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What Do You Think About Dealertrack Acquiring Dealer.com?

Dealertrack Acquires Dealer.com – What Do Automotive Professionals Think?

The biggest news of automotive M&A came at the end of the year as Dealertrack has agreed to acquire Dealer.com. Following their acquisition of ClickMotive earlier in the year, I’m wondering what the Car Peeps community thinks of the acquisition.
Here’s the release:

Dealertrack and Dealer.com Unite to Transform Automotive Retail

Dealertrack Technologies Announces Agreement to Acquire Dealer.com

Lake Success, N.Y. and Burlington, Vt., December 19, 2013 –  Dealertrack Technologies (Nasdaq: TRAK) and Dealer.com today announced a definitive agreement for Dealertrack to acquire Dealer.com, a leading provider of marketing and operations software and services for the automotive industry. Through the combination, the companies expect to realize their shared vision to transform automotive retail by delivering the most advanced solutions for dealers, OEMs, lenders and car shoppers.
Under the terms of the agreement, Dealertrack will acquire all the equity of Dealer.com for approximately 8.7 million shares of Dealertrack’s common stock and $620 million in cash, subject to customary post-closing adjustments. Dealertrack expects to finance the cash portion of the purchase price through cash on hand and with fully committed debt financing. The deal is expected to close in the first quarter of 2014, subject to regulatory approval, and the transaction is expected to be accretive to Dealertrack’s standalone multi-year organic growth profile to Dealertrack’s diluted adjusted net income per share.
Established in 1998, Dealer.com is a pioneer in bringing automotive dealerships online. The company has grown to 830 employees across its Burlington, Vermont, headquarters and Manhattan Beach, California, office, and serves approximately 7,000 U.S. dealers with its integrated suite of products. Dealer.com expects to generate annual  revenue in excess of $230 million for  2013, representing year-on-year growth in excess of 25 percent relative to 2012.
Dealertrack places a high value on the culture of creativity and innovation that has been the hallmark of Dealer.com, and plans to establish Dealer.com’s Burlington, Vermont, headquarters as a center of excellence for digital marketing solutions, along with Dealertrack’s Dallas, Texas, office. Based on the strength of Dealer.com’s brand, Dealertrack will retain the Dealer.com name in the marketplace to represent Dealertrack’s advanced and complementary set of digital marketing products and services.
“By joining forces with Dealer.com, we will be able to provide dealers, OEMs, and other industry partners with a deep and broad array of integrated solutions,” said Mark O’Neil, chairman and chief executive officer, Dealertrack. “Dealer.com and its team, whom we’ve long admired and respected, complement our solutions, catapulting our vision of delivering the market leading suite of integrated technologies capable of transforming automotive retailing even further.”
“This is a very exciting opportunity for Dealer.com,” said Rick Gibbs, chief executive officer, Dealer.com. “By combining our strengths with Dealertrack, we will be able to enhance our marketplace offering with an integrated, end-to-end solution that will help bring the automotive retailing industry to a new level of efficiency and performance.”
Gibbs further added, “Dealer.com is proud of the unique culture we, as a company, have nurtured over the years, making this a truly outstanding place to work. We will look to carry this same culture – along with our energy and spirit of innovation – forward as we unite with Dealertrack.”
Upon closing, Gibbs will become Executive Vice President and Group President of Dealertrack’s Digital Marketing solution team.
In connection with the transaction, Evercore acted as financial advisor and O’Melveny & Myers LLP provided legal advice to Dealertrack.  Goldman Sachs & Co. acted as financial advisor and Wilson Sonsini Goodrich & Rosati, Professional Corporation, provided legal advice to Dealer.com. J.P. Morgan, B of A Merrill Lynch, Barclays and Wells Fargo are providing Dealertrack’s committed debt financing for the transaction.
Dealertrack will host a conference call to discuss this announcement on December 19, 2013 at 6:00 p.m. Eastern Time. The conference call will be webcast live on the Internet at ir.dealertrack.com, where a supplementary presentation is also available. In addition, a live audio of the call will be accessible to the public by calling 877-303-6648 (domestic) or 970-315-0443 (international); no access code is necessary. Callers should dial in approximately 10 minutes before the call begins. A replay will be available on the Dealertrack website until March 19, 2014.
About Dealertrack Technologies (www.dealertrack.com)
Dealertrack Technologies’ intuitive and high-value web-based software solutions and services enhance efficiency and profitability for all major segments of the automotive retail industry, including dealers, lenders, OEMs, third-party retailers, agents and aftermarket providers. In addition to the industry’s largest online credit application network, connecting more than 20,000 dealers with more than 1,400 lenders, Dealertrack Technologies delivers the industry’s most comprehensive solution set for automotive retailers, including Dealer Management, InventorySales and F&I,Interactive and Registration and Titling solutions.
About Dealer.com (www.dealer.com)
Dealer.com is the automotive industry’s leading provider of a streamlined and intuitive solution for managing dealership marketing and operations. The company’s platform-based Inventory, Advertising, Website and CRM products allow OEMs, dealer groups, retail and agencies to leverage innovative technology to relevantly connect to their customers. The company’s unique commitment to culture, with a focus on health and wellness, makes it one of the most desirable places to work. 
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding the benefits of the Dealertrack, Dealer.com and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of Dealertrack Technologies to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that might cause such a difference include the performance and acceptance of the Dealertrack, Dealer.com and their solutions, and other risks listed in our reports filed with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ending December 31, 2012 and our Quarterly Reports on Form 10-Q. These filings can be found on Dealertrack Technologies’ website at www.dealertrack.com and the SEC’s website atwww.sec.gov. Forward-looking statements included herein speak only as of the date hereof and Dealertrack Technologies disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.

