Q1 Wrap-Up & Industry Outlook
Dealership
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THE FRONT ROW
The official magazine of the WASHINGTON STATE Independent Auto Dealers Association
707 Auburn Way South | Auburn, WA 98002 T: 253-735-0267 staff@wsiada.com | WSIADA.COM
EXECUTIVE BOARD
Badie Darwazeh, Board President Seattle Auto Haus | President@wsiada.com
Randy Fletcher, Board Vice-President
In-N-Out Auto Sales | VPresident@wsiada.com
Emil Scarsella, Board Treasurer
Town & Country Auto Sales | Treasurer@wsiada.com
J.T. Curry, Board Secretary
Motors Northwest | Secretary@wsiada.com
Wasim Azzam, Chairman of the Board
All Right Auto Sales | Chairman@wsiada.com
CHAPTER PRESIDENTS
Tony Bonnallie – North Cascade Mission Motors | NoCascade@wsiada.com
Denis Costin – North Sound Independent Motors | NoSound@wsiada.com
Dominic Adams – South Sound Gene Pankey Motor Co. | SoSound@wsiada.com
Rachel Frankel - Vancouver
Top Auto Brokers | Vancouver@wsiada.com
Vacant Position – Yakima Yakima@wsiada.com
Julie Lindstrom – Tri-Cities
Bulldog Motors | Tri-Cities@wsiada.com
Vacant Position – Spokane Spokane@wsiada.com
AT-LARGE BOARD
Ken Williamson, Board President (Emeritus)
John’s Auto Mart, LLC
WSIADA STAFF
Rick Olson, Director of Operations
Mila Froman, Membership Manager
Mary Walton, Accountant
Lane Schulz, Retail Associate
Production Editor
Professional Mojo
Copyright 2025 | WSIADA
2 DIRECTOR’S MESSAGE: SHIFTING GEARS: Q1 WRAP-UP & INDUSTRY OUTLOOK
The first quarter of 2025 presented challenges for Washington’s independent auto dealers, but with tax season approaching, new consumer resources on the WSIADA website, ongoing legislative monitoring, and industry events like the DAA Portland Grand Opening, there are opportunities for growth and improvement ahead.
6 DEALERSHIP CUSTOMER EXPERIENCE: WHAT NOT TO DO
Enhancing dealership customer experience requires clear communication, ethical practices, smooth operations, and personalized service, ensuring customers feel valued and fostering long-term loyalty.
8 CARRYOVER RATE IMPORTANT FOR AUTO RETAILERS
Effective inventory management in auto dealerships requires leveraging AI, predictive modeling, and data analytics to minimize carryover risk, optimize pricing, and maximize profitability in a competitive market.
12 IT’S TIME TO REVOLUTIONIZE USED-CAR ROIS
Adapting to declining ROI in auto retailing requires dealers to embrace investmentmanagement strategies, predictive data science, and variable-management approaches to optimize usedvehicle profitability in an evolving market.
18 WSIADA DEALER MEMBERSHIP
Get on board and see the difference! Complete a membership application today.
19 READ & RESPOND QUIZ
Monthly quizzes offers one hour of continuing education credit toward the dealership’s required annual renewal.
DIRECTOR’S MESSAGE
Shifting Gears: Q1 Wrap-Up & Industry Outlook
BY RICK OLSON, DIRECTOR
The first quarter of 2025 sales ended at the end of this month. It’s my hope all the dealerships in our state have had some successful sales and opportunities for growth during this time. When I met with several dealerships during the Chapter Meetings in November and December, the consensus was bleak.
A dealer in Vancouver admitted during a visit they hadn’t sold a car for the first 16 days of 2025. There is an ‘ebb and flow’ for the auto industry depending on the time of the year - Thanksgiving/Christmas, tax season, back to school - all of these are when a customer doesn’t consider buying a vehicle, so it’s understandably tough for dealerships to make a sale during that time.
With tax season, consumers tend to look to buy newer vehicles, motorcycles, vessels or off-road vehicles to prepare for Spring and Summer. I hope that things will turn around for our industry shortly, but time will tell.
NEW CONSUMERS PAGE
The WSIADA launched a new page on our website at the beginning of the year to help consumers with questions they have about purchasing vehicles in our state. This page is designed only to give the basic understanding of terminology and processes that seem foreign to them as they stop a dealership to purchase a vehicle.
There are 12 common topics for the consumer to understand about the auto industry and why dealerships perform these topics in daily general business. Right to Recission, Buyer’s Guide’s, Test Driving, and Documentary Service Fees are some of these topics that can confuse a consumer when they want to purchase a vehicle. Reduced confusion will make the transaction process easier for dealerships.
On the left side of the Consumers page is an interactive map so when a consumer is looking for an Independent Auto Dealership in their area, they can select from that map to scroll through our members and select the dealership with whom they want to do business.
Now here’s the twist: Only active dealership members of the Association will be listed on this map. This is a powerful, new, member benefit that can generate business for dealerships in each county.
Finally, at the bottom of the Consumers page there are reporting options for Unlicensed Dealers (i.e. Curbstoners) and bad actor dealerships so the consumer can notify the Association and allow us to follow-up with proper agencies or work with the dealership directly to correct.
LEGISLATION
We are now approximately halfway through the legislation session for 2025, and the legislators are lobbing some interesting bills to make revenue in the state. As of the writing of this article in February, there are not any bills directly affecting the independent dealers, but we are watching constantly with our Government Affairs team in Olympia.
As a reminder, the state of Washington has a nearly $12 billion budget deficit over the next four years and Governor Ferguson has been clear the state is not going to raise taxes to cover this.
Agencies such as the Department of Licensing are preparing for reduced staffing if the budget isn’t stabilized. This will make it even more difficult for dealerships to get the daily support you need. Most of the calls the WSIADA has received in the past years are always related to something with the Department of Licensing, whether it’s not receiving renewal plates, tabs or having issues with DRIVES and the e-Permitting system. With the latter, unfortunately, the Association has no access to help a dealer and we redirect to the driveshelp@dol.wa.gov email support.
MAG AUCTIONS/DAA PORTLAND
We will be attending the DAA Portland Grand opening celebration on March 20th. We hope that dealers from all over Washington try to visit this new auction location for the event. The plans that Bob McConkey and GM Mike Stockton have for the remodel are astounding and the finished facility will be amazing. Check out the advertisement on the back cover for more details in this issue.
Sincerely, Rick
REGISTER NOW for 2025 NIADA CMD Courses
Registration is open for the two 2025 NIADA Certified Master Dealer program classes.
The most comprehensive training for independent dealers will offer individualized programs for retail and BHPH dealers. Registration and information about the program is available at niada.com/certifiedmaster-dealer.
“It doesn’t matter how long they’ve been in the business or how new they are in the business, I’m confident that the CMD program will have information and takeaways that’ll better their business. One hundred percent,” said Donald Sullivan, Jr., owner of Sullivan Auto Trading in Fredericksburg, Virginia, 2024 NIADA National Quality Dealer of the Year and 2016 CMD graduate.
“Through the CMD program, you have access to knowledge and insight on things that are specific to the car industry. You get material to take back that can actually help you throughout your journey of being a car dealer. Right now in our industry, there are no other certifications available. Being a CMD really puts you on the map and sets yourself apart from other dealers.”
The retail CMD curriculum is a 3.5-day in-person class, covering deep dives, best practices from experts and action plans for your dealership in:
• Inventory Management
• Reconditioning and Make-ready
• Marketing and Customer Acquisition
• Sales
• Finance and Insurance
• Customer Retention
• Service
• Dealership Accounting
• Employee Management
• Compliance
The retail course is March 24-27 at the Atlanta Hartsfield Marriott Hotel.
“After the course work, you will have the tools available to develop a plan custom-tailored to your store. You’ll also have access through NIADA education to trainers and consultants to help formalize a unique business plan,” said Ed Curry, NIADA Senior 20 Group Moderator and Consultant.
The four-day BHPH course is March 31 to April 3 at the DFW Airport Marriott in Irving, Texas, and will cover:
• Inventory Management
• Reconditioning and Make-ready
• Marketing and Customer Acquisition
• Sales
• Underwriting and Collections
• Customer Retention
• Dealership Accounting
• Related Finance Company (RFC)
• Employee Management
• Compliance
The cost for each course is $4,795 for NIADA members. For non-members is it $5,395. Current CMD dealers can register for $2,397. n
SAD NEWS IN MEMORIAM: KRILLIN
If you or any of your staff has come to our office in Auburn, attended a Chapter Meeting, or event we have attended over the past several years, you may have met with our office mascot, Krillin. Anyone who met him always received kindness and affection from him.
Krillin was a rescue puppy that was adopted by Mila, our Membership Manager, when he was 11 months old. We never knew his precise breed, but you could see Dachshund and Corgi when you looked at him.
Mila began to bring him to the office in 2019 and he loved the office environment, meeting the dealers and their staff when coming for supplies or to ask questions. Krillin would attempt to sit in on board meetings to get his fill of being around people.
He remembered people who came into the office, as well. Four years ago, one of our dealers had a staff member come by for supplies with their eight-week-old newborn sleeping peacefully in their car seat and Krillin introduced himself to the newborn without disturbing them.
A few months ago, the same dealership staff member came in with the now four-year-old child and Krillin knew exactly who it was and danced for the little girl - bringing her a smile.
Krillin was diagnosed with cancer in late 2022 but by July 2023 he was in remission. It didn’t stop his happy-go-lucky personality while undergoing therapy. Even when his cancer returned in November 2024, we did what we could to beat the cancer again for him.
