Texas Dealer May 2020 by Texas Independent Auto Dealers Association

Hispanic Consumers Should Contracts Be In Spanish?

Also In This Issue: – Best Practices for Marketing to Hispanics – It’s Time for Used Car Dealers to Embrace Digital Technology – 10 Tips for Empathetic Marketing During a Pandemic – Learning from Other Dealers’ Mistakes

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

Vo l u m e X X / I s s u e 5 / M a y 2 0 2 0

TexasDealer contents

5 Officers’ Message

by Mark Jones, TIADA President Elect

6 TIADA Membership Application 7 Membership Corner 8 On The Cover: Should Contracts Be In Spanish? by Michael W. Dunagan

ICE PRESIDENT, WEST TEXAS V (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423

14 TIADA Auction Directory 2020 16 Ten Best Practices for Marketing to Hispanic Consumers

ICE PRESIDENT, FORT WORTH V (REGION 2) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas, TX 75218

18 Local Chapters 20 Dear Fellow Car Dealer: An INDEPAC Update

ICE PRESIDENT, DALLAS V (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237

22 It’s Time for Used Car Dealers to Embrace Digital Retail

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

by Jaime Punishill

by Ryan Winkelmann by Zach Klempf

24 TIADA Conference and Expo 30 “Cutting Down the Nets” – Finding Victory at the End of March Madness by Dave Davlin

34 Board of Directors Meeting Minutes 35 Learning From Other Dealers’ Mistakes by Eric Johnson

37 10 Tips for Empathetic Marketing During a Pandemic by Lindsay Shearon

41 New Members 42 Behind the Wheel by Jeff Martin

Did You Know? You can find the most up-to-date information on COVID-19 and how it is impacting independent dealers on www.txiada.org/covid-19. 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 Rallying Together as a Family, the TIADA Family

s I sit down to write this message today, I am well aware that most, if not all, of our TIADA family, are restricted by shelter-inplace orders because of COVID-19. The current situation has undoubtedly had some impact on every TIADA member and serves as a reminder of how important and valuable our membership with this great association actually is. I cannot imagine facing this crisis without the support of my fellow dealers across Texas and the guidance of our TIADA team in Austin. It seems that every morning I find myself on the phone with other dealers discussing ideas and strategies to keep our doors open and survive another day. Make no mistake, this situation is like no other we have seen in the car business in our lifetime. Careful planning and a willingness to make tough decisions are the key to survival for many dealers in our TIADA family. Jeff Martin and the entire team at TIADA have worked tirelessly on behalf of Texas dealers to keep us informed of the many legal and local changes that are occurring on a daily basis. This has allowed dealers to make smart and calculated decisions as business owners. I know that I speak on behalf of all the dealers and associate members of TIADA when I say THANK YOU to our association for their dedication.

by Mark

Jones

MCMC Corporate (Burleson) TIADA PRESIDENT ELECT

Moreover, this situation has reminded me of what families do in a time of crisis. They rally together and begin exchanging ideas on how to address the obstacles they face — and that is exactly what I am witnessing here in Texas! I realize that none of us know for sure how long this pandemic will last or for how long it will impact our personal lives and businesses. What I do know is that the we-will-do-whatever-it-takes attitude so many Texas dealers have exhibited in the last few weeks is a sure sign that not only will we overcome this situation, but be better operators in the future. I have never been as proud to say that I am a TIADA member as I am today. I cannot say thank you enough to our community for all the information and your friendship, support, and selfless sharing of ideas. In closing, I would like to share a message with you that a fellow member sent me this week that I believe will resonate with every Texas dealer and summarize the type of attitude we all should be practicing daily. “We solve problems and create solutions all day, every day. It is the nature of the business we are in. We intend to stay positive, pro-active and focused on doing the right thing and we will get through this together.” Now is the time for our TIADA family to show each other just how determined and strong we are. We will all be better on the other side.

Now is the time for our TIADA family to show each other just how determined and strong we are. May 2020

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membership corner

5 Ways TIADA Members Can Stay Connected While Social Distancing

t TIADA, we are here to serve you. While inperson communications and meetings may be off-limits for many across the state at this time, there are a number of opportunities for TIADA members to stay connected with their association and one another in other ways. Below are just a few ways you can get involved and continue to network while working from home.

•H elp Grow Your Association: Invite an

independent dealer in your area to be a part of your association by participating in the 2020 Recruitment Challenge. Dealers who recruit five new members by June 30th receive one free dealer registration to the 2020 TIADA Conference & Expo, August 16–18th. Better yet, recruit 10 to score a 2-night stay at the JW Marriott Hill Country and Spa in San Antonio. www.tiadaannualconference.com.

•N ominate a Student for the Marvin Norwood Scholarship: Know someone who is

entering or currently enrolled in an accredited college or trade school? Invite him or her to apply for the $1,000 Marvin Norwood Scholarship by May 11, 2020. For complete details, visit: www.txiada.org/awards.

• Submit Content Ideas: Maybe you don’t have

plans to write the next great American novel, but you have a knack for writing, an interest in the independent automobile industry and just happen to have a great idea for an article for an upcoming issue of the Texas Dealer magazine or the TIADA blog. TIADA values and welcomes content ideas from members. To submit ideas, email the Texas Dealer editor at: info@txiada.org.

• Network with Other TIADA Members: TIADA’s online member directory is a great tool Stay Connected: @TXIADA May 2020

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when searching for resources. Whether you’re looking for accounting, insurance, GPS services or to connect with another independent dealer, there are several ways to do so. You can search for members by category or enter a keyword or phrase. Narrow your search to find services or other dealers in your area using the U.S. Radius options. The directory will produce a list of results with contact information. TIADA members can log in to access the online member directory available here: www.txiada.org/AF_MemberDirectory.asp.

• How ‘Bout a Little Spring Cleaning: Updating your member profile helps to ensure your team receives critical industry news impacting your business. If you haven’t been receiving TIADA email communications recently to your inbox, this is the perfect time to log in to your membership account and make sure your info is current. Once logged in, you can update your contact details, revamp your business description for the online member directory and even add members to your team. Log in to get started: www.txiada.org/login.asp Have Questions? Email: membership@txiada.org 7

on the cover

Editor’s Note: Our cover story this month features the information that would normally go in Mike Dunagan’s monthly column, Legal Corner.

by Michael W. Dunagan TIADA General Counsel

Should Contracts Be in Spanish? Dealer Question: Many of my customers are Hispanic and some don’t speak English. Should I have the contract form and all other closing documents translated into Spanish? Are contracts in English enforceable against a buyer who only speaks Spanish (or any other language for that matter)? Response: The growth of the Spanish-speaking population of the state and the corresponding growth of this segment of car buyers have raised interesting questions that more and more dealers are asking: Should I be using contracts and related closing documents that are in Spanish? And, even if I am not required to do so, can I write translations to give to my non-English-speaking customers?

t first blush, it would appear to make perfect sense to offer a description of the terms and conditions of a major transaction in a language that would be understood by the buyer. From a public relations standpoint, the seller would certainly appear to be more sympathetic to Hispanic customers if Spanish-language documents were used. And, it would seem to be the fair thing to do. In fact, California has a law that

requires documents to be translated into a number of different languages if requested by a customer. Another interesting question that comes up in this context is whether a Spanish-speaking buyer might be entitled to avoid the terms of a contract by relying on the defense that he or she didn’t understand the contents of what he or she signed if the documents were in English? While these arguments (and there are certainly others) would appear

to make a compelling case for the creation of and use of Spanishlanguage documents, there are some equally serious legal issues that currently, at least, require further study.