via Automotive Digital Marketing Professional Community.

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Use “Hummer Tax Loophole” To Sell More Vehicles In December

Are You Using \”Hummer Tax Loophole\” To Sell More Vehicles In December?

Car Dealer uses “Hummer Tax Loophole” to Educate Commercial Vehicle Buyers and Close More Deals In December

I received the following commercial vehicle buyer targeted explanation of the tax advantages businesses can gain by purchasing one or more new vehicles before December 31st. I received in my overcrowded Gmail inbox, where it caught my attention and I found it to be so compelling that it merited being shared with the ADM Community… The dealer group that sent it to me is the Resnick Automotive Group of Schaumburg, Illinois. I also added several sections with further detail directly from the IRS towards the bottom of this post:

One of the more popular uses of the Section 179 Deduction has been for vehicles. In fact, several years ago the Section 179 deduction was sometimes referred to as the “Hummer Tax Loophole,” because a the time it allowed businesses to buy large SUV’s and write them off. While this particular use (or abuse) of the tax code has been modified with the limits explained below, it is still true that Section 179 can be advantageous in buying vehicles for your business.


You still have an excellent opportunity through 12/31/2013 to minimize your tax liability by purchasing a qualifying Car, Truck  Van or SUV. Plus, under the Tax Relief / Job Creation Act of 2010, qualified small business owners who purchase a qualifying vehicle GVWR (Gross Vehicle Weight) of 6000 pounds or more, may even have greater benefits if the vehicle is entirely used for business purposes.

  • Under the IRS ruling, the following  new “trucks” qualify.
  • Consult your accountant/tax advisor for complete details and eligibility.
  • Qualifying Vehicles of 6000 lbs. GVWR

Mercedes-Benz

Lexus

Toyota

Sprinter Van
ML350
GL450/550
GL350 BTC
G550

GX460
LX570

Tundra
4Runner
Sequoia

Additional Savings:
 Special Finance Rates, Factory Incentives and Dealer Year-End Discounts

Additional Section 179 Details Published by the IRS:
Update / IRS Guidelines for Vehicles in 2013

The IRS has not yet released guidance concerning Section 179 and Bonus Depreciation as it relates to vehicles for the year 2013. The guidance will be published in the Internal Revenue Bulletin sometime after April 15th. So be patient, and check back here often for the release date.

There are a number of qualifications for vehicles, all with varying tax treatment. Please refer to page 6 of these Instructions for Form 2106 to read the exact IRS language.

What are the limits on Typical Passenger Vehicles?

For passenger vehicles, trucks, and vans (not meeting the guidelines below), that are used more than 50% in a qualified business use, the total deduction for depreciation including both the Section 179 expense deduction as well as Bonus Depreciation is limited to $11,060 for cars and $11,160 for trucks and vans.

Exceptions include the following vehicles:

  • Ambulance or hearse used specifically in your business;
  • Taxis, transport vans, and other vehicles used to specifically transport people or property for hire;
  • Qualified non-personal use vehicles specifically modified for business (i.e. van without seating behind driver, permanent shelving installed, and exterior painted with company’s name).

Limits for SUVs or Crossover Vehicles with GVWR above 6,000lbs
Certain vehicles (with a gross vehicle weight rating above 6,000 lbs but no more than 14,000 lbs) qualify for expensing up to $25,000 if the vehicle is financed and placed in service prior to December 31 and meet other conditions.

What Vehicles Qualify for the full Section 179 Deduction?