Unfortunately, on February 3, 2025, he lost the battle to cancer and was laid to rest. He will be sorely missed with his playful temperament and hunting for the next person to give him pettings. n
“Every interaction in your dealership—big or small—shapes the customer experience and impacts loyalty. Clear communication, seamless teamwork, and thoughtful, personalized service are the details that keep customers coming back.”
Dealership Customer Experience: What Not to Do
BY BILL SPRINGER, DRIVESURE
Every interaction in your dealership— big or small—shapes the customer experience and impacts loyalty. To truly improve dealership customer experience, it’s all about the details: clear communication, seamless teamwork, and thoughtful, personalized service. Customers notice when things run smoothly and staff care about them, and that’s a big part of what keeps them coming back.
So to uphold that high standard of customer experience, let’s take a look at the common pitfalls dealerships face, and how to sidestep them to create a dealership experience that leaves a lasting impression.
COMMUNICATION ISSUES
We’ve covered customer communication in the past, marketing messaging to the importance of adopting text messages. So what are some common mistakes we see dealers make?
SLOW RESPONSES TO CUSTOMER QUESTIONS
When customers ask about appointments, parts, or repair updates, they don’t want to wait forever for an answer. Quick responses show you’re on top of things and respect their time. Make responsiveness a priority so customers feel valued and confident in your service – it goes a long way toward building trust.
UNCLEAR OR INCONSISTENT INFORMATION
If customers get different answers about repairs, prices, or timelines
from different team members, it’s frustrating and confusing. To avoid this, make sure everyone’s on the same page. Providing clear, consistent information at every touchpoint helps customers feel informed and builds trust in your dealership.
INADEQUATE UPDATES TO CUSTOMERS
Customers want to know what’s happening with their car, even if there’s no major progress. Sending regular updates (even if it’s just a quick message) helps set their expectations and reduces any anxiety. Keeping them in the loop shows that you’re attentive and that their vehicle is in good hands.
UNETHICAL PRACTICES
Nobody sets out to be unethical, but it helps to remember the types of behaviors that can ruin a dealership’s reputation.
PUSHING UNNECESSARY REPAIRS
Recommending services or repairs that customers don’t actually need can quickly erode their trust. Customers are savvy; they can often tell when something isn’t necessary, and they don’t want to feel like they’re being taken advantage of. By focusing on only what’s essential, you’ll build loyalty and show customers you’re on their side.
BAIT-AND-SWITCH TACTICS
Nothing frustrates customers more than seeing a low advertised price,
only to find out it’s not available or that unexpected fees are tacked on later. This classic bait-and-switch tactic can instantly destroy trust and credibility. Be upfront about pricing and potential add-ons so customers feel confident in your honesty from the start.
PRICE GOUGING
Charging excessively high prices, especially when customers have limited options, can lead to resentment and damage long-term loyalty. Customers want to feel they’re getting fair value, not being taken advantage of. Reasonable, transparent pricing helps maintain goodwill and keeps them coming back to your dealership instead of looking for alternatives.
OPERATIONAL ISSUES
Operational hiccups can create major frustrations for customers—let’s look at some common missteps dealerships can avoid.
LONG WAIT TIMES
Long wait times, especially without any explanation, can make customers feel their time isn’t valued. If there’s a delay, let customers know right away and explain why. A simple update goes a long way – it shows respect for their time and reduces frustration, helping to keep the experience positive even if things run behind.
LACK OF TEAM COORDINATION
Miscommunication or poor coordination within the team can lead to scheduling conflicts, unprepared staff, or even misplaced vehicles, leaving customers frustrated and confused. To avoid this, keep everyone in sync with clear communication and shared updates. When the team is aligned, customers experience smoother, more professional service with fewer hiccups.
SETTING UNREALISTIC EXPECTATIONS
Overpromising on repair timelines
or parts availability can lead to disappointed customers if things don’t go as planned. Instead of trying to please with ambitious estimates, provide realistic timelines and keep them updated on any changes. This approach builds trust and sets customers up for a positive experience – even if there’s a delay.
SILOS BETWEEN SALES AND SERVICE
When sales and service departments work separately, it can lead to missed opportunities and a disjointed experience for customers. Unified communication across departments helps prevent misunderstandings, ensures that customers feel known throughout their interactions, and opens doors for cross-department efforts, such as service-to-sales opportunities. Working together makes the experience smoother and more enjoyable for customers.
CUSTOMER SERVICE OVERSIGHTS
Even small service slip-ups can leave a lasting impression on customers, so it’s important to get the details right— here’s where dealerships sometimes fall short.
IMPERSONAL COMMUNICATION
Sending generic messages that ignore a customer’s history or preferences makes the experience feel impersonal and forgettable. Customers expect you to know them a bit more, especially if they’ve been there before. Tailoring messages to reflect each customer’s past visits, vehicle needs, or interests shows that you value their unique relationship with your dealership.
