Texas Dealer December 2022

TIADA Board of Directors

PRESIDENT Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087

PRESIDENT ELECT

Eddie Hale/Neighborhood Autos PO Box 1719 Decatur TX 76234

CHAIRMAN OF THE BOARD

Mark Jones/MCMC Corporate 264 Exchange Burleson, TX 76028

SECRETARY

Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365

TREASURER

Greg Phea/Austin Rising Fast 8024 IH 35 North Austin TX 78753

VICE PRESIDENT, WEST TEXAS (REGION 1)

Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423

VICE PRESIDENT, FORT WORTH (REGION 2)

Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas TX 75237

VICE PRESIDENT, DALLAS (REGION 3) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas TX 75218

VICE PRESIDENT, HOUSTON (REGION 4)

Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301

VICE PRESIDENT, CENTRAL TEXAS (REGION 5)

Robert Blankenship/Texas Auto Center 6809 Suite B S IH35 Austin, TX 78744

VICE PRESIDENT, SOUTH TEXAS (REGION 6)

Armando Villarreal/McAllen Auto Sales, LLC 4215 S. 23rd St McAllen, TX 78503

VICE PRESIDENT AT LARGE Lowell Rogers/11th Street Motors 1355 N 11th St, Beaumont, TX 77702

VICE PRESIDENT AT LARGE Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915

TIADA EXECUTIVE DIRECTOR

Jeff Martin

9951 Anderson Mill Rd., Suite 101 Austin, TX 78750

Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org

TexasDealer contents

officers’ message

If You Provide it, Make it Clear

As an independent dealer, I have learned the impor tance of having everything in clear and specific written policies. This applies to everything from personal policies to agreements with your customers. For years independent auto dealers would tell their customers to, “just bring the vehicle back if something happens.” This ultimately leaves both the dealer and the customer in a bad spot. How much the dealer can and will help doesn’t always match the customers’ expectations. Those days are behind us for most dealers, but I know a few dealers who still “help their customers out” from time to time. Let’s be frank, I am always looking to help my customer out, and I know most good dealers are. I suggest that if you offer a service or a warranty, put it in writing. This allows you to ensure the equality of your customer service. It creates efficiencies for your operations and, ultimately, more financial stability.

Offering warranties on your vehicles truly is a good will effort. I believe there are both sound business and ethical reasons why dealerships should implement spe cific warranty policies. My dealership offers relatively extensive warranties on our vehicles, and we like the message that sends. In the past, when warranties were less commonly used in our industry, dealers were sus ceptible to being unfair, and we were susceptible to be ing taken advantage of, despite our good intentions.

But as warranties became more readily available, and we understood more about reinsurance, we were able to create warranties that fit our business model. It became a matter of good business sense and good customer service. A lack of a warranty policy creates too much

by Eddie Hale Neighborhood Autos (Decatur) TIADA PRESIDENT ELECT

ambiguity and can put you in an argumentative state with your customer about who said what. This only harms your relationship with that customer.

From a financial standpoint, having a specific warranty policy in place gives my dealership a fixed cost that I prefer over the unknown costs of vehicle breakdowns. Many deal ers fall into the trap of thinking they can accurately predict and control those costs, but that’s nearly impossible to do. There are always costs associated with a customer’s vehicle breaking down, whether they are returning the vehicle or if you are helping them fix it, I always like to know what my cost is going to be, and a warranty helps me track that.

You may be able to control some of these costs, but never in a predictable and even way that is good for you and the customer. With a warranty program, the cost is fixed and measurable. Our warranty reinsurance company is profit able, our customers have a direct line for help, and they receive consistent customer service. The math tells me we were spending the same amount of money without war ranties but without efficiency, accountability, and equality.

A warranty policy also keeps you in check as a business operator. It is a defined line of what you and the customer can and cannot do, and the customer understands their rights and responsibilities a lot better than without a war ranty. Written warranties eliminate misinterpretations that can come back to haunt you down the road.

In my opinion, everyone wins when you have policies and procedures in place that are very specific and transpar ent. With everything that you do in business, it is essential to have it down in writing and to be as clear as possible.

How much the dealer can and will help doesn’t always match the customers’ expectations.

letter to the editor

Thank You

Dear TIADA, I have recently retired (again) and closed my doors. I wanted to reach out to you and TIADA to say thank you for all you and your staff do. When I retired from law enforcement and started to take over my father’s deal

lot left on the table. I used to facili tate and teach classes at conferences when I was the North Texas Crime Prevention Association President, and now having gone through the process of closing down a busi ness I can tell you there is so much to have to consider. What I can say is that having expanded the busi ness through software, maintenance

not made the same advancements in their businesses which is making it harder for them to get out. One ex ample is that their accounts were just not desirable. When I sold the first half of my accounts I actually got 95% from a finance company that I have found at your conferences. I have had other dealers call me a straight-up liar when I told them 95%, but I have the paperwork to prove it. It is pos sible but at the end of the day, it has to do with how I ran my business in so many ways. Preparing for retirement, especially in the BHPH world requires years of preparation. In truth, it starts with running a principle-based busi ness that serves the customers right. I have had lengthy conversations with other dealers about setting up cus tomers to succeed as the best business plan. The profits will work themselves out from there. If the business is based solely on making maximum money at the initial point of sale then ulti mately it can bite you in the end. I can honestly say I figured most of this out while attending your conferences.

As a police officer, I never imag ined being able to retire at 57 nearly as comfortable as I am now. The car business, in a very short period of time, has afforded me to live a life I have never imagined, and I can hon estly say I would not be here with out the TIADA.

Thanks again, Steven Caldwell

Caldwell & Caldwell LLC

dba Eagle Auto Sales Denison, TX

TIADA Membership Renewal No6ce

Dear Member,

As we close yet another year, the TIADA staff and our Board of Directors would like to thank you for your unyielding support. Your commitment to the associaAon has enabled us to:

• Be Your Voice at the Capitol. With the 88th LegislaAve Session right around the corner there is strength in numbers and our membership is the source of our strength at the Capitol so TIADA can conAnue to protect your interests now and in the future. We need you -your membership does maJer.

• Keep you abreast of what is happening in the industry through the Texas Dealer magazine, industry enewsleJer, and txiada.org. Whether it’s compliance, changes to state requirements, new products and services or best pracAces, our goal is to make sure we are providing the industry informaAon you need in our arAcles, blogs, and through our social media.

• Provide Professional Dealership Compliance Consulta6on. We are available and ready to take your phone call or email and assist you with that tricky compliance quesAon. We have a number of aJorneys working with us; If we don’t know the answer (and we usually do) we will find it for you.

Remember that your membership can easily pay for itself by taking advantage of your member benefits, namely the TIADA AucAon App, where our members have access to over $10,000 in buy/sell fee coupon savings at 45+ parAcipaAng aucAons across Texas. With your renewal, you will receive your 2023 coupons right to your smart phone.

Simply put, TIADA is your associa6on, and we are here to protect your interests and commiHed to seeing you succeed for many years to come. Please do not hesitate to contact us if you have any quesAons about your membership benefits: www.txiada.org/dealer_benefits.

on the cover

by XXX title1, title 2

by TIADA Staff

The 2022

[Editor’s note: The first ten questions have been taken from information that appeared in the “Legal Corner” section of Texas Dealer magazine in 2022. The five bonus questions at the end come from information that has appeared in our industry emails and/or blogs posted on the TIADA website this year.]

QUESTIONS

1. Deferred sales tax is lost and total sales tax on a vehicle sale becomes due if:

(a) The title certificate is delivered directly to the buyer.

(b) Title isn’t transferred within 60 days.

(c) The title certificate is lost.

(d) The dealer fails to submit their sales tax report by the deadline.

2. True or False:

The lien holder on the original title certificate has ownership that is superior to a person who is shown as the owner or lien holder on a Certified Copy Original (CCO) title certificate that was obtained as a result of forgery.

3. True or False:

I can refuse to allow my BHPH customer to retain salvage and repair a vehicle that has been declared by the insurance company to be a “total loss.”

4. Which of the following types of sharing of information would trigger the use of a long-form privacy notice that contains an “opt-out” provision?:

(a) Customers’ personal information given to a finance company that is looking to buy a dealer’s receivables.

(b) Customers’ personal information given to a collector who is attempting to collect a past-due account.

(c) Customers’ personal information given to a licensed marketing firm to carry out a sales campaign.

(d) Customer’s pay-off balance given to another dealer who is negotiating with my customer to take the vehicle with my lien in trade.

5. The Service Person’s Civil Relief Act (SCRA) applies to which of the following situations:

(a) A person is in the military at the time of credit purchase.

(b) A person signs up for reserve status after the credit purchase.

(c) A person goes on active duty after the credit purchase.

(d) A person who financed a vehicle while on active duty is sent overseas.

6. The State Comptroller takes the position that:

(a) Both the purchase price of GPS units and air time charges are taxable to the dealer.

(b) The purchase of GPS units is taxable, but air time charges are not taxable.

(c) The purchase price of GPS units is not taxable, but air time charges are taxable to the dealer.

(d) The purchase of the GPS is not taxable since the device is attached to the vehicle and increases the sales tax the state receives when the vehicle is sold.

7. A valid mechanic’s lien is ____________ (inferior or superior) to a prior recorded security interest lien on a vehicle.

8. A debtor’s personal information can be shared with which of the following without violating the debtor’s privacy rights:

(a) A repossession agent.

