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TIADA Board of Directors
PRESIDENT
Eddie Hale/Neighborhood Autos
PO Box 1719
Decatur, TX 76234
PRESIDENT ELECT
Vicki Davis/A-OK Auto Sales
23980 FM 1314
Porter, TX 77365
CHAIRMAN OF THE BOARD
Ryan Winkelmann/BJ’s Autohaus
5005 Telephone Road Houston, TX 77087
SECRETARY
Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753
TREASURER
Brad Kalivoda/Fiesta Motors 2599 74th Street
Lubbock, TX 79423
VICE PRESIDENT, WEST TEXAS (REGION 1)
Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915
VICE PRESIDENT, FORT WORTH (REGION 2)
Tyler Simmons/Abilene Used Car Sales, Inc. 2150 N. 1st Street
Abilene, TX 79603
VICE PRESIDENT, DALLAS (REGION 3)
Greg Reine/Auto Liquidators
39670 LBJ Freeway Dallas, TX 75237
VICE PRESIDENT, HOUSTON (REGION 4)
Lowell Rogers/11th Street Motors 1355 N 11th St, Beaumont, TX 77702
VICE PRESIDENT, CENTRAL TEXAS (REGION 5)
Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas, TX 75218
VICE PRESIDENT, SOUTH TEXAS (REGION 6)
Cesar Torres/Lofi Motors 4634 Ayers St. Corpus Christi, TX 78415
VICE PRESIDENT AT LARGE
Armando Villarreal/McAllen Auto Sales, LLC
4215 S. 23rd St McAllen, TX 78503
VICE PRESIDENT AT LARGE
Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301
I’m coming up on the 20-year mark in the BHPH industry with Fiesta Motors. When I started, I was wrapping up my undergraduate degree at Texas Tech (Go Red Raiders!), simply looking for a job to help me pay tuition. Little did I know then that it would turn into a career. Fortunately, I joined an organization with outstanding leadership that invested huge amounts of time and energy in me. Helping me not only understand the industry but developing me into a better leader.
I was introduced to TIADA almost immediately. I attended educational courses and learned from the greats of the industry, such as Mike Dunagan, doing my best to take their expertise back home and implement it in our dealership. Without those courses, it would have taken me years to get up to speed, and there is no doubt I would have made some expensive mistakes along the way.
I remember my first conference walking among the seasoned dealers and feeling very out of place. I’m sure I stuck out like a sore thumb, not knowing a single person and asking all the most basic questions. Before that conference was over, I understood the attraction of TIADA. The dealers were amazing! Good people who were willing to share and offer advice. Making me feel welcome, comfortable, and for sure more knowledgeable. At the
by Brad Kalivoda Fiesta Motors (Lubbock) TIADA TREASURER
same time, I made some new friends that I still talk to today.
Every year, when I attend our conference, I think back to my first experience. I look around for those that may look a little lost or overwhelmed. I try my best to give them that same welcome feeling so many of you gave me when I first arrived. There were many new faces at the 2023 conference, which was exciting to see—lots of youthful people in the same spot I found myself 20 years ago: trying to successfully navigate the challenge of being an independent dealer. It’s great to see the next generation of dealers coming on board and attempting to do it the right way.
In my opinion, community is one of the most important aspects of TIADA. If you are new to the industry and TIADA, I encourage you to reach out to other members. So much knowledge and experience is just a phone call away. Also, sign up for the educational courses, as I promise it will be worth your time. For the rest of us that have been around awhile, I encourage you to find a way to make contact with a new TIADA member that you don’t know. Keep an eye out for that fresh face with no one to talk to. Let’s welcome them and show why we all love TIADA so much.
Community is one of the most important aspects of TIADA. If you are new to the industry and TIADA, I encourage you to reach out to other members.
Board Members in Attendance: Lowell Rogers, Russell Moore, Greg Reine, Vicki Davis, Eddie Hale, Ryan Winkelmann, Mark Jones, Brad Kalivoda, Chad Lancaster, Cesar Stark, Greg Phea, and Armando Villarreal
TIADA Staff in Attendance: John Frullo, Earl Cooke, and Teresa Orkun
Also Present: Rep. Ryan Guillen and Cesar Torres
At its meeting on Sunday, July 23, 2023, TIADA took the following actions:
President Ryan Winkelmann called the meeting to order at 12:10 p.m.
Secretary Vicki Davis presented the minutes from the last meeting.
A motion was made to accept the minutes.
Moved by Mark Jones, seconded by Greg Reine – PASSED
Treasurer Greg Phea presented the Treasurer‘s Report.
A motion was made to accept the Treasurer‘s report.
Moved by Vicki Davis, seconded by Cesar Stark – PASSED
Ryan Winkelmann discussed his time as President and thanked those who served with him.
Executive Director John Frullo reported on various meetings and conferences he and his staff attended, his acclimation to the association, provided information on the conference and expo including the signing of the contract for the next year, and provided a legislative update.
Associate Executive Director Teresa Orkun presented board members with their conference registration information.
Greg Phea presented FY‘24 budget.
A motion was made to approve the FY‘24 budget.
Moved by Cesar Stark, seconded by Lowell Rogers – PASSED
A motion was made to adjourn the meeting.
Moved by Vicki Davis, seconded by Mark Jones
– PASSED
Ryan Winkelmann adjourned the meeting at 2:20 p.m.
Respectfully submitted, Vicki Davis, 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.
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 512.990.1188
www.burrellprinting.com
TIADA enters a new chapter as the association welcomes Eddie Hale, President and CEO of Neighborhood Autos, as its new President. With a heartfelt expression of gratitude and a commitment to unity and service, Eddie steps into the role, setting the stage for a thriving future for the association and the independent automobile industry.
In a poignant display of camaraderie and appreciation, Eddie Hale began his inaugural address at the 2023 TIADA Conference & Expo by thanking the outgoing President, Ryan Winkelmann, for his year of service and the exemplary job he has done at the helm of TIADA. The baton of leadership passes from one dedicated individual to another, as Ryan’s legacy paves the way for Eddie to chart a new course for the association.
“I’d like to start off by thanking Ryan for his year of service as President and the great job he has done. Thank you, Ryan!” expressed Eddie, reflecting on the accomplishments of his predecessor.
Eddie Hale, with humility and determination, expressed his gratitude for the opportunity to serve as the next President of TIADA. Acknowledging the high bar set by past Presidents, Eddie assured the association that he would give his best to meet and exceed these standards, fostering a legacy of excellence.
