Car Dealership Guy

Carvana’s margins aren’t magic... Ernie Garcia, Founder and CEO of Carvana, explains it's the result of stacking strategic advantages. In-house financing, wholesale sales, and a vast logistics network all feed into $7,427 gross profit per unit. Here's the breakdown of how they keep pushing margins higher. ➤ Stream the latest episode of the Car Dealership Guy Podcast now on your favorite platform—brought to you by PrivateAuto, Effectv, and CDG Recruiting

About 80% of the used cars franchised dealers sold last year came directly from consumers (trade-ins + buy from public). But keeping that pipeline flowing isn’t guaranteed. One edge dealers have? Service retention. Brice Englert, Founder & CEO at TradePending, explains why investing in it is critical to staying ahead of the competition. ➤ Stream the latest episode of the Car Dealership Guy Podcast now on your favorite platform—brought to you by TradePending, Tax Max, and DLRdmv

It takes more than a buy button to stand out in auto retail. Carvana’s edge? A relentless string of hard-to-do things that customers actually care about. Ernie Garcia, Founder and CEO of Carvana, explains how this strategy keeps them ahead. ➤ Stream the latest episode of the Car Dealership Guy Podcast now on your favorite platform—brought to you by PrivateAuto, Effectv, and CDG Recruiting

[NEWS] Ford is shaking up its leadership to tackle a costly problem: The automaker has been hit hard by recalls and warranty expenses over the past few years – sacrificing its reputation and losing billions in the process… The fix? A new head of quality is on the way — though the name hasn’t been revealed yet. As for Jim Baumbick — Ford’s current head of quality — he is stepping into a new role overseeing all vehicle programs, including EVs and ICEs. Ford says the changes will drive better collaboration and improve vehicle quality for customers. But the stakes are high. Ford faced 62 recalls in 2024 alone, second only to Stellantis with 67. The company also agreed to pay $165M this year for not recalling vehicles with defective rearview cameras. And overall — warranty costs have surged — up $800M in Q2 compared to last year. Bottom line: According to CEO Jim Farley — the Blue Oval is having some modest success with its initial quality — but it still has a ways to go. Read today’s top automotive stories, presented by Dealer Pay: https://lnkd.in/eHRUF8MA (Data source: Ford internal memo via Reuters)

EV adoption is growing — but myths and confusion are holding back sales: A recent consumer survey shows that a majority of current hybrid owners are looking at a pure EV for their next purchase. And even gas-powered car owners are warming more up to the idea. But here’s the problem… Misinformation about costs is holding buyers back. Many consumers still believe EVs are more expensive to maintain than gas cars — And the confusion doesn’t stop there. 84% of EV owners believe their cars hold value better than gas or hybrids. But the reality? EVs often depreciate faster — and sometimes significantly faster. Making the choice between leasing and purchasing more complex. And then there’s range anxiety — 64% of shoppers doubt EVs are fit for long trips, but many new EVs now exceed 300 miles of range. But with most EV buyers still preferring the in-store experience — dealers have a chance to dispel the myths and drive sales. Read today’s top automotive stories, presented by Dealer Pay: https://lnkd.in/eXdZ8uYW (Data source: CDK Global)

Carvana’s value tracker is evolving how customers connect with their cars. Brice Englert, CEO of TradePending, believes giving dealerships similar tools is the key to staying competitive. Here’s how he says dealers can keep customers coming back. ➤ Stream the latest episode of the Car Dealership Guy Podcast now on your favorite platform—brought to you by TradePending, Tax Max, and DLRdmv