(b) A law enforcement official.

(c) A non-related finance company that is buying dealer paper.

(d) All of the above.

9. True or False: Federal law requires that all new and used vehicles sold by dealers have working airbags.

10. True or False: Under the U.S. Supreme Court decision in City of Chicago v Fulton, a car creditor can ignore any bankruptcy that is filed by the debtor after a repossession took place.

Bonus QUESTIONS

11. How long does TxDMV require dealers to keep a complete, accurate record of all vehicle purchases and sales?

(a) 12 months (b) 24 months (c) 36 months (d) 48 months

12. For existing dealers, the maximum number of temporary tags issued will be based, in part, on how many previous years of sale?

(a) 2 (b) 3 (c) 4 (d) 5

13. True or False: A dealer has a duty to disclose any known issue or defect that might affect the merchantability of a vehicle.

14. Who will be fingerprinted according to TxDMV’s new fingerprinting requirement? (a) All dealership employees (b) New dealers only (c) All dealership owners (d) No dealers

15. True or False: A dealer has a right to the personal property that may be in a vehicle when it is repossessed

Answers can be found on page 44

legal corner

A Refresher Course on the Special Inventory Tax (SIT)

Few dealer-compliance issues in Texas raise more questions than how to handle collect ing and paying special inventory tax (commonly referred to as SIT and traditionally known as the Vehicle Inventory Tax or VIT). Since SIT was adopted by the legislature, it has raised more than its share of problems. However, it did eliminate some of the problems inherent in valuating a dealer’s inventory for ad valorem tax purposes. We have seen new-entry dealers overlook alto gether the filing requirements of SIT, as well as dealers who are shutting down their operations failing to take care of the back-end requirements. A little background is helpful in un derstanding the “why” as well as the “how.”

Actually, SIT is not a separate tax. SIT is rather a method of plac ing a value on a dealer’s inventory for the purpose of calculating the amount owed on a tax that has been around for a very long time – the ad valorem or property tax. SIT also provides a separate, orderly method for payment by a dealer of the ad valorem tax that is attributable to the dealer’s inventory.

Local governments have always been dependent on taxing their citi zens and businesses to pay for the public services they offer, such as fire and police protection, schools, hospitals and road maintenance. One source of revenue for local government entities is the sales tax charged by merchants on certain goods and services, which is then remitted to the state and redistrib uted to local taxing authorities.

Motor vehicle sales tax is different in that it goes only to the state and county, and that the rate that is set by state law is uniform throughout the state.

Another mainstay of local gov ernment revenue is the ad valorem tax. As the name implies, it is based on the value of property owned by taxpayers. Real estate is a good example of the kind of property taxed under the ad valorem system. Businesses also pay ad valorem tax on the value of their non-real-estate hard assets: equipment, fixtures, furniture and inventory. Typically, a business is responsible for reporting to the county appraisal district the value of its assets each year.

For most wholesale and retail businesses, inventory is a rather difficult asset to value. After all, inventory is constantly changing. New items come in, old items go out. And if, for whatever reason, a business decided to keep inventory low at a given times during the year, and high at others, it becomes even more difficult to place an accurate value on the inventory.

If the merchant happens to be a car dealer, he or she might have been inclined (prior to the institu tion of SIT) to slow down on order ing new units and sell the existing inventory down. (Remember the old year-end sales pitch of some dealers: “Our prices are so low be cause we’d rather lower our prices than pay the tax man.”)?

If the appraiser knew that the dealer usually kept more units than were on hand at the end of the year, the appraiser would sometimes try

by Michael W. Dunagan TIADA COUNSEL

to raise the value of the inventory to more than just the value of the units present on January 1. A dealer’s ability to manipulate the timing of inventory on hand, and the cre ativity of appraisers in defeating such manipulation had, before SIT was established, created a catand-mouse game between dealers and appraisers. Valuation protests and litigation over the valuation of a dealer’s inventory had become commonplace.

It was just this problem that the SIT was created to cure. By tying the taxable value of inventory to prior sales, rather than physical units on hand, lawmakers sought to make the inventory valuation process on motor vehicles easier to enforce. From the perspective of some car dealers, SIT offered an ad ditional sweetener: the prospect of being able to attribute the amount of SIT owed to each vehicle sold and the ability to thus pass that amount on to buyers as a contract expense item.

Under the SIT scheme of things, dealers who make retail sales are required to comply with the state’s special motor vehicle inventory ap praisal procedures. By February 1 of each year, dealers are required to file a “Dealer’s Motor Vehicle Inventory Declaration” with the county’s chief appraiser and file a copy with the county tax collector. The declaration form is issued by the state comptrol ler and should be available from the

Upcoming Events 2023

TIADA DEALER ACADEMY

Online registration available. www.txiada.org March 20 Collect the Cash, Not the Car San Antonio, TX May 8 Keeping Your BHPH Dealership Legal and Compliant Dallas, TX OTHER TIADA EVENTS

6 Board of Directors Meeting Austin, TX 7 TIADA Day at the Capitol Austin, TX April 24 Board of Directors Meeting Austin, TX July 23 Board of Directors Meeting

JW Marriott Hill Country Resort San Antonio, TX 23-25 TIADA Conference and Expo

JW Marriott Hill Country Resort San Antonio, TX

comptroller’s property tax division or the county appraiser’s office.

Additionally, dealers must file monthly reports with the county tax collector by the tenth of each month listing all sales for the prior month. Property taxes based on amount of retail sales prices must be paid with the statement. A special account is kept for each dealer by the tax col lector. If, at the end of the year, when each taxing unit has established its tax rate, the dealer’s account is short of the necessary funds, a year-end statement will be sent. However, if the dealer’s account has a surplus, the surplus is kept and shared by the taxing authorities.

A fairly complicated formula is used to calculate the amount of in ventory tax that is owed. First, the aggregate county tax rate (the total of tax rates from all taxing authori ties within which the dealer’s lot is located) is calculated. By dividing this number by 12, the unit prop erty tax value factor is determined (this will be a percentage). This fac tor is then multiplied by the sales price of each vehicle to determine the tax attributable to each vehicle sold. It is the total of the tax at tributable to all retail sales for the reporting month that must be paid by the tenth day of the next month. While wholesale sales, fleet sales with a fleet permit, sales of trucks over 16,000 pounds, and repeat sales of the same vehicle in a calen dar year are exempt from this tax, they must be listed on the monthly report.

Fortunately, most dealer manage ment software packages include SIT calculation procedures and will actually print out the reports that need to be filed. A dealer with such a system has only to remember to print it out, write a check, and put a stamp on an envelope. Also, an ex cellent guide to complying with SIT filing requirements can be found in the December, 2021 edition of Texas Dealer (Special Inventory Tax – It Doesn’t Have to be Difficult by

Hon. John R. Ames, Dallas County Tax Assessor/Collector and Hon. Michelle French, Denton County Tax Assessor/Collector).

Dealers who sell exclusively to other dealers do not have to make these reports. Their inventories will typically be valued as all other per sonal tangible property is valued for ad valorem tax purposes (although some appraisal districts have at tempted to use the SIT formula for valuing the inventories of highvolume wholesale dealers). But occasional retail sales by wholesale dealers may trigger the reporting requirements.

Pass Through of Tax

While SIT is actually one compo nent of the dealer’s ad valorem tax, state law allows dealers to pass on to retail buyers the unit tax attribut able to that sale. The charge on a retail contract for the tax should be disclosed as “dealer inventory tax” and not misrepresented as a charge required by law or as the “buyer’s inventory tax.” While the SIT charge can be passed on to buyers, the law does not require that a dealer do so. In fact, the law is neutral on the is sue, and an attempt to convince a buyer that the tax is a mandatory charge required by law to be added to the contract is incorrect and ac tionable. Addition of the tax on the contract is a negotiable item and a dealer can refuse to sell to a buyer who refuses to have it included. Conversely, a buyer can refuse to sign a contract that has it in.

Subsequent Sales Exemption

A vehicle that has been repos sessed or returned and is resold within the same calendar year as the first sale is exempt from the tax. Thus, the tax should not be charged to the buyer and should not be paid with the monthly report. A subse quent sale of the same vehicle that occurs in the next calendar year will be subject to the tax.

The failure to comply with the dealer inventory tax law could sub ject a dealer to substantial fines for each day’s violation. Additionally, the Motor Vehicle Division has re fused to renew dealer licenses for retail dealers who are not listed in a county’s dealer inventory tax list. Dealers who are required to file dealer inventory tax reports but who have failed to do so can expect to have their dealer licenses sus pended or revoked.

The fines and penalties for nonfiling and late-filing are substantial. Dealers are required to file monthly reports even if no sales occurred during the reporting period. In some counties, non-filing situations are turned over to the county attorney or even private collection attorneys to collect tax, fines and penalties.

Under the SIT portion of the Texas Tax Code, a dealer is pre sumed to be in business (and thus subject to filing requirements) if a dealer license is in effect. Thus, a dealer shutting down his or her business should cancel the dealer li cense or, conversely, continue to file

monthly reports until the license is cancelled or expired.

One aspect of SIT that comes as a surprise to some dealers is fact that a decrease in sales from the prior year will result in a year-end assess ment to make up for the deficiency. Also, because the amount of the tax is based on the prior-year’s sales, a dealer will usually receive a tax bill in the year the business is shut down if sales didn’t meet the num ber established in the prior year.