“It goes without saying, really, that Ryan and all the presidents before him have set a high bar. I can only offer that I will give you my best to meet such standards,” Eddie declared, setting the tone for his tenure.
"I humbly acknowledge that I haven’t earned the title of President, but I am deeply honored to have inherited it. I hold just one vote among a tremendous collective group of people dedicated to serving our industry."
As President and CEO of Neighborhood Autos, Eddie brings with him a wealth of experience and a track record of success in the independent automobile industry. His commitment to customer loyalty and employee retention has earned him a reputation as a visionary leader, dedicated to both his business and the greater industry.
In his address, Eddie emphasized his commitment to the industry as a whole, stating that serving in any capacity, whether as a general member, committee member, or executive board member, is an honor and a responsibility. He acknowledged the collective dedication of individuals within TIADA and expressed his deep gratitude for the support of those closest to him.
“I humbly acknowledge that I haven’t earned the title of President, but I am deeply honored to have inherited it. I hold just one vote among a tremendous collective group of people dedicated to serving our industry,” shared Eddie, highlighting the power of collaboration and unity.
Looking to the future, Eddie’s vision is clear: it’s about embracing the challenges and opportunities that lie ahead. He envisions a bright future for the industry, attributing this optimism to the exceptional teams within TIADA, including the staff, the board, and the committed dealer members from across the state and associate members across the country.
“I offer my service to the best of my ability, with the recognition that our future will always be bright with the many exceptional teams we have,” Eddie affirmed, rallying the association to face the future with confidence.
As he assumes the role of President, Eddie Hale sets his sights on fostering a thriving community of automobile professionals. He acknowledges the vital contributions of TIADA staff, board members, and dealers, who generously devote their time and resources to strengthen the association and the industry at large.
“I want to emphasize that I have always viewed serving our industry as a great honor and responsibility. It is about serving in whatever capacity we find ourselves in,” Eddie asserted, underlining the essence of service and commitment.
Eddie plans to make himself available to meet with dealer members and associate members to show the association’s support. The association will continue to host events throughout the state to bring together dealers, industry leaders, and legislators to strengthen the independent automobile dealer industry.
“The number one thing that TIADA offers its members is a sense of security, encouragement, and unity,” he said.
He also expresses gratitude to those closest to him, recognizing the support of his staff, fellow dealers, and the rest of the individuals that comprise his network. This network of support bolsters Eddie’s ability to lead and serve, as he takes on the significant role of TIADA President.
In closing, Eddie Hale’s address resounds with a sense of unity and optimism for the future. As the new President of TIADA, he commits himself to serving the independent automobile industry and nurturing a thriving community of automobile professionals.
“Let us work together to embrace the challenges and opportunities that lie ahead,” Eddie urged, inviting all stakeholders to join hands and forge a path to success.
With Eddie Hale’s visionary leadership and dedication, TIADA stands poised to make great strides in support of the independent automobile industry. As he takes the reins, the association eagerly anticipates a bright future, driven by unity, service, and the collective pursuit of excellence. As the industry evolves and faces new trials, TIADA, under Eddie’s guidance, is poised to meet the challenges head-on, united in its commitment to a thriving community of automobile professionals across the state and beyond.
Abilene
ALLIANCE AUTO AUCTION ABILENE
www.allianceautoauction.com
6657 US Highway 80 West, Abilene, TX 79605
325.698.4391, Fax 325.691.0263
GM: Brandon Denison
Friday, 10:00 a.m.
$AVE : $200
IAA ABILENE*
www.iaai.com
7700 US 277, Hawley, TX 79601 325.675.0699, Fax 325.675.5073
GM: Shawn Lemke
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Amarillo
DAX of AMARILLO
www.daxofamarillo.com
3208 SE 10th Ave., Amarillo, TX 79104
806.374.8982
GM: Kelsy Allen, 214.934.7244
kelsy@daxauction.com
Every Other Tuesday, 11:00 a.m.
$AVE : $200
IAA AMARILLO*
www.iaai.com
11150 S. FM 1541, Amarillo, TX 79118 806.622.1322, Fax 806.622.2678
GM: Shawn Norris
Monday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Austin
ADESA AUSTIN
www.adesa.com
2108 Ferguson Ln., Austin, TX 78754
512.873.4000, Fax 512.873.4022
GM: Michele Arguijo
Tuesday, 9:00 a.m.
$AVE : $200
ALLIANCE AUTO AUCTION AUSTIN
www.allianceautoauction.com
1550 CR 107, Hutto, TX 78634
737.300.6300
GM: Brad Wilson
Wednesday, 9:45 a.m.
$AVE : $200
AMERICA’S AA AUSTIN / SAN ANTONIO
www.americasautoauction.com
16611 S. IH-35, Buda, TX 78610
512.268.6600, Fax 512.295.6666
GM: Jamie McCollum
Tuesday, 1:30 p.m. / Thursday, 2:00 p.m.
$AVE : $200
IAA 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 : up to $200 Sell Fee
METRO AUTO AUCTION AUSTIN
www.metroautoauction.com
2221 Hwy 21 W., Dale, TX 78616 512.282.7900, Fax 512.282.8165
GM: Brent Rhodes
3rd Saturday, monthly
$AVE : $200
CORPUS CHRISTI AUTO AUCTION
www.corpuschristiautoauction.com
2149 IH-69 Access Road, Corpus Christi, TX 78380 361.767.4100, Fax 361.767.9840
GM: Hunter Dunn
Friday, 10:00 a.m.
$AVE : $200
IAA CORPUS CHRISTI*
www.iaai.com
4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555, Fax 361.887.8880
GM: Patricia Kohlstrand
Wednesday, 9:00 a.m.
$AVE : up to $200 Sell Fee
ADESA DALLAS
www.adesa.com
3501 Lancaster-Hutchins Rd., Hutchins, TX 75141 972.225.6000, Fax 972.284.4799
GM: Eric Jenkins
Thursday, 9:30 a.m.
$AVE : $200
ALLIANCE AUTO AUCTION DALLAS
www.allianceautoauction.com
9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136, Fax 469.828.8225
GM: Robert Kersh
Wednesday, 1:30 p.m.
