The Secret Plan to Create America's Next Dealer Owners (& What Comes Next) | Perry Watson IV, President of NAMAD
Car Dealership Guy Podcast
The Secret Plan to Create America's Next Dealer Owners (& What Comes Next) | Perry Watson IV, President of NAMADCar Dealership Guy Podcast · Jul 7, 2026
“Minority consumers” means car buyers from groups that are underrepresented in the overall population. The point here is that these buyers are a major and growing part of new-car sales.
“Market share” means how much of the car-buying business a brand gets compared to other brands. If market share goes up, that brand is selling a bigger share of the cars.
“OEMs” means the carmakers themselves—the companies that manufacture the vehicles. They depend on dealerships to sell and service cars in different communities.
“Customer satisfaction” means how happy customers are with how they were treated and how their car-buying or service went. The host says top dealers aim to deliver high satisfaction.
“Brand loyalty” means people keep buying the same brand instead of switching. The host is saying dealership engagement and representation can make customers more likely to stick with a brand.
A “dealer network” is the group of car dealerships a brand relies on to sell cars and help customers. The host says how that network is set up can affect which customers buy the cars.
Term
dealer owners
Dealer owners are the people who own the car dealership business and run it. Their ownership status can affect how easily they can get financing and approval to sell cars.
A personal guarantee means the owner is agreeing to cover the loan personally if the dealership can’t pay it back. It’s a big risk because it can put personal assets at stake.
This is about pricing rules enforced by the FTC, the U.S. consumer-protection agency. It matters to dealers because it can affect how you advertise prices and whether certain pricing tactics could get you in trouble.
EVs are electric cars that run on electricity stored in a battery. Dealers have to think differently about what to stock and how to explain the benefits and tradeoffs to buyers.
Concept
peer group
A peer group is a set of similar professionals who share knowledge and best practices. In dealership organizations, peer groups are used to spread “how to handle the market” education and to build relationships that can accelerate learning and decision-making.
LIVE
Perry Watson, the fourth president of NAMAD to the CDG podcast.
Perry, welcome.
Thank you, man.
Thank you for having me.
It's quite a pleasure and appreciate the opportunity to speak with you guys today.
Perry, the first thought I have in mind that I feel like you'll have a lot of access to
this information is, are you still seeing dealers go from or I would say aspiring dealers
go from zero to ownership nowadays across the country, specifically, of course, in the
US?
Yeah.
Well, you'll see, let me just tell you, we are in a big way, the spirit of entrepreneurship
amongst dealer candidates is alive and kicking.
The reality is, I think there's a place for everyone in the industry.
You know, the larger automotive groups, they bring certain benefits to the automotive industry,
but also those dealers that you still bump into at the grocery store, right?
That you, you know, that are at the little league games.
They are the heartbeat of the automotive industry.
And so from an OEM perspective, the consolidation is good from a capital perspective, right?
Those larger groups normally don't blink at doing a new facility and all of that good
stuff.
However, when they start to control several stores of an OEM, it's a little different,
right?
There's leveraging there in terms of what they will and won't do and all of those things
when it's an individual dealer, it's truly a partnership.
And so we're seeing many first generation dealers still pursue the opportunity to become
dealer owners and across the industry.
And I will say, we can get into this a little bit later, but we have launched the Naiman
Dealer Ownership Academy.
So we're training up the next generation of individual dealer owners and being very successful
at doing that.
So we can talk a little bit more about that later, but we're on, we're getting ready to
launch class three of that Dealer Ownership Academy.
Well, I do want to talk more about that, but tell me, Perry, what's your, I know we
were sort of joking before we started recording how we both came from like cold cities and
shoveling snow, scraping ice and whatever from cars.
And I was just telling you, that was a big part of my childhood was actually going in
the middle of the night with my dad.
And he was plowing, I'd get out of the plow, kind of help him, I don't know, move some
shit around, come back to some towel.
So that was it.
And that was some, that was some good memories.
So definitely, definitely feeling on that.
But tell me like, you know, stuff like that is that what paths are you seeing today when
it comes to ownership?
Is this, because what I'm seeing is that there's a lot of operating partners, right?
