Greetings!
Welcome to the latest installment of IADA's e-news, containing timely updates, information, announcements and reminders. We welcome your suggestions and contributions. For further information and updates regarding the Idaho Automobile Dealers Association please visit our newly designed website at www.idahoada.org.
IADA Staff- |
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IDAHO AUTOMOBILE DEALERS ASSOCIATION
2008 DISTRICT MEETINGS
May 7th ~ 8th ~ 9th
It's that time of year again! The annual IADA District Meetings give us the chance to come to you and visit about association activities and current happenings within our industry. The importance of the Idaho Automobile Dealers Association's leadership team, to travel around the state on our annual District Meeting visits to dealers, is without measure.
Past district meetings have been successful and we are excited to put on an even better gathering this year. Our meetings will bring together many your district's dealers and legislative members to share ideas and information and partake in association goals, legislative topic discussion and sponsor presentations.
It's no secret that the automotive industry is one of the most competitive businesses there is. However, working together on common issues that affect each of us is crucial. That is the value that we all gain from participating in the IADA District Meetings. We encourage all dealer principals to attend. Bring your General Manager along with you.
Thank you for your participation.
IDAHO AUTOMOBILE DEALERS ASSOCIATION
OREGON AUTOMOBILE DEALERS ASSOCIATION
2008 JOINT CONVENTION
June 22- 25 ~ Sunriver Resort ~ Sunriver, Oregon
Click Here For A Fillable Registration Form
Book Online to Make Your Reservations Today!
Click Here For All Registration Dates, Times & Costs.
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AUTOMOTIVE NEWS AT A GLANCE
Listed here are several articles pertaining to the auto industry that appeared recently in newspapers and other media outlets across the nation.
- Auto dealer challenge: Selling in this economy
Sanluisobispo.com, April 27
With the economy's growth slowed and oil above $100 a barrel, auto dealers in San Luis Obispo County are finding that selling cars is more difficult than it has been in years.
- A Volt Out of the Red
The Wall Street Journal, April 23
With the administration's waning days coming up, the biggest implication of yesterday's fuel-economy proposals from the Transportation Department is that officials will have some media bouquets to Google at their leisure when they leave office. How fun it will be to read about their boldness in speeding up the already ambitious mileage targets that Congress enacted last year.
- Auto Fuel-Efficiency Goals Raised
The Wall Street Journal, April 23
U.S. auto makers must increase the average fuel efficiency of their cars and trucks to 31.6 miles per gallon from today's 25 by 2015 under new rules issued by the Bush administration.
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BUSINESS BENEFITS OF THE STIMULUS ACT:
As you have probably heard, the recently enacted Economic Stimulus Act of 2008 (Stimulus Act) provided tax rebates for millions of individuals. The Stimulus Act also provides some generous tax breaks for businesses, particularly small and medium size businesses. These business provisions are intended to encourage investment and generally provide for faster depreciation (expensing) of qualified business equipment.
Section 179 Deduction. Internal Revenue Code Section 179 provides for a large first-year write-off of newly acquired qualifying business equipment: the Section 179 deduction. However, equipment purchases are limited, and the deduction phases out on a dollar-for-dollar basis at a specific statutorily defined level. The Stimulus Act significantly enhances the Section 179 deduction for tax years beginning in 2008. For tax years beginning in 2009 and beyond, the normal Section 179 rules will apply.
Warning: Taxpayers with fiscal tax years should note that the enhanced Section 179 deduction rules don't take effect until the beginning of the fiscal year that starts in 2008. The maximum Section 179 deduction for tax years beginning in 2007 is generally $125,000, and the phase-out threshold is generally $500,000.
IMPROVING YOUR PARTS MIX: Take a good look at the mix of parts in your inventory. Pay close attention to non-seasonal parts whose most recent sales activity happened four to six months ago. They may not have reached their time limit on your shelf, but are they really parts you should stock? Look at those parts as "potential" obsolescence.
