Stellantis is a big car company that owns multiple brands. Here, they’re responding publicly to rumors about which Alfa Romeo models will be sold in the US.
The Alfa Romeo Stelvio is Alfa Romeo’s SUV. The hosts are discussing whether it will continue in the US and what the company says about future updates.
A product pipeline is basically a company’s roadmap of what new cars or updates it plans to bring out. Here, it’s being used to reassure dealers that future versions are still coming.
EVs are electric vehicles powered primarily by electric motors and batteries instead of gasoline or diesel engines. The segment says next-gen Alfa Romeo plans were delayed because EV versions would require a full redesign.
Santo Facili is identified here as the Alfa Romeo CEO. The segment attributes to him an acknowledgment that next-gen versions were delayed due to EV redesign requirements.
The Dodge Ram is a pickup truck made for hauling and everyday driving. It’s a well-known truck brand, so it shows up often when people talk about how different vehicle brands are priced or marketed.
Antonio Felosa is presented as the Stellantis CEO. The segment says he publicly prioritized certain brands—Jeep, Ram, and Fiat—because of their volume and profitability.
Fiat is a Stellantis-owned brand associated with smaller cars and city-friendly vehicles. It’s included in the segment’s list of brands Stellantis says matter most due to volume and profitability.
Jeep is a Stellantis-owned brand known for SUVs and off-road-focused vehicles. It’s mentioned as one of the brands Stellantis CEO Antonio Felosa says is especially important due to sales volume and profit.
The BMW 5 Series is a luxury car that comes in different versions, including some that can be plugged in to charge. The podcast brings it up because BMW is recalling a set of vehicles, including certain 5 Series models, as part of a fix for a problem.
This is a BMW plug-in hybrid with all-wheel drive. BMW is recalling it because a starting-related electrical relay can corrode, overheat, and create a fire risk.
A short circuit is an unintended electrical connection that allows current to flow where it shouldn’t. In a recall context, a short circuit can cause overheating and increase the risk of a fire.
NHTSA is the U.S. government agency that handles vehicle safety and recalls. When they’re involved, it usually means the recall is officially tracked and required.
The Honda Pilot is a family SUV. The recall issue mentioned is about a coating problem that can lead to faster corrosion, especially where roads are salted in winter.
The Honda Ridgeline is a pickup truck. The recall issue described is about a coating problem that can lead to faster rust/corrosion in winter road-salt areas.
Manufacturing coatings are protective layers put on during building. If they’re wrong or incomplete, the car can rust faster—especially in places where winter road salt is used.
Road salt helps melt ice, but it can also make cars rust faster. That’s why winter areas often see more corrosion problems.
Concept
dealer survey
A dealer survey is a poll of car dealers. In this case, dealers are saying the timing of getting a deal funded is really important.
Term
flooring expense
Flooring expense is the dealer’s cost of holding a car deal before the financing is fully approved and paid out. If funding takes longer, those costs can grow.
Term
verification of income
Verification of income means the lender checks that the buyer’s pay and employment details are real and sufficient. If that check fails or takes longer, the financing can fall apart.
Term
residency
Residency means where the buyer lives. Lenders may require proof of address, and if it doesn’t match or can’t be verified, financing can get delayed or denied.
The Porsche 911 is Porsche’s famous sports car. It’s known for its classic shape and a special engine layout. Here, they’re talking about buying a 2016 911 at an auction.
A “sales process” is just the dealership’s step-by-step method for selling a car. Here, they’re saying they made it consistent so it works the same way in multiple locations.
Brand
Ford signature 2.0
“Ford signature 2.0” is a specific Ford dealership setup or program. The host is saying their improved car-selling method worked there first, then they expanded it to other brands.
They’re using their Hyundai dealership as an example. They say the customer types were different there, and even older customers still liked the tech-driven buying experience.
“Fully transparent” here means the dealership shows you what’s happening and what it costs, step by step. The idea is that nothing important is hidden from you.
“One price” means the car has a set price that everyone pays. Instead of negotiating back and forth, the dealership tries to make the process simpler and more predictable.
“Customer-led” means the buyer is more in control of the steps and timing. The dealership provides support, but the customer can guide themselves through the process.
“Top-down buy-in” means the leaders at the dealership have to agree with the new plan. If they don’t, it’s harder for everyone else to stick to the process.
CSI is a score that measures how happy customers are with their dealership experience. Dealerships watch it because it affects customer reviews and future sales.
Term
MPS
MPS is another internal score the dealership uses to track how well their process is going. The host is saying it improved along with customer satisfaction.
Transaction time is the total time it takes to complete a vehicle sale from start to finish. Dealerships try to reduce it because faster, smoother deals improve customer experience and can increase throughput (more deals per day).
This means one salesperson handles most of the deal instead of handing you off to different specialists. The host is saying that can sometimes reduce the dealership’s financing-related profit.
Term
traditional finance setup
A traditional finance setup typically means the customer is transferred from the salesperson to a finance manager (F&I) to structure the loan and present insurance and warranty products. The speaker contrasts this with single point of contact workflows.
F&I revenue is the money a dealership earns from financing and add-on products. The host is saying the sales process can cause dealers to lose some of that income.
“Sticker” is the price printed on the car’s window sticker. The host is saying you can sell at that listed price, but still be honest about fees and what your payment will be.
The autify process is a digital step in the buying flow where you enter your info online. Then the system helps generate financing options so you don’t have to negotiate everything from scratch.
Lender options are different financing offers from companies that would lend you the money. Instead of negotiating one rate, you compare a few choices.
Term
PTI DTI
PTI/DTI are numbers lenders use to decide if you can afford the monthly payment. They’re based on how much debt you already have compared to your income.
In financing, the rate is the interest rate charged on the loan. A lower rate can reduce the monthly payment and the total cost of borrowing, which is why customers often focus negotiation on rate.
Ceramic paint is a protective coating that’s applied to the car’s paint. It’s meant to help the paint resist damage and stay looking better.
Term
paint and fab
“Paint and fab” sounds like an add-on package that’s meant to protect the car’s exterior. They’re tracking how many customers buy it and how that number changes.
Here, the iPad is being used as a digital sales tool—likely for presenting options, disclosures, and add-on selections during the dealership process. The point is that customers can interact with the process directly rather than relying only on a salesperson.
The finance manager is the person at the dealership who handles the paperwork and the extra add-ons tied to the loan. In this discussion, they come back after the customer has already chosen something.
Gap insurance helps pay the difference if your car is totaled or stolen and the insurance payout doesn’t cover what you still owe on the loan. It’s most useful when you owe more than the car is worth early on.
Negative equity is when your loan balance is higher than what the car is worth. So if you try to sell or trade it, you’d still owe money after the sale.
“Follow up service” is what happens after you buy or after you call—like getting help with questions or problems. It’s basically the dealership’s way of making sure you’re taken care of after the first interaction.
An “800 number” is a toll-free phone line, often answered by a call center. The point here is whether you get real help from local people versus someone who may not be familiar with your dealership.
In dealership operations, “accountability” refers to the internal responsibility to ensure every step of the sales process is completed correctly—like having trade-in numbers entered and systems updated. The speaker frames it as what prevents mistakes and helps the team spot process “holes.”
They’re talking about a newer Ford dealership setup (“Ford 2.0 facility”). The discussion is about whether the showroom layout works well for customers—like how people move around during a visit.
A “service waiting area” is where customers wait during car service. They’re using it as an example of how this showroom is designed to change how people move and interact.
They’re talking about how dealerships design the customer experience. It’s about making the space feel welcoming and easy to move through, not stressful or awkward.
An auto body facility is where cars get repaired after damage, like collision work. The speaker is listing the different types of businesses in their group.
Preston Auto Group is the company that owns and runs multiple car-related businesses. The host is talking about how they’re applying the same customer experience ideas across different locations.
CDJR is a combined way dealers talk about several related car brands: Chrysler, Dodge, Jeep, and Ram. The speaker is noting how long those brands have been part of their dealership rollout.
