weekly.

For details, visit nextgearcapital.com/thankyou *The June 2019 Thank You Sweepstakes (“Sweepstakes”) is organized by NextGear Capital, Inc. (“Sponsor”). An “Eligible Dealership” is a dealership that: (i) has a valid AuctionACCESS dealership number; (ii) are not excluded dealerships as described below; (iii) are in good standing with Sponsor, if applicable, throughout the entire Sweepstakes Period; and (iv) are located in the fifty (50) United States, the District of Columbia, and Puerto Rico. An Eligible Dealership may enter the Sweepstakes by floor planning vehicle(s) on the Eligible Dealership’s line(s) of credit with Sponsor during the Sweepstakes Period (“Flooring Entry”). Subject to verification of eligibility and compliance with these official rules, each Flooring Entry will count as one (1) eligible entry and will be identified by the Vehicle Identification Number (VIN) for the vehicle that was floored. Eligible Dealerships also may enter the Sweepstakes without making a purchase. To do so, complete all required information on the official Sweepstakes entry form, which entry form can be found at www.nextgearcapital.com/thankyou and completed and submitted electronically (“Form Entry”). An Eligible Dealership may submit multiple Form Entries. Subject to verification of eligibility and compliance with these official rules, each completed Sweepstakes Entry Form will count as one (1) eligible entry. Limit of thirty (30) total entries per Eligible Dealership, which can be comprised of any combination of Flooring Entries or Form Entries. The Sweepstakes will begin on June 1, 2019 at 12:01 a.m. ET and end on June 30, 2019 at 11:59 p.m. ET (“Sweepstakes Period”). Four (4) separate drawing sessions for the Sweepstakes will be held on June 10, June 17, June 24 and July 1, respectively (collectively “Drawings”, each individually a “Drawing”). With each Drawing, each valid Sweepstakes entry that has been received by Sponsor as of 11:59 p.m. ET the day before the Drawing will be assigned a random number

by Sponsor. Sponsor then will use an online number generator to randomly select six (6) distinct numbers without duplicates. The randomly selected numbers then will be used to identify the corresponding valid Sweepstakes entries from the total pool of valid Sweepstakes entries in the order in which the numbers were randomly selected. The random selections will be made by Sponsor. With each Drawing, a total of six (6) prizes will be awarded in the following order: (a) the first five (5) eligible Sweepstakes winners each will win one vehicle loan forgiveness in an amount up to $10,000 or alternate, random monetary award (total value of a maximum of $10,000.00), as set forth below; (b) the next (sixth) eligible Sweepstakes winner will win a customized golf cart (valued at $6,700). Each of the twenty (20) winners during the Sweepstakes (five each Drawing) who win the loan forgiveness prizes, each valued at up to $10,000 or alternate monetary award, will receive their respective prize as follows: (1) if the randomly selected entry was a Flooring Entry with an original financed amount of $10,000.00 or less, that entry is connected to the specific VIN of the vehicle floored and the unpaid balance for that specific unit will be forgiven up to $10,000.00, with funds applied to the outstanding principal balance first, (2) if the randomly selected entry was a Flooring Entry with an original financed amount of $10,000.00 or less that already has been paid in full at the time of the respective Drawing, an amount equal to that unit’s original financed amount will be credited to the Eligible Dealership’s account with Sponsor, and (3) if the randomly selected entry was a Flooring Entry with an original financed amount of greater than $10,000.00, or if the randomly selected entry was a Form Entry, a random number will be assigned to each $500 increment from $1,000 to $10,000 (a total of 19 increments), an online number generator will be used to randomly select one of those 19 numbers to determine the corresponding dollar value won, and the winner will obtain those funds in the form of a check made payable to the Eligible Dealership’s legal name on file with Sponsor. The six (6) randomly-selected Sweepstakes winners in each Drawing will be notified by phone or email within one (1) calendar week of the respective Drawing. Sponsor reserves the right, in its sole discretion, to identify the Sweepstakes winner(s) on Sponsor’s website. Only six (6) Sweepstakes prizes will be awarded with each Drawing for a total of twenty-four (24) Sweepstakes prizes. Odds of being selected as a Sweepstakes winner will depend on the number of valid Sweepstakes entries. Total approximate cash value of the Sweepstakes prizes in each Drawing is up to $56,700.00. Total approximate cash value of the total Sweepstakes prizes is $226,800.00. Each Eligible Dealership may win a maximum of one (1) Sweepstakes prize of any nature during the Sweepstakes Period. Once an Eligible Dealer¬ship wins a Sweepstakes prize in one of the four Drawings it no longer will be eligible for other prizes in that Drawing or in any subsequent Drawing.

