Subprime Automotive Taxing Changes and How to Live With Them

By James Vien - July 29, 2022

Ben Franklin once said, “In this world nothing can be said to be certain, except death and taxes.” While we in the automotive IT industry certainly cannot do anything about the latter that Mr. Franklin stated, we can sure try to ease the burden of taxes. Specifically, how to keep track of who owes to whom rather it be a state, city, county, or even a parish. Yes, it can get rather confusing and complicated to keep up with them!

DMS software has come along way since the 80s. Where the standard used to be simply keeping track and creating payables, the world has changed and with it the accounting technology that sustains a dealer’s back office has evolved with it. Case in point, dealers used to sell to their local communities, now it’s not uncommon to sell to a customer across the state or even across the country! Each state has its own tax code and requirements. For example, did you know in Texas there are some counties that will not charge tax based on the dealer’s location but rather on the customer’s address of record?

Dealers today need DMS software that takes the guess work out of taxing. Often in small BHPH and LHPH operations, dealers wear multiple hats daily. Simply put, more time spent in the back office is less time selling to customers, managing, or even keeping a healthy work-life balance. The call for an intuitive software package that does it all has never been greater. It’s simply not enough to have a simple program like QuickBooks anymore. Today’s dynamic BHPH or LHPH dealership needs a program that knows what it is to be a subprime dealer, is scalable, and more importantly, intuitive to meet the demand of changes such as tax rates.

DMS software such as Deal Pack helps to take this taxing burden off you, the dealer. Yes, you still need to pay taxes and charge them – Ben Franklin was absolutely right on that one! However, Deal Pack has you covered with its scalability and integrations. Imagine entering a simple zip code and instantly obtaining current tax rates without ever having to consult another source. Imagine the time savings on the back end. Deal Pack’s automated tax integration does just this. Time is saved, customers are taken care of, and you have time to spare.

Connect with us today so we can show you how we can save you time, money, and give you piece of mind with our integrated accounting approach by contacting support@abcoa.com or 800-526-5832.

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