In This Issue:
• 20 Groups – In Good and Challenging Times • 10 Auto Dealer Text Messaging Tips
• Michael W. Dunagan on After-Sale Repairs • Coronavirus and Automotive Consumer Survey Results
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
Vo l u m e X X / I s s u e 10 / O c t o b e r 2 0 2 0
TexasDealer contents
CHAIRMAN OF THE BOARD Juan Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017
5 Officers’ Message
SECRETARY Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087
7 INDEPAC Contributors 9 Legal Corner: After-Sale Repairs: Keeping Them Running
TREASURER Eddie Hale/Neighborhood Autos 1717 US 287 Decatur, TX 76234 ICE PRESIDENT, WEST TEXAS V (REGION 1) Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 ICE PRESIDENT, FORT WORTH V (REGION 2) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas, TX 75218 ICE PRESIDENT, DALLAS V (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 ICE PRESIDENT, HOUSTON V (REGION 4) Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 ICE PRESIDENT, CENTRAL TEXAS V (REGION 5) Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 ICE PRESIDENT, SOUTH TEXAS V (REGION 6) Jose Engler/Irving Motor Corp 211 Braniff Dr. San Antonio, TX 78216 ICE PRESIDENT AT LARGE V Robert Blankenship/Texas Auto Center 6809 N IH-35 Austin, TX 78744 ICE PRESIDENT AT LARGE V Armando Villarreal/McAllen Auto Sales 4215 S. 23rd Street McAllen, TX 78503
TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org
by Juan Sabillón, TIADA Chairman of the Board
by Michael W. Dunagan
15 1 0 Auto Dealer Text Messaging Tips to Help You Close More Deals by Amy Garofalo
18 On The Cover: TIADA CPO Program is Here by TIADA Staff
23 The Follow Up Email by Chris Vitale
25 TIADA Member Application 27 Dealer Pulse: Inventory Shortage, Hurricane Season Throw Texas Dealers Some Curveballs by TIADA Staff
33 20 Groups — In Good Times and In Challenging Times by TIADA Staff
35 Local Chapters 36 Pandemic Auto Shoppers Are Eager for Online Tools and Promotions by Daniel Maynard
38 TIADA Auction Directory 2020 41 5 Ways Mobility Will Look Different in a Post Coronavirus World by Joe George
45 New Members 46 Behind the Wheel by Jeff Martin
Did You Know?– The fastest way to get an answer to your
compliance question is by submitting your question through the TIADA website. Just log in to txiada.org; under Resources go to Legal and Compliance, click on Compliance Consultation Service, fill out the online form and someone will get back to you with an answer. It’s that simple! 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 What Is INDEPAC?
O
ne of the missions of the Texas Independent Automobile Dealers Association is to maintain a strong, involved presence in the Texas Legislature to protect and preserve the used car industry. Our association, from the Legislative Committee to the TIADA staff, keeps a watchful eye on potential legislation that could affect dealers. One of the ways we accomplish this is by maintaining close relationships with legislators on both sides of the aisle so we can serve as a resource when the need arises. Our political action committee, INDEPAC, plays an important role in this process. Through INDEPAC we can make contributions to legislative campaigns that align with the association’s philosophy. However, INDEPAC is not a part of your dues and it cannot be a dealership expense. The contributions must come from you personally. So, let’s get personal. I make, and will continue to make, a personal contribution to INDEPAC every year. I clearly see the benefit and realize the important role it plays in my personal life. If my business is doing well, my personal life is usually going well too. My concern is found on page 7 of this magazine. It appears that less than 1% of you are helping to support the industry. The math is easy, if each member contributed just $100 to INDEPAC, that would exceed the largest annual contribution ever. That’s less than one doc fee for most dealers. If you operate an independent dealership in Texas, you have benefitted from the advocacy that INDEPAC makes possible. In the 2017 session, TIADA advocated
by Juan
Sabillón
Mi Tierra Auto Sales (Houston) TIADA CHAIRMAN OF THE BOARD
for legislation that eliminated the annual registration and renewal fee for Related Finance Companies after the initial RFC registration. That is a savings of $600 annually! Additionally, TIADA also effectively lobbied for the passage of a bill eliminating the OCCC notification requirement when a dealer charges less than the safe harbor limit of $150. This helps dealers avoid costly penalties that could reach thousands of dollars. In the 2019 session, we saw the fruition of two longstanding issues for the association with the passage of a bill that prohibits named driver insurance policies and one for required pre-licensing education for auto dealers. You can see how much savings these and other TIADA initiatives affect your dealership’s bottom line with the online INDEPAC Savings calculator at txiada.org under Resources >> Advocacy. There you will also find a way to donate, or you can turn to page 6 to find a donation form. Just fill it out and mail it to TIADA with your contribution! We are fighting for the interests of dealers across the state, and it is critical that INDEPAC receives support from dealers like you, every one of you. In December, TIADA will print its final list of INDEPAC contributors — there is plenty of room for your name to be added to that list. As I mentioned earlier, your contribution must be made with a personal check or credit card. Corporate contributions are prohibited by state law. This is not just another business expense, nor should it be — this is personal. If your name is found on page 7, thank you for your support.
... if you operate an independent dealership in Texas, you have benefitted from the advocacy that INDEPAC makes possible. October 2020
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Yes, I would like to help with TIADA’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 ______________________________________________________________________________________ Referred by:
c/o TIADA 9951 Anderson Mill Rd Suite 101 Austin Texas 78750 PHONE
6
512.244.6060 FAX 512.244.6218 EMAIL accounting@txiada.org
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Special Thanks to our
2020 INDEPAC Contributors (as of September 18, 2020)
Robert and Erika Blankenship Brad Davis
$2,000 + Tommy Gregory Eddie Hale
$1,000 -$1,999
Vicki Davis Theresa and Steven Greig Blake Ingram
Justin Browning Robert Beck Joe and Connie Chick
Robert Edenfield
Phillip Lathrop Juan Sabillรณn Michael Thomasson
$500-$999 Keith Hagler Mark Jones Chris Knox
$250-$499 Mike Goff
Greg Reine Christie Wienecke
Ryan Winkelmann Gregory Zak
Jeff Martin Wayne Meagher
Russell Moore
$100-$249 Charles Brown
Geral DeWitt
Calvin Sumrall
Michael Zak
$10-$99 Jerry and DeDe Smith October 2020
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legal corner
After-Sale Repairs: Keeping Them Running by Michael
O
ne of the more quaint phrases used by buyhere-pay-here dealers in the ancient past was: “If they ain’t driving, they ain’t paying.” The rustic wisdom of that saying holds true today. In the world of subprime motor vehicle finance, but especially in the BHPH business, it is often necessary to assist customers in getting repairs done. It is also often in a dealer’s best interest to be involved in the process of analyzing breakdowns and referring customers to preferred repair shops to prevent such unpleasant occurrences as abandonments and the placement of mechanic’s liens. At one time, almost all dealerfinanced sales were on an “as is” basis. But in recent years, more and more dealers have gone to offering some type of warranty on their vehicles and others are offering to sell commercial service contracts, adding the charge to the amount financed in the installment contract. What are some of the ways dealers can address postsale repairs as part of the sales transaction? When it comes to discussing warranties and service contracts, it’s necessary to understand the definitions of the key terms. Even though the terms “warranty” and “service contract” are often used interchangeably, they are actually different things.
As Is
This term refers to selling a vehicle (or any other product) without giving a warranty. October 2020
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Dunagan
Warranty
Warranty is by definition an undertaking or promise given by a manufacturer or seller of a product to repair or replace merchandise if certain defects occur. There is and can be no separate charge for a warranty. An example of a warranty is the limited warranty given by automobile manufacturers on the new cars sold by their franchised dealers. There are no additional charges to the buyers, and the terms of the warranties are set forth in written documents given to the buyers.
Service Contract
W.
TIADA GENERAL COUNSEL
The issuers of ser vice contracts are required in Texas to be registered with the Texas Depar tment of Licensing and Regulation (TDLR) and must meet rigorous financial requirements involving cash deposits and/or insurance backing of the product.
Service contracts, on the other hand, are insurance-like products sold to car buyers to provide or pay for repairs that are not covered by a warranty. Service contracts are usually offered by third-party providers and sold through car dealers (although some are directmarketed to consumers). The issuers of service contracts are required in Texas to be registered with the Texas Department of Licensing and Regulation (TDLR) and must meet rigorous financial
requirements involving cash deposits and/or insurance backing of the product.
SELLER OPTIONS
Selling As Is
It is still possible to sell a vehicle on an “as is” basis. This means that there are no warranties given with the sale. While selling “as is” eliminates the threat of breach of warranty claims, it doesn’t preclude claims of misrepresentation 9
and other violations under the Texas Deceptive Trade Practices Act. On an “as is” sale, the box on the Federal Trade Commission Buyers Guide form that says “AS IS — NO DEALER WARRANTY” should be checked. If a service contract is offered for sale, the box below that is labeled “SERVICE CONTRACT” should be checked to disclose the availability to the buyer of a service contract at extra charge.
Giving A Seller’s Warranty
If the decision is made to give a warranty to buyers, a dealer should acquire a warranty agreement that is labeled as “Limited Warranty” and that spells out the specific terms of the warranty (the FTC Buyers Guide is a disclosure document displayed on each used car offered for sale, and is not adequate to serve as a warranty agreement). The form should meet the requirements of the Magnuson-Moss Act and the FTC Used Car Rule. Sellers have the flexibility to tailor warranties to fit their needs. For example, deductible amounts, a maximum dollar limit for repairs, the duration of the warranty, and the percentage of costs covered (such as a 50-50 split) can all be determined by the issuer of the warranty. Also, specified types of repair and
If the decision is made to give a warranty to buyers, a dealer should acquire a warranty agreement that is labeled as “Limited Warranty” and that spells out the specific terms of the warranty (the FTC Buyers Guide is a disclosure document displayed on each used car offered for sale, and is not adequate to ser ve as a warranty agreement).
