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In This Special Sales Issue: – Three Sales-Killing Words – Cat Bark Selling – Be Someone Worth Remembering


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Volume XIII

2014 TIADA Board of Directors

chairman of the board Byron L. Riley/Texas Auto Solutions 409 North Loop West Houston, TX 77008 Office: 713.869.3405 Email: ub2526@yahoo.com

Secretary HL Hensley/Automax of Lubbock P.O. Box 3040 Lubbock, TX 79452 Office: 806.744.3533 Email: hl@gospac.com Treasurer Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd. Dallas, TX 75229 Office: 214.352.9282 Email: cicoauto@verizon.net Vice President, West Texas (Region 1) James Hobson/H-Town Motors 3714 Dyer Street El Paso TX 79930 Office: 915.564.9797 Email: htownmotors@sbcglobal.net Vice President, Fort Worth (Region 2) Tommy Gregory/Abilene Used Cars Sales Inc. 497 E.S. 11th Abilene, TX 79602 Office: 325.676.8000 Email: aucsinc@sbcglobal.net Vice President, Dallas (Region 3) Kevin Mims/VP Auto Sales 2921 S. Garland Ave. Garland, TX 75041 Office: 972.864.1300 Email: kevinm@vpautosales.com Vice President, Houston (Region 4) 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 Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net Vice President, South Texas (Region 6) Trey Crouch/Trey Crouch’s Wheels On Credit 636 E. Business 83 McAllen TX 78501 Office: 956.972.0700 Email: trey@wheelsoncredit.com Vice President At Large Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net Vice President At Large Sonny Paredez/Discount Auto Center 7203 NW Loop 410 San Antonio, TX 78245 Office: 210.680.5600 Email: sonnyparedez@yahoo.com TIADA Executive Director Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am - 4:30pm 800.442.5944 • Fax 512.244.6218 jeff.martin@txiada.com

Issue 4

/

A p r i l 2 014

texasDealer

President Michael Thomasson/Mike Carlson Motor Company 264 Exchange St. Burleson, TX 76028 Office: 817.366.9578 Email: mthomasson@mcmcauto.com

President-Elect Brent Rhodes/Fiesta Motors 5150 Industrial Way Drive Buda, TX 78610 Office: 512.312.2201 Email: brent@fiestamotors.net

/

5 Officers’ Message

contents

by Brent Rhodes, TIADA President-Elect

6

Be Someone Worth Remembering by Jonathan Sprinkles

8 Local Chapters 8 2014 Auto Auction Directory & Resource Guide 11 March Legislative Radness Contest Results 12 On The Cover: 3 Keys to Effective Underwriting by Jay Rose

14 3 Sales-Killing Words by Mike Cassinelli

16 News & Notes 19 Legal Corner: Military Enlistments Raise Concerns Over Servicepersons’ Civil Relief Act by Michael W. Dunagan

31 Fines & Violations 32 Upcoming Events 40 TIADA Scholarship Application 41 Regulation Matters: A Change in Ownership & Your OCCC License by Danny Langfield

43

Cat Bark Selling by Jody DeVere

44 New Members 46 Behind the Wheel by Jeff Martin

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

DID YOU KNOW... you can already register for the 2014 Annual Conference and Expo? Go to www.TiadaAnnualConference.com to see the Schedule of Events, check out keynote presenters and get registered at low early bird rates. The Editor of the Texas Dealer magazine is Danny Langfield, Deputy Executive Director of TIADA. To change your address for subscription and/or for other TIADA products, call the TIADA state office at 800.442.5944, 512.244.6060 or fax 512.244.6218. E-mail: info@txiada.com. New Membership/Subscriptions: If you are a member of TIADA, you may receive this magazine free of charge. Membership year runs from Jan 1 to Dec 31. Back issues are available for $20 each subject to availability. Send a check or money order, along with your name and mailing address to TEXAS DEALER, Attn: Back Issues, 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750. Sorry, no billing. Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.


officers’ message Tax Season and Beyond

“T

ax Season.” These words are music to a car dealer’s ears. Like a kid waiting to open his presents on Christmas morning, we anxiously wait all year for tax season. The anticipation begins around October when you try to stock up on as many vehicles as you can afford. As I’m writing this article, I wonder when tax season will end this year. With the ever-changing tax law revisions, coupled with the IRS prolonging the official date they begin processing tax returns, it seems that tax season has stretched longer and longer each year. I think this is a good thing. It’s nice to extend the increase in sales to March and possibly April instead of just January and February. But with all of the excitement that tax season brings, we need to be careful that we stick to our underwriting policies and procedures. Sometimes dealers relax their underwriting guidelines during this season due to larger down payments. Those deals are usually the ones that end up as charge-offs. Did you know that car deals sold in February have the highest charge-off rate of any other month? Don’t let the high down payment from a tax return make the deal look good when it conflicts with your underwriting guidelines. (Read about improving your underwriting practices in the cover story of this issue on pg. 12) I also feel the need to remind you not to forget about compliance during this time. It is easy to get so busy making sales that you neglect compliance. I can’t stress enough

by Brent

Rhodes

Fiesta Motors (Buda) TIADA  president-elect

the importance of being diligent in doing all of the little things, such as copying the buyer’s ID and making sure all of the sales documents are signed properly. It always seems that the busier you get, the easier it is to forget things. That is why I created a Sales Closing Checklist for my salesman to make sure the important things that need to be included in the deal jacket are not forgotten. Let’s talk about sales for the rest of 2014. Have you set your sales goals for the remainder of the year? One goal I have is to do a better job building trust with the customers that come on my lot. I think that customers are going to buy from the dealer they trust and with whom they feel most comfortable. There is really not much that separates you from your competitor. Most of the time, you sell the same kind of vehicles and offer the same financing options. The one thing that can separate you from your competitor is how you treat your customers. It’s important to have great customer service and build rapport with your customer so that they grow to trust you. Then, you have to continue to earn that trust by following through with what you promised and standing behind your vehicles. I hope that you achieve your sales goals for the remainder of 2014. You’re already on the road to success because you are a TIADA member and you are reading this magazine! The next step is for you to attend the TIADA Annual Conference & Expo, July 27–30. There is no better conference for Texas dealers.

You’re already on the road to success because you are a TIADA member and you are reading this magazine! April 2014

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feature

Be Someone Worth Remembering

by Jonathan Sprinkles

{Editor’s Note: Jonathan Sprinkles is a TV personality, author of 10 books, and will be the keynote speaker at the 2014 TIADA Annual Conference and Expo.}

G

rowing your business depends on more than what happens inside the walls of your dealership. Making new connections and networking can provide abundant business opportunities. However, effective networking requires you to make a strong first impression. As I travel from city to city, I meet a new round of people every other day. After every presentation, there is a group of people who come up to me. Some have questions, some tell me how they were impacted by what I said, and some seem like they just want to talk to someone who will listen.

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When I check my Facebook page later that evening, I see new friend requests. There are some people I remember meeting earlier that evening, and there are others who I swear I’ve never seen before in my life. The difference? One group was able to master the art of the first impression. The other group got tossed into the mental trash basket that is filled with people, events and random information I don’t think I’ll need later (such as the steps to the “chicken dance”). This is an example of what happens internally with every new person you meet. You are either going to be filed in their mind or filtered out of it based on their initial feeling about you. When you meet someone for the first time, put yourself in the Facebook frame of mind. Ask yourself, how can I get him to remember me 24 to 48 hours after my initial impression? Whether you really do become social media contacts or not doesn’t matter. The point is, you have to be unique or you will be forgotten as soon as your conversation ends. Here are some of my best secrets for standing out in a crowd: 1. Associate a mental picture with your name — Hi, I’m Jonathan Sprinkles… like what you put on cupcakes.” 2. Ask for special treatment – “When you take your stack of business cards out of your pocket this evening, what would it take for you to remember mine specifically?” 3. Always follow up – “Hey, I know you’re meeting a lot of people today. Can I get your information so I can send a thank you note to you?” (FYI—This is a guaranteed winner but NOBODY does it!) W. Clement Stone said, “Little hinges swing big doors.” These seemingly insignificant steps will instantly separate you from the pack and create opportunities to network with powerful people who can give you the hook up. Normal is boring. Be fun. Be unique. Be someone worth remembering. T e x a s

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2 014 tiada a u t o a u c t i o n

Local Chapters Victoria Donny Cowan • Rock Motors 361.573.3325 rockmotorsllc@tisd.net Meeting - 1st Monday (Monthly) Fort Worth Jerry Smith HJ Smith Automobiles 817.282.0102 hjsmithauto@yahoo.com Meeting - 4th Thursday (Monthly) Dallas County Kathrine Tolsch • CICO Auto Sales 214.352.9282 cicoauto@verizon.net Meetings every other month Houston Michael Zak • Dixon Motors 281.931.1300 houstoniada@gmail.com Meeting - 2nd Monday (Monthly) Waco-Heart of Texas Bill Miller • Bill Miller Used Cars Meeting - 2nd Monday (Monthly) For more information contact Eddie Massey, Massey Motors 254.753.6661 San Antonio Sonny Paredez • Discount Auto Center 210.680.5600 sonnyparedez@yahoo.com Meetings quarterly (dates announced at www.txiada.com) El Paso James Hobson • H -Town Motors 915.564.9797 htownmotors@aol.com Meeting - 3rd Friday (Monthly) Austin Brent Rhodes • Fiesta Motors 512.312.2201 brent@fiestamotors.net Meetings quarterly 8

ABILENE Alliance Auto Auction of Abilene 6657 US Hwy 80 West / 79605 325.698.4391 / 866.310.3555 www.allianceautoauction.com Ben Stock, Auction Manager Danielle Staples, Office Manager Friday: 10 AM CM Company Auctions 2258 S. Treadaway / 79602 325.677.3555 / 866.310.3555 www.cmauctions.com Gregory Chittum, Owner Thursday: 10 AM

