Auto Dealer Business School Blog

Building my Dealership with a Little Money

car lot dealership startup Feb 15, 2022

Hey CEOs!

Building a dealership or car lot on a budget requires a strategy that includes planning for a balanced lifestyle as well as a healthy profitable business.

In opening this new location, I have had some challenges. I now know that challenges are there to highlight what is being ignored. In this case, I was ignoring my fears of opening a new location.

Because the last time I had a car lot, life was not ideal. I worked too much. I did not take care of myself and things fell apart.

So this time, I need to support the areas in my life that are likely to be neglected with the extra attention on the new location.

On the business side, I was also ignoring some facts about profitability. Before I open this new location, I need to know my break-even point, my fixed costs, and my profit per car.

I need to identify the team I need in place to sell the minimum number of cars to break even and the other systems needed like customer...

Buy Here Pay Here Dealers (BHPH) and Form 1099-C

1099-c accounting auto dealer bhph bookkeeper bookkeeping butler & sanchez butler and sanchez buy here pay here car lot filing irs related finance company rfc taxes Jan 29, 2020

Do you have a Related Finance Company (RFC)? Have you been considering starting one?

Have you filed your 1099-C yet? Do you know what that is?

The Auto Dealer Business School is committed to educating dealers on the best and most profitable business practices including helping you understand the form 1099-C.

1099-Cs: What You Need to Know
In recent years, Buy-Here-Pay-Here dealers have come under IRS scrutiny for noncompliance with Form 1099-C reporting requirements. With penalties of at least $250 per form and a fast-approaching deadline, here are a few key things you should know about 1099-Cs.

What is a 1099-C?
Form 1099-C "Cancellation of Debt" is a form the IRS requires "applicable financial entities" to issue when a debt of $600 or greater has been canceled or forgiven. In dealer speak, this translates to a charged off account with a net loss (after repo ACV recovery is applied) of $600 or more. Depending on the nature of charge off, you may or may not be...

Building my Dealership with a Little Money

Buy Here Pay Here Dealers (BHPH) and Form 1099-C

Two Step