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components can be excluded from coverage. (A limited warranty template form can be obtained from Burrell Printing Company at 800-252-9154.) The warranty agreement must inform customers what steps need to be taken to invoke warranty coverage, such as whether the vehicle must be brought to the dealer for warranty work. Most warranties exclude coverage of damage caused by abuse or misuse of the vehicle. Additional rules apply to what must appear in a written warranty agreement. There are, for example, certain required disclosures that must be placed on written warranty agreements. One such mandatory disclosure states: “This warranty gives you specific legal rights, and you may also have other rights which vary from state to state.” In the spirit of pre-purchase disclosure of whether there is a warranty, and if so, what the terms are, the Magnuson-Moss Act requires that warranty agreements be made available for inspection by prospective buyers prior to sale. Shifting from selling “as is” to selling with a warranty also requires changes to the Buyers Guide disclosure forms that are displayed on vehicles offered for sale. The purpose of the Buyers Guide is to advise potential buyers whether vehicles are being sold “as is” or with warranty; and, if they come with a warranty, whether the warranty is “full” or “limited.” Also, a brief summary of coverages provided by the warranty is included. The Buyers Guide for each vehicle covered by a limited warranty should have a mark next to “Warranty” (as opposed to “As Is — No Warranty”), and a mark next to “Limited Warranty” with the percentages of labor and parts which will be paid filled October 2020
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in. A description of the systems covered, such as: “engine,” “transmission,” “drive shaft,” or “differential” should be filled in (use of the terms “drive train” and “power train” are forbidden as being too vague), and any rules on deductibles (such as “A $50 deductible applies to each repair visit”) should be disclosed. The Buyers Guide should show the duration of the coverage for each system.
Commercial Service Contracts
Dealers are authorized under the Texas Finance Code to sell service contracts and to add the premiums to the amounts financed on motor vehicle retail installment contracts. The service contracts must be issued by companies that are registered with the Texas Department of Licensing and Regulation (TDLR) and the charge must be itemized on the installment contract in a way
11
that clearly reflects what the charge is for, to whom it is being paid, and the amount of the charge. Purchase of a service contract is at the option or the buyer and can’t be required as a condition of sale. Most dealer management software packages will properly place the required disclosure information on the installment contract when the information is entered into the system. Dealers are required to deliver a copy of the service contract to
buyers at closing. The FTC Buyers Guide should be marked to reflect the availability of a service contract for purchase and, if the dealer is not giving a warranty, the “AS IS — NO DEALER WARRANTY” box should also be checked.
Dealer’s Service Contract A TIADA-sponsored bill passed in the 2019 session of the legislature contained an amendment to the rules on issuing service contracts for vehicles that made it
feasible for a dealer to issue and sell its own service contracts. A licensed dealer who sells service contracts only to his or her purchasers can obtain authorization from the Texas Department of Licensing and Regulation to issue service contracts with a reserve deposit of $25,000 (as opposed to $250,000 required of all other service contract issuers). The same rules regarding pre-sale disclosure that apply to commercial service-contract products apply here. In addition to meeting the TDLR registration requirement, the dealer must have a service contract form that meets certain requirements in specifying what is covered and what buyers must do to make claims.
What Not To Do
1. Do not put a “warranty” charge on an installment contract. Warranties come with the sale and are not subject to additional fees. 2. Do not issue warranties to buyers without appropriate warranty agreement forms. The FTC Buyers Guide is not a warranty agreement form. 3. Do not put a service-contract charge on an installment contract if there is no actual service contract issued by a company authorized by TDLR. Examinations performed by Office of Consumer Credit Commissioner personnel include review of installment contracts to determine if such unauthorized charges have been made.
.
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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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10 Auto Dealer Text Messaging Tips to Help You Close More Deals by Amy Garofalo
Marketing Manager, AutoRaptor
I
n today’s world, there are many ways to communicate with customers and sell cars. An increasingly popular method is auto dealer text messaging. While not new, text messaging is a meaningful way to interact with your audiences and help complete sales transactions. In fact, over half of consumers would like to receive text messages from businesses that sell the products they’re looking for. Companies that use text messaging report significantly higher engagement levels—over 80%, with a 209% higher response rate over phone and email. That can turn into a pretty hefty return! But auto dealer text messaging isn’t as simple as it sounds. Some tips and tricks can help your text messaging campaigns and interactions turn into the kind of sales increases you’re looking for.
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10 Auto dealer text messaging tips that will change your business
1
Ask permission first.
Most people don’t like marketing surprises, especially through text. Before you immediately plug someone’s number into an auto dealer text messaging database, give customers the ability to opt-in from the first point of contact. Many of them likely will, and once they’ve opted in, the onus is on them to decide if they want to continue to receive messages. Doing this shows your customers that you care about their privacy and that you only want to reach out to them in a way that’s comfortable for them. 15
on a text. It’s important, then, to make sure that you don’t overwhelm them with too much information or even too many text messages. Send them information relevant to their buying experiences and engage with them if they respond, but keep the word count to a minimum.
2
Schedule appointments and send reminders.
Since text messages tend to be read more often than emails, they can be a convenient way to set up appointments and send reminders. There’s plenty of software to help you do this with ease, so you don’t have to fumble with phone numbers and personal information — in some cases, you can even automate part of
16
the process. Using auto dealer text messaging in this manner can help you stay organized, keep customers informed of important information, and engage them in ongoing dialogue instead of sending emails that never receive a response.
3
Keep it short.
One reason why text messaging is so popular is that it’s brief; people don’t expect to read paragraphs of information
4
Send special offers.
Discounts and other incentive programs can be very effective through auto dealer text messaging. Send people offers that matter to them. You can even include pictures to help further entice and enhance their remote shopping experiences.
5
Get personal.
Another benefit of text messaging is that you can add a personal touch to each communication. Address people by
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name, perhaps refer to your previous interactions and the customer needs you deduced from them. People will be more likely to respond if they feel you’ve reached out to them specifically as opposed to sending out a promotional blast.
6
An alternative to live chat.
Live desktop chat is a popular way to communicate with people, but a poor internet connection or limits on data can reduce the effectiveness of this for people using smartphones (or if they don’t have smartphones). Provide a number on your website for people to text instead, or invest in software that will allow you to respond to desktop chat inquiries via text. You’ll likely find it works wonders for customer engagement.
7
than giving them a handful of paperwork. With order receipts and other information safely stored in a text message, customers will always have easy access to their most important purchasing information.
10
Communicate in real-time.
Finally, auto dealer text messaging is useful in that it can help keep a conversation in real-time, rather than having to wait a day or more to get a call or email
back from a customer. One tip here: Make sure that if you have a responsive customer that you are just as responsive back. Doing so will help to make a customer feel valued while also narrowing the window of time it takes for you to close the sale. Text messaging isn’t the only way you can communicate with customers, of course. But it is an effective way to stay in touch and provide top-notch customer service.
Easy follow-up.
Once you’ve generated some leads, use auto dealer text messaging to follow up on your initial conversation. It can be as simple as a single-line text, just asking if the customer is still interested in discussing a vehicle. Customers can respond at their convenience and likely find your engagement less distracting than a phone call or email.
8
Provide useful updates.
When new products or services come out, use auto dealer text messaging to let customers know. Even if they aren’t on the market for anything new, you’ll stay at the forefront of their minds when they are ready to buy something, and they’ll appreciate that they only have to send a quick text response to find out more.
9
Send receipts.
Text messaging can be a convenient and powerful tool for something as simple as sending a customer a receipt, rather
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on the cover by TIADA Staff
E
arlier this month TIADA unveiled its first ever Certified Pre-Owned program. For years independent dealers have looked for CPO programs that would fit their dealership. Unfortunately, the inventory used car dealers carry did not always fit the programs most providers offered, leaving many dealers without a viable option. About a year ago, the TIADA board started discussing the possibility of creating its own CPO program that might better fit the vehicles TIADA members offer for sale. According to a 2015 Edmunds survey, 88 percent of 2,017 adults polled said that if they were to consider a
18
used car, they would be willing to pay more for a certified pre-owned vehicle. Among these potential CPO shoppers, 37.8 percent said that they would spend up to an additional $1,000 for the benefits of a CPO vehicle, while an additional 36.9 percent said that they would be willing to spend up to $500 more. “The value is there,” said Mark Jones with Mike Carlson Motor Company in Burleson, “we knew the customer would pay more because they would ask us about CPO vehicles all the time. We just didn’t have vehicles with less than 50,000 miles or vehicles that were
still under factory warranty in our inventory.” In October of 2019, TIADA President Robert Beck appointed an ad hoc CPO Committee and charged them with exploring the idea of creating a TIADA CPO Program. The committee started by identifying which vehicles would fit into the program. “This was a big challenge,” said Beck, “there are so many different business models out there.” The committee finally settled on following criteria: CPO Vehicle Requirements: 7-year old vehicle or newer Not to exceed 95,000 miles T e x a s
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Had no previous accidents per CarFax or AutoCheck report Passed a comprehensive 125-point inspection Beck explained that most of the vehicles in his inventory today would not fit this model, but he agreed the committee, and ultimately the board, needed to design
Jones, who currently participates in the TIADA CPO Program, was a featured presenter at the 2020 TIADA Conference & Expo. In his presentation, he discussed how the program can set dealers apart from their competition. During the session, Is the TIADA CPO Program Right for You?, he
“ We believe having CPO vehicles on our lot attracts just the kind of buyers we are looking for and it differentiates us from our competitors.”
