TIADA Welcomes Incoming President
Mark Jones
Governor Abbott Attends 2021 TIADA Conference & Expo
TIADA Board of Directors PRESIDENT Mark Jones/MCMC Corporate 264 Exchange Burleson, TX 76028 PRESIDENT ELECT Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 CHAIRMAN OF THE BOARD Robert Beck/Stop N’ Drive Motors 711 N. General McMullen San Antonio, TX 78228 SECRETARY Eddie Hale/Neighborhood Autos PO Box 1719 Decatur TX 76234 TREASURER Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 ICE PRESIDENT, WEST TEXAS V (REGION 1) Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915 ICE PRESIDENT, FORT WORTH V (REGION 2) 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) Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301 ICE PRESIDENT, CENTRAL TEXAS V (REGION 5) Robert Blankenship/Texas Auto Center 6809 Suite B S IH35 Austin, TX 78744 ICE PRESIDENT, SOUTH TEXAS V (REGION 6) Armando Villarreal/McAllen Auto Sales, LLC 4215 S. 23rd St McAllen, TX 78503 ICE PRESIDENT AT LARGE V Brad Kalivoda/Fiesta Motors – Lubbock 2599 74th Street Lubbock, TX 79423 ICE PRESIDENT AT LARGE V Greg Phea/Austin Rising Fast 8024 IH 35 North Austin TX 78753 TIADA EXECUTIVE DIRECTOR Jeff Martin 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 jeff.martin@txiada.org
Vo l u m e X X I / I s s u e 9 / S e p t e m b e r 2 0 21
TexasDealer contents
4 Officers’ Message
by Vicki Davis, TIADA Treasurer
7 Board of Directors Meeting Minutes 9 Legal Corner: BHPH Compliance – Don’t Overlook Proper Handling Of Personal Property In Repossessed Vehicles by Michael W. Dunagan
10 Upcoming Events 13 INDEPAC Update 19 On The Cover: TIADA Welcomes Incoming President Mark Jones by TIADA Staff
22 TIADA Committee Sign-up Form 23 In Memoriam: Gordon Wear 24 2021 TIADA Conference Wrap-Up by TIADA Staff
29 2021 TIADA Awards Wrap-Up by TIADA Staff
31 Regulation Matters: Voluntary Vehicle Protection Products Under Attack by Earl Cooke
33 House of Delegates Meeting Minutes 34 TIADA Auction Directory 36 TIADA Member Application 37 Language Matters: A Confused Customer Does Not Buy by Kenny Atcheson
41 Legislative Bulletin 42 Local Chapters 44 New Members 46 Behind the Wheel by Jeff Martin
Did You Know? TIADA is offering educational seminars
on October 18, November 16, and December 6 this year. These courses are designed to keep you up to date on the latest compliance issues, regulatory changes, and best practices. Find more information about these classes at txiada.org. Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.
Editor: Stephen Pallas
Magazine Ad Sales: Patty Huber, 512-310-9795
officers’ message by Vicki
Challenge and Opportunity
W
hen we decided to open a buy here, pay here dealership, the one thing I knew for sure is I wanted us to provide reliable transportation at an affordable price for people with credit challenges. There are lots of good people out there that for one reason or another have credit issues, and we wanted to help them with reliable transportation. We envisioned a place they could come to and not worry about the vehicle breaking down, a place with integrity where customers could trust us. What I did not think about was being a woman in a man’s world. When we opened in 1992 with $25,000, we thought we were rich. Boy, did we ever have a lot to learn in this cash-strapped business, but we jumped in with both feet. One of our earliest hurdles was trying to borrow money. When I went into the bank and filled out the paperwork and they saw it was a woman taking out a loan, I think they thought I had no clue what I was doing. Little did they know, they were right at the time! We joined TIADA early on, and it was by far the best decision I have ever made. I cannot understand why every dealer is not a member of the state association. Just one call to Mike Dunagan for help or information, and your membership has more than paid for itself, plus all the education they offer, and to top it off, you get lots of coupons to use for discounts at the auctions. TIADA offers a wealth of information at every member’s
Davis
A-OK Auto Sales (Porter) TIADA TREASURER
fingertips. I have leaned on TIADA for lots of help and information, and I promise if they do not know the answer, they will find it out and get back to you. I am very thankful we have a great association with all the leaders we have and all the work they do to help us be successful dealers. We just got back from our Conference & Expo at the end of July, and wow, was it ever awesome. We met lots of new vendors and dealers, learned a lot in the education sessions, and caught up with old friends, as well. Another challenge I have is that when a vendor comes to call on us and asks for the owner, they point at me and I can see it in their face they don’t believe I am in charge, but after they talk to me, they find out that I am. I take my job very seriously and do the very best to be fair with each and every customer and every decision I make. I am a hands-on owner. I get to work every morning around 7 a.m. to check my email and start working. I am in on every decision at the dealership — from approving deals, to who we decide to repossess, and everything in between. It all falls on my shoulders, and I always want to be fair. My favorite challenge by far though has been the auction process. I am sure most of the people reading this article have been to the auction; it is full of mostly men and maybe a few women (me being one of them). At first, I was intimidated being one of the (cont’d on pg. 6)
I cannot understand why every dealer is not a member of the state association. 4
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Officers’ Message (cont’d from pg. 4)
only women, but I soon learned my way around. It was comical to watch some of the guys hide behind other guys so no one knew who was bidding. I learned every buyer has their own style of bidding, and I soon learned mine and I truly love going to the auctions and consider the staff as friends. According to Forbes, women buy 62 percent of all cars sold and influence more than 85 percent of all car sales, so we have an all-female office and I think it makes women feel more at ease. We get compliments all the time about having an all-female office and how cool our customers think that is. I enjoy mentoring the ladies that work for me and try to empower them with all the skills they need. We do get the occasional man that wants a man to wait on him but — like with all obstacles — you just have to overcome it. In closing, I would like to thank a couple of women dealers who I have looked up to and that have helped pave the way for more women in the industry. I first met Patricia Harless at a TIADA conference. Patricia owns Fred Fincher Motors alongside her husband, State Representative Sam Harless. She was speaking at the Conference, and I remember that, after she was through, I thought I wanted to be just like her. She has always been very nice and would answer any questions I had. I would also like to give a shout out to Kathrine Tolsch, of CICO Auto Sales, for always being approachable and willing to help you in any way she could. At the end of the day, I am a buy here, pay here dealer doing the very best I can to provide reliable transportation to the people in my community, and I love my job. I take pride in my dealership and my employees. If I can ever be of any help to anyone, please let me know. 6
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board of directors meeting minutes
July 25, 2021 | Kalahari Resort | Round Rock, TX
compiled by Texas Dealer staff
Board Members in Attendance:
Robert Beck, Mark Jones, Robert Blankenship, Brad Kalivoda, Juan Sabillón, Chad Lancaster, Greg Phea, Ryan Winkelmann, Vicki Davis, Armando Villarreal, Russell Moore, and Greg Reine.
TIADA Staff in Attendance:
Jeff Martin, Earl Cooke, Teresa Orkun, Mario Martinez. At its meeting on July 25, 2021, TIADA took the following actions: President Robert Beck called the meeting to order at 8:59a.m.
Minutes of the Last Meeting
Secretary Ryan Winkelmann presented the minutes from last meeting.
New Business
A motion was made to accept the proposed FY22 budget. Moved by Greg Phea, seconded by Russell Moore – PASSED Special guest Rep. Glenn Rogers discussed the 2021 Legislative Session. Robert Beck adjourned the meeting at 11:15 a.m. Respectfully submitted, Ryan Winkelmann, Secretary A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.
A motion was made to accept the minutes. Moved by Mark Jones, seconded by Vicki Davis – PASSED
Treasurer’s Report
Executive Director Jeff Martin presented the Treasurer’s report on behalf of Treasurer Eddie Hale.
ally Leadership Award
A motion was made to accept the report. Moved by Vicki Davis, seconded by Juan Sabillón – PASSED
President’s Report
President Robert Beck presented the President’s report.
