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Why Dealers are Paying Ransom for their Own Customer Data | Matt Leone, CEO at DriveCentric

Why Dealers are Paying Ransom for their Own Customer Data | Matt Leone, CEO at DriveCentric

Car Dealership Guy Podcast Jul 16, 2026 38 min
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About this episode

Dealers are trying to control their own software and customer data, but the conversation argues that the AI era and fragmented systems make DIY approaches risky and expensive. Matt Leone of DriveCentric describes why groups moved toward “best and breed” tools, how vendor access can feel like “ransom,” and what a dealer-controlled, vendor-secured data environment looks like. The episode also covers tech consolidation, integration requirements, and how CRM should connect sales, service, and F&I for a smoother customer experience.

Cars: Ford Bronco
Technical Too Afraid to Ask
Company

AutoNation

"And there's still some out there doing, I mean, AutoNation was famous for when I have [80.7s] everything controlled and managed and built by myself."

AutoNation is a big company that owns and runs lots of car dealerships. Here, they’re mentioned as an example of a dealer group that used to build and manage its own software instead of buying from outside companies.

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Term

best and breed software

"And then you started to see probably in the last 15, 20 years, more dealerships kind of [89.0s] say, hey, look, I'm going to go with best and breed software out there."

“Best and breed” means you don’t use just one software system for everything. Instead, you pick the best tools from different companies for each job a dealership needs to do.

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Term

AI evolution

"And then all of a sudden this AI evolution came along and you've run the risk of... [99.0s] Vibe coding."

They’re talking about how AI tools and software have been changing quickly. The point is that dealerships that built their own systems a certain way may struggle to keep up with what AI can do now.

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Term

vibe coding

"And then all of a sudden this AI evolution came along and you've run the risk of... [99.0s] Vibe coding. [99.6s] It didn't work with dealer groups building their own software."

“Vibe coding” means writing software more by guesswork and quick prompts than by careful design and testing. The speaker is saying that approach can backfire, especially when dealerships need reliable systems.

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Topic

AI Builders

"I mentioned this, but we have a channel in circles specifically dedicated to dealers [134.7s] who are building software. [135.7s] It's called AI Builders."

“AI Builders” is a group/channel where dealership people share and discuss building software, especially with AI. The host points to it as an active place to learn from others.

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Term

integrations

"You could do it cheaper. [147.6s] You could avoid a lot of fees and costs and integrations."

Integrations are how different software programs “talk to each other.” The speaker is saying you can avoid some extra work and expense by reducing how many systems you have to connect.

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Term

first party data

"Dealing ships were saying, I want to control my first party data as my number one asset. I've all this DMS data, all this consumer data and 10,000 vendors have access to it."

First-party data is customer information a dealer collects directly itself. It’s the dealer’s “own” customer data, not data it gets from other companies.

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Term

DMS data

"I've all this DMS data, all this consumer data and 10,000 vendors have access to it. That's not good."

DMS data means the information inside a dealership’s computer system. It usually covers things like customer details, leads, and service or sales history.

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Term

ransomware

"And I'm paying ransomware to all these DMS providers to get access to my own data. That's not good."

Ransomware is a cyberattack where someone blocks access to your files and demands money to unlock them. Here, it’s being used to describe dealers losing access to their own customer data.

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Term

Snowflake

"They went off and built their data lakes, their snowflakes, their data bricks, their sort of environment... So I want to put it back in snowflakes."

Snowflake is a cloud service companies use to store and analyze data. Here, it’s being referenced as the place where dealers want their customer data to live so they can use it for reporting and marketing.

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Term

Databricks

"They went off and built their data lakes, their snowflakes, their data bricks, their sort of environment to say, I want to control my data."

Databricks (what they call “data bricks”) is a tool for working with lots of data. It helps companies process and organize data so they can analyze it or build applications.

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Term

data lakes

"They went off and built their data lakes, their snowflakes, their data bricks, their sort of environment to say, I want to control my data."

A data lake is a big storage area where you dump lots of data in one place. The goal is to keep it so you can analyze it later and build new reports or tools.

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Term

CDPs

"And then CDPs popped up and said, okay, well, I'm going to have to cleanse this data. I'm going to put a CDP so I could then say, I have access to marketing on top of that data."

A CDP is a tool that brings customer information together from different systems. It helps clean and organize the data so marketing teams can use it more effectively.

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Concept

M&A

"So routine is our process where your midsize groups, since they're doing a little bit of more M&A, they're seeing other vendors, they're getting different talent, they're seeing different things that work and don't work."

M&A means one company buying another or two companies combining. For car dealer groups, it can slow down decisions because there are more people involved and more systems to coordinate.

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Term

CRM

"It cannot be looked at where the most people look at a CRM, which is going to manage my sales team for new and used cars and manage my leads. That is the classic term for CRM since the 80s."

CRM is software that helps a dealership keep track of customers and sales leads. It’s used to follow up, organize conversations, and manage the sales process for new and used cars.