IGNORING CUSTOMER FEEDBACK
Ignoring complaints or suggestions sends a message that you’re not interested in improving their experience, which can push customers to look elsewhere. Actively addressing
feedback shows that you’re listening and want to improve. By responding to concerns and implementing customer suggestions when possible, you build loyalty and demonstrate a commitment to customer satisfaction.
DITCH THE “SPRAY-AND-PRAY” MARKETING APPROACH
Mass marketing with generic messages doesn’t work — it feels impersonal and often misses the mark. Customers expect more tailored, relevant communication that reflects their history and needs. Sending out blanket messages to everyone can make your dealership seem out of touch, especially when customers want to feel like they’re more than just a name on a list.
Instead, focus on personalized outreach. Use insights from past service visits, vehicle type, and individual customer preferences to craft messages that resonate with each customer personally.
DriveSure’s Maintenance Marketing System can help streamline this approach by delivering consistent, customized messaging across multiple channels. It makes it easy for dealerships to send the right message to the right customer, whether it’s a reminder about a specific service, a recall, or an upcoming opportunity.
By communicating in a way that feels direct and personalized, you keep customers engaged, build trust, and make them more likely to return for future service needs.
Taking these steps isn’t just about keeping customers satisfied— it’s about building real loyalty. When dealerships focus on clear communication, efficient service, and a personal touch, they’re creating a customer experience that stands out and keeps customer relationships strong. n
Carryover Rate Important for Auto Retailers
BY LEN SHORT
Auto dealerships face a perpetual challenge: balancing inventory to meet customer demand without overstocking, which can lead to carryover inventory. Carryover inventory— vehicles that remain unsold for extended periods—ties up capital, incurs holding costs, and often requires discounting and markdowns to clear the lot. This scenario impacts profitability and creates a cycle of reduced margins in today’s highly competitive market.
Traditionally, dealerships relied on historical sales data, market trends, and personal experience to manage inventory. However, those methods often lack precision and fail to account for rapidly changing market dynamics. A “back-tobasics” mentality, combined with partners that offer advanced data analytics, artificial intelligence, and predictive modeling – technological advancements that offer granular insights and actionable intelligence – are helping dealers ensure proper inventory risk management.
INVENTORY RISK MANAGEMENT IN THE DATA AGE
Car dealers today have a wealth of data to help sell vehicles from their lots. It’s no longer just about finding the vehicle identification number. Today, dealers are leveraging 190 different data points to help sell a car. They can even tell the type of weather a car sat under, which can help pinpoint slow sales during bad-weather weekends, for example.
A back-tobasics mentality partnerships are helping dealers ensure proper inventory risk management.
Every dealer has a different success rate with different models. Deep data and machine learning are helping dealers determine their true competitive levels against other dealerships down the road to move vehicles.
Because of the heavy competition, dealers for a long time have been focused on their days’ supply rates and days-to-sale rates for internal benchmarking for monthly goals.
This is extremely critical data, especially as dealers try to constantly identify the key sales trends in the new-versusused side of their business. Inventory is growing faster for new compared with used.
LEGACY INVENTORY-MANAGEMENT PHILOSOPHIES
The traditional thinking for many dealers is that you have to move a used car in 30 days and a new car or truck in 45 days. And this is why it’s important to be focused on the carryover rate, because it can be a significant leading indicator to help a dealer drive profitability when he or she can drill down into the correlation between length of carryover, or no carryover, versus the rate and severity of any markdown activity on a particular vehicle.
Profit levels are always great if a vehicle moves within its 30or 45-day expected period, but profit levels are significantly
diminished if it exceeds that time frame. When you can show how this timing is affecting the bottom line of a dealer, all of their old discipline comes back, and they return to the basics and fundamentals of selling a vehicle.
NO GUARANTEES WITH MARKDOWNS
It’s important to understand that carryover rates, when they rise, can be different depending on the brand. When a vehicle does carry over past its prime selling days, that is when dealers begin to panic and start slashing prices. However, while markdowns have traditionally been viewed as a surefire method to boost sales, the complexities of modern markets reveal that that strategy is fraught with misconceptions.
One of the most general beliefs in the auto industry is that reducing a vehicle’s price will automatically attract more views to its vehicle detail page and directly translate into sales.
However, real-world data paints a different picture. Approximately 69% of used-car listings and 76% of new-car listings do not experience a significant increase in organic or direct views following a price reduction. This suggests that merely lowering the price does not necessarily make the vehicle more attractive to potential buyers. Additionally, any brief spike in activity often comes from repeat visitors, who are already familiar with the vehicle and are alerted to price changes, rather than new shoppers.
