2025-2026 | Pub. 66 | Issue 1 OFFICIAL PUBLICATION OF THE TEXAS AUTOMOBILE DEALERS ASSOCIATION 2025 TADA BOARD MEETING MONTAGE BIG SKY BIG SKY, MONTANA, OCTOBER 5-6
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6 PRESIDENT’S MESSAGE Navigating Change in an Age of Discontent By Darren Whitehurst, President, TADA 8 2025 TADA Board Meeting Montage Big Sky — Big Sky, Montana, October 5-6 12 2026 TIME Dealer of the Year Nominee Robert M. Cavender San Antonio Dealer Honored With National Recognition 14 Sames Celebrates 115 Years 16 Huffines Celebrates 101 Years 18 Unemployment Claims Strategies to Combat the “Inability” Argument By Jikku John, Legal Counsel to TWC Commissioner Joe Esparza 20 TMI Honors San Antonio Dealer Ernesto Ancira Jr. 21 Pippen Motor Company Celebrates 50 Years With GMC 22 2025 TADA Leadership 26 Seven Unconventional Economic Indicators By Spencer Grubbs 29 One Big Beautiful Bill Act Tax Deductions for Working Americans and Seniors By NADA 31 Community News 36 Why Fraud in the Vehicle Transportation Industry Is on the Rise By Central Dispatch 37 Ethos Group 38 Point of Separation By Tim Marbut, Ethos Group 40 The Power of Perspective Transforming Attitudes in the Retail Automobile Business By Tim Marbut, Ethos Group 42 4 Steps To Creating a Culture of Compliance at Your Dealership By Ben Haile, SHRM-SCP, Ethos Group 43 Starting a Good Habit While Ending a Bad One By Ryan Anzalone, Ethos Group 45 How Well Are You Managing Your Service Providers? By Kaitlyn Paresi, Ethos Group 46 The Importance of Maximizing the F&I Dollar in a Market Where Front Gross is Compressed By Jacob Newman, Ethos Group Contents ©2025 Texas Automobile Dealers Association (TADA) | The newsLINK Group LLC. All rights reserved. Dealers’ Choice is published four times per year by The newsLINK Group LLC for TADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of TADA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Dealers’ Choice is a collective work, and as such, some articles are submitted by authors who are independent of TADA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. 8 Dealers’ Choice 29 Scan for a direct link to the TADA website. DEALERS’ CHOICE 4
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I heard a story recently that I think perfectly captures some of the challenges we face in politics today. At the federal level, the pace of change in leadership has been remarkable. Members of the U.S. House run for election every two years, Senators every six, and the President every four. Since 2005, at least one of these three branches has shifted leadership in 10 of the last 11 election cycles. During that same time, each President — Republican or Democrat — has only enjoyed unified party control in Congress during their first two years in office. Once the midterms hit, that alignment has consistently flipped, forcing every administration to navigate a divided government and political gridlock. The speaker who shared this story referred to our current era as the “Age of Discontent” and noted that this turbulence isn’t just an American phenomenon — it’s also evident in nearly every developed nation around the world. Here in Texas, the picture has looked quite different on the surface. Since 2005, all statewide elected officials have been Republican, and both chambers of the Texas Legislature have remained under Republican leadership. Our state government has provided a level of political stability that stands in contrast to the national scene. That said, Texas has undergone tremendous change beneath that steady surface. The Legislature still operates on a two-year cycle, meeting in odd-numbered years with elections in even years — but turnover has been significant. Today, only 3 of 31 Senators and 15 of 150 House members were serving back in 2005. At the same time, our population has grown from 23 million to more than 32 million residents. That kind of growth brings both opportunity and complexity, especially when it comes to ensuring policymakers understand the industries that drive our economy and support our communities. In my previous message, I encouraged each of you to take time to get to know your local elected officials — invite them to your dealerships, show them the work you do every day, and demonstrate firsthand the value you bring to your customers and your communities. That engagement is vital, especially now as we prepare for the next legislative session. One key focus area for the next session will be our continued efforts to ensure manufacturers fairly reimburse dealers for parts used in warranty and recall repairs. Under Texas law, the manufacturer is required to pay the franchised dealer for warranty work, just as a non-warranty customer would pay. Texas has a clear formula for labor, but not for parts. The lack of a parts formula has resulted in several manufacturers underpaying Texas dealers. And when that happens, it doesn’t just hurt the dealer, but trickles down to the technicians repairing the vehicles and ultimately the customer who waits longer for repairs. PRESIDENT’S MESSAGE Navigating Change in an Age of Discontent By DARREN WHITEHURST, President, TADA DEALERS’ CHOICE 6
