2027 TIME Dealer of the Year Nominee Michael Smith Winning Back Vehicle Owners The Service Experience Is the Product
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?® Steve Hood, steve.hood@bofa.com Paul J. Cluff, paul.cluff@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.
10 ©2026 New Car Dealers of Utah (NCDU) | MBR Connect™, formerly The newsLINK Group LLC. All rights reserved. Utah 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 NCDU, 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. Utah Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of NCDU. 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. 12 6 CONTENTSPUB. 8 2026 ISSUE 1 EXECUTIVE DIRECTOR’S MESSAGE 4 Your Association at Work By Jason Bickmore, Executive Director, NCDU 6 2027 TIME Dealer of the Year Nominee Michael Smith 8 FTC Issues Dealer Advertising FAQs By Brad Miller, Co-CEO & Chief Legal Officer, ComplyAuto 10 Is Your Dealership Ready to Explore Alternative Benefits Strategies? By HUB International 12 Winning Back Vehicle Owners The Service Experience Is the Product By Sean Reyes, Chief Marketing Officer, Armatus Dealer Uplift 16 CFO Insights: AI in the Automotive Dealership By Forvis Mazars 19 Driving Utah’s Economy Annual Contributions of Utah’s New-Car Dealers 3 UTAH AUTO DEALER
EXECUTIVE DIRECTOR’S MESSAGE Your Association at Work BY JASON BICKMORE, EXECUTIVE DIRECTOR, NCDU As the temperatures drop and the colors change, there’s plenty to look forward to in the holiday season and beyond, but there’s also plenty to reflect on and be grateful for. I’d like to thank each of our dealer members, as well as the various strategic partners and associate members who do so much to make the New Car Dealers of Utah one of the best organizations in the state. I would like to extend a special thank-you to Cory Watson for his outstanding leadership and dedication as the president of the New Car Dealers of Utah for 2026. Anyone who has spent time with Cory knows the tremendous passion he has for the automotive industry. Throughout his tenure, Cory has been an invaluable resource and a strong advocate for our association, generously sharing his time and expertise during visits with dealer members, and meetings and talks on Capitol Hill. We are truly grateful for his countless hours of service and the lasting contributions he has made to our association. We are also pleased to welcome Chip Hawkes as our incoming president and look forward to working alongside him in 2027 as we continue to strengthen and advocate for Utah’s auto retail industry. Of special note, the New Car Dealers of Utah Good Wheels Charitable Foundation recently partnered with L&L Auto Group to provide financial assistance to a young man from the Uinta Basin who underwent a heart transplant. This donation was made to help support his family with expenses during his hospital stay and recovery. In addition, the Good Wheels Charitable Foundation continues its longstanding tradition of supporting the Utah Highway Patrol through donations that help fund overtime shifts to combat impaired driving statewide. With nearly $400,000 contributed to the Utah Highway Patrol to date, the Foundation remains committed to making Utah’s roads safer and giving back to the communities we serve. Over the past several months, we have personally met with and contributed to the campaigns of many of our state and congressional lawmakers. These face-to-face meetings were invaluable in building and maintaining strong relationships based on mutual respect and trust. Through your generous support of both the state UCAR PAC and the national NADA PAC, you ensure we can effectively advocate for the interests of Utah’s automotive industry. We are grateful for the opportunity to engage with our elected officials and lend our perspective on issues that impact Utah’s auto dealers. It is truly a pleasure to work with the wonderful staff and members of this association, and to represent an industry that invests in our communities and drives Utah’s economy forward. As always, if you have questions or need a hand with something, don’t hesitate to reach out to me or any member of our staff. 4 UTAH AUTO DEALER
2027 TIME Dealer of the Year Nominee Michael Smith Michael Smith is one of a select group of 47 dealer nominees from across the country who will be honored at the 110th annual National Automobile Dealers Association (NADA) Show in Orlando, Florida, on Feb. 19, 2027. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The award recognizes the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Smith was chosen to represent the New Car Dealers of Utah in the national competition — one of only 47 auto dealers nominated for the 58th annual award from more than 20,000 nationwide. “This nomination is an incredible honor, and I am grateful to represent our employees, customers, family and Utah’s automotive community,” Smith said. “Our success has always been a shared effort built on hard work, strong relationships and a commitment to treating people the right way.” Smith has spent 30 years building his career at Doug Smith Dealerships. During that time, he has worked in every dealership department and gained experience across multiple stores. He has led the organization’s six dealerships for more than five years. “Working throughout the dealership gave me an appreciation for every person and department involved in serving a customer,” Smith said. “Each position contributes to the success of the organization, and understanding those roles has made me a better leader.” Smith represents the second generation of his family in the automotive business. His father, Doug Smith, founded Doug Smith Chrysler Plymouth in 1979. Today, Michael and his four brothers — Bryan, Tom, Dave and Spencer — each hold an ownership interest in the organization. “I have been fortunate to grow within a family business that provided tremendous opportunities,” Smith said. “My responsibility has been to work hard, maximize those opportunities and help ensure that the company continues creating opportunities for others.” Under Smith’s leadership, the organization has expanded by acquiring three dealerships and adding two open-point locations. The growth has increased the company’s reach while preserving the values established by its founder. “Our growth has never changed the principle at the center of our business,” Smith said. “Our mission is to provide outstanding service by treating our employees and customers the way we would like to be