It's gotten so expensive to purchase a dealership, let alone an open point, which you can barely
find maybe, you know, better than I, when it comes to that.
But, you know, you want to get into a dealership, you get an operating partner, they put up
the capital, you know, you put up the SWOT equity in many cases, some people go the private
equity route.
What are you seeing from your perspective in terms of that entryway to ownership?
Well, you'll see, we're seeing a lot of different models.
You know, some of them, like you said, are, you know, partnering with larger capital partners
for meaningful participation.
Some of them have saved up a significant amount of money and are using some of the dealer
programs that are open to everyone.
But our members definitely, you know, take advantage of those if that is an option that
they, you know, so choose to do.
And then we're also seeing, like you said, you know, Wall Street money, private equity,
all of these different support mechanisms coming into play.
And so I think it just depends on what your situation is as a dealer candidate.
But there's no straight path to ownership anymore.
It is a high price of poker.
However, you know, we are still seeing dealers that are gained points with their own, you
know, capital as well.
So it just depends on what your situation is.
When you're advocating with OEMs, like, what are they looking for, right?
What does that process look like?
You know, how are you showing them, hey, you know, you should do this for this reason
or like, what does that process look like?
Like, give us a little behind the scenes.
So the first thing we have to understand, Yossi, is there is a business case to the
name ad business model and that is inclusive economics.
What do I mean by that?
2023 is notated, I believe it was by S&P Global Mobility that did, you know, did the data
and found that 33% of all new vehicles were purchased by minority consumers.
So these emerging markets, I mean, as you know, there's a fight for market share across
the country and with the uptick of Chinese automakers in Europe, in Australia, it's driving.
Yeah, man, I mean, we can get into it, right?
It's driving a retraction back into the US market.
So the business case for the OEMs is, hey, you go into these markets and you want dealers
that perform at a high level, right?
They sell cars, they service cars, they move parts, they deliver great customer satisfaction.
But our dealers and our members, we have a special ingredient and that is we don't just
get into the general population to sell those cars.
We get into the nooks and crannies of these emerging markets, a lot of them minority markets.
And we draw from, you know, not just our primary market area.
There's one OEM that took an opportunity to put one of our members in a deal, doubled
the sales volume within two years.
And a lot of that was because of the engagement, not only at the, you know, the softball and
baseball games for the local municipalities, but it was also tapping into those other communities
and having ownership, right?
Because when we walk in as minority consumers and we see people that are reflected in our
staff, but especially at an ownership level, the level of engagement and the level of loyalty,
brand loyalty, is at a whole different level.
We see that in our actual numbers in terms of our throughput with those emerging market consumers.
So we really focus on the business case with the OEMs and they're seeing it in their numbers.
They're brands right now where over 40% of their new vehicle sales, both luxury and
non-luxury are coming from minority consumers.
And a big part of that has to do with their dealer network.
I mean, look, I think it's smart, right?
You're going at it from, you're not coming from like a touchy feeling angle.
You're coming very objectively.
Like this is, here's the business case.
Here's why this makes sense for the brand.
And you're also going right up to the OEM who is, you know, can set up programs, you know,
You never go wrong with the business case because you can't legislate people's hearts, right?
You and I may have the same belief in terms of, you know, what makes sense in terms of
the humanitarian piece of this thing.
But ultimately, if you stick in focus to moving business, it's a language that we all
can understand.
Talk to me about the biggest barriers to access.
I want to say, if I'm not mistaken, that I had noted here floor plan.
I've personally done many floor plans in my life.
And I mean, I would say that the biggest floor plan that I committed to, which I was
maybe 25 at the time, I had to like personal guarantee my life away.
I don't recommend you do that.
I'm just saying what I did at the time, because I said, I'm going to, I need
this access no matter what, I has zero leverage at the time.
And it is, it was, thankfully, like, you know, it didn't end up in a disaster, but it could have.
So long story short, and I know that most floor plans do require PG's, but again,
just different versus profiles.
Assuming that is a really big hurdle, typically, with an ownership, like, what
are you, what are you able to do about that?
How are you going to help that or support that?
So here's the beautiful thing about the name at conference, which I know we're
going to talk about a little bit later.
