Pennsylvania Tax Officials State that Teleworkers Will Not Create Nexus for State Taxes
Stay-at-home orders in effect across the country have forced a large portion of the American work force to work from home. Businesses transitioning their ...
When your head stops spinning, take a deep breath and let’s discuss the types of reinsurance/warranty companies you should consider. The number of companies that facilitate these programs continues to increase and each brings a unique relationship and added value to the mix. It can be overwhelming.
As dealers continue to see profit margins from new and used vehicle sales decrease, they search for other avenues to supplement profitability. Most have participated in some sort of finance and insurance (“F&I”) program for decades. At first, everyone hesitated with buying into the reinsurance company structure because it was complicated and sounded too good to be true. But now that most are comfortable with the concept, the programs continue to change. And for those still not participating in a program, you’re leaving profits on the table. So let’s ask ourselves a few questions before we even consider these programs:
These questions will help determine which program will work best for you and your objectives. Next, let’s summarize the most commonly used programs:
Each of these programs has advantages and disadvantages including ownership structure, tax planning, being risk-adverse, risk-reward, cash flows, fee structures, dealership involvement, initial capital, investment strategies, borrowings capabilities, etc. We can help educate you with each scenario, but you know your dealership best and the ultimate decision is yours.
Remember, this choice is not a one-size-fits-all. Be open-minded, consider your goals and think about your tax situation before you make this decision. It’s not a matter of “if” you should choose one of these programs, but “which one” is best for you. Let our SD Auto Dealer Advisers help talk through these programs. Contact Steve Barber (email@example.com, 412-697-5463) to get the discussion started.
This article was updated on May 7, 2020. Updates to this article will be made as new information becomes available. Since late March, the U.S. Small Business ...
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