treated.” The organization employs 320 people and reported 20% year-over-year staff growth from 2025 to 2026. Eighty employees have worked for the company for at least six years, including 70 with more than a decade of service and 20 with more than 20 years. “Our longtime employees provide continuity, experience and a deep understanding of the communities we serve,” Smith said. “Their commitment has helped shape our culture and allowed generations of customers to build lasting relationships with our dealerships.” Employee benefits include healthcare coverage, employer contributions to health savings accounts, a 401(k) matching program and access to a college education at no charge. Smith considers education and career development essential to helping employees build greater stability for themselves and their families. “Removing the financial barrier to a college education gives employees the ability to pursue goals that may have once felt out of reach,” Smith said. “When employees grow personally 6 UTAH AUTO DEALER
and professionally, that progress strengthens their families, our organization and the broader community.” Smith identifies helping employees and colleagues advance throughout his 30-year career as the most rewarding aspect of his work in automotive retail. “A dealership should be a place where people can build meaningful, lasting careers,” Smith said. “Watching someone accept greater responsibility, develop as a leader and create a better future for a family is more rewarding than any individual business accomplishment.” Doug Smith Chrysler Dodge Jeep Ram’s employee and customer philosophy guides its daily operations and long-term decisions. The dealership emphasizes outstanding service, respectful relationships and consistent treatment across every customer and employee interaction. “Our mission statement is not simply something displayed on a wall,” Smith said. “It gives employees a straightforward standard for making decisions: Treat others the way you would want to be treated.” In 2025, Doug Smith Chrysler Dodge Jeep Ram sold 450 new vehicles and 500 used vehicles. Through July 2026, the dealership sold 500 new vehicles and 600 used vehicles. The organization’s dealerships have earned numerous manufacturer honors, including the Kia Global Best Dealer award, General Motors’ Mark of Excellence, Subaru community recognition and the Mopar Masters Award. “These awards reflect the dedication of our employees and the trust customers place in our team,” Smith said. “Recognition is meaningful because it confirms that our people are delivering on the promises we make every day.” Smith has been a member of NADA since 1995 and has served in leadership positions with the New Car Dealers of Utah, including as its president and in other board roles. “Dealer associations give us an opportunity to work together on the issues affecting our businesses, employees and customers,” Smith said. “Although dealers compete in the marketplace, we share a responsibility to strengthen the industry and advocate for the communities we serve.” Smith has also served on a local chamber of commerce board, supporting efforts to strengthen the regional business community. His community involvement has included more than a decade of support for the Utah Autism Council. Smith and the organization have contributed more than $500,000 to support its work. “Our involvement with the Utah Autism Council reflects a long-term commitment to the individuals and families it serves,” Smith said. “Sustained partnerships allow organizations to plan, grow and expand their impact throughout the community.” Smith believes a successful dealership has a responsibility to invest in both its employees and the community surrounding it. “Business success is most meaningful when it creates opportunities beyond the dealership,” Smith said. “We want our growth to support employees, strengthen families and give us the capacity to help organizations making a difference across Utah.” Smith was nominated for the TIME Dealer of the Year award by Craig Bickmore, assistant executive director of the New Car Dealers of Utah. Smith and his wife, Catherine, have two daughters: Annie and Olivia. Dealers are nominated by the executives of state and metro dealer associations around the country. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will select one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists will receive $5,000 for their favorite charities, and the winner will receive $10,000 to give to charity, donated by Ally. In its 16th year as exclusive sponsor, Ally also will recognize dealer nominees and their community efforts by contributing $1,000 to each nominee’s 501(c)(3) charity of choice. Nominees will be recognized on ally.com/go/tdoy, which highlights the philanthropic contributions and achievements of TIME Dealer of the Year nominees. “The TIME Dealer of the Year program recognizes dealers who pair excellence in the automotive industry with an enduring commitment to the communities they serve,” said Jessica Sibley, CEO of TIME. “TIME is proud to partner with Ally to celebrate their achievements and spotlight the standard of leadership they set across the country.” “Great dealerships are built by people, and the 2027 TIME Dealer of the Year nominees prove it,” said Doug Timmerman, president of Dealer Financial Services, Ally Financial. “These leaders invest in the teams who help customers through one of the biggest purchases of their lives and show up for the communities they call home. We’ve seen it firsthand at Ally, where dealers who lead this way do it not for recognition, but because it’s who they are. That’s what it means to do it right, and we’re proud to celebrate it.” 7 UTAH AUTO DEALER
