Every BHPH dealer across Texas has their own way of doing business. But no matter where you are in Texas, one constant across our industry is this: underwriting can make or break your portfolio. It’s the difference between cash flow and charge-offs, between long-term success and short-term headaches. Underwriting isn’t just about credit scores or down payments. It’s about understanding people, spotting red flags, and structuring deals that work for both your customer and your business. It’s not just about saying “yes” to a deal — it’s about knowing why you’re saying yes, and just as importantly, when to say no. When you get it right, everyone wins
That’s why I was honored to co-present with my fellow board member, Lucas Ponder, at this year’s TIADA Annual Conference on “The Variables of Underwriting.” We took a deep dive into the criteria that really matters when evaluating a deal — from stability and job time, to structuring, risk layering, and the often-overlooked red flags that can signal future problems. We talked about the real-world decisions we make every day as dealers — what we look for, what we watch out for, and how we can get better together as a community.
I’ve learned from networking with other dealer members over the years that underwriting isn’t one-size-fitsall. It needs to be tailored to your market, your model, and your risk tolerance. Good underwriting protects your business, your team, and your customers. Together,
by Tyler Simmons
we can share best practices and help each other grow stronger. Because that’s what makes this association so special. TIADA is a statewide network where dealers learn from each other, support each other, and get the tools needed to grow and remain successful.
I will continue to serve on this great board and remain a member because TIADA offers something unique: education, advocacy, and a community that truly wants to see each other succeed. Whether it’s legal guidance, compliance workshops, or peer-to-peer exchanges, this association continues to evolve for its members. That’s what the Big Texas Tour and local dealer events are all about — bringing us together so we move forward as a unified association.
Strong underwriting starts with smart decision-making — and joining TIADA has been one of the best business decisions I’ve ever made as an independent dealer. So, as we look ahead to 2026, I encourage you to lean into these opportunities and help further if you can by contributing to INDEPAC for a better industry. INDEPAC is our collective voice in Austin. It allows us to support the Senators and State Representatives who understand and support our industry. Whether it’s defending against unnecessary regulations or promoting common-sense lending laws, INDEPAC helps to ensure lawmakers hear from the people who live and work in this industry every day — you and me!
TIADA offers something unique: education, advocacy, and a community that truly wants to see each other succeed.
Abilene Used Car Sales, Inc. (Abilene)
TIADA VICE PRESIDENT AT LARGE
Dear Member,
Dear Member,
Your TIADA Membership – Built for All 254 Counties
TIADA Membership Renewal No6ce
Texas isn’t just big — if it were a country, it would rank as the 8th largest economy in the world. And who keeps it moving? Independent dealers like you— small businesses working in all 254 counties, helping families stay on the road and fueling local economies from the Rio Grande to the High Plains.
As we close yet another year, the TIADA staff and our Board of Directors would like to thank you for suppor>ng your associa>on. Your commitment to the associa>on has enabled us to:
At TIADA, we exist for one reason: to connect, represent, and advocate for dealers across the Lone Star state. Whether you’re in a rural town, in one of our major metros, or somewhere in between, you deserve a statewide voice that’s always in your corner.
As we close yet another successful year, the TIADA staff and our Board of Directors would like to thank you for supporting your association. Your commitment to this Texas-sized community has enabled us to expand on several key programs:
• The Big Texas Tour — Dealer Town Halls, BHPH legal workshops, compliance education, and direct dealer support across Texas.
• Be Your Voice at the Capitol. This year, during the 88th Legisla>ve Session, TIADA worked closely with legislators to ensure favorable condi>ons for independent dealers throughout the state, especially in the transi>on away from paper temporary tags. Your membership really maGers and is the source of our strength at the Capitol so TIADA can con>nue to protect your interests now and in the future.
• Compliance Resources — Direct access to attorneys, not pricey professionals, for your toughest questions.
• Over 10,000 in Auction Savings — Instant inventory savings are redeemable through the TIADA App at 50+ auctions statewide.
• Industry Updates & Alerts — Timely news, insights, and information to help you stay compliant and competitive.
• Keep you abreast of what is happening in the industry through the Texas Dealer magazine, industry enewsleGer, and txiada.org. Whether it’s compliance, changes to state requirements, new products and services or best prac>ces, our goal is to make sure we are providing the industry informa>on you need in our ar>cles, blogs, and through our social media.
• Legislative & Regulatory Advocacy — TIADA advocates for you where it matters most — at the Texas Capitol, in D.C., and in your local community. You don’t have to leave your business to stay informed or protected. Our statewide network, trusted relationships, and professional staff ensure your voice is heard where policy gets made.
• Provide Professional Dealership Compliance Consulta6on. We are available and ready to take your phone call or email and assist you with that tricky compliance ques>on. We have a number of aGorneys working with us; If we don’t know the answer (and we usually do) we will find it for you.
• National & Local Chapters Access — No extra fees. TIADA membership includes access to national representation (NIADA) and participation in local chapters. In a state as large and diverse as Texas, no two counties are exactly alike. it takes all of us working together to serve every region — and we’re proud to be the only state with local chapters united under one unified association.
Remember that your membership can easily pay for itself by taking advantage of your member benefits, namely the TIADA Auc>on App, where our members have access to over $10,000 in buy/sell fee coupon savings at 50 par>cipa>ng auc>ons across Texas with the vast majority of them now accep>ng coupons for online as well as on-site purchases. With your renewal, you will receive your 2024 coupons right to your smart phone.
At TIADA, we believe in building communities — not silos. Together, we’ll continue delivering the tools, education, advocacy and resources you need to succeed. In 2026, we’ll continue expanding partnerships, staying closely engaged in local communities, and maintaining as the dependable support system our members can truly count on.
Simply put, TIADA is your associa6on, and we are here to protect your interests and commiHed to seeing you succeed for many years to come. Please do not hesitate to contact us if you have any ques>ons about your membership benefits: www.txiada.org/dealer_benefits.
Thank you for standing up with us. On behalf of the team here at TIADA — and as a fellow Texas dealer — I’m grateful for your continued support. Let’s keep moving forward to another great year — together.
My very best to you and your family this holiday season,
With appreciation,
Eddie Hale
2024 Membership Dues: $499 Login to your account at txiada.org to renew online
Interim Executive Director, TIADA, on behalf of Texas Independent Automobile Dealers Association
John Frullo
TIADA Execu>ve Director
Membership dues paid or gifts given to TIADA are not deductible as charitable contributions for income tax purposes but may be deducted as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20% of your dues dollar is used for lobbying activities and is therefore not deductible.
