Fixed Ops Friday With Tully Williams, Dave Thomas, and Jim Sabino | Daily Dealer Live
About this episode
Tully Williams, Dave Thomas, and Jim Sabino join the discussion on how dealerships can adapt to tightening margins and changing market conditions. They emphasize the importance of fixed operations and utilizing data to enhance service drives for profitability. Key topics include the significance of customer retention over acquisition, the varying effectiveness of Customer Data Platforms (CDPs), and the potential of mobile service as a growth engine. The episode also highlights insights from NADA and strategies for balancing pricing in competitive markets.
Eagle Summit
"...ning in 2027. Speaking at the Wolf Research Auto Summit, CFO Sherry House said Ford is keeping the extra..."
The Eagle Summit is an older, small car that was made a long time ago. It's not very common now, but some people might talk about it when discussing cheap used cars.
The Eagle Summit was a compact car produced in the 1990s, known for its affordability and practicality. Although it is no longer in production, it is sometimes discussed in the context of budget-friendly used cars.
Super Duty
"...to rebuild F-150 and Super Duty truck volume"
The Super Duty is a line of heavy-duty trucks from Ford that can carry and tow much more than regular trucks. They are great for tough jobs.
The Ford Super Duty refers to a series of heavy-duty trucks that are designed for more demanding tasks than the standard F-150. These trucks are built for towing and hauling heavier loads.
Ford F150
"...to rebuild F-150 and Super Duty truck volume"
The F-150 is a popular pickup truck made by Ford. It's known for being tough and is often used for work and everyday driving.
The Ford F-150 is a full-size pickup truck that has been one of the best-selling vehicles in the United States for decades. It is known for its durability, performance, and versatility.
powertrain mix
"...adjusting its powertrain mix, increasing output of lower priced gasoline trims..."
Powertrain mix means the different types of engines and transmissions that a car company offers in their cars, like gas engines or electric motors.
Powertrain mix refers to the variety of engine and transmission options available in a vehicle lineup, which can include gasoline, diesel, hybrid, and electric powertrains.
dealership M&A
"...on the dealership M&A Front with deals happening in New York and Michigan..."
Dealership M&A means when car dealerships buy or merge with each other to grow and become bigger businesses.
Dealership M&A refers to mergers and acquisitions in the automotive dealership sector, where companies buy or merge with other dealerships to expand their operations.
Keeler Motor Car Company
"First up, Jesse Hoard of Keeler Motor Car Company and partner Open Road Capital..."
Keeler Motor Car Company is a group of car dealerships that sell different brands of cars and help customers with services.
Keeler Motor Car Company is a dealership group that sells various automotive brands, providing sales and service to customers.
Audi
"...purchased three dealerships representing Toyota, Lexus and Audi from New Country Motor Group..."
Audi is a car brand from Germany that makes luxury cars, known for their technology and performance.
Audi is a German automotive manufacturer known for its luxury vehicles, advanced technology, and performance-oriented models.
Lexus
"...purchased three dealerships representing Toyota, Lexus and Audi from New Country Motor Group..."
Lexus is a luxury car brand that is part of Toyota, making high-end vehicles that are very comfortable and well-designed.
Lexus is the luxury vehicle division of Toyota, known for its high-quality, comfortable, and well-equipped cars.
MSRP
"...saying regulations haven't been the main driver of rising MSRPs. Dealers know the real story..."
MSRP is the price that car makers suggest dealers sell their cars for. It's a starting point for how much you might pay for a new car.
MSRP stands for Manufacturer's Suggested Retail Price, which is the price that the manufacturer recommends a dealer sell a vehicle for. It's an important figure for consumers to understand as it serves as a baseline for negotiations and pricing expectations.
market markup
"...supply chain chaos, and market markups drove prices up 40 plus percent over the last decade."
Market markup is when dealers raise the price of a car above the suggested price because there are more buyers than available cars. This can make cars more expensive than expected.
