Kevin Londerholm | June 11, 2020
One element that every dealer entering the LHPH business should be aware of is accounting. Lease accounting is different than what most dealers are accustomed to from their BHPH or retail experience. However, proper lease accounting will allow the dealer to maximize the tax benefits afforded to them from the used car lease product.
Using a LHPH compatible software (DMS) will help with the proper reporting, however, retaining an accounting firm with consumer leasing expertise is highly advised. They can assist you with transitioning your current books and advise you on the best way to optimize your standard and bonus depreciation for tax purposes. One such firm with extensive consumer leasing experience to consider is Katz, Sapper & Miller. See Mike North explain the classification of a lease in the video from our LHPH Summit below: