Dealerships Archives - Brady Martz & Associates

The Future of Dealership Marketing: Digital Strategies to Drive Sales

February 27, 2025/in Dealerships/by Justin Burchill

In 2025, marketing for auto dealerships is evolving at a rapid pace. With the increasing reliance on digital platforms and the ever-changing consumer behavior, dealerships must adapt their marketing strategies to stay competitive and drive sales. Traditional methods alone no longer suffice, and digital marketing is taking center stage in dealership success.

In this blog, we’ll explore the key digital strategies that auto dealerships can adopt to connect with customers, boost sales, and remain ahead of the competition in an increasingly online world.

Embrace Personalization with Data-Driven Marketing

One of the most powerful tools in modern marketing is the ability to personalize. Consumers today expect personalized experiences, and that’s especially true for auto buyers. Using data collected through CRM systems, websites, and customer interactions, dealerships can craft highly targeted marketing campaigns that cater to individual preferences.

Key Strategies:

Targeted Email Campaigns: Use segmentation to send personalized offers based on customer behavior—such as trade-in history, previous models viewed, or service records.
Customized Web Content: Tailor website content to display vehicles that align with a customer’s search history, location, and demographic.
Remarketing Ads: Leverage cookies to follow potential customers with ads for the vehicles they’ve shown interest in, increasing the likelihood of conversion.

Benefits:

Increased customer engagement and loyalty.
Higher conversion rates through relevant messaging.
Better ROI on marketing spend.

Invest in Video Marketing to Engage and Inform

Video is an essential tool in modern marketing. It allows auto dealerships to showcase their inventory, offer virtual tours, and build emotional connections with potential buyers in a way that static images simply can’t.

Video Marketing Strategies:

Virtual Showrooms: Create walk-throughs of new models or pre-owned cars to give customers an immersive experience from the comfort of their homes.
Customer Testimonial Videos: Share real stories from satisfied customers to build credibility and trust.
How-to Videos: Provide value with content like vehicle maintenance tips, how-to guides, and feature breakdowns.

Benefits:

Increased customer trust and brand credibility.
Enhanced customer engagement by showcasing vehicles in action.
Higher conversion rates by offering a detailed, accessible view of what you’re selling.

Leverage Social Media to Build Community and Drive Traffic

Social media remains one of the most cost-effective ways to reach potential buyers. Whether through Facebook, Instagram, TikTok, or LinkedIn, social media platforms offer a variety of tools for auto dealerships to promote their inventory, engage with their audience, and drive traffic to their website.

Effective Social Media Strategies:

Paid Ads and Promotions: Use Facebook or Instagram ads to target specific demographics, such as local buyers or those searching for particular vehicle types.
User-Generated Content (UGC): Encourage satisfied customers to post photos or reviews about their vehicles, and repost this content on your dealership’s channels.
Live Streams and Events: Host live Q&A sessions, virtual car reveals, or behind-the-scenes tours to connect with your audience in real-time.

Benefits:

Increased brand visibility through organic and paid reach.
Stronger relationships with your local community.
Direct traffic to your website or physical location, driving conversions.

Adopt Chatbots and AI to Enhance Customer Service

As customers expect faster responses and 24/7 availability, chatbots and AI-driven customer service are becoming must-have tools for auto dealerships. These technologies can assist with everything from answering basic inquiries to scheduling test drives and providing financing information.

AI & Chatbot Strategies:

Instant Customer Assistance: Use chatbots to answer common questions about vehicle availability, pricing, and financing.
Lead Qualification: Automatically qualify leads by gathering essential information, such as trade-in vehicles and financing preferences, before passing them to a sales representative.
Customer Support After Hours: Offer assistance to customers outside of regular business hours, making your dealership available to potential buyers around the clock.

Benefits:

Increased customer satisfaction with instant responses.
More efficient lead management and higher conversion rates.
Reduced staff workload by handling repetitive inquiries.

Optimize Your Website for Mobile and SEO

With more consumers shopping for cars online, ensuring that your dealership’s website is mobile-friendly and SEO-optimized is essential. A user-friendly website and strong online presence can significantly impact your dealership’s ability to capture leads and drive sales.