Company Name:
Contact Person:
Address:
Phone: Email:
Payment type (please check one): Check or money order (payable to TIADA) Credit Card
Credit Card # Sec. Code: Exp. Date Name on Card (please print):
Recruit new TIADA dealer members and earn cash, rewards and perks!
1 new member $100 and your name published in the newsletter.
3 new members $300 and your name published in the newsletter and the TIADA Texas Dealer magazine.
5 new members $ 500 and your name published in the newsletter and the TIADA Texas Dealer magazine, plus one (1) free night’s lodging at the TIADA 2026 conference.
new
20 new members
$1,000 and your name published in the newsletter and the TIADA Texas Dealer magazine, plus two (2) free nights lodging at the TIADA 2026 conference.
2 , 250 which includes all the Recruit 10 prizes, plus $1,250 in hotels, meals, travel, and expenses to ANY destination of your choice.
board of directors meeting minutes
Cambria Hotel Austin Uptown | Austin, TX
October 13, 2025
by TIADA Staff
Board Members in Attendance: Pepe Muñoz, Cesar Stark, Greg Phea, Greg Reine, Russell Moore, Tyler Simmons, Matt King, Cesar Torres, Harry Buchelly, Christina Sabillon, Lucas Ponder, Chad Lancaster, Lowell Rogers
TIADA Staff in Attendance: Eddie Hale, Earl Cooke, Shelby Kawejsza, Sheila Andrews and Aaron Minor
At its meeting on October 13, 2025, TIADA took the following actions:
President Greg Phea called the meeting to order at 1:00 p.m.
Minutes of Last Meeting
Secretary Stark presented the minutes from the last meeting.
A motion was made to accept the minutes.
Moved by Tyler Simmons, seconded by Greg Reine- PASSED
Treasurer’s Report
Treasurer Lowell Rogers presented the Treasurer’s Report.
A motion was made to accept the Treasurer’s report.
Moved by Tyler Simmons, seconded by Lucas Ponder - PASSED
President’s Report
President Greg Phea discussed the recent golf events in El Paso and San Antonio and his goals for his presidency.
Executive Director’s Report
Interim Executive Director Eddie Hale discussed the upcoming town halls, executive director search and staff.
Director of Regulatory Affairs Earl Cooke presented on his attendance at NIADA’s Policy Conference and
Recycler’s conference.
Director of Operations Sheila Andrews provided a membership update.
Interim Executive Director Eddie Hale presented an associate member update.
Director of Regulatory Affairs Earl Cooke presented an update on governmental relations and a INDEPAC update.
Treasurer Lowell Rogers presented the FY’25 Financial Results.
Treasurer Lowell Rogers presented the investment policy.
A motion was made to compensate the Interim Executive Director. Moved by Russell Moore, seconded by Cesar Stark - PASSED
A motion was made to adjourn the meeting.
Moved by Greg Reine, seconded by Cesar Stark – PASSED Greg Reine adjourned the meeting at 4:15 p.m.
Respectfully submitted, Russell Moore, 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.
legal corner
New Law Adds to Lien-Holder Protection In Liability Insurance Claims
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? And if I have to sue the insurance company, can I also claim my legal expenses?
Answer: Yes to both questions.
Texas law currently protects a vehicle-lien-holder’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-Here-Pay-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
by Michael W. Dunagan
TIADA COUNSEL
contract rights in the policy proceeds, and prevents the insurer from paying the insured for vehicle damage without including the lien holder.
Because 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 motor-vehicle 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.
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 the insurer 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 change in 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
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
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 in 2023 adds the following language to Chapter 61: “Sec. 61.006.
“mortgagee.”
ATTORNEY’S FEES. The prevailing party in an action to enforce this chapter is entitled to recover reasonable attorney’s fees.” This change further enhances the protections vehicle lien holders have enjoyed for many years.
Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for 50 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.
TIADA has active local chapters in the following areas: https://www. txiada.org/local_chapters
CORPUS CHRISTI
G.R. Moore
The Car Shack
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
EL PASO
Cesar Stark
S & S Motors
Meeting – 3rd Friday (Monthly)
FORT WORTH
Jerry Smith
H J Smith Automobiles
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
HOUSTON
Chris Donnelly
Your Car Store
Meeting – 2nd Tuesday (Monthly)
SAN ANTONIO
Nory Pakravan
210 Auto Credit
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
feature Garage Insurance: Where
by Ann Mullen-Martin
Do I Start?
Founder & Consultant, Mullen Insurance Agency
For 40+ years, I’ve worked with and for Texas independent auto dealers in designing their insurance programs. Every operation has its owner(s) DNA displayed somewhere in the business plan. Dealerships are unique, thus, the conundrum between insurance agents and dealers. Insurance programs should reflect Dealer needs, wants and budgets.
Anyone who sells more than five vehicles a year in Texas is a dealer and requires a $50,000 bond and minimum auto liability insurance of $85,000.
‘Garage Insurance’ is a term meaning different things to various dealers, as well as repair shops, heavy truck sales, motorcycle sales, among others. A Garage Insurance Package can include over twenty different protections,
allowing it to be built to individual needs from the most basic to the highly specialized. Liability is crucial, the heart of the coverage needed by every non-franchised dealer. Liability limits vary among the risk exposures, including how operations are set up, sole proprietorship, corporation, limited liability company or a partnership. Anyone who sells more than five vehicles a year in Texas is a dealer and requires a $50,000 bond and minimum auto liability insurance of $85,000. Dealer bonds typically do not protect you; they protect people with whom you do business. They apply to
bad titles, bad checks and/or drafts. If a dealer fails in any of these areas and a claim is made and paid under his bond, the bond company will demand reimbursement from the dealer. Bonds are not insurance — they are a promise that the bondholders will pay.
A garage policy typically includes two levels of liability: Premises, Operations and auto liability under conditions specific to the policy form used. When held responsible, the insured’s garage liability protects him by responding to the financial losses experienced by a third party and as outlined in the policy form.
Garage liability is the first insurance purchased by every astute Texas used auto dealer. It can save a business. Actual Claim: A dealer on a busy day trying to service too many customers at once. A friend (a customer) asks if his daughter may move a vehicle across the street. Dealer said ‘yes’; daughter, with no insurance, pulled out in front of an oncoming vehicle. Dealer’s policy had $85000 minimum limits, an amount almost gone before the injured passenger left in an ambulance and the lawsuit papers were on the way. As a sole proprietorship, both the business assets, as well as personal assets of this dealer were at risk.
Liability provides dealers with financial protection when held responsible for accidents on their premises. Actual claim: Customer, carrying a baby, tours an RV on a dealer’s lot. As he exits the RV, his sandals catch on the first step. Ultimately, dad and baby fall down the steps; the baby is injured. This dealer’s insurance policy paid $300,000 in contract limits and settled quickly.
