The 2025 F&I Reinsurance Products Conference showcased the latest automotive reinsurance trends, dealership tax strategies and expert insights.
The conference brought together a diverse group of professionals connected to the automotive reinsurance industry, including dealers, agents, administrators, insurers, accountants and investment advisors. This broad representation highlights the critical role of reinsurance as a profit center for dealerships and the importance of industry-wide collaboration.
Steve Barber and Brett Cubellis, members of the Schneider Downs Dealership Team, presented a session focused on the One Big Beautiful Bill tax update and its impact on dealerships and owners. The presentation addressed practical tax planning strategies to minimize liability and maximize benefits under new rules, emphasizing the importance of timing and strategic action for automotive businesses.
Key Insights Shared
- Timing of Tax Law Changes: Dealers and advisors must be aware of when new tax provisions take effect, as some are retroactive to all of 2025, some point mid-year 2025, or some new rules begin on January 1, 2026.
- Strategic Planning: Dealers and owners should be working with their tax advisors now to ensure their strategies align with the latest legislation, potentially taking action before year-end to optimize outcomes in certain areas.
- Communication: Dealers should be communicating with dealership sales staff given the evolving tax landscape. Customers will have questions on the tax credits and interest deductions on the vehicles they are buying. Most dealers instruct their sales staff to advise the customer to consult with their tax advisor to ensure the dealership is not giving inaccurate or misleading tax advice. However, if sales staff are answering customers tax-related questions, it is critical they convey accurate, up-to-date information to avoid dissatisfied customers.
- Interest Expense Limitation (Section 163(j)): Interest on loans from reinsurance companies to dealerships is subject to the 163(j) limitation—capped at 30% of adjusted taxable income, just like other lender interest under the new bill. However, the interest deductibility rules restoring the add-back of depreciation and amortization to adjusted taxable income are favorable for dealers under the One Big Beautiful Bill.
- Clean Vehicle and Solar Credits: Clean vehicle credits expired on September 30, 2025. Solar energy projects remain eligible for the tax credit generally if completed and in service by the end of 2027.
- Investment Oversight: Dealers and owners should maintain oversight of funds held in reinsurance companies, as these assets could be invested more aggressively to maximize returns in a lot of instances. The involvement of investment advisors and wealth managers highlights opportunities for optimizing investment strategies.
From tax planning to investment management, the F&I Reinsurance Products Conference highlighted the importance of staying informed, proactive, and strategic in a rapidly changing industry. As new legislation takes effect and credits expire, dealerships and their partners must adapt to ensure continued success.
How Can Schneider Downs Help?
To learn how Schneider Downs can support your dealership with strategies that address today’s challenges and position you for growth, contact our team at [email protected].
About Schneider Downs Dealership Services
Schneider Downs’ Dealership practice helps single-point stores and multi-location groups strengthen operations, improve profitability, and plan for long-term growth. Our cross-functional team delivers audit and assurance, tax and accounting, risk advisory and cybersecurity, digital innovation (automation, analytics, custom DMS reporting), transaction advisory, forensic accounting, reinsurance advisory, exit and succession planning, and wealth management—led by responsive senior professionals who know the dealership business. We actively contribute across NADA, AICPA dealership forums, and state associations, bringing timely insights and practical guidance to every engagement.
To learn more, visit our dedicated Dealerships page.