Employees of Sponsor, Cox Automotive, Inc., Cox Enterprises, Inc. and each of their respective affiliated companies, subsidiaries, and advertising and promotional agencies, and the family members of, and any persons domiciled with, any such employees, are not eligible to enter or to win. By entering the Sweepstakes, each entrant agrees to indemnify, defend, release, discharge and hold harmless Sponsor and its related entities, from any and all claims and liabilities arising from or in connection with participation in these Sweepstakes and the receipt and use of any prize, including but not limited to related tax obligations. NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT IMPROVE YOUR CHANCES OF WINNING. ALL FEDERAL, STATE, LOCAL AND MUNICIPAL LAWS AND REGULATIONS APPLY. THIS PROMOTION IS OPEN ONLY TO LEGAL U.S. RESIDENTS. VOID WHERE PROHIBITED. OTHER LIMITATIONS MAY APPLY. A complete and full list of the Official Rules for the Sweepstakes may be found at Sponsor’s website (https://www.nextgearcapital.com/thankyou/). Sponsor is, and may be contacted at: NextGear Capital, Inc., 11799 North College Avenue, Carmel, Indiana 46032.

feature

Want To Increase Your BHPH Cash Flow?

A

s another year closes BHPH operators should focus on how to make next year better! The answers will NOT be found in your year-end financial statements or by reviewing annual sales numbers.

This article will discuss how every buy here, pay here operator should evaluate their installment portfolio in order to improve their cash flow and profitability as follows: Identify important indicators that

your installment portfolio needs a “tune up”!

Discover proactive ways to improve

underwriting by using metrics as your guide.

Maximize year-end tax deductions

for bad debt losses and reduce income taxes.

Increase the return (“ROI”) on your

business model.

Learn from your losses so you do

not repeat them next year!

Here are some indicators that your installment portfolio needs to be analyzed!

Your receivables are increasing but

your collections are decreasing.

You are selling more vehicles but

your portfolio is not growing at the same rate.

Your bad debt losses are increasing

but you don’t know why!

Your portfolio is more than 50% liq uidated and you aren’t replacing the “run off ” with new originations.

Your portfolio performance is

worse than the NABD industry benchmarks which are available at www.subanalytics.com.

Hoping that next year will get better is not a prudent strategy. Waiting for

June 2019

T e x a s

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Featured Presenter

by Kenneth Shilson, CPA

President, Subprime Analytics

the competition to decline or disappear isn’t the answer either! You need a proactive approach to improving your internal collection performance and not depend on your competition declining.

The first step is to develop portfolio metrics: static pool, loss/liquidation, and default rates which are needed so you can compare your performance with your peers and identify performance trends. Here is what you can learn from the aforementioned metric calculations: •N et Static Pool Rates — measures the frequency and severity of your bad debt losses after recoveries (in dollars) over the life of pools of installment receivables. (This is your performance report card!)

•N et Loss/Liquidation Rates — measures the pace of losses in your portfolio (after recoveries) in dollars before pools of receivables are fully amortized. This measurement is important for projecting cash flow, anticipating future losses, and for identifying changing trends.

•D efault Rates — measures the frequency of bad debt losses in units (not dollars) over the life of your installment portfolio. This metric is used to measure volatility and portfolio quality.

If you don’t have these metrics your access to capital to fund growth will be very limited. Capital providers use the aforementioned metrics to evaluate credit risk, to project loan repayment, and to determine advance rates. You can’t expect to borrow millions of dollars without these barometers.

The next step is to charge-off your bad debts when losses become known.

31

Bad debts in BHPH are not like wine; they don’t get better with age. When BHPH customers become delinquent 60-90 days their ability to “catch up” is unlikely. It is important that delinquent debt be charged off when identified so that losses can be mitigated and the appropwwriate corrective action can be taken. If a charged-off account is subsequently collected the recovery should be recorded when received. A timely and consistent charge-off policy provides a more realistic picture of your portfolio performance and helps you avoid financial surprises.

These bad debt charge-offs are deductible for federal tax purposes so your corresponding tax liability is reduced.

Your business model often dictates your BHPH success! You should evaluate your business

model periodically for cash efficiency. That means determining the cash return (ROI) on your portfolio investment. You would not make any other investment without considering its ROI and the same holds true for a BHPH portfolio. These calculations require the use of static pool and loss/liquidation metrics to project future cash flow, after bad debts and recoveries. Such projections are needed to identify capital needs and to predict future performance.

A new Credit Loss Measurement Standard passed by the AICPA in June 2016 will require you to reserve for estimated future bad debt losses over the remaining life of your portfolio. You must determine how this new standard will affect your loan covenants and borrowing relationship as soon as possible.

Metrics will be needed to estimate future losses and to adjust the reserve for bad debts in your financial statements.

Those who do not make adjustments periodically should not expect better results. The BHPH industry can regain lost market share by “keeping them sold”. Do not begin another year without “looking under the hood” of your own portfolio! The more you learn, the more you will earn!

Good Luck!

Kenneth Shilson, CPA is President of Subprime Analytics which uses data mining to perform computerized portfolio analysis for operators and capital providers to the subprime auto industry. For further information visit www.subanalytics.com or call 832-767-4759.

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!

8739 Davis Blvd.

Keller, TX 76248

800-687-3236 / Fax (817) 581-1921

32

WE ALSO OFFER THESE COVERAGES:

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June 2019

TURNING WHOLESALE

UPSIDE DOWN

Providing transparency in a marketplace dealers can trust.

July 21–23, 2019 We’re attending the TIADA Annual Conference. Stop by booth #819 and say hi.

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IAA ABILENE*

IAA CORPUS CHRISI*

www.cmauctions.com 2258 S. Treadaway, Abilene, TX 79602 325.677.3555, Fax 325.677.2209 GM: Gregory Chittum Thursday, 10:00 a.m. $AVE : $200

NEW

www.iaai.com 7700 US 277, Hawley, TX 79601 325.675.0699, Fax 325.675.5073 GM: Terrie Smith Thursday, 9:30 a.m. $AVE : up to $200 Sell Fee

Amarillo IAA AMARILLO*

www.corpuschristiautoauction.com 2149 IH-69 Access Road Corpus Christi, TX 78380 361.767.4100, Fax 361.767.9840 GM: Hunter Dunn Friday, 10:00 a.m. $AVE : $200

www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880 GM: Patricia Kohlstrand Wednesday, 9:00 a.m. $AVE : up to $200 Sell Fee

Dallas-Ft. Worth Metroplex NEW

www.iaai.com 11150 S. FM 1541, Amarillo, TX 79118 806.622.1322, Fax 806.622.2678 GM: Shawn Norris Monday, 9:30 a.m. $AVE : up to $200 Sell Fee

Austin

ADESA AUSTIN

www.adesa.com 2108 Ferguson Ln, Austin, TX 78754 512.873.4000, Fax 512.873.4022 GM: Rich Levene Tuesday, 9:00 a.m. $AVE : $200

AMERICA’S AA AUSTIN / SAN ANTONIO www.americasautoauction.com 16611 S. IH-35, Buda, TX 78610 512.268.6600, Fax 512.295.6666 GM: John Swofford Tuesday, 1:30 p.m. / Thursday, 2:00 p.m. $AVE : $200

INSURANCE AUTO AUCTION AUSTIN* www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 GM: Geoffrey Rabb Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee 34

www.metroautoauction.com 8605 Cullen Ln., Austin, TX 78748 512.282.7900, Fax 512.282.8165 GM: Brent Rhodes 3rd Saturday, monthly $AVE : $200

ADESA DALLAS

www.adesa.com 3501 Lancaster-Hutchins Rd. Hutchins, TX 75141 972.225.6000, Fax 972.284.4799 GM: Allan Wilwayco Thursday, 9:30 a.m. $AVE : $200

ALLIANCE AUTO AUCTION DALLAS www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 7520 214.646.3136, Fax 469.828.8225 GM: Chris Dean Wednesday, 1:30 p.m. $AVE : $200

AMERICA’S AA DALLAS

www.americasautoauction.com 219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972.591.2742 GM: Ruben Figueroa Tuesday, 1:00 p.m. / Thursday, 1:00 p.m. $AVE : $200

