Texas Dealer, November 2015

In This Issue: – TIADA Talks with the New TxDMV Board Appointees – EMV Standards for Credit Cards Now in Effect – Michael W. Dunagan on Property Damage Insurance

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Volume XV

2016 TIADA Board of Directors

TREASURER Trey Crouch/Trey Crouch’s Wheels On Credit, Inc. 636 E. Business 83 McAllen, TX 78501 Office: 956.972.0700 Email: trey@wheelsoncredit.com VICE PRESIDENT, WEST TEXAS (REGION 1) Paul Scott/Fiesta Motors – Lubbock 2599 74th Street Lubbock, TX 79423 Office: 806.765.3640 Email: pscott@gofiestamotors.com VICE PRESIDENT, FORT WORTH (REGION 2) 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) Wayne Meagher/M D Auto Sales 2002 W. Main Street Grand Prairie, TX 75050 Office: 972.641.9598 Email: wayne@navchiefs.com VICE PRESIDENT, HOUSTON (REGION 4) Juan Sabillon/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 Office: 713.644.2446 Email: brentfordct@yahoo.com VICE PRESIDENT, CENTRAL TEXAS (REGION 5) Robert Beck/Stop N’Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 Office: 210.432.1101 Email: stopdrive@texas.net VICE PRESIDENT, SOUTH TEXAS (REGION 6) Dan Keetch/Keetch Motors 1010 S. Staples Corpus Christi, TX 78404 Office: 361.882.3541 Email: dankeetch51@yahoo.com VICE PRESIDENT AT LARGE James Hobson/H-Town Motors 3714 Dyer Street El Paso TX 79930 Office: 915.564.9797 Email: htownmotors@sbcglobal.net VICE PRESIDENT AT LARGE Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 Office: 713.641.0980 Email: ryan.winkelmann@sbcglobal.net 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

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N o v e m b e r 2 015

contents

PRESIDENT ELECT Kathrine Tolsch/CICO Auto Sales 11050 Harry Hines Blvd.

Dallas, TX 75229 Office: 214.352.9282 / Fax: 214.352.8227 Cell: 972.333.6024 Email: cicoauto@verizon.net

SECRETARY Greg Zak/Dixon Motors 7902 North Freeway Houston, TX 77037 Office: 281.931.1300 Email: gzak@windstream.net

I s s u e 11

texasDealer

PRESIDENT Phil Lathrop/VP Auto Sales Inc. 2921 S. Garland Avenue Garland, TX 75041 Office: 972.864.1300 Email: phillipl@vpautosales.com

CHAIRMAN OF THE BOARD Brent Rhodes/Fiesta Motors 5150 Industrial Way Drive Buda, TX 78610 Office: 512.312.2201 Email: brent@fiestamotors.net

/

6 Officers’ Message

by Trey Crouch, TIADA Treasurer

8

Industry Trends

10

2015 VIP Auction Card Directory

13 Legal Corner: Chasing Property Damage Insurance: A Broken Model

by Michael W. Dunagan

14 Local Chapters 20 TIADA Day at the Auction 2015 Tour 25 On The Cover: A New Car Buying Experience

by Mark Dubis

26 Upcoming Events 30 EMV Standards for Credit Cards Now in Effect

by Pam Hendee

31

TIADA Member Application

32

TxDMV Board Continues to Evolve Compiled by Texas Dealer staff

37 Regulation Matters: VW Diesel Emissions Fiasco Keeps Recalls Front and Center

by Danny Langfield

43 New Members

46 Behind the Wheel

by Jeff Martin

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

DID YOU KNOW THAT... there are some very useful links to state agencies resources under the “links” tab of the TIADA website? You can also visit this site if you need legally compliant forms for Texas car dealers or if you need to look up a recall using a VIN. The Editor of the Texas Dealer magazine is Teresa Orkun, Marketing Communications Coordinator of TIADA. To change your address for subscription and/or for other TIADA products, call the TIADA state office at 800.442.5944, 512.244.6060 or fax 512.244.6218. E-mail: info@txiada.com. New Membership/Subscriptions: If you are a member of TIADA, you may receive this magazine free of charge. Membership year runs from Jan 1 to Dec 31. Back issues are available for $20 each subject to availability. Send a check or money order, along with your name and mailing address to TEXAS DEALER, Attn: Back Issues, 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750. Sorry, no billing. Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

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officers’ message

by Trey

How to Stay Relevant in 2016 and Beyond

W

hether you’ve been an independent automotive dealer for 30 years or 30 minutes, you likely chose this business for similar reasons. Dealers jump into this high risk business in hopes of a generous reward in exchange for their risk and liability. Our members are courageous small business owners that believe there is immense opportunity in this industry. That belief is core to who we are as a group, and as individual dealers, but maybe today you’re questioning that belief.

As I write this, many of you are questioning what you forecasted for 2015 and even more are uncertain of what 2016 holds. My hope is that this article will leave you with some questions that convert to action items for your team.

In the last few months, I have spent a significant amount of time visiting with many of our members at auctions, conferences, and more informal gatherings. I have been asked a lot of questions, but the driving question is “What’s trending?”

Dealers and service providers alike are trying to figure out what the “next right thing” is. What should they do next? What can they do next?

You might say, “That’s old news. We’ve seen this cycle before!” We all agree that change is normal and that the industry experiences feast and famine. However, the velocity at which we are now experiencing change is unprecedented. Beyond acknowledging those changes, we have to learn to anticipate them. As 2015 comes to a close, we have to look ahead to 2016 and beyond. What must we do to be relevant, as the environment around us changes ever more quickly?

Crouch

Trey Crouch’s Wheels on Credit, Inc. (McAllen) TIADA TREASURER

What do we see ahead?

More technology. In the past 10 years we have seen technological advances and products far beyond what we anticipated. This development is only gaining momentum and we need to be ready for it. As we look ahead there are a few key questions: What are you doing with regard to investing technol ogy into your business?

Are your systems fully integrated?

Is your web presence optimized for mobile devices?

Do you use a CRM, and if so, is it being used

correctly?

What are you doing to mitigate risk in your business?

Are you in compliance with all state and federal law?

“I think so” is the answer I often get to these questions, which typically means “probably not.”

More policy. Recent lawsuits in our state have pushed this to the front of my mind. As we seek to grow, we have to grow safely and compliantly.

Do you have a written cell phone use policy?

Are all of your policies explicitly written and consis tent applied?

Do you have a written policy for handling customer

complaints?

Do you log them and document what was done to

correct the situation?

Do you audit your internal controls to be sure they

are being followed?

I have been asked a lot of questions, but the driving question is “What’s trending?” (cont’d on pg. 8) 6

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November 2015

U ACQ

IRES

+ ED GEAR Y G OLO ERS. DEAL E CH N T H P N AT I O D BH T AN ENER N G E T D X NE EPEN SSING R IND O F AMA L LY IFICA SPEC

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Officers’ Message (cont’d from pg. 6)

What are we going to do?

Trends Non-Captive Lenders — 2Q 2015 Top 20 — Statewide CARMAX AUTO FINANCE SANTANDER CONSUMER FINANCE DRIVETIME FINANCE CORP WESTLAKE FINANCIAL SERVICES WELLS FARGO DEALER SERVICES ALLY CAPITAL ONE AUTO FINANCE CREDIT ACCEPTANCE CORP USAA FEDERAL SAVINGS BANK CHASE AUTO FINANCE

LOBEL FINANCIAL GATEWAY ONE LENDING & FINANCE RANDOLPH BROOKS FCU CALIFORNIA REPUBLIC BANK CNAC EXETER FINANCE CORP AMERICAN CREDIT ACCEPTANCE SECURITY SERVICE FCU NAVY FCU TD AUTO FINANCE

Top 5 — Houston DMA

Top 5 — DFW DMA

CARMAX AUTO FINANCE SANTANDER CONSUMER FINANCE DRIVETIME FINANCE CORP ALLY CAPITAL ONE AUTO FINANCE

CARMAX AUTO FINANCE SANTANDER CONSUMER FINANCE WELLS FARGO DEALER SERVICES DRIVETIME FINANCE CORP ALLY

Top 5 — San Antonio DMA

Top 5 — Austin DMA

CARMAX AUTO FINANCE SANTANDER CONSUMER FINANCE RANDOLPH BROOKS FCU DRIVETIME FINANCE CORP WESTLAKE FINANCIAL SERVICES

CARMAX AUTO FINANCE SANTANDER CONSUMER FINANCE TAC ACCEPTANCE GROUP LLC WELLS FARGO DEALER SERVICES WESTLAKE FINANCIAL SERVICES

Number of used vehicles sold via non-captive lenders in 2nd Quarter 2015 increased by 26% versus same period in 2014.