Mobile Optimization and SEO Strategies:

Responsive Design: Make sure your website functions smoothly on all devices, especially smartphones, where many customers browse first.
Local SEO: Optimize for local search terms like “car dealerships near me” or “best deals on used cars in [city name]” to ensure that local buyers find your dealership online.
Fast Load Times: Speed is crucial—ensure your website loads quickly on mobile devices to reduce bounce rates.

Benefits:

Higher search engine rankings, bringing in organic traffic.
Better user experience for mobile customers, leading to more inquiries.
Increased conversions by making it easy for customers to browse, inquire, and schedule visits.

Implement Customer Retargeting to Keep Your Dealership Top of Mind

Not all customers will buy on their first visit, but with the right retargeting strategy, you can keep your dealership in front of them long after they leave your website.

Retargeting Strategies:

Email Retargeting: Send personalized follow-up emails featuring vehicles the customer previously viewed, with additional incentives or offers.
Social Media Retargeting: Use retargeting ads on Facebook and Instagram to remind potential buyers of vehicles they were interested in.
Abandoned Cart Recovery: If a customer starts an application or inquiry and abandons it, automatically follow up with a reminder or incentive.

Benefits:

Increased conversions from customers who were previously undecided.
Cost-effective way to stay on customers’ minds.
Improved ROI on initial marketing spend.

How Brady Martz Can Help

At Brady Martz, we understand that digital marketing is a game-changer for auto dealerships. As experts in financial planning and tax strategies for dealerships, we can help you navigate the complexities of digital marketing while ensuring your operations remain profitable.

Contact Brady Martz today to learn more about how we can support your dealership’s digital success.

Financing Trends in the Auto Industry: What to Expect in 2025

February 26, 2025/in Dealerships/by Justin Burchill

As auto dealerships navigate 2025, financing trends continue to evolve in response to economic conditions, interest rates, and consumer demand. With affordability remaining a top priority for both dealerships and buyers, understanding financing trends is essential for maintaining sales volume and profitability.

In this article, we explore the key financing developments shaping the auto industry and how dealerships can adapt to maximize opportunities.

Interest Rate Stability—But at Higher Levels

After the sharp rate hikes of 2022-2023, interest rates have begun to stabilize. However, they remain significantly higher than pre-pandemic levels, making financing a continued challenge for dealerships and consumers alike.

What This Means for Dealerships:

Higher borrowing costs for floor plan financing mean dealerships must be more strategic about inventory management.
Consumers may delay purchases or opt for shorter loan terms to minimize interest costs.
Leasing could see an uptick, as buyers look for lower monthly payments without long-term commitment.

How to Adapt:

Work with lenders to secure more favorable floor plan financing terms and reduce carrying costs.
Offer incentive-driven financing promotions to ease affordability concerns.
Educate customers on total loan costs vs. monthly payments to help them make informed decisions.

Shift Toward Longer Loan Terms & Creative Financing Solutions

With vehicle prices still elevated, more consumers are opting for extended loan terms—some stretching to 84 months or more—to keep monthly payments manageable.

Key Trends:

Lenders offering lower down payment options to encourage purchases.
Rising popularity of balloon loans that provide lower payments upfront with a lump sum due at the end.
Credit unions and alternative lenders gaining traction as buyers seek more competitive rates.

How Dealerships Can Adjust:

Partner with lenders to offer flexible financing structures that appeal to cost-conscious buyers.
Clearly outline the long-term financial implications of extended loan terms to prevent future affordability issues.
Provide pre-owned financing options for customers looking to avoid high new-car prices.

Growth of Pre-Owned & Certified Pre-Owned (CPO) Financing

The high cost of new vehicles has driven strong demand for used and CPO vehicles, increasing the need for competitive financing options in this segment.

Why This Matters:

The average new car price remains above $45,000, pushing more buyers toward affordable pre-owned options.
Lenders are expanding loan programs for used cars, making financing more accessible.
CPO vehicles provide a balance of affordability and reliability, appealing to buyers who want warranty coverage without new-car prices.

Dealership Action Steps:

Highlight low-interest financing specials on used and CPO vehicles.
Educate customers on CPO benefits, such as extended warranties and multi-point inspections.
Offer in-house financing options for credit-challenged buyers looking to purchase reliable used vehicles.

Expanding Use of Digital & AI-Driven Financing Tools

Technology continues to reshape the financing process, with more dealerships embracing AI-powered lending platforms and digital pre-approval tools.

