Warning: this article offers no discussion of legal issues, just my commentary on the continued viability of automotive dealerships in the face of franchisors looking to insert themselves more directly into the electric vehicle (EV) customer sales model. It is a pivotal time for franchised dealers, who are responding to a fresh wave of changes…

With electric vehicles (“EVs”) becoming more popular, many franchised dealers are entering into contracts with vendors to purchase advanced charging stations to be installed at specific dealerships.  These purchases are often in conjunction with OEM and government programs that help to subsidize the cost of these stations. These vendors not only sell these chargers to…

By now, many dealers have likely heard about the FTC’s proposed rules on dealership advertising and F&I office disclosures (16 CFR Part 463).  To help dealers sort through all the commentary on these proposed rules, we have provided a brief summary of these proposed rules as well as some of the highlights of what you…

In my former life as a financial analyst for a Fortune 250 company, a manager and long-time mentor of mine handed me an informative book entitled “Merchants of Debt” that gave an inside look into how private equity (“PE”) firms purchased businesses and operated them to support the continued investment in other businesses.  As dealership…

As we head into the second quarter of 2022, the impact of chip shortages on vehicle supplies has not subsided.  As a result, many more dealers are facing a steeper challenge of meeting OEM sale metrics than at any time prior to the pandemic. Even before the pandemic, franchised dealers have called out factories that…

Many of you are back from the 2022 National Automobile Dealers Association (NADA) Show in Las Vegas, recharged and ready to take your dealership operations to the next level this year.  It is essential to begin with asking yourselves the following questions: Is your business set up to succeed beyond 2022, long after you’ve retired…

IS YOUR DEALERSHIP IN COMPLIANCE WITH THE UPDATED SAFEGUARDS RULE? The Safeguards Rule, originally released in 2003 under the authority of the Federal Gramm-Leach-Bliley Act, was amended in October 2021 by the Federal Trade Commission.  Unlike the prior version of the rule, the amended rule provides detailed requirements for keeping dealership customer data secure, including…

I often get asked “is this the right time to sell a franchised dealership?” As I help clients buy and sell franchised dealerships, I know that I am not being asked this question because of my legal expertise, but because I often meet with brokers and accountants involved with auto dealers and dealer principals. THE…