For many car dealers out there, you probably notice a significant decline in your sales around the end of the year. The TRS Tax Max Service can help you reverse this trend and get fourth quarter sales to increase.
How does it work
Using TRS’s Tax Max system allows the dealer to estimate the amount of tax return a customer will be receiving in the upcoming year. This allows the dealer to negotiate a future down payment or pick up payment. It also serves as a way to get a “head start” on tax time. When the actual tax documents arrive, the customer brings the W-2 and the 1099 paperwork to the dealership. The taxes are filed at the dealership and the check is printed. The dealership subtracts the amount of the down payment from the customer’s taxes and then writes them a check for the difference. Additionally, the customer can have their taxes done elsewhere if they so choose, as long as the check is brought to the dealership.
Benefits of using Tax Max
As most car dealers know, there has been a significant shift in the market causing tax time to be much shorter and much later than recent years. With Tax Max software it allows the dealer to get a head start on the competition and expand their tax season by selling cars in October, November, and December, based on customers anticipated refund. Imagine what an advantage it would be to capture these customers before other dealerships ever get a chance to sell them a car.
Risks of using Tax Max
Just like every other business transaction in the car business, there is no guarantee the customer will pay. Tax Max offers an incentive by doing the customer’s taxes for them. In most cases the customer will choose this option and the check will come straight to the dealership. This is great because it means you get your money before your customer has an opportunity to spend their tax rebate. However, there are some cases where the customer will choose to have their taxes done outside of the dealership. This can cause problems; the customer will receive the check from whatever agency filed their taxes. This places the burden back on the dealer to collect the promissory note.
In most cases, Tax Max will serve as a way to capture quality customers, months before tax time, that you would not otherwise have been able to sell a car. However, it does place more responsibility on the dealer to track these customers and make sure the promissory notes are received. More information can be found on TaxMax.com.