The FTC is a U.S. government agency that helps protect consumers. A “letter” here is an official warning or guidance that can affect how car dealers advertise prices and fees.
In this context, “fees” means the additional charges dealers add to the advertised price (beyond government taxes and fees). The segment frames the FTC concern as whether those fees are included transparently in the advertised total.
Title and license are government charges for paperwork and registration. In the FTC guidance being discussed, these are treated differently from dealer-added fees.
The FTC’s guidance refers to the Federal Trade Commission’s interpretations and recommended compliance approach for consumer-protection rules. The segment frames it as a benchmark that states are trying to align with when their own laws differ.
The CARS Act is a federal auto-dealer law that was meant to set rules for how dealers handle pricing and disclosures. The discussion says it was overturned, so states have been filling in the gaps in different ways.
Concept
Supreme Court level
“Supreme Court level” here means the law’s validity was decided by the U.S. Supreme Court, which can overturn or limit how a federal rule applies. That’s why the segment describes the CARS Act as being in a “murky middle” between federal guidance and state enforcement.
Concept
murky middle
“Murky middle” describes a legal gray area where enforcement expectations aren’t fully settled. The host suggests the FTC may be pointing dealers toward compliance, but the rule isn’t clearly codified everywhere, so states handle it differently.
Pricing transparency is when a dealer clearly shows the real total price and any extra fees upfront. The goal is that shoppers don’t get surprised later by hidden add-ons.
The three-day right to cancel means a buyer may be able to undo the deal within three days. It’s a rule that dealers have to plan for, especially in California.
It’s the price the dealer puts out in public ads. The key idea is that it should be the real price you can expect to pay, not a number that only applies if you buy extra stuff or meet hidden conditions.
These are companies that help dealerships get customers through online channels. They often have rules about how dealerships should advertise so the leads they send are legitimate and compliant.
It means the platform can make your ads show up less (or not as prominently) if you don’t follow their rules. That can reduce how many customers contact you.
The FTC is a U.S. consumer-protection agency. When they put out guidance about ads, it can force car dealers to change how they advertise prices so customers aren’t misled.
Here, “compliant” means the dealer’s ads and pricing follow the rules. If they don’t, they risk being penalized by regulators or by the ad/lead platforms.
A written FAQ is an official document that answers common questions about the rules. It helps businesses understand exactly what they’re supposed to do.
Concept
NAVA call
This refers to an industry meeting hosted by an automotive marketing group. The speaker is saying they were promised a specific written update during one of those calls.
Concept
two days from hitting your lot
They’re talking about a rule that says you shouldn’t advertise a car until it’s been physically at the dealership for a couple days. That can be hard when new cars arrive unpredictably.
These are cars that are already on the way to the dealership, but you can’t go see them in person yet. Because they’re not here yet, dealers may not want to fully commit to a final price or details.
Compliance means following the rules the government requires. In this case, it’s about making sure dealer advertising (including social posts) includes the right information.
Here, social media means posts on sites like Facebook or TikTok. The important part is that regulators may treat those posts like ads, so dealers still have to follow disclosure rules.
Required disclosures are the legally required details that must be shown in an ad. If a dealer leaves them out (even in a social media post), it can create legal trouble.
Term
REG-Z, REG-M
REG-Z and REG-M are rules that require certain information to be shown when advertising financing or credit terms. If those required details are missing from a post, it can be considered a violation.
KPIs are numbers or goals a business uses to judge performance. The speaker is saying that compliance oversight should be part of how dealers measure and manage what salespeople post.
A third party is an outside reviewer, like a consultant. The goal is to double-check the dealership’s ads and social posts so the dealership isn’t stuck cleaning up problems later.
LIVE
We're doing better as a result of social media presence.
It doesn't do those three things, then it's on the chopping block.
It's in return on investment discussion.
Hey, everybody, welcome back to another episode of The Daily Dealer Live.
I'm your host, Sam Dark.
And thanks for choosing to be here with us on this Wednesday, July 15th, mid-month.
First up, a programming note.
So Friday, I'm headed to Boulder, Colorado for Boulder 26, a CDG experience where I'll
be live streaming Friday's Daily Dealer Live show atop a mountain with three special guests.
We've got Brian Benstock.
We've got Colleen Lundy and one other TV announced.
That show will not run at 1 p.m. Eastern, but at 3 p.m.
So hang out an extra couple of hours.
You watch it mid-afternoon, which is also, by the way, 1 p.m. mountain because that's
where all be.
As requested, I've bought these shoes, climbing shoes.
If anyone knows how to use them, please give some advice.
I was told they must be broken in, as you can tell.
I have not broken them in yet.
And we've got some nifty swag coming from the CDG crew.
Boulder 26, this elite hiking bag.
What are you going to do with a bunch of cardulars climbing a mountain?
The flat irons will tune in Wednesday, 3 p.m.
Eastern, 1 p.m. mountain to find out.
Excited for those elite conversations.
But you know, that's Friday.
Let's talk about today.
First up today's show, we've got a lot coming at you.
Jay Law, head of partnerships, a car dealership guy, joins to talk about the big digital dealer
launch with CDG.
Trust me, you don't want to miss that and what he has cooking.
Then we're bringing back a familiar face, JB Burnett, executive manager at Preston Automotive
Group out of Millsboro, Delaware.
He's back with us for the first time since January with Ford, Chevy, Toad, and Hyundai,
and more, plus everything from pre-owned to power sports.
You know, there's a lot to dig into.
After that, Robert Eben, director of legal affairs at KPI, stops by for a compliance
check-in, top of mind right now in all of automotive in 2026 after the FTC letter that
went out earlier this year.
It's not just California's Cars Act this time.
Robert's breaking down the latest regulatory moves out of Massachusetts, New York, Connecticut
that dealers everywhere need on their radar and closing out the hour today.
Again, did I tell you, action-packed.
Jeff Pister, executive manager at Honda, Marysville, and Ohio joins to share what's driving growth
across his stores from Honda to Acura to motorsports.
We've got a packed hour, folks, but before we get to our guests, let's dive into today's
automotive headlines.
Leading off with the news today, a new independent dealer financing study commissioned by Agora
Data finds that funding speed is one of the most consequential power points in the dealer
lender relationship.
Of the 414 dealer surveyed, roughly two-thirds selling more than 25 cars a month in the subprime
space, nearly a quarter of those identified fast funding as critical to operations.
As a personal aside, the fact 100% didn't identify it as critical to operations is a problem.
Speed to funding is crucial.
Back to the story, Agora EVP Jeremy Beck, a former dealership GM, says most lenders underestimate
the downstream impact every day of delayed funding, adds floor plan interest, squeezes
cash flow and blocks dealers from replacing sold inventory.
The survey also flagged inconsistent documentation requirements as a recurring bottleneck, particularly
around proof of residency and income verification.
Agora has addressed both through a GPS collateral partnership with pastime and proprietary AI
tools that use utility and cell phone payment histories to verify income in lieu of traditional
steps.
And as an aside, I could not applaud this more.
In 2026, we need better tools, more tools to validate some of those steps that would
prevent funding and or would help catch fraud earlier on in the process.
So props to them for finding unique and interesting ways to deliver on that.
And again, the fact that only 25% of dealers set fast fundings a big deal, it should be
100.
But back to the news.
Next up today, Kerrigan Advisors, fourth annual OEM survey drawing from roughly 150
manufacturer executives across virtually every non-Chinese OEM, shows the industry trending
toward fewer dealers, steady buy-sell activity and rising AI optimism.
Nearly half of executives expect smaller dealer networks in five years.
That's up 12 percentage points from last year, while 88% expect buy-sell volume to hold
or increase over the next 12 months.
On tariffs, nearly 60% expect OEMs to absorb the majority of costs, with only 5% projecting
that burden falling on dealers.
Executives predict EVs will represent 21% of sales within five years.
For context, that's more than double today's share and 59% expect AI to increase dealership
profits over that same window.
Kerrigan's advice to operators?
Well, it's direct.