Another legacy viewpoint is that a single price reduction will secure a sale. In reality, vehicles that are eventually sold often undergo three to four price reductions. That pattern demonstrates that relying on one markdown to close a sale is far from realistic, which is why dealers need to adopt a more sophisticated approach, integrating multiple factors, such as market trends, customer behavior, and competitive pricing.
AI AND MACHINE LEARNING ENHANCE DECISION-MAKING
Artificial intelligence and machine learning take data analytics a step further by enabling predictive capabilities in managing carryovers. AI systems can process vast amounts of data much faster than people, identifying trends and making predictions with remarkable accuracy. In the context of auto retailers, AI can predict which vehicles are likely to sell quickly and which might be carried over.
Machine-learning algorithms can analyze factors, such as past sales data, market trends, economic indicators, and even social media sentiment, to forecast demand for specific models. The predictions help dealerships make informed decisions about which vehicles to order and in what quantities. By aligning inventory with predicted demand, dealerships can minimize the risk of overstocking and understocking, leading to an imbalance of carryover inventory.
PREDICTIVE MODELING: ANTICIPATING MARKET DYNAMICS
Predictive modeling is a statistical technique now being used alongside
historical data to forecast future outcomes. In auto dealerships, it can be applied to various aspects of inventory risk management. For example, it can predict the depreciation rate of different vehicle models, helping dealerships price their inventory more effectively.
One practical application is predicting the optimal time to mark down a vehicle. By analyzing data on how long similar vehicles have taken to sell at different price points, especially in local regions, predictive models can recommend when to reduce prices to accelerate sales without eroding profitability. What’s more, the data can be used to inform a dealer when a vehicle should not be marked down, ensuring better profitability from analytical visibility that prevents an over-reliance on traditional gut instinct. That ensures dealerships can clear aging inventory at its maximum profit potential before it becomes a financial burden.
As technology continues to evolve, the role of advanced data analytics, AI and predictive modeling in auto dealerships will only grow. Future advancements may include more sophisticated AI algorithms that can predict market trends with even greater accuracy, as well as enhanced data integration platforms that provide real-time insights across all dealership operations. With that level of visibility, dealers will better understand the carryover risk on each vehicle – new and used – on their lots and will have the tools they need to properly manage inventory risk levels to maximize profitability. n
Len Short is executive chairman of Lotlinx, provider of an inventory platform that enables dealers to automatically adapt to market dynamics, mitigating inventory risk through VIN-specific strategies. Opinions expressed may not reflect that of the association.
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Ex-Puyallup Car Dealer Accused of Tax Fraud in $131K Scam
The former manager of a now-closed Puyallup used-car dealership is facing felony theft charges for allegedly pocketing more than $131,000 in sales tax instead of handing it over to the state. According to the Attorney General’s Office, Stanley J. Stevens ran Puyallup Truck & RV Sales from 2019 to 2022 and funneled tax money into personal bank accounts controlled by him and his wife.
Stevens, 41, isn’t new to legal trouble—he was convicted in 2011 for conspiracy to commit odometer fraud. This time, investigators say he used his 19-year-old nephew as a “straw owner” to secure a dealership license. Despite the nephew’s name being on the paperwork, Stevens allegedly handled the finances and daily operations. The dealership’s revenue was massively underreported. In one instance, they claimed only $6,500 in gross revenue for 2017, despite making over $1.2 million that year, according to court documents. When asked for tax returns, Stevens reportedly said they didn’t file any, claiming the business didn’t earn enough.
Upcoming Chapter Meetings
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MARCH 24, 6PM-9PM
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HILTON GARDEN INN (SPOKANE AIRPORT) Sponsored by MAG Auctions and Carousel Software
DEALER FRAUD
The Department of Licensing permanently revoked Puyallup Truck & RV Sales’ license in 2022 due to multiple compliance violations. Investigators later found nearly $1.9 million from vehicle sales deposited into Stevens’ and his wife’s bank accounts, with only a fraction of it reported to the Department of Revenue. Customers reported paying in cash or through shady transactions with excessive credit card fees. Some even wrote separate checks for sales tax to a mysterious, unregistered LLC tied to another of Stevens’ nephews.
When authorities searched the dealership in early 2022, they found a chaotic mess of financial documents, hidden bank accounts, and sales records stuffed in garbage bags. Despite his nephew being the official owner, records indicate Stevens controlled the money, signed checks, and even processed transactions using his personal CashApp and Venmo accounts. Now, he’s been summoned to court and faces serious legal consequences. n
PRESS ROOM
It’s Time to Revolutionize Used-Car ROIs
Online pricing access erodes dealers’ ROI, so authors call for new approach.
BY STEVE FINLAY, CONTRIBUTING EDITOR, WARDS AUTO
Eroding returns on investment in auto retailing has turned used-car managers into what industry veteran Dale Pollak calls “money managers.”
