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Spring 2015
Get a jump on
succession planning
6.0-7.0
Toyota 5.0-6.0
Ford 4.0-5.0
Hyundai 3.5-4.5
Nissan 3.0-4.0
Buick-GMC 3.0-3.8
Mazda 2.5-3.5
While each dealership is unique and actual
multiples will vary, these estimates can provide a good benchmark to use as a starting
point in gauging the blue sky value of your
dealership.
Objective tools
You can take away the guesswork with appraisal
software, such as NADA Appraisal Suite or Dealertrack AAX. These databases compile information
from reputable third-party sources, including J.D.
Power and Associates, AutoCheck and the NADA
A documented offer
Be aware that savvy shoppers who are unhappy
with an appraisal from one of your used car managers might return later when another manager is
on duty or request a second opinion from your
store across town.
So keep a computerized log of all used car
appraisals, sorted by VIN and if you operate
more than one store, share the database with
PR value
Plain and simple, auto buyers care about
trade-in offers. In fact, 57% of shoppers rated
their vehicles trade-in value as a major or
determining factor in their decision to buy,
according to results of an Autotrader survey
of new and used car buyers.
There are many things to keep tabs on in the
used car appraisal process, starting with the
market in your area. As you work to arrive at
a price, dont lose sight of the public relations
value of a fair offer and well-explained trade-in
process. If your customers are happy with the
price theyre quoted, word is likely to spread. n
This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional
advice or opinions on specific facts or matters, and, accordingly, assume no liability whatsoever in connection with its use. 2015 AFCsp15
hen you hire employees or buy equipment for your dealership, you look for high
performance and a proven ability to add value to your company. So when you want
accountants and business advisors who can show you how to increase your performance, you look for a firm with industry insight, experience and a track record of
guiding dealerships to greater success.
For over 25 years, Dannible & McKee, LLP has been serving automobile dealerships throughout New
York, Pennsylvania and Vermont. Our more than 40 dealer clients include single franchises as well as large
multi-franchise operations. Whatever your needs, we have professionals on staff who can provide you
with the specialized services required to operate a profitable dealership in todays increasingly complex
automobile industry.
To keep abreast of issues and developments affecting businesses like yours, our firm is a member of the
CPA Auto Dealer Consultants Association (CADCA), a group of leading accounting firms committed to
providing financial and consulting services of the highest quality and integrity to dealerships throughout
the United States. Our services to the automotive industry include:
Audits, reviews and financial planning
Corporate and personal tax planning
Assistance with bank financing
Cash management and LIFO accounting
Income tax planning for entities and owners
Internal compliance self audits on
demonstrator vehicles, sales tax reporting,
warranty contracts and other items
We would welcome the opportunity to partner with you and your business, and assist you in attaining
your growth and profitability objectives. Please contact Karl Jacob at 315-472-9127 or kjacob@dmcpas.
com and let us know if you have any questions about the ideas presented in the newsletter or about
other aspects of running a successful dealership. We look forward to hearing from you and helping you
increase your success.
Karl Jacob, CPA, CDA, is a tax partner who focuses his practice on the automotive industry. He has more
than 15 years experience in helping individuals, privately held companies and corporations with tax and
estate planning, financial planning and tax return preparation. Karl is a graduate of Robert Morris College
and a Member of the American Institute of Certified Public Accountants, the New York State Society of
Certified Public Accountants (including its Employee Benefits Committee) and the CPA Auto Dealer
Consultants Association.