AUTO DEALER Celebrating the 2026 KADA Family Convention OFFICIAL PUBLICATION
For 20+ years, Higginbotham has helped Kentucky dealers protect profits, reduce risk, and support KADA. Higginbotham Dealer Services helps Dealer Principals: • Protect balance sheet and blue sky value • Reduce total cost of risk across all rooftops • Improve F&I and ancillary income performance Specialized solutions for auto dealers: • ADMIC Workers’ Comp: double dividend structure • Property & Casualty: garage, open lot, EPLI, cyber • Loss Control & Data Analytics: cost drivers and safety • Contract Review: indemnity and insurance requests • Employee Benefits: compliance and administration • High Net Worth Life Insurance • Finance & Insurance: training and income development strategies Zack McMillan 502-576-3917 zmcmillan@higginbotham.com | higginbotham.com For more information, please contact: Richard Goss 502-489-6182 rgoss@higginbotham.com
©2026 The Kentucky Automobile Dealers Association (KADA) | MBR Connect™. All rights reserved. Kentucky Auto Dealer is published four times per year and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of KADA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Kentucky Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of KADA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (801) 676-9722. CONTENTS 4 PRESIDENT’S MESSAGE Fond Memories and Forward Momentum By Jason Wilson, President, KADA 6 2026 KADA Leadership Executive Committee, Staff and Board of Directors 8 Celebrating the 2026 KADA Family Convention Reflections from Nemacolin 12 Leading in Harmony in Music City Highlights from the ALP Summer Retreat 14 Catalytic Converter Theft Is Here To Stay By Don Jacobs, President and Founder, Trydon 16 Supporting Workplace Mental Health Why It Matters for Your Organization By American Fidelity 19 Why Every Dealership Acquisition Should Begin with a Retail Warranty Reimbursement Review By Jordan Jankowski, Chief Operating Officer, Armatus Dealer Uplift 21 KADET Drive Our Industry Forward 22 KADA Preferred Partner Programs 4 12 16 19 8 14 WWW.KYADA.COM 3
JASON WILSON PRESIDENT, KADA President’s Message Fond Memories and Forward Momentum There is something special about gathering together as an association. Each year, our Family Convention gives us the opportunity to step away from the day-to-day demands of running a dealership and reconnect with colleagues who understand both the challenges and the rewards of our business. As I reflect on our time together at Nemacolin for the 2026 Family Convention, I am filled with gratitude — for the friendships we strengthened, the new connections we made and the commitment we share to moving our industry forward. On behalf of the Kentucky Automobile Dealers Association, thank you to everyone who joined us for the 2026 Family Convention. Your participation made the event an incredible success. Whether you attended the general sessions and heard from our great lineup of speakers, connected with our outstanding sponsors and exhibitors, participated in family activities or simply took time to visit with fellow dealers, you helped create an atmosphere that showcased the very best of our association. One of the things I appreciate most about KADA is that our members are always willing to share ideas and help one another succeed. The conversations that happen between sessions, over meals and throughout the convention often become just as valuable as the presentations themselves. Our members all face many of the same opportunities and challenges, and there is tremendous value in learning from one another. I also want to extend my sincere appreciation to our sponsors, exhibitors and preferred partners. Their continued investment in KADA allows us to provide quality educational programming, meaningful networking opportunities and valuable member services throughout the year. We are fortunate to have partners who are committed to the success of Kentucky’s franchised automobile dealers, and we thank them for their unwavering support. While convention is one of the highlights of our year, it is only one part of the work your association does on your behalf. Every day, KADA advocates for dealers in Frankfort, provides educational opportunities through Kentucky Dealer University, offers legal and regulatory resources, and works to ensure that Kentucky dealerships remain strong and competitive. As we look toward the months ahead, I encourage every member to stay engaged. Attend a Kentucky Dealer University class. Participate in your district meetings. Build relationships with your elected officials. Reach out to fellow dealers and share ideas. The more involved we are, the