Texas Dealer June 2020 by Texas Independent Auto Dealers Association

Have the

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Front-line Phones changed forever?

In This Issue: – Michael W. Dunagan on Prior Frame Damage Announcements – Time to Give Your Portfolio an MRI – Stop Fearing the Future and Learn to Adapt – Maximize on Wholesales

2020 TIADA Board of Directors PRESIDENT Robert Beck/Stop N’ Drive Motors 711 N. General McMullen Dr. San Antonio, TX 78228 PRESIDENT ELECT Mark Jones/Mike Carlson Motor Company 264 Exchange Burleson, TX 76028 CHAIRMAN OF THE BOARD Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017 SECRETARY Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 TREASURER Eddie Hale/Neighborhood Autos 1717 US 287 Decatur, TX 76234 ICE PRESIDENT, WEST TEXAS V (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 ICE PRESIDENT, FORT WORTH V (REGION 2) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas, TX 75218 ICE PRESIDENT, DALLAS V (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 ICE PRESIDENT, HOUSTON V (REGION 4) Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 ICE PRESIDENT, CENTRAL TEXAS V (REGION 5) Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 ICE PRESIDENT, SOUTH TEXAS V (REGION 6) Jose Engler/Irving Motor Corp 211 Braniff Dr. San Antonio, TX 78216 ICE PRESIDENT AT LARGE V Robert Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 ICE PRESIDENT AT LARGE V Armando Villarreal/McAllen Auto Sales 4215 S. 23rd Street McAllen, TX 78503

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

Vo l u m e X X / I s s u e 6 / J u n e 2 0 2 0

TexasDealer contents

4 Officers’ Message

by Ryan Winkelmann, TIADA Secretary

7 Membership Corner 7 Local Chapters 8 On The Cover: Have the Front-line Phones Changed Forever? The New Customer Service by TIADA Staff

12 Car Salespeople Need to Stop Fearing the Future and Learn to Adapt by Tim Kintz

15 Now's the Best Time to Give Your Portfolio an MRI by Ken Shilson

17 Legal Corner: Carefully Assess Risks of Selling Cars with Frame/Unibody Damage Announcements by Michael W. Dunagan

20 TIADA Auction Directory 2020 24 TIADA Conference and Expo 30 TIADA Member Application 32 New Members 33 How to Maximize on Digital Wholesales – The SparkNotes Version by Joe Neiman

36 Letters From TxDMV and TACA by TIADA Staff

43 T hree Sure-Fire Ways to Know if You’re Neglecting Your Dealership’s Accounting by Kevin Roy

45 Behind the Wheel by Jeff Martin

Did You Know?TIADA sends a weekly email

to its members every Thursday with information on industry news, notices about regulation, answers to compliance questions and more. If you are not receiving the email contact the association at info@txiada.org so we can make sure we’ve got you covered. Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

Editor: Teresa Orkun

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

officers’ message by Ryan

Winkelmann

Time to Assess Your Security Risks

ecently I took a proactive approach to improve certain procedures within my business that didn’t require immediate attention but are extremely important just the same. The security and safety of my business and employees started crossing my mind when millions of Americans started losing their jobs due to the COVID-19 pandemic. This, in combination with trying to keep my business afloat, and all employees employed, proved to be challenging, as I’m sure anyone reading this article can personally attest. I felt that the time was right to evaluate our potential vulnerabilities to crime or theft after the first stay-home, stay-safe order was issued. During the first week of that order, I arrived at my dealership as if it were any normal day, except with zero employees present. With incoming phone calls being forwarded to my sales manager, and all collection activity being handled outside of my dealership, I had plenty of uninterrupted time to plan how the uncertain and upcoming weeks ahead would be managed. With a feeling that an increase in crime was on the horizon, I prepared a meeting to cover some new procedures I had developed that would be implemented the following week when some employees were scheduled to return. At the meeting, we discussed various new

BJ’s Autohaus (Houston) TIADA SECRETARY

plans for added security measures, health and safety strategies, and general policies moving forward in conducting business in new ways. In addition to that, I ordered two large monitors for full-time viewing of my security cameras. One for my office, and one for the front lobby where anyone walking inside can see it in plain sight. During the first week, we even decided to keep all face-to-face dealings with customers outside in a makeshift tented area with tables and chairs so as to not have anyone inside the office due to us being understaffed. All employees even locked the front door behind them whenever they stepped outside for any amount of time. I mean, what’s more secure than that, right? Wrong. I think George Herbert wrote it spot-on in 1640 with “To him that will, ways are not wanting.” This phrase was later altered to say, “Where there’s a will there’s a way.” On week two of the shut down, our security was breached. I had the smallest number of essential employees on site to run my dealership. Along my side were one mechanic, one manager, and one porter. On Saturday of that week, while I was picking up lunch for the office, a man driving a semi-new SUV with darkly tinted windows pulled into my dealership, and parked at the furthest end of our lot, just near our mechanic shop. The man stepped out and asked to see a few vehicles at (cont’d on pg. 6)

No matter how big or small your operations, security should always be top priority. As we modify old procedures and adapt to new ones, don’t forget, the criminals do too. 4

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the furthest other end of the lot. My manager locked the door behind her, and after spending about five minutes with the customer, he asked to hear the engine on the vehicle he was most interested in. This, of course, also coming with the approval of “his wife” who he claimed was on the other end of the phone headset he was wearing so they could make the purchase decision together. Several times during the discussions, he reached into his pocket and pulled out a huge roll of cash, tempting my manager to make him a great cash-deal if he decided to buy. When my manager returned with the keys, he asked if we had a mechanic on site, and if so, that he would like to speak to him since he didn’t really know much about cars. My manager and mechanic are now both assisting the man and patiently waiting for him to finish several side conversations he was having over his headset. As security cameras would later reveal, one of the rear doors opened up from the SUV the customer drove in, and another man exited the vehicle, walked into our service area, right past my porter who was vacuuming a car, and proceeded directly through the shop and into our office through the back door. Watching footage of this criminal go through every office, searching through desks drawers, looking for

anything of value was painful. He actually had 2-3 minutes of uninterrupted scavenging before my manager returned to the office while my mechanic was still fielding multiple questions from the customer. The thief inside the office ducked into the employee-only restroom. My manager tried opening the door, and to her surprise it was locked. She called out for who was inside, and the door opened with the man inside also wearing a headset and apologizing for not having asked permission to use the facility. Not knowing where he came from, since the front door was locked, she began to put two and two together. As I’m sure you can predict by now, the “customer” decided not to buy, and both criminals drove off shortly thereafter. My security cameras could not zoom in close enough to get a good reading on their vehicle’s license plate, but I’m willing to bet the SUV was most likely stolen as well. We are still unsure if they actually stole anything, since nothing really came up missing that we know of. I wanted to share this experience in hopes that you might assess your own security risks during this difficult time and possibly limited staffing. No matter how big or small your operations, security should always be top priority. As we modify old procedures and adapt to new ones, don’t forget, the criminals do too.

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"With the regulatory changes, sales fluctuations, and auctions changing, it’s amazing what we as small business owners can endure.” Chris Templin Auto Land

2020

Goal for2020 1303

1300 1250 1150 1100

Local Chapters CORPUS CHRISTI G.R. Moore The Car Shack (dates announced at www.txiada.org)

ber s h i em

membership corner

Currently 1067

1000 900

EL PASO Cesar Stark S & S Motors Meeting – 3rd Friday (Monthly)

FORT WORTH Chris Templin Auto Land Meeting – 4th Thursday of Jan–May and Sep–Oct

HOUSTON Rudy Roudbari Sarco Enterprise Meeting – 2nd Tuesday (Monthly)

e couldn’t have said it better ourselves, Chris. The staff at TIADA has been blown away by the resilience members have shown in response to COVID-19. Since March, TIADA has received well over 500 questions from members who are working to stay compliant amid a changing landscape. And not only that. Membership has strengthened. As a matter of fact, membership has grown to 1067 members as of the printing date of this issue. So what does this mean? On the TIADA strength test, that translates to 30 new members (a 3% increase) and more importantly, it means the association continues to strengthen despite business closures and other challenges dealers have and continue to face during the pandemic. All that said, we have had the opportunity to hear from some members by email or phone on how things are going with your businesses, but we would like to hear from more of you by inviting you to participate in a brief survey. If you have a few minutes to participate, you can complete the anonymous survey by visiting:

SAN ANTONIO Jose Engler Irving Motors Corp (dates announced at www.txiada.org)

VICTORIA Dennis Schroller Victoria Autos Direct Meeting – 1st Monday (Monthly)

www.surveymonkey.com/r/TIADAdealersurvey

Track TIADA’s Latest Progress @TXIADA #2020Goals June 2020

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"...Now just a couple of procedural steps I will need to cover with you. Due to the recent pandemic it is required that only the applicant(s) come into the building. If you have more people with you, they are welcome, but we do have to keep the number of people in the building limited to applicants only. Also, when arriving we will ask you to kindly wash your hands before we sit and begin the final vehicle selection process..."

