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
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
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
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
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
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
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
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
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
Cash. It is required to pay employees and suppliers and can affect a dealer’s need for financing. Cash flow can be as important to an auto dealer’s survival as its profitability. Many dealers can improve their cash flow by properly … Continued