Below is a QR code for a video featuring our 2025 TADA chairman, Tim Crenwelge, discussing the real-world impact of payments falling short — on employees, customers and operations alike. TADA is planning to share several future videos with you that reinforce the need for a fair payment system for parts. I would encourage you to take a moment to watch the video. If you are interested in filming your own video, please let us know. We would love to work with you. https://vimeo.com/1136941282 The interim period between sessions is an ideal time to build relationships and educate legislators, as they have more time to listen and learn. Most lawmakers have never had the opportunity to fully appreciate the complexities of the franchise system — and that’s where your voice and experience make all the difference. Our future success depends on ensuring legislators understand how the current franchise model benefits their constituents, supports local jobs, and keeps Texas consumers moving safely and efficiently. This is only one step in a long process, but every conversation matters. By staying engaged now, we’ll be better positioned for the 90th Regular Session in 2027 — and beyond. Thank you, as always, for your leadership, your advocacy and your commitment to strengthening the Texas dealer community. 7 DEALERS’ CHOICE
2025 TADA Board Meeting Montage Big Sky — Big Sky, Montana, October 5-6 DEALERS’ CHOICE 8
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San Antonio Dealer Honored With National Recognition The Texas Automobile Dealers Association (TADA) congratulates Robert M. Cavender, president of Cavender Buick GMC North in San Antonio, whose nomination for the 2026 TIME Dealer of the Year award was announced in October. Cavender is one of a select group of 47 dealer nominees from across the country who will be honored at the 109th annual National Automobile Dealers Association (NADA) Show in Las Vegas on Feb. 5, 2026. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The award recognizes the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Cavender was chosen to represent TADA in the national competition — one of only 47 dealers to be nominated for the award from more than 20,000 nationwide. 2026 TIME DEALER OF THE YEAR NOMINEE ROBERT M. CAVENDER DEALERS’ CHOICE 12
Cavender entered the family business after graduating from the University of Texas at Austin in 1977 and has led operations across the Cavender platform for more than four decades. In 1993, he launched Cavender Buick, transforming a struggling store into one of the region’s top-performing Buick dealerships. Today, as president of Cavender Buick GMC North, he oversees a team of 110 associates delivering award-winning performance, including GMC Mark of Excellence (2022-2023), GM Financial President’s Award (2022-2023) and Buick Dealer of the Year (2022). Bobby reminisces about his early days in the family business, often sharing memories of lunchtime conversations with his grandfather, father and uncle as he was getting his feet wet in the automotive world. “Those lunches taught me what the auto retail business is really about: respect, trust and taking care of people,” Cavender said. “That culture has been my compass from day one.” Under his leadership, Cavender Buick GMC North became one of the first GM image-compliant dealerships in San Antonio, setting a new standard for the guest experience. He oversaw the full modernization of one of the nation’s largest Buick/GMC facilities, creating a welcoming, state-of-the-art environment that reflects the Cavender family’s commitment to excellence. “We were proud to be early adopters of GM’s image program and rebuild our store around the guest,” Cavender said. “When you put people first, both in your team and your customers, performance always follows.” Looking back on a pivotal moment in his career, Cavender recalled, “At 38, I purchased a struggling Buick dealership. It wasn’t an easy path, but with perseverance, integrity, and a belief in our people and the brand, we turned it into something extraordinary. We proved that dedication and genuine care for the associates and customers can turn unlikely opportunities into lasting success.” Within the last year, Cavender’s team built Cavender Comparison, a service-drive vehicle acquisition platform. In its first month at two Buick GMC dealerships, it generated over 40 direct sales and acquisitions while enhancing the quality of pre-owned inventory. “It’s an informative, customer-first tool — real values, real options, no pressure,” he said. “And it’s already reshaping how we source great used cars.” At the heart of Bobby’s leadership is Cavender Cares, the company’s signature philanthropy program that has contributed over $2 million and thousands of volunteer hours to local charities. What makes Cavender Cares unique is its culture — employees genuinely enjoy giving back, often volunteering their own time to support nonprofit organizations across the community. In 2024, employees raised $100,000 to open an 8-bedroom Cavender Cares Wing at the Ronald McDonald House at Christus Children’s Hospital, then volunteered to build, furnish and stock the rooms. In 2025, following historic floods that struck the Texas Hill Country, the Cavender Cares team responded quickly to support recovery efforts. The group donated 100% of oil-change proceeds to Kerr County relief, raising over $50,000 and volunteering over 400 hours alongside local organizations. “When the Hill Country floods hit, we didn’t hesitate,” Cavender said. “Our team showed up in every way possible: donating, volunteering and doing whatever it took to help our community rebuild.” Under Bobby’s leadership, the Cavender Commitment was created to honor military families by providing free oil changes for life on vehicles purchased by active-duty or retired service members. The program reflects his deep gratitude and belief that giving back to those who protect our freedoms is simply the right thing to do. “To whom much is given, much is expected,” Cavender said. “Serving those who serve us is the right thing to do.” Dealers are nominated by the executives of state and metro dealer associations around the country. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will select one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists will receive $5,000 for their favorite charities, and the winner will receive $10,000 to donate to charity, courtesy of Ally. In its 15th year as exclusive sponsor, Ally will also recognize dealer nominees and their community efforts by contributing $1,000 to each nominee’s 501(c)(3) charity of choice. Nominees will be recognized on allydealerheroes.com, which highlights the philanthropic contributions and achievements of TIME Dealer of the Year nominees. “The TIME Dealer of the Year award honors automotive dealers who set the standard for excellence and community impact,” said Jessica Sibley, CEO of TIME. “Each year, we spotlight those whose dedication uplifts and inspires their communities. At TIME, we are proud to continue celebrating these extraordinary contributions in partnership with Ally.” Doug Timmerman, President of Dealer Financial Services, Ally, said, “The TIME Dealer of the Year award honors those exceptional dealers who not only excel in their business endeavors but also demonstrate a profound commitment to uplifting their communities,”Timmerman said. “These nominees embody the spirit of leadership and service, making a lasting impact both in their dealerships and beyond.” Cavender was nominated for the TIME Dealer of the Year award by TADA. He and his wife, Stephanie, have three children: Robert Jr., Abigail and Cornelia. 13 DEALERS’ CHOICE
Sames Celebrates 115 Years Sames Auto Group began with William J. (W.J.) Sames, who moved from Hartford, Connecticut, to Laredo, Texas, in 1890. Partnering with J.R. Moore, they formed the Sames & Moore Company, a wholesale warehouse business. They added Ford vehicles to their lineup in 1910, marking the first vehicles sold in the Laredo area. W.J. Sames took sole ownership of the automobile business in 1925. DEALERS’ CHOICE 14
Sames Auto Group has the unique status as a family-owned and operated business spanning five generations. Harry E. Sames Sr. managed the dealerships from 1940-1956; Harry E. Sames Jr. ran operations until 1981; Harry “Hank” Sames became general manager in 1981; and Evelyn Sames, Hank’s daughter, took over the business in 2010, marking the fifth generation of leadership. Throughout this lineage, the company has maintained a commitment to integrity, customer care and community service, sustaining its reputation and operational success. Sames Auto Group has expanded geographically into locations across South and Central Texas, including Corpus Christi, Bastrop, McAllen, Harlingen, Kingsville and Austin. In addition to Ford, they have added multiple franchises, including Lincoln, Honda, Chevrolet, Mazda, Kia, Ram, Chrysler, Dodge, Jeep and Nissan. Sames has adapted to the changing automotive landscape, including challenges such as recessions, the Great Depression and World Wars, as well as modern trends like electric vehicles and virtual dealer experiences. It stands today as a symbol of entrepreneurial resilience and community-focused leadership in the Texas automotive industry. 15 DEALERS’ CHOICE
Huffines Celebrates 101 Years Founded in 1924 by J.L. Huffines Sr., the Huffines Motor Company first opened its doors in Denton, Texas, where it sold Willys-Knight and Overland automobiles. Over the years, Huffines Auto Dealerships adapted through economic changes and challenges, including the Great Depression, when J.L. Huffines Sr. famously accepted livestock and farm tools in trade for vehicles. Following in his father’s footsteps, J.L. Huffines Jr. became a dealership owner in 1950, at age 27, after serving in the U.S. Army during World War II. As CEO and president, he significantly expanded the Huffines brand across various locations in North Texas, earning statewide and national recognition as an automotive industry leader. In 1984, J.L. Huffines Jr.’s son, Ray Huffines, became a dealership owner at age 31. He continues to grow the Huffines’s legacy, which now spans 10 dealerships offering multiple brands, including Chevrolet, Chrysler, Dodge, Jeep, Ram, Kia, Hyundai, Subaru and Genesis. The company has more than 900 employees and has been named one of the “Top Places to Work” by the Dallas Morning News 11 times. Today, Huffines Auto Dealerships is led by General Manager Sam Huffines, a fourth-generation dealer. Sam continues to implement the Huffines family’s founding principle and belief: When you help someone buy a vehicle, you have made a friend for life. DEALERS’ CHOICE 16