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on the cover by TIADA Staff

Have the

Front-line Phones changed forever? The New Customer Service Good morning—It’s a great day at ABC Motors. Who do I have the pleasure of speaking with today? …OK, great. It sounds like we have just what you are looking for. We have two options to help you get final approval. One is to complete an online application before coming to our dealership or, if you prefer, you can do what most people are doing and schedule an in-person appointment at our dealership. Would you like to come by today or tomorrow? …Great, will that be in the morning or afternoon?

ome version of this phone greeting should look familiar to every auto dealer in the country. Or maybe it looked familiar about four months ago. Remember way back in the old days, when things were different? You old-timers will remember: we call it February. Back then, you or your business development center (BDC) either worked from a script

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or had your message down pat. You knew exactly what to say when the phone rang, and everyone knew the ultimate goal. Start with a friendly greeting, apply a little initial screening, start the funnel process, and set the customer up with an in-person meeting at the dealership. That was the goal—to get the customer in the door. Once the customer walked in the door, the BDC had done its job. And if you don’t have a fancy BDC, even better. When that customer walked in your dealership the same friendly voice he or she heard on the phone would be at the dealership ready to greet the potential customer and pick up the in-person conversation right where you had left off with the phone conversation. Now let’s see, the next step might have been to take a look at the vehicle that caught the customer’s eye and discuss transportation needs. If you did not discuss it on the phone, you would need to discuss financing and that would come along with some paperwork. But by that time

you had already won the battle, getting the customer in the door. That was the goal!

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By mid-March all that had changed. Various counties around the state started to issue local stayat-home orders. Many of these orders included shutting down dealerships; others allowed sales by appointment only. Some counties ordered vehicles be sold online and delivered to the customer. And all required some sort of social distancing that ushered in a new way of making and taking calls at your dealership. In just four weeks, most dealers in Texas have been forced to change the way they do business. David Misra of Auto Concepts in Houston says when they get a call now, they explain to the customer that for their safety, the customer will need to complete the credit application online to reduce the person-toperson contact. They also talk with the customer about the details of the vehicle they found online. Just four months ago, the theory was to get the customer in the dealership so you, or someone on your sales team, could shake the customer’s hand, discuss their needs, and explain the various features of the vehicles on your lot. You might even encourage them to bring their spouse or other family members. But the “vehicle walk-around” has changed. Vicki Davis with A-OK Auto Sales in Porter says they will even take a video of the vehicle and email it to the customer if they want to see more photos or videos than what she has online. “We provide as 9

much information as we can over the phone,” says Davis. Handling paperwork has also changed. “Our BDC will work with the customer to complete the credit application online now,” said Greg Reine from Auto Liquidators in Dallas. “We have completely changed the way we train our BDC team. We didn’t really talk about credit that much before and now we approve or deny instantly over the phone. This helps eliminate some of the unnecessary traffic and honestly

has probably made us a little more efficient.” Trevino’s Auto Mart in McAllen has been pushing for more online credit applications since he took the reins of the dealership about four years ago and this has just sped up the process. “A lot of our customers would push back in the past because they wanted the person-to-person contact, but now it’s easier for us to emphasize this is for their safety,” said Mike Trevino. Once someone is approved, everything else is done

online via email or over the phone. The customer only shows up at the dealership for the final signatures and to pick up the car. Having a full credit application a customer can complete online is not an easy task admits Dave Gowins of JD Byrider in San Antonio. “We are in the process of upgrading so a full application can be completed online.” Dave stressed that his employees have had a crash course over the last few weeks on how to help customers complete applications and get full approval over the phone. This is something most dealers used to do in person.

All the dealers we spoke with have set up an appointment process, but even that has changed. Today, part of your communication must include the safety measures and process the customer must agree to before showing up to the dealership. “We tell them in advance that only two members max can come inside when they arrive and that we will provide masks if they don’t have one,” Misra said. Communicating this to customers on the front end minimizes some of the frustration and confusion when they arrive. At A-OK, some customers are unable to complete an application online; in this case, as Davis explains, the application is e-mailed to them or provided on a clipboard when they arrive. But they have to complete the application outside. “That is new for us and we are trying to do our best to communicate that to our customers before they arrive so they will not be upset that they can’t sit inside to complete the credit application.” They also do not allow test drives unless the customer has been approved. “This is something we emphasize over the phone. In 10

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the past the conversation was more about, ‘come down and test drive one today’,” added Davis. Reine had a little different spin on test drives. “In the beginning, our county didn’t allow for test drives, and I still don’t know how you would do one and practice the recommended social distancing guidelines of staying six feet apart, so we aren’t doing any test drives until the purchase is complete.” This may sound odd with a used vehicle, but it has worked for Auto Liquidators and Reine. “We allow them to change their mind after the sale, but we haven’t had one come back yet.” Gowins will allow test drives, but by appointment only and it is clearly communicated by his sales team. There is no waiting inside the dealership. If customers arrive early, they are encouraged to stay in their vehicle. Showing up to kick tires has changed, and maybe forever. The window shopping is all done online. The dealers we talked to said most customers understand the situation and the majority of those decisions are based on the restrictions and recommendations of their particular county, but all dealers emphasized they have had to adjust their communication on the front end. That initial phone call has always been very important, but it can’t be just about getting the customer in the door. Dealers have had to retrain their BDC or in many cases themselves when it comes to communicating with customers and selling vehicles over the phone and online.

The new script looks a lot more like this: June 2020

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Good morning—It’s a great day at ABC Motors. Who do I have the pleasure of speaking with today? …Ok great, it sounds like we have just what you are looking for. Will you be providing your own financing, or would you like us to assist you with financing? …For the safety of our customers and employees, we are requiring credit applications and approval be obtained prior to arriving at the dealership. Don’t worry we have made that process very quick and easy. I can email you a link to your own private application. You can complete everything right from your phone. …Congratulations! We have you set up for [time and date] to come pick up your vehicle. Now just a couple of procedural steps I will need to cover with you. Due to the recent pandemic it is required that only the applicant(s) come into the building. If you have more people with you, they are welcome, but we do have to keep the number of people in the building limited to applicants only. Also, when arriving we will ask you to kindly wash your hands before we sit and begin the final vehicle selection process. Again, we are attempting to make this as seamless and hassle-free as possible all while keeping you and our employees safe. We appreciate your understanding. If you don’t have any other questions for me, I will immediately text or send you the details of your appointment to your email.

Challenging

times

require

a creative

GPS solution

And, although there is not a definitive right or wrong with the approach you may utilize, it is 100% safe to say more adjustments will be necessary. Nothing new to our business for sure! 11

feature

Car Salespeople Need to Stop Fearing the Future and Learn to Adapt

oday’s consumers are a click away from not only exploring but actually buying a car from anyone in the world with just an internet browser and a smartphone. That doesn’t even include the nontraditional companies that are entering our marketplace. Take Carvana, for example. Their advertised value is that there is no salesperson — for you to deal with. Just a rotating tower of cars that will drop your choice to you like a sandwich out of a vending machine. If that’s not direct-to-consumer enough, Amazon is rumored to be working on getting their foot in the door too. The move toward digital is enough to scare any faceto-face car salesperson, but as I’ll explain in this article, you’re better off using your humanity to your advantage and adapting to the future of car sales rather than fearing it.

Featured Presenter

by Tim Kintz

President, The Kintz Group

Customers Hate Dealing with Amateurs, Not Professionals

How worried are we in the car sales world, really, that kiosks are going to sell cars one day? How much is click-and-buy really going to take from us? I can’t say for sure, but I can tell you that you’re missing the point if you try to use those nontraditional disruptors, like Carvana, as examples and excuses to not even try to negotiate. It’s not the negotiation process that customers want to avoid — they hate dealing with the amateur salesperson and their long sales process. Right now, the overwhelming majority of car sales still happen belly-to-belly, face-to-face, person-toperson. By and large, you’re still competing with other human salespeople, not an algorithm. The only way the computers win in the future is if we give up on good skills right here in the present. If you want to guarantee future success in sales, getting your closing and negotiating skills down is your very first step. Give customers an exceptional experience that they can enjoy, that makes them feel like they’ve won and makes them want to come back for more. Build a relationship on trust — one where you both value your role because of the way you serve the customer. Stop worrying about what the future might hold for your career or your industry and start focusing on how you can make every deal as good as it can possibly be right now. That’s what will carry us into the future.