FTC Issues Dealer Advertising FAQs BY BRAD MILLER, CO-CEO & CHIEF LEGAL OFFICER, COMPLYAUTO Letters from the Federal Trade Commission (FTC) to 97 dealer groups earlier this year put dealers on notice about price advertising, and while the letters gave clear direction in some respects, they also raised several important unanswered questions for dealers. The FTC has now issued its long-awaited “Frequently Asked Questions” document, which it promised would address open issues for dealers and further clarify what the FTC wants from dealers in their advertisements. The bottom line remains that the FTC is laser-focused on dealer advertising, and dealers must ensure that price advertising is clear, complete, and not misleading, and that their ads (in whatever medium they appear) are consistent and meet all other federal and state requirements. The FAQs provide further clarification on several open questions. However, they also leave several key questions unanswered and, in some cases, introduce new ones that dealers need to address. The key issues addressed in the FAQs are outlined in the following. Clarification #1: All Non-Mandated Government or Quasi-Governmental Fees Must Be Included in the Price The FAQs clarify that government-required charges such as state tax may be excluded from the advertised price. The key in determining if a required amount may be excluded is whether a federal, state or local government agency requires the consumer to pay that amount directly to the government. That means that any other fee the dealer requires must be included in the advertised price. This expressly includes dealer-required fees that (a) governments authorize but do not mandate and (b) governments require the dealer to pay but that the dealer passes on to the consumer. The bottom line is that certain non-tax-related fees paid to the state or quasi-governmental charges — such as electronic titling fees, smog and emissions fees, etc. — may NOT be excluded from the advertised price. Note that we will be issuing another document soon that addresses the status of these specific charges in greater detail, on a state-by-state basis. Clarification #2: The Rules Apply to Ads in Any Medium It has been clear for some time that the FTC applies the same rules to any advertisement, regardless of where or how it appears. Advertisements that appear in a dealership or third-party website, on social media, in print advertising or even on a roadside sign must comply with all of the advertising requirements under state and federal law. The FTC notes for internet advertising specifically, any webpage that states an amount a consumer may pay — including inventory search pages and individual vehicle listing pages — must display the actual price as the most prominent amount. Notably, the FTC states in the FAQ that even phone calls and text messages from dealership staff are considered to be advertisements. That means dealers must ensure that, if these communications include a price, the price is truthful and transparent. This was not a prominent focus of the FAQs, but it represents a potentially new and important compliance focus for dealerships. Clarification #3: MSRP Can Be Displayed or Referenced The FAQs clarify that dealers may reference the MSRP or advertise discounts and rebates, but only if the actual price remains the most prominently displayed amount and consumers understand what they would need to pay. 8 UTAH AUTO DEALER
Prominence is not merely a function of font size; placement matters too. A larger (in font size) actual price can still lose prominence if a smaller MSRP is positioned where it is more likely to draw the eye, and confusing juxtapositions of labels near both numbers can undermine an otherwise compliant ad. A conditional discount — say, $1,000 off for first responders or $2,000 off for using dealer financing — is permissible so long as the full price that any consumer could pay is displayed most prominently and the terms of the discount are clear. Clarification #4: Fee Disclosures Apply to Lease Ads The 97 letters did not address lease advertisements directly. The FAQs clarify that the prohibition on deception applies equally to sales, financing and leasing. Specifically, any required processing fees (which presumably include other required dealer fees, such as doc fees) due up front under a lease must be included in a lease advertisement that states the total amount due at signing. The FAQs also remind dealers that its requirements do not alter dealers’ separate obligations under the Consumer Leasing Act (Regulation M), the Truth in Lending Act (Regulation Z) or other federal laws. Clarification #5: In-Transit Vehicles May Be Advertised If Clearly Disclosed The FAQs note that it is not inherently deceptive to advertise a vehicle that is not physically on the lot — in transit from the manufacturer, stored offsite or available through inventory sharing — but the ad must plainly state that the vehicle is not on the lot. Moreover, vehicles advertised as in transit must actually be available for purchase after arrival and not already allocated to another buyer’s paid order. Advertising a vehicle that has already been sold and delivered to lure consumers in and steer them toward higher-priced options is a prohibited bait-and-switch tactic. The FAQs do not specifically address whether “in-production” vehicles may be advertised, but they imply that this could be problematic, stating that “the car must actually be in transit.” While not clearly prohibited, caution should be exercised when advertising an “in-production” vehicle for sale, especially if that vehicle is not likely to be available for some time. Clarification #6: Vehicle Photos Must Not Be Deceptive A representative or stock photo may be used in a vehicle ad only if it truly represents the vehicle offered. In other words, it must be identical in make, model, condition and other material characteristics, and a reasonable consumer must understand the image to be illustrative. This is more common for new vehicles and cars in transit, where units are largely interchangeable. For used cars, which rarely match one another in condition, consumers reasonably expect the photo to depict the exact vehicle for sale. Clarification #7: OEMs Share Accountability for Violations The FTC assigns responsibility to everyone with control over the advertising. Dealers must ensure the pricing they advertise is accurate, provide third parties with the correct price, take all steps within their control to ensure it is displayed most prominently and avoid giving contradictory internal instructions. Third-party advertisers must ensure the accurate price appears most prominently wherever any amount is stated. OEMs must ensure their own policies and practices do not conflict with these requirements. In short, accountability is shared across the advertising chain. That said, this does not indicate in any way that a dealer will not be responsible for advertising, even if an OEM or other third party controls that advertisement. Dealers must ensure that all ads appearing in any medium under their name are compliant and should not expect to be “off the hook” if an ad originated from the OEM. Practical Takeaways • Advertise the true, all-in price any consumer can pay; exclude only