Are English-Language Documents Enforceable Against Non-English Speakers?

Let’s look first at the legal defense issue mentioned above. We have T e x a s

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The cour ts of this state have consistently held that, absent fraud, a contract in English that has been signed by a par ty, regardless of whether the par ty read or understood the contract, is enforceable.

seen a number of lawsuits over the years where non-English speakers claimed to be immune from the terms of the contracts since they were unaware of the meaning of the documents they signed. The courts of this state have consistently held that, absent fraud, a contract in English that has been signed by a party, regardless of whether the party read or understood the contract, is enforceable. In one case the dealer decided to cancel a sale because of a problem with the trade-in. He sent a check which contained release language to the buyer, refunding her down payment. She endorsed and cashed the check. When she brought suit over the transaction, the buyer claimed she wasn’t bound by the release because it was in English and the dealer was aware that she only spoke and read Spanish (in fact, all negotiations of the sale had taken place in Spanish). The San Antonio Court of Appeals held that she was charged with knowledge of the contents of the release whether she could read it or not. The court relied on a line of cases that have held that an illiterate person (and even a blind person) is responsible for obtaining an understanding of the contents of a document before signing, even if the other party knows of the person’s illiteracy. This case places the burden on a non-English-speaking person to obtain his or her own translator to read the documents and protects the creditor who simply places

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the English documents in front of the buyer for signature. By implication, if a dealer provides a translator, and the translator is accused of misstating the terms, the outcome may be different. (That is, a creditor who uses English-language documents, but provides an incorrect or misleading translation may be accused of misrepresenting the terms of the contract, or even committing fraud). There are also some provisions of the law that require a foreign language translation when negotiations take place in a foreign language.

Doc Fee Disclosure

One example is the mandatory documentary fee disclosure which must appear on contracts and buyer’s order forms. Most installment contract forms contain a Spanish translation already, but if negotiations take place in another language, a translation in that language must be given. Fortunately, the regulation

in question offers a state-mandated translation that can be relied upon by the merchant as meeting the terms of the law.

FTC Buyers Guide

Are there words in Spanish that adequately convey the subtle shades of meaning that have evolved over the years? Would a whole new rash of litigation arise over conflicting interpretations of what the contracts mean?

Another example is the FTC Buyers Guide window sticker. If negotiations take place in Spanish, a Spanish version must be given to the prospective purchaser. The FTC has included a Spanish translation in its rule that can be relied upon by forms printers and dealer management software. The disclosure doesn’t have to be made in any language other than English or Spanish. (As an example

of the potential problems of attempting to translate complicated legal terms, the FTC has recently reissued the Spanish translation of the Buyers Guide with changes to the

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translation of such terms as “dealer,” “regardless of,” “frame cracks,” “cooling system,” “air conditioner,” “defroster,” and “not enough pedal reserve.” Apparently, the original translations were deemed to not be accurate enough.) Dealers who have Spanish-speaking salespeople and routinely negotiate deals in Spanish should consider posting Spanish-language Buyers Guides on inventory vehicles (along with English-language versions) to meet the requirements of the rule.

Choice-of-County Forms

The Texas Transportation Code requires dealers to obtain a designation of the county in which a buyer wishes to have the title to a purchased vehicle transferred. The document has to be signed by the buyer. If negotiations take place in Spanish, a Spanish-language version of the form must be used. Fortunately, the Texas Division of Motor Vehicles has issued a Spanish-language version that is to be used.

Some Mandatory Disclosures Are in English

Another problem with creating Spanish-language contracts is that there are mandatory disclosures that are required by various provisions of law that are stated in English. For instance, the Texas Finance Code requires that a specific disclosure be made warning the buyers not to sign unless the contract is filled out and has been read. The wording of the disclosure in the statute is in English. The appearance of this disclosure on a motor vehicle retail installment contract in Spanish would possibly not meet the requirement and could expose the seller to statutory damages and enforcement actions by the Office of Consumer Credit Commissioner (OCCC).

The Importance of Government-Provided Translations

But probably the greatest obstacle to the adoption of a Spanish-language contract is ensuring an accurate translation. We are not talking about a casual conversation here. Motor vehicle installment contracts are multipurpose documents that are lengthy and complicated. In addition to being bills of sale, they contain promise-topay language, the grant of security interests in collateral, and numerous other statements as to the rights and obligations of the parties. The terms contained in the contract are subject to provisions of law and regulation enforced by agencies that include the Federal Trade Commission, the Federal Reserve Board, the Texas OCCC, the Texas Comptroller, and the Texas Department of Motor Vehicles. They are subject to the Uniform Commercial Code, the Texas Finance Code and multiple other areas of state and federal law. The development of a proper contract form to use in the financing of consumer purchases of motor vehicles is an evolutionary process. The current wording was not something that one person sat down and drafted. It is T e x a s

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instead the result of years of correcting, tweaking, re-writing and editing by legal experts. The language used has been the subject of intense litigation — sometimes surviving challenge, and sometimes changed as a result of a successful attack. Assuming that the issue of required English-language disclosures could be overcome, the question would remain whether the complicated legal passages can be properly translated in a way that retains the meaning. Are there words in Spanish that adequately convey the subtle shades of meaning that have evolved over the years? Would a whole new rash of litigation arise over conflicting interpretations of what the contracts mean?

“Plain Language” Requirements

One recent development that advocates of Spanish-language contracts can look to is the statutory

requirement of a few years ago (as part of a national legal trend) that OCCC issue optional plain-language contract forms that can be used by car creditors. The objective of the effort was to replace the complicated “legalese” of prior contracts with easier-to-understand words and syntax. The “plain language” contract terms are in English only. If used, the terms will provide creditors with certain legal defenses against claims the contracts contain illegal provisions. The Texas legislature did in fact pass a bill requiring that Regulation Z-mandated disclosures appear in Spanish in certain loans. However, the OCCC has ruled that dealers who finance motor vehicle sales don’t make loans (they finance the sale of motor vehicles), and are thus exempt from this requirement. The OCCC has issued Spanish-language translations of the Regulation Z disclosures that dealers can use on a voluntary basis (forms containing the Reg. Z

translations can be obtained from Burrell Printing at 800-252-9154). There will probably be a day in the not-too-distant future when Spanish-language contracts will be mandated. Hopefully, the government will also provide the necessary translations that creditors can rely on to comply with any such law. Until that day, however, dealers and creditors would be well advised to stick with the tried and true Englishlanguage documents, and those Spanish-language documents that have been issued or approved by the relevant government agencies. Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 40 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

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feature

Ten Best Practices for Marketing to Hispanic Consumers by Jaime Punishill

Chief Marketing Officer, Lionbridge

When you’re working with companies internationally, there’s an expectation that you will make an effort to understand the language and cultural differences among various countries and cultures. But within the U.S., linguistic and cultural differences are often overlooked — most notably, the fast-growing U.S. Spanish-speaking market. The U.S. is now the second largest Spanish-speaking country behind Mexico.

2014 Pew Research Center report states that 55.4 million Spanish-speakers or Hispanics live in the U.S., which is approximately 17.4% of the total U.S. population. And Hispanic consumers represent $1.5 trillion in purchasing power. That’s a high market share to target, so it makes sense that an increasing number of companies are marketing to Hispanic consumers. To capture this growing target audience, just translate your marketing content into Spanish with professional translation and you’re all set, right? Not exactly. Just like English in the U.S. vs. English in the U.K., not all Spanish is the same. With Spanish, from the many countries in Latin America to Spain, there are even more dialects. It’s not just about different pronunciations. Understand that many words have various meanings, depending on the dialect. This is true for many languages, including English, where elevator in the U.S. is known as lift in the U.K. Here are some best practices you should keep in mind and research further before you develop a strategy for marketing to Hispanics.