Get Your Customers Emotionally Invested in the Sale

All sales, even car sales, have an emotional component, and to give your customers an exceptional buying experience, you need to tap into it. To illustrate the connection between sales and emotions as clearly as possible, let’s look at the example of home purchases. Think about why you might put an offer in on a house. It’s probably because you can visualize your family living there. You walk into one room and decide that it will be your daughter’s, and she asks if she can paint (cont’d on pg. 14) 12

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it purple and hang her pictures on the walls. You see where your home office will go, or where the TV fits in the living room. Before you ever put an offer in, you’ve taken mental ownership of the house. Now the haggling happens over a lower price, but also closing costs, new paint, and carpet allowances. Do you really care about the paint or the carpet allowance? Probably not. You just want to get a good deal on the house you already want to own. All that’s left is

to figure out the best way to make the purchase happen. This is the kind of negotiation that we enjoy—it makes us feel good about the experience and even better about the purchase itself. So why does it feel like everyone hates to negotiate? If we look at a car deal the same way we look at real estate, it becomes clear that we’re doing things backwards. We try to get people to financially purchase the car before they’ve taken mental ownership.

We talk about price before our customers are emotionally invested. They don’t see how they can put their kids’ gear in the back, or how they could have used the new back-up camera technology the other day, or how hitch assist would help with launching their boat. By approaching customer interactions with emotions first — something automated systems can never do—you set yourself and the deal up for success.

Embrace Change to Survive

Bringing emotions into sales and making customer interactions personal represents a change, but a necessary one if car salespeople are to compete with technology in the future. But for now, technology doesn’t take buyers from us and technology doesn’t sell cars. People sell cars. And sometimes, people who have the skills will use technology to sell those cars. At the end of the day, we’re in the people business. We need to be careful to remember that and use emotions to our advantage, or these fears about vending machines, kiosks, and Amazon taking over the car business might just come true.

Tim Kintz will be presenting at the TIADA Conference and Expo taking place from August 16-18 at the JW Marriott Hill Country Resort in San Antonio. This article was adapted from Tim’s book Frictionless. You can find more advice on succeeding in sales, at FrictionlessNegotiating.com.

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feature

Now’s the Best Time to Give Your Portfolio an MRI

HPH dealers began this year with considerable optimism. Customer demand for affordable used vehicles was high, interest rates were low, employment was strong and reduced subprime competition were all the reasons for this optimism! Unfortunately, along came the COVID-19 Pandemic in March which spoiled the promising start to the new year. With that history in the rear-view mirror, what should operators do to emerge successfully from the Pandemic disaster? The best answer: “look under the hood of your portfolio now” so you don’t repeat your bad debt losses tomorrow. Availability of the capital needed to regain market share will likely constrain future growth for several months. Therefore, operators must generate more internal cash flow and “make more from less”. This means giving your portfolio a thorough MRI to identify what is working best and what isn’t working at all! Simply, operators must learn from their past losses instead of repeating them. Future success will be determined by “keeping them sold” and customers paying. Cash and cash flow will provide “the gas” which fuels your operations. In these circumstances, operators are encouraged to perform a “deep dive” review of their subprime portfolio

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Featured Presenter by Kenneth B. Shilson, CPA President Subprime Analytics and NABD

(in essence, a financial MRI) which should include the following analysis:

Static pool and loss/liquidation (the inverse of CRR) calculations which compute performance statistics tied to the periods of origination. This allows operators to determine whether losses are increasing or decreasing and to identify important trends. In addition, it is also important to compare the pace of losses between different periods of each year. If you are not familiar with these metrics, visit the videos on the home page of my website at www.subanalytics.com for a brief tutorial.

Loss rate analysis should also include gross loss (before recoveries), net loss (after recoveries) and default rate calculations which correlate to their dates of origination. In this type of analysis, the entire portfolio is segregated by origination (usually monthly) intervals so that loss trends can be identified and compared. When your loss metrics are compared with your regional and national peers from our $24 billion database, it puts your own performance in perspective. 15

Recovery rates must be calculated to ascertain whether yields on repos and other recovery techniques are working successfully. Improving recovery rates will help mitigate net losses even when default rates remain the same or increase. Operators must maximize their recovery proceeds in the current environment. This starts by identifying what your average recovery rates are currently.

A comparison should be made of bad debt losses with deals that performed to identify underwriting differences and areas where future underwriting, collateral or business model changes are needed. This comparison should focus on all your business model elements such as the vehicle cost, sales price, markup, down payment, payment amount, loan term and all the other components of each deal. There are only three (3) key elements to every buy here, pay here deal: 1) the customer, 2) the vehicle, and 3) the deal structure. However, all three elements are vitally important to repayment success or failure. In order to maximize profits and cash flow, operators must avoid trial and error mistakes. Such mistakes cost millions of dollars in losses! Alternatively, use portfolio analysis to validate the most successful underwriting strategy before additional bad debt losses are incurred.

Some operators believe that credit scoring systems are the key to successful underwriting. However, credit scoring only assures consistency and not that the current credit decisions will be successful. Only when credit scores are directly correlated to portfolio loss statistics can the results be accurately validated. Individual portfolios perform differently, and custom credit scoring models are needed to produce predictable results based upon your own market data and business model. This requires a detailed analysis of your existing portfolio performance to identify the important customer attributes to include in the scorecard. Computerized analysis prepared from a data extract provided by your software provider is the most efficient and cost-effective way to perform all the above referenced analysis. The use of data mining technology enables the analysis to be done without requiring any input or data entry by your personnel. The cost is minimal and the resultant reduction in losses and increased customer repayments directly improves cash flow and profitability! In summary, compiling bad debt losses should be the start of portfolio analysis, not the end! Without a “deeper dive” to identify the causes, underwriting mistakes will likely be repeated and the future will be no better than the past. Those who do not identify and learn from their past mistakes are destined to repeat them.

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“Now, more than ever, is the time for your Dealership to take control of your property insurance and be prepared for 2020!” “The only way a BHPH Dealer can be sure there is Insurance that protects his vehicle is with Collateral Protection Insurance!” Many of the most successful BHPH Dealers utilize the CP Insurance Associates Collateral Protection Program. Why don’t you? Call:

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legal corner

Carefully Assess Risks of Selling Cars with Frame/Unibody Damage Announcements Dealer Question: There are some fleet sellers who apparently put a frame/unibody damage announcement on all vehicles they run through auto auctions. Some of the vehicles have clearly not had prior damage, or have suffered only minor body damage. Are there any legal risks of buying and reselling vehicles that appear to have no frame damage, even though they carry a prior-damage announcement, if they are sold as-is? Response: There are a number of issues raised by the dealer’s question. The first is whether selling a vehicle “as is” removes or eliminates any risk of being sued by an unhappy purchaser.

he enactment of the Texas Deceptive Trade Practices Act (DTPA) many years ago had an immediate and dramatic effect on the relationship between sellers and buyers. Selling “as is” did, and still does, eliminate warranties. The DTPA, however, created a new cause of action for misrepresentation, among other things, that went beyond whether or not warranties existed or a breach of warranty had occurred. The new cause of action could be based on oral statements; did not require proof that the seller knew of the defect or condition complained of; and did not require proof that the alleged misrepresentation was made intentionally or knowingly. The new law also provided for the possibility of triple damages in certain situations and added attorney’s fees to damages a plaintiff

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could recover. In addition, the statute provided that any provision in a contract that tried to eliminate a DTPA action was void. So, while selling “as is” eliminates causes of action for breach of warranty, it does not and cannot have an effect on a buyer’s right to bring a claim for misrepresentation under the DTPA. The practice of automatically placing an announcement of frame/ unibody damage on vehicles is probably an attempt by institutional sellers (such as a banks, finance companies or lease/ rental companies, for example) to avoid future liability for damage that occurred to vehicles that the sellers may have no knowledge of. A business decision has apparently been made that it is better to devalue the fleet units by branding them than to face the risk of expensive litigation down the road if unknown damage is later detected. By making these disclosures, the companies are attempting to shield themselves from being sued by down-stream consumers or dealers. The Texas Court of Appeals in Dallas addressed some of the issues involved in selling a vehicle

by Michael

Dunagan

TIADA GENERAL COUNSEL

A business decision has apparently been made that it is better to devalue the fleet units by branding them than to face the risk of expensive litigation down the road if unknown damage is later detected. with prior frame/unibody damage. The facts of this case were that a woman purchased a used car from a dealer. The vehicle displayed the Federal Trade Commissionmandated Buyer’s Guide, upon which the dealer had checked the “AS IS – NO WARRANTY” option, which is followed by the preprinted sentences: “YOU WILL PAY OFF COSTS FOR ANY REPAIRS. The dealer assumes no responsibility for any repairs regardless of any oral statements about the vehicle.” 17

