TEXAS INDEPENDENT DEALERS Leading the Way in Their Communities
Also in this issue: – Michael W. Dunagan: Bankruptcy Basics for Car Creditors: Separating Fact from Fiction – Navigating the Transformation: Google’s Phasing Out of Third-Party Cookies – 9 Steps for Hiring and Retaining Talent at Your Dealership – The Right to Repair: Empowering Consumers and Lowering Auto Repair Costs
Plus
– Temporary Tags Force a Hard Look at Regulatory Oversight in Texas pg.25
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TIADA Board of Directors PRESIDENT Eddie Hale/Neighborhood Autos PO Box 1719 Decatur TX 76234 PRESIDENT ELECT Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 CHAIRMAN OF THE BOARD Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 SECRETARY Greg Phea/Austin Rising Fast 8024 IH 35 North Austin TX 78753 TREASURER Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 ICE PRESIDENT, WEST TEXAS V (REGION 1) Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915 ICE PRESIDENT, FORT WORTH V (REGION 2) Tyler Simmons/Abilene Used Car Sales, Inc. 2150 N. 1st Street Abilene, TX 79603 ICE PRESIDENT, DALLAS V (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas TX 75237 ICE PRESIDENT, HOUSTON V (REGION 4) Lowell Rogers/11th Street Motors 1355 N 11th St, Beaumont, TX 77702 ICE PRESIDENT, CENTRAL TEXAS V (REGION 5) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas TX 75218 ICE PRESIDENT, SOUTH TEXAS V (REGION 6) Cesar Torres/Lofi Motors 4634 Ayers St. Corpus Christi, TX 78415 ICE PRESIDENT AT LARGE V Armando Villarreal/McAllen Auto Sales, LLC 4215 S. 23rd St McAllen, TX 78503 ICE PRESIDENT AT LARGE V Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301
TIADA EXECUTIVE DIRECTOR John Frullo 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 john.frullo@txiada.org
Volume XXIII / Is sue 11 / November 2023
TexasDealer
contents
4 Officers’ Message by Greg Phea, TIADA Secretary
6 TIADA Membership Application 10 TIADA Auction Directory 13 Legal Corner: Bankruptcy Basics for Car Creditors: Separating Fact from Fiction by Michael W. Dunagan
14 Upcoming Events 16 Local Chapters 17 Save the Date: 2024 TIADA Conference & Expo 19 Navigating the Transformation: Google’s Phasing Out of Third-Party Cookies and Its Impact on Independent Automobile Dealers by Stephen Pallas
25 Temporary Tags Force a Hard Look at Regulatory Oversight in Texas by Stephen Pallas
27 New Members 31 9 Steps for Hiring and Retaining Talent at Your Dealership by DealerTrack
33 The Right to Repair: Empowering Consumers and Lowering Auto Repair Costs by TIADA Staff
38 On The Cover: Texas Independent Dealers Leading the Way in Their Communities by TIADA Staff
46 Behind the Wheel by John Frullo
Did You Know?You can renew your TIADA
membership for 2024 starting this month. Just login to your account, check your membership expiration date below your name on the left column and if it says that your membership expires in 2023 then click on the “Renew Your Membership” button. 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: Stephen Pallas
Magazine Ad Sales: Patty Huber, 512-310-9795
officers’ message by Greg Phea
Affordable Electric Cars Transforming Texas Roads
I
ndependent automobile dealers in Texas are adapting to changing consumer preferences and environmental concerns. As people are becoming more environmentally conscious, there is a rising demand for eco-friendly transportation. Dealerships are recognizing this trend and are seizing the opportunity to offer used plug-in electric vehicles (PEVs) to their customers. These PEVs not only provide an eco-friendly alternative to traditional gas-powered vehicles but also align perfectly with Texas’ focus on renewable energy sources. Furthermore, the state’s commitment to sustainable practices is mirrored in the form of potential tax incentives for electric vehicle purchases, making these cars an economically viable choice for the budget-conscious consumer. This combination of affordability and environmental consciousness is propelling a paradigm shift in the way people approach transportation. What sets these used PEVs apart is their embodiment of cutting-edge automotive technology. Equipped with advanced battery systems and regenerative braking capabilities, these vehicles represent the pinnacle of innovation in the industry. Independent dealers, cognizant of the importance of staying ahead in the technological race, are integrating these state-of-the-art vehicles into their inventories. By doing so, they are not merely selling cars; they are offering a glimpse into the future of transportation.
Austin Rising Fast (Austin) TIADA SECRETARY
Moreover, these forward-thinking dealerships understand the diversity of transportation needs within the state. From bustling urban centers to rural expanses, the demand for different types of vehicles varies greatly. This awareness has led to a curated selection of used PEVs, ranging from compact electric cars ideal for city commuters to spacious electric SUVs tailored for families. This diversity ensures that every consumer, regardless of their lifestyle, finds a suitable and sustainable option. As Texas witnesses a proliferation of electric vehicle charging infrastructure, the once prevalent concern of limited range is dissipating. Dealerships are actively supporting this infrastructure development, bolstering the confidence of potential buyers. With charging stations becoming more accessible across the state, the prospect of electric vehicle ownership is transitioning from a novelty to a practical reality for many consumers. The integration of used plug-in electric vehicles into the inventories of independent dealerships in Texas signifies more than just a business decision; it embodies a commitment to environmental stewardship, technological progress, and meeting the diverse needs of consumers. These dealerships are not just adapting to change; they are driving it, steering the state toward a future where sustainable, innovative, and accessible transportation takes center stage.
With charging stations becoming more accessible across the state, the prospect of electric vehicle ownership is transitioning from a novelty to a practical reality. 4
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October 2023
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TIADA texas independent automobile dealers association
Become a TIADA Member
TIADA texas independent automobile dealers association
Business Name: ____________________________________________ Select one:
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PLEASE INDICATE PAYMENT METHOD: Check or Money Order payable to TIADA Check # __________ Credit Card Card Number: __________________________________________________ Sec.Code: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Expiration Date: ____________ Monthly Payments - $41.58 per month Via Credit Card (Please enter card information above)
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Dues are not deductible as charitable contributions for income tax purposes but may be deductible as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20 percent of your dues dollars is used for lobbying activities and is therefore not deductible.
6
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November 2023
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Have a cup of coffee on us. Actually, have 4 cups. Recruit a new member and we will send you a $10 gift card — and we’ll do that for the first 4 members you recruit.
Receive top-notch education. Recruit 5 new members by June 30th and you will receive one free registration to the 2024 TIADA Conference & Expo.
JULY 21-23, 2024 SAN ANTONIO, TX
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Relax with the family and turn work into pleasure. Recruit 10 new members by June 30th and you will also receive your hotel room for free (up to two nights) at the JW Marriott Hill Country Resort in San Antonio during the TIADA conference.
Travel to Vegas, Orlando or somewhere else! Recruit 20 members and you will receive an all-expense trip for you and a guest to attend 2025 NIADA Convention & Expo.
* This promotion is only valid for active dealer members.
Contact TIADA for details.
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Abilene
IAA AUSTIN*
IAA DALLAS*
www.allianceautoauction.com 6657 US Highway 80 West, Abilene, TX 79605 325.698.4391 GM: Brandon Denison Friday, 9:45 a.m.
$AVE : up to $200 Sell Fee
$AVE : up to $200 Sell Fee
ALLIANCE AUTO AUCTION ABILENE**
$AVE : $200
IAA ABILENE*
www.iaai.com 7700 US 277, Hawley, TX 79601 325.675.0699 GM: Shaun Lemke Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Amarillo
DAX of AMARILLO** NEW
www.daxofamarillo.com 3208 SE 10th Ave., Amarillo, TX 79104 806.374.8982 GM: Kelsy Allen Every Tuesday, 11:00 a.m.
$AVE : $200
IAA AMARILLO*
www.iaai.com 11150 S. FM 1541, Amarillo, TX 79118 806.622.1322 GM: Shawn Norris Monday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Austin
ADESA AUSTIN**
www.adesa.com 2108 Ferguson Ln., Austin, TX 78754 512.873.4000 GM: Michele Arguijo Tuesday, 9:30 a.m.
