Auto Update: Health Care Impact on "The New Model"

About a year ago, I suggested our auto dealer clients needed to be “nimble” as the retail market was re-designing itself. It continues to do so today with Ford announcing the sale of Volvo to the Chinese. I suspect that it will continue to take a different shape, but I am happy to report that Schneider Downs dealer’s clients and those across the country are doing the right things. NADA reports that net return on sales increased in 2009 over 2008 by 31%.  The dealer of today is focused on cost controls and net returns. 
 
A dealer’s ability to control costs was most likely not helped by the recent series of health care legislation. The impact of its requirements to provide increasingly expensive benefits or face penalty taxes, as well as the increase in Medicare tax, will make the control of expenses more difficult. Major companies are already projecting the cost of the health care bill will mean billions to them.   Most dealerships will not escape its reach, as a large employer is defined as “companies with more than 50 employees” for purposes of its mandated coverage. When revising expense projections for 2010 and beyond, do not forget the increased cost for health care.   In the meantime, continue to do what you are doing, keep an eye on your bottom line, and perhaps the other on our shareholders in Washington.
 
For further details on how the health care reform affects you, please visit our Health Care Reform Resources web page.
 
Schneider Downs provides accounting, tax and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA, and Columbus, OH.
 
This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.
 
 
 

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

Tax Credits for Plug-In Electric Drive Vehicles
New Standard Mileage Rates for 2019
Auto Dealers in Ohio Border States Beware You May be Subject to Ohio Commercial Activity Tax
Steel and Aluminum Tariffs: Winner and Losers
Application to Receive Funding for On-Road and Class 8 Fleet Vehicle Projects in Pennsylvania Now Available!
New Revenue Recognition Standard Will Impact Auto Dealers

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

contactsd@schneiderdowns.com
p:412.261.3644     f:412.261.4876

Map of Columbus Office
Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

contactsd@schneiderdowns.com
p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102