Information about dealer inven tory tax can be obtained from the State Comptroller’s property-tax division. Copies of the declaration form can be obtained from the county tax collector or the county appraisal district.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 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.

resource guide

The TIADA Website: www.txiada.org

Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more.

Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.

License Renewal Certificate

TexasDealerEducation.com

Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov

Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov

Texas Comptroller 800.252.1382 comptroller.texas.gov

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

CORPUS CHRISTI

G.R. Moore

The Car Shack (dates announced at www.txiada.org)

EL PASO

Cesar Stark

S & S Motors Meeting – 3rd Friday (Monthly)

FORT WORTH

Jerry Smith

H J Smith Automobiles

(dates announced at www.txiada.org)

HOUSTON

April Hanson

Coast to Coast Motors Meeting – 2nd Tuesday (Monthly)

SAN ANTONIO

Jose Engler

Irving Motors Corp (dates announced at www.txiada.org)

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TxDMV Update

by Daniel Avitia Executive Director of TxDMV

What a difference a year makes! I am excited to provide this report on the successful way the Texas Department of Motor Vehicles (TxDMV) has navigated the challenges of the past year. Independent automobile dealers are crucial to the success of the mo tor vehicle industry in Texas, and we value the open lines of communication and cooperation we’ve built with both TIADA and many of you individually as key strategic part ners. While we have built a strong foundation, we will con tinue working to improve our regulation of the industry.

At the end of 2021, TxDMV was on the cusp of imple menting new rules and processes to address serious concerns with the fraudulent abuse of vehicle temporary tags. Throughout the past year, the department turned the tide on these bad actors while ensuring the thou sands of law-abiding motor vehicle dealers across the state can continue to grow their businesses in an indus try that is a crucial component of the Texas economy.

The new licensing and system changes related to tem porary tags implemented at the end of 2021 and the beginning of 2022 were just the beginning of the depart ment’s current and upcoming initiatives to improve the motor vehicle regulatory environment for legitimate in dependent dealers. I am pleased to bring you this update of the various work conducted on behalf of the state’s motoring public over the last year.

Application Processing

The dealer application process has evolved consider ably over the past year, incorporating enhancements to strengthen the pre-licensing review process and stop in dividuals attempting to obtain a license for the purposes of committing crimes. For example, in-person site visits to confirm the legitimacy of licensed locations increased 250% from fiscal year 2021 to fiscal year 2022.

While these changes have increased the consistency of review processes and have proven successful in deterring fraud, they have also altered the focus of the applica tion process and added to the overall licensing specialist workload, resulting in increased application process ing times. To accommodate these changes and expedite processing times, the department has repurposed vacant positions to create a new Background and Fraud Section of the Motor Vehicle Division (MVD). Creation of this section has helped streamline the new processes.

However, TxDMV struggles with the same staffing and workforce challenges experienced by both public

and private sector employers across Texas. We are also in the process of filling vacant positions and training new team members to address recent staff turnover, but these activities take time. To shorten the training time, we are staggering new employee job responsibilities to get them working reviews as quickly as possible. All new license specialists start their training by processing GDN appli cations before moving on to other types of applications. As new employees advance in their training, the time it takes for MVD to review applications will decrease.

Temporary Tags

Last session, the Texas Legislature gave TxDMV signifi cant new tools to address temporary tag misuse and fraud. Since the adoption of rules in January 2022, the depart ment has been able to immediately cut off eTAG system access to licensees who issue an excessive number of tags compared to their actual sales. This process was supported by the application of individualized maximum tag limits for each dealer based on past sales data and business his tory. When these rules took effect, unscrupulous “dealers” who obtained licenses for fraudulent purposes hit an im mediate roadblock that has halted the distribution of thou sands of fraudulent temporary tags throughout the nation.

Fingerprinting

Another important step in curtailing temporary tag abuse is stopping criminals from obtaining a dealer li cense in the first place. To that end, the department de veloped and implemented fingerprinting requirements as part of the application process beginning September 1, 2022. Adding fingerprinting to the licensing process strengthens identity validation and allows department staff to review applicant’s criminal history information more accurately.

This is a one-time requirement impacting new appli cants, renewal applicants, and applications to alter an ex isting license due to a change in ownership or representa tive status. Both independent and franchised dealer appli cants and license holders are subject to this requirement. The good news is that, as long as you maintain an active license, you will only have to be fingerprinted once.

It’s important that applicants and license holders not get their fingerprints taken until after they submit their license application and have received guidance and instructions from the MVD on where to go to be fingerprinted and the appropriate codes to provide for

distribution of the results back to TxDMV.

We have been pleased to see the process running smoothly over the first couple of months, but I know many of you may have questions. Fingerprinting locations are conve niently placed throughout the state, and the process is generally quick — adding an average of 2-3 business days to the application process while the vendor sends results to TxDMV. Department staff is here to help you navigate this new process as easily as possible. Visit our Fingerprinting Requirements page online at TxDMV.gov/dealers/fingerprinting or contact our helpful MVD staff any time you need assistance.

Temporary Tag Redesign

The next step in preventing tag abuse and getting ahead of criminal elements is a complete redesign of the physical temporary tags and temporary permits. Over the past several months, TxDMV has been working with law enforcement, other states, third-party vendors, and other stakeholders to overhaul the tag design to enhance security. We have developed a new tag design that employs national best practices and introduces significant improve ments in security features.

As of the deadline for submission of this article, we are looking at de ploying the new tag design toward the beginning of December and are developing a communication plan to inform and educate dealers, tax assessor-collectors, law enforcement, and the general public of what to ex pect from the new design. This is an exciting development for TxDMV, and we can’t wait for you to see the finished product.

Dealer Training

Compliance and education go hand-in-hand, and that is why our Enforcement Division offers a robust toolkit of training resources for mo tor vehicle dealers. Our online dealer training seminars focus on the laws

that most affect the motor vehicle industry and automobile dealers.

I encourage you and your em ployees to take advantage of these free sessions to help understand the rules that govern motor ve hicle businesses. Each seminar includes information that helps dealers stay in compliance with state and federal regulations and avoid violations. Upcoming dates are available online at TxDMV. gov/dealers/dealer-services/ dealer-training-seminars

Along with these optional dealer training seminars, the mandatory dealer education program continues to strengthen licensees’ knowledge of the rules of the road. Since the educa tion requirement began in September 2020, thousands of applicants have participated in this program.

Legislative Update

The state legislature will convene on January 10, 2023 to again debate the laws of Texas and set policy pri orities and budgets for the future of our great state. The department’s Legislative Appropriations Request for the 2024-25 Biennium includes two major components:

Baseline funding, including all on going program operations of the de partment, totals $349 million for the two-year period. Exceptional items are an additional $141 million. Some of the exceptional items that per tain to independent dealers include

the planning and preparation work for replacing the Registration and Titling System (RTS); expansion of the TxDMV regional service centers in Dallas and Houston; increase in authorized FTEs (including new staff for temporary tag administration, technology modernization/security, and to meet increasing workloads in customer facing programs).

Throughout the legislative session, TxDMV will continue partnering with TIADA to ensure we under stand the impacts of policy propos als to independent dealers and can communicate your needs and input appropriately with legislative offices.

Final Thoughts

In the July issue of Texas Dealer, I said that TxDMV is working very hard to rebuild the department’s relationships with our partners and stakeholders, and to make sure we are as responsive and customer fo cused as possible. This commitment is ongoing, and I am grateful for the strong relationship that exists between TxDMV and TIADA. By maintaining open lines of communi cation, sharing ideas and concerns, and always doing what is right for the people of Texas, TxDMV and motor vehicle dealers can provide exceptional customer service and keep our economy rolling. The fu ture can be bright when we work together to keep Texas’ economy a model for the country.

DEALER MEMBERS

Autobyzack

Binx

West Lyon, Laredo, TX 78040

Driven Auto Griffin Plagens 203A Northwest Loop 230, Smithville, TX 78957

L2 Motors, LLC Robert Love 256 Land of Goshen Rd, Springtown, TX 76082

Leader Auto Sales Luay Abuaada 2102 Ivanhoe Lane, Dallas, TX 75208

Sky Rides Automotive Group, LLC Ayman Alyassir... 8733 Richmond Ave., Houston, TX 77063

T.S. Imports, Inc. Antonio Silva 1735 S. Dairy Ashford St., Houston, TX 77077

Vicky Cars Vicky Lara 12060 Alameda Avenue, El Paso, TX 79836

ASSOCIATE MEMBERS

EBlock Corporation Michelle Besaw-Parks 212 Battery St. Suite 3, Burlington, VT 05401

Space Auto Jason Gluskin ..............7800 N. Stemmons FWY #1100,, Dallas, TX 75247

ATTENTION STUDENTS!

$1,000 Marvin Norwood Scholarship

DEADLINE

May 13, 2023

{Applications and/or any required documents received after May 13, 2023 will NOT be accepted.}

Criteria and Guidelines

1. Each applicant must be entering or currently enrolled in an accredited college or a trade school. Proof of enrollment must be included with this application.

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

3. Each applicant must complete the application form.

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

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).

SCHOLARSHIP APPLICATION

Date: Name: DOB: Address: City: State: Zip: Email: (You will receive an email confirmation of receipt.)