AUSTIN America’s Auto Auction Austin / San Antonio 16611 S. IH-35 / Buda / 78610 512.268.6600 www.americasautoauction.com John Swofford, General Manager Tuesday: 1:30 PM

BEAUMONT Gulf Coast Auto Auction 4450 South 11th Street / 77701 409.840.6000 www.gulfcoastautoauction.com Roger Rashall, General Manager Rocky Rashall Blake Rashall Thursday: 7 PM

CARROLLTON Texas Lone Star Auto Auction 2205 Country Club Drive / 75006 214.483.3597 www.TLSAA.com Jeff Dunning, Jr., General Manager Tim Clement, Assistant GM Michelle Elrod, Office Manager Tuesday: 1 PM / Thursday: 2 PM

CORPUS CHRISTI Big Valley Auto Auction 5661 Agnes St / 78405 361.356.2020 www.bigvalleyaa.com Bernard Watson, Owner Billy Kratz, GM Tuesday: 10 AM

DALLAS / FT. WORTH METROPLEX ADESA Dallas   3501 N. Lancaster-Hutchins Rd / Hutchins / 75141 972.225.6000 Ken Osborn, GM Wednesday: 3 PM – New Car Trade Thursday: 9:30 AM – Consignment/Fleet/ Lease America’s Auto Auction – Dallas 219 N. Loop 12 / Irving / 75061 / 972.445.1044 www.americasautoauction.com Robert Hammonds, GM Ruben Figueroa, Assistant GM. Tuesday: 2 PM / Thursday: 2 PM

EL PASO El Paso Independent Auto Auction 7930 Artcraft Road / 79932 / 915.587.6700 www.epiaa.com Lori Pidgeon, GM JD Glover, AGM Wednesday: 10 AM – Fleet/Lease & Dealer Consignment Wednesday: 1 PM as scheduled – GSA Public Auction

HARLINGEN / McALLEN Big Valley Auto Auction 4315 N. Hutto Rd. / Donna / 78537 956.461.9000 www.bigvalleyaa.com Bernard Watson, GM Lisa Harms, alternate contact Thursdays: 10 AM

HOUSTON America’s Auto Auction – N. Houston 1440 FM 3083 / Conroe / 77301 936.441.2882 www.americasautoauction.com Buddy Cheney, GM Ben Nash, Sales Manager Mondays: 6:30 pm

longview Alliance Auto Auction, LLC 6000 SE Loop 281 / 75602 903.212.2955 www.allianceautoauction.com Jeff Loftin, Auction Manager Brenda Hunt, Office Manager Friday: 10 AM T e x a s

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directory & resource guide LUBBOCK

oKLAHOMA CITY, OK

Lone Star Auto Auction 2706 Slaton Hwy / 79404 806.745.6606 (local) / 888.299.6606 (toll-free) www.lsaalubbock.com Jim McNulty, Owner Dale Martin, General Manager Wednesday: 10 AM

Dealers Auto Auction of OKC  1028 S. Portland / Oklahoma City, OK / 73108  405.947.2886 /405.943.8370 (fax) www.daaokc.com Gary Smith, Owner/President/GM John Reininger, Asst. GM Mike Egdahl, F/L Manager Thursdays: 8:30 AM – Consignment Sale INOP Sale held weekly GSA sale held monthly (open to public) Call for info on sale dates and times Every other Tuesday: 10 AM – GM Sponsored Factory Sale

LUFKIN Lufkin Dealers Auto Auction 2109 N. John Redditt Drive / 75904 936.632.4299 Wayne Cook Thursday: 6 PM

ROCKWALL Lakeside Auto Auction 1810 East I-30 / 75087 972.771.9919 www.lakesideaa.com Pete Conley, Owner Tuesday: 7 PM

TYLER Greater Tyler Auto Auction 11654 State Highway 64 W / 75704 903.597.2800 Tuesday: 5 PM – Repo Lane Tuesday: 6 PM – Consignment

WACO Heart of Texas Auto Auction (Waco’s oldest auto auction- Proudly serving dealers for 20 years!) 2508 HWY 6 / 76705 / 254.755.7713 www.heartoftexasautoauction.com Allan Wichkoski, Owner Kenny Reigert, General Manager Shirley McMillan, Office Manager Thursday: 7 PM Alliance Auto Auction 15735 N. Interstate Hwy 35 / Elm Mott, TX / 76640 254.829.0123 / 254.829.1298 (fax) www.allianceautoauction.com Darren Darnell, GM darren.darnell@allianceautoauction.com   Carmen Klaus, Office Manager Every Friday: 10 AM

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The TIADA Website:

www.txiada.com Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Legal Consultation Service and much more. Register for all upcoming TIADA events online at the Calendar of Events; access our online membership application; find contact information for all our Local Chapters, and find many additional resources at our Links page. Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov Office of Consumer Credit Commissioner 800.538.1579 www.occc.state.tx.us Texas Comptroller 800.252.1382 www.window.state.tx.us NIADA 800.682.3837 www.niada.com

Repossessions

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

Forms

Burrell Printing 800.252.9154 www.burrellprinting.com 9


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 BHPH/LHPH Dealer 20 Groups  BHPH Finance 20 Groups  Sales, Service, Collections & Underwriting Consulting  Training Programs conducted at your place or ours! Call 877.803.3631 or visit ncm20.com/bhph to learn more. Going to NABD? NCM’s Brent Carmichael will be speaking at the Compliance Academy and Conference May 18-22 in Las Vegas.

Visit the NCM booth at NABD or call 877.803.3631 to see how NCM can support your operation. A S S O C I A T E S


April 2014

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11

32

68

Deferred Sales Tax

Dealers are No Longer the Insurance Police

Mechanics’ Lien Reform

70

30

$500 is...

Deferred Sales Tax

Mechanics’ Lien Reform

CHAMPION

Deferred Sales Tax

Deferred Sales Tax

Wins!

R A D N E S S

M A R C H

TxDMV Board Position for Independent Dealer

34

66

won in a TIEBREAKER!

TxDMV Board Position for Independent Dealer

85

TIEBREAKER: What percentage of TIADA members have renewed their membership for 2014? 75%

Insurance Check Must Include Lienholder

15 3rd Party Liability

$ Wayne Meagher of MD Auto Sales, Dallas... $

hat was the most valuable TIADA legislative victory of the last twenty five years?

W

Stopped $250,000 Dealer Bond Bill

17

83

And the winner of

Curbstoning Crackdown

25

Stopping the Transfer of a Mechanic’s Lien

TxDMV Board Position for Independent Dealer

75

45

3rd Party Liability Insurance Check Must Include Lienholder

55


on the cover by Jay Rose

President, Global Training Solutions

{Editor’s Note: Jay will be a speaker at the 2014 TIADA Annual Conference and Expo.}

E

verything we do as a subprime or BHPH dealer should be to deliver, collect and service customers who will pay us on time. We are NOT here to sell cars, but to underwrite the best paying customers. A “dollar” or “repossession” doesn’t care whether it is the 2nd of the month, a weekend or the last day of the month. The pain is the same for the Account Manager (collector) and the customer no matter when a repossession takes place. “Loose” or “aggressive” underwriting will only hurt the portfolio. Dealerships need to be aggressive with lead generation, not underwriting. Approving a customer with a “low affordable” just because it is a weekend and you are pacing behind a delivery goal sets the customer up for failure, and that shows in first payment defaults and repossessions. There are three keys to effective underwriting: 1) Affordability; 2) Proven stability of job and residence; and 3) Appreciation of your finance program and the vehicle you are selling. Every department and team member plays a role in assuring effective underwriting. Let’s break it down.

The Business Development Department includes phone spe-

cialists, primarily responsible for lead generation, lead management, and handling all incoming email, inperson and phone leads. They determine the leads that match your target customer before they ever go through the underwriting process. The Finance Specialist assists the customer through the underwriting process and builds value. Building value is a critical piece of the process because it ensures 12

customer satisfaction. This should include conveying the following (and more): • The quality of the vehicles you offer • The advantage of getting approved before vehicle selection • The opportunity for the customer to establish or re-establish their credit • Allowing the customer to take an acceptance test drive • The availability and quality of the dealership’s vehicle financing program

The Branch Specialist assists

the Finance Specialist in selecting affordable vehicles based on a complete budget sheet and keeps the customer moving through the purchase and underwriting process. (If the customer has to wait on you, bad things will happen!) The Branch Specialist determines what the customer can afford, verifies all provided information

and requests any missing information from the customer. The Branch Specialist should be trained to look for inconsistencies on the credit bureau paperwork submitted for proof of income or residence. The Branch Specialist is responsible for approving the applications that fit the underwriting guidelines (the Branch Manager should approve any deal, either in-person or by phone, that does NOT fit the underwriting guidelines). It is important to have written underwriting guidelines so everyone knows exactly what is required. Similarly, if your dealership uses a scoring system, each employee must score guest applications the same way. Otherwise, decisions are based on inconsistent information. The Payment Center is responsible for keeping customers contractually current (not $1 or one T e x a s

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April 2014


day delinquent). This is critical in determining how aggressive or defensive the underwriting needs to be. The Branch Manager is ultimately responsible for lead generation, lead management, the customer purchase process, and the underwriting process along with the results of those decisions. The Branch Manager should be involved with every aspect of the process and be prepared to assist and fill in for every teammate as needed. The Branch Manager should also have a weekly underwriting meeting with the Branch Specialists and the Payment Center Manager to review the underwriting log along with the approved, conditioned and declined deals, and first payment defaults and repossessions. These meetings will increase effective communication between departments to help more customers stay on their “Financial Fitness Plan� so they can establish or re-establish their credit. Lastly, Branch Managers should consider having a short, daily one-to-one meeting with the Finance Specialist to help them fine-tune and improve their interviewing technique. Have the Finance Specialist talk you through their underwriting process and provide feedback for improvements. Always remember the Three Keys to Effective Underwriting: 1) Affordability; 2) Proven stability of job and residence; and 3) Appreciation of your finance program and the vehicle you are selling; and watch your business grow.