charges the government requires the consumer to pay directly. • Make the actual price the single most prominent number — accounting for placement, not just font size — across every medium, including listing and search pages. • Fold mandatory document, processing and similar dealer-required fees into the advertised figure, using the highest mandatory amount any consumer might owe. • Treat state-law disclosures as additive to, not a substitute for, the federal prominence requirement. • Clearly disclose when a vehicle is not physically on the lot and use stock photos only where genuinely representative. • Recognize that dealers, third-party advertisers and OEMs each bear responsibility for compliant price advertising — but dealers will still be responsible for all ads appearing under their name. The FAQs align with the guidance ComplyAuto has been providing to dealers, and we are more than ready to ensure you meet the FTC’s requirements. ComplyAuto’s Guardian is the industry’s only software tool that ensures your ads meet all federal and state advertising requirements — regardless of the medium in which they appear, including emails and text messages. Visit complyauto.com/schedule-demo to learn more about how Guardian can help you. 9 UTAH AUTO DEALER
Is Your Dealership Ready to Explore Alternative Benefits Strategies? BY HUB INTERNATIONAL Family-coverage healthcare premiums have increased 26% over the past five years, outpacing wage growth and inflation, according to KFF’s 2025 Employer Health Benefits Survey. The employers gaining visibility into what’s driving those costs — and the tools to manage them — are increasingly turning to a category of strategies once reserved for large corporations. For many small- and mid-sized employers, the question is no longer whether alternative employee benefits strategies exist — it’s whether their organization is ready to pursue them. The landscape has evolved considerably. Level-funded health plans, medical stop-loss captives for employers, reference-based pricing and partially self-funded health insurance offerings are increasingly accessible to small- and mid-sized employers. The healthcare cost-control strategies that large corporations have long used to manage their benefits spend are within reach for a much broader segment of the market than most employers realize. Accessibility is only part of the equation. The right alternative benefits funding strategy depends on a careful evaluation of where your organization is today in terms of workforce demographics, claims history, financial position, risk tolerance and cost management objectives. The employers getting the most value from these strategies have something in common — they’ve matched the right approach to their specific workforce, claims profile and financial position. What’s Driving Your Healthcare Costs? The starting point for any alternative strategy evaluation is claims data. Employers who have access to detailed claims reporting — whether through a current self-funded or level-funded arrangement or through a data-sharing agreement with their carrier — are better positioned to evaluate alternative strategies than those operating without visibility into their cost drivers. If your organization is currently fully insured and lacks access to claims data, that isn’t a disqualifier — it’s a starting point. The first step is often working with technology tools to capture your plan experience or building the data infrastructure needed to make an informed decision, alongside an advisor who can help you access and interpret that information. How Has Your Claims Experience Trended? Organizations with stable, predictable claims histories are typically the strongest candidates for alternative benefits strategies — particularly medical stop-loss captives for 10 UTAH AUTO DEALER
employers and partially self-funded health insurance for small employers. A workforce with favorable health trends and a manageable prevalence of chronic disease is well-positioned to benefit from structures that allow employers to share in underwriting profits or recapture unused claims dollars. Employers with more complex claims profiles have meaningful options. Minimum essential coverage (MEC+) plans, reference-based pricing and certain level-funded health plans deliver real value even for organizations with higher-risk populations. The key is matching the right strategy to the actual risk profile of your workforce. What Is Your Organization’s Risk Tolerance? Alternative benefits funding strategies reshape the employer’s relationship with financial risk. Employers assume greater responsibility for claims funding in exchange for greater control, transparency and potential financial upside. Stop-loss protection mitigates catastrophic exposure, and understanding your financial position and your capacity to absorb variability in claims spending is part of choosing the right structure. For organizations exploring alternative funding for the first time, level-funded health plans for small- to mid-size businesses offer the most predictable financial structure, with fixed monthly payments, stop-loss protection and the potential for a year-end refund if claims run favorably. They’re a natural starting point for employers who want to evaluate the model before committing to a more advanced structure. Is Your Leadership Team Aligned? Successful implementation of an alternative employee benefits strategy requires organizational alignment that extends beyond the HR and benefits function. CFOs and finance leaders need to understand the financial structure and cash flow implications. Operations and people leaders need to support any changes to plan design or provider access that accompany the transition. Employers who have built internal consensus around the goal of greater healthcare cost control move quickly and decisively when the right strategy is identified. Where to Start Readiness isn’t binary. Most employers exploring alternative benefits funding strategies are somewhere on a continuum: curious about their options, gathering data or actively evaluating a specific approach. The most useful starting point is a clear-eyed look at where your organization stands today, including your claims history, how your leadership team is aligned and the level of financial engagement your organization is prepared to take on. For organizations facing repeated premium increases with limited visibility into what’s driving them, the case for exploring healthcare cost-control strategies is straightforward. For those still building the data infrastructure or internal alignment needed to make a move, the evaluation process itself has value; it positions your organization to act with confidence when the time is right. For most organizations, the natural entry point is at least 120 days before your benefits renewal date. If that window is on the horizon, the readiness conversation should start now. HUB’s Alternative Risk Solutions (Employee Benefits) practice specializes in helping small- and mid-sized employers evaluate the full spectrum of alternative benefits funding options and identify the right starting point for their organization. Contact a HUB advisor to start the readiness conversation. Learn more at hubinternational.com. For many small- and mid-sized employers, the question is no longer whether alternative employee benefits strategies exist — it’s whether their organization is ready to pursue them. 11 UTAH AUTO DEALER
