Fixed Ops Friday w/ Ruffolo, Norris, and Stephens | Daily Dealer Live

“Lease pen” here refers to the share of new-vehicle transactions that are done via leasing (often discussed as a leasing penetration rate). When leasing penetration rises, more leased vehicles will return to the market later, affecting used-car supply and pricing.

Plug-in hybrids are vehicles that combine a gasoline engine with an electric motor and a battery that can be charged from an external power source. In the segment, they’re important because EVs and plug-in hybrids were heavily leased, so their return to the used market can swing supply and pricing.

The Mercedes-Benz EQS is an all-electric luxury sedan (also in the EQ lineup) known for its high-end EV packaging and comfort focus. Here it’s cited alongside the EQE as an EV that’s returning from leases and selling below estimated resell values.

The Mercedes-Benz EQE is a battery-electric luxury sedan positioned below the EQS, with a similar focus on comfort and modern tech. It’s relevant to dealership discussions because its real-world selling prices can land noticeably below estimated resale values. That kind of pricing movement is important for shoppers planning to buy and later sell or trade the vehicle.

The Ford F-150 is a best-selling full-size pickup truck and one of the most common vehicles in the used market. In this segment, it’s cited as selling above estimated off-lease values, indicating stronger pricing support than some heavily leased EVs.

The Honda CR-V is a mainstream compact SUV that’s widely leased and traded in volume. In this segment, it’s used as a counterexample: CR-Vs are selling above estimated off-lease values, suggesting stronger residual performance than some EVs.

The Honda Civic is a long-running compact car line known for high volume and broad market demand. Here it’s grouped with the CR-V as a model that’s selling above estimated off-lease values, implying better-than-expected residual value outcomes.

“Sourcing discipline” here means being selective and strategic about which vehicles a dealer acquires for inventory. The idea is that when residual values and real-world resale diverge (especially for EVs), choosing the right models matters more than buying broadly.

Residual value is the manufacturer-set estimate of what a leased vehicle will be worth at the end of the lease term. It’s used to calculate lease payments—higher residual values generally lead to lower monthly payments.

Q1 means the first quarter of the year (January through March). In dealership and finance discussions, Q1 is used to compare lending behavior and loan terms quarter-over-quarter.

Monthly payments are the recurring amount a borrower pays to service an auto loan. The segment highlights how payment sizes differ for new vs. used cars and how a growing share of borrowers are paying $1,000+ per month.

In auto lending, 72 months refers to a 6-year loan term. Longer terms can lower the monthly payment, but they also increase total interest paid and can raise risk if affordability slips.

Subprime is a credit-tier label for borrowers with weaker credit histories, which typically means higher interest rates and greater default risk. The host notes subprime (and deeper tiers) grew while superprime/prime declined.

Superprime is a credit-tier label used by lenders to describe borrowers with very strong credit profiles. The segment tracks how the share of loans in superprime vs. other tiers changes over time, which affects risk and pricing.

Refinanced volume is the total amount of existing auto loans that get replaced with new loans (often to change the interest rate or term). The segment says refinance activity more than doubled, indicating borrowers were actively restructuring debt.

EV share of new financing is the percentage of newly financed vehicles that are electric vehicles. The host notes EV financing share fell while hybrid and ICE shares rose, showing shifting demand and lender/consumer mix.

ICE stands for internal combustion engine, meaning vehicles powered by gasoline or diesel combustion rather than electric motors. The segment uses ICE share to compare how much new financing is going to gas/diesel vs. hybrids and EVs.

Affordability management is the idea that lenders and dealers must keep loan terms and payment burdens within what borrowers can realistically handle. The host’s point is that longer loan terms aren’t automatically bad, but the “margin for error” is shrinking when payments get tight.

In dealership-speak, “fixed operations” (often shortened to “fixed ops”) refers to the service and parts side of the store—things like maintenance, repairs, and selling replacement parts. It’s called “fixed” because it’s tied to the dealership’s physical facilities and recurring customer demand, rather than vehicle sales that are more variable.

NADA Dealer Academy is training associated with NADA (National Automobile Dealers Association), aimed at dealership staff and managers. In this segment, it’s referenced as the source of the explanation for why “fixed ops” is called “fixed ops.”