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Unemployment Claims Strategies to Combat the “Inability” Argument Among the most difficult unemployment insurance cases for an employer to win is one involving a discharge for poor performance, or inability to perform to the employer’s performance expectations. This article provides basic tools that employers can utilize in unemployment cases involving inability. What constitutes inability in the unemployment context? Generally, the employer must demonstrate misconduct related to the work to prevail on an unemployment claim in the case of discharge. Misconduct under the law is basically something that the claimant did, or failed to do, that 1) caused a problem for the company, 2) was in violation of a rule, policy or law, and 3) was within the claimant’s power to control or avoid. Cases involving inability generally fall under the third prong, in that a claimant cannot be penalized if they were never able to meet the employer’s performance standards. TWC Commission precedent has held that “where a claimant has performed her work to the best of her ability, her inability to meet the employer’s standards or inability to perform the work to the employer’s satisfaction does not constitute misconduct connected with the work.” (Appeals Policy and Precedent Manual, Appeal No. 1456-CA-77.) How can I counter an argument involving inability? To successfully counter a claim that an employee was unable to perform their job, employers must demonstrate that the employee was previously capable and subsequently experienced a decline in performance. This can be achieved by presenting evidence such as positive performance reviews, salary increases, promotions and supervisor observations that illustrate the employee’s past ability to perform the job satisfactorily. Crucially, the employer must also demonstrate that the employee’s performance subsequently fell below this demonstrated capability by providing specific examples, such as neglecting quality checks, disregarding instructions or exhibiting excessive absenteeism. The employer must demonstrate that job By JIKKU JOHN, Legal Counsel to TWC Commissioner Joe Esparza DEALERS’ CHOICE 18
What if the claimant was not a good fit? In situations where it becomes clear early on that an employee is not a good fit, the employer should consider whether it would be in the best interest of the company to sever the employment relationship early, rather than keeping the employee on, knowing they will not be a good fit. By firing early, the employer limits the taxable wages paid to the employee and may also limit a large chargeback resulting from an unemployment claim. Conclusion Although inability cases can be challenging to overcome, the employer can limit or eliminate the negative consequences arising from a claim of inability by asserting an appropriate defense or effectively managing the job separation. For questions about this issue or any other employment-related matters, employers can call our employer hotline at (800) 832-9394 or email us at employerinfo@twc.texas.gov. Every Choice Matters – Choose Federated® DriveSAFESM Federated DriveSAFESM Telematics can help your employees improve their daily driving habits. This combination of mobile app, in-vehicle tag, and online portal allows you to measure, rank, and provide feedback on employee driving behaviors so you can help them become safer drivers. Scan to learn more about Federated DriveSAFESM Telematics and how you can help your employee drivers stay safe behind the wheel. Federated Mutual Insurance Company and its subsidiaries* federatedinsurance.com | *Not licensed in all states. 25.08 Ed. 1/25 © 2025 Federated Mutual Insurance Company The content of this publication is for general information purposes only and should not be considered legal advice or an offer of insurance. Coverage will be determined solely by the terms of your policy, if approved for issue. Consult with a qualified professional to discuss questions specific to your circumstances. Helping Your Employees Stay Safe Behind The Wheel standards remained consistent with the employee’s demonstrated abilities and that any changes to job duties or supervisors were not substantial enough to negatively impact performance. What about a claimant’s failure to perform nominal work tasks? Another situation involving inability arises when the work is so simple that anyone should be able to perform the job. This argument arises from a longstanding Commission precedent, where the claimant, a cafeteria dishwasher, alleged an inability after the employer repeatedly found food particles and mildew on pots and pans that the claimant had washed and returned to the storage rack. The Commission held that “[w]here the work is not complex, an employee’s failure to pay reasonable attention to simple tasks is misconduct.” (Appeals Policy and Precedent Manual, Appeal No. 96-003785-10-031997.) This argument is less effective with more complex jobs. However, employers can strengthen their position by focusing on specific, straightforward sub-tasks within a more complicated role. For instance, simply citing “poor performance” for a salesperson who fails to generate clients is insufficient. However, suppose the employer can demonstrate that a specific requirement, such as making a certain number of daily calls, was consistently neglected despite warnings. In that case, the employer has a much better chance of overcoming the argument of inability. 19 DEALERS’ CHOICE
