Category: Auto Dealerships

The U.S. Department of Labor (DOL) has released the finalized rule on overtime exemptions for white-collar workers under the Fair Labor Standards Act. The rule updates the standard salary levels for the first time since 2004. While it is expected to expand the pool of nonexempt workers by more than 1 million, it’s also more favorable to employers than a rule proposed by the Obama administration in 2016. That rule would have expanded the pool by more than 4 million… Read more ›

When disaster strikes, it can severely affect your dealership operations. According to an analysis by Cox Automotive, approximately 1 million vehicles were damaged by Hurricane Irma and Hurricane Harvey. The effect of natural disaster on a business is catastrophic, sometimes resulting in a total loss. But what about other forms of disaster? Power outages, water leaks, fire, server crashes and cyber-attacks are threats as well. Statistics vary, but the consensus is that the survival of your business depends on how… Read more ›

When it comes to measuring success, dealerships often point to the most obvious indicator on the lot, car sales. But measuring success goes much deeper than totaling up the number of cars sold in a particular week, month, or quarter. Reading and interpreting reports with a variety of metrics is a critical step to catching the hazards that threaten your dealership’s bottom line. For instance, inefficiencies are usually small enough to fly under the radar but over time are large… Read more ›

The Montgomery County Students Automotive Trades Foundation elected John Comunale, Senior Vice President at Councilor, Buchanan & Mitchell, P.C. (CBM), to its board of directors effective July 1. CBM, a full-service accounting and advisory firm with offices in Bethesda, MD and Washington, DC, has served auto dealerships throughout the Washington, DC metropolitan region and up and down the U.S. eastern seaboard since 1921. MCSATF, a not-for-profit organization, represents a collaborative effort between the Montgomery County business and professional community, and… Read more ›

Electric Vehicles: The Good News and the Bad News As of March 26, 2019, General Motors, LLC (GM) crossed their appointed electric car (EV) threshold of 200,000 EVs sold, marking their official entry into the race to the tax credit finish line. The GM tax credit, issued through the Energy Improvement and Extension Act of 2008, started at its peak value of $7,500. Hitting the 200k threshold signals a year-long phase-out, dropping to $3,750 for every EV sold from April… Read more ›

Succession planning is a process that every dealership owner thinks about; however, identifying and developing new leaders is easier said than done. According to The National Alliance of Auto Dealer’s (NAADA) 2016 National Dealership Succession Planning Survey, Auto dealers are pushing succession off by 5+ years, The number one inhibitor to succession planning is timing and the current owner’s willingness to step back One-third of dealership owners do not have a succession plan in place Nearly 50% of dealerships know… Read more ›

Many auto dealership owners have a preconceived notion of what their businesses are worth. It might be based on a “rule of thumb” such as a specified multiple of vehicle sales, the dealership’s revenue stream, a percentage of earnings or “book value.” However, while these factors may give you an idea about a business’ net worth, they hardly represent the entire picture. So how can you find out the value of your dealership? For starters, it is helpful to pinpoint comparable… Read more ›

The demand for vehicles will always rely heavily on factors such as consumer spending, interest rates, energy prices, and technology innovation. While these factors certainly keep auto dealerships on their toes, there are also myriad factors that can weigh heavy on U.S. auto sales. Despite a weak finish to 2018’s fourth quarter and the grim prediction of a down year, automakers are remaining optimistic. This article addresses an array of challenges dealerships should keep in mind as they enter the… Read more ›

On June 21, 2018, The U.S. Supreme Court issued its highly anticipated decision in the South Dakota v. Wayfair case. The verdict declared that states can impose sales tax nexus without requiring a seller’s physical presence in the state and will have significant implications for all sellers, including automotive suppliers. This decision overturns the Supreme Court precedent in Quill Corp. v. Dakota, which required retailers to have a physical presence in a state before it could compel the seller to… Read more ›

It is very likely that in the past week you have received at least one, if not multiple, phishing emails containing malicious attachments or requesting large-scale wire transfers. As cyberattacks evolve and hackers become more sophisticated, cybersecurity is now more important than ever. Reaching the highest figures to date, the Identity Theft Resource Center reported 1,579 data breaches and 179 million records compromised nationwide in 2017. Hacking (which includes phishing, ransomware/malware, and skimming) continues to rank as the highest attack… Read more ›