The countdown to the new year is on, and for dealerships, December isn’t just about holiday cheer—it’s about closing the books with strong profits. The final month of the year is the perfect time to reassess your inventory and make moves that can boost your bottom line. Here’s how to end 2024 on a high note.
1. Reevaluate Your Inventory
Before the year ends, take a hard look at your inventory to identify aging stock and slow movers. These vehicles could be eating up valuable space and tying up your cash flow. With tools like the Dealerslink inventory management system, it’s easy to pinpoint which units need immediate attention. Think holiday promotions, year-end discounts, or even wholesaling to clear the way for 2025 models.
2. Leverage Tax Advantages
Clearing out inventory isn’t just good for your lot—it’s great for your taxes. According to Brady Ware, maximizing deductions like the 20% Qualified Business Income Deduction is crucial for minimizing your tax burden heading into 2025. Additionally, taking advantage of bonus depreciation (60% in 2024) and Section 179 depreciation can provide significant savings.
To further optimize, consider implementing a capitalization policy to expense small purchases as repairs and maintenance. For dealerships that make charitable contributions, Brady Ware also recommends “bunching” deductions—doubling up on donations this year to exceed the standard deduction threshold and skipping next year’s contributions. For partnerships or S corporations, you might explore state pass-through entity tax elections to lower state tax liabilities.
Using tools from Dealerslink, you can forecast which vehicles to prioritize for year-end incentives, helping you align your inventory moves with tax-saving opportunities.
3. Price to Move
December shoppers are deal hunters, and a smart pricing strategy can turn browsers into buyers. Dealerslink pricing tools make it easy to adjust prices dynamically and stay ahead of your competitors. Using real-time data, you can position your vehicles as the best value in your market, whether customers are shopping online or on-site.
4. Plan for Q1 2025
Managing inventory now isn’t just about ending the year strong—it’s about setting yourself up for success in 2025. By clearing out slow movers, you’ll start the new year with more capital and room for fresh stock. The Dealerslink sourcing tools help you restock with vehicles that align with the latest trends and customer demand, so you’re ready to hit the ground running in January.
Don’t Wait—Act Now
The clock is ticking, and the decisions you make now will define how you close out 2024. Dealerslink offers everything you need to optimize inventory, boost profits, and start the new year with confidence. Let’s finish strong—your dealership (and your accountant) will thank you.
