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Archive September 2026

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TIADA Represents Texas Dealers at NIADA Policy Conference

Earlier this week, Trevor Jennings, TIADA's Executive Director, and Earl Cooke, TIADA's Director of Regulatory Affairs traveled to Washington, D.C., to represent the interests of Texas independent automobile dealers at the NIADA Policy Conference. The conference provided an important opportunity for TIADA leadership to meet directly with federal lawmakers and congressional staff and discuss the legislative and regulatory issues that are having an impact on independent dealers across Texas.

 

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Why Texas Independent Dealers Should Attend the 2026 NIADA BHPH Dealer Forum

For independent Texas auto dealers, staying competitive means more than finding the right vehicles and putting them on the lot. Dealers—particularly those operating Buy Here, Pay Here (BHPH) or Lease Here, Pay Here (LHPH) operations—are managing inventory, financing, collections, compliance, service, customer expectations and an increasingly digital marketplace.

That makes the 2026 NIADA BHPH Dealer Forum, taking place November 1–3 at the JW Marriott Austin, a particularly relevant opportunity for Texas dealers. The event is designed specifically around the challenges and opportunities facing BHPH and LHPH operators, with education led by dealers and industry experts.

 

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When Customers Are Unhappy: How Texas Independent Dealers Can Turn Complaints Into Opportunities

Practical strategies for handling difficult customers, protecting your dealership’s reputation and keeping small problems from becoming big ones

Every dealership eventually has one: the customer who is unhappy about the price, upset about a repair, frustrated with financing, angry about a vehicle problem or convinced the dealership didn’t treat them fairly. For independent automotive dealers, a disgruntled customer can feel particularly personal. Your dealership may have only a handful of employees, and the customer may have dealt directly with the owner, sales manager or salesperson.

 

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5 Ways to Prepare Your Dealership for the Fall Season

As summer winds down across Texas, independent auto dealers have an opportunity to prepare for one of the year's most important selling periods. Fall brings changing consumer needs, shifting inventory priorities, and new opportunities to improve dealership operations before the holiday season arrives.

For independent dealers, preparation is especially important. With affordability continuing to influence used-vehicle shoppers and budget-friendly inventory remaining in demand, making smart decisions about inventory, pricing, marketing, and compliance can help position a dealership for a stronger fall selling season.
Here are five ways Texas independent dealers can get ready.

 

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MVSF and CMVSF Renewals in NMLS: What Dealers Need to Know

With the transition to the Nationwide Multistate Licensing System (NMLS) in progress, Texas dealers should be mindful of the upcoming renewal season for Motor Vehicle Sales Finance (MVSF) and Commercial Motor Vehicle Sales Finance (CMVSF) licenses. The Texas Office of Consumer Credit Commissioner (OCCC) now manages these licenses through NMLS, making the platform the central location for application submission, renewals, amendments, and other license maintenance.

The renewal period runs from November 1, 2026, through December 31, 2026.

As the first renewal cycle in NMLS approaches, proactive preparation is the best way to avoid compliance issues and ensure uninterrupted financing operations. Taking a few minutes now to review your records can help keep your MVSF or CMVSF license active and in good standing for the coming year. To avoid last-minute issues, dealers should log into NMLS when the renewal window opens and review all company information for accuracy. Dealerships with multiple locations should also confirm that all branch licenses are properly reflected in NMLS and that any updates made during the year have been submitted.

Another best practice is to consistently monitor NMLS notifications. Any outstanding deficiencies or requests for additional information should be addressed promptly, as unresolved issues can delay renewal or transition processing.
Licenses that are not renewed by December 31, 2026, may reinstate until February 28. Licenses not reinstated by this deadline will be designated Terminated Failed-To Renew and will have to submit a new application.  Reinstatement includes a $1,000 late filing fee as well as the renewal fee for each license reinstated in addition to any NMLS processing fees

For licensing questions, dealers may contact the OCCC Licensing Department at licensing@occc.texas.gov or (512) 936-7605. For technical assistance with NMLS, contact the NMLS Call Center at 1-855-665-7123.

The Right to Repair: Can Independent Shops Keep Up With Today’s High-Tech Vehicles?

The modern automobile is no longer simply a mechanical machine. Today’s vehicles are rolling computers, packed with cameras, sensors, electronic control modules and advanced driver-assistance systems (ADAS). While these technologies can make vehicles safer and more efficient, they are also creating a growing challenge for independent automotive repair shops—and raising an important question: Will independent mechanics continue to have the ability to repair the vehicles their customers own?

For years, independent repair shops have competed with franchised dealerships by offering consumers convenient, affordable service. But as manufacturers add increasingly sophisticated technology to new vehicles, some repairs now require specialized diagnostic equipment, proprietary software and electronic recalibration.

Consider something as routine as replacing a windshield, bumper or suspension component. On a vehicle equipped with cameras or sensors, the repair may require an ADAS system to be recalibrated before the vehicle is returned to the customer. A simple mechanical repair can suddenly become a computerized procedure.

