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Dealerships

North to Present at 2019 National Vehicle Leasing Association Conference

Posted 5:30 PM by
Mike North, partner in Katz, Sapper & Miller’s (KSM) Buy Here – Pay Here and Dealership Services Groups will speak at the 2019 National Vehicle Leasing Association (NVLA) Conference, “Drive the Future.” Taking place March 27-29 at One Ocean Resort in Atlantic Beach FL, the event will focus on issues that will shape the future of the vehicle leasing industry.
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Indiana Changes Policy on Taxability of Documentation Fees

Posted 3:00 PM by
Indiana has recently issued an updated version of Sales Tax Information Bulletin #28S, changing its policy on the taxability of documentation fees, effective April 2, 2019. Historically, the Indiana Department of Revenue (IDOR) has treated these fees as if they were separate from the sale of the vehicle. It treated them as fees for helping a customer title and register a vehicle with the Indiana Bureau of Motor Vehicles (BMV). This is a nontaxable service in Indiana, so the documentation fees were not subject to sales tax. However, effective April 2, 2019, the IDOR will assume documentation fees are subject to sales tax if they are not “convenience fees,” a specific term that is defined in statute.
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How Revenue Recognition Is Impacting Buy Here – Pay Here Dealers

Posted 3:00 PM by
When the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, it represented perhaps the most extensive changes to accounting standards for revenue recognition ever. Experiencing a number of revisions and amendments since its issuance, the new guidance is effective for calendar years ending Dec. 31, 2018 for public companies and Dec. 31, 2019 for nonpublic companies; however, many have delayed analyzing how significantly the updated standards will impact their business.
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2018 NIADA/NABD Convention Recap

Posted 6:00 PM by
This past June, a record number of attendees descended upon Orlando’s Rosen Shingle Creek Resort for the combined National Independent Automobile Dealers Association (NIADA) / National Alliance of Buy Here, Pay Here Dealers (NABD) Convention & Expo. Consistent with prior conventions, the NIADA set out to fuse best practice counseling with emerging topic coverage for the used car industry, including the BHPH sector. Below are some key takeaways from the event.
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Indiana Sales Tax Reminders for Buy Here – Pay Here Dealers

Posted 5:00 PM by
There are some unique Indiana sales tax rules and regulations that apply to Buy Here – Pay Here (BHPH) dealers. It is important that dealers understand the difference between a vehicle return and a vehicle repossession, as well as the impact a related finance company (RFC) can have on the dealer’s ability to recover sales tax related to bad debt charge-off.
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Year-End Planning for Buy Here – Pay Here Operators

Posted 6:00 PM by
As the calendar turns to December, it is time to consider year-end planning opportunities and issues. While this article primarily addresses tax planning, there are other items to consider as well.
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Preparing Your Buy Here – Pay Here Dealership for a Pain-Free Audit

Posted 4:00 AM by
If your Buy Here – Pay Here (BHPH) dealership has bank debt, there is a good chance your lender requires you to have a financial statement review or audit. With 2017 winding down, now is the time to evaluate your year-end closing checklist to help ensure a pain-free audit. Below are a few tips to make your upcoming audit a success.
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New Accounting Guidance for Credit Losses Is Coming, Should I Panic?

Posted 12:00 PM by
Well…maybe. The allowance for credit losses is the most significant estimate on any set of BHPH financial statements. Since June 2016, when the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending the accounting guidance for measuring and recognizing credit losses, many industry accounting practitioners remain conflicted as to the impact this ASU will have on financial reporting practices and some dealers are wondering what this new ASU means for them.
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Do the Costs of a Lease Here-Pay Here Model Outweigh the Benefits?

Posted 5:00 AM by
While Buy Here-Pay Here (BHPH) owners are familiar with the benefits of the Lease Here-Pay Here (LHPH) model, many do not take the leap. Others may attempt it but fail to launch a successful LHPH operation.
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How Buy Here-Pay Here Dealers Should (Not) Manage Collections

Posted 4:00 AM by
As a Buy Here-Pay Here (BHPH) dealer, one of the cornerstones of your business is collections. But getting loans on the books is not enough – you have to collect them consistently and efficiently. In the process of pursuing overdue accounts, how far can you go to ensure you receive what is owed?
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