We have an annual conference and at that annual conference, dealers and potential
dealers have the opportunity to meet with the OEMs.
So the, the manufacturers who are distributing points, brokers who are
doing buy sales, as well as the banks.
So oftentimes the magic happens at the conference for our members.
And a lot of collaboration happens at the conference.
And so we, we tackle it by making sure that.
Namad is at the center of the connection point for all of our members.
And, you know, ultimately it has to pencil, right?
It doesn't matter whether it's the deal or course, whether it's the banking, you
know, no matter what it is, you know, even with our operational partners, the
software has to make sense.
And so if that is the case, oftentimes, because of the relationship with Namad,
there is a likelihood to engage.
And we see a lot of success in regards to capital attainment, as well as, as you
mentioned, floor plan and credit lines.
But a big part of it is, is our members come prepared, right?
Hey, here's what I'm doing.
Here's the volume that I'm moving.
Here's what I need.
Oftentimes those conversations go on for, you know, a few, a few weeks or months
after the conference, but I'm having a report that a lot of great business has
done as a result of those relationships that happen or start at the conference.
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So we're pumped for that.
It's actually now I'm excited to say it's in my backyard in a way.
I'm not in Miami, but I'm close enough.
Yeah, we're close to you.
Well, you don't see before you go any further.
You do know there's a karaoke requirement at the conference.
I mean, you got to sing a Duran Duran song.
You guys are going to close shot, my friend.
If I say I don't want to.
Hey, no excuses, man.
I'll go up there with baby.
But we're going to say all right, I like it.
Perry, when when you when you go to sleep at night, wake up, like, what is
your what is your definition of success?
Like, if you look back in 35 years, what what are the KPIs
you're looking for to impact in our industry?
So you'll see, I'm really focused on five things.
OK, and this is my these are my north stars.
Not just mine, but the organization's one is retention, right?
Retention of our current dealer body.
We really encourage our dealers.
Hey, if you're going to sell, you know, look here at this dealer body first.
Also retention of relationships.
You know, we work very hard at relationships with our OEM partners,
with our banking partners, with our operational excellence partners.
We take it very serious.
We view it as an extension of the name of family.
So retention, expansion.
You know, the goal is eventually to come up with number, a number of capital
models that can help people, individuals get into to business, right?
Third is training.
You know, we want to make sure that we're adding value for all of our members.
That's why we launched the name of dealer ownership Academy.
We also have a next gen portion of our membership to help dealer candidates,
sons and daughters of dealers, you know, really get ready for that next level
of ownership advocacy.
As you and I talked about, like legislative and regulatory work,
making sure we're representing for our dealers and helping them protect their
business. And then the last is awareness, which is why I'm here today is to make
sure that people know about our organization and what we have to offer.
You know, strangely enough, there are a number of individuals that I bump
into, even though name has been around since 1980, that haven't heard of us.
And so we just want to get the word out to everyone to let them know, hey,
we'd love to have you as part of the family and keep in mind to the name
is National Association of Minority Automobile Dealers.
But we have everybody at our conference and everybody is a part of our family.
It's not just a minority conference.
It's focused on making sure that minorities have the opportunity
to make those connections.
But, you know, we expand across all race, gender, you know, all of those things
when it comes to the name of family, because we believe in coming together
for strategic growth and strategic alignment is the only way to do that.
How do you make that a positive sum experience where you can expand the pie?
Like, like actually, tactically, is this by a way of, you know, opening up
additional points of creating, operating partners, engagements?
Like, what is the best framework that because, of course, anything positive
some will always yield just better results than something that zero sum, right?
Zero sum is I'm taking from you and I'm getting myself.
Positive sum is we're growing the pie together.
One plus one equals three.
So how do you achieve that from your position?
It's a delicate balance, right?
Because these are entrepreneurs and, you know, I mean, one of the dealers
that was on the stage with me last year, you know, the guy had been a dealer
for 20 plus years, he'd earned the right to have a payday.
And when he's looking to sell, you know, he's going to get his payout.
But fortunately, he was he did what we asked, you know, those dealers to do.
Looked at the name add dealer body and he was actually able to sell this
dealership to a gentleman who at one point worked at his dealership, who had become a dealer.