635 Fritz Dr. Ste 210 Coppell, TX 75019 469-637-0150

The buyer claimed she was not told about prior frame/ unibody damage, despite the fact that the dealer’s purchase documents from a wholesale auto auction clearly made such a disclosure. The buyer also claimed she was told by the salesperson that she could trade it in for a bigger car after paying on it for a year or so. Around a year later the buyer tried to trade the vehicle in at another dealership, but was told the vehicle had prior frame/unibody damage and that the dealership wouldn’t take it in trade. Suit was filed against the selling dealer alleging DTPA causes of action. The trial court, citing the “as is” language on the Buyer’s Guide, found for the seller. On appeal, the Court of Appeals reversed, finding that the “as is” clause did not eliminate the DTPA claims. The court held that the

A third way that buyers find out about prior frame/unibody damage declarations (accurate or not) is from solicitation letters from consumer attorneys who have obtained lists of vehicles sold at auction under prior damage announcements. language on the Buyer’s Guide referenced that the buyer would be responsible for repairs after the sale. Since this case did not involve repairs, the court found that the Buyer’s Guide language didn’t address the car’s true condition at the time of sale (the prior unibody damage). The opinion referenced the testimony of the buyer to the effect that she wouldn’t have bought the vehicle if she had known of the unibody damage. T e x a s

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Would the outcome of this case have been different if, as in the question posed by the dealer at the beginning of this article, there had actually not been prior frame/unibody damage and the auction announcement of prior damage was motivated by an overly cautious fleet seller? It may seem intuitive that the absence of any real damage would negate the necessity of disclosing prior damage if none existed. However, there are other implications of the DTPA that could come into play even if it’s shown that there was no prior damage. The first concern is that an unhappy buyer may decide to sue based on finding out about the auction announcement. While the seller may be able to prove that no actual damage existed, there will still be the cost of defending the suit and obtaining expert testimony to the actual condition of the vehicle. The fleet sellers who use automatic disclosures of prior damage obviously want to avoid such a situation. The next concern with selling a vehicle that is subject to a “prior frame/unibody damage” declaration, even if no such prior damage existed, is that the vehicle takes on a permanent “taint” from the mere existence of the declaration. If, for example, the buyer, like the woman in the case mentioned above, attempts to trade in the vehicle. There is a good chance that the damage announcement will be picked up at the time of the attempted trade and the new dealer will either reject the trade or devalue it substantially. Even if there was no prior damage, the impact of the existence of the announcement could give rise to a DTPA cause of action for misrepresentation. The same consequence would occur if, after the buyer has an accident in the vehicle, the insurance adjustor lowers the settlement offer because of the specter of prior damage. June 2020

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*A sample of a Used Car Condition disclosure can be found in the member-only section of the TIADA website.

A third way that buyers find out about prior frame/unibody damage declarations (accurate or not) is from solicitation letters from consumer attorneys who have obtained lists of vehicles sold at auction under prior damage announcements. These letters are then sent to current owners of vehicles advising of a potential cause of action against the seller if disclosure* had not been made at the time of purchase. 2-TLSAA Lubbock_TIADA ad.pdf

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 40 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions. 1

5/7/20

11:33 AM

CMY

TIADA Auction Directory 2020

Save thousands on buy or sell fees at these participating auctions! * VALID FOR SELL FEE ONLY AT INSURANCE AA LOCATIONS ** ONLINE AUCTION AVAILABLE

Abilene

IAA AUSTIN*

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

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

METRO AUTO AUCTION AUSTIN

$AVE : $200

Corpus Christi

IAA ABILENE*

CORPUS CHRISTI AUTO AUCTION

www.iaai.com 7700 US 277, Hawley, TX 79601 325.675.0699, Fax 325.675.5073 GM: Terrie Smith Thursday, 9:30 a.m.

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 : up to $200 Sell Fee

$AVE : $200

Amarillo

IAA CORPUS CHRISI*

IAA AMARILLO*

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.

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

Dallas-Ft. Worth Metroplex

Austin

ADESA DALLAS

ADESA AUSTIN

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

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

$AVE : $200

NEW

ALLIANCE AUTO AUCTION DALLAS

www.allianceautoauction.com 1550 CR 107, Hutto, TX 78634 737.300.6300 GM: Brad Wilson Wednesday, 9:45 a.m.

www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136, Fax 469.828.8225 GM: Chris Dean Wednesday, 1:30 p.m.

AMERICA’S AA AUSTIN / SAN ANTONIO

AMERICA’S AA DALLAS

$AVE : $200

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

$AVE : $200 20

$AVE : up to $200 Sell Fee

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

C.M. COMPANY AUCTIONS, INC.

ALLIANCE AUTO AUCTION AUSTIN

www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 GM: Geoffrey Rabb Tuesday, 9:00 a.m.

$AVE : $200

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: Joshua Boyd 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: Robert Brown 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

TEXAS LONE STAR AUTO AUCTION www.tlsaa.com

2205 Country Club Dr., Carrollton, TX 75006 214.483.3597, Fax 214.483.3814 GM: Patrick Stevens Tuesday, 1:00 p.m. / Thursday, 2:00 p.m. $AVE : $200

El Paso EL PASO INDEPENDENT AUTO AUCTION www.epiaa.com 7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 GM: Luke Pidgeon Wednesday, 10:00 a.m.

$AVE : $200

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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

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

$AVE : up to $200 Sell Fee

www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300, Fax 281.443.4433 GM: Christina Nieves Thursday, 9:00 a.m.

$AVE : up to $200 Sell Fee

MANHEIM HOUSTON

Harlingen/McAllen IAA MCALLEN*

www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393, Fax 956.464.8510 GM: Ydalia Sandoval Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

BIG VALLEY AUTO AUCTION**

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

$AVE : $200

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

$AVE : $100

ADESA HOUSTON

www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030 GM: Angela Williams Wednesday, 9:00 a.m.

$AVE : $200

AMERICA’S AA HOUSTON

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

$AVE : $200

AMERICA’S AA NORTH HOUSTON www.americasautoauction.com 1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842 GM: Buddy Cheney 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 GM: Tim Bowers Tuesday, 1:00 p.m.

$AVE : $200

D e a l e r

Midland Odessa IAA PERMIAN BASIN*

www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277, Fax 432.366.8725 GM: Christopher Rogers Thursday, 11:00 a.m.

$AVE : up to $200 Sell Fee

ONLINE ACV AUCTIONS**

www.acvauctions.com 800.553.4070

$AVE : $250

E-DEALERDIRECT**

NEW

www.e-dealerdirect.com chris@edealerdirect.com

$AVE : Up to $500/month

San Antonio

MANHEIM TEXAS HOBBY

ADESA SAN ANTONIO

$AVE : $100

$AVE : $200

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

Longview ALLIANCE AUTO AUCTION LONGVIEW

Houston

T e x a s

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.

IAA HOUSTON NORTH*

MANHEIM EL PASO

June 2020

IAA HOUSTON*

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

$AVE : $200

IAA LONGVIEW*

www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248, Fax 903.553.0210 GM: David Cooper Thursday, 9:00 a.m.

$AVE : up to $200 Sell Fee

Lubbock IAA LUBBOCK*

www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 GM: Lori Davee Tuesday, 9:00 a.m.

$AVE : up to $200 Sell Fee

TEXAS LONE STAR AUTO AUCTION** www.lsaalubbock.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 Wednesday, 9:30 a.m

$AVE : $75/Quarterly

Lufkin LUFKIN DEALERS AUTO AUCTION

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

$AVE : $200

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.

IAA SAN ANTONIO*

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

$AVE : up to $200 Sell Fee

MANHEIM SAN ANTONIO**

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

$AVE : $100

SAN ANTONIO AUTO AUCTION**

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

$AVE : $200

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

$AVE : $200

Waco ALLIANCE AUTO AUCTION WACO

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

$AVE : $200

TIADA Auction App turns your phone into

CASH

Score savings on your phone with coupons that range from $75 to $250 each on buy-sell fees.

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

The best d the best edu

August

JW Marriott San Anto

Featured BHPH

KEN SHILSON

PRESIDENT SUBPRIME ANALYTICS & NABD

Finding the Right Financial Partner for BHPH – The Post Pandemic Sequel 24

SESSIONS SPECIAL FINANCE & RETAIL

JESSICA STAFFORD

SR. VICE PRESIDENT CONSUMER SOLUTIONS, AUTOTRADER & KELLEY BLUE BOOK

The Accelerated Future of Car Shopping and Buying

MANAGEMENT

LUKE ELLIS ATTORNEY MARRS ELLIS & HODGE LLP

Auto Dealers & Texas Eminent Domain – The Tension Highway Expansion Projects and Protecting Private Property Rights T e x a s

D e a l e r

June 2020

dealers in Texas, ucation anywhere.

