• Adapting to today’s Internet-savvy car buyers

    Thanks to the Internet, today’s car buyers are far more informed when they walk through the door than they once were. More preparatory online research has resulted in fewer dealership visits — while greater knowledge of a given car, including the cost to the dealership, creates reduced negotiating leverage for the dealer, who may find it harder to maintain the same profit levels as in the past. This article notes that adapting to these changes may result in changes to sales tactics, compensation models and marketing strategies. A sidebar offers a few statistics about today’s car buyer.
  • 7 ways to boost service area profits and efficiency

    With gross profits on new automobile sales declining for the first time in five years, many dealerships are looking for ways to recapture some of these lost profits. The service department is one of the first places to look. The technological sophistication of today’s new vehicles gives dealerships an added advantage in the service area, since many independent mechanics lack the skills or diagnostic equipment to work on them. But the department must run smoothly. This article offers seven ways to boost service department efficiency and profits.
  • Internal controls — How can you deter fraud effectively?

    Dealers who have a strong internal control system in place might sleep more soundly. A strong system begins with detailed and accurate financial information and a systematic means of frequently monitoring such data. This article offers a number of tips to help dealers achieve this and nip fraud in the bud.
  • GAAP alternative now available

    This article discusses new guidance that allows private dealerships following Generally Accepted Accounting Principles (GAAP) to elect not to consolidate the financial reporting from variable interest entities that lease property to them. It also notes two new taxes under the Affordable Care Act that affect high earners, and a prediction that worldwide new vehicle sales will stop increasing sometime within the next decade.