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Turn to The Stanek-Haack Group at Morgan Stanley to preserve the legacy of your life's work
Are you planning to sell your powersports dealership or thinking about your long-term financial independence?As the NPDA's Strategic Partner, The Stanek-Haack Group at Morgan Stanley focuses on helping dealers navigate the complexities of financial planning before, during, and after their dealership exits. Our practice aims to help ensure that your transaction is smooth, financially rewarding, and fully aligned with your personal and professional objectives.
Brad Stanek from NPDA Strategic Partner The Stanek Group at Morgan Stanleywill be able to meet with you at AIMExpo, booth #4048.Here’s how we help:
Maximize Your Proceeds: We work with you to optimize the financial planning of your dealership.
Minimize Taxes: Our strategic financial planning aims to reduce your tax burden, not just in the year of the sale but well into the future.
Satisfaction Beyond the Sale: We align the business and personal aspects of your transaction, so you’re confident and content with the sale.
If you’re ready to preserve the legacy of your life’s work while securing your financial future, let’s connect.
Brad Stanek, Financial Advisor 227 W Monroe St. Ste 3400 Morgan Stanley Wealth Management Chicago, IL 60606(312) 648-3600. Morgan Stanley offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please consult with your Financial Advisor to understand these differences or review our Understanding Your Brokerage and Investment Advisory Relationships brochure available at https://www.morganstanley.com/wealth-relationshipwithms/pdfs/understandingyourrelationship.pdf
Morgan Stanley, its affiliates and Morgan Stanley Financial Advisors do not provide tax or legal advice. Individuals should seek advice based on their particular circumstances from an independent tax or legal advisor.The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.Morgan Stanley Smith Barney LLC. Member SIPC. CRC 4035922 11/24
Gearing Up for the New Year: Strategic Year-End Planning guidelines for Powersports Dealerships
By Andy Speirs, Jaci Bennett and Shane Ash
CBIZ became an NPDA Gold Partner in 2024 and sponsored a cocktail hour at Dealer Connect in Columbus.
As year-end approaches, Gold Partner CBIZ encourages powersports dealerships to take the time to review their insurance coverage, tax strategies, and payroll procedures to optimize operations for the upcoming year.Below are planning strategies to ensure you are on track to finish the year strong and set your dealership up for success in the new year.
Insurance Year-End Planning
1. Review Your Coverage to Stay ProtectedAs operations evolve and inventory values rise, reviewing your coverage is crucial. Update inventory coverage to reflect current values, and explore specialized coverages like cyber liability, event liability, or customization.Ensure your business interruption coverage aligns with your potential downtime needs.
CBIZ Tip: Schedule a comprehensive policy review with your broker to capture any business changes, ensure coverage aligns with your operations, and update your insurance program accordingly.
2. Check In on Your Insurance Partners
Rising premiums and market shifts may impact your insurance providers’ risk appetite. Compare renewal quotes for cost and coverage, evaluate financial strength for reliability, and ask about potential underwriting changes that could affect your renewal.
CBIZ Tip: Work with your broker to identify carriers specializing in powersports dealerships for tailored coverage and more favorable terms. Explore workers compensation pay-as-you-go capability with your payroll provider to improve cash flow
3. Cut Costs with Better Risk Management
Proactive risk management reduces premiums and claims costs. Conduct a risk assessment to identify vulnerabilities like outdated demo ride protocols and waivers, implement employee training and consider theft prevention systems. Track incidents and near-misses to address risks early.
CBIZ Tip: Document risk management improvements and share them with insurers to negotiate better terms or secure a risk management credit.
4. Plan Ahead for Market Shifts
Anticipate premium increases with strategies like captive insurance, higher deductibles or bundle coverages with the same carrier when available. Monitor reinsurance trends and consider loss-sensitive programs where premiums depend on claims performance.
CBIZ Tip: Seek inventory coverage with monthly reporting for flexibility in managing your dealership’s dynamic stock levels.
5. Stay Ahead of Regulations
Compliance is key as regulations change for demo rides and financing disclosures. Review both federal and state laws, update demo ride waivers, and consult with your trusted advisors to ensure alignment. Offer staff training to maintain compliance and minimize risk.
CBIZ Tip: Provide staff with compliance training sessions to ensure they understand updated regulations and operational changes. Request updated cyber security credentials from your vendors.
Tax Year-End Planning Tips
1. Bonus Depreciation:Bonus depreciation will reduce from 60% in 2024 to 40% in 2025. Accelerating equipment purchases before year-end will allow you to take advantage of the larger depreciation deduction this year.