Telephone Number: High School Last Attended: Address: City: State: Zip: Dates of Attendance: Date of Graduation:

Other High Schools Attended (Names and Addresses):

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

Parents Name(s):

TIADA Member Name (Sponsor): TIADA Member Company Name: TIADA Member Address:

City: State: Zip:

Sponsor Signature

Should you have any questions, please contact TIADA at 512.244.6060. Please return the completed application with all required documents to: TIADA

Attention: Scholarship Applications 9951 Anderson Mill Rd. Suite 101, Austin, TX 78750

Trends in Auto Finance Compliance

by Eric Fancher Senior Financial Examiner, OCCC

The OCCC’s Consumer Protection Division operates a comprehensive regulatory compliance program. Each Fall, the Division holds an examiner training school at which common compliance issues observed over the past year are a prominent topic of discussion. The fol lowing are examples of compliance violations frequently observed by examiners during the past year.

No Notice After Repossession

Unfortunately, a somewhat common violation is the failure to provide a required notice to buyers after repos session. We hope that all licensees understand repossession occurs when they or their agent come into “possession” of collateral. Examiners often find that licensees do not realize when a buyer returns their vehicle to the dealership for any reason, or no reason, the vehicle has been repossessed. As a reminder, examples of repossession include: when your hired repossession agent recovers the vehicle; when you or your agent recover an impounded vehicle to protect your interest; when a buyer, co-buyer, or buyer’s designee, returns the vehicle to you; or when, at the buyer’s request, you pick up their vehicle. In each instance the vehicle has been repos sessed and a notice of public or private sale or a proposal to accept the collateral in full satisfaction must be provided or sent to each buyer. Failure to send an appropriate notice may result in your forfeiture of a deficiency balance. If in tending to propose acceptance of collateral in full satisfac tion of the debt owed and no notice is sent, or the wrong notice is sent, you could be liable for a surplus balance after the sale. Examiners will ask for and review repossession notices for compliance. Notices do not have to be mailed by certified mail, but that would be indisputable evidence.

Improper Notice of Repossession Disposition

“Disposition” is your selling or retention of the repossessed vehicle. Examiners often find that a licensee has used an im proper notice or, more likely, failed to follow through with the method of disposition indicated in the notice. For example, if a notice of public or private sale is sent, the notice must indi cate whether the sale is to be public or private. A public sale is generally considered to be an auction open to the general public, and at which the buyer may bid, and win, the auction. A private sale is generally assumed to be a dealers-only or restricted access auction. If a notice of public or private sale is sent, the licensee must: sell the vehicle in the manner provid ed; post the proceeds to the account balance; if assessed, ac count for authorized out-of-pocket expenses; and determine

the final balance, surplus or deficiency. Any surplus must be promptly disbursed and documented. Any deficiency must be noted, even if not intended to be pursued. If requested or if you intend to try and collect the deficiency you must provide the buyer with a notice of surplus/deficiency balance.

In regard to acceptance of collateral (aka strict foreclo sure), the proper period of time must be observed before disposing of the vehicle. Unless the proposal is signed at or shortly after repossession or return (e.g.: voluntary surrender form with acceptance language), the buyer has 20 days after the date the notice is sent to provide written objection to you. This means you must document the date the notice is sent and ensure the vehicle is not sold prior to the 21st day after the notice is sent. The waiting period ends as soon as the buyer signs accepting the proposal if prior to the 21st day. After acceptance by the buyer or expiration of the wait ing period, your duty is to waive the entire remaining bal ance. Examiners look for the balance to be zero. Also, if the account is reported to a credit reporting agency as a repos session, the reported balance must also reflect $0.00.

If the buyer has paid 60% or more of the cash price of the vehicle, including down payment, the acceptance of collateral notice must disclose that fact to the buyer and the notice must be signed by the buyer. If not signed by the buyer, then a notice of public or private sale must be sent and the collateral disposed of accordingly.

Finally, for each method of disposition, examiners will look to see that the buyer’s account record is notated ap propriately and that all supporting records are maintained in support of your compliance.

Unauthorized Repossession Fees

Examiners sometimes observe fees assessed to an account for repossession exceed the amounts actually paid by the licensee. Such as when repossession fees are assessed when no repossession occurred. An example of this may include a so-called repossession agent “close fee” assessed to the licens ee by the agent after the repossession order was cancelled, usually after a buyer makes a payment. Because repossession did not occur, the close fee may not be assessed to the buyer. Also, a licensee may not add costs incurred by an employee. In other words, a licensee may not reimburse themselves for their own costs. Regarding fees related to repossession, the Finance Code authorizes a licensee to assess and collect “reasonable out-of-pocket expenses incurred in connection with the repossession or sequestration of the motor vehicle... including the costs of storing, reconditioning, and reselling

the vehicle, subject to the standards of good faith and com mercial reasonableness set by Title 1, Business & Commerce Code.” What this means is 1) repossession must occur, and 2) only reasonable actual out-of-pocket fees may be assessed and charged. Examiners will ask to see proof for any charges added to an account or charged to a buyer. Any fees unsup ported by appropriate documentation will likely result in an instruction to refund the fees.

Inspection Fee Disclosure

After the implementation of the Two-Step-One-Sticker program, much confusion ensued regarding how to prop erly record the charges for government vehicle inspections. Confusion continues to this day. As a retail seller, you are authorized to pass your costs for government vehicle inspec tion to the buyer and collect those costs by including them in your buyer’s order and retail installment contract. However, if your dealership includes the costs of inspection in an in stallment sales contract for state inspection, the fees must be properly disclosure. Finance Code administrative regulations provide for two methods of disclosure. To be compliant, you must look to how your installment sales contract discloses the charges. If the contract contains “to state $________ to inspection station $________” immediately below the Government Vehicle Inspection Fees line, then both the

state fee and the station fee must be on their respective line and in the amount indicated by the title application receipt (form VTR-500-RTS) and the station receipt. Examiners will expect to see both of these documents are they are records required to be maintained by the licensee.

Alternatively, if your installment sales contract does not include the itemization above, then the compliant disclo sure is to record only the station fee on the government ve hicle inspection fee line, that most likely reads “Inspection Station Fee”. In this case, the state fee included on the title application receipt is to be included in the total on the “Government license and registration fees” line.

These fees may generally be set in your dealer manage ment software (“DMS”) preferences. For acceptance compa ny dealer portals, you most likely must contact them to make changes. Finally, regardless if you use your own DMS or an acceptance company’s dealer portal or website, it is your re sponsibility to ensure inspection fees are disclosed correctly.

Excessive, Improperly Disclosed, or Unauthorized Fee

A common recurring violation is the discovery of exces sive, unauthorized, or improperly disclosed itemized fees. A retail seller is authorized to include the actual fees that are paid to public officials on behalf of the buyer. Examples include

C

sales tax, title, license, registration, and state inspection. Additionally, Vehicle Inventory Tax (“VIT”) and a reason able documentary fee are authorized to be included at the seller’s option. If the VIT is included in the contract, it must be identified and on the appropri ate line. As a reminder, the VIT factor must be correct and updated in your DMS, including dealer portals, each year. Accordingly, an examiner may ask for your VIT factor notices as proof. Finally, other fees for authorized prod ucts and services for which the seller may retain a part of the fees may also be included. Examples include, but are not limited to, vehicle service contracts, credit insurance, and debt cancellation agreements. Proof of these fees are the certificates of coverage which also indi cate the fee charged. It is a best practice to review the fees you charge regularly, if not on every sale, for accuracy. Fees change more often than you may realize.

Fees not authorized to be included as a separate charge in the itemization of amount financed may include socalled “dealer prep” or other similar fees fully retained by the seller for the recovery of certain costs of selling. Such fees should be in the advertised price and taxable value of the vehicle. Other separately itemized fees for accessories or services must also be carefully considered. Some may be services related to the sale or accesso ries added to the vehicle that must go in the selling price and taxable value.

If excessive or unauthorized charges are found to be included in an install ment sales contract, examiners will very likely instruct the licensee to conduct an exhaustive and time-consuming self-review to identify and refund the charges, including any finance charge attributed to the charge. Again, you are responsible for your own compliance. If you are unsure if a charge is allowable, please contact the OCCC for guidance.

GPS/Tracking devices

Examiners often discover GPS or tracking devices have been installed on sold vehicles for which there is no

written consent from the buyer. The OCCC considers the installation of a GPS/Tracking device to be a form of pre-default enforcement. As such, any pre-default enforcement must be agreed to by the buyer according to the Texas Business and Commerce Code. Written consent to the instal lation of the GPS/Tracking device should be obtained prior to finalizing the sale. Moreover, installing a GPS/ Tracking device without the buyer’s consent is a criminal offense accord ing to the Texas Penal Code. Finally,

an itemized charge for a GPS/Tracking device is unauthorized according to the Texas Finance Code.

Required Postings of the Documentary Fee Notice and Finance License

A very common violation is not posting the required Documentary Fee Notice. If your dealership charges a documentary fee, a Documentary Fee Notice must be posted wherever sales are closed. The posting may be hung on a wall or displayed on a desk. The

wording of the notice is the same as that contained in your Buyer’s Orders and Installment Sales Contracts.

Another somewhat common ob servation is the discovery that the Motor Vehicle Sales Finance License was not posted conspicuously in a public area of the dealership, or was not posted at all. A Motor Vehicle Sales Finance license holder is re quired by rule to prominently display its finance license in a conspicuous location visible to the general public. Each location at which financing is offered or discussed is required to have its license posted accordingly.