$AVE : $200
ALLIANCE AUTO AUCTION AUSTIN**
www.iaai.com 204 Mars Rd., Wilmer, TX 75172 972.525.6401 GM: Terrie Smith Wednesday, 9:30 a.m.
METRO AUTO AUCTION AUSTIN
IAA DFW*
$AVE : $200
$AVE : up to $200 Sell Fee
www.metroautoauction.com 2221 Hwy 21 W., Dale, TX 78616 512.282.7900 GM: Brent Rhodes 3rd Saturday monthly, 9:00 a.m.
www.iaai.com 4226 East Main St., Grand Prairie, TX 75050 972.522.5000 GM: Julissa Reyes Monday, 9:30 a.m.
Corpus Christi
IAA FORT WORTH NORTH*
www.corpuschristiautoauction.com 2149 IH-69 Access Road, Corpus Christi, TX 78380 361.767.4100 GM: Hunter Dunn Friday, 10:00 a.m.
$AVE : up to $200 Sell Fee
CORPUS CHRISTI AUTO AUCTION**
$AVE : $200
IAA CORPUS CHRISTI*
www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555 GM: Patricia Kohlstrand Wednesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Dallas-Ft. Worth Metroplex ADESA DALLAS**
www.adesa.com 3501 Lancaster-Hutchins Rd., Hutchins, TX 75141 972.225.6000 GM: Eric Jenkins Thursday, 9:30 a.m.
$AVE : $200
ALLIANCE AUTO AUCTION DALLAS**
www.allianceautoauction.com 1550 CR 107, Hutto, TX 78634 737.300.6300 GM: Brad Wilson Thursday, 9:15 a.m.
www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136 GM: Robert Kersh Wednesday, 12:30 p.m.
$AVE : $200
$AVE : $200
AMERICA’S AA AUSTIN**
AMERICA’S AA DALLAS**
$AVE : $200
$AVE : $200
www.americasaa.com 16611 S. IH-35, Buda, TX 78610 512.268.6600 GM: Jamie McCollum Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.
www.americasaa.com 219 N. Loop 12, Irving, TX 75061 972.445.1044 GM: Ruben Figueroa Tuesday, 12:00 p.m. / Thursday, 12:30 p.m.
www.iaai.com 3748 McPherson Dr., Justin, TX 76247 940.648.5541 GM: Jack Panczyk Tuesday, 9:30 a.m.
MANHEIM DALLAS**
www.manheim.com 5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800 GM: Rich Curtis Tuesday 9:30am / Wednesday, 9:00 a.m.
$AVE : $100
MANHEIM DALLAS FORT WORTH**
www.manheim.com 12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000 GM: Glenna Bishop Thursday, 9:30 a.m.
$AVE : $100
METRO AUTO AUCTION DALLAS**
www.metroaa.com 1836 Midway Road, Lewisville, TX 75056 972.492.0900 GM: Scott Stalder Tuesday, 9:30 a.m.
$AVE : $200
El Paso AMERICA’S AUTO AUCTION EL PASO www.aaaelpaso.com 7930 Artcraft Rd., El Paso, TX 79932 915.587.6700 GM: Judith Ayub Wednesday, 9:30 a.m. MST
$AVE : $200
AMERICA’S AA LONE STAR AUSTIN NEW
DAX of ROCKWALL** NEW
IAA EL PASO*
$AVE : $200
$AVE : $200
$AVE : up to $200 Sell Fee
www.americasaa.com 8408 Shoal Creek Blvd., Austin, TX 78757 214.483.3597 GM: Sara Edgington Friday and Every Other Thursday, 11:00 a.m. 10
www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126 GM: Rick Hahn Tuesday, 9:30 a.m.
www.daxofrockwall.com 1810 E I-30, Rockwall, TX 75087 972.771.9919 GM: Tim Clement Tuesday, 6:00 p.m. / Thursday, 2:00 p.m.
www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489 GM: Hector Escobar Wednesday, 9:30 a.m. MST T e x a s
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November 2023
MANHEIM EL PASO**
www.manheim.com 485 Coates Drive, El Paso, TX 79932 915.833.9333 GM: JD Guerrero Thursday, 10:00 a.m. MST
$AVE : $100
IAA HOUSTON SOUTH*
www.iaai.com 2839 E. FM 1462, Rosharon, TX 77583 281.369.1010 GM: Roxy Castillo Friday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Harlingen/McAllen
MANHEIM HOUSTON**
IAA McALLEN*
www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393 GM: Ydalia Sandoval Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
BIG VALLEY AUTO AUCTION**
www.manheim.com 14450 West Road, Houston, TX 77041 281.890.4300 GM: Brian Walker Tuesday, 9:30 a.m.
$AVE : $100
MANHEIM TEXAS HOBBY**
www.bigvalleyaa.com 4315 N. Hutto Road, Donna, TX 78537 956.461.9000 GM: Lisa Franz Thursday, 9:30 a.m.
www.manheim.com 8215 Kopman Road, Houston, TX 77061 713.649.8233 GM: Darren Slack Thursday, 9:00 a.m.
Houston
Longview
www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800 GM: Keyvan Nayeri Wednesday, 9:30 a.m.
www.allianceautoauction.com 6000 SE Loop 281, Longview, TX 75602 903.212.2955 GM: Billy Fitzgerald Friday, 9:30 a.m.
$AVE : $200
ADESA HOUSTON**
$AVE : $200
$AVE : $100
ALLIANCE AUTO AUCTION LONGVIEW**
$AVE : $200
AMERICA’S AA HOUSTON**
www.americasaa.com 1826 Almeda Genoa Rd., Houston, TX 77047 281.819.3600 GM: Buddy Cheney Thursday, 2:00 p.m.
$AVE : $200
AMERICA’S AA NORTH HOUSTON** www.americasaa.com 1440 FM 3083, Conroe, TX 77301 936.441.2882 GM: Buddy Cheney Tuesday, 1:00 p.m.
$AVE : $200
AUTONATION AUTO AUCTION - HOUSTON** www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 855.905.2622 GM: Juan Gallo Friday, 9:15 a.m.
$AVE : $200
HOUSTON AUTO AUCTION**
www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566 GM: Rich Levene Tuesday, 12:00 p.m.
$AVE : $200
IAA HOUSTON*
www.iaai.com 2535 West. Mt. Houston, Houston, TX 77038 281.847.4700 GM: Alvin Banks Wednesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA LONGVIEW*
www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248 GM: Ulysses Else Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Lubbock AMERICAS AA LONE STAR LUBBOCK** www.americasaa.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 GM: Dale Martin Wednesday, 9:00 a.m
$AVE : $75/Quarterly
IAA LUBBOCK*
www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458 GM: Chris Foster Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Lufkin LUFKIN DEALERS AUTO AUCTION
www.lufkindealers.com 2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299 GM: Wayne Cook Thursday, 5:30 p.m.
$AVE : up to $200 Sell Fee
$AVE : up to $200 Sell Fee
T e x a s
D e a l e r
www.adesa.com 200 S. Callaghan Rd., San Antonio, TX 78227 210.434.4999 GM: Clifton Sprenger Thursday, 9:00 a.m.
$AVE : $200
IAA SAN ANTONIO*
www.iaai.com 11275 S. Zarzamora, San Antonio, TX 78224 210.628.6770 GM: Paula Booker Monday, 9:30 a.m.
$AVE : up to $200 Sell Fee
MANHEIM SAN ANTONIO**
www.manheim.com 2042 Ackerman Road, San Antonio, TX 78219 210.661.4200 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, 9:00 a.m
$AVE : $200
Tyler GREATER TYLER AUTO AUCTION** www.greatertyleraa.com 11654 Hwy 64W, Tyler, TX 75704 903.597.2800 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 GM: Christina Thomas Friday, 9:45 a.m.
$AVE : $200
Wichita Falls
DAX of WICHITA FALLS** NEW
www.daxofwichitafalls.com 2206 Sheppard Access Rd., Wichita Falls, TX 76306 940.720.0435 GM: Lisa Shelton Every Other Wednesday, 5:00 p.m.
$AVE : $200
Midland Odessa IAA PERMIAN BASIN*
November 2023
ADESA SAN ANTONIO**
$AVE : $200
IAA HOUSTON NORTH*
www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300 GM: Aracelia Palacios Thursday, 9:30 a.m.