Market markup refers to the increase in price that dealers add to the MSRP based on demand, scarcity, or other market factors. This can significantly affect the final purchase price of a vehicle.
Volvo
"You've got Volvo, and you've got Porsche, and you've got VW."
Volvo is a car brand from Sweden that makes safe and stylish cars, including SUVs and sedans.
Volvo is a Swedish automotive brand known for its focus on safety and Scandinavian design. The company produces a range of vehicles, including sedans, SUVs, and hybrids.
Volkswagen
"You've got Volvo, and you've got Porsche, and you've got VW."
Volkswagen, or VW, is a popular car brand from Germany that makes many types of cars, including the famous Beetle and Golf.
Volkswagen, often abbreviated as VW, is a German automaker known for producing a wide range of vehicles, including the iconic Beetle and the Golf. The brand focuses on practicality and affordability.
Porsche
"You've got Volvo, and you've got Porsche, and you've got VW."
Porsche is a high-end car brand from Germany, famous for making fast and luxurious sports cars like the 911.
Porsche is a German luxury and sports car manufacturer, famous for models like the 911 and the Cayenne. The brand is known for its performance-oriented vehicles and engineering excellence.
service retention
"Does service retention fit in those brands?"
Service retention is how well a car dealership keeps its customers coming back for service and repairs. If customers are happy, they are more likely to return.
Service retention refers to the ability of a dealership to keep customers returning for maintenance and repairs. High service retention rates indicate customer satisfaction and loyalty, which can significantly impact dealership profitability.
extended warranty
"...in the FNI box, right? Extended warranties. That is the key issue, right? It's number one."
An extended warranty is like extra insurance for your car that helps pay for repairs after the original warranty runs out. It can save you money if something goes wrong with your vehicle later on.
An extended warranty is a service contract that provides additional coverage for a vehicle beyond the standard warranty period. It can cover repairs and maintenance, offering peace of mind for vehicle owners against unexpected costs.
BF Goodrich KO2s
"...if you give me a fresh set of BF Goodrich KO2s, bit of a drive from Colorado. And of course, your response about in-market retention would be?"
BF Goodrich KO2s are a type of tire designed for driving on rough terrain. They are strong and can handle different weather conditions, which is why many people choose them for off-road vehicles.
BF Goodrich KO2s are all-terrain tires known for their durability and performance in various conditions, making them popular among off-road enthusiasts and truck owners.
vehicle service contract
"one maintenance is half a VSC, took my old pen from around 50 to 80 consistently, so I'm happy dealers happy and the customer is."
A vehicle service contract is like an insurance policy for your car that helps pay for repairs after the regular warranty ends. It can save you money if something goes wrong with your vehicle later on.
A vehicle service contract (VSC) is an agreement that covers certain repairs and services for a vehicle, similar to an extended warranty. It helps protect the owner from unexpected repair costs after the manufacturer's warranty expires.
FNI box
"And any comments on that as a strategy to get retention? I'm telling you, it starts in the FNI box, right?"
The FNI box is a part of a car dealership where they talk to customers about how to pay for the car and offer extra services like warranties. It's important for making sure customers are happy and the dealership makes money.
The FNI box, or Finance and Insurance box, is where car dealerships handle the financial aspects of a vehicle sale, including financing options and additional products like warranties and service contracts. It's crucial for maximizing dealership profits and customer satisfaction.
maintenance
"...Please buy the maintenance and extended warranty in-place. Because it helps me and helps you. Right?"
Maintenance is the regular care you give your car to keep it in good shape. This includes things like changing the oil and checking the brakes.
Maintenance refers to the routine services performed on a vehicle to keep it running smoothly and prevent breakdowns. This includes oil changes, tire rotations, and other scheduled services.
ATP
"And what it does, which is different than the ATP, which is $50,000, is we took the 10 most popular cars in the country, as well as the four most popular trucks."
ATP means Average Transaction Price, which is how much people usually pay for cars after any discounts. It helps understand car prices in the market.