A new investment-centric used-car strategy is needed these days, as dealers see their ROIs continuously declining.
“It’s a wakeup call for the industry,” Pollak says of the revised strategies he and co-author Lance Helgeson detail in their new book “Invested: The New Science, Strategy & System of Used Vehicle Investment Management.”
Pollak, a former auto dealer and vice president of Cox Automotive, which includes vAuto in its portfolio, has attended more than 50 National Automobile Dealers Assn. shows.
ROI EROSION IMPACT ON DEALERS
Much of the ROI erosion is because the Internet has allowed consumers to obtain detailed vehicle and pricing information that previously wasn’t readily available. Before the Internet, negotiating a sale was a lopsided two-party transaction, with the dealership having an advantage over the consumer.
With that process now turned on its head, the new book gives dealers tips on implementing a variablemanagement strategy to limit any resulting profit erosion.
“ROI in the used-car business has basically been cut in half. Potentially, it could be cut in half again,” Pollak tells WardsAuto. “Ten years ago, the average dealer invested an average of $11,000 in a used vehicle. And the average front-end gross profit on resale was about $1,500.
“Fast-forward to today: The average investment amount is $23,000. More than double. But the average frontend gross profit is only a little higher than before, $1,800.”
THE ABCS OF ROI SHIFTS
Three factors affect a used-car department’s ROI, says Pollak, which should lead dealers to ask themselves the following: How much investment is critical? How long does the dealership hold that investment? What will it yield when it’s liquidated?
In the book, the authors encourage dealers and managers to reframe the way they view themselves – as “money managers” – going forward.
“They are managing someone’s cash that happens to be in the form of an automobile,” he says of used-car staff.
The new approach, detailed in “Invested,” brings investmentmanagement principles to used-vehicle operations, upending fundamental beliefs and practices that have shaped the industry for more than a century.
The book details how dealers can redefine their used-vehicle operations. Here are some ways Pollak suggests:
• Use predictive data science that offers a new and proven way to know each used vehicle’s investment or ROI potential and manage accordingly.
• Apply investment-management principles to shape their acquisitions, appraisal and pricing practices to achieve the full profit potential of every vehicle.
• Determine the “right” money for any used vehicle in any situation.
“A management strategy that combines predictive data science, the ROI-minded variable-management strategy and vAuto’s ProfitTime GPS system (using software for data-driven pricing, appraising and merchandizing)
can enable any dealer to extract the optimal amount of ROI from every vehicle, Pollak says
Buying the right vehicle is essential from a merchandising angle, but even more important is buying a vehicle that is the best investment.
“It could be both,” Pollak says. “But what if I buy the ‘right’ vehicle for $20,000 and make $500 off it? It may be the right vehicle, but it is the wrong investment.”
HOW CONSUMER EDUCATION REDEFINES ACQUISITIONS
In the past, the buyer didn’t necessarily know how much a used car or tradein was worth. In today’s online world, they do, Pollak’s co-author, Helgeson, tells WardsAuto. “There are fewer home-run deals” for the dealership.
Variable management is not a onesize-fits-all approach for auto retailing, however. That’s because business models vary from dealership to dealership.
HELGESON GIVES AN EXAMPLE:
A used-car manager at a volumeoriented dealership might acquire an array of used cars (not just upmarket ones) to fulfill the store’s high salesvolume objectives.
“That used-car manager probably will have $10,000 or $15,000 cars that are a little rough and price them right,” says Helgeson. “Maybe not pass on some cars. That’s the way for that dealership to go to market.”
Pollak says the book he co-authored is more than just a manual for managing used-car operations.
“It is a testament to the enduring principles of investment and an exploration of how strategic thinking and innovative management can yield significant returns, he says. n
Steve Finlay is a former longtime editor for WardsAuto. He writes about a range of topics including automotive dealers and issues that impact their business.
3-month trials to your customers in the car and on the SiriusXM app. No credit card
EDUCATION
The 2025 NIADA Convention and Expo will feature dealer panels and traditional breakout education sessions in five different tracks – BHPH, retail, compliance, management and marketing. Here are five featured sessions:
BHPH
KNOW YOUR NUMBERS
DARLA BOOHER, DEAL DEPOT, GREER, SOUTH CAROLINA
JOIN RICK
RETAIL
90 DAYS TO A NEW DEALERSHIP
JOHN DISMUKES, NIADA 20 GROUPS SALES MANAGER AND MODERATOR
We hope you’ll join Rick Olson, WSIADA Director, at this event!
One of the most popular sessions is back, with an even deeper dive! There is certainly more than one way to be successful as a BHPH dealer. But the analytics don’t lie and “just sell more cars” is never the answer. Darla Booher has specific numbers she constantly reviews to determine the health of his dealership. Don’t miss this interactive session discussing real numbers.