$AVE : $200
AMERICA’S AA DALLAS
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
DAX of ROCKWALL
www.daxofrockwall.com
1810 E I-30, Rockwall, TX 75087 972.771.9919
GM: Tim Clement, 469.933.7955
tim@daxauction.com
$AVE : $200
IAA DALLAS*
www.iaai.com
204 Mars Rd., Wilmer, TX 75172
972.525.6401, Fax 972.525.6403
GM: Bob Bannister
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: Julissa Reyes
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, 9:30 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: Glenna Bishop
Thursday, 9:30 a.m.
$AVE : $100
METRO AUTO AUCTION DALLAS
www.metroaa.com
1836 Midway Road, Lewisville, TX 75056 972.492.0900, Fax 972.492.0944
GM: Scott Stalder
Tuesday, 9:00 a.m.
$AVE : $200
El Paso
AMERICA’S AUTO AUCTION EL PASO
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
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
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
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
Houston
ADESA HOUSTON
www.adesa.com
4526 N. Sam Houston, Houston, TX 77086
281.580.1800, Fax 281.580.8030
GM: Brian Wetzel
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: Ben Nash
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
President/GM: Tim Bowers
Wednesday, 11:00 a.m.
$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.
$AVE : up to $200 Sell Fee
www.iaai.com
16602 East Hardy Rd., Houston-North, TX 77032
281.443.1300, Fax 281.443.4433
GM: Aracelia Palacios
Thursday, 9:00 a.m.
$AVE : up to $200 Sell Fee
IAA HOUSTON SOUTH*
www.iaai.com
2839 E. FM 1462, Rosharon, TX 77583
281.369.1010, Fax 833.595.8398
GM: Adriana Serrano
Friday, 9:30 a.m.
$AVE : up to $200 Sell Fee
MANHEIM HOUSTON
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
MANHEIM TEXAS HOBBY
www.manheim.com
8215 Kopman Road, Houston, TX 77061 713.649.8233, Fax 713.640.6330
GM: Darren Slack
Thursday, 9:00 a.m.
$AVE : $100
ALLIANCE AUTO AUCTION LONGVIEW
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: Edgar Chavez
Thursday, 9:00 a.m.
$AVE : up to $200 Sell Fee
IAA LUBBOCK*
www.iaai.com
5311 N. CR 2000, Lubbock, TX 79415 806.747.5458, Fax 806.747.5472
GM: Chris Foster
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 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
IAA PERMIAN BASIN*
www.iaai.com
701 W. 81st Street, Odessa, TX 79764
432.550.7277, Fax 432.366.8725
Thursday, 11:00 a.m.
$AVE : up to $200 Sell Fee
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: Paula Booker
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: Christina Thomas
Friday, 10:00 a.m.
$AVE : $200
Wichita Falls
DAX of WICHITA FALLS
www.daxofwichitafalls.com
2206 Sheppard Access Rd., Wichita Falls, TX 76306 940.720.0435
GM: Lisa Shelton, 940.867.3797
lisa@daxauction.com
Every Other Wednesday, 5:00 p.m.
$AVE : $200
Discounts on auctions and much more
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*Coupons range from $75 to $200 each on buy-sell fees.
by Jean Noonan Hudson Cook, LLP
For many years, consumer advocates have complained about dealerships that finalize the sale of a vehicle before the financing is in place. The auto finance industry calls these “spot deliveries,” meaning they place the buyer in a car on the spot. Consumer groups have a more colorful — and pejorative — term, “yo-yo financing,” referring to what can happen if the dealer’s attempts to find a creditor to buy the contract are not successful.
Now six national consumer advocacy organizations have petitioned the Federal Trade Commission for a rulemaking that would ban spot deliveries. In a lengthy petition, they have asked the FTC to adopt a rule that would require each dealer to use contract language
that declares the deal and financing terms to be final when the consumer signs the retail installment contract (RIC). That required language would prevent the dealership from renegotiating the financing terms or unwinding the RIC if the financing fell through. The dealer could be stuck holding the financing contract.
Failing to include the exact contractual language in the RIC or to provide for a spot delivery in another way would be an unfair trade practice and expose the dealership to fines of more than $50,000 per contract if the FTC adopted such a trade regulation rule. These groups allege spot deliveries harm consumers in ways that warrant a ban and severe penalties.
Texas, like many states, has tried to ban spot deliveries. Texas law limits the use of a conditional delivery agreement (CDA), the fancy term for a spot delivery agreement. Once the customer signs the retail installment contract, any CDA is void. That means a dealer cannot have the customer sign both a CDA and a RIC when the customer takes delivery. Once financing comes through, the customer must then return to the dealership to sign the RIC.
Some dealers might attempt to avoid this inconvenience by having the buyer sign both contracts at the same time and putting the RIC in a drawer, without signing it or giving a copy to the customer, until funding is approved. That’s risky. The customer may reasonably think the sale and financing are complete. As we know, most dealers intend to assign the RIC to a bank, finance company, or credit union. This almost always works fine. But every now and then, it doesn’t.
Due to problems the dealer usually can’t predict at the time, the proposed assignee sometimes won’t buy the contract as written. Although the FTC petitioners portray dealers in these situations as scoundrels who intentionally cheat and mistreat consumers for their own benefit, dealers are dismayed when these assignments do not go as planned. It greatly increases the time and resources the dealer must expend to finalize the financing and risks losing the sale.
Sometimes the problem with the proposed assignee is easily fixed, such as obtaining proof of the stated income from the customer. In extreme cases, the dealer cannot
find any creditor to buy the contract, and it must unwind the deal. This is generally where the lawsuits arise.
At this point, the facts and public opinion can turn against the dealer. Here are some things that can make a difficult situation even worse:
The dealer did not have a clear agreement with the consumer that the deal was contingent on the dealer finding a buyer for the contract and what both parties’ rights and obligations would be if the intended creditor did not accept the deal.
The dealer refused to return the consumer’s down payment. The dealer sold the trade-in before the creditor funded the contract. (Yikes!)
The dealer waited an unreasonable time to resolve the issue.
As the examples in the petition demonstrate, even having a good agreement might not prevent a lawsuit. So, what else might a dealer think about to reduce risk?
It should go without saying, but no business should ever lie or misrepresent facts to consumers.