Understand the difference between Hispanic and Latino

There are many interpretations of how to define Hispanic versus Latino. For the purposes of this article, I’ll distinguish the two in the following way: Hispanic refers to language and Latino (including Latina and Latinx) refer to location. Therefore, Hispanic here is defined as one who has a Spanish-speaking origin or ancestry, including Spain. Latino refers to Spanish-speakers as well, but only people from Latin America. Hispanic and Latino are often used interchangeably, even though they don’t mean the same thing. It’s important to be aware of not only who you are targeting, but also how you choose to reference them. Not all Spanish-speaking people are Latino, and not all Latinos are Hispanic. 16

Be aware of regional differences

According to the Pew Research Center, most U.S. Hispanics prefer to use their country of origin to describe themselves. More than half of the survey respondents said they have no preference for either term, Hispanic or Latino. However, it’s still important to T e x a s

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localize your marketing efforts, as these preferences vary from state to state and they also change as the Hispanic population grows. For example, California has the highest Hispanic population percentage — and 30% of them say they prefer to be referenced as Hispanic, while 17% say they prefer Latino. But this preference is much stronger in Texas, where 46% of Hispanics said they prefer to be referenced as Hispanic versus 8% who prefer Latino. Localization is critical in states with a high Hispanic population, such as Texas, California, Arizona, New Mexico, New York, and Florida. There are several dialects of Spanish and Spanish variants in the U.S. Thus, Google Translate can’t compare to professional translation services — it lacks the ability to tailor translations to these dialects.

Consider generational and cultural gaps while tailoring marketing tactics and content

Hispanics, like many others, integrate traditions from their countries of origin into their lives in the U.S. But cultural integration can vary depending on segments of the larger Hispanic consumer population. Generationally, they can be broken down into two main groups:

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Traditionalists: Older immigrants — and some

younger — are considered “traditionalists” who don’t speak fluent English. You can market to traditionalists via Spanish-speaking TV and radio stations, as well as Spanish-language websites. Your marketing strategy should emphasize traditional Hispanic cultural values and traditions including food, family, and holidays. Know the various dialects and idioms within a specific region and don’t stop with a website, TV ad, or radio spot. Keep the customer engaged.

Millennials: Second-generation Hispanics are

those who are born in the U.S. into a Hispanic family. Like many second-generation ethnicities, they are typically younger family members who have adopted U.S. customs (and English) but still appreciate, respect, and enjoy their culture, language, and heritage. Culturally, marketers tend to divide Hispanic online consumers into three different categories:

Hispanic Dominant: This group speaks predomi nantly Spanish at home and consumes most media in Spanish. Typically, they’re foreign born and have a mean age of 40. On average, they’ve lived in the U.S. for seven years.

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

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

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

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

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

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

Bicultural: This crowd typi

cally speaks both English and Spanish at home, but consume most media in English. They’re a combination of foreign and U.S. born and have a mean age of 34. They’ve lived in the U.S., on average, for 22 years.

U.S. Dominant: This group generally speaks English at home and consumes most media in English. They’re U.S. born, with a mean age of 37, and have lived in the U.S. an average of 36 years.

Consider using Spanglish”

For U.S. dominant and bicultural audiences, blend both Spanish and English into your marketing campaign, keeping English as the primary language but integrating Spanish phrases, quotes, and terms to truly connect with Hispanic consumers.

Include Hispanic talents, using Spanish influenced music and imagery Create campaigns that are centered on Hispanic imagery and tell vibrant, colorful stories. But avoid stereotypes or singling Hispanics out.

Create mobile-friendly campaigns

Pew Hispanic Center found that Hispanic cell phone owners are more likely than Anglos to access the internet — 40% versus 34%. And according to a July 2014 Google Consumer Survey, Hispanics are 1.5 times more likely to buy mobile apps and digital media than non-Hispanics. Don’t miss these opportunities to connect with Hispanic consumers. Be sure to optimize all your digital touch points and campaigns for mobile platforms.

Include Hispanic culture in online ads

According to the Google Hispanic Marketing Forum, 88% of digital-using Hispanics pay attention to online ads that include aspects of their culture — regardless of the ad’s language.

Be consistent with Hispanic marketing

Pressing “Número 2” for Spanish on your phone keypad is helpful only if there is a Spanishspeaking representative on the other end. If you’re going to market to consumers in Spanish, be sure to support them throughout the customer journey.

Understand Spanishspeaking social media

According to CNN, Hispanic adults are more active on social media sites than any other ethnic group. CNN also points out that even though “Hispanic” is the identity most referenced on social media, the term “Latino” is mentioned more on Twitter. There are many reasons for this, one of which is that Latinos are becoming more prominent on TV shows, magazines, and professional sports.

Be aware of cultural diversity

It all comes down to being aware of cultural diversity. This can be done in many ways, such as hiring local employees or services that are aware of the various differences, as well as knowing the latest research on buying trends. Know their local culture, language, and customs. Bottom line: Localize, localize, localize. To learn more, visit Lionbridge.com.

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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.

Dear Fellow Car Dealer,

Ryan Winkelmann Phillip Lathrop Tommy Gregory Mark Jones Gregory Zak Keith Hagler Michael Zak Jerry and DeDe Smith Russell Moore Robert Edenfield

% 40

50%

60%

70 %

16%

90%

10%

20 %

C A

AISING NDR PR U F O

100%

It reminds me of when a non-running vehicle arrives to your dealership and needs to be pushed to the service bay. There are those who watch from inside the air-conditioned office as others help push, and there are those who join the effort, knowing it’s just the right thing to do.

Join the list of those who have already contributed for 2020!

SS RE G 0%

What is INDEPAC? I’m glad you asked. It is the Independent Dealer Political Action Committee that is managed by our association. INDEPAC and TIADA have shielded our industry from horrible legislation since 1984 by distributing collected donations to various political campaigns which philosophically support small business. We are fighting for the rights and interests of every dealer reading this article. To put it in perspective, we raised $23,767 in 2019 from 32 total contributors last year. That’s just 2.5 percent of TIADA’s 1,260 members contributing to help. And it is a miniscule fraction of the 24,000 independent licensed auto dealers in the state of Texas who benefit from our efforts!

As of March 31st, donations totaled $4,125 out of a Quarterly Goal of $25,000.

IND EP

Have you ever heard of the 80/20 Rule? It goes something like this: 20 percent of my wife’s closet is made up of yoga pants and 80 percent are other clothing options. Yet, she wears yoga pants 80 percent of the time and other options just 20 percent of the time. Ok, so that was just a fun fact, but not really the 80/20 rule. More generally, the 80/20 rule, also known as the Pareto Principle, is the observation that most things in life are not distributed equally. Now that I have your attention, I’d like to use this principle in the context of TIADA’s INDEPAC Committee for which I am the current chair.

QUARTERLY TIADA and INDEPAC have been responsible for squashing SO FAR GOAL legislation that would have caused your dealership thousands $4,125 $25,000 of dollars each year. It has also encouraged positive legislation that has saved your dealership the same. Most recently, we worked with our legislative allies to stop the crusher bill that would have allowed a metal recycler, salvage vehicle dealer or used automotive parts recycler to purchase a vehicle without obtaining a title as long as the vehicle is at least 10 years old. We also worked with legislators to eliminate the named driver only insurance policies. That was a long battle for us. Many other achievements, like doc fee increases and deferred sales tax, have been helping your business for years.