CBIZ Tip: Don’t wait to make necessary purchases but remember that tax savings never trump business economics.
2. 163(j) Interest Expense Limitations:Flooring interest is generally exempt from the expense limitation rules, but there are exceptions.If flooring interest exceeds the calculated limit, bonus depreciation cannot be claimed. Additionally, related party rules could impact small business exceptions and subject real estate entities to these limitations.
CBIZ Tip: Work with your accounting team to estimate year-end flooring costs and commonly-owned entities that could trigger these limits and reduce the tax savings from bonus depreciation.
3. Pass-through Entity Tax:Many states allow flow-through businesses (like S-corporations and partnerships) to elect to have their business income taxed at the entity level.This workaround allows business owners to deduct state income taxes as a business expense on their federal returns, bypassing the $10,000 state and local tax limitation.
CBIZ Tip: It is important to make these payments before year-end in order to take advantage of the tax savings.
4. Cost Segregation Studies:Cost segregation studies help increase near-term cash flow by accelerating depreciation on real estate.New construction or significant remodel projects are ideal candidates for these studies, though they can also apply to older properties. Keep in mind that accelerated depreciation might trigger interest expense limitations.
CBIZ Tip: Building projects that exceed $500,000 are good candidates for a cost segregation study.
5. Energy-Efficient Buildings:The 179D Energy Efficient Commercial Buildings Tax Deduction allows businesses to deduct expenses for energy-efficient upgrades in commercial properties. HVAC, hot water systems, lighting, and building envelopes that are typically depreciated over 39 years can be deducted in the current year if they meet energy efficiency standards.
CBIZ Tip: New construction and buildings exceeding 25,000 are great candidates for a 179D analysis. Combine with a cost segregation study to maximize savings.
6. LIFO Inventory:Take advantage of inflation by adopting the LIFO (Last In, First Out) inventory method.LIFO allows you to expense the most recently acquired inventory first, which reduces taxable income. This method requires minimal changes to your current accounting system.
CBIZ Tip: Dealerships carrying $5,000,000 or more in inventory are great LIFO candidates.
7. Maximize Savings Contributions:Funding your HSA and retirement accounts can significantly reduce your tax liability. For 2024, contribution limits are:
HSA: $4,150 for individuals, $8,300 for families
IRA: $7,000 for those under 50, $8,000 for those 50 and older
401(k): $23,000 for employees under 50, $30,500 for those 50 and older
Total employee and employer contributions can reach up to $69,000.
CBIZ Tip: Consult with your plan administrator and tax professional regarding the deadline for making these payments. Payroll Year-End Planning
1. Review Workers’ Wages & Benefits:Check wages and benefits to ensure everything is accounted for, including benefits that should be added to the final paycheck.
2. Verify Employees’ & Contractors’ Personal Information:Ensure employee names, addresses, and Social Security Numbers are correct. For independent contractors, confirm their Tax Identification Numbers and ensure all relevant payments are recorded for Form 1099-MISC.
3. Update Employee Tax Profiles for Next Year:Remind employees to review and update their withholding allowances. Ensure employees who left the company receive their W-2 forms.
4. Bring Everything Together with Reconciliation:Perform a payroll bank reconciliation through December 31, ensuring that outstanding checks are identified and that payroll tax payments match your tax liability records.
5. Ensure Employer Information is Up-to-Date:Double-check that your business’ legal name, address, and Employer Identification Number are accurate.
6. Confirm Your Tax Profile for Next Year:Confirm deposit requirements for the coming year, as changes might occur without notice.
7. Verify Employer Tax Rates for Next Year:Review your state unemployment and disability insurance tax rates, especially if you’ve received letters from government agencies regarding adjustments.
These year-end steps will ensure that your dealership is fully prepared for the next fiscal year. If you have questions, please don’t hesitate to reach out to your NPDA contact at CBIZ, Jaci Bennett. She can be reached at Jaci.Bennett@cbiz.com.
What is driving people away from the dealership and how to avoid it
By Jolene KrizanDirector of Dealership Development, Garage Composites (An NPDA Gold Partner)
In the powersports industry, customer experience is everything. Much like the auto industry, certain frustrations can quickly drive potential buyers away from your dealership if not addressed properly. These frustrations are often similar to those customers encounter when purchasing a new car, and failure to manage them can lead to lost sales and missed opportunities.
