Dealer Owned Warranty Company (DOWC)

The DOWC is very often a dealer's most profitable solution when choosing among participation structures. For a dealer with multiple roof tops, and especially for a dealer that plans on growing their business during the next 5 years, the DOWC is by far the most profitable.
(check out our DOWC article published by the MSADA)

 
 
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Why is it different?

A DOWC creates a tax deferral period, which is maximized through tax and investment benefits, enabling the dealer to retain and develop as much of their revenue as possible.

If you're interested in developing long-term personal wealth and focusing on estate planning, then you need to explore a DOWC opportunity.

To begin a discussion of how a DOWC can benefit you and your dealership(s), please contact us today.


What are the unique benefits?

  • Low formation expenses
  • An extended multi-year tax deferral period during which dividends are available to shareholders
  • A domestically owned corporation
  • Shareholders can actively direct the investment of their reserves
  • DOWC reserves are not subject to premium taxes (saving 1.5% to 4% per VSC)
  • Cash is available via distributions to shareholders as early as year one
  • Great source of additional capital for a dealership, as the DOWC can be borrowed against

DOWC Proforma Generator

Want to know what your business would look like in a DOWC?  Let us build a proforma for you.  We'll use your existing production, forecast what your sales would do if they were ceded into your own DOWC, and then compare it to your current participation program.