IAA DALLAS*

www.iaai.com 204 Mars Road, Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 GM: Joshua Boyd Wednesday, 9:00 a.m. $AVE : up to $200 Sell Fee

www.iaai.com 4226 East Main Street Grand Prairie, TX 75050 972.522.5000, Fax 972.522.5090 GM: Robert Brown Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee www.iaai.com 3748 McPherson Dr. Justin, TX 76247 940.648.5541, Fax 940.648.5543 GM: Jack Panczyk Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

NEW

MANHEIM DALLAS

www.manheim.com 5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800, Fax 214.339.6347 GM: Rich Curtis Wednesday, 9:00 a.m. $AVE : $100

MANHEIM DALLAS FORT WORTH www.manheim.com 12101 Trinity Blvd.

Fort Worth, TX 76040 817.399.4000, Fax 817.399.4251 GM: Nicole Graham-Ponce Thursday, 9:30 a.m. $AVE : $100

METRO AUTO AUCTION DALLAS www.metroaa.com 1836 Midway Road Lewisville, TX 75056 972.492.0900, Fax 972.492.0944 GM: Scott Stalder Tuesday, 9:00 a.m. $AVE : $200

TEXAS LONE STAR AUTO AUCTION www.tlsaa.com 2205 Country Club Drive Carrollton, TX 75006 214.483.3597, Fax 214.483.3814 GM: Patrick Stevens Tuesday, 1:00 p.m. / Thursday, 2:00 p.m. $AVE : $200

El Paso

EL PASO INDEPENDENT AUTO AUCTION www.epiaa.com 7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 GM: Luke Pidgeon Wednesday, 1:00 p.m. $AVE : $200 T e x a s

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June 2019

IAA EL PASO*

www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489, Fax 915.852.2235 GM: Jorge Resendez Friday, 10:30 a.m. $AVE : up to $200 Sell Fee

MANHEIM EL PASO

www.manheim.com 485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645 GM: JD Guerrero Thursday, 10:00 a.m. $AVE : $100

IAA HOUSTON*

Midland Odessa

IAA HOUSTON NORTH*

www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277, Fax 432.366.8725 GM: Christopher Rogers Thursday, 11:00 a.m. $AVE : up to $200 Sell Fee

www.iaai.com 2535 West. Mt. Houston, Houston, TX 77038 281.847.4700, Fax 281.847.4799 GM: Alvin Banks Wednesday, 9:00 a.m. $AVE : up to $200 Sell Fee www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300, Fax 281.443.4433 GM: Christina Nieves Thursday, 9:00 a.m. $AVE : up to $200 Sell Fee

MANHEIM HOUSTON

Harlingen/McAllen IAA MCALLEN*

www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393, Fax 956.464.8510 GM: Ydalia Sandoval Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

BIG VALLEY AUTO AUCTION**

www.bigvalleyaa.com 4315 N. Hutto Road, Donna, TX 78537 956.461.9000, Fax 956.461.9005 GM: Lisa Franz Thursday, 9:30 a.m. $AVE : $200

www.manheim.com 14450 West Road, Houston, TX 77041 281.924.5833, Fax 281.890.7953 GM: Brian Walker Tuesday, 9:00 a.m. / Thursday 6:30 p.m. $AVE : $100

MANHEIM TEXAS HOBBY

www.manheim.com 8215 Kopman Road, Houston, TX 77061 713.649.8233, Fax 713.640.6330 GM: Darren Slack Thursday, 9:00 a.m. $AVE : $100

Longview

ALLIANCE AUTO AUCTION LONGVIEW

Houston

ADESA HOUSTON

www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030 GM: Michael Schenks Wednesday, 9:00 a.m. $AVE : $200

AMERICA’S AA HOUSTON

www.americasautoauction.com 1826 Almeda Genoa Rd, Houston, TX 77047 281.819.3600, Fax 281.819.3601 GM: John Swofford Thursday, 2:00 p.m. $AVE : $200

AMERICA’S AA NORTH HOUSTON www.americasautoauction.com 1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842 GM: Buddy Cheney Monday, 6:30 p.m. $AVE : $200

www.allianceautoauction.com 6000 East Loop 281, Longview, TX 75602 903.212.2955, Fax 903.212.2556 GM: Chris Barille Friday, 10:00 a.m. $AVE : $200