April 2014

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Better Business Through Superior Customer Service!

SALE SCHEDULE

13


feature 3 Sales-Killing Words by Mike Cassinelli

Agent/Trainer, IPS Agency

F&I Expert Identifies three words F&I managers need to avoid when working with customers

I

’m sitting in a dealership for the umpteenth time this month to assess the performance of a struggling finance office. This department has failed to produce the gross, penetration, and customer satisfaction levels the dealer expects. I witnessed a stellar turnover from a talented salesperson to the business manager, who takes the customer into his office. The customer leaves the dealership without making any additional purchases. This customer was a prime candidate for several protection options. Had it not been for the business manager’s use of several cancerous words and phrases, he would’ve had a much better opportunity to succeed on this deal.

Word No.1: “Products”

To open up his product presentation the F&I manager said, “I’ve got several different products here for you to choose from.” Products are things that are sold to us. After making a large purchase many customers are conditioned to believe that “extras” are a waste of money. By labeling service contracts, tire and wheel, GAP and environmental protection as “products” you are unintentionally inviting your customer to develop negative sales resistance. What’s the alternative? Open your F&I presentation with this: “I have several protection options for you to choose from.”

Word No.2: “Buy” or “Purchase”

During his presentation, the F&I manager said, “If you purchase this package, you will be covered in the event of a breakdown.” Words like “buy” or “purchase” lead to heightened

14

sales resistance. As the old adage goes, people love to buy but hate to be sold. When one of those words is used, the customer can get defensive about being “sold” and instantly discredit the value of the product. Instead, use the word, “select.” This tells the customer they are in control, which is a critical element of a low-pressure sales environment.

Word No.3: “Discount”

This F&I manager asked his customer, “If I can give you a discount, would you accept?” Arbitrary discounting is one of the quickest ways to lose all credibility. While it’s true that most customers want to feel as though they’re getting a great deal, the word “discount” is usually tied to goods being overpriced in the first place. Try this instead: “Based on your circumstances, we are able to offer a preferred-customer price that will better fit your budget.” Remember, the best finance managers in the industry have one thing in common: Their customers unanimously believe they have no vested interest in selling them a protection package. The words you use have a direct impact on the customer’s perception that they are choosing to buy rather than being sold to. T e x a s

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news & notes

Happenings in the Industry…

compiled by Texas Dealer staff

Alliance Auto Auction–Dallas has Grand Opening

T

he Alliance Family of Auctions is now serving the city of Dallas. The location held its first auto auction on February 26, 2014 and will have its Grand Opening sale on Wednesday, April 23 at 1:00pm.  Every week leading up to the Grand Opening, dealers can enter into a progressive raffle for prizes including a kayak package, a Calloway Club set, $1,000 cash and more. All winners will be announced on April 23rd and you must be present to win. The address for the new Dallas location is: 9426 Lakefield Blvd Dallas, TX 75220 and auctions are held every Wednesday at 1:00pm.

NABD Convention Discount Offered to TIADA Members

T

he National Alliance of Buy-Here, Pay-Here Dealers (NABD) National Conference will be held May 20-22 in Las Vegas. TIADA members are eligible for a special registration rate of $375. Registration is normally $495/early bird (through April 18), $795/standard. For more information, please visit http://bhphinfo.com/nabd2014.php or call 832-767-4759. Offer valid through May 16, 2014.

Be a Sponsor of a Scholarship Candidate

O

dds are that the TIADA Texas Dealer magazine doesn’t have a lot of readership among high school seniors. If you know any deserving college students or soon-to-be-graduates, let them know they could earn a $1,000 scholarship from TIADA. You just need to provide the candidate a short letter of endorsement. The deadline to apply is May 1. See page 40 for details and an application.

16

Governor Perry Reappoints Four to Finance Commission of Texas

G

ov. Rick Perry has reappointed four members to the Finance Commission of Texas for terms to expire Feb. 1, 2020. The commission oversees the OCCC and ensures banks, savings institutions, consumer credit grantors and other state-regulated financial entities operate responsibly to enhance the financial well-being of Texans. The four appointees include: Stacy G. London of Houston is a certified mortgage consultant and president of Houston Capital Mortgage. Lori McCool of Boerne is a retired principal for WoodWay Associates LLC. Larry Patton of El Paso is president and CEO of WestStar Bank. Paul Plunket III of Dallas is an independent energy consultant.

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TIADA - OUTLINED & EMBEDDED.ai 1 3/10/2014 3:37:39 PM


legal corner

Military Enlistments Raise Concerns Over Servicepersons’ Civil Relief Act

M

ilitary enlistments and reserve activations have raised for car creditors the need to be aware of how to respond to notifications from debtors that they have entered active duty in the military, and how that status affects the creditor-debtor relationship. The Serviceperson’s Civil Relief Act or SCRA (formerly known as the Soldiers and Sailors Civil Relief Act) is a federal law enacted to protect military personnel and their dependents from civil obligations that might interfere with their active military duties. It allows them to suspend or postpone some civil obligations, including repayment of car debt. Most often, the creditor receives a notice issued by the branch of the military that’s involved. The notice advises of the debtor’s active-duty military status and warns that creditors are obligated to perform certain actions and are prohibited from exercising certain remedies. The new federal Consumer Financial Protection Bureau has made targeting financial abuses against service personnel one of its missions. An office of Servicemember Affairs has been established to specifically look into claims of businesses taking advantage of those in military life, including seeking out violations by creditors of servicemembers’ SCRA rights.

Operation Desert Storm. The law was written and has been enforced with the patriotic intention of protecting those who volunteer for (or are drafted into) military service. The rationale is that those who take up arms for our country shouldn’t be punished for not being able to meet all financial obligations while away from home. The courts routinely interpreted the law liberally to protect active military personnel. The U.S. Supreme Court has declared that the law must be read with “an eye friendly to those who dropped their affairs to answer their country’s call.” To invoke the protections of the SCRA, the military member must show that (1) he or she is on active duty; (2) he or she incurred the obligation prior to enlistment or prior to reserve activation to active duty, and (3) that military service materially affects the member’s ability to pay. Thus, the SCRA would not protect military personnel from actions on debts that were incurred while on active duty, nor would it help reservists not on active duty.

Origins of the SCRA

One of the specific protective provisions of the law is a cap of six per cent interest (or finance charge on installment contracts) on obligations incurred prior to active military service. This includes interest on credit cards, mortgages, and car financing.

The original Soldiers and Sailors Civil Relief Act was passed for the benefit of World War I soldiers. It was reenacted during World War II, and has remained in effect ever since. It was most recently modified during

April 2014

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Cap on interest Rates

by Michael

W. Dunagan

TIADA general counsel

To invoke the protection, the military member sends a notice to the creditor requesting relief under SCRA. The interest cap begins with the entry into active duty and lasts for the duration of active duty service. The law provides that any interest or finance charge contracted for that exceeds six percent is forgiven for the time the debtor is on active duty.

[The law] allows [military personnel and their dependents] to suspend or postpone some civil obligations, including repayment of car debt. Repossession Prohibited

The Act prohibits creditors from exercising self-help repossession. If the active-duty military member is in default, a creditor must seek all remedies through civil courts. Such remedies, even in a judicial proceeding, 19


are more difficult to come by because the Act authorizes judges to grant stays (delays) of actions if the debtor’s ability to appear in court is impaired by his or her military service (such as being outof-state or over seas). Courts routinely grant stays of 30-60 days, or until the military member can make an appearance. A secured creditor is also stayed from reselling secured property that was repossessed prior to active duty. A creditor can petition a court to lift the stay when it can establish that the military member’s ability to pay has not been impaired by military duty (such as where a reservist’s civilian employer continues to pay his or her wages and benefits). Courts usually won’t grant default judgments against active-duty military personnel. Plaintiffs are required by federal law and state rules of procedure to disclose whether the defendant who has failed to answer a suit is in the military. If such a disclosure is not made, the defendant can have the default judgment set aside while

on active duty or up to 90 days after release from active duty.

Violations and Penalties

A recent article in an industry trade journal highlights the impact of the SCRA on car creditors. An Alabama dealer had sold to and financed a vehicle for a 22-year-old man. A year later, the customer’s National Guard unit was activated and the debtor was sent to Afghanistan. The dealer, when informed of the activation, refused to lower the interest rate and subsequently repossessed the vehicle without a court order. His actions led to the dealer being indicted by a federal grand jury on two counts of violating the terms of the SCRA. According to the article, the man faces penalties of one year in prison and a $100,000 fine for each violation found.

Verifying Activation

There have also been news accounts of persons falsely claiming protections under the SCRA to hold creditors

at bay. Phony military documents had been presented to creditors to stall foreclosure of real estate in one case. When a debtor demands protections under the SCRA, the creditor should perform an investigation to verify the validity of the claims. The federal Defense Manpower Data Center (DMDC) provides access to a database of military personnel. The web address of DMDC is: https:// www.dmdc.osd.mil/appj/scra/scraHome.do. Once it is determined that the debtor is in fact on active duty in the military, extreme care should be taken to avoid violating the SCRA. Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 35 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

Garage Liability is our specialty. Kevin Smith Insurance Agency 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”

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TIADA Membership Application

2014

Business Name: ____________________________________________ Select one:

Dealer Member

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________

2014 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 2015) (all dues include NIADA membership)

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

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

www.txiada.com

512.244.6060

800.442.5944

Dues are not deductible as charitable contributions for income tax purposes but may be deductible as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20 percent of your dues dollars is used for lobbying activities and is therefore not deductible.

