2025 Pub. 6 Issue 3

2025 ISSUE 3 THE OFFICIAL PUBLICATION OF THE VIRGINIA AUTOMOBILE DEALERS ASSOCIATION INTRODUCING ROGER KELLER 2025‑26 VADA Board Chair

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©2025 Virginia Automobile Dealers Association (VADA) | The newsLINK Group LLC. All rights reserved. Virginia Auto Dealer is published four times per year by The newsLINK Group LLC for VADA 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 VADA, 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. Virginia Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of VADA. 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 (855) 747-4003. CONTENTS 2025 PUB. 6 ISSUE 3 A MESSAGE FROM PRESIDENT AND CEO DON HALL 4 What Was Once Fun and Games Is Bottom-Line Gains The Growing Role of AI in Dealerships 6 Introducing Roger Keller, 2025‑26 VADA Board Chair A Steady Hand, Relentless Work Ethic and a Commitment to Communities 8 A Look Back at VADA ‘25 14 Greenfield Outlines Future of Automotive Retail 18 Reset and Retool: Dealers Meet 2025 With Resilience Tariffs and Their Impact on the Economy Will Test Dealers’ Resilience By Truist Dealer Services 22 Virginia Dealers Shifting Gears for Good 25 VADA 2026 26 Leadership 27 Thank You VADA Allied Members 28 Thank You VADA Program Partners 30 VADA PAC United as One for the Franchise System 8 6 18 vada.com 3

What Was Once Fun and Games Is Bottom-Line Gains The Growing Role of AI in Dealerships In late 2022, like many around the world, several of us at VADA gathered around a computer, intrigued by a new artificial intelligence “chatbot” (a term I’d never even heard before) called ChatGPT. We asked it to make up silly stories. We quizzed it on the automotive industry. One of our staffers even had it compose a poem about dealerships in a matter of seconds, which he later read at a board meeting. It was fun and games — entertaining, yes, but at the time, we didn’t fully grasp its potential. Today, that potential is impossible to ignore. Dealers are taking AI seriously. Some are early adopters, actively integrating it into operations. Others are cautiously exploring. But nearly all are asking the same question: “How can this technology help my store run smarter, faster and more profitably?” This summer, our team met with several automotive retail technology companies that are embracing AI. Its presence was unmistakable at our Annual Convention — not just in the buzz, but in the tools already in use. Our partners at Digital Air Strike now offer AI-powered customer chatbots that deliver a true concierge experience. These tools can engage prospects 24/7, answer qualifying questions, schedule service or sales appointments and even provide personalized offers — instantly. Over at ComplyAuto, their DealCheck AI is automating compliance tasks that once took hours. The tool scans for missing documents and errors before a deal is submitted, reducing unfunded deals, preventing chargebacks and freeing your team from the grind of paperwork — so they can focus on selling cars. Here at VADA, we have held several meetings with industry players. Among them: Constellation and Co-Founder/CEO Diana Lee. She is a true car person, with more than 30 years in the industry, starting as a receptionist and working her way up to a successful sales professional and today an industry leader consulting with numerous manufacturers. In a time when every company is claiming to have AI in their products, Constellation has developed a true dealership AI with absolutely remarkable capabilities. VADA has been working to develop AI partnerships with companies that we believe are actually leveraging this amazing technology creating breakthroughs that will change our business. But AI isn’t just about efficiency and customer service — it’s also about empowering your people. At our June convention, Joe St. John, AutoFi VP of Training and a NADA Academy instructor, made a compelling case for why dealerships need to reimagine their sales processes with AI in mind. His point was clear: Too many stores are using 30-year-old processes in a 2025 marketplace. The result? Frustrated customers, disengaged Gen Z sales reps and missed opportunities. St. John cited the story of one young salesperson who used automation to streamline lead follow-ups and manage workflow — and sold 42 cars in a single month. AI helped him start paperwork, direct buyers to inventory and even assist with F&I — all without ever taking a lunch break. To be clear, dealerships will always need great people. AI won’t replace your team, but it can supercharge them. It’s like giving your best staff a tireless assistant who never sleeps, eats or calls in sick. And adoption is growing fast. According to CDK Global’s 2024 Automotive Retail Friction Point Study, 52% of dealers say they’re already using some form of AI or automation, up from just 19% in 2021. What was once a novelty is becoming standard. We’ll be sharing much more in the months ahead, including a podcast featuring Virginia dealers who are already blazing the AI trail. Whether you’re all-in or just dipping a toe in the water, AI is no longer a futuristic concept. It’s a here-and-now opportunity to create a better experience for your customers, your team and your bottom line. A MESSAGE FROM PRESIDENT AND CEO DON HALL 4 Virginia Auto Dealer