In comparing the same time periods, average credit score for those sales moved up 5 points from 624 to 629.

Source: Experian Automotive. For more information on this and other trends contact Brandon Shelley at brandon.shelley@experian.com or visit their website at www.experian.com/automotive/auto-data.html 8

A recent survey suggests that what worries dealers most right now is customer retention. It isn’t enough to deliver a good customer experience anymore. We have to do more.

So what do we do? Stock higher-end inventory? Jump into a different segment of the market? Every decision will have consequences. Every yes is a no to something else.

In order to be relevant in the coming days, we are going to have to be even better at “Doing Right Things Right”. We are going to lead our people and manage their activities well. We are going to build great companies by increasing productivity while doing things better, faster, and with less capital. We are going to protect our company culture by focusing on our core values. We are going to be clear with our purpose and our targets. We are going to set goals and take action steps to get there and we are going to hold ourselves and the people on our team accountable.

Most importantly we are going to be courageous, tenacious and we will accept the responsibility to lead the way into the future. Our best chance for success in this business is to remain a unified body of members, one that I am always proud to represent. There is a distinct difference in the thinking of a dealer who is informed and engaged in the independent used car business community.

I can say that it has been interesting to hear what is on the minds of my fellow dealers as well as those who support them with products and services. Most will sum up 2015 as the year of increased regulation and competition with some reduced revenue and customer retention. It isn’t all great news, but we will finish strong regardless as the overall market is likely to hit 15 million units for 2015.

As we prepare to close out 2015 and put plans in place to get 2016 started off on the right path, what kinds of questions are you asking yourself?

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November 2015

2015 TIADA VIP Auction Card Directory

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

Alliance

e ew Allianc

AA Longvi

Alliance

AA Abilene

AA Waco

Alliance

AA Dallas

’s America AA Austin/ San Antonio

’s ’s America America AA Dallas AA North Houston

Houston

AA AA Metro Austin of Texas

Heart AA El Paso AA Waco Independent Can! America Kids for Texas Lone Star AA Cars Arlington Carrollton CM Dealers Companys of OKC Auction

AA

Big Valley AA Donna

Corpus

Austin

El Paso

Lubbock

San Antonio Permian

Houston

Basin Dallas

Houston

ew North Longvi McAllen

DFW

ABILENE

CORPUS CHRISTI

Alliance Auto Auction Abliene

Insurance Auto Auctions*

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

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

www.allianceautoauction.com

www.iaai.com

C.M. Company Auctions, Inc.

DALLAS / FT.WORTH METROPLEX

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

ADESA Dallas

www.cmauctions.com

www.adesa.com

AUSTIN

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

ADESA Austin

Alliance Auto Auction Dallas

www.adesa.com

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

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

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

Insurance Auto Auctions* www.iaai.com

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

Metro Austin Auto Auction www.metroautoauction.com

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

www.allianceautoauction.com

9426 Lakefield Blvd.

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

America Can! Cars for Kids www.charitycarauctions.org

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

America’s AA Dallas

www.americasautoauction.com

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

Insurance Auto Auctions* www.iaai.com

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

Insurance Auto Auctions* www.iaai.com

* VIP card accepted for sell fees only 10

Christi

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

Manheim Dallas

www.manheim.com

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

Manheim Dallas Fort Worth www.manheim.com

12101 Trinity Blvd.

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

Texas Lone Star Auto Auction www.tlsaa.com

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

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

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

Insurance Auto Auctions* www.iaai.com

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

Manheim El Paso

www.manheim.com

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

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November 2015

Insurance Auto Auctions*

SAN ANTONIO

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

ADESA San Antonio

www.iaai.com

Insurance Auto Auctions* www.iaai.com

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

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

Manheim Houston

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

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

www.manheim.com

Insurance Auto Auctions*

Manheim Texas Hobby

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

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

www.iaai.com

HOUSTON

www.manheim.com

LONGVIEW Alliance Auto Auction Longview

ADESA Houston

www.allianceautoauction.com

www.adesa.com

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

America’s AA Houston

www.americasautoauction.com

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

America’s AA North Houston www.americasautoauction.com

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

Houston Auto Auction

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

Insurance Auto Auctions* www.iaai.com

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

LUBBOCK Insurance Auto Auctions* www.iaai.com

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

Insurance Auto Auctions*

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

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

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

Insurance Auto Auctions* www.iaai.com

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

Manheim San Antonio www.manheim.com

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

WACO Alliance Auto Auction Waco www.allianceautoauction.com

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

Heart of Texas Auto Auction

www.heartoftexasautoauction.com

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

OKLAHOMA CITY, OK Dealer’s Auto Auction of OKC, Inc. www.daaokc.com

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

MIDLAND / ODESSA

www.houstonautoauction.com

November 2015

www.adesa.com

www.iaai.com

11

Happy Thanksgiving from your friends at

Collateral Protection Insurance Agency Inc. You don’t have to wait to talk to Bill Murphy about your Custom Collateral Protection Insurance Program, call him now-(512-799-2886) 12

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November 2015

legal corner

T

Chasing Property Damage Insurance: A Broken Model

he buy-here-pay-here dealer had done everything by the book. The motor vehicle retail installment contract called for the debtor to obtain and maintain property damage insurance that protected the lien holder. New customers without current insurance were sent down the street to purchase policies that would protect the lien holder.

Dealership employees were trained to review binders and policy declarations to make sure that the dealer was listed as loss payee, and, if any question arose, to call the insurance company or agency to verify coverage.

Then, on the occasions when the dealership had received notices that policies were about to be cancelled for non-payment, staff members had called and written to remind debtors of the insurance requirement and to urge that payment be sent in. Records were kept and notations were made of the many calls and letters and copies of cancellation and reinstatement notices were duly filed away. The labor-intensive procedures to keep financed vehicles insured often required additional employees and great expense.

Yet, when the dealer’s collateral was damaged in an accident that rendered it a total loss, the insurance company refused to pay.

Several years ago, these steps would have been sufficient to protect a car creditor’s interest in the collateral in all but a few exceptional cases.

Today, however, taking these same procedures is increasingly becoming a waste of time for lien holders who are finding that, regardless of their due diligence in enforcing the property damage insurance requirement on

November 2015

T e x a s

D e a l e r

by Michael

their contracts, claims are routinely being denied and coverage contested by insurance companies.

What changes have taken place over the last decade or so that have brought about this current state of affairs? What has transpired to turn a relatively safe system of insuring collateral to a hit-and-miss game of Russian Roulette when it comes to getting paid a fair price for repairs or replacement when an accident occurs?

There was a time in the not-too-recent past when insurance companies issued a uniform driver’s policy that contained standard terms and condition, including the rights of a named loss payee (there were several variations of the Texas Personal Automobile Policy, but differences were mostly inconsequential). Under those policies, the lien holder could count on coverage applying to just about any damage, less the deductible.

The most common dispute then was typically over the valuation of the vehicle in the case of a total loss or over reasonable repair costs if it was repairable (also known as “low-balling”).

The loss payable clause that appeared in most standard policies actually gave the lien holder greater protection than the debtor, as the lien holder wasn’t subject to some of the defenses an insurer could raise to avoid paying the named insured.

The Texas Personal Automobile Policy generally covered anyone lawfully driving the vehicle with the

Dunagan

W.

TIADA GENERAL

COUNSEL

The old model has broken down and is not working for buyhere-pay-here dealers and other subprime lien holders. permission of the owner. By and large, the standard polices provided for at least 10 days’ notice of cancellation or change in policy to a loss payee (the lien holder) before coverage would be denied, regardless of the reason for cancellation, giving the car creditor an opportunity to make alternative arrangements.

All of that has now changed, especially in the sub-prime vehicle market, where car buyers are rated as sub-prime insurance risks. The old model has broken down and is not working for buy-herepay-here dealers and other sub-prime lien holders. Once an accident occurs, there seems to be a better-than-even chance that coverage will be totally denied. If the lien holder gets lucky and liability is accepted by the insurer, the odds are good that a low-ball settlement offer will be made that is often thousands of dollars under the generally accepted price-guide valuations. Adjusters are now commonly relying on insuranceindustry insider price guides that appear

13

Local Chapters VICTORIA Dennis Schroller, Victoria Autos Direct 361.578.0530 Dennis@victoriaautosdirect.com Meeting – 1st Monday (Monthly) FORT WORTH Jerry Smith, HJ Smith Automobiles 817.282.0102 hjsmithauto@yahoo.com Meeting- 4th Thursday of December, February, April, June, Aug. and Oct. DALLAS COUNTY Kevin Mims, VP Auto Sales 972.864.1300 kevinm@vpautosales.com Meetings as needed/TBD HOUSTON Michael Zak, Dixon Motors 281.931.1300 houiada@houiada.com Meeting – 2nd Monday (Monthly) SAN ANTONIO Robert Beck, Stop N’ Drive Motors 210.432.1101 stopdrive@texas.net Meetings quarterly (dates announced at www.txiada.com) EL PASO Ricardo Gardea, Cars Plus 915.778.8285 cars_plus@att.net Meeting – 3rd Friday (Monthly)

to utilize the lowest possible prices one can find for a particular vehicle.