If you need for the deal to be contingent on a contract assignment, explain this to the customer and give them options. Something like, “Hey, I am not going to know for sure today whether a bank will take this contract on the terms we’ve discussed. You have a couple of choices. You can wait to buy the car until I get the final word, which could take a day or more. Or you can sign a conditional delivery agreement and drive it home now, which usually works fine. When funding is approved, we’ll let you know you can come back to sign the financing contract. But if we can’t find a creditor who will accept these terms, we will need to either modify the terms to match the creditor’s requirements, you can get your own financing, or you can cancel the deal — your choice. If you choose to cancel, we’ll return
your downpayment and/or trade-in and cancel the deal.”
Here’s another thing to think about. The cost to the dealership of a very unhappy customer is probably greater than absorbing some loss on the deal. Let’s say the assignee says there was a mistake on the buy rate that reduces your participation payment. It doesn’t matter whose mistake it was. It’s a good idea to accept the lower compensation and move on. You may save yourself a big headache, reputational damage, and perhaps a costly lawsuit.
If you need any more persuasion, read the petitioners’ examples of real cases. These are no-doubt one-sided facts, and some of these instances occurred many years ago, but I think you’ll agree that these are not allegations you want to contend with. The petition does not say how these cases turned out, but I’m guessing that they mostly cost the dealership a bundle to resolve. Even if they went to trial and the dealer won, I’m pretty sure it was a “loss” after considering the litigation expenses.
Texas law and the terms of a rule the petitioners propose to the FTC have a similar effect. But there are a couple of important differences. First, under Texas law, a CDA is not void until both the customer and the dealer sign the RIC. In contrast, under the proposal the FTC is considering, the dealer may not ask for the customer’s signature on the RIC until funding is approved. Second, a violation of an FTC trade regulation rule comes with enormous civil penalties — up to $50,120 for each violation. A violation would include not having the prescribed language in the RIC, which would mean every contract would be the basis for a separate civil penalty.
If the FTC proposes a rule, dealers and their trade associations must be prepared to make the case for the benefits of a conditional delivery. It seems clear that these consumer groups — and possibly the
FTC — do not understand how spot deliveries, properly done, can benefit consumers.
With proper communication and paperwork, a spot delivery can be a great option for both the dealership and the customer. Financially unsophisticated consumers especially benefit from dealer-assisted financing. The dealers work in earnest to obtain financing for these consumers. Consumers benefit from dealers’ access to many different finance sources, including those that may not advertise directly to consumers and those that specialize in qualifying people with limited credit histories or past credit problems. When dealers secure financing for these consumers, it often is their sole means of securing the transportation they require for their employment and other family and household needs.
A strong argument exists that there is no need for an FTC rule. Are abuses with spot deliveries common? The FTC is supposed to adopt trade regulation rules only for bad practices that are prevalent. How often does a spot delivery result in a dealer calling the customer back to unwind the deal or to change the financing terms unfavorably? My clients tell me that it is rare, and they have adopted best practices to ensure the fairness of their dealings with customers in these unfortunate circumstances. The last I checked, the percentage of consumer complaints that
could relate to unfair spot deliveries was a small fraction of one percent. A few anecdotes do not establish prevalence. Also, unfair practices are already illegal; the Commission has the power to police unfair conduct related to spot deliveries without a new rule to ban them. Is a rule with draconian penalties needed?
Although Commission actions are sometimes wrongheaded, the agency is deeply committed to taking positions against conduct that it believes unreasonably harms consumers. Dealers must be ready to tell the other side of the story. The rulemaking record is always full of stories from unhappy consumers. I suspect there would be many more unhappy customers if dealers could not deliver a car the customer is ready to buy because the financing is not yet a done deal.
It is up to dealers to explain how the proposal would hurt consumers, how consumers benefit from spot deliveries, and how good dealers avoid harm to consumers when financing falls through. Dealers must also pull together the facts to support this case. And the time to begin is now!
Time 9:00am - 4:00pm
Cost
$199 Members, $398 Non-members
Lunch (included) will be served during this seminar.
Sponsored by
steps you can take to improve your conversion rates and internet leads process. 2x as many automotive consumers start their research online versus in person at a dealership, visiting an average of 4.2 websites before choosing a store. Customers can spend an average of 14 hours looking at vehicles and websites. So, when they decide to choose you, not only does that make you lucky, but it puts pressure on you to get everything right! How you respond to that lead is critical if you want to sell them a vehicle. A large majority of internet leads go unanswered, which means we are wasting money. The faster you call the customer, the more likely they are to still be available. Do you know how long it takes your store to call their internet leads or what your target response time is? I will teach you! If and when they call the customer, have they handled the call well? We will listen to calls together and discuss the strengths and weaknesses of those calls. Are the text messages and emails professional? Let’s view written communication and judge its effectiveness. This class will be your complete walkthrough of internet leads, from start to fi nish.
• We’ll explore what it looks like for customers to submit leads online, including ease of website-use
• Watch for response times via phone, text & email
• Listen to any sales calls or voicemails we receive
• Learn tips and tricks for call improvement
• Analyze all text messages and emails received
• Discuss followup plans
There are simple steps you can take to improve your conversion rates and you will leave with the tools to implement them. Don’t miss the opportunity to improve your internet lead process!
Monday, October 9, 2023
Houston
Sheraton Houston Brookhollow 300 North Loop West | Houston, TX 77092 713.688.0100
.
Maggie Pugesek Owner/Trainer, C&M Associates
Dealer Question: I just found out that my customer has received and cashed a settlement check from a third party’s liability carrier that covers damages to the vehicle for which I hold a perfected lien. My company was not included as a payee on the check. My customer has spent the money and refuses to pay the balance on the vehicle, which was declared a total loss. Do I have any recourse against the insurance company?
Answer: Yes.
Texas law currently protects a vehicle-lienholder’s interest in liability insurance proceeds attributable to damage to the vehicle. And a new amendment to the law, proposed by TIADA and passed by the Texas Legislature in the 2023 regular session, adds the recovery of attorney’s fees to a successful suit to enforce the terms of the existing law.
First, some background. As the average wholesale cost of used cars spirals upward, and the amount of risk that dealers put on the street increases, the importance of vehicle insurance coverage to lien holders grows. Thus, most secured creditors are requiring property damage insurance as part of their retail installment contracts and are actively monitoring lapses and cancellations and, in some cases, responding to lack of insurance coverage by repossession or forced placement of single-interest coverage. Many Buy-HerePay-Here dealers are moving to collateral protection programs that offer additional control over the terms of and continuity of coverage.
BHPH dealers who a few years ago never seriously enforced the property damage insurance provisions of their contracts are realizing that a few total losses at today’s prices can severely impact the bottom line.