Focus on growing revenue and market share at the rooftop level while pursuing scale within
your market, because consolidation, well, it shows no signs of slowing down.
Moving on today, Stellantis is pushing back on reports that Alfa Romeo plans to drop the
Julia and Stelvio from its US lineup, issuing a statement this week confirming that future
evolutions of both models remain in the product pipeline.
The denial came after Carbuzz and Reuters reported on an internal presentation, where
replacement for those two models, well, they were absent.
And Reuters cited sources saying the brand was, quote, still assessing the future of
its larger vehicles.
Alfa Romeo CEO Santo Facili acknowledged in January that next-gen versions were delayed
after the automaker scrap plans to launch them as EVs requiring a full redesign.
The uncertainty isn't happening in a vacuum.
Alfa Romeo US sales fell 32% in Q226 and Stellantis CEO Antonio Felosa has publicly
identified Jeep, Ram and Pujo, Pujo and Fiat as the brands that quote really matter due
to their volume and profitability.
Stellantis' statement offers some near-term reassurance for Alfa Romeo dealers, but the
combination of delayed product, weak sales, and explicit prioritization of other brands
means this one warrants continued attention and we here at CDG will keep tracking that
story and bring you updates as they happen.
To wrap up the news today, BMW is recalling 29,000 vehicles including the 530E XDrive,
740LE XDrive, and select iPerformance models after determining that a corroded engine starter
relay could overheat short circuit and create a fire risk.
BMW dealers will replace the relay free of charge per NHTSA and it's the same root cause
behind last month's park outside recall covering 200,000 BMW vehicles across seven modern lines.
Separately, NHTSA has received a petition to investigate more than 800,000 Honda Odyssey
minivans over claims that airbags could deploy inadvertently while the vehicle is in motion.
Uh-oh.
By the way, you do not want inadvertent airbag going off in a minivan.
No remedy is defined back to the story as yet as that investigation while it's in its early stages.
Honda dealers should note that a June recall covering 880,000 pilot, passport,
ridgeline, and accurate MDX vehicles remains open tied to improper manufacturing coatings,
accelerating subprime corrosion in cold weather road salt states, which Michigan and the upper
Midwest includes that situation and issue.
Alright, for the full picture on open recalls, check the CDG Recall Tracker and that folks
is a wrap on today's automotive industry headlines.
Yeah, I go back to that story.
The fact that 100% of dealer survey, don't say funding time is absolutely crucial in automotive,
that's a problem because it does increase your flooring expense.
It increases the potential problems down the road.
You know, you have a deal that holds out two weeks or two and a half weeks to get funded
and then somebody pops up and says, hey, we have an issue with verification of income
or residency or anything else.
Things become challenging the longer and the older they get.
So my vote, it's for 100%.
Turning to the, turning to our chat as a reminder, we're streaming live across all CDG
social media platforms.
Post your comments into the chat.
We'll bring you into today's show.
Let's grow Rev Ops as love the mountain climbing image and Dan C, a common poster on this show,
says, Sam, you're a climbing repelling or both on Friday on belay, a great team building event
for sure.
And you know what?
I have no idea the full answer to that, but our next guest does with a little bit of an update.
First up today, we turn to an item of interest from Cardiola Ship Guy.
For that, we bring Jay Lai into the show, head of partnerships, Cardiola Ship Guy.
Welcome to the show.
Hey, thanks for having me, buddy.
Jay, what is it?
Are we climbing?
Are we repelling?
Are we doing both?
I know you need to, you need to break in your climbing shoes.
I am actually staring at the Flatirons right now in Boulder, because I'm trying to break
in my 45 year old body so that I can, I can manage the climb.
So we are, we are climbing some of the dealers because, you know, it's exciting because we
have literally 25 of the top dealer, private dealer owners, group owners in the country
coming to join us for our first cdg experience.
And we're listening to some world-class speakers.
We're going to have some great kind of bonding over campfire and dinners, but we're being
pushed by some professional climbers to take different, different paths up the Flatirons here.
So we will be climbing.
The only other activity may be helicoptering us out if we get stranded.
So is that included with the experience?
That is, I think it's part of the deal.
Yeah, listen, my job is to make sure you get down off the mountain so that we can go live on
Friday for the show.
Well, to our audience, make sure you join us again, 3pm Eastern, 1pm Mountain.
We will be broadcasting via Starlink on the mountaintop and we'll give you the take.
What, what is this experience?
Why is it great?
Why do we focus on tough things and automotive and what do we learn from each other in the
experience?
But Jay, you're not here to talk just about the Boulder experience.
You're already there.
I'll head that way shortly.
But you're here to talk about digital dealer and what Cardiola Ship Guy has going with that
event.
What's up with it?
Yeah.
So I think, you know, the exciting headline is that Cardiola Ship Guy is getting into the
conference expo show space.
And it's something that we've looked at as a team and Yosie and I specifically for about two years.
And just kind of realize that the industry doesn't need more shows.
Another show to go to, jump on a plane, stay in a hotel, be away from the dealerships.
And digital dealers is we looked at a lot of different conferences and we just through the
conversations with them, they're what they're trying to build the show into the value they're
trying to provide for dealers.
We decided that, you know, they were a perfect partner for us.
And yeah, about a year and a half in the works.
And this year where we, you know, announced the partnership where we're working kind of,
you know, hand in hand with them to provide as much value as possible.
So when you think about the experience of digital dealer, how does Cardiola Ship Guy's
investment or involvement with this event, how does it change the event to an average
attendee?
Yeah, I think, you know, the same reason why our newsletter, our live show here,
our podcast or, you know, as valuable as they are is that we've got our finger on the pulse
with what's going on, you know, we get to work with great dealers, talk to dealers every day,
climb mountains with dealers all the time.
And it just allows us to say, hey, what's really going on?
What topics do we need to cover?
What kind of vendors and solutions do we need to need to have on display and exhibit at the show?
And digital dealer has been amazing partners.
They're really letting us kind of help shape and design the show for this year and hopefully for
future years to come.
So this year's event, September 22nd to 23rd, happening just outside of Detroit,
Michigan and Highland Park.
And by the way, we get to be there delivering a keynote and being engaged and involved and
even putting Daily Dealer Live on live in Digital Dealer J.
Yeah, we're excited for it.
Like you mentioned, you know, you yourself, Sam, I always say the dark side of the moon,
but you're the dark side of the mountain this week, D.O.C.
Levy, the car dealership guy and Glenn Lundy, 800% club is put on a unforgettable keynote.
So really, really excited about that.
And then we've been able to help select and choose some of the dealers for the speaking sessions.
I'm excited about their AI hackathon, which is something that's been great over the years.
So really excited for the next edition of that.
And I think the timing of the show is pretty important because I think that late September
is great because you can go, if you learn something from some of the dealer speakers,
if you see a new solution on the Expo floor that you can implement it and hit the ground
running January 1st.
And I think that that's a big value add for the show and for the timing.
So again, one of the reasons we partnered.
Yeah. Well, as we get closer to the event, we're going to be talking about it a lot.
I know there's also some codes that fans of a car dealership guy can get to register.
You can register early, you can register now.
And Jay, we got a bunch of our audience in the chat commenting.
So Dan, I didn't do it and says, Dan, he comes in says, Yossi,
I hope you have your climbing shoes to keep up with Sam's green flashy ones.
We need to find out.
Maybe Yossi will come into the chat and give us a take on whether or not he's got his
shoes. Yossi himself comes in with three strong emojis.
So we know Yossi is watching the show today and let's grow Rev Ops.
Says, hashtag, let's grow.
See you in Detroit.
And then we've got a bunch of our audience coming in saying hello,
including Lauren Klein, who says, Jay, and this is true,
CDG is disrupting automotive for good and good capital letters.
Igor Kay comes in says hello to everybody, including automotive retired guy.
Well, Jay, look forward to seeing you there in Boulder spending a couple days
learning, growing and climbing something.
So, you know, what's your final advice for me?
How do we break in these shoes?