San Antonio
www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277 GM: Sheila Gray Thursday, 9:30 a.m. 11
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12
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November 2023
legal corner Bankruptcy Basics for Car Creditors: Separating Fact from Fiction
W
e’ve recently noticed an uptick in the number of consumer bankruptcy cases (mostly Chapter 13s) being filed involving our car-creditor clients. We saw fewer cases being filed during the pandemic as creditors scaled back their collection activities and repossessions. Recent higher interest rates have certainly added to the strain on debtor finances, and thus have no doubt contributed to the recent uptick in filings. We still get calls from dealers, finance companies, and credit unions who are experiencing their first bankruptcies, and don’t always understand what their rights and obligations are. This article attempts to summarize some of the more common issues car creditors face, and to debunk some of the more common myths that abound in the sub-prime finance world.
Myth: Until a creditor receives official notice from the Bankruptcy Court that a debtor has filed bankruptcy, that creditor is under no obligation to pay attention to the bankruptcy filing, and can handle the debtor as any other debtor. Fact: The courts have held that any notice is actual notice. From the moment a bankruptcy case is filed, the Automatic Stay is in existence and applies to every claimant and creditor of the debtor. The stay prohibits any creditor from commencing or continuing any collection activity against the debtor, including repossessing collateral or disposing of collateral that has already been November 2023
T e x a s
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by Michael W.
Dunagan TIADA COUNSEL
If a creditor takes action with actual notice (actual notice can come from the bankruptcy court, the debtor, or the debtor’s attorney) of the bankruptcy filing, the creditor is in violation of the automatic stay and is subject to sanctions. repossessed. If a creditor takes action with actual notice (actual notice can come from the bankruptcy court, the debtor, or the debtor’s attorney) of the bankruptcy filing, the creditor is in violation of the automatic stay and is subject to sanctions. Don’t make the mistake one car creditor did in ignoring a hand-written notice delivered by the debtor on yellow-pad paper. The judge made it clear after the creditor was arrested that the informal notice was actual notice. We’ve also seen fines and penalties as high as $35,000 for certain violations of a bankruptcy stay.
bankruptcy. Car creditors often are informed by debtors that the creditors are being excluded. What this usually means is that the debtor has chosen to “pay direct” or honor the terms of the contract instead of delaying, reducing, or “cramming down” the debt. Being classified as a “pay direct” does not exclude the creditor from the bankruptcy case. All creditors are subject to the bankruptcy stay and must obtain permission from the bankruptcy court to take any collection action, even if the debtor defaults.
Myth: Being “excluded” from the bankruptcy allows a creditor to repossess despite the presence of a bankruptcy filing.
prior to the debtor filing bankruptcy protects the creditor from being affected by the bankruptcy.
Fact: There is no such thing as
a creditor being excluded from a
Myth: Repossessing collateral
Fact: If the creditor (1) repossesses collateral, (2) sends appropriate post-repossession notice, 13
Upcoming Events TIADA DEALER ACADEMY For online registration and information, see www.txiada.org
December 2023
4 Keeping Your BHPH Dealership Legal and Compliant Sheraton Houston Brookhollow 3000 North Loop West Houston, TX 77092 713.688.0100
OTHER TIADA EVENTS
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29 Board of Directors Meeting Austin, TX
April
29 Board of Directors Meeting Austin, TX
July 21 Board of Directors Meeting
JW Marriott Hill Country Resort San Antonio, TX
21-23 TIADA Conference and Expo JW Marriott Hill Country Resort San Antonio, TX
14
(3) waits the appropriate time period, and (4) legally disposes of the collateral, all before the debtor files bankruptcy, the creditor is under no obligation. If, however, all of the above have not been completed prior to the bankruptcy filing, then the automatic stay will impact the creditor. We find that debtors and their attorneys often run out and file just before the 20-day holding period on a strict foreclosure, or the usual 10-day holding period on a private sale, expire. Absent some unusual circumstances (check with your attorney) the vehicle may have to be returned, and relief will usually have to be sought through the bankruptcy court. The 2021 U.S. Supreme Court decision in The City of Chicago v. Fulton held that a car creditor who repossesses prior to bankruptcy filing is not in violation of the automatic stay for merely refusing to immediately return the vehicle. But the creditor can’t sell or otherwise dispose of the collateral without court permission. Also, the bankruptcy court probably will, at the request of the debtor, order the return of the collateral. See Texas Dealer, “Bankruptcy Filed After Repossession: New Supreme Court case offers Guidance” (June, 2022) for a more detailed discussion of the effect of the Fulton case.
Myth: If the debtor files bankruptcy within a certain time after purchasing a vehicle, or has filed previously, the car creditor is immune from the bankruptcy. Fact: Amendments to the
Bankruptcy Code have created certain presumptions with regard to repeat filings and recent purchases that limit the scope of the bankruptcy stay in Chapter 13 cases. However, these presumptions can be overcome by the debtor filing a request for relief with the bankruptcy court. Courts routinely grant relief to the debtor unless the relief
is challenged by a creditor. For example, in a Chapter 13 bankruptcy filed within one year of the dismissal of an earlier case, the automatic stay will terminate 30 days after the filing, unless the debtor demonstrates that the second case was filed in good faith with respect to the creditor against whom the stay is sought. In a second repeat filing within the one-year period, the automatic stay will not go into effect. Again, if the debtor can establish good faith, the court can still impose the automatic stay against a creditor. We’ve found that judges are quite liberal in granting relief to debtors under these circumstances. Another factor that has made Chapter 13 bankruptcies problematic for car creditors in the past, has been the so-called “cram down” of the creditor’s secured position to the fair market value of the collateral. That is, the indebtedness owed to the car creditor has been “crammed down” to the fair-market value of the car, with any additional indebtedness being treated as unsecured debt. Currently, a purchase-money security interest in a motor vehicle purchased within two-and-a-half years (910 days) prior to the bankruptcy filing isn’t supposed to be crammed down. Thus, a Chapter 13 plan should provide for repayment of the entire indebtedness, regardless of the fair market value. However, we have seen debtor plans filed that do attempt to cram down the amount of the debt. These plans are often approved unless specifically objected to on the basis of the 910-day rule. Also, repayment of the indebtedness can still be spread over five years at a reduced interest rate, and delayed until after certain administrative expenses (such as fees to the debtor’s attorney) are paid. We have seen cases where the debtor consulted with a bankruptcy attorney just prior to buying a vehicle, then filed bankruptcy immediately after the purchase. We can only assume that some debtors are being T e x a s
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November 2023
advised to purchase vehicles with the intent of filing bankruptcy.
Myth: The bankruptcy judge and trustee will protect the rights of the creditor in a bankruptcy action. Fact: The judge is a neutral
party who can’t take a position of advocacy for the debtor or creditor. Rulings are made based on motions and information presented to the court. The trustee is likewise not in a position to represent or advocate for one party of the other. The fact is that a creditor has the burden to look out for its own interests. Chapter 13 is a debtor-driven system. Almost every significant step in the bankruptcyprocess is initiated by the debtor or the debtor’s attorney. The trustee handles a large volume of cases, and its primary function is to distribute money coming into the bankruptcy as provided by the court. Thus, a creditor must
invest the time and expense to intervene if a debtor‘s proposal is to be challenged. Otherwise, the debtor’s objectives are routinely accepted and approved.
Myth: Once an individual files bankruptcy, he or she can’t refile for a lengthy period of time, making a prior bankrupt a good credit risk. Fact: Individuals can and do file on a repeat basis. While there are limitations on the number of discharges a debtor can receive in a given period of time, there are no such limits on filing. And it is the filing that creates the automatic stay, which is so devastating to car creditors. With some bankruptcy debtors, it’s just a matter of time before the next case is filed. Myth: If a debtor in bankruptcy lets insurance on the vehicle lapse, I can repossess despite the bankruptcy.
Fact: The contractual insurance requirement can be enforced in bankruptcy, but only with the permission of the bankruptcy court. It would be a violation of the bankruptcy automatic stay to repossess without court authorization. And once bankruptcy is filed, the creditor should not contact the debtor directly to demand insurance coverage, but should contact the debtor’s attorney. Myth: Since most motor vehicle retail installment contracts provide that the filing of a bankruptcy by the debtor is a condition of default, the creditor can repossess without having to obtain permission of the court. Fact: The debtor would be in default under the contract for filing bankruptcy, but the automatic stay still trumps the contractual rights regarding any collection action, including repossession.