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The top dealers, best education and industry leaders

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Hyatt Regency Lost Pines Resort & Spa july 27–30, 2014

ta k e a d va n ta g e o f e a r ly b i r d p r i c i n g a n d RegisterToday! www.TiadaAnnualConference.com

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Education

headliners

Keynote Speakers

Some of the biggest names in the independent auto industry will be featured in our education line-up. Don’t miss out!

Chuck Bonanno Executive VP, Leedom & Associates

Buy Here Pay Here: benchmarks and best practices Chuck Bonanno, one of the most knowledgeable and entertaining figures in the business, will provide attendees with industry benchmarks based on one of the largest BHPH databases in the country as well as discuss the power of being a benchmark dealer. He will also analyze the industry leaders’ best practices and show you the power of emulating those practices.

Jay Rose President, Global Training Solutions

Jonathan Sprinkles The Power to Lead Jonathan is a television personality, featured columnist, author of 10 books, and a leading authority on connection strategies for leaders and achievers. Jonathan will share stories, examples and case studies with TIADA members that will help you make positive transformations in your business.

Give ‘em a WOW Experience — and Earn a Customer for Life Jay will teach you how staying away from the traditional “car language” responses so many dealers use can separate you from the pack. He will demonstrate what it takes to create the kind of “wow” experience for your customer that will keep them coming back for years.

Scott Muscutt Coach & Founder, Learn Lead WIN

What Do Winners Do? They WIN A former hockey player and coach, Scott led the Bossier-Shreveport Mudbugs of the Central Hockey League to two championships before forming his leadership training company, Learn Lead WIN. Scott will demonstrate 10 ways to foster an environment in which your teammates are engaged, motivated, and fully committed to giving your dealership a competitive advantage. (Helmets optional)

Leslie Pettijohn

David Walsh 30 Years in 60 Minutes: Lessons from the Front Lines After 30 years at the front lines of the auto business, David Walsh has seen it all — and then some. A true industry expert and veteran consultant to hundreds of dealers, banks and credit unions, David will share his hard-learned lessons on management, sales, leadership, financing, collections… and how he has survived and thrived for three decades in the business.

OCCC Commissioner

The New OCCC Licensing System — PLUS: Most Common Dealer Violations Commissioner Leslie Pettijohn, in conjunction with Consumer Protection Director Rudy Aguilar, will orient you to the new online licensing portal as well as discuss the most common violations recently found in dealer examinations.

April 2014

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Thank You to Our Current Sponsors

Platinum

Gold

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Thank You to Our Current Sponsors Silver

Bronze PLUS and Bronze AFS Acceptance, Inc. n Auto Master Systems, Inc. n Automotive Capital Resources, LLC Automotive Finance Corporation (AFC) n AutoRevo n Autostar Solutions, Inc. AutoTrader.com n AutoZone n Berkshire Risk Services n Cadence Insurance n CARFAX CARS Protection Plus, Inc. n Centrus Auto Finance n Collateral Protection Insurance Agency, Inc. Copart Auto Auctions n CounselorLibrary/Hudson Cook LLP n Dealer Funding n DealersSocket Floorplan Xpress LLC n J.P. Everhart and Company, Inc. n Kevin W. Smith & Associates, Inc. Lane Gorman Trubitt PLLC n Lobel Financial n Mullen Insurance Agency, Inc NCM Associates n Nowcom Corporation n PassTime / Gary Clymans & Associates Protective Asset Protection n REPAY: Realtime Electronic Payments n SecureClose Shilson, Goldberg, Cheung & Associates, LLP n SideCars, Inc.* n Sigma Payment Processing Skypatrol n Small Dealers Assistance, Inc. n SSW Dealer Supply Strategic Dealer Services n United Acceptance Inc. *Musical Act Contributor

Specialty Sponsors Hotel Key Card: ADESA, Inc. n Re-Charge Station: Leedom Group Lanyard: Arcana Insurance Services CONTACT: Patty Huber, patty.huber@txiada.com / 512.310.9795

April 2014

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TIADA DeAler AcADemy 2014

Keeping Your Dealership Legal and Compliant a seminar with Michael W. Dunagan, TIADA General Counsel Author of the standard-setting books, “Dealer Financing of Used Car sales” and “Texas Automobile repossession: A Lien Holder’s Legal Guide.” This class is the 2014 version of attorney Michael W. Dunagan’s ongoing quarterly compliance seminar. Featuring updates on both federal and state compliance issues, this session focuses on advanced dealership financing issues. This is the practical side of compliance from the association that understands you have a business to run — and you want to run it right. The seminar will focus on advanced financing concepts, with special emphasis on in-house financing, repossession & bankruptcy issues, OCCC compliance and federal regulations. u u u u u u u u u u

u u

New Customer ID requirements – what is acceptable? New Privacy Notice requirements – do we need a new, custom form? risk-based Pricing – what does the rule require? Credit Card Convenience Fees – what is allowable? New Adverse Action rule – who is affected? Consumer Financial Protection bureau (CFPb) – what can dealers expect? bankruptcy – when do we have to give the vehicle back? repossessions – When does the 60% rule apply? Is repo notice required? Do we have to return custom wheels? Do we have to disclose a GPs unit? OCCC Audits – what are the most common mistakes dealers make? TxDMV enforcement – advertising violations, title management issues & more

PLUS: Texas Legislative session – an update on bills that will affect the industry Q & A – don’t leave until you get all your questions answered by the top industry expert in Texas, Michael W. Dunagan

Monday, April 28, 2014 Fort Worth, Texas

seminar will be held from 9:00am - 3:30pm radisson Hotel Fossil Creek 2540 Meacham blvd. | Fort Worth, TX 76106 817.625.9911

sponsored by: Collateral Protection Insurance www.cpiai.com

Discount Pricing for Multiple Attendees! MeMbers – First registrant $149, each additional $99 (Must be from same dealership)

NON-MeMbers – $299

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fines& violations 13-1241 ENF Concepcion Vasquez DBA Vasquez Auto Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00 and attend a Dealer Training Seminar. 13-1244 ENF Armstrong Products, Inc. DBA H&R Auto Motors Failure to timely pay lien on a motor vehicle traded in: Finance Code 348.408(c), Occ Code 2301.651(a)(4). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $2,500.00.

Final orders for January, 2014. Agreed orders represent a settlement of the case between the department and the licensee. In most cases there has been a finding that a law has been violated by the licensee.

13-1245 ENF Jose Luis Prieto DBA House of Imports Aided and abetted the unlicensed sale of a motor vehicle by allowing the use of its GDN number: Occ Code 2301.351. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to take assignment of title or MCO: Transp Code 503.038(a)(3) and 43 TAC 215.141(a)(13). $750.00 and attend a Dealer Training Seminar. 13-1247 ENF Antonio Loza, Jr./Nancy Campos DBA Tony’s Auto Sales Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $750.00 and attend a Dealer Training Seminar.

13-1262 ENF Elaine Cox, DBA Premiere Cars Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. $500.00. 13-1263 ENF Aghdas Azadian Chughtai DBA Super Car Lot Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,500.00 and attend a Dealer Training Seminar.

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fines& violations

Upcoming Events TIADA Dealer Academy

Other TIADA Events

April 2014

April 2014

Legal & Compliant Radisson Hotel Fossil Creek 2540 Meacham Blvd. Fort Worth, TX 76106 817.625.9911 Online registration available at www.txiada.com

Directors Meeting Austin, TX

28 Keeping Your Dealership

May 2014

12 Dealer 101: Nobody

Told Me That! Crowne Plaza Hotel 12801 Northwest Frwy. Houston, TX 77040 713.462.9977 Online registration available at www.txiada.com

June 2014

9 Keeping Your Dealership

Legal & Compliant Hilton San Antonio Airport 611 N.W. Loop 410 San Antonio, TX 78216 210.340.6060 Online registration available at www.txiada.com

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21 TIADA Board of

July 2014

27–30 TIADA Annual

Conference & Expo Hyatt Regency Lost Pines Resort & Spa 575 Hyatt Lost Pines Road Lost Pines, Texas 78612 Online registration available at www.TiadaAnnualConference.com

27 TIADA Board of

Directors Meeting (in conjunction with the Annual Conference and Expo) Lost Pines, Texas

29 TIADA House of

Delegates Meeting (in conjunction with the Annual Conference and Expo) Lost Pines, Texas

13-1264 ENF Port Trading Corporation DBA Cherokee Trucks & Equipment Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failed to follow procedures and records requirements for the sale of a vehicle to be exported: 43 TAC 215.147. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). $500.00 and attend a Dealer Training Seminar. 13-1266 ENF Guadalupe Murillo DBA Murillo Truck and Trailer Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $3,000.00 and attend a Dealer Training Seminar. 13-1269 ENF Gary Birdwell DBA Birdwell’s Fine Autos Failure to have business hours posted at the dealer’s location: Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). Failure to answer the telephone, have it answered by a bona fide employee or to have an answering machine or service in operation during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1)(B). $500.00 and attend a Dealer Training Seminar. 13-1305 ENF Nidia Marisa Guerra DBA A-Briseno Auto Sales Permitted the use of its GDN or the location for which the GDN was issued for the purpose of avoiding the requirements of Chapter 503 in connection with the sale of salvage: Transp Code 503.038(a)(11). Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $1,500.00 and attend a Dealer Training Seminar. T e x a s

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13-1307 ENF Jose M. Chavez DBA J & M’s Auto Sales - Salvage #47457 Sold a motor vehicle to be registered and titled, owned by Respondent, without first transferring title to this vehicle to Respondent as owner: Transp Code 501.022(c), Occ Code 2302.354(a) and 43 TAC 217.81(b)(16). Respondent knowingly provided a false or incorrect sales price on an application for title: Transp Code 501.0155, 43 TAC 217.81(b)(16) and Occ Code 2302.354(a). $2,000.00 and attend a Dealer Training Seminar. 13-1308 ENF Rodrigo Antonio Hernandez DBA Rally Motors (Salvage #101249761) Respondent did not possess an acceptable ownership document or proof of ownership of a motor vehicle owned by respondent, in inventory and being offered for resale: Transp Code 501.104, 43 TAC 217.81(b)(16), 217.81(c) and Occ Code 2302.354(a). $500.00. 13-1310 ENF Rodrigo Antonio Hernandez DBA Rally Motors Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). $750.00 and attend a Dealer Training Seminar. 13-1311 ENF Daniel Flores, DBA Auto Max 77 Failure to notify of change of address or telephone number: 43 TAC 215.141(a)(6). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. License is revoked and oppose new or renewal for four (4) years. 13-1312 ENF Basin Subaru, LLC DBA Snyder Pre-Owned Center Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $1,500.00 and attend a Dealer Training Seminar. 13-1314 ENF Auto Siglo Motors, Inc. DBA Auto Siglo Motors, Inc. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and April 2014

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43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar.