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?® JL Winslow, jl.winslow@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.

Roger Keller at the VADA Annual Convention with legislators Laura Jane Cohen (D-Fairfax), left, and Brianna Sewell (D-Woodbridge), right. Sewell carried VADA’s warranty legislation bill in the 2025 General Assembly. Roger Keller didn’t set out to chair two state automobile dealer associations. In fact, he wasn’t even looking to leave Indiana. But after nearly four decades in the automotive industry, Keller has proven himself to be a leader defined by consistency, humility and a deep respect for the people and communities he serves. Today, Keller serves as vice president and platform director for Sheehy Auto Stores, overseeing seven dealerships in Virginia (three in Richmond, one in Warrenton and three in Fredericksburg). And as of July 1, he is the newly appointed chair of the Virginia Automobile Dealers Association — believed to be the only person to serve as an automotive trade association chair in two different states, having previously held the role in Indiana. Don Hall, VADA’s president and CEO since 1988, says Keller brings a rare mix of operational excellence and personal integrity to the role. Introducing Roger Keller, 2025‑26 VADA Board Chair A Steady Hand, Relentless Work Ethic and a Commitment to Communities “Roger is a statesman, a steady hand and a servant leader,” Hall says. “He listens more than he talks, puts people first and leads with humility. While Roger doesn’t come from a family of auto dealers, this industry is absolutely in his blood, and dealers and their teams across Virginia will benefit from his wisdom and quiet strength.” ROOTED IN THE MIDWEST, GROWING ON THE EAST After graduating from Troy University, Keller joined the auto industry in 1987 following a stint in business phone sales at AT&T. Encouraged by his wife, Teresa, and intrigued by the opportunity and entrepreneurial nature of dealership life, he joined Tom Wood Automotive Group in Indianapolis. It turned out to be a nearly 31-year career with the company, one that saw him rise from finance manager to chief operating officer. In 2017, Keller made the leap to Sheehy, prompted by longtime industry colleagues and a serendipitous series of conversations — including a memorable Zoom interview with Paul Sheehy, conducted by the co-owner and used car director from a pub in Ireland. Sheehy Auto Stores is the 32nd largest dealer group in the nation and sells more than 45,000 vehicles a year across 30 dealerships from Hagerstown, Maryland, to Richmond, Virginia. The decision meant moving his family from Indiana to Northern Virginia — a change he didn’t take lightly. “My wife stayed behind for three years while our kids finished school,” recalls Keller. “She held the fort down. She deserves so much credit. I couldn’t have made this transition without her.” Today, the couple lives in Great Falls. Their daughter, Kate, works at a Montessori school in Herndon, and their son, Sam, is in his third year of medical school at Penn State. 6 Virginia Auto Dealer

