01 Nov NADA 2016 Revisited
Hey there! Welcome to the NADA 2016 recap. Yes, I know NADA was awhile back, but NADA 2017, or NADA100, is coming up in New Orleans in a few months. You should have had time to have gotten back into the groove of the real world…and you’ve had some time to discern what was really important.
Deciding what value you get out of NADA can be tough to do. After all, there are over 600 vendors with booths, all clamoring for your undivided attention. That’s not even counting all the people who want to meet up with you outside the convention, but that’s another story.
As I walked the floor, I was struck by just how confusing it can be to be a dealer nowadays. What brand of LED lights have the fastest return on investment? Which website provider is going to drive more traffic to the store? Which hole-in-one insurance provider will deny a claim?
You gotta ask yourself: which of those vendors are going to matter to you in five years? Ten years? What decision could you have made at NADA that will really matter when you’re as old as the hills?
If you’re a dealer, it’s a safe bet to say that the single biggest business decision you’ve ever made in your life was the choice of becoming a dealer in the first place. Easy call, right?
But what was the second biggest decision you’ve ever made? That’s a little more of a challenge. Well, allow me to help. It should be a little word called reinsurance.
New LED lights are not going to change the legacy of your kids. Neither will hole-in-one insurance. But reinsurance can, and will.
You see, it doesn’t take long to accrue hundreds of thousands–and even millions–inside your own reinsurance company. These funds are tax-advantaged, and you can access the capital through loans and dividends. This is wealth building to the max that most financial advisors and CPAs are completely oblivious to. It’s just not part of their curriculum, even though savvy dealers have been doing it for decades, and the IRS has been signing off on reinsurance just as long.
The only bigger decision than deciding to participate in the underwriting profits of your F&I products is the decision to become a dealer in the first place. Nothing else even compares.
Stop leaving money on the table. Start creating a true legacy, with the best idea that this NADA–and every NADA–had to offer: the idea that you could convert the expenses of your service contracts and ancillary products into tax-advantaged assets through reinsurance.
Some things to consider since NADA 2017 is going to be here soon.