13-1315 ENF Nabil Issa, DBA Affordable Auto Sales Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00 and attend a Dealer Training Seminar. 13-1316 ENF Milton E. Taylor, DBA Trucks & More Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Sold or offered to sell salvage vehicles without the proper license: 43 TAC 217.72(a). $500.00 and attend a Dealer Training Seminar. 14-0002 ENF RML Waxahachie Dodge, LLC DBA RML Waxahachie Dodge, LLC Misuse of a temporary tag on a vehicle without a valid certificate of inspection: 37 TAC 3.76(b), Occ Code 2301.651(a) (4), Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11). Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $2,500.00. 14-0005 ENF Ignacio Alvarez G., DBA NA Auto Sales Aided and abetted or indirectly facilitated the sale of a motor vehicle by allowing the use of GDN: Occ Code 2301.351(2) and Transp Code 503.021. Filed a false title and tax document: Transp Code 503.038(a)(2). $1,000.00 and attend a Dealer Training Seminar. 14-0014 ENF Jeffrey Michael Williams DBA Williams Group Auto Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)

(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar.

14-0017 ENF Wynona Pickett DBA Tommy Pickett Motor Company Failure to meet premises requirement(s): Transp Code 503.032 and 503.038(a) (14); 43 TAC 215.140(1)(B). Failure to provide satisfactory and reasonable evidence of regularly and actively engaged in business as a motor vehicle dealer: Transp Code 503.038(a)(9), 43 TAC 215.141(a)(14). License is cancelled. 14-0018 ENF Boughan Properties, Inc. DBA Boughan Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to have dealer or a bona fide employee present during posted business hours: Transp Code 503.032, 503.038(a)(14) and 43 TAC 215.140(1)(B). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $500.00 and attend a Dealer Training Seminar. 14-0020 ENF Cortes Automotive Group, LLC DBA Richmond Car Co. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $250.00. 14-0022 ENF Classic Car Liquidators, LLC Sold or offered to sell motor vehicles without the appropriate license for that type of motor vehicle: Transp Code 503.038(a) (14). $500.00. 14-0031 ENF Superior Auto Brokers, LLC DBA Superior Auto Brokers, LLC Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. Failure to meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). $250.00. 14-0032 ENF Juan Carlos Zaragoza, DBA Auto One Motors Failure to maintain complete records by licensed dealer or auction: 43 TAC 33


fines& violations 215.144(a). Failure to timely file monthly Motor Vehicle Inventory Tax statements: Transp Code 503.038(a)(10) and Tax Code 23.122. $250.00 and attend a Dealer Training Seminar.

14-0036 ENF The Hickham Company DBA The Hickham Company Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 14-0045 ENF Josefina P. Alanis/Baltazar Alanis DBA Discount Motors Sold or offered to sell motor vehicles without the appropriate license for that type of motor vehicle: Transp Code 503.038(a)(14). $500.00. 14-0056 ENF AutoSource Dallas, LLC DBA AutoSource Dallas, LLC Misuse of a temporary tag on a vehicle without a valid certificate of inspection: 37 TAC 3.76(b), Occ Code 2301.651(a)

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(4), Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11). Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00.

14-0057 ENF Jimmy Dewbre/George Dewbre DBA City Auto Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00. 14-0072 ENF Danmar Autoplex, LLC Misuse of dealer’s metal plate on a salvage vehicle: Transp Code 503.038 and 43 TAC 215.138(b). $500.00. 14-0075 ENF Art Castanon, DBA A & R Motors Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. $1,500.00.

14-0076 ENF Anna Cardenas, DBA Monte Cristo Autos Misuse of Internet-Down buyer temporary tag: Transp Code 503.0631 and 43 TAC 215.151, 215.153, 215.155 and 215.158. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to provide the Federal Trade Commission Buyer’s Guide in Spanish after conducting the sale in Spanish: 16 C.F.R. 455.5 and Occ Code 2301.651(a)(4). License is revoked and oppose new or renewal for four (4) years. 14-0077 ENF Clay Jackson, Inc., DBA Jackson Motors Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $750.00 and attend a Dealer Training Seminar.

T e x a s

D e a l e r

April 2014


14-0085 ENF Tipton Motors, Inc., DBA Tipton Hyundai Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely pay lien on a motor vehicle traded in: Finance Code 348.408(c), Occ Code 2301.651(a) (4). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $750.00 and attend a Dealer Training Seminar. 14-0086 ENF Golden Eagle Machinery, L.L.C. DBA TB Golden Motors Failure to notify of change of address or telephone number: 43 TAC 215.141(a)(6). $500.00. 14-0091 ENF Dewbre Auto, Inc., DBA A-1 Motors Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 14-0096 ENF Fun Town RV, LP Sold or offered to sell new motor vehicles without the appropriate license: Occ Code 2301.251 and 2301.252 and 43 TAC 215.141(a)(21). $500.00. 14-0098 ENF Pecan Auto Sales LLC Failure to notify of change of address or

April 2014

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telephone number: 43 TAC 215.141(a) (6). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. Misuse of temporary dealer tag or failed to comply with recordkeeping requirements: Transp Code 503.062, 503.0626 and 503.068 and 43 TAC 215.151, 215.152, 215.153 and 215.154. $500.00 and attend a Dealer Training Seminar.

14-0114 ENF Stephen Roberts Auto LTD DBA Roberts Auto Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). $500.00. 14-0117 ENF Rolando Lozano DBA R & D Motors Sold or offered to sell a motor vehicle at an unlicensed location: Occ Code 2301.362(a), Transp Code 503.021 and 503.027, 43 TAC 215.136. Sold a motor vehicle without certificate of title or title

receipt: Transp Code 501.152. $500.00 and attend a Dealer Training Seminar.

14-0120 ENF Tricolor Auto Group, LLC (Known in Texas as Tricolor Auto, LLC) DBA Tricolor Auto Failure to timely file Motor Vehicle Inventory Declaration reporting sales: Transp Code 503.038(a)(10) and Tax Code 23.121. $250.00. 14-0121 ENF C.W. Horse Racing, Inc. DBA C.W. Auto, Inc. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $2,500.00 and attend a Dealer Training Seminar. 14-0126 ENF Norberto Camarillo, DBA Cam-Rio Autos Filed a false title and tax document: Transp Code 503.038(a)(2). $500.00 and attend a Dealer Training Seminar.

35


fines& violations 14-0127 ENF Faustino Bolanos, DBA Cuates Auto Sales Failure to observe right of way: 43 TAC 215.140(11)(c). $500.00. 14-0138 ENF Kahlig Enterprises, Inc. DBA Bluebonnet Motors Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00. 14-0141 ENF Kenny Griffin, Inc. DBA KGS Motors Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,000.00 and attend a Dealer Training Seminar. 14-0142 ENF Fernando Garza DBA F & G Auto Sales Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to observe right of way: 43 TAC 215.140(11)(c). $1,000.00 and attend a Dealer Training Seminar. 14-0144 ENF Texas Repo & Consignment LLC DBA Texas Repo & Consignment LLC Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 14-0145 ENF Ricardo Garza, DBA Airport Auto Sales Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $500.00. 14-0146 ENF Refugio V. Sauceda, DBA Mario’s Auto Sales Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)(14), 43 TAC 215.151, 215.152, 215.153 and 36

215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to observe right of way: 43 TAC 215.140(11)(c). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $2,000.00 and attend a Dealer Training Seminar.

14-0149 ENF McCombs West Ford, Inc. DBA Drive Away Motors, Gillespie Ford Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 14-0152 ENF Sames Motor Company, Inc. Sold or offered to sell motor vehicles on consecutive Saturday and Sunday: Transp Code 728.002. $1,000.00 and attend a Dealer Training Seminar. 14-0163 ENF RMN Group, Inc., DBA Dallas Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $250.00. 14-0165 ENF Amaru Motors LP DBA Charlie Clark Nissan Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $500.00. 14-0166 ENF Big Valley Auto Auction, L.P. Sold or offered to sell new motor vehicles without the appropriate license: Occ Code 2301.251 and 2301.252 and 43 TAC 215.141(a)(21). $500.00. 14-0179 ENF Bill Batis, DBA Southtown Car Corral Failure to make dealership records available for inspection: 43 TAC 215.144(a) and 43 TAC 215.141(a)(3). $250.00. 14-0188 ENF Rorie F. Cowden, DBA Hidden Valley Cars Failure to provide satisfactory and reasonable evidence of regularly and actively engaged in business as a motor vehicle dealer: Transp Code 503.038(a)(9), 43 TAC 215.141(a)(14). $500.00. 14-0189 ENF Jimmy Don Hallford DBA Teardrops of Central Texas Participated in a new motor vehicle show without obtaining written approval in a timely manner: Occ Code 2301.358. $1,000.00. 14-0192 ENF Auto Pronto, Inc., DBA Auto Pronto, Inc. Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a)

(14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. Failure to allow purchaser to select county for registration: Transp Code 501.0234(d),(e). $2,500.00 and attend a Dealer Training Seminar.