What’s Changing:

Faster loan approvals through AI-driven credit analysis.
Increased adoption of online financing applications, allowing customers to secure approvals before visiting the dealership.
Customized loan offers based on real-time credit data and buyer profiles.

How Dealerships Can Benefit:

Streamline financing approvals to reduce paperwork and improve customer experience.
Implement online pre-qualification tools to attract serious buyers before they step on the lot.
Use AI-powered loan matching to connect customers with the best financing options based on their financial profile.

Manufacturer Incentives & Dealer Financing Strategies

To boost sales amid affordability concerns, manufacturers are expected to roll out more aggressive financing incentives, rebates, and lease specials in 2025.

Expectations for This Year:

0% APR financing on select models to entice buyers amid high interest rates.
Cash rebates and trade-in bonuses to encourage dealership traffic.
Dealer participation in subsidized financing programs, allowing them to offer exclusive low-interest loans.

How to Take Advantage:

Stay informed on OEM incentive programs and actively promote them.
Train sales teams to highlight financing deals as part of the sales conversation.
Offer dealership-exclusive financing specials for loyal customers or returning buyers.

How Brady Martz Can Help

At Brady Martz, we know that navigating high interest rates, inventory financing, and shifting consumer preferences presents unique challenges for auto dealerships. With financing playing a key role in your success, having a strategic approach is more important than ever.

Our team is here to help you develop a plan that strengthens your financial stability and drives long-term profitability. Contact us today to learn how Brady Martz can support your dealership’s success in 2025 and beyond.

Optimizing Inventory Management: Reducing Costs While Meeting Demand

February 23, 2025/in Dealerships/by Justin Burchill

Effective inventory management is critical for auto dealerships, especially as fluctuating consumer demand, interest rates, and supply chain disruptions continue to shape the industry in 2025. Balancing the right mix of vehicles while keeping carrying costs under control can make the difference between a dealership’s success and financial strain.

Below, we explore strategies dealerships can use to optimize inventory management, reduce expenses, and ensure they meet customer demand efficiently.

Understanding Inventory Challenges in 2025

Auto dealerships are facing several ongoing inventory challenges that require a strategic approach:

High carrying costs – Interest rates remain elevated, making floor plan financing more expensive.
Changing consumer preferences – Demand for fuel-efficient and pre-owned vehicles continues to grow.
Supply chain fluctuations – While inventory levels have improved since 2021-2022 shortages, certain models and parts still face delays.
Depreciation risks – Keeping vehicles on the lot too long can lead to decreased profitability and forced markdowns.

To stay competitive, dealerships must focus on cost-effective inventory control without sacrificing the ability to meet customer needs.

Strategic Inventory Planning

A proactive inventory strategy helps dealerships minimize excess stock while ensuring they have the right mix of vehicles.

How to Optimize Inventory Planning:

Use data-driven forecasting – Leverage historical sales trends, local demand patterns, and market analytics to anticipate which models will sell best.
Adjust orders based on seasonality – Stock high-demand vehicles ahead of peak buying seasons while reducing orders on slower-moving models.
Monitor days-in-inventory metrics – Keep a close eye on how long vehicles stay on the lot and set goals for turnover to avoid excessive carrying costs.
Diversify vehicle offerings – While some segments remain in high demand, maintaining a balanced mix of new, used, and certified pre-owned (CPO) vehicles can help attract a wider customer base.

By refining inventory planning strategies, dealerships can reduce unnecessary capital investment while keeping inventory aligned with consumer demand.

Maximizing Pre-Owned and Certified Pre-Owned Inventory

With rising vehicle costs and interest rates, pre-owned and CPO vehicles remain a key profit driver for many dealerships. Demand for affordable, fuel-efficient, and lightly used vehicles is expected to stay strong throughout 2025.

Best Practices for Managing Pre-Owned Inventory:

Increase trade-in incentives – Encouraging trade-ins can help maintain a steady flow of quality used vehicles while improving new vehicle sales.
Strengthen reconditioning processes – Efficient turnaround times for pre-owned vehicles allow dealerships to sell them faster and at higher margins.
Expand digital sales efforts – Online listings, transparent pricing, and virtual inspections help move pre-owned inventory more quickly.
Implement a vehicle sourcing strategy – With wholesale auction prices fluctuating, a diversified approach to sourcing used cars—including customer buybacks and direct purchases—can help maintain optimal inventory levels.