Contrary to what your spouse and kids know you do for a living, there are a lot of lawmakers out there that have a negative perspective of our industry. In truth, they don’t know what really happens on the ground and inside our dealerships. It’s donations to various political campaigns that gain us a seat at the table to inform our friends in the Texas House and Senate what really happens in the trenches. Our communication aids them in making more informed decisions when considering legislation that could potentially be harmful to us. Creating and maintaining these relationships are vital to the success of our businesses! I wanted to start this article with this paragraph but feared most might not continue reading it. If you have made it this far, you’re exactly the person I want on my team. Here’s what I need from you: a monthly personal contribution for the next 12 months to TIADA’s INDEPAC for $25, $50 or $100 per month. My goal for 2020 is to have 100 monthly contributors. Each of these individuals will be formally recognized each month in our Texas Dealer magazine. My objective is to highlight those who will stand with me on the front line in protecting the best interests of our industry and not quietly allow the steady few to push alone. This is not only our livelihood, it’s our responsibility to step up and do what we know is right for the future of our businesses. Thanks in advance for your consideration. I’ll see you on the front line.

Ryan Winkelmann INDEPAC Chair

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Yes, I would like to help with TIADAâ&#x20AC;&#x2122;s grassroots effort! ______________________________________________________________________________________

Please list me as a sustaining donor. I would like to support my industry by making a monthly credit card donation of

$______________

Add me to the KEY-PERSON list! I know (Name of Legislator) _______________________________________________ as a ____ Acquaintance

____ Personal Friend

____ Professional Contact

I would like to attend political fundraisers in my area I would like to support my industry by pledging a one-time donation of ___$1,000

___$500

___$250

___$100

Other $________

______________________________________________________________________________________

____ Personal Check Payable to INDEPAC

_____Personal Credit Card

Name_______________________________________________________________________________ Company ___________________________________________________________________________ Home Address_______________________________________________________________________ Email ______________________________________________________________________________

** Personal Check or Personal Credit Card only. Corporate contributions are prohibited by state law. Contributions are not tax deductible as charitable contributions for federal income tax purposes. ** Charge my Credit Card V MC D AM __________________________________________________ Exp: _____/_____ CVV: _____ Name on Card: ____________________________________________________________________________ Card Billing Address (if different):

______________________________________________________

______________________________________________________________________________________

Or donate online at www.txiada.org >> Resources >> Advocacy >> Political Action Committee ______________________________________________________________________________________ c/o TIADA 9951 Anderson Mill Rd Suite 101 Austin Texas 78750

Referred by:

May 2020

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PHONE

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512.244.6060 FAX 512.244.6218 EMAIL accounting@txiada.org

feature

It’s Time for Used Car Dealers to Embrace Digital Retail by Zach Klempf

CEO / Founder, Selly Automotive

ndependent dealers are feeling pressure from all sides as the used car industry rapidly evolves as well as the impacts from the COVID-19 virus. Slowing new car sales have forced franchise dealerships to double down on their used car departments. On the other side, digital used car platforms like Carvana and Vroom are changing buyer expectations. In an age when you can buy a vehicle 100% online, consumers grow impatient with pushy, paperwork-heavy dealership experiences. Outflanked by tech-savvy competitors with deep wallets, independent dealerships everywhere are faced with a choice: Do we adapt, or become uncompetitive? Luckily, a handful of new tools are helping used car dealers fight back. Digital retail platforms make it easy for used car dealers to upgrade the customer experience to keep

pace with franchises and online marketplaces. It’s time for used car dealers to embrace digital retail platforms as the new standard for the dealership experience. We’ll get into the benefits, but first, let’s look at what “digital retail” really means.

What is Digital Retail?

For many used car dealers, digital retail conjures up images of Amazon and eBay—100% online sales and delivery straight to your house. While some car marketplaces allow 100% online sales, 95% of customers still buy their vehicles in a dealership. For used car dealers, digital retail is a hybrid of online and offline car-buying experiences. It gives car-buyers the ability to start the buying process online, then complete the purchase in-store—or vice versa. Digital retailing (which

is sometimes called “omnichannel marketing”) allows customers to start and stop the deal flow on their terms. Digital retailing platforms also transfer most — if not all — physical paperwork online. Customers can complete paperwork on a tablet in the store, or log in and finish the process from the comfort of their home. Whether in-store or at home, digital retailing streamlines the car-buying journey while giving customers the flexibility and control they desire.

Benefits of Digital Retail for Used Car Dealers

Is digital retail a game-changing trend, or another overhyped fad? Given the massive changes happening in the used car industry, the answer is clear: Digital retail is a major innovation that could

OVERALL DEALERSHIP EXPERIENCE VS. TIME SPENT AT THE DEALERSHIP

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have long-term benefits for early adopters. There are three main benefits of digital retailing platforms for used car dealers:

Improved Customer Experience

According to Cox Automotive’s 2019 Car Buyer Journey Report, customer satisfaction declines significantly after spending more than 90 minutes at the dealership. However, the average customer spends 2 hours and 52 minutes at the dealership — almost twice as long as preferred. Digital retailing platforms make the two most frustrating parts of the car-buying experience easier: paperwork and price negotiations. Customers can complete these steps online before they visit the dealership. “By making more steps to the sale available online before customers arrive at the store, dealers can reduce the amount of time spent on the deal at the dealership, thereby positively impacting customer satisfaction,” said the report. Digitizing paperwork and negotiations can shave 93 minutes off the car-buying process, putting dealerships squarely in the sweet spot of customer satisfaction. Improved customer satisfaction creates a virtuous cycle of referrals from happy customers, who then recommend your store to friends and families as well.

More Profitable Upselling Opportunities

Price transparency and greater competition are hurting margins on used car sales. Dealers need to find those profits elsewhere, especially in F&I products and long-term service contracts. Digital retailing platforms provide innovative upselling opportunities that increase margins for used car dealers.

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According to McKinsey Consulting, digital retail platforms “offer better ways to serve customers and extract more lifetime value via tailored F&I offerings or the up-sale of parts-and-service contracts during vehicle negotiations.” Some digital retail platforms also streamline vehicle trade-ins, giving customers instant quotes and helping dealers secure muchneeded used vehicle inventory. Modal—a popular digital retailing platform—has an online trade-in feature that gives customers an estimate and offer before they ever step foot on the lot.

Keep Pace with Franchises and Digital Used Car Platforms

The collapse of big-box retailers like Sears and Circuit City should be a warning to used car dealers: keeping pace with innovative competitors is essential. Online retailers like Carvana and Vroom are leading the way in terms of innovation, but franchises are close behind. OEMs are pushing their franchise partners to adapt digital retail solutions and modernize the in-dealership experience. CarMax, meanwhile, recently bought a $50 million minority stake in Edmunds to improve its digital retail product. Things are changing fast, and independent dealers need to keep up. Many digital retailing platforms integrate directly with popular used car dealer DMS and CRM tools, making installation relatively simple. The bigger challenge for used car stores is adopting an omnichannel marketing mindset.