My point is: Determine the liability limits necessary to protect your operation and provide peace of mind, before you consider the next layer of insurance.
TIADA Auction Directory
as of November 1, 2025
Save thousands on buy or sell fees at these participating auctions!
* VALID FOR SELL FEE ONLY AT IAA LOCATIONS ** ONLINE AUCTION AVAILABLE
GM: Scott Stalder Tuesday, 9:30 a.m./ Friday 10:00 a.m.
$AVE : $200
El Paso
AMERICA’S AUTO AUCTION EL PASO www.americasaa.com
7930 Artcraft Rd., El Paso, TX 79932
915.587.6700
GM: Judith Ayub Wednesday, 9:30 a.m. MST
$AVE : $200
IAA EL PASO* www.iaai.com
14751 Marina Ave., El Paso, TX 79938
915.852.2489
GM: Hector Escobar
Wednesday, 9:30 a.m. MST
$AVE : up to $200 Sell Fee
MANHEIM EL PASO** www.manheim.com
485 Coates Drive, El Paso, TX 79932
915.833.9333
GM: JD Guerrero
Thursday, 10:00 a.m. MST
$AVE : $100
Harlingen/McAllen
IAA M c ALLEN*
www.iaai.com
900 N. Hutto Road, Donna, TX 78537
956.464.8393
GM: Ydalia Sandoval
Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
BIG VALLEY AUTO AUCTION**
www.bigvalleyaa.com
4315 N. Hutto Road, Donna, TX 78537
956.461.9000
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
GM: Keyvan Nayeri
Wednesday, 9:30 a.m.
$AVE : $200
AMERICA’S AA HOUSTON**
www.americasaa.com
1826 Almeda Genoa Rd., Houston, TX 77047
281.819.3600
GM: Kyle Drake
Thursday, 1:00 p.m.
$AVE : $200
AMERICA’S AA NORTH HOUSTON**
www.americasaa.com
1440 FM 3083, Conroe, TX 77301
936.441.2882
GM: Buddy Cheney
Tuesday, 1:00 p.m.
$AVE : $200
AUTONATION AUTO AUCTION - HOUSTON**
www.autonationautoauction.com
608 W. Mitchell Road, Houston, TX 77037
218.506.3220
GM: Davis Cosmi
Friday, 9:15 a.m.
$AVE : $200
EBLOCK HOUSTON**
www.houstonautoauction.com
2000 Cavalcade Street, Houston, TX 77009
713.644.5566
GM: Rich Levene
Tuesday, 12:00 p.m.
$AVE : $200
IAA HOUSTON*
www.iaai.com
2535 West. Mt. Houston, Houston, TX 77038
281.847.4700
GM: Alvin Banks
Wednesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA HOUSTON NORTH*
www.iaai.com
16602 East Hardy Rd., Houston-North, TX 77032
281.443.1300
GM: Aracelia Palacios
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA HOUSTON SOUTH*
www.iaai.com
2839 E. FM 1462, Rosharon, TX 77583
281.369.1010
GM: Roxy Castillo
Friday, 9:30 a.m.
$AVE : up to $200 Sell Fee
MANHEIM HOUSTON**
www.manheim.com
14450 West Road, Houston, TX 77041
281.890.4300
GM: Nick Hanson
Tuesday, 9:30 a.m.
$AVE : $100
MANHEIM TEXAS HOBBY**
www.manheim.com
8215 Kopman Road, Houston, TX 77061
713.649.8233
GM: Darren Slack
Thursday, 9:00 a.m.
$AVE : $100
Longview
ALLIANCE AUTO AUCTION LONGVIEW**
www.allianceautoauction.com
6000 SE Loop 281, Longview, TX 75602
903.212.2955
GM: Rocky Campbell
Friday, 9:30 a.m.
$AVE : $200
IAA LONGVIEW*
www.iaai.com
5577 Highway 80 East, Longview, TX 75605
903.553.9248
GM: Ulysses Else
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee Lubbock
AMERICAS AA LONE STAR LUBBOCK**
www.americasaa.com
2706 E. Slaton Road., Lubbock, TX 79404
806.745.6606
GM: Dale Martin
Wednesday, 9:00 a.m
$AVE : $75/Quarterly
IAA LUBBOCK*
www.iaai.com
5311 N. CR 2000, Lubbock, TX 79415
806.747.5458
GM: Chris Foster
Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee Lufkin
GREATER LUFKIN AUTO AUCTION
www.greaterlufkinaa.com
2109 N. John Reddit Dr., Lufkin, TX 75904
936.632.4299
GM: Mitchell Connor
Thursday, 5:30 p.m.
$AVE : $200
Midland
Odessa
IAA PERMIAN BASIN*
www.iaai.com
701 W. 81st Street, Odessa, TX 79764
432.550.7277
GM: Louis Cappi
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
San Antonio
AMERICA’S AUTO AUCTION
SAN ANTONIO** www.americasaa.com
13510 Toepperwein Rd., San Antonio, TX 78233
210.298.5477
GM: Brandon Walston Tuesday, 9:00 a.m
$AVE : $200
ADESA SAN ANTONIO** www.adesa.com
200 S. Callaghan Rd., San Antonio, TX 78227
210.434.4999
GM: Clifton Sprenger Thursday, 9:00 a.m.
$AVE : $200
IAA SAN ANTONIO* www.iaai.com
11275 S. Zarzamora, San Antonio, TX 78224
210.628.6770
GM: Paula Booker Monday, 9:30 a.m.
$AVE : up to $200 Sell Fee
MANHEIM SAN ANTONIO** www.manheim.com
2042 Ackerman Road, San Antonio, TX 78219
210.661.4200
GM: Sandra Santas Wednesday, 9:00 a.m.
$AVE : $100
Tyler
GREATER TYLER AUTO AUCTION** www.greatertyleraa.com
11654 Hwy 64W, Tyler, TX 75704
903.597.2800
GM: Daylon Waynick Thursday, 2:30 p.m.
$AVE : $200
Victoria
VICTORIA AUTO AUCTION** www.victoriaautoauction.com 835 Industrial Park Drive, Victoria, TX 77905 361.576.0058
GM: Shelly Griffin Thursday, 11:30 a.m.
$AVE : $100
Waco
ALLIANCE AUTO AUCTION WACO** www.allianceautoauction.com 15735 I-35 Frontage Road, Elm Mott, TX 76640 254.829.0123
GM: Christina Thomas Friday, 9:45 a.m.
$AVE : $200
Wichita Falls
DAX of WICHITA FALLS**
www.daxofwichitafalls.com
2206 Sheppard Access Rd., Wichita Falls, TX 76306
940.720.0435
GM: Lisa Shelton
Every Other Wednesday, 5:00 p.m.