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November 2023
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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 Jerry Smith
Myth: A closing document signed by a buyer declaring that he or she will not file bankruptcy; and that if bankruptcy is filed, the car creditor will not be subject to the bankruptcy, would keep the creditor out of bankruptcy danger. Fact: Such a contract term is forbidden by the Bankruptcy Code and is totally unenforceable. Obviously, if this device could be used, every creditor would include it in credit papers making the Bankruptcy Code useless. Myth: A car creditor has no way of protecting itself from consumer bankruptcies. Fact: Creditors can, through better underwriting, avoid potential bankruptcy filers. For instance, credit applications that inquire of all debt can help spot over-stressed debtors. Also, credit application forms that inquire of an applicant’s
intentions with regard to bankruptcy might smoke out potential filers. And, special scrutiny should be given prior bankruptcy filers as the incidence of repeat filings is high in the sub-prime world. After a bankruptcy is filed, the creditor has rights, but they must be exercised in the bankruptcy court process. We have found that a prompt attempt to obtain relief from the automatic stay is the best course of action. Getting the collateral back while it still has value, even at the expense of retaining an attorney, may be the only way to come out on top. Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.
H J Smith Automobiles (dates announced at
www.txiada.org)
resource guide The TIADA Website:
HOUSTON Robert Edenfield Mi Pueblo BRP Meeting – 2nd Tuesday (Monthly)
SAN ANTONIO Nory Pakravan 210 Auto Credit (dates announced at
www.txiada.org)
16
www.txiada.org
Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.
License Renewal Certificate TexasDealerEducation.com
Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov
Texas Comptroller 800.252.1382 comptroller.texas.gov
NIADA 800.682.3837 www.niada.com
REPOSSESSIONS American Recovery Association
972.755.4755 www.repo.org or contact TIADA state office
Texas Department of Motor Vehicles
FORMS
888.368.4689 www.txdmv.gov
512.990.1188 www.burrellprinting.com
Burrell Printing
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feature
Navigating the Transformation: Google’s Phasing Out of Third-Party Cookies and Its Impact on Independent Automobile Dealers by Stephen Pallas
PIXIEME / STOCK.ADOBE.COM
TIADA Director of Marketing and Communications
I
n the ever-evolving landscape of digital marketing, one of the most significant shifts on the horizon is Google’s plan to phase out third-party cookies. This change is driven by the need to protect consumer data and enhance privacy, and its repercussions are being felt across various industries, including the independent automobile sector. Independent automobile dealers must understand the implications of this transition and adapt their strategies accordingly.
been a crucial element in digital marketing. Third-party cookies are small pieces of data stored on a user’s browser by websites other than the one the user is currently visiting. They have played a pivotal role in tracking user behavior, collecting data on demographics, and enabling targeted advertising. Advertisers have relied on these digital “fingerprints” to understand their customers, build buyer personas, and engage in precise ad targeting.
The Transition Timeline
The Impact on Independent Automobile Dealers
Google’s phased approach to eliminating third-party cookies began in Q1 2024, with 1% of Chrome users migrating to the Privacy Sandbox. This move signifies a fundamental shift in how data is collected, used, and shared. As the transition progresses throughout the year, it is expected to be completed by the end of Q4.
Understanding Third-Party Cookies and Their Role
Before delving into the implications, let’s first understand what third-party cookies are and why they have October 2023
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As Google phases out third-party cookies, independent automobile dealers face unique challenges. Historically, third-party data collection allowed the industry to assign tags to individual users, gaining insights into their browsing habits, preferences, and online behavior. This data facilitated informed decisionmaking, personalized marketing, and improved customer engagement. However, with third-party cookies on the way out, independent auto dealers will need to adapt to alternative 19
sources of data collection. Google has suggested several approaches:
the need to increase their spending by 5% to 25% to achieve the same goals as in 2021.
1 Differential Privacy:
Preparing for Privacy Sandbox as an Independent Auto Dealer
A system that shares data patterns without compromising individual privacy. It reveals consumer behavior based on a broader dataset or cohort of users.
2
K-Anonymity: Replacing specific data param-
eters with broader categories, such as using age brackets (e.g., 18–25-year-olds) instead of specific ages (e.g., 19-year-old).
3 On-Device Processing:
Inferring information directly from user interactions with digital content, such as mobile apps or web browsers.
While these alternatives offer some promise, the shift may complicate matters for independent auto dealers, who will have less information about consumers’ online behavior and purchasing habits. Moreover, advertising costs on Google’s platform are expected to rise. Advertisers will no longer have the ability to target specific personas; instead, they’ll rely on Google to provide audiences that are likely to purchase vehicles. Research from software recommendation company GetApp suggests that 44% of marketers anticipate
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Navigating this transition requires careful planning and strategic adjustments. Here are steps that independent auto dealers can take to prepare for the Privacy Sandbox era:
1 Testing
One piece of good news for advertisers is that Google is allowing developers to test the changes before the full rollout in Q4 2024. This testing phase enables advertisers to assess how the alterations will impact their strategies. It’s a crucial opportunity to fine-tune and adapt.
2 Leveraging Organic Search
While advertising costs on Google are expected to increase, opportunities in organic search still abound. Enhancing your dealership business’s ranking in search engine listings, based on specific vehicle features or unique selling points (USPs), can provide relief from the impending advertising storm. However, optimizing for organic search can be challenging, especially for independent auto dealers who may not have extensive in-house SEO expertise. Consider partnering with agencies specializing in automobile dealership SEO to maximize your organic search presence.
Your Website 3 Eisnsuring Fit for Purpose
Your website serves as your online showroom. Ensuring that it offers a fast, seamless user experience can not only provide positive SEO benefits but also delight consumers who seek information about your vehicles. Building a compelling narrative around your products, through social media and organic search, is one aspect of the process. Equally important is creating digital user journeys that guide visitors towards a single call to action (CTA) and, most importantly, capture visitor information. Purchasing a vehicle is typically not an impulsive decision; it relies on multiple touchpoints and engagements with your brand. Your website can play a pivotal role in nurturing these engagements.
4 Leveraging Existing Data Sources
Survival in a cookie-less world will depend on looking inwardly at your existing data sources and opt-ins. Your dealership likely collects leads, such as email addresses and contact telephone numbers, from customers considering purchasing a vehicle. However, a surprisingly high number of companies fail to utilize this valuable data or follow up with prospects. To T e x a s
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thrive in this new landscape, leverage the data you have and make the most of it. Retargeting customer lists of those who have made inquiries or opted in to receive marketing communications from your dealership is crucial. You can use email or SMS marketing to stay at the forefront of consumers’ minds. By doing so, you can turn consideration into conversions.
5
Exploring Alternative Advertising Platforms
If you decide to test out the Privacy Sandbox to gauge its impact on your dealership’s advertising strategy, you might discover that advertising on Google is not the best fit for your business. This could be due to a high cost per result or an inability to rely on Google’s new targeting methods. In such cases, consider adjusting your advertising spend on Google or reallocating your budget to other digital marketing channels, such as Meta (formerly Facebook) or even TikTok. When making this decision, carefully consider your objectives and target personas before launching any advertising campaigns. Once results start coming in, you can make informed decisions about where to allocate your advertising spend or even determine whether you need to advertise at all.
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Conclusions
The introduction of Google’s Privacy Sandbox and the deprecation of third-party cookies is a transformative moment in digital marketing. While it enhances user privacy, it also presents challenges, particularly in terms of increased advertising costs. Google’s ability to provide advertisers with broader audiences may partially offset these challenges, but the practicality of this approach remains to be seen. Nevertheless, there are numerous digital channels for marketers in the independent automobile dealer sector to explore, both paid and earned, that can produce results. Ensuring that your dealership is ready for this transition is paramount. This includes making sure your website is optimized for organic search listings and creating digital user journeys that nurture consumer engagement. In the end, the key to success lies in adapting to these changes and remaining agile in the evolving digital landscape. Independent automobile dealers that proactively embrace this transformation will be better positioned to thrive in the post-third-party cookie era. By understanding the challenges and opportunities that lie ahead, you can chart a course for success in the Privacy Sandbox.