For about a century, franchised dealerships enjoyed a built-in advantage in service. They sold the vehicle, knew its history, employed factory-trained technicians, used only factory parts and had direct access to the manufacturer. For many vehicle owners, returning to the dealership for service was simply what you did. That assumption is disappearing. Today’s vehicle owner has more choices, more information and considerably less patience. Independent repair shops, national chains, tire retailers, mobile technicians and direct-to-consumer automakers have all changed the definition of service convenience. At the same time, consumers can research a repair, compare prices, read reviews and even use artificial intelligence to decide where to take their vehicle before ever speaking with a service advisor. Vehicle Owners The Service Experience Is the Product BY SEAN REYES, CHIEF MARKETING OFFICER, ARMATUS DEALER UPLIFT 12 UTAH AUTO DEALER
The result is an uncomfortable reality for dealership leadership. A customer can love the vehicle they bought from you and still have no reason to service it with you. That is the retention problem fixed-operations leaders need to solve. The Customer Is Not Abandoning Dealers. Dealers Are Losing the Experience. The numbers tell an interesting story. Cox Automotive’s 2025 Service Industry Study found that dealerships’ share of national service visits has fallen from 33% in 2018 to 29%, a 12% decline in dealership service visits over the period. Yet average dealership service and parts revenue reached approximately $9.23 million in 2025, up 33% in eight years. Meanwhile, more than 300,000 automotive repair businesses now operate in the U.S. That creates an important paradox. Dealers are making more money in fixed operations while losing share of the service market. And the competition isn’t necessarily winning because it has better technicians. It’s winning because it is often easier to do business with. In more recent years, some franchise dealerships have turned to mobile servicing, valet service, more loaner car availability and a full range of amenities intended to win that business back. J.D. Power’s 2026 U.S. Customer Service Index found that dealership service satisfaction improved three points, but dealers continue to face significant competition from aftermarket providers focused on speed and convenience and from direct-to-consumer brands offering mobile and valet service. On average, mass-market customers spend 1.61 hours waiting for maintenance at a dealership, while 62% of comparable aftermarket service visits take less than an hour. The aftermarket has figured out something important: Customers don’t want to service their cars. They want their cars serviced with as little disruption to their lives as possible. Dealers need to figure it out, too. Convenience Is Not a Luxury Anymore Consider the customer’s perspective. They have a job. Kids. Meetings. Errands. School. Traffic. A commute. A phone that never stops. Then the dealership says, “We can get you on Thursday at 9:40 in the morning.” The independent shop says, “Drop it off tomorrow morning. We’ll text you when it’s ready.” The independent shop may not have factory-trained technicians or access to the manufacturer’s complete technical ecosystem. But it has solved a problem the dealership hasn’t: It made the customer’s life easier. That’s why convenience needs to become an operating strategy, not a marketing slogan. Dealerships should aggressively evaluate: • After-hours or early morning vehicle drop-off • Pickup and delivery • Mobile service • Valet service • Rideshare integration • Express maintenance • Online scheduling • Real-time text updates • Digital approvals • Digital multipoint inspections • More liberal vehicle loaner policies • Upfront estimates, where appropriate • Extended service hours • Faster check-in and checkout Cox found that 55% of consumers consider the ability to compare service costs online very important. The same study found that 45% of vehicle owners were dissatisfied with their dealership service experience, with unexpected costs and poor communication among the primary frustrations. Interestingly, average dealership repair spending was $261 compared with $275 at general repair shops. That’s a remarkable finding. The dealership may not actually be more expensive. It may simply do a worse job of explaining the value. Dealers Have Advantages. Start Acting Like It. The answer isn’t for dealerships to become independent repair shops. It is to take the best things about the aftermarket and combine them with advantages that the aftermarket cannot easily duplicate. J.D. Power’s 2025 Aftermarket Service Index found that dealership customers expressed greater trust in dealerships’ use of technology to make service more efficient than customers of aftermarket providers. Dealerships also held an advantage in customer trust for complex vehicle repairs. That’s ammunition. Factory-trained technicians matter. OEM diagnostic equipment matters. Technical service information matters. Recall and campaign expertise matter. Vehicle history matters. Warranty knowledge matters. OEM parts matter. Access to factory engineering information matters. But these advantages are meaningless if the customer experiences the dealership as slow, expensive, confusing or indifferent. Or worse yet, if the dealership isn’t repairing the recall because parts aren’t in stock or the recall was never caught. What does it say to a vehicle owner when they pick up their vehicle, and the check engine light has not been cleared? The service department has to translate technical superiority into incomparable consistency, customer value and streamlined convenience. Instead of saying, “We have factory-trained technicians,” explain what that means for the customer. Instead of saying, “We use OEM parts,” explain why that matters. Instead of sending a 15-line inspection report, show the customer a photograph of the worn component. 13 UTAH AUTO DEALER