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Term

FNI leads

"I can manage my service leads. It can manage my FNI leads. It can manage my declined service leads."

FNI means finance and insurance. It refers to the add-on products the finance office sells, and the leads for those products.

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Term

extended warranty

"913.7s] Extended warranty, a maintenance package. [916.4s] Why isn't it across the board used?"

An extended warranty is an aftermarket warranty that extends coverage beyond the factory warranty period. Dealerships often sell it as part of the finance-and-insurance (F&I) menu, and it’s commonly tracked as a separate product category in lead management.

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Term

maintenance package

"Extended warranty, a maintenance package. Why isn't it across the board used?"

A maintenance package is a bundle of scheduled service work, like routine maintenance for a set time or mileage. Dealers sell these as a plan to keep customers coming back.

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Term

BDC

"Let's stop thinking of sales and marketing as just the salesperson or your BDC."

BDC usually means the dealership’s business development team. They help contact leads and follow up so potential buyers don’t fall through the cracks.

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Concept

engagement platform

"And if you are an engagement platform and you're engaging with consumers, why am I only talking to the consumer one tenth of their journey that they do every five"

An engagement platform is a system that helps a dealership communicate with customers throughout the whole process. The idea is that it shouldn’t only cover one small part of the customer’s journey.

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Term

VUCA

"[1002.7s] Like I look at a funny term that I use throughout my whole career. [1006.1s] It's called VUCA."

VUCA is a four-part acronym for volatility, uncertainty, complexity, and ambiguity. It’s a way to describe confusing, fast-changing situations where planning is harder.

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Term

fixed operations

"You have your fixed operations. You have your FNAI department. You have your parts."

Dealers split their business into two big buckets. “Fixed operations” usually means the service and parts side—like repairs and maintenance—rather than selling cars.

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Term

FNAI department

"You have your fixed operations. You have your FNAI department. You have your parts."

Dealers often have a finance-and-paperwork team. “FNAI” is shorthand for the department that helps arrange financing and related add-ons when you buy a car.

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Term

opt-in, opt-out

"All of them talking to a customer, all with different payment processes, all with different communication, opt-in, opt-out."

These are customer permission settings for marketing messages. Opt-in means they agree to get them, and opt-out means they can stop them—so the dealership has to follow the customer’s choice.

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Term

system of record

"If we don't directly manage it, how do we integrate it where we become the system of record?"

A “system of record” is the one place that’s considered the official truth for customer information. The goal is to avoid having different departments store conflicting customer details.

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Concept

connect sales and service

"The pain point is, how do I connect sales and service? How do I connect sales to FNAI to service?"

The idea is to make sure the dealership treats you as one customer across both buying and service. Instead of sales and service acting separately, they should coordinate so messages make sense when you’re in the shop.

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Term

fragmentation

"You're left with systems that aren't talking to each other, [1383.2s] fragmentation, silo departments, it's got to be a better way."

“Fragmentation” here means the dealership’s computer systems don’t share information with each other. So different teams end up working with separate, incomplete data.

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Concept

monopoly on the system

"There's 23 decades worth of auto tech that's spung up [1369.0s] with four or five prominent players that have had a monopoly on the system [1373.0s] for quite some time, tapped acquiring companies, never stitched them together."

He’s saying that a few big companies controlled the main tools and data pathways dealerships rely on. When that happens, it’s harder for newer tools to connect everything together.

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Term

silo departments

"You're left with systems that aren't talking to each other, [1383.2s] fragmentation, silo departments, it's got to be a better way. [1386.6s] And so there's a lot of cool new tech companies that have sprung up,"

“Silo departments” describes an organization where teams operate independently and don’t effectively share information. In dealerships, this can slow down follow-up and reduce the quality of the customer experience.

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Car

Ford Bronco

"I bought my son a Ford Bronco recently, just turned 17. [1426.7s] I bought him a Ford Bronco. [1428.4s] When I go in to buy a car, of course, I'm doing the digital as much as I can."

The Ford Bronco is a rugged SUV that’s meant for off-road driving. Here, it’s just an example of a car he bought using the kind of digital shopping process dealerships want to support.

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Term

digital retailing

"[1583.4s] software or that software for your website or your digital retailing. [1587.6s] And you're not going to get co-op for this or that."

Digital retailing just means buying a car online. Instead of doing everything in the dealership, you use a website or app to go from browsing to placing an order.

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Term

co-op

"[1587.6s] And you're not going to get co-op for this or that. [1590.0s] And I need all the data sent back."

Co-op is shared advertising funding. It’s money the car brand and the dealer split, and some activities don’t qualify to get that help.

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Term

OEM

"[1598.7s] Do I think the OEMs have complicated it with their own vendors? [1602.6s] Yeah. Toyota has got their smart path and their signals."

OEMs are the car companies themselves. They often control what tools dealers must use and how data and software integrations work.

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Term

smart path

"[1602.6s] Yeah. Toyota has got their smart path and their signals. [1605.8s] And you've got all these different complexities that are out there of different tools."

