AFC
Showing 113–128 of 231 results
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Looks count – IRS wants “image money” included in a dealership’s gross income
Winter 2015
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 374
Abstract: One way that some automobile manufacturers motivate dealerships to renovate, modernize and upgrade their facilities is by encouraging them to participate in “facility image upgrade programs.” These programs often provide payments to dealerships to help defray costs. Some dealerships wonder how these payments — referred to by the IRS as “upgrade image support” payments and commonly called “image money” by dealers — should be treated from a tax perspective. This article discusses a recent IRS General Legal Advice memorandum clarifying its position on this issue.
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The earnout provision – If negotiations stall, consider this …
Winter 2015
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 603
Abstract: The recent upsurge in dealership merger and acquisition activity in many parts of the country is expected to continue in 2015. For those dealers thinking about being a seller (or buyer) this year, it’s a good time to think about alternative deal structures that might ease the negotiation process. One strategy to consider when sales negotiations falter is adding an earnout provision to the purchase agreement. This article explains how an earnout works and how, properly executed, it can provide protection for the seller.
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Weighing the benefits of LIFO
Winter 2015
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 676
Abstract: Many dealerships use an inventory accounting method known as “last in, first out” (LIFO) to defer their income tax liabilities. But LIFO requires some additional recordkeeping and may make a dealership appear less profitable to outsiders. This article compares the tax benefits of LIFO with the downsides, including its effect on financial statement reporting.
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Should you revamp your sales compensation model?
Winter 2015
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 814
Abstract: The Internet has fundamentally changed the role of the automobile salesperson. When customers walking in the door already know which vehicle they want to buy and how much they will pay for it, this tends to minimize the need for a traditional salesperson. Given this, many dealerships are re-examining the proper role of their salespeople, as well as their sales compensation model. This article discusses a sales model that combines base salary with performance-based incentive pay. It also offers a few guidelines for constructing a sales compensation plan, while a sidebar looks at what automobile dealership salespeople across the United States earn.
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Try these four 21st century marketing tactics
Fall 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 434
Abstract: In today’s always-on, wired world, having a digital marketing strategy has become practically essential. This strategy should focus on attracting new customers by showcasing inventory to buyers who are shopping online, as well as building long-term relationships with existing customers so as to remain top-of-mind when they search for their next vehicles. This article discusses four marketing tactics to consider, involving search engine optimization, e-newsletters, mobile apps and social media.
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Selling your dealership – Earnout provisions may give buyers assurance
Fall 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 670
Abstract: Businesses in some parts of the country remain difficult to sell in the current economy, even in an up market for auto dealerships. But, when negotiating a purchase agreement, adding an earnout provision — which commits the buyer to make additional payments to the seller if the business achieves agreed-upon financial targets after the sale — can smooth out a rough road and give the buyer extra incentive to “take the plunge.” This article explains the potential benefits, along with risks to look out for.
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Which retirement plan is right for your dealership?
Fall 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 578
Abstract: Recent studies have indicated that many Americans aren’t saving nearly enough for retirement. Dealership owners can help their employees save for retirement by offering a retirement plan. Doing so also can yield tax benefits, serve as a valuable employee recruiting tool and help boost employee retention. This article discusses three of the most popular types of retirement plans: 401(k) plans, SEP plans and SIMPLE IRAs.
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Pumping up profitability
Fall 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 848
Abstract: Dealerships can sell truckloads of vehicles and still run into problems if owners lose sight of the bottom line — the overall profitability of the sales they’re making. This article discusses a number of ways to boost profitability, including moves related to managing inventory, choosing dealer management software, and joining an automotive dealership “20 Group.” A sidebar explains how dealers who are planning new facilities or improving existing ones can benefit from a cost segregation study.
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Hire interns, save on wages
Summer 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 289
Abstract: Internships offer a cost-effective way to get work done around a dealership — and can even let the dealer test whether an individual has what it takes to become a full-time employee. This article describes the mutual benefits, but notes that it’s important to consult an attorney to make sure of compliance with all applicable state and federal labor laws.
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Common-control leasing arrangements – FASB offers a simpler reporting option
Summer 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 660
Abstract: Under Generally Accepted Accounting Principles, dealerships that lease real estate or equipment from one or more owners may be subject to the consolidation requirements of variable interest entities (VIEs). But the consolidation of leasing entities can now be a thing of the past for qualifying privately held dealerships that elect an alternative reporting method. As this article explains, the Financial Accounting Standards Board has granted private companies the option to elect not to consolidate financial reporting from VIEs that lease property to them. There are certain conditions that must be met, but, in light of this simplified reporting option, some dealers might want to reconsider the benefits of common-control leasing arrangements.
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Getting to know trusts
Summer 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 653
Abstract: Setting up trusts is one way an owner can provide income for the rest of his or her life and provide for beneficiaries after death. Different types of trusts provide different benefits, so it’s important to select the right trust or trusts for one’s particular situation. This article offers an explanation of revocable and irrevocable trusts, along with the role that charitable lead trusts and charitable remainder trusts can play in an estate plan.
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Should you add — or swap — a brand?
Summer 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 837
Abstract: Economic conditions, levels of competition, brand images and market demographics change over time. So it’s smart business to periodically review brand offerings to determine whether it’s time to add a franchise or swap a mismatched brand with another dealership. A change in brand might more effectively leverage product mix and maximize return on investment. This article explains how to spot opportunities, work with manufacturers, state boards and lenders, and carry out a swap transaction. A sidebar discusses the accounting aspects of a business combination.
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What benefits and perks do your employees most value?
Spring 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 435
Abstract: Compensation packages help attract and retain skilled workers. But dealers can’t afford to provide limitless benefits and perks. The key is to offer only those that best fit their employees’ needs and preferences. What employees value depends on many factors, such as age, gender, marital status and income. This article explains how to create a simple, focused survey to determine which benefits and perks the staff values most. It also offers three simple ways dealer-owners can boost morale without increasing costs.
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Warning: Profits are not the same as cash flows
Spring 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 579
Abstract: Many dealer-owners mistakenly equate profits with cash flow. But there are many reasons these numbers might differ. This article discusses how working capital fluctuates and notes that profits exclude capital expenditures and debt. So, it’s to be expected that some growing, profitable dealerships will experience cash shortages. And some mature “cash cows” will have ample cash on hand, despite lackluster sales.
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Work your warranty program year round
Spring 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 614
Abstract: No one likes dealing with warranty red tape. But pushing this administrative task to the lowest level of the priority totem pole might decrease the number of repairs that qualify. And running a less-than-competent warranty program will virtually guarantee costly results if a store becomes the target of a manufacturer’s audit. But this article explains how to set up and maintain an effective warranty program that will save time and money in the long run.
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Good news about goodwill – The reporting rules just got easier for private dealerships
Spring 2014
Newsletter: Auto Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 869
Abstract: There’s now one less thing for private dealerships to worry about after a merger or acquisition deal closes. The Financial Accounting Standards Board has simplified its rules for the subsequent measurement of goodwill. This article defines goodwill and how its impairment can send up a red flag with investors and lenders. But the new rules offer an alternative goodwill measurement method that makes taking an impairment loss less likely and removes the requirement to perform impairment testing annually. A sidebar explains how a “bargain purchase” can sidestep goodwill accounting issues.