May has been a mixed bag. According to Cox Auto's Market Insights, here's how the market is cruising into June: 📈 Used-vehicle inventory rose to 2.27 million units in May 2024, a 6% increase year-over-year ⬆️ Days’ supply of used vehicles increased slightly to 46 days 🏷️ The average listing price increased slightly month-over-month to $25,571 but is down 6% from the previous year 🔎 Vehicles under $15,000 are in constrained supply with only 36 days' supply, reflecting affordability challenges The market is certainly not experiencing the same "tax seasons" of yesteryear. We're now in a post-tax refund slowdown affecting both new and used vehicle sales. Building relationships with partners you trust can make a world of a difference, from staff trainers, digital marketing platforms, DMS, to floor plan partners. At Lever, we partner with dealers to provide floor plan services and more to assist with: 💸 Managing cash flow more effectively, freeing up operating capital ⚡️ Allowing for quick responses to market demand changes in inventory 🚙 Providing immediate funds for purchasing inventory, allowing dealers to maintain optimal stock 📅 Efficiently turn over inventory, maintaining optimal days’ supply and minimizing holding costs Choose a partner who understands your needs and helps you navigate these market challenges with confidence. Let’s drive forward together.
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Automotive Executive | Success Driver | Customer Centric Performance Strategy Mgmt | Accountable Data Driven Processes Growing Revenue, Intelligent Marketing, Technology & Sales | Go-Giver | Parallel Thinking | Analytics
How will the upcoming changes to the #EV #TaxCredit claim effect #Automotive #Marketing and sales? What changes are you looking to make * In-Store Process * Content & Education * Marketing & Advertiving * Acquisition & Merchandising Do you think these changes will make leasing less attractive? Do you think there will be an even larger impact on depreciation?
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Great news, life just got easier for consumers in recognizing tax credits for EV purchases. 💵 How can your dealership leverage this and get the word out to your market? G4 Media has the solutions! 🚀 https://lnkd.in/giGz5txi #dealershipmarketing #sellmorecars #marketingautomation #marketpointauto
US issues auto dealers over $580 million in advance EV tax rebates this year
reuters.com
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Accelerating the Shift to Cleaner Transportation | SVP of Sales | Financial Technology | Thought Leadership | Fleet Management
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) released guidance that will lower costs for consumers and help car dealers grow their businesses by increasing access to Inflation Reduction Act credits at point of sale for new and previously owned clean vehicles. Under the Inflation Reduction Act, consumers can choose to transfer their new clean vehicle credit of up to $7,500 and their previously owned clean vehicle credit of up to $4,000 to a car dealer starting January 1, 2024. This will effectively lower the vehicle’s purchase price by providing consumers with an upfront down payment on their clean vehicle at the point of sale, rather than having to wait to claim their credit on their tax return the next year. #EV #electric #fleet #fleets #fleetmanagement #procurement #IRA #Zeti
Getting a $7,500 tax credit for an electric car will soon get a lot easier
npr.org
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Happy Monday! If you’re buying or replacing a vehicle that you’ll use in your business, be aware that a heavy SUV may provide a more generous tax break this year than you’d get with a business car. New and used heavy SUVs, pickups and vans acquired and put in service in 2023 are eligible for 80% first-year bonus depreciation. However, you must use the vehicle more than 50% for business. If your business use is 51% or more, you can deduct that percentage of the cost in the first year the vehicle is placed in service. This tax break is available only if the manufacturer’s gross vehicle weight rating is above 6,000 pounds. Contact us to help evaluate if this is the right move for your business. #middaymonday #smallbusinesstips
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Need to finance a fleet of cars or vans? We can tell you how... When profit rates are more than your cost of finance, using someone else's money to finance your fleet makes more sense. And the reverse is true. The lower the rate of profits you make, the harder it will be to cover interest costs for external vehicle funding. When your profit rates are less than your cost of finance, use your own money to finance your fleet. Don't forget the effect of taxation. If your business is paying profits taxes then your net return in the business will be lower. That means using finance will correspondingly be more expensive, even though finance charges are usually tax deductible (except for leases on cars with higher CO2 outputs). Make sure you take account of the different rules on tax relief and VAT recovery on buying compared to leasing vehicles, especially for electric cars and vans. And finally, remember that once you've spent your money on a fleet the money is gone - you can't get your money back without selling the fleet if business conditions turn down, revenues drop and you need to raise cash. Want to see more on this topic? Click on the link in the comments for the full blog article on the DriveSmart website. #automotive #fleet #leasing #fleetmanagement #electricvehicles #tax
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Here is a chart that is receiving a lot of attention. Dealership pre-tax profits are on the minds of many (I suggest all) dealers as they continue to decline. View this slide and see more of the presentation from NADA: https://lnkd.in/ekSmuyVS.