Bumps in the Digital Retail Road

However, some dealers still have concerns about digital retailing tools—specifically with automatic

payment calculator features. In a study conducted by CBT News in 2019, 50% of dealers said it is common for payment tools to provide unrealistic or inaccurate monthly payment expectations. Another 37% somewhat agreed with the statement. Many dealers report having re-desk deals that came through their digital retail channel, causing frustration with customers and lower deal profitability. Still, the future of digital retail is bright. The technology will continue to improve, and as more customers experience the ease of digital retail, the more they will come to expect it.

Are you Going Digital?

Independent used car dealers stand at a crossroads. As automotive retail changes around them, every owner and GM has to make a choice: Do we change with the times, or stick to “business as usual?” Regardless of what road you choose, the digital retail evolution is not stopping for anyone. McKinsey Consulting estimates that 25-50% of the used car buying experience will shift to online, up from only 6% today. It’s hard to imagine a future where all but a few niche dealers adopt omnichannel marketing tools. Here’s the good news: it’s not too late to evolve. No one has missed the boat yet. Every dealer in business today can still adapt to the modern car-buying experience. Not only will digital retail help you keep up with fast-moving competitors, but it will give you an early-mover advantage over other used car dealerships. Thanks to modern digital retail platforms, any dealership can offer a top-notch customer experience. We can’t control where the used car industry is going, but we can control how we respond to it. 23

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Even Apart, We’re in This Together. Together, we find ourselves in unprecedented and challenging times. Across the country many doors are closed, or at the very least business has been interrupted as we focus on what matters most: the well-being of our families, employees, customers and communities. We can do this. We’re auto dealers. We will see you again. Until then, stay healthy, stay safe and stay positive.

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

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Grou

Dealer Registration Options

Dealership: & ______________ 2020 TIADA Conference Expo Address: _______________ August 16 -18, 2020

 Primarily BHPH JW Marriott Hill Country Resort – San Antonio, TX Deale 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 Bird

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 Bird  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 Registra +Approximately

20 hours of recorded brea

SPECIAL MEMBERSHIP TICKET

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 Payment rate. Any room reservation that is cancelled after July 17th will be subject to a late cancellation fee of oneInformation night’s room & tax. No-shows will also be charged one-night’s room & tax.  Make check payable to TIADA.  TIADA is

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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Dealer Registration

_________________________________________ Phone: ____________________ Phone: ____________________ Dealership: ______________________________________________________

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

 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) $____ d 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 ____) $____ ) ($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:__________________________________________________

d 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 ) ($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 akout sessions

ation

$____ $____ $____ $____

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 $ ____________

s 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:

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“Cutting Down the Nets” – Finding Victory at the End of March Madness by Dave Davlin

Professional Speaker

arch Madness® is a term that was first used in 1939 to describe the buzz around the growing popularity of the Illinois High School Basketball Tournament. It was created by IHSA secretary and former high school coach, Henry Porter, who first coined the term in his 1939 essay, “March Madness”. Then, in 1982, famed sports commentator Brent Musburger used the phrase to describe the NCAA basketball tournament and it took on a life of its own. For basketball fans, it is one of the most anticipated

and most enjoyable times of the year. People from all over the globe look for the “Cinderella team” to emerge and take the world by storm. The stories that come out of this event are incredible and heart-warming. It is a time of celebration, fun, comradery and hope. The world needs March Madness®. In 2020, “March Madness” took on a new meaning. March and Madness were still applicable terms to describe the events of the month, but celebration, fun and hope were replaced with pandemic, panic and fear. And although the March Madness® of previous years T e x a s

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was shared by many, the “March Madness” of 2020 was shared by all. The impact of the COVID-19 Pandemic demands no reminders. The effects that included massive loss of jobs, loss of investments and retirement accounts, much of the world on lock-down and the overwhelming panic buying are fresh in all of our minds. Sure, we can contemplate the “whys” of these events and we can look to place blame on leaders and even countries. But, in doing so, we waste valuable time and energy on the real questions that present themselves, “How do we defeat an enemy of this size?”, “How do we compete as underdogs?”, “How do we write our own Cinderella story?”, “How can we find victory at the end of all this madness?”. For the answers to these questions I go back to an event that took place almost 40 years ago. It was the greatest Cinderella story in NCAA basketball history and the greatest example of how the underdog can find victory at the end of March Madness®. The date was April 4, 1983 and the event was the NCAA Basketball Championship game. Ironically, the venue for this game had been given the name “The Pit” and was in Albuquerque, New Mexico, a city with an elevation of 5200 feet above sea level. The teams who would be competing in this event

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could not have been greater polar opposites. The Houston Cougars hailed out of the Southwest Conference and had been given the name, “Phi Slama Jama” because of their athleticism and reputation for being prolific dunkers. The average height of the Cougars starting lineup was 6 feet 7 and ½ inches. They carried an impressive record of 31 wins and only 3 losses. Houston claimed the Southwest Conference Title by going undefeated in conference play with a conference record of 16-0. They carried a 26-game win streak and averaged 82.4 points per game. The North Carolina State Wolfpack emerged from the Atlantic Coast Conference (ACC) with overwhelmingly, less impressive stats. The average height of the Wolfpack starting lineup was 6 feet 5 inches and their overall record was 25 wins and 10 losses. Even worse, they carried a slightly above .500 record in their own conference with 8 wins and 6 losses. This put them in 4th place in the ACC. During one stretch of the season, the Wolfpack had lost six out of eight games. The team only averaged a lowly 69.4 points per game. For the championship game, NC State was an 8-point underdog and many believed it would be the biggest blowout in NCAA tournament history.

Ironically, despite their 8-point underdog rating, NC State took an 8-point lead into the locker room at halftime. But, as expected, Houston came out strong to start the second half and scored 10 unanswered points to take the lead 35-33. At the 3:53 mark Houston stretched their lead to six at 50-44. It seemed like the midnight buzzer was about to sound and NC State’s “Cinderella Story” was about to end. However, aware of Houston’s history of being poor free throw shooters, NC State intentionally started to foul the Cougars, putting them at the free throw line. This unorthodox strategy worked and NC State cut the lead to 2 points at the 2:25 mark, then tied the game 5252 with 1:54 remaining. Forty-nine seconds later, State fouled Houston’s freshmen guard, Alvin Franklin. Franklin missed the front end of a 1 and 1 and NC State took possession and called a timeout with 44 seconds to go in the game. Following the timeout, NC State went into a delay offense in order to hold for the last shot. With six seconds to go, Thurl Bailey made a dangerous pass to Dereck Whittenburg that was deflected by Houston’s Benny Anders. Whittenburg retrieved the ball with four seconds remaining but found himself more than 30 feet from the basket. EPI-TIADAhalf MAY2020.pdf

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7:47 AM

In desperation, Whittenburg let go of a 35-foot jump shot that fell well short of the basket but directly into the hands of NC State’s Lorenzo Charles who dunked the ball with less than 2 seconds remaining on the clock. Pandemonium ensued as the unimaginable became reality. The underdog had found a way and in the face of overwhelming odds, North Carolina State University became the 1983 NCAA Basketball Champions. Let the cutting of the nets begin! Like the NC State Wolfpack, many of us currently find ourselves facing overwhelming odds. Failure and defeat seem inevitable. The COVID-19 Pandemic that has defined the month of March in the year 2020 has undeniably produced its own form of madness. So, is there certain defeat in our future? Is it possible to come back from the deficit in which we find ourselves? Where do we turn? Does anyone have answers? Does hope still exist? Well, maybe there is something to be learned from the 1983 NC State Wolfpack. Maybe the principles they used to defeat their giants can be useful in helping us defeat ours. Although there may be others, here are seven principles to help us triumph in the face of uncertainty and find ourselves in the future cutting down the nets in victory.

