R O C K - S O L I D C O V E R A G E h “We sell the service contract to cover the customer, but it’s also a tool to make a profit. The most important thing in the world is our customer. I don’t have to worry about my customers when they leave the lot, because Preferred Warranties is taking care of them. It gives me peace of mind, while making a profit.” - Sid Phillips, Number One Auto Sales, Buckhannon, WV VD D S U N BO cts” ce Contra Warranties that drive sales. Between the peace-of-mind, strong coverage and rock-solid reputation for outstanding customer service, Preferred Warranties are so good they actually help our dealers sell cars. But that’s not all. Many dealers are also seeing how easy it is to make selling Preferred Warranties a profit center of its own. There IS a difference in warranty companies. Call 800.548.1121 and mention promotion code: TIADA A to any of our customer service representatives. See for yourself how Preferred Warranties can add to your y r bottom line. ervi “Selling S by NIADA.TV produced en you meet with a nt keep wh Yours to I Sales Consulta PW www.warrantys.com 200 PINEBROOK PLACE • P.O. BOX 278 • ORWIGSBURG, PA 17961 email : [email protected] Preferred Warranties Inc., a Pennsylvania Corporation, is majority owned by Harbert Private Equity Fund II, LLC, a Delaware Limited Liability Company with $180 million in committed capital. Volume VIII / Issue 7 / Ju l y 2 0 0 8 TIADA 2008 Executive Committee President Don Fincher/Fincher Motor Company 8526 North Freeway/Houston 77037 281.931.1432 • Fax 281.931.3826 texasDealer President Elect Blake Ingram/Auto City 6575 C.F. Hawn Freeway/Dallas 75217 214.271.4807 • Fax 214.391.3483 Chairman of the Board Bill Dobbins/L & B Motor Company 2912 North Main Street/Fort Worth 76106 817.624.1187 • Fax 817.624.1430 Secretary Byron Riley/Uncle Buddy’s Used Cars, Inc. 2526 Washington Avenue/Houston 77007 713.869.3405 • Fax 713.869.7523 Treasurer Chris Knox/Auto Co. of Dallas, L.L.C. 9809 C. F. Hawn Freeway/Dallas 75217 972.557.2444 • Fax 972.557.7949 contents 6 Officers’ Message by Byron Riley, Secretary 8 New Members of TIADA 9 Guest Feature - Relating, Not Translating: Marketing Vehicles to U.S. Latinos by Kelly McDonald 10 News & Notes 11 Upcoming Events 12 Guest Feature - Managing & Understanding the “Y” World Vice Presidents: WEST TEXAS (Region 1) James Hobson/H-Town Motors 3714 Dyer Street/El Paso 79930 915.564.9797 • Fax 915.564.9796 FORT WORTH (Region 2) Michael Thomasson/Mike Carlson Motor Co. 264 Exchange/Burleson 76028 817.529.7681 • Fax 817.529.7690 DALLAS (Region 3) Phil Lathrop/VP Auto Sales, Inc. 2921 South Garland Ave./Garland 75041 972.864.1300 • Fax 972.278.8034 HOUSTON (Region 4) John Freeman/Galena Park Motors 1700 Clinton Drive/Galena Park 74322 713.675.0559 • Fax 713.675.9157 CENTRAL TEXAS (Region 5) Bill Mokry/Capitol Car Credit 105 West Riverside Dr. #215/Austin 78704 512.442.5626 • Fax 512.442.6107 SOUTH TEXAS (Region 6) Baldomero Trevino/Mr. B Motor Company PO Box 5627/Brownsville 78521 956.541.3542 • Fax 956.546.6735 Vice Presidents At Large: Scott Allen/Auto Land 5925 East Belknap/Haltom City 76117 817.834.4222 • Fax 817.838.7925 Gary Sayre/Gary’s Used Cars, Inc. 5515 Singleton Blvd./Dallas 75212 214.630.2127 • Fax 214.630.5935 Executive Director Jeff Martin PO Box 127/Round Rock 78680 Office Hours M-F 8:30am - 4:30pm 800.442.5944 • Fax 512.244.6218 [email protected] Texas Dealer Editor Danny Langfield 800.442.5944 [email protected] by Bob Losyk 14 Auto Auction Directory 16 Legal Corner by Michael W. Dunagan 18 Fines & Violations 20 2008 INDEPAC Contributors 25 TIADA Membership Application 26 Behind the Wheel by Jeff Martin, Executive Director 29 Chapter News - Spotlight on San Antonio by Fred Yamaguchi 30 - 34 TIADA 2008 Summer Conference & Golf Tournament Change of address: To change your address for subscription and/or for other TIADA products, call the TIADA state office at 800.442-5944, 512.244-6060 or Fax 512.244-6218. E-mail: [email protected]. New Membership/Subscriptions: If you are a member of TIADA, you may receive this magazine free of charge. Membership is for one year from the date dues are received. Back issues are available for $20 each subject to availability. Send a check or money order, along with your name and mailing address to TEXAS DEALER, Attn: Back Issues, P.O. Box 127, Round Rock, TX 78680-0127. Sorry, no billing. 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. officers’ message Expansion...A Few Things to Consider... Membership Has its Privileges by Byron Riley TIADA Secretary I t has been over 20 years since we have operated a second location. We recently decided to expand as a way to grow our business. Before expanding there are few things to consider. This is only a partial list but hopefully it can provide some assistance along the way. First, ask yourself the question, why do I really want to expand? This requires some honesty with yourself. We had to expand to maintain and position ourselves for growth; our existing area is rapidly changing to a high rent district and our sales were rapidly decreasing. Expansion for the sake of expansion is not good enough. However, you need to position yourself for a growth rate much faster than inflation. Remember, gas this time last year was $3.00 a gallon and I am sure by the time you read this article it will be over $4.00 per gallon. Two things to consider prior to expanding: 1) Ask yourself, have we maximized our current location? If the answer is no, I strongly recommend getting your first location running on all cylinders (staffing, training, capital, sales, etc...). Maybe you can increase sales by twenty percent at your existing location. This could have a much higher return. Give a true assessment of where you are as an organization (poor performance at one location will get exposed even more when you go to another location). 2) Seek advice from someone more successful than you. This requires some humbleness and humility on your part. Do not be afraid to recognize your shortcomings. Let them give you invaluable advice and help guide you to avoid mistakes and pitfalls. If you are an active member of TIADA this is easy. Membership has its privileges! Thanks to all the deal6 er members who have helped me in words and deeds. Next, you will need a plan addressing the big three – Capital, Systems, and People. How much capital do you have available versus how much do you need? A good business plan will assist with estimated working capital requirements and projected cash flow. What type of facility do you want? Location of facility will have an impact on cost. How many units are you planning to sell monthly, cost of these sales, advertising, commissions, overhead, payroll, and make ready just to name a few. Details and discipline are definitely required for this to be successful. Once again, being a member of TIADA and having access to some of the most successful dealers in the state and quality training can definitely give you an inside advantage to proper planning and preparation. Multiple locations require a uniform approach to business. This creates consistency amongst all locations. This is definitely one area we are working on for improvement. This requires continuing communication, training, and documentation. A simplified process helps to eliminate inconsistent behavior, hold people accountable, and is a good tool for measuring results. Another part of your systems to consider is whether or not you centralize or decentralize processes (i.e. payments, application processing, make ready). Once again having access to successful people can really make a difference - TIADA membership has its privileges!! Another component of having a successful business is hiring and retaining trusted and loyal employees. I once heard a gentleman say, “You can take a good business and put bad people in it and (cont’d on pg. 23) TIADA DEALER / July 2008 Please Welcome Our Newest TIADA Members! Cooters Cars 8 Ora Regan 601 N. Texas Avenue Bryan TX 77803 TX 78634 Hutto Autoplex Jerry Richie 106 Hwy 79 West Hutto Kar King Auto Sales Joe Sides 2514 Valley View Farmers Branch TX 75234 B & L Auto Billy Lavender 4595 Fannett Road Beaumont TX 77705 Rafael Motors Inc. Rafael Duron 512 East Davis Conroe TX 77301 Ryan O'Neal Autos Ryan O'Neal 4237 South Georgia Amarillo TX 79110 Rio Grande Valley Auto Brokers Bill E. Overstreet 1020 Pecan Blvd. McAllen TX 78501 Martinez Used Cars Judith Martinez 1697 S. Frontage Rd. Brownsville TX 78520 Rio Grande Valley Motors Daniel Ramirez 2901 West Expressway 83 McAllen TX 78503 Carter Auto, Inc. David Carter 1913 North Main Liberty TX 77575 J & H Auto Sales Jorge Hernandez, Jr. 1375 S. Expressway Brownsville TX 78521 Landa Motor Company Buck Hux New Braunfels TX 78130 Shabana Motors Inc. Aftab Rahmtulla 9811 S.W. Freeway Houston TX 77074 Pioneer Used Cars Richard Adams P.O. Box 65210 Lubbock TX 79464 Professional Auto Care Claudia Serratos 9916 Honeywell Houston TX 77074 Custom Finance Services David 1350 Beverly Rd. #115-180 McLean VA 22101 MacLaury 385 Landa St. Basic Auto Group, Inc. Antonio Swad 10999 Petal Street Ste 101-D Dallas TX 75238 Expo Motorcars Mark Thomas 11655 North Freeway Houston TX 77060 Adventure Used Cars of Lubbock Al Buchanan 8701 19th Street Lubbock TX 79407 Earth MotorCars Brad Hansing 2245 Keller Way Carrollton TX 75006 TIADA DEALER / July 2008 Relating, Not Translating The Future of Marketing Vehicles to U.S. Latinos by Kelly McDonald President, McDonald Marketing {Editor’s Note: Kelly McDonald will be the keynote speaker at the TIADA State Convention & Exhibit Hall November 7-9, 2008 in The Woodlands, Texas.