I mean, listen, you got to wear them.
You got to wear them.
So you're going to be at the airport on the plane at the hotel
wearing your climbing shoes.
But that's not a bad idea.
I could actually just wear them on the airplane.
So if anybody sees me on the plane, I will have these.
It's a statement.
You're making a statement.
I like it.
So, yeah, no, I'm excited for it.
Safe travels to you and all the dealers to all the thousands of employees that these
dealers employ will make sure they get home safely and and and for better,
better than worse.
That's the plan there.
So no helicopter rides.
Jay Law, partnerships, car dealership guy.
Thanks for being on to share the news about CDG's involvement on digital dealer
and then what lies ahead this weekend at the first CDG Boulder, Colorado retreat.
Jay Law, thank you.
Thanks, Sam.
So fun news, as you can see.
And again, social media is a light with comments.
Eager K is talking about he bought two awesome Porsche 911s today at auction 2016
911 Rand and a 2024 911 ST and and Chad Staples comes in and says, hey, my guy, Jay.
So we'll have more about the retreat again on Friday.
And you'll probably see a lot of pictures coming out the retreat as well.
Let's dive into our first guest today on this Wednesday, JB Burnett, executive manager,
Preston automotive group.
JB, welcome back to the show.
Sam, thanks for having me as always.
Thanks for being here.
Hey, do you have any climbing advice for us, Jay?
You know, I was sitting here listening to this about it.
And I'm just picturing, you know, a bunch of bunch of dealers and yourselves.
Right.
And hopefully we don't have any helicopter rides, but I can't tell you I've ever climbed
a mountain, but I would love to see the green shoes with the suit.
I think that's, you may see this in the airport because again,
these things are not flexi.
And if they have to be broken in before the event starts, I, I may be, I may be a little
bit in trouble.
So, but JB, we're pumped to have you back.
You were last on with us January of 2026.
Before we get into some of the follow up items from your last appearance,
how is business this July, 2026, JB?
So I tell you, leading up to July, I don't know that we that any of us really had the
May and June that we were really expecting to have.
And, and this season didn't really kick off the way that we thought it was.
But, but so far, I mean, the first half, we're at the halfway mark right now with July.
And the first half of July has been absolutely gangbanger.
I mean, we, all the stores are performing, you know, to remind you, I got a Chrysler
Dodge D'Bram, I have Hyundai, I have Lincoln, and I have the Ford signature 2.0 store.
And so, so watching all these stores really competing at the same level across the campus
all month long has been really, really fun to watch.
So let's start with that for 2.0 facilities.
One of the things you introduced us to during your last appearance was
this auto-fi process where all your salespeople, managers, everybody
has an iPad.
They can share pricing and they can walk a customer very
transparently through the process, start to finish.
How's that process been since you launched it back in January earlier this year?
So I think anytime you implement a big change like that,
because it's a structural change to how we're doing business, right?
And there's always going to be some bumps and some hiccups and reforming processes
and getting buy-in and having the guests understand what we're doing because it's
so different than the experience that they've had at any other
car dealership that they've been to.
So now that we've really mastered the process and the sales process and what that looks like,
I was able to scale from my Ford signature 2.0 store to my CDGR store and to my Hyundai store.
And then watching each of the demographics are a little bit different across those brands.
So watching how my Hyundai store, for example, is a lot older, very good credit demographic.
So what we're seeing with that is even the technology has not scared that older clientele.
Everybody's really taken to it because it allows them to really feel like they're driving,
but at the end of the day, we still control the variables that we need to control.
Yeah, yeah.
So you decide to expand that process to other stores, start first at Ford,
now you've got any other franchises.
It is a different process because it is fully transparent.
Customer can basically walk themselves through it, start to finish.
What challenges did you encounter with it?
What advice would you give to other people that maybe you're looking to duplicate it, right?
It's essentially one price and it's customer-led with the leadership team supporting it.
What lessons have you learned in the process of implementing it that others could learn from JB?
So I think the biggest thing, and this is with almost anything, but everything starts from the
leadership down, right? So you have to have top-down buy-in in making sure that we're all
running the same direction, we all have the same goals. But then you're always going to have that
stray that just keeps trying to break the process or whatever, and it's just staying consistent.
When you're really reshaping how automotive is transacted, you have to have some kind of
accountability to keep pushing down that path, because naturally the same thing we've done
for the last 50 years is always going to try to creep its way back in, and we're always going to
try to find those shortcuts. But the bottom line, as long as we keep pushing and hold the line on
what this looks like, we've already found that our CSI and our MPS has gone through the roof,
our transaction time has probably been cut in half, if not better. You know, all of the
measurables, the gross has increased, the back ends have increased, like everything that I can
measure is working. It's just a matter of teaching our guests now what the future of automotive feels
like. Yeah. So JB, one of our viewers comes into the chat, let's grow Rev Ops says love auto FI.
He's asking, do you operate a single point of contact process?
So to answer that, I've thought about it, I've looked at it, and I don't know that I have a
place for that. I've met several other dealers that have gone down that route with auto FI and then
have maybe decided to go back to a more traditional finance setup. I think that's really where the
big differentiator is, is maximizing the finance revenue on those deals. So when you go single
point of contact traditionally, I think all of us have seen when it happens, a lot of times you lose
that FNI revenue. And so what we found in a couple of those cases is that in doing it with still an
FNI person, you're still capturing that, but you're able to actually pick up more on the front.
Interesting. So last time you're on, you talked about how grosses went from about 1700 bucks
to as high as 2500 front end and 16 to 2100 plus an FNI without changing any of the people. It's
upward trend held. Do you continue to increase both front and back end grosses with this process?
I think we leveled out at the Ford store, but leveled out in that stronger area on both FNI
and on the front. And what we're seeing is not a gross recession in any way, shape, or form. Now,
we've had some interesting months where we've tried to have dig in and make deals, and sometimes
that'll affect your overall numbers. But through the process, overall, and you put, you touched on
one price, we're not necessarily one price. We're just transparent. Okay. And that's, that's the one
thing that I always tell people like transparency doesn't mean the race to the bottom. I can be
transparent and sell you something at sticker. As long as I show you, I'm selling it at sticker,
what your fees are, and what your payment is. So, so how do you, because I was going to ask
about that, you've got some Williams to do stair step and pricing can change based on how aggressive
you want to be mid month. By handing a customer an iPad and having them kind of self navigate
through the process, what does negotiation look like if it's not for, one price?
And if it's not a single point of contact, how do you negotiate in that atmosphere of here's an iPad,
work your own deal? The biggest part of it, I think is the communication side. So when your sales
associate ends up with a guest, and they're going to qualify that guest, they're going to know if
they've been to 15 other stores, or if they've been online shopping, or if they have three
different numbers on their trade, they're going to know all that stuff rather quickly.
And so before we get into numbers, we still do the rest of the process, we still do a demo drive
and qualify and all of those things. And so while we're doing that stuff, it's so important that
the salesperson touches the desk and explains, Hey, this is what I got. And the sales manager,
while they're doing the demo drive can go ahead and they can alter any of the numbers,
they can put it to MSRP, they can do, you know, hold back on the trade, they can do any of those
things. But it's just important that it's known upfront as opposed to later. And then what we
find is the negotiation process is actually much smaller, much less involved, if it happens at all.
A lot of times what they're seeing on the screen, they believe a lot more than what we've told them
over the years, what we showed them on a four square. But I think the biggest thing that we're
seeing is when they submit themselves through the autify process, and they get they get three lender
options back as long as they qualify for PTI DTI and credit score, right? So as those options come
back, they're looking at it and it's almost like you applied for your credit union, right? You
applied, you put your own information in, they shot you back a rate, you're not calling your
credit union saying, Hey, can you, you're not negotiating it? No, you're taking it and you're
saying, Oh, okay, yeah, I guess that's the best I'm gonna get. And so we're finding that they're
arguing less on rate, they're arguing less on trade. And when the, and as long as you're qualifying
the price properly, if they came in off the internet, I'm not gonna, I'm not gonna go to MSRP,
I'm gonna give them the internet price. I don't need to create friction where it doesn't need to
be friction. But if they're just looking at cars, we're good. So last time you were on,
you were talking how your Preston for life pen pen had dropped or had raised from 27 to 42%.