For example, if your dealership has multiple sales buildings at the same location that consumers may visit without visiting the building display ing your finance license, your finance license may not be considered to be “conspicuously” posted. Also, as a reminder, if your dealership has mul tiple addresses at which financing is offered or discussed, each additional office must have a “registered office” license. If you have questions about licensing, please contact our licensing department for assistance.

Increasing use of Acceptance Company Web-based Platforms or Dealer Portals

Examiners across all regions of Texas have observed the increasing use of acceptance company websites or dealer portals (“portal”) by dealers rather than their own dealer man agement software (“DMS”) when originating retail installment sales contracts assigned to those same ac ceptance companies. There are advan tages in doing so, such as expedited application and contract processing and faster funding. However, with increased use of these platforms, examiners have observed increasing non-compliance resulting in viola tions of state and federal law and harm to Texas consumers.

For example, examiners have ob served dealers sometimes become reliant on the assumed sophistication

and assertions of compliance by acceptance companies with out question. The unfortunate result was those examiners discovered numerous examples of improper disclosures in violation of the Texas Finance Code and Regulation Z Truth in Lending. More concerning was the inadvertent inclusion of excessive or unauthorized fees, resulting in hundreds, if not thousands, of dollars of restitution. How do you prevent these violations and protect your dealership? One solution may be to use your own DMS as you would to originate a retail installment sale to be assigned to any other acceptance company. By entering the sale into your own DMS and print ing a retail installment contract as you normally would, you can then compare it to the contract created in the portal. You should be able to quickly identify and correct disclosure errors in the portal contract before any harm is done (don’t forget to destroy the unused unsigned contract).

By not using the dealer’s own DMS to record the sale, a recordkeeping violation was found at some licensees using portals. The violation was that the retail installment sales originated through the portal did not appear on required sales reports. If the sale is not entered into your DMS, the sale is not included in your general sales report or your financed sales report. Nor will it be included in your VIT reporting or sales tax reporting. In some instances, licens ees could not produce the required list of all financed sales. Again, a best practice may be to enter all your sales into your DMS, including financed sales for which the sale is to be completed through a portal. By doing so, you can be assured the sale will be included in your financed sale reports.

Another recordkeeping violation was discovered when licensees assumed the portal originated transaction docu ments would be maintained by the acceptance company and available on request. However, most acceptance companies will not provide recordkeeping services for licensees using the portal. In some examinations, the licensee was unable to produce the retail installment contract and other required re cords. It is important to understand that the acceptance com pany is most likely under no obligation to provide records to you. To obtain copies from the acceptance company after the fact, you may be charged a per-page fee for the acceptance company to provide you with copies of the records you origi nally produced. Also, it is quite possible that the acceptance company may decline to provide copies of records altogether citing privacy concerns. As a retail installment seller, it is your responsibility to maintain records sufficient to prove your compliance, including all required records.

Another recent problem occurred when multiple licens ees were discovered to be unable to print, from a portal, a legible copy of an e-signed installment sales contract for the buyer and for their own records. The printed install ment sales contract was almost completely blacked out and illegible. This raises the question, did the seller comply with the contract provision required by Texas Finance Code, §348.102(d) which requires the contract to include the following statement:

“NOTICE TO THE BUYER — DO NOT SIGN THIS CONTRACT BEFORE YOU READ IT OR IF IT CONTAINS ANY BLANK SPACES. YOU ARE ENTITLED TO A COPY OF THE CONTRACT YOU SIGN. UNDER THE LAW YOU HAVE THE RIGHT TO PAY OFF IN ADVANCE THE FULL AMOUNT DUE AND UNDER CERTAIN CONDITIONS MAY OBTAIN A PARTIAL REFUND OF THE FINANCE CHARGE. KEEP THIS CONTRACT TO PROTECT YOUR LEGAL RIGHTS.”

Moreover, Texas Finance Code, Section 348.110, requires “A retail seller shall: (1) deliver to the retail buyer a copy of the retail installment contract as accepted by the retail seller; . . .” The harm to the buyer should be obvious, did the buyer have sufficient opportunity to see and review the contract in its true form before signing? More importantly, did the buyer receive a legible copy of their signed contract documenting their contractual obligation? Licensees may not realize that Texas Finance Code, Section 348.111 provides that “Until the retail seller complies with Section 348.110, a retail buyer who has not received delivery of the motor vehicle is entitled to: (1) rescind the contract; (2) receive a refund of all payments made under or in contemplation of the contract; and (3) re ceive the return of all goods traded in to the retail seller under or in contemplation of the contract or, if those goods cannot be returned, to receive the value of those goods.”

It must be noted that most of these same violations of state and federal law reflect on the acceptance company that provided access to their website or portal. But that does not release or indemnify the originating seller from responsibility for their own compliance.

In conclusion, the responsibility for compliance falls on the licensee to ensure the installment sales transactions and documents they prepare, regardless of the platform used, are compliant and accurate. If a retail installment sales contract originated using an acceptance company’s portal or website is found to contain inaccurate disclosures, or if you are un able to provide a completed contract for buyer review prior to signing, or you cannot print a copy of an e-signed contract for both you and the buyer, you should immediately contact the administrator of the acceptance company’s portal or web site to correct the deficiencies prior to completing the sale. If you find the administrator of an acceptance company portal or website is unresponsive, you are probably not alone and should file a complaint with the OCCC.

The information presented in this article is for general and informational purposes only and is not a formal inter pretation of statutes or regulations. If you have any ques tions or seek additional information, please reach out to the author or the OCCC directly.

Eric Fancher is a Senior Financial Examiner specializing in auto finance exam operations and industry outreach. Eric may be reached via email at eric.fancher@occc.texas.gov or you may contact the OCCC directly by calling (512) 936-7600.

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Maximum Finance Charge Rates for 2023

by Michael W. Dunagan TIADA Counsel

Dealer Question: What is the maximum fi nance charge rate I can use on a motor vehicle retail installment contract?

Answer: Dealers who hold vehicle finance licenses issued by the Office of Consumer Credit Commissioner (OCCC) are authorized to finance the sale of vehicles, and are allowed to add finance charge or time-pricedifferential to the amount financed (while the term “in terest” is commonly used interchangeably with finance charge and time-price-differential, “interest” actually is the amount charged on a loan of money, and should not technically be used in the context of financing the sale of a motor vehicle).

The legislature has established a sliding scale of maximum rates, with higher rates allowed on older cars. The maximum rate that sellers of older vehicles can add to the amount financed is $15 per $100 per annum or, stated another way, 15 per cent add on (see accompanying chart). Depending on such variables as the length of the repayment pe riod, the amount of each payment, and the frequency of payment (weekly, bi-weekly, semi-monthly or monthly), the annual percentage rate on 15 per cent add on can exceed 26 per cent.

Chapter 348 of the Texas Finance Code allows sell ers of vehicles to finance any unpaid balance at rates that generally exceed the rates of interest that can be legally charged by banks and traditional lenders.

For purposes of setting maximum rates of finance charge, Chapter 348 establishes four classes of ve hicles based of the vehicle’s model year. The attached chart shows allowable rates for calendar year 2023. These rates are valid on sales that take place between January 1, 2023, and December 31, 2023. The maxi mum rates “roll over” on January 1 of each year.

The maximum rates of finance charges are stated in the Finance Code as “add-on” rates. For example, for vehicles that fall into the class-four category, sell ers can charge fifteen dollars per one hundred dollars financed per annum. These are maximum rates, and any rate lower than the maximum can be charged.

“Add-on” rates should not be confused with “annual

percentage rates” which are the rates required to be dis closed on loans and retail installment sales by federal law. The Annual Percentage Rate (or APR), which ap pears in the so-call “Fed Box”, will usually be substan tially higher than the add-on rate.

All financing sellers, with a few exceptions, are re quired by federal law to disclose the rate of finance charge as an annual percentage rate, or APR, on their contracts. Since Texas law sets maximum rates as addon rates, it is necessary to first calculate the amount of finance charge the creditor chooses to assess within the legal limit, then determine the APR for disclosure purposes. Federal Truth-In-Lending requires that any finance charge rate be advertised or expressed to a con sumer as an APR. It is thus improper to advertise or discuss add-on rates with customers.

The process of calculating the APR on contracts that provide for payments other than equal monthly payments is extremely difficult. Most dealers rely on specialized software (often referred to as dealer manage ment software, or DMS) to perform this function. (For a list of reviewed programs, see the OCCC website at https://www.occc.texas.gov).

Without appropriate software, it is virtually impos sible for a creditor who collects weekly, bi-weekly, or semi-monthly payments to accurately calculate an APR and other required disclosures. Dealers should not guess at or estimate an APR as incorrect disclosures are the basis for claims for statutory damages and attorneys fees.

Note that the chart also includes a column for what is referred to as an “Alternate Rate.” This rate is 18 per cent APR for all four classes. Many dealers have ques tioned what the alternate rate is, and how it affects the rates they can charge.

The alternate rate is an optional rate. A dealer has the option to use either the standard or alternate rate. As an example, a dealer financing the sale of a 2015 model- year vehicle can charge up to 15 per cent add-on (since this year model falls into Class Four) or the alternative rate of 18 per cent A.P.R. Since the 15 per cent add-on rate translates to over 26 per cent A.P.R. on a typical weekly payment contract, a higher legal return can be achieved using the standard rate than the alternative rate.