So we really try to highlight those stories.
But if if one of our members sells to, you know, outside of the name add family,
you know, we understand.
And so some of those points do go away from the name add dealer body.
But what we try to do is make sure that whether it's an open point
or a buy sale that our members are in position to compete for those opportunities.
And we're having pretty good success.
We've got a lot of work to do on the capital side.
But ultimately, the goal is growth.
And fortunately, over the last several years, we have seen growth since, you know,
we lost ground like everybody did in 2008 in the Great Recession
in a little bit during COVID.
But we have we have expanded.
And the good news is, is, you know, those dealers are the report out is for some
of the OEMs that are the most loyal when it comes to the capital finance arms
doing very well in terms of sales volume, you know, customer satisfaction,
utilizing different models like one price, one person, one hour.
There's so many success stories, man.
But ultimately, you have to just continue to prepare the bench and make sure
that when the opportunity comes up that they can get out there and compete
on the floor for the starting spot. Perry, how do you create more Erica Tiffany's?
Erica was on our podcast and she she it was I mean, incredibly insightful episode.
Just she spoke about her journey, how she operates, how she manages.
She's come a long way.
And so how do you create more Erica Tiffany's?
Like, what is the playbook for that?
What's the formula?
So what's funny is Erica is involved in the name of the dealership Academy.
So what you do is, I believe you.
Wow, so that was a layup.
By the way, that was not premeditated.
I didn't know that. No, I love it.
I love it because you know what?
The way we do it, you'll see, is we we add fuel to the fire.
You take someone who's a high performer like Erica and you say, hey, you know what?
Let's let's expose you to fixed operations.
Let's expose you in detail to the parts department.
Let's expose you to cash management and cash forecasting.
Let's hey, let's connect you with some potential capital partners.
Hey, let's let's help you get some regional contacts with OEMs that you may be interested in.
And then one day she comes to the conference and she's a dealer.
And I know that's going to happen, so she's a rock star, of course.
And we and we have, you know, several that are, you know, maybe not
shine as bright as Erica, but, you know, that are on that journey as well.
And so we are really just trying to position
they mad as the to add more fuel to these individuals
that are already significantly talented in our industry.
That's well said.
Do you think that expanding access to dealership ownership?
We know this is a massive wealth builder in the country.
It's an opportunity builder.
Do you think it's more of an education issue, an access issue, you know, split equally?
Like if we had if we had, you know, if we were able to expand
just like stellar education across different regions,
if like, would that impact dealership ownership?
Like where are you?
We're talking about the now, the now and the urgent is let's expand access.
Great. But what about like root cause, right?
Where is how can we kind of, you know, expand that?
And is it more of like an access or education or all of the above?
What's your take on that?
Matt, well, listen, I'm like yourself, right?
I'm a operations guy at heart.
And I can tell you there is a difference
between working in the business and working on the business.
Oftentimes, I had to go and chase the education.
I had to spend time out of the store,
bring back ideas that intellectually challenge, you know, our status quo.
And so to me, that education is massively important.
And that's why I think, you know, organizations like name that are important
because we bring together, you know, the NAA dealer Academy,
we bring together the NCM general manager training partners.
All of us are working for the same goal
and that's to make sure that we prepare the next generation of dealers.
And so if you're educated on business, that always helps, right?
If you know how to read a financial statement
prior to becoming an auto dealer, that obviously helps.
But I also think that, you know, in this industry,
continuous learning is a must because, I mean, just look at AI.
I mean, we weren't even talking about AI five years ago, right?
I mean, not to the level that we are now.
So I think business owners in general and dealers specifically
have to be dedicated to what I call an automotive PhD.
And that means that it never ends.
And so I am a big proponent of education.
And that's why training is one of the north stars for our organization.
You know, we we have the real tough discussions about, OK, I mean,
for instance, this FTC pricing, right, with all of the activity that's going on.
What does that what does that mean for you as a dealer?
How do you attack that?
You know, whether it's EVs, you know, how do you balance making the investment
versus, you know, the the current demand of the customer.
So you got to have a place that rallies around the right education.
And we're not the only ones that do that.
But we are one of the organizations that I believe do it and do it very well.