And then your paint and paint and fab, your ceramic paint had doubled in that first quarter.
Are the numbers still climbing? Or have you kind of reached a plateau in those? And what would
you attribute that doubling of paint and fabric pen, in particular to, as it relates to this
process? Is it something about having something on the iPad? Is it something about customer kind
of self navigating with a finance manager still creating that value? What's the secret sauce
there, JB? So there's a, there's a section of the process that they go through. That's the
protect section. And you can put whatever you want in there. Me personally, back when we first
talked, I only had our Preston for life that I was measuring, I was measuring our, our penetration,
our paint and fab. Since then, because I saw those increases and they have leveled up to
answer your question, but, but I actually ended up adding gap insurance as well and saw an uptick
in that. Because that's one of those things that it really isn't a hard sell most of the time. Most
people know what gap is by now and they know that they don't have any money down. They're
probably going to want gap or they have negative equity. They're going to want gap. And so now
they're just going in and clicking that themselves. In worst case, at least they've seen it and the
finance manager comes back. It's a second touch. Yeah. Yeah. Yeah. It's so fascinating. You know,
one of our stores just started on this process. I won't report the results yet because we're
still in that initial kickoff phase, but, but, but it is an interesting kind of change. And I
think training has got to be crucial in it. Who has helped support you in the training side? And
then what, what learnings have you walked away with to make sure this new type of a process
works on the training side? Because I think if you approach it wrong, either with sales people at
the desk or an FNI, sales people and the customer get the wrong idea about how it wins for sure
process. Yeah. I mean, all of us super supportive on, on the training side. That's one of the things
that I think with a lot of vendors that we look at in this industry, I think one of the things we
don't necessarily put a lot of weight into that we really should is what that follow up service
looks like. What that down the road, if I have a question and as somebody to answer the phone,
or am I going to call it 800 number and talk to somebody that doesn't even live here, you know
what I mean? But I have, I have cell phone numbers, the people that I know can get and help get me
answers, help change things, help fix things, whatever the case may be. And so that supports
nice. But then once, once they come in the store, they build the process and the management team
learns it. I mean, really it comes from us holding that accountability every single time we do a
deal. And you'll have, you will have sales people, no matter how long we've done it, I still have
sales people at the Ford store that'll come up and they'll be like, Hey, so I need some numbers on
this. Like, oh, there's a trade and it's not in the system yet. Oh, shoot, I forgot. And so it's
like, you're still, you're constantly having to monitor that stuff. But that's what keeps it
interesting too. And that's what allows us to find the holes and figure out maybe where we can pivot.
So thinking about this Ford 2.0 facility, it's the new facility you were one of the first on it.
You said Ford on the last time you were on the show has been back twice to check that this space
is being used properly. And when you were on in January, he said they were coming back next month.
What, what did that surface? What did that visit surface? Anything you had to adjust based on their
feedback on that follow up visit? So we didn't have to adjust anything. It was really, it was really
cool. The team, and they called the team of oligists, you know, psychologists and all the,
all the people that put the thought process into why this building should work. They actually came
out and they visited me for about three days. And they watched the way that people worked and moved
through the room. And, and so I think we saw some pictures of it at one point I shared with you guys.
But the coolest thing about it is, is it's the only showroom that I've noticed that people will
actually change positions mid visit. And so most of the time, if somebody sits down in the, in the
service waiting area, they're going to be in that chair probably the entire time. So in this
facility, they'll sit down in one of the open console areas, they'll hop up and grab a snack and
a coffee. And then they'll end up on the couch that looks into the shop. And then then they'll go to
the restroom and then they'll end up in a closed console because they want to make a phone call.
But it's, they're, the space feels very freeing. And so you don't feel like you're in a,
a foreign environment. It feels so much like that. And we talked about it before, like a,
like a luxury lobby for a hotel that you're comfortable moving into space. You don't feel
like you're encroaching on somebody else's space. Yeah. Yeah. So JB, your group, you have a power
sports location. You've also got lawn and equipment. You've got an auto body facility.
Focusing on this, this customer experience, have you been able to take that into power
sports, that into wanting lawn and equipment? And if so, what impact has that had on the other
businesses owned by the Preston Auto Group? So we, I was our pilot dealer. So I started obviously
with the Ford store a few months later, got into the Hyundai store a few months later, put it,
because I didn't want to overwhelm myself because it is, it's a process to change everything. So,
so I mean, CDJR I think has only been on for about 22 and a half months.
And so as we continue probably like once a quarter, we're going to continue to add
to who's, who's participating because it, it does take so much energy and, and babysitting to
We've got to do it right too. You've got to launch it right. You've got to set it in right.
You got to install it correctly. Yeah. All right. Before we wrap up, I want to jump out a little
bit into a totally unrelated topic, but it's actually, you know, I'm going to do this on the
round table because we are running a little behind. We're going to have you back JB Burnett
as part of our round table at the very end of the show. Both you and Jeff Pister, executive
manager, Hunter, Hunter Marysville will be on. So, JB Burnett, executive manager, Preston Automotive
Group, Mills Borough Delaware. Thanks for being on the show. We'll have you back as part of the
round table. Thanks, JB. Thanks for having me, brother. I'll see you soon. Thank you. See you in a
bit. All right. I am breaking in my climbing shoes as we speak. No, I'm kidding. I'm not really
climbing yet. All right. Let's talk Presidio. Today's episode is brought to you by the Presidio group.
You probably know Presidio as one of the top advisors in the dealership Bicel Space. They've
worked on some of the most significant transactions in this industry, but they're also producing
some of the best market intelligence out there backed by real-world investment banking experience
and data. Check out their new research and reports portal at thepresidiogroup.com
for M&A Insights, Blue Sky Multipliers, exclusive benchmark data with NCM Associates,
and analysis on the trends shaping all automotive retail. And most of all today,
we appreciate the Presidio group for supporting today's content, including that great conversation
with JB touching base on how his Ford 2.0 facility is going, and then this experiment with AutoFI,
and then also Jay Law's announcement as it relates to Digital Dealer, which by the way,
if you go into the quotes, you can get a code for Digital Dealer when you register. You can
enter in CDG25-OFF, and that will get you 25% off the digital registration, so you can check
that out. But props to Presidio for supporting today's content in today's episode. Let's launch
into our next segment. Next up today, Robert Eben, director of Legal Affairs at KPA. Robert,
welcome. Thanks so much, Sam. Nice to be here. Good to have you here. So look, the FTC letter
shook the auto industry many months ago, and there has been vigorous debate about how does
automotive show up as their best self today in July of 2026. What are you seeing that's happened
in the last 30 days, 60 days, as everybody's working to make sure they're doing the right thing,
that they're advertising transparently and the best, most accurate pricing, Robert?
Yeah, no. Again, you said it right. There's a lot of transparency discussion going on, and JB
actually just mentioned that about transparency. I think that's the word of the hour, so to speak.
I think the big issue with the FTC in issuing the warning letters was they issued some guidance,
which was generally you have a total price, and that price needs to be inclusive of all fees
that aside from government fees and taxes like title and license.
And I think the concern was that how is that going to interplay with different states and
different state laws? Certain state laws are kind of silent on that. Some state laws are
permissive, meaning you can permissively exclude certain fees from your pricing as long as you
disclose it. And I think what we've seen over the past month or so here is that certain states,
I'll say Massachusetts, for example, has gone out and issued an advisory saying, hey,
this is our interpretation of the law. This is in line with what the FTC is saying. We are
going to enforce our law like this is. Louisiana came out with a bulletin as well saying we are
aware of the discrepancy. We are in the process of fixing our law to become in line with what
the FTC's guidance is, and this is what you should do going forward. So we've seen a lot of states
starting to address these issues. Yeah. I think you even cited Massachusetts,
Louisiana, Connecticut, New York. They're really writing their own rules. How do those rules,
Robert, compare to the CARS Act that everyone needs to love? And what is the deal with the CARS
Act today? Because it's in place in California. It was struck down at the Supreme Court level,
I believe, in the state of Texas. And it's kind of in that murky middle. It feels like the FTC
is saying abide by it, but it's not codified anywhere, right, Robert?