ATP stands for Average Transaction Price, which is the average price paid for a vehicle after discounts and incentives. It provides insight into what consumers are actually paying for vehicles in the market.
Kia Soul
"...'s in that ATP is everything from G-wagons to Kia Souls, right? So, if it's a K-shape economy."
The Kia Soul is a small car that looks a bit different from most cars, but it has a lot of room inside. It's a fun choice for anyone who wants something practical and stylish.
The Kia Soul is a compact car known for its unique boxy design and spacious interior. It appeals to younger drivers and those looking for a fun, practical vehicle with good fuel economy.
Toyota Camry
"...what they are. RAV4, you know, the Toyota's, the Camry, Chevy Equinox. And we list it all on our site, ..."
The Toyota Camry is a popular car that many people buy because it's dependable and gets good gas mileage. It's a comfortable car for driving around town or on long trips.
The Toyota Camry is a mid-size sedan known for its reliability, comfort, and fuel efficiency. It has been one of the best-selling cars in the U.S. for decades, making it a significant player in the automotive market.
Chevrolet Equinox
".... RAV4, you know, the Toyota's, the Camry, Chevy Equinox. And we list it all on our site, so you can dig ..."
The Chevrolet Equinox is a small SUV that has lots of room inside for passengers and their stuff. It's a good option for families or anyone who needs a bit more space than a regular car.
The Chevrolet Equinox is a compact SUV that offers a spacious interior, advanced safety features, and a comfortable ride. It's a popular choice for families and those needing extra cargo space.
Toyota RAV4
"... look at those vehicles, you know what they are. RAV4, you know, the Toyota's, the Camry, Chevy Equinox..."
The Toyota RAV4 is a small SUV that offers a lot of space for people and their gear. It's a good vehicle for families or anyone who likes to go on adventures.
The Toyota RAV4 is a compact SUV that has gained popularity for its reliability, spaciousness, and fuel efficiency. It is often favored by families and outdoor enthusiasts for its versatility.
average transaction price
"But that price is $35,000 when you look at that average transaction of those vehicles. That's what the average Joe can expect to spend, right?"
Average transaction price is the usual amount people end up paying for a car, which might be less than the sticker price because of deals or negotiations.
The average transaction price refers to the typical amount that consumers actually pay for a vehicle, which can differ from the MSRP due to discounts, negotiations, and market demand.
Honda Crv
"yeah. You know, someone who wants a CRV or an Accord, whatever it is, it stops them in t..."
The Honda CR-V is a small SUV that is great for families because it has a lot of space and is very reliable. It's a good choice if you want a vehicle that can handle both daily driving and weekend trips.
The Honda CR-V is a compact crossover SUV known for its spacious interior, reliability, and strong resale value. It has consistently ranked high in safety and customer satisfaction ratings.
Chevrolet Silverado
"...because as I say, like people shopping for a Silverado aren't cross shopping a Civic."
The Chevrolet Silverado is a big truck that many people use for work or personal use. It's known for being tough and reliable.
The Chevrolet Silverado is a popular full-size pickup truck known for its durability and versatility. It is often used for both work and personal purposes, appealing to a wide range of buyers.
Honda Civic
"...'re going to get today a newer Accord or Camry or Civic or Corolla at a lower price. I mean, they advanc..."
The Honda Civic is a small car that many people choose because it saves on gas and is fun to drive. It's a great option for anyone looking for a reliable car for everyday use.
The Honda Civic is a compact car known for its fuel efficiency, sporty design, and reliability. It has a strong following among drivers looking for a practical yet fun-to-drive vehicle.
Toyota Corolla
"So, you're going to get today a newer Accord or Camry or Civic or Corolla at a lower price. I mean, they advanced so much."
The Toyota Corolla is a compact car that is very popular because it's affordable and gets good gas mileage. It's a smart choice for anyone looking for a reliable vehicle.
The Toyota Corolla is a compact sedan known for its reliability, affordability, and fuel efficiency. It is one of the best-selling cars worldwide due to its practicality.