stronger our collective voice becomes. Our industry continues to evolve at a rapid pace. Technology, consumer expectations, workforce development, and legislative issues all present new opportunities and challenges. Through it all, KADA remains focused on providing the resources, advocacy and connections you need to succeed. Most importantly, never underestimate the impact our dealerships have on the communities we serve. Across Kentucky, dealerships are creating jobs, supporting local charities, sponsoring youth programs and helping drive economic growth. We are more than businesses — we are community partners, employers and neighbors. That legacy is something we should all be proud of. Thank you for your continued support of KADA and for everything you do to strengthen our industry. I look forward to seeing many of you throughout the coming months as we continue working together to build an even stronger future for Kentucky’s automobile dealers. 4 KENTUCKY AUTO DEALER
HIGHLY ATTENTIVE TO YOUR GOALS UNWAVERING REPRESENTATION UNPARALLELED SUPPORT STRAIGHT-FORWARD AGREEMENTS SUCCESS FEES ONLY WITH NO RETAINERS STRICT GUARDING OF CONFIDENTIALITY FAMILY-OWNED WITH FAMILY VALUES BROKERAGE SERVICES For a confidential consultation and a complimentary evaluation on your business, please contact us. California • Utah • Texas • Iowa • Illinois • Ohio • New Jersey • Alabama • Florida • North Carolina • Virginia • Alberta • Ontario Midwest Office East Mark Shackelford, Sr., Partner 330. 352. 5651 | mark@performancebrokerageservices.com Mark Shackelford, Jr., Partner 330. 634. 3825 | markjr@performancebrokerageservices.com 503 West Park Ave, Barberton, Ohio 44203 Corp: 949. 461. 1372 | performancebrokerageservices.com PIECE TO A PERFECT DEAL THE MISSING We are the trusted resource for helping dealers navigate the complex selling process, while preserving your legacy, protecting your confidentiality, and maximizing the value. Let us help you take the next step with confidence, knowing you have a partner committed to your best interests. Family-owned for over 30 years, our reputation is unmatched and built on a foundation of honesty, integrity, and ethical conduct. These core values run deep throughout our firm and are the driving force behind our continued success. We pledge to do it right, every time, one client at a time.
2026 KADA Executive Committee KADA Staff Ed Hyde CHAIRMAN Legacy Automotive Network Bob Hook, III CHAIR ELECT Bob Hook Chevrolet Fred Tolsdorf VICE CHAIR Champion Chevrolet Buick GMC Travis Flaherty TREASURER Flaherty Chevrolet Rob Marshall PAST CHAIR Marshall Auto Group Nancy Sparks PAST CHAIR Kerry Automotive Group Kim Huffman PAST CHAIR Neil Huffman Auto Group Vickie Kain Fister NADA DIRECTOR Jack Kain Ford Alex Pogue NADA PAC DIRECTOR Pogue Automotive Group David Moore DEALER PHILANTHROPY DIRECTOR Moore Automotive 2026 KADA Board of Directors Jason Wilson PRESIDENT Sarah Bishop VICE PRESIDENT Melissa Peach CFO Penny Faulconer ADMINISTRATIVE SPECIALIST District 1 Mike Reid Country Chevrolet Buick GMC Benton Kameron Huffman Neil Huffman Auto Group Frankfort Deborah Renshaw Parker Renshaw Auto Group Bowling Green District 2 Travis Flaherty Flaherty Chevrolet Brandenburg Alex Pogue Pogue Automotive Group Powderly Eddie Franklin, Jr. Don Franklin Family of Dealerships Glasgow District 3 Richard Swope Toyota of Louisville Louisville Miller Warren Mercedes-Benz of Louisville Louisville Adrian Miron BMW of Louisville Louisville District 4 Tom Gill Tom Gill Chevrolet Florence Tim Sparks Kerry Automotive Florence Mason Moore O'Brien Ford Shelbyville District 5 Justin Booth Mark Porter Ashland Ashland Trey Blakley Alton Blakley Family of Dealerships Somerset Todd Justice Hutch Chevrolet Buick GMC Paintsville District 6 Darrell Billings Tanner Chrysler Products Stanton Vickie Kain Fister Jack Kain Ford Versailles Jessica Gilbert Dan Cummins Auto Group Paris 6 KENTUCKY AUTO DEALER
Celebrating the 2026 KADA Family Convention Reflections from Nemacolin The 2026 KADA Family Convention at Nemacolin Woodlands Resort in Farmington, Pennsylvania, was a tremendous success, reminding us once again that the greatest strength of the Kentucky Automobile Dealers Association is its members. Over three memorable days, dealers, allied members, industry experts, sponsors and families came together to learn, connect and celebrate the relationships that make our association so strong. From engaging educational sessions and timely industry discussions to networking opportunities and family-friendly events, the convention provided something for everyone. Attendees heard from experts like Steve Greenfield, Glenn Mercer and Kevin Tynan