Auto Focus
Showing 193–208 of 231 results
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Leasing strikes back
Summer 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 753
Abstract: According to many industry sources, leasing is making a slow comeback. To make sure such leases are profitable, it’s important to make sure that lease payments cover interest costs and the spread between the vehicle’s capitalized cost and its residual value. This article defines those terms, noting that higher actual residual values are making leases more affordable. It also discusses the importance of training staff to explain the pros and cons of leasing to customers.
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Cost segregation – Is it time to study?
Summer 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 766
Abstract: In a down economy, when dealers struggle to find ways to reduce costs, they might want to consider a cost segregation study, which allows businesses that have constructed, bought, expanded or remodeled real estate to speed up depreciation-related tax deductions. This article shows how a cost segregation study works, the kinds of experts needed to carry it out, and the tax savings that might be expected.
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Demystifying health care reform
Summer 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 988
Abstract: There’s a lot of confusion about how — and when — the new health care legislation affects businesses. This article answers questions that many dealers may have about the tax credit that’s available to some smaller businesses. And it discusses the upcoming requirement that many businesses must provide health insurance or pay a penalty. It also looks at the tax hikes on wealthy individuals that will come into play to help pay for health care reform, and discusses new IRS reporting requirements. A sidebar offers tips for reducing the cost of employee benefits right away.
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5 ways to stay clear of a factory audit
Spring 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 657
Abstract: Dealerships across the country are striving to make 2010 a far more profitable year than 2009. One area that’s easy to overlook is the possibility of a factory audit, which costs a dealership time and, hence, money. With manufacturers also looking hard to boost profits, dealers would be wise to do what they can to avoid an audit. This involves fulfilling factory expectations; getting key people involved; reviewing the appropriate records; avoiding unusual operational activity; and inspecting the service department.
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Rev up sales – Don’t let the momentum from Clunkers stall
Spring 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 892
Abstract: Cash for Clunkers attracted a lot of attention last year. But, before the publicity completely fades away, there are ways to bring shoppers in the door — and persuade them to buy. This article describes several such techniques. At the same time, dealers will need to balance their inventory needs with their manufacturer’s flexibility — and, if layoffs are necessary, they should be based on performance, not tenure or emotion. A sidebar explains how recent inventory cuts could increase taxes if appropriate steps aren’t taken.
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Benchmarking – How does your dealership rate?
Spring 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 475
Abstract: In today’s volatile marketplace, it’s harder to get credit and easier to get a franchise taken away. Franchisers and lenders are paying close attention to financial performance — and many have raised the bar on what’s acceptable. But dealers who benchmark their performance against industry standards know their competitive strengths and weaknesses. In turn, they can ask others for best practice advice to turn around weak areas.
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Win-win trade-ins – A solid appraisal process satisfies all
Spring 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 810
Abstract: Happy car-buying customers are repeat customers, but not all car-buying customers are happy ones. What can make a difference in customer satisfaction is how a dealership appraises cars. This includes formalizing the appraisal process; reconciling data from a variety of public sources; keeping a computerized log of all used car appraisals and cross-referencing the list to avoid contradictory appraisals; and choosing cost-effective and user-friendly appraisal software.
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Getting cash to flow
Winter 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 715
Abstract: With sales still lackluster at many stores, having enough cash on hand to meet obligations remains a management challenge. The first step in strong cash-flow management is maintaining an organized system for cash accounts. It’s also important to maintain a tight collection policy and to properly account for inventory.
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Good reasons for clean cutoffs
Winter 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 584
Abstract: When a sale occurs near the fiscal year end, precisely when should a dealer record it? For a sale in which the dealer had completed most of the legwork and crunched the numbers just before the cutoff date — but with the dotted line being signed after that date — it might seem logical to record it at the earlier date. And the factory would likely back this decision, because it bolsters the manufacturer’s year end unit sales. But dealers shouldn’t count their chickens before they hatch; it can cause problems with lenders and other stakeholders, who might claim that the dealer is exaggerating financial results.
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Ready, set, get audited – How your audit can be easier next time
Winter 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 994
Abstract: With a bit of advance planning, a visit by an external audit team can be brief and predictable. Plus, many offer business improvement and tax-savings tips that could actually make a dealer’s life easier. This article discusses how to prepare for a visit, and how to benefit from ideas the auditor may have gathered throughout the audit process to help improve operations and build value. A sidebar discusses the choices dealers have when accounting for new vehicle inventory.
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IRS to step up UNICAP enforcement – Dealerships have until Jan. 1, 2011, to comply
Winter 2010
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 670
Abstract: Virtually all automobile dealerships report their inventories improperly, according to the IRS. A Taxpayer Advice Memorandum, TAM 200736026, suggests that most dealerships incorrectly apply Internal Revenue Code Section 263A to calculation of their inventories. Sec. 263A addresses the uniform capitalization of direct and indirect inventory costs. Currently, most dealers deduct these expenses each year by using the simplified retail method, rather than including them as part of their inventories. The agency has recently laid the groundwork to begin serious testing for noncompliance starting next January, and the revised rules affect all but the smallest dealers.
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Location, location, location – Is it time for a change of scenery?
Fall 2009
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 505
Abstract: If a dealership has been in the same spot for years, chances are the neighborhood is changing — or already has changed. The address might still be an asset, or it might have become a liability. This article lists some factors to consider when evaluating the ideal locale for a dealership. There are also important considerations in regard to renting vs. owning dealership property.
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Keep your guard up at tax time
Fall 2009
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 698
Abstract: This year, profits are down and losses up for many dealerships — maybe this is a year, one might reason, that Uncle Sam, and his IRS agents, might give dealerships a break. Forget about it: small business audits have been on the rise. But there are steps a dealer can take to satisfy an IRS auditor, including proving an intent to make a profit, even when losing money; keeping salaries reasonable; tracking cash sales; and keeping accurate records of previous years’ LIFO invoices.
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I will survive – Your manufacturer’s undoing needn’t be yours
Fall 2009
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 690
Abstract: Those dealerships still standing at the approach of 2010 deserve congratulations. But the war is far from over. Surviving manufacturer upheaval is no easy task, but the odds improve with proactive planning and professional expertise. It may be possible that a sound business plan will convince a manufacturer not to pull the plug, but there are options to stay in business even if the franchise agreement is terminated. These include undergoing a brand change or sharing resources with another dealership. But, in the meantime, it’s important to assuage customer concerns.
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Use vehicle sales tax deduction to convert browsers into buyers
Fall 2009
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 1022
Abstract: As year end approaches, customer interest in the new sales tax deduction on new vehicle purchases could grow. Dealers report that the vehicle sales tax deduction is a particularly useful selling point for shoppers straddling the fence about new car purchases. But many shoppers are still unaware of the deduction, so it’s important to get the word out. This article lists some myths about the deduction that a dealer can dispel, while offering a specific example of potential savings. A sidebar describes a couple of other tax breaks that are presently available.
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What makes you special? Finding a USP that differentiates your dealership
Summer 2009
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 374
Abstract: Competing on price alone is a tough way to survive – it requires significant sales volume to turn a profit. In today’s economy, successful dealerships differentiate themselves with a unique selling proposition (USP). A USP is a focused message that promises something unique that others can’t (or don’t) provide. When choosing a USP, you should consider your strengths, your competitors’ weaknesses and, perhaps most important, who your best customers are and what they want.