2026 Is a Time for Action in Dealership Operations By Don Jacobs, President and Founder, Trydon Recent changes in federal tax law now allow businesses to fully deduct the cost of capital improvements — including both equipment and installation labor — in the year they are made, rather than depreciating them over multiple years. This provides a significant opportunity for auto dealerships to enhance their facilities while reducing tax liability. Energy Management and Outdoor Lighting Electricity costs for outdoor lighting are a recurring expense, and rates are projected to continue increasing annually by 8-10%. Effective energy management can significantly reduce these costs. Strategies include operating lights at full intensity only when needed — such as during business hours or periods of activity — and dimming them during low-traffic times. This approach can lower energy consumption by up to 90% without compromising safety or visibility. Vehicle Inventory Security Dealership theft is an increasing concern. According to the FBI, roughly 7,000 vehicles are stolen from U.S. dealerships each year. In response, the National Highway Traffic Safety Administration has designated July as Vehicle Theft Prevention Month. Physical barriers, such as locked gates, can prevent unauthorized access but may also discourage potential customers. In contrast, Trydon’s network lighting control system mounts atop existing light poles, providing after-hours monitoring to detect and discourage trespassers. The appropriate security approach depends on the dealership’s perceived risk, inventory size and cost considerations. Financial Planning for Capital Improvements Combining the new tax advantages with Trydon’s finance-based subscription program can significantly reduce the cost of implementing capital-improvement lighting projects. In addition, this program will preserve cash for operational needs by establishing recurring and predictable monthly disbursements, enabling the dealer to initiate much-needed site improvements concurrently. Incentive Programs for Energy Efficiency Throughout southern Kentucky, TVA Energy provides financial incentives for energy-efficient projects, including: • Replacing older lighting systems (metal halide) with high-performance dimmable LEDs. • Installing lighting control systems to optimize energy use. Leveraging these programs can further enhance cost savings and operational efficiency while supporting sustainability goals. Trydon is proud to be sponsoring the KADA Accelerated Leadership Program Summer Retreat in Nashville on August 18-19, and I’m looking forward to attending in person. It’s shaping up to be a great event and an ideal opportunity to learn more about what Trydon can do for your dealership. I hope to see you there! 24 KENTUCKY AUTO DEALER
RkJQdWJsaXNoZXIy MTg3NDExNQ==