} Y ou’ve read the statistics, you’ve seen the Census data - Latinos are the largest and fastest-growing ethnic group in the U.S. The population is large, getting larger, and for marketers and businesses, it means a huge opportunity to gain incremental business. The Numbers are Huge The 2008 U.S. Hispanic Report reveals that there are 47.1 million Latinos residing in the United States, twenty percent of whom reside in Texas. Just how many is 47.1 million? Consider this: there are more Latinos living in the United States than there are Canadians in Canada. Texas Latinos number just over nine million. That’s right, nine million. In fact, five of the top 15 Latino markets in the U.S. are in Texas: Houston, Dallas/Ft. Worth, San Antonio, McAllen/Brownsville and El Paso. The Latino population is exploding everywhere, but here in Texas it grew a whopping 46% in just the last eight years. And this shift in ethnic composition is having a profound effect on our culture and our society. The “Latinization of America” The influence of this exploding July 2008 / TIADA DEALER population is seen everywhere: our food, our music and entertainment, our sports, our media and our politics. For example, look carefully at your grocery store; new products that cater to Latino tastes now fill shelves of super- ways, too: Mattel makes Quinceañera Barbie (a quinceaños is an elaborate celebration of a girl’s 15th birthday, the equivalent of a “debut into society”). Mattel also makes “Spanish Teacher Barbie” and Capitán Benavides (GI Joe). The Wall Street Journal reports that the top three surnames for new homes purchased in California last year were Hernandez, Fernandez and Gonzalez. Nickelodeon’s bilingual “Dora the Explorer is the #1 preschool show on TV, and the top name for baby boys born in Texas (cont’d on pg. 24) The Latino population is exploding everywhere, but here in Texas it grew a whopping 46% in just the last eight years. markets everywhere. Tortillas now outsell bagels 2:1! Salsa is now the number one selling condiment in this country. Lays makes a limón (lime) potato chip. Dulce de Leche (caramel) is everywhere: Betty Crocker introduced Dulce de Leche frosting, it’s Häagen Daz’s number-four selling flavor of ice cream, and even M&M’s has tested Dulce de Leche candies in select markets. And it’s not just new flavors: American brand icons are even creating new products to capture Latino customers: in addition to pudding and gelatin, Jell-O now makes instant JellO Flan. The Girl Scouts created a new Mexican-style cookie called Olé Olé. The influence is seen in other 2008 TIADA Convention keynote speaker Kelly McDonald 9 news & notes Happenings in the Industry... compiled by Texas Dealer staff GDNAuto Offers TIADA Member Discount MVD Encourages Dealers to Act on E-Tags Fowler at 800.442.5944 to reserve seating, or register for the full Summer Conference (see registration form on pg. 33). T C AuctionACCESS Refunds exas automobile dealerships that finance their customers’ automobile purchases have a new way to package and sell their loan portfolios and free up capital using Global Debt Network Automotive (GDNAuto), a secure online auto loan portfolio auction platform that debuted in May 2008. Dealerships that join GDNAuto employ an Internet-based, dashboard-style control panel to list, package and price the loans they want to sell, offer those loans to pre-screened investors, entertain bids on the loan package, and select a winning bid. For its services, GDNAuto receives a per-transaction fee. The company is now enrolling select buyers and sellers for early membership in the GDNAuto program – waiving the membership fee, capping the maximum perloan sold fee at $15 for dealers, and offering a 10 percent discount on first-time transactions to dealers who belong to TIADA. GDNAuto investors are prescreened to ensure that only qualified parties have access to the GDNAuto platform and loan information. Access is login and password protected, and transaction data are maintained within a secure document vault and stored on a secure dedicated server. For more information, please contact Vanessa Towning at 949.784.9566. 10 arol Kent, Enforcement Director for the Motor Vehicle Division, is urging all dealers who have not yet registered their email address with MVD to act quickly. Reports from MVD’s Dealer Training Seminars indicate that E-Tags could launch by September 1, 2008 (see the June 2008 issue of the Dealer for complete E-Tags info). Dealers should have received a letter with a control number to register their email addresses in order to receive a username and password which will allow access to the new E-Tag database. If you have not received this letter, email the MVD help desk at MVD_Contact @dot.state.tx.us. In the subject line insert, “No Control Number Received.” Include your business name and license number in the email. Dealers may also call MVD Licensing at 800.687.7846. Special E-Tag Session for Auctions T he TIADA Summer Conference will offer a special training session hosted by MVD Enforcement Director Carol Kent specifically for auctions. The session will be held July 28 from 1:00 – 2:30p.m. Interested parties must contact Cristina A uctionACCESS rebates will be available for dealers who have renewed as Manheim, ADESA and participating independent auctions have decided to offer the membership at their inlane locations and online at no fee to dealers. AuctionACCESS earlier began charging dealers to use its clearing and monitoring system for sales and purchases at more than 185 auction locations in North America. Michael Linn, executive vice president and CEO of the National Independent Automobile Dealers Association, praised AuctionACCESS and the wholesale auctions’ decision to cover the membership fees for dealers even though it negated an agreement between NIADA and the company. “All dealers should take advantage of the benefits that AuctionACCESS offers,” said Linn. AuctionACCESS will be handling the rebates, not the auctions, although forms and necessary materials will be available at each participating wholesale auction site. Rebate forms and additional information can also be obtained online at www.auctionaccess.com. TIADA DEALER / July 2008 Upcoming Events July 27 September 17 Golf Tournament Horseshoe Bay Resort call TIADA @ 800.442.5944 or visit www.txiada.com (see reg. form pg.34) BHPH Collections Training 8a.m-12p.m July 28-29 Summer Conference Horseshoe Bay Resort 200 Hi Circle North Horseshoe Bay, TX 78657 800.452.5330 (see reg. form pg.33) NOTICE: TheTIADA Board of Directors will meet Tuesday, July 29, 2008 at the Summer Conference at the Horseshoe Bay Marriott in Horseshoe Bay, Texas. July 2008 / TIADA DEALER Repossessions Seminar 1p.m-5p.m Ramada - Tyler 3310 Troup Highway SE Loop 323 & Hwy 110 North Tyler, TX, 75701 903.593.3600 November 7-9 State Convention & Exhibit Hall The Woodlands Waterway Marriott 1601 Lake Robins Drive The Woodlands, TX 77380 281.367.9797 11 guest feature Managing & Understanding the “Y” World by Bob Losyk President & CEO, Innovative Training Solutions T hey are blunt, tech savvy, and dress and act differently than their older Generation X siblings. This generation, also known as the Millennial Generation, has grown up in times of prosperity with a global economy. With their amazing ability to multi-task, they can consume more media in a single day than their boomer parents absorb in a week. Generation Y grew up with high parental involvement, living very fast-paced, structured lives. Soccer Moms or Dads went to bat for