End of the Year Opportunities

The end of the calendar year can be a goldmine for commercial and fleet sales if sales consultants understand all the opportunities that exist to both accelerate and increase sales before the end of the year. Let’s look at some of the key actions you can take to create a windfall!

Section 179 Tax Code- Many businesses are looking for ways to reduce their taxes for the current calendar year. One way to do this is through this business-friendly tax opportunity. The Section 179 Tax Code is a strategy that businesses can use to accelerate depreciation into the current calendar year for equipment, including work vehicles.  Here is an example:

A business purchases $200,000 worth of vehicles in the 2016 calendar year and the business is in the 35% tax bracket. $200,000 X 35% = $70,000 in tax savings. You are effectively purchasing the vehicles for $130,000!  The program goes up to $500,000 in purchases with certain exceptions. Contact your tax professional to discuss the tax code and how it fits into your tax plan. The vehicle needs to be used primarily for business and certain vehicles such as upfitted trucks and vans easily qualify for the program. One important note; companies must take delivery of the vehicles in 2016.

Are your customer’s fleet vehicles close to qualifying for true fleet status?  With most manufacturers if a company has at least 15 vehicles they can qualify for discounts from the manufacturer. If you approve the company for a Fleet Account Number (FAN) or a Fleet Identification Number (FIN) there could be significant discounts. Carefully evaluate if you want to go the fleet route based on how the units will be counted (fleet versus retail).

Have you done a great job in letting customers and prospects know all the advantages of your manufacturers commercial programs such as Business Link, Business Elite or Fords Business Preferred Network. These programs can save businesses thousands of dollars when purchasing vehicles.

Have you introduced TRAC Leasing (open ended lease) or a line of credit for customers and prospects? Most business owners have never been exposed to the “open ended lease” concept where mileage can be adjusted to fit the needs of prospects and customers as well as avoid exceeding the mileage penalty when turning in leased vehicles.

A line of credit can reduce the headache in acquiring new vehicles and allow companies to create a plan for vehicle turnover. Think of a line of credit as “golden handcuffs” which can tie the customer to the dealership for a long period of time.

These are just a few ways to set yourself apart and at the same time create more value for your prospects and customers. Remember the more solutions you bring to your customer or prospect the more likely you are to create a “customer for life.”

About Ken Taylor:

Ken Taylor’s training, consulting, and coaching have been used on individual, regional, and national business levels to achieve ultimate success! Known as an industry leader and as “America’s Corporate & Personal Coach,” Ken has consulted for companies like General Electric, General Motors, Fiat Chrysler, Wells Fargo, Ford, Commercial Truck Trader, and Equipment Trader.

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