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He thanked the board for the past 2 years.
Executive Director’s Report
Jeff Martin talked about annual conference registration, special legislative guests, other VIPs, explained new education sessions, covered conference agenda and expectations for BOD members. Jeff Martin introduced new TIADA staff members, Jenna Slagel and Stephen Pallas, to BOD members.
September 2021
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legal corner
O
BHPH Compliance –Don’t Overlook Proper Handling of Personal Property in Repossessed Vehicles
ne of the realities of repossessing motor vehicles after a default by the debtor is that vehicles have usually not been cleared of personal effects prior to repossession. The proper handling and disposing of personal property found in repossessed units is an important part of being compliant with the requirements of state statutes, regulations, and the terms of a motor vehicle retail installment contract. The first rule affecting a debtor’s personal property is that the holder of a security interest in a motor vehicle does not have a lien on the personal property that may be in a vehicle when it is repossessed. Since the creditor doesn’t have a lien on personal property, such property must be returned to the debtor upon demand to avoid unlawful conversion of the personal property. (Sometimes a question arises as to what is personal property, as opposed to something that might be affixed or attached to the motor vehicle. A discussion of that question will be reserved for a later date, as this article refers to things like clothing, tools, toys, and personal effects that are not legally defined as “accessions” to the vehicle.) Ordinarily, taking the personal property upon which no security interest attaches would be considered a theft of the property. Theft or conversion of someone else’s property is a criminal violation and also gives rise to
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civil damages. However, the law recognizes that repossessing collateral such as a motor vehicle may entail also temporarily taking some property that is contained within the collateral, so no penalty is attached to the taking as long as the personal property is immediately returned upon demand. It is recommended that property that is removed from a vehicle be inventoried and bagged. Reasonable security measures should be used to protect the property from damage or theft. Any contraband should be reported to police.
by Michael
Dunagan
W.
TIADA COUNSEL
It is recommended that property that is removed from a vehicle be inventoried and bagged. Reasonable security measures should be used to protect the property from damage or theft. Any contraband should be reported to police.
Can Personal Property Be Held Pending Return of Keys?
One common question from car creditors is whether personal property can be held until the debtor turns over the keys to the vehicle. Because a debtor’s personal property contained in a vehicle at the time of repossession is not subject to the car creditor’s lien, the property must be returned upon demand by the debtor without placing any conditions or
stipulations upon such return. By placing any condition upon the return of the personal property, the creditor risks criminal and civil penalties for converting the property. Examples of conditions that car creditors might be tempted to place upon return of personal property are: Return of the keys; payment of a storage or management fee; signing a release; or payment of a repossession fee. If the debtor refuses to comply with the condition, and the creditor then refuses to release the personal 9
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OTHER TIADA EVENTS
October 25 Board of Directors Meeting Austin, TX
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January 24 Board of Directors Meeting Austin, TX
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property, there is the potential that the creditor has converted property. In addition to the criminal and civil penalties associated with conversion, the refusal to return personal property may give rise to actions by the Office of Consumer Credit Commissioner. Many car creditors request that debtors sign a statement acknowledging that they have picked up their possessions, which is a good procedure to utilize. In fact, the repossession waiver forms in Texas Automobile Repossession: A Lien Holder’s Legal Guide (available from TIADA), contain such an acknowledgement, in addition to a waiver of notice and an agreement to voluntarily give up any interest in the vehicle. I recommend attempting to have debtors sign these forms. However, the refusal of a debtor to sign can’t be used to justify withholding return of personal property. (We’ve seen cases where debtor’s attorneys would claim that the voluntary waiver of repossession notice and agreement to the acceptance of collateral by the creditor, although signed by the debtor, were invalid because the car creditor threatened to withhold personal effects until these were signed). Many car creditors have found that the reclaiming of personal property is a good time to bring up the possibility of signing a waiver of notice form that includes not only the acknowledgment that personal
The lien holders have usually found that the police do not consider a debtor driving away with repossessed collateral a crime. Temporarily disabling the repossessed unit during the reclamation process might help avoid such a scenario. property has been returned, but also a release from future claims of liability. Just make sure that the form is totally voluntary. Some repossession agents who store repossessed vehicles for car creditors have begun charging storage, security, and inventory fees directly to debtors who attempt to pick up their personal effects. It is recommended that car creditors either pay the fees directly or attempt to negotiate waiving those fees to avoid the potential of a conversion action. Since the agent is, in effect, acting on behalf of the creditor, the creditor is primarily responsible for seeing that the rules of repossession are followed. Here’s another suggestion for car creditors in dealing with debtors who are picking up their things after repossession. We’ve heard a number of instances in which debtors who have been given access to vehicles to claim their property have started the vehicles and driven away. The lien holders have usually found that the police do not consider a debtor driving away with repossessed collateral T e x a s
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a crime. Temporarily disabling the repossessed unit during the reclamation process might help avoid such a scenario.
Disposing of Unclaimed Personal Property
At one time, there was no specific provision in Texas law for disposing of unclaimed personal property left in a repossessed vehicle. This lack of guidance left many car creditors in a quandary as to when these items could be disposed of, if at all. The thought of storing property indefinitely evoked visions of large warehouses of unclaimed property. Fortunately, the Texas Legislature added a section to the Texas Finance Code (it was the Texas Credit Code back then) that offered a structure for giving notice to the debtor of the existence of personal property in a repossessed vehicle, a time frame for holding the property, and permission to dispose of the property if it isn’t timely claimed. Section 348.407 of the Texas Finance Code requires that a notice be given or sent to the debtor not later than the 15th day after the date the creditor discovers the property. The notice is to inform the debtor that the property can be identified and claimed at a reasonable time before the 31st day after the date the notice is given. It must give the location of the property and state reasonable times during which the property can be claimed. The contents of this notice are included in the post-repossession notice forms in Texas Automobile Repossession: A Lien Holder’s Legal Guide. If the appropriate box is checked on the notice, and the location and hours that the property can be claimed are included, then there is no need to send a separate notice. If the property is not claimed before the 31st day after the notice is given or sent, the statute provides that the creditor can “dispose of the property in a reasonable manner September 2021
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and distribute any proceeds of the disposition according to applicable law.” It is presumed that the “applicable law” reference is to the state escheat provisions that govern handling unclaimed property and money through the office of the State Comptroller. It would seem to be reasonable that property with no value could be thrown out or donated to charity. Taking possession of collateral upon default is just the first of many steps that need to be taken to complete the repossession process.