To ensure that the lien-holder’s position is protected on a policy of property damage insurance owned by the debtor, it is necessary for the lien holder to be listed as loss payee. Such a listing gives the lien holder certain contract rights in the policy proceeds, and prevents the insurer from paying the insured for vehicle damage without including the lien holder.
by Michael W. Dunagan TIADA COUNSELBecause of the nature of liability insurance, which covers third parties who are damaged or injured by the insured, there is no corresponding loss-payee provision. One particularly frustrating situation for vehicle lien holders is when a liability claim for property damage to a vehicle is paid directly to the debtor. A common example of this situation: A third party, who has liability coverage, causes an accident that damages lien- holder’s collateral. The liability carrier, ignoring the lien-holder’s status, negotiates a settlement directly with the debtor, and issues a check payable to the debtor without mentioning the lien holder. The lien holder subsequently finds the vehicle, a total wreck, in a pound or body shop. The debtor has by now often purchased another vehicle, probably using the insurance proceeds, and refuses to make further payments to lien holder.
Several years ago, TIADA was able to convince the Texas Legislature that this situation was extremely unfair and needed to be corrected. A bill was passed that placed a lien on liability insurance proceeds for vehicle damage in favor of the holder of a perfected motorvehicle lien (that is, a lien that has been recorded in the state’s title data base). That law, which appears at Chapter 61 of the Texas Property Code, has probably saved vehicle lien holders millions of dollars since its passage.
It is very important to note that to be protected under this law, the lien holder must have filed an application for transfer of title to the buyer reflecting its lien.
The change in the law was motivated by the experience of some lien holders that insurance adjusters were purposely trying to keep the lien holder out of settlement discussions. In some cases, the insurance adjustor would tell the lien holder that he or she had no obligation to talk with the lien holder and no obligation to see that the insurance proceeds were payable to the lien holder.
The typical response a lien holder received from the liability carrier, after finding out that the debtor had been paid and had absconded with the money, was something to the effect that the liability insurance carrier has no obligation to check for recorded liens and no obligation to include the lien holder as a payee. Interestingly, many insurance adjustors are still today
telling lien holders that the insurance company has so obligation to them, despite the clear language of Chapter 61.
As further indication that lien holders were being intentionally excluded from the settlement process, many insurance companies would contract with the debtor to allow the debtor to keep the salvage, deducting the salvage value from the settlement. This way, the insurance company didn’t need to obtain a released title certificate from the lien holder. Of course, the debtor often failed to claim the salvage and it was often sold to satisfy a storage lien.
Now, if a liability carrier goes around the recorded lien holder, it can be sued and forced to pay again. We still encounter cases where debtors are paid directly. When confronted, some insurance adjusters claim no obligation to the lien holder. Some claim that they aren’t obligated to include lien holders as payees on settlement checks when the amount at stake is under a certain level (we’ve found that some insurance carriers impose their own internal minimum amount, under which a lien holder is not contacted or included). But the law contains no such limit. Whether they are ignorant of the law or just bluffing, we don’t know. In almost every such case, however, we’ve been able to force the company to pay the lien holder.
Under the law, the recorded lien holder’s claim extends to the lesser of (a) the fair market value of the vehicle before the damage; (2) the reasonable cost of repair to the vehicle; or (3) the balance owed to the lien holder by the debtor. The liability carrier can satisfy its obligation by making the settlement check jointly payable to the debtor and the lien holder.
If the debtor forges the lien holder’s endorsement on the check and cashes it (unfortunately, not a rare occurrence), most insurance companies claim no further
liability, and deflect responsibility to whomever cashed or deposited the check with the forged endorsement. We’ve seen instances where debtors went to the trouble of having rubber stamps made to stamp lien holders’ names on the endorsement lines on the back of checks. At least one Texas Court of Appeals has ruled, however, that the insurance company can remain liable to the lien holder when it authorizes payment over a forged endorsement.
It is very important to note that to be protected under this law, the lien holder must have filed an application for transfer of title to the buyer reflecting its lien. All third parties are legally on notice of the lien when it is filed, even if the state hasn’t yet processed the new title certificate. On the other hand, the law offers no protection to the lien holder who has not transferred
the title, as an unrecorded lien holder would not fit the definition of “mortgagee.”
If a lien holder becomes aware of an accident in which the liability insurance of a third party will likely be involved, the dealer should contact the liability carrier, give lien information, and request (in writing) that the lien holder be included in the settlement negotiations as they relate to the property damage to the vehicle. The identity of the liability carrier can often be obtained from the accident report filed by the police. In the event that the debtor is paid directly, without inclusion of the lien holder as payee on the check, the lien holder is entitled under the law to bring action against the insurance company for breach of its lien.
The passage of House Bill 4142 by Rep. Ed Thompson adds the following language to Chapter
61: “Sec. 61.006. ATTORNEY’S FEES. The prevailing party in an action to enforce this chapter is entitled to recover reasonable attorney’s fees.” This amendment, which was signed into law by Gov. Greg Abbott, went into effect on September 1, 2023 and applies to causes of actions that arise after that date. This change further enhances the protections vehicle lien holders have enjoyed for many years.
A copy of Chapter 61 can be found on the TIADA website.
Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.
At its meeting on Sunday, July 25, 2023, TIADA took the following actions:
President Ryan Winkelmann called the meeting to order at 3:00 p.m.
Special guests Representatives Barbara Gervin-Hawkins and John Lujan welcomed our attendees and made a few remarks.
With no contested races, Chairman Mark Jones asked for a motion directing the Secretary to submit a single ballot for the following candidates:
President: Eddie Hale; Chairman of the Board: Ryan Winkelmann; President Elect: Vicki Davis; Secretary: Greg Phea; Treasurer: Brad Kalivoda; Vice President Region 1: Cesar Stark; Vice President Region 2: Tyler Simmons; Vice President Region 3: Greg Reine; Vice President Region 4: Lowell Rogers; Vice President Region 5: Chad Lancaster; Vice President Region 6: Cesar Torres; Vice President at Large: Russell Moore; Vice President at Large: Armando Villarreal.
Moved by April Hanson, seconded by Eddie Hale — Passed.
Russell Moore presented the Bylaws Committee Report. There were no changes to the bylaws.
Brad Kalivoda presented the Legislative Committee Report. There were no changes to the Legislative Program.
A motion was made to adjourn the meeting. Moved by Eddie Hale, seconded by Brad Kalivoda —Passed.