CMY

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Principle 1 – They Showed Up with a Plan It was Benjamin Franklin who was given credit for first saying, “If you fail to plan, you are planning to fail!” Zig Ziglar often echoed these same words in his books and teachings. Both men understood the importance of meeting great challenges with a predetermined plan. Creating and putting in written form a strategy for defeating our current situation is crucial. Not doing so is like “playing basketball without a hoop… you don’t know what you’re shooting for.”

Principle 2 – They Played as a Team

It’s so easy in times of uncertainty and stress to attempt to place blame. Very seldom, if ever, have I seen change produced from the phrase, “It’s not fair”. Blame is the first step in creating division whether it be in countries, companies, organizations or individuals. No one individual, industry or nation can defeat the giant we face alone. It will take all of us working together and viewing each other as teammates and not as adversaries.

Principle 3 – They Stayed in the Game

Ralph Waldo Emerson once said, “Do the thing and you will have the power. But they that do not the thing, have not the power.” So often, we do not find out who we really are and what we really possess until we are placed in situations that require us to do so. It is so easy to give up and accept defeat when things look incredibly bleak. However, if we choose to remain actively involved in the process, not only is it possible to find the solution we need to overcome the current situation, but to also develop skills that allow us to seize future opportunities.

Principle 4 – They Controlled the Tempo

Although we can’t necessarily control the tempo of the events currently taking place around us, the one thing we can control is our focus. It’s crucial to remember that whatever we focus on, good or bad, will always expand. Therefore, in times of chaos and uncertainty, it is vital we monitor the questions we ask ourselves. Our brains were developed to solve problems long before Siri was born. However, if we ask ourselves defeating questions, our minds will give us defeating answers. If we ask ourselves empowering questions, our minds will provide to us solutions. Control your focus.

Principle 5 – They Were Willing to Think and Operate Outside the Box

Over time, all of us have developed a certain level of comfort when dealing with the challenges we face. In fact, we call it our “comfort zone”. It is only natural to want to live in that zone and it’s possible to do so as long as circumstances allow. Unfortunately, life seldom cooperates. Without our permission it hands us challenges that require us to step outside our current level May 2020

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of comfort in order to succeed or even survive. This is one of those times. Additionally, whether it be in terms of business, finances or health, if we are to survive and find success, we must be willing to think and operate “outside the box”. Companies and individuals who allow their comfort zones to be stretched during these uncertain times will be the ones who are still flourishing at this time next year.

Principle 6 – They Made Adjustments on the Fly

Reaffirming Mr. Emerson’s quote from Principle 3 above, many of the adjustments required to end up victorious at the end of this form of “March Madness” will need to be made spontaneously. Clearly, the events transpiring in the month of March 2020 and the effects that linger afterwards are unprecedented. Plainly, no playbook or instruction manual exists that instructs us on the actions that should be taken to provide a quick solution. We are being forced to write these as we go. Therefore, it is our active and continual involvement in making these adjustments that will generate the path to victory.

Principle 7 – They Refused to Listen to the “Experts”

When laughingly speaking of his wife, an 88-year-old retired doctor once said to me, “She believes everyone is entitled to her opinion.” Now, I know he was being humorous but in this day of the barrage of television, internet, radio and social media, that statement holds more truth than ever. Commentators, news anchors, so-called experts and even Facebook friends will be happy to fill your mind with their opinions. “Doom and Gloom” sells and you could be the one paying the price. It is important when putting out a fire to not fan the flames. Filter your intake of information. Your mind can only process a limited amount of data. What produces fear, destroys faith. In closing, I refer once again to a Ralph Waldo Emerson quote… “What lies behind us, and what lies before us are but tiny matters compared to what lies within us.” Like the underdog North Carolina State Wolfpack basketball team of 1983, let’s be victorious at the end of March Madness… let’s cut down those nets!

Dave Davlin is a professional speaker on the subjects of life skills and increasing personal and organizational performance. He is a former halftime performer for NBA teams who in 1990 set a Guinness World record for simultaneously spinning twelve basketballs on his body at the same time. Dave can be contacted by email at dave@davedavlin.com or you can follow him on Twitter @davedavlin. 33

board of directors meeting minutes April 20, 2020 | Conference Call

compiled by Texas Dealer staff

Members Present

Robert Beck, Mark Jones, Juan Sabillon, Ryan Winkelman, Eddie Hale, Brad Kalivoda, Chad Lancaster, Greg Reine, Vicki Davis, Greg Phea, Jose Engler, Robert Blankenship, and Armando Villarreal. At its meeting on Monday, April 20, 2020, TIADA took the following actions: President Robert Beck called the meeting to order at 1:06 PM.

Minutes of Last Meeting

Secretary Ryan Winkelmann presented the minutes of the last Board of Directors Meeting.

Ryann Winkelmann reported on the INDEPAC Committee. Eddie Hale presented the CPO Ad Hock Committee report.

Old Business

Paying back the reserve fund was tabled again until pre-licensing education path is more certain.

New Business

A motion was made to accept the minutes.

A motion was made to partner with NIADA regarding a Texas CPO program.

Moved by Vicki Davis, seconded by Juan Sabillon – PASSED

Moved by Mark Jones, seconded by Juan Sabillon – PASSED

Treasurer’s Report

Treasurer Eddie Hale presented the treasurer’s report.

A motion was made to accept AutoZone in the business partner program.

A motion was made to accept the report.

Moved by Eddie Hale, seconded by Vicki Davis – PASSED

Moved by Ryann Winkelmann, seconded by Mark Jones – PASSED

A motion was made to adjourn the meeting.

President’s Report

Moved by Ryann Winkelmann, seconded by Armando Villarreal – PASSED

Robert Beck reported on his recent attendance to NIADA Leadership conference in Arlington, the Bylaws Committee, and gave every board member an opportunity to report on how each one is doing personally and with their dealership.

Executive Director’s Report

Executive Director Jeff Martin reported on recent legislative visits, potential legislative opportunities during the next legislative session and gave a brief conference update.

Eddie Hale provided a FY20 budget update. He also presented the proposed FY21 budget.

Meeting adjourned at 3:36 PM. A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.

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feature

Learning From Other Dealers’ Mistakes

or a guy who doesn’t particularly like buying cars, I sure have been buying them more often than I would like. Don’t get me wrong, I don’t mind the buying, I’m just not a big fan of negotiating and haggling on the sales price. As you may know, I’m a dealer kid and grew up in our family’s dealership. Some of the friendliest and best-intentioned folks I know are in the car business. When my wife had a bad wreck recently and totaled her car (thankfully, she wasn’t seriously hurt even though the air bag never deployed in the front end collision), I was pressed into service to help buy a new family wagon. My wife went to our local franchise dealer and test drove a few cars before selecting one she liked. I had just wrapped up speaking at a local conference and was called in to test drive the car, haggle on the price and help with the purchase and financing. What I observed at this dealership in going through the sales and financing process and the mistakes they made is what drove me (no pun intended) to write this article. I mentally logged the dealer’s mistakes during the buying and financing process so you can learn from (and, I hope, not make) the same mistakes.

Mistake #1:

Not Knowing What Your Documents Say

The salesman who processed our sales paperwork asked me to sign a document stating that everything in another document was correct. This document was presented to me before I had received and had a chance to review the document I was being asked to confirm was correct. I was not about to confirm something was correct before reviewing it, so I politely declined to sign the document. Any other consumer would probably have signed this document without realizing what they were being asked to confirm.