Having a compliant procedure in place for handling and disposing of personal property is an important part of that process and shouldn’t be overlooked. 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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Update
by Ryan Winkelmann, TIADA President-Elect and INDEPAC Chair
I
am happy to report INDEPAC has raised $39,825, including our best single event total of $16,625 during our conference. Thank you to everyone who has already donated to INDEPAC. Our association is ahead of what we have been able to raise in prior years, but well short of the $80,000 goal we started with at the beginning of the year. INDEPAC donations are important to help our businesses be successful because it gets us a seat at the table to inform our friends at the Texas House and Senate what really happens in the trenches of our industry. Our communications aid them in making more informed decisions when considering legislation that impacts our industry. During the conference the INDEPAC booth also raised funds for some great charities. Those charities were Texas Wounded Warriors, St. Jude Children’s hospital, the Salvation Army, American Red Cross, Sons of the Flag, and TechForce. I would like to thank Mike Carlson Motor Company, Coast to Coast Motors, Auto Liquidators, Dixon Motors, and Mi Terra Auto Sales who joined me in volunteering to match INDEPAC funds raised by donating
to such great causes. While many people are familiar with most of the charities selected by the dealers, I do want to take a moment to discuss the mission of Sons of the Flag and TechForce because I was not familiar with them prior to our INDEPAC match. Sons of the Flag (https://sonsoftheflag.org/) is a nonprofit organization committed to supporting military and first responder burn survivors by providing funding for innovative research. Coast to Coast’s CFO, Travis Allison, sits on the board of directors for Sons of the Flag and he has been heavily involved with the organization since leaving active duty service with the Navy in 2016. Ryan Parrott, a former Navy SEAL and CEO/Founder of Sons of the Flag, is a close friend of Travis Allison and Travis enjoys helping serve alongside him in support of burn victims. TechForce was sponsored by Mike Carlson Motor Company, therefore I reached out to Mark Jones at MCMC to see why they selected TechForce. Mark Jones offered the following “Mike Carlson Motor Company was excited to participate in this year’s INDEPAC Booth at the TIADA conference. We all know how hard it is to
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acquire qualified mechanics and TechForce Foundation is a great 501(c)(3) charity that works to increase awareness and create enthusiasm with today’s students about becoming a professional technician. By offering scholarship opportunities, career development coaching, and mentorship programs — TechForce is working hard to ensure that we have qualified technicians for the future.” I also reached out to Greg Zak with Dixon Motors to ask him about his donation to Children’s Research Hospital. Greg stated his reason was “Every child deserves an opportunity in the world today. No child signs up to battle cancer and certainly no parent wants to see their child go through such a difficult health challenge. As a parent, we all want the best for our children and in the situation of cancer or any other horrible sickness you feel helpless as a parent. This program through TIADA provided us an opportunity to help a child and, who knows, they may just be the future quality dealer of the year. We hope and pray for the best for every child suffering under the throws of cancer and to their parents who are fighting the battle with them.” During this year’s conference we had numerous members of the legislature and the Governor of Texas attend. All of this is in part thanks to INDEPAC. As our influence continues to grow, we need to raise more funds to ensure we have an even stronger voice at the Capitol. INDEPAC needs your help to ensure the success of our efforts to pass legislation
that benefits the industry and defeat legislation that would cost your dealership thousands of dollars each year. I recognize each of us are in a different financial position and I’m asking everyone to consider helping our continued efforts at the Capitol with what they can afford. During the 81st legislative session, TIADA successfully lobbied legislators to pass H.B. 3681, a bill that allows dealers to charge a doc fee above $50. The legislation became law in September 2009. I now charge a $150 doc fee, so I donate $100 monthly to INDEPAC as it seems only right for me to return just one of those fees per month back to the INDEPAC who helped make it possible to charge $150. I understand not everyone would donate $100 monthly, I’m just hopeful that sharing some of the value INDEPAC has created on behalf of Texas dealers, that you would personally consider donating what you are comfortable with. As Chairman of INDEPAC, I have spoken to several of our larger donors and they all stated the following: they were thankful to be in a position to help INDEPAC with large donations, they do not know of anything more important than INDEPAC to our industry, and most importantly they wish everyone would pitch in with what they could. Please consider a monthly donation today, no matter how large or small, and join our efforts in keeping the future of our industry secure.
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Please fill out the form on the next page to help our efforts out at the Capitol!
Join the list of those who have already contributed for 2021.
Contributions Year-to-Date
as of August 2021
Greig, Steven J. Hale, Eddie Blankenship, Robert Ingram, Blake Reine, Greg Gregory, Tommy * Murphy, Bill Hagler, Keith * Allen, Scott Scott, Paul Torres, Cesar H. Zak, Gregory * Jones, Mark * Cowan, Donny Donnelly, Chris * Atchison, Jeff Beck, Robert
$5,000 $5,000 $2,500 $2,500 $2,500 $2,400 $1,750 $1,025 $1,000 $1,000 $1,000 $1,000 $800 $600 $600 $500 $500
Brown, Mark Chapman, Kyle Cockerell, Clint Davis, Vicki Edenfield, Robert * Kalivoda, Brad Kirwan, Christopher Martin, Jeff Martinez, Mario Rhodes, Brent Smith, Jerry and DeDe Zak, Michael Lloyd, Raymond Milligan, Robert Moore, Russell * Winkelmann, Ryan * Cooke, Earl
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $425 $425 $400 $300 $250
Jeffers, Robert Lazo, Deyla Macheca, Chris Moore, Gerald (G.R.) Petersen, Shaun Frappier, John Caldwell, Steven Burke, Steve Hanson, April * Hobson, James Levine, Stephen Phea, Greg Vara, Jose Wilson, Erik Nwankwo, Chinweuba
$250 $250 $250 $250 $250 $200 $150 $100 $100 $100 $100 $100 $100 $100 $50
*Monthly Donor
Total Contributions to Date September 2021
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$39,825 15
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 ___$25
___$50
___$100
___$250
___$500
$_______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
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512.244.6060 FAX 512.244.6218 EMAIL accounting@txiada.org
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Keeping Your BHPH Dealership Legal & Compliant Dealer Academy Presenter
Michael W. Dunagan,
TIADA General Counsel, author of Dealer Financing of Used Car Sales and Texas Automobile Repossession: A Lien Holder’s Legal Guide.
Time
9:00am - 4:00pm
Cost
$249 Members, Each Additional $199
(must be from same dealership)
$499 Non-members
Sponsors
One of the quickest ways to ruin a dealership’s profit margin is to be hit with a fine from a regulatory agency, or to lose a lawsuit filed by a customer. This seminar will focus on the practical side of compliance that understands you have a business to run — and you want to run it right. This seminar from TIADA attorney Michael W. Dunagan is the final answer in BHPH compliance. Mike speaks dealer, and with 40 years of experience representing hundreds of BHPH dealers, he knows your business inside and out. Attend this workshop and learn all about: • Properly handling f inancing • How to prepare for (and on repairs survive) an OCCC exam • Real-life DTPA court cases • What to do when the Bankruptcy Notice arrives • Body shops, mechanics, towing and storage issues • Repossessions: f rom A to Z • Specif ic lien-protection steps • TxDMV Enforcement – Title Management Issues • Federal regulations affecting BHPH dealers • Most common advertising violations • Alternatives to traditional insurance • Your right to insurance proceeds • Most common OCCC customer complaints • Using the courts to get your car back • How to respond to an attorney demand letter • Procedures to stay off the CFPB’s radar • Dealer issues in Comptroller audits • Techniques to avoid consumer lawsuits
Monday, October 18, 2021 Dallas, Texas Sheraton Suites Market Center 2101 N. Stemmons Fwy. | Dallas, TX 75207 214.747.3000
To register visit 18
Txiada.org or by phone at 512.244.6060. T e x a s
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September 2021
on the cover by TIADA Staff
TIADA Welcomes Incoming President
Mark Jones T
here is one thing that means more to TIADA incoming President Mark Jones than anything else: family. He is always proud to talk to anyone about his wife Bridget, to whom he has been married for 27 years. Together they have two children — a 23-yearold son named Dillon and an 11-year-old daughter, Lilly. But family means more to Mark than these core people in his life. In fact, he will be the first to tell you that he also considers the members of TIADA his family, and he believes whole-heartedly that this is baked into what he calls “the code of ethics” of the association, a collection of people that helps and supports each other.
Mark Jones and His Family Values
Mark was born to an Ohio pastor, but his family moved to Burleson when a job opened for his father. He attended Burleson High School and he played baseball in college, where September 2021
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he earned a degree in broadcast communications. For a while, he thought he was destined to be a sports announcer, and he worked for KRLD, the Texas Rangers home broadcast station. Unfortunately, he realized that radio does not always pay enough to raise a family and own a home. While working at the radio stations, Mark spent Friday afternoons and Saturdays as a parttime salesman at Mike Carlson
Motor Company (MCMC), and he made more money there than working full-time at the radio station. When he and Bridget decided they wanted to buy a home, he transitioned to full-time used car sales at a large Chevrolet dealership in Dallas. There, he worked as the assistant used car manager and was quickly promoted to used car manager at 26 years old. During this time, Mark traveled a lot. In addition to leading the used 19
Jones meets with State Rep. DeWayne Burns.
car sales team, he took care of vehicle acquisitions for the Pre-Owned department at the dealership. Dillon was young at the time, and the career was putting a lot of strain on his role as a father and husband. On his 30th birthday in 2001, Roy Carlson approached Mark and shortly afterward offered him a job. The position was local and required no travel. Even though Roy passed away a couple of years ago, Mark reminisces fondly about his highly respected legacy within the industry and how highly involved he was as a member of TIADA. Mark attributes the success of the industry and the association to the level of trust amongst independent automobile dealers. He describes these individuals as self-made business owners, who often do all the work themselves, including automobile acquisitions, collections, sales, and even repossessions. Because of this, the attitude among these dealers is close. Veteran members frequently spend a lot of time helping newer dealers become successful. Mark specifically respects Keith Hagler, although he emphasizes that there are hundreds of other dealers like him, who will sit with and mentor new dealers 20
for hours, giving advice and tidbits about the industry.