A well-managed pre-owned inventory strategy can create a reliable revenue stream while attracting budget-conscious buyers.

Reducing Carrying Costs and Improving Turnover

The longer a vehicle sits on the lot, the higher the dealership’s expenses due to financing, insurance, and depreciation. Managing turnover efficiently is crucial for maintaining profitability.

How to Reduce Carrying Costs:

Prioritize fast-moving models – Focus marketing and promotional efforts on vehicles with high demand to accelerate sales.
Offer flexible pricing and financing options – Competitive financing packages and strategic discounting on aging inventory can encourage quicker sales.
Monitor floor plan financing interest rates – Work with lenders to secure the most cost-effective financing terms for inventory purchases.
Leverage data analytics – Real-time insights on vehicle performance can help dealers make smarter decisions on which models to reorder or discount.

Efficient inventory turnover leads to lower holding costs and improved cash flow, allowing dealerships to reinvest in high-demand vehicles.

Leveraging Technology for Smarter Inventory Management

Modern dealerships are increasingly turning to technology-driven inventory management tools to optimize efficiency and reduce overhead costs.

Key Technologies to Consider:

AI-powered demand forecasting – Predictive analytics tools help dealers anticipate customer preferences and adjust inventory accordingly.
Integrated DMS (Dealer Management Systems) – Advanced DMS platforms provide real-time insights into sales trends, inventory movement, and customer behavior.
Automated pricing software – Dynamic pricing tools adjust vehicle prices based on market demand, helping dealerships stay competitive.
RFID and GPS tracking – These tools help manage lot organization and reduce the risk of misplaced inventory.

By embracing technology-driven inventory solutions, dealerships can increase efficiency, reduce human error, and maximize profitability.

How Brady Martz Can Help

At Brady Martz, we understand the complexities of inventory management and how it impacts a dealership’s financial health. Our team provides tailored financial and operational insights to help dealerships reduce costs, improve inventory turnover, and maximize profitability.

Contact us today to learn more about how we can support your dealership’s success.

Adapting to Industry Shifts: How Auto Dealerships Can Prepare for Changing Consumer Preferences

February 21, 2025/in Dealerships/by Justin Burchill

The automotive industry is constantly evolving, and as we move into 2025, dealerships must stay ahead of shifting consumer behaviors to remain competitive. From digital buying trends to increased demand for fuel efficiency and affordability, today’s dealerships need to adjust their strategies to meet changing customer expectations while maintaining profitability.

Below, we explore key trends shaping the industry and how dealerships can effectively respond in the coming year.

Shifting Consumer Preferences in Auto Sales

Modern car buyers have become more research-driven, often spending weeks online comparing models, prices, and financing options before ever stepping onto a dealership lot. This trend has led to an increased demand for seamless digital experiences that blend online convenience with in-person service.

How to Adapt:

Enhance your online presence by ensuring your website is user-friendly, mobile-optimized, and provides clear details on inventory, financing options, and trade-in values.
Offer virtual buying options such as virtual test drives, online trade-in appraisals, and remote financing approvals to streamline the process.
Expand digital marketing efforts by leveraging paid social media ads, email campaigns, and local SEO strategies to attract and engage potential buyers.

A dealership’s website is often the first point of contact for potential customers. In 2025, investing in an interactive and transparent digital experience will be critical in building trust and driving sales.

Demand for Fuel Efficiency and Affordability

While electric vehicles (EVs) continue to be a talking point in the industry, many dealerships serve customers who prefer traditional gasoline-powered and hybrid vehicles due to affordability, infrastructure concerns, and familiarity. With rising interest rates and vehicle costs expected to remain high in early 2025, fuel efficiency and budget-friendly options will be key selling points.

How to Adapt:

Highlight high-MPG vehicles as an alternative to higher-priced EVs.
Offer competitive financing options by working with lenders to provide attractive financing and lease deals that appeal to cost-conscious buyers.
Educate customers on the total cost of ownership by creating marketing materials that compare long-term fuel savings and maintenance costs of different vehicle types.