Honda Accord
"... 20 years. So, you're going to get today a newer Accord or Camry or Civic or Corolla at a lower price. I..."
The Honda Accord is a popular car that many people like because it's roomy and drives well. It's a good option if you want a reliable car that can fit a lot of people and luggage.
The Honda Accord is a midsize sedan that has been praised for its performance, spacious interior, and advanced safety features. It has a long-standing reputation for reliability and is often recommended for families and commuters alike.
compact sedan
"Even a compact sedan, the technology and safety you get in them today, they're really remarkable."
A compact sedan is a small car with four doors that is easy to drive and park. It's a good option for people who want a car that is not too big but still has enough space inside.
A compact sedan is a smaller car that typically offers four doors and a trunk. They are designed for efficiency and practicality, making them popular among urban drivers.
compact SUVs
"The prices on even compact SUVs do increase a little bit more than inflation over time, especially as they became really popular."
Compact SUVs are smaller cars that are good for families and city driving. They have more space than regular cars but are easier to park and drive around town.
Compact SUVs are smaller sport utility vehicles that offer a balance between passenger space and fuel efficiency. They have gained popularity due to their versatility and practicality for urban driving.
aluminum prices
"And, you know, with tariffs, that's a whole other conversation, but aluminum prices are up 17%."
Aluminum prices are how much it costs to buy aluminum, which is a metal used to make car parts. When prices go up, it can make cars more expensive to build.
Aluminum prices refer to the cost of aluminum, a lightweight metal commonly used in automotive manufacturing for its strength-to-weight ratio. Fluctuations in aluminum prices can significantly impact vehicle production costs.
K-shaped economy
"...thinking about this K-shaped economy, thinking about the affordability survey that you've done..."
A K-shaped economy is when some parts of the economy do really well while others struggle. It's like a graph that looks like the letter 'K', showing different paths for different groups.
A K-shaped economy refers to a situation where different sectors of the economy recover at different rates, leading to a divergence in economic outcomes. Some sectors, like trucks, may thrive while others lag behind.
mobile service
"...Well, let's dive into you have a huge mobile service operation..."
Mobile service means that mechanics come to you to fix your car instead of you having to drive to a shop. This makes it easier for people to get their cars serviced without leaving home.
Mobile service refers to the practice of providing automotive repair and maintenance services at a customer's location rather than requiring them to visit a dealership or service center. This can enhance convenience for customers and improve service efficiency.
OEM
"...Ford, number one most recalled OEM last year, a ton of recall opportunities with that OEM..."
OEM means the original company that made your car. They also make the parts that go into your car, so when you need repairs, you can get parts from them.
OEM stands for Original Equipment Manufacturer, which refers to companies that produce parts and equipment that may be marketed by another manufacturer. In the automotive context, it typically refers to the car manufacturer itself, which provides parts and services for their vehicles.
Ford Explorer
"...nd that's going to somebody's house. They have an Explorer or an F-150 and you do a quick service, a works ..."
The Ford Explorer is a bigger SUV that can carry a lot of people and stuff. It's a good choice if you need a vehicle for family trips or outdoor adventures.
The Ford Explorer is a midsize SUV that offers a blend of performance, spaciousness, and advanced technology. It's popular among families and those who need a versatile vehicle for both city and off-road driving.
safety recall
"...if it's safety recall, we're not going..."
A safety recall is when a car has a problem that could make it unsafe to drive. The car company will fix it for free to keep everyone safe.
A safety recall is a specific type of recall issued when a vehicle has a defect that poses a risk to the safety of the driver, passengers, or others on the road. Manufacturers are required to fix these issues at no cost to the owner.
Request an Explanation
Heard something you'd like explained? We'll add it to this episode.
Sign in to request explanations for terms you heard.
Want to learn more?
Browse our glossary for plain-English explanations of automotive terms, jargon, and concepts.
Help improve this episode
See something that's not quite right? Our annotations are AI-generated and can sometimes miss the mark. Click the flag icon on any annotation to suggest a correction.