The low-ball offer is usually pitched as a “take it or leave it” proposition, with a flat-out dare to take the insurance company to court.

A Change In The Law

What first precipitated the collapse of the old collateral-protection insurance model was the passage, by the Texas Legislature over 10 years ago, of a “de-regulation” bill that authorized insurance companies to take their pencils to the old standard policies and tailor-make their policies to meet the needs of individual customers. Immediately, agencies and companies began offering “limited coverage” policies to sub-prime customers at reduced prices.

Low income car buyers are lured to agents who sell the limited policies by TV and print ads that assure the car buyer of hundreds of dollars of saving. The main reason for the savings is the fact that coverage is limited in ways that drastically reduce the odds of the insurance company having to pay a loss.

Once insurance companies were allowed to custom-write their own policies without meeting any minimum standards, it was natural to expect that, whenever a loss occurred,

companies would change their policies to exclude coverage for that particular type of occurrence. Making matters worse, lien holders rarely see the actual policies which include the ever-expanding escape clauses.

For instance, a limited policy may specify that only the named driver is insured (a “named-driver only” policy).

Under this type of policy, if an accident occurs while a relative or co-resident is driving, the claim will be denied. It is a fact of life, known to car creditors and insurance companies, that vehicles sold to financially strapped families are often driven by multiple drivers. The frequent “straw purchaser” problem that sub-prime dealers and creditors face also means that someone other than the named insured may be the primary driver of the vehicle. Often the warning that a policy is a limited-coverage policy is a series of cryptic numbers that appears at the bottom of a declaration page signifying the designation of various endorsements.

Another variation of the limited policy is the “named excluded driver” endorsement. That is, a specific driver in the household, as identified by the insurance company’s census records, is considered to be a bad risk. Often after the original binder or declaration page has been given to the dealer, the insurance company issues an amendment

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naming the specific excluded driver.

Sometimes these amendments are sent to the loss payee, and sometimes they aren’t. It doesn’t take a genius to figure out who will be driving the car when the accident takes place, and the response of the insurance company to the claim.

On December 20, 2012, in response to a request from TIADA, the Office of Consumer Credit Commissioner issued an opinion letter declaring that car creditors can reject “named-driver only” and “named excluded driver” policies as being inadequate to meet the requirements of motor vehicle retail installment contract collateral protection requirements. But the letter also warned that creditors could not reject policies that did not contain named-driver or excluded-driver limitations just because those policies were written by companies or agents that the creditor had bad experiences with.

The ability of car creditors to reject those limited policies for propertydamage insurance obviously does

not apply to liability policies. If, for instance, a car debtor (or any other driver for that matter) gets rear-ended by a vehicle that’s covered by a limited policy, there is a chance that the driver of the vehicle causing the accident is not a named covered driver or is an excluded driver. Unfortunately, there is no way the driving public can check on the status of the liability insurance covering the vehicle that is going to cause a future accident.

The Texas legislature in 2013 passed a bill that requires insurance companies to disclose to insureds in advance if the policy (either property damage or liability) excludes specific drivers or only covers the named party. Attempts then and in the 2015 session, both supported by TIADA, to prohibit limited policies were unsuccessful.

Retroactive Cancellation

We’ve seen a number of coverage denials recently that had nothing to do with named-driver-only or

named-driver-exclusion limitations.

The basis of denial was the fact that the debtor/insured bounced a check or stopped payment on the check given for the insurance premium down payment, installment payment, or reinstatement charge. In one case, Progressive Insurance turned down the claim because the debtor/insured, who wrecked the vehicle within days of buying it, ran to the bank and stopped payment of the check it had just given to the insurance agent for the premium.

It apparently just didn’t make sense to give up money for insurance for a car that has been wrecked and would soon be abandoned. The insurance company used the stopped payment as the basis to proclaim that the policy was cancelled from its initiation despite the fact that a binder of coverage had been given to the dealer, and the dealer relied on the binder in good faith to believe that there was in fact coverage in place.

The general unfairness of the “retroactive cancellation” clause in a policy is

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readily apparent. A lien holder accepts the binder of coverage in good faith, and relies on the existence of coverage to release the vehicle to the debtor. Yet without any knowledge or control over the status of the premium check given to the agent, the lien holder’s protection can be taken away — under the legal fiction that the policy never existed.

Notice Never Received

Most policies provide that a lien holder will be notified of cancellation at least 10 days before coverage is cancelled. Yet, it is not uncommon for lien holders to find out — after the accident occurs — that the insurance company is claiming that the policy was cancelled prior to the accident although no notice of cancellation was received by the lien holder. In many of these situations, the insurance company will produce a multi-page print-out of notices supposedly sent.

We’ve also seen coverage denials based on some exception that appears in the fine print of the policy (even though a copy of the policy was never given to the dealer) that allows the insurance company to escape the 10-day notice requirement under certain circumstances.

A similar type of claim denial involved the unilateral cancellation of the policy, or a change of covered vehicles by the debtor — without notice to the lien holder, of course. In a recent actual case,

the policy holder removed the car from coverage just hours before it was totaled.

Some lien holder claims are denied because the insurance company says it can’t find the insured, and takes the position that it can deny claims when an insured is “uncooperative” or can’t be located. In one case referred to in one of the newspaper articles, a liability claimant contended that he was told

by Old American that they couldn’t reach the policy holder, even though the policy holder had admitted liability.

The claimant actually went to the insured party’s house and got him to call the insurance company to remind them where he was.

Deny, Deny, Deny

The recent experiences of subprime car creditors bring to mind the plot line of the best-selling John Grisham novel, and later the movie, The Rainmaker. A health insurance company had denied medical coverage for its insured who was dying of leukemia. During the trial of the lawsuit against the fictionalized insurance company, testimony was elicited that the company automatically and intentionally denied all claims, hoping the claimants would eventually just give up.

The irony of the breakdown in lien holder protection under the traditional collateral insurance model is that

dealers are constantly sending their customers out to purchase insurance policies, thus creating business and putting money into the cash registers of the very companies that are denying coverage after losses occur. Further, dealers and other car creditors are paying their employees to verify insurance coverage and diligently monitor non-payment notices.

They then expend additional time to chase down debtors to urge them to take more money to those same insurers to keep the policies in effect.

More and more car creditors are questioning the wisdom of spending their resources and employee time to generate business for companies that are selling products that don’t effectively cover the creditor’s interest in their vehicles, and will likely resist paying claims when damage to financed vehicles occurs. In next month’s Legal Corner, we’ll examine some of the alternative approaches available to car creditors in finding better, more cost-effective arrangements for protecting their collateral.

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.

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TIADA DEALER ACADEMY 2015

Better BHPH Financials: How to Get Organized for Growth Presented by David Keller, CPA, a principal with the dealer group at CliftonLarsonAllen, one of the nation’s top 10 CPA and consulting firms.

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

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How to increase their credit line, and/ or establish a new line The importance of presenting clean, clear financial statements Cash flow management (the key to future planning) How to determine how many units you need on hand

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How to determine how many dollars you need on hand Static pool analysis, what it is and how it works How to properly value inventory, including turn time How to read financial statements Proper expense allocation and costing

Thursday, November 19, 2015 San Antonio, Texas DoubleTree San Antonio Airport Hotel 37 NE Interstate 410 Loop • San Antonio, TX 78216 210.366.2424

8:30am - 12:00pm MEMBERS – $99 (includes up to 3 attendees per dealership)

NON-MEMBERS – $199

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

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TIADA Day at the Auc tion

feature Mark Brown of Red Carpet Auto Sales in New Braunfels explains the benefits of the TIADA membership to a prospective new member in ADESA San Antonio.

the

2015

Tour

Once again, the TIADA booth made 16 stops at 9 different auctions during this year’s tour for a grand total of 243 new members! Special thanks to these auctions for their support!

Michael Zak of Dixon Motors with Rich Curtis, General Manager of Manheim Texas Hobby.

Ahmed Belmeshkan explains the benefits of the VIP card to 2 potential members.

Membership is the life blood of any organization. Without new members we would become stale. I enjoy meeting the new guys, mentoring some and have made some great friends over the years!

