tax updates — including the sunset of provisions of the TJCA that may impact the direction you take. • A CPA who fully grasps how your strategy affects your business finances and impacts dealership valuation. • An attorney who has the experience to advise you on how to structure your program legally for maximum effect and resilience. • A banking advisor who can set up appropriate accounts and structure trusts for your plan. FLEXIBILITY IS KEY TO IMPLEMENTING AN EFFECTIVE LONG-TERM STRATEGY Change is a constant for your business. From evolving tax laws and fluctuating business cycles to market swings and macroeconomic ebbs and flows, external forces that affect your dealership are constantly shifting the playing field. Your goals and plans change over time as well, so your profit participation program shouldn’t be set in stone. Make ongoing conversations about your current F&I plan a priority — the effectiveness of your strategy can diminish if it remains static. It’s essential for dealers to work with a program provider that brings multiple options and a proactive mindset — a partner who’s prepared to adapt your approach to address your changing needs. Your advisory team should meet regularly to assess the status of your plan (quarterly or semi-annually is ideal). That includes discussing any changes to your objectives and examining any shifts in the broader business landscape or economic environment that might impact your dealership. Your strategy can provide meaningful earnings to support overall dealership profits or help meet your targets. Depending on your course of action, F&I profit participation can impact the timing of your business cash flow. As part of your planning, F&I and reinsurance can be invaluable tools that expand your options for dealership transition and succession planning. Special thanks to Matt Joffe, managing shareholder for Total Warranty Services (TWS). TWS specializes in creating customized F&I programs including vehicle service contracts, as well as all ancillary protection products. The TWS participation team can provide a customized underwriting participation program to fit each client’s unique goals. TWS has worked with over 1,600 auto dealerships and is one of the nation’s top 10 largest F&I product providers with over $1.5 billion in written premium and over seven million contracts sold. To find out more about how TWS can help your dealership, contact Matt Joffe at mjoffe@totalwarrantyservices.com. Truist Bank, Member FDIC. ©2024 Truist Financial Corporation. Truist, the Truist logo and Truist Purple are service marks of Truist Financial Corporation. Equal Housing Lender. FROM EVOLVING TAX LAWS AND FLUCTUATING BUSINESS CYCLES TO MARKET SWINGS AND MACROECONOMIC EBBS AND FLOWS, EXTERNAL FORCES THAT AFFECT YOUR DEALERSHIP ARE CONSTANTLY SHIFTING THE PLAYING FIELD. 24 Virginia Auto Dealer
RkJQdWJsaXNoZXIy ODQxMjUw