Meeting adjourned at 4:00 p.m.
Respectfully submitted, Vicki Davis, 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.
by TIADA Staff
THERE WERE MORE THAN 300 DEALERS IN ATTENDANCE FOR THE THIRD CONSECUTIVE YEAR., MAKING THIS YEAR’S CONFERENCE & EXPO ONE OF THE MOST SUCCESSFUL AND MEMORABLE EVENTS IN THE HISTORY OF THE ASSOCIATION
TIADA members traveled to San Antonio in July to attend the 2023 Conference & Expo. It was one of the largest most successful and memorable events in the association’s history, with over 300 dealers in attendance for the third year in a row. Many of these dealers were first-time attendees, who enjoyed nearly 30 hours of educational breakout sessions presented by leaders within the industry. The revamped dealer-driven roundtables were also a huge success, with several dealers commenting how much they enjoyed discussing issues affecting dealerships of similar size and scope.
The variety of these discussions covered many important topics within the industry, including BHPH operations, dealership management, special fi nance and retail, technology, marketing, and compliance. Dealers also attend ed an insightful opening keynote address by sales and marketing executive Jeff Bloomfield. On Tuesday, Cox Automotive’s Chief Economist, Jonathan Smoke gave an important keynote address to help dealers stay current on the various ways the national and state economies are affecting the independent automobile dealer space now and in the future.
These presentations, sessions, and events were highlighted by an atmosphere of excitement and camaraderie, as dealers face some serious challenges in acquiring inventory, adapting to legislative changes, and other ar eas. Attendees were enthusiastic to participate in one of the largest-ever TIADA Conferences in association history. In addition to the edu cational sessions and roundtable discussions, dealers attended a jampacked expo hall, which featured over 120 vendors.
Don’t forget to mark your calendars for July 21–23, 2024. We will once again be head ing to the JW Marriott Hill Country Resort in San Antonio, and we can’t wait to see you all again!
TIADA announced the winners of several awards at the final event during the 2023 Conference & Expo, which took place from July 23–25 at the JW Marriott Hill Country Resort & Spa in San Antonio. 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 Noah Bird, who was given the Marvin Norwood Scholarship for his promise as a student and leader in the community. Juan Sabillón, who presented the award, also announced that TIADA was able to award an additional scholarship to Jasmine Escobar, thanks to a generous donation from Steve and Susan Babinksy’s Triple J Family Foundation.
Texas State Senator Charles Perry was awarded the organization’s Independent Award, which recognizes individuals outside of the industry. Senator Perry has long supported keeping Texas one of the most business-friendly states in the country and was instrumental in defeating the so-called crusher bill in this year’s legislative session.
Mark Brown next announced the second-ever TIADA Lifetime Achievement Award, which was given to former TIADA Executive Director Jeff Martin for his 16-plus-year tenure with the association.
Armando Villarreal, of McAllen Auto Sales, was given the 2023 Texas Quality Dealer Award. 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.
Congratulations to all this year’s winners!
Tyler Simmons of
Cars.
Simmons urges his fellow dealers to attend the NIADA Buy-Here, Pay-Here New Dealer Academy Sept. 27-28 in Irving, Texas.
NIADA Senior 20 Group Moderators
Ben Goodman and Bill Elizondo will use their combined more than 50 years of experience in the subprime and buy-here, pay-here markets to teach you effective strategies in marketing, sales, structuring deals, underwriting, collections and asset management.
The course is essential for new BHPH dealers or owners, high-potential BHPH dealership staff, or entrepreneurs or dealers looking to enter the BHPH space to attend this comprehensive class. The class is $449 for NIADA or 20 Group members and $795 for non-members.
During the class you will receive:
• a training workbook
• a template for designing an internal policies and procedures manual
• operational forms for critical activities
• a cashflow and profitability analysis
“You don’t know what you don’t know.”
Abilene Used
“If there’s one thing that you can do to increase the probability of success as a buy-here, paydealer, that is to educate yourself,” Simmons said. “And not just basic education. You have to make sure the people providing that education know the ins and outs of the industry.”In partnership with Sponsored by
TIADA designed and implemented some important on-demand courses to give dealers quality educational programs they can access throughout the year. These programs are essential for dealers to stay compliant. They offer flexibility, so you can complete them according to your schedule. These courses are designed for any dealers with questions related to various regulations that affect their businesses.
In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of self-help repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.
$ 98 for two 1-hour videos
Want to avoid having your title transfer paperwork rejected at the tax office? This online course is designed to walk you through the title transfer process and is best suited for people new to transferring titles or those who want to brush up on the basics. This course has been reviewed for accuracy by the Tax Assessor-Collectors Association of Texas.
$ 48 for the course
* Also available in Spanish
The buy-here, pay-here business is all about numbers — especially when times are tight.
So with the economy wavering and uncertainty all around, a panel of successful BHPH dealers talked about numbers in a session at this year’s NIADA Convention and Expo in Las Vegas.
“Some of these numbers tell you where you are, some will tell you where you’ve been, and some will definitely tell you where you’re going,” said Eddie Hale of Neighborhood Autos in North Texas. “The way I watch our business is the trends — where we’ve been and where we’re going. We can figure out real quick where we’re at. But we’re looking at where are we going and how are we going to get there and still be able to pay the bills.”
Among those numbers, Hale said, is adding up his expenses, including payroll, and figuring out his total costs per car. On the collections side, a key is what it costs to collect on an average account.
“Those are numbers that will give you a direct reflection on why you’re profitable or not profitable,” he said. “And if you’re not profitable, or not as profitable as you want to be, how you can fix that.”
Looking at the trends in recent years, Hale scaled his operation back from eight locations to three, going from 6,000 accounts to 4,000 and shrinking his inventory.
“We moved backward on purpose,” he said. “Being around a long time you experience some of these resets in the economy or in the industry. And that’s the kind of thing we felt we were seeing — trends that were bringing us toward a new reset. And being conservative, we decided to de-leverage, to remove ourselves from debt and prepare for the next growth.
“Because with every fall, there’s always opportunity. So we wanted to prepare for the next opportunity.”
The numbers have been troubling for Chad Randash, owner of Randash Automotive, with locations in Billings and Bozeman, Montana.
After riding high in the early post-COVID days, things have changed.