$AVE : $200
feature
Year End Accounting and Tax Update: Key Changes Dealers Should Know
by Steven Carstens, CPA Shilson Goldberg Cheung & Associates, LLP
As we near year end, dealers should start to think about how tax and accounting changes may affect their business. 2025 had some tax changes with the One Big Beautiful Bill Act but luckily general accounting rules had no major changes this year. Accounting rules saw significant changes with Revenue Recognition in 2021, Leases in 2022 and Current Expected Credit Losses (“CECL”) in 2023, so no major accounting rule changes for 2025 is a nice break.
The One Big Beautiful Bill (“OBBBA”) was signed into law in July 2025 and renewed many tax provisions that were expiring and added additional tax provisions. Some of the key provisions affecting dealers are as follows:
2017 Tax Cuts and Jobs Act
Firstly, the OBBBA make many of the 2017 Tax Cuts and Jobs act permanent including the larger standard deduction, larger child tax credit, lower ordinary individual tax rates. Perhaps more important for dealers is
the QBI deduction, which was made permanent by the OBBBA and allows owners of pass-through entities (S Corporation, partnerships and Sole Proprietors) to deduct up to 20% of their business income on their personal return. The QBI deduction is an important deduction for dealers as most dealers are setup as a pass-through entity. If, however a dealer is setup as a C corporation, the tax rate on a C corporation remains low at 21%.
Green Energy Tax Credits
The OBBBA ends almost all green energy tax credit including credits on energy efficient appliances, solar and electric vehicles. Dealers were even able to claim tax credits for the sale of used EV’s but those programs, along with tax credits for new EV’s, are ending.
Bonus Depreciation
The OBBBA allows up to 100% bonus depreciation on short-lived fixed assets such as equipment and heavy
vehicles. This can be a great tax deduction for dealers who needed to buy new equipment anyway, but I would never advise buying unnecessary equipment or vehicles just to get a tax deduction. Bonus depreciation does not apply to long term assets such as land and buildings but can apply to certain building improvements (Qualified Improvement Property) with a recovery period of under 20 years.
Net Operating Loss Carry Forward
Net operating losses continue to be capped at 80%, meaning that if a dealer has net operating losses from a prior year, they may only utilize 80% of those losses and 20% of the dealer’s current income will remain taxable.
SALT Deduction
The 2017 Tax Cuts and Jobs Act limited the deduction of state and local taxes (“SALT”) to $10,000 which caused significant problems for individuals living in states with high state income taxes. OBBBA temporarily increases this deduction to $40,000 which should help tax payers in those states.
Auto Loan Interest Deduction
Consumers who finance a new vehicle that was final assembled in the United States, may claim an additional
tax deduction for the interest paid on that auto loan. Unfortunately, this deduction does not apply to used vehicle financing.
No Tax on Overtime
OBBBA allows a deduction of up to $12,500 of overtime compensation when calculating an individual’s taxable income. This deduction is temporary through 2028 and adds some complex reporting requirements to employers and employees for correctly tracking and reporting hours worked.
1099 Reporting
Starting in 2026, the threshold for 1099 non-employee compensation will be raised from $600 to $2,500 which will help reduce the number of 1099’s a business needs to issue each year.
Ultimately the OBBBA didn’t have any massive tax reduction provisions, but rather kept the status quo. Dealers should contact their tax professional now to discuss any tax deferral strategies that could be implemented by year end and ultimately existing tools like related finance companies and reinsurance companies continue to be the best tax deferral strategies that exist.
shilson, goldberg, cheung & associates, llp
As a full service accounting firm, we combined the services of experienced professionals to offer value-added services to individuals & businesses nationwide.
As experts in the auto industry, we offer unrivaled services to retail and bhph auto dealers across the USA.
WHY WE ARE INDUSTRY EXPERTS
The auto industry is highly competitive and requires specialized industry knowledge, systems, and capital to be successful. Since 1985, SGC has served the auto industry throughout the nation with a special emphasis on used car operations. Today, our clients include more than 500 of the nation's largest and most profitable automotive dealers and finance companies, with a particular emphasis on buy here, pay here.
Since 1989, our firm has pioneered the use of related finance companies and other favorable tax reduction strategies for used car dealers. SGC has helped dealers raise hundreds of millions of dollar in capital and lines of credit since 1990. Our current focus continues to be on capital formation, tax-reduction strategies, accounting and tax compliance and cutting-edge information technologies to help dealers achieve operating efficiency.
The Power of Membership.
Since 1944, TIADA has been and continues to be the only statewide organization for independent automobile dealers. You are connected with more than one thousand independent automobile dealers across Texas, who are all committed to creating a better image for the industry, while protecting our rights as business owners and increasing our bottom line. Individually, you are strong, but together, as an association, we are powerful .
Get involved with the association’s advocacy efforts, find out what policies may be affecting used car dealers. Have a say, make a difference.
Join other successful dealers. Membership dues include full membership to TIADA and the national association, NIADA.
Connect with industry leaders. Attend the annual TIADA Conference & Expo, access the member-only online directory.
Education offerings designed with you in mind, your personal copy of the Texas Dealer magazine, twice monthly industry updates, exclusive access to industry articles—a wealth of knowledge at your fingertips.
The perks are many, starting with over $10,000 in auction and vendor savings through TIADA’s mobile app. Redeem just a few auction discounts and you’ve basically covered the cost of membership for the year.
Get quick answers on industry, regulatory or compliance issues.
www.txiada.org/dealer_benefits
by TIADA Staff
How collaboration, advocacy, and community connection continue to define TIADA and its members.
The Power of Texas Independent Dealers Working Together
Together on the Road Ahead
Across Texas, independent dealers share one enduring truth: success is never achieved alone. From the Gulf Coast to the Panhandle, their businesses and communities thrive on shared experience, mutual respect, and a willingness to help one another.
“We’ve got dealers in every corner of the state — and we all share the same drive to help each other.”
TIADA Member, DFW area
Since its founding in 1944, the Texas Independent Automobile Dealers Association (TIADA) has embodied that spirit. What began as a handful of entrepreneurs who believed small dealers deserved a voice has grown into a statewide movement representing thousands of professionals.
As TIADA enters another membership renewal season, one thing is clear — our greatest asset isn’t a program or a policy: it’s our people.