Current Challenges and TIADA’s Future
As Mark transitions into his new role within the association, he is thinking seriously about the
potential challenges facing the industry. He is specifically concerned about a couple of pieces of federal legislation that could negatively impact the independent automobile business. The first is a federal “all-in interest rate cap” that is being discussed in the United States Senate. This legislation would potentially limit a dealers’ ability to sell ancillary products and services to the consumer, including service contracts and gap insurance. Although many in the Senate believe this bill is designed to help the consumer, Mark believes it would actually do the opposite, if it passes. Mark says that bills like these put the government in a position be overly involved in basic consumer finance transactions. TIADA’s role, he believes, is to watch and monitor bills, like the one about the all-in interest rate. Mark says that one of the most important things the association does is to keep tabs on all activity on the federal, state, and local level that can influence the members’ ability
Jones visits Capitol to testify on bill to eliminate named driver insurance policies. T e x a s
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Jones and Jeff Martin visit Congressman Roger Williams in Washington, D.C.
to operate their businesses. “TIADA gives all members a seat at the table as these bills are discussed,” Mark says. “And the association has done a wonderful job working across the aisle and developing relationships with both parties in Texas to make sure our members are protected.” On the future of TIADA, Mark believes the association is postured right now for growth. The newly designed pre-licensing education has exposed the association to new dealers who didn’t know it exists. Mark believes that the education TIADA offers is fantastic compared to every other association in the country. “We also offer the most benefits of any association in the country, and not every state has that,” he says. “Our ability to continue to provide education and compliance needs is among our top priorities to maintain influence in Austin.” Mark also emphasizes the importance of the association’s September 2021
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“TIADA gives all members a seat at the table as these bills are discussed, and the association has done a wonderful job working across the aisle and developing relationships with both parties in Texas to make sure our members are protected.”
referral network throughout the state. If a member has a compliance issue, for example, “we can generally help our members solve any problem within minutes,” he says. As Mark anticipates the beginning of his year as TIADA President, he reflects, “I cannot begin to tell you how excited I am to serve as President of this great association. In October when the board and TIADA team meet, we will develop a new five-year strategic plan. I am very excited about the opportunities, but I also realize that we don’t need to go tinkering with something that isn’t broken.” Typical of his way, he also emphasizes trust and community, saying, “I am grateful for the trust that our membership has placed in myself and the other members of our board. I can assure you that we will continue listening to all of our members because we represent every single member in our association.” 21
YES! I would like to serve on TIADA Committees Check the committee(s) you wish to join. All Dealer Members are welcome to participate. We need your input! Please complete form and return to info@txiada.org or fax to 512.244.6218.
Committee members will be appointed at the October 2021 board meeting Standing Committees: Awards Committee Budget and Finance Committee Legislative Committee Political Action Committee (INDEPAC) Bylaws Committee Ad hoc Committees: Ad hoc committees will be appointed by the president to focus on specific issues and given a specific timeframe. Issues may include but are not limited to: education, conference, compliance, member services, membership recruitment, website, magazine and surveys. Committee members will be notified prior to a committee being appointed to determine interest. Name___________________________________________________________ Dealership_______________________________________________________ Title __ ___________________________________________________________ Email ___________________________________________________________ Phone________________________ Mobile_____________________________ 22
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resource guide The TIADA Website: www.txiada.org
Members can log in with their username/ password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.
License Renewal Certificate TexasDealerEducation.com
Texas Department of Motor Vehicles 888.368.4689 www.txdmv.gov
Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov
Texas Comptroller
800.252.1382 comptroller.texas.gov/
NIADA
800.682.3837 www.niada.com
REPOSSESSIONS
American Recovery Association 972.755.4755 www.repo.org or contact TIADA state office
FORMS Burrell Printing
800.252.9154 www.burrellprinting.com
September 2021
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in memoriam Gordon Wear
by TIADA Staff
W
e are deeply saddened to announce that former TIADA and NIADA President Gordon Wear passed away on July 8, 2021, in Muskogee, Oklahoma. He was born on Sunday, June 11, 1933, in Plymouth, Illinois to John Verdon Wear and Estel Pearl (McFadden). Gordon served in the United States Army.
“Gordon was a great association man. He supported the local, state and national association in many ways. Not only serving as the president but he was always willing to give his time and money to help move the association forward. He really cared about the industry and his fellow dealers, and it showed.” George Karlen, TIADA and NIADA Past President
Gordon was an incredibly active and charitable member of the association for many years. He was deeply involved at his local chapter, across the state of Texas, for the independent automobile industry. He leaves behind a legacy of dedication and service. He served as TIADA President in 1978. Gordon is remembered fondly by the association, and will be missed by many, including other former TIADA presidents. “Gordon was a great association man,” said TIADA and NIADA Past President George Karlen. “He supported the local, state and national association in many ways. Not only serving as the president but he was always willing to give his time and money to help move the association forward. He really cared about the industry and his fellow dealers, and it showed.” Gordon was 88 years old. 23
feature
2021 TIADA Conference & Expo Wrap Up by TIADA Staff
T
IADA members traveled to Round Rock in July to attend the 2021 Conference & Expo. It was one of the most successful and memorable events in the association’s history, with over 300 dealers in attendance. Many of these dealers were first-time attendees, who enjoyed several hours of educational breakout sessions led by leaders within the industry and dealer roundtable discussions.
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The variety of these discussions covered many important topics within the industry, including BHPH operations, dealership management, special finance and retail, technology, and compliance. Dealers also attended an inspired keynote address from Roy Spence on the power of purpose. These presentations were by highlighted by an atmosphere of excitement and relief, after last year’s Conference was forced to be held virtually. Attendees were enthusiastic to be back together in person, and TIADA thanked their patience and commitment with many unforgettable events. In addition to the educational sessions and roundtable discussions, dealers attended a packed expo hall, which featured over 100 vendors. September 2021
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Especially in recent years, TIADA has demonstrated its commitment to developing the association’s political influence across Texas. The association works tirelessly throughout the year to build relationships on both sides of the aisle to protect its members and improve their ability to conduct business. This year’s Conference showed clearly just how far that reach has grown. TIADA was honored to host Governor Greg Abbott, who spoke on the final day of the Conference to discuss the state’s economic progress and the future impact that will have for independent automobile dealers throughout the state.
In addition to the Texas Governor, several other legislative members throughout Texas spoke at the Conference, including State Senator Kel Seliger and State Representatives Dustin Burrows, Ryan Guillen, Brooks Landgraf, and Glenn Rogers.
