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View Full Version : Buying at the end of the year


jbkriss
12-10-2013, 08:31 PM
Is there any accounting advantage for a dealer to sell a 2013 model before 1/1/14? Does it make any difference to them whether they sell it before 12/31 as opposed to after 1/1? Thx.

JohnE
12-10-2013, 08:43 PM
Is there any advantage for a dealer to sell a 2013 model before 1/1/14? Does it make any difference to them whether they sell it before 12/31 as opposed to after 1/1? Thx.

Not really. Their incentive is basically how long they have had it on the floor and been paying on the floorplan. (Assuming it is financed)

hondaprlud
12-10-2013, 09:27 PM
Jack- how do boat dealer floor plans work? I'm familiar with cars but the turn and curtailments have to be a lot different

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gweaver
12-10-2013, 09:42 PM
Is there any tax liability or benefit to sell it before the end of the tax year?
G

jbkriss
12-10-2013, 09:52 PM
If a dealer has been paying on a floorplan for X number of months, would he eventually come to a point where he's paid more in interest than what he would willing to mark the boat down to? That could be months, years I guess. But is that generally how it works?

dt37803
12-10-2013, 10:38 PM
*****

blackhawk
12-10-2013, 10:55 PM
In the county adjacent to mine, they have an inventory tax on businesses. All businesses in the county pay a tax based on the dollar value of their inventory on January 1st. There is a huge car dealer that has always fought the county over this. Every year they move as many cars as they can to my county (which doesn't have that type of tax), then on January 2nd they move them all back. Sounds crazy, but that is one case where a dealer would be motivated to sell before January 1st.

kskonn
12-11-2013, 12:10 AM
I got a way better deal on a 13 than a 14. Probably depends on how the dealer works his inventory. I was working with a dealer who does not finance his boats so there was a tax savings as well as a back end money advantage to selling the 13 before year end.

JohnE
12-11-2013, 08:46 AM
In the county adjacent to mine, they have an inventory tax on businesses. All businesses in the county pay a tax based on the dollar value of their inventory on January 1st. There is a huge car dealer that has always fought the county over this. Every year they move as many cars as they can to my county (which doesn't have that type of tax), then on January 2nd they move them all back. Sounds crazy, but that is one case where a dealer would be motivated to sell before January 1st.

Or move the boat to another county.;)

mikeg205
12-11-2013, 09:22 AM
Not really. Their incentive is basically how long they have had it on the floor and been paying on the floorplan. (Assuming it is financed)

This is the best info on this thread..

friend just picked up a new 2013 BU Wakesetter VLX loaded and 2 years of lake delivery/pickup , winterizations and storage for $80K - dealer had boat on lot for most of 2013. Was eager to move it. Having that capital tied up for so long is not good for any business.

Ask your dealer to toss in items that don't cost him much but have real value for you. the dealer who sold the above - has a barn for winter storage which is never full - so the 2 years of winter storage cost him nothing. Lake pickup and delivery - small cost - big value for my friend.