635 Fritz Dr. Ste 210 Coppell, TX 75019 469-637-0150
Mark Jones, MCMC, Burleson
a program that the association could stand behind. “I knew early on that my inventory wouldn’t fit the various models we were discussing, but I could also see the big picture, and if I want to change my inventory to fit this program, I could do that. I guess the other side to that story is that this program might not be for everyone.” October 2020
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cited a 2019 Automotive Index survey that indicated millennials make up 56% of all car buyers. He went on to cite an AutoTrader poll that reveled 73% of millennials stated that a certified pre-owned vehicle was very influential to their car buying decision. “We believe having CPO vehicles on our lot 19
attracts just the kind of buyers we are looking for and it differentiates us from our competitors.” The next step was to create the program itself. Again, the committee was challenged with coming up with a program that would work for as many dealers as possible, represent the high standards of the association, and create a marketing advantage when competing with the big franchise dealers. Eddie Hale, from Neighborhood Autos in Decatur chaired the CPO Committee. “We wanted something that would allow us to compete with the franchise CPO programs. It couldn’t just be a 12/12 warranty.” After much debate, the committee agreed to the following programs: (1) Short-term Limited Warranty (12 month), with a Service Contract upsell option. (2) Limited Warranty only. Minimum term of 36 months/50,000 miles. Admittedly, the short-term limited warranty with a service contract upsell is much more complex and can be significantly more cash intensive. Most dealers who participate in this program will opt for the 36 months/50,000 miles warranty. Hale added, “Some
people might think the terms of the warranty are a little aggressive for used car dealers, but the committee tried to stay focused on developing a program we could be proud of. We might have to revisit it in a year or two, but this is something our members should be very proud to put the TIADA logo on.” To offer a true certified preowned program, it must be administered or backed by a third-party provider. Why is that important? Those millennials who are googling vehicles are including CPO in their search. A dealer can’t just put CPO on a flyer and advertise CPO vehicles. TIADA has partnered with NIADA to help identify and select approved providers. Approved providers have specific requirements they must adhere to as well as the dealers, including dealer audits. To create more integrity, TIADA requires any CPO provider to conduct scheduled audits for each dealer to make sure they are applying the program correctly. Dealers who are interested in the TIADA CPO Program can contact TIADA for a list of current providers. “Our program is called ‘The TIADA CPO Program powered by NIADA.’ It just made the most
sense for us to partner with NIADA. They have much more expertise and experience in this area and they have been invaluable when it comes to helping us select providers,” said TIADA Executive Director Jeff Martin. “We weren’t seeing much traction with the standard NIADA CPO program, so we worked with NIADA to come up with a Texas program. Our dealers simply felt the TIADA logo would have more value in Texas. If you are a Texan, I don’t have to explain it, Texans are very proud of Texas.” With that said, the only thing left to do was to select a logo. Martin laughed about that being the biggest battle, “Some people wanted the logo to be the state of Texas others wanted the Texas flag. As I said earlier, Texans are passionate about Texas.” The final logo incorporates the Texas flag and a little bit of the current TIADA logo. The goal was to create a program used car dealers could participate in that would allow them to market their vehicles online and compete with franchise dealers offering CPO vehicles. The program might not be for every dealer in Texas, but at least it gives dealers another option to explore.
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STOCK#__________________VIN:________________________________________ODOMETER:____________YEAR:_____MAKE:________MODEL:_______ _COLOR:____ DEALER NAME:______________________________________________________________________________________DATE:______________________ _____________ INSPECTED BY:________________________________________________________________________SIGNAURE:_______________________________ ______________
This certifies that the above vehicle has been inspected, and any necessary repairs that have been made to qualify this vehicle for the TIADA Certified Limited Warranty, are the SOLE responsibility of the Selling Dealer for the term of the TIADA Certified Limited Warranty. Any persons knowingly and willfully falsifying or concealing information in regards to this inspection would be committing a crime, and will be prosecuted to the full extent of the law.
CPO CERTIFIED VEHICLE 125 POINT INSPECTION CHECKLIST QUALIFICATION STANDARDS
Passed Replaced
MECHANICAL STANDARDS:PRE-ROAD TEST— cont.
1. Vehicle history report pulled & provided by: ________________________________________________
Operational & Functional Checks (cont.):
2. Odometer is actual miles
44. Cool Seats
3. Not a buyback vehicle from factory
45. Heating system
4. No branded or salvaged title
46. Air conditioning
5. No known frame damage per vehicle history report
47. Turn Signals
6. No visible damage that would substantially impact the safety of the vehicle
48. Hazard lamps
Passed Replaced
91. Ball joints
ROAD TEST
93. Engine is operating properly & no obvious sings of problems 94. Engine oil pressure are within normal range levels 95. Temperatures are within normal range levels 96. Clutch is operating properly (manual transmission)
51. Headlamps
9. No visible exhaust modifications
MAINTANANCE REQUIREMENTS
97. Transmission is shifting properly & quietly
52. High beam
10. List stored codes: _________________________________________________
98. Vehicle is free of vibrations &/or unusual noises of any kind
53. Low beam Passed Replaced
99. Air conditioning & heating working properly on all settings
54. Interior lamps
11. Current manufacturer required maintenance performed
55. All power windows
12. Vehicle has no open safety-related recalls
56. Parking brake
13. Emission system is functioning & meets state required standards
57. Fog lamps
MECHANICAL STANDARDS:PRE-ROAD TEST All items are operational & properly functioning
100.Gear selector operating 101.Steering wheel aligned 102.Anti-lock brake system working properly 103.Overall stopping performance is good
58. Windshield wiper system Passed Replaced
Underhood Checks: 14. Hood release is in working condition
104.Vehicle alignment within specifications
59. Wiper blades in good condition
Equipment operation:
60. Rear wiper in good condition
105.Cruise control
61. Rearview mirror
15. Brake fluid is clean and full
106.Overdrive
62. Sideview mirrors
16. Brake system is free of leaks
107.Instrument panel/gauges
63. Rear defroster
17. Power steering fluid is full 18. Power steering fluid is free of contamination and discoloring 19. Wiper/Washer fluid is full
108.Sound &/or entertainment system
64. Seat belts
EXTERIOR CONDITION
65. Tilt steering wheel
110.Grill trim, & roof rack are in place & secure
Under vehicle:
21. Intake & exhaust manifolds are free of cracks & leads
111.Bumpers are in place & secure
67. Convertible top
22. Transmission fluid is at prescribed level
69. All factory installed options working properly
112.Body panel damage? If so, please list: _______________________________________ _______________________________________ _______________________________________
70. Transmission is free of cracks & leaks
113.Glass is free of cracks & major chips
68. All manual switches
23. Transmission fluid is clean & free of contamination 24. Head gasket is free of leaks 25. Radiator coolant is at the prescribed level 26. Radiator is free of leaks 27. Radiator coolants tested to_______________ (in degrees +/-)
71. Transmission seal is free of cracks & leaks
114.Headlights are free of damage & moisture
72. Transfer case (when applicable) is free of cracks & leaks
115.Headlights are all working
73. Rear axle case is free of cracks & leaks
116.Brake lights are free of damage & moisture
28. Belts are free of cracks, bulges & frays
74. Front axle (when applicable) is free of cracks & leaks
117.Brake lights are all working
29. Hoses are free of cracks & leaks
75. All structural components are free of impact damage
118.All turn signal lights are working
30. Vacuum lines are free of cracks & leaks
76. Exhaust system free from damage & leaks
119.Any other obvious signs of damage? If so, please list: __________________________________________ __________________________________________ __________________________________________
77. Catalytic converter in place
Operational & Functional Checks:
TIRE STANDARDS
31. Operational key
Passed Replaced
78. FRONT: Both matching brand & size
32. Key fob with remote keyless entry working
122.All handles & knobs are intact & present
81. Wheels & tires must be within factory recommended sizes
35. Trunk/Litigate release & latches
123.All required seatbelts intact
82. Tires are free of bubbles & major cracks
36. Seat adjusters
124.All seatbelts functioning
83. Wheels are free of major cracks & damage
37. Steering column adjuster
84. Tires are properly inflated
38. Ignition switch
BRAKE STANDARDS
39. Malfunction indicators & warning lamps
85. Parking brake & cables are fee of seizing & are operational
40. Air bag system
86. Brake rotors & drums are fee of rust, scoring, pitting or deep gouges
41. Trip computer
SUSPENSION STANDARDS
42. Overhead console
87. Shock absorbers/struts
43. Heated seats
88. Coil springs/leaf springs
Passed Replaced
121.No major rips or tears in seating
80. Tread depth must be of 5/32” or greater
34. Door locks (all switches)
INTERIOR CONDITION 120.Headliner intact
79. REAR: Both matching brand & size
33. All doors open & close properly
Passed Replaced
109.No evidence of flood, fire or major hail damage
66. Sunroof
20. Charging system working correctly
Passed Replaced
92. No abnormal wind noise
50. Brake lamps
8. Not visible suspension modifications
Passed Replaced
90. Control arms
49. Horn
7. No visible performance modifications
SUSPENSION STANDARDS — cont. 89. Sway bars
Passed Replaced
125.List any missing equipment please: __________________________________________ __________________________________________ __________________________________________ __________________________________________
Passed Replaced
BY SIGNING THIS FORM, I CERTIFY THAT I HAVE RECEIVED: ⚫ A COPY OF MY VEHICLE HISTORY REPORT ⚫ A COPY OF MY 125 POINT INSPECTION CHECKLIST AND UNDERSTAND WHAT MY LIMITED WARRANTY IMPLIES. NAME:___________________________________________________SIGNATURE:____________________________________________________DATE:____________________
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feature The Follow Up Email by Chris Vitale
VP of Sales, Phone Ninjas
I
n a perfect world, the customer would answer their phone on the first call. But that’s not always the case. If the customer doesn’t answer their phone, you want to make sure you start with a voicemail that gives your customer a reason to call you back. Once you’ve left a voicemail, it’s time to send the email. Here are the key items to include in both your voicemail and email.
What to Include in Your Voicemail
When leaving a voicemail, be sure to say, “Good [morning, afternoon, evening] this is [name] with [dealership]. Great News! The [vehicle] is available. Are you available [option one] or [option two] to come in for a test drive? We are located [location - this is *KEY*, you don’t want the customer to get confused as to where you’re located]. I can be reached at [number] and will follow-up with an email shortly. I look forward to speaking with you [customer name]. October 2020
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The end-goal is to get a hold of the customer and to make that happen, you have to give the customer a reason to call you back, creating a sense of urgency. It’s also just as important to include the above information. That is your name, dealership name, confirmation of the vehicle, directions, and a clear outlined follow-up. We have to remember that the customer could have inquired from a third-party lead source (or multiple stores). So, when you do call them and don’t mention your dealership name, they might not know what dealership you’re calling from.
Key Elements to Include in Your Follow-up Email
Let’s face it, we all get a lot of emails daily. Having a compelling subject line, and a solid email can make or break whether the customer responds or calls you back. It’s also equally important to read the lead first. That’s 23
making sure that “if ” the customer has asked a question, you address it in the reply email. By doing so, the customer can easily acknowledge that you’re assisting them!
Here’s an example of an email you can send your customers SUBJECT LINE: you want your email to stand out
to the customer, and more importantly, that your email lands in their inbox and not the “promotions” folder, or worse, a spam folder. To combat this, you want to make sure your subject line is both catchy and relevant. For example, if the customer inquiries on a pre-owned Toyota Camry your subject line could be: [customer name], your Toyota Camry is available! Using the customer’s name + vehicle + availability makes your email stand out, and it can also pique the customers’ interest.