IAA LONGVIEW*

www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248, Fax 903.553.0210 GM: David Cooper Thursday, 9:00 a.m. $AVE : up to $200 Sell Fee

Lubbock

IAA LUBBOCK*

www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 GM: Lori Davee Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

AUTONATION AUTO AUCTION - HOUSTON TEXAS LONE STAR AUTO AUCTION** www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 822.905.2622, Fax 281.506.3866 GM: Mike Green Thursday, 6:00 p.m. $AVE : $200

HOUSTON AUTO AUCTION

www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566, Fax 713.644.0889 GM: Tim Bowers Tuesday, 1:00 p.m. $AVE : $200 June 2019

T e x a s

D e a l e r

www.lsaalubbock.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 Wednesday, 9:30 a.m $AVE : $75/Quarterly

Lufkin

LUFKIN DEALERS AUTO AUCTION

www.lufkindealers.com 2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299, Fax 936.632.4218 GM: Wayne Cook Thursday, 6:00 p.m. $AVE : $200

IAA PERMIAN BASIN*

ONLINE

ACV AUCTIONS**

www.acvauctions.com 800.553.4070 $AVE : $250

San Antonio

ADESA SAN ANTONIO

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

IAA SAN ANTONIO*

www.iaai.com 11275 S. Zarzamora San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 GM: Brian Sell Monday, 9:00 a.m. $AVE : up to $200 Sell Fee

MANHEIM SAN ANTONIO**

www.manheim.com 2042 Ackerman Road San Antonio, TX 78219 210.661.4200, Fax 210.662.3113 GM: Mike Browning Wednesday, 9:00 a.m. $AVE : $100

SAN ANTONIO AUTO AUCTION**

www.sanantonioautoauction.com 13510 Toepperwein Rd. San Antonio, TX 78233 210.298.5477 GM: Brandon Walston Tuesday, 10:00 a.m. / Thursday, 1:30 p.m. $AVE : $200

Tyler

GREATER TYLER AUTO AUCTION www.greatertyleraa.com 11654 Hwy 64W, Tyler, TX 75704 903.597.2800, Fax 903.597.3848 GM: Wayne Cook Tuesday, 5:00 p.m. $AVE : $200

Waco

ALLIANCE AUTO AUCTION WACO

www.allianceautoauction.com 15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 GM: Carmen Robinson (Sales Manager) Friday, 10:00 a.m. $AVE : $200

35

feature

Dealers’ 3 Biggest Problems and Solutions

D

EALERS, GM’s, SALES MANAGERS: Are you facing any of the following market challenges and other than working harder, you’re not 100% confident your plan will overcome them?

High Cost of Customer Acquisition

P rofit Margin Compression

& Product Commoditization S hrinking Customer Loyalty

For many leaders, overcoming these seems daunting and hopeless! Many dealers feel like they are playing a game and the chips are stacked against them.

GOOD NEWS: This is a game, and to win you only need three things: A Strong Offense A Powerful Defense A Masterful Playbook

The offense is the way that you market to and attract buyers. First, go on the attack and DE-COMMODIFY your dealership! The commoditization of your inventory is one of the greatest reasons your margins are shrinking.

Truly, you only have ONE competitive advantage, and it’s your EMPLOYEES. Every employee at your dealership has direct AND free access to thousands of potential buyers. Start using marketing platforms like #Teir4Marketing.

Because this technology will keep your people in front of potential clients who can and will buy from them.

Create a following online by marketing the individual players on your team. Even employees in non-customer facing departments often have large followings on social media. Why wouldn’t you include them and their online networks in these marketing efforts? To stand out, stop doing the same thing as every other dealership! That’s buying a bunch of cars, pricing them with no margin, and marketing the pricing. Otherwise, you’re simply attracting only those “best price” in-market shoppers who are often transactional buyers.

When you can make the full transition to these modern and effective methods for attracting customers, you can expect two results. First, your employees will enjoy working with more customers that they enjoy selling.

Second, you will eventually be able to lower your marketing spend, and thus improve the cost of acquisition.

Keep in mind, you will want to continue your current June 2019

T e x a s

D e a l e r

Featured Presenter

by Sean Kelley

#TheCarBizCoach CEO, Car Motivators

...it’s critical that you help your salespeople adopt the mindset that ever y customer is a 30-car buyer. Stop treating customers as if they are a single transactional sale because if you sell like a kiosk, you can be replaced by one. marketing campaigns along with these tactics. Because it takes time to reach a tipping point when business generated through these means is enough to replace your high-cost low return traditional marketing spend. Most noteworthy, this tactic helped this dealer become the most efficient dealership in his 20 group, over the course of five years.