TMI Honors San Antonio Dealer Ernesto Ancira Jr. San Antonio auto dealer and businessman Ernesto Ancira Jr. was honored with the Entrepreneur and Innovation Award by TMI Episcopal, formerly known as the Texas Military Institute, on Oct. 7. TMI’s Entrepreneur and Innovation Award recognizes entrepreneurship and innovation in collaboration with the school’s commitment to excellence, service and leadership. The award is presented annually to an individual who not only demonstrates success in entrepreneurship and innovation but also embodies the core values of the school: wisdom, integrity, service, excellence and reverence. Ernesto Ancira Jr. is an entrepreneur and community leader with a long legacy. After growing up in Mexico City, he graduated from St. Edward’s University and gained leadership experience at Gillette and Kimberly-Clark. In 1972, a stop in San Antonio led him to recognize the need for Hispanic-owned dealerships in the area, and he met that need by establishing Ancira Enterprises. Starting from a modest location, Ernesto expanded the business into a major automotive group, comprising 13 brands, 12 dealerships and over 800 employees. Ancira Auto became the region’s first Hispanic-owned, Spanish-speaking and minority-run dealership, as well as one of the most recognizable brands in South Texas. Beyond business, Ernesto has held leadership roles with TADA, the Texas Department of Commerce and the San Antonio Economic Development Board. Honored by the San Antonio Hispanic Chamber of Commerce and the San Antonio Business Hall of Fame, he exemplifies entrepreneurship and civic dedication. A former student of TMI, he now proudly supports the school as a TMI grandparent to Gunnar Thompson, Hope Thompson and Henry Richardson. During his remarks at the award luncheon, Ernesto said, “If this recognition means anything, let it be a reminder that true success is never solitary. It’s shared, it’s nurtured and it’s passed forward.” DEALERS’ CHOICE 20
Pippen Motor Company Celebrates 50 Years With GMC Pippen Motor Company, a family-owned dealership in Carthage, Texas, recently celebrated 50 years as an official GMC dealership. The milestone was recognized with an event attended by General Motors representatives, local staff and community members. The company was founded in 1951 by Billy Burt Pippen and has been family-owned for three generations. The business has been a long-time supporter of the local community, with a history of involvement in events such as car shows and blood drives. Congratulations to them on their impressive milestone! 21 DEALERS’ CHOICE
2025 Executive Committee Tim Crenwelge CHAIR Bryan Case Sr. IMMEDIATE PAST CHAIR 2025 TADA Leadership Greg Bruner CHAIR-ELECT NORTHWEST John Luciano Vice Chair District Directors 28 Dylan Otts 30 Patrick Sykora 31 Cory Dupriest NORTH Stephen Gilchrist Vice Chair District Directors 10 Tony Pack 22 JJ Williams-Contreras 23 Jose Pozos 34 Sherri Herring NORTHEAST Jeff Rachor Vice Chair District Directors 1 James Bennie 8 Scott Fly 9 Finley Ewing IV 35 John Lukehart WEST Shae Woodard Hall Vice Chair District Directors 16 Kenny McCarty 25 Jimmy Bass 29 Bill Pollard Jr. 32 Drew Hoy CENTRAL Paula Lohse Vice Chair District Directors 11 Julie Herrera 12 Mike Zorn 13 Mary Karr-Ellis 14 Scott Stark EAST Fernando Varela Vice Chair District Directors 2 Tim Capps 3 Joe Loving 4 Robert Turner 7 Ashley Willson SOUTHEAST Roger Elswick Vice Chair District Directors 5 Jason Feldman 6 Kyle Janke 15 David Haas 33 Tony Gullo Jr. SOUTH Evelyn Sames Vice Chair District Directors 17 Melissa DeMontrond 18 Chris Wall 20 Jennifer Yoder 27 Natasha del Barrio SOUTHWEST Ryan Kirkpatrick Vice Chair District Directors 19 Carlos Liriano 21 Pat Schuchart 24 Joseph Shields 26 Jeff Kahlig DEALERS’ CHOICE 22
DIRECTORS AT-LARGE Car Dealers • C.J. Barnett • Benny Boyd • Bently Durant • T. Harper • Mark Stevenson • Brandon Tomes Truck Dealers • James Bennie METRO CHAIRS • James Bagan • Shawn Barry • Don Herring Jr. • Brent McGavock • Jeff Pester • Sam Tijerina • Steven Wolf Brian Bruckner TEXAS TRUCK DEALER CHAIRMAN Karen Phillips TADA GENERAL COUNSEL AND EXECUTIVE VICE PRESIDENT Darren Whitehurst TADA PRESIDENT 32 29 16 25 31 30 28 9 8 1 2 7 3 4 17 18 20 27 5 33 6 24 21 26 19 12 13 11 14 15 34 23 22 10 35 23 DEALERS’ CHOICE
Robert TURNER Jason FELDMAN Kyle JANKE Ashley WILLSON Tim CAPPS Joe LOVING East, Dist. 4 East, Dist. 3 East, Dist. 2 Northeast, Dist. 1 Southeast, Dist. 5 Southeast, Dist. 6 East, Dist. 7 Scott FLY Mike ZORN Mary KARR-ELLIS Scott STARK Finley EWING, IV Tony PACK Julie HERRERA North, Dist. 10 Central, Dist. 11 Northeast, Dist. 9 Northeast, Dist. 8 Central, Dist. 12 Central, Dist. 13 Central, Dist. 14 JJ WILLIAMS-CONTRERAS Jeff KAHLIG Natasha DEL BARRIO Dylan OTTS Jose POZOS Joseph SHIELDS Jimmy BASS Southwest, Dist. 24 West, Dist. 25 North, Dist. 23 North, Dist. 22 Southwest, Dist. 26 South, Dist. 27 Northwest, Dist. 28 Bill POLLARD, JR. Tony GULLO JR. Sherri HERRING John LUKEHART Patrick SYKORA Cory DUPRIEST Drew HOY Northwest, Dist. 31 West, Dist. 32 Northwest, Dist. 30 West, Dist. 29 Southeast, Dist. 33 North, Dist. 34 Northeast, Dist. 35 Jeff PESTER James BENNIE Shawn BARRY T. HARPER Brent MCGAVOCK Mark STEVENSON Steven WOLF Bently DURANT Don HERRING JR. Brandon TOMES James BAGAN Sam TIJERINA Benny BOYD Metro Chair Director-At-Large Metro Chair Director-At-Large Metro Chair Metro Chair Director-At-Large Metro Chair Director-At-Large Metro Chair Director-At-Large Metro Chair Director-At-Large Melissa DEMONTROND Kenny McCARTY Carlos LIRIANO Jennifer YODER Pat SCHUCHART Chris WALL South, Dist. 17 South, Dist. 18 West, Dist. 16 Southwest, Dist. 19 South, Dist. 20 Southwest, Dist. 21 2025 District Directors David HAAS Southeast, Dist. 15 C.J. BARNETT DEALERS’ CHOICE 24
OUR CENTRAL/WEST TEAM ERIC LEVITT Vice President, Partner eric.levitt@dsma.com 702.764.8385 GARY SWARTZ M&A Associate gary.swartz@dsma.com 925.858.1204 CODY CANTU Regional Director, Texas cody.cantu@dsma.com 415.264.9006 For more information, or to learn more about our 100+ opportunities, visit DSMA.com. NOAH TRUBO M&A Associate noah.trubo@dsma.com 971.469.7693 SELLING YOUR DEALERSHIP? DON’T LEAVE MONEY ON THE TABLE. 97% OF OUR LAST 50 DEALS WERE SOLD AT ASKING PRICE OR HIGHER. SCAN THE QR CODE OR CALL 1-833-650-4188. DSMA IS THE #1 GLOBAL AUTOMOTIVE MERGERS & ACQUISITIONS FIRM.