“Smart path” sounds like Toyota’s branded system for how dealers handle certain digital steps. The speaker is saying these kinds of branded tools can make integrations more complicated.

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Term

signal

"[1602.6s] Yeah. Toyota has got their smart path and their signals. [1605.8s] And you've got all these different complexities that are out there of different tools."

“Signals” likely means the data messages a system sends—like tracking updates—so the automaker and dealer can stay in sync. It’s part of why the software setup can get complicated.

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Brand

Toyota

"[1602.6s] Yeah. Toyota has got their smart path and their signals. [1605.8s] And you've got all these different complexities that are out there of different tools."

Toyota is the car brand being used as an example. The point is that some automakers provide their own digital tools dealers have to work with.

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Term

RPS

"[1628.8s] and build their own software, not the apps we were talking about before, [1631.8s] but any RP or a DMS. [1635.8s] But yeah, fraught with complexities with OEMs."

RP here sounds like a software platform that helps run the dealership’s sales process. It’s the kind of tool that supports how deals get built and processed, not just a simple app.

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Term

form factor

"[1675.2s] What do you think about form factor? [1678.1s] I know right now there's been, I'd say, a bigger push into audio"

“Form factor” just means what the device or input method looks like and how you use it. Here, they’re talking about whether it’s easier to enter information by speaking instead of typing.

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Term

AIS

"[1699.1s] So just quicker than typing in many cases. [1702.2s] Are you investing a lot in audio? [1704.7s] Do you think that that's just, yeah, like a quicker, more effective way [1707.4s] for a salesperson putting information? [1709.8s] Think about it. I mean, I remember, I remember sitting customers down [1712.1s] computer, hey, like put all your information, this long ass app. [1716.2s] You could just literally look at a screen say da, da. [1719.2s] And this isn't Siri, we're talking about. [1720.7s] This is much better technology that boom, pre fills it in like 15 seconds."

“AI” means computer software that can do smart tasks, like understanding what you say. In this context, it helps dealers fill in customer info quickly instead of making people type everything.

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Term

pre fills

"[1719.2s] And this isn't Siri, we're talking about. [1720.7s] This is much better technology that boom, pre fills it in like 15 seconds. [1725.1s] We rolled out last year, a feature, our AI is called Genius."

“Pre-fills” means the system fills in parts of a form for you ahead of time. That way, people don’t have to type everything from scratch.

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Brand

DriveCentric

"[1725.1s] We rolled out last year, a feature, our AI is called Genius. [1730.4s] And then dealerships branded their own term or name. [1733.1s] Genius has been around in DriveCentric now 67 years. [1736.6s] In Genius, we built a Genius Voice Assist feature."

DriveCentric is a software system dealerships use. In this episode, they’re talking about how it uses AI to help capture customer details faster, including by voice.

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Term

Genius Voice Assist

"[1736.6s] In Genius, we built a Genius Voice Assist feature. [1740.4s] It just comes with your package of DriveCentric. [1742.9s] And when you have Genius Voice Assist turned on,"

“Genius Voice Assist” is a voice feature inside the DriveCentric system. Instead of typing everything, a salesperson or customer can speak, and the software fills in the information for them.

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Term

voice to text

"But if you could have a voice to form, voice to text, so much better. [1823.4s] And you could just jot down a couple of things were in your head"

Voice to text means you talk, and the device turns your words into typed text. It can save time when someone needs to write down notes quickly.

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Brand

Ray-Ban glasses

"The big one where I'm seeing a lot of investment as well go into is the Ray-Ban glasses. [1837.3s] Yes, that's a bit more I think that there's time for that."

Ray-Ban is a well-known glasses brand. The speaker is talking about using smart-glasses like Ray-Ban’s as a tool for work—rather than just regular eyewear.

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Term

multi-point inspection

"But your technicians need to be able to do a multipoint inspection and pick up on [1856.1s] did, in fact, the tech show everything in the car."

A multipoint inspection is a step-by-step checklist a technician uses to look over a car in many different spots. Instead of just saying “it looks okay,” they record what they checked and what they found.

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Term

AI glasses

"And can you use something like an AI glasses to be able to detect [1867.5s] did they do it or not and let them redo it if they missed something?"

AI glasses are smart glasses that can use a camera and computer smarts to understand what you’re looking at. In this context, they’d help a technician make sure they didn’t miss any inspection steps.

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Term

23 year contract

"And if that is the wrong vendor, you got to question that if you're in a 23 year contract and you're just stuck. Is that the right answer?"

A long “contract” here refers to a dealership’s agreement with a technology vendor, which can lock the dealer into a specific system or workflow. The guest’s point is that being stuck for years makes it harder to switch to better tools even when the industry changes.

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Company

Drive Sanctuary

"Amazing said. Matt Leone, Drive Sanctuary Matt, thanks as always for coming on."

“Drive Sanctuary” sounds like a name that got transcribed incorrectly. It’s probably referring to the same dealership software brand the guest was talking about.

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