As chair, Keller hopes to amplify the voices of dealers across Virginia, bringing lessons from his experience while continuing to advocate for policies that support auto retailers and the communities they serve. ADVICE FOR THE NEXT GENERATION With nearly 40 years in the industry, Keller is quick to share advice with rising leaders: Stay humble, work hard and stay put when you can. “It’s easy to chase the next opportunity,” he says. “But there’s real value in building something where you are. We promote from within at Sheehy, and we’re always looking for people ready to grow.” He also places a strong emphasis on training — something he says faded during COVID and must now be rebuilt. From emerging leader programs to executive leadership development, Sheehy is investing in its people. “If we take care of our employees,” Keller says, “they’ll take care of our customers.” Dan Banister with Roger Keller. Banister served as VADA chairman for 2024‑25 and will now serve as immediate past chair for the 2025-26 fiscal year. LEADERSHIP BUILT ON TRUST AND TRANSPARENCY At Sheehy, Keller leads by example. As platform director, he works directly with general managers on everything from financial performance to hiring, training and advertising. He’s a visible presence in stores — “My office is really my car,” he says — and a constant advocate for transparency and customer experience, particularly in finance and insurance (F&I), where he got his start. “We want to be up front and build trust,” he says. “That’s how you earn repeat business.” When it comes to emerging trends, he views artificial intelligence as a tool for efficiency — particularly for routing calls and supporting customer service — but warns that it can never replace the human touch. “People still want real connections. They want to know someone is listening and ready to help,” he says. GIVING BACK TO THE INDUSTRY Keller’s involvement with dealer associations began in Indiana, where he served on the board and eventually became chairman of the Automobile Dealers Association of Indiana (ADAI). He brought that same energy and thoughtfulness to Virginia, where he joined the VADA Board in 2019. “I never really aspired to be chairman,” Keller said. “I just wanted to serve — to make sure our team at Sheehy had a voice in meetings and to kind of give our thoughts and ideas on certain topics that would come up throughout the industry. One thing led to another, and here I am.” He also praises the leadership of VADA’s Don Hall. “I’ve worked with great association leaders,” he says, “but Don Hall runs the best association I’ve seen. He treats it like a business, and that’s exactly what it is — an extension of our own businesses.” vada.com 7

A Look Back at VADA ‘25 Last month brought VADA members, their families and friends together in Hot Springs, Virginia, for the 2025 VADA Annual Convention. For those who made it, your presence, energy and engagement made it a tremendous success. And for those who weren’t there, this issue offers you a window into our time at The Omni Homestead Resort. We also thank our many sponsors who made the event possible. View more photos and save the date for our 2026 Annual Convention at VADA.com/convention. 8 Virginia Auto Dealer

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The VADA Live video crew was on-site for VADA ‘25, getting the latest industry insights from dealers, industry experts and dignitaries. Scan the QR codes to watch the videos and see even more at VADA.com/live. How do you build a championship-level culture? Learn from former NBA champion coach Kevin Eastman as he translates elite sports principles into winning strategies for your leadership and sales teams. youtube.com/watch?v=Sma_uZdTjpI Virginia House of Delegates Speaker Don Scott shares his perspective on the vital role the automotive industry plays in the Commonwealth, and discusses the critical importance of the franchise model. youtube.com/watch?v=K60Cj12BW-Q Hear from industry legend H. Carter Myers III as he shares 60 years of insights. Learn his perspective on the critical role of dealer associations, navigating future challenges, and why a focus on people is the ultimate key to success. youtube.com/watch?v=lf5zqszQ94c Roger Keller is the 2025-26 chair. Drawing from a unique background leading two automobile associations, incoming VADA chair Roger shares his deep passion for the industry and his forward-thinking vision for the year ahead, and how VADA is navigating evolving industry challenges. youtube.com/watch?v=Ami9tXFuFFA 12 Virginia Auto Dealer

Scan the QR codes to download the presentations from our distinguished lineup of VADA ‘25 speakers. A recap of Steve Greenfield’s presentation can be found on page 14. Kevin Tynan Economic Updates vada.com/wp-content/uploads/2025/06/​ 2025-06-09-VADA_Presentation6.pptx John Dedon Estate Planning vada.com/wp-content/uploads/2025/06/ VADA-June-2025-Convention-Presentation-1.pptx Joe St. John Building Your Leadership Team vada.com/wp-content/uploads/2025/06/ Joe-St-John_Session_Live-Stage_VADA-2025.pdf Kevin John Joe vada.com 13

