Rob Ruth, president of Bob Ruth Ford, shares insights on successfully navigating the used car market, even in a small town. With a focus on mindset and strategic operations, he discusses how his dealership sold over 300 used cars in a month, emphasizing the importance of inventory acquisition and customer service. Rob reflects on his journey from general manager to owner, the lessons learned from his father, and the significance of building a strong team culture. This episode is packed with practical advice for dealers looking to thrive in a competitive landscape.
How do you sell 300+ used cars a month in a town of 2,900 people, and buy 240 vehicles off the street without relying on auctions?
In this episode, Rob Ruth the President / Owner of Bob Ruth Ford, Dillsburg PA breaks down the real playbook behind scaling a pre-owned-first dealership inside a franchise system, and why a startup mindset, disciplined acquisition, and a culture built on partnership can outperform “bigger market” excuses.
Rob shares exactly how they pivoted during COVID when inventory vanished, how they built a team-based buying machine (starting with Facebook Marketplace outreach), and why used cars drive the whole store: service, parts, profitability, and growth.
What you’ll learn:
Why used cars are the real growth lever (40M used vs ~16M new) and how to differentiate
The acquisition-first framework: buying center, street buys, and scaling a sourcing team
How to sell 8 used for every 1 new while keeping the OEM satisfied
What’s working now: $25K-and-under sweet spot, pricing discipline, and recon strategy
Leadership and culture: treating employees like partners, creating career paths, and recruiting in a small market
The recession-proof logic of building a pre-owned engine when markets shift
If you’re a dealer, operator, or leader who feels boxed in by OEM pressure, market size, or “the way it’s always been done,” this episode will challenge you to rethink what’s possible and remind you why you got into this business in the first place.
Timestamps
00:00 Introduction to the Used Car Mindset
00:36 The Story Behind Bob Ruth Ford
01:02 Key Elements of a Successful Pre-Owned Operation
01:13 Flex Dealer and the Dealer Playbook
02:35 Rob Ruth's Journey and Mindset
03:46 Challenges and Strategies in the Used Car Market
"Can you bring me inside of your acquisition process a little bit further? Cause I'm, my mind's already thinking, well, there's some tools I probably need."
The acquisition process is how car dealers get their cars to sell. They might buy them from auctions or take them as trade-ins from customers.
The acquisition process refers to the methods and strategies used by dealerships or individuals to obtain vehicles for resale. This can include buying from auctions, trade-ins, or direct purchases from sellers.
"Go to the auction, buy a lot of cars, bring them back, merchandise them, sell them."
Merchandising means getting cars ready to sell. This can involve cleaning them up, fixing any issues, and making them look appealing to buyers.
Merchandising in the automotive context involves preparing and presenting vehicles for sale, which can include cleaning, repairs, and marketing strategies to attract buyers. It's crucial for maximizing the sale price and ensuring customer satisfaction.
"Are you rolling in with like a OBD reader or like a diagnosed, like a quick little check in the driveway to make sure that. It depends on the car."
An OBD reader is a device that helps you check if there are any problems with your car's engine or systems. It connects to your car and tells you if something is wrong by showing error codes.
An OBD reader, or On-Board Diagnostics reader, is a tool used to diagnose and monitor the performance of a vehicle's engine and other systems. It connects to the vehicle's OBD port to retrieve diagnostic trouble codes (DTCs) that can indicate issues with the car.
"Are you rolling in with like a OBD reader or like a diagnosed, like a quick little check in the driveway to make sure that. It depends on the car."
A diagnostic is a way to find out if there are any problems with your car. It usually involves checking different parts of the car to see if they are working properly.
In automotive terms, a diagnostic refers to the process of identifying and troubleshooting issues within a vehicle's systems. This can involve using specialized tools to read error codes and assess the condition of various components.
"...we're a, we are a used car operation with a Ford logo on the building."
Ford is a well-known car company in America that makes many types of vehicles, including trucks and sports cars. They have been around for a long time and are famous for their popular models.
Ford is a major American automotive manufacturer known for producing a wide range of vehicles, including trucks, SUVs, and cars. The brand has a long history and is recognized for models like the Ford F-150 and Ford Mustang.
Introduction to the Used Car Mindset
The Story Behind Bob Ruth Ford
Key Elements of a Successful Pre-Owned Operation
Flex Dealer and the Dealer Playbook
Rob Ruth's Journey and Mindset
Challenges and Strategies in the Used Car Market
The Startup Mentality in a Family Business
Acquisition and Inventory Management
Community Impact and Leadership
Conclusion and How to Connect
Select text to request an explanation
And the first thing that I wanna get into
that I think a lot of people are curious about is,
what does your mindset have to be to think used cars?
It almost seems like you made the decision,
no, we're going all in here.
What led to that?
How does it look on the day to day?
I think it's common sense, honestly.
Used car markets in the US is 40 plus million
and the new car market is 16 million.