The defense is two-part, the first being the customer experience, before, during and IN BETWEEN sales!

Start by differentiating yourself from your competition by understanding the customer experience starts before they arrive at your dealership. Technology tools like DriveCentric A.I. (www.drivecentric.com) can engage with customers in record time, 24 hours a day through various communication channels. Add a personal touch and improve the pre-arrival experience by sending personalized videos to each opportunity. At Car Motivators, we advise our internet sales departments to “Treat the pixels like people”! As a result, we have two Toyota dealerships who have well over 80% engagement from internet leads each month. Your dealership can create amazing online experiences by customizing responses to 37

each opportunity. Have your sales and BDC fire on all cylinders by working in unison to support the online shopper. Leverage all communication tools available like social media messenger apps, video, and texting. In doing it’s not unreasonable to talk to 30% more of your leads than the average dealer.

Regarding the customer experience, it’s critical that you help your salespeople adopt the mindset that every customer is a 30-car buyer. Stop treating customers as if they are a single transactional sale because if you sell like a kiosk, you can be replaced by one. There is no “after sale” follow up with this new mindset. There is only “in-between sales” relationship development which when implemented ensures your salespeople think long term. The in-between sales experience for a customer should happen digitally leveraging tools like CRM, social media groups, video, and with in-store on-site events, charitable acts, and community involvement.

This long term approach ensures long term success for your dealership. Build a team of farmers who are aligned to your dealer’s long term success.

The critical second half to the defense which will shield you from the three challenges above is the employee experience. The reason is that a better employee experience creates engaged employees. Engaged

PUT THE BRAKES ON COSTLY RECONS

employees are more motivated, accountable, productive, and remain with your company longer. When you multiply the effects of these engaged employee attributes across all employees in your organization you multiply results. These employees stay on the team longer, and employee retention means customer retention.

Recently I was coaching a service manager in the dealers’ service drive. During our conversation, a customer drop off mentioned she hadn’t visited the service drive in a year. I asked her, “What can we do to earn your service business every time?”, and she said, “Start by having the same advisors each time I visit.” Clearly pointing out, turnover affects customer relationships.

One way my dealers improve the employee experience is by having a robust onboarding process that ensures employees have a foundation for success. Stop throwing employees to the wolves without training or tests for competency because this almost always sets them up for failure. Another crucial leadership activity that lowered turnover for my dealership by almost 70%, performance coaching. Continue developing people through aspirational performance coaching, even after they have been trained, and understand their job. This is one of the only methods for employee development once they hit the glass ceiling of skills training.

COME SEE US AT BOOTHS

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June 2019

T e x a s

D e a l e r

39

e-Tag Supplies —

In Stock for Immediate Shipment!

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This combined improved customer experience and employee experience is a defense against commoditization which will ensure that you build customer retention.

Finally, it’s time to discuss the masterful playbook. Because every great team has a coach with plays that ensure the team outmaneuvers the competition.

When you have a playbook your team conducts the right activities in the right way. Your playbook should consist of several things: A process for vetting, deciding upon, implementing, and revisiting new procedures, tools, and technology. Consistent operational best practices such as competitive mystery shopping, inventory acquisition, time management activity inventory for all employees.

Equally important, reporting and methods for holding people accountable to the behaviors encompassed above.

Finally, leadership competency and understanding of the latest industry best practices that drive results.

You can start by working with leaders and employees to brainstorm around new ideas. We suggest involving the entire team in developing this growth mindset.

You can discuss which ideas if implemented, would have the most significant impact on business. Try sending your managers to a conference or two. You could visit a top dealership in your region for a day. Another strategy is to simply join a 20 group. After these activities, have each employee share their favorite idea and choose the best one to implement. Furthermore, create a game plan as a team, ensure everyone commits to activities and time frames. Furthermore, build reward/ recognition programs for results, and communicate the accountability processes to ensure everyone meets their commitments.

