CATA News

Rev. Proc. 2022-42, Section 6.03 provides that sellers must file reports within fifteen days after the end of the calendar year (i.e., January 15, 2024).  The IRS is extending the due date sellers have to provide these reports until January 31, 2024.  As a result, for vehicles placed in service in calendar year 2023, you must submit required information about a qualifying clean vehicle sale to the IRS by January 31, 2024.

Report information to buyers

For vehicles placed in service in 2024 or later, providing buyers a copy of the seller report submitted to IRS Energy Credits Online and the confirmation that the IRS accepted the submission meets your reporting obligation.

For vehicles placed in service in 2023, you needed to provide the following information to buyers at the time of sale:

Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”

Find more details in Revenue Procedure 2022-42 and Revenue Procedure 2023-33.

[From CATA Approved Partner Dynatron] Dealers should have received an email from chairman@nadasurvey.com with instructions on how to complete the Dealer Attitude Survey, which is open until Thursday, Feb. 8., 2024. This deadline allows for the dealers and general managers attending the NADA Show in Las Vegas to complete the survey after attending their franchise meeting. The survey results provide auto manufacturers with a timely and comprehensive understanding of franchised dealer sentiment and facilitates constructive and beneficial discussions between OEMS and their dealers. Visit nadasurvey.com for questions or assistance.

General Managers (GMs) are indispensable figures whose responsibilities extend beyond the sales floor, encompassing the Fixed Ops department. At Dynatron Software, we understand that many GMs, often armed with robust sales backgrounds, may lack extensive experience in Fixed Ops. Our mission is to bridge this gap, empowering GMs to actively contribute to the profitability of the Fixed Ops department through strategic engagement and targeted initiatives.

Here are 4 key areas for General Managers to successfully navigate the road to Fixed Ops mastery!

1. Strategic Engagement: Unveiling the Power of GM Involvement in Fixed Ops

GMs who are immersed in Fixed Ops foster a culture of understanding, collaboration, and continuous improvement.

2. Transforming Service into Sales: A 3 Pillar Approach for Revenue Growth

Service is SALES! A General Manager with a strong background in sales should be partnering with their Service Managers to drive top-tier performance.

3. Efficient Reporting for Informed Decision-Making: The Power of Data

Establishing a learning environment is crucial. GMs must have streamlined reporting tools to provide accurate snapshots of organizational goals.

4. Cracking the Code on Technician Time: Unleashing Operational Efficiency

Insight into Technician time empowers GMs to enhance overall efficiency, contributing to profitability and customer satisfaction.

Together with Dynatron Software, GMs can confidently steer their organizations toward success in the intricate world of Fixed Ops. Check out our full article here.

Are you going to NADA in Las Vegas? We’d love to meet with you, we will be at booth 7051N! We know the weekend can get busy, so we encourage you to schedule some time to meet with us ahead of time using this link. Just for meeting with us, you’ll receive a golden ticket wristband to attend our VIP Pre-Party at The Pepper Club on Saturday, February 3rd at 4:30pm. You’ll enjoy a top-shelf open bar, award-winning food, and the chance to network with industry professionals. Secure your invitation before the guest list fills up!

[From the NADA] For Buick dealers who have opted to accept buyouts offered by GM to voluntarily terminate their Buick franchise agreements, experienced CPA Jay Goldman, who serves as chair of Boyer & Ritter LLC’s Dealership group, has identified some important tax issues related to the buyout compensation paid by GM for consideration.

What You Need to Know

Please see example below: 

If the Buick franchise was purchased with other franchises simultaneously and the entity continues to own them, the Buick goodwill would continue to be amortized with the other franchises and the entire amount of the proceeds would be considered capital gain.

Please see example below:

The information provided here is for informational purposes only and does not constitute legal or tax advice. Affected Buick dealers should consult their attorney, CPA or other professional advisor familiar with the applicable laws to obtain specific advice regarding these matters to ensure proper tax reporting for their specific transactions.

Jay Goldman works in Boyer & Ritter LLC’s office in Camp Hill, Pennsylvania and may be reached at 717.761.7210 or jgoldman@cpabr.com.