Maximum Finance Charge Rates for Calendar Year

Class Year Models

One 2024 and 2023 new

Two Any new not appearing in Class One above; 2023, 2022 and 2021 used

Three 2020 and 2019

Max. Rate

Alternate Rate

7.5 per cent add-on 18 per cent APR

10 per cent add-on 18 per cent APR

12.5 per cent add-on 18 per cent APR

Four 2018 and older 15 per cent add-on 18 per cent APR

On the other hand, the sale of a class-two vehicle would be subject to a 10 per cent add-on maximum. Since the actual yield on 10 per cent add-on would be lower than 18 per cent, the alternative rate would allow the seller a higher legal return.

OCCC rules also require the disclosure of a “con tract rate” which is different from the add on rate and A.P.R. DMS providers that comply with Texas require ments properly calculate and disclose the contract rate. The OCCC website has additional information about

maximum rates and contract rates.

Remember that the so-called “add-on rate,” which is the rate used to calculate the finance charge added to a contract, can’t be used on the contract documents or in any communication with consumers, such as advertis ing. In order that credit consumers can shop rates on an “apples to apples” basis, federal law requires all discus sions about rates to refer to the chosen universal rate, or the A.P.R. It would thus be improper to have an add-on rate appear anywhere on a contract.

TIADA Auction Directory

Abilene

ALLIANCE AUTO AUCTION ABILENE www.allianceautoauction.com 6657 US Highway 80 West, Abilene, TX 79605 325.698.4391, Fax 325.691.0263

GM: Brandon Denison Friday, 10:00 a.m. $AVE : $200

C.M. COMPANY AUCTIONS, INC. www.cmauctions.com 2258 S. Treadaway, Abilene, TX 79602 325.677.3555, Fax 325.677.2209

GM: Gregory Chittum Thursday, 10:00 a.m. $AVE : $200

IAA ABILENE* www.iaai.com 7700 US 277, Hawley, TX 79601 325.675.0699, Fax 325.675.5073

GM: Shawn Lemke Thursday, 9:30 a.m. $AVE : up to $200 Sell Fee

Amarillo

IAA AMARILLO* www.iaai.com

11150 S. FM 1541, Amarillo, TX 79118 806.622.1322, Fax 806.622.2678

GM: Shawn Norris Monday, 9:30 a.m. $AVE : up to $200 Sell Fee

Austin

ADESA AUSTIN www.adesa.com 2108 Ferguson Ln., Austin, TX 78754 512.873.4000, Fax 512.873.4022

GM: Michele Arguijo Tuesday, 9:00 a.m. $AVE : $200

ALLIANCE AUTO AUCTION AUSTIN www.allianceautoauction.com 1550 CR 107, Hutto, TX 78634 737.300.6300

GM: Brad Wilson Wednesday, 9:45 a.m. $AVE : $200

AMERICA’S AA AUSTIN / SAN ANTONIO www.americasautoauction.com 16611 S. IH-35, Buda, TX 78610 512.268.6600, Fax 512.295.6666

GM: Jamie McCollum Tuesday, 1:30 p.m. / Thursday, 2:00 p.m. $AVE : $200

IAA AUSTIN* www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141

GM: Geoffrey Rabb Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

METRO AUTO AUCTION AUSTIN www.metroautoauction.com 8605 Cullen Ln., Austin, TX 78748 512.282.7900, Fax 512.282.8165

GM: Brent Rhodes 3rd Saturday, monthly $AVE : $200

Corpus Christi

CORPUS CHRISTI AUTO AUCTION www.corpuschristiautoauction.com 2149 IH-69 Access Road, Corpus Christi, TX 78380 361.767.4100, Fax 361.767.9840

GM: Hunter Dunn Friday, 10:00 a.m. $AVE : $200

IAA CORPUS CHRISTI* www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880

GM: Patricia Kohlstrand Wednesday, 9:00 a.m. $AVE : up to $200 Sell Fee

Dallas-Ft. Worth Metroplex ADESA DALLAS www.adesa.com 3501 Lancaster-Hutchins Rd., Hutchins, TX 75141 972.225.6000, Fax 972.284.4799

GM: Eric Jenkins Thursday, 9:30 a.m. $AVE : $200

ALLIANCE AUTO AUCTION DALLAS www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136, Fax 469.828.8225

GM: Robert Kersh Wednesday, 1:30 p.m. $AVE : $200

AMERICA’S AA DALLAS www.americasautoauction.com 219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972.591.2742

GM: Ruben Figueroa Tuesday, 1:00 p.m. / Thursday, 1:00 p.m. $AVE : $200

IAA DALLAS*

www.iaai.com 204 Mars Rd., Wilmer, TX 75172 972.525.6401, Fax 972.525.6403

GM: Bob Bannister Wednesday, 9:00 a.m. $AVE : up to $200 Sell Fee

IAA DFW* www.iaai.com 4226 East Main St., Grand Prairie, TX 75050 972.522.5000, Fax 972.522.5090

GM: Julissa Reyes Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

IAA FORT WORTH NORTH* www.iaai.com 3748 McPherson Dr., Justin, TX 76247 940.648.5541, Fax 940.648.5543

GM: Jack Panczyk Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

MANHEIM DALLAS** www.manheim.com 5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800, Fax 214.339.6347

GM: Rich Curtis Wednesday, 9:00 a.m. $AVE : $100

MANHEIM DALLAS FORT WORTH** www.manheim.com 12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000, Fax 817.399.4251

GM: Nicole Graham-Ponce Thursday, 9:30 a.m. $AVE : $100

METRO AUTO AUCTION DALLAS** www.metroaa.com 1836 Midway Road, Lewisville, TX 75056 972.492.0900, Fax 972.492.0944

GM: Scott Stalder Tuesday, 9:00 a.m. $AVE : $200

El Paso

AMERICA’S AUTO AUCTION EL PASO www.epiaa.com 7930 Artcraft Rd., El Paso, TX 79932 915.587.6700, Fax 915.587.6700

GM: Luke Pidgeon Wednesday, 10:00 a.m. $AVE : $200

IAA EL PASO* www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489, Fax 915.852.2235

GM: Jorge Resendez Friday, 10:30 a.m. $AVE : up to $200 Sell Fee

MANHEIM EL PASO

www.manheim.com

485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645

GM: JD Guerrero Thursday, 10:00 a.m. $AVE : $100

Harlingen/McAllen

IAA MCALLEN* www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393, Fax 956.464.8510

GM: Ydalia Sandoval Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

BIG VALLEY AUTO AUCTION** www.bigvalleyaa.com 4315 N. Hutto Road, Donna, TX 78537 956.461.9000, Fax 956.461.9005

GM: Lisa Franz Thursday, 9:30 a.m. $AVE : $200

Houston

ADESA HOUSTON www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030

GM: Brian Wetzel Wednesday, 9:00 a.m. $AVE : $200

AMERICA’S AA HOUSTON www.americasautoauction.com 1826 Almeda Genoa Rd., Houston, TX 77047 281.819.3600, Fax 281.819.3601

GM: Ben Nash Thursday, 2:00 p.m. $AVE : $200

AMERICA’S AA NORTH HOUSTON www.americasautoauction.com 1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842

GM: Buddy Cheney Tuesday, 1:00 p.m. $AVE : $200

AUTONATION AUTO AUCTION - HOUSTON www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 822.905.2622, Fax 281.506.3866

GM: Juan Gallo Friday, 9:30 a.m.

$AVE : $200

HOUSTON AUTO AUCTION www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566, Fax 713.644.0889

President/GM: Tim Bowers Wednesday, 11:00 a.m. $AVE : $200

IAA HOUSTON* www.iaai.com 2535 West. Mt. Houston, Houston, TX 77038 281.847.4700, Fax 281.847.4799

GM: Alvin Banks Wednesday, 9:00 a.m. $AVE : up to $200 Sell Fee

IAA HOUSTON NORTH* www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300, Fax 281.443.4433

GM: Aracelia Palacios Thursday, 9:00 a.m. $AVE : up to $200 Sell Fee

IAA HOUSTON SOUTH* www.iaai.com 2839 E. FM 1462, Rosharon, TX 77583 281.369.1010, Fax 833.595.8398

GM: Adriana Serrano Friday, 9:30 a.m. $AVE : up to $200 Sell Fee

MANHEIM HOUSTON www.manheim.com 14450 West Road, Houston, TX 77041 281.924.5833, Fax 281.890.7953

GM: Brian Walker Tuesday, 9:00 a.m. / Thursday 6:30 p.m. $AVE : $100

MANHEIM TEXAS HOBBY www.manheim.com 8215 Kopman Road, Houston, TX 77061 713.649.8233, Fax 713.640.6330

GM: Darren Slack Thursday, 9:00 a.m. $AVE : $100

Longview

ALLIANCE AUTO AUCTION LONGVIEW www.allianceautoauction.com 6000 East Loop 281, Longview, TX 75602 903.212.2955, Fax 903.212.2556

GM: Chris Barille Friday, 10:00 a.m. $AVE : $200

IAA LONGVIEW* www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248, Fax 903.553.0210

GM: Edgar Chavez Thursday, 9:00 a.m. $AVE : up to $200 Sell Fee

Lubbock

IAA LUBBOCK* www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472

GM: Chris Foster Tuesday, 9:00 a.m. $AVE : up to $200 Sell Fee

TEXAS LONE STAR AUTO AUCTION** www.lsaalubbock.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606