them whether it was in school or after school, often interfering with teachers, counselors, and coaches. Now their parents often try to interfere in the workplace (known as helicopter parents). Always digitally connected, some demographers estimated they have sent and received over a quarter of a million e-mails and instant messages by the time they enter the workplace. Since most Millennials always had instant access to information, and their parents filled their houses with lots of high tech gadgets and toys, they are used to instant gratification. They bring an attitude of not wanting to pay their dues. They see no reason they can’t get very large pay raises and promotions after short periods on the job. Gen Y has their own personal goals at work, and 12 want to control their own destiny. They want their workplace to accommodate their interests and lifestyles. They love to work on projects that they are passionate about, getting bored quickly with the same assignment or menial tasks.. In spite of their quirks, today’s young workforce brings an entrepreneurial spirit to the workplace, wanting freedom and empowerment on the job. They question and challenge the status quo, want lots of meaningful responsibility, and demand workplace satisfaction. As a result, they are often perfect for today’s fast-paced, information overloaded world, with its digital and global economy. Because they are different, their Gen X and Boomer managers are often dazed, confused, and frustrated in managing them. The key is to remember that different doesn’t always means bad, and that understanding what shaped them and keeping an open mind are helpful to increasing your success in managing them. Think quid pro quo with Gen Y, by letting them know they can do more of the work they want and love if they help you and your firm achieve its goals. Helping them create choices and achieving what they are passionate about will enable them to be more productive and contribute more to your profitability. Continuing education and professional development are critical to the growth and the career path they seek. Since they grew up in a world of entertainment, the training should be fun, experiential, with immediate applicability to the job. Giving them time off to attend seminars of their choice or implementing tuition reimbursement are other motivators that work. Millennials get really jazzed about mentoring. They want someone up the ladder to show them how to achieve that same level in a shorter period of time. Savvy companies are using reverse mentoring, where young people are mentoring middle and senior executives in the way their generation thinks. Many Gen Y’ers TIADA DEALER / July 2008 are so advanced in their technological skills, that many firms are channeling that ability to mentor others who are deficient in those skills. trophies just for participating in school events, they feel special, making negative feedback a tricky challenge for managers. When they are told they haven’t done a perfect job, they sometimes crumble. The key is to hook them into realizing the feedback is given to them to help them succeed. Generation Y loves rewards and recognition. However, if you just give them something with out thinking about it, it doesn’t work. They want to be rewarded and recognized in a manner that is meaningful and “cool” to them. If you are not sure how to reward or Having been given certificates and trophies just for participating in school events, they feel special, making negative feedback a tricky challenge for managers. Gen Y craves frequent feedback, which may seem paradoxical. On the one hand they are self assured and upbeat about themselves, and yet, they always need to know how they are doing. They were over praised as kids, receiving constant positive feedback and stroking of their self esteem. Having been given certificates and recognize them, ask them what they would like. Some rewards that really work are cash bonuses, paid time off, trips, and flexible scheduling, The key to managing Generation Y is the way you understand and perceive them. If you dread the changes you must make to work with this generation, you will only experience anger and frustration. However, if you look upon the changes as exciting, cutting edge innovation, you will experience success. The reality is that if your organization just doesn’t “get it,” you will only become the training ground for those that do. Bob Losyk, MEd., M.B.A., C.S.P. is a Certified Speaking Professional, master trainer, author, and President & CEO of Innovative Training Solutions, a Greensboro, NC consulting firm. For more information please visit his websites at www.boblosyk.com and www.getagriponstress.com or call 800.995.0344. Garage Liability is our specialty. Kevin Smith Insurance Agency is one of the largest writers of Garage Liability in the state. We work with several a+ rated companies which offer exceptional rates to car dealers and repair shops. Call today for a “quick” 10-minute quote! www.letstalkinsurance.com 8240 Mid Cities Blvd / N. Richland Hills, TX 76180 (817) 581-1979 / Fax (817) 581-1921 WE ALSO OFFER THESE COVERAGES: Commercial Fire • Contents • Wrecker • 2-Car Haulers • Cargo • Dealer Bonds Retirement • Life Insurance • Homeowner Insurance • Personal Lines July 2008 / TIADA DEALER 13 2008with tiada financial freedom alex fafoutakis auto auction directory ABILENE I Need More Insurance? You’re Kidding Me! AUCTION SYSTEMS OF ABILENE, INC. 7700 US HWY 277/ 79601 325.675-0699, 325.675-5073 FAX WWW.TEXASSALVAGEPOOLS.COM DOUG & KAY OWENS - OWNERS MICHAEL PHILLIPS - MGR Alex Fafoutakis MONDAYFRIDAY - 8:30AM - 5PM Financial BIWEEKLY -Consultant THURS - 10AM BIG STATE AUTO AUCTION 6657 HIGHWAY 80 WEST / 79605 325.698-4391 WWW.BIGSTATEAUTOAUCTION.COM SAM TOLIVER-OWNER FRIDAY - 10 AM C.M. COMPA N Y AUCTIONS, INC. 2258 S. TREADAWAY ABILENE, TX 79602 325.677-3555 / 866.310-3555 WWW.CMAUCTIONS.COM SANDRA & GREGORY CHITTUM – OWNERS MONDAY-FRIDAY 8AM-5PM TUESDAY 10:00AM AMARILLO AUCTION SYSTEMS OF AMARILLO T11150 FM 1541/ 79118 866.262-7665 WWW.TEXASSALVAGEPOOLS.COM DOUG & KAY OWENS, OWNERS SHAWN & BRADY NORRIS BEAUMONT BEAUMONT DEALERS AUCTION, INC. 12151 HIGHWAY 90 / 77713 409.866-5677 WWW.BEAUMONTDEALERS.COM SCOTT SATTLER, GENERAL MANAGER LAURA SATTLER TUESDAY - 7 PM GULF COAST AUTO AUCTION 450 S. 11TH STREET/ 77701 409.840-6000 WWW.GULFCOASTAUTOAUCTION.COM ROGER RASHALL, GENERAL MANAGER ROCKY RASHALL BLAKE RASHALL THURSDAY - 7PM CLEBURNE CALLAWAY’S CLEBURNE AUTO AUCTION (Serving Your Auction Needs For Over 25 Years) 3825 NORTH MAIN ST. / 76033 817.645-0003 WWW.CALLAWAYSAUTOAUCTION.COM BARRY DON CALLAWAY TUESDAY - 7 PM TRUCK SALE 1ST TUES OF EVERY MONTH CORPUS C HRISTI INSURANCE AUTO AUCTIONS 4226 E MAIN ST / 75050 972.642-4445 / WWW.IAAI.COM MIKE PARENT, MGR EVERY TUES – 9 AM ONSITE PREVIEW – EVERY MON – 12 TO 4:30 PM, TUES 8 – 9 AM KARE FREE AUTO AUCTION 11990 N. CENTRAL EXPRESSWAY / 75243 WWW.KAREFREEAUCTION.BIZ See Website For Inventory 972.231-3305 EXT. 4113 JANICE MILES – SALES MANAGER FRIDAY – 10 AM MANHEIM N ORTH T EXAS & O KLAHOMA 866.462-6434 MANHEIM DALLAS 5333 WEST KEIST BLVD. / 75236 877.860-1651 / WWW.DALLASAA.COM BARRY ROOP, GM BILL SIMPSON, DEALER SALES MGR. WED.-GMAC - 9 AM FLEET/ LEASE – 9:30 AM CONSIGNMENT – 10 AM TUES.-FACTORY(ALT WKS) GM - 10AM CHRYSLER - 10AM FRIDAY - “THE” DEALER TRADE SALE - 10AM MANHEIM DALLAS FORT WORTH 3208 E. 10TH ST. / 79104 806.374-8982 BOBBY DALE CLARK, PRESIDENT TUESDAY - 11 AM 12101 TRINITY BLVD / FT WORTH / 76040 / 817.399-4000 WWW.DFWAUTOAUCTION.COM FRANK POST, GM JIM JABAAY DEALER SALES MANAGER FORD CREDIT – THURS. – 9:30 AM FLEET – THURS. – 10 AM CONSIGNMENT – THURS. – 10 AM EXOTIC HIGHLINE SALES - TUES - MONTHLY AUSTIN SPARKLING CITY AUTO AUCTIONS MANHEIM FORT WORTH USA AUTO AUCTION, INC. ADESA AUSTIN, INC. 2108 FERGUSON LANE / 78754 512.873-4000, 888.808-1195 STEVE SWANSON, GENERAL MANAGER SALVAGE SALE - TUES - 8:30 AM FLEET LEASE, CONSIGNMENT - TUES -10AM BOAT, RV SALE – THIRD TUES, EVERY MONTH P.O. BOX 261018 361.767-4100 [email protected] WADE WALKER, GENERAL MANAGER STEPHEN HUTTO TUESDAY - 10AM SALVAGE MONTHLY - 9AM INSURANCE AUTO AUCTIONS 100 DALTON LN / 78742 512.385-3126 WWW.IAAI.COM GEOFFREY RABB, MGR EVERY TUES – 9 AM ONSITE PREVIEW – EVERY MON – 8 AM TO 4:30 PM METRO AUTO AUCTION 8605 CULLEN LANE/78748 512.282-7900 WWW.METROAUTOAUCTION.COM DUSTY RHODES, OWNER RICHARD SAUM, GENERAL MANAGER THIRD SAT. OF MONTH - 9AM 14 DALLAS / F T. W ORTH METROPLEX ADESA DALLAS 1224 BIG TOWN BLVD. / 75149 972.288-7585, 800.459-4722 BRAD GARRETT, SALES MGR WED - 3PM NEW CAR TRADE THURS - 8:45AM