WHAT

ARE

dealers

SAYING

“This is my first time attending the conference. I walked away with several key pieces of information that will positively impact the future of our dealership.” – AUSTIN HUNTER, SPEEDWAY MOTORS – SAN ANTONIO

16–18, 2020

onio Hill Country Resort & Spa

COMPLIANCE

TEXAS DEPARTMENT OF MOTOR VEHICLES

TECHNOLOGY

RON MORRISON

– ENFORCEMENT DIVISION

CEO PUREINFLUENCER, LLC

TxDMV Is Here to Help

Amplifying SEM for a Measurable Sales Lift

June 2020

T e x a s

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“Very refreshing event, that I would recommend to any new dealer and established dealers.” – LARRY DZUIK, SUPERIOR AUTO SALES – BEEVILLE

“The best organized state convention I have ever attended. Dealer panels is a great asset. Couple that with the professionalism of the staff and attendees makes a great event.” – HENRY MULLINAX, NIADA PRESIDENT, MULLINAX AUTO SALES. INC. 25

Thank You

OUR

P L A T I N U M

L I M I T E D S P O N S O R S H I P & E X H I B I T I N G O P P O R T U N I T I E S AVA I L A B L E 26

T e x a s

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June 2020

Sponsors

CURRENT G O L D

W Walker Auction Group W Walker Auction

S I L V E R

S P E C I A L T Y

ACV AuCtions – Happy Hour V12 softwAre – Lanyards PrimALend CAPitAL – Meeting Digital Signage B R O N Z E Auction Credit Enterprises

Big Valley Auto Auction

Ignite Consulting Partners

Lobel Financial

Neo

El Paso Independent Auto Auction

Microbilt Corp.

Tax Refund Services–Tax Max

First Texas Auto Credit

MyCarCarePlan.com/Car Care Promotions Inc Wayne Reaves Software

C O N TA C T PAT T Y H U B E R AT PAT T Y. H U B E R @ T X I A D A . O R G / 5 1 2 . 3 1 0 . 9 7 9 5 June 2020

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Grou

Dealer Registration Options

Dealership:&_____________ 2020 TIADA Conference Expo AugustAddress: 16 -18,_______________ 2020

 Primarily JW Marriott Hill Country Resort – San Antonio,BHPH TX Deal REGISTRANT DETAILS

Customize your conference experience by selecting from the options below. Please complete the registration form and 1st Registrant return it with payment in full to the address listed or for online registration, go to www.TiadaAnnualConference.com.

1st TIME ATTENDEE? Yes No

Name: ____________________________ EARLY BIRD RATE

CONFERENCE OPTIONS

Name for Badge: ___________________ through July 17th Title: _____________________________

Email:____________________________ Register by July 17th,

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

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

 FULL CONFERENCE ($495 Early Bir

Save $100 per attendee.  ONE DAY PASS ($300)

Circle Preferred Day MONDAY TUES  Expo Hall Guest Wristband (10 & older $595 $495  Addt’l. Awards Dinner Ticket (10 & olde

$495 $395 $395 $295

3rd Registrant

One Day Dealer Pass

1st TIME ATTENDEE? Yes No

$300 $400____________________________ non-members Name:

(Monday 8/17 or Tuesday 8/18) (includes Monday or Tuesday Education and Expo Hall on your selected day)

Name for Badge: ___________________ Title: _____________________________

Non-Member (Dealers only)

Email:____________________________ $895 $795

TADA and out-of-state IADA members are eligible for TIADA member rate

 FULL CONFERENCE ($295 Early Bir  ONE DAY PASS ($300) Circle Preferred Day MONDAY TUES  Expo Hall Guest Wristband (10 & older $99  Addt’l. Awards Dinner Ticket (10 & olde

Session Recordings With Conference Registration Regular (non-attendees)

$399

A LA CARTE

*Registrants must be from same dealership to receive discounted rate

Hotel Accommodations

SESSION RECORDINGS+  $99 with Conference Registr +Approximately

20 hours of recorded bre

SPECIAL MEMBERSHIP TICKE

Discounted guestrooms are available for $229/night plus $5 discounted resort fee for TIADA Conference attendees. Please contact the hotel directly to book your room. Must be reserved on or before July 17th to receive discounted rate. Any room reservation that is cancelled after July 17th will be subject to a late cancellationPayment fee of one Information night’s room & tax. No-shows will also be charged one-night’s room & tax.  Make check payable to TIADA.  TIADA i

CC Number________________________ JW Marriott Hill Country Resort / 23808 Resort Parkway / San Antonio, TX 78261

Name on Card______________________

Call 210.276.2500 or book online TiadaAnnualConference.com/jwmarriott-hillcountry

TIADA | 9951 Anderson Mill Rd

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June 2020

Dealer Registration _________________________________________ Phone: ____________________ Phone: ____________________ Dealership: ______________________________________________________

__________________________________City/ST/Zip: Address: ________________________________________________City/ST/Zip: ______________________ ______________________

ler

 Primarily Primarily BHPH Retail Dealer Dealer

 Equally Primarily BHPH/Retail Retail Dealer Dealer  Equally BHPH/Retail Dealer

REGISTRANT DETARILESGISTRANT DETAILS

REGISTRANT DETAILS

1st Registrant

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

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

Name: __________________________________________________ Name: __________________________________________________ _______________________ Name: __________________________________________________ Name for Badge: _________________________________________ Name for Badge: _________________________________________ _______________________ Name for Badge: _________________________________________ Title: ___________________________________________________ Title: ___________________________________________________ _______________________ Title: ___________________________________________________ Email:__________________________________________________ Email:__________________________________________________ _______________________ Email:__________________________________________________

FULLBird CONFERENCE ($395 Early Bird through 7/17) FULL CONFERENCE $____ ($395 Early Bird through 7/17) $____ rd through 7/17) FULL CONFERENCE $____ ($495Early through 7/17) $____  ONE DAY PASS ($300)  ONE DAY PASS $____ ($300) $____  ONE DAY PASS $____($300) $____ Preferred Day MONDAY TUESDAY Circle Preferred Day MONDAY TUESDAY SDAY Circle Preferred Day MONDAYCircle TUESDAY  Expo Hall Guest Wristband (10 & older) ($99 x  ____) Expo Hall Guest $____ Wristband (10 & older) ($99 x ____) $____ r) ($99 x  ____) Expo Hall Guest $____ Wristband (10 & older) ($99 x ____) $____ Addt’l. Awards Ticket (10$____ & older) ($50 x____) Addt’l. Awards $____ Dinner Ticket (10 & older) ($50 x ____) $____ er) ($50 x____) Addt’l. Awards $____ Dinner Ticket(10 & older) ($50Dinner x ____) nd Registrant Subtotal $_____ nd Registrant Subtotal $_____ 2 2 1st Registrant Subtotal $_____ 1st Registrant Subtotal $_____ 3rd Registrant 1st TIME

4th Registrant

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

1st TIME ATTENDEE? Yes No

_______________________ Name: __________________________________________________ Name: __________________________________________________ Name: __________________________________________________ _______________________ Name for Badge: _________________________________________ Name for Badge: _________________________________________ Name for Badge: _________________________________________ _______________________ Title: ___________________________________________________ Title: ___________________________________________________ Title: ___________________________________________________

_______________________ Email:__________________________________________________ Email:__________________________________________________ Email:__________________________________________________

rd through 7/17) FULL CONFERENCE $____ ($295Early through 7/17) $____ FULLBird CONFERENCE ($295 Early Bird through 7/17) FULL CONFERENCE $____ ($295 Early Bird through 7/17)  ONE DAY PASS $____($300)  ONE DAY PASS ($300) $____  ONE DAY PASS $____($300) SDAY Circle Preferred Day MONDAYCircle TUESDAY Preferred Day MONDAY TUESDAY Circle Preferred Day MONDAY TUESDAY r) ($99 x  ____) Expo Hall Guest $____ Wristband  (10Expo & older) x Wristband ____) Hall($99 Guest (10 &$____ older) ($99 x  ____) Expo Hall Guest $____ Wristband (10 & older) ($99 x ____) er) ($50 x____) Addt’l. Awards $____ Dinner Ticket(10 & older) ($50Dinner x ____) Addt’l. Awards Ticket (10$____ & older) ($50 x____) Addt’l. Awards $____ Dinner Ticket (10 & older) ($50 x ____)

A LA CARTE

3rd Registrant Subtotal $_____

3rd Registrant Subtotal $_____4th Registrant Subtotal $_____

SESSION RECORDINGS $____  $399 Regular (Non-attendees)  $99 with Conference Registration eakout sessions

ration

ETS

$____ $____ $____ $____

4th Registrant Subtotal $_____

+Approximately

$100 X _____

 $399 Regular (Non-attendees)