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Thank you to all those who have contributed to INDEPAC in 2023!
A List of INDEPAC ** Contributors through September Bathija, Navin Blankenship, Erika Brown, Mark Browning, Justin Bryan, Kaleb Buchelly, Harry Christian, Amos Cockerell, Clint Cooney, Michael Davis, Brad Davis, Vicki Downey, Mike Edenfield, Robert* Fox, Rob Goodman, Jason* Gregory, Tommy* Hagler, Keith & Marcia* Hale, Eddie Hanson, April*
Hobson, James In Memory of Mario Martinez Jones, Mark* Kanelakos, Collin Kaya, Selcuk Keate, Kyle Labaj, Kanton Lathrop, Phillip Lazo, Deyla Lucio, Jesse Milligan, Robert Moore, Russell* Murphy, Bill Peters, Mark Petersen, Shaun Reine, Greg Rice, Jenissa Rodriguez, Edgar*
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feature
Temporary Tags Force a Hard Look at Regulatory Oversight in Texas by Stephen Pallas
TIADA Director of Marketing and Communications
T
he Department of Justice recently announced the conviction and imprisonment of Octavian Ocasio, the notorious “Used Car King of New York.” This 52-yearold man, residing in the Southern District of Texas, was found guilty of conspiring to commit wire fraud. His conviction, delivered by U.S. District Judge George C. Hanks Jr., was the culmination of a meticulous investigation into a complex fraud scheme that shook the foundations of the Texas temporary tag system. Ocasio’s conviction marked the end of a nefarious operation that exploited a critical flaw in the state’s vehicle registration process. He and his co-conspirators engaged in the buying and selling of thousands of counterfeit Texas temporary buyer tags without any legitimate vehicle transactions. This elaborate charade flooded the streets with fake plates, allowing numerous drivers to operate vehicles without proper documentation, insurance, or license. The modus operandi of Ocasio’s operation
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By dismantling criminal enterprises like Ocasio’s and holding a small number of dealerships accountable, authorities are actively safeguarding communities, ensuring that drivers can navigate the roads with confidence in the legitimacy and safety of their fellow motorists. 25
was as intricate as it was audacious. Utilizing various online platforms such as Gmail, Instagram, and Facebook, they communicated and conducted transactions, skillfully evading law enforcement scrutiny. The group advertised their illicit wares openly, demonstrating a brazen confidence in their ability to deceive both the public and authorities.
“The scale of this operation was staggering. Ocasio and his associates were not only duping unsuspecting buyers but also putting countless lives at risk by enabling unlicensed and uninsured drivers to roam freely on our roads,” remarked U.S. Attorney Alamdar S. Hamdani. “Their actions prompted swift action from the authorities, resulting in a significant crackdown on this
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dangerous criminal enterprise.” The consequences of this fraudulent activity were not limited to financial losses. Acting Special Agent in Charge David Martinez of the FBI emphasized, “Ocasio’s criminal network allowed unsafe vehicles onto our streets, driven by individuals lacking the legal qualifications to operate a vehicle. This posed a clear and present danger to public safety.” However, Ocasio’s conviction was not an isolated incident; it highlighted a more profound issue: the exploitation of the temporary tag system by one Texas dealership. The Texas Department of Motor Vehicles (TxDMV) took a decisive stand against such misconduct, exemplified by a case where a dealership faced substantial penalties. This decision sent a strong message throughout the industry, indicating that authorities were adopting a zero-tolerance policy against any misuse of the temporary tag system. The case that led to the hefty fine and license revocation involved the dealership’s failure to provide records for inspection and the improper issuance of 347 temporary tags without corresponding vehicle sales. An initial recommendation by an Administrative Law Judge (ALJ) suggested a lower fine of $35,200. However, the TxDMV Board intervened, imposing a more stringent penalty of $1,000 per violation with a cap of $200,000. This ruling demonstrated the board’s commitment to ensuring compliance while protecting consumers from any questionable practices within the automobile industry. The significance of these convictions and penalties cannot be understated. They represent a resounding victory for the justice system and regulatory bodies. By dismantling criminal enterprises like Ocasio’s and holding a small number of dealerships accountable, authorities are actively safeguarding communities, ensuring that drivers can navigate the roads with T e x a s
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confidence in the legitimacy and safety of their fellow motorists. Furthermore, these actions have initiated a paradigm shift within the industry. Dealerships, who were once accustomed to a more relaxed regulatory environment, are now faced with the reality of increased oversight and more substantial consequences for non-compliance. The Texas temporary tag system, which was previously vulnerable to exploitation, has undergone significant reforms, making it considerably more challenging for individuals to engage in any fraudulent activities. As Texas continues to lead the way in promoting a safer and more transparent automobile industry, the message is clear: fraudsters who may engage in questionable practices will face the full force of the law. Through these convictions and penalties, the state has reaffirmed its commitment to upholding the integrity of its roads and ensuring that every driver operates within the bounds of the law. In light of the recent crackdown on fraudulent activities related to temporary tags in Texas, TIADA has taken proactive measures to keep its members well-informed about the changing state and federal regulations concerning temporary tags. Recognizing the importance of compliance in the wake of these high-profile convictions and penalties, TIADA has intensified its efforts to educate its members about the evolving landscape of temporary tag regulations. Through regular updates, live discussions around the state, and informational resources, TIADA ensures that its members are equipped with the knowledge and tools necessary to stay compliant with the law. By providing accurate and up-todate information, TIADA hopes to empower independent automobile dealerships to navigate the complex regulatory environment effectively. In a climate where the consequences for non-compliance are more October 2023
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significant than ever, TIADA’s efforts serve to guide dealers, fostering a
...the message is clear: fraudsters who may engage in questionable practices will face the full force of the law. culture of transparency, accountability, and compliance within the industry. As a result, dealers can
operate with confidence, knowing they are well-informed and equipped to meet the legal requirements, ensuring the safety and security of their customers and the broader community. The fall of the “Used Car King of New York” and the crackdown on the misuse of temporary tags in Texas serve as powerful reminders of the importance of vigilance and accountability. By working collaboratively, law enforcement agencies, regulatory bodies, and the public can maintain the integrity of the automobile industry, fostering a safer environment for all. As the wheels of justice continue to turn, one thing remains certain: those who seek to exploit the system will find themselves facing the consequences of their actions, ensuring a brighter, safer future for drivers across the state and beyond.
Please Welcome Our Newest TIADA Members DEALER MEMBERS
Apex Auto SA
Eliazar Flores . . . . . . . . . . . . . . . . . . . . . . . 4022 Blanco Rd, San Antonio, TX 78212
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Anne Marie Lee Edwards . . . . . . . . . 15447 W Interstate 10, San Antonio, TX 78249
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ASSOCIATE MEMBERS
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9 Steps for Hiring and Retaining Talent at Your Dealership by Dealertrack
F
inding and keeping top talent in automotive retail has always been a challenge. However, dealers can do more to think outside the box and find those best suited to grow with their companies and, most importantly, improve the return on their hiring investment. Here are 9 steps for hiring and retaining talent at your dealership.
1
Track Employee Statistics
Employee turnover at dealerships is a huge problem, but most don’t recognize the severity of the situation. Turnover is costing dealers billions of dollars every year. And, according to a NADA Dealership Workforce
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Especially considering the high costs of turnover, dealerships should look to increase compensation for existing employees rather than throwing money at new workers month after month.
Study, dealerships drastically underreport their average turnover rate at just 22%. That’s more than half the actual dealership turnover rate identified by NADA, which is 46% for employees and a shocking 80% for salespeople. This discrepancy between perception and reality can be remedied by tracking employment and turnover metrics over time. This involves listing, defining, explaining, and tracking relevant metrics, including voluntary and involuntary turnover and retention rate by department.