Mark Brown, Red Carpet Auto Sales, New Braunfels 20

April 7 . . . . . . . . . . . . . . . . . . . . . . . . . Manheim Houston April 15 . . . . . . . . . . . . . . . . . . . . Manheim San Antonio April 21 . . . . . . . . . . . . . . . . . . . . . America’s AA Dallas April 22 . . . . . . . . . . . . . . . . . . . . . . . . Manheim Dallas April 23 . . . . . . . . . . . . . . . . . . . . . . . . . . Manheim DFW April 30 . . . . . . . . . . . . . . . . . . . . . . ADESA San Antonio May 5 . . . . . . . . . . . . . . . . . . . . . . . . America’s AA Buda June 17 . . . . . . . . . . . . . . . . . . . . Manheim San Antonio Sept 2 . . . . . . . . . . . . . . . . . . . . . Manheim San Antonio Sept 8 . . . . . . . . . . . . . . . . . . . . . . . America’s AA Buda Sept 15 . . . . . . . . . . . . . . . . . . . . . America’s AA Dallas Sept 16 . . . . . . . . . . . . . . . . . . . . . . . . Manheim Dallas Sept 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . Manheim DFW Sept 22 . . . . . . . . . . . . . . . . . . . . . . . Manheim Houston Oct 1 . . . . . . . . . . . . . . . . . . . . . . . . . . Manheim Hobby Oct 8 . . . . . . . . . . . . . . . . . . . . . . America’s AA Houston

It is a partnership and a team effort between the dealer (Wayne Meagher of M D Auto Sales), the TIADA staff (Aimee Frei-Miller) and the auction (Robert Hammonds, GM America’s Auto Auction Dallas).

“Another new member…. Another winner.”

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“It’s all written on the white board…

A no-brainer indeed!”

I like hosting “TIADA Day at the Auction” because I believe in the association and watching the interaction between staff and current or potential members is exciting.

Information, protection and bestpractices for our Independent Dealers are critical to their and our success.

We look forward to partnering with TIADA for years to come.

Mike Browning, General Manager, Manheim San Antonio

Chris Elkins of M D Auto Sales checking in a current member so he can receive his Mark Brown and another happy new member at America’s AA in Buda. $25 bonus coupon.

So let me get this straight…. I only pay $215 at this point and if I use the VIP card twice I actually make money?

While the new member fills out his form, Wayne Meagher prepares his bonus coupon and VIP card.

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Ahmed Belmeshkan, of New Rio Grande Motors in Fort Worth, working the crowd at Manheim DFW and America’s AA Dallas, respectively.

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TOP RECRUITERS Congratulations and thanks go to the TIADA top recruiters who each recruited 20 or more new members in the last year, earning them a trip to Las Vegas for the 2016 NIADA Convention. The trip includes airfare, hotel stay for four nights, all meals and complete event registration.

Ahmed Belmeshkan Recruited

79 New Members!

es, Sal ie o t Au rair MD and P Gr

Ahmed Belmeshkan New Rio Grande Motors, Inc. Fort Worth

79 New Members

Wayne Meagher

Mark Brown

Michael Zak

M D Auto Sales Grand Prairie

Red Carpet Auto Sales New Braunfels

Dixon Motors Houston

59 New Members

58 New Members

20 New Members

In addition, Ahmed, Wayne and Mark all qualified to receive a NIADA Crystal Eagle Award at the 2016 NIADA conference for recruiting 100 members in a two-year period. Three Crystal Eagles flying to Texas; that’s outstanding and unprecedented.

Congratulations!

Thanks also go to...

Chris Elkins, M D Auto Sales, Grand Prairie, 4 new members Brent Rhodes, Fiesta Motors, Buda, 3 new members Robert Blankenship, Texas Auto Center, Austin, 3 new members Jose Engler, Irving Motors, San Antonio, 2 new members Juan Cadenas, Cadenas Autos, Pharr, 2 new members Phil Lathrop, VP Auto Sales, Garland, 2 new members Lisbeth Arias, Dario Auto Sales, Grand Prairie, 2 new members

…and to the other 33 dealers who did their share and “just got one”.

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on the cover

by Mark Dubis

Automotive Writer and Co-Founder of Carfolks.com

T

he current way of selling vehicles via new and independent auto dealers is not under any eminent threat, but technology and access to information creates opportunities for both consumers and auto dealers.

Accessible and open source software, low web hosting costs, and access to off-shore programmers have prompted a host of automotive sales startups over the last few years. The barriers to entry have dropped considerably, and with access to venture funding, anyone with a creative idea and a good elevator pitch can launch “the next big thing.�

This article looks at four new initiatives, explores their business model, and identifies the threat level to traditional auto dealers and the current sales process. It is also curious to note that most of these sites have their roots

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in Silicon Valley (one in Atlanta) and none seem to have experienced auto professionals as a founder or member of their executive teams. This is not surprising since these companies hope to pull consumers away from auto dealerships.

Beepi

Licensed Dealer: Yes, but acts as an Agent/Broker Location: Los Altos, CA Business Model: Peer-toPeer sales, does not maintain an inventory Return Policy: 10 Day no questions asked, money-back guarantee Beepi.com targets private vehicle sellers, provides an inspection of the vehicle, and then posts it on their site for prospective buyers to review.

Essentially they are an online auto

broker. An inspector examines each vehicle, takes photos, and then sets a price for the vehicle. If the seller is not happy with the valuation they can walk away from the deal.

Because their inspectors certify the vehicle it cannot be more than 7 years old. Buyers search the site, review the gallery of images and determine if they want to buy any vehicles.

Clicking the Buy Now button initiates the purchase process.

The website is visually appealing and easy to navigate. Images are large and crisp, but on the downside, they are currently operating in only about nine states on the west coast and selection of vehicles are limited. Based in the San Francisco area, the site and inventory will appeal to techies. I noted 53 BMW vehicles for sale and they ranged in price from $18,000 to $74,000 for a 2013 BMW M6 coupe.

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Essentially, this is an upscale Craig’s List website with an inspection component. Dealers could easily compete with this model by offering and/or promoting the fact they buy vehicles outright from sellers with no obligation to buy a vehicle. http://beepi.com

Upcoming Events TIADA DEALER ACADEMY November 2015 19 Better BHPH Financials

Carvana

Licensed Dealer: Yes Location: Atlanta, GA Business Model: Physical dealer-

ship with focus on online sales Return Policy: 7 Day no questions asked, money-back guarantee return policy (less any shipping costs)

July 2016 24 TIADA Board of Directors Meeting

Carvana.com focuses on the angst that consumers have when starting the car shopping process. They position themselves as the “anti-car dealership.”

Like Beepi they have an easy to navigate website, provide detailed photos of the vehicles (although not as many as Beepi does), and offer to deliver the car or truck right to the door of the customer.

They offer the ability to speak with a “Carvana Advocate” who is basically a Business Development Center staffer.

The Advocate shares vehicle details, discusses finance options, and helps to expedite the sales and delivery process.

Carvana indicates their process cuts out the middleman, the dealer, but in actuality they are a dealer. They own the vehicles, house them in their facility called a vending machine, and implement a discount pricing policy to be competitive in the market.

They provide the services of a traditional dealer but hype the online process and offer free delivery within 75 miles of their location. To gain any scale they will have to implement a large advertising campaign, and once consumers start to compare Carvana prices with local auto dealers, any advantage they had will be lost. http://carvana.com

24-26 TIADA Annual

Carlypso

DoubleTree San Antonio Airport Hotel 37 NE Interstate 410 Loop San Antonio, TX 78216 210.366.2424 Online registration available www.txiada.com

December 2015 7 Keeping Your Dealership

Legal and Compliant DoubleTree by Hilton Hotel Dallas Market Center 2015 Market Center Blvd., Dallas, TX 75207 214.741.7481 Online registration available www.txiada.com

OTHER TIADA EVENTS January 2016 18 TIADA Board of Directors Meeting Austin, TX

April 2016 18 TIADA Board of Directors Meeting Austin, TX

San Antonio, TX

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

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Licensed Dealer: Yes Location: San Carlos, CA Business Model: Broker who purchases from auctions – no in-stock inventory

Return Policy: 30 day money-back

guarantee return policy only for unexpected mechanical problems

Carlypso’s unique value proposition is that it has no inventory but instead acts as a broker for auto shoppers. They are a licensed dealer in California and acquire their vehicles the same way traditional auto dealers buy their vehicles... at the auction.

Visitors to the site must register before they are able to see available inventory and it seems they have their chat feature handled by a third party so they were unable to answer my question about their $750 fee for cars sold below $20,000. I wanted to know if that meant there was no mark-up on the auction purchase price and fees. Carlypso also says on their site that a traditional dealer charges $2,500 more than they do for vehicles but they provide no evidence to back up that statement. Overall the website experience is very cumbersome, but as more users come to the site I am sure they will continue to improve the user experience.

They do not offer test drives but instead tell the customer to find a similar car in the classified ads and then go and test drive that car to get a feel for the car. This creates extra steps for the consumer and in reality drives more prospects to local dealers.