EXAMPLE EMAIL: [first name], Thank you for inquiring on the [vehicle] here at [dealership]. Great news! Your [vehicle] is available! I
confirmed that your [vehicle] does have CarPlay! Here is a video I created for you. [Insert inventory link] — (you can also include one or two other options to inquire about flexibility or if you have other value options.) What time works best for you to come in this morning? I have both a 10:15 or a 10:45 AM available. Keep in mind, [first name] here at [dealership] it is about — YOU! We offer hassle-free appointments, a VIP Program which includes maintenance, and so much more. We are conveniently located at [location]. In the meantime, [first name] check out what our customers are saying about us! (insert review page link). We look forward to working with you! Regards, [signature line] As you can see in the email, it answers the customer’s question and lays out next steps. That’s coming into the dealership to test drive (or a home/office sanitized test drive, whichever is applicable). The email also made sure to offer where your dealership is located, value statements (how your dealer stands out from the competition), and, more importantly, a reason for them to respond!
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TIADA texas independent automobile dealers association
Become a TIADA Member Business Name: ____________________________________________ Select one:
Dealer Member
Associate Member
Contact Person: ____________________________________________ Address: __________________________________________________ City: _________________________________________ State: _______ Zip: __________________ County: _____________________________ E-mail address: _____________________________________________ Business Phone: _______________________ Fax: ________________________ Cell Phone: ___________________________________________ Dealer P Number: ___________________________________________
TIADA texas independent automobile dealers association
Membership Dues: $499 New Member
Good through 12/31/2021. Pay full amount today and receive the rest of 2020 for free.
Renewing Member
good through 12/31/2020. Dues include NIADA and local chapter membership where applicable.
Who referred you to TIADA? __________________________________ Mailing Address (if different from above): __________________________________________________________ City: _________________________ State: _______ Zip: ___________
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) Via Bank Draft (Authorization Agreement required - contact state office)
Mail or Fax Application To: TIADA Membership Services, 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750 FAX 512.244.6218
www.txiada.org
512.244.6060
Dues are not deductible as charitable contributions for income tax purposes but may be deductible as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20 percent of your dues dollars is used for lobbying activities and is therefore not deductible.
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Buy Recordings
Access the Top Dealer Education Now! The heart and soul of the TIADA Conference is our education – over 20 hours’ worth. While the quantity is impressive, attendees always leave talking about the quality. From owners and GM’s to your newest greenhorn staffers, the TIADA Conference has something for everyone.
• • • • • • • •
•
When a Pandemic Forces Us to Revisit the Basics BRENT CARMICHAEL NCM Associates
The Accelerated Future of Car Shopping and Buying
•
JESSICA STAFFORD Autotrader & Kelley Blue Book
HR Considerations During a Pandemic
•
JOE RIVERA Naman Howell Smith & Lee
TxDMV Is Here to Help CORRIE THOMPSON & DAVID GEORGE Texas Department of Motor Vehicles
•
Ad Copy Cures: Set a Positive Tone in Advertising Post-Pandemic
•
LINDSAY SHEARON Dealer OMG
ERIC JOHNSON & ANDREA COTTRELL Hudson Cook, LLP
Amplifying SEM for a Measurable Sales Lift RON MORRISON Pureinfluencer, LLC
Finding the Right Financial Partner for BHPH — The PostPandemic Sequel KEN SHILSON Subprime Analytics & NABD
Effective Communication Leads to More Sales and More Referrals JAY ROSE Global Training Solutions
Is the TIADA CPO Right for You? MARK JONES Mike Carlson Motor Company (MCMC)
One on One with Tricolor Founder and CEO Daniel Chu
•
DANIEL CHU Tricolor
Disruptive Innovation: Threat or Opportunity? TIM KINTZ The Kintz Group
Paycheck Protection Program (PPP) and Other CARES Act Tax Planning DAVID WIGGINS CLA (CliftonLarsonAllen)
Remote Sales, Internet Sales, Appointment Only and Curbside Delivery — Know the Legal Minefields
•
Tax Audits: What to Expect and How to Stay Compliant JANITA JASTER Texas Comptroller
Survive and Thrive by Understanding the Evolving Customer Journey
• • • • • • •
In-Depth Q&A with Two Masters of Collections BRENT CARMICHAEL NCM Associates JAY ROSE Global Training Solutions
One Size Doesn’t Fit All: A Dealer’s Guide to Facebook Ads DANE SAVILLE Reunion Marketing
How to Build It, Grow It, Protect It and Die Happy MARK BURKHOLDER Peachtree Planning
Stay Legal and Compliant — Repos, Bankruptcies, Disclosures MICHAEL W. DUNAGAN Jameson & Dunagan, P.C.
BHPH Unplugged
National Dealer Panel Discussion
Going Back to Basics — Keeping Your Accounting Records Clean KEVIN ROY CPA
Exams: During and After COVID
HUFFMAN LEWIS Office of Consumer Credit Commissioner
ALI FAWAZ Reputation.com
Session Recordings $250
Available through November 16 4 22 Presentations including Panel Discussions 4 24-Hour Access on Desktop & Laptops 4 For You and Your Co-workers
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feature
Dealer Pulse: Inventory Shortage, Hurricane Season Throw Texas Dealers Some Curveballs
SPIRITOFAMERICA - STOCK.ADOBE.COM
by TIADA Staff
I
nventory. A word likely to come up within the first couple of sentences of a conversation with an independent dealer. It’s well known that many used car dealers are dedicating more time to beef up their inventory these days. But the question is—what are dealers doing to manage inventory, how are they doing it, and how are they faring during one of the most active hurricane seasons? (Okay, three questions.) Texas Dealer reached out to a few dealer members along the coast to hear how they are managing their inventory and moving ahead with their businesses during the pandemic and hurricane season.
Expanding the Market
Inventory is down at least 30 percent, according to the dealers Texas Dealer visited with in September. Harold Tarver of A2B Auto Sales, a dealer in North October 2020
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Houston who joined TIADA in 2020 is taking it in stride, continuing to go to the auctions and taking a bit more time before moving forward with a purchase. “With vehicle prices being higher right now, it’s a more tedious process as far as checking out the cars and making sure it’s a good buy,” said Tarver. In response to this shortage, a few dealers shared that, in addition to going to the auctions they customarily visit, they are also exploring other avenues. “We’re taking advantage of being able to use the online auctions,” said Christina Sabillón of Mi Tierra Auto Sales in Houston. “In our case, the numbers have been flipped. We now do approximately 80 percent online, 20 in-person.” Several dealers shared they are spending more time on the road, searching for inventory. For instance, located just outside of Houston, Vicki Davis of A-OK 27
Auto Sales in Porter says they now sometimes buy vehicles in San Antonio and Austin. Similarly, Cristo Mendoza of Mendoza Auto Sales in Donna, who typically visits auctions in San Antonio, has now also started purchasing vehicles in other cities, including El Paso, and then coordinating transport of the vehicle back to his dealership. Efforts to acquire inventory don’t stop there for some dealers. “Another outlet we’ve started utilizing is going directly to a new source, like carLubbock_TIADA rental companies. JULY-TLSAA ad.pdf 1
We’ve gone directly to them to see if they’ll sell directly to us. We’ve been picking up inventory that way as well,” noted Christina Sabillón.
Pushing Past Uncertainty
“I think a lot of people are just scared, scared of what’s going to happen, what the future’s going to be. With unemployment, the election, there’s a whole lot of uncertainty,” said Davis. With multiple variables in play, projecting sales and needed inventory over the long-term can be 6/30/20 10:55 AM
a challenge. For example, Lowell Rogers of 11th Street Motors, a BHPH dealer in Beaumont, says they saw an uptick in sales when stimulus checks were distributed, but have recently noticed sales slowing down. Without knowing if another stimulus payment is coming, he says they’re approaching things “one day at a time,” adding, “I’m not loading up the lot completely because I feel the prices are going to come down between now and the end of the year.”
Trade-Ins
At A-OK Auto Sales, Vicki Davis says her staff has focused on calling and emailing customers to see if they want to trade in their vehicles. “Before the pandemic, we used to wait until customers were paid down lower, but now we’re reaching out to them sooner and trying to get them to pay off their vehicle; for those who are paid off, we try to see if they want to come in and trade in.”
Identifying Customer Needs
Cristo Mendoza says he has adjusted his strategy for acquiring inventory by going directly to his customers to better understand their needs. He says his dealership has added a new “Car Finder” page to their dealership website as a way to limit their inventory to only “certain used cars based on specific customer requests.” The page allows interested buyers to enter desired make, model, year and mileage for the vehicle they are needing along with price and the customer’s contact information.
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Keeping An Eye Toward The Sky
To make matters more challenging, the highly active 2020 hurricane season has dealers along the coast keeping an eye toward the sky. Located in Beaumont, Rogers vividly recalls his experience with Hurricane Harvey in 2017. “We got lucky in the sense that we didn’t lose any cars. We knew a hurricane was coming, nobody had 28
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any idea what kind of rain that was going to be carrying. The forecast said 50 inches of rain, and I didn’t believe them. I thought there’s no way it’s going to rain 50 inches— well, it did.” Those who experienced the impact of Hurricane Harvey and other storms have since walked away with a few lessons learned that they say have prepared them for future storms, including:
Planning Ahead
Be ready to move your inventory. “Stay in tune with the weather, pay attention to what’s going on, particularly how much rain you’re going to get; if you are located in a flood zone or have flooded in the past, be ready to move those cars. Find some place to put them on higher ground,” Rogers of 11th Street Motors in Beaumont said. Doing so saved his inventory from flood damage. “Insurance companies will want to know what your plans are also in case of a flood,” he added.
Checking for Flood Damage
About 45 minutes from the closest Louisiana auction, Rogers says hurricane season means heightened awareness. “If you know the area is somewhat flooded, we look at that car closely to determine whether that car has been under water in any form. We’ll check the trunks, look for signs of residue being in the trunk or up underneath the seats, we’ll check all the metals underneath the seats. We’re looking for waterlines particularly inside door jams.” “Water lines are key,” said David Sabillón of Mi Tierra Auto Sales. “If you have the ability to physically touch the vehicle, inspect it, go look to see if there is a differential in the lines in the motor to see if there are water lines, rust underneath, a smell indicating possible mold, lifting the carpet and pulling up panel off the door. You can catch mud and leaves on that bottom panel door.”