20 hours of recorded breakout sessions

$____

Payment Information

$____

A la Carte Subtotal $_____

Total Amount Due $ ____________ Total Amount Due $ ____________

is hereby authorized  Make check to execute payable payment to TIADA. to thefollowing TIADA iscredit hereby card: authorized  AMEX to execute  Visa paymenttoMC the following  Discover credit card:

 AMEX

 Visa

___________________________________________Exp. CC Number__________________________________________________________________Exp. Date ____________ SVC _________ Date ____________

 MC

 Discover

SVC _________

____________________________Authorized Name on Card_________________________________________________Authorized Signature_______________________________________ Signature_______________________________________

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Please Welcome Our Newest TIADA Members DEALER MEMBERS ATX Joy Rides Eric Ramirez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7500 Burnet Rd, Austin, TX 78757 Auto Plan Marina Ali . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5115 Scottline Dr, Pasadena, TX 77505 Blanco Auto Group LLC Tyron White . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1313 Oakridge Dr, Blanco, TX 78606 Texas Luxury Auto Ahmed Butt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4009 Plumwood Dr., Arlington, TX 76016 Urway Auto Sales Scott Turner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1018 Ranger Rd, Forney, TX 75126

ASSOCIATE MEMBERS AutosnapLive Dan Gardner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3329 Vintage Drive, Round Rock, TX 78664

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feature

How to Maximize on Digital Wholesales – The SparkNotes Version by Joe Neiman ACV Auctions

n the midst of this history-making global pandemic, the auto industry is reeling. Each day, each hour, we’re learning new updates and trying to adjust accordingly. With varying rules and laws from state to state and even county to county, it’s understandably an overwhelming state of the industry. In fact, it can be easy to lose focus or just ignore certain parts of the business in the interest of trying not to lose more money. But here’s the thing: if you’re really committed to being around in a couple weeks or months, once this virus levels out and passes, you have to keep moving —business as usual. It will be slower. Your volume will be down. But you have to continue to transact. If you don’t, then you might as well shut down now. So now that you’ve committed to continuing to operate, what can you do to make sure you’re

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maximizing on your wholesale business? Consider this a SparkNotes version of the rulebook that has never been formally written for the wholesale marketplace.

Cars get bought at auction — not sold. This means the buyers are actually in control of the outcomes far more than the sellers are, even though most sellers would never want to admit to that reality.

2 3

You must trust the auction process if you’re going to use an auction, and know how to play it to your advantage. The way to get the most out of the auction is to ensure you have the biggest audience. 33

4 5

The way to get the audience is to ask the least, by setting a low reserve. This is a classic risk = reward strategy.

Newsflash: Buyers don’t really care what a seller owns the car for. Buyers want the best deal possible, but there is a way to make them pay more — you must create a competitive bidding environment on your vehicles.

The only way to get a buyer to pay more is by creating competitive pressure by having a low reserve price. Think about the energy and the vibe at an auction and the fast-chanting auctioneer. Just thinking about it and your blood pressure starts rising. You can replicate this same competitive atmosphere with an online auction by lowering your reserve price to pull more potential buyers in on your vehicle.

If you do the opposite and set a higher reserve price, all of the potential buyers vanish away from your vehicle, or never even take a good look at it. What seems “safe” by setting a high reserve is actually the worst thing you can do. All that you

are ensuring is that you’ll be stuck with that depreciating vehicle even longer!

It is the same strategy that seasoned auction reps know: the first five cars in your run are getting sold no matter what. Why? Because it pulls in the audience and then you will average out ahead overall. Here’s what I’ve been seeing while observing some online auction forums these last few weeks:

The sellers who have embraced the strategies outlined above have experienced higher volumes of views per auction, unique bidder count per auction, more total bids per bidder, higher sell through rates (conversion), higher final prices paid for their vehicles, less reliance on IF deals, and dramatically increased wholesale profitability compared to their peers who try unsuccessfully with an above-market reserve price.

Online auctions reward the sellers who set aggressive reserve prices because their listings stand out among the rest and get more audience, action, and pull more money.

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3 4 5

Historically, sellers who adapt these strategies have realized a $200-900 average lift per vehicle for their wholesale compared to their previous results. There is no better time to embrace digital wholesale into your process. It can safely sell your cars the same day, giving you the cash flow, you need.

There are thousands of online buyers from across the nation, which allows sellers to reach buyers outside of their current market, some of which may be severely limited or shut down by local or regional market conditions and emergency efforts as a result of COVID-19. Holding out for more money is a fallacy. Each time you run a vehicle through an auction and don’t sell it, you actually devalue it and turn off potential buyers from engaging because they have seen it, and watched it not sell. Buyers do not want to waste their time chasing the same car multiple times. After the second time seeing it, they’re generally disinterested and will no longer bid on it even if they were once interested. That’s why pricing aggressively and letting the competition occur is paramount to a seller’s success.

In the current environment, many sellers are fearful about cutting their wholesale inventory loose and actualizing the losses. But the reality is that they have already lost the money — even if they continue to hold the depreciated assets and hide their losses. Actualize the loss, free up the capital, and move forward with your business. Right now, the best move is to stay as current as possible with the market and ride the waves, instead of trying to time the market perfectly and get in and out at the right times. To achieve this, reduce inventory turn times, and get wholesale inventory off the books as quickly as possible, even at a loss. Take that nowliquid valuable capital and reinvest it in right-priced inventory. We’ll get through this together. Online auctions are here for our dealer partners and appreciate all the new dealers reaching out and asking for our assistance. Like everyone else, we’re rolling with the volatility, making changes and updates where we can and looking for ways to keep innovating while we weather the storm together. What doesn’t stop us only makes us stronger. Joe Neiman is Co-Founder of ACV Auctions. For more information visit www.ACVAuctions.com.

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feature

Letters from TxDMV and TACA by TIADA Staff

usiness as usual has certainly changed due to COVID-19 but one thing that has not changed is the importance of having good strong relationships and open lines of communications. Throughout this process, TIADA has been in constant communication with state agencies, local policymakers, and JUNE2020.pdf 5/2/20 4:25 PM electedEPI-TIADAhalf officials. Below you will1 find a sample of that

open communication with some of our more valuable stakeholders as everyone sought to keep the industry open while maintaining a safe environment. TIADA gives a tip of the hat to the Texas Tax Assessor-Collector Association and the Texas Department of Motor Vehicles for their efforts and their partnership through these trying times.

CMY

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THE TAX ASSESSOR-COLLECTORS ASSOCIATION OF TEXAS An Association to secure the benefits of organized ideas and discussion of mutual problems that will advance and maintain proper efficiency and dignity of the County Tax Office.

www.tacaoftexas.org

“2020 VISION: PREPARING FOR THE FUTURE”

OFFICERS CATHY C. TALCOTT, PCAC PRESIDENT COMAL COUNTY talcoc@co.comal.tx.us TAMMY McRAE, PCAC PRESIDENT-ELECT MONTGOMERY COUNTY tammy.mcrae@mctx.org

DATE:J

April 17, 2020

TO:

The Honorable Greg Abbott, Governor, State of Texas

FROM:

Cathy C. Talcott, Tax Assessor-Collector, Comal County President, Tax Assessor-Collectors Association of Texas

SUBJECT:

COUNTY TAX ASSESSOR-COLLECTOR OPERATIONAL PROCESSES AND CHALLENGES DURING COVID-19 DISASTER DECLARATION

The leadership of the Tax Assessor-Collector Association of Texas (TACA) is interested in helping Governor Abbott and the State effectively serve the public and business enterprises during the COVID-19 situation. This information is submitted to keep you apprised of current issues we’re facing.

RANDALL RIGGS, CPA, PCC VICE-PRESIDENT EXTERNAL MCLENNAN COUNTY randy.riggs@co.mclennan.tx.us BRUCE STIDHAM, PCAC VICE-PRESIDENT INTERNAL GRAYSON COUNTY stidhamb@co.grayson.tx.us

TACA leadership is communicating and working with the Texas Department of Motor Vehicles (TxDMV) regarding each of the following matters to resolve each current issue.