Many vehicles that by their nature are not likely to be used for personal purposes qualify for full Section 179 deduction including the following vehicles:

  1. Heavy “non-SUV” vehicles with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify (although some “extended cab” pickups may have beds that are too small to qualify).
  2. Vehicles that can seat nine-plus passengers behind the driver’s seat (i.e.: Hotel / Airport shuttle vans, etc.).
  3. Vehicles with: (1) a fully-enclosed driver’s compartment / cargo area, (2) no seating at all behind the driver’s seat, and (3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.
Other Considerations
  • Vehicles can be new or used (“new to you” is the key).
  • The vehicle can be financed with certain leases and loans, or bought outright.
  • The vehicle in question must also be used for business at least 50% of the time – and these depreciation limits are reduced by the corresponding % of personal use if the vehicle is used for business less than 100% of the time.
  • Remember, you can only claim Section 179 in the tax year that the vehicle is “placed in service” – meaning when the vehicle is ready and available – even if you’re not using the vehicle. Further, a vehicle first used for personal purposes doesn’t qualify in a later year if its purpose changes to business.

via Automotive Digital Marketing Professional Community.

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Marketing Directors Choose AutoCon Over Other Fall Conferences

Marketing Directors Choose AutoCon Over Other Fall Conferences – Automotive Digital Marketing Professional Community

Why Marketing Directors Should Choose AutoCon 2012 Over Other Fall Conferences

We understand that Marketing Directors have many choices where to invest their time out of the dealership. We have made AutoCon the ideal choice for Marketing Directors for these reasons:

  • AutoCon is a new with fresh ideas and an innovative approach to the conferences structure.
  • Advanced Marketing and Advertising workshops are include in the educational offerings.
  • Breakfast, Plated Lunch, Breaks, and Evening Cocktail Receptions are included in the registration fee.
  • AutoCon provides over 60 workshops and hands on labs to maximize the learning experience.
  • Sponsored workshops are clearly labels to allow Marketing Directors to shop for new products or not.
  • Exhibit hall allows Marketing Directors to shop for new products and connect with new technology.
  • Conference format allows for peer networking and group discussions to improve your sales strategy.
  • WiFi is provided in all conference areas and hotel rooms so you can stay connected to work.
  • Marketing Directors receive vendor coupons worth over $5,000 in product discounts.
  • Attendees receive conference workbook, Dry-Fit Conference T-Shirt, and assorted logo brands gifts.

Suggested Conference Workshops


Only you can know what workshops best interest you today, but here are a few workshop examples that would be ideal for Marketing Directors:

  • Leveraging Google+ Local For Marketing and Online CSI Scores
  • Diversity Marketing: Latinos, LGBT, and Women
  • Dominate Your Local Market With Video Pre-Roll Marketing
  • Why Pinterest & LinkedIn Should Be Part of Your Social Strategy
  • I Know The Top 10 Profit Leaks At Your Dealership
  • Data Mining & Segmentation Strategies To Identify Buyers
  • The Power Of Landing Pages – 10+3 Tips To Drive Conversion
  • What Influences Customer Loyalty & How Do We Measure It?
  • Set Your Fixed Ops Video Strategy on Fire
  • Sell More Cars Using The Service Drive

Lock In Your Attendance – Limited Time Offer

We encourage Marketing Directors to confirm their participation for AutoCon today. Take advantage of the Early Bird pricing for you and your team, which adds further savings to your September conference budget.

General Manager Registration For AutoCon

via Marketing Directors Choose AutoCon Over Other Fall Conferences – Automotive Digital Marketing Professional Community.

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Is Your Ego Limiting The Success Of Your Dealership? Automotive Marketing Community

Is Your Ego Limiting The Success Of Your Dealership?

I had a distinct feeling of “Deja Vu” as I read Brian Pasch’s listing of dealer group responses to why they do not educate more people in their dealerships… Let me add one more relevant example – During the ADM Boot Camp Scholarship Video Contest i received a call from a dealer who planned on submitting an entry video, and he wanted to know how much he would need to “donate” in order to win.  I explained the rules of the contest and encouraged him to get as many of his 400 employees as possible to visit ADM, register and click “Promote” so their co-worker could win.  The dealer’s response was something along the lines of “I don’t mind my managers knowing about the ADM site, but I am afraid that if my sales people or other staff joined ADM they might learn enough to get higher paying jobs at other dealerships…”

via Automotive Digital Marketing Professional Community.

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From the Trenches – Eyes Wide Open

From the Trenches – Eyes Wide Open

Tom Gorham writes; “Do you feel more comfortable with studies and polls? Steve Jobs said, “You can’t just ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new…  You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something — your gut, destiny, life, karma, whatever.”  So when staring at 800 million Facebook users, try having a little faith.  This is a new idea with hundreds of years of history.  Waddaya think?”

Use the link provided to read Tom Gorham’s entire article and then use the comment feature to share your opinions with over 5,000 automotive professionals…

via Automotive Digital Marketing Professional Community.

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Tim Jennings Nominates Ralph Paglia for President

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