Rebuilding Customer Trust
Following Harvey, Rogers says building customers’ trust,
particularly after such a devastating event, is important. “We have a pretty big Facebook presence, so we shot a commercial and I basically went through walk arounds to show customers what we look for and give them reassurance that we’re not out there buying flood cars and turning around and trying to sell them these vehicles.” In that commercial, Rogers encouraged customers to use the same practices to look at the cars they were considering, as a way of helping them determine whether they had any issues or maybe flood damage.
Know Before You Go
There is more to consider when purchasing a vehicle, particularly during the hurricane season, said Orlando Orijo with The Majestic Star Group, a dealer in Houston who also recalls his experience with Harvey. When inventory is tight, Orijo says that, as a small business, he makes sure to follow these practices closely:
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Be aware of arbitration proce dures for each auction, including procedures related to flood damaged vehicles. “Every auto auction has a different arbitration policy,” he added, “so it’s very important to check before you start buying these cars. You want to protect your business,” Orlando said. Take your time, preview the ve hicles one day before Even if there is no flood damage, inspect your car Certainly, there is no one way dealers are approaching the
changing landscape. However, after visiting with several dealers who are located along or near the Texas coast, the general feeling among these dealers might be best described as cautiously optimistic. Despite the various challenges presented by the pandemic and now the hurricane season, dealers shared some positive words about the industry as well. For instance, Rogers describes meeting customer demands as “manageable” overall. “As long as you’re getting them into a car that’s affordable to them, the results are typically going to be the
same. The good times are not going away. Business is a little better than we predicted it would be even though price of inventory is what it is.” At the end of the day, Christina Sabillón says “transportation is always going to be a necessity, an essential, so the demand will always be there.” And for those just starting out with their business, she added, “If anyone’s brave enough to start a dealership at this time, know that your vision of providing transportation for the public and being able to do that is still possible.”
On August 25, 2017, Hurricane Harvey, the first major hurricane to hit the United States in over a decade came ashore in Texas. As expected, many communities in its path along the coast suffered extensive damage. The highest rainfall total recorded by the National Weather Service was 51.88 inches in Cedar Bayou, TX. Other parts of the region, including portions of the Houston metropolitan area, saw rainfall totals exceeding 40 inches in just a few days. All this water created extensive flooding that devastated large portions of the state, destroying homes, businesses and property.
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Want to avoid being fined again for non-compliance? Dealer Academy The Texas License Renewal Education Course provides the ins and outs of being a dealer in Texas in a self-guided online course, available 24/7. This is the same course required by the TxDMV to renew a GDN license, so it covers all the important subjects including: • Staying compliant with TxDMV regarding premise requirements • Acquiring Inventory • Temp Tags and Metal Dealer Plates • Buyer’s Guide • Deal Jacket Documents
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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.
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feature
20 Groups — In Good Times and In Challenging Times by TIADA Staff
Y
ou have probably heard the term before, but for those of you who are new to the concept, a 20 Group consists of approximately 15-20 dealers from different geographical areas that come together several times a year to exchange best practices on every aspect of the independent dealer business. These dealers are guided and coached by an industry expert called the moderator and use benchmark data as their foundation. There are 20 Groups for BHPH, Retail, LHPH and also 20 Groups with a narrower focus such as Finance, Collections, Service, Accounting, etc. “Groups are structured to accommodate pretty much any size, time in business, DMS or model,” said Brent Carmichael, a long-time 20
Houston. “There were about 10 of us, everyone in a similar situation in that we all needed that something else in our business because business wasn’t clicking the way that it should. That first 20 Group has been a family to me for nearly 15 years,” Zak added. With travel restrictions due to COVID-19 many 20 Group meetings are now taking place via online platforms and in quite a different format. Instead of the one to three full days, they have adapted according to the needs. “In the early stages of the pandemic our 20 Group was meeting for two to three hours every two weeks,” said Jon Turan with MCMC in Burleson, a dealership that has participated in 20 Groups since 1996. Russell Moore with Top Notch Used Cars in
Groups moderator with NCM Associates, a company that has over 5,000 group members in 465 different groups. “We have even developed a virtual 20 Group meeting product for groups that would prefer not to travel at this time,” added Carmichael. It is during these challenging times that many dealers have turned to their 20 Groups family for continuous support. “I recall the first meeting I had in Sarasota, FL,” says Greg Zak with Dixon Motors in
Conroe misses the face-to-face time with his closeknit group of 5 years, but they continue to communicate on a regular basis to share knowledge. “I have [received] so many benefits from the group; one of the biggest is my wonderful members that I lean on daily for advice,” Russell commented. And it seems that many dealers agree on the benefits a 20 Group can provide for their dealership as long as there is a full commitment not only to
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actively participate but also to implement the learnings when you return to your dealership. Brad Kalivoda with Fiesta Motors in Lubbock refers to it as the accountability factor: “Knowing that you have verbally expressed your plans to move your company forward to a group of peers helps keep you motivated to accomplish those tasks and report back the results at the next meeting, therefore driving results.” This is a sentiment shared by longtime 20 Group participants as well as new ones like Kaleb Bryan with Auto Cave in Dallas who joined a group less than a year ago because he was looking to gain wisdom and insight from other dealers who have been in business longer. Bryan expressed that, “No matter how big or small your operation may be, if you come with an open mind, you will leave with valuable information that can directly impact the financial result of your operation. The choice is yours on how you utilize the wisdom gained.” Blake Ingram with Auto City in Dallas first joined a group 24 years ago as he was coming off one of his worst years in business and felt like he needed to expand his knowledge by getting out of his bubble. “Breaking out of that bubble helps you find solutions you wouldn’t have thought of otherwise. Even after 24 years, I still find new ideas and strategies to tackle this ever-changing business,” shared Ingram.
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Despite the benefits, 20 Groups are not for everyone. Some dealers feel they will be sharing too many secrets and would rather hire consultants to come in and focus specifically on their dealership. Many dealers prefer to spend their time and money sending their staff to education that addresses precise issues as they come up. 20 Groups are more of a holistic approach to problem solving at the dealership. Depending on the 20 Group you belong to it can also be quite costly and time consuming to participate as some groups include trips to lavish locations and, being away from the dealership for several days at a time, several times a year, might also not be feasible for many dealers. Joining a 20 Group does not mean you make a lifetime commitment and you might find out that breaking away is what your dealership needs at some point. “After many years with the same two groups we felt it had run it’s course. We had a very solid game plan and felt that leaving the office for up to six times a year was only distracting us from staying on course,” shared Kalivoda who recently decided to take a break from his groups. Greg Zak concurs, “Last year I decided to take a hiatus after 12 years of belonging to a group and it has given me the time to really work at my dealership and still put in practice all of the many things I’ve learned over the years.” Nevertheless, participating in a 20 Group seems to be a common trait among many successful dealers. Chuck Bonanno, a 20 Group moderator with NIADA, gave us an example of the power of 20 Groups pointing out that while 30-35% of small businesses in general got PPP loans, 97% of 20 Group members were able to secure one. According to Bonanno, “There is no better time to join than during uncertain and challenging times. We are in the midst of unique and challenging times and we see more of the same for our future; with the pandemic, potential long-term recession and potential changes in Washington, D.C., there will be challenges and opportunities and we want our 20 Group members to be prepared in any situation.” Jon Turan agrees saying “this may very well be the best time ever to join one as the pandemic has already drastically changed most independent dealers ‘models’ since March and without question will continue to have effects on our ‘models’ for the foreseeable future. Joining a 20 Group will very likely open your eyes to the weak spots in your business while, at the same time, help you to improve both your efficiencies and profitability.”
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Local Chapters resource guide The TIADA Website: www.txiada.org Members can log in with their username/ password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.
License Renewal Certificate TexasDealerEducation.com
Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov
Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov
Texas Comptroller 800.252.1382 www.window.state.tx.us
NIADA 800.682.3837 www.niada.com
CORPUS CHRISTI G.R. Moore The Car Shack (dates announced at www.txiada.org)
EL PASO Cesar Stark S & S Motors Meeting – 3rd Friday (Monthly)
FORT WORTH 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
REPOSSESSIONS
American Recovery Association 972.755.4755 www.repo.org or contact TIADA state office
Dennis Schroller Victoria Autos Direct Meeting – 1st Monday (Monthly)
FORMS Burrell Printing 800.252.9154 www.burrellprinting.com
October 2020
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feature
Pandemic Auto Shoppers Are Eager for Online Tools and Promotions by Daniel Maynard
Director of Automotive, Adtaxi
A
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dtaxi — one of the nation’s fastest-growing digital marketing agencies — announced last month the results of its second Coronavirus and Automotive consumer survey, which examines trends in response to the crisis among consumers in the market for new or used vehicles. According to the study, 70% of respondents have lowered their budget due to the pandemic — and though 66% are considering both new and used, 56% report they have shifted their focus from new to used vehicles.
that speaks to auto shoppers’ new phase of research and price comparison will be the gold standard for responsive and effective brand strategy.” This study follows Adtaxi’s May 2020 Coronavirus and Automotive consumer survey, which showed shoppers making nimble adjustments to pandemic precautions: 63% reported interest in home test drives (69% in the new study) and 60% reported being more inclined to purchase if the dealership offered home delivery (55% in the
With lower budgets comes renewed research. As pandemic precautions continue, 49% of respondents say they will spend more time comparing prices and promotions online. 46% anticipate spending more time comparing makes and models online, and 43% will spend more time comparing dealerships online. “The Coronavirus pandemic has made a lasting impact on the auto shopping experience. This study not only shows the resiliency of potential buyers but offers a roadmap for dealers to best adapt and reach consumers at their new budgets and comfort levels,” said Daniel Maynard, Director of Automotive, Adtaxi. “For the remainder of 2020 and beyond, digital marketing
new study). The May 2020 study also found respondents embracing the shift to digital, with 90% comparing makes and models online, 87% comparing prices and promotions online, and 83% comparing dealerships online. Among the newest findings:
Economic Uncertainty
Among respondents who are planning to postpone their auto purchase or lower their budget, 35% blame a drop in income, while 54% say they are being fiscally cautious due to economic uncertainty. Additionally, 11% report that buying an automobile is no longer a priority. T e x a s
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Adaptive Solutions
75% say they would be more inclined to purchase a new or used vehicle today if they could delay payments, consistent with 72% in the first study. Further, 68% report that information on financing options is useful to them, up from 61% in the first study.