Seven UNCONVENTIONAL Economic Indicators By SPENCER GRUBBS This article initially appeared in Fiscal Notes, an economic publication by the Texas Comptroller of Public Accounts, and is reshared here with permission. Cardboard box production or sack lunches aren’t typical measures of state and national economies. It’s much more common to consult statistical reports from federal agencies like the Bureau of Labor Statistics, Bureau of Economic Analysis and Census Bureau for precise and dependable data that inform wide-ranging policy and spending decisions. But these reports are usually released once a month at most, and those studying the economy may need more frequent updates to keep their fingers on the pulse of the economy. That’s where unconventional economic indicators come in. During the height of the pandemic, for example, the Comptroller’s office examined factors including airline travel and restaurant reservations to continuously monitor real-time trends. The following indicators, as unofficial and unusual as they are, could preview our economic position long before we see the bigger picture from official reports. Wasn’t Born in Texas, but Got Here as Fast as I Could U-Haul tracks migration trends to and from every U.S. state and Canadian province, compiling data from more than 2.5 million one-way truck, trailer and portable moving container transactions annually. In 2024, the moving company ranked Texas as the state with the second-highest growth rate, based on the difference between the percentage of annual arrivals (50.3%) and departures (49.7%). Dallas-Fort Worth-Arlington was the top metro for growth in 2024, according to these data. Domestic migration helps fuel the state’s economy, as many people moving here are younger and more educated DEALERS’ CHOICE 26
than the overall population, and can therefore boost Texas’s workforce. Sack Lunching Although slow to recover from pre-pandemic levels, office occupancy is on the rise as more people return to traditional work schedules. But many of those workers are not returning to “lunching out” frequently during the work week. Circana, an analytics and technology company, found that lunchtime traffic at food establishments decreased from 2023 to 2024, while purchases of food at grocery stores increased. These data suggest that more office workers are lunching on food from home as a way to save money. This begs the question: Is a breakroom refrigerator stocked full of brown bag lunches a sign that the economy’s in a slump? Thinking Outside the Box Some economists believe cardboard box production is a strong indicator of the economy’s health. When cardboard box production is up, they say, so is the economy, because demand for boxes is often directly related to consumer spending. The Federal Reserve Bank of St. Louis tracks the consumer price index by industry, including “Corrugated and Solid Fiber Box Manufacturing.” These data show that box manufacturing dipped in late 2020 (reflecting diminished spending during the pandemic), peaked in late 2022 and dipped again in early 2024. According to the U.S. Bureau of Labor Statistics, the year-over-year percentage change in private industry wages and salaries peaked in the summer of 2022 and has been in decline since then. 27 DEALERS’ CHOICE
Cu Soon Copper manufacturing could be another indirect indicator of how well the economy is doing because the metal is an essential component for everything from the wiring in our home appliances to the electric transmission infrastructure that powers homes and businesses. In recent years, copper has also played an important role in the production of electric vehicles. CRU Group, a global market research and consulting firm, projects that copper demand will skyrocket from 2020 to 2040, as the energy industry expands to keep up with population growth. Rolling in the (Frozen) Dough Restaurant dining, takeout and delivery are often cut from the family budget when money is tight — and that includes pizza. Placer.ai, a market intelligence and data analytics company, has found that when economic anxieties are high, consumers often go for less expensive frozen pizza from the grocery store rather than eating out or having it delivered. Frozen pizza sales, which were approximately $7 billion in 2024, are projected to increase by 6% annually, with some attributing this to consumers’ skittishness about the economy in the near term. Pet Adoption Owning and caring for pets is not cheap, and historically high inflation over the last few years didn’t help. Using data from the U.S. Department of Labor, the consulting firm Accenture found that pet services (such as grooming, boarding and pet sitting) have risen nearly 9% in the last year. During times of economic hardship, fewer people may adopt pets, and more may surrender pets they already have. According to PBS, nearly 20% of Americans adopted a cat or dog during the first 14 months of the COVID-19 pandemic, but in 2022, as the pandemic waned, 4% more pets entered shelters than left. That year, the Houston Humane Society reported a 50% increase in pet surrenders compared to pre-pandemic years. Night Lights Satellite imagery of nighttime lighting from homes and businesses captures human activity and can indicate economic vigor. This data can reflect factors affecting the economy (such as weather and policy shifts), show growth and fill gaps in the statistics available in rural or rapidly changing areas. According to data compiled by Accenture, the cumulative monthly average nighttime brightness in Texas has gradually increased since 2020, but the state has also experienced spikes and dips during that period. For example, nighttime brightness cratered in July 2024, when Hurricane Beryl made landfall near Matagorda and traveled through northeast Texas, as well as in July 2022, when the state experienced an extreme heatwave. DEALERS’ CHOICE 28
One Big Beautiful Bill Act Tax Deductions for Working Americans and Seniors By NADA On July 25, 2025, the IRS published an updated fact sheet that provides descriptions of new provisions from the One Big Beautiful Bill Act, signed into law as Public Law 119-21 on July 4, 2025. “No Tax on Tips” • New deduction: Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations that are listed by the IRS as customarily and regularly receiving tips on or before Dec. 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137. º “Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing. º Maximum annual deduction is $25,000; for self-employed, deduction may not exceed individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned. º Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers). • Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers. º Self-employed individuals in a Specified Service Trade or Business (SSTB) under section 199A are not eligible. Employees whose employer is in an SSTB also are not eligible. º Taxpayers must: include their Social Security Number on the return and file jointly if married, to claim the deduction. • Reporting: Employers and other payors must file information returns with the IRS (or SSA) and furnish statements to taxpayers showing certain cash tips received and the occupation of the tip recipient. • Guidance: By Oct. 2, 2025, the IRS must publish a list of occupations that “customarily and regularly” received tips on or before Dec. 31, 2024. º The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and payors subject to the new reporting requirements. “No Tax on Overtime” • New deduction: Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay — such as the “half ” portion of “time-and-a-half ” compensation — that is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2, Form 1099, or other specified statement furnished to the individual. º Maximum annual deduction is $12,500 ($25,000 for joint filers). º Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers). • Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers. º Taxpayers must: include their Social Security Number on the return and file jointly if married, to claim the deduction. • Reporting: Employers and other payors are required to file information returns with the IRS (or SSA) and 29 DEALERS’ CHOICE
furnish statements to taxpayers showing the total amount of qualified overtime compensation paid during the year. • Guidance: The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and other payors subject to the new reporting requirements. “No Tax on Car Loan Interest” • New deduction: Effective for 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. (Lease payments do not qualify.) º Maximum annual deduction is $10,000. º Deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers). • Qualified interest: To qualify for the deduction, the interest must be paid on a loan that is: º originated after Dec. 31, 2024, º used to purchase a vehicle, the original use of which starts with the taxpayer (used vehicles do not qualify), º for a personal use vehicle (not for business or commercial use) and º secured by a lien on the vehicle. If a qualifying vehicle loan is later refinanced, interest paid on the refinanced amount is generally eligible for the deduction. • Qualified vehicle: A qualified vehicle is a car, minivan, van, SUV, pick-up truck or motorcycle, with a gross vehicle weight rating of less than 14,000 pounds, and that has undergone final assembly in the United States. • Final assembly in the United States: The location of final assembly will be listed on the vehicle information label attached to each vehicle on a dealer’s premises. Alternatively, taxpayers may rely on the vehicle’s plant of manufacture as reported in the vehicle identification number (VIN) to determine whether a vehicle has undergone final assembly in the United States. º The VIN Decoder website for the National Highway Traffic Safety Administration (NHTSA) provides plant of manufacture information. Taxpayers can follow the instructions on that website to determine if the vehicle’s plant of manufacture was located in the United States. • Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers. º The taxpayer must include the Vehicle Identification Number (VIN) of the qualified vehicle on the tax return for any year in which the deduction is claimed. • Reporting: Lenders or other recipients of qualified interest must file information returns with the IRS and furnish statements to taxpayers showing the total amount of interest received during the taxable year. • Guidance: The IRS will provide transition relief for tax year 2025 for interest recipients subject to the new reporting requirements. Deduction for Seniors • New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law. º The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify). º Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers). • Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year. • Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers. º Taxpayers must: include the Social Security Number of the qualifying individual(s) on the return, and file jointly if married, to claim the deduction. DEALERS’ CHOICE 30
Share your community news with us to be featured in the next issue! Email Janet Hale at jhale@tada.org. GULLO FAMILY HONORED WITH COMMUNITY IMPACT AWARD Gulf States Toyota honored the legacy of Tony Gullo Sr. by presenting Tony Gullo Jr. and the Gullo Family with the very first Gulf States Toyota Community Impact Award. Gulf States Toyota created this award to recognize the lasting contributions Toyota dealerships make in their local communities. Mr. Gullo Sr. was a remarkable leader whose vision, impact and dedication not only inspired this honor but paved the way for its creation. Gullo Toyota is proud to join Gulf States Toyota in ensuring that Mr. Gullo Sr.’s legacy continues to shine through this award for years to come. Community News 31 DEALERS’ CHOICE