Another opportunity within this bucket is to develop a process for conducting cultural alignment and 360-degree cultural assessments. This can help you bring in the right people and is another method to keep the right people on your team. This gives people who aren’t a good fit the chance to move on to something better in a fair and efficient manner. As such, managers can focus their development efforts on employees on those long term employee partners. This playbook in its entirety if appropriately implemented, will help you quickly add technology tools and processes in the right way. Weaving these new activities into the fabric of your teams’ routines are critical to your bottom line. More importantly, it will help you remove unproductive and unprofitable tools, processes and technology faster and with less wasted effort and frustration.

At a high level, we have discussed three car dealerships most significant challenges: shrinking profit margins, lower customer loyalty, and the high cost of customer acquisition. Throughout the article, I shared proven processes that you can start doing, stop doing June 2019

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and continue doing which will help you overcome these challenges. Above all, if you’re thinking, “These solutions are not what I had hoped for, this sounds hard.”

If you have the inclination to continue looking for that magic pill, then I challenge you to look at any championship sports team. Because they don’t become champions by simply wanting championship results. Nor did the championship team take performance-enhancing drugs suddenly crushing their competition and winning it all overnight.

Rather, it takes long term consistent training, coaching: Using the right technology and tools. Combine this with taking new modern best practices, a mindset of accountability, a clear vision, and a desire to win. Then go on the attack with a blitzkrieg offense and enhance your dealership’s brand by marketing your people. Set up an impenetrable defense with industry best customer and employee experiences. Develop a great playbook that ensures personal growth for every player and leader on your team. Ensure continuous improvement by inspecting what you expect to create accountability and develop a mindset of ownership across the board. Remember, you too can overcome these three challenges and set your entire business up for future success!

Sean Kelley will be a featured speaker at the TIADA Conference on Monday, July 22, 2019.

41

BUY ONLINE AT www.AmericasAutoAuction.com

22

LOCATIONS

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

4

Chicago, IL Dallas, TX Detroit Toledo, OH Greenville, SC Harrisburg, PA Houston, TX

Interstate 94, MI Jacksonville, FL Lancaster, PA North Houston, TX Pensacola, FL Pittsburgh, PA

Austin

LOCATIONS IN TEXAS

Dallas

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

St Louis, MO Tulsa, OK Virginia Beach, VA West Michigan, MI

TUESDAYS & THURSDAYS AT 1PM

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

Houston

THURSDAYS AT 1:30PM

1826 Almeda Genoa Rd, Houston, Texas 77047 Phone: 281.819.3600

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

North Houston

MONDAYS AT 6:30PM

1440 FM 3083 Conroe, Texas 77301 Phone: 936.441.2882

TIADA Auction App turns your phone into

CASH

*

*Only available to current TIADA dealer members. Cash only represents redeemed discount value and does not mean actual currency.

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June 2019

Please Welcome Our Newest TIADA Members DEALER MEMBERS Asian European Auto Group Bryan Harris 413 Swenson Farms Blvd, Apt 331 Pflugerville, TX 78660 Auto Exam Certified Car Sales, Inc. Justin Vaughn 11449 Gulf Freeway Houston, TX 77058 Car Solutions, Inc. Jason Lozano 5390 FM 78 San Antonio, TX 78219 Challenge Auto Center Thomas Lopez 1124 W. Hildebrand Ave San Antonio, TX 78201 Elite Auto Mall Armia Mazahen 5703 San Pedro San Antonio, TX 78212 Hendrix Auto Brokers Michael Low 12007 Bell AVenue Austin, TX 78727 JC Truck & Auto Center LLC Julio Colegio P.O. BOX 631524 Nacogdoches, TX 75963 LG Auto Sales Yadira Flores 1606 E Baker Rd Weslaco, TX 78596

Trevi Auto Sales Cuauhtemoc Trevino 2924 Culebra Rd San Antonio, TX 78228

ASSOCIATE MEMBERS Credit Mail Experts, LLC Ben Misra 5320 Holiday Terrace, Suite1 Kalamazoo, MI 49009 Dealerwebb Services Scott Webb 7171 Highway 6 North, Suite 209 Houston, TX 77095 E DEALER DIRECT Victor Valenzuela 1005 N Mesa St El Paso, TX 79902 HHM CPAs Kim Cooley 1200 Market Street Chattanooga, TN 37402 NASA Searchlights Jerry Wayne 616 Isom Road San Antonio, TX 78216 Tribute Capital Partners Steve Barna P.O. Box 167762 Irving, TX 75016

resource guide The TIADA Website: www.txiada.org Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more.