Greenfield Outlines Future of Automotive Retail For the third VADA Annual Convention in a row, industry analyst and investor Steve Greenfield, founder and CEO of Automotive Ventures and a respected voice in auto technology and investment, delivered a sweeping look at the current and future state of automotive retail. Greenfield drew on decades of experience and insights from both traditional and emerging markets, and walked dealers through major forces shaping their business, from EV adoption and Chinese competition to artificial intelligence (AI) innovation and evolving consumer preferences. His bottom line: The dealership model remains resilient and adaptable, but dealers must embrace innovation, stay vigilant against external threats, and never lose sight of the customer. Here are his takeaways: DEALER PROFITABILITY AND THE POST-COVID PLATEAU • Profitability remains well above pre-COVID levels, but margins are trending back toward historical norms (~2-3% net profit). “And I don’t see that changing,” he said. • The strength of the dealership model lies in its adaptability and diversification. Successful dealers manage up to eight interdependent profit centers. • Dealers’ ability to reallocate resources quickly across departments has helped maintain resilience through disruptions. 14 Virginia Auto Dealer

DIRECT SALES THREAT: REAL, BUT LIMITED • OEM enthusiasm for direct-to-consumer models like “agency sales” has cooled, largely due to the financial burden of holding inventory. • Recent moves by brands like Volkswagen and Afeela (the Honda/Sony joint venture) may test the franchise model. Still, he believes most OEMs will stick with dealers due to logistical and economic realities. “With all due respect to the OEMs, I think they will quickly realize that trying to build brand new consumers is not their forte,” he said, “and they will quickly pivot to starting to push these vehicles through the dealer base.” ELECTRIFICATION: NEUTRAL FOR DEALERS … FOR NOW • Full battery electric vehicle (BEV) adoption has plateaued around 8%, and hybrids are gaining more traction — a trend we have seen in Virginia. Tesla provides half of those sales, but is a brand under duress. • Technological breakthroughs — like solid-state batteries that can be charged as quickly as filling a gas tank, plus longer range — could reignite consumer interest. • And so, dealers should prepare for a slow but inevitable shift to EVs (whether BEV or hybrid), as future generations care less about powertrain, so long as the vehicle has “utility and convenience for the consumer [and] there will be implications strategically to how you think about your business as a result.” TARIFFS AND CHINESE COMPETITION • 100% tariffs on Chinese imports (supported by both political parties) are a short-term protection strategy. “We need to hopefully encourage the legacy automakers, both here and in Korea and Japan, to have a strategy to compete against the Chinese,” he said. • The longer-term threat comes from China’s ability to produce high-quality vehicles at 70% of legacy automaker costs, as much as five times faster. China has systematically built dominance in the EV supply chain, from mining, materials and manufacturing. • He also warned dealers not to dismiss the quality of Chinese vehicles as “cheap,” as their vehicles are increasingly high quality, low-cost, and designed and built quickly. • Greenfield urged dealers to stay open-minded: Chinese brands could soon seek U.S. dealer partners, mirroring how Toyota and Hyundai entered the market decades ago. 100% 70% 4 Years 9 Months 5x Advantage CHINA LEGACY OEM CHINA LEGACY OEM COST OF PRODUCTION DESIGN TO PRODUCTION 30% Advantage vada.com 15