about the retail automotive field industry and where it’s going. As our business continues to evolve, opportunities like this allow us to exchange ideas, discuss challenges, discover new solutions and return home better equipped to serve our customers and communities. Keynote speaker Rocky Bleier — a Purple Heart recipient and Super Bowl champion, also shared insights about growth and resilience that will resonate with all of us as we lead our teams. Of course, the convention was about much more than business. It was about reconnecting with longtime friends, welcoming new faces into the KADA family and strengthening the relationships that make this association unique. Whether it was a conversation between sessions, a shared meal or an evening celebration, the true value of the convention was found in the connections made throughout the week. We extend our sincere appreciation to every dealership that invested the time to attend. Your participation is what makes this event meaningful, and your continued engagement strengthens not only KADA but the entire automotive industry across Kentucky. A special thank you to our outstanding sponsors, exhibitors and preferred partners. Your generous support made this convention possible. Beyond your financial commitment, your willingness to share expertise, showcase innovative products and build lasting partnerships with our members continues to add tremendous value to our association. We are grateful for your ongoing investment in Kentucky’s dealer community. As we reflect on another successful convention, we are reminded that KADA’s greatest accomplishments are made possible through collaboration. When dealers, partners and industry leaders come together with a shared commitment to excellence, everyone benefits. Thank you for making the 2026 KADA Family Convention one to remember. We hope you left Nemacolin with new ideas, stronger relationships and renewed enthusiasm for the opportunities ahead. We look forward to seeing everyone next year in St. Thomas as we continue building on the momentum and success of another outstanding KADA Family Convention. Registration for 2027 is open, and we can’t wait to see you at the beach! 8 KENTUCKY AUTO DEALER
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Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Tony Garcia, anton.r.garcia@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA. Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Tony Garcia, anton.r.garcia@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
Leading in Harmony in Music City Highlights from the ALP Summer Retreat KADA’s Accelerated Leadership Program (ALP) gathered in Nashville on Aug. 18-19 for an energizing retreat focused on professional growth, collaboration and connection. Through engaging sessions, group discussions and shared experiences, participants strengthened their skills while building meaningful relationships with fellow emerging leaders in Kentucky’s automotive industry. The retreat enabled ALP participants to step away from the day-to-day demands of the dealership, exchange ideas and gain fresh perspectives to bring back to their teams. We are proud of this outstanding group and look forward to seeing how they continue to grow, lead and make an impact within their dealerships and communities. Thank you to our sponsors — OPENLANE, ADMIC, Trydon and Merchant Advocate — for making this year’s ALP Summer Retreat possible and to everyone who contributed to its success. 12 KENTUCKY AUTO DEALER
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Catalytic Converter Theft Is Here To Stay By Don Jacobs, President and Founder, Trydon What do Pt, Pd and Rh have in common? They are the chemical symbols for platinum, palladium and rhodium, and all are found inside every catalytic converter on the road today. Being extremely rare and difficult to mine, these metals can routinely command prices higher than gold on the precious metals market, making catalytic converters a prime target for theft. In 2022 alone, the price of palladium spiked from $1,000 to $3,000 per ounce. Long-term palladium price forecasts for 2036 differ drastically, but some experts predict it could reach as high as $5,500 per ounce. Knowing that OEM converters on new car lots contain nearly 10 times more precious metal content than aftermarket converters makes them a more attractive target for thieves. In as little as 15 seconds, a new car’s catalytic converter can be removed, enabling thieves to quickly move from car to car, increasing their take for the night, often without being captured by security cameras. Dealers who have been victimized say it’s not just the cost of the