They also do not offer any return policy but instead allow you to purchase a contract cancellation option. If you experience a mechanical problem within 30 days of purchase they do offer a money back guarantee. However, they do not define what constitutes an unexpected mechanical problem. Does it mean the transmission must drop out or if the power window motor dies the vehicle can be returned? Clearly there are a host of potential issues when you buy vehicles sight unseen online.

Their business model has a number of issues to address and the average consumer looking for a family sedan will most likely visit classified vehicle and dealership websites in their local T e x a s

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area to begin their shopping process. http://carlypso.com

Shift

Licensed Dealer: No Location: San Francisco and Los Angeles, CA

Business Model: Peer-to-Peer

Broker/Listing Service; but houses the vehicles in warehouse for up to 30 days and takes car to prospective buyers for a test-drive Return Policy: 7 day/250 mile return policy Shift is similar in format, look and feel to Beepi. Large images fill the screen, a promise of the “no hassle” buying experience. Their inventory is sourced from private parties looking to sell their vehicles in the San Francisco area, and their unique twist is bringing the vehicle to the potential driver for the test-drive.

When you want to sell your vehicle Shift will send an inspector to do a

15 minute evaluation and offer a noobligation listing proposal. If they do not sell your vehicle at the listed price, they will make up the difference between the actual sales price and the original listed price. Inventory is what you would expect in their current market area, and is heavily tilted towards Asian and European brands.

Sellers get paid their funds within 7 days of the sale to ensure that all payments have been processed. Shift does not take ownership of the sale, but only facilitates the private party sale. The seller has to give up their vehicle and it is housed at Shift’s facility during the listing period which is usually 30 days. This can be cumbersome for drivers using their vehicles on a daily basis.

If there is a lien on the vehicle, Shift will use the proceeds from the sale to satisfy the loan and then remaining amounts will be paid to the seller. They do not take trade-ins but, depending on the vehicle, they will

assist in helping to sell the vehicle through their sales channel.

Think of Shift as a Concierge Listing Service without many of the services that auto dealers provide for their customers. http://driveshift.com All of these initiatives try to tout their advantage as an “anti-dealer” channel, when in reality they make it more difficult for consumers to use their process. It also appears that scalability will be a challenge for them as most average markets and consumers will not find the appeal of their programs outside of tech center areas. Most auto purchase transactions involve browsing an inventory of vehicles, taking test-drives, obtaining a trade-in valuation, and financing of the purchase. In more cases the financing is a critical component and it appears to be the weakest area of the initiatives listed above.

I asked Kevin Mims of VP Auto Sales in Garland, Texas whether his

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customers were comfortable doing preliminary work online during the car buying process? He shared, “The majority of our customers start their buying process on our website and submit a credit application. Very few of our customers do their preliminary work (send us documents) before coming into the dealership. We inform them what to bring when they come to the dealership and what the process will be when they get here.� Clearly Kevin understands that setting the expectation is important and helps build trust between the customer and sales professionals at the dealership.

What dealers can take away from these programs and potentially incorporate into their websites is the enhanced functionality for site visitors, the presentation of vehicles in large format, and how the supporting information is presented. A return policy also seems to be a main point of interest to consumers but can be a challenge with independent auto dealers especially with credit impaired buyers.

VISIT US ON THE WEB www.daaokc.com

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

GARAGE LIABILITY WAYMER & ASSOCIATES

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T e x a s

Proud Member for over 20 years

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November 2015

What are your plans for the future?

Every dealership needs a solid succession plan. Whether you plan to liquidate your assets, sell your business or pass it on to the next generation, you need a smart strategy to make it happen. Formed as part of the Leedom Group, the Dealer Advisory Group advises and consults with dealers looking to sell their business or develop a succession plan. Headed by Chris Leedom and and an experienced staff of advisors the Dealer Advisory Group is specifically tailored to the automotive business with a focus on non-franchise and BHPH operations.

Talk with us about your exit strategy and let us advise you on what makes the most sense for you.

To set up a free consultation with the Dealer Advisory Group, contact David Leedom at 844.235.0896 ext 317.

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feature EMV Standards for Credit Cards Now in Effect

by Pam Hendee

VP of Sales and Marketing for REPAY

E

ffective October 1, 2015, the liability for fraudulent, counterfeit credit and debit card transactions shifted from issuers to merchants, unless those merchants have migrated to a point of sale (POS) terminal that accommodates credit and debit cards manufactured in compliance with the EMV (Europay/MasterCard/Visa) standard.

What is EMV?

EMV is a set of standards for interactions between chip cards and point of sale terminals. Chip-based payment cards contain an embedded microchip that provides strong transaction security features and other application capabilities not possible with traditional mag-stripe cards.

EMV fraud prevention is only effective in a card-present environment. In card-not-present transactions (online or via phone), the chip on the card is not read and the transaction does not have that extra layer of protection.

Why EMV?

EMV decreases card fraud. EMV enabled cards contain a microprocessor chip that stores information securely and carry security credentials that are encoded by the card issuer at the time each card is personalized for an individual cardholder using user-specific keys.

The encoding of these credentials helps to prevent fraudsters from creating counterfeit cards (“cloning�).

EMV cards cannot be duplicated. EMV transactions also create unique transaction data, so that any captured data cannot be used to execute new transactions.

EMV also reduces fraud resulting from card theft and loss by harnessing enhanced transaction authorization, card authentication and cardholder verification.

What does this mean to Auto Dealers and Auto Finance?

EMV fraud prevention is only effective in a card-present environment. The liability for fraud costs shifts to merchant who do not have EMV-capable terminals. This means that if a chip card is used at a traditional magnetic stripe-only terminal to make a counterfeit purchase the merchant will be responsible for the chargeback because the merchant does not have an EMV terminal.

Due to the reoccurring and the contractual relationship auto dealers have with their consumers, chargebacks are generally very low since the consumer would still owe the outstanding balances. If you are currently taking credit and debit cards, take a look at your monthly processing statements. Do you have chargebacks? If so, an EMV terminal or POS equipment will help prevent the costs associated with any fraudulent in-person purchase.

Pam Hendee can be reached at (404)504-7473 or phandee@repayonline.com for more information or questions about the EMV transition.

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TIADA Membership Application

2015

Business Name: ____________________________________________ Select one:

Dealer Member

Associate Member

Contact Person: ____________________________________________ Address: __________________________________________________

2015 TIADA Membership Dues:

City: _________________________________________ State: _______

Join Date:

Dues:

Zip: __________________ County: _____________________________

Jan. / Feb. / Mar.

$425

Apr. / May / Jun.

$320

Jul. / Aug. / Sep.

$215

Oct. / Nov. / Dec.

$425

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

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

PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Sec.Code: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 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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feature TxDMV Board Continues to Evolve Compiled by Texas Dealer staff

L

ast month Texas Governor Greg Abbott appointed two new members, Guillermo “Memo” Treviño and Gary M. Swindle, to serve on the Texas Department of Motor Vehicles’ Board of Directors. He also appointed current board member Laura Ryan to serve as Chairman of the Board, succeeding Johnny Walker, who will continue to serve on the board.

Via email, the Texas Dealer had the opportunity to visit with Ms. Ryan, as well as the two new apointees, about the future of the TxDMV board, the agency, and the industry in general.

Laura Ryan

Bio: Laura Ryan is Vice President of Market Representation and Dealer Development for Gulf States Toyota, Inc., a private distributor for Toyota Motor Sales. Previously, Ryan was Vice

President of Sales and Marketing with GSFSGroup, Inc., a financial service company. In her twenty plus years in the automotive industry, she has also held positions in retail dealership operations, Nissan Motor Sales, USA, in both variable and fixed operations, and worked as an independent automotive consultant. Ryan has presented as a guest speaker for National Automobile Dealers Association convention workshops and Texas A&M University-Mays Business School. She is active in her community as a volunteer for the National Charity League, Northwest Assisted Ministries, Operation Interdependence, Boys and Girls Country of Houston Inc., and Habitat for Humanity of Cypress. Ryan attended Penn State University and believes strongly in continuous executive education. She has attended or been involved with the Gallup Organization Strengths Training, University of Texas Future Leaders Program, and Columbia University Finance Program. She is appointed for a term to expire on February 1, 2021.

Texas Dealer: You have been on the board since 2010.

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What do you see as the most significant achievements during this period?

L. Ryan: I believe the most significant achievement during this time period is the solid foundation and culture that has been established by both the agency leadership and the board. Though separating from TxDOT and creating a stand-alone agency while still servicing the citizens and stakeholders of the TxDMV may seem like a simple task it’s much more difficult than it looks…and we still have a lot of work to do, even six years later. During all this activity the agency has continued to accomplish every task in front of them and accept every challenge handed to them; and for that I am very proud of the leadership and the employees of the TxDMV. TxD: I know there are a number of big issues the agency will be addressing in the near future, including a new physical home for TxDMV. How do you hope to address them?