You're in a small suburb.
Talk to me about positioning yourselves
to do what you're doing volume wise
in a small market with, you know,
I guess these kind of other quote unquote excuses
that many would use.
Well, I think you're right.
Those are excuses.
And I think for us, that's part of our story.
So I think it's great that we operate the way we do.
It tells a story.
You don't have to have the Taj Mahal.
You don't have to be in a metro area.
You know, we sold 300 plus used cars last month
in Dillsburg, Pennsylvania with 2,900 people.
So you can do it.
If you believe you can, you put the right process
and the right people together.
Maybe they're catching on, Rob,
and they're like, well, where do I even start?
What are some key things you have learned
need to be in place to have a successful
pre-owned operation?
Well, to me, it's a simple game.
One of the things that I enjoy most
about producing the dealer playbook is hearing from you.
The messages that I get of people
who are getting so much value out of the podcast,
applying it to their day-to-day workflows
and finding a thriving career right here
in the retail auto industry.
It means the world to me.
And you know, one of the ways that we make doing this possible
is through my agency Flex Dealer.
And of course, in the spirit of providing value,
I think this is a perfect time to head over
to www.flexdealer.com to show even further support
for you, my beloved DPB gang.
Right now, if you go to my website, flexdealer.com,
you can get a full free PDF of my number one bestselling book,
Don't Wait Dominate.
And the reason I think it's so special
is that a lot of the topics that are discussed in this book
are even more relevant today than ever
with this surge in popularized AI.
And people wondering, well, what can I do next?
How can I have a competitive advantage?
Well, that's all here in this book.
And so I'd love to be able to offer you a free copy of this.
If you go to flexdealer.com, it would mean the world to me
because that is how we continue to produce this show for you.
Rob Ruth is a seasoned car dealer who turned a crisis
into opportunity by scaling his pre-owned vehicle business
while many competitors retrenched as president of Bob Ruth Ford.
He drove the dealership to profitability even when new vehicle sales stalled,
proving that resilience and strategic focus can outpace volume when markets shift.
We're going to get into all of it, the mindset, the operational shifts, everything.
Rob, man, thanks so much for joining me on the dealer playbook.
Hey, thanks for having me, Michael. Appreciate it.
I want to get into all of it because I've heard you say some things,
you know, whether it's on other things you've been on,
other interviews, articles, and the first thing that I want to get into
that I think a lot of people are curious about is, well, what
what does your mindset have to be to think used cars
when so many people get into franchises with all of the impositions of the OEM
saying you've got to sell this many new vehicles, you've got to do all these sorts of things.
It almost seems like you made the decision, no, we're going all in here.
What led to that? How does it look on the day to day?
I think it's common sense, honestly.
Used car markets in the US is 40 plus million, and the new car market is 16 million.
We're one brand of that 16 million.
And if it's a 10 percent market share, it's 1.6 million versus 40 million.
And then we're competing on the same product with so many people,
so many other dealerships on that, you know, in that same market.
So for us, I mean, the used cars was where we could differentiate ourselves.
We have more control as an operator.
We can be an entrepreneur and kind of do things the way we want to do it.
And and obviously used cars, profitability, it goes through the whole company.
More used cars you sell, the more cars you service, more parts you're selling.
It didn't take me long to figure out, you know, we got to we got to really
continue ramping up this used car department.
And it's fun, honestly, I like these cars.
I don't like being told what to do.
I was going to ask that.
I'm like, how do you navigate that when there are a lot of, you know,
franchise new car, you know, implications of having a Ford store?
And I don't want to say we don't sell new cars
because we actually do really well in new cars in our market.
We we outsell our market every year.
But it's just it's just so small.
If we wanted to stay small, we would just be a new car dealer.
But we wanted to grow. That's our, you know, we want to grow
and provide opportunities for for everybody that's involved
with their company and use our way to do it.
I mean, there's some environmental things here that I think a lot of people
use as an excuse, right?
You I've heard you talk about, you know, our building is in one of these new
modern, you know, with the coffee shop thing that they're building
into these new signature Ford stores.
You're in a small suburb.
Talk to me about positioning yourselves
to do what you're doing volume wise in a small market with, you know,
I guess these kind of other quote unquote excuses that many would use.
Well, I think you're right.
Those are excuses.
And I think for us, that's part of our story.
You know, we're a we're a 40, 43 year old company, but we act as a start up.
And my father and I were partners for 17 years.
He passed away, unfortunately, almost eight years ago.
I bought a company from from my family.
So we're we're technically a startup.
And after he passed away, there was about a two year transition there.
And that was tough. And then right after that, and I finally got through
with the purchase of the company, then COVID happened and we got shut down.
So it was a, you know, I'd love to say, hey, let's go build this,
you know, this Taj Mahal, but we just haven't been in that position.
I we're getting there, but I didn't have that the capital
to just go out and do that at that point in time.