Register for all upcoming TIADA events online at the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access 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 June 2019

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

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

FORMS Burrell Printing 800.252.9154 www.burrellprinting.com

Local Chapters CORPUS CHRISTI G.R. Moore The Car Shack 361 .813.2466 grcarshack@grcarshack.com (dates announced at www.txiada.org) DALLAS COUNTY Graham Lathrop VP Auto Sales 972.864.1300 grahaml@vpautosales.com (dates announced at www.txiada.org) EL PASO Ricardo Gardea Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly) FORT WORTH David Byrd Byrd Autos 817.915.2185 david@byrdautos.com Meeting – 4th Thursday of Jan–May and Sep–Oct HOUSTON Rudy Roudbari Sarco Enterprise 713.672.3950 Meeting – 2nd Tuesday (Monthly) SAN ANTONIO Jose Engler Irving Motors Corp 210.385.2568 pepeton2002@hotmail.com (dates announced at www.txiada.org) VICTORIA Rowdy Ransom RTR Motors 361 .484.6526 rowdyroy78@yahoo.com Meeting – 1st Monday (Monthly) 45

by Jeff

Martin TIADA EXECUTIVE DIRECTOR

O

n May 4th I received a text message from Keith Hagler. Anyone who has been around the association very long knows Keith. He is an independent automobile dealer in Taylor, TX, past president of TIADA & NIADA and a fixture at the TIADA conference every year. His text was short, it read, “We lost a great One.” Over the past few days Keith had informed me that James Wood of Cars America in Austin had been admitted to the hospital and was not doing well. When I got the text I knew exactly what he was referring to. One of the all-time greats in our industry had passed away.

I had the pleasure of meeting James about five years ago when Keith invited me to attend a lunch with the two of them. Keith told me to just come listen to James talk — he said I would be amazed at how well he knows the car business and how well we knew his numbers. To say I was amazed would be an understatement. His ability to talk about the car business and numbers was astounding and only overshadowed by his humbleness and quick wit.

After our meeting I called James and asked him if he would do the exact same thing we just did, but do it in front of crowd at our conference? He said, “You want me to eat lunch in front of a bunch of folks?” I explained that I wanted him and Keith to have that exact same conversation with microphones and allow other dealers to just listen. James was not sold on the idea. He told me he didn’t believe that bigger was always better. He told me he didn’t really accept what all the so-called experts say about going into debt and just selling more and more vehicles. He assured me most people didn’t want to hear what he has to say. I was not convinced.

Two years later, James and Keith agreed to participate in a new program we were rolling out at our conference called Cars and Coffee. The idea was to create a small, intimate environment wherein one dealer basically interviewed another. We wanted it to be thought provoking and to go against the grain of traditional thinking. I also wanted to call it The Legends. James told me if I would change the name, he would do it… he said to be referred to as a “legend” makes one sound old.

We had the room set for 30 attendees and we were only going to offer the session in two time slots. In the first session we allowed a few extra folks in the room and we had almost 40 attendees. One hour later, the session was set to go again. We realized quickly we had a problem; over 100 dealers were trying to cram into the classroom. We had to start turning people away but we promised we would have James back. Last year he and Keith offered a full session at our conference that ran simultaneously with four other sessions, and to this day it remains one of the highest attended sessions we have ever had at any TIADA Conference. That, and so many other things makes James Wood a legend!

46

James Ellis Wood, 67,

passed away on May 4, 2019 after a courageous battle with cancer.

James was a multi-generational Austinite, born February 11, 1952.

He graduated from Leander High School in 1970. After graduation, he served for four years in the Navy, including service during the Vietnam War aboard the USS Corry. James was an entrepreneur from a very young age. He purchased his first piece of property before graduating high school.

He found his passion for the car business almost 45 years ago and it never left. Cars America was his second home. He loved his employees, customers and friends in the industry. His favorite day of the week was Monday and he is quoted as saying that he would never retire. James loved life. He often laughed at his own jokes before he could finish telling them.

He was confident, yet humble.

Helping others brought him happiness. He was a mentor and a role model to so many. Ethics came before success. Anyone will tell you that he would always choose a hard right over an easy wrong. He loved to take trips to the coast with his wife, Patti, just to walk on the beach and listen to the waves. We will miss James terribly.

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June 2019

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