catalytic converter; the collateral damage to the car during removal adds dramatically to the vehicle’s restoration costs. Catalytic converter theft was originally considered to be a problem only for urban dealers. However, police reports confirm that such theft is radiating out into the more trusting auto dealer markets. Growth in hybrid and full ICE vehicles will keep catalytic converter availability high now that the full EV push has subsided. Efforts to strengthen federal and state legislation requiring authorized recyclers to obtain greater sales transaction documentation and identification of legitimate sellers of catalytic converters, such as scrap yards, only make these authorized recyclers and sellers more legitimate. It does nothing to suppress a black market that invariably surfaces when such valuable and untraceable materials are involved. Once the exterior housing of a converter has been removed, there is no identity as to its origin (i.e., the car from which it was stolen), and its metals become as untraceable as gold jewelry that is melted into an ingot and sold on the spot market. Thieves know this and they will always find a “fence” who will pay cash for the stolen converters, no questions asked. At Trydon®, we believe that the most common-sense way to protect your dealerships from criminals is by keeping them from entering your site in the first place. You have a network of light poles strategically placed throughout your site, and specifically along your perimeter, so why not empower them to act as nighttime sentries capable of detecting and responding when someone first enters your lot? That is precisely what ChaseLight™ does. ChaseLight’s technology understands the difference between the behavior of criminals and the interests of car shoppers. BrowseHours™ welcomes car shoppers for an early after-hours walk-through of your vehicle inventory, after which ChaseLight’s motion-sensing ability dramatically deters unwanted trespassers from remaining on your site. And it pays for itself by enabling you to dim your LED lights in a highly coordinated fashion, reducing your after-hours energy costs by as much as 90% without compromising safety or merchandising impact. With 100% deductibility of capital improvements now allowed in the first year of operation, combined with Trydon’s subscription program, you can preserve your cash for more important matters, such as purchasing cars for resale rather than tying it up in bricks and mortar. Additional benefits of the Trydon subscription program: • 100% warranty support (parts and labor) for all equipment (lighting controllers, new lights, even light poles) supplied to the project • All Trydon software upgrades and enhancements are installed by Trydon personnel • 24-hour telephone-based customer support Making Trydon the first capital project of the upcoming year can support additional site improvements later on. We welcome the opportunity to show you how we can benefit your operation. To learn more, please visit chaselight-tech.com. 14 KENTUCKY AUTO DEALER
Supporting Workplace Mental Health Why It Matters for Your Organization By American Fidelity For years, mental health has felt like a topic to tiptoe around, especially at work. Thankfully, that’s starting to change. More people are opening up about their struggles, and businesses are beginning to recognize that mental health isn’t just a personal issue — it’s a workplace issue too. After all, we don’t leave our emotions, stress or challenges at the door when we clock in. They come with us, shaping how we focus, collaborate and perform. More and more, employees are speaking up about what they need. The data backs this up, showing just how significant the connection between mental health and work really is. In fact, 23.4% of U.S. adults experienced a mental illness in 2024. That’s over 60 million people, according to “The State of Mental Health in America” report.1 The “2025 Work in America” survey underscores this reality, stating 93% of workers report that it is very or somewhat important for them to work for: • An organization that values their emotional and psychological well-being. • An employer that supports employee mental health.2 With such a large portion of the population affected, companies can no longer afford to treat mental health as a secondary concern. Let’s explore why supporting workplace mental health matters, how to integrate it into a comprehensive benefits package, and why doing so can help your organization build a more resilient, high-performing workforce. Why Mental Health Is Essential in the Workplace Employees experiencing mental health conditions may struggle to focus and fully