So I think it's great that we operate the way we do.
It's it tells a story.
You don't have to have the Taj Mahal and you don't have to be in a metro area.
You know, we sold 300 plus used cars last month in Dillsburg, Pennsylvania,
with 2900 people.
So, you know, you can do it if you believe you can,
you put the right process and the right people together.
That's I mean, that's awesome.
And I love what you're saying about startup because that brings in to view
a different mindset where I feel like.
And I don't want to single any buddy out, but but also I kind of do.
It's the Italian in me and I'm like, hey,
so many people hide behind the layer of, but I'm a franchise store
and that means big corporate this and that.
But there's something very real that happens in a startup mindset.
Maybe talk to me about the mindset shift for you,
thinking like a startup and its implications on your operation.
Well, I was I was a general manager for 15 years.
And, you know, I was a minority partner.
I was I, you know, I had a I had stock in the company.
But at once that point came and I had to really go all in,
put everything on the line to buy the company.
It's a completely different mindset.
I didn't really know what fear of failure was, I think, until that point.
And I have so much more respect for business owners
that have to go through these things.
Even my father, you know, I I love them.
He was a great partners, but I just have so much more respect for him.
Now, then even then at that point in time.
What are some lessons you learned from your dad that you carry into
the way you lead today?
Well, he he was always just great with people.
He loved his customers.
He loved his employees.
He was a hardworking guy, you know, you would you had mentioned
you're from a family business.
So him and I, my parents were split out at a very young age.
I lived with my father.
He bought the store in 1983.
Him and I lived at the dealership for six years at the store.
So I mean, I grew up with him.
Man, we painted.
We, you know, I cleaned.
I mean, I've had a job there since at a very young age.
And one thing he always made me appreciate it
because he made me work for things.
It was never there was never any handouts.
I was never given a position because of who I was.
It was kind of, you know, you're going to earn it and you're going to learn this
and you're going to learn that you're going to you'll keep moving forward
if you if you do the work, I got to ask you this
because you're you're strumming a chord in me right now.
And it's it guys go with me here.
It's a car business thing, but it's also kind of not at the same time.
It's a life thing.
And I mean, this is the dealer playbook all about creating a thriving life
while working in the car business.
Couple of the things you said here, you know, your dad making you work
for things that deepens your appreciation.
I think about my dad in a very similar way.
What you know, not too long ago, Rob, I was on an airplane and.
I don't know why I just opened my little like journal app, like notes app on my phone.
And I've got a kind of like a living document now.
And it was just like things my dad taught me.
And it's just like a bullet point.
It's nothing fancy.
And I don't know why I felt inspired to write that in that moment.
And then this is the thought that came to me.
And here's here's the punchline.
And I'm curious your thoughts.
I feel so deeply grateful to my parents, my mom and my dad for the sacrifices
they made the lessons they taught the way they they live their lives
to set me and my siblings up for a better life.
And but I would but there was struggle there.
Like they we saw them struggle.
And and thrive, like we saw the seasons and they were not shy about that.
Like, I know what it's like to eat, you know, re re what do you call it?
Like, what are they when campers, they they hydrate it, rehydrated like pea soup.
And and like, just, you know, we knew like we were just digging into food storage at times.
I think of what that did for me to create a level of, dare I say,
for the sake of potentially being judged here, a level of affluence.
That was not handed to me that I worked for and I built.
And then I look at my kids.
Here's where I'm going with this, who I feel like I almost have to fabricate hardship for them.
Which feels almost like insincere and inauthentic in one way.
And also, like, I want to like beat them up sometimes.
It's like they're not getting the punch to the ribs like I got.
And I know you or your parents, then they had it worse than we did.
And just like you, I mean, I saw my father struggle.
I he was uneducated, you know, he started in the car business.
He worked his way up and he he found an opportunity.
And he he he made it, you know, he really made that.
And I felt that there was a great opportunity from me in front of me.
I never wanted to feel like I was taking that easy road.
So for me, and I'm sure you can relate,
my job was to take it to the next level.
He laid the foundation.
My job was to come in and at that point in time, I could tell he he was tired.
I mean, it was it was hard, hard work to get to where he got to.
And for me, it was like, all right, the foundation is laid.
And I, you know, I came in full time in the year 2000.
So the internet was the older stuff, the internet was going to take their
their franchises and they were going to no longer be.
I saw it as an opportunity that we could kind of grow with it.
And it was just perfect timing.
And, you know, my dad never had an email address ever.
I mean, I don't think he ever opened a computer.
It just wasn't his thing.
He was a people's guy.
He was a, you know, hardworking kind of person.
Technology was not his thing at all.
So, you know, next generation, you know, it's our obligation
not to just kind of keep things the way they are or to just kind of
challenge and take them to another level.
Hey, does your marketing agency suck?
Listen, before we hop back into this episode, I know you know me as
the host of the dealer playbook, but did you also know that I'm the CEO of
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