COMPLIANCE
Q & A WITH THE CFPB
Come learn the four basic steps to transform your dealership – assess, change, implement and evaluate. Successful dealers implement processes, gain buy-in from stakeholders, and change cultures to ensure the implementation is permanent. This workshop will teach you what to do in 90 days to build a culture of excellence.
2025 NIADA CONVENTION AND EXPO
CHRISTOPHER KUKLA, SENIOR PROGRAM MANAGER, AUTO FINANCE, CONSUMER FINANCIAL PROTECTION BUREAU
Christopher Kukla of the Consumer Financial Protection Bureau will discuss changes at the agency and answer questions from attendees. Don’t miss this opportunity to hear directly from the CFPB.
MANAGEMENT
POSITIONED FOR GROWTH: A Proven Strategy to Modernize Your Business and Achieve Record Revenues CORY MOSLEY, CSP
In the dynamic landscape of today’s business world, staying ahead requires more than just adaptation; it demands a proactive approach to change. Cory Mosley will show a blueprint for modernization and proven strategies to achieve record-breaking revenues. The first 80 attendees at the session will receive a free copy of his Amazon best-selling book.
MARKETING
JOIN US AT THE FONTAINEBLEAU LAS VEGAS JUNE 23-26, 2025
HOW VIDEO BOOSTS THE BOTTOM LINE FOR DEALERSHIPS
ARTHUR KADE, CO-FOUNDER, KAMELOT PRODUCTIONS
Explore the transformative power of video marketing and how it can significantly enhance a dealership’s profitability. Attendees will learn how video content drives customer engagement, builds trust, and ultimately increases sales and service revenue. By the end of the session, participants will understand how adopting a strategic video marketing approach boosts visibility, creates customer loyalty and provides a measurable ROI.
Network with dealers from across the nation at the largest convention and expo for independent car dealers.
“It’s
as these will not last.
*Only $219 room rate
Sarah Bombliss of Family First Auto Sales in Clarksville, Tennessee.
Registration is open. $219 per night (includes $20/ night resort fee) + taxes.
SERVICE PROVIDER DIRECTORY
We invite you to explore their services and please mention that you saw their listing in the Front Row magazine.
Accounting & Tax Services
CLA Connect (509) 664-9630 claconnect.com
Auctions
ACV Auctions (800) 553-4070 acvauctions.com
Adesa Portland (503) 492-9200 adesa.com/portland
Adesa Seattle (253) 735-1600 adesa.com/seattle
Copart Auto Auction (253) 847-8300 copart.com
Ehli Auctions (253) 572-0990 ehliauctions.com
Insurance Auto Auction (IAA) - Seattle (206) 658-6900 iaai.com
Insurance Auto Auction (IAA) - Spokane (509) 891-2388 iaai.com
Kaman Auctions (425) 640-5111 kamanauctions.com
MAG Auctions - Portland (360) 241-9998 magauctions.com/daapdx
See ad on back cover
MAG Auctions - Spokane (509) 244-4500 magauctions.com/daanw
See ad on inside back cover
MAG Auctions Seattle (253) 737-2200 magauctions.com/daasea
See ad on back cover
Manheim Portland (503) 286-3000 manheim.com
Manheim Seattle (206) 762-1600 manheim.com
See ad on inside front cover
Yarbro Auctioneers (509) 765-6869 yarbro.com
Benefits & Health Insurance
New York Life (206) 794-9508 newyorklife.com/agent/zcryan
Washington Retail Association (360) 943-9198 waretailservices.com
BHPH Training
Buckeye Dealership Consulting (330) 726-9030 buckeyereinsurance.com
Bonds and Commercial Insurance
Acrisure Insurance (509) 315-2737 acrisure.com/northwest
AIC Insurance Agency LLC (541) 504-1822 aicinsagency.com
Brown and Brown Insurance (206) 956-1600 bbinsurance.com
Fairbanks Insurance LLC (208) 861-5668 fairbanksins.net
Farmers - Karen Dunn
Insurance Agency (253) 964-7070 agents.farmers.com/wa/dupont/ karen-dunn
Compliance Training Protective/AUL (800) 950-6060 protective.com
Cyber Security
ATTM Technologies (206) 350-2886 attm-tech.com
Credit Reporting
700 Credit (866) 273-3848 700credit.com
Dealer Management Systems
Carousel Software (509) 926-8848 carouselsw.com
Finance and Insurance
Pacific Dealer Services (253) 549-3273 pacificdealerservices.net
Floor Plan Companies
AFC - Seattle (253) 333-0300 autofinance.com
See ad on page 13
AFC - Spokane (509) 244-1766 autofinance.com
Floorplan Xpress (503) 621-9260 floorplanxpress.com
Legal Services
Davies Pearson, P.C. (253) 620-1500 dpearson.com
Lending
Lobel Financial Corp. (503) 653-8000 lobelfinancial.com
See ad on page 3
Nationwide Northwest (888) 209-4447 nac-loans.com
Reliable Credit Association (253) 240-1818 reliablecredit.com
Merchant Services
Priority Payment Systems (800) 717-1250 pplocal.com
Parts & Services
Autozone (559) 836-8722 autozone.com
Satellite Radio
SiriusXM (866) 659-3961 siriusxmdealerprograms.com
See ad on page 13
Risk Management
ComplyNet (800) 652-1869 complynet.com
See ad on page 11
Vehicle Service Plans
GWC Warranty gwcwarranty.com (425) 233-4705
SUPPORTING WASHINGTON INDEPENDENT DEALERS SINCE 1953 JOIN US!