Yeah. So I mean, there's a difference, but it's essentially the same thing, right? So the CARS
rule was struck down, as you mentioned, Texas. So California, being California, said, hey,
we're going to just enact our own. And so it's a state law. It's going to become active on October
1. A lot of it has to do with pricing transparency, ways you go about your procedures and processes
and things of that nature. So it's very, very similar to the FTC and what they were trying
to do. It's more overarching, I think, than some of the states that have chimed in. Since the FTC,
the states are essentially more focused on specifically pricing transparency, specifically
advertising, whereas I think California was also your three-day right to cancel mandatory right,
which is mind-blowing for, I mean, if some dealers have never heard of that before,
like just imagine what the dealers in California have to deal with. So there's other overarching
issues in California. Yeah. So you've talked about a used car dealer in New York that just got hit
for deceptive pricing. What's the lesson in that case of this New York dealer, deceptive pricing?
Yeah. No, I mean, I think it's, you know, with deceptive advertising, a couple of things. One,
it's a hot button topic. I don't think it's going away. It's always been kind of there.
Two, we've seen now enforcement after the FTC made its 97 letters on a state level,
which I think that's going to be a trend going forward, too. Not to say that the federal government
won't enforce their laws. I think that they will. We don't really know with this administration how
in depth that's going to be. But I think the 97 warning letters, as you mentioned,
is giving license to states to take the reins themselves as well.
Yeah. Yeah. So how should a dealer be thinking about, you know, being 100% compliant in this
world? You talk about, you know, you don't want to be low-hanging fruit to these states and or
to the feds. What separates a dealer who's not low-hanging fruit from one who is, Robert, in
2026? Right. Yeah. So I mean, the first part of that is what I mean by low-hanging fruit. And I
think most people kind of understand that euphemism. It's essentially be as compliant as possible.
Don't stick out as like a sore thumb, because from my experience and perspective, a lot of regulators
don't pursue a case against somebody that's a coin flip that's a 50-50. They want the slam dunk
case. They want to see, oh, it's not one maybe violation. There's 10,000 advertising violations
I can pick from and just throw them all in there. And so I would suggest don't be the low-hanging fruit
by, again, starting with your advertising. Advertising is one of the most apparent things,
you know, out there, right? It's public. That's the point of advertising. So make sure they're
compliant. Make sure you really work on your pricing. So it's total pricing that is transparent.
It's really not going to hurt your bottom line. I think it actually is helpful in this day and
age. A lot of consumers are much more, not only technologically savvy and they can look up laws,
they can price, compare, you know, at the click of a button, you know, but I think they're also
fed up. And that's not just from the dealer industry. That was from like, you know, your ticket
master ticket master. Yeah, that's right. Yeah. Yeah. So I mean, I think even gasoline today,
there's a price that's sitting up on a billboard and it says $399. If you buy the car wash, if you
don't buy the car wash, then it's $410 or whatever. Wow. I wish I'm in your state, California, like
$6. Yeah, California is a lot more. Yeah. Unless you buy a house. Yeah. Exactly. Right. Yeah. Yeah.
Yeah. So let's talk advertised price. You know, it's interesting. In the past couple
weeks, many digital lead providers have come out and given direction to clients about
how they need to show up in the digital lead sphere. Otherwise, they're going to be
de-emphasized, deranked. I'm thinking car gurus. I think they were excellent leaders in this space.
When FTC advisement first came out, a lot of those lead providers kind of turned around and said,
we don't have the technology to ensure this. And it was a race to the bottom. Are you seeing a
change from your vantage point at KPA with these digital lead providers really being great partners
and helping to make sure that the pricing is equal, it's fair, it's transparent, and really
prioritizing those dealers who are doing it right? Or is there still more that needs to be done, Robert?
I think it's a little bit of both, actually. And I think they are trying to work with dealers. And
they're asking the reins themselves and asking their digital providers to change the ad structure,
to become more compliant. This is what we believe compliance is. Let's fall within these lines.
And I think it's actually working out pretty well. I know a lot of dealers that I talk to
on a daily basis, I tend to talk to dozens of dealers a day, potentially. They're all really
trying to get in line with this, because they think, now, big caveat, take it with a grain of
salt, the FTC is going to potentially issue some written FAQ, some written guidance. So
let's see what they say. But I think dealers... Actually, I'm going to call you out on the written
ad. Yeah, call me out, please. That was promised as part of the second NAVA call, which was
fantastic. They were very direct, very forward-leaning. They promised it, but we hadn't seen them yet.
One item that was a bit of curiosity to some dealers was this whole don't advertise a car
unless it's two days from hitting your lot, which can be a challenge for a lot of dealers,
particularly OEM specific, where that pipeline isn't that certain. And yet OEMs want those vehicles
sitting on websites being advertised. When are the FAQs coming, and then what's your guidance
on the two days? Great question. Your guess is as good as mine. I hope it's come sooner than later,
because I think a lot of dealers are making decisions, kind of partially shooting in the dark
here. I think in terms of you're talking about like in transit type vehicles, and I think that
that guidance was a little bit... I'll say I'll use the word interesting because... It was off the cuff,
too. Yeah, exactly. It was an unrehearsed moment. Yeah, it was an unrehearsed moment on the call.
And I think a lot of people feel like it was improvised and maybe not. Because nobody in the
right mind in the dealership industry can have that one or two-day lead time. It just is impossible.
I mean, I think from my perspective, I've always told dealers, do the best you can. If something is
in transit, maybe don't put a price on it yet. Maybe say coming soon. It's not for sale. Maybe
make it clear. Like, hey, we're just garnering some sort of interest in the vehicle, but not
necessarily saying that it's for sale. And as long as you differentiate, you're probably better off
than just assuming that it's for sale. I'd also say maybe slap a date on when you reasonably
expect the vehicle to be there. That's also a good one, too. So as much information as you can
provide so that when the customer engages on that vehicle, no matter where it is, what the state is,
they know exactly what it is. And that may be the difference between low hanging fruit and not.
Let's talk social meat. Well, actually, I'm going to come back to the question,
when is the FAQ coming out from your perspective? Yeah, I mean, I hope that it's going to come out,
within the next few months here. They didn't really, I think strategically,
they didn't put a timeline on themselves, because then it could give them more time
to kind of see how things play out, perhaps on the state level, which as we know,
some states are playing themselves out there. I hope sooner than later, and I'll give you the
reason why. I think it specifically had to do not only with the in transit vehicles, but also
with the fees, and what do you add in the total price? They were very clear with dock fees.
Yeah, I think that's interesting, because some states don't regulate the amount of dock fees,
whereas other states, California, for example, regulates at $85. It's the lowest in the country.
Florida does not as an example. Florida does not. I've seen $1,000 dock fees coming out of Florida.
But I think importantly, there are other fees that are quasi governmental, perhaps,
fees that are not directly government charges, electronic fees.
Yeah, which we've said, we've said we're going to include that, because we want to be as compliant,
transparent as we possibly possibly can. Right, and I think that that's the best way of doing that,
because technically, in most instances, you're not paying that to a DMV or state agency.
But there's no guidance from the FTC on if they expect to include that or exclude it. Again,
shooting from the hip a little bit, and so the guidance is really welcome, at least just to
tell us which way you're leaning. Yeah, yeah. All right, a few good comments coming in. Well,
they're all good comments coming in from social media. But Lauren Klein asks, hey,
what about social media? How does the social media element play into compliance in July of 2026?
What's the risk to a dealer who's on social or salespeople on social?