1. High-Pressure Sales Tactics
One of the most common complaints in any sales environment is high-pressure tactics. While it’s tempting to push customers to make a quick decision, especially with time-sensitive offers, this often backfires. Instead of focusing solely on the sale, prioritize transparency. Provide clear details on the product, its pricing, associated costs, and warranty or financing options. Make the sales process about understanding the customer’s needs and helping them make an informed decision, not just closing the deal. This reduces buyer anxiety, builds trust, and encourages a positive, long-term relationship.
2. A Lengthy or Complex Sales Process
Customers often feel overwhelmed by a complicated or lengthy sales process, especially with the increasing volume of paperwork and disclosures required today. It’s essential to keep your customers informed every step of the way. Communicate expected timelines and provide updates on where they are in the process.
3. Rigid Processes with Little Flexibility
Our dealership processes are essential, but they should not be so rigid that they drive customers away. Staff should be trained to know when flexibility is necessary to keep the process moving smoothly. If a customer needs additional time, or if something doesn’t align with the established process, be prepared to adapt without losing sight of the overall goal. Flexibility fosters a customer-centric environment where clients feel valued and heard. We can always circle back to close any gaps.
4. Unclear, Misleading or Hidden Pricing
One of the quickest ways to lose a sale is by failing to answer pricing questions. I’m not just talking about additional fees or unclear pricing structures creating confusion. There’s nothing more frustrating than finding an advertised deal only to arrive at the dealership and find out the product isn’t available or the pricing is different. This “bait and switch” tactic damages your reputation. Always honor your advertised prices, and ensure that any product listings on your website or in your promotions are accurate and available. If a unit is no longer in stock, update your online listings to reflect that, rather than mislead customers. Always be upfront about your pricing structure, including all applicable taxes when asked. Including dealer fees, and any additional charges. Being evasive about the question leads to mistrust. Be transparent about financing and warranties as well. When customers have all the information they need, they can make decisions with confidence, which helps build customer loyalty.
5. The Dreaded Trade-In Appraisal
Trade-ins are a crucial part of many customers' purchasing decisions, but they can also lead to dissatisfaction if not handled transparently. We know that most customers feel they’re not getting a fair offer for their trade-in, partially because they are simply unaware of current market conditions. Avoid making customers feel uneducated or disrespected by offering them the resoning to understand the value of their trade-in. Provide printed value guides, show auction pricing, and outline reconditioning costs so they know exactly what factors influence the appraisal. Don’t make the trade-in process a secret—be upfront and provide options, including any tax advantages of trading in versus selling privately or avoiding the hassle of having people at your home.
Conclusion: Prioritize Transparency and Streamline the Process
To avoid driving customers away, prioritize transparency at every step of the sales process. Educate your customers without downplaying their existing knowledge, offer clear pricing, and simplify the buying experience as much as possible. By making the process straightforward, flexible, and customer-focused, you’ll build trust and increase the likelihood of returning customers. Small changes in how you engage with your clients can have a big impact on customer loyalty and your dealership’s long-term success.
Charlie Cole acquires two Harley-Davidson dealerships in latest transaction by Performance Brokerage Services
Performance Brokerage Services, North America’s highest volume dealership brokerage firm and an NPDA Gold Partner, is pleased to announce the sale of Carolina Coast Harley-Davidson in Wilmington, North Carolina, and Beach House Harley-Davidson in Shallotte, North Carolina, from Rick and Janice Noyes to Charlie Cole, Will Cole, and Freddy Tedesco of the Cole Family of Harley-Davidson Dealerships.
Carolina Coast Harley-Davidson, along with its sister store on U.S. Route 17, Beach House Harley-Davidson, have been family-owned and operated by Rick and Janice Noyes for three decades.
After the sale, Rick Noyes shared, “Building a business from the ground up and making it a staple in your community for over 30 years is quite a feat. Selling that well-established business is another, sometimes emotional journey. It takes a different community of expertise to make that sale come to fruition. George and his very dedicated team of experts can make that happen. They leave no stone unturned and remain present until the sale is done.”
Rick and Janice will continue to own and operate New River Harley-Davidson in Jacksonville, North Carolina.
Over the last five years, Performance Brokerage Services has advised on the sale of over 300 dealerships, making it the highest volume dealership brokerage firm in North America. George C. Chaconas, Senior Partner and Courtney A. Bernhard, Partner of the Harley-Davidson & Powersports Division for Performance Brokerage Services were the exclusive sell-side advisors for this transaction.