LARRY GADDES, PCAC, CTA SECRETARY-TREASURER WILLIAMSON COUNTY lgaddes@wilco.org

BACKGROUND

MICHELLE FRENCH, PCC IMMEDIATE PAST PRESIDENT DENTON COUNTY michelle.french@dentoncounty.com DIRECTORS KEVIN KIESCHNICK, PCC NUECES COUNTY kevin.kieschnick@co.nueces.tx.us DONNA WILLIS LYNN COUNTY donna.willis@co.lynn.tx.us SHAY LUEDEKE, CTOP BELL COUNTY shay.luedeke@bellcounty.texas.gov ALBERT URESTI, CTOP BEXAR COUNTY Albert.uresti@bexar.org

How Counties are Operating Differently and Why There are several reasons why counties are operating at different levels of closure. • The first reason relates to the extensions provided by Governor Abbott for automobile registration and titles. This extension was received by the tax assessor community as an indicator that the Governor would prefer that if registration and titling were the reason why citizens were leaving their homes, that he would rather they wait until the risk of spreading the virus subsides. This is reinforced by his social media responses to the various media stories regarding the extensions. •

Another reason for the varying degrees of closure is due to the various executive orders issued by the offices of county judges. County tax assessor-collectors are managing their offices to meet the needs of their customers while observing respective Stay At Home Orders. This includes ensuring staff are kept as safe as possible through social distancing, including: o Breaking staff into teams, P O Box 329 Georgetown, TX 78627 Phone: 512-943-1640 Fax: 512-943-3578

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County TAC Operational Processes and Challenges During COVID-19 Disaster Declaration April 17, 2020

o Reducing the amount of staff in an area at one time, o In consideration for those who are unable to work because their children’s schools are closed, o And in consideration for those with a compromised health status. Of Texas’ 254 counties, about 20 tax assessor-collector offices are completely closed. Most counties are operating in one of the following ways: •

Closed to the public, but working with limited staffing for handling mail, email, phones, webDEALER, and online transactions;

•

Closed several days a week, but are working remotely and on-site on other days for handling mail, email, webDEALER, and online transactions;

•

Closed to the public, but all staff are working in the office to handle mail, email, webDEALER, and online transactions; or

•

Closed to the public, but accepting appointments to transact business and handle mail, email, webDEALER, and online transactions, or by appointment only, including the use of social distancing protocols. ISSUE 1 - Question of Title Work Being Done for Dealers

Dealers and Industry representatives have reported that their county is closed and they are unable to perform title work. Other than the approximately 20 counties that are completely closed, all other counties that have reported to TxDMV have indicated that they are continuing to perform title work. We believe the issue at hand is more of a timeliness issue, rather than a non-service issue. The title work may not be done as quickly as usual because of the reduced hours and staffing necessary to comply with Stay At Home Orders. It is also important to note that some counties initially were not performing title transfers, but have since updated their services to perform dealer title services. There is an electronic process for many dealers to turn in title work via a portal called “webDEALER.“ This portal is hosted by TxDMV, and allows a dealer to scan and upload the title documents needing to be worked. •

With Governor Abbott’s extension of the due dates for registration and title transfer penalties, an unintended consequence was created, i.e., the webDEALER portal is unable to remove late title transfer penalties. Therefore, dealers have to manually turn in their title work to take advantage of the waiving late title transfer penalties. o TxDMV is working on a flag or option in webDEALER to deal with the issue, although it’s unlikely to be available until mid-May.

•

It has also been reported by several counties that the title work being delivered to counties were already at or beyond the 30-day period to transfer without penalty, thus adding even more manual processing. This, in turn, has caused delays in processing their title work with county’s reduced staff and reduced work days required to comply with Stay At Home Orders.

P O Box 329 Georgetown, TX 78627 Phone: 512-943-1640 Fax: 512-943-3578

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County TAC Operational Processes and Challenges During COVID-19 Disaster Declaration April 17, 2020

ISSUE 2 - Information Push to Dealer Industry and General Public Since the Executive Orders were issued by Governor Abbott, and subsequently by various county judges, we have observed that disseminating information to the public has not been as effectively received as anticipated. Despite numerous ways to share the information, e.g., county and state websites, TxDMV website, Facebook, Twitter, etc., we have seen that there is general confusion about which and how transactions are being processed for the public and dealers, as well as what parts of a dealer’s business are considered essential, e.g., sales, service, etc. Of note is the fact that many offices of tax assessor-collectors have been calling and emailing the dealerships in their respective counties in an effort to ensure the dealers understand what and how title services are available to them. •

DMV has added to its website the status of all county tax offices, i.e., to indicate that each respective office is open, closed to the public, or completely closed.

•

DMV had also revised VTR136 to include option for dealer to take title work to any other county if their county is fully closed. The receiving county tax office is to confirm that the owner county is truly closed, and then can decide if the receiving office wants to accept the title work. This may help in allowing dealers in counties that are fully closed to get their title work done. ISSUE 3 – Inspection Extension

There is some confusion as to whether inspection requirements are part of the Governor’s Executive Order allowing for waiving or delay of the requirement. Vehicle inspections must be performed no earlier than 90 days prior to the date the vehicle is registered. The Governor waived registration renewals until 60 days after the disaster declaration is lifted. •

There is a concern that motorists who obtained timely vehicle inspections, but who are waiting to renew their registrations will be required to have their vehicles re-inspected in order to meet the 90-day period required by statute. o TACA believes that it would be beneficial to allow vehicle inspections that were performed during or just prior to the COVID-19 crisis to be considered as timely for purposes of registration renewals, even if the elapsed time since the inspection is more than 90 days from the date of registration. o DMV has indicated that if the county selects “invalid” and the year of expiration date does not change, then the 90-day window of inspection is not compromised. But if year of expiration is changed, then the inspection would have to be within the 90-day window.

P O Box 329 Georgetown, TX 78627 Phone: 512-943-1640 Fax: 512-943-3578

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Memorandum Date:

5/12/2020

To:

Charlie Leal, Office of the Governor

From:

Whitney Brewster, Executive Director of the Texas Department of Motor Vehicles

Subject:

Response to April 17, 2020 Memo from the Tax Assessor-Collector Association of Texas

Purpose On April 17, 2020 the President of the Tax Assessor-Collector Association of Texas (TACA), Cathy Talcott, sent a memo to Governor Abbott outlining the operational processes and challenges for county tax assessorcollectors during the COVID-19 disaster. The Texas Department of Motor Vehicles (TxDMV) has been working closely with the tax assessor-collectors and all stakeholders to help ensure essential services continue to be provided during this time.

Background/Summary The memo from TACA laid out three areas of concern, including: Issue 1: Issue 2: Issue 3:

Title work being done for dealers. Information provided to the dealer industry and the public. Inspection extensions.

Like TACA, TxDMV wants to ensure the public and motor vehicle-related businesses receive effective service during the COVID-19 pandemic. TxDMV is aware of these concerns and has taken measures to work with stakeholders to identify solutions.

Discussion TxDMV quickly learned each county has responded to office closures and service offerings differently during this disaster, largely due to the many county and local orders outlining various requirements intended to flatten the curve of the virus and protect communities. Our staff subsequently reached out to every county to specifically identify the status of services continuing to be provided, then created a webpage on the TxDMV website to detail services available under the Tax Assessor Office Closures tab at https://www.txdmv.gov/covid-19. TxDMV has received very positive feedback from stakeholders and customers regarding the availability and helpfulness of this information. Please refer to the departmentâ&#x20AC;&#x2122;s responses below to each issue identified in the TACA memo. Issue 1:

Title work being done for dealers.

The department recognizes businesses identified as essential during this time, including dealerships and the ability for the selling and purchasing of vehicles, and the importance of continuing to provide vital services in a timely manner. Shortly after orders were issued at both the state and local levels, TxDMV heard from dealer stakeholders regarding titling concerns and the availability of tax assessor-collector staff to process those

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Memorandum transactions. As such, the department worked through a solution with both the various dealer associations and TACA to outline a workflow process should a county office be closed or providing limited services due to COVID-19. Official guidance on this process was issued April 16 and the department received very positive feedback from stakeholders on the solution. The TACA memo states the webDEALER system, which helps process titles without the need for paperwork or in-person transactions, is unable to remove late title transfer penalties. Because the system includes requirements for fees collected by the counties, the department, and the Comptroller, TxDMV staff coordinated with the impacted entities to identify system modifications needed to waive these penalties. The programming to waive the delinquent transfer penalty is currently scheduled for May 2. The delinquent sales tax penalty waiver programming will be completed in a subsequent release on May 16. A workaround solution has been developed and communicated to tax assessor-collectors to be used until changes are made available in the webDEALER system. Issue 2:

Information provided to the dealer industry and the public.