And and similarly, like when I think about my prior business, right,
it was a venture capital back business.
I never even heard the term venture capital till like my mid 20s.
And guess how I heard about it?
I was around the right people that knew about that.
Like my dad didn't teach me that my dad taught me a lot, not that.
And so and I ended up and that ended up taking me to a different sphere.
And eventually I got here.
So I think the point I was trying to make is like that education,
of course, the peer group around it. Oh, yes.
It's just it's immense the the network that you build
when you're around the right people in the right networks.
So I've been involved with NAMAD for a very long time.
I'm a former secretary, vice president and president of the NAMAD
next gen organization, which is a part of the overall NAMAD organization.
Next gen served for me what you're speaking of in terms of a peer group
that challenged, you know, my connections that gave me exposure
to be in the room when these important conversations were happening.
And so if you are in the business and you are maybe,
you know, a manager, a sales manager or you're a BDC manager
or you're a service director or, you know, service advisor,
you know, that that next gen opportunity is great
because whether it's virtual or in person, it creates those opportunities.
Like you said, to be exposed to what some other people are doing
and the expertise that comes in the room at these functions.
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Very powerful and shameless plug.
We all have our own version of that here.
Cardioship guy called CDG Circles.
It's our own digital peer group, like a 20 group for 10 minutes per day.
CDG Circles.com. That was a quick one, right?
Oh, thanks.
Like that, right?
Perry, so you mentioned that you're falling short on brand awareness
or not falling short, but you could do more to get the name out there, right?
You mentioned that one dealer that doesn't know about you.
You've been around since 1980.
Your name that has is there.
Where else do you feel like you're not quite there?
Like where is there a big gap in progress?
Like what initiative specifically?
I'm curious, like what are the, you know, we spoke about a lot of the amazing.
This is working, but like what's a challenge that you're trying to solve right now?
Who knows? Maybe I'll speak it in here into existence and someone will hear
and they can support. I mean, I don't even know.
No, absolutely.
So I will tell you, you mentioned it earlier that these deals in the blue sky
are getting they're getting up there, you'll see.
And so I internally, right?
We have a goal of the name and capital path initiative,
which we've already started on.
And it's about being able to bring parties together
to have different capital paths for dealer candidates.
You know, I want to make sure we have the capability for, you know,
someone who may not have all of the funds to plug into a capital structure
to get into a deal and earn either, you know, meaningful participation
or 51 percent plus, right?
Also, how do we plug into some of these other capital
operating options with our membership to help them expand their
footprint, footprint, even for existing dealers.
So we're really working hard on that.
I like to say we we're we have finished one point.
Oh, I'm looking forward between 26 and 27 to come back with two point.
And and hopefully we can be super assertive on that.
And maybe next year at the conference, you know, be able to make some major
announcements, but even this year, you know, there are, for example,
some private groups that will be talking to individuals
about opportunities for ownership and what that might look like with them.
So when we get to the point where we have that formalized
and we have options, I think that's what will be super dangerous
in terms of really being able to to help these great dealers
get to the next level of ownership.
Perry, may Matt is not actually taking any ownership and dealerships, right?
No, we are not taking ownership and dealerships.
We're we're simply here as a connector and a supporter.
You know, at the end of the day, our job as a nonprofit, right,
is to make sure that we are servicing our members.
And that's what we do.
Yeah, I just as it has ever crossed your mind or the organization
to like launch a fund that can help, you know, seed and partner up with operators.
It feels like I don't want to call it a no brainer, because not everything has,
you know, that was in the details.
But has that ever crossed your mind to like launch that type of fund
that can like seed fund, you know, potential operators on like deals
that are sub 10 million blue sky or whatever you want to call it.
Yeah. Listen, are you looking at my notes?
What are you doing? OK, you give me the word.
Listen, I'm just I'm just thinking big, like I'm just saying, like,
dude, you can literally launch a fund and seed a ton of people to get out.
You know, give them a launchpad.
Listen, let it be known that you just gave away the secret sauce on the big man.
Yes, you see, we're working on that.
And, you know, what we really want to do is make sure we vet it out.
And, you know, that that means having some, you know,
memorandums of understanding and a lot of different things, right?