engage with their work. This could impact your organization’s productivity, increase absenteeism and place additional demands on coworkers. In fact, a national study of the U.S. workforce found that: • 50% of workers report moderate to severe levels of anxiety. • 48% of workers say they have left jobs for mental health reasons. The good news is the same study found that employees who agreed with the statement, “Overall, my company supports my mental health,” were: • Twice as likely to report no burnout or depression. • Three times more likely to trust their company and its leadership. • Two times more likely to intend to stay at their company for two years or longer.3 These findings make it clear that supporting mental health requires more than good intentions. Employees need access to meaningful resources, and one of the most impactful ways you can provide that support is through your benefit offerings. Insurance Coverage: A Cornerstone of Mental Health Support Why It Matters In the United States, health insurance is typically the primary — and most cost-effective — way employees access mental health support. When you offer a benefits package that supports the physical and emotional well-being of your workforce, you show you care, help strengthen trust and engagement and give your employees a compelling reason to stay. Key Services to Consider When designing or refining your benefits package, consider offering a mix of plans and services that support employees at different stages in their mental health journey. These might include: • Health Savings Accounts (HSAs): If an employer offers a Section 125 Plan, employees may enroll in a qualified high-deductible health plan (HDHP) and pair it with an HSA to set aside pre-tax dollars for psychiatric care, prescriptions, diagnostic tests and other eligible medical expenses. HSAs can help reduce financial barriers to care, making it easier for your workforce to proactively manage their well-being and stay healthier in the long term. • Disability Income Insurance: Some mental health conditions — such as mood, anxiety, eating or psychotic-spectrum disorders — may require extended 16 KENTUCKY AUTO DEALER
Membership eligibility available throughout the Tri-State. Visit gecreditunion.org/membership for details. Equal Opportunity Lender General Electric Credit Union (GECU) has proudly served the Greater Cincinnati Tri-State area for over 70 years, financing more than five billion in auto loans in the last four years, and expanding our footprint to meet the needs of more dealer partners and their customers. A top provider of dealer-initiated auto loans in the area, we’re excited to partner with the Bluegrass state to bring you and your customers great rates, service excellence, and personalized solutions. Experience a better financing relationship Best in Banking CityBeat Best Credit Union Recognized 8 years Consistently voted Cincinnati’s best! Learn about GECU as a lending partner today! Scan the QR Code or contact a member of our Dealer Development team: 513.243.7900 (prompt 4) | dealerdevelopment@gecreditunion.org
With such a large portion of the population affected, companies can no longer afford to treat mental health as a secondary concern. “ time away from work for treatment. Disability income insurance can help protect a portion of an employee’s paycheck during recovery, potentially reducing stress at a critical time. This support helps your people return to work more focused, stable and prepared to re-engage. • Employee Assistance Programs (EAPs): EAPs provide confidential short-term counseling, crisis support, referrals and everyday resources that help employees address challenges early before they escalate. For employers like you, EAPs can help reduce absenteeism, support healthier teams and promote a more resilient and engaged workforce. These offerings can work together to ensure employees have multiple pathways to access support, whether they need immediate assistance, long-term treatment, financial flexibility or time away to prioritize their well-being. Providing a variety of options also makes it more likely that employees will seek and receive the support they need when it matters most. The Business Case for Mental Health Investments Positive ROI Employers that offer employee mental health resources often see improved engagement, reduced absenteeism and more consistent performance. But a new study helps prove why it’s also a practical business strategy. Researchers followed 13,990 employees and dependents across multiple industries for nearly five years, finding that every $100 invested in an employer-sponsored behavioral health program with fast access to