Instead of telling someone their brakes are at 3 millimeters, show them what 3 millimeters looks like. Instead of calling after the vehicle has been sitting for six hours, send a text when the technician begins the diagnosis. J.D. Power found that communication is among the most influential components of dealer service satisfaction. In its 2025 study, four of the 10 most influential KPIs were communication-related, including keeping customers informed, focusing on customer needs, immediately greeting customers and following up after service. That’s not complicated technology. That’s operational discipline, and it may be the reason why dealerships are turning towards more automated AI solutions. Win the First Five Minutes Service departments spend enormous amounts of energy trying to sell more work. They should spend more energy making customers feel that they made the right decision by coming there. The first five minutes matter. The advisor should know the customer’s name. The advisor should know why the vehicle is there. The customer should understand what will happen next. The expected completion time should be clear. The communication preference should be established. And if something changes, the customer should hear about it before having to call. It sounds basic. It is. And yet J.D. Power found that the immediate greeting of customers occurs only about half the time. A dealership cannot create loyalty while making customers wonder whether anyone knows they arrived. When Things Go Wrong Eventually, something will go wrong. The repair takes longer than expected. A part doesn’t arrive. The vehicle needs more work. The original diagnosis changes. The customer sees a larger bill than anticipated. The vehicle isn’t fixed correctly. The customer becomes angry. This is where great service departments separate themselves from average ones. J.D. Power’s 2025 CSI study found that 12% of repairs were not completed correctly on the first visit. The two most common reasons were that the work performed did not correct the problem, and the necessary parts were unavailable. Among customers whose repair wasn’t completed correctly the first time, only half said they returned or planned to return to the dealership. That’s a devastating retention statistic. A mistake doesn’t necessarily destroy the relationship. How the dealership handles the mistake often determines whether it does. The advisor’s first responsibility is not to win an argument. It is to lower the temperature. Five Rules for Diffusing an Angry Customer 1. Let the customer finish: Don’t interrupt with an explanation. The customer isn’t necessarily asking for agreement. They want to know someone actually heard the problem. 2. Acknowledge the inconvenience before explaining the policy: “You’re right to be frustrated. We told you the vehicle would be ready today, and it isn’t.” That sentence can accomplish more than five minutes of corporate explanation. 3. Separate the emotion from the facts: A customer can be legitimately angry without being correct about every detail. Don’t challenge the customer’s entire story. Identify what is true, what isn’t and what can be done next. 4. Give the customer a path forward: Angry customers want control restored. Tell them exactly what happens next, who is responsible and when they will receive an update. 5. Close the loop personally: Don’t assume the problem disappeared because the customer picked up the car. Call them. Ask whether the vehicle is operating properly. That final contact can turn a negative experience into evidence that the dealership cared enough to fix it. But What About the Customer Who Wants a Discount? There is another issue dealerships increasingly need to confront. Some consumers have learned that complaining can produce concessions. A customer may be genuinely dissatisfied. Another may simply believe that dissatisfaction is the opening move in a negotiation. Those situations cannot be treated identically. The dealership should never establish a system where the loudest customer automatically gets the best price. That creates three problems. First, it trains customers to complain. Second, 14 UTAH AUTO DEALER
it punishes reasonable customers who don’t complain. Third, it teaches employees that the easiest way to resolve conflict is to give money away. Instead, leadership should establish a service-recovery framework. Not every problem deserves a discount. Some deserve an apology. Some deserve better communication. Some deserve expedited treatment. Some deserve a complimentary service. Some deserve management involvement. And legitimate errors may absolutely warrant financial compensation. The key is consistency. A customer shouldn’t receive $100 off because they became angry, while another customer receives nothing because they calmly explained the exact same problem. Empathy should be unlimited. Discounts should not be. That’s an important distinction for service managers. Stop Measuring Satisfaction as the Finish Line Customer satisfaction is useful, but retention is the real objective. Cox Automotive’s 2025 Fixed Ops and Ownership Study found that trust was the No. 1 reason consumers gave for returning to the dealership where they purchased their vehicle. Twenty-two percent selected trust, ahead of the deal they received on the vehicle at 12%, knowledge of service history at 11%, location at 8% and general friendliness at 8%. Even more important, the value of service loyalty extends beyond the service lane. Among consumers who had returned to the dealership for service during the previous 12 months, 74% said they were likely to repurchase from that dealership. Among those who had not returned for service, only 44% said they were likely to repurchase. Cox also found that 88% said their service experience affects their likelihood of returning to the dealership for a future vehicle purchase. That’s the lifetime-value argument. A retained service customer isn’t just another repair order. That customer can generate revenue ranging from future customer-pay labor to parts revenue, maintenance revenue and future vehicle purchases. At the least, these customers are a huge resource for social validation and referrals. The service lane is therefore not merely a profit center. It is one of the dealership’s most important customer-retention engines. The New Service Experience Playbook Fixed-operations leaders should consider five strategic priorities. 