Mistake #2:

Using Non-Compliant Documents

The salesman asked me to review and sign a noncompliant privacy notice not in the Federal Trade Commission model privacy notice form. As you may remember, in 2011, the FTC replaced its sample clauses for May 2020

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Featured Presenter by Eric Johnson

Partner Hudson Cook LLP

purposes of safe harbor protection under the GrammLeach-Bliley Act. Since then, dealers have been unable to rely on the sample clauses; privacy notices delivered or posted since then must use the new model forms to take advantage of the safe harbor. So, you could say these guys are a bit behind on their privacy notice. The salesman had no idea their form was not compliant until I brought it to his attention. And, to make matters worse for the dealer, when I brought this to the attention of the F&I guy handling our paperwork, he simply said “yeah, I know.” Well, that certainly escalated quickly; now they have a “knowing and intentional” violation. He mentioned that he was previously certified with AFIP, but isn’t any longer. He knows better.

Mistake #3:

Not Providing Copies of Signed Documents to Your Customers

I was asked to sign an Arbitration Agreement at the salesman’s desk to go along with the Purchase Agreement, without any explanation of what I was signing, why I was being asked to sign it or what the Agreement did. To complicate matters, I was never given a copy of it at closing. I didn’t press the issue because I knew what I was signing (and have copies of this document in my files), but I should’ve been given a copy of this Agreement and every other document I signed at closing. Instead, I was given copies of only the Purchase Agreement and the “requirement to maintain insurance” agreement. By not giving a copy of all signed documents to the customer, this dealership created the situation where a customer will have to call or come back in to get those copies. If a consumer has a problem and gets mad enough, often times those document requests come from a plaintiff ’s attorney, legal aid, the dealer’s regulator or the state Attorney General.

Mistake #4:

Privacy and Environmental Issues

After signing the purchase documents, we were escorted to the F&I office; a little room towards the back of 35

the store with no breeze nor windows. You can see why some call the F&I office the “box.” The room was situated on a corner, in a high traffic area and very noisy. Another dealership employee not involved in our purchase kept going in and out of the room, interrupting the F&I process to ask questions of our F&I guy because his work station printer wasn’t working. The environment was not exactly conducive to a private conversation about our financing options nor was it one in which it was easy to concentrate on the conversation. If I’m a customer who’s going to later challenge the documents I signed and/or my understanding of what we may have purchased during the F&I process, I’m sure as heck going to raise some of these issues in my arguments. In addition, our F&I guy took a very personal call during the process and had the other caller on speaker so we could all listen in on the conversation. Not once did he tell the other caller she was on speaker and that we were in the room. If he was this flippant about the other caller’s privacy, I shudder to think about how he may handle the privacy rights of the dealership’s customers.

Mistake #5:

F&I Products and Menu Presentation

Our F&I guy did not outline the available F&I products available for purchase and/or financing nor did he

present them to me in a menu selling document. I’ll admit, I had made it pretty clear that we were cash buyers and weren’t really interested in any of the F&I products they may have to sell, but all of the products they sell still should’ve been offered to us in a menu selling document.

Mistake #6:

Know What You’re Selling (and Buying)

I’ll admit, the dealer’s last mistake is probably on me just as much as it was on them. They printed the wrong year of the car we bought on the Purchase Agreement and the other ancillary documents. In my rush to get our new car home after a very long day at work, I just flat-out missed it. I only noticed it later when I compared the year on the manufacturer’s manuals in the glove box with the year noted on the Purchase Agreement. Once I brought this mistake to their attention, the dealership folks were very quick to rectify it. I have to wonder though, if I hadn’t noticed it, how long would it have taken them to catch it? If I went by their privacy notice standards on using a form that’s over 8 years out of date, I’m guessing it would’ve taken a while. That mistake could’ve cost us money at the tag office when registering the car, and if it had carried through to the Certificate of Title, it would’ve been a headache that neither I nor the dealer would need. As some might say, “yes, mistakes were made that day.” Are they all correctable with very little effort and little expense on the dealer’s part? You betcha. Had this dealer taken steps to have their documents reviewed by knowledgeable counsel, the document mistakes could easily have been noted and corrected. A basic deal jacket review would have picked up the issues. In addition, a walk-through of their closing and F&I process would probably shine the light on the dealer’s other mistakes. You’re never too old to learn from your mistakes. Are you sure you’re not making the same or worse mistakes at your dealership? Learn from this dealer’s mistakes and take steps to correct them now before I show up at your dealership and add another car to my growing collection. And before that mystery shopper from the Attorney General’s office comes through the door. Eric L. Johnson is a partner in the Oklahoma City, OK office of Hudson Cook, LLP. Eric can be reached at (405) 602-3812 or ejohnson@hudco.com. This article is provided for informational purposes and is not intended nor should it be taken as legal advice. Copyright © 2020 CounselorLibrary.com LLC. All rights reserved. This article appeared in Spot Delivery®. Reprinted with express permission from CounselorLibrary.com.

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feature

10 Tips for Empathetic Marketing During a Pandemic

Featured Presenter by Lindsay Shearon Dealer Consultant Dealer OMG

o one knows what is going on right now and that’s OK. We are all going to get through this uncertain time together. And if all goes well, we will even come out of it more refined, innovative dealership owners and employees. But in the meantime, let’s discuss some ways that we can be effective in our response to the COVID19 crisis right now, in the short term, and in the long term.

Community-First, Empathetic Messaging

Be clear, honest, and empathetic with your ad copy. Communicate any specials you might be offering during this time and how you hope they will help alleviate your customers’ financial woes. Be specific as to how your team is taking extra steps to keep the dealership environment sanitized. People are getting quickly desensitized to hearing businesses say they are taking “every precaution” to keep customers and staff safe, so specificity in your messaging will enhance trust with the customers.

Customer Convenience Through Digital

Keep customer convenience at the forefront of every decision you make at your store right now. Facebook is seeing a massive uptick in the use of their messenger platforms right now. So, if you have to, give access to your Facebook page to more employees than you usually would to assist in quickly responding to all inquiries coming through your Facebook page and Instagram account.

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Set Realistic Expectations

Communication is key right now. Give customers realistic timelines for your products and services if you have evolved them to cater to pick up, delivery, and online purchasing.

Think Outside the Box With Your Sources of Revenue

Typically, we don’t see independent auto advertisers put too much emphasis on marketing areas of their business outside of sales. But at a time like this, keeping their car running might be a more realistic investment to most customers than the idea of taking on a new loan under the current economic climate. Especially when so many people are sitting at home and not driving as frequently as they usually would be. This is the perfect time for people to be without their car for a day or two

without it hindering their day-today activities.

Video is Still King on Social Media

Now more than ever, people are looking for entertainment and distraction so it’s a good time to crank out some quality social media video content to use during the pandemic or down the road when things return to normal. Explaining in text all the things you are doing to keep your dealership and vehicles sanitized is great, but if you have the time, why not take it to the next level with a video of your staff sanitizing a few prime pieces of inventory?

Stay Aware of Evolving Legislation/ Regulation

Follow resources on various state and national levels such as TIADA, NIADA, and other governmental 37

agencies like the economic development offices in your area.

Take Supply-Chain Into Consideration

Start fishing outside of your regular ponds. Chances are that dealers might have a little more time right now than a usual busy day at the dealership. Take advantage of that time to research the inventory at more auctions than the ones you regularly buy at. The residual effects of how you use this down time can have positive long-term effects on your business if you do. Also, we still don’t know exactly how long all this could last and what the longterm effects could be. So, if one of your suppliers isn’t as viable of an option down the road for whatever reason, not having all your eggs in one basket is always encouraged.