Better 2 Offer Compensation
In 2020, the average annual pay for a car salesperson in the United 31
States was less than $41,000. Although this figure appears much higher in 2023, some sources show this figure swinging wildly in the opposite direction. This unpredictable compensation model doesn’t bode well for long-term growth or stability. Considering the high cost of turnover — especially in the long run — dealerships are facing an ongoing staffing challenge due to their current compensation model. For reference, today’s college graduates earn an average starting salary of approximately $51,0000 per year. There needs to be a wholesale industry shift toward providing better compensation for workers. Especially considering the high costs of turnover, dealerships should look to increase compensation for existing employees rather than throwing money at new workers month after month.
3 Offer Remote Work Options
More and more employees, both inside and outside the auto industry, have started to see the benefits of working from home. And many won’t go back to an all-in-office situation anytime soon. Today’s employees expect greater flexibility moving forward, even from dealerships. Coincidentally, there has been a parallel trend toward remote car shopping and online car buying. Dealerships should take advantage of this trend to align their staff and HR structures to adopt an omnichannel approach to sales — giving customers the option to buy cars in person, remotely, or a mix of both. This also calls for creating new positions for remote and mobile salespeople, which has the added benefit of attracting top talent.
Different 4 Consider Compensation Structures
In addition to increasing compensation amounts, dealerships should consider a separate compensation structure altogether, including a move away from traditional commission-based pay. Some dealerships have already made this move, and implementing different types of perks, without reducing wages. The results, in terms of improved employee tenure and job satisfaction, have been immediate and undeniable.
5
Improve Company Culture
According to a Hireology Research Report, nearly 40% of people choose to begin a new job search to find a better culture. To put the importance of company culture into perspective, just 36.5% of people listed better pay as the reason for starting a job search. Dealerships should implement more employee recognition efforts and do more to engage their employees, giving them more opportunities to think, grow, and feel valued for their contributions. Improved employee engagement, better emotional connection with work, and more efficient work hours are undeniably interconnected. It’s a win-win for employees and dealerships.
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6 Provide Better Technology
Young workers, who grew up with technology, are naturally interested in the latest tech advancements. They view workplace technology as an important perk and understand that the right technologies can make their work easier and more interesting. Implementing integrated technologies that make your employees’ jobs easier and more efficient is a major step toward attracting and retaining top talent. These technologies speed up workflows, remove friction and barriers, and allow employees to focus on what they do best. Plus, integrated technologies appeal to today’s employees and improve your overall brand perception, because, like it or not, your dealership’s brand is inseparably tied to your technology.
7
Improve Employee Onboarding
Employees become most productive after three years on the job. Unfortunately, the average employee tenure is just 18 months to 2.4 years. In order for your dealership to keep employees (especially top employees) longer and reap the rewards of your investment in them, you have to give them a strong start. That means implementing productive, structured onboarding that focuses on employee retention. According to Hireology’s Adam Robinson, there’s a “strong correlation between structured onboarding processes and employee retention. When new hires take part in a structured onboarding process, 66% of them are likely to remain with a company for longer than three years.”
Smart Human 8 Make Resource Partnerships
Ironically, most “human” resources departments are too often tied up in mundane number crunching and accounting work, which takes them away from the dayto-day progress and well-being of actual employees. Outsourcing HR management and utilizing better payroll and HR technology allows your team to shift focus back to your employees, resolving their concerns and ensuring happy productive workers.
9 Adopt More Diverse Hiring Practices
Unfortunately, there aren’t as many avenues for women and minorities to explore careers in the auto sales industry. Of course, many of these candidates are among the top, sought-after talent that dealerships should be seeking to employ. When dealerships expand their hiring practices and think outside the boundaries of the typical dealership employee (who often brings baggage of bad industry habits), they have a greater likelihood of finding and keeping the best people for the job. Finding and keeping top talent is a challenge but following these 9 steps can give you a leg up in competing for (and keeping) these employees and give you the tools, technology, and know-how to improve your return on your talent investment. T e x a s
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feature
The Right to Repair: Empowering Consumers and Lowering Auto Repair Costs by TIADA Staff
I
n a world where technology advances at an unprecedented pace, the importance of consumer rights cannot be overstated. Among these rights, the right to repair one’s own property stands as a cornerstone of ownership and autonomy. In the realm of automobiles, this fundamental principle is at the heart of the Right to Equitable and Professional Auto Industry Repair Act (REPAIR Act) and the Save Money on Auto Repair Transportation Act (SMART Act), represented respectively by H.R. 906 and H.R. 1707. These bills, introduced in February 2023, have sparked significant attention as they aim to address the surging costs of vehicle repair and champion the consumer’s right to choose how their vehicle is maintained.
The Soaring Costs of Auto Repairs
Over the past two decades, the cost of repairing vehicles in the United States has soared. According to data from the U.S. Bureau of Labor Statistics, the cost of vehicle repair has surged by more than 66 percent since October 2023
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the year 2000. For consumers, this has meant facing increasingly hefty bills when their vehicles require maintenance or repair. The rising costs are a concern not only for individuals but also for businesses and the economy as a whole. One notable aspect of this issue is the significant price gap between franchise dealership repairs and independent repair shops. A recent study conducted by the University of Michigan found that dealerships charge consumers 36 percent more for repairs compared to independent repair shops. This price disparity highlights a lack of competition in the auto repair industry, which has contributed to inflated repair costs. This is where the REPAIR Act and the SMART Act come into play, offering consumers a lifeline in the form of choice, affordability, and control.
Empowering Consumers through the REPAIR Act
The REPAIR Act, officially known as the Right to 33
Equitable and Professional Auto Industry Repair Act (H.R. 906), seeks to address the pressing issue of consumer choice and control over vehicle repairs. This bipartisan bill introduces several critical provisions aimed at empowering consumers: Access to Vehicle Data: The REPAIR Act mandates that original equipment manufacturers (OEMs) provide vehicle owners with access to essential data generated by their vehicles. This data includes information related to diagnostics, repair, calibration, and service. This standardized access platform ensures that vehicle owners have full visibility into the condition of their vehicles, empowering them to make informed choices about repairs. Freedom to Choose Repair Providers: Under the REPAIR Act, OEMs are prohibited from mandating the use of specific brands of parts, tools, or equipment unless a recall is in effect. This provision enhances consumer choice by allowing vehicle owners to decide where and how their vehicles are repaired. Vehicle and Data Security: Prioritizing both vehicle and data security, the REPAIR Act requires the National Highway Traffic Safety Administration (NHTSA), in collaboration with the Federal Trade Commission (FTC), to establish rules for accessing data through the standardized platform. Additionally,
guidelines are set to ensure the security of vehicle-generated data and vehicles themselves within one year of enactment.
Empowering Consumers through the SMART Act
The SMART Act, or the Save Money on Auto Repair Transportation Act (H.R. 1707), complements the REPAIR Act by focusing on reducing costs for consumers. This bipartisan legislation narrows the scope of patent law, particularly in relation to design patents for vehicle parts like bumpers, hoods, quarter panels, and side mirrors. The SMART Act’s key provisions include: 1. Reducing Enforcement Timeframes: The SMART Act significantly reduces the time that automakers can enforce design patents against alternative parts manufacturers. It shortens this timeframe from 15 years to just 2.5 years after the patent’s issuance date. This change allows alternative parts suppliers to sell aftermarket collision repair parts more quickly, ultimately lowering repair costs for consumers. 2. Targeted Impact: Importantly, the SMART Act’s focus on reducing enforcement timeframes applies exclusively to aftermarket repair parts. It does not alter the 14-year period during which OEMs can enforce design patents against other manufacturers. This targeted
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approach ensures that consumers benefit from greater affordability without compromising automakers’ rights. “The right to repair is very important for consumers to ensure the timely and cost-effective repair services for the automobiles our members strive to provide to our customers,” said TIADA Executive Director John Frullo.
substantial benefits to rural consumers. Increased competition and improved access to vehicle repair services mean that individuals in remote areas can obtain essential repairs locally, quickly, and at reasonable costs. This is particularly significant for communities where access to dealerships and specialized repair facilities may be limited.
Recognizing and Preserving Consumer Rights
The Path Forward: Supporting Consumer Rights
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Beyond lowering costs and promoting choice, these acts offer
Did the ownership at your dealership change and you need to renew your dealer’’s license?