George Chaconas shared, “Over five years ago, I met with Rick and Janice Noyes at the last Harley-Davidson dealer show in Milwaukee to discuss the possibility of selling two of their North Carolina stores, Carolina Coast Harley-Davidson and Beach House Harley-Davidson. In the years following the pandemic, Rick called me to revisit selling their stores. Shortly thereafter, my partner Courtney Bernhard and I flew up and met with him and his wife to help them prepare for a sale. After providing an estimate of value and a marketing strategy, we identified a unique and qualified buyer, the Cole Family of Harley-Davidson Dealerships. It was an honor and privilege to help Rick and Janice successfully sell their dealerships, allowing them to transition to semi-retirement and focus on their remaining store. I’m deeply grateful for the opportunity to exclusively represent them on the sell-side and guide them through this life-changing transition.”
Courtney Bernhard added, “I appreciate the opportunity to represent Rick and Janice Noyes on the sale of their two dealerships, along with my partner, George Chaconas. Working through a multi-rooftop transaction requires a lot of collaboration, and they were supportive during the entire process. I would also like to thank their controller, Summer, for her diligence in preparing for the sale. I wish them continued success at their remaining location, New River Harley-Davidson. It was also a pleasure working with Charlie, Will, and Freddy as they were very professional and made for a smooth transition. In an environment where there has been a lot of uncertainty, everyone was positive and looks forward to better times ahead!”
Charlie Cole, President of the Cole Family of Harley-Davidson Dealerships, has been an award-winning Harley-Davidson dealer since 1998.
He shared, “I want to thank Courtney and George at Performance Brokerage Services for presenting this incredible opportunity. This marks the third and fourth stores I’ve acquired through PBS.”
With the addition of Carolina Coast Harley-Davidson and Beach House Harley-Davidson, the Cole Family of Harley-Davidson Dealerships now owns eight dealership locations across Virginia, West Virginia, North Carolina, and South Carolina.
Rick and Janice Noyes were represented by Logan Parker and Greg May at Bass Sox Mercer in Tallahassee, Florida.
The Cole Family of Harley-Davidson Dealerships were represented by Eric Gregory at Gregory Law, LLC in Johns Creek, Georgia.
Carolina Coast Harley-Davidson will be renamed Shipwreck Harley-Davidson and will remain at its current location at 6620 Market Street in Wilmington, North Carolina.
Beach House Harley-Davidson will be renamed Sea Breeze Harley-Davidson and will remain at its current location at 100 Harley Davidson Drive in Shallotte, North Carolina.
Excitement ahead for LeadHelm customers in 2025
At NPDA Gold Partner LeadHelm, we’ve always been driven by one goal — helping dealerships sell more vehicles! 2025 is set to be a transformative year, and we’re thrilled to share what’s on the horizon for current and future customers.
Our story has been one of constant innovation, from providing outsourced digital lead follow-up services to developing a groundbreaking lead management system. This year, we’re doubling down on our mission by introducing a new subscription model designed with flexibility and results in mind.
• Done For You — Trust us to handle the entire digital lead follow-up process.
• Done With You — Collaborate for a smooth handoff.
• Done By You — You take full control by leveraging our software.
This approach doesn’t just provide solutions — it meets you wherever you are, empowering your success on your terms.
The future is all about options that work for you. Together, we’re building a future of innovation, trust, and shared success. 2025 is going to be incredible, and we can’t wait to partner with you!
DigniFi celebrates Gold Partnership alongside Dealer Members at Dealer Connect
DigniFi was thrilled to participate in the inaugural NPDA Dealer Connect Tradeshow! It was energizing to connect with so many passionate dealers and partners who share our love for powersports. We’re proud to work alongside dealerships, providing customers with inclusive financing* solutions that make it easier to access all your products and services. From F&I and vehicle repairs to parts, accessories, negative equity assistance and preventive maintenance, DigniFi offers tailored payment options designed to help power your business and elevate the customer experience.
Dave asked that we introduce Tearsa Burgess, the Vice President of National Sales at DigniFi, wife of a retired firefighter (who is a proud Harley-Davidson rider), and a mother of four. Tearsa has been in the auto industry for over 25 years and fully embraces the powersports focus DigniFi is committed to. When a dealer-partner recommended that she check out NPDA, she was instantly aligned with the vision. DigniFi became an NPDA Partners and registered to exhibiting at Dealer Connect without hesitation. What a great decision that was!
Dealers can reach out to Tearsa at tearsa.burgess@dignifi.com.DigniFi is committed to supporting NPDA and we look forward to forging strong partnerships with the dealer partners and the other NPDA sponsors as well. Please connect with us if there is anything DigniFi can do for your dealership or your organization. We are in this together!
*All credit products are issued by WebBank.
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