1. Make convenience measurable: Track appointment availability, time-to-first-contact, check-in time, repair cycle time and pickup time. If convenience is important, measure it. 2. Communicate before customers have to ask: Text updates should not merely say, “Your vehicle is still being worked on.” Tell customers what happened, what the technician found and what comes next. 3. Make recommendations visually: Use photos, videos and clear explanations. The goal isn’t to create fear. It’s to create understanding. 4. Make service recovery consistent: Create guidelines for when advisors can resolve problems themselves and when a manager should become involved. Give employees authority to solve reasonable problems without requiring a manager’s approval for every minor issue. 5. Connect service to the entire ownership relationship: The customer’s service history should inform the next sales interaction. The sales department should know when a customer is approaching a major repair decision. The service department should know when a customer may be nearing a trade cycle. The dealership should operate as one relationship — not two departments fighting over the customer. Opportunity Is Hiding in Plain Sight The industry doesn’t have a shortage of reasons for consumers to service their vehicles at dealerships. It has a shortage of reasons that feel compelling to consumers. The factory relationship is valuable. Factory-trained technicians are valuable. OEM parts are valuable. Technical expertise is valuable. Vehicle history is valuable. Warranty and recall expertise is valuable. But consumers don’t wake up in the morning thinking, “I really hope I can find a factory-trained technician today.” They think, “I need my car fixed. I don’t have time for this. And I don’t want to get ripped off.” That’s the job. Give them confidence, convenience, transparency and communication, and when something goes wrong, give them a human being who takes ownership of the problem. The dealerships that win the next generation of service customers won’t necessarily be the ones with the biggest waiting rooms or the most aggressive discounts. They will be the ones who understand a simple truth: The customer isn’t buying a repair. They’re buying the feeling that their vehicle and time are in good hands. And when a dealership consistently delivers that feeling, service retention stops being something the dealership has to chase. It becomes something customers choose. Sean Reyes oversees all marketing efforts at Armatus Dealer Uplift as chief marketing officer. Sean’s experience spans more than 35 years of business development and strategic marketing experience, having developed go-to-market products and solutions for the automotive, healthcare, insurance, finance and technology industries. Sean has an extensive network in automotive, having served as one of the original team members that founded Recall Masters. He spent more than 10 years advocating for vehicle safety and supporting dealer warranty reimbursement related to recall repairs. 15 UTAH AUTO DEALER
CFO Insights: AI in the Automotive Dealership BY FORVIS MAZARS In Forvis Mazars’ recent peer group for automotive dealership chief financial officers (CFOs), the group focused much of its discussion on artificial intelligence (AI). If you’re an automotive dealer owner, CFO or another leader in the dealership organization who is looking to hear best practices or lessons learned from other dealers, keep reading. The observations in this article reflect an anonymized discussion and are intended as practical discussion points rather than a statistical survey. How Should Auto Dealership CFOs Govern AI Before Scaling It? As dealership groups experiment with AI, CFOs are weighing how quickly to adopt new tools against the need for governance, privacy protection and consistent internal controls. The discussion began with questions about which AI platforms groups are using, whether those tools are protected within the organization, and what types of information employees are allowed to enter. One CFO said their organization began with an AI governance policy developed with outside counsel and then reviewed it against existing corporate, privacy and HR policies. Another CFO adopted Claude and said the IT team built restrictions to prevent certain sensitive information from being entered. Participants emphasized that governance is not just a legal exercise. It also shapes adoption, training and trust. Several CFOs discussed the importance of reviewing AI outputs, monitoring for hallucinations, avoiding hard-coded numbers in AI-generated spreadsheets, and ensuring employees retain the underlying math and process knowledge needed to validate AI-assisted work. Many organizations are using risk management frameworks, such as the NIST AI Risk Management Framework, as a reference point for AI governance, risk assessment, monitoring and oversight. How Many AI Licenses Should an Auto Dealership Start With? Rather than rolling AI out across the entire organization immediately, several CFOs described a more measured approach. One organization avoided an enterprise-wide deployment because a full rollout could have represented a significant annual investment, choosing instead to begin with a smaller controlled user group. Another group chose an enterprise agreement with Claude and limited initial access to about 50 internal users to maintain better control. Dealership groups choosing smaller control groups attested that this allowed leadership to test use cases, monitor costs, and identify where AI created meaningful productivity and efficiency gains. Examples included complex portfolio dashboards, dealership balance sheet analyses, executive summaries, valuation summaries, and legal or operational training materials that previously required substantially more time and manual effort. Which AI Tool Is Best for Dealership Finance, Operations and Workflows? CFOs compared Copilot, Gemini, ChatGPT and Claude, noting that different tools appear better suited to different types of work. The discussion suggested that Copilot was useful within Microsoft applications, while several CFOs felt that Claude was stronger for more complex projects, analysis and structured tasks. One CFO noted that Copilot had been enabled broadly for managers, while Gemini Enterprise (Google) was used by some IT team members. The broader takeaway was that dealership groups may need to match the tool to the use case rather than assume one platform will satisfy every department’s needs. Where Are Auto Dealerships Using AI Beyond the Accounting Office? The discussion highlighted that AI use is expanding beyond finance and accounting. One CFO said service departments are using Copilot to help diagnose vehicles and respond to customer questions based on diagnostic information and customer complaints. Another said a general manager uses Claude to create a daily morning briefing 16 UTAH AUTO DEALER