Brand Loyalty
As more incentives and deals become available, price and value are growing in importance - at the expense of loyalty. 45% report they will continue shopping their preferred brand or model, while 54% say they are looking for the best deal, regardless of brand.
Consumer Confidence
The majority of respondents (54%) believe that local dealerships are consciously taking steps to ensure their safety. Meanwhile, 42% find current automotive advertising helpful to them — up from 39% in the first study. “This second study is a valuable opportunity to track consumer preferences over time. In our first study we found auto shoppers embracing a new digital normal during the pandemic. With key results remaining steady through the fall, it’s clear that consumer habits are being crystallized and embedded for the long haul,” said Maynard. “The sooner dealers adjust to this tectonic shift in shopping habits, the better positioned they will be for the next phase of the pandemic and its consumer response — whatever that may be.”
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• EPI EL PASO • CARWAVE
METRO AUTO AUCTION – DALLAS
Methodology
This survey was conducted for Adtaxi online via Survey Monkey. A national sample of 624 adults were surveyed - each of whom indicated via a screener question that they were in the market for a new or used vehicle. The survey was conducted on August 28, 2020 with respondents spanning across U.S. geographic regions, income levels, gender and age. The May 2020 Coronavirus and Automotive consumer survey used Survey Monkey to study a different national sample of 581 adults who self-identified as in the market for a new or used vehicle.
AUTONATION AUTO AUCTION HOUSTON LAKE CHARLES AUTO AUCTION
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METRO AUTO AUCTION – AUSTIN
Find Adtaxi on Twitter, LinkedIn and Facebook. October 2020
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TIADA Auction Directory 2020
Save thousands on buy or sell fees at these participating auctions! * VALID FOR SELL FEE ONLY AT INSURANCE AA LOCATIONS ** ONLINE AUCTION AVAILABLE
Abilene
IAA AUSTIN*
ALLIANCE AUTO AUCTION ABILENE
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$AVE : $200
www.cmauctions.com
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METRO AUTO AUCTION AUSTIN
$AVE : $200
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IAA ABILENE*
CORPUS CHRISTI AUTO AUCTION
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Amarillo
IAA CORPUS CHRISI*
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$AVE : up to $200 Sell Fee
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Dallas-Ft. Worth Metroplex
Austin
ADESA DALLAS
ADESA AUSTIN
www.adesa.com 3501 Lancaster-Hutchins Rd., Hutchins, TX 75141 972.225.6000, Fax 972.284.4799 GM: Allan Wilwayco Thursday, 9:30 a.m.
www.adesa.com 2108 Ferguson Ln, Austin, TX 78754 512.873.4000, Fax 512.873.4022 GM: Rich Levene Tuesday, 9:00 a.m.
$AVE : $200
$AVE : $200
NEW
ALLIANCE AUTO AUCTION DALLAS
www.allianceautoauction.com 1550 CR 107, Hutto, TX 78634 737.300.6300 GM: Brad Wilson Wednesday, 9:45 a.m.
www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136, Fax 469.828.8225 GM: Chris Dean Wednesday, 1:30 p.m.
AMERICA’S AA AUSTIN / SAN ANTONIO
AMERICA’S AA DALLAS
$AVE : $200
www.americasautoauction.com 16611 S. IH-35, Buda, TX 78610 512.268.6600, Fax 512.295.6666 GM: John Swofford Tuesday, 1:30 p.m. / Thursday, 2:00 p.m.
$AVE : $200 38
$AVE : up to $200 Sell Fee
www.metroautoauction.com 8605 Cullen Ln., Austin, TX 78748 512.282.7900, Fax 512.282.8165 GM: Brent Rhodes 3rd Saturday, monthly
C.M. COMPANY AUCTIONS, INC.
ALLIANCE AUTO AUCTION AUSTIN
www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126, Fax 512.385.1141 GM: Geoffrey Rabb Tuesday, 9:00 a.m.
$AVE : $200
www.americasautoauction.com 219 N. Loop 12, Irving, TX 75061 972.445.1044, Fax 972.591.2742 GM: Ruben Figueroa Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.
$AVE : $200
IAA DALLAS*
www.iaai.com 204 Mars Rd., Wilmer, TX 75172 972.525.6401, Fax 972.525.6403 GM: Joshua Boyd Wednesday, 9:00 a.m.
$AVE : up to $200 Sell Fee
IAA DFW*
www.iaai.com 4226 East Main St., Grand Prairie, TX 75050 972.522.5000, Fax 972.522.5090 GM: Robert Brown Tuesday, 9:00 a.m.
$AVE : up to $200 Sell Fee
IAA FORT WORTH NORTH*
www.iaai.com 3748 McPherson Dr., Justin, TX 76247 940.648.5541, Fax 940.648.5543 GM: Jack Panczyk Tuesday, 9:00 a.m.
$AVE : up to $200 Sell Fee
MANHEIM DALLAS**
www.manheim.com 5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800, Fax 214.339.6347 GM: Rich Curtis Wednesday, 9:00 a.m.
$AVE : $100
MANHEIM DALLAS FORT WORTH**
www.manheim.com 12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000, Fax 817.399.4251 GM: Nicole Graham-Ponce Thursday, 9:30 a.m.
$AVE : $100
METRO AUTO AUCTION DALLAS
www.metroaa.com 1836 Midway Road, Lewisville, TX 75056 972.492.0900, Fax 972.492.0944 GM: Scott Stalder Tuesday, 9:00 a.m.
$AVE : $200
TEXAS LONE STAR AUTO AUCTION www.tlsaa.com
2205 Country Club Dr., Carrollton, TX 75006 214.483.3597, Fax 214.483.3814 GM: Patrick Stevens Tuesday, 1:00 p.m. / Thursday, 2:00 p.m. $AVE : $200
El Paso EL PASO INDEPENDENT AUTO AUCTION www.epiaa.com 7930 Artcraft Rd, El Paso, TX 79932 915.587.6700, Fax 915.587.6700 GM: Luke Pidgeon Wednesday, 10:00 a.m.
$AVE : $200
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IAA EL PASO*
www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489, Fax 915.852.2235 GM: Jorge Resendez Friday, 10:30 a.m.
$AVE : up to $200 Sell Fee
www.iaai.com 2535 West. Mt. Houston, Houston, TX 77038 281.847.4700, Fax 281.847.4799 GM: Alvin Banks Wednesday, 9:00 a.m.
$AVE : up to $200 Sell Fee
IAA HOUSTON NORTH*
MANHEIM EL PASO
www.manheim.com 485 Coates Drive, El Paso, TX 79932 915.833.9333, Fax 915.581.9645 GM: JD Guerrero Thursday, 10:00 a.m.
$AVE : $100
www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300, Fax 281.443.4433 GM: Christina Nieves Thursday, 9:00 a.m.
$AVE : up to $200 Sell Fee
MANHEIM HOUSTON
Harlingen/McAllen IAA MCALLEN*
www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393, Fax 956.464.8510 GM: Ydalia Sandoval Tuesday, 9:00 a.m.
$AVE : up to $200 Sell Fee
BIG VALLEY AUTO AUCTION**
www.bigvalleyaa.com 4315 N. Hutto Road, Donna, TX 78537 956.461.9000, Fax 956.461.9005 GM: Lisa Franz Thursday, 9:30 a.m.
$AVE : $200
www.manheim.com 14450 West Road, Houston, TX 77041 281.924.5833, Fax 281.890.7953 GM: Brian Walker Tuesday, 9:00 a.m. / Thursday 6:30 p.m.
$AVE : $100
ADESA HOUSTON
www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800, Fax 281.580.8030 GM: Angela Williams Wednesday, 9:00 a.m.
$AVE : $200
AMERICA’S AA HOUSTON
www.americasautoauction.com 1826 Almeda Genoa Rd, Houston, TX 77047 281.819.3600, Fax 281.819.3601 GM: John Swofford Thursday, 2:00 p.m.
$AVE : $200
AMERICA’S AA NORTH HOUSTON www.americasautoauction.com 1440 FM 3083, Conroe, TX 77301 936.441.2882, Fax 936.788.2842 GM: Buddy Cheney Tuesday, 1:00 p.m.
$AVE : $200
AUTONATION AUTO AUCTION - HOUSTON www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 822.905.2622, Fax 281.506.3866 GM: Juan Gallo Friday, 9:30 a.m.
$AVE : $200
HOUSTON AUTO AUCTION
www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566, Fax 713.644.0889 GM: Tim Bowers Tuesday, 1:00 p.m.
$AVE : $200
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Midland Odessa IAA PERMIAN BASIN*
www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277, Fax 432.366.8725 GM: Christopher Rogers Thursday, 11:00 a.m.
$AVE : up to $200 Sell Fee
ONLINE ACV AUCTIONS**
www.acvauctions.com 800.553.4070
$AVE : $250
E-DEALERDIRECT**
NEW
www.e-dealerdirect.com chris@edealerdirect.com
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San Antonio
MANHEIM TEXAS HOBBY
ADESA SAN ANTONIO
$AVE : $100
$AVE : $200
www.manheim.com 8215 Kopman Road, Houston, TX 77061 713.649.8233, Fax 713.640.6330 GM: Darren Slack Thursday, 9:00 a.m.
Longview ALLIANCE AUTO AUCTION LONGVIEW
Houston
October 2020
IAA HOUSTON*
www.allianceautoauction.com 6000 East Loop 281, Longview, TX 75602 903.212.2955, Fax 903.212.2556 GM: Chris Barille Friday, 10:00 a.m.
$AVE : $200
IAA LONGVIEW*
www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248, Fax 903.553.0210 GM: David Cooper Thursday, 9:00 a.m.
$AVE : up to $200 Sell Fee
Lubbock IAA LUBBOCK*
www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472 GM: Lori Davee Tuesday, 9:00 a.m.
$AVE : up to $200 Sell Fee
TEXAS LONE STAR AUTO AUCTION** www.lsaalubbock.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 Wednesday, 9:30 a.m
$AVE : $75/Quarterly
Lufkin LUFKIN DEALERS AUTO AUCTION
www.lufkindealers.com 2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299, Fax 936.632.4218 GM: Wayne Cook Thursday, 6:00 p.m.