Robert Gragg, Wichita Falls, TX
Baldomero Treviño, Brownsville, TX
Johnnie Geary, TIADA President, 1958 –Fort Worth, TX
By the Numbers By the Numbers
Texas Dealers Network
314,000 MILES OF PUBLIC ROADS AND HIGHWAYS — THE MOST OF ANY U.S. STATE
254 COUNTIES REPRESENTED BY TIADA MEMBERS
268,597
SQUARE MILES OF LAND — A VAST NETWORK, ONE COMMUNITY
1944 THE YEAR TIADA WAS FOUNDED
25 Million+ REGISTERED VEHICLES ON TEXAS ROADS
“The best part of being a TIADA member is knowing you’re never really alone on the road.”
TIADA Member, Brownsville
Thousands OF MEMBERS STRONG, SPANNING EVERY REGION OF THE LONE STAR STATE
Stephen Barrett, Rowlett, TX and Greenville, TX
“You can be miles apart, but still side by side in this association.”
TIADA Member, Central Texas
Members who show up. Members who share. Members who stay engaged because they believe in something bigger than themselves.
“When you join TIADA, you’re not just joining an association,” said a Central Texas dealer. “You’re joining a community that understands exactly what you face — and stands beside you.”
From 1944 to the 1980s — Passing the Keys
TIADA’s story began with connection. In the mid-1940s, a small group of independent dealers met to protect fairness and integrity in auto sales. They drafted bylaws, swapped stories, and set a standard that business should be done with honesty and collaboration.
By the 1960s and 1970s, that early vision had spread across Texas through newsletters, local meetings, dealer town halls, at auctions, or at their first BHPH compliance workshops. Members began forming lifelong friendships — proof that unity worked.
When the 1980s arrived, a new generation took the wheel. Many of the members still active today joined during this pivotal decade, including dealers like Stephen Barrett, whose father started their family dealership in the mid-1980s. Like so many others, Barrett saw TIADA as more than an association — it was an essential part of learning how to run a business grounded in ethics, advocacy, and relationships.
“TIADA taught me this isn’t just about selling cars — it’s about helping people,” said Barrett, VP and GM at Barrett Motors. “That perspective has shaped everything about how we operate.”
Why They Joined — Finding a Place to Belong
For many dealers, joining TIADA started as a search for answers — about compliance, financing, or changing regulations. What they found was a network that felt like family.
Dealers across generations remember being new to the business — often nervous, uncertain, and full of questions. And each time, they found open arms and shared wisdom.
“TIADA helped me connect with others who had been where I was,” said Justin Browning of Browning’s Reliable Cars & Trucks in Wichita Falls. “It gave me the confidence to grow my business and understand
Different cities, same destination: Texas dealers supporting each other through one powerful network.
Don & Stephanie Bostick, Brownswood, TX
Justin Browning, Wichita Falls, TX
Nathan Maresh, Lampasas, TX
Dealer Academy Repossession 101: What You Need to Know
This is a video course with
Michael W. Dunagan
TIADA General Counsel, author of Dealer Financing of Used Car Sales and Texas Automobile Repossession: A Lien Holder’s Legal Guide
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 selfhelp 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.
• Preliminary Considerations Before Repossession
• When is a Customer Considered in Default
• Avoiding Liability from Repossession
• Types of Disposition
• Required Notices to the Debtors
• Handling Personal Property
• Using the Courts to Get Your Car Back Registration $98 for two 1-hour videos
Visit txiada.org/on _ demand for more information.
what it meant to be a Texas dealer.”
Others shared that their TIADA membership began with a simple recommendation from a mentor, a phone call from a fellow dealer, or an invitation to a chapter meeting. These moments sparked careers and created lifelong bonds.
The Value of Belonging — Collaboration in Action
TIADA is built on more than information — it’s built on action and advocacy. For decades, dealers have relied on the association not just for guidance, but for strength.
Barrett recalls attending his first local chapter meeting and immediately being welcomed by respected dealers. Before long, he was serving on the board, helping lead advocacy efforts in response to class-action lawsuits threatening independent dealerships across the state.
“We came together, raised money, fought for each other, and won,” he said. “That was TIADA in action — dealers standing up for one another.”
That spirit still exists today. Members regularly call one another for help, share strategies for compliance, and offer mentorship to the next generation. They learn together through educational events, stay informed through Texas Dealer magazine, and show up when their voices are needed at the Capitol.
“TIADA is my best return on investment,” one member said. “It’s been there for me every step of the way — through policy changes, legal questions, and even natural disasters.”
Community in Motion — Strength on the Road Ahead
TIADA members are more than business owners — they are leaders in their towns and cities. From El Paso to Houston, San Antonio, the Rio Grande Valley, to Dallas, Lubbock, Wichita Falls to Abilene, they represent a deep network of generosity and valuable relationships and commitment.
Dealers like Browning and Barrett embody what it means to serve. Whether providing reliable vehicles to working families or helping craft legislation that protects ethical dealers, their work reflects the best of what TIADA stands for.
“This business has changed so much with technology,” Barrett said. “But the one thing that hasn’t changed is the power of relationships — and that’s what TIADA preserves.”
“We are relational,” he added. “It’s not just dealers helping dealers — it’s people fighting for something bigger than themselves.”
As the industry continues to evolve, members are clear: TIADA must keep growing, educating, and advocating, especially for newer dealers entering a rapidly changing market.
“We have to meet the next generation where they are — online, informed, and ready to make a difference,” said one member.
“Our strength is in our unity and our willingness to support each other.”
Moving Forward in 2026 Together
As dealerships close their doors each evening, from Houston to Amarillo, one thing remains constant: connection. The independent dealer community is built on relationships — members who believe that helping each other strengthens the whole.
Whether you joined TIADA last month or many years ago, your presence makes this association stronger. Each renewal, each new conversation, and each act of support builds momentum for everyone in the network.
TIADA’s story is one of shared progress — a reminder that our future is shaped by the connections we build and the actions we take together.
Now is the time to show up, get involved, and make your voice heard. Renew your membership, reach out to a fellow dealer, or volunteer your expertise — because every action strengthens our community.
Renew Your Membership — Strengthen Our Community
As we enter another membership renewal season, now is the time to reaffirm your commitment. Renew your membership, reach out to a fellow dealer, or volunteer your expertise. Every action you take strengthens our community and helps us advocate for the future of independent dealers in Texas.
Your renewal isn’t just a transaction — it’s an investment in a network that stands with you, advocates for you, and grows with you. Together, we are stronger. Let’s keep building a future defined by integrity, service, and connection.
Bobby West, Lubbock, TX
Johnny Daniels, Amarillo, TX
Nory Pakravan, San Antonio, TX
Welcome toTIADA
Joined August and September 2025
DEALER MEMBERS
Auto Republic Houston
Steve Wang 4430 Farm To Market 1960 W Rd, Houston, TX 77068
Dash Pre-Owned
David Carlson 1524 West Howard Ln, Austin, TX 78728
Arash Darvish Kojori 5802 North Fwy, Houston, TX 77076
Simply Motorsports, LLC.