CONSIGNMENT/FLEET/LEASE AMERICA’S AUTO AUCTION CO. 219 N. LOOP 12 / IRVING / 75061 WWW.AMERICASAUTOAUCTION.COM 972.445-1044 BEN LANGE, GM TUESDAY - 2 PM / THURSDAY - 2 PM 14651 GATEWAY WEST / 79927 915.852-2489 / WWW.IAAI.COM LARRY BATTLES, MGR EVERY OTHER FRI – 9:30 AM ONSITE PREVIEW – THURS – 8 AM TO 4:30 PM (PRECEDING THE SALE) MANHEIM EL PASO 485 COATES DR. / 79932 915.833-9333 KEITH COATS, GM CONSIGNMENT – THUR. – 9:30 AM DAMAGED & DISABLED (BI-WEEKLY) THURS. – 8:30 AM HOUSTON ADESA HOUSTON 4701 AGNES ST / 78405 361.881-9555 WWW.IAAI.COM VICKIE PERSYN, MGR EVERY OTHER WED – 10 AM ONSITE PREVIEW – TUES – 9 AM TO 4:30 PM (PRECEDING THE SALE) INSURANCE AUTO AUCTIONS EL P ASO INSURANCE AUTO AUCTIONS 4526 N. SAM HOUSTON PKWY. WEST / 77086 / STEVE SWINFORD, GENERAL MANAGER; AMOS BROWN, MARKETING MANAGER 281.580-1800 X 5532, CONSIGNMENT, SALVAGE, FLEET/LEASE – WED. – 9 AM THURSDAY NIGHT SALE - 5PM MANHEIM HOUSTON 14450 WEST ROAD / 77041 800.444-2444 / WWW.BIGHAA.COM STEVE GREEN, GM ROMA TEMPLETON, DEALER SALES MGR. GM SALE EVERY OTHER MON. @ 1PM CONSIGNMENT SALE TUES. @ 9AM C.J. STOMMEL & ASSOCIATES AUTO AUCTION 4621 GASMER / 77035 / 713.721-3577 WWW.CJSAUTOAUCTION.COM TOM STOMMEL, GM FRIDAYS 10 AM - MONTHLY (CALL FOR DATES) 2245 JACKSBORO HWY. / FT WORTH 76114 / 817.626-5494 WWW.FORTWORTHVEHICLEAUCTION.COM PATTY BAILEY, GM JENNIFER WENSZELL, DEALER SALES MGR 2ND & 4TH FRIDAYS - 9:00 AM MONTHLY BOAT & RV SALE 3RD FRI.- 10 AM MONTHLY MEDIUM TO HEAVY DUTY TRUCK SALE 1ST AND 3RD FRI.- 12 NOON D & D SALE HOUSTON AUTO AUCTION, INC. MANHEIM METRO DALLAS INSURANCE AUTO AUCTIONS 2717 E. MAIN, GRAND PRAIRIE / 75050 972.339-4100 WWW.DEALERSOFDALLAS.COM BONNIE BENNER, GENERAL MGR. KATHY WHALEY, ASSISTANT GM CONSIGNMENT – TUES. – 9 AM BANK & FLEET LEASE – TUES. – 9:30 AM NEW CAR TRADE – TUES. – 12:30 PM NEW CAR TRADE – WED. – 3 PM TRA - MONDAYS - 1 PM 6730 GULF FREEWAY / 77087 713.644-5566 WWW.HOUSTONAUTOAUCTION.COM CHIP BOWERS, GM WEDNESDAY - 9:30 AM 100 PH&H FLEET EVERY WEEK PLUS 300 FROM EXXON MOBILE, EL PASO CORP, CREDIT UNIONS, BANKS & OTHERS. 2535 W MT HOUSTON RD / 77038 281.847-4700 WWW.IAAI.COM SCOTT GUENTHER, MGR EVERY WED – 9 AM ONSITE PREVIEW – EVERY TUES – 12 TO 4:00 PM TIADA DEALER / July 2008 2008 tiada auto auction directory MANHEIM TEXAS HOBBY 8215 KOPMAN ROAD / 77061 713.649-8233 WWW.TEXASHOBBYAUTOAUCTION.COM JERRY BRANHAM, GM DEBRA KUNKLE, DEALER SALES MGR CONSIGNMENT, DAMAGED & DISABLED – TUES. – 4:30 PM CONSIGNMENT - THURS. – 9 AM LONGVIEW INSURANCE AUTO AUCTIONS 5577 HWY 80 E 903.553-9248 WWW.IAAI.COM LARRY BATTLES, MGR EVERY OTHER THURS – 9:00 AM ONSITE PREVIEW – WED – 12 TO 5 PM (PRECEDING THE SALE) LUBBOCK AUCTION SYSTEMS OF LUBBOCK 4415 IDA LOU ROAD/ 79408 PO BOX 2339 866.582-7665 WWW.TEXASSALVAGEPOOLS.COM DOUG & KAY OWENS, OWNERS ROSS HAYWARD, MANAGER MONDAY-FRIDAY 8:30AM - 5PM BIWEEKLY MONDAY - 10AM LONE STAR AUTO AUCTION 2706 SLATON ROAD (LOOP 287) / 79404 806.745-6606 JIM MCNULTY WEDNESDAY - 10:30 AM LUFKIN INSURANCE AUTO AUCTIONS 2109 N. JOHN REDDITT DRIVE / 75904 936.632-4299 WAYNE COOK THURSDAY – 6 PM 10475 SOMERSET RD / 78211 210.623-1111 WWW.IAAI.COM JAMES STORM, MGR EVERY MON – 9:30 AM ONSITE PREVIEW – EVERY FRI – 8 AM – 4:30 PM OKLAHOMA C ITY, O K MANHEIM SAN ANTONIO LUFKIN DEALERS AUTO AUCTION DEALERS AUTO AUCTION OF OKC, INC. 1028 S. PORTLAND / OKLAHOMA CITY, OK / 73147 405.947-2886 WWW.DAAOKC.COM/ BRUCE BEAM, GENERAL MANAGER GARY SMITH GM SALE EVERY OTHER TUES. – 10 AM (GM FACTORY CLOSED) THURS. - FLEET/LEASE/CONSIGNMENT. – 8:30 AM THURS. - 8:35AM - INOPERATIVE/PICTURE SALE MANHEIM OKLAHOMA CITY 5005 SOUTH I-35 OKLAHOMA CITY, OK. 73129 405.606-2800 WAYNE CAREY - AUCTION MANAGER SALE EVERY TUESDAY AT 10AM SAN A NTONIO ADESA SAN ANTONIO 200 S. CALLAGHAN / 78227 210.434-4999, 800.462-5686 SAM D’AMATO, CLIFTON SPRENGER CONSIGNMENT SALE - THUR. - 8 AM 1600+/8 LANES I-10 AUTO AUCTION OF SAN ANTONIO 1903 NORTH SM 1516 N / 78109 210.661-0100 WWW.I10AUTOAUCTION.COM PHIL NICHOLS EVERY TUES– 7 PM 2042 ACKERMANN ROAD / 78219 210.661-4200 EDDIE PIATNIK, GM WEDNESDAY – 9 AM FRIDAY – 9 AM TULSA, O K ADESA TULSA 16015 EAST ADMIRAL PLACE TULSA, OK 74116 918.437-9044 / 918.4373989 FAX GEN. MANAGER-BRIAN GILDEHAUS SALES MANAGER-TROY WALDEN F/L MANAGER-DOUG CHILDRESS GENERAL CONSIGNMENT SALE FRIDAY AT 8:45AM IN-OP SALE 1ST & 3RD FRI / BOAT & RV LAST FRI. 9:00AM WWW.ADESA.COM WACO HEART OF TEXAS AUTO AUCTION (WACO’s oldest & most established auto auction) 2508 HWY 6 / 76705 254.755-7713 SHIRLEY MCMILLAN, GENERAL MANAGER KENNY REIGERT THURSDAY - 7PM MIDWAY AUTO AUCTION (Largest auto auction between Austin & Dallas) 15735 N. IH35 (EXIT 346) / 76715 254.829-0123 FAX 254.829-1298 WWW.WACOMAA.COM TIM RILEY, PRESIDENT EVERY FRIDAY - 10 AM WICHITA F ALLS AUCTION SYSTEMS OF WICHITA FALLS 3119 WINDTHORST RD / 76310 940.723-7416 WWW.TEXASSALVAGEPOOLS.COM DOUG & KAY OWENS, OWNERS BIWEEKLY - THURS - 10AM TYLER GREATER TYLER AUTO AUCTION 11654 STATE HIGHWAY 64 W / 75704 903.597-2800 REPO LANE – TUESDAY 5 PM CONSIGNMENT – TUESDAY 6 PM VICTORIA VICTORIA AUTO AUCTION 835 INDUSTRIAL PARK DRIVE/ 77905 361.576-0058 KENNY & CINDI GRIFFIN, OWNERS THURSDAY NOON ttiada resource guide WWW.TXIADA.COM Visit our website for the following information: - A Dealer's Guide to the Used Car Rule - Blocked Person and "Specially Designated Nationals" List - Gramm-Leach-Bliley Act - MVD Dealer Complaint Form - Safeguards Rule - TIADA Vendor Member Directories - US Patriot Act MOTOR VEHICLE DIVISION HTTP://WWW.DOT.STATE.TX.US/SERVICES/MOTOR_VEHICLE/ Main: 512.416-4800 Licensing: 877.366-8887 Enforcement: 800.687-7846 Lemon Law: 800.622-8682 FORMS: Burrell Printing Company WWW.BURRELLPRINTING.COM 800.252.9154 REPOSSESSIONS: In Texas - Call TIADA Out of State - Call respective state association (see www.niada.com) NIADA WWW.NIADA.COM 800.682-3837 TEXAS COMPTROLLER WWW.WINDOW.STATE.TX.US Motor Vehicle Sales Surcharge, Rental and Seller Financed Sales Tax: 800.252-1382 OFFICE OF CONSUMER CREDIT COMMISSIONER (OCCC) WWW.OCCC.STATE.TX.US Main: 512.936-7600 Reviewed Software Vendors: WWW.OCCC.STATE.TX.US/PAGES/INDUSTRY/INDEX.HTM: Check License Status: HTTP://168.39.159.59/DEFAULT.ASP VEHICLE, TITLES & REGISTRATION (VTR) HTTP://WWW.DOT.STATE.TX.US/SERVICES/VEHICLE_TITLES_AND_R EGISTRATION/DEFAULT.HTM Main: 512.465-7611 Visit web for regional offices Public Info: 512.463-8585 Auto Theft Prevention Authority:512.374-5101 July 2008 / TIADA DEALER 15 legal corner Protecting a Lien Holder’s Rights When a Bonded Title Is Applied For by Michael W. Dunagan TIADA General Counsel D ealer Question: I was just notified by TxDOT that someone has applied for a bonded title to a vehicle that has been on my skip list for two years. How do I protect my lien, and will a bonded title be superior to my lien? Answer: While the issuance of a bonded title certificate will create an administrative presumption that the bonded title is superior to your lien in TxDOT’s records, the courts still recognize that your prior, unsatisfied lien is superior. However, the bond that is deposited with the bonded title applica- able and the applicant is the apparent owner of the vehicle. The legislation addressed a problem many vehicle owners had in obtaining title certificates to their vehicles after indebtedness was paid off. The problem was particularly acute when the banking industry was faced with massive shut-downs and consolidations in the late 1980’s. There has also been a persistent problem with other lien holders (such as BHPH dealers) who go out of business or close down, and can’t be found when the time to get the lien released comes around. The bond that is deposited with the bonded title application may offer a better target for the prior lien holder in recovering his loss than in fighting for possession of the collateral. tion may offer a better target for the prior lien holder in recovering his loss than in fighting for possession of the collateral. The bonded title procedure was established by the legislature as a way of allowing a person to obtain a title certificate to a vehicle when the original certificate is unobtain16 Before institution of the bonded title procedure, the methods for obtaining a title to a vehicle without having a title certificate were (1) apply for and obtain a certificated copy original title, or (2) request a hearing from the county tax assessor to establish the right of ownership to the vehicle. The problem with the former procedure is that the owner or lien holder must sign the application and represent that the original title certificate was lost (although this requirement hasn’t stopped many thieves who have no qualms about