Consumers will continue to weigh affordability over trendiness in 2025, so dealerships that focus on practical, cost-effective solutions will be well-positioned for success.

The Growing Popularity of Pre-Owned and Certified Pre-Owned Vehicles

Supply chain disruptions and rising new vehicle prices over the past few years have pushed more consumers toward pre-owned and certified pre-owned (CPO) vehicles as cost-effective alternatives. This trend is expected to continue into 2025, making it essential for dealerships to prioritize used vehicle inventory and trade-in programs.

How to Adapt:

Expand trade-in incentives to offer competitive trade-in values and maintain a strong pre-owned inventory.
Promote CPO benefits such as extended warranties, thorough inspections, and financing incentives to increase buyer confidence.
Utilize data to optimize inventory by using market trends and consumer demand analytics to stock high-demand models and avoid overstocking slow-moving units.

A well-managed pre-owned vehicle strategy can provide a steady revenue stream and attract budget-conscious buyers, making it a crucial focus area for dealerships in 2025.

Expanding Fixed Operations and Service Offerings

With more consumers keeping their vehicles longer due to rising prices, demand for service, maintenance, and repairs continues to grow. Fixed operations can provide a reliable revenue source for dealerships, helping balance out fluctuations in vehicle sales.

How to Adapt:

Offer maintenance packages and service subscriptions, such as prepaid maintenance plans or subscription-based service options, to lock in long-term customers.
Invest in technician training and equipment to ensure your service department is equipped to handle advanced diagnostic tools and new vehicle technology.
Leverage seasonal promotions, such as winterization specials in early 2025, to increase service visits and customer retention.

With unpredictable vehicle sales trends, a strong service department can create lasting customer relationships and boost dealership profitability.

How Brady Martz Can Help

At Brady Martz, we specialize in helping auto dealerships navigate industry changes with confidence. Our team provides expert financial guidance on inventory management, tax strategies, operational efficiencies, and profitability optimization.

We can assist with:

Tax planning and compliance to help you maximize deductions and incentives
Financial forecasting to prepare your dealership for evolving market trends
Profitability analysis to help streamline operations and improve margins
Inventory and cost management strategies to align with consumer demand

As 2025 unfolds, dealerships that stay agile and proactive will have a competitive edge. Whether you need assistance in tax strategy, financial planning, or operational improvements, Brady Martz is here to help.

Contact us today to learn how we can support your dealership’s success in the coming year.

Brady Martz Welcomes Green & Miller

January 9, 2025/in Dealerships, Firm News, News/by Ashley Kelsch

Brady Martz & Associates is excited to announce that the Firm is expanding its dealerships team and footprint with the addition of Green & Miller, P.C. based in Corinth, Texas. This marks an important milestone for Brady Martz as they welcome additional talent to the dealerships industry team and expand the reach of their dealerships client base from 18 to 24 states.

“This transition represents not only growth in this particular industry but also an opportunity to combine the unique strengths of both firms,” Brady Martz CEO Stacy DuToit said. “Green & Miller brings expertise and valued relationships to the Firm, and we are eager to support them in delivering the high-quality service their clients have come to expect.”

Green & Miller has been providing accounting, tax, and advisory services to clients for nearly 30 years. Their experienced team will join Brady Martz, and the office located in Corinth will operate as Brady Martz & Associates.

Founded in 1927, Brady Martz has been delivering exceptional client service for almost a century. Headquartered in Grand Forks, the Firm operates across nine offices in North Dakota, Minnesota, and South Dakota, offering advisory, audit & assurance, and tax services to a diverse range of industries.

Streamlining Dealership Operations: Leveraging Software to Stay Ahead in the New Year

January 7, 2025/in Dealerships, News/by Justin Burchill

As dealerships face mounting pressure to improve efficiency, adapt to customer expectations, and stay competitive, 2025 offers a fresh opportunity to leverage software solutions that streamline operations across all facets of the business. Whether you specialize in automobiles, agricultural equipment, heavy equipment, RVs, or motorcycles and power sports, the right software tools can transform your dealership’s performance, enhance customer satisfaction, and boost profitability.

Here are key ways dealerships can utilize software to stay ahead in the new year:

1. Enhanced Inventory Management

Keeping track of inventory is a critical challenge for dealerships, particularly those managing large-scale operations with diverse product lines. Advanced dealership management systems (DMS) now integrate real-time inventory tracking, providing complete visibility into available stock, reorder levels, and sales trends.