Great risk, great reward. Obviously, that's a new way of marketing for dealers, and it's
free for the most part, right, if you're doing your own. I think the concern is that with social
media, it is an advertisement, in every sense of the word. So if you're missing
required disclosures, if it's kind of a piecemeal advertisement, it is still a violation. And a lot
of people are a little lax when it comes to social media in my experience. And so because of that,
you have a lot of, for example, you have a lot of REG-Z, REG-M disclosure misses there on your
socials. And that's just a violation anytime you put something like that. And ultimately,
even though it perhaps is a salesperson or somebody, you know, at the dealership posting it,
the dealership, the buck stops with the dealership. So the dealership is going to get dinged,
and it's not necessarily going to be the person. So from KPI's perspective, what would your advice
be to dealers who salespeople are actively involved on social media, whether it's Facebook,
Instagram, TikTok, wherever, like, what does the policy look like? And what does the oversight
look like? Because it's, in many cases, it's their personal social media account.
Sure. Well, I think a couple of things is one, you know, have a social media policy in place,
whatever that may be. And I'm sure there's going to need to be some state specific
clauses, depending upon where you sit in this country. I think you may need to have some sort
of a compliance director overseeing advertising. I think it would be very, very helpful to also
have a third party come in and help review your advertising, review your practices,
you know, because ultimately, the problem with the, you know, individuals at the dealership
advertising on behalf of the dealer is the individuals, there tends to be a bit of turnover
in this industry, as you're aware of. So there's no consequence for them putting up something,
and then they leave, and then the dealership a year later gets hung out to dry. And so I think
ultimately, there needs to be some level of control that the dealership exercises to the
extent that they can in, you know, their states and oversight. I think those are good things.
Good advice on social media and the way our employees engage on social.
Dan C comes into the chat says, Stellanus in transit units are by far the outlier within
the industry. Do you see FTC or states as it relates to advertising those in transit vehicles,
getting more active with the OEMs and providing more transparency on the supply chain and
at what point vehicles will land? What, what, what responsibility do OEMs have in this?
Yeah. Yeah, no, I mean, that's a great question. I hope so. I hope, I hope that because
by making the OEMs more responsible, it eases the load on dealers. I haven't seen it too much to
that extent in this field, in the advertising field, at least against OEMs. And that's mainly
because, you know, the dealers directly deal with the consumer. And it's not the OEMs. So you get
the ire of the consumer pointed at the dealer, even in like lemon log claims, which are not even
really the dealers issue. The consumers angry at the dealer when really it's, you know, the worn
tour. So I hope so. And I think that that would be very smart for the FTC. But but I'm not certain
that it's going to happen right away, at least. Paul Salisman comes into the quote says,
it seems like a mess with paid influencers stating MSRP and not disclosing second sticker
information. So that's another element. You may not have salespeople online or in creating that
exposure, but you could have influencers who are paid by the dealership or by the group
talking about product and they may inadvertently make statements. So
cleaning that up has got to be a challenge mid year 2026.
Absolutely. I think that you need to make sure those scripts are written carefully by somebody
who knows what they're doing. Yeah. Well, as we wrap out today, Robert, give us one move in the
next seven days that dealers could take to just make sure we're being our best selves out there
July 2026 as it relates to this compliance piece. Yeah, look, look at your advertisements,
specifically probably your website. Just make sure that you have all the required disclosures,
state and federally. Make sure your pricing is transparent, meaning if I see a price on your
website, make sure that it's essentially the out the door price that I would get. Yeah. If you do
that, you're probably not the low hanging fruit currently. Yeah. Dan C comes in, Robert and says,
Stellanus hits the dealers floor plan once the vehicles produced versus other OEMs drafting
the floor plan just before the vehicle arrives at the dealer lot. So Robert, that's an interesting
thing when we talk about timing, how we put it out there. That can create a challenge too,
because you're paying that floor plan expense very early on in many cases, credits aside. So
Robert, as we wrap up as well, what has surprised you most over the past month? Is there anything
out there not sharing names of dealers or situations, but where you're like, hey, this is
shocking. Hey, this is still going on or hey, that's a really cool way to make sure we're compliant
and in line and delivering our best to the customer, Robert. Yeah. I mean, I think it's overall
the dealer's willingness to actually try. I think a lot of times we've seen in this industry where
dealers are wait and see, I've been doing this for 30 years. Why do I need to change it? Because
it's worked for 30 years, right? And I think a lot of dealers actually are willing to try and
willing to take this seriously, which is refreshing, because I think that they understand that the
business model nowadays is compliance, is being transparent because that's an expectation for
your consumers now. Yeah. And by the way, being fully transparent, being fully compliant, it
draws customers into our dealership. We can focus on the experience, not so much on just the price,
and it gives more leverage when we talk about franchise competition with Chinese vehicles,
direct to consumer, and all the other things. So this cleanup on aisle 9, as Bernie Marino
talks about it, is well received, I think, by most dealers out there. So Robert, even director
of legal affairs, KPA, thank you so much for being on the show today, sharing your questions.
Thanks for having me. Thank you. All right, so fun stuff. We got a ton of comments, again, coming
in to the chat, including Igor Kay, automotive retired guy. In fact, you know what? Our chat
sometimes goes on its own conversation, so I can't bring it all in, because they're talking
about all sorts of things going on. So my shoes continue to get worn in. Let's keep the momentum
today. Jeff Pister, executive manager, Honda Marysville in Ohio. Jeff, welcome to the show.
Sam, thanks for having me. Thanks for being here. Hey, Jeff, how's biz this July of 2026?
I think much like others have mentioned, it's actually surprisingly good. Used cars and fixed
operations continue to be strong. With Honda right now, we're in the summer slump with inventory.
We wish we had more, but things are good. Yeah, yeah. What is one or two things this
July that are resulting in success for you at Honda Marysville? I think our focus on fixed
operations. We've been really focused on that all year long growing it. More capacity, more
availability, more flexibility with ours has helped us tremendously. Yeah. And I think,
secondly, just kind of staying in the course. We have a fairly large used car operation,
and we work very hard to keep the shelves stock. And that's, I think, helped us a lot
through the course of this year. All right, so let's talk used car and fixed ops. But let's
go first to fixed ops. That increase focused in fixed ops, what has that resulted in from
a process standpoint or a procedure standpoint that's caused you an increase in fixed ops in
July? Availability. We went to a four day work week with our technicians late last year,
which gave us the opportunity to recruit some people. We employ, I think, right at 70 technicians
right now while growing, we have more space to grow that. But I think availability has been a
big key. In our marketplace, Honda is a pretty strong presence. There's a factory here, R&Ds here.
We have two competing Honda stores that are in the top 10 in the United States.
So it's a very nice Honda market. But I think having flexibility and the ability to grow,
we've always been a company that's been very cognizant of the need of the consumer, right?
The ability to be able to get them in, take care of them in service and not make them wait.
So you're doing four days on, three days off for the technicians, which kind of
push, it leans into a better work life balance. Are you running longer shifts to be able to
maximize those four days? We're open from six in the morning to nine o'clock at night,
Monday through Friday, and then the full day Saturday. We used to do Sundays. We don't do
Sundays anymore. But we continue to kind of flex those hours. And we've created some flexibility,
whether it's co-parenting, it's sports with kids, you name it, right? It's offered an opportunity
for them to be more involved in their family's lives. Certainly has some nuts and growing pains.
Yeah. How long have you done this for? We've been a little over a year now.
Okay. And what does that result in from an hours generated or revenue? Where have you seen the
increase with this? I mean, I think we've seen more than anything just capacity because we've
got more teams, more groups of people, more flexible hours, right? So we can cover that full
spectrum of the day instead of a certain part of it. But again, biggest, biggest,
flexible opportunity for us. I would say we were a store that would average 160 to 200 appointments
a day. And we're in the 250 to 260 a day now. And I think we can get to 300.
Lauren Klein comes into the chat says, flexible schedules are so important to our new generation
of techs. Four-day work weeks, that's a big win. What was the pressure that you saw,
Jeff, that made you say, hey, let's be open to this four-day work week?
