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Dealer Insights - September-October 2015 - Dealer Digest

Aug 16, 2015

Is your dealership benefiting from charitable work?

Many dealerships perform charitable work in their communities. Doing so can result in many benefits for both the business and nearby residents.

Obviously, communities gain from the volunteer time and effort that dealerships donate to charitable causes. Dealerships, meanwhile, may enjoy positive exposure and increased goodwill in their local markets. In fact, some dealers integrate charitable work into their corporate philosophies and strategic marketing plans.

One way your dealership might be able to help your community is to arrange for a bloodmobile to spend a day parked in front of your dealership. This will enable customers to stop in and donate blood before or after they visit your showroom and employees to do so during the workday.

Another idea is to organize a car wash at your dealership with detailing available. Ask employees about their preferences regarding which organization should receive part or all of the proceeds.

You can conduct a fundraising campaign for any local charity that you and your employees would like to support. Contributions made by your staff, customers and dealership could be tax-deductible, if the campaign is held for a “501(c)(3)” organization — that is, one that’s an approved charitable organization in the eyes of the IRS.

More Americans are leasing vehicles

The number of Americans leasing instead of buying vehicles reached an all-time high of 31% during the first quarter of this year, according to data provider Experian Automotive. This is up from 24% five years ago.

One of the main factors behind this shift is the high cost of new vehicles: Monthly auto lease payments are lower on average than monthly auto loan payments. Experian reports that the average new vehicle monthly lease payment is $405, down by $7 a month over the past year. In comparison, the average new vehicle monthly loan payment is $488, up by $14 a month over the past year.

2016 HSA and HDHP figures released

The IRS has announced the new inflation-adjusted annual limits on contributions to Health Savings Accounts (HSAs) for 2016. In addition, it also has announced new inflation-adjusted minimum deductibles and out-of-pocket maximums for high-deductible health plans (HDHPs). The new numbers are as follows:

  • HSA contribution limits (combined employer and employee) will be $3,350 for individuals (or $4,350 for those age 55 or over) and $6,750 for families (or $7,750 for those age 55 or over).
  • HDHP minimum deductibles will be $1,300 for individuals and $2,600 for families.
  • HDHP out-of-pocket maximums will be $6,550 for individuals and $13,100 for families.

Dealer Insights - September/October 2015

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