qr-play-store play store

The new tax reform could force some dealerships in Texas to shutter

29 Nov 2017
64 comments
1143 views
The new tax reform could force some dealerships in Texas to shutter

For people who live in such a big state as Texas, driving is more like a way of life. The average Texas motorist logs more than 16,000 miles behind the wheel each year, far more than the average American. Nationally, nearly 1 in 10 new vehicle registrations occurs in the Lone Star State.

 

 

The central role cars play in Texas means that policies that impact the automobile industry affect us more than most. The tax reform package being considered by Congress has many benefits — but a major wrinkle in the Senate version could force some dealerships in Texas to shutter. That would devastate Texas motorists and jeopardize more than 200,000 jobs. Earlier this month, the U.S. House passed the Tax Cuts and Jobs Act, a comprehensive reform of the nation’s tax code. The bill kept in place a rule that allows local dealerships to deduct the “floor plan interest expense” they pay on the loans they rely on to purchase cars.

 

 

Dealer’s tax bill will be increased by a whopping $650,000. And that would crush their business.

Borrowing so much capital is risky for any business. But it’s an especially large expense for car dealerships, as most are small operations. In Texas, most dealerships employ around 50 people. And because of price competition among same-brand dealerships, the profit margins on new cars are razor thin.

0 0
Comments:
No comments found
  • Jaw-dropping deals this Spring at RepoKar
    27 Feb 2017

    Spring is right around the corner! With melting snow comes rising car sales. Longer days and brighter sunlight mean it’s the season to think about the best used cars for spring; vehicles that allow you to appreciate blue skies, while getting a head start to summer. The sooner you decide on your dream car, the greater the possibility of finding the best deals.  At RepoKar, we want to be sure that you've got everything you need to start the season fresh with a smile on your face. That’s why we’ve prepared amazing, hassle free used cars, trucks, and SUVs for our fr...

    4 4
    1239
    1367269 views
  • Buy a car at RepoKar this Winter
    25 Nov 2017

    With winter on its way, the roads can be dangerous because it dries slower and road visibility as well as battery failure can also be hazardous. It’s time to start thinking about how you can make your daily drive safer and stress-free. That doesn’t necessarily mean you should buy an SUV or crossover to survive the season. Plenty of sedans and wagons provide qualities that can keep you safe in sleet and snow. These medium-sized vehicles also help you save at the pump! But what actually matters here is choosing the right place to buy a car from. There are several options on the marke...

    0 0
    1288
    248221 views
  • Diesel Cars VS Electric Cars
    17 May 2019

    Between loyal customers and car dealers lie an important dilemma that begs for an answer - What is the future of diesel cars and electric vehicles? Today at RepoKar, we are ready to tackle this predicament.Auto manufacturers and the combustible industries have often mentioned the idea that electric cars are worse for the environment than diesel and gasoline-powered vehicles because they are powered by dirty electricity.If we want to talk about fuel efficiency, noise pollution, and air quality, then EVs are clearly the outright winner. But if we're talking about torque or initial price, the...

    0 0
    6516
    88433 views
  • Fire Risk: BMW Recalls 185,000 Cars TODAY
    19 Apr 2019

    The recall expansion covers 3 Series, 5 Series and Z4 models from the 2006 model year. The problem has been traced to irregularities in the manufacturing process that could allow moisture to occur near the PCV valve heater and lead to a short circuit. The PCV valve is an emissions device that keeps pollutants created by an engine from being released into the atmosphere. It also helps keep the engine oil clean and prevents crankcase pressure from building up. BMW warns its customers to stop driving the vehicle if there is smoke coming from the engine, or if the driver smells smoke or plast...

    2 3
    269
    10694 views
Search on the blog
Find us on

Last added auctions

2012 Ford ESCAPE
18100 views
19 photos
3,400.00
No bids
2012 Nissan MURANO
18261 views
13 photos
3,500.00
No bids
2000 Honda CR-V
17957 views
12 photos
1,200.00
No bids
2012 Mazda MAZDA3
15818 views
16 photos
2,500.00
No bids