Category: Auto Dealerships

An Employee Stock Ownership Plan may be the solution to the cash woes facing some auto dealers. With an ESOP, an owner can sell some of the company’s shares to the plan, reinvest in a diversified portfolio, still retain control of the business and avoid taxes indefinitely. An ESOP is a type of qualified employee retirement plan that companies can establish for their staff members. Unlike other kinds of qualified plans, these plans are intended to invest primarily in stock… 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 ›

  Leveraging Data Analytics to Gain Unique Insights The concept of leveraging data analytics is nothing new. But how many dealerships are effectively using data to manage their business? Effectively is the operative word here. For years, many industries, including automotive, have collected data and ran analytics to uncover insights and trends that would be useful in future decision making. Today, new technologies are making it possible for businesses to collect and process data faster than ever before. Imagine if… Read more ›

Self-driving cars are currently being tested on restricted roads in California, Texas, Arizona, Washington, Pennsylvania and Michigan. Predictions for fully autonomous vehicles vary depending on the source, but many experts project that by 2035, 21 million self-driving cars will be on U.S. roads. It appears to be a matter of when, not if, electrification will dominate the industry. To match the private sectors pace of innovation, the U.S. Department of Transportation released new guidelines for autonomous driving systems. The document,… Read more ›

The tax reform legislation that Congress signed into law on December 22, 2017, was the largest change to the tax system in over 3 decades. The new tax code contains many provisions that will impact everyone, including dealerships. While some provisions will be welcome, others will add a new level of complexity. Dealerships must be mindful of how these changes will impact their dealerships. The key to staying ahead of these changes is awareness and planning. One of the more… Read more ›

Certain businesses ― including auto dealerships ― are subject to the Safeguards Rule, which was designed by the Federal Trade Commission (FTC) to protect customer information from being shared inappropriately as required by the Gramm-Leach-Bliley Act. Warning The FTC has issued a warning to auto dealers stating that the agency does not conduct onsite investigations for privacy violations. This is in response to situations where frauds posed as FTC agents, presumably to gain access to customer information. Practically speaking, however,… Read more ›

John Comunale, CPA and Richard Morris, CPA, MST, respectively director of auto dealer services and tax services at CBM – Councilor, Buchanan & Mitchell, P.C. will speak about the impact of the new tax legislation, the Tax Cuts and Jobs Act, on auto dealerships throughout the Washington, DC metropolitan region. The presentation will be hosted by the Washington Area New Automobile Dealers Association, the capital region’s auto dealership association that advocates on behalf of franchised auto dealers, their employees and… 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 prepare for… Read more ›

The 2017 Atlantic Hurricane Season was one of the busiest and most destructive hurricane seasons on record. When a catastrophic event, such as a hurricane, strikes it can severely affect your dealership operations. According to an analysis by Cox Automotive, approximately 400,000 vehicles will need to be replaced after Hurricane Irma ripped through Florida. Hurricane Harvey added to the damage, destroying 300,000 to 500,000 vehicles in Houston. Normally, when business owners think about the effects of a disaster, they envision… Read more ›