Dear Ford MDA members and supporters,
By now you have probably heard that Mr. Ken Czubay is stepping down from his position effective November 1, 2013. Mr. Czubay has been a great champion for our organization. Mr. Czubay has provided leadership from Ford Motor Company in regards to the company’s commitment to the ethnic minority dealer and diversity in general. As the Chairman of Ford MDA, I have had the honor and pleasure of working closely with Mr. Czubay on behalf of the minority dealers. Some of our meetings are behind the scenes and I saw up close how dedicated Mr. Czubay is to our mission. I for one will miss the presence of Mr. Czubay at our meetings and conferences.
We congratulate and welcome Mr. John Felice in his newly appointed position. Mr. Felice has been involved with our association for many years. I believe that our association will find a friend and partner in Mr. Felice as well as we did with Mr. Czubay. This will be our last newsletter distributed in 2013. I want to take this time to say thanks to all of the dealers that continue to support our organization.
Eddie B. Corley, Jr.
Chairman, Ford MDA
Ford MDA Board of Directors for 2013
Eddie B. Corley, Jr.,
Albuquerque Lincoln Volvo
Vision Ford Lincoln
All Star Ford
Mark Douglas, Avis Ford
Gus Palmar, Superior Ford Lincoln
Jose Pozos, Wichita Falls Ford Lincoln
Nathaniel Sutton, Sutton Ford Superstore
Randy Henderson, Henderson Family Ford
Dr. AV Fleming
Osvaldo Garcia, Jr.
Ford Motor Credit
Ford Credit’s Minority Dealer Relations department for many years has been supporting our association(s) by providing support funds. These funds are designed to help the dealership sell vehicles or improve performance through marketing, incentive and training programs.
Specifically, they can be used to move out old inventory by providing a dollar amount per vehicle when the vehicle is financed by Ford Credit. The deadline for applying for these funds is just a few weeks away. If you would like to take advantage of this program contact your local Ford Credit representative.
NAMAD Annual Membership Dues
Dear Ford MDA members,
The Ford MDA Board of Directors have approved payment of your 2014 NAMAD Membership Dues. If you own multiple dealerships, payment will only be made for one (1) dealership. Please disregard any invoice you receive from NAMAD unless you are paying for additional stores.
ADP – Kathy Gilbert
Kathy Gilbert Assumes Responsibility for ADP’s Minority Dealer Business
ADP Dealer Services is pleased to announce that Kathy Gilbert, Director of Sales and Business Development, will assume the management responsibility for ADP’s Minority Dealer Business, effective July 1, 2013.
In this role, she will replace Tony Valdivia, who retired from ADP on June 30th. Kathy will have national responsibility for the minority and women dealer segments. Throughout her 20 years with ADP Dealer Services, Kathy has been working with minority dealers, the dealer associations and manufacturers. She has been pivotal in ADP’s continued support and commitment for the minority dealer community and their success.
Under the leadership of Tony Graham, Vice Presidemt and Regional General Manager, Dealer Services, Hoffman Estats, our team is dedicated to understaning the unique challenges minority dealers face, and we spend 100% of our time working with dealers, helping them to leverage ADP Dealer Services and professional associations to assist you in every area of your operations.
Please join us in congratulating Kathy on this well-deserved promotion and career opportunity.
For more information on any ADP solution or ways we can help you sell more cars, parts and service profitably, call Kathy at (847) 485-4390.
American Financial Services
CrossCheck – Charles Dortch III
5 Tips to Help New and Used Auto Dealers Increase Car Sales
Ever wonder why that dealership down the road is killing it on its quota and you’re just eking along? It’s easy to cast blame – lackadaisical sales staff, inventory you missed out on at auction, a couple straight weekends of bad weather. While all of these may certainly contribute to low sales, they’re not the be-all or end-all. There are several reasons why auto dealers make sales, and none have to do with having the lowest [email protected]. Visit our web site at www.cross-check.com.
For more information on putting a check processing service to work for your dealer or shop, contact Ford MDA Program Representative, Charles Dortch III, Vice President of Sales, CrossCheck, Inc. (707) 665-2100, ext. 2500 or cell: (707) 483-9439
DealerTrack – Ernest Lattimer
If you are interested in any of the above, you can also reach me at (410) 977-2515 or email me at [email protected].