$AVE : $200
www.adesa.com 200 S. Callaghan Rd., San Antonio, TX 78227 210.434.4999, Fax 210.431.0645 GM: Clifton Sprenger Thursday, 10:00 a.m.
IAA SAN ANTONIO*
www.iaai.com 11275 S. Zarzamora, San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 GM: Brian Sell Monday, 9:00 a.m.
$AVE : up to $200 Sell Fee
MANHEIM SAN ANTONIO**
www.manheim.com 2042 Ackerman Road San Antonio, TX 78219 210.661.4200, Fax 210.662.3113 GM: Mike Browning Wednesday, 9:00 a.m.
$AVE : $100
SAN ANTONIO AUTO AUCTION**
www.sanantonioautoauction.com 13510 Toepperwein Rd. San Antonio, TX 78233 210.298.5477 GM: Brandon Walston Tuesday, 10:00 a.m. / Thursday, 1:30 p.m.
$AVE : $200
Tyler GREATER TYLER AUTO AUCTION www.greatertyleraa.com 11654 Hwy 64W, Tyler, TX 75704 903.597.2800, Fax 903.597.3848 GM: Wayne Cook Tuesday, 5:00 p.m.
$AVE : $200
Waco ALLIANCE AUTO AUCTION WACO
www.allianceautoauction.com 15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 GM: Carmen Robinson (Sales Manager) Friday, 10:00 a.m.
$AVE : $200
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feature
5 Ways Mobility Will Look Different in a Post Coronavirus World by Joe George
President, Cox Automotive Mobility
C
OVID-19 has delivered a gut punch to the automotive industry, the likes of which we haven’t seen before, including to mobility. (We define mobility as the movement of people and things.) And while there’s universal agreement the future is still fleets and ACES (Autonomous and Aerial, Connected, Electric and Shared), the path will be different than what we projected even six months or a year ago. Here are the ways I believe mobility will change — or stay the same — in the next 12 to 18 months.
People are slowly returning to work, which means business will start to pick up slightly for ride hailing companies. To meet changing consumer expectations, they’ll have to continue adjusting policies and procedures. In May, Uber announced that drivers must wear face masks, riders must upload real-time pictures of themselves in masks in advance of the ride, sit in the back seat to create as much distance as possible and keep their mask on for the duration of the ride. I also expect to see more and deeper ride hailing/public transit partnerships as that will likely help both parties reach commuters at scale. Even when virus fears subside, Lyft and Uber will continue to feel the impacts of many companies adopting generous, new work-from-home policies and of the tourism market having a long road to recovery. While ride hailing is down significantly, bookings for Uber Eats were up 54% year-over-year (up to $4.7B billion) as of April 2020, which brings me to my next point.
MARGARITA YOUNG - BIGSTOCK.COM
High volume of delivered goods will continue growing
Ride-hailing and car-sharing isn’t making a big comeback any time soon
When’s the last time you got into a Lyft or an Uber? If you’re like me and most of America, it’s been nearly four months. Our April research indicated 31% of consumers planned to wait at least four months — or until a vaccine is available — before getting in a Lyft or Uber, with another 19% unsure. With cases ticking up again, I imagine current research would have similar findings. According to an April earnings report, Uber reported a Q1 net loss of $2.9 billion on $3.54 billion revenue. Rides fell 5% in Q1 from a year ago; April was down 80% from a year ago, but the company said ride volume is on the rise. For the same timeframe, Lyft reported rides being down 75%. October 2020
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With more people working from home and nervous about the coronavirus, restaurant takeout, grocery deliveries and Amazon deliveries are soaring. The convenience is addicting. I know at my house, my teenage daughter and wife are keeping the Amazon, UPS and Uber Eats delivery people busy. Takeout delivery app Grub Hub announced that its first-quarter revenue rose 12%, to $363 million, and the number of active diners rose 24%, to 23.9 million. Total (gross) food sales increased 8%, to $1.6 billion. The company has been acquired by a European food delivery giant for $7.3 billion. Uber Eats is taking a cue from grocery store delivery leader Instacart and is looking to grow its online grocery ordering presence. “2020 is setting up to be an e-commerce inflection year as the combination of shelter-in-place, lower spend on experiences (dining out, bars, travel, etc.) and [government] stimulus have driven dollars online,” analysts from Morgan Stanley analysts shared via a June 1 letter to clients. Thanks in part to the pandemic and explosive growth in online ordering, Amazon is the fourth largest delivery service in the US, and growing. Wal-Mart also 41
and delivery the next time they need to service their vehicle at the dealership. The same internal research revealed that, despite high consumer demand and preference, many dealers plan to discontinue offerings like digital retailing and service pick-up and delivery once things get back to “normal”. Dealers who elect to continue offering these solutions post COVID-19 will develop a clear competitive advantage over others with seven out of 10 vehicle owners are likely to choose one dealership over another based on the availability of service pick-up and delivery.
announced a 74% increase in online sales during the pandemic and record overall revenue growth of 10%. What does all this mean for mobility? We’re going to continue to see declining personal vehicle use and increasing fleet vehicle use, whether those fleet vehicles are personally or commercially owned. And those fleet vehicles, as they incur more miles and wear and tear inside and out, are going to need to be serviced more frequently.
Consumers will continue to demand sanitization, and convenience
Many of us are dousing our hands, phones and/or credit cards with sanitizer at least once a day. The idea of having a vendor in our homes or cars creates anxiety and uncertainty. This anxiety will be engrained in our subconscious for years to come, in a similar way to experts projecting less hand shaking and hugging for the foreseeable future. Not surprisingly, via our 2020 Cox Automotive COVID-19 Consumer & Impact Study, we found 83% of US consumers polled say it’s extremely/very important for the dealership to disinfect vehicle surfaces after a service or test drive. Beyond dealerships, automobile, bus, train and air fleet owners/ 42
operators and ride-share providers also recognize the need to disinfect (not just clean) their vehicles and cabins regularly, especially now. In addition to disinfecting vehicles, dealerships who implement “touchless interactions,” such as valet pickup and drop-off programs drive sales and service revenue while safely meeting customers’ needs. Consumers will continue to appreciate the safety aspects of athome service pickup and delivery or retail delivery but will come to really appreciate the convenience. Dealers who cancel these services when the pandemic subsides will be shooting themselves in the foot. According to Cox Automotive’s COVID-19 US Consumer and Automotive Dealer Sentiment research, five out of 10 vehicle owners prefer to use service pickup
Credit challenges will drive increase in vehicle subscriptions over traditional buying or leasing — especially in the sub-prime market
A subprime auto loan is a type of financing for a car purchase that’s offered to people with low credit scores or limited credit histories. Subprime loans carry higher interest rates than prime loans and may also come with penalties if the loan holder chooses to pay off the loan ahead of schedule. Over the last few years, new car prices have risen higher and higher, making it harder for consumers to afford new cars (aka an affordability crisis). To counter this trend, the industry has responded by extending the average loan duration and subsidizing the financing costs. And now COVID has caused additional
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financial strain across America. Despite efforts such as stimulus packages, lots of responsible people have experienced unexpected financial hardships. Earlier this month, Wells Fargo announced they were halting new car loan applications from most independent dealerships, a move that confirmed building pressures and dangers in the subprime market. I expect credit challenges to drive consumers to the subscription model, which also provides more flexibility (i.e., month-to-month payments vs. long-term commitment). This hunch is validated by our research, which indicates half of shoppers now say they are interested in single vehicle subscription. Why would subscription work for some consumers who struggle to get reasonable interest rates with traditional ownership? Traditional credit underwriting focuses on predicting the likelihood of a consumer to make years of payments in a row. Subscription, which in most cases is a month to month commitment, doesn’t require a multi-year underwriting decision. Instead, it relies more on the likelihood of the consumer taking care of a vehicle and returning it in good shape. Many of us know people that have historically been responsible but have recently taken hits to their financial situation. These individuals may not score well on traditional credit models, but these consumers are likely to drive safely and take good care of their vehicle.
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By owning a fleet of subscription vehicles, the industry (e.g., dealers) can take advantage of a low cost of commercial borrowing, and “lend this low cost of capital” to consumers that are likely to take care of the vehicle, but don’t qualify for favorable financing rates.
Electric growth will hit the brakes, but not stop
No, it doesn’t take a rocket scientist to surmise that electric vehicles (EVs) aren’t a pressing priority for automakers, or that consumers are pushing out vehicle purchases amid economic uncertainty (approximately one in three shoppers is currently delaying purchase). Autonomous vehicle technology is even less of a priority, though we’re still seeing movement and consolidation in that space — e.g., Amazon purchasing Zoox. How long an EV stallout will last is the big question mark. The reality is that the future is/will be electric as carmakers must work toward meeting strict emissions targets in Europe and in California. Many manufacturers have spent billions of dollars in research on EV technology, which has been underway for years. Despite the pandemic, 2020 will see Volkswagen debut the ID Croxx. Polestar — a joint venture between Volvo and Geely — is manufacturing its Polestar 2 sedan now. Volvo will launch the SC40 P8 Recharge utility vehicle and Audi will add the e-tron Sportback to its line.
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MICHELMOND - BIGSTOCK.COM
Rivian has delayed its EV truck and SUV models until next year. GM has delayed the refresh of the Chevrolet Bolt EV to the 2022 model year from 2021 but insists other EVs remain. Although the vast majority of Americans agree that if we all drove electric vehicles, we could reduce oil consumption and pollution, only a third would consider buying one anytime soon. And it’s largely due to the fact that the industry is still early in when it comes to educating and delivering proof points about the real or perceived consumer pain points of cost, access to charging and battery health. Don’t forget, too, that historically low gas prices making combustible engines more attractive than EVs to many consumers. I encourage everyone reading this to keep an eye on the EV market and be open-minded when it comes to purchasing your next vehicle and encourage your friends and family to do the same. In terms of total cost of operation, Kelley Blue Book tells us
the average 5-Year Cost-to-Operate savings is significant for some EVs versus their gas-powered counterparts — 58% overall, with 60% in fuel savings and 25% in service cost savings over five years — so EV costs less. If you’re worried about charging, as many consumers are, keep in mind that 80% of charging takes place at home or at work... if you
have that luxury. As it relates to batteries, it’s reasonable to be concerned about battery health. After all, 51% of an electric vehicle’s value is tied to the EV powertrain versus the powertrain of an internal combustible engine being 18%. It’s also promising to know that most EVs come with 100,000mile warranties and that battery enhancements get introduced every year to improve range, safety and cost.