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Thank You
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Don’t forget to mark your calendars for July 24-26, 2022. We will return to the Kalahari Resort in Round Rock, and we can’t wait to see you all again! September 2021
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feature
2021 TIADA Awards Wrap-Up by TIADA Staff
T
IADA announced the winners of several awards at the final event during its annual Conference & Expo, which took place from July 25-27 at the Kalahari Resort in Round Rock. The awards banquet is always one of the event’s major highlights, and several members of the community were honored for their work over the past year. The first award winner was Gregory Phea, Jr., who is studying corporate communications at the University of Texas and who plans to attend law school and dedicate his life to advocating for small business owners. Gregory was given the Marvin Norwood Scholarship for his promise as a student and leader in the community. Tax Assessors Ronnie Keister of Lubbock County and Tammy McRae of Montgomery County were awarded the organization’s Independent Award, which recognizes individuals outside of the industry who work to support independent automobile dealers. These two tax assessors have shown enormous compassion, professionalism, and leadership at a time when many dealers were struggling during the COVID-19 pandemic. Former TIADA President Mark Brown, owner at Red Carpet Auto
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Sales in Seguin, has become the newest member of the TIADA Hall of Fame for his ongoing representation and advocacy for Texas dealers at the Capitol in Austin, for his contributions to INDEPAC, and for recruiting members to the association. Tommy Gregory, the owner of Abilene Used Car Sales, has been named the 2021 Texas Quality Dealer of the Year. It is the most
prestigious award the association gives each year, and the award committee bases its selection on the individual’s character, association participation, political involvement, and business acumen. José Engler, of Irving Motors in San Antonio, has earned the NIADA Eagle Award by recruiting 20 members in 2019. Congratulations to all of this year’s winners!
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regulation matters
Voluntary Vehicle Protection Products Under Attack
D
uring the Trump administration, the CFPB focused on enforcement of current laws compared to the Obama years when the CFPB pushed new enforcement ideas. Since the election in November most dealers have wondered what the CFPB will do going forward and what enforcement priorities the agency will have under the Biden administration. On May 21, 2021 Biden’s CFPB issued its first press release concerning the automobile industry under the current administration. The press release concerned a consent order entered into by California Auto Finance for illegally charging interest for late payments on its Loss Damage Waiver product without the customer’s knowledge. Notably, the release states “This case presents another example of auto loan companies unfairly or deceptively using addon products to increase the cost of auto loans.” This enforcement action is notable because it is the first enforcement action of the Biden administration’s CFPB which may be the best indicator to date of future priorities of the agency, but most importantly the language the CFPB used in describing the issue shows their bias. When I first started selling cars over 20 years ago, the dealership I worked for switched the name of our used car department to preowned cars. I remember one of my first customers who came after the name change to look for a preowned car asking to see used cars. I quickly responded by saying follow me to our preowned department and my customer was quick to clarify that he only wanted a used car and did not want to pay the prices of preowned cars. For some reason, this many years later, even after consumers have accepted the preowned terminology, I remember this customer and how the different terminology gave him a different perception. Terminology matters and our advocacy relies on dealers adopting proper terminology and avoiding negative terms. We must work to change the narrative from yo-yo sales and spot deliveries to courtesy deliveries which better describe what happens, and from addons to voluntary protection products because we cannot allow advocates against our industry to control the terminology in a way that often misstates reality. With the terminology of add-ons in mind, I think it is important to understand who else is using this slanted terminology and where it started instead of the terms that better describe what the products are
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by Earl
Cooke
TIADA DIRECTOR OF COMPLIANCE AND BUSINESS DEVELOPMENT
and what they do, such as insurance products, service contracts, debt cancellation agreements, or voluntary protection products. In October 2017, the National Consumer Law Center (NCLC) a “nonprofit organization headquartered in Boston, Massachusetts, specializing in consumer issues on behalf of low-income people” issued a report entitled “Auto Add-Ons Add Up How Dealer Discretion Drives Excessive, Arbitrary, and Discriminatory Pricing.” The NCLC is highly regarded by the plaintiffs’ bar and Democratic lawmakers. They produce quality work (some may argue it’s slanted) to push an agenda against creditors and have been instrumental in adoption of the term add-on which is now being used by the FTC, CFPB, and members of the US Congress. Their report stated “add-on products sold by car dealers, such as service contracts, Guaranteed Asset Protection (GAP) insurance, and window etching make up a large share of dealers’ profits. They also significantly increase car buyers’ costs. While many have questioned the value of these products for consumers, the pricing of these products has received less attention, largely because pricing is not transparent.” The report continued by issuing key findings as follows:
“(1) Add-on products are sold at prices far higher than dealer costs. Dealers mark up add-on
products more than other similar products are marked up. They mark up add-on products by a far higher percentage than they mark up cars. One dealer sold over 1,000 window etching products, each with a dealer cost of $16 and a charge to the consumer of $189, for a markup of $173 or 1,081%. For Guaranteed Asset Protection (GAP) insurance products, 38 dealers had average markups of 300% or more, and 38 dealers marked up service contracts by an average of more than 300%.
(2) Dealers are inconsistent in the pricing of add-on products. Individual dealerships charge some consumers many times more than other consumers for the same product with the same dealer cost.
31
(3) This inconsistent pricing for the same add-ons leads to pricing discrimination. (4) Companies that provide car financing play an important role in allowing excessive and discriminatory markups of auto add-ons.” Even worse than the alleged findings that were not backed up by hard facts and were based on a very small sample, was they issued several impractical recommendations. These recommendations were as follows:
“(1) Dealers should be required to post the available add-ons and their prices on each car in the lot, along with the price of the car. To
prevent the dealer from reintroducing non-transparency by offering discounts to some customers but not others, the prices for the add-on products must be non-negotiable.
(2) To root out pricing discrimination, the federal Equal Credit Opportunity Act regulations should be amended to require documentation of the customer’s race or national origin for non-mortgage
635 Fritz Dr. Ste 210 Coppell, TX 75019 469-637-0150
credit transactions, as is currently required for home mortgage transactions. If discrimination remains hidden, it will not be possible to end it.
(3) State and federal enforcement authorities should investigate discrimination in pricing of add-on products and bring enforcement actions against a dealer if discrimi-
nation is shown. Could you imagine posting every voluntary protection product a dealer offers on a car? A racing car would have less stickers on it than a car. Almost every dealer I worked for had numerous voluntary protection product offerings that would have made posting too difficult and impractical. With this background in mind, 32
I think it is a good time to look at your policies concerning any Voluntary Protection Products you offer. We all know these products offer valuable protection to customers against unexpected and costly events. Too often, we see customers without service contracts struggling to pay for a necessary repair or witness someone devastated by a total loss after the insurance company leaves a remaining balance they cannot pay. Yet, we must do more to ensure our customers can continue to have a choice in how to protect one of if not the largest investments they have. Please consider these things before offering voluntary vehicle protection products: (1) Is the cost to the customer fair at a level where the customer received a benefit relative to the coverage and protections they receive? (2) Is the claims payment process effective when a triggering event occurs? This also applies to refunds on unused portions of a product, if applicable. (3) Is the insurer financially sound and able to pay claims when they occur? In addition to this, you should set a standard markup and, whenever you deviate from that markup please document and retain information on why you deviated. By having a system in place you will be able to disprove any false claims of discrimination, but unfortunately this has not stopped all allegations, for example the NCLC alleged pricing discrimination in Florida based on “the Hispanic percentage markup was higher but not the absolute dollar amount” for service contracts when Florida is the only state with a law that requires dealers to a set price on service contracts, file the price with a state agency, does not allow deviation, and has a state agency review all the sales. T e x a s
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house of delegates meeting minutes July 25, 2021 | Kalahari Resort | Round Rock, TX
compiled by Texas Dealer staff
A
Bylaws Committee
Special guest Senator Kel Seliger welcomed our attendees and made a few remarks.
Legislative Committee
t its meeting on Sunday, July 25, 2021, TIADA took the following actions:
James Hobson presented the Bylaws Committee Report. President Juan Sabillón called the meeting to order at 1:38 p.m. There were no changes to the bylaws.
2022 Officer Elections
Erika Blankenship presented the Legislative Committee Report.
With no contested races, Chairman Juan Sabillón asked for a motion directing the Secretary to submit a single ballot for the following candidates:
A motion was made to accept the proposed changes to the Legislative Agenda presented by the Legislative Committee.
Chairman of the Board: Robert Beck; President: Mark Jones; President Elect: Ryan Winkelmann; Secretary: Eddie Hale; Treasurer: Vicki Davis; Vice President Region 1: Cesar Stark; Vice President Region 2: Chad Lancaster; Vice President Region 3: Greg Reine; Vice President Region 4: Russell Moore; Vice President Region 5: Robert Blankenship; Vice President Region 6: Armando Villarreal; Vice President at Large: Brad Kalivoda; Vice President at Large: Greg Phea.