The TACA memo indicates there is general confusion regarding how the counties process transactions for the public and dealers. Recognizing this confusion among customers and stakeholders and as noted in the TACA memo, TxDMV gathered information from each county tax assessor-collector and added it to TxDMV’s external website and social media channels to provide a centralized location to help the public understand the availability of services. The information provided by the county tax-assessor collectors includes whether they are closed to applicants who are unable to have their title applications processed. Additionally, the department also revised the “County of Title Issuance” (also known as the VTR-136) form to include an option for a dealer requesting another county process the title if the owner’s county of residence is officially closed and not providing services to the dealer. The department continues to provide full call center operations and is able to answer questions regarding this issue from the county tax assessor-collectors, dealers, and Texas citizens. TxDMV appreciates that TACA recognizes the efforts of the department to help keep customers and stakeholders informed and help get title work done. Issue 3:

Inspection extensions.

TACA has asked that vehicle inspections performed during or just prior to the COVID-19 crisis be considered as timely for purposes of registration renewals, even if the elapsed time since the inspection is more than 90 days from the date of registration. This request does not require any changes to department systems or rules, nor does it require a waiver of statute. The Single Sticker Program, or enforcement of inspection requirements at time of registration, has functioned in this manner since implemented in 2015 and the TxDMV’s Registration and Title System is already programmed to not compromise the 90-day window of inspection. As we have communicated with TACA and individual tax assessor-collectors previously, Texas statutes require a vehicle inspection to be performed no earlier than 90 days prior to the date the vehicle registration is EXPIRED (not the date the vehicle registration is renewed). Therefore, vehicle inspections performed in February, prior to the many executive orders being in place, for a vehicle registration needing to be renewed in April would be considered valid in the department’s Registration and Titling System. This holds true even if the renewal does not occur until operations return to normal. TxDMV has added this information to its website and social media webpages, and the department has received feedback from customers that the information is helpful.

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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.

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 www.window.state.tx.us

REPOSSESSIONS American Recovery Association 972.755.4755 www.repo.org or contact TIADA state office FORMS Burrell Printing 800.252.9154 www.burrellprinting.com

NIADA 800.682.3837 www.niada.com

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feature

Three Sure-Fire Ways to Know if You’re Neglecting Your Dealership’s Accounting

ealers want to sell vehicles. Very few of you relish the accounting duties that are wrapped up in your business, and that’s completely understandable. But even when you delegate these important responsibilities to someone else, they shouldn’t remain mysterious to you. A good accountant transforms numbers and data into clear information you can act on. It’s as straightforward as that. Your accounting services are as critical to your dealership team as your sales, service, and parts departments. But still I see dealers settle for sub-par accounting services, mostly because finances are foreign to them and they don’t really know what they are missing. Their businesses suffer, or don’t do as well as they otherwise might with the help of a truly capable financial team. Very often, it’s not the fault of the people already doing the job; they just need some reinforcements, and as the dealership’s owner or leader, that’s up to you. Over the years, I’ve come to recognize three tell-tale signs that a dealership’s accounting isn’t contributing to

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Featured Presenter

by Kevin Roy Principal, CLA

the success of the business on the level it could be. If any of these three descriptions sound familiar, it’s probably time to take a good look at the way you regard and make use of these functions, then take corrective action or look for additional solutions that bolster your existing team.

Your “Accountant” is Your Receptionist Wearing a Bookkeeper’s Hat

It’s common for smaller and midsize dealership employees to be jacks of all trades, and many receptionists or other back-office people valiantly take on a host of administrative responsibilities. While these hardworking office chameleons are indispensable in so many ways, they can’t provide the credentialed professional-level skills and insight you need to truly manage your dealership’s finances, grow your business, and be more profitable. Making do with what you already have is wise and scrappy in many cases, but it just doesn’t cut it in 43

accounting. You simply can’t make good business decisions without a strong handle on your finances and all the complicated things bundled up with them, like taxes and other regulatory and compliance matters. But when you understand and control your budget, cash flow, forecasting — the full scope of your finances — you can run your dealership much more capably. Bringing a financial professional on board — either by directly hiring or, more affordably, outsourcing — is genuinely in your best interest.

Your CPA Or Accountant is Flummoxed by Your DMS Software

It’s true: Dealer management systems (DMS) are truly complicated and require some intense training, and even many seasoned financial professionals never get a real handle on them. If your accountant and your DMS are in constant conflict, it’s almost certainly costing you. Unless your accountant has a deep under-

standing of the dealership industry, he or she will likely never use the DMS to its fullest capacity — which means you could be missing out on its true value and the near-limitless insights and benefits it can deliver. It’s an expensive waste. Your DMS most likely can send accurate information directly to your general ledger and help you understand all your business transactions. It can also manage several complex tax functions. Many dealers end up paying more than necessary in taxes and fees because their CPAs are so confused by the software. If this scenario is familiar to you, it’s time to either send your accountant to DMS training or add an outsourced professional to your staff who already has industry experience and can make the most of this critical management system. 44

Your Trial Balance or Financial Statement Looks Like a Picasso Painting

These should be clear as day, not total head-scratchers. Your dealership’s trial balance and financial statements can be profoundly effective analytical tools, providing all kinds of financial and operational metrics. They tell the story of your business, and they should read like a picture book. If these aren’t treasure troves of precise, actionable information, then you should consider adding an outsourced accountant who can “paint” more like Rembrandt.

How to fix the problem

If you recognize any of these signs at your dealership, there are several ways you can shore up the deficiencies and start seeing improvements in your financial information. A variety of outsourced services are available in scalable portions that can fit your dealership’s specific needs and budget. Whether it makes sense to hire directly or use outsourcing to augment your team, remember that the success of your business depends on qualified people, and finances are too precise, complicated, and critical to compromise. A good outsourcing option should include training and education, which could be a fitting remedy in those situations where your existing accountant is a great employee who just needs some more exposure. With some instruction, he or she could learn to add the value you need from these services. Developing people and helping them in their careers often earns their loyalty and spreads valuable knowledge more abundantly throughout the dealership. You don’t ultimately have to add a finance employee to your payroll to take advantage of CFO- or controller-level skills and insights. Any and all accounting functions can be outsourced, and in any capacity — part-time permanent, temporary full-time, long-term or short-term, whatever you need. Above all, look for dealership-specific financial services. That specific industry knowledge is essential when it comes to making the right financial and operational decisions. Kevin Roy will be presenting at the TIADA Conference and Expo taking place from August 16-18 at the JW Marriott Hill Country Resort in San Antonio. He can be reached at kevin.roy@CLAconnect.com or 972-383-5760. T e x a s

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behind the wheel The Show Must Go On

ruth be told, at press time no definitive decision had been made about the 2020 TIADA Conference & Expo. It’s one of the most asked questions I am receiving these days. It comes in fourth place behind: (1) Can we offer test drives? (2) Do our employees have to wear masks? and (3) Is it illegal to repossess a vehicle? By the way, these top three questions are answered on the TIADA website under our blogs. Make sure you read the weekly email on Thursdays; we answer important questions, such as these, every week. The short answer to the annual conference is YES, we will hold our annual conference on August 16–18 this year and hope you are making plans to attend. The real question is, will we be able to host the

by Jeff

Martin TIADA EXECUTIVE DIRECTOR

conference in person in San Antonio like we have been planning to or will we be holding our first ever virtual TIADA conference? Unfortunately, there are too many unknowns related to the worldwide pandemic for us to give you a definitive answer today. However, what I can tell you is that no matter how we deliver this year’s conference, attendees can still expect unmatched education, great interaction with dealers from around the state, boundless opportunities to meet with the best vendors in the country, and a few surprises with awards and recognitions along the way. We are currently building two conferences for you, one that will take place at the JW Marriott in San

The short answer to the annual conference is YES, we will hold our annual conference on August 16–18 this year and hope you are making plans to attend. The real question is... June 2020

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Antonio and will look and feel very similar to our past conferences with a little social distancing mixed in, if needed. And another one that will allow you to attend while sitting on your couch at home or from your desk at your dealership. We will make our final decision on June 19th in conjunction with the host hotel and with input and guidance from your elected leaders, the TIADA Board of Directors. Your safety, along with the safety of your family, our sponsors, and the TIADA staff will be paramount in our final decision. We are also concerned about your financial investment. Our current Early Bird Registration is $495 for the first registrant from your dealership. That is predicated on our conference being held in person. If we elect to hold a virtual conference, we will refund

half your investment and save you a seat for the online program. If a virtual conference doesn’t suit you, we will gladly refund the entire amount. I lack a number of attributes as a human being; confidence is usually not one of them. But I currently do not have enough information to tell you with confidence what to expect for this year’s conference. So, this year I am asking you to have confidence in us. Confidence that we will deliver the high level event you have come to expect; confidence we will make the right decision for your association and our industry; and most of all, confidence that if we don’t or can’t deliver, we will do the right thing. If you share this confidence, you can show it today by registering for the annual conference. See you in August!

...will we be able to host the conference in person in San Antonio like we have been planning to or will we be holding our first ever virtual TIADA conference?

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