At the 2024 AutoTeam America Buy-Sell Summit and Dealer/CEO/CFO Forum in Las Vegas, Alan Haig presented the annual dealership M&A update. Several data points drew attention from the crowd, including where we believe dealership pre-tax profits are heading in 2024. When compared to pre-pandemic, pre-tax profits continue to be strong, therefore, making dealerships desirable assets! Get the full presentation here: https://bit.ly/495gfTH
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Buying a car early in the year can have a few advantages compared to buying it later: 1. Availability of new models: Car manufacturers often release their new models early in the year, typically in the spring or early summer. By purchasing early, you have access to a wider selection of the latest models with updated features and technology. This allows you to stay ahead of the curve and enjoy the latest advancements in automotive technology. 2. More dollar power: As the year progresses, dealerships may be more motivated to sell their remaining inventory from the previous year. By buying early, you have the advantage of incentives with dealerships while they still have a good amount of inventory. This can potentially lead to greater variety of available models. 3. Resale value: The value of a car starts to depreciate as soon as it is driven off the lot. By purchasing early in the year, you have the potential to maximize the resale value of your car. This is because the car will be considered a newer model for a longer period of time, which can make it more appealing to future buyers if you decide to sell or trade it in. 4. Tax benefits: Depending on where you live, buying a car early in the year might provide you with certain tax benefits. For example, some jurisdictions allow you to deduct sales tax paid on a vehicle purchase from your annual income tax return. By buying early, you can take advantage of these potential tax deductions in the current tax year. #marinettedodge #riversidemarinette #riversideauto #askforpat #whiletheylast #bestvariety #cardeals #Wisconsin #michigan #bestbuys #timing
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As we navigate the first quarter of 2024, dealership profits continue to decline. However, even with the drop, profits are still more than double what they were prior to COVID earnings. Buyers are aggressively seeking stores as profits remain strong, and for sellers, this is great news if they are considering an exit in the next year. This was just one data point from Alan's annual buy-sell update at NADA. If you missed it, download the presentation here: https://lnkd.in/e5VkK9Sk.
At the 2024 AutoTeam America Buy-Sell Summit and Dealer/CEO/CFO Forum in Las Vegas, Alan Haig presented the annual dealership M&A update. Several data points drew attention from the crowd, including where we believe dealership pre-tax profits are heading in 2024. When compared to pre-pandemic, pre-tax profits continue to be strong, therefore, making dealerships desirable assets! Get the full presentation here: https://bit.ly/495gfTH
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“I need to buy a car that’s over 6,000 lbs to write it off, right?” Not quite - and I would suggest you explore vehicles under 6,000 lbs as well. While everyone loves to write off 100% of a vehicle purchase, there are some upsides to consider with other vehicle depreciation strategies. First off, for vehicles under 6,000 lbs, the maximum you can bonus in the first year is $20,200. This means that if you can buy an economical car under 6,000lbs, you can still write off the whole car! But it doesn’t cost you an arm and a leg. Second, if you write off a car in the first year and then trade it in the next, you are simply shifting income from one year to the next and this may cause more headache than it is worth without proper planning. Third - don’t knock the mileage deduction. For certain taxpayers the mileage deduction is great because it includes maintenance, gas and depreciation even if you don’t incur a lot of those expenses. Plus it makes the bonus depreciation recapture simpler too. Don’t let the tax tail wag the dog when it comes to vehicle purchases. If you found this post helpful, please like and share! #taxes #realestate
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So, if I'm looking for a new car come first of year, maybe using my Christmas bonus (don't I wish), I should definitely consider an Electric Car. Because the tax credit (for those electric cars which get one) can be used as a downpayment on the car. And that just might make it affordable. Of course, that's not to mention all the money I'll save on gas and maintenance. Is that what I'm reading here?
🚨 NEW: U.S. car dealers applying federal tax credits to eligible new and used electric vehicle purchases at the point of sale next year can expect to be reimbursed within 72 hours, the U.S. Treasury Department said Friday. The reimbursement time frame was part of a handful of new guidance proposed by the Treasury and IRS to provide dealers with additional information on registration requirements and how the mechanics of the credit transfer will work. More details via Automotive News: https://lnkd.in/e2xwVtWP
Dealers to be reimbursed for EV credit transfers within 3 days, Treasury says
autonews.com
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