GM: Dale Martin Wednesday, 9:30 a.m $AVE : $75/Quarterly

Lufkin

LUFKIN DEALERS AUTO AUCTION www.lufkindealers.com 2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299, Fax 936.632.4218

GM: Wayne Cook Thursday, 6:00 p.m. $AVE : $200

Midland Odessa

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

ONLINE

ACV AUCTIONS** www.acvauctions.com 800.553.4070 $AVE : $250

E-DEALERDIRECT** www.e-dealerdirect.com chris@edealerdirect.com $AVE : Up to $500/month San Antonio

ADESA SAN ANTONIO www.adesa.com 200 S. Callaghan Rd., San Antonio, TX 78227 210.434.4999, Fax 210.431.0645

GM: Clifton Sprenger Thursday, 10:00 a.m. $AVE : $200

IAA SAN ANTONIO* www.iaai.com 11275 S. Zarzamora, San Antonio, TX 78224 210.628.6770, Fax 210.628.6778

GM: Paula Booker Monday, 9:00 a.m. $AVE : up to $200 Sell Fee

MANHEIM SAN ANTONIO** www.manheim.com 2042 Ackerman Road San Antonio, TX 78219 210.661.4200, Fax 210.662.3113

GM: Mike Browning Wednesday, 9:00 a.m. $AVE : $100

SAN ANTONIO AUTO AUCTION** www.sanantonioautoauction.com 13510 Toepperwein Rd. San Antonio, TX 78233 210.298.5477

GM: Brandon Walston Tuesday, 10:00 a.m. / Thursday, 1:30 p.m. $AVE : $200

Tyler

GREATER TYLER AUTO AUCTION www.greatertyleraa.com 11654 Hwy 64W, Tyler, TX 75704 903.597.2800, Fax 903.597.3848

GM: Wayne Cook Tuesday, 5:00 p.m. $AVE : $200

Waco

ALLIANCE AUTO AUCTION WACO www.allianceautoauction.com 15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298

GM: Christina Thomas Friday, 10:00 a.m. $AVE : $200

regulation matters

A Complete Guide to Safeguards Compliance

The deadline for full compliance with the Federal Trade Commission’s (FTC) “Safeguards Rule” was December 9, 2022. However, the FTC gave dealers an additional 6 months to make the new deadline June 9, 2023. Just prior to the old deadline, numerous dealers reached out to TIADA for guidance. If you have not already imple mented the requirements of the Safeguards Rule, please start implementing it immediately and do not wait until June, as it will be here faster than you expect. Although the FTC is unlikely to check for compliance at most dealerships, this rule can be enforced in other ways. The most common enforcement methods will likely be plaintiffs’ attorneys and Texas’s Attorney General bringing action under the Texas Deceptive Trade Practices Act. Texas Attorney General Ken Paxton has already filed lawsuits against other companies alleging failure to implement reasonable security practices and failure to provide notice of a breach.

The Safeguards Rule requires dealers to implement poli cies and practices based on their size and complexity, which has resulted in some larger dealer groups spending over a million dollars to be ready for the Safeguards Rule. Many of the larger dealers are ready, and based on the calls TIADA has received, smaller dealers without IT and in-house coun sel are having the most difficulty figuring out what they need to do. To help smaller dealers, I spoke with the techni cal staff of several large groups for practical guidance and have incorporated their advice into this article. With that in mind, in this edition of Regulation Matters, I will discuss implementing the Safeguards Rule on a budget, as everyone can comply with the requirements regardless of their size.

There are several written policies that you should have in place. Templates to develop those policies are available from TIADA through its on-demand Safeguards Qualified Individuals Course, which runs just $75. Those policies are a written Dealership Privacy Policy and Information Security Standards, an employee agreement to comply with policies and information security standards (which may also be incorporated into your employee hand book), and a Vendor agreement. You should add to those templates based on your internal practices. The one thing you should not do is just go out and buy a generic policy without ensuring your policies match your businesses prac tices because the FTC was clear in its recent settlement with Passport Automotive Group that “a document that looks nice in a file folder won’t paper over illegal practices.”

by Earl Cooke TIADA DIRECTOR OF COMPLIANCE AND BUSINESS DEVELOPMENT

Additionally, an unfollowed policy not required by law will create an obligation for you that is detrimental to you in a lawsuit. With that in mind, TIADA drafted these poli cies only to incorporate what every dealer must do. It is recommended that you add to these templates to create a more robust policy depending on your size. A great free resource to add to these sample policies by incorporating internal practices is https://frsecure.com/resources/. Also, take this time to consider updating your internal practices to be more robust in areas that make sense.

Your dealership must designate a single quali fied individual to oversee the program. The Qualified Individual can be an employee of your dealership or can work for an affiliate or service provider. The person doesn’t need a particular degree or title. What matters is real-world know how suited to your circumstances. Ask yourself these two simple questions to help determine whom you should make your qualified individual:

Is this the person I would want to oversee the protec tion of my own personal information?

Is this the person I would want to help my business in the event of a breach?

The FTC recognizes that the Qualified Individual se lected by a small business will likely have a background dif ferent from someone running a large corporation’s complex system. If your company brings in a service provider to im plement and supervise your program, don’t think you are off the hook because the FTC has already stated that “the buck still stops with you. It’s your company’s responsibility to designate a senior employee to supervise that person.”

You need a process for ensuring software is updated, a process to learn of new & known security risks, and a way to manage passwords. You should make sure to set updates on software to update automatically. Learning new se curity risks is easy. One way you can do this is to subscribe for free to the Cybersecurity and Infrastructure Security Agency, which will provide you with email updates on security risks as they are discovered. Passwords should be long and strong. According to the FTC, “that means at least 12 characters.

Making a password longer is generally the easiest way to make it stronger. Consider using a passphrase of random words to make your password more memorable, but avoid using common words or phrases. If your service does not allow long passwords, you can make your password stron ger by mixing uppercase and lowercase letters, numbers, and symbols.” You should consider using a password man ager. One password manager is Microsoft Edge, a free ap plication for Windows 10, but numerous others are available for free or at little cost. Just make sure to use a strong pass word to secure the information in your password manager.

A process for ensuring consumer information is encrypted at rest and in transit. Encrypt sensitive in formation that you send to third parties over public net works (like the internet) and encrypt sensitive informa tion stored on your computer network, laptops, or por table storage devices used by your employees. Consider also encrypting email transmissions within your business. Don’t forget to consider any information your employees hold on their smartphones or other devices they may use in addition to devices owned by your dealership. Strong encryption is built into modern versions of the Windows and OS X operating systems, and it’s also available for some Linux distributions. Both Microsoft and Apple offer a guide on how to go about ensuring this is enabled.

The following policies and procedures should be developed, and if you hold information on more than 5,000 consumers, they must be written:

A security risk assessment, which, more simply put, is just taking time to consider where information is stored and possible breaches of that information. Let’s face it; you can’t formulate an effective information security program until you know what information you have and where it’s stored. After completing that inventory, conduct an as sessment to determine foreseeable risks and threats — in ternal and external — to the security, confidentiality, and integrity of customer information. Among other things, your risk assessment must include criteria for evaluating those risks and threats. Think through how customer in formation could be disclosed without authorization, mis used, altered, or destroyed. The risks to information con stantly morph and mutate, so the Safeguards Rule requires you to conduct periodic reassessments in light of changes to your operations or the emergence of new threats.

An Incident Response Plan, which is included in TIADA's Qualified Individual Safeguard. If you want more details on what to do in a data breach, please consult the November issue of Texas Dealer because Anne Marie Lee-Edwards, who used to help large companies when they experienced data breaches, is now general counsel for AutoSavvy and produced a great article in that issue to help dealers.

Implement multi-factor authentication. The Rule requires at least two authentication factors: a knowledge factor (for example, a password), a possession factor (for example, a token), and an inherence factor (for example, biometric characteristics). The only exception will be if

I have relied on AutoAction software to run my BHPH dealership for the better part of 15 years. I didn't understand just how important of an asset AutoAction was until I received a mandatory audit by the, OCCC. When the auditor sat down in front of me, the first thing I was asked was, "What dealer management software are you using?", my response, "AutoAction", the auditor said, "Good, you won't have any problems then." And you know what, I didn't! AutoAction is an integral part of my team and will be so long as I am in the used car industry.

your Qualified Individual has approved in writing the use of another equivalent form of secure access controls. One method is by setting up multi-factor authentication when the computer is first accessed. While there are better methods of doing this than setting it up for the computer, such as requiring it for every program, those methods are more costly and appropriate mainly for larger deal ers. Microsoft Azure is a free/low-cost option for meeting this requirement that is easy to implement. You can learn more about that product at https://azure.microsoft.com/.

Perform Safeguards Security Awareness and Training. You can do training in-house or outsource to a third party. When TIADA first saw this requirement, we recognized that many dealers do not have the expertise or time to do in-house training, so we started working on an on-demand option for dealers. For more information on our course offerings, you should see page 18. The courses allow you to pause and pick up where you left off. The Qualified Individual course takes about an hour to com plete, and the course for all other employees takes about 30 minutes. The training requirement is ongoing, so you should take the course at least once a year.

