view newsletter online January 22, 2024

A Word from MTIADA President, Chad Randash

I hope you are starting out on a great January 2024. As I write this I noticed on my Facebook page that

came up from Ox & Son Towing and Recovery, above.

Wow! Now if you have cars on your lot or in the last few days you sold a vehicle, it is probably safe to

assume that a client that you just sold a vehicle will be calling with the same problem that you might

have if you go out to your lot to start a vehicle.

Here is how the Cold affects the vehicles:

  • TPMS Sensors are going to be flashing-As the air in the tires get colder-it contracts and has less pressure so tires will become underinflated.
  • Dead Batteries: Not only have a good set of Jumper Cables but make sure the battery connections are tight and free of corrosion. It is also recommended to replace batteries that are 3 years old.
  • Thick Oil: At about 20 degrees below zero, oil can get so thick that the engine’s oil pump struggles to even pick it up and circulate it. The viscosity goes way up and it is like pouring molasses. Switching to a low-viscosity oil in the winter or a Synthetic oil can help.
  • Ice in the Fuel Lines: Water Moisture in the gas lines can become icy in these conditions. The solution is to keep at least half a tank full.

What are some other tips that you may use at your lot or you let your clients know about? Shoot me an email at or give me a call at 406-570-5426, I would love to hear from you.

For all members and non-members, I wanted to thank everyone involved and trusting in the association. The most common thing that I hear from all independent dealers is, what can the association do for me? As the President of this association, it is my intention to first deliver a consistent message of local and national news items that may affect your business. In addition, I have asked for strategic partners like Buckeye Dealership Consulting, PassTime, Kinetic Advantage, MVD Express, ADS and others to help light our way. But we also need Dealer Participation.

With a consistent message and dealer participation on the board as well as in our communities, our mission is to serve all independent dealers in our great State of Montana.

Chad Randash


Update Your 2024 Membership

MTIADA is incredibly grateful for your membership, and we are always stronger when we stand united. With its members’ support, your association can continue to advocate for all independent dealers at the state Capitol and offer the education and resources you can always rely on.

Visit our Website to Renew/Join

Maximize the Benefits of Reinsurance

This is the final installment of a four-part look by Buckeye Dealership Consulting’s CEO Rob Fox regarding the ways independent automobile dealers and finance companies can maximize the benefits and profit opportunities that come from establishing their own reinsurance company.

PART IV: Investment Income and Tax Advantages

As your reinsurance trust account grows, you will have the opportunity to invest those funds in accordance with your own risk tolerances and financial needs. You have complete control over the investment strategy because – the funds are yours!

Many are concerned about the credit markets and the availability of capital for dealers to run their businesses. Some dealers may need an injection of cash to stay the course, or perhaps you’re looking for capital to fuel growth. A dealer’s reinsurance company can lend the dealership earned premium to provide necessary liquidity to take your business where you’d like it to go.

You may be wondering what tax implications exist if you tap your reinsurance funds. Once premium is fully earned, you may have the ability to use those funds in a tax-advantageous manner. The good news for some is you may be taxed at long-term capital gains rates and not at ordinary incomes.

But, let me emphasize that you should always, always, always consult your tax professional for any advice and tax strategies. That’s not just a boiler plate disclaimer, it’s sound advice. And, while you’re chatting, ask for an opinion on the benefits of reinsurance.

Estate/Succession Planning Tool

Over my years in meeting and working with independent dealers, I have encountered great entrepreneurs that have built successful businesses from the ground up. At some point, most realize they need succession plan – an exit or retirement strategy.

Your reinsurance company funds can be an integral part of this plan. You can build a large amount of wealth over a relatively short period of time. Your reinsurance entities can allow for multiple owners affiliated with your family members and/or business partners. You can use those earned premiums as a resource to plan for a future in or out of the business.


Let me close with an anecdote from a CPA who specializes in management, finance and taxation of automobile dealerships. The CPA said he discussed reinsurance with a dealership client. For whatever the reason, the dealer was reluctant to form a reinsurance company. After several years of discussing the topic, the CPA finally agreed not to bring up the subject again. One day, the CPA could no longer hold back. He looked the dealer in the eye and said if you don’t want to form a reinsurance company, then you’re also saying you don’t want an extra $200,000 in additional net claims deposited into a brokerage account for your benefit. The dealer finally saw the light and got reinsurance started. I’m not sure where the $200,000 number came from, but for our purposes, it doesn’t matter. The point the CPA made is this. If you don’t want extra money, then reinsurance isn’t for you. If, however, you enjoy having more control, improved customer relations, and more cash, then doing something is better than doing nothing.


Running an independent dealership takes a lot of work; you need to make sure you’re getting the best price on your inventory purchases, have a top-notch sales process, and perform regular maintenance on your lot to keep it looking great. While there are a lot of dealership floorplans out there to help you run your business, you want to select one that’s going to provide you with the right tools and support to keep your cash flow moving and help with the heavy lifting.

1. Save Time and Money

Independent dealers are busy, so it’s important to invest in tools that will save you time while also increasing your cash flow. Ensure your lender has the capability that allows you to streamline payments, document handling and makes sourcing inventory quick and simple.

2. Make Floorplanning Easier

Not all floorplans are created equal and that’s why it’s important to select one that’s going to provide you with the latest in technology and innovation so you can do everything from floor your inventory to track down your titles with ease. A lender that provides an intuitive flooring experience so you can run reports and schedule payments saves you time and money.

3. Market Expertise

Even if you’ve been an independent dealer for several years, there may be some nuances in your market that you are unaware of, such as sudden shifts in vehicle demand. That’s where your lender can help. They view themselves as “partners” in your business and will go above and beyond to keep inventory rolling off your lot.

4. Access to Additional Funds

When you need to pay off a consumer loan on a trade-in or want to take advantage of an off-the-street purchase that has a current lien on it, the last thing you want is to have to tap into your cash flow, potentially impacting your ability to purchase inventory. Ensure your lender has a Consumer Loan Payoff program that will handle the payoff for you so you can put the vehicle on your floorplan without having to dig into your wallet.

5. Funding for Non-Auction Vehicles

If you need to floor an off-street purchase or trade-in quickly, a Fast-Fund Program can help. It’s

important to keep your cash flow growing and having to wait days to fund non-auction purchases is just another hurdle, so ensure your lender will allow you to floor a vehicle and receive funding the same day.

Sponsored by Buckeye Dealership Consulting, Kinetic Advantage, & Passtime

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