“All of a sudden I felt like I got smacked with a twoby-four these past 18 months,” he said. “I like control. I don’t need to fly the plane, but I’ve got to make sure that the guy flying it is in control. I feel like lately, I’ve been out of control.”
The employees Randash had been paying $21 per hour were now demanding $28. Cars he once acquired for $7,000 now cost $9,000. And passing the costs on to his customers would drive their payments to the brink of their ability to pay.
“We’re pushing that from $87 to $97 to $117, and this could be very dangerous,” he said. “We may lose 25% of our portfolio. It’s a reality. And it’s a conversation I’ve got to have with the bank, number one, but I’ve also got to understand where we’re at if I lose 25%. What happens then? If the interest rates keep on rising, at some point we have to go down in car value.”
“This is a pivotal point. We’re hurting, some of us, but we’ve got to battle through it. We’ve got to be more present in our business than we ever have before. We’ve got to look at every line item. And that’s just how it is. … It’s a moving machine, and you’ve got to hang on for the ride.”
Despite all the challenges, the dealers on the panel agreed that dealers who control their expenses and weather the storm, will come out strong on the other side.
“It’s a very interesting time,” said veteran BHPH dealer Jeff Baker of Car City in Michigan. “Fortunately, we started to deleverage five years ago, so we’ve got a lot of dry powder.
“I’m kind of half-hoping there is a recession. Because I’m pretty sure if there is one, the back side of it is going to have some beautiful opportunities. And I think I’m sitting in a great position to take advantage of that.”
“The reason we went backward was to go forward,” Hale added. “There are some silver linings out there.”
And Randash said he’s going all-in to find them.
“We’ve got to get re-engaged in this,” he said. “You have a decision to make. At some point, if you’re trying to get somewhere, you’re either going to play this conservatively or you’re going to say there’s a tremendous opportunity and I’m going to push. Because the reality is, I’m scared. I’ve got 56 employees, thousands of accounts and I’ve got a young family. So do you play it safe or do you look at this hard and ask, ‘Is there an opportunity here?’”
This article first appeared on Auto Remarketing.
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We all know that organic traffic converts into leads that end up in sales at higher percentages. It’s more relevant than ever, and it’s what has been missing all along.
Let me get right to it; as an industry, we have overlooked one of the greatest assets we have ever had our hands on and have done a very poor job of managing it. That asset is ALL of the FREE website traffic dealership’s websites currently get and what can be easily improved.
Why we missed it is pretty easy too. Google Analytics (GA), as we know it, is compartmentalized and fairly linear. We look at organic traffic, direct hits, referrals, and Google Business Profiles, all separately. Not many dealerships (that I have met) truly lump these all together into the “asset” class of ALL FREE traffic. Once dealerships do this, it becomes much easier to see it as its own “class” of traffic and be able to look deeper.
The next thing many dealerships have missed for almost a decade (not all, but a high enough percentage for me to make a point here) is the true conversion rate of
that traffic. The traffic’s conversion rates are also an asset class that needs to be managed and optimized.
Let me put it all together in a way that makes the argument why dealerships should all pay more attention to these assets. (Have I used the word “asset” enough to get you thinking?) The opposite of “free” is “paid.” I would guess that many dealerships jumped to paid traffic sources, including Google Ads, paid social media, third-party listing sites, lead generation companies, etc., before even exhausting (or even trying) all of the optimization opportunities to maximize their free traffic results.
I am not arguing that “paid” doesn’t have its place like many SEO-only companies may advise. It has its place and, in many instances, has excellent value and return on investment (ROI). I am a huge fan of a well-run paid campaign with an eye on ROI. Recently, we saw 680 leads generated at $14 per lead with a $9,500 optimized campaign. If I were a dealership, I would spend that $9,500 every day of the week. That campaign helped
the dealership break records in just about every category.
I’d ask dealerships to take a look at their conversion rates first. If website analytics aren’t set up to track true “conversational conversions,” then the first step is to ensure that they are. You have to measure properly to manage it properly.
Many dealerships reading this already have that handled, but again, if a dealership does not have its website tagged correctly, that’s the first thing it should do. The next thing dealerships need to know is the conversion rates on all free traffic sources. What percentage of the dealership’s overall traffic turns into a lead — and not just any lead — but one that can be tracked and is a “conversational conversion,” a phone call, a form lead (email), a chat lead (not initiation only), and/ or a text conversation.
If that number is below 3.5% to –4.5%, then the dealership has some
work to do to maximize the value of that free traffic. As an example, a properly optimized website getting 10,000 free visits per month — that is set up to convert and generate true conversions (leads) at 4.5% or above from all of the free traffic sources — will yield 250 more leads ( FOR FREE ) than a site converting at 2 percent! So, again, that is 250 more leads!
Sounds easy, sounds obvious, and maybe even trivial. If you’re thinking: Yeah, duh, Troy, we get it; that’s just simple math and makes for a great article, I’d probably agree. However, I would ask any dealership to track these metrics and let me know the results because it will be very eye-opening once a dealership completes a basic audit.
By crunching all these numbers faster, dealerships can get a sense of all the free traffic coming to their website at all conversion levels. No matter how much dealerships are willing to invest in paid traffic, converting free traffic at the higher end of the benchmarks (at a
minimum) is the desired goal. So, doing this is a great place to start.
Those 250 more leads should yield around 20–25 more sales. When dealerships do use paid solutions to grow their traffic even more, they should see a better ROI from those paid campaigns if their website is set up properly to convert ALL traffic into leads and sales.
Last, I’ll tell you another little trick dealerships can use to decipher the quality of their website traffic. If a dealership’s paid traffic is not converting at the “free traffic” levels (or even higher), then the dealership has a quality problem. This knowledge will allow dealerships to optimize their campaigns, audiences, and creative content to convert at the benchmark that dealerships should see from their free traffic.
In summary, dealerships should pay (more) attention to all their free traffic. Dealerships should pay (more) attention to their overall conversion rates and treat all FREE traffic like the asset it is. By doing so, dealerships will be able to do one of two things with a properly set up website and free traffic strategy:
1. Sell the same amount of cars with less ad spend.
2. Scale easier and sell more cars for the same ad spend.
Then, there is a third. Dealerships can scale their business easier to levels they didn’t think possible. With these strategies in place, dealerships can trust the conversions from their website more, thus spending with more confidence to scale.
That, in my book, is a ton of fun and a whole lot less stressful.
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 2023 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
This is going to start as grim. It gets better.