For automobile dealers, software can ensure popular models are always in stock while identifying slower-moving vehicles. Agricultural and heavy equipment dealers benefit from tools that track large machinery availability, while RV and power sports dealers can better manage seasonal inventory. Cloud-based systems also allow teams to access data from anywhere, improving coordination across locations.

2. Optimized Customer Relationship Management (CRM)

In today’s competitive market, building strong relationships with customers is essential. CRM software tailored for dealerships helps manage customer data, track interactions, and personalize communications.

For example:

Auto dealerships can use CRM tools to send targeted promotions for trade-ins or vehicle upgrades.
RV and power sports dealers can use reminders to follow up with customers before camping or riding seasons.
Agricultural and heavy equipment dealers can automate maintenance reminders to keep their customers’ machinery in top shape.

Integrating CRM with marketing tools enhances lead generation, customer retention, and sales conversion rates.

3. Streamlined Service Department Operations

Service departments are vital revenue drivers, but inefficiencies can lead to lost profits and dissatisfied customers. Modern service management software allows dealerships to schedule appointments, track repairs, and provide real-time updates to customers.

Auto dealers can streamline oil changes and recalls with automated scheduling.
Agricultural and heavy equipment dealers can track complex repairs for machinery with detailed service histories.
RV and motorcycle dealers can simplify warranty claims and ensure parts availability with inventory integrations.

These systems not only boost productivity but also enhance the customer experience, building loyalty and trust.

4. Data-Driven Decision Making

Dealerships generate massive amounts of data every day. Advanced analytics software turns this data into actionable insights, enabling smarter decision-making.

For automobile dealerships, data can reveal which models are selling fastest and which promotions drive the most traffic.
Agricultural and heavy equipment dealers can monitor seasonal demand to prepare for peak sales periods.
RV and power sports dealers can use analytics to optimize pricing and identify emerging customer preferences.

Real-time dashboards ensure dealership managers have access to the latest performance metrics, making it easier to adjust strategies as needed.

5. Digital Sales and Financing Solutions

More customers are shopping online, even for large purchases like vehicles and equipment. Dealerships that invest in digital sales platforms stand to gain a significant competitive edge.

Online sales tools now integrate with dealership websites, enabling customers to browse inventory, apply for financing, and even complete purchases from their homes. For example:

Auto dealers can offer virtual test drives and online credit applications.
RV dealers can use 3D visualizations to showcase features of luxury models.
Heavy equipment dealers can enable remote quotes and sales for fleet buyers.

By simplifying the buying process, dealerships can attract more customers and close deals faster.

6. Compliance and Security Tools

With evolving regulations and increasing cyber threats, dealerships must prioritize compliance and data security. Specialized software ensures adherence to regulatory requirements and protects sensitive customer and financial data.

Heavy equipment and agricultural dealerships can manage environmental regulations and emissions standards.
Auto dealerships can comply with FTC Safeguards Rule updates, ensuring data protection in financing operations.
RV and power sports dealers can implement secure payment gateways to prevent fraud.

Investing in compliance software helps avoid costly fines and builds customer confidence in the dealership’s operations.

7. Integrated Accounting and Tax Management

Software that integrates accounting and tax management streamlines back-office operations, helping dealerships maintain financial health.

Automating payroll, accounts payable, and accounts receivable reduces manual errors.
Tax management tools ensure dealerships take full advantage of available credits and deductions.
Reporting features simplify compliance with state and federal tax regulations.

By reducing administrative burdens, dealerships can focus on core operations and strategic growth.

In 2025, dealerships across industries face a rapidly evolving landscape where efficiency and customer satisfaction are paramount. Leveraging software solutions tailored to your dealership’s unique needs can streamline operations, improve decision-making, and enhance profitability.

At Brady Martz, we specialize in helping dealerships navigate industry challenges with strategic financial and operational insights. Contact our team today to learn how we can support your success in the year ahead.

