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Category: Auto Dealerships

June 29, 2022

Buy-Sell Agreement: Be Ready for Unforeseen Events

One estate-planning tool that can protect your family and the partners in your dealership is a buy-sell agreement. This legal document may give owners the first shot at buying an interest in the company if another owner pulls out, becomes disabled or dies. Ideally, these contracts are drawn up when a business is launched, or acquired from other owners, but they can be entered into later. Don’t wait too long. If you die or become disabled without an agreement, it… Read more ›

June 29, 2022

Federal Trade Commission’s Safeguards Rule Amendments Set to Intensify Auto Dealership Date Security Measures

Automotive dealerships are no strangers to strict measures surrounding customer data security. They have been complying with the Gramm-Leach-Bliley Act’s (GLBA) Safeguards Rule for more than 20 years. But the Federal Trade Commission (FTC) amended the 2003 Safeguards Rule on October 27, 2021, to require additional controls for existing security compliance processes to better combat increased data breaches and online security risks. While the revised rule took effect on January 10, 2022, certain requirements, such as the appointment of a… Read more ›

May 31, 2022

Tax Quiz About Business Vehicle Deductions

Q. When buying a vehicle to use in your business, which type is potentially eligible for 100% bonus depreciation that allows a larger first-year tax write-off? a. Compact car made in the USA b. Plug-in electric sedan c. Hybrid passenger auto d. Large sport utility vehicle (SUV) The answer is d While a compact car, an electric vehicle or a hybrid may save you money in gas and provide some nice tax breaks, a suitably heavy SUV, pickup, or van… Read more ›

May 24, 2022

The Clean Energy Initiatives Your Dealership Shouldn’t Ignore

  The global wide push to “go green” has built momentum over the years, and research points toward an even greater increase in the American demand for clean energy going forward. While the movement has primarily centered around the adoption of electric vehicles, the clean energy trend isn’t just lucrative for car sales. There are myriad attractive clean energy initiatives that could result in significant tax savings for your auto dealership. While many clean energy initiatives have come and gone… Read more ›

April 25, 2022

Increase ‘Back End’ Profitability

Undoubtedly, your dealership is aware of the challenges it faces on the front-end of the business. Competition in the marketplace is stiff. That is why the focus is increasingly being shifted to the back-end. Ask this question: Is your dealership doing everything it can to maximize profitability in your service department? For many dealers, the answer is “no.” Significantly, you can begin to rely on your service department to pick up some of the slack. In other words, it can… Read more ›

April 18, 2022

Key Characteristics of a Good Financial Controller

  As a business owner, your auto dealership’s team must be comprised of people you trust to make the right decisions for the company. The reports derived from your accounting team are at the forefront of most major business decisions, so having a suitable controller in place will help ensure your dealership’s financial health and future. The characteristics of a good controller fall into two distinct buckets: technical skills and leadership qualities. On the one hand, at their core, a… Read more ›

March 25, 2022

How to Avoid Being the Victim in the Next Ransomware Attack Headline

  Dealership security goes far beyond securing buildings, vehicles, and cash deposit bags. Today’s crafty criminals have traded in their crowbars for keyboards, so your cybersecurity had better be top-notch when they start looking in your direction. Customer data and financial records may be bright, shiny objects they’re after, but the situation can become more complex when ransomware is involved. What is ransomware? Ransomware is software code deposited on computer networks or a single device with the intent of blocking… Read more ›

March 25, 2022

Five Tips for Preventing Manufacturer Rebate Audit Headaches

Do you have a love-hate relationship with manufacturer rebate incentives? On the one hand, they draw customers to your showroom and can bump up sales with alluring customer discounts. But they also pose the risk of your dealership undergoing a rebate audit by the manufacturer. Prevent a managerial headache – and a possibly large chargeback — by following these five tips: 1. Create a rebate submissions process. Adherence to a clear and consistent submissions process will help reduce your audit… Read more ›

February 25, 2022

2022 Mileage Rates for Business Reimbursements

The IRS recently released the 2022 mileage rates for businesses to use as guidance when reimbursing workers for applicable miles driven within the year. The rates tend to increase every year to account for rising fuel and vehicle and maintenance costs and insurance rate increases. Businesses can use the standard mileage rate to calculate the deductible costs of operating qualified automobiles for business, charitable, medical, or moving purposes. Keep reading for the updated mileage rates, as well as some reminders… Read more ›

February 25, 2022

How Fast Can You Write off a Business Vehicle?

The federal income tax rules for depreciating vehicles used for business are complicated. And different rules apply to different categories of vehicles. Special limitations apply to vehicles that are classified as passenger autos, including many pickups and SUVs. As a result of these limitations, depreciating an expensive vehicle may take longer than you’d expect. Here’s what you need to know about depreciation write-offs for vehicles used for business purposes. Cents-Per-Mile Method vs. Actual Expense Method Depreciation calculations only come into… Read more ›