How dealers are quietly outsmarting their competition: Today — most dealers rely on the same(ish) tools and technology to compete. But the twist is — that same technology is making fierce competition that much hotter. So how can dealers stand out? Brand. A study of 8M+ dealership Google reviews shows negative reviews mentioning staff are up 20% YoY. So, what are the top-rated dealers doing differently? Here’s what I learned... A highly systemized approach to dealership training is critical at scale. At Walser Automotive every new hire begins with a one-day orientation to learn the company’s history and core values: Do the right thing. Lead by example. Embrace change. Then comes a paid, 3.5-week deep dive into Walser’s sales process. It’s hands-on — blending guided sessions and roleplay to prepare new hires for today’s “Amazon-age” customer expectations. The program wraps up with a high-stakes 45-minute simulation. The challenge? Successfully close a deal with a sales manager playing the customer. But training doesn't stop there — Every morning, the team blocks off 30 minutes for coaching with sales managers — from side-by-side vehicle comparisons to real-life scenarios. Meanwhile, even smaller groups are getting creative and doing more with less. At Sutherlin Auto Group, every employee — from receptionists to cashiers — is manufacturer-certified. Why? Because no matter who answers the phone or greets a customer, they should be able to provide accurate, confident answers. But Sutherlin takes things a step further with a 90-day cross-training program for top-performing salespeople and service advisors. Here’s how it works — Employees are paired based on similar personalities and temperaments, then shadow each other’s roles for three months. The result? A team that’s agile, knowledgeable, and ready to meet customers wherever they are in the buying or ownership journey. For Jean Reitelbach at Scott Auto Group — turning negative dealership reviews into coaching moments is an art. Instead of replying with a canned response... she reaches out personally, explaining how the feedback is sparking real change within the dealership. And 50% of those reviewers update their ratings after. Even the biggest dealerships, like Longo Toyota, are investing in training. From a 90-day onboarding program to greeting every guest within 10 feet, their hospitality mindset is unmatched. Longo also employs a full-time learning and development manager to oversee continuous education. And the dealership has a sales development team that works exclusively with new hires. The goal? To ensure every team member is ready to handle any situation before they meet customers. The bottom line: Competition will only get tougher, but the dealers who rise to the challenge are building customer experiences that will pay off for years to come. Read the breakdown here, together with Dealer Pay: https://lnkd.in/eTJK4hkZ

The reason every dealer dreams of owning a Toyota franchise—captured in one image. But throughput isn’t a perfect measure for every brand: — Luxury players like Porsche thrive with fewer units. — Economy brands like Nissan struggle, even when they’re "above average." So, who’s in the Goldilocks zone? BMW. Get more insights on franchise performance in the Haig Partners report: https://lnkd.in/g99PNMbf (Data via CDG partner: Haig Partners)

[NEWS] Top 5 dealership buy/sell deals from November and December: 1. Kelly Auto Group sells Florida Infiniti store. Kelly Auto Group decided to divest the location after spending several years growing its portfolio and undergoing big building projects at other locations. 2. Corwin Automotive Group acquires Colorado Honda dealership. Honda remains a highly profitable and sought-after brand coming in just behind Toyota and Lexus with little to no erosion in earnings. 3. Country Auto Stores offloads Buick GMC location in Northern Virginia. Purchased by Jaffer Syed, Country Buick GMC of Leesburg is the 7th highest volume Buick GMC dealership in the state. 4. Bohn Brothers Automotive Group sells 2 dealerships in Louisiana. In two separate transactions, Sonic Automotive acquired Audi New Orleans (#1 in the state), and Matt Bowers Auto Group purchased Hyundai Genesis of Metairie. 5. Warren Henry Auto Group adds Kia of Key West to its portfolio. Marking its sixth acquisition in the past two years, Warren Henry Auto Group will add the dealership to the Keys Auto Center family. Read today’s top automotive stories, presented by Dealer Pay: https://lnkd.in/gTCnv2rd (Data source: Haig Partners / Kerrigan Advisors / Pinnacle Mergers & Acquisitions / Performance Brokerage Services)

New car inventory has reached its highest point in 2024: Supply levels are now only 11% lower than they were in 2019. — Demand for Toyota and Lexus is still hotter than ever. — Honda, BMW and Subaru are not far behind. — Lincoln, Jaguar (ahem), MINI, and Jeep are oversupplied and some of the worst offenders. Here’s new car availability (days’ supply) from least available to most: (via Cox Auto)