Todd Odom and Max Odom from Cecil Atkission Motors and Tim Crenwelge join local residents in the clean-up effort in Kerr County. KERRVILLE DEALERS UNITE TO FUND RELIEF FOR KERR COUNTY On Wednesday, Oct. 22, Carlos Gallardo and Jeff Tucker from Zurich North America, and Terry Massey from Ken Stoepel Ford stopped by TADA Chairman Tim Crenwelge’s dealership to present a donation in support of the Kerr County Flood Relief Fund. GRAND OPENING OF MERCEDES‑BENZ OF SOUTH AUSTIN Mercedes-Benz of South Austin celebrated its grand opening under the new ownership of Group 1 Automotive. As part of the opening celebration, the dealership donated $10,000 to the Abigail E. Keller Foundation, an Austin-based, 501(c)(3) non-profit organization that supports medically fragile and terminally ill children through their challenging journey at the end of life. The foundation’s long-range vision is to design and build the first pediatric respite and hospice facility in Texas. COMMUNITY NEWS DEALERS’ CHOICE 32
BIRD KULTGEN FORD TEAMS UP TO PROVIDE FREE MAMMOGRAMS For the sixth consecutive year, Bird Kultgen Ford partnered with Baylor Scott & White — Hillcrest to provide free mammograms to women in the Waco area. GROUP 1 BUILDING HOPE CAMPAIGN Group 1 contributed $300,000 to the Building Hope Campaign in support of the new Texas Tech Health Fox Cancer Center in El Paso. As the first comprehensive cancer center in West Texas, the Fox Cancer Center will transform cancer care in the region, providing patients with greater access to advanced treatment closer to home. COMMUNITY NEWS 33 DEALERS’ CHOICE
GENE MESSER AUTO GROUP SUPPORTING MEALS ON WHEELS Gene Messer dealerships all came together to help Meals on Wheels in Lubbock, donating 3,000 pounds of shelf stable food in support of Comfort Keepers of Lubbock’s 15th annual Feed Seniors Now initiative. APPEL FORD — BUILDING TOGETHER TO SUPPORT THE FAITH MISSION Appel Ford in Brenham, Texas, participated in the new Ford Building Together initiative and Global Caring Month. The dealership received food items from the local community, and donations were collected in the bed of a truck in their showroom. Over 800 pounds of food was collected and will benefit Faith Mission, which provides food each Thursday to around 350 people in need in the Brenham community. Appel Ford is one of over 2,500 dealers participating in the program with the ultimate goal of being able to donate one million pounds of food worldwide. COMMUNITY NEWS DEALERS’ CHOICE 34
POHANKA AUTOMOTIVE GROUP AND HONDA OF BOERNE ANNOUNCE FLOOD RELIEF In a significant show of support for their new community, the Pohanka Automotive Group and Honda of Boerne have announced the establishment of the Kerr County Flood Relief Fund. In response to the recent devastating floods that have impacted countless families and businesses, the Pohanka Automotive Group has committed to matching all public donations dollar for dollar, up to $25,000, to provide immediate and meaningful aid for recovery and rebuilding efforts. ANCIRA AUTO GROUP AND BLESSED ANGELS What an awesome blessing from April Ancira Thompson on behalf of Ancira Auto Group. Eight hundred delicious cans of Cranberry Sauce were delivered to Blessed Angels Community Center to be given away during their Thanksgiving giveaway to low-income Veterans, seniors, people who are disabled or experiencing homelessness and families in need. Thank you for helping to make sure families have food on the table to say grace over at Thanksgiving! COMMUNITY NEWS 35 DEALERS’ CHOICE
Why Fraud in the Vehicle Transportation Industry Is on the Rise By CENTRAL DISPATCH The vehicle transportation industry is an essential part of the automotive ecosystem, connecting dealers, brokers and carriers to move cars across the country. But in recent years, fraud has become an increasingly serious concern. What was once limited to occasional scams has now evolved into a more organized, digital and far-reaching threat. In fact, there has been a 1,500% increase in vehicle theft since 2022. So, what’s behind the rise in fraud, and what can we do to stay ahead? Factors Driving the Increase in Fraud • Digital Transformation: Online booking systems, digital load boards and instant quoting tools have made vehicle transport faster and more convenient. However, they have also created more opportunities for bad actors to hide behind fake websites and identities or employ social engineering tactics. Without strong verification methods built into every transaction, scammers can easily impersonate a trusted business and disappear after receiving payment. • Increased Need for Transportation: In addition to the shift to digital, with more limited inventory and fewer trade-ins coming in, automotive dealers are now having to acquire vehicles outside of their traditional sources and their immediate geographic area. In fact, the distance dealers are now willing to buy from is now over 600 miles on average, up from around 450 miles five years ago. This necessity also creates a sense of urgency, which can be exactly what scammers prey on. When someone is under pressure to acquire a vehicle and its transport, they’re more likely to overlook red flags. • Regulatory Enforcement Challenges: Due to the nature of vehicle transport, it can be difficult to track and enforce against theft or other fraudulent issues that arise. Fraudsters often operate across state lines and move quickly, making it challenging to investigate and prosecute cases promptly to recover losses or prevent repeat offenses. Scams that live entirely online are even harder to trace. • Lucrative Targets: With an average cargo theft value of $200,000, vehicle transport can be an attractive target for fraud. Even if a scammer isn’t able to get their hands on the vehicle itself, the transportation transaction can involve thousands of dollars. Scammers can collect deposits or full payments and then disappear, only to set up shop again under a new name. With fraud becoming increasingly sophisticated and prevalent across the industry, it’s more important than ever for all parties involved to stay vigilant. Know the warning signs of fraud and make sure you’re protecting yourself, ask the appropriate questions before working with a new transportation partner, and stay educated about what’s happening in the industry and how you can stay ahead of fraudsters. By understanding why fraud is rising and knowing what to look for, you can make more informed decisions and help create a more secure and trustworthy transportation ecosystem for everyone involved. DEALERS’ CHOICE 36
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