NADA and the Texas Automobile Dealers Association (TADA) filed a challenge to the FTC’s Final Vehicle Shopping Rule in the U.S. Court of Appeals for the 5th Circuit. The purpose of the legal challenge is to prevent the implementation and enforcement of the rule, which dealers must comply with by July 30, 2024. NADA is also supporting federal legislation to this effect. A simple one-page guide provides two key messages explaining the action. The CATA will provide any updates from the NADA.

It’s important to stress the need for NADA PAC support to assist with efforts such as this one that will negatively impact consumers, but also the consumer.

[From Automotive News] General Motors and Ford Motor Co. eked out small fourth-quarter gains while Toyota Motor Corp. and Honda Motor Co. finished 2023 with double-digit sales increases in December, capping the U.S. auto industry's best full-year total since 2019.

But there are signs of a slowing market as automakers head into 2024, as elevated borrowing costs and new-vehicle prices sideline some shoppers. Among major automakers, Stellantis was the only one to post a fourth quarter and annual decline.

SAAR outlook
The seasonally adjusted, annualized rate of sales is projected to tally 15.1 million to 15.4 million for December, forecasters say, up sharply from 13.77 million in December 2022. Still, the sales pace has cooled since its 2023 peak of 16.22 million in June.

Inventory
New-car and light-truck stockpiles totaled 2.56 million vehicles at the beginning of December, more than 900,000 above levels a year earlier, Cox Automotive said. J.D. Power and GlobalData estimated that retail inventory finished December around 1.7 million vehicles, a 7.6 percent increase from November and a 55 percent jump from December 2022. However, stockpiles remain 40 percent lower than before the COVID-19 pandemic, they said.

Incentives
Average new-vehicle discounts were expected to rise $145 from November and 91 percent from December 2022 to an estimated $2,458 last month, J.D. Power and GlobalData said. In November, incentives exceeded $1,000 per vehicle at every major automaker; in the case of the Detroit 3, incentives topped $2,400, according to Motor Intelligence.

Click here to get complete sales results for 2023 (subscription required).

The 2024 What Drives Her program returns to the Chicago Auto Show Media Preview held Feb. 8 at McCormick Place. This program, now in its seventh year, celebrates women in the industry who are deserving recognition.

At a local level, the Best Retailer award calls on CATA dealers to nominate an extraordinary female at your dealerships. 

Who Should Be Nominated for the Best Retailer Award? This person demonstrates a high level of commitment and drive to any task at hand, whether that’s in sales, service, finance or technical support. Nominees must be employed by a Chicago-area dealership.

Prior year award recipients include Megan Deters, sales manager at Brilliance Honda, and Soledad Romero, store manager at Romeoville Toyota.

Nomination submissions are due Monday, January 15.

Submit Your Nomination

The 2024 COX Automotive Sales Forecast for 2024 details five key insights that will likely steer future sales. Those include the following:

COX also detailed some interesting trends in 2023:

Click here to read the full forecast.

Beginning January 1, 2024, new Federal regulations go into effect that will require many corporations, limited liability companies, and other U.S. and foreign entities created in or registered to do business in the United States to report information about their beneficial owners—the persons who ultimately own or control the company—to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). 

These new reporting requirements were created in 2021 under the Federal Corporate Transparency Act to strengthen the integrity of the U.S. financial system by making it harder for illicit actors to use anonymous shell companies to launder their money or hide assets.   

Companies formed or registered before January 1, 2024, will have until January 1, 2025, to file their initial beneficial ownership information (BOI) reports. Reporting companies created on or after January 1, 2024, and before January 1, 2025, must report their BOI within 90 days of their formation.  After January 1, 2025, the BOI must be filed within 30 days.

Reporting companies must report beneficial ownership information electronically through FinCEN's website. Reporting via the FinCEN website is not yet operative, reports will be accepted starting on January 1, 2024.

 Under the rule, federal, state, and local law-enforcement agencies, foreign governments, and financial institutions would be able to obtain the information, but it would be housed in a secure registry, and many of those seeking it would have to make formal requests and face other restrictions. Some requesters would have to obtain court orders to get the information or work through intermediaries.

To learn more about this reporting requirement, please see the resources below.