Profit Drivers
Four Ways New Technologies and Data Benefit Your Dealership
It’s easy to complain about all the change and disruption that new technology has brought to automotive retail. You could argue that today’s shoppers know too much and that access to vehicle pricing information is too easy. You could also … Continued
Tips for a Clean Database
There is a common misconception among dealers that their biggest asset is their inventory. In fact, your customer database is your greatest asset. If you don’t have a customer base, you can’t sell your inventory! Despite this, many dealers have … Continued
Leveling the Playing Field:
Retail Warranty Reimbursement
We invited Joe Jankowski, Managing Partner of Armada Dealer Solutions, to submit this article. Joe addressed our group, the National Alliance of Auto Dealer Advisors (NAADA) at a recent meeting. If you have any questions regarding this article and would … Continued
Reduce Fraud with Strong Parts Management
Fraud continues to be a real threat for automobile dealerships, with the most likely target being a dealer’s inventory. That is because a typical parts inventory contains products that can be easily converted into cash. Even though what appeared to … Continued
Keeping your Business Running after a Disaster
Normally, when business owners think about the effects of a disaster, they envision large catastrophic disasters that affect an entire region. There are many disasters or events, however, that could severely affect your business ranging from power outages to fire … Continued
Warranty Versus Extended Service Contract: Reinsurance
Finance and Insurance (F&I) departments can generate additional profit for automobile dealers. Commissions from the sales of F&I products, including extended service contracts (ESCs), are one source of additional revenues. Automobile dealers also have the opportunity to participate in the … Continued
Feds broaden crackdown on dealership fraud
The Federal Trade Commission is broadening its enforcement of car dealerships to crack down on deception and fraud in operations that go beyond advertising. The latest actions, announced today, also target auto-loan application fraud and deceptive practices related to add-on … Continued
How Many Employees Do You Have?
Beginning 2015, dealerships employing at least a certain number of employees (generally 50 full-time employees or a combination of full-time and part-time employees that is equivalent to 50 full-time employees) will be subject to the Employer Shared Responsibility provisions of … Continued
Alert-IRS Concludes that Facility Image Upgrade Program Payments are Includable in Gross Income
In a Technical Advice Memorandum dated (TAM) May 9, 2014, the IRS has concluded that facility image upgrade program payments are includable in gross income. The IRS described three detailed fact patterns in which dealers received payments, and concluded that … Continued