L. Ryan: We plan to address the issues at hand, including the facility, as we will any other issue the agency needs to address: thoughtfully, strategically, responsibly, transparently, as well as considering input from the Governor’s Office, our stakeholders, and other state agencies, as are relevant to the issue. As always, the goal of the agency and the board when addressing these, or any issue we are faced with, will be to find a solution that provides a better, more T e x a s

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November 2015

efficient outcome than currently exists today. This will always be our filter when finding solutions.

TxD: What do you see as the role or responsibility of a stakeholder like TIADA? L. Ryan: Simple answer in my mind is partnership.

We want your feedback and the ability to work together to make sure we are continuing to improve the regulatory process for everyone. This means we need to continue to build on our current foundation of good open communication and leverage our current working groups to get stakeholder feedback. We encourage the ongoing participation of independent dealers in the dialogue as we try to establish a regulatory framework that streamlines processes, establishes best practices and advances the citizens and industries in the state.

Guillermo “Memo” Treviño Bio: Memo Treviño is presi-

dent of Southern Distributing, a multi brand beer and soft drink distributor. He currently serves on the Board of Directors of BBVA Compass USA, the Board of Trustees of Rice University, and is current President of

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He previously served as a Director of the San Antonio Branch of the Dallas Federal Reserve and as a member of the Board of International Bank of Commerce. He has also served as president of the Laredo Chamber of Commerce, the Laredo Development Foundation, the Washington’s Birthday Celebration Association, and as Jefe de los Caballeros de la República del Rio Grande.

He also serves or has served as a member of the Board of the Texas Alliance of Boys and Girls Clubs, the Texas A&M International University College of Business Administration’s Business Advisory Council, Casa de Misericordia shelter for victims of domestic violence, and the Bishop of Laredo’s Diocesan Finance Council.

Trevino earned a bachelor of arts degree in English from Rice University and received an Option II MBA from the University of Texas at Austin. He is appointed for a term to expire on February 1, 2021.

Texas Dealer: What can you tell us about your recent appointment?

G. Treviño: I am much honored to be chosen by Governor Abbott and his staff to serve. He has done a great job for Texas and I am very encouraged that he is trying to bring in perspectives from all parts of the state to better serve the citizens of Texas.

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TxD: What assets do feel that you bring to the TxDMV board?

G. Treviño: Coming from the private sector I hope I can offer some insights that will help the agency run more efficiently and improve how it delivers its services.

I am looking forward to working with all our stakeholders to help Texas grow.

TxD: What sort of responsibilities lie ahead for you in the short term?

G. Treviño: As a public member of the Board, I think my first responsibility is to better learn the issues and how the Department functions to support its mission of serving the citizens of Texas.

Gary M. Swindle

Bio: Gary M. Swindle is a thirty-three year veteran of the Tyler Police Department and has served as the Chief of Police since 2000. As Chief of Police, he commands a department comprised of 245 employees (194 sworn officers) and oversees an annual operating budget of $26 million dollars.

In addition to serving as Police Chief, Swindle serves

as Managing Director of Public Safety for the City of Tyler, this includes overseeing Code Enforcement, Animal Services and Neighborhood Services Departments. Swindle is a member of the International Association of Chiefs of Police (IACP), FBI National Academy Associates of Texas, Texas Police Chiefs Association, Texas Police Association, Smith County Peace Officers Association, East Texas Peace Officers Association and East Texas Violent Crimes Task Force.

He has held leadership roles as past president of the Texas FBI National Academy Associates and past vicepresident of the East Texas Peace Officers Association.

He received a gubernatorial appointment to serve as Commissioner for the Texas Commission on Law Enforcement Officer Standards and Education from 2002 – 2009.

Swindle is very involved in the community as president of the Tyler Sister Cities, president of Tyler Police Foundation, board member of the Children’s Advocacy Center of Smith County, board member of East Texas Crisis Center, member of the Tyler Junior College Criminal Justice Advisory Board and ex-officio board member of the Tyler Chamber of Commerce. He has served as the administrative board chairman of the Marvin United Methodist Church and on boards for the All Saints Episcopal School and UT Tyler Alumni

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Association. Swindle earned his bachelor’s degree in Criminal Justice from the University of Texas at Tyler. He also holds a Master Peace Officer certification from the State of Texas. Swindle is a graduate of the Federal Bureau of Investigations (FBI) National Academy and the Bill Blackwood Law Enforcement Management Institute Command College. He is appointed for a term to expire on February 1, 2021.

Texas Dealer: What are the

biggest challenges for law enforcement as it relates to the motor vehicle industry?

G. Swindle: The biggest challenge remains vehicle theft and auto burglary. It is a large problem for law enforcement agencies across the State of Texas. The Auto Theft task forces across the state, supported by grants from the Auto Burglary & Theft Prevention Authority (ABTPA), have helped in this effort to reduce and prevent these crimes but there remains a need for more funding in this area.

TxD: What priorities would you like to see the TxDMV board address in the short term?

G. Swindle: Visiting with the TxDMV staff, it is obvious to me that they have the interest of the Citizens of Texas in mind in keeping the vehicles safe to operate on the Texas roadways.

TxD: What motivated you to seek the nomination to the board?

G. Swindle: I had an opportunity to serve under Governor Perry on the Texas Commission on Law Enforcement Standards and Education (2002-2009). When this opportunity to serve as a Law Enforcement representative on the TxDMV Board came up, I did not hesitate. I consider it an honor to be appointed by Governor Abbott to the TxDMV and look forward to serving.

November 2015

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resource guide The TIADA Website:

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

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

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

REPOSSESSIONS

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

FORMS

Burrell Printing 800.252.9154 www.burrellprinting.com

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2706 Slaton Hwy Lubbock, TX 79404 806.745.6606 , Toll-Free 888.299.6606 General Manager: Dale Martin Wednesday, 10:00 a.m.

LUFKIN Lufkin Dealers Auto Auction

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

TYLER Greater Tyler Auto Auction

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regulation matters

VW Diesel Emissions Fiasco Keeps Recalls Front and Center

W

ell, the hits keep coming, don’t they?

The latest gut-punch the industry has taken (at least as of this writing) centers around a Notice of Violation (NOV) issued to Volkswagen by the Environmental Protection Agency concerning certain diesel passenger vehicles sold in the U.S. The EPA alleges that four-cylinder VW and Audi diesel cars from model years 2009-2015 include software that circumvents some EPA emissions standards.

With 11 million vehicles affected worldwide, the magnitude of the issue is hard to overstate, at least as it pertains to the VW brand. CEO Martin Winterkorn

Diesel Vehicles Affected by Emissions Issue Jetta (MY 2009-2015) Jetta Sportwagen (MY 2009-2014) Beetle (MY 2012-2015) Beetle Convertible (MY 2012-2015) Audi A3 (MY 2010-2015) Golf (MY 2010-2015) Golf Sportwagen (MY 2015) Passat (MY 2012-2015)

T e x a s

Langfield

TIADA DEPUTY DIRECTOR

resigned in late September, and U.S. consumers and dealers are now awaiting a plan from VW and Audi to bring the vehicles into compliance. Once such a plan is approved by the EPA, a recall will undoubtedly issue.

The October 1 issue of our TIADA Update weekly email* addressed the immediate concerns dealers may have regarding the sale of these vehicles (we will recap that below). Now I will bet that some of you are thinking, “What’s the big deal? VW diesel is not my car anyway. Matter of fact, the other recalls aren’t really affecting me, either.”

While not directly affected, I recently came across a couple of data points that suggest all dealers may be at least indirectly (and negatively) affected by these seemingly endless recalls.

First, a study by the American Customer Satisfaction Index indicates that car buyer satisfaction is down for the third straight year. The study suggests that a surge in safety recalls (nearly 64 million in 2014) and rising prices are the primary driving forces behind consumers’ increasing disgruntlement.

Second, a comprehensive and fascinating study was conducted by a group of marketing professors and published in the Journal of Marketing Research. This study looked at product recalls and the effects of online chatter on the brands (i.e. Honda, Jeep) and nameplates (i.e.

Civic, Cherokee) not just of the recalled vehicles, but also on those of the competition. (cont’d on pg. 38) * I can’t really overstate the importance of making sure you and your staff are receiving the TIADA Update weekly email. It is sent in a “quick glance” format so you can very quickly scan topics to see if anything is of importance to you. The email is where we initially communicate issues of some urgency (such as how to handle recalls, certain license renewal deadlines, upcoming education, etc…). If you are not getting it, contact us at info@ txiada.com or 512.244.6060. If the email is being sent to your SPAM folder, try adding “tiada@multibriefs.com” to your safe senders list.