Drew Roicki .......................................... 1103 W. Oak Estates Dr., San Antonio, TX 78260
Teravnt LLC
Juan Ariztmendy 27435 Oak Ridge North School Rd Building 3, Conroe, TX 77385
The Fud Trailer
Veronica Hernandez 5805 Callaghan Road Suite 101, San Antonio, TX 78229
VC Cars Austin/Austin Fine Cars
Amar Raza 16405 Terrace Drive, Austin, TX 78728
ASSOCIATE MEMBERS
CNP Technologies
Tommy Weeks 806 Tyvola Rd Ste 102, Charlotte, NC 28217
Mariner Finance
Jessica Mayes O’Bryant 12804 Gulf Fwy Suite 800, Houston, TX 77034
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.
Heroes I Know: Mike Dunagan
In his recent series for Texas Dealer, Mike Dunagan has looked back at people who shaped his career and the industry — including his piece on Marvin Ivy, a hero Mike knew, which referenced the movie A Beautiful Day in the Neighborhood to highlight Ivy’s quiet heroism and dedication.
In the spirit of that series, and with imitation being the sincerest form of flattery, I wanted to write this piece about one of my heroes: Mike himself. Over the past almost five years — roughly one-tenth of the time he’s served Texas independent dealers — he has been my mentor. For decades, he has been “the guy” for countless independent dealers — teaching them, guiding them, and stepping in when the round got tough. Writing about him is no easy task; his story is still being written every day through his mentorship and his invaluable knowledge base. A single article could never capture all that he has done for the industry and for those of us fortunate enough to learn from him.
by Earl Cooke TIADA DIRECTOR OF REGULATORY AFFAIRS
timing for a mentor who would become a real-life Mickey Goldmill to Texas independent dealers. He pushes his students harder than they push themselves, teaches the rules of the ring, and shows how to succeed through effort, perseverance, and heart.
I once called Mike feeling that I was too sympathetic toward dealers and worried that, as an advocate, I needed to be more objective. He reassured me that he too felt the same at times — that being empathetic wasn’t a weakness, even in a profession that demands objectivity. That conversation was a relief and a reminder of the balance Mike has always maintained: tough when necessary, but always guided by fairness and understanding.
A True Texan and Mentor
The Mickey Goldmill of Texas Dealers
If Mike were a character in a movie, he’d be Mickey Goldmill from Rocky — the grizzled, tough trainer with a no-nonsense exterior, hiding a deeply caring, dedicated mentor inside. Rocky came out on November 21, 1976, and Mike started at TIADA the next month — the perfect
He isn’t one for cowboy boots or a hat, avoiding the look of the “drug store cowboys” from his childhood — authenticity, grit, and practicality define his life and work. The wealthier kids were those with the boots and hats, but Mike’s upbringing was humble, working in pastures from time to time to earn a little pocket money. Long past those days, Mike still trains dealers with the same intensity Mickey Goldmill had while watching Rocky punch sides of beef in the meat locker, preparing for every round in the ring.
Over the years, Mike has developed a signature style with advice. Former TIADA President Keith Hagler once shared that years ago, after his wife kept disagreeing with Mike’s guidance, Mike called Keith and said, “Tell your wife it’s the law.” Today,
when someone calls for advice but clearly plans to ignore it, Mike simply says, “I’ll be interested to hear how that works out for you.” That’s classic Mike — tough love with a knowing grin, always there when TIADA needs him, just like a trainer in the corner.
Mike has also been there to protect dealers’ interests in courtrooms. In the early 2000s, when an attorney filed a class-action lawsuit against used car dealers over arbitration agreements, Mike headed the committee that ultimately had the lawsuit dismissed. Anyone who has dealt with a customer’s bankruptcy knows Mike is the foremost authority on fighting for the rights of lienholders.
That reputation even reached the U.S. Supreme Court. The late Justice Antonin Scalia, in a dissenting opinion, cited Mike’s expertise to highlight Chapter 13 bankruptcy issues. When Mike first read the opinion, he thought he’d accidentally mixed in papers from his desk — he couldn’t believe Scalia had actually referenced his work. Those of us who know Mike professionally aren’t surprised; despite not being a high-priced attorney, he’s like our members — always finding a
DIAMOND
NATIONALCORPORATEPARTNER
way to make it work and come out on top. His humility stands out just as much as his expertise: even after a Supreme Court justice cited him, he shrugged it off and returned immediately to helping the next dealer in trouble.
Training Every Dealer to Go the Distance
Mike has led more than 180 compliance classes across Texas and trained generations of dealers at chapter meetings. I’ve spoken with members who attended his early lunch-andlearn sessions; while not all agreed with him, many were genuinely concerned during breaks, joking, “We’re all going to jail!” — a reflection of the fact that they weren’t fully following the rules. Fortunately, thanks to Mike’s decades of effort, dealers today start from a much stronger compliance foundation, and his guidance has helped them get to where they need to be.
Over nearly fifty years with TIADA, he has been the guy in their corner for countless independent dealers — the one they turn to for guidance on federal and state regulations, legislative challenges, courtroom battles, and compliance training. He’s shaped Texas law so profoundly that dealers in other states often can’t believe some of the advantages Texas dealers enjoy — from requiring insurance companies to list lienholders to enabling deferred sales tax.
The Champion in Our Corner
Mike’s early pasture days are long behind him, and the closest he comes to a cow now is the sides of beef Rocky famously punched in training — a metaphor for the grit, preparation, and intensity he brings to his work. Whether mentoring, teaching, or navigating the toughest regulatory challenges, Mike’s combination of toughness, expertise, and humility has made him an irreplaceable guide for independent dealers across Texas.
Mike Dunagan is the Mickey Goldmill of Texas independent dealers: grizzled, tough, and steadfast, but deeply caring and committed to his students. He teaches, protects, and guides independent dealers through the challenges of their industry, proving you don’t need fancy tools or endless resources — just grit, integrity, and the will to keep swinging. After a long day of teaching, arguing, or advocating, Mike enjoys one simple luxury — a martini, shaken not stirred — a small ritual for a man who’s spent his life fighting for others.
The Final Tour: Learn from Mike
Much like George Strait, who has embarked on countless “final tours” but continues to perform for his fans, Mike Dunagan’s service to independent dealers is legendary. Who knows how much longer we’ll have the privilege of his mentorship? Make the most of it — attend one of our upcoming education seminars or the TIADA Conference & Expo, and learn directly from the man who has shaped Texas dealer compliance for nearly fifty years.