I think as an organization, we're always looking for that edge with an associate, right? What can
we provide that maybe another organization doesn't? We talk about that frequently, not just with
sale or service, but sales as well, too. What's the edge that makes us more attractive to a new
associate? Not even an existing automotive person, but somebody that maybe is looking
in our field and trying to consider where do I go? What can we do? We've got that
longtime stigmatism of having crazy hours and no life work-life balance. And we work extremely hard
to kind of figure that out. Let's go. Rob Alps comes into the chat says,
how are you finding the right people in fixed ops? Now you've got the right schedule, you say,
and it's resulted in an increase in productivity. How are you finding people to put in those
bays four days a week? I think for us, we're wide open, and I've got a couple of things to add to
that. One is that we're always recruiting. We take interviews daily. We're always looking for
people that are looking to make a career change, and we're super invested in the schools.
Our company actually partnered with the Marysville Schools and put in a tech training center that's
in the high school curriculum. Our technician that belongs to us is the teacher, and so we have a
funnel for youth, and the other part of our organization has a school that's more kind of
central Columbus that targets maybe a little bit more at risk and career development.
Great. That's one part of our follow, but the recruiting piece is it. I picked that up many,
many years ago. I was a technician right out of high school, so I come from that. We spent a
tremendous amount of time recruiting people. It's an everyday focus. I recruit technicians,
so it's part of the whole puzzle for everybody. With our growth, both vehicle sales and service
opportunity, we have to be a company that always is recruiting. We have to be a company that's
always looking for ways to attract new people. We've invested in the colleges. The local community
college here does have an automotive program that endorses Honda now, so we participate in that.
We're just everywhere we can be to recruit the next generation. You talk about recruiting,
it's crucial. You've given a different way of working. The four-day work week,
ton of comments online about support around that, but it is a different way of thinking.
As you talk to candidates in automotive, technicians, what's the biggest objection
to getting involved in automotive? A technician is a well-paid position. It's one that you can
get into without a ton of educational formal background, and you can have a lot of success,
and yet it is still a very tough position to hire for. What's the biggest misconception or the
one comes from the parent side of the world and the other comes from just the stigmatism of the
business? One is that it's a dirty business and hard work and the flat rate system is antiquated.
I think that's one piece of it, and I also think that commenting on the flat rate,
the ability to have work and grow as an organization, if you don't consistently
are marketing to grow your company, your organization, more opportunities for people you
can't create consistent income for. I think that the technician workforce sees the business
ups and downs. They feel that, and it's certainly, in my opinion, chases them away. I remember it
as a young technician myself. You mentioned also use car acquisition. We want to catch just a few
minutes of our roundtable here at the very end. You're doing unique things with the four-hour
work week or four-day work week for technicians. What are you doing in the use car space to
cap? We have probably what everybody has. We do have two dedicated people that buy for us.
Our preference is to trade for everything. We have a pretty high trade percentage on our new car
operation, and then maybe the most important factor, which is not something new, is we have a service
drive team. We have four individuals. One is a previous use car manager. It's been with us 19 years
that focuses on the pull ahead opportunity or maybe the repair bill that's too expensive for
somebody with opportunity. On an average month, we're, by any means, great at this point. We're
pulling a little over 100 cars a month out of the service operation. Wow, okay. Continuing to expand
that piece of the puzzle, we believe we could get it as high as 200 as our opportunities grow,
but that's a big feeder for us too. This market, because it's Honda and because associates have
opportunities to get cars, there are a lot more vehicles for sale than our product. That's a long
story for another time. There are programs and incentives, but we do have a little bit of feeder
there, but we work really, really hard to keep our customers in our system. Well, with acquiring 100
vehicles out of the service line, how many vehicles do you sell new and used average monthly?
This year, I was looking this morning, we're pacing a little over 9,000 new and used this year. I think
we can get to 10 with a second half. We are a little bit of a, because of the fluctuation
of Honda and inventory, we are 1.25 to 1.35 used to new situation and have been that way for some
time. We just, we live in the used car space. We've got dedicated service bays for nothing,
but used car reconditioning, a dedicated detail center, the whole line. Every piece of that
puzzle we've got on our campus. A lot of our audience would be frustrated with me if I didn't
ask about the technology that drives this trade process for you in the service lane.
From a process standpoint, acquiring that many used cars on a monthly basis, is there
technology? Is it AI? Is there a program? We certainly are using Apollo. That's kind of our
partner in that space to look at equity situations, but frankly, just asking everybody. We have a
probably a grassroots at best. We ask every customer that comes in if they'd like a vehicle
evaluation. We incentivize our service advisors to bring us potential repair problem cars that
maybe the outcome would be better to put them in a different vehicle. But it's, I would say it's
more grassroots technology definitely helps in the equity and, yeah. Identify the opportunities.
But the most success we've had is just asking everybody. Yeah. Yeah. That's amazing. And then
on the tech side, technology-wise, are you using video MPIs? If so, what technology are you using?
Our DMS is dealer build and dealer build partnered with iService a while back. So we use iService
in every targets and video. The video also gives us a marketing place too. There's an ability to
get an appraisal at the back end of the video for the consumer when they're in for service.
Yeah. Yeah. Well, Jeff Pister, I wish we hadn't run out of time. We flat out run out of time. We
had an operation your size. I think there's a lot of things we could all learn from. And
your ability to create a different experience for your technicians in the service drive in order
to retain and attract new talent into this industry is commendable. But then also your
ability to engage with consumers on the service drive and exchange out those vehicles. Love to
get more of your perspective. So Hannah, let's bring Jeff back. Jeff Pister, executive manager,
Honda Marysville. Thanks so much for being on the show today. Thank you, Sam. Thank you.
And listen, I ran out of time. I always want to do the round table at the very end. And I
actually think both Jeff and JB would have been a heck of a lot of fun on the round table, but
we're flat out of time. But to our Daily Deal Live Listening audience, just a reminder, Friday,
we will be broadcasting live from Boulder, Colorado, post-mountain climb, where you can join us
to see, was I able to get these shoes to work or not? We'll see. But to our audience,
thanks for watching Daily Deal Live. We break down the biggest moves in the car business as
they happen. Don't forget, we're here live every Monday, Wednesday, and this Friday only
3 p.m. Eastern, 1 p.m. Mountain. So if this is your world right now, hit like, hit subscribe,
turn on those notifications so you never ever miss a beat. And we'll see you next episode.
Thanks for being here, everybody.
About this episode
The Car Dealership Guy Podcast swings from digital-dealer strategy to real-world operations. Hosts preview Daily Dealer Live’s digital-dealer and compliance focus—covering FTC pricing-transparency guidance, state enforcement differences, and even how to handle “in transit” listings and missing social disclosures. Then the conversation turns to sales and fixed-ops execution: iPad/Autify-style transparency, single-point-of-contact workflows, and how faster funding and better verification protect cash flow. Finally, Jeff Pister and others share fixed-ops wins like a four-day technician schedule and video-based used-car appraisal workflows.
Today's show features:
- Jay Law, Head of Partnerships at Car Dealership Guy
- JB Burnett, Executive General Manager at Preston Automotive Group
- Robert Ebin, Director of Legal Affairs at KPA
- Jeff Pister, Executive Manager at Honda Marysville
This episode is brought to you by:
Presidio – Today’s episode is brought to you by The Presidio Group, one of the automotive industry’s leading buy-sell advisors. Visit Presidio’s new Research & Reports portal for M&A insights, blue sky multiples, exclusive benchmark data with NCM Associates, dealer sentiment, and analysis of the trends shaping automotive retail at thepresidiogroup.com. Check it out at https://thepresidiogroup.com
KPA – Escalating fines and enforcement actions are hitting dealers hard on advertising, sales, and F&I compliance. KPA's Advertising, Sales & F&I solution combines integrated software, expert consulting, and award-winning training to help you reduce liability exposure and protect your reputation. Learn more here: https://carguymedia.com/4fASW9X
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