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The study found an effect dubbed “perverse halo” whereby negative chatter about one nameplate spills over into negative chatter for another nameplate. The effect was found to be stronger on brands from the same country, and those that have similar market share. Most importantly, the study concluded that online chatter amplifies the negative effect of recalls on downstream sales by about 4.5 times.

What does that mean? Well, in layman’s terms it looks to me like dealers are clearly suffering the negative consequences of all these safety recalls whether they stock those particular vehicles or not. Nice, huh? If the manufacturers can get these problems fixed and stem the tide of safety recalls, that would certainly be quite helpful to everyone downstream.

TADA, the franchise dealer’s association, issued a memo to their members regarding the VW diesel emissions issue. We have reviewed the memo and we believe it provides accurate guidance for dealers in possession of one or more of the affected vehicles. Suggestions include: Disclose to each buyer, — wholesale, retail, or at auction — in writing — that (1) the vehicle’s emission system is not in conformity to the Clean Air Act as (2) it is equipped with a “defeat device.” In addition, disclose that (3) Volkswagen is to develop a plan to bring the vehicle

into conformity with the CAA and (4) once EPA approves the plan, a recall will issue. A written disclosure, signed by buyer and seller and made prior to the buyer agreeing to a sales price for the vehicle and prior to contracting is recommended. (5) State in the disclosure that the information is given to the customer prior to the customer agreeing to a price and (6) prior to signing a contract. Please maintain the original and give the customer a copy. (7) You may also choose to incorporate a copy of the September 18, 2015, EPA letter to Volkswagen (found at http://www3.epa.gov/ otaq/cert/documents/vw-nov-caa-09-18-15.pdf) in the disclosure. (8) Have all parties date and sign the disclosure.

As documented in both the July and September issues of this column, regarding all used vehicle sales, TIADA recommends that the dealer run each VIN through the federal government’s safercar.gov lookup tool at closing, print out the results and have the customer sign and date the document. A copy of this signed document should be retained in the deal jacket. Considering that recall results may change literally from day to day, it is important to make sure the most up-to-date information is being provided to the customer, regardless of the vehicle’s open recall status.

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

Michael W. Dunagan, TIADA General Counsel

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

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

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

• Customer ID requirements – what is acceptable?

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

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

• Credit Card Convenience Fees – what is allowable?

• Adverse Action Rule – who is affected?

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

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

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

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

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

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

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Please Welcome Our Newest TIADA Members DEALER MEMBERS 332 Auto Sales Matt Cone 215 W. Plantation Drive Clute, TX 77531 A-1 Auto Group Ji Yu 1428 Blalock Rd Houston, TX 77055 A-Affordable Autos Zachary Grier 4941 Rigsby Ave San Antonio, TX 78222 Adonis Auto Group LLC Eric Ryan 804 N. Watson Road Arlington, TX 76011 Affordable Auto Sales Nabil Issa 421 Valley Hi Dr San Antonio, TX 78227 Alfaro Motor Company Arthur Alfaro 2900 Texas Ave Texas City, TX 77590 Alfaro Motor Company- branch Arthur Alfaro 2828 Palmer Hwy Texas City, TX 77590 Animated Motor Sports, LLC James Tran 10113 Chapel Hill Ct Ft. Worth, TX 76116 Arbil Motors Inc. Ismail Abdulhakim 3600 W. Division Arlington, TX 76012 ASA Auto Sales Adil Alsilawy 4242 NE 28th St Haltom City, TX 76117 Atlantis Auto Inc Mohamad Hussein 368 Westview Terrace Arlington, TX 76013 Auto 300 Miguel Sanchez 5619 Babcock Rd San Antonio, TX 78240 Auto Starbrite LLC Michael Lamin 3330 W Galloway Ave #304124 Mesquite, TX 75150 Automundo Ramiro Perales 671 Juthand Dr Grand Prairie, TX 75032 Best Value Autos Chukwudi David Isimokweye 110 W. Randol Mill Rd, Ste 203 Arlington, TX 76011

November 2015

T e x a s

BJ International James Yang 1717 Danube Ln Plano, TX 75075

CJD Motors Christopher Diaz 2537 West Kings Hwy San Antonio, TX 78228

Fidelity Financial Bobby Alavi PO Box 251671 Plano, TX 75025

Black Auto and Motorcycle Corp Sebastian Del Negro 4332 US Hwy 380 Decatur, TX 76234

Clyde’s Dallas Auto Club, LLC Clyde Swalwell 2001 Gould St. Ste 200 Dallas, TX 75215

G. C. Cars Glenn Caravalho 1124 N. Blanco Lockhart, TX 78644

Black Shield Imports, LLC Roberto Perez 263 K.C. Drive Bastrop, TX 78602

CNL Capital, LLC Corbin Light 2001 Gould St, Ste 200 Dallas, TX 75215

Gama Auto Jose Barajas 4800 NE 28th Street Haltom City, TX 76117

Booth Motor Co. Jamie Booth 11110 IH 35 N San Antonio, TX 78233

Comfort Air Conditioning & Heating Daniel Hughes 1216 Vine St Brownwood, TX 76801

Geared Motor Sports Mohsen Shahlaee 1633 E. Main St #F Grand Prairie, TX 75050

Bucher Auto Sales Daniel Bucher 1001 N. Industrial Blvd Round Rock, TX 78681

D & Z Auto Sales Dara Nakib 2929 S. Garland Garland, TX 75041

Good Guys Auto Group Zach Villejo 14003 Hadley Run Live Oak, TX 78233

Byblos Auto Mohamad Arbid 608 Pebbleshire Dr Houston, TX 77062

David Blatz David Blatz 2120 E. Pansana E-172 El Paso, TX 79905

Harrison Auto Brokers Ali Abu Eid 704 E. Division Arlington, TX 76011

Canepa Automotive Jose Canepa 2900 S. Walton Walker Blvd Dallas, TX 75211

Destin Motors Omid Ismail 3424 E. 14th St. Plano, TX 75074

HDA Auto Danny Moussavi 1629 E. Main St Grand Prairie, TX 75050

Capital Fleet Farid Atiqi 10010 Heron Meadows Dr Houston, TX 77095

DFW Auto Link Mabruk Khalfallah 425 S. Jupiter Rd Garland, TX 75042

Houston Auto Finance Mustafa Ahmadi 1025 N Loop Houston, TX 77022

Capital Fleet Service Allen Almassi 8706 Windswept Lane Houston, TX 77063

DriveCasa, LLC Robert Berry 4432 McFarlin Blvd Dallas, TX 75205

Java Enterprises Abdel Obaid 2713 Mansfield Hwy Fort Worth, TX 76119

Car Co. Allen Tari 3424 14th St Plano, TX 75074

E. Vasquez Auto Sales LLC Eliseo Vasquez 1235 Culebra Rd San Antonio, TX 78201

JBS Auto Sales LLC 2 Hector Clemente 4720 E. Belknap St Haltom City, TX 76117

Car Depot Aaron Mitchell 2164 Jacksboro Hwy #200 Ft. Worth, TX 76114

El Rancho Auto Sales Jesus Porras 2406 E. Belknap St Ft. Worth, TX 76111

Car Guru Motorsports Maher Atteyah 8751 Navidad Ct Irving, TX 75063

Eminence Auto Group Lori Gee 10818 Tyron Dr Houston, TX 77065

Jorge’s Mechanic Shop & Auto Sales Jorge Cantu 6305 Griggs Rd Houston, TX 77023

Car One Autoplex Hakim Ismail 3600 W. Division Arlington, TX 76012

Euro Car Care, Inc Mark Grabiel 12323 West Ave San Antonio, TX 78216

Carrera Auto Sales LLC Jose Bazan 2255 Dateplam Ave McAllen, TX 78501

Exotto Auto Center Omid Moshirianfard 3400 14th Street Plano, TX 75074

Citi Investments Irvin Castillo 6203 Knollwood Trl Spring, TX 77373

Export Inc Mohamad Hussein 368 Westview Terrace Arlington, TX 76013

City Auto Outlet Pete Chavez 3432 Hemphill Ft. Worth, TX 76110

Fast Auto Sales Uvaldo Guerra 2255 Dateplam Ave #1 McAllen, TX 78501

D e a l e r

Juniors Auto Sales Alejandro Rodriguez 372 Bean Ct El Paso, TX 79905 Kai Trading Inc Aram Alzahrawi 5423 Rosehaven Ct Sugarland, TX 77479 KCL Auto Sales LLC Carlos Salazar 4107 Culebra Rd San Antonio, TX 78228 King’s Auto Sales Co. Rene Aguirre 1046 W. Hildebrand San Antonio, TX 78201