14-0198 ENF Roberto P. Espinosa DBA Espinosa Auto Sales Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00 and attend a Dealer Training Seminar. 14-0210 ENF South Park Motor Plex, Inc. DBA South Park Motor Plex Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Filed a false title and tax document: Transp Code 503.038(a)(2). $1,750.00 and attend a Dealer Training Seminar. 14-0211 ENF James A. Bray, DBA Texas Pride Trailers Filed a false title and tax document: Transp Code 503.038(a)(2). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $1,500.00 and attend a Dealer Training Seminar. 14-0224 ENF Charles Clark Chevrolet Co Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $1,000.00. 14-0229 ENF Cooper H. Williams, DBA Coop’s Car Sales Misuse of buyer temporary E-tag: Transp Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Failure to timely transfer title and pay sales tax: Transp Code 501.0234. $500.00. 14-0234 ENF Peltier Enterprises, Inc. DBA Peltier Auto Advantage, Peltier Nissan, Peltier Pre-Owned Supercenter Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $250.00. 14-0235 ENF Adam Mitchell, DBA Budget RVs of Texas Misuse of buyer temporary E-tag: Transp T e x a s

D e a l e r

April 2014


Code 503.063, 503.0631 and 503.038(a) (14), 43 TAC 215.151, 215.152, 215.153 and 215.155, Transp Code 503.038(a)(12) and 43 TAC 215.141(a)(10)(11) and Occ Code 2301.651(a)(8). Sold a motor vehicle without certificate of title or title receipt: Transp Code 501.152. $500.00.

licensed dealer or auction: 43 TAC 215.144(a). Failure to meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). Failure to display license: 43 TAC 215.140(14). $300.00.

14-0240 ENF Todd Evan Atkins, DBA Crowley Auto Depot Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $250.00.

14-0061 ENF Melissa B. Sierra, DBA Sierra Mobile RV Service and Parts Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to display license: 43 TAC 215.140(14). $200.00.

13-1284 ENF Academy LTD DBA Academy Sports & Outdoors Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $100.00.

14-0067 ENF Nanessa Lopez Martinez DBA Patriot Motor Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $100.00.

13-1301 ENF Eduardo Lozano, DBA Auto Land Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. Failure to take assignment of title: Transp Code 503.038(a)(3). $150.00.

14-0092 ENF Mike Klein Motor Co. Inc. DBA Mike Klein Motor Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $100.00.

14-0040 ENF Kennon Enterprises LLC DBA Aloha Auto Group Failure to maintain complete records by

14-0093 ENF Jacqueline Jack Beck, DBA Beck Auto Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. $50.00.

April 2014

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14-0094 ENF Clean Car Motors DBA Clean Car Motors Inc. Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. $150.00. 14-0095 ENF American Auto Sales DBA Payless Car Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. $150.00. 14-0097 ENF Car Citi Financial Inc. DBA Car Citi Financial Inc. Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). Failure to meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). $200.00. 14-0136 ENF F. Scott Sims DBA Freedom Motors Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. $50.00.

37


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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 Finan all intere ve my of the p this To secure security d of part do not recei default, Security: (1)Kee writing. get a refun t nonpayment, ge: If you ises in payment. so, I can NO.: Late Char n abou $ all prom scheduled . If I do ds. STOC K put ...... informatio % of the er to........ I owe early yment refun ment for ................ the deal and prepa pay all that refer to this docu ................ rce. Ask nt: I can uled date, I will ................ DATE: to enfo Prepayme l Information: e the sched cult........ REDI TOR: diffi........ full befor are........ SELL ER/C ises........ Additiona repayment in .$ D ................ : ER red ken prom ................ FINA NCE : Spo ces) ........ VIN NUMB ADD RESS any requi servi ANT ................ AMO UNT ... $ ORT s, and IMP ................ sorie ION OF , ST, ZIP: ................ ........ acces CITY IZAT ........ ITEM ................ uding any ................ form. ........ER: $YEAR e) ........ ........BUY PHONE: price: (Incl Color: ................ (2) R:abov box 1. Cash ................ UYE L ................ ment follow ing: CO-B(s) ment ....$ ................ MODE........ fied, the Downpay ................ 2. Downpay ........: ........ .....$ RESS tions speci l:(3) Deferred ......... $ ........ ADD payment ........ ................ r to the and condi Mode ................ MAKE ZIP: Cash down ent (Refe VEHICLE ................ ................ the terms $ ................ E under CITY, ST, ................ ................ downpaym ................ you,........ ................ase from........ VEHICL $ Deferred ................ ) ................ ................ y purch ........ belowE: -in........... PRICE Make: 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 VEH ICLE........ . $ 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 comp anies damage A. Net $ no resp damage ...mes physical company TOTAL 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 any YOU WIL comp ................ eme ........ .$ 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 ess: ................ of Cash ................ tory tax... hand Addr ................ .......... $ ........ the part the nt: rs for ................ er’s inven % of Amou ................ ................ ................ to buye _ired by law. Lienged y of G. Deal ................ Dealer's $ copal ................ ________ ................ a ada ..........$ requ tration fees. berchar and forcarg er's ntory Tax r taxes........ may er ................ ................ notice is ................ : ser labo deal but $ e and/or regis deal ........ dad ........ H. Othe Inve This se ........ the the law, pued the ........ of parties. Ask canti licen Dated and % the pero ired by by ................ ................ ns,una rnment of title fee... usioer not requ por la ley, ________ e exced period. ................ ................ is pay Tax e rights. I. Gove $ ed to antyerido , excl certificate no pued ary rage will nt agre fees......... requNo.: cove ................ erfee even mor State Sales ment rnment no esStock the warr e amoungación By:A docu dealnabl mentación Color: inspection ................ Quoted anty The J. Gove give you docu duri ment rario vehicle ial fee.TY. ofdewarr faildocu d a reaso r.............. es" may rnment and that de an offic RAN to deale hono ONion............. anat not exceeems rario is not ATI License Fees $ K. Gove . Un $ anti expl TED WAR fee mayred l.syst ce fee paid Un honofor full ORM ........ lied warr ary feeLIMI a venta on INF ........"imp ty servi mentary cove Model: N: oficia ume con INuna FULL ........ document (St. & No.): os nt therario Registrati e law, ley. L. Depu ionadDEstat laer Fee: A the sale. A docu License doc TRA relac e es un hono DURATIO anty Und to mentary erida. por mentos : ons requ $ 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: purpo se) (5) ... $ Un hono r como gasto las partes. ........ $ describe mentary $ ........ D: and Docu e: ........ compradoe acordada por paid ERE ** is (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 inspection, ce Char ................ ................ $ state Finan ........ Finan .... ........ the ........ ........ performs and other charges. which the ................ which the to ................ ................ If the Seller cts, ges Upon ges Upon ................ ................ nmentagency. nce, service contra ssed) ess: ................ zed Char zed Char . ge is Asse Addr ........................ ................ or gover insura Plus Itemi Total Itemi ce Char ................ Seller to a third party retain parts of the ........ Balance $ TAL h No Finan Unpaid ................ ................ insurer SUB -TO paid by may also than $ 5. Total By: (Upon Whic ................ tion fee will be have. The or loss. ................ and the Seller nt not more Quoted I already damage been Sales Tax ................ ................ d by Seller state inspec ctible amou of has not insurance 6. Total (5 + 6) of in: Sales Tax) agencies. Any e fee will be retaine eventand with a dedu de proof OF Cash Tendered $ in the time Financed nment trade servic : ssed Upon provi or to any nt I owe, the policy ATION not ing at this 7. Amount wantrd and deputy (Not Asse paid by Seller to gover e Irega Good Until in the amou anyon paid under entary fee has TO eter is workTHE ITEMIZ andSED Charge with will be n to be odom ge or loss nce from ants CAU 8. Financefee, and license fee inspection fee. Docum insura company warr the perso st dama DUE $ rtyand asstated above. The LUDED IN insurance AGE you propets each ED ed again ge. DAM as an TOTAL name esen obtain insur is INC Taxes, title retain $7.00 of by dama TY ge must le may repr I IS teral r PER ed to flood airab will act. hase nce. I l milea ❒ FINANC ed the colla PRO or unrep Purc the Seller this contr expos rty insuraand actua INSURANCEtotal loss law, You byfigur I must keep Rate. ired of prope a URY AND not been owe under ct to 1. The true BIL H SALE red ntage not INJ subje RANCE: not requ fee CAS and has all that I to give you proof ced. ITY been ILY rende Perce is ce may al ❒ paid title, repla fee LIA INSU balan ct as TY I have red or ipal ary the Annuary docu FOR has notBODreconditioned ce subje . I agree PROPER nce until details RGErepai sameAasdocument A princmentipal balanfor GEleFOR of the The vehic 2. ERA ess in Texas sale. al fee. rebuilt/or this insura law. A CHA not be the porti theon no esof sale, id princ idto COV cle. Ask salvage, ing unpaby ired unpa acióntime I must keep rized to do busin rate not an offici vehi is may Thethis actfee s relat to the issued a : UNLESS e is requ the URANCEbeen contr autho uled. mentIos ary ment document Code of docu am notic contract, de days Thisment ge on rario CT. must be %.docu as asched de URANCE BILITY INS lingcedocu made char jo k s Finan es. This 90 ose. spaces.able date of this in mane parti Fee: Aby for hand Un hono were thersTexa LIA ITY INS the dad razonition s an extr l. trac s de blan t with S CONTRA rate from the particular purp eter ents by is mentary at buye ed canti to lable gasto days oficia any THI to d paym 90 a una LIABIL T FINANCED, Docu ed n defin cond IN con act all rarioicerador como agree as s for r odom withi ED nt as if od charg hono exceder conteains t is avaies un The contr ** certain TED methbe amou Price a serv contract bility or of fitnesthe mileage and/oprior owner trac ngs may Salecon al comp no puedand und er buyda it or if it AMOUN IS NOT INCLUDNCE CHARGE: llment earnibut Totalnable a service es.aciónIfno youcarga sing ice hanta a reaso E INSPEC dand I read ment ied by the charg owe serv ICL ts. mentación ents, ns. excee In disclo e ser A enters into antie s of merc docu righ de docu deexcl por laI ley. usio pued befo ered. CT. S VEH alre of Paym ned check anty, or ed CT vehicle suppl provide. OTHERS FIGURE THE FINAthe scheduled insta all that rario warr AND rario pero ract TRAUn reture, ition Total ts.E THI hono or hono requerida en warr no impli and rer may reading of the le was last regist cont la ley, ing CON Un n es ance . add HAV Charge, es, lYrigh factu por this you s a writt in adv pric CON TRA sales tax, eter YOU officació S be erido sign MA the vehic le manu ge by apply the Finance una venta HOW YOU notif SERVICE r odomor my lega CT, pay requ THIwill notos uctible, seller make congive charg may Esta YOU r vehic ect and there ce Char in which TRA willionad ge and/o maj ER. es" prot:IF righs.t to - Irelac Unless the MSle,OF the moto anti de the laterage, ded er toLER r vehic the Finan Charge. You based las parte the milea S CON by the state e the thatTHI of some tolist TER por ract ER'S ORD asa DEA hav not inclu to cove to the buy the moto RANTIESed, .on Iada lied warrlaw, vehicle inform ationg was issued THE thisERcont a Finance ce Charge does se. OF WAR ss or TO THE LOT THIS BUY n udin the acord ASK the moto I rSIGNED le which Noteicelaw "imp EEimpli keep N:LAIM THE TH ON NG: stat will TIO AGR . Under on the rever s covering ORE on writte, inclthe vehic s, expre to a Finan