Kickstarting 2025: Tax Strategies for Dealerships to Maximize Early-Year Savings

January 7, 2025/in Dealerships, News/by Justin Burchill

As the calendar turns to 2025, dealerships across industries—whether you specialize in automobiles, agricultural equipment, heavy equipment, RVs, or motorcycles and power sports—have a unique opportunity to optimize their financial strategies for the year ahead. With ever-changing tax regulations and the challenges of a competitive marketplace, proactive tax planning is essential. By leveraging available deductions, credits, and other tax-saving opportunities, dealerships can minimize liabilities, improve cash flow, and reinvest in growth.

Here are key tax strategies tailored to dealerships of all types to help kickstart financial success in 2025:

1. Maximize Section 179 Deductions and Bonus Depreciation

Dealerships, regardless of their specialty, can benefit significantly from Section 179 and bonus depreciation. These provisions allow businesses to deduct the full cost of qualifying equipment, technology, and other capital investments in the year they are purchased and placed into service.

For auto dealerships, this could include IT infrastructure upgrades or new service equipment. Agricultural and heavy equipment dealers may invest in advanced diagnostic tools or large-scale machinery for service operations, while RV and power sports dealers might focus on improving showrooms or maintenance facilities. Early planning ensures these purchases meet tax qualification standards.

2. Take Advantage of Industry-Specific Tax Credits

As industries evolve, so do the tax incentives tailored to them. For example:

Automobile and RV Dealers: Federal tax credits for electric and hybrid vehicles, as well as EV charging infrastructure, are valuable opportunities.
Agricultural and Heavy Equipment Dealers: Tax incentives often exist for energy-efficient upgrades to equipment or facilities, such as solar panel installations or eco-friendly lighting.
Motorcycle and Power Sports Dealers: Consider exploring credits related to energy-efficient transportation or community safety initiatives.

These incentives not only reduce tax burdens but also demonstrate a commitment to innovation and sustainability.

3. Review Inventory Accounting Methods

Managing inventory effectively is critical across all dealership types. The choice between Last-In, First-Out (LIFO) and First-In, First-Out (FIFO) accounting methods can significantly impact taxable income, particularly in industries with fluctuating inventory costs or supply chain challenges.

Automobile, agricultural, and heavy equipment dealers, in particular, should revisit their inventory valuation strategies to align with current market conditions. Proper planning in this area can uncover opportunities for tax savings and improved cash flow.

4. Leverage Hiring Incentives and Payroll Tax Credits

Staffing remains a critical challenge for dealerships, but hiring incentives and payroll tax credits can provide financial relief. Programs such as the Work Opportunity Tax Credit (WOTC) offer credits for hiring veterans, long-term unemployed individuals, or other qualifying workers.

These credits apply to all dealership sectors and can help build a stronger, more capable workforce while reducing tax liabilities.

5. Plan for State and Local Tax (SALT) Changes

State and local tax (SALT) regulations impact all dealerships, with varying requirements for property taxes, sales taxes, and other obligations. Agricultural and heavy equipment dealers often face unique challenges in states with special rules for machinery sales, while RV and motorcycle dealers may contend with differing local sales tax rates.

Staying informed about these changes can help dealerships avoid surprises and minimize liabilities.

6. Optimize Deductions for Interest and Lease Costs

Many dealerships rely on loans and leases to finance inventory or maintain facilities, making interest and lease costs a significant expense. Recent tax law updates have placed caps on interest deductions, so dealerships need to work closely with their tax advisors to ensure compliance and identify opportunities to maximize these deductions.

Whether you’re financing an auto showroom, a heavy equipment lot, or an RV service facility, proactive planning can yield substantial savings.

By implementing these tax strategies, dealerships of all kinds can capitalize on early-year opportunities to reduce liabilities and reinvest in their businesses. The key is to stay informed about regulatory changes, partner with experienced advisors, and take a proactive approach to tax planning.

At Brady Martz, we understand the unique needs of dealerships across industries and can help you navigate the complexities of tax regulations while maximizing your financial potential. Contact us today to learn how we can help your dealership thrive in 2025 and beyond.

The Road Ahead: Key Trends Transforming Auto Dealerships in 2025

January 3, 2025/in Dealerships, News/by Justin Burchill

The automotive industry continues to evolve at a rapid pace, and dealerships are no exception. As consumer preferences shift and new technologies reshape the market, dealerships must adapt to stay competitive. From digital innovations to sustainability initiatives, 2025 promises to be a transformative year for the industry. Let’s explore the key trends shaping the road ahead for auto dealerships.