UHY UPDATE – Dan Patterson
Shareholder Loans 101: Having Proper, Sufficient Documentation
Shareholder loans and the required accompanying documentation are facing increasing scrutiny by the IRS. Any potential deduction that may arise from a worthless shareholder loan must be substantiated by documentation confirming a valid loan exists. When entering into loan agreements with related parties it is important that all notes are expressed in the form of a written formal note, indicate a reasonable interest rate, and authorized in the corporate minute book. Besides having the written documentation, the taxpayer is also responsible to be sure that the terms of the note are being adhered to.
A recent court case, Shaw, T.C. Memo 2013-170, disallowed a bad debt deduction due to the taxpayer not being able to prove that loans were actually bona fide loans or that they became worthless in the year deducted. Although a note was executed and contained a reasonable interest rate, no interest or principle was ever paid. The service will often consider payments made to a related entity as capital contributions. In this case, the court found that Shaw’s behavior was unlike that of a bona fide lender as she made no formal attempt to collect on the loan.
The Shaw case is an example of not establishing a debtor-creditor relationship. Common factors which will be considered when the validity of loans are in question include, but are not limited to, documentation of the existence of the transaction, affixed schedule of repayment, whether interest is required on the loan, whether collateral is obtained or requested, whether demand for repayment is made, and the financial condition of the debtor. As was the case in the Shaw decision, the financial condition of the company and lack of collateral did not satisfy the third party lender requirement and therefore they failed to establish a valid debtor-creditor relationship between related parties. The debt was reclassified as a capital contribution.
It is common for shareholders to loan entities money during cash flow shortfalls and times of increasing growth. Therefore, it is very important that shareholders are protecting themselves by following the standards set forth by the IRS. When entering into related party loans, try to place the same scrutiny upon your loan as an unrelated lender would. Ask yourself if a third party would see you as a bona fide lender conducting an arm’s length transaction and most importantly seek the guidance of your professional advisors.
For more information please contact your UHY LLP Advisor, in Farmington Hills (248) 355-1040 or Sterling Heights (586) 254-1040, or visit us on the Web at www.uhy-us.com.
Access to Capital – Edward Jones Investments
This is the first in a series of articles that will provide insight and financial information that should be of help to you and your families. In developing the theme for our discussion, AV asked me to choose a topic that is near and dear to many of you, selling the franchise or succession planning. However, we are going to look at it in different ways.
First, we are going to look at the importance of providing financial education and opportunities for your employees. Employer-sponsored retirement plans are an excellent benefit but they are not complete without the education to go along with it. Employees need to understand more than just how to enroll. Through educational seminars and events offered at the business, this program can help the employees understand their choices and build a better financial future. Providing this service for small business owners and their employees can improve participation in the employer-sponsored plan, boost satisfaction and loyalty, enhance their benefits package and make their organization more attractive to job seekers.
It is also wise to consider providing financial opportunities and education because you build a team that could become buyers of your business. This practice gives you more options if you choose to retire or move on. One way you can accomplish this is through an Employee Stock Ownership Plan. ESOP’s allow you to sell your business to your employees with several advantages, which I list below.
- Creates liquidity at fair-market value
- Control maintained (if desired)
- “Tax-free” rollover treatment available to sellers in closely-held companies
- Establishes valuation and provides liquidity for estate tax purposes
- Selling stockholder-employee participates in ESOP if “rollover” not elected
- Selling shareholders excluded from ESOP participation can be “made whole”
- Additional equity incentives still available
“Tax Free” should be of interest to everyone. There are other ways to relieve your tax liability which we will cover in future articles. If you would like to learn more about our Employee Education program or the Employee Stock Ownership Plan please give me a call.
Rueben R. Hill
Rueben Hill | Financial Advisor
3417 Gator Bay Creek Blvd.
St. Cloud, FL, 34772
Business Phone: 912-293-0096
Email: [email protected]
A Word from the Executive Director
Dear Ford MDA members and supporters,
We are excited about the development of our new website. We will have the site in full operation by the beginning of 2014. Our goal is to supply you with pertinent information and links that will help you grow your business. As always we will continue to archive information that is important and informative to our dealer body. Our website will be the premier site for Ford minority dealers for sharing information with each other.
Please check your emails from the Ford MDA staff for upcoming webinar training. Your association is working hard with Ford Motor Company and our Vendor member partners on subject matters that will help provide technical skills and profit to your dealership. Please take advantage of these benefits that are provided to you by your association. Also I want to thank all the dealers that filled out the survey for us at the conference in July. The information gives us an idea of what is important to our membership body and how we can create more value to our members. I wish you all a successful 4th quarter.
AV Fleming Executive Director