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A Benefit to Rural Consumers
As of September 20, 2023, H.R. 906 and H.R. 1707 await congressional action. The support of lawmakers is crucial in advancing these bills and ensuring that consumer rights are recognized and preserved. By cosponsoring and endorsing these acts, legislators can make a substantial difference in the lives of American consumers, reducing the
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At the core of these acts lies a commitment to recognizing and preserving consumer rights. The principle that consumers should have control over the products they purchase is not only inherent but also vital to fostering a fair and competitive market. The REPAIR Act and the SMART Act emphasize consumer choice, data transparency, and access to affordable repairs as essential components of the modern automotive landscape. These acts represent a crucial step towards leveling the playing field in the automotive repair industry. They address the disparity in repair costs between franchise dealerships and independent repair shops, making it more affordable for consumers to maintain and repair their vehicles. Moreover, these bills promote competition, ensuring that consumers have options when it comes to selecting repair providers and components. “Both these bills would put used vehicles in the market at a more reasonable price and in a more timely manner,” said NIADA CEO Jeff Martin. “NIADA believes this is a step in the right direction to help address the vehicle inventory shortage and the cost of automobile ownership for consumers.”
financial burdens associated with auto repairs and promoting choice and autonomy. In conclusion, the Right to Equitable and Professional Auto Industry Repair Act (REPAIR Act) and the Save Money on Auto Repair Transportation Act (SMART Act) represent a significant milestone in the pursuit of consumer rights and affordability in the automotive repair industry. With the cost of vehicle repairs on the rise and franchise dealership repair prices significantly higher than those of independent shops, these bipartisan bills offer a much-needed solution. By empowering consumers with data, choice, and affordability, these acts promise a future where individuals have greater control over their vehicles and their wallets. The time is ripe for Congress to recognize and support these important pieces of legislation.
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Safeguards Compliance Course Keep Your Dealership Compliant with the FTC's Safeguards Requirements Ensure your staff knows how to protect consumer information to comply with the FTC requirements, avoid inadvertent exposure of your customer's information, government enforcement actions, lawsuits, and bad press. Brought to you by TIADA. Powered by the Dealer Education Portal. Visit dealereducationportal.com Or scan the QR Code for info and registration
Only $75 for the Qualified Individual Only $49 Each for All Other Employees Volume Discounts at $40 for Any Course
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Sample policies and agreements are included at no additional charge
The course is flexible and on-demand to fit your busy schedule
Volume purchase discounts available for purchase of 10+ courses
All users earn a certificate upon completion T e x a s
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Auto Dealer Solutions
on the cover by TIADA Staff
TEXAS INDEPENDENT DEALERS Leading the Way in Their Communities
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ndependent dealers are more than just business owners contributing to the lifeblood of the economy in Texas and the stability of their consumers. Many dealers are incredibly active in their communities and making an equally substantial difference. Their dealerships aren’t just places to buy cars; they’re hubs of community involvement and service, fostering a sense of belonging and support among their customers. We are taking some time to recognize the stories of three remarkable independent dealerships who echo the sentiments of resilience, generosity, and community involvement.
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Greg Phea
Many dealers are incredibly active in their communities and making an equally substantial difference.
Austin Rising Fast
Greg Phea has established a notable presence in the pre-owned luxury car and SUV industry, boasting a 29-year legacy as the driving force behind Austin Rising Fast Motor Cars. The dealership has earned a reputation for trust, respect, and exceptional service, making it a wellknown and respected choice in the Austin and Central Texas region. Greg’s journey in the automobile industry began in 1989 when he co-founded Rising Fast Motors in Lubbock, Texas. A decade later, in 1999, he ventured into the vibrant market of Austin, founding Austin Rising Fast Motor Cars. For a brief period, both dealerships T e x a s
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operated concurrently, showcasing Greg’s dedication to expansion and growth. However, in the pursuit of excellence, he made the strategic decision to close the Lubbock location after a year, channeling all his focus and energy into the Austin business. At the core of Austin Rising Fast Motor Cars lies a profound mission — to be the most successful and respected provider of pre-owned luxury vehicles in the region. Greg’s vision goes beyond mere business; he aspires to be the first choice for the community, setting a standard of excellence in his sector. Upholding a culture of openness, respect, and integrity, Greg has instilled these values into the very fabric of his dealership, fostering an environment where customers are not just clients but cherished partners in the journey of acquiring their dream cars. Beyond his business prowess, Greg is deeply rooted in his community, exemplifying the essence of a true philanthropist. A devoted member of Celebration Church in Georgetown, Texas, for nine years, November 2023
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Greg is the driving force behind Austin Rising Fast Motor Cars. This dealership has become synonymous with trust, respect, and exceptional service in the Austin and Central Texas region. Greg has served as a greeter and actively participated in various church activities. He is also a dedicated member of Gideon International and has volunteered as an auctioneer for school fundraisers, supporting educational initiatives in his community.
Greg’s commitment to education extends to his involvement with the Boy Scouts of America, where he serves as an adult member, mentor, and motivational speaker. Additionally, he has played pivotal roles in community organizations such as the United Way Fund Distribution Committee, the Lubbock Independent School District Mentor Program, and the Major’s Youth Council. Greg’s leadership and dedication were further evident in his role as the President and co-founder of the African American Business Professional Coalition. In the realm of giving back, Greg’s efforts have been monumental. He has been a consistent contributor to the Blue Santa program since 1984, ensuring underprivileged children experience the joy of the holiday season. He has also organized an annual Halloween safe-house event for the Oakwood Glen neighborhood children and the School for the Deaf, fostering a sense of community and safety. Greg’s impact stretches far beyond the confines of his dealership, leaving an indelible mark on the lives of 39
those he serves. His commitment to quality, community, and education defines him not just as a successful entrepreneur but as a compassionate leader dedicated to making a positive difference in Austin and beyond. Under the leadership of Greg Phea, Austin Rising Fast Motor Cars serves as a prominent dealership, exemplifying qualities such as integrity, compassion, and community spirit. Phea’s influence highlights the substantial impact that one individual can make on an entire community, demonstrating the transformative potential within the independent automobile industry.
Steve and Susan Babinsky
philanthropic organization established in 2022. This foundation aims to provide support and opportunities for deserving individuals, particularly in the realms of education and hope. Their initiative reflects a commitment to giving back to the community through a non-profit entity, emphasizing the broader impact beyond their dealership operations. Steve and Susan advocate for the pivotal role of education in fostering personal growth and financial self-reliance. Guided by this principle, they have
The Babinskys’ commitment to supporting educational initiatives is
Midtown Motor Company
a testament to their dedication to
Steve Babinsky, the founder of Midtown Motor Company, and his wife, Susan Babinsky, have created the Triple J Family Foundation, a EPI-TIADAhalf NOV2023.pdf
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Vicki Davis
A-OK Auto Sales
purposefully developed the Triple J Family Foundation as a proactive agent for societal transformation. The foundation goes beyond the provision of scholarships; it actively empowers ambitious individuals, nurturing their aspirations and enabling them to pursue transformative education, aligning with the couple’s steadfast commitment to positive change. The Triple J team’s commitment to supporting educational initiatives is a testament to their dedication to community development. Their philanthropic efforts extend far beyond financial contributions; they invest their time, resources, and expertise to actively shape the future of many. By providing scholarships, mentorship programs, and educational resources, they are not just offering assistance but opening doors of opportunity that might otherwise remain closed. One of the foundation’s key initiatives is to empower underprivileged youth, ensuring they have access to quality education. By providing scholarships to promising students, the team at Triple J are offering a chance for these young minds to explore their potential fully. Moreover, their November 2023
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mentorship programs create a supportive environment, guiding these students toward academic excellence and encouraging them to pursue their passions. The influence of the Triple J Family Foundation reaches well beyond educational institutions, creating a positive ripple effect within families and communities. This impact instills hope and optimism by empowering individuals with knowledge and confidence, encouraging them to aspire for a brighter future. Steve and Susan’s investment in education translates into an investment in the overall well-being of the community, fostering an environment where dreams are nurtured and aspirations are realized. In addition to scholarships and mentorship, the foundation actively engages in community outreach programs. These initiatives aim to bridge gaps in educational accessibility, providing resources and support to schools and students in need. Through their relentless dedication, they inspire others to join the cause, amplify the impact, and create a wave of positive transformation that reaches every corner of San Antonio.