Aftermath®, (which is the name of an actual ServiceMaster company), pioneered the field of performing crime scene services and trauma clean up. They coined this terminology.
Their services include, and I quote, “unintended death remediation,” which is a term I had not heard before. I looked it up: it’s a death in which the body is not found for days, weeks, or even months.
Aftermath services includes homicide and suicide cleanup, hoarding cleanup, and specialty biohazard services, like tear gas cleanup. Before thirty (30)
days ago, I had no knowledge of any of this.
They site a five (5) step “Aftermath® Remediation Process,” which includes the assessment, the protocol to control the affected area, the removal, deodorizing, and verification to ensure the cleanliness.1
It’s awful this kind of service exists, right?
Now let’s bring it back to our business, the automobile business.
When we don’t handle the problems in front of us, bad things happen. You can stop problems from developing though. These are also called “preventative measures.” What
Businesses fail due to a lack of discipline, governance, and compliance with company policies and government rules and regulations. Don’t create hazards by ignoring the rules, laws, and regulations.
procedures can you put in place or what policies can you implement in order to stop problems before they happen?
If you hear or see a problem in the making, bring it to someone’s attention in your chain of command. If you don’t know who that person is, then please ask.
It’s much less expensive to solve a problem “now,” versus assuming someone else will get around to it or fix it. They won’t. Own it and fix it. Problems are like rotten fish; they
smell worse and worse each day. Mitigative measures are defined as those techniques which you use to conclude a problem after it has festered. It’s well known to be more expensive than fixing the issue early upon discovery.
The more time you spend personally living and acting with a preventative problem paradigm, the less time will you be required to be reactive and, dragged into the time sucking muck of mitigative measures. You may have heard an ounce
of prevention is worth a pound of cure and it’s true.
If we look at Aftermath’s five (5) step process and use it as a guide, it can teach us a lot about our business:
1 Assess the problem in front of you.
2 Control the affected areas of the business by “securing” it, or stopping the problem before it becomes larger or seeps further.
3 Remove the affected area by solving the problem.
4 Deodorize the problem by making sure there are no lingering effects. Here, make sure you leave the situation better than when you found it. Perhaps you should define a new company policy to ensure this issue doesn’t arise again?
5 Revisit the “crime scene” later to verify the issue has been squelched and will not pop-up again.
The analogy here is dark and gruesome. Why use such negativity?
Businesses fail due to a lack of discipline, governance, and compliance with company policies and government rules and regulations. Don’t create hazards by ignoring the rules, laws, and regulations.
The Federal Trade Commission (FTC)zz routinely sends out press releases when they impose fines against businesses. At the bottom of each one, this language is prominent: “NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or about to violate the law and it appears to the Commission that a proceeding is in the public interest.”
So, these regulators, can take action if they believe your company is “about to violate the law.” Translated, this means your
company is guilty, as long as the FTC believes your company is doing something wrong. Then you would have to prove “you are innocent.”
There are two main reasons to solve problems upon discovery:
It’s less expensive.
It will help keep your company clear of bigger problems and issues down the road.
Let’s concentrate on preventing concerns instead of trying to fix issues as they arise. This is the basis of a robust governance, risk, and compliance (GRC) process.
Our business is the people business, so most problems begin with unhappy customers. Left unchecked and unmonitored, those unsatisfied customers turn into legal problems or problems where regulators get involved. Then it becomes ugly and expensive, as they inevitably turn into aftermath problems.
1From https://www.aftermath.com/services/biohazard-cleanup/
•40 Years Serving Texas Dealers
• 4.9 Star Avg. Customer Rating
W h y C h o o s e U s ? M
. C O M
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
(dates announced at www.txiada.org)
HOUSTON
Robert
Mi Pueblo BRP
Meeting – 2nd Tuesday
(Monthly)
SAN ANTONIO
Jose Engler
Irving Motors Corp
(dates announced at
The 2023 TIADA & Expo was my first conference in my tenure as TIADA’s Executive Director. It was an incredible experience to meet many new members, their families and industry partners in the relaxing resort environment as well as attend some educational classes and visit with many elected and regulatory officials. This year’s event brought together a tremendous number of enthusiastic industry professionals there to learn, network, and to discuss and provide industry knowledge.
The 2023 TIADA & Expo was a resounding success. The event saw an impressive turnout of 166 dealerships and 304 dealer principals, as well as over 120 enthusiastic vendors, indicating the unwavering strength and unity of the Texas independent automobile dealer community. Additionally, 131 first-timers joined us, highlighting the growing interest in the association and the industry as a whole.
The conference kicked off with an excellent presentation by Jeff Bloomfield, a renowned expert in business development and communication strategies. His captivating speech on the neuroscience of effective leadership resonated deeply with the audience, setting the tone for the insightful sessions that followed.
One of the most anticipated sessions was the economic outlook presentation by Cox Automotive’s Chief Economist, Jonathan Smoke. His report painted an optimistic picture for Texas, revealing positive indicators for the automotive market. Smoke projected promising trends that could fuel growth and stability in the state’s automotive industry in the coming years.
The political presence at the 2023 TIADA & Expo was overwhelming, showcasing the profound impact of our industry on the legislative landscape. We were honored to host several influential legislators who attended the event and actively participated in discussions concerning the independent automobile industry’s challenges and future prospects.
by John Frullo TIADA EXECUTIVE DIRECTOR
Among the esteemed attendees were Senators Charles Perry, Jose Menendez, and Carol Alvarado and Representatives Ryan Guillen, Trent Ashby, Barbara Gervin-Hawkins, and John Lujan. Their willingness to engage with the attendees throughout our convention demonstrated their commitment to understanding the needs and concerns of our industry, and we all appreciated their time and interest.
As the 2023 TIADA & Expo drew to a close, there was an overwhelming sense of gratitude for the robust community of dealers, professionals, and legislators who came together to make the event a tremendous success. With heavy hearts, we also honored the legacy of Mario Martinez, who had been an integral part of TIADA for many years.
TIADA paid tribute to his invaluable service to TIADA and its members. Though we bade farewell to an industry stalwart, his spirit of dedication and passion will continue to inspire us to strive for excellence in the years ahead.
On behalf of everyone at the association, I want to thank all that attended this year and if you did not get to attend this year’s event, fear not, we will be returning to the JW Marriott in San Antonio in July, 2024.
His contributions were pivotal in shaping the Texas independent automobile industry, and his absence was deeply felt throughout the event.