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fines& violations 14-0137 ENF Jonathan Wayne Cadle DBA Cadle’s Auto Sales Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. $50.00.

14-0231 ENF Roy Blanchard DBA B & B Auto Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

14-0171 ENF Tommy Yorkman DBA Legacy Motor Company Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

14-0258 ENF John P. Hencerling DBA Southwestern Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $200.00.

14-0172 ENF 87 Auto Sales Inc. DBA 87 Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

14-0259 ENF Cooter Cars, LLC DBA Cooter Cars, LLC Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

14-0173 ENF Serja Partners LTD DBA D’Yessy Auto Sales Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. $50.00.

14-0260 ENF Frontier Motor Co. Inc. DBA Ed’s Auto Sales Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). $100.00.

14-0174 ENF Jesmar Partners Ltd DBA Chihuahua Motors Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. $50.00.

14-0271 ENF Auto I Con DBA Auto I Con Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure

to meet premises requirement(s): Transp Code 503.032 and 503.038(a)(14); 43 TAC 215.140(1)(B). Failure to display license: 43 TAC 215.140(14). $300.00.

14-0276 ENF Clifton Chevrolet Inc. DBA Clifton Chevrolet Inc. Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to remove Texas plates: Transp Code 502.451, 43 TAC 217.41. $150.00. 14-0277 ENF Hastings Auto Sales LLC DBA Hastings Auto Sales LLC Failure to display buyer’s guide: 16 C.F.R. 455.2, Occ Code 2301.651(a)(4). Failure to maintain complete records by licensed dealer or auction: 43 TAC 215.144(a). $200.00.

Cipg insurance issued by

Vehicular Service insurance Company, RRg* insured/Reinsured

Limited Warranty program (LW) ceded for Thirteen Dollars

($13) per LW

insured/Reinsured

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ceded for Sixty Nine Dollars

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Bhph/Lhph “pay-As-You-go” programs Available This reduced fee program is for 100% internet transactions only. please visit

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April 2014

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Great Location! Commercial property located near downtown on a busy corner. This property has: H Wash bay with drain to wash cars H Outdoor Shed H Fence with sliding gate for security H Security lights outside H 2 Office Areas H $2,000 Deposit H $2,500 per month

314 N. General McMullen San Antonio, TX 78237

CALL 210-436-8242 x201 FOR AN APPOINTMENT TODAY! 39


ATTENTION STUDENTS!!!

$1,000 TIADA

SCHOLARSHIP

SCHOLARSHIP APPLICATION

DEADLINE

May 1, 2014 {Applications and/or any required documents received after May 1, 2014 will NOT be accepted.} Criteria and Guidelines 1. Each applicant must be entering or currently enrolled in an accredited college or a trade school. Proof of enrollment must be included with this application.

Date: Name:

DOB:

Address: City:

State:

Zip:

State:

Zip:

Telephone Number: High School Last Attended: Address:

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

City:

3. Each applicant must complete the application form.

Other High Schools Attended (Names and Addresses):

4. Applicant must be in the top 25% of class. If applicant is currently enrolled, provide college transcripts with official university imprint. In addition, a copy of high school transcripts is required for applicants who are college freshmen. 5. Provide a detailed description of participation in any academic, honorary, civic or extracurricular activities in college. In addition, a detailed description of high school activities is required from college freshmen along with a college acceptance letter. 6. Compose an essay of no more than two typed, double-spaced 8 ½” x 11” pages. The essay should discuss the applicant’s relationship with their TIADA scholarship sponsor, current education goals and future aspirations as it relates to the applicant’s subject/training area. 7. Provide at least two (but no more than three) letters of recommendation, no older than one year, from college/high school faculty, employers or other appropriate sources (not related).

Dates of Attendance: Date of Graduation:

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

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

State:

Zip:

Sponsor Signature Should you have any questions, please contact TIADA at 800.442.5944. Please return the completed application with all required documents to: TIADA Attention: Scholarship Applications 9951 Anderson Mill Rd., Suite 101 / Austin, TX / 78750


regulation matters

A Change in Ownership & Your OCCC License

L

ast month in this space we had a look at the process of notifying the OCCC and TxDMV of a relocation of your dealership or the opening of an additional location. This month we will take a look at a related OCCC licensing matter: a change in your business ownership. There is no “one-size-fits-all” process here ­— far from it. As one might imagine, step one is to identify the exact change in ownership being contemplated. Generally speaking, a change affecting an owner with less than 10% ownership interest does not require OCCC notification. In all other cases, there are two possible outcomes: you will need to either file a license amendment (simpler) or file a transfer of license (more complex).

License Amendment

The following scenarios do NOT require a Transfer of License; in these cases, filing a license amendment is sufficient: When changing the organizational form of your business (corporation to LLP, etc) with no change in ownership. When there are no owners being added or removed; there is just a change in the existing owners’ percentage of ownership. However, please note the exceptions below: • If an owner that previously held under 10% obtains an ownership interest of 10% or more, a Transfer of License is required. • If an owner that previously did not hold a controlling interest obtains a controlling interest, a Transfer of License is required. To file a license amendment, complete the “Amendment to a License” form (form ADM-20) available at occc.state.tx.us and remit it to the OCCC along with a $25 amendment fee. If you are changing your organizational form, you will also need to submit a copy of the relevant portions of the organizational document for the new entity (e.g., articles of incorporation; or articles of conversion and partnership agreement) addressing the ownership and management of the new entity. In some cases, additional information may be requested by the OCCC.

Transfer of License

Virtually all other types of ownership change will require a Transfer of License. These scenarios include, but are not limited to:

April 2014

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by Danny

Langfield

TIADA deputy director

Generally speaking, a change affecting less than 10% of ownership does not require OCCC notification.  sole proprietors and general partnerships, any For relinquishing of an ownership interest, or the obtainment of a new ownership interest. Any change in ownership of a licensed limited partnership (LLP) interest: • in which a limited partner owning 10% or more relinquishes that owner’s entire interest; • in which a new limited partner obtains an ownership interest of 10% or more; • in which a general partner relinquishes that owner’s entire interest; or • in which a new general partner obtains an ownership interest. Any change in ownership of a licensed corporation: • in which a new stockholder obtains 10% or more of the outstanding voting stock in a privately held corporation; • in which an existing stockholder owning 10% or more relinquishes that owner’s entire interest in a privately held corporation; • any purchase or acquisition of control of 51% or more of a company which is the parent or controlling stockholder of a licensed privately held corporation; or 41


• any stock ownership changes that result in a change of control (i.e., 51% or more) for a licensed publicly held corporation.  Any change in the membership interest of a licensed limited liability company (LLC): • in which a new member obtains an ownership interest of 10% or more; • in which an existing member owning 10% or more relinquishes that member’s entire interest; or • in which a purchase or acquisition of control of 51% or more of any company that is the parent or controlling member of a licensed limited liability company occurs. Here are just a few examples of situations that would require the Transfer of License: A father and son are 50/50 partners. The father wishes to retire and turn over his ownership interest to the son. A sole proprietor wishes to bring in a new investor as a partner in the dealership. The sole owner of a business passes away, leaving the business to family members. A dealership is sold and will be taken over by all-new ownership. One business partner wishes to sell his entire interest to an existing owner or to a third party.