What Are You Doing For the Community?

While most dealers are focused on just keeping their business afloat right now, which is completely understandable, if any individual employees or the organization as a whole is supporting the community in a way that doesn’t directly benefit your business, now is the time to let people know! If you are supporting a local medical practice, hospital, etc. in any way during this time, let people know how they can help too and spread goodwill.

Keep the Operational Changes You Made in Response to the Pandemic that are Feasible We tend to be resistant to change, but now that we have been forced to do so, you might as well evaluate what parts of the new version of your services are possible to keep

after this is all over. Once customers get a taste of things like pickup/delivery service or being able to handle all the transactions online, rather than spending an hour after their purchase in the finance department, it’s going to be difficult to get them to go back. Start preparing for this now.

Think LONG TERM

Remember that how your business is perceived in the community during this time will likely have a major impact on your brand image for years to come. Communicate to customers what you are doing to take care of your staff as well as your customers.

Lindsay Shearon 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.

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Ignorance is no defense. Know the law. Repo and financing issues are among the most common violations found by the OCCC. If you own a previous edition of these books from 2008 or earlier, it is recommended that you upgrade to the current editions.

Dealer Financing of Used Car Sales This comprehensive book covers all aspects of the complicated world of seller-financing in Texas, including Maximum Finance Rates; Retail Installment Contracts; Contract Amendments; VIT; Repair Charges; Federal Disclosures and more.

TIADA Member Price: $125 (non-members $175)

Texas Automobile Repossession: A Lien Holder’s Legal Guide Everything you need to know about repossessions is addressed in this book, including Notification Requirements, Post-Repo Procedures, Private Sale vs. Strict Foreclosure, Bankruptcy, Post-Disposition Accounting, Tracking and Shut-off Devices, the 60% Rule and more. PLUS – includes all required forms.

TIADA Member Price: $125 (non-members $175)

TIADA

Now available for purchase online at www.txiada.org under “Legal Resources” or call 512.244.6060 to order by phone. When ordering online, login with your TIADA username and password to receive the discounted rate. All prices include shipping. Orders are shipped in 3-5 business days. texas independent automobile dealers association

Attorney Michael W. Dunagan is the author of the two must-have books for every Buy-Here, Pay-Here dealer in Texas. Mr. Dunagan has been General Counsel to TIADA for over 40 years. His law firm specializes in the representation of independent Texas car dealers.

TIADA texas independent automobile dealers association

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May 2020

Please Welcome Our Newest TIADA Members DEALER MEMBERS

AVIS Car Sales - San Antonio

Geoff Hartman . . . . . . . . . . . . . . . . . . . . . . . . . . . 12514 N. Hwy I-35, Live Oak, TX 78233

Bacliff Auto

Daniel Delgadillo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510 Grande Ave, Bacliff, TX 77518

Driven Autoplex

Kevin Lindsey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4201 Wild Plum, Carrollton, TX 75010

Houston Auto Connection

Mohammed Hoque . . . . . . . . . . . . . . . . . . . . . 7134 Bellfort St, Ste D, Houston, TX 77087

JMS Auto Sales, Inc.

Jose Sandoval . . . . . . . . . . . . . . . . . . . . . . . 504 Spencer Hwy, South Houston, TX 77507

Lacy Autos

Mark Blancett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425 New Dallas Hwy, Waco, TX 76705

Modisette Welding & Supply, LLC

Kyle Modisette . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PO BOX 2977, Kilgore, TX 75663

OPA Autos

Olusegun Phillips-Alonge . . . . . . . . . . . . . . . . 3320 Silver Creek Dr, Mesquite, TX 75181

ASSOCIATE MEMBERS

CMOR Solutions, LLC

Corey Morrissey . . . . . . . . . . . . . . . 10655 Six Pines Dr #215, The Woodlands, TX 77380

SpectrumVoIP

David Stephenson . . . . . . . . . . . . . 7600 Windrose Avenue, Suite 350, Plano, TX 75024

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 May 2020

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

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

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

FORMS Burrell Printing 800.252.9154 www.burrellprinting.com

behind the wheel

by Jeff

Martin

Beyond the Coronavirus

TIADA EXECUTIVE DIRECTOR

hen we started planning this issue of the It’s rare that I publicly acknowledge the extraordinary Texas Dealer months ago, we had a few ideas work our team at TIADA does. That’s because we set exfor the cover, the Officers’ Message, this tremely high expectations and we work every day to try article and the layout for the conference spread found and exceed those expectations. However, there are times on page 24. Then local counties and cities started to iswhen people go above and beyond, and they should cersue various shelter-in-place orders and the coronavirus tainly be recognized for their efforts to serve our membrought much of the state to a standstill. This all posed bers. Sheila Andrews, Mike Dunagan, Cristina Fowler, a huge challenge for the Texas automobile Patty Huber, Mario Martinez, Teresa industry and TIADA was no exception, Orkun, Claudia Rojo and Jen Wilcox — we have been working remotely trying to we are a better association because of make sense of it for our members and we these people. I also want to give a tip of literally started working round-the-clock the hat to NIADA for their leadership and to build a COVID-19 webpage with cororepresentation in Washington DC. Sorting navirus updates free to everyone. We also out the SBA loans and being a voice for our and the Independent scrapped the April cover story in the midmembers has been invaluable. TIADA Dealer dle of laying out the magazine in an effort Covering a crisis as fast moving as this TIADA to get more relevant information in your one presents inherent challenges for a print hands (I hope you enjoyed last month’s magazine and this one is no exception. But cover story). While the focus of our blogs we know our readers don’t make a living and weekly email stayed true to compliby COVID-19 updates alone. Our goal is ance and industry updates, providing accurate, qualto find that perfect balance of providing good, quality ity information became a challenge. Not only was the information related to the pandemic that will help you information coming from new sources, it was changing navigate this trying time while keeping a healthy respect every thirty-minutes. for the rest of the industry and providing articles related Getting all that information online through the new to all the other aspects of running your business. webpage in short order took a true team effort from evI hope you enjoy this issue and hope you will share eryone here at TIADA. Swapping out last month’s cover your experiences with me at the email provided below. story of the Texas Dealer and tweaking this month’s We learn the most by listening to our members and durissue has been nothing short of heroic. And writing, reing this time of uncertainty is no different. We may not writing and then re-writing again the blogs and member be able to see you at the auctions, education programs emails over the last two months has created some early and chapter meetings, but we want you to know we are mornings and late evening for us. No matter what time here for you and we are ready to serve. This has always of day or night we received new information, we scrambeen a member-owned, member-governed association ble around at all hours to get that information in the and it always will be — no matter where you shelter. hands of our members. All this while operating from our new “work” locations that we used to just call “home”. Jeff.martin@txiada.org

COVID-19

texas independent automobile dealers association

For the most up-to-date information related to COVID-19 and impacting independen how it is t dealers to www.txiada.org/covid-1go 9

T e x a s

D e a l e r

May 2020

TEXAS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750

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At this time we would like to take a moment to send a heartfelt thank you to our dealers, financial institutions, auction employees and all of our affiliates. You have each gone above and beyond as a community in this time of need. Americaâ&#x20AC;&#x2122;s Auto Auction is appreciative of the support, and understanding, as we all traverse this uncharted territory full of government mandates and cautions. You have played an integral role in our sales transitioning smoothly to online sales, and we appreciate each and every one of you. Thank you!