DMS here means dealership management system, the software dealerships use to run service workflows. It typically connects scheduling, customer communication, technician work, and documentation like inspection videos.

Multi-point inspections (MPIs) are structured checks across multiple vehicle systems—often brakes, tires, suspension, fluids, and other wear items. In service marketing, MPIs are used to document findings and justify recommended work.

A brake caliper issue refers to problems with the component that clamps the brake pads onto the rotor. If a caliper slides or applies unevenly, it can cause uneven pad wear—like pads wearing more on the inside than the outside.

Pen rate (in this context) is a service-communication metric indicating the percentage of sent technician videos that result in a “pen” action—typically the customer opening/engaging the message. It’s used to measure how effective the dealership’s video MPI delivery is.

C-P-R-O volume refers to the number of customer pay repair orders (or similar service transactions) generated by a service offer. In this context, the hosts are saying the $50 oil change promo increased the dealership’s service work volume tied to customer-paid repairs/orders.

A direct message here means a targeted outreach sent straight to customers (rather than a broad ad campaign). The point is that a simple, specific message tied to the $50 oil change offer correlated with higher service volume.

“Regular oil” typically means conventional motor oil rather than synthetic oil. For oil-change promos, specifying conventional oil matters because it affects cost, customer expectations, and which vehicles the offer is appropriate for.

An oil change is scheduled maintenance where the engine oil is drained and replaced with fresh oil (and usually a new oil filter). It matters because oil lubricates moving parts and helps carry away heat and contaminants.

OEMs means original equipment manufacturers—the companies that build the vehicles and specify what fluids and service intervals they want. In this context, the hosts are saying some OEMs changed the oil type they recommend due to supply/price pressures.

The Strait of Hormuz is a key chokepoint in the Persian Gulf where a large share of the world’s oil shipments pass. Disruptions there can tighten global supply and push oil prices higher, which then affects service costs like oil changes.

In dealership fixed-ops context, retention means keeping customers coming back for repeat service (like future oil changes and maintenance). The hosts are discussing how to evaluate retention when oil costs and service pricing change.

Return on investment (ROI) is a way to measure whether spending money on something (like marketing or service offers) pays off. Here, they’re asking whether higher oil-change pricing or continued oil-change promotions still make financial sense.

Upsells are additional services or higher-priced options offered during a visit—commonly things like recommended maintenance beyond the basic oil change. The segment describes tracking how many customers start with a $50 oil-change offer and then buy extra items.

“RO” typically stands for “repair order,” which is the service ticket a customer’s vehicle gets when it’s brought in for work. A down “RO count” means fewer service tickets are being opened, even if the dealership’s gross profit is rising.

In dealership reporting, “gross” usually means gross profit dollars from sales and service, before subtracting many operating expenses. When the hosts say gross is increasing, they’re pointing to dealerships making more money per transaction or overall, even if customer counts are shifting.

“Video MPIs” refers to video Multi-Point Inspections: a technician records and documents the condition of multiple vehicle areas during a service inspection. It’s used to make findings more understandable to customers and can reduce back-and-forth by showing issues visually.

“Customer experience” in a dealership context means the end-to-end feeling a customer has during the service journey—how easy it is to understand issues, communicate status, and get taken care of. The host ties it to inspection technology and service offers that make the process smoother.

Open Lane is a provider of dealership fixed-operations technology and services. In this segment, the host credits Open Lane for supporting content related to improving the customer experience in service departments.

Bozard Ford is the dealership where the guests work. The segment uses it as the specific example for roles like fixed operations director and remote operations director.

A “remote operations director” is a leadership role that manages dealership operations from a distance rather than being on-site. In this context, the host is asking what the job does at Bozard Ford, implying it likely involves coordinating service processes, customer experience workflows, or support functions across locations.

A “mobile team” is a service operation where technicians perform work at the customer’s location instead of only inside the dealership’s shop. In this segment, it’s used to reduce interruptions to shop workflow by handling certain service jobs remotely.

“Shop capacity” is the maximum amount of work the dealership’s service department can handle at once, based on technician availability, bays, and scheduling. The hosts frame mobile service as a way to relieve capacity constraints by shifting certain jobs out of the main shop workflow.

