Category: Auto Dealerships

As business owners, reliance on employees and vendors to help your dealership run smoothly is par for the course. Sometimes, those vendors and individuals take advantage of situations to increase their profits. Vendor fraud involves payments made to actual or fictitious vendors for personal gain. It is a lucrative industry that can take tens to hundreds of thousands of dollars off your bottom line. Types of Vendor Fraud There is a good chance your dealership has experienced some form of… Read more ›

Acquiring a company will leave you with a long to-do list, which means you can’t devote all of your time to the deal’s potential tax implications. However, if you neglect tax issues during the negotiation process, the negative consequences can be serious. To improve the odds of a successful acquisition, it’s important to devote resources to tax planning before your deal closes. Complacency Can Be Costly During deal negotiations, you and the seller should discuss such issues as whether and how much… Read more ›

The auto dealership group at Councilor, Buchanan & Mitchell (CBM) participated in a survey several years ago to determine how prepared dealership are for a succession planning process. The survey, which incorporated feedback from respondents nationwide, found that auto dealers are pushing succession planning back by more than 5 years. Furthermore, nearly 50 percent of the dealerships surveyed admitted that while succession is important, they haven’t dealt with it yet. The results of the succession planning survey, which continue to… Read more ›

  Before they can legally drive a vehicle, individuals must obtain a minimum level of automobile liability insurance. Similarly, dealerships are also legally required to carry certain types of insurance to operate in most states. If you haven’t reviewed your store’s insurance policies recently, now might be a good time to do so. Your goal is twofold: to make sure you have the right coverages for the risks involved in operating your dealership and to keep your insurance premiums as… Read more ›

PDF: Councilor, Buchanan & Mitchell Partner Dan Keefer Graduates from Upstream Academy’s Emerging Leaders Program Dan Keefer, CPA, CVA, a partner at Councilor, Buchanan & Mitchell, has graduated from the Upstream Academy’s Emerging Leaders Program. The program, which develops future leaders in the accounting profession through a rigorous, year-long period of instructor-led trainings, dialogue and the hands-on application of new knowledge, engages participants on the most pressing issues facing the industry. “The Emerging Leaders program broadened my understanding of what… Read more ›

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 ›

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 ›

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 ›

  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 ›

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 ›