A motion was made to adjourn the meeting.
Moved by Tommy Gregory, seconded by Blake Ingram — Passed.
Moved by Brent Rhodes, seconded by Michael Zak – Passed. Moved by George Karlen, seconded by Keith Hagler —Passed. Meeting adjourned at 2:10 p.m. Respectfully submitted, Ryan Winkelmann, Secretary A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.
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September 2021
MANHEIM EL PASO
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www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566, Fax 713.644.0889 President/GM: Tim Bowers Wednesday, 11:00 a.m.
$AVE : $200
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 GM: Dale Martin Wednesday, 9:30 a.m
$AVE : $75/Quarterly
Lufkin
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**
www.e-dealerdirect.com chris@edealerdirect.com
$AVE : Up to $500/month
San Antonio ADESA SAN ANTONIO
www.adesa.com 200 S. Callaghan Rd., San Antonio, TX 78227 210.434.4999, Fax 210.431.0645 GM: Clifton Sprenger Thursday, 10:00 a.m.
$AVE : $200
IAA SAN ANTONIO*
www.iaai.com 11275 S. Zarzamora, San Antonio, TX 78224 210.628.6770, Fax 210.628.6778 GM: 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
IAA HOUSTON*
LUFKIN DEALERS AUTO AUCTION
ALLIANCE AUTO AUCTION WACO
$AVE : up to $200 Sell Fee
$AVE : $200
$AVE : $200
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.
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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.
www.allianceautoauction.com 15735 I-35 Frontage Road Elm Mott, TX 76640 254.829.0123, Fax 254.829.1298 GM: Christina Thomas Friday, 10:00 a.m.
35
texas independent automobile dealers association
Become a TIADA Member 2021
TIADA texas independent automobile dealers association
Business Name: ____________________________________________ Select one:
Dealer Member
Associate Member
Contact Person: ____________________________________________ Address: __________________________________________________ City: __________________________________ State: _____ Zip: ______
2021 TIADA Membership Dues: $499* Renewing Member
County: ______________ Cell Phone: __________________________ Office Phone: __________________________ Fax: ________________________
$250* New Member (*Membership is thru 12/31/2021. Dues include NIADA
Email: _______________________________________________
and local chapter membership where applicable.)
Dealer P Number: ___________________________________________ 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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feature
Language Matters: A Confused Customer Does Not Buy by Kenny Atcheson Dealer Profit Pros
One person said he thought it was the apartments next to Texas Tech university advertising where they take rent payments in cash. I even hinted to some that the signs were always outside of used car dealerships. They all shrugged their shoulders and responded, “No. I don’t know what that means.” That is ZERO that knew what Buy Here, Pay Here meant. That is not an official study with a large enough sample size, but here is further definitive proof. We invest tens of thousands of dollars every month on Google Ads for Buy Here, Pay Here dealers. Over the last few years we have managed Google ads and consulted for dealers about their ads totaling in the millions of dollars. I have seen some ads and keywords. Here is one thing I discovered. Guess which of the following phrases gets searched for more often in any given month: — Buy Here, Pay Here dealer — Bad credit car dealer
Talk Like Them So They Understand.
A
few years back I was hired to speak to a Twenty Group in Lubbock, Texas about marketing, advertising, sales, and communications. I wanted to make the point that not everyone knows what the phrase Buy Here, Pay Here means. I had presented this topic to other groups with good evidence, but this time I did something different. After one wrong turn had
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me touring thousands of acres of cotton fields, I went to a certain part of town and walked around a Walmart. I recorded conversations as I approached a number of people and said this: “Excuse me. I am not from around here. As I was driving in I noticed signs that said Buy Here, Pay Here. Do you know what that means?”
Bad credit car dealer gets searched more often because some people do not know what the phrase Buy Here, Pay Here means. So when they drive by your car dealership and see a sign that says Buy Here, Pay Here, you have wasted an opportunity. Everyone knows bad credit. Some may know in-house financing. The same goes for your website. If it has a message of best Buy Here, Pay Here dealer in Texas, many people do not know what that means. Even if they understand the words and that it could 37
mean buy your vehicle here and make your payments here, they may not know that it ultimately means: bad credit is welcome.
Tell them.
Use words and phrases your customer will understand. It does not end with the phrase Buy Here, Pay Here. Most dealers use words and phrases in other marketing that many customers do not understand. For example, your subject line of your automated email sent to customers after they ask about a vehicle is: We have received your inquiry.
Change it immediately.
How many people do you think use the word inquiry in a sentence? Ever? Write and market like you talk. Do not try to look smart to your customers. It does not impress them. Abraham Lincoln is known as one of the best communicators in presidential history. Although he was an educated man, people made fun of his “simple talk.” They asked him why he spoke so simply to the people. He explained that if he spoke at too high of a level only half the audience would understand him. Speaking simply, everyone can understand.
Every vote counts the same even if the voter does not understand big words. Every customer’s dollar spends the same whether or not they understand big words. With respect to the great English grammar teachers in America, resist the urge to have your communications edited by an English teacher. I have written automated email series, direct mail campaigns, and salesperson’s email templates many times. So I know to explain to clients ahead of time that my writing for them may not be what they expect. They are not hiring me to make their communications sound sophisticated — they are hiring me to help them sell cars. A few years ago I had an email series returned to me by a client with edits. I thought, this seems like it was graded by an English teacher. I asked the client. Sure enough, it was! I am sure the teacher was horrified by my slang (not cursing), and improper grammar usage, bold, italics, etc. Thankfully I did not get offended — I didn’t ace my college English classes like I did Quantitative Analysis and Communications. Sales communication is not about grammar. It is about building trust, being friendly, and influence that leads to a sale. Communicate close to how your customers talk, not three levels above them. If possible it is smart
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to sound local. If writing a sales communication for a Texas dealer I might use “y’all” but in New York I would not. Write like you talk, or how they talk. The average newspaper is written at the 6th grade level. The Wall Street Journal is written at the 10th grade level. Why would a dealer’s communications be written at college level? According to spokespersons from the Literacy Project Foundation in California: 50 percent of adults cannot read an 8th-grade level book 45 million people are function ally illiterate and read below a 5th-grade level
use words that they understand. I have had this conversation with Bible teachers, not just car dealers. Years ago I started reading The Message Bible. It is written in English that everyone can understand. Although I have other versions such as the King James Bible, New American Standard, New Living Translation, and New International Version, The Message is still my go-to because I can read a passage once and understand it. Nobody likes to read something
and not understand it. Nobody likes to feel stupid. Using communications that your customers understand will help you sell more cars. It’s easy to assume that people understand things that may seem obvious to you and others. Kenny Atcheson is the founder and president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. His website can be found at www.DealerProfitPros.com.
“The definition of genius is taking the complex and making it simple.” ~Albert Einstein I am sure that some children believe Easter is about the Easter Bunny, a rabbit that somehow lays chocolate eggs. But did you know that many adults in America don’t know what Easter means? I am not referring to people who do not have faith in what Easter represents — rather people who don’t know what Easter represents to believers. A study by the Barna Group revealed that only 42% of Americans identified what Easter actually means to believers. In addition... Even within the religious definitions offered by Americans there is a certain degree of confusion: 2% of Americans said that Easter is about the “birth of Christ.”
.