forging a lien holder’s name to such an application). Many tax assessors were reluctant to cause a new title to be issued without knowing more facts than the applicant often had available at the hearing, so that procedure was not always an efficient way to determine the true ownership of a vehicle. The bonded title procedure seemed to be a good compromise for allowing a person to get a title when the normal channels were not available, but at the same time offering financial protection for a real owner or lien holder whose interest was overlooked. Under Section 501.053 of the Texas Transportation Code, a person may file a surety bond issued by a licensed surety company in an amount equal to one and onehalf times the value of the vehicle (as determined by TxDOT). If the paperwork is in order, a title certificate is issued. Originally, TxDOT procedure was to notify any registered owners and lien holders after a bonded title was issued. It is our understanding that they are now sending notifications prior to issuance. Any registered owner or lien holder can recover on the bond any expense, loss, or damage, including reasonable attorney’s TIADA DEALER / July 2008 fees, occurring because of the issuance of the bonded title. The bond is valid for three years from its effective date. What has become apparent recently is that the bonded title procedure is being used in situations other than where lien holders have disappeared. It seems that more and more individuals are the usual repossession rules. Repossessing after a bonded title certificate is issued, even though it is probably justified under the law, may result in costly repercussions, such as theft charges being filed. Remember that the police (and other law enforcement officials) will generally rely on the state’s title records and will probably not Once a bonded title has been issued, a prior lien holder can often obtain a larger recovery by making a bond claim than by repossessing and reselling the collateral. “selling” their vehicles to third persons, who are “buying” the vehicles without any concern for outstanding liens. When they seek to title and register, they are informed that they can’t because of outstanding liens. Most tax offices then give out information on tax office hearings and bonded title procedures, including a list of surety companies that write bonds. Once a lien holder gets notice that a bonded title that has been issued or applied for, he can obtain information about the applicant and the issuer of the bond from TxDOT’s Vehicle Title and Registration Division (VTR). The notification letter has the address and phone number to contact for information. We have assisted a number of lien holders recently in collecting written-off balances on collateral long given up on. When a lien holder finds that a bonded title has been applied for, we suggest the following options: If the bonded title has not been issued yet, the lien holder can certainly repossess its collateral under July 2008 / TIADA DEALER understand the complications of competing title interests. The cost of seeking a court ruling may not be justified by the value of the repossessed vehicle. Once a bonded title has been issued, a prior lien holder can often obtain a larger recovery by making a bond claim than by repossessing and reselling the collateral. Even if the lien holder finds out about a bonded title application before the title is issued, he may want to wait and file a bond claim rather than deal with repossessing and reselling the collateral. Conclusion: Receiving notice that a bonded title has been sought on a “skip” vehicle may be the best news a prior lien holder can get about his lost collateral. Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for 30 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. 17 fines&violations AGREED ORDERS: December 2007. The violations reported are allegations. The agreed final order does not necessarily reflect a finding of the facts by the Motor Vehicle Division 04-0797-ENF Nettie McClendon d/b/a Giles Motors Failed to keep complete records. $500.00 05-0646-ENF Ultimate Leasing, Inc. d/b/a Ultimate Leasing 5 counts of failing to pay off a lien. 42 counts of failing to collect and remit required sales tax and to report the sale of a motor vehicle in a timely manner. Respondent failed to make dealership records available for inspection by a representative of the Motor Vehicle Division at the dealer’s location. Sold and offered to sell motor vehicles without the appropriate license. Acted as or offered to act as or claimed to be a broker. Failed to fulfill a written agreement. Submitted an Application for Texas Certificate of Title containing false or fraudulent lien information. Sold or offered to sell motor vehicles at location other than the location for which Respondent holds a General Distinguishing Number. Sold a motor vehicle without having the title receipt or certificate of title for the vehicle. Issued multiple buyers’ temporary cardboard tags. Misused buyer’s temporary cardboard tags. License revocation. 05-1048-ENF Glenda Rae Warner d/b/a Jerry Boy’s Used Cars Failure to apply for title timely. Failed to keep complete records. Issued multiple buyers’ temporary cardboard tags. Failed to have the dealer or a bona 18 fide employee present at the dealer’s location during the posted business hours. Failed to answer the telephone, have it answered by a bona fide employee or to have an answering machine or service in operation during posted business hours. Failed to comply with a Final Order of the Motor Vehicle Board. Entered a false date of sale on a buyer’s temporary cardboard tag. Misused buyer’s temporary cardboard tags. $4,500.00 06-0297-ENF Sindawi Enterprises, Inc. d/b/a Motors Ltd. Failed to have the dealer or a bona fide employee present at the dealer’s location during the posted business hours. Failed to notify the Motor Vehicle Division of the dealer’s telephone number. $1,000.00 06-0670-ENF Oscar R. Solis d/b/a Oscar’s Used Cars Operated as a dealer from a location that does not meet the requirements of an established and permanent place of business. $500.00 07-0052-ENF Moja Investments, Inc. d/b/a Cross Lander Sold or offered to sell motor vehicles without the appropriate license. Misused a dealer’s temporary cardboard tag. $1,000.00 07-0130-ENF Carl D. Williams d/b/a Lone Star Motors Failed to collect and remit required motor vehicle sales tax, failing to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. (2 counts) $1,000.00 07-0176-ENF Bankston Chrysler Jeep of Frisco LP d/b/a Bankston Chrysler Jeep Dodge of Frisco Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. Failed to complete a buyer’s temporary cardboard tag in the required manner. Filed a false tax and title document. $1,500.00 07-0195-ENF New World Auto Imports Inc d/b/a Southwest Kia Featured a price that is not the price for which the vehicle will be sold to any retail buyer. $2,000.00 07-0229-ENF High Energy Lighting Inc Sold or offered to sell motor vehicles at location other than the location for which Respondent holds a General Distinguishing Number. Failed to remove out-of-state license plates from a vehicle purchased by dealer. $1,000.00 07-0240-ENF William G. Cook d/b/a Priority Auto Sales Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. Failed to keep complete records. Failed to take assignment of any basic evidence of ownership. Failed to assign certificates of title for vehicles sold. Delivered title directly to buyer to retail buyer and failed to apply for registration of the vehicle in the TIADA DEALER / July 2008 fines&violations name of buyer and to pay sales tax. Failed to file the Motor Vehicle Inventory Declaration within 30 days after the date Respondent commenced business. 5 year opposition to any new or renewal applications. 07-0266-ENF Thomas E. Cash Vincent Burnett Jr. d/b/a Cash’s Car Clinic Sold or offered to sell motor vehicles at location other than the location for which Respondent holds a General Distinguishing Number. $500.00 07-0300-ENF Vicente Medina d/b/a Medina’s Auto Sales Sold or offered to sell motor vehicles at location other than the location for which Respondent holds a General Distinguishing Number. Delivered a title directly to a retail buyer, failed to apply for registration and pay sales taxes. $2,000.00 07-0307-ENF Mega Motors Inc. Sold a motor vehicle without having the title receipt or certificate of title. Failed to display the Federal Trade Commission Buyer’s Guide. $800.00 07-0314-ENF Pro Autos Inc Failed to comply with a Final Order of the Motor Vehicle Board. Made misrepresentations in an application for a General Distinguishing Number. Cease & Desist 07-0325-ENF Michael Zak d/b/a Maniak Motors Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. Failed to notify the Motor Vehicle Division of change in address within July 2008 / TIADA DEALER 10 days after such change. Made misrepresentations in an application for license renewal. $1,500.00 07-0328-ENF Mega Motors Inc. Sold a motor vehicle without having the title receipt or certificate of title. Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. $1,000.00 07-0329-ENF Apex Auto Inc d/b/a A Lifetime Auto Collision Quest Rent A Car and Sales Sold or offered to sell motor vehicles at location other than the location for which Respondent holds a General Distinguishing Number. Delivered a title directly to a retail buyer, failed to apply for registration and pay sales taxes. $1,000.00 07-0336-ENF Rigoberto Garcia Garcia d/b/a El Tucanazo Auto Sales Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. $500.00 07-0354-ENF Pickle Suzuki LTD d/b/a Grapevine Suzuki Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. $500.00 07-0366-ENF Dallas Truck Center Inc. 4 counts of overcharging documentary fees. Cease & Desist 07-0372-ENF American Eagle Acceptance Corp. d/b/a Boris Karlot Submitted an application for Texas Certificate of Title containing false or fraudulent information. $500.00 07-0378-ENF Jack Hyde d/b/a Jack Hyde Motors Sold and offered to sell motor vehicles without the appropriate license. $1,000.00 07-0379-ENF Texas Lincoln Mercury Inc. d/b/a Champion Lincoln Mercury Isuzu Sold or offered to sell motor vehicles at location other than the location for which Respondent holds a General Distinguishing Number. $1,000.00 07-0409-ENF SUNL Group Inc. Failed to comply with a Final Order of the Motor Vehicle Board. Cease & Desist 07-0410-ENF Cantwell Fielder Ltd d/b/a Quality Pre Owned Cars & Trucks Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. $500.00 07-0412-ENF Antares Ventura Garcia d/b/a G A Auto Sales Failed to keep complete records. Sold or offered to sell motor vehicles at location other than the location for which Respondent holds a General Distinguishing Number. $1,000.00 (cont’d on pg. 22) 19 Thank you to the 2008 INDEPAC Contributors: (as of 6/16/08) $1000 + Paul Barnes Brad Davis Gary Sayre Blake Ingram Whitney Motorcars Mega Motors Gary’s Used Cars Auto City $500 - $999 Don Fincher J. Wayne Meagher Chad Donihoo Trey Crouch John & Mike Minter Juan Sabillon Fincher Motor Co. M D Auto Sales Designer Auto Sales Trey Crouch’s Wheels on Credit Minter Auto Sales Mi Tierra Auto Sales $100 - $499 Jim Campbell Big Tex Auto Mart James Campbell E-Z Ride Auto Sales Jesse Barcenas Big Time Auto Sales Tom Grainger Auto World Billy Bob English F & E Auto Sales Kyle Chapman Kyle Chapman Motors Sales Jeff Atchison Budget Used Car Sales Ricky Atchison Budget Used Car Sales Steve & Linda Barrington North Channel Auto Sales Bobbie Kates Bill Kates Motor Co. Gordon V. Wear Country Auto Sales Eugene A. Dietert Red Carpet Auto Sales Dick & Pepper Procter Procter Motor Co. Loy E. Moore Moore Auto Sales Robert Blankenship Texas Auto Center Jeff Owings Owings Auto Bill Elliff Elliff Motors Greg Galier G & G Auto Sales Floyd Browning Browning’s Reliable Cars & Trucks Dwain Carnes Carnes Motor Co. Don & Judy Love Love’s Auto Sales Cheri R. Childress Seagoville Auto Sales Richard Isaacs Drive In Auto Jesus & Dollie Lucio English Motors Dan Richardson Payless Auto Sales Richard & Donna Dupree Dupree Automotive MONTHLY CONTRIBUTORS Shane Rhodes Baldomero Trevino Randy & Barbra Hilliard Rhodes Auto Sales Mr. B Motor Co. Leadership Auto Sales John Freeman Byron Riley Galena Park Motors Uncle Buddy’s PreOwned Autos 200.00/month 100.00/month 85.00/month 25.00/month 25.00/month As TIADA gears up for the 2009 legislative session, it is more important than ever to grow our Political Action Committee INDEPAC. All members recently received a letter from INDEPAC Chairman John Freeman asking for your financial support. As you well know, representing the interests of the independent dealers of Texas requires resources. So help us help you - contribute to INDEPAC today by calling 800.442.5944. H o r s S u m m e r s h o e C o n f e r e n c e B a y 2008 Summer Conference July 28-29 * Horseshoe Bay, Texas (See pages 30-34 for schedule of events and registration information) July 2008 / TIADA DEALER 21 (cont’d from pg. 19) 07-0414-ENF Norris McDowell d/b/a McDowell Used Cars Filed a false tax or title document. Misused a dealer’s temporary cardboard tag. Failed to keep complete records. $1,500.00 07-0417-ENF Thrifty A/S Ltd. d/b/a The Kar Store Falsified or forged a tax or title document. Cease & Desist 07-0427-ENF Demontrond Motor Corporation d/b/a Demontrond Chevrolet Oldsmobile Inc. Represented that a new motor vehicle is available for sale at a price which excludes freight and make ready charges. $2,000.00 07-0438-ENF Higgins Auto Sales Inc. Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. Allowed the use of its General Distinguishing Number, aided and abetted or indirectly facilitated the sale of a motor vehicle. Offered for sale motor vehicles that did not display the Federal Trade Commission Buyers Guide. $2,000.00 07-0440-ENF Armando Arreola d/b/a Best Buy Auto Sales Delivered a title directly to a retail buyer, failed to apply for registration and pay sales taxes. $500.00 07-0449-ENF Saturn of Amarillo Inc Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. 22 Failed to comply with a request for records from the Motor Vehicle Division. Cease & Desist 07-0487-ENF Bobby Matlock d/b/a South Texas Equipment Failed to keep complete records. $500.00 07-0488-ENF Bill Batis d/b/a Southtown Car Corral Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. Cease & Desist FINAL ORDERS: For December 2007. The final order reflects a finding of the facts by the Motor Vehicle Board. License will be denied until civil penalty is paid. Final orders were entered against the following recipients: 07-0180-ENF Lanny Headley DBA DFW Auto Locators 2 counts of respondent failing within 20 days of the date of sale, to file the application for certificate of title or to deliver the proper evidence of ownership to the non-resident purchaser. $2,000.00 07-0327-ENF Robert Burdett DBA RB Motors 2 counts of failing to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. Failed to have the dealer or a bona fide employee present at the dealer’s location during posted business hours. Failed to make records available for inspection by a representative of the Motor Vehicle Board at the dealer’s location. Issued multiple buyer’s temporary cardboard tags. Entered false date of sale on buyer’s temp tag. $5,000.00 07-0376-ENF Pablo Botello, Jr. DBA Double BB Fine Used Cars Failed to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. Failed to display Federal Trade Commission Buyer’s Guide. 2 counts of failing to keep complete records. $4,000.00 07-0613-ENF Michael Shoemake / Glenda Shoemake DBA M T Auto Sales Misused a dealer’s temporary cardboard tag. Issued multiple buyer’s temporary cardboard tags. Failed to properly complete buyer’s temp tag. Entered false date of sale on buyer’s temp tag. Failed to answer the telephone, have it answered by a bona fide employee or to have an answering machine or service in operation. Failed to keep complete records. Filed a false tax or title document. 4 counts of failing to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. $12,000.00 07-1303-ENF John C. Stephenson DBA Johnnys Autoplex Failed to keep complete records. 