Mark your calendar for Keeping BHPH Dealerships Legal & Compliant: Arlington/DFW Workshop, January 12, 2026, and our annual TIADA Conference & Expo. These events are your chance to benefit from Mike’s decades of wisdom, experience, and guidance — a masterclass in the art of staying compliant and thriving in Texas independent auto sales.
feature Customer Personal Data in Today’s Cars: Privacy Challenges & Opportunities for Dealers
by Andrea Amico Founder & CEO of Privacy4Cars
Modern vehicles have evolved into sophisticated data collection devices, storing far more personal information than most drivers realize. Understanding what personal data remains in a vehicle after ownership changes is increasingly important for both privacy and security reasons, particularly as the automotive industry faces growing scrutiny from regulators and privacy-conscious consumers. Dealerships are meeting these growing privacy demands by offering new privacy personal data deletion services to their customers.
The Scale of Data Collection
Today’s vehicles are big, connected devices — akin to smartphones on wheels — and collect about 25 gigabytes of data per day during operation. To put this in perspective, the average smartphone user consumes about 5-10 gigabytes of data per month for all their apps, browsing, and streaming combined. Much of this data is
personal, non-public, and accumulates in various vehicle systems, primarily through the infotainment system when drivers connect their smartphones, manually enter information, or from the sensors installed to detect, observe, and measure occupants’ behaviors. Unlike data stored on phones or computers, most vehicle data is not encrypted, making it readily accessible to anyone with physical access to the vehicle.
Types of Personal Data Stored
When drivers utilize navigation, in-car apps, connect their smartphones to vehicles via Bluetooth or USB, or simply drive, the vehicle’s infotainment system downloads, syncs, and stores numerous types of personal information including:
Contact Information: Complete phone contact lists, including names, phone numbers, email addresses, and
associated profile photos get transferred to the vehicle’s memory.
Communication Records: Call logs showing incoming, outgoing, and missed calls with timestamps and duration are stored. In some vehicles, text message content and histories are also saved, creating a detailed record of personal communications.
Location Data: Vehicles store home and work addresses, frequently visited locations, saved destinations, and complete navigation history. This data can reveal daily routines, favorite places, and personal habits.
Access Credentials: Some vehicles store garage door opener codes, gate access codes, and even security system information when these features are integrated with the vehicle’s systems.
Media and Photos:
Depending on the vehicle and connection type, photos from connected phones may be cached in the vehicle’s storage, particularly if used for contact profile pictures or shared through the infotainment system.
Payment Information:
Vehicles with integrated payment systems for services like fuel, parking, or tolling may store payment card information or account credentials.
SOURCE: IMAGE BY DEBBIE “THE DATA DIVA” REYNOLDS, ORIGINALLY PREPARED
Biometric Data: Newer vehicles with driver profiles may store seat positions, mirror settings, climate preferences, and in some cases, voice recordings used for voice command systems.
Personal Data Persists In Cars Until You Delete It
Personal data typically remains in a vehicle indefinitely unless actively deleted. Simply unplugging the phones, reprogramming the keys, or even following legal procedures that document a change of ownership like selling a vehicle, returning a lease, or trading in a car do not automatically erase this information. The data survives these transactions and passes to the next owner or user.
Research by Privacy4Cars shows that 4 out of 5 used vehicles today are resold with the previous owner’s personal data still intact in the vehicle’s systems. This occurs because either dealers don’t make data deletion a mandatory step in their vehicle prep, or because the processes they set up are “best-effort” and subjective. Data deletion procedures vary significantly across different makes, models, years, and infotainment systems. There is no universal “factory reset” button, and the deletion process for one vehicle model may differ even from similar models of the same manufacturer. This variety is what leads to high error rates (typically 50% or more) even from dealer personnel who attempt to delete consumer data.
Automotive dealers stand in stark contrast to retailers of consumer electronics. As you may have experienced if you ever purchased a refurbished phone, laptop, or portable drive, it is their standard practice to wipe customer personal data from devices before resale. This is for compliance (leaving data on devices may be breaching data security and privacy laws), to meet standards (such as the National Institute of Standards and Technology, or e-Stewards’ ethical refurbishing and recycling), and for branding and commercial purposes. The automotive retail sector (particularly among independents) has not yet caught up to these modern data privacy expectations, making it an outlier in the consumer electronics/ IoT industry.
Risk Management in The Era of Privacy and Data Breaches
Your dealership is surely aware of the Safeguards Rule, and of the requirements and procedures to be in compliance. You may also have purchased cyber-insurance, which is increasingly expensive and comes with additional requirements for data security. What most dealers fail to recognize that the largest unencrypted database of customer data is parked on their lot - and they are inviting unauthorized parties (their personnel, potential clients) to access it all the time during test drives, with loaners, etc. Ignoring personal data in vehicles creates
several unmanaged risks and exposure:
Individual Privacy Risks: Previous owners may have their sensitive personal information exposed to subsequent owners or anyone with access to the vehicle. This information could potentially be used for identity theft, stalking, or other malicious purposes. The ease of access, requiring only the car key to retrieve unencrypted data, makes this risk particularly acute. We know of several cases of new owners of vehicles showing up at the homes of old owners (often customers too!) — sometimes with good intentions (e.g. asking for a second key), sometimes with malicious and criminal intent (from altercations to home invasions).
Dealership Liability:
For dealerships, vehicles in their possession, whether trade-ins, lease returns, or service loaners, may contain personal data from multiple previous users. This creates potential liability if that data is compromised or misused while in the dealership’s custody or post sale, as in the examples above, not to mention significant reputational harm.
Regulatory Exposure: Both State and Federal regulators have begun taking enforcement action in the automotive data security and privacy space. Many of those suits additionally alleged Unfair Acts or Practices, which can trigger statutory fines.
The Regulatory Landscape
In 2024, Texas Attorney General Paxton sued General Motors for sharing drivers’ precise location and driving behavior data without proper consent. AG Paxton continued lawsuits in the automotive space, suing insurer Allstate and its subsidiary Arity for unlawfully collecting, using, and selling driver data.
In January 2025, the FTC followed Texas’ lead and took action against GM, signaling that automotive data privacy has become a federal enforcement priority, as well.1
In summer of 2025, the FTC issued guidance specifically to automotive dealers to help them comply with the FTC’s Safeguards Rule. The FTC Safeguards Rule requirements extend to all customer data, not just information in dealership
management systems, but also sensitive personal data left in vehicles. Dealerships that fail to implement proper data protection procedures face regulatory risk.
Other states are also beginning to address vehicle data privacy through new legislation. New Jersey became the first state to require dealerships to offer data deletion services on
SOURCE: SBD AUTOMOTIVE, 2023
trade-ins, with enforcement now underway and penalties of $1,000 per vehicle for non-compliance. 2 While other states, including Texas, have not yet passed similar legislation, industry observers note that regulatory momentum is building. The Texas automotive dealer community has already begun emphasizing that data stored inside vehicles needs the
same protection as data stored in dealership systems.