Not sure what the same people would say that Christmas represents. Do not assume what your customers know. Explain and September 2021
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legislative bulletin
T
he 87th Texas Legislative Session convened on January 12, 2021, to unprecedented challenges. Led by Governor Greg Abbott and, in the Senate, Lieutenant Governor Dan Patrick, and freshly minted Speaker of the House Dade Phelan, state legislators faced uphill battles from the opening gavel. A devastating winter storm, a pessimistic budget outlook, and threats of civil unrest after the January 6th storming of the U.S. Capitol piled onto the COVID-19 pandemic that already promised to deliver a difficult and challenging 87th session. These unique circumstances forced the legislature to begin deliberately cautiously, leaving little room for distractions or delays. Health restrictions created an environment the legislature has never seen before — the usually celebratory opening days of session were replaced by largely empty hallways, COVID-19 testing tents, and House and Senate chambers closed to the public and the media. The public health reality changed rapidly, and with more vaccinations came more normalcy. By the time bills started moving and dying, both the legislature’s environment and its policies seemed more reminiscent of past sessions — for better or for worse. Still, this session was more subdued than previous sessions. The slow start and the unique priorities are evident in the final statistics. Of the 6,927 bills filed, 1,073 were sent to the Governor. We are proud to say these include many of TIADA’s top agenda items, and just as importantly, do not include many of the harmful bills that we worked together to stop. Below is a snapshot of our work throughout the 87th.
SB 15 (Nichols) This bill would limit the access to TxDMV records to help eliminate unwanted telemarketing calls. The initial version of this bill eliminated all uses of TxDMV records and would have prevented dealers from verifying ownership of vehicles. TIADA recognized the importance of eliminating unwanted calls and worked to ensure legitimate uses were not prevented. STATUS: TIADA worked closely with Senator Nichols and his office to ensure legitimate uses of this information are not made inaccessible. TIADA explained and Senator Nichols recognized there are September 2021
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by TIADA
Staff
numerous legitimate uses dealers have for this information, including verification of ownership of trades. TIADA also understands the Senator’s goal to prevent illegitimate uses of this information. TIADA believes the right balance was found and dealers will not be negatively impacted while consumers will benefit from prevention of improper uses. This bill was signed
by the Governor on June 16, 2021, and was effective immediately. SB 876 (Hancock) This bill allows a motor vehicle dealer to apply for the registration of and title for vehicles sold by the dealer with any county tax assessorcollector who is willing to accept the application. TIADA supported this bill. STATUS: TIADA worked closely with other stakeholders to help move this bill through the legislative process. The TxDMV must first update manuals, provide guidance to the counties, and perform system updates.
This bill was signed by the Governor on June 14, 2021 with an effective date of March 1, 2022. SB 935 (West) This bill would allow a metal recycler or used automotive parts recycler to purchase a vehicle for crushing or parting without obtaining title to the vehicle or notifying a lienholder if the vehicle is at least 12 years old and the lien is at least four years old. TIADA opposed this bill. STATUS: TIADA worked hard to ensure members of the legislature were aware that 12-year-old vehicles are very common and not clunkers and that this bill would hurt the ability of lienholders to ensure their collateral is safe from bad actors. This was the second session that a bill like this has appeared and we fully expect to see another in the next regular session. This bill passed the Senate but did not pass the House.
HB 2879 (Landgraf) This bill would change the notice requirement to lienholders before the sale or disposition of a motor vehicle by allowing the later of the 30th day after the date on which the charges accrue or 41
Local Chapters CORPUS CHRISTI G.R. Moore The Car Shack (dates announced at
www.txiada.org)
EL PASO Cesar Stark S & S Motors Meeting – 3rd Friday (Monthly)
FORT WORTH Jerry Smith H J Smith Automobiles Meeting – 4th Thursday of Jan–May and Sep–Oct
HOUSTON April Hanson Coast to Coast Motors Meeting – 2nd Tuesday (Monthly)
SAN ANTONIO Jose Engler Irving Motors Corp (dates announced at
www.txiada.org)
42
the 30th day before the date of a proposed sale or disposition of the motor vehicle. Current law requires notice prior to the 30th day on which the charges accrue. This bill would significantly slow down the current process for lienholders to be notified about the threat of a mechanic’s lien. TIADA opposed this bill initially. STATUS: TIADA worked with the stakeholders behind the bill and discovered the motivation was to allow more time for heavy equipment. Afterwards, TIADA worked with members of the legislature to ensure the stakeholders issues were addressed without negatively impacting dealers. This bill was
signed by the Governor on June 15, 2021 with an effective date of September 1, 2021. Please note this bill was given a friendly amendment that limits the change to vehicles over 16,000 GVWR and should not impact most dealers.
HB 3510 (Lambert) This bill would allow employees of businesses licensed by the Texas Finance Commission, including the OCCC to have employees work remotely as long as licensees appropriately safeguard data, appropriately monitor employees, and ensure unimpeded regulatory oversight. TIADA supported this bill. STATUS: The legislature recognized dealers and lenders have shown they are capable of working from home and still ensure the safety of customer data. TIADA worked with lenders and other stakeholders to help this bill through the process. This bill was signed by the Governor on June 14, 2021 with an effective
date of September 1, 2021. HB 3533 (Martinez)
This bill raises the surety bond from $25,000 to $50,000. In recent sessions the legislature has introduced bills raising it to as much as $250,000. The bill also requires a dealer to post a notice of the surety bond and the procedure by which a claimant may recover against the bond. TIADA’s board decided to not actively oppose this bill because the change is likely to result in a minimum cost to dealers and avoids more significant changes that were proposed in the past. STATUS: TIADA worked to remove the posting requirement, but ultimately was unable to do so. This bill was
signed by the Governor with an effective date of September 1, 2021. TxDMV recently sent out a notice that states “Applicants and dealers applying for a new GDN, or renewing a current GDN, prior to September 1, may still submit a Motor Vehicle Dealer Surety Bond in the amount of $25,000 to meet the security requirement. All applicants and dealers applying for a new GDN, or renewing a current GDN, on or after September 1 are required to submit a Motor Vehicle Dealer Surety Bond in the amount of $50,000.” TIADA will continue to monitor the implementation of the new laws and update members if any new information is released. T e x a s
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Please Welcome Our Newest TIADA Members DEALER MEMBERS 2 Fratello’s Auto Sales, LLC.
Juli Lewis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .206 Mentor Drive, Arlington, TX 76002
Gill Florentinio . . . . . . . . . . . . . . . . . . . . . . . . . 14002 Vernon Ave, Lubbock, TX 79423
Midson Point Motors
Al Roel . . . . . . . . . . . . . . . . . . . . . . . . . . 10614 N Interstate 35, San Antonio, TX 78233
My Car Store River Oaks
Wendy Neagle . . . . . . . . . . . . . . . . . . . . . . . . . . . 2001 North Frazier, Conroe, TX 77301
Nile Motors
Pablo Diaz . . . . . . . . . . . . . . . . . . . . . . . . . 2809 Perdido Bay Ln, PEARLAND, TX 77584
Pablo Motors LLC
Manuel Reyes . . . . . . . . . . . . . . . . . . 7964 State Highway 146 S, Livingston, TX 77351
Patriot Motor Company
Fernando Hurtado . . . . . . . . . . . . . . . . . . . . . 7342 Estrid Trail, San Antonio, TX 78244
PGM Financial
Ricardo Baca Galvan . . . . . . . . . . . . . . . . . . . . . 7761 Mustang ave, El Paso, TX 79915
Precision Autos
A&M Auto Sales
Abel Motors, Inc Amigos Auto
Any Auto Sales Inc
Anytime Auto Group of SA LLC ARC Touchup Express
Atkinsonotto Moto LLC
Ramon Dallot . . . . . . . . . . . . . . . . . . 11301 Farrah Lane, Unit #1131, Austin, TX 78748
Auto Facil Dallas
Diego De Anda . . . . . . . . . . . . . . . . . . . . . . . . . . . 5801 W. Jefferson, Dallas, TX 75211
Bell Cars Inc
Bridget Bell . . . . . . . . . . . . . . . . . . 8204 Elmbrook Drive, Suite 293, Dallas, TX 75247
Benny Moreno
Benito Moreno . . . . . . . . . . . . . . . . . . . 1572 Commercial Ave., San Antonio, TX 78221
Bluegill Motors LLC
Matheu Gill . . . . . . . . . . . . . . . . . . . . . . . . . . . 14060 County Rd 945, Lavon, TX 75166
CC Sales
Savanna Morrison . . . . . . . . . . . . . . . . . . . 14341 Indigo St., Corpus Christi, TX 78418
Chance’s Auto Sales
Elidio Hernandez . . . . . . . . . . . . . . . . . . . . . . . . . 2203 FM 1626, Machaca, TX 78652
Christian Motors LLC
Christopher Salter . . . . . . . . . . . . . . . . . . 5751 Remington Circle, Ft. Worth, TX 76132
Crossroads Collision Repair
Xavier Fuentes . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 N Pumphrey St, Edna, TX 77957
Atibioke Johnson . . . . . . . . . . . . . . . 7428 Mansfield Hwy #117, Kennedale, TX 76060 Jonathan Jauregui . . . . . . . . . . . . . . . . . . . . 4455 River Oaks Blvd, Ft Worth, TX 76114 Elnaiem Salih . . . . . . . . . . . . . . . . . . . . . . . . . 322 Iberis Drive, E6, Arlington, TX 76018 Pablo Villarreal . . . . . . . . . . . . . . . . . . . . . . . . . . . 12071 Garland Rd, Dallas, TX 75218 Benito Olson . . . . . . . . . . . . . . . . . . . . . . . . . . . PO Box 1014, Spring Branch, TX 78070 Gary Jackson . . . . . . . . . . . . . . . . . . . . . . . . . . 602 Magic Mile St, Arlington, TX 76011 Mohammad Rashid . . . . . . . . . . . . . . . . . . . . 2960 Interstate 30, Mesquite, TX 75150
Race Auto Sales LLC - San Pedro
Sameer Daredia . . . . . . . 12023 San Pedro Avenue, Suite #B, San Antonio, TX 78216
River Motors, LLC.
