December 16, 2022

Have you heard the saying that the definition of insanity was doing the same thing over and over again, but expecting a different result? So, we have to ask: are you running an insane recruitment strategy?

Note: In November, the Federal Trade Commission announced a six-month extension, to June 9, on the deadline for companies to comply with some of the amendments to the FTC’s Safeguards Rule. This article was written prior to that announcement but still offers good insights about the changes. Please consult with your attorneys and IT teams for more on the rules.

While there are many considerations in running a thriving dealership, one of the most important – and often overlooked – is developing and maintaining a succession plan. A strategy that allows for the transfer of ownership to the next round of leaders – whether family members, a trusted partner or an outside buyer – will position you and your business for future success.

The auto retail market has remained strong in recent years – despite a turbulent economy – leaving many dealers in a surprisingly secure position. While that may be welcome news today, it’s only natural to wonder what tomorrow might hold for your dealership.

The nomination of Stephen Snyder, president of Checkered Flag Motor Car Company in Virginia Beach, Virginia, for the 2023 TIME Dealer of the Year award was announced by TIME. Snyder is one of a select group of 48 dealer nominees from across the country who will be honored at the 106th annual National Automobile Dealers Association (NADA) Show in Dallas, Texas, on Jan. 27, 2023.

A large Virginia dealer, whom I respect very much, recently told me that if his manufacturer shifted to an “agency” model – whereby the dealer no longer holds inventory and simply takes a cut for final sale delivery – he’d take the deal. “If I can be guaranteed 11%, hell, if I could get 9% return,” he told me, “I’d do it in a heartbeat.”