“Remote vans” here refers to the dealership’s mobile service vehicles used to reach customers across a wider area. The discussion ties them to scaling the operation to nearly 50 units and managing service-area coverage.

“Fleet” refers to organizations that operate many vehicles (often for business use) and need recurring service across multiple locations. The segment connects fleet operations to why the dealership’s mobile service must cover a wider geography.

“Bowsard” is referenced as the dealership/organization running the mobile service strategy. In this context, it’s tied to selling cars across a wide area and supporting customers and fleet operations in multiple locations.

St. Augustine is used as an example of one location within a broader multi-location customer footprint. The hosts are illustrating how mobile service coverage must extend beyond a single city when fleet operations are distributed.

“Cost per RO” means the dealership’s cost to handle each RO (repair order). It’s a fixed-ops efficiency metric comparing how much it costs to process and complete repairs, often used to evaluate whether remote/mobile workflows are more or less efficient than in-store service.

RO stands for repair order, the document that authorizes and tracks the work a shop will perform on a specific vehicle. It’s central to service operations because it ties the customer’s request to labor, parts, approvals, and billing.

In dealership fixed-ops, “brick-and-mortar” means the traditional in-store service operation—customers come to the dealership’s service department. The term is used here to contrast with remote/mobile service workflows.

“Engine problems” refers to faults in the vehicle’s powerplant that typically require diagnostic time and specialized labor. In dealership fixed-ops strategy, these are often treated as higher-value repair categories compared with smaller convenience services.

“Transmission issues” are problems in the vehicle’s gear-changing system, which can range from shifting complaints to internal failures. These repairs are typically labor-intensive and can drive significant service revenue for a dealership.

Customer retention in dealership service means keeping the same customer engaged over time—so they return for future maintenance/repairs and larger jobs. The hosts connect mobile service to retention by improving convenience while still “tying back” to dealership visits for bigger repairs.

Automotive and diesel programs are vocational training tracks that teach students vehicle repair skills for both gasoline cars and diesel-powered vehicles. The segment uses them to explain how the dealership recruits and develops future technicians.

In a service context, “lifts” are vehicle hoists used to raise cars for inspection and repair. Installing lifts in training bays lets students practice real under-car work safely and efficiently.

A quick lane is a dealership service area focused on faster, standardized maintenance and light repairs (often with shorter turnaround times than the main service department). The speaker uses it as an example of where students end up early in their careers.

“Level one” here refers to an internal technician skill/experience tier used by the shop, typically tied to training, responsibilities, and progression. The speaker lists multiple levels to show how students advance through structured roles.

A “third party warranty” is coverage administered by a company other than the vehicle manufacturer or the dealership. In service operations, it affects how claims are submitted, approved, and paid, which can change advisor workflows and customer experience.

Porsche is referenced as part of a local Porsche Club chapter that supports future technicians through scholarships. While not a car model discussion here, it highlights how enthusiast communities can help build the technician pipeline.

“Rain camera” appears to refer to a specific on-site camera setup used during mobile service to capture the vehicle and/or inspection visuals. In this context, it’s being used as an alternative to a video MPI.

In this context, a GPS tool is being used as a connected-vehicle device that can communicate with the car. The host says it can pull diagnostic trouble codes and other data so the service department has visibility similar to what automakers (OEMs) do.

“Pull codes” refers to reading the car’s diagnostic trouble codes from its onboard computer. These codes indicate what system detected a fault (for example, emissions, sensors, or drivability issues), and they’re the starting point for troubleshooting.

In this context, “proactively” means using vehicle or customer data to start outreach before the customer contacts the dealership. The goal is to catch service needs early and reduce the back-and-forth that happens when a customer calls only after a problem appears.

Connected car technology is the set of systems that let a vehicle send and receive data over a cellular or Wi‑Fi connection. That data can be used to alert the dealer or owner about things like service needs or diagnostic trouble codes before the driver calls.

A check engine light is the dashboard warning that the car’s engine management system has detected a fault. With connected services, the vehicle can send the dealer diagnostic trouble information so the shop can identify the issue faster.