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When was the last time you checked your open account with your manufacturer? When was the last time you checked other accounts, such as a co-op advertising account? The franchisor open accounts should be reconciled monthly. It should be a regular part of the controller’s month end duties. Why? Very simply, there is a great deal of money credited to and debited from those accounts. Are you...

You generally want to know the qualifications of the professionals with whom you deal. You generally like to know that your doctor went to medical school and that your lawyer went to law school. Why then, when you go into your bank and you are solicited to purchase financial products, do you assume that you are dealing with a qualified professional? Banks are important components of our...

Dealers generally assume that a customer who leases a vehicle will have the right to buy it at the end for the residual value. That is not always the case. Pricing for a lease is generally based on three pieces: the residual which is the unamortized portion of the lease at which the lessor will own the vehicle if the buyer simply allows it to terminate, the upfront payment which is the amount...

In a recent story, Automotive News reported on an informal online survey of F&I managers in which 29% responded that salespeople or sales managers fill in credit applications for customers at their stores. They’re just trying to help the customers fill them out the right way. What could go wrong? Plenty. What happens if a customer claims that the income or time on the job shown on the...

It does not matter whether you are filling out a financial services application or an insurance application for your first or tenth time. Pay attention. Applications matter. That is especially the case when the representative you are dealing with says that they aren’t really that important or that the representative will fill out the application for you. Here’s why. We all know about the...

Many dealers assume that if they simply pull a vehicle history report and it shows no damage, that they are safe in assuming that the vehicle has no serious prior damage. This is simply not the case, however. Even the operators of vehicle history report providers give disclaimers that the vehicle history reports they sell may not contain all important information concerning a vehicle’s...

Some dealers refuse to adopt a personnel handbook. They ask, “Why tell employees their rights?” Any dealer asking that question does not understand the purpose of a handbook. A handbook should advise employees what is expected from them. It should establish the standards of conduct that the dealer expects. It is an excellent vehicle to describe the dealership’s philosophy and the expectations...

The IRS has revised Form 8300 for reporting receipt of cash in excess of $10,000. The revisions do not appear to affect the two pages of the form that are filled in by a dealer. The changes appear to be limited to minor editorial revisions and revisions to the instructions concerning taxpayer identification numbers. The form does, however, mandate that it is the version to be used for...

The current financial atmosphere has resulted in very low interest rates on savings and investments. Elderly customers are finding this to be a real problem. What do you do when a bond is called early or when a CD comes due? Some banks and financial institutions are offering what they call a structured CD. It promises higher interest rates than current CD products, and it comes with FDIC...

Taxes! Everybody hates them. And as a professional who spent years in school earning your credentials, you have more reasons to hate them than most. You didn’t luck into a six figure salary. Your life was consumed getting there – interminable schooling fueled by endless loans, followed by years of jobs to learn your craft at meager wages. You worked hard to earn a salary to compensate for your...