4 counts of failing to collect and remit required motor vehicle sales tax, and failed to provide the buyer with a receipt for application for title and to report the sale of a motor vehicle in a timely manner. $4,000.00 07-1317-ENF Hadaday Ltd. DBA Payless Car Sales Failed to file or failed to file in a timely manner its 2006 Motor TIADA DEALER / July 2008 (cont’d from pg. 6) the business will go bad; you can take a bad business and put good people in it and the business can 07-1328-ENF Rick D. Allee become great.” Success for growth DBA Sixth Avenue Auto Company is dependent on having good peoFailed to keep complete records. ple. You must also communicate $500.00 your vision and expectations on a regular basis, train and develop 07-1330-ENF Jerry J. Bilski / staff, and create opportunities for William P. Snyder staff to grow. This can help to creDBA Briarcliff Motors ate harmony within the organizaFailed to display Federal Trade tion. This is a real challenge when Commission Buyer’s Guide. your business stagnates and is not Willfully defrauded a buyer and credgrowing. It also requires some itors by failing to pay off lien in a vision to see a better future for you reasonable time. and your business in spite of curFailed to pay the consignor. rent circumstances, determination Willfully defrauded a purchaser. to look past the negative people, 7 counts of failing to collect and and a strong work ethic. remit required motor vehicle sales These are a few major ingreditax, and failed to provide the buyer ents to consider when thinking of with a receipt for application for title expanding your business. and to report the sale of a motor However, there are several more vehicle in a timely manner. items to consider. The best way to $7,000.00 find out more is to make sure you are at the TIADA 2008 Summer Conference July 28-29 in Horseshoe Bay, Texas (see pages 30-34 for more information). Come learn, relax, and grow. Remember membership has its privileges. Vehicle Inventory Declaration reporting sales for the preceding calendar year. $1,000.00 TIADA Local Texas Chapters * VICTORIA Mike Parker • Parker Motor Co. 361.570.9977 Meeting - 1st Monday (Monthly) at 6:30 p.m. The Corral, Victoria, TX * FORT WORTH Scott Allen • AutoLand 5925 E Belnap, Haltom City 76117 817.834.4222 Meeting - 4th Thursday (Monthly) * DALLAS COUNTY James Merriman Ron Montgomery Motors 3325 S Shiloh Rd. Garland, TX 75041 / 972.278.5700 Meeting - 1st Tuesday (Monthly) * HOUSTON Kevin Pitt • Texan Auto Sales 144 Truly Plaza, Cleveland, TX 77327 [email protected] 281.659.2274 Meeting - 2nd Monday (Monthly) * WACO-HEART OF TEXAS Bill Miller • Bill Miller Used Cars 515 E Waco Dr., Waco, TX 254.753.4161 Meeting - 2nd Monday (Monthly) * SAN ANTONIO Randy Adams • Randy Adams, Inc. 1687 S. Bus. Loop I35., New Braunfels, TX 830.625.7159 Meeting - Monthly (Date TBD) SAVE THE DATE 2008 TIADA State Convention & Exhibit Hall The Woodlands, Texas November 7-9 * EL PASO James Hobson • H -Town Motors 3714 Dyer St., El Paso / 79930 915.564.9797 Meeting - 3rd Friday (Monthly) ABILENE Marvin Norwood • Abilene Auto Sales 2302 West Overland Trail, Abilene 79603 325.677.7200 Meeting - 2nd Tuesday (Every other month) * = AFFILIATED CHAPTERS July 2008 / TIADA DEALER 23 (cont’d from pg. 9) last year was José. Latinos are Not “One-Size Fits All”: The Four Latino Mindsets So how can you capitalize on this large and lucrative market to grow your dealer business? With Latino marketing, it’s not just about translating a message into Spanish. Sure, Spanish is a critical part of reaching Latinos, but to really reach Latinos effectively, you have to understand their level of acculturation. Acculturation is defined as the process of adapting to and acquiring a new culture while retaining the old culture. Or, put another way, the “merging of two cultures in close contact”. Acculturation is what happens when a person moves to a new country or is exposed to a country’s culture, its values and lifestyles. There are four distinct Latino mindsets that reflect the varying levels of acculturation among Latinos: The first is the Cultural Loyalist. The Loyalist is foreign-born, a recent arrival who has been in the country less than five years. This person is Spanish-dependent or Spanish-exclusive and tends to have very traditional values. The second mindset is the Cultural Embracer. The Embracer is also foreign-born, but has adopted the U.S. as their home now. They may have lived in the U.S. for many years. This person tends to be more professional, more educated and aspirational. They may be bilingual, but they prefer Spanish. The third mindset is the CrossCulturer. This Latino is U.S. born, first generation, and is bilingual and bi-cultural. They easily live and work in two worlds: English and Spanish. They are equally comfortable in both Latin and Anglo culture, hence the label Cross-Culturer. They are fashionforward and urban and very much in touch with their Latino roots. Lastly, there is the Cultural 24 Integrated. This is the fully acculturated Latino. U.S. born, second, third, fourth or fifth generation, this Latino may not speak Spanish or perhaps, does not speak it well. Cultural Integrateds are Englishdependent or English-preferred. Latinos Represent Huge Growth Opportunities for the Automotive Industry The automotive industry is growing with purchases for both new and used vehicles by Hispanics. Additionally, these drivers need to have their vehicles repaired and serviced as well and your business can grow by “putting the welcome mat out” for this important consumer segment. The Latino population in the United States and in Texas offers you a way to expand your business substantially. As the Latino population continues to grow, smart companies and associations will need to reach out and connect with this consumer base emotionally, rationally, culturally and relevantly. Taking the time to learn more about this lucrative opportunity will pay dividends, today and mañana. Kelly McDonald is a popular speaker and president of McDonald Marketing, a full-service firm specializing in Hispanic marketing. McDonald Marketing was named in 2007 as one of the Top 50 Hispanic Ad Agencies in the U.S. by Advertising Age. Kelly can be reached at 214-880-1717 or [email protected]. The company’s website is www.mcdonaldmarketing.com. TIADA DEALER / July 2008 behind the wheel Go Get ‘Em, INDEPAC! by Jeff Martin TIADA Executive Director W hat a difference a year makes. At our Summer Conference last year we talked about the importance of being politically active at the local level. We discussed the need to go meet with various legislators during the interim and put a face on our industry’s issues. From time to time we would also write articles about how each and every member could get involved and support the association’s efforts through writing a check to INDEPAC, our political action committee. I am proud to say in the last nine months our message has been received very well and our grassroots program is moving in the right direction. We have taken local leaders from Houston, San Antonio, Fort Worth and Dallas to meet with almost 20 legislators Thank you not only for your contribution but for your confidence. so far. Four of those legislators have since attended local chapter meetings to discuss industry issues. We are still scheduling meetings with local leaders and state legislators as well as facilitating local chapter visits by key policy makers. All this is in an effort to help build our political influence in Austin as we gear up for the 2009 legislative session. Hats off to those local and state leaders who are finding the time to visit their state legislators and discuss industry issues. I certainly understand not everyone can be away from their lot for a day or two visiting with legislators and some of you don’t have local chapters in your area yet. But another very important part of the grassroots legislative effort is making your INDEPAC contribution. These contributions allow the association to financially support the campaigns of those legislators whose ideals align 26 with the association’s. Our goal was to collect and distribute over $50,000 this year. I am proud to report we are well over halfway there. Many of you received a letter last week asking for your INDEPAC support, and as you can see by the list of names on page 20, many members heeded the call. A special thanks goes out to each and every member who made a contribution and to those of you who soon will. Your support will help move the association’s legislative agenda forward. I must confess though, I am always struck when I see that someone took the time to scribble a handwritten note at the bottom of the page that accompanies the INDEPAC checks. Most recently we received one note that read, “Go get’em.” Someone else wrote, “Good Luck!” But the note I see more often then any other is simply, “Thank you.” To that, I say: We will go get ‘em We are passionate about going to each and every corner of Texas and getting all legislators to understand who we are and how much we contribute to our communities. It’s going to take a little good luck Anyone who has been around politics very long knows no matter how hard you work it still takes a little luck. And no, no, no - thank you! Thank you not only for your contribution but for your confidence. By writing that check you are saying you have confidence in the system, in your elected officials, in your leaders and most of all in your association. And that confidence is the most valuable thing you can share. TIADA DEALER / July 2008 28 TIADA