GET ON BOARD AND SEE THE DIFFERENCE!
By joining the WSIADA, you will get to experience a dynamic network that enhances your visibility, amplifies your voice, and establishes your credibility. You also will get to benefit from discounts on products and supplies for your dealership while gaining access to invaluable continuing education opportunities that propel your business's growth.
SOME OF OUR BENEFITS INCLUDE:
WSIADA READ & RESPOND QUIZ MARCH 2025
RETURN
COMPLETED QUIZ TO WSIADA AT EDUCATION@WSIADA.COM
WSIADA READ AND RESPOND QUIZ offers one hour of continuing education credit toward the dealership’s required annual renewal. Payment options are available for members and non-members also for notification to the Washington State Department of Licensing. A passing grade will be granted for scores of 80% or greater. If a passing grade is not granted, the reader may retake the quiz. Be advised that the information contained in WSIADA’s the Front Row is, to the best of our knowledge, current and correct. However, we caution readers not to use the information provided to them as final authority. Its purpose is to be a guide. Any legal advice should be regarded as general information. It is strongly recommended that one contact an attorney for counsel regarding specific circumstances. Some articles may express opinions and/or suggestions for best practices. Likewise, the appearance of advertisers or their identification as members of WSIADA, does not constitute an endorsement of the products or services featured.
q I have read and understand the disclaimer above.
1What is a key drawback of relying solely on price reductions to sell carryover inventory?
A) It guarantees a significant increase in organic views
B) It often requires multiple markdowns before a sale occurs
C) It eliminates the need for predictive modeling
D) It immediately attracts new potential buyers
2What is one reason ROI in the used-car business has declined, according to Pollak?
A) Customers now have access to detailed vehicle pricing information online
B) Dealerships have increased their marketing expenses significantly
C) Fewer people are purchasing used cars due to rising interest rates
D) New car sales have completely overtaken the used-car market
3Which of the following is a common operational issue that can frustrate dealership customers?
A) Offering too many financing options
B) Setting unrealistic expectations for repair timelines
C) Providing excessive discounts on services
D) Allowing customers to test drive too many vehicles
4What key strategy does Pollak suggest to help dealerships maximize their ROI on used vehicles?
A) Lowering prices aggressively to increase sales volume
B) Using predictive data science to assess each vehicle’s investment potential
C) Avoiding the purchase of vehicles with high mileage
D) Focusing only on luxury and high-end used vehicles
5What is a major drawback of relying solely on price markdowns to sell carryover inventory?
A) Price reductions always lead to increased vehicle detail page views
B) A single markdown is usually enough to secure a sale
C) Most vehicles require multiple price reductions before being sold
D) Price reductions eliminate the need for predictive modeling
6What is a common mistake dealerships make in customer communication?
A) Offering discounts too frequently
B) Responding too quickly to customer inquiries
C) Providing unclear or inconsistent information
D) Sending too many personalized updates
7What tactic did Stanley J. Stevens allegedly use to obtain a dealership license?
A) He bribed state officials for approval
B) He used his 19-year-old nephew as a “straw owner”
C) He falsified odometer readings on vehicles
D) He registered the business under a fake name
8According to Dale Pollak, why have usedcar managers become “money managers” in today’s auto retailing industry?
A) They are now responsible for setting interest rates on auto loans
B) They are managing a dealership’s cash in the form of automobiles
C) They focus solely on maximizing the number of cars sold
D) They handle all aspects of a dealership’s advertising budget
9Why is the bait-andswitch tactic harmful to a dealership’s reputation?
A) It confuses customers about available inventory
B) It increases customer trust in pricing transparency
C) It leads to frustration when advertised prices don’t match reality
D) It encourages customers to negotiate for better deals
10How does artificial intelligence (AI) help dealerships manage carryover inventory?
A) It eliminates the need for historical sales data
B) It predicts which vehicles will sell quickly and which might be carried over
C) It guarantees that all vehicles will sell within 30 days
D) It replaces human decision-making in inventory management
March at MAG is a Slam Dunk!
Make a fast break for our lanes in Spokane and Auburn, or buy online via Simulcast and EBlock!