psychotherapy and medication management was associated with a $190 reduction in medical claims costs.4 This means that a well-designed mental health program may meaningfully reduce your healthcare spending while still supporting a healthier, more productive workforce. Building Resilience Beyond return on investment, investing in mental health also helps build long-term organizational resilience. Employees with comprehensive insurance coverage are better prepared to manage their personal and professional challenges. Over time, teams that feel supported tend to adapt to change faster, collaborate more frequently and bounce back from setbacks. This helps you build a workplace culture that stays productive and steady even during periods of uncertainty. The Bottom Line on Workplace Mental Health When your organization invests in workplace mental health, you’re not just taking care of your employees. You’re also building a stronger and more resilient future. With this in mind, what better time than now to evaluate your current offerings? Partnering with an experienced benefits administration provider can help you tailor a plan that promotes employee well-being and organizational success. American Fidelity does not provide financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation. SOURCES 1. Mental Health America. “The State of Mental Health in America 2025.” https:// mhanational.org/wp-content/uploads/2025/09/State-of-Mental-Health-2025.pdf. Published October 2025, Accessed February 4, 2026, p. 6, 14. 2. American Psychological Association. “2025 Work in America.” APA. https:// www.apa.org/pubs/reports/work-in-america/2025/2025-full-report.pdf. Published July 2025, Accessed February 4, 2026, p. 20. 3. Mind Share Partners. “2025 Mental Health at Work Report.” https:// www.mindsharepartners.org/2025-mental-health-at-work-report. Published May 9, 2025, Accessed February 4, 2026, p. 5-6. 4. Hawrilenko M, Smolka C, Ward E, et al. “Return on Investment of Enhanced Behavioral Health Services.” JAMA Network Open. https://jamanetwork.com/ journals/jamanetworkopen/fullarticle/2829859. Published February 5, 2025, Accessed February 4, 2026. 18 KENTUCKY AUTO DEALER
Why Every Dealership Acquisition Should Begin with a Retail Warranty Reimbursement Review By Jordan Jankowski, Chief Operating Officer, Armatus Dealer Uplift When acquiring a dealership, buyers conduct extensive due diligence, reviewing financials, operations, real estate, customer retention and manufacturer performance. Yet one of the most overlooked opportunities for increasing long-term profitability is retail warranty reimbursement. As dealership acquisition activity continues to accelerate, buyers should prioritize a retail warranty reimbursement review within the first 60 days of ownership. According to the latest Haig Report, 139 dealership rooftops changed hands during the first quarter of 2026 — a 39% increase over the same period in 2025 — with private buyers completing 96% of acquisitions. At the same time, Kerrigan Advisors reports continued strength in dealership Today’s buyers are asking not only what they’re purchasing, but also what revenue opportunities the previous owner failed to capture. “ WWW.KYADA.COM 19
buy-sell activity, driven by confidence in the long-term profitability of franchised dealerships. Today’s buyers are asking not only what they’re purchasing, but also what revenue opportunities the previous owner failed to capture. With front-end vehicle margins returning to historical levels, fixed operations has become one of the most valuable drivers of dealership profitability. Warranty reimbursement plays a critical role in that equation because it allows dealers to recover compensation that more accurately reflects their retail labor rates and parts pricing. Unlike increasing vehicle sales or expanding service capacity, improving reimbursement requires no additional customers, technicians, service bays or advertising. Unfortunately, many dealerships delay submitting reimbursement claims or continue operating under outdated labor and parts rates established years ago. Rising technician wages, increasing retail labor rates and changing state statutes often create significant opportunities for new ownership groups to improve reimbursement almost immediately. A comprehensive review should answer several important questions: • When were labor and parts reimbursement rates last updated? • Is the dealership eligible for a new submission? • Have retail labor rates increased substantially? • Were previous submissions fully optimized? • Have state law changes created new opportunities? Unlike many operational improvements that require months to