Technology Is Changing the Repair Business

Modern vehicles can contain dozens of electronic control modules and increasingly sophisticated safety systems. Cameras and sensors may be integrated into systems responsible for automatic emergency braking, lane-departure warnings, adaptive cruise control and other driver-assistance features.

When those systems are disturbed, repaired or replaced, proper calibration can be critical. The problem for independent repair businesses is that access to the information, software and tools necessary to complete certain procedures can vary by manufacturer.

That can potentially force a customer to take a vehicle to a franchised dealership simply because an independent shop cannot access the software or perform a required electronic procedure.

For independent mechanics, that isn’t just a technology issue. It is a competition issue.

The Right-to-Repair Battle

The right-to-repair movement has traditionally focused on ensuring that consumers and independent repair businesses have reasonable access to the parts, tools, service information and software needed to repair products. As vehicles become increasingly dependent on software, the definition of repair is changing.

It is no longer enough for a mechanic to have the right wrench or replacement part. In some cases, the repair process may also require access to manufacturer software, diagnostic information, security credentials or calibration procedures. Independent repair advocates argue that vehicle owners should be able to choose where their vehicles are repaired—and that independent shops should have reasonable access to the information and technology needed to compete.

What Texas Dealers and Repair Shops Should Watch

For Texas independent dealers and service departments, this issue deserves attention. The vehicles entering their inventory and service bays are becoming more technologically advanced every year.

Dealers should be asking: Do we have the equipment, training and information necessary to service the next generation of vehicles?

The answer may increasingly determine whether an independent business can keep a repair in-house or must send the customer—and the revenue—to a franchised dealership.

The right-to-repair debate is ultimately about more than fixing cars. It is about consumer choice, competition and the future of independent automotive businesses.

As vehicle technology continues to advance, Texas independent dealers and repair professionals will have a significant stake in making sure innovation does not come at the expense of their ability to serve their customers.

Moving Your OCCC License from ALECS to NMLS: What Texas Dealers Are Asking

We've walked a number of our Texas clients through this filing over the past several weeks, and the same short list questions keep popping up. Here’s the answer to some of those questions:
 
What's the deadline?
 
September 30, 2026. The OCCC granted a one-time extension from the original August 31 date, and this one is final. Applications filed by the 30th will keep being reviewed until approved, you just need to have it submitted by the 30th. Miss it and you'll be filing a brand-new license application through NMLS — additional requirements and significantly higher fees. If you haven’t started on this, do so asap.
 
NMLS wants an IRS document and I can't find my SS-4. Now what?
 
First, check with your CPA or bank; they may have a copy. Your CPA should be able to get a Letter 147C or transcript from the IRS a bit quicker if they have a Power of Attorney on file.
 
If they don’t have a copy, you will need to request a Letter 147C. You can call the IRS Business & Specialty Tax Line at 800-829-4933, Monday through Friday, 7 a.m. to 7 p.m. The IRS representative generates the letter during the call and can fax it to you right away; by mail, it will take a week or more. The IRS will only give you the letter if you are the owner, a corporate officer, a partner, or the responsible party on the EIN record.
 
You can also create an online IRS Business Tax Account as a Designated Official of your business. You will need to confirm your identity by using the ID.me system, they will then mail a PIN which you will need to wait for to gain full access to the account, again, getting the PIN could take a week or longer. Once you have the PIN and access to account, you can get an EIN verification letter or transcript online.
 
My Secretary of State name doesn't match my IRS records, how do I change it?
 
NMLS requires an exact match between your legal entity name and your IRS records. Any small punctuation or spelling difference will reject, including L.L.C. vs LLC or Inc. vs Incorporated. Unfortunately, the only way to fix this is by mailing the IRS a signed letter requesting the name change so their records match your Articles of Organization. The IRS is incredibly behind on processing any mailed documents, so this will take some time. If you have not yet filed your business tax return, you can ask your CPA to change the name on your return and mark the box for “Name Change” to help speed things along.
 
Hugo C. Sanchez, CPA
Butler & Sanchez LLC
hugo@butler-sanchez.com
832-742-1300

Getting Paid Fairly: The Fight Over Warranty and Recall Reimbursement

When a vehicle comes into a dealership for warranty or recall work, the customer generally doesn’t receive a bill—but the dealership still has significant costs. Technicians, service advisors, equipment, diagnostic tools, facilities, administrative staff and parts are all required to complete the repair. When reimbursement doesn’t adequately reflect those costs, the difference can come directly out of a dealership’s bottom line.

That is why fair manufacturer reimbursement for warranty and recall work, particularly parts reimbursement, has become a major legislative issue in Texas. The Texas Independent Automobile Dealers Association (TIADA) has identified the issue as one of its highest legislative priorities heading into the 2027 Texas Legislative Session after previous efforts in 2023 and 2025 failed to become law.

What Texas Law Requires

Texas law already requires manufacturers and distributors to fairly and adequately compensate dealers for warranty work. It also provides that reimbursement cannot be less than what a dealer charges retail customers for similar nonwarranty work.
The challenge is that Texas currently has a statutory formula for determining warranty labor reimbursement, but not a comparable formula for warranty parts reimbursement. That gap has become a central focus of TIADA’s legislative efforts.
Why Parts Reimbursement Matters

Parts can represent a substantial portion of a warranty or recall repair. A dealership’s retail parts pricing accounts for expenses such as inventory investment, ordering, stocking and overhead. However, manufacturers may use a different methodology when reimbursing dealers for the same part used in warranty or recall work.

The result can be a disconnect between what a dealership receives for a customer-paid repair and what it receives when performing manufacturer-required work. TIADA has argued that a clear statutory formula could provide greater consistency and predictability.

Why Independent Dealers Should Pay Attention

Although the current legislative debate primarily concerns franchised dealers, independent dealers can still learn an important business lesson: every repair has a cost.

Independent dealerships operating service departments—or working with third-party warranty companies and service-contract providers—need to understand exactly what they are being reimbursed for labor, parts, diagnostics and other expenses.

That means knowing your numbers. Track technician labor costs, parts margins, diagnostic time, administrative expenses and overhead. Review third-party warranty agreements carefully and understand what costs are actually covered. Accurate repair orders and cost records can also be critical when reimbursement is disputed.

Looking Ahead to 2027

With the 2025 legislation unsuccessful, TIADA is preparing to make fair warranty and recall reimbursement a priority again for the 2027 session. Potential discussions could include parts reimbursement formulas, labor rates, recall reimbursement, special parts pricing, surcharges and manufacturer-directed work.

For Texas independent dealers, the takeaway is simple: know your costs, understand your reimbursement agreements and keep an eye on the legislative debate. Even when legislation targets another segment of the automotive industry, the underlying principles of fair compensation and sustainable service operations can affect dealers across the industry.

Thank you, Greg Phea

TIADA extends its sincere appreciation to Greg Phea for his leadership, dedication and service to Texas’ independent automobile dealers.

Serving as president is more than a title. It requires time, commitment and a willingness to step forward on behalf of an industry made up of thousands of independent businesses across Texas. During his tenure, Phea helped carry forward TIADA’s mission of advocating for dealers, providing valuable education and strengthening the independent automotive community.

Leadership in the independent automobile industry comes with no shortage of challenges. Dealers face changing regulations, evolving technology, economic pressures and an increasingly competitive marketplace. Through it all, strong association leadership helps ensure that dealers have a voice and access to the information and resources they need to succeed.

Phea’s service is part of the long tradition of TIADA members giving their time and experience to strengthen the industry for everyone. His willingness to serve reflects the spirit of an association built by dealers, for dealers. While president he was instrumental in the hiring of Executive Director Trevor Jennings and went on to win “Best Idea by a State Association President” at the 2026 NIADA Conference, for the red-blazer leadership program he introduced to TIADA's board.

As TIADA welcomes incoming president Russell Moore, the association also takes this opportunity to recognize the important contribution made by Phea during his time in leadership. The work of one president becomes part of the foundation upon which the next leadership team builds.
To Greg Phea, TIADA offers its sincere thanks for your time, commitment and dedication to Texas’ independent dealers. Your service has helped advance an association that continues to be an important resource and advocate for the independent automotive industry.

Thank you, Greg, for your leadership and service to TIADA. We wish you continued success and look forward to seeing your involvement with the association and the Texas independent dealer community in the years ahead.

Congratulations to Incoming TIADA President Russell Moore

The Texas Independent Automobile Dealers Association (TIADA) is pleased to welcome Russell Moore as its incoming president.

Moore steps into this leadership role at an important time for Texas’ independent automotive dealers. The industry continues to face a rapidly changing business environment, from evolving technology and regulatory challenges to shifting consumer expectations and an increasingly competitive marketplace.

As president, Moore will help guide TIADA as the association continues its mission of supporting, educating and advocating for independent automobile dealers across Texas. His leadership will be especially important as dealers navigate the challenges and opportunities ahead.

“TIADA means the world to me,” Moore stated emphatically. “To be able to serve the members of TIADA in the greatest state in the nation, is something I take great pride in. TIADA has assisted so many over the years, both Members and Non-Members. We work for ALL dealers so the independent automotive industry in Texas can be better.”

TIADA’s strength has always come from the involvement of its members and the dedicated dealers who step forward to serve the industry. Leadership at the association provides an opportunity to give back to an industry that supports thousands of businesses, employees and consumers throughout the state.

Moore’s new role represents another important chapter in TIADA’s ongoing commitment to the independent dealer community. Through education, advocacy and member services, the association continues to provide Texas dealers with resources and a unified voice on issues that affect their businesses.

As he begins his term, TIADA members and colleagues look forward to working alongside Moore and supporting his efforts on behalf of independent dealers throughout Texas.

Please join TIADA in congratulating Russell Moore on his new role as president and wishing him a successful and rewarding term of leadership.
The road ahead will undoubtedly bring new challenges, but with engaged leadership and strong participation from Texas’ independent dealers, TIADA will continue working to strengthen the industry and protect the interests of the businesses that make up the independent automotive community.
Congratulations, Russell, and best wishes for a successful term as TIADA president!
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