Vicki Davis stands as a testament to resilience, compassion, and community spirit. For the past decade, ever since the passing of her first husband, she has been the driving force behind A-OK Auto Sales, a dealership that not only sells cars but also extends a helping hand to credit-challenged individuals in the community. Vicki’s journey in the automobile industry began in 1992 when she founded A-OK Auto Sales alongside her late husband, Robert Smith. Their mission was clear: to provide dependable vehicles to those facing credit challenges. Despite her initial lack of experience in the auto business, Vicki’s determination and vision led to the establishment of a dealership that prioritized respect and honesty, regardless of customers’ backgrounds. From the very beginning, Vicki recognized the importance of knowledge and networking. She joined esteemed organizations like TIADA and NIADA, leveraging their wealth of knowledge through classes and industry publications. In a predominantly male-dominated field, Vicki faced the challenges head-on. Persistence and resilience became her guiding principles. Despite initial skepticism, she managed to secure financial support, laying the foundation for a business that would thrive for decades. 41
Keeping Your BHPH Dealership Legal & Compliant Dealer Academy Presenter
Michael W. Dunagan,
TIADA General Counsel, author of Dealer Financing of Used Car Sales and Texas Automobile Repossession: A Lien Holder’s Legal Guide.
Time
9:00am - 4:00pm
Cost
$249 Members, Each Additional $199
(must be from same dealership)
$498 Non-members
Sponsored by:
in partnership with
One of the quickest ways to ruin a dealership’s profit margin is to be hit with a fine from a regulatory agency, or to lose a lawsuit filed by a customer. This seminar will focus on the practical side of compliance that understands you have a business to run — and you want to run it right. This seminar from TIADA attorney Michael W. Dunagan is the final answer in BHPH compliance. Mike speaks dealer, and with 45 years of experience representing hundreds of BHPH dealers, he knows your business inside and out. Attend this workshop and learn all about: • Properly handling f inancing • How to prepare for (and on repairs survive) an OCCC exam • Real-life DTPA court cases • What to do when the Bankruptcy Notice arrives • Body shops, mechanics, towing and storage issues • Repossessions: f rom A to Z • Specif ic lien-protection steps • TxDMV Enforcement – Title Management Issues • Federal regulations affecting BHPH dealers • Most common advertising violations • Alternatives to traditional insurance • Your right to insurance proceeds • Most common OCCC customer complaints • Using the courts to get your car back • How to respond to an attorney demand letter • Procedures to stay off the CFPB’s radar • Dealer issues in Comptroller audits • Techniques to avoid consumer lawsuits
Monday, December 4, 2023 Houston, Texas Sheraton Houston Brookhollow 3000 North Loop West | Houston, TX 77092 713.688.0100
To register visit Txiada.org or by phone at 512.244.6060. 42
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Beyond her success in the business realm, Vicki’s dedication to her community shines brightly. As a member of the First Baptist Church in Porter, she was an active Sunday school teacher and contributed her time to vacation bible school activities. She is now a member of Keylife Fellowship in New Carney alongside her husband Jack Davis, whom she married in 2015. Vicki’s commitment to education is further evident through her sponsorship of various sports programs in local schools. Her involvement in initiatives like the East Montgomery Country Fair supports FFA (Future Farmers of America) students, encouraging and empowering the youth. Vicki attributes much of her community involvement to Jack, whom she describes as a dedicated participant in all their collective efforts in and around Porter. Under Vicki’s leadership, A-OK Auto Sales isn’t just a business but a beacon of hope during the holiday season. Every year, the dealership gives back to the community in meaningful ways. Over 300 backpacks filled with school supplies are distributed to elementary school children, ensuring they start the academic year prepared. During Christmas, Vicki orchestrates a heartwarming giveaway, providing 15 to 20 gifts to families in need, exemplifying the true spirit of the season. Additionally, she recognizes the importance of celebrating parents and gifting deserving mothers and fathers with dinner vouchers on Mother’s Day and Father’s Day, respectively. Vicki’s philanthropic efforts extend to vital causes as well. A proud supporter of the Susan G. Komen Foundation, she contributes to the fight against breast cancer, showcasing her dedication to improving lives and making a difference. In every aspect of her life, Vicki Davis epitomizes the values of compassion, community, and generosity. Her journey from a novice in the auto business to a respected community leader is a testament to her unwavering determination and November 2023
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Under Vicki’s leadership, A-OK Auto Sales isn’t just a business but a beacon of hope during the holiday season.
commitment. Through A-OK Auto Sales, she provides cars and fosters a sense of belonging, support, and hope within the Porter community. Vicki’s story is one of inspiration, reminding us all of the transformative power of compassion and the impact one individual can have on an entire community.
Independent automobile dealers are not just businesses but pillars of strength, compassion, and community spirit. These dealerships have transcended their roles as mere car sellers through their unwavering dedication to education, community development, and ethical business practices. They have become cornerstones of hope, empowerment, and support for the people they serve. As we celebrate these dealers and the remarkable individuals behind them, we are reminded of the profound impact businesses can have when guided by principles of integrity, generosity, and community engagement. Their stories inspire us to consider how to contribute meaningfully to the places we call home. In a world often defined by competition, these dealerships stand as shining examples of what can be achieved when businesses prioritize people over profits and community over commerce. These dealers teach us a valuable lesson: that the road to success is paved with compassion, community involvement, and a genuine desire to make the world a better place. As we witness their incredible impact, we are encouraged to embrace these values in our lives, ensuring that the spirit of community, empathy, and generosity continues to flourish, not just in Texas but across the world. 43
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On-Demand Offerings
Featured Courses TIADA designed and implemented some important on-demand courses to give dealers quality educational programs they can access throughout the year. These programs are essential for dealers to stay compliant. They offer flexibility, so you can complete them according to your schedule. These courses are designed for any dealers with questions related to various regulations that affect their businesses.
Repossession 101: What You Need to Know In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of self-help repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.
$98 for two 1-hour videos
The Basics of Transferring Titles* Want to avoid having your title transfer paperwork rejected at the tax office? This online course is designed to walk you through the title transfer process and is best suited for people new to transferring titles or those who want to brush up on the basics. This course has been reviewed for accuracy by the Tax Assessor-Collectors Association of Texas.
$48 for the course
To register visit Txiada.org/on-demand Call us at 512.244.6060 or email us if you need assistance. Texas Independent Automobile Dealers Association
*Also available in Spanish
behind the wheel by John Frullo
Texas Dealers Voice Their Concerns at the Nation’s Capital
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ne of the most important and often unnoticed services an association can provide for its members is to represent and convey the views and concerns of its members before legislative bodies. Hopefully, you are familiar with the significant accomplishments TIADA had at the state level this last session. Still, it is also essential that we communicate and participate in crafting federal laws to help make our views known and ensure lawmakers understand them. Furthermore, it is very important to convey the effect of proposed legislation in our industry and its related implications on our ability to conduct business to the lawmakers. Recently, a group of independent automobile dealers — including several from Texas — visited our nation’s capital. Our goal was to help educate legislators and their staff on the implications proposed laws would have regarding our operations in helping individuals obtain cost-effective and safe transportation. For the better part of three days, independent auto dealers descended on the offices of members of the United States House of Representatives and Senate. We were there to inform, present positions, and provide
TIADA EXECUTIVE DIRECTOR
real-life situations on what we considered three significant pieces of legislation, one of which was to continue to build on the work TIADA participated in to make it easier to prosecute the theft of catalytic converters in Texas. Others included enabling dealers to have quicker access to less expensive repair parts and technology to diagnose and calibrate automobiles more quickly. Lastly, we want to reign in out-of-control, bureaucratically created, and harmful laws that did not go through the proper law-making process to become part of the body or rules we would be required to follow. You might wonder what you can do to help your industry. It can be as simple as calling or writing your elected officials on your position. While this might seem like a small item, you would be surprised by how little contact officeholders receive on legislation from the “folks in the field.” It is a very educational and rewarding time. One of the easiest ways to become active is to contribute to INDEPAC, your association’s political action committee, which is a vehicle to help fund the campaign activities of elected officials that we want to help stay in and operate their officeholder activities.
One of the easiest ways to become active is to contribute to INDEPAC, your association’s political action committee 46
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