TADA has to date issued two separate warnings, the last about a year ago, reminding dealers to take care of removing personal data stored electronically in the vehicle’s infotainment.
Rapidly Evolving Consumer Privacy Expectations
Consumer expectations around vehicle privacy are evolving rapidly. Two years ago, research by SBD Automotive showed that nearly 40% of vehicle shoppers consider data privacy “highly important” in their buying decision—even more critical than vehicle brand, body style, or infotainment features.
National research from later that year showed that 60% of consumers would choose a different vehicle if it offered better privacy protection. 3 That number is growing. In 2025, independent research indicates that now 87% of consumers would switch vehicles if they had better privacy and security assurances, with 35% willing to pay a premium for enhanced privacy protections. 4 ”The “privacy-conscious car buyer” is most likely the largest unaddressed and untapped market segment dealerships have.
Dealer Shifting with The Market, Too
For Texas independent dealers competing against franchised stores and national chains, consumer privacy services represent a golden opportunity to position themselves as trustworthy dealers who actually protect customer privacy.
For example, independent dealer Premier Autos of Lubbock showcases their customer privacy in-vehicle data deletion services right on their homepage to boost buyer confidence and increase trade-in capture rates.
Dealers using professional data deletion services report 4 to 10 times return on investment through direct revenue alone. But the benefits
Upcoming Events
TIADA DEALER ACADEMY
For online registration and information, see www.txiada.org
ON-DEMAND OFFERINGS
For a complete list of available ondemand education offerings, go to www.txiada.org/on_demand
Complying with the Safeguards Rule
Offered in English and Spanish
Repossession 101: What You Need to Know Video Course
The Basics of Transferring Titles
Offered in English and Spanish
The Deal Jacket
Offered in English and Spanish
Legal Reference Books
DMV REQUIRED COURSES
Texas Pre-licensing Education Course
TxDMV approved course to satisfy all training requirements for completing your application to obtain an independent dealer license or General Distinguishing Number (GDN).*
*For more information see Frequently Asked Questions
Access Dealer Education Course Resources
Curso de Educacion PreLicencia de Texas
Curso aprobado por el Departamento de Vehículos de Motor de Texas (TxDMV) y que cumple con todos los requisitos para completar la aplicación para obtener una licencia de dealer independiente, también conocida como el GDN (General Distinguishing Number).**
**Para mas información ver la sección de Preguntas Frecuentes
Acceso a los Recursos del curso educativo para los dealers.
Texas License Renewal Education Course
TxDMV approved license renewal education course (For renewal applicants licensed on or after September 1, 2009 whose ownership and management structure of the dealership has changed since the last renewal and the person who previously took the course is no longer with the dealership)
19 – 21 2026 TIADA Conference & Expo JW Marriott San Antonio Hill Country Resort and Spa San Antonio, TX
go far beyond service charges. You can:
Market your inventory differently
Win more trade-ins by offering data deletion as a free service that competitors don’t provide to draw people in the dealership
Generate fixed ops revenue through data deletion servicesa wanted service that customers are willing to pay for Reduce liability with documented proof that you properly deleted customer data
Boost customer loyalty by demonstrating you take their privacy seriously
Moving Forward
Vehicle data privacy sits at the intersection of growing consumer awareness, regulatory compliance, and business opportunity. For
Example of an independent dealer, Premier Autos of Lubbock, showcasing data deletion services on their homepage
Maximize Your Sales Potential with the TIADA CPO Program.
dealerships that establish strong privacy postures with reliable invehicle data deletion practices and communicate their privacy commitments effectively will differentiate themselves in an increasingly privacy-conscious market. Whether through enhanced customer trust, reduced liability risk, or new revenue opportunities on privacy services, addressing vehicle data privacy represents both a compliance necessity and a business opportunity for forward-thinking dealers.
4. Connected Car Cybersecurity Concerns AI & Performance Anxiety.” RunSafe Security. Auto Connected Car, August 2025. https://www. autoconnectedcar.com/2025/08/connected-carcybersecurity-concerns-ai-performance-anxiety/
Featured Courses
TIADA designed and implemented some important on-demand courses to give dealers quality educational programs they can access throughout the year. These programs are essential for dealers to stay compliant. They offer flexibility, so you can complete them according to your schedule. These courses are designed for any dealers with questions related to various regulations that affect their businesses.
Repossession 101: What You Need to Know
In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of self-help repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.
$ 98 for two 1-hour videos
The Basics of Transferring Titles *
Want to avoid having your title transfer paperwork rejected at the tax office? This online course is designed to walk you through the title transfer process and is best suited for people new to transferring titles or those who want to brush up on the basics. This course has been reviewed for accuracy by the Tax Assessor-Collectors Association of Texas.
$ 48 for the course * Also available in Spanish
behind the wheel
by Eddie Hale
Representing Texas at Every Level
Earlier this fall, several members of TIADA’s leadership joined independent dealers from across the country at the NIADA National Policy Conference in Washington, D.C.
While I couldn’t attend in person this year, I couldn’t be prouder of the Texas delegation that stood on Capitol Hill — advocating for the interests of our state’s independent dealers and putting Texas values front and center in every conversation.
This kind of representation matters. From inventory challenges to regulatory pressures, the issues we face in Texas are echoed nationwide — and it’s critical that lawmakers and federal agencies hear directly from the people keeping America on the road. But just as important as being at the table in D.C. is being on the ground here in Texas.
Whether you’re in Houston or Haskell, Decatur or Del Rio, El Paso or East Texas, TIADA is working to ensure every dealer has access to the tools, information, and
connections needed to run a compliant and successful business. This fall, we’ve launched the Big Texas Tour: a statewide dealer education and networking series where dealers have direct access to ask questions about the most pressing issues facing dealers today. This fall: we’ve partnered with TxDMV, local officials, and legal experts to bring real-time insights to dealers where they live and work — and in 2026, we plan to go even further across the state to continue hosting TIADA education workshops and events across the Lone Star State.
Your membership makes all this possible. TIADA isn’t just a subscription — it’s a network, a voice, and a partner in your business. When you renew, you’re supporting both grassroots education and top-tier policy representation — because in this business, you need both.
We’re proud to represent Texas — from the Capitol steps in Austin to the halls of Congress in D.C. And more importantly, we’re proud to represent you.
Thank you for your continued trust and support.
TIADA is a network, a voice, and a partner in your business. When you renew, you’re supporting both grassroots education and top-tier policy representation — because in this business, you need both.