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Please Welcome Our Newest TIADA Members DEALER MEMBERS
Los Betos Auto Sales
35 Motors
M.I.A. Motor Sport
John Canales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2911 Palmer Drive, Friendswood, TX 77546
504 Auto Sa0les, LLC
Nelson Cardona . . . . . . . . . . . . . . . . . . . . . . . . . 745 S General McMullen Dr., San Antonio, TX 78237
77 Twelve Auto Sales
Hunter Parrish . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1516 Cloud Ln., New Braunfels, TX 78130
All American Motors
Fahim Mumith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1812 Bowin Ct, Carrollton, TX 75010
Alsaadi Auto Sale LLC
Layth Alsaadi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1515 Wickersham Lane, #319, Austin, TX 78741
Alternative Automotive Sales Inc
Shirley Basilovecchio . . . . . . . . . . . . . . . . . . . . . . . 325 E Veterans Memorial Blvd, Killeen, TX 76541
Auto Blitz Motors, LLC
Jason Baker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7515 Elam Rd, Dallas, TX 75217
Auto Corral Investments
Rolando Arroyo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 S Palace, Tyler, TX 75702
Auto Selection Of Houston
U. B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7643 Hwy 6 S, Houston, TX 77083
Auto Solutions
Jim Bayless . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13310 Interstate 27, Amarillo, TX 79119
Big Star Motors LLC
Rogelio Flores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1624 Gessner Rd., Houston, TX 77080
Chief Auto Sales
Alfonso Martell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900 East Parker Rd, Plano, TX 75074
CK Auto
Kayla Nickels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402 E American Blvd, Muleshoe, TX 79347
Cowboy Motors
Barry Gossett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2770 County Road 3908, Jacksonville, TX 75766
Dafer Auto Sales
Segundo Flores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3513 NE 28th St, Fort Worth, TX 76111
Dealer Plus 1 Auto Sales
Larry Van Loon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 817 E Moore Ave, Terrell, TX 75160
DFW Auto Palace
William Howard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2532 N 135E, Lancaster, TX 75134
Elite Auto Financial LLC
Victor Oajaca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1925 K Ave, Plano, TX 75074
Elite Car Care & Sales
Sam Kasabri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21601 HWY 71 W, Spicewood, TX 78669
Ennis Motors LLC
Alan Vieyra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 N Kaufman st, Ennis, TX 75119
Envy Automotive
Deshaun Glasgow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5027 Reed Rd, Houston, TX 77033
Euro Car Tech
Elio Cerkezi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1850 Park Springs Blvd, Arlington, TX 76013
Excel Autos
Johnnie Daniels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4220 Canyon Dr., Amarillo, TX 79109
Frank’s Cars For Less Inc.
Andy Flores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1624 Gessner Rd., Houston, TX 77080
Frontline Select
Ryan Stone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5625 Star Lane, Houston, TX 77057
Gold Benefit Inc.
Felix Ajofoyinbo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3007 Summerview Dr, Grand Prairie, TX 75052
Half Price Auto Sales
Mohammed Bhuiyan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1949 W Division Rd, Arlington, TX 76012
HM Auto Plex
Hector Martinez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1391 W US HWY 77, San Benito, TX 78586
John Kamal Cars
John Kamal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13141 Bissonnet St, Houston, TX 77099
Last Chance Auto Sales LLC
Ronald Warren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6229 S R.L Thornton Hwy Ste, Dallas, TX 75232
Adolfo Santos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Patos, Del Rio, TX 78840 Daniela Barrios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6375 Richmond Ave B, Houston, TX 77057
Mangone Auto Group, LLC
Ulissess Perez . . . . . . . . . . . . . . . . . . . . . . . . . 5407 Bandera Rd Suite 109, San Antonio, TX 78238
Marathon Automotive Group, Inc.
Florence Glover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69770 IH35 South, San Antonio, TX 78224
Medford Motors, Inc.
Shawn Medford . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29103 FM 2978, Magnolia, TX 77354
Mile High Exotic Motors Inc.
Saleem Mehmood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 620 Highway 6 S, Houston, TX 77079
Momentum Automotive Group
Hussam Allo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9100 Galveston Rd, Houston, TX 77034
Mostly Trucks Of Angleton
Tiffany Cater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1807 County Road 45, Angleton, TX 77515
MP Auto
Rossana Martinez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1919 E. Main St., Grand Prairie, TX 75050
No Man’s Land LLC
Larry Sims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4005 I-40 E, Amarillo, TX 79104
Pee Wee Cray
Kevin Cray . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Birdie Dr, Lipan, TX 76462
Quick Plate Auto Sales LLC
Andrea Perry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440 Benmar Dr Ste 1015, Houston, TX 77060
Rhima Motor Co.
Abdel Rhima . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4925 NE 28th St, Haltom City, TX 76117
Rockin J Autos
Jimmy Fincher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5801 S. Western, Amarillo, TX 79110
Ron’s Autos LLC
Ronald Harmon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3231 Merrifield Ave., Dallas, TX 75223
Route 66 Auto Sales
David Montero Fonseca . . . . . . . . . . . . . . . . . . . . . . . . . 4655 Kostoryz Rd, Corpus Christi, TX 78415
SFB Auto Sales LLC
Duane Sanders . . . . . . . . . . . . . . . . . . . . . 6860 North Dallas Parkway, Suite 200, Plano, TX 75024
Sibi Motors Jinu Sibi . . . . . . . . . . . . . . . . . . . . . . . . . . 11111 Shadytrail #114, Dallas, TX 75229 Sinclair’s Warehouse
Curtis Sinclair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1010 SW 8th AVE, Amarillo, TX 79101
Smart Auto Sales
Carla Rozo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5318 Blanco Rd, San Antonio, TX 78216
South Texas Auto
Chris Cooper . . . . . . . . . . . . . . . . . . . . . . . . . 8407 Bandera Rd Ste 103-410, San Antonio, TX 78250
Starline Autos
Khalid Abbas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1919 Austin Street, Apt 1908, Houston, TX 77002
Suburbia Motors
Ravi Galson . . . . . . . . . . . . . . . . . . . . . . . . . . . 12900 Cypress North Houston Rd, Cypress, TX 77429
Tenpoint Auto Center LLC
Kildson Silva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16107 N I-35, Pflugerville, TX 78660
Toduss LLC
Olu Odusote . . . . . . . . . . . . . . . . . . . . . . . . 2500 Monte Carlo Way, Apt 00711, Fort Worth, TX 76244
Ultra Auto Sales
Patrick Lambright . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14763 Hwy 110 S, Whitehouse, TX 75791
Up A Creek Auto Sales
Scott Covey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 Town View Ln, Canyon Lake, TX 78133
Victoria Auto Sales
Gerardo Chavero . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3100 East Lancaster Ave, Fort Worth, TX 76103
Wood Auto Group LLC
Warren Wood . . . . . . . . . . . . . . . . . . . . . . . . . . . 1275 N Main St Ste 207-208, Mansfield, TX 76063
XC Motors
Brian Johnson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 W Highway 76, Duncanville, TX 75137
ASSOCIATE MEMBERS Florida Fine Cars Inc.
Michael Mosher . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8762 State Highway 151, San Antonio, TX 78245
October 2020
T e x a s
D e a l e r
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behind the wheel
Martin
The Spotlight Is On You
P
rior to penning this article, I glanced over the last six or seven years of the October issue of Texas Dealer. It appears, during October, I am usually reminding you that early voting is about to start and that it is important for you to make time and go vote. I then go on to encourage you, no matter what the results of the election are, to go visit with your elected official. During the even number years, I also announce the date of our TIADA Day at the Capitol and beg you to pencil it in on your calendar so you can come to Austin and speak directly to your legislator. If you don’t believe me, and you need a little voter pep talk, you can go to the TIADA website and see every magazine we have printed since 2013. This year, I figured I would step down from the soapbox and tell you about a new feature you will find in Texas Dealer starting in November. Next month, we will spotlight a dealer one month and the following month we will spotlight a legislator. We have discussed this idea for years in our editorial meetings and just never pulled the trigger. But maybe due to Corona quarantine or COVID confinement, we have missed seeing you at the auctions, chapter meetings, education seminars and legislative luncheons. So, we felt this might be the best time and best way for us to “uncover” what makes our association so special — you and our state leaders. We will virtually crisscross the state listening and telling the stories of our dealers and policymakers. We will learn more about you and, frankly, the more we learn about you the better job we can do representing your interests. So far this year, we have quietly welcomed over 200 new members to the association; I look forward to
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by Jeff
TIADA EXECUTIVE DIRECTOR
getting to know each of these dealers better and learn what exciting new ideas they have for our industry. We also have so many talented dealers who have been in business for years and who contribute so much to their communities. I look forward to reconnecting with those dealers and seeing how they have been faring during this unprecedented time. And our legislators. Over the last 15 years we have been committed to building quality relationships with so many of our state representatives and senators. We have become accustomed to spending time with them, getting to know them in their districts and introducing them to our industry during our conference. We don’t want to lose that momentum, so through these spotlights, we will introduce you to the people you elect to represent you and give them an opportunity to stay connected with the used car business in Texas. Speaking of legislators and, well, voting, early voting starts Tuesday October 13, and election day is on November 3. Of course, if you have been reading Behind the Wheel every October for the last ten years, you already knew that. Make sure you cast your ballot this year, but do not stop there. If you haven’t already, get to know your legislator. And if you want us to feature your legislator in our magazine, shoot us a note and we will do our best to spotlight them in one of our upcoming editions. One last note, we are still trying to work something out, but it’s starting to look like there will be no TIADA Day at the Capitol as we have had in the past. We are looking for all new ways to keep our grassroots lobbying effort moving forward, and we will be featuring some of those meetings in the near future so you can stay involved.
T e x a s
D e a l e r
October 2020
Assured Vehicle Protection, 6300 Glenwood St., Suite 200, Mission, KS 66202. WWW.AVPADMIN.COM © Assured Vehicle Protection 2020
TEXAS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750
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PA I D
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