But if I were to hint around it,
the year you are very hot in terms of where we want to go.
We believe that that's where we should be.
And so, you know, we have our current chairman Ray Freej, Junior,
you know, definitely believes in that in our incoming chair, Robert Valdes
also believes that. And so we're going to stay the course with that.
And hopefully I can come back on and we can talk about
what we have accomplished versus the aspiration.
But you are 100 percent hot on amazing, amazing.
And it's top of mind for me because, you know, we just launched our own fund,
which is investing in auto tech, very selectively.
We've been doing this for years to be clear, but we just simply said, hey,
on select deals, we can bring it to our wider audience and let them participate
in the upside of these companies where there are any ways to help
and create the value by being a customer, right?
Many tech vendors and stuff like that.
So, you know, I just a cross my mind.
It's like, hey, there's a need for capital.
You could do a fund. So, Perry, what didn't I ask you?
I mean, of course, we spoke about the name at conference.
I have it here is in is in Miami Beach at the Found Blue Hotel, August 11th to the 14th.
August 14th. It's a real big shameless plug.
You know, what's the why in terms of why you should come to the conference?
And that is we're the only conference, only conference that I know of that many
of the industry professionals know of where we a really focus in on inclusive economics.
If you're a dealer candidate and you're interested in being a dealer one day,
you get a chance to interface with automotive executives about those opportunities.
We've got Richard Montanez, who's going to be there as a keynote speaker for our luncheon.
I don't know if you've heard this guy's story,
but he's worked his way from a janitor up to VP of Frito Le PepsiCo
and created Flaming Hot Cheetos, which absolutely is the benchmark for business
in terms of inclusive economic.
He really took a cultural experience in the Hispanic community
and made it an icon of a of a business product of Montanez.
Yeah. And then, you know, also, we're going to be honoring some titans
within the industry in terms of automotive professionals.
So many great things.
We're going to be talking about China, FTC, all this good stuff.
So you can go to Namad.org and you can find out a lot more about the conference and register.
We are in Miami at the Found Blue Hotel.
You know, as we were talking about before, you know, you will have a little time
to be on the beach, you know, shameless plug, but, you know, so we would love to have you.
We're always looking for new faces and new partners.
Last year, we had our biggest attendance of new participants in the conference.
So come one, come all. We'd love to have you.
Amazing. Amazing work.
Perry Watson, the fourth president of Namad.
Perry, thanks so much for coming on the podcast.
This was great. Thanks so much.
Hey, man, thank you.
You get ready with those Duran Duran songs.
Hungry like a bull.
Baby, don't pass it.
Get ready.
All right. Hope you enjoyed that episode.
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About this episode
NAMAD president Perry Watson IV talks about how aspiring dealer owners are still reaching ownership despite today’s high costs and consolidation. He breaks down the different entry paths—solo capital, operating partners, and private equity—and why there’s no single “straight line” anymore. Watson emphasizes NAMAD’s business-case pitch to OEMs, tying strong dealer performance in minority and emerging markets to measurable sales and loyalty gains. He also highlights the NAMAD annual conference as a hub for connecting dealers, OEMs, and banks to improve floorplan and credit access, plus his “north stars” around retention, expansion, and training.
Today I'm joined by Perry Watson IV, President of NAMAD.
Dealership consolidation is accelerating, and the price of entry to ownership has never been higher.
Perry breaks down the numbers behind it, including how over 40 percent of new vehicle sales at some brands now come from minority consumers, and why one manufacturer doubled a dealer's sales volume within two years just by getting ownership representation right.
Topics:
01:25 Consolidation's Hidden Downside.
02:00 The Academy Training Next-Gen Dealers.
04:10 No Straight Path To Ownership.
04:50 The Business Case For Minority Dealers.
10:00 The Conference Where Deals Get Done.
14:45 The Mentor Who Sold To His Employee.
16:25 How Erica Tiffany Became A Dealer.
25:50 The Secret Fund NAMAD Is Building.
This episode is brought to you by:
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2. Openlane - The world’s best online dealer marketplace for used cars, bringing you exclusive inventory, simple transactions, and better outcomes. Learn more @ here.
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