42

Filing a Transfer of License is essentially the same process as applying for a new license, with a few additional items required (a Transfer of License Kit, which includes the necessary paperwork as well as a checklist, is available at the OCCC website). You will need to include a copy of any document that transferred ownership in a license by gift, devise, or descent. You may also need to include a “Request for Permission to Operate.” (This document is not included in the transfer kit. Contact TIADA for assistance composing this request.) Permission to operate is required if the transferee is a different entity than the transferor, and wishes to conduct business under the existing license until the transferee’s new license is approved. Permission to operate may not be required if the transferee and transferor are the same entity; for example, if one partner is buying out the other, but the business will still operate under the same name. I realize that the scenarios above by no means encompass all possible variations of ownership change. For example, we didn’t discuss ownership changes to the parent company of a licensee, among many other variables. If you are a TIADA member and you are looking at an ownership change, you can always call the association and we will be happy to help you through the process of updating your OCCC license. Next month: A Change in Ownership & Your TxDMV License.

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April 2014


feature Cat Bark Selling by Jody DeVere

CEO of AskPatty.com, Inc.

It takes more than a great marketing campaign to earn her business

O

ne of the basics you should know about marketing to women is that marketing (in the traditional sense) is just one step. You can create a fantastic advertisement or marketing promotion, even incorporate compelling features based on feedback and input from women, but if the experience at the dealership is uncomfortable or stressful, you won’t get the sale. In their book, Waiting for Your Cat to Bark?, co-authors Brian & Jeffrey Eisenberg help marketers understand how to deal with the reality that the customer is in control. They suggest becoming your own customer and going through your dealership buying process. Pretend that you’re a prospect just at the beginning of a purchase, searching for information. What search terms would you use? What stores would you visit? What questions would you ask the salesperson? Then, how does your business line up with this? Dealerships that want to succeed must take every interaction into account and understand that for today’s consumers, actions, not words, are what motivate. “The experience has become the brand,” say the authors. “It’s about experience... theirs.” According to the authors, today’s consumers, like cats, are independent, unpredictable and finicky. Yet many businesses are still approaching consumers as if they can simply be trained, like Pavlov’s dog, to respond to a wellcrafted marketing message. Delivering an

April 2014

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outstanding sales experience is a winning strategy for all customers, but women in particular, are more likely to make the purchase if the sales process was positive. A study, “Elevated Expectations: The New Female Value Equation”, found 97 percent of women expect good customer service everywhere they shop. Eightythree percent buy more when in a store with good customer service. The study also found that 89 percent of women choose a store that offers better customer service over another with similar merchandise and prices. When women have bad customer service experiences, 80 percent say they will not go back to that store, even if it was just one bad encounter. And 94 percent say they will tell other people about the bad experience. There is a great opportunity for dealerships to improve the image of their brand and increase positive word-of-mouth by focusing on how to improve the experience of female customers.

Three Quick Tips for Earning Her Business:

P  atience: Women consider how a vehicle is go-

ing to fit into their long-term lifestyle before making a purchase. They are a lot more cautious and careful than men and usually take longer to make their decision. They want to buy a car they will be happy with for years. Refrain from high pressure closing tactics; be patient and don’t rush her process.

L  isten: Women buyers like to tell their “whole

story” to sales people. Having outstanding listening skills helps you build a relationship; understand her lifestyle and car buying needs; and create a friendly, enjoyable experience.

T rust: Women have become nearly every family’s chief purchasing officer. She looks for a salesperson who wants to be a part of her buying process, who shares her values regarding honesty, respect and trust. 

43


Please Welcome Our Newest TIADA Members Dealer Members 5 A & M Motors Tony Foster 14300 NW Freeway Houston, TX 77040 Angel Fire Motors William Whatley 9201 Hwy 290 West Austin, TX 78736 Austinite Auto Sales LLC Hesham Abdelmotaleb 904 Wagon Trail Austin, TX 78758 Car Snappy Joe Montealvo 640 W. 28th Street Houston, TX 77078 CarMax Auto Superstores 7295 Billy Thomas 21636 Katy Freeway Katy, TX 77449 Cheaper Than Dirt Autos Wilhelmina Walker 14394 West Highway 90-A Gonzales, TX 78629 Daniel’s Auto Sales Michael Daniel 18783 FM 2493, Rear Flint, TX 75762 Drive In Auto, Inc Richard Isaacs 19002 Interstate 45 Spring, TX 77373 Epic Auto Sales Scott Montgomery 12915 Cypress North Houston Rd Cypress, TX 77429

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MR&K Tariq Hashmi 3390N Bowen Rd Arlington, TX 76012 Quest Motors Luis Galbez 16806 Telge Rd Cypress, TX 77429 Reliable Automotive Maria Galdamez 3505 Houston Hwy Victoria, TX 77901 Roadhawk Auto Sales Joshua Chaney 1310 N Shepherd Dr Houston, TX 77008 Texas Auto Solutions LLC Scott Townsend PO Box 2351 Cypress, TX 77410 Texoma Auto Sales Rebel Blackwell 3700 W. Houston St. Sherman, TX 75090 TJ Motors of Belton Terry Boston 502 W. Ave O Belton, TX 76513 Tricolor Auto- Bandera Erik Arriaga 6300 Bandera Rd. San Antonio, TX 78238 Tricolor Auto- Grand Prairie Marbella Gonzales 1018 E. Main St. Grand Prairie, TX 75050 Triplex Auto Exporter Nabil Darwish 2903 19th St Port Arthur, TX 77642

Associate members American Motor Credit, LLC James Torchia 285 Parkway 575 Woodstock, GA 30188 Automotive Capital Resources, LLC David Alvarez 6330 Manor Lane Miami, FL 33143 ConflictCorrection.com Joel Hatch PO Box 262183 Plano, TX 75026 Dealer Funding Melvin Prim PO Box 888759 Atlanta, GA 30356 DealerSocket Dan Davis 100 Avenida La Pata San Clemente, CA 92673 EFG Companies Todd Cooper 122 W. John Carpenter Fwy Irving, TX 75039 Karon N. Murff CPA, LLC Karon Murff PO Box 7109 Huntsville, TX 77342 SecureClose Whit Lester 1300 Summit Avenue Ft. Worth, TX 76102 SSW Dealer Supply Tom Smith 12955 Enterprise Way St. Louis, MO 63044

Main Street Motors Ruth Lemler PO Box 1837 Corsicana, TX 75151

Urban Auto Sales Jeffrey Urbanovsky PO Box 1231 Manor, TX 78653

TexCap Financial, LLC Jason Ybarra 14875 Landmark Blvd. #108 Dallas, TX 75254

Mission Auto Loans Eric Curran 803 E. Exp 83 Mission, TX 78572

Victory Motors Chris Roden PO Box 339 Pampa, TX 79066

Westlake Financial Dora Gonzalez 4751 Wilshire Blvd Los Angeles, CA 90010

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April 2014


L EE

JUNE 3, 2014

S

E

UP

DALLAS, TX

D

O M GR

S

BOOTCAMPS

O

BOOTCAMPS

BUY HERE-PAY HERE

MINAR

Manager’s Boot Camp

Presented by: Chuck Bonanno

rials! e t a M w e N *

Keeping your managers up to date in today’s fast-paced and competitive market is essential. This one-day seminar will immerse your management team in the most current processes, procedures, technology, compliance and industry benchmarks to help you keep your competitive edge.

JUNE 4, 2014

Collections Boot Camp

Presented by: Chuck Bonanno

Staying abreast of proven technology and techniques is essential to keeping your collections team performing at a high level. Your collections managers and account representatives will receive training on how to best keep your customers current and how to collect the money instead of the car. This seminar is a can’t-miss opportunity for collection professionals.

JUNE 5, 2014

Sales Training Boot Camp

Presented by: David Brotherton

With more purchase and financing options available to the BHPH/LHPH consumer today, a passive approach to sales isn’t going to get it done. This seminar will highlight the prospecting tools and proven sales methods that will give your sales team an edge over the competition.

REGISTER TODAY!

www.twentygroups.com • 800.966.8733


behind the wheel

Martin

And the Survey Says…

I

must admit, I feel like I know you pretty well. I see you at the auctions, the conference, Lobby Day and chapter meetings. I talk to you on the phone and via email. Each quarter I have an opportunity to visit with the board members you elected and I regularly participate in association committee meetings. You would think with all of that interaction I would know you, our members, pretty well. Unfortunately, I don’t have scientific numbers to back up my assumptions, but that is about to change in the form of our first-ever TIADA online survey. We know your time is valuable and that your inbox probably receives other requests for your feedback. However, taking this survey will not only help your association, it could help you. Getting a better understanding of our membership will help TIADA advocate for your interests at the capitol. We can make some general assumptions about the demographics of our members and about the issues that most directly affect your business, but without your individual feedback, we have to rely on a small sampling of TIADA members to inform our actions. We want to have the facts ready so that when it comes time to represent you on important or divisive issues, we can be confident that TIADA member interests as a whole are being served.

by Jeff

tiada executive director

On a personal level, being a member of TIADA puts you in a league with others who have similar challenges and business decisions to make. Wouldn’t you like to know where you stack up next to others in the industry? Do other dealerships provide employee incentives that you are not providing? Is there a vital tool or resource being used by dealers that has shown proven results? Has your business sustained longer than the average TIADA member? Having the answers to these and other questions could be the source of ideas for improving or promoting your business. This will be a statistically valid survey with better than +/- 4% accuracy. It will be the first of its kind and the results will be made available to members at the annual conference in July. Keep an eye on your email because we’ll be distributing the survey within the next few weeks. Our goal is to have 400 dealers participate. If you need to update your email address to be sure you’re included, please call the state office at 800-442-5944 or email info@txiada.com. Also, if you have questions you want to see included in the survey, please share them with us by emailing info@txiada.com. This annual survey will make us a better association. In just five years we will have significant historical data and we will be better equipped to represent your needs and interests.

We will be administering an online survey to all dealer members and our goal is to get 400 dealers to participate. Can we count on you? 46

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April 2014


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

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Texas Dealer, April 2014