Spring has Sprung!
Wow, there is sure a lot going on in our industry, the sports world, and of course here at ADS! As we head into April we notice flowers blooming, trees budding, opening day for the MLB (pay attention to the new rules) and of course one of our favorites, The Masters!
In the recent issue of GOLF Magazine, the Editor In Chief beautifully laid out the history of the phrase ‘Rite of Spring’ and how it ties to golf and The Masters. It made me think how the phrase also correlates to our industry. Spring is seen as a rite of passage due to graduations, growth, and of course the blossoming of flora and fauna all over the world. In other words, Spring is an awakening!
Our industry also sees this time of year as an awakening; one that sees us transition from the slower winter months into the madness of the prime selling season we all love. We are also witnessing a type of awakening with transitions in our business. There are more dealerships this year than last year, which is a good sign knowing how many points were closed due to demands of electrification, etc. We also see the consolidation continue across all spectrums of the industry. Dealer groups are getting bigger (although more than 94% of dealers are owned by groups with 1-5 rooftops), product administrators are buying F&I agencies, insurance companies are buying product administrators, etc. With each of these transactions, just like flowers blooming in Spring, up pops a new dealership, new product administrator or a new F&I agency. Here’s to the 2023 version of the awakening!
Here are some items worthy of sharing:
– Number of US Dealerships Rises in 2022
– No Return to Normal for the US Used Vehicle Market
– IRS Issues Confusing Guidelines on 831(b) Election
– IRS Raises Section 831(b) Premium Limit
Bob and Ryan