produce results, reimbursement optimization can generate higher warranty revenue shortly after approval. Timing matters. Every month a dealership operates under outdated reimbursement rates, it loses revenue that can never be recovered. According to Armatus, dealerships lose an average of $8,000 to $12,000 in gross profit every month when reimbursement improvements are delayed. Improved reimbursement also strengthens fixed operations by supporting technician compensation, training, equipment investments and service absorption. As manufacturers introduce increasingly sophisticated vehicles requiring advanced diagnostics and specialized repairs, recovering appropriate reimbursement becomes even more important to maintaining a profitable service department. Because warranty reimbursement laws, submission requirements, and OEM procedures vary by state and manufacturer, many dealership groups rely on specialists. A company like Armatus can quickly evaluate reimbursement performance after an acquisition, identify unrealized revenue opportunities and manage the submission process through proven technology and proprietary methodologies. The purchase agreement is only the beginning of value creation. A retail warranty reimbursement review should become a standard post-acquisition best practice, helping new owners uncover hidden revenue, strengthen fixed operations and maximize the return on every dealership acquisition. This article has been edited for length. You can read the full, unabridged version by scanning the QR code. https://www.dealeruplift.com/ the-first-60-days-why-every-dealership-acquisitionshould-begin-with-a-retail-warranty-reimbursementreview/ Jordan Jankowski is the chief operating officer at Armatus Dealer Uplift. He has played a key role in consulting on 25 warranty reimbursement laws nationwide and is widely regarded as a subject-matter expert in this highly technical arena. Jordan manages a team of over 70 people who produce thousands of retail warranty reimbursement submissions each year. 20 KENTUCKY AUTO DEALER
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KADA Preferred Partner Programs The Kentucky Automobile Dealers Association (KADA) is pleased to recommend a broad range of products and services to help control expenses across every facet of the dealership. The following products and/or services are recommended by the association’s board of directors and endorsed by the association. These vendors are reviewed periodically to ensure the quality of their products and services meets the needs of our dealers and that they can provide special pricing through group buying. Automobile Dealers Management Insurance Company Workers’ Compensationt John Foresman, (502) 489-6255 jforesman@higginbotham.com CHAMP Electronic Titling & Registration LT Slater, (216) 392-0695 lt@champtitles.com ComplyAuto Cybersecurity Compliance Sherryl Nens, (661) 210-3453 sherryl@complyauto.com Cross-Sell Vehicle Sales Reporting Ronnie Leet, (859) 275-7950 ronnie.leet@cross-sell.com Digital Air Strike Customer Engagement Technology Scott Pechstein, (949) 278-8618 scott@digitalairstrike.com Dominion DMS Business Continuation Services Keith Glandon, (304) 543-8271 keith.glandon@dominiondms.com EasyCare/Dealer Performance Group Inc. F&I Products & Services Brad Geren, (502) 472-3671, bgeren@dpg-inc.com Todd Howard, (859) 382-3252, thoward@dpg-inc.com Kevin Voges, (812) 204-2251, kvoges@dpg-inc.com Larry Dorfman, (404) 732-5910, ldorfman@easycare.com 22 KENTUCKY AUTO DEALER
Dynatron Software Fixed Operations Software Anthony Fletcher, (815) 383-4280 afletcher@dynatronsoftware.com Integrum Advisors Group Health Insurance & Voluntary Benefits Colin Royster, (540) 526-7074 croyster@integrumadvisors.com Ben Hoffman, (804) 357-6004 bhoffman@integrumadvisors.com MCAG Settlement Recovery Services Greg Loeb, (419) 265-0999 greg.loeb@mcaginc.com Merchant Advocate Credit Card Processing Fee Savings Don Giordano, (973) 897-2778 dgiordano@merchantadvocate.com MOC Mid-Atlantic Service Department Products & Programs Jeremy Kimsey, (804) 641-1221 jkimsey@mocmidatlantic.com NADA Retirement from Empower Retirement Program Jeff Liwacz, (609) 529-3546 jeff.liwacz@empower.com OPENLANE Wholesale Vehicle Marketplace Jared Thetford, (317) 365-8902 jared.thetford@openlane.com Priority Commerce Automotive Dual Price Strategy Technology Amberly Allen, (817) 404-9523 amberly.allen@prth.com Reynolds Document Services Business Documents & Marketing Services Brian Ray, (314) 960-0100 brian_ray@reyrey.com Vitu Digital Titling & Registration Doug Pillow, (502) 209-8705 dpillow@vitu.com WWW.KYADA.COM 23
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