1. The Rise of Electric Vehicles (EVs)

Electric vehicles are no longer a niche market—they’re becoming a central focus for automakers and dealerships alike. With government incentives, improved battery technology, and growing consumer interest, EV sales are expected to surge in 2025.

What this means for dealerships:

Expanded EV Inventory: Dealerships will need to stock a broader range of EV models to meet demand.
Charging Infrastructure: On-site EV charging stations will become essential to attract and retain customers.
Educating Buyers: Sales teams must be well-versed in EV technology, tax incentives, and maintenance requirements to address customer questions and concerns.

2. Digital Retailing Takes Center Stage

The shift toward online shopping isn’t limited to retail—it’s redefining how customers buy cars. Digital retailing tools allow consumers to browse inventory, apply for financing, and even complete purchases entirely online.

How dealerships can adapt:

Enhance Online Presence: A seamless, user-friendly website is crucial for showcasing inventory and streamlining the buying process.
Offer Virtual Showrooms: Use augmented reality (AR) or 360-degree videos to let customers explore vehicles from the comfort of their homes.
Leverage E-Signature Tools: Simplify paperwork by enabling customers to sign documents electronically.

3. Subscription and Car-Sharing Models Gain Traction

As ownership models evolve, more consumers are exploring alternatives like subscription services and car-sharing programs. These options offer flexibility and convenience, especially for urban customers.

What dealerships should consider:

Partner with Subscription Services: Collaborate with manufacturers or third-party providers to offer subscription packages.
Expand Fleet Management: Manage vehicles for short-term rentals or car-sharing programs.
Educate Customers: Highlight the benefits of these models, such as lower upfront costs and access to multiple vehicle types.

4. Sustainability as a Selling Point

Environmental concerns are influencing car buyers’ decisions more than ever. Dealerships that prioritize sustainability will stand out in a competitive market.

Sustainability strategies for dealerships:

Energy-Efficient Facilities: Incorporate solar panels, LED lighting, and energy-saving HVAC systems in showrooms.
Recycling Programs: Offer incentives for customers to recycle old car batteries, tires, and parts.
Green Branding: Highlight eco-friendly initiatives in marketing campaigns to appeal to environmentally conscious buyers.

5. Data-Driven Decision Making

In an increasingly competitive landscape, data is becoming a critical asset for dealerships. Insights from customer preferences, market trends, and operational performance can guide smarter business decisions.

Key applications of data:

Personalized Marketing: Use CRM tools to target customers with tailored offers based on their buying history.
Optimized Inventory Management: Analyze sales trends to stock the right vehicles at the right time.
Enhanced Customer Experience: Use feedback and data analytics to refine the sales and service process.

6. After-Sales Services as a Revenue Driver

As vehicle sales face tighter margins, after-sales services like maintenance, repairs, and extended warranties are becoming a significant revenue stream for dealerships.

How to maximize after-sales opportunities:

Promote Service Packages: Offer prepaid maintenance plans or bundled service contracts to encourage customer loyalty.
Invest in Technology: Use diagnostic tools and predictive analytics to identify service needs before they arise.
Enhance Customer Communication: Use email or SMS reminders to notify customers about upcoming maintenance or service offers.

7. The Role of Artificial Intelligence (AI) in Dealerships

AI is transforming how dealerships operate, from customer interactions to inventory management. By automating routine tasks and providing valuable insights, AI can improve efficiency and profitability.

AI applications in dealerships:

Chatbots for Customer Support: Answer common questions and schedule test drives or service appointments.
Predictive Sales Tools: Identify potential buyers and recommend vehicles based on preferences and past behavior.
Dynamic Pricing Models: Adjust pricing in real time based on market demand and competitor activity.

Embracing Change for a Competitive Edge

The auto dealership industry is entering a pivotal moment, driven by innovation, sustainability, and changing consumer expectations. By staying ahead of these trends and embracing new strategies, dealerships can position themselves as leaders in a rapidly evolving market.

At Brady Martz, we understand the unique challenges facing dealerships today. Our team of experienced advisors can help you navigate these trends, optimize your financial strategies, and plan for long-term growth. Contact us today to learn how we can help drive your success in 2025 and beyond.