Secure Data Destruction, including disposing of customer information in physical and electronic forms. Remember to consider the data on vehicles and that which is stored in the cloud, as this is often overlooked. Remember that the rule requires the deletion of customer information two years after the last time the information is used in connection with providing a product or service to the customer unless the information is required for a legitimate business purpose. If you need help figuring out how long to keep the information, please reach out to TIADA or visit the blog section of our website and look at articles around the first of the year because every year, we publish a list of how long you must keep information.

One area that is sometimes not considered is customer information maintained in vehicles. There is some de bate within the industry about whether or not a dealer is required to wipe data from vehicles. Still, when draft ing compliance programs, the best practice is to comply with questionable requirements when unsure if you can do so without too much burden to your operation. If you decide you can comply with this, clear information from your customer’s trade-in vehicle, dealership’s loaners, and repossessed vehicles. Before selling a vehicle or al lowing another to use it, wipe data, including unpairing all Bluetooth devices, resetting the garage door opener, resetting telematics services, and logging out of cloud ac counts. Remind customers to clear connections between their devices and the vehicle. The manufacturer’s owner manual should provide the necessary information to clear or wipe data. The vehicle may have a factory reset option that returns the settings to their original state. Alternatively, some services will provide step-by-step in structions and certification that the information has been

cleared instead of using the owner's manual. Finally, no matter what you decide to do with information on vehi cles, you may want to have the customer sign a statement saying they understand it is their responsibility to wipe the data from the vehicle involved.

Regularly monitor and test the effectiveness of your safeguards. Test your procedures for detecting actual and attempted attacks. For information systems, testing can be accomplished through continuous moni toring of your system. If you don't implement that, you must conduct annual penetration testing and vulner ability assessments, including system-wide scans every six months designed to test for publicly-known security vulnerabilities. In addition, test whenever there are mate rial changes to your operations or business arrangements and whenever there are circumstances you know or have reason to know that may have a material impact on your information security program. Information on vulner ability testing and how to select a provider was provided by the Senior Architect at MCMC in our October issue of Texas Dealer. This is one area in which finding a low-cost solution takes work, as it requires hiring a professional.

Establish a system to ensure vendor compliance with their requirements to protect the data you share with them. You should send a questionnaire to vendors and review their controls. Make sure your con tract indemnifies you from any data breach due to the vendor. Develop a tracking mechanism that lists all ven dors, contractors, or subcontractors and identifies those that have access to business/confidential, sensitive, and protected information. Depending on your size, this can be as simple as an excel spreadsheet with the informa tion and is regularly updated.

You should send your vendors a questionnaire to help evaluate their compliance with their contractual obliga tions to you. There are several free options for creating your own questionnaire. Checklists are available from Security Scorecard and Content Snare for free and nu merous other resources. You can use those checklists to develop one for yourself quickly.

You need to make sure you learn of any data breaches from vendors. There are several ways to do this, and a combination might be best. One is to monitor websites such as the Texas AG’s website for companies that ex perienced data breaches. You should also contractually require your vendors to notify you of any data breaches.

Overall, the Safeguards Rule requires a lot of effort. I know there are many like me that started off with little to no technical knowledge that find themselves having to implement very technology-driven requirements. However, there are numerous resources out there to help you; as always, TIADA is here to help you if you need it. Don’t let yourself get overwhelmed, and remem ber Desmond Tutu's words of wisdom: “there is only one way to eat an elephant: a bite at a time.”

Answers to the 2022 Dealer Proficiency Quiz

(Questions found on pg. 11)

1. (b). The Texas Tax Code provides that deferred sales tax is lost and all sales tax becomes due when the title is not transferred 60 days after a retail sale. (May, 2022; Deferred Sales Tax Law Approaches 30)

2. True. Even though Vehicle Titles and Registrations (VTR) will assume that the original title is lost or destroyed when it issues a CCO, the law of ownership provides that a title document obtained by fraud or forgery does not signify ownership that is superior to the true owner. (November, 2022; Does the State Stand Behind Texas Title Certificates?)

3. True. Standard language in motor vehicle retail installment contracts allows a lien holder to choose to apply insurance proceeds on a total loss to pay off the indebtedness. Any amount over the pay-off belongs to the debtor. (April, 2022; Car Creditors’ Rights in Total-Loss Insurance Claims)

4. (c). Using customer’s personal information for marketing purposes triggers the obligation to give an “opt-out” opportunity. The others fall under permissible exceptions. (February, 2022: A Review of Privacy Rule Requirements for Car Creditors: Including the All-Important Exceptions)

5. (c). The key triggering event for the SCRA to apply is the debtor going on active-duty status after entering into the installment contract. (January, 2022; Military Enlistments Raise Concerns Over Serviceperson’s Civil Relief Act)

6. (a). Both items are taxable according to the State Comptroller. (September, 2022; Dealer Questions About Sales Tax on GPS Units and Air-Time Fees)

7. A valid mechanic’s lien is superior to a prior recorded security interest. The key word here is “valid” and there are a number of defenses and procedural objections than can be made to establish whether a claimed

lien is or is not valid. (February, 2016; Fraudulent Mechanic’s Lien Claims Still Concern Car Creditors)

8. (d). All of the listed areas of sharing are exempted from the Gramm-LeachBliley Act and the Federal Trade Commission’s Privacy Rule. (February, 2022; A Review of Privacy Rule Requirements for Car Creditors: Including the All-Important Exceptions)

9. False. Only new cars are required by federal law to have operable airbags at the time of sale. (July, 2022; Airbag Safety and Recall Issues Raise Liability Concerns for Dealer)

10. False. The creditor is still subject to the bankruptcy stay (assuming that the creditor still has possession of the vehicle) and can’t engage in any collection activities, demand payment, or dispose of the vehicle. However, the creditor can, under the Fulton ruling, retain possession and refuse to return the vehicle until ordered to do so by the court. The rule announced in the Fulton case is that the mere retention of repossessed bankruptcyestate property after the subsequent filing of a bankruptcy petition does not violate the bankruptcy stay provision. (June, 2022; Bankruptcy Filed After Repossession: New Supreme Court Case Offers Guidance)

BONUS

11) (d). (January 2, 2022; How Long Am I Required to Keep These Records?)

12) (b). (February 14, 2022; New Temp Tag Rules: How Will It Impact Dealers?)

13) True. (April 5, 2022; Bad History Report, Clean Title...Now What?)

14) (c). (July 5, 2022; Dealers Facing Delays, Must Soon Submit Fingerprints)

15) False. (August 2, 2022; How to Handle Personal Property During Repossessions)

behind the wheel

2022, Before You Go

by Jeff Martin TIADA EXECUTIVE DIRECTOR

Our team is dedicated to representing your interest as an independent automobile dealer in Texas. We have high expectations, and we are our toughest critics. But every year, I like to close out the last twelve months by celebrating our team and the work they do by posting a few of your comments (and a few from out of state).

“My hat is off to you for the work environment that you have created for everyone. Our staff is awesome. …and to whoever else had a hand in this newsletter. Great newsletter with valuable info. Keep up the good work, guys!”

—Greg Zak, Dixon Motor Cars – Houston

“I’m sure you are relieved that the conference is over. I thought the event was fantastic, and we were proud to have a number of our team members there to witness it in person. TIADA is a leader in the industry. Please pass along to your team that they did an amazing job, and the hard work did not go unnoticed. We appreciate all they do!”

— Chad Lancaster, Chacon Auto – Dallas

“Oooh, these [digital newsletters] are great to share!”

Kip Niles, Arlington Motor Sports – Arlington

“Just wanted to drop a note and say thank you. The conference was the best ever. The education was my favorite part I really got some great nuggets. I am so excited about INDEPAC and the success of the auction. I left my hat from the gracious Senator Alvarado in the room we met in. if you can, please send it sometime when you are rested from the conference. Again, thanks to you all, job well done.”

— April Hanson, Coast to Coast – Houston

“I always love reading your magazine. All articles are written well, and as if speaking directly to each dealer.”

Terry Myers, Florida Independent Automobile Dealers Association – Tallahassee, FLA

“I am the one who needs to be so very thankful this time. TIADA honored me tremendously with the Presidential Award this year. When I tell you it left me speechless, I am not exaggerating one bit. I did not have an opportunity to think about what to say. Hopefully, I did not come across as scatterbrained. I am looking at the beautiful award as I am typing this. It has a place of honor next to my desk. It will be a constant reminder that what I am trying to accomplish is appreciated. I have worked hard, put in so many overtime hours to keep up with my cases, put in extra time linking the right agency with the right dealership across the state, and just normal work to be an advocate for the dealership community. This makes it all worthwhile! I was very happy to attend this year and loved seeing all my TIADA family.”

— Sgt Schlosser, Houston Police Department – Houston

“Thank you for stepping in to help with this issue. We did receive the attached letter this morning assuring us that our license, although expired, is in full force and effect!

I am making sure our buyers and anyone that drives with our dealer plates have a copy of this. Impressive that you called them on our behalf! Thanks for being a watchdog for the dealers!”

Rome Colburn, Auto Class Direct – Plano

—

“Thank you so much for having me at your convention; it was a terrific experience! You blew me away with your convention. Everything was top-notch, and truly just an amazing gathering filled with great information and camaraderie.”

— Dana Bress, Galaxy Auto Place – West Seneca, NY “My wife Melissa and I enjoyed your conference. We were amazed at how integrated and large it was. A ton of information and a true spectacle!”

—John Lindberg, Auto Warehouse – Colorado

And to you, thank you for letting us represent your interest. We love what we do and look forward to doing even better in 2023.