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Please Welcome Our Newest TIADA Members

44

L A Motorcars Lance Adams 346 S Central Expressway Richardson, TX 75080

Orange Auto Sales Bachar Alobeidy 10925 Briar Forest #2005 Houston, TX 77042

Roundman Square Deal Tom Souter 5844 49th St Ste 4 Lubbock, TX 79424

Tommy’s Auto Sales Tom Wittrock 2309 E Lancaster Fort Worth, TX 76103

Luma Used Cars Luis Rojas 655 W. Davis St Dallas, TX 75208

Parrot Auto Sales 2 Frank Casey 1140 E. Airport Blvd Austin, TX 78702

Scott’s Big Truck Sales Don Scott 5125 Sun Valley Ft. Worth, TX 76119

Triple R Motors Guillermo Trujillo 15211 Paseo del Rey Houston, TX 77083

Lusta Motos LLC Jose Trujillo Deleon 17105 Clay Rd, Ste D Houston, TX 77084

Peek Motor Co., Inc. Michael Peek 10914 Eastex Freeway Houston, TX 77093

Seguin Car Country Mike Van Norman 420 E. Kngsbury Seguin, TX 78155

Two Brothers Auto Sales John Ahn 1008 Spinks Ct Flower Mound, TX 75028

M B Auto Sales Jagbinder Singh 7411 Mansfield Hwy 287 Bus Arlington, TX 76060

Pitre-V Auto Robert Pitre 2642 S. Harwood Dallas, TX 75215

Two Rivers Auto Sales Inc Radi AL Mbereak 6410 Zenith St Dallas, TX 75212

Matar Motors 2 Fouad Matar 2901 Bingle Houston, TX 77055

Pre Luxury Auto Sale Ebrahim Niakam 901 E. Pioneer Pkwy Arlington, TX 76010

Select Auto & Marine Group of Texas LLC Richard Jones 9434 Sandy Lane Manvel, TX 77578

MGM Auto Mr. Karen Mgerian 5711 Industry Park Drive San Antonio, TX 78218

Prestige Auto Center Farhad Vosoughi 13103 Weiman Rd Houston, TX 77041

Moda Cars Eiad Al Chami 5427 Lincolnshire Dr Richardson, TX 75082

Prosperity Motors Robert Lopez Jr. 1000 Kennedy Ln Saginaw, TX 76131

Moda Cars Inc Said Al Chami 3702 Calstone Ct Richardson, TX 75082

Pull-A-Part George Foster 4473 Tilly Mill Rd Atlanta, GA 30360

Modern Enthusiast Motors LLC Shane Andrea P.O. Box 1056 Pottsboro, TX 75076

R West Robert West 300 Smirl Dr Heath, TX 75032

Momentum Motors Muhammad Asif 6387 Blvd 26 North Richland Hills, TX 76180

R&R Motor Company Inc. Kendell Robertson 1513 Jacksboro Highway Fort Worth, TX 76114

N & E Enterprises Najh Alsharary 7802 Pouter Dr Houston, TX 77083

Race Auto Sales Ramon Cahve 10422 Telephone Rd Houston, TX 77075

Nassco Cars Kotaiba Nasser 2200 E. Centra Texas Expressway Killeen, TX 76543

RB Ford Zulfiqara Bughio 781 Country Place Appt 2081 Houston, TX 77079

Nassco Cars 2 Kotaiba Nasser 8707 Schumacher Ln, Ste 101 Houston, TX 77063

Ready 2 Roll Autos LLC Ron Christinia 227 N I-35E Desoto, TX 75115

National Motor Co Pedro Alcantara 2321 Hemphill Ft. Worth, TX 76110

Realtech Motors LLC Ahmad Itani 903 W. Division Street Arlington, TX 76012

Nora Motor Company Maher Malkawi P.O. Box 543011 Grand Prairie, TX 75054

Remington Motor Company Bill Pond 3120 Caruth Blvd Dallas, TX 75225

Old Town Auto Sales Darrell Moseley 903 South Mill Street Lewisville, TX 75057

Ritz Auto Group Ken Abbaszadeh 2650 Northaven Dallas, TX 75929

SL Auto Sohrab Ahmadi 5010 Pinemont Houston, TX 77092

Ultra Cars Imports Francisco Cortes 6920 Harry Hines Blvd Dallas, TX 75235 United Auto Group Brian Benchekroun 3300 Garden Brook Dr Farmers Branch, TX 75234

Soto’s Auto Sales Luis Soto Jr 703 Spencer Hwy South Houston, TX 77587

UP 2 Auto Sales Catherine Sanders 3339 Scotch Creek Rd Coppell, TX 75019

Soto’s Auto Sales 2 Luis Soto Jr 2222 Spencer Hwy Ste D Pasadena, TX 77504 Stonebriar Motors LLC/ Stonebriar Auto Leasing Will Bradley 1225 E Crosby Rd, Suite B-13 Carrollton, TX 75006 SW Auto 2 Brad Baker PO Box 163313 Ft. Worth, TX 76161

Valor Performance Centers Jeff Logsdon 41501 FM 3159 Canyon Lake, TX 78133 VDubs Only Peyman Zamani 13439 Preston Rd, Bldg 200, Ste A Dallas, TX 75240 Veloz Auto Sales Jesus Valdez 10711 Market Street Houston, TX 77029

Texans Auto Group Jerry Khoury 4919 FM 2920 Spring, TX 77388

ASSOCIATE MEMBERS

Texas Carz Sam Nimer 2399 Midway Rd Carrollton, TX 75006

Southwest Commercial Insurance Agency LLC Matt Gerhardt 10601 FM 2222, R-121 Austin, TX 78730

Texas Drive LLC Mamand Ahmed 2719 S. Garland Ave Garland, TX 75241

TriNet Greg Gaunt 14185 Dallas Parkway, Suite 650 Dallas, TX 75254

Texas Velez Auto Sales LLC Francisco Velez 2005 NE 28th St Ft. Worth, TX 76106 TH Motors LLC Taissir Haek 1503 White Willow Lane Arlington, TX 76002 TJ Miller Motors, Inc Johnny Rowe P.O. Box 866 Brazoria, TX 77422

T e x a s

D e a l e r

November 2015

behind the wheel

Martin

Next Step in Washington DC

F

or the last couple of years TIADA has participated in the NIADA Leadership Conference in Washington, D.C. The first two days of this three day conference are filled with committee meetings where we discuss the NIADA legislative program and various issues the association is working on. We also sit in on updates from federal agencies including the Consumer Financial Protection Bureau, the Federal Trade Commision, the Department of Justice, and others. While the association is constantly monitoring and working with the various agencies, this conference provides a unique opportunity for dealers to have their voices heard. The last day of the conference is spent on Capitol Hill visiting with legislators and staffers. We spend time educating them about our industry and discussing specific bills.

For the last two years the Texas delegation, which usually consist of five or six dealers and a couple of TIADA staff members, has been divided into groups with other dealers from around the country and we attend prearranged meetings scheduled by the NIADA lobby team. Since this was a new program we needed to get the logistics down before we could really focus on growing the program.

This year, we took the next natural step in growing our grassroots campaign by scheduling our own meetings.

At the time of press, the Texas delegation is looking forward to meet exclusively with Texas Congressmen sent to Washington by Texans.

by Jeff

TIADA EXECUTIVE DIRECTOR

I am most excited about seeing our friend U.S. Representative Marc Veasey. I first met Marc in 2006 when he was running for the Texas House of Representatives. He was new to the political scene and I was new to TIADA. We were both looking to build relationships so, over a cup of coffee, we discussed the independent automobile industry and how the association could help him. Shortly after our first meeting Marc agreed to attend the Fort Worth local chapter meeting and get to know some of our local dealers.

It was the start of a great relationship. Marc is in the real estate business and really understood our lien holder issues.

It wasn’t long before we appealed to Rep. Veasey to file a bill that would address one of our legislative agenda items.

He not only carried the bill he worked hard toward the end of the session and passed the legislation. Remember when your temp tag was only good for 21 working days after the date of purchase? Now that your tag is good for 60 days, you can thank Veasey for that. In that same legislation he cleared up language on loaner cars and made sure dealers could allow a customer to operate a loaner car with a temporary tag while the customer’s vehicle was being repaired.

When Marc won his bid in 2012 to represent district 33 in the U.S. Congress I was sad to see him leave the Texas House but most of all I was excited for him and knew we would have a friend in Washington.

At the time of press, the Texas delegation is looking forward to meet exclusively with Texas Congressmen sent to Washington by Texans.

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T e x a s

D e a l e r

November 2015

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PRSRT STD

U.S. POSTAGE

PA I D JEFFERSON CITY, MO

PERMIT NO. 210