by synthesizing multiple reports and email updates, helping the general manager quickly focus on priority items. Participants also cited use cases in marketing, communication strategy, customer complaint responses, business development, policy writing, training materials, insurance claims forms, valuation support, private equity term sheet review and dealership financial statement analysis. Several groups are also using AI to clean up existing procedure manuals and draft new procedures for review and approval. Should Dealership CFOs Build Data Lakes or Rely on AI-Enabled Vendor Tools? As vendors increasingly position themselves as AI-enabled, CFOs discussed how to separate practical value from inflated claims. Several said they are testing both broad AI tools and specialized vendors while watching for overlap across systems already used in the dealership. One CFO described using an AI-enabled data warehouse and reporting tool to upload policies and procedures and query both policy content and financial data. Another described using a data lake to combine DMS data, customer relationship management (CRM) data, CSI data, website data, loaner data, original equipment manufacturer (OEM) inputs and other sources for AI-supported analysis. The discussion raised a strategic question for dealership groups: whether to build internal data lakes and reporting environments or continue relying on vendor bolt-ons. One CFO noted that building a data lake can require meaningful investment and technical resources, while another suggested that AI may reduce some of the heavy lifting that previously required consultants. How Can Dealership Groups Control Vendor Redundancy as AI Tools Multiply? Several CFOs discussed the challenge of controlling redundancy when stores or general managers pilot new vendor products. Participants mentioned advertising and vendor spreadsheets, financial reviews, marketing leadership reviews, vendor approval controls, IT access controls, and systems such as DealerVault as ways to increase visibility and discipline. At the end of the day, one CFO noted, his office approves every expense that comes through the dealership and make sure their services do not overlap with one another. Marketing data platforms were also part of the conversation. Participants discussed tools designed to aggregate customer and marketing data in one place and noted that owning and organizing data could eventually help reduce or renegotiate third-party vendor costs. Can AI Automate Dealership Accounting Tasks, or Is It Still Mainly an Efficiency Tool? One CFO asked whether groups have moved beyond AI-assisted analysis into true task automation for accounting processes such as floor plan reconciliations, OEM postings, factory statement entries, payroll tasks, commission calculations and other manual, spreadsheet-heavy work. Several CFOs said automating accounting office tasks is a goal, but most are not there yet. One CFO is considering outside help to build structured AI projects, train controllers or store champions, and identify repetitive tasks that can be automated or standardized. Another suggested reverse engineering existing reconciliations by asking AI to analyze current workpapers and create an instruction set that could then be used to build a repeatable process. The group generally framed the near-term opportunity in terms of time savings, greater consistency and improved training rather than an immediate headcount reduction. Participants also emphasized the importance of trusted human review, testing, sampling and avoiding write-back to core DMS systems without controls when AI is cleaning or changing data. Should Dealerships Block Public AI Tools on Company Networks? As enterprise AI licenses roll out, CFOs also discussed whether to restrict access to public AI sites on company networks. The responses were consistent: It is important to block public tools on company machines, reinforce policies through HR acknowledgments and warn employees not to upload company or customer data into public AI tools. Network restrictions are only one part of the control environment. Even when public AI tools are blocked on company devices, employees may still be able to access them from personal phones or personal accounts, which makes policy communication and ongoing education critical. Several CFOs discussed the need to clearly define what types of information can and cannot be entered into AI tools, especially when customer data, employee information, financial records or other sensitive dealership information may be involved. The common theme was that blocking access may help to reduce risk, but it does not replace the need for training, governance and practical detective controls. To Wrap It Up: AI for Automotive Dealerships As your dealership drives down the road of AI, identifying which tools to use, how to employ them at scale, and how to remain compliant while achieving return on investment will depend on your goals, long-term strategy and organizational structure. Most important is keeping customer data safe and identifying the best use cases for the areas of the organization you want to focus on. As dealership groups evaluate AI opportunities, the challenge is no longer simply choosing a tool. Success depends on aligning AI initiatives to business objectives, protecting sensitive data, identifying high-value use cases and creating a roadmap for sustainable adoption. Forvis Mazars combines deep automotive dealership experience with AI, technology and process transformation capabilities to help dealers move from experimentation to measurable results. Learn more at forvismazars.us. 17 UTAH AUTO DEALER
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