A good place to start reviewing your inventory mix is with the fill rate, or level of service, which measures how well you fill your orders or, put another way, how effective your parts department is at meeting your primary customers' demands. With most dealerships, the primary customers are their own service and body shops, although occasionally a dealer may do more wholesale than internal parts sales. It's important to maintain a high fill rate (85-95 percent), which is calculated using the demand history in the following equation:
Fill rate = total demand - (emergency purchases + lost sales)
total demand
Total demand is the total number of customer requests you receive during a given period. Emergency purchases are orders placed for parts that aren't available through regular stock orders or special orders. Lost sales are those parts that aren't in stock when the customer makes the request.
Any request for a part, whether or not you have the part in stock, creates a demand history. When a part's demand history shows a certain number of demands over a given period of time - traditionally, demands in three of the most recent 12 months - that part might be phasing in and should be watched closely. (The number of demands and the time period will vary based on such factors as the type of part and whether it's a seasonal part).
The best way to improve your parts mix is to track customer requests for parts you don't have in stock, along with the sales activity for the parts you have. Review your fill rate and other tracking information weekly to see which parts are most in demand. You can then improve your parts mix by ordering the needed parts based on their demand history.
The more quickly you recognize the need to get certain parts in stock, the more quickly you'll improve your parts mix, boost your level of service, and increase your department's profitability.
Tracking demand can also help reduce or eliminate orders for parts that are likely to become obsolete. The traditional phase-out criteria are no demands during the last six months.
This article is excerpted from Top Five Ideas for Managing Parts Department Inventory Performance (SP30). The publication can be ordered online at www.nada.org/mecatalog or by calling NADA at (800) 252-NADA, ext. 2. |
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LEGISLATIVE & REGULATORY UPDATES
RED FLAGS - PLAN FOR SUMMER TRAINING SERIES AND PUBLICATIONS
IADA is receiving calls inquiring about the FTC's new "Red Flags" requirements - what they are and when these new regulations are effective. 
These rules are intended to prevent fraud and identity theft and become mandatory effective Nov. 1, 2008. NADA is preparing a Management Guide planned for publication early this summer which will provide detailed guidance on the steps necessary to comply with the new requirements.
Generally, the new regulations will require creditors and financial institutions (including automobile dealers) to do the following:
- Implement a written Identity Theft Protection Program with procedures designed to detect and respond to "red flags" indicating the potential of identity theft.
- Periodically review and update the written program to reflect changing risks.
- Train responsible staff members to follow the program.
- Responsibly oversee service providers and third party vendors.
- Involve senior management or owner in approving the written program and its administration.
- Preparation of annual report to ownership by responsible staff listing compliance activities.
CLICK HERE for a highlight of the new rules.
NADA'S REGULATORY REVIEW NOW AVAILABLE ONLINE
NADA's Regulatory Review, which is published quarterly by the NADA Public and Legal Affairs Groups, contains the latest federal regulatory developments that affect franchised new-vehicle dealers. Regulatory Review is now available on NADA's Web site atwww.nada.org, under "Publications" (member login required). | |
LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!
Have you or anyone else at your dealership won an award recently? Has your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to info@idahoada.org. Also include your contact information for further follow-up.
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Mission statement: The Idaho Automobile Dealers Association was formed in 1932 to represent interests of new vehicle dealers in the state. Our goal then and now has been to improve, enhance, and grow the automobile industry in Idaho. By advocating and providing programs, products and services for new car dealers, we want to create a stable and healthy retail market for Idaho's businesses and consumers.
Sincerely,
Trent Wright
Idaho Automobile Dealers Association |
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Generously Underwritten by:
IADA's First Choice in P & C Insurance! |
UPCOMING EVENTS:
IADA District Meetings - Please RSVP to IADA if you will be attending
May 6th Dinner in Boise Dist #3
May 7th Lunch in Lewiston Dist #2
May 7th Dinner in CDA Dist #1
May 8th Lunch in Idaho Falls Dist #5
May 8th Dinner Twin Falls Dist #4 |
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BUSINESS LINKS:
IADA Home
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The Wall Street Journal, April 23
24.92 (+0.19%)
8.55 (-0.34%)