DEALER / July 2008 Chapter News Spotlight on: San Antonio IADA by Fred Yamaguchi SAIADA Member T stituents as well. We first met with State Later we met with State Representative Frank Corte, Jr. Representative Joe Straus at a local who represents District 122 and coffee shop for a short informal chairs Defense Affairs and State meeting. Once again, as a lifelong Federal Relations. Rep. Corte San Antonian, I am familiar with immediately put us all at his family. His family has ties to ease with his interesting conversation about his fam- the auto industry which includes auto parts stores distributorship ily background. It was interesting in that his father and a leading tire distributor. I think this bodes well for us in that was instrumental as one of he was nice enough to meet with the developers of some of the areas in which my deal- us. Last, but not least, we met with ership does business and I am very familiar with these Texas State Senator Carlos Uresti. We were well received and had a neighborhoods. Also, (l to r:) Sonny Paradez, Jeff Martin, Rep. Corte, Fred Yamaguchi very cordial visit with him. It Representative Corte is a turns out his district office is just Marine colonial in the four blocks from my car lot. Yamaguchi, went on a whirlThe area people have a lot of wind trip through San nice things to say about Antonio to meet with some of Senator Uresti. our legislators, including That visit closed out our State Representative Frank fast-paced day. However, I’m Corte, Jr., State really thinking about getting Representative Joe Straus, Jeff Martin a GPS for any and Texas State Senator future trips so he won’t be misCarlos Uresti. led and confused by my direcThe purpose of these short tions. visits was to introduce ourBut all in all, it was a selves to them and to let them (l to r:) Jeff Martin, Rep. Straus, Fred Yamaguchi, Sonny Paradez great and enjoyable day. know who we are, a little about the Texas independent reserves in our city. I found dealers, and about our TIADA that interesting as I too was a organization. We were not there to push any agenda, only to intro- member, albeit years ago, of the San Antonio area Marine duce ourselves and put a face to Reserves. Their mission has TIADA, so to speak. changed, but the spirit has I was just a little apprehensive, not. as I had never met with any legisThe meeting I think was a lators face to face in casual conversuccess in that he now knows sation, but to meet three very who we are and I think he important people in one day, will help us and his conwow! (l to r:) , Jeff Martin, Fred Yamaguchi, Sen. Uresti, Sonny Paradez his past May TIADA Executive Director Jeff Martin, TIADA Lobbyist Jimmy Evans, Felix “Sonny” Paredez, and myself, Fred July 2008 / TIADA DEALER 29 2008 Summer Conference Sunday July 27 Golf Tournament (pre-conference events) 11:00 am - 1:30 pm Vendor Summit 1:30 pm - 2:30 pm Executive Committee Meeting 3:30 pm - 7:30 pm TIADA Golf Tournament 5:00 pm - 9:00 pm Summer Conference Early Registration 7:30 pm - 9:00 pm Welcome Reception for all Attendees Monday July 28 Apple Rock Golf Course Register today for our annual golf event. Beautiful course, great networking opportunity Vision 21 Rebecca Davio will provide the latest information on the department’s Vision 21 initiative, including information on the database for E-tags as well as the impact of the new Plateto-Owner rules. 7:00 am - 12:00 pm Registration 8:00 am - 9:00 am Opening General Session - David Walsh 9:15 am - 10:30 am Vision 21 - What Does it Mean for Texas Dealers? - Rebecca Davio, VTR 10:45 am - 12:00 pm New Temp Tag System - How Will E-tags Work? - Carol Kent, MVD 12:00 pm - 5:00 pm [Dealer Training Sessions] 2:30 pm - 6:30 pm Team Building Activity 7:30 pm - 12:00 am Dinner / Karaoke Night Tuesday July 29 8:00 am - 10:30 am [Dealer Training Sessions] 10:30 am - 12:00 pm Board of Directors Meeting 12:00 pm - 1:00 pm Closing General Session 1:00 pm - 5:30 pm Committee Meetings E-ttags Carol Kent will present a special session on the new E-tags procedure expected to go into effect August 1, 2008. She will explain the internet requirements for dealers, how to print tags, proper display, proper usage, e-tag bag requirements and much more. This will be a comprehensive how-to from the leading authority on E-tags in Texas. This is the only educational event in Texas where both Carol Kent of MVD and Rebecca Davio of VTR will present in-person training on the new E-tag system and requirements, with Q & A to follow. Plus you won’t want to miss the popular Dealer Panel Q & A. Learning Leading the Leading the Fun From the Golf Tournament on Sunday (a great networking opportunity) to the Build-a-Boat team-building activity (will it float?) to our Karaoke FUNdraiser (a star is born!), Summer Conference is all about a good time for all. Leading Your Association You know what leaders do? They lead! As we prepare for the 2009 Legislative Session, attend the Board of Director’s meeting and sit in on the committee meetings. This is where the future of the association and the industry are determined. Current Sponsors: Platinum Manheim Manheim Manheim Manheim Manheim Dallas Metro Dallas Fort Worth El Paso Oklahoma City Manheim Houston Manheim Dallas Ft. Worth Manheim Texas Hobby Manheim San Antonio Gold Thank you for your support! 32 TIADA DEALER / July 2008 2008 TIADA SUMMER CONFERENCE July 28-2 29 Horseshoe Bay, Texas SUMMER CONFERENCE REGISTRATION Please complete this form and return it with payment in full to: TIADA / P.O. Box 127 / Round Rock, TX 78680-0127. If paying by credit card, please fax this form to 512.244.6218. PLEASE P RINT O R T YPE NAME NAME ON BADGE COMPANY NAME PHONE EMAIL FAX MAILING ADDRESS CITY STATE SPOUSE / GUEST / CHILD NAME SPOUSE / GUEST / CHILD NAME SPOUSE / GUEST / CHILD NAME SPOUSE / GUEST / CHILD NAME Conference Costs Quantity Cost ZIP Payment Information CHECK A PPROPRIATE P AYMENT M ETHOD: Member Registration (before 6/15/2008) X $250 = $ Enclosed is my check for $________ made payable to TIADA. Member Registration (after 6/15/2008) X $275 = $ TIADA is hereby authorized to execute payment to the following credit card: Non-member Registration X $650 = $ AmEx Discover Visa MC NAME ON CARD BILLING ADDRESS Does NOT include any education sessions: Family Members / Guests X $50 =$ (children under 10 are free) TOTAL =$ CITY STATE ZIP SIGNATURE CREDIT CARD NUMBER EXP DATE HOTEL ACCOMMODATIONS: The Horseshoe Bay Marriott is the site of the event. The hotel has discounted rooms available at $159/night. Please contact the hotel directly for room reservations: Horseshoe Bay Marriott 200 Hi Circle North / Horseshoe Bay, TX / 78657 Room Reservations: 800.452.5330 Rooms must be reserved on or before June 23 in order to secure the special rate. Golf TournamenT J u l y 2 7 TIADA Golf Tournament - July 27, 2008 Horseshoe Bay, Texas $140 individual / $500 team - Hole Sponsorships available for $750 (includes free team registration) Shotgun start 3:30 pm. For more information, please contact TIADA at 800.442.5944. Fax form to 512.244.6218. Registrant Name(s) _______________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Company _______________________________________________________________ Billing Address __________________________________________________________ ________________________________________________________________________ City, State, ZIP ___________________________________________________________ Phone __________________________________________________________________ Email ___________________________________________________________________ Circle one: AMEX MasterCard Visa Discover CC# _________________________________ TOTAL Charge Authorized $__________ Exp._____________ Name on Card__________________________________________ Checks payable to: TIADA / PO Box 127 / Round Rock, TX 78680 / 800.442.5944 YO U S E L L CAR S E NGI NEE R ED F O R P E R F O R MANC E. WH Y NOT S E L L S E RV I C E CON T R ACTS AC TS E NGI NEE R ED F O R P RO FI TS? It’s simple. At Guardian Warranty Corporation, we want to increase your bottom line and keep your customers coming back. Our Dealer Dividend Program is among the most generous in the service contract industry with over $30 million paid to our dealership partners. And, with our record for excellent customer satisfaction, that means more repeat business for our dealers as well. Give us a call to find out more about how we’ve helped increase dealerships’ reputations and profits across the country for over a decade. GUARDIAN WARRANTY CORPORATION. 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