OFFICIAL PUBLICATION OF THE TEXAS AUTOMOBILE DEALERS ASSOCIATION

Pub. 62 2021-2022 Issue 2

Auto-inventory

What a Decrease in Inventory Means for Your LIFO Reserve

Most automobile dealerships value at least some part of their inventory using the Last-In-First-Out (LIFO) accounting method. In periods of rising prices and stable inventory levels, LIFO usually results in a deferral of income by an increase in the cost of goods sold. When prices are falling and/or inventory levels decline, the opposite can happen – that deferral of income reverses; this is known as LIFO recapture. Historically low inventory levels brought on by the COVID-19 pandemic, subsequent recovery of demand and now chip shortages, coupled with the potential that low levels may persist through the end of 2021, are a potential threat for LIFO recapture this tax year.

Electric car charging station for charge EV battery. Plug for vehicle with electric engine. EV charger. Clean energy. Charging point at car parking lot. Green power. Future transport technology.

Mapping Out a Successful EV Charger Strategy

As your OEMs make continuing commitments — and as there is an increased demand from consumers — there will be a continued demand for auto dealers to map out tailored solutions for a successful and holistic electric vehicle charging strategy. Balancing current needs with future needs comes with a variety of options and considerations, each worth assessing before taking action.

Bob Vackar

Robert C. Vackar, a Dealer Deeply Invested in Business and Community

Robert (Bob) C. Vackar is the Chief Performance Officer and Chairman of the Board for the Bert Ogden Auto Group. He currently has 23 franchise dealerships in the valley, with plans to buy three new dealerships in the next few years and open six more Signature Select used-car locations over the course of the next five years. Additionally, Bob is excited about opening additional quick lube facilities across the Valley for the convenience of the Bert Ogden Auto Groups ever-growing customer base. Bob has lived a life full of change and endured challenges, and today, through perseverance and visionary perspective, he enjoys the fruits of his hard work as he continues to grow his business.

Texas State Capitol Building

A Message From TADA President Darren Whitehurst

The year 2021 is now in the books … and what a year it was. The continuation of a worldwide COVID pandemic, a contested federal election, the 87th Texas Legislature, the Texas winter freeze, the chip shortage, and mask mandates were but a few of the challenges that we all had to face. Texas dealers have navigated these challenges and more. You worked with the resources you were given and then improvised and achieved impressive results for the year according to various state and national reports as well as sales tax numbers from the Texas Comptroller’s Office.