Tracy Austin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 E 8th St., Odessa, TX 79761
Tellz Auto
Teslim Shittu . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.O.Box 7023, Round Rock, TX 78683
Top Notch Motors
Demetrius Lampkins . . . . . . . . . . . 1900 Preston Rd, Suite 267-131, Plano, TX 75093
Unique Motors of Lubbock
Brian Melakian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4402 Ave Q, Lubbock, TX 79412
Weeks Motors
Mandy Weeks . . . . . . . . . . . . . . . . . . . . . . . 11535 Harry Hines Blvd, Dallas, TX 75229
WJ & TP Enterprises
Willie Lundy . . . . . . . . . . . . . . . . . . . . . . 15826 Blueridge Rd, Missouri City, TX 77489
Xoom Auto Direct
Alex Thabata . . . . . . . . . . . . . . . . . . . . . . . . . . . 909 W Division St, Arlington, TX 76012
DeYoung Motors LLC
ASSOCIATE MEMBERS AMcards.com/dealers
Digital Dealership USA Inc dba Carsfast
Car Guys Agency
Patrick Haskell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1700 Hopi Trail, Austin, TX 78703 Tammy Kaverman . . . . . . . . . . . . . . . . . . . . . . . . . . . PO Box 1332, Ofallon, MO 63367
EAN Holdings, LLC - Austin
Don Schwent . . . . . . . . . . . . . . . . . . . . . . . . . 4210 S. Congress Ave., Austin, TX 78745
EdgeTec
Joel James . . . . . . . . . . . . . . . . . . . . . . . . . . 9100 Ambassador Row, Dallas, TX 75247
Fort Worth Mitsubishi
Jason Ripple . . . . . . . . . . . . . . . . . . . . . . . . 8000 West Freeway, Fort Worth, TX 76108
Jeslo Auto Sales
Johnny Dixon . . . . . . . . . . . . . . . . . . . . 1131 S.W. White Road, San Antonio, TX 78220
Kanda Motors
Katie Seamans . . . . . . . . . . . . . . . . . . . . . . 1001 S Broadway St, Carrollton, TX 75006
Kemp Automotive LLC
Tyechia Kemp . . . . . . . . . . . . . . . . . . . 2910 Watermark Dr., 406, Fort Worth, TX 76135
Laco’s Auto Sales, LLC
Eraclio Ipina . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2701 Coventry Lane, Dallas, TX 75007
Mac Auto Sales LLC
Alexis Cornejo . . . . . . . . . . . . . . . . . . . 3213 W. Palma Vista Drive, Palmview, TX 78572 44
Mad Ash Ventures LLC dba Max Life Auto
Curtis Lewsey . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Middle St, Lake Mary, FL 32746 Tom Hampton . . . . . . . . . . . . . . . . . . . . . . 601 W Baker Rd, #7101, Baytown, TX 77522
Dealer Capital Source -Battistone Enterprises LLC
Betty Battistone . . . . . . . . . . . . . . . . . . . . . 23327 Grand Springs Drive, Katy, TX 77494
FlickFusion Video Marketing
Timmy James . . . . . . . . . . . . . . . . . . . . . . 7733 Douglas Avenue, Urbandale, IA 50322
GPW and Associates, Inc.
Maurice Edwards . . . . . . . . . . . . . 3101 N Central Ave. Suite 400, Phoenix, AZ 85012
Merchant Advocate
Don Giordano . . . . . . . . . . . . . . . . . . . . . . . 968 Continental Ave, Toms River, NJ 8753
North Texas Tollway Authority
Laura Molina . . . . . . . . . . . . . . . 5900 W. Plano Parkway, Suite 100, Plano, TX 75093
Profilocity LLC
Mark Peters . . . . . . . . . . . . . . 2626 Cole Ave Suite 300, Suite 300, Dallas, TX 75204
TrueSpot
Bryan Bock . . . . . . . . . . . . . . . . . . . . . 611 S Main St., Suite 300, Grapevine, TX 76051
VinCue (DealerCue Automotive Corp LLC)
Michael Hopkins . . . . . . . . . . . . . . . . . . . 912 Broadway Blvd, Kansas City, MO 64105 T e x a s
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by Jeff
Martin
A Tip of the Hat to our Sponsors
A
lmost every Western movie has at least one hair-raising moment, where the hero makes up his mind to run through a hail of gunfire or face an army of men to save the day. No movie would be complete without the main character developing a close bond with someone he can trust to watch his back and always be there for him when that moment comes. My all-time favorite character for watching someone’s back is Lone Watie, played by Chief Dan George, in The Outlaw Josey Wales. Wales never had to ask Lone Watie if he had his back; he simply knew he could count on him and that he would always be there when times got tough. This relationship was illustrated perfectly after a brief gunfight with four “red legs” from the Union Army. Lone Watie: How did you know which one was goin’ to shoot first? Josey Wales: Well, that one in the center: he had a flap holster and he was in no itchin’ hurry. And the one second from the left: he had scared eyes, he wasn’t gonna do nothin’. But that one on the far left: he had crazy eyes. Figured him to make the first move. Lone Watie: How ‘bout the one on the right? Josey Wales: Never paid him no mind; you were there. Why do I reminisce about an old Western and the relationship between Wales and Watie? In 2020 we
TIADA EXECUTIVE DIRECTOR
held our first and last virtual conference. Shortly after that conference, we knew we had not met our own expectations, or that of our sponsors, and we wondered privately and publicly who would be back for 2021. For those of you who attended the conference this year, you saw several Lone Waties in the expo, associate members who stuck with your association in 2020 and who were there again in 2021. If you are not sure who I am talking about, turn to page 27 where we thank our sponsors for 2021. Without their sponsorship and support, we could not deliver the quality conference and service we provide to our members. I encourage each dealer to take a close look at the sponsors listed on that page. Sure, the goal is to build relationships, collect leads, and sell products. But they are doing more than that. By sponsoring TIADA events, our sponsors are clearly stating, “I understand this association means a lot to you as a dealer, and I want you to know it means a lot to us too.” As a member of this association, you owe them a chance at your business. These sponsors play an unbelievably important role in our association. Their relationship allows us to do a better job representing your interests. And finally, to all our sponsors who stuck with us through 2020 — and showed up again to help us make this year’s conference our biggest and best ever — trust me when I say we appreciate you being there.
These sponsors play an unbelievably important role in our association. Their relationship allows us to do a better job representing your interests. 46
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TEXAS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750
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