FIXED OPS AND CONNECTED CARS ARE A GROWTH OPPORTUNITY • Dealers capture just 30% of post-warranty service work, which could rise as cars become more connected and complex. • OEM software will increasingly and literally (through maps) guide drivers back to franchised dealers for service — a reversal of the long-term trend toward independent shops. • He sees strong upside in fixed operations if dealers invest in training, technology and service excellence. • Consumers should start thinking about adding warranties to their vehicles just as they do extended care protection for devices like smartphones, he said. AFFORDABILITY CRISIS AND REPAIR COMPLEXITY • Vehicle repair inflation has outpaced overall inflation more than 2.5 times, driven by vehicle complexity and supply chain shocks. • Megacasting and vertically integrated EV components are making vehicles harder and costlier to repair. • Insurers are becoming selective, and rising premiums could further pressure affordability and demand. DIGITAL RETAIL AND AUTONOMY • Direct online car buying is still a “rounding error” and represents a negligible portion of total car sales, so small that it’s nearly insignificant in the overall numbers. Most consumers prefer face-to-face engagement. • Autonomous vehicles like Waymo are making progress, especially in dense cities, but Greenfield sees minimal threat to dealers in the near term. ARTIFICIAL INTELLIGENCE: MASSIVE “FORCE MULTIPLIER’ POTENTIAL • AI adoption (especially automated sales agents that can work 24/7 and serve as “co-pilots” to human sales reps) could dramatically improve dealership efficiency and reduce human capital costs. “Once you train [AI agents], they are a force multiplier,” he said, noting a savvy sales rep can (and has) become far more effective. • Dealers should push vendors to integrate AI for productivity gains and begin preparing for “generative engine optimization” (GEO) — optimizing online dealership content to ensure it is picked up and indexed by AI platforms like ChatGPT or Google, and served to consumers. FOCUS ON LIFETIME CUSTOMER VALUE • The top-performing dealers, according to 20 years of 20 Group financial data, focus not on extracting maximum profit per transaction but on building long-term, generational-customer relationships. Source: WarrCloud DEALER OPPORTUNITY: LIFETIME REVENUE Source: Bank of America 16 Virginia Auto Dealer

To download Steve’s full PDF presentation, scan the QR code. tinyurl.com/steve-greenfield GREENFIELD’S FINAL MESSAGE The future is already here, but you must know where to find it. He closed with a metaphor: It took 1,800 years for humanity to realize the pottery wheel could be flipped on its side and become a wagon wheel. The key is to observe, stay calm, and not miss transformative ideas hidden in plain sight. vada.com 17

Reset and Retool: Dealers Meet 2025 With Resilience For auto retail dealers hoping for a return to normal conditions and predictability in 2025, disruption has once again taken the driver’s seat. As trade dynamics shift and their impact on the economy remains unclear, auto retailers will need to call upon their adaptability to adjust to a new set of conditions. Strong profit growth since 2019 and resilience through COVID suggest that dealers are ready to reset and retool to address today’s market. Thankfully, dealer average profitability has stabilized at nearly double the rate achieved in 2019. The most successful auto retailers will be able to maneuver to build value without shortchanging growth strategies or slowing their work. As you reset your plans for the coming years, consider the following industry trends. CONSUMER DEMAND WILL CARRY ON Auto retail demand depends on the strength of the consumer, and by most measures, the U.S. consumer is relatively healthy. Savings rates are up, as are wages. Consumer spending patterns haven’t changed. Auto financing is holding strong. The percentage of people not paying their credit card bills is low. Taken together, consumer measures point to steady demand for vehicles. Additionally, millennials and Gen Z are entering their prime years for buying cars and trucks, surpassing the baby boomers as drivers of demand. Consumers have adjusted to vehicle prices that have risen 30% over the past seven years, with a marked increase in new, used and fleet sales that have carried over from 2024 into the first part of 2025. STRENGTH IN THE USED CAR MARKET OFFERS GOOD NEWS FOR DEALERS There’s been a surge in used car demand, and we can expect even more as the year unfolds. For some time now, we’ve seen that consumers are especially interested in buying late-model used cars and trucks, keeping these values high. Higher new car prices, combined with rising insurance premiums for more expensive vehicles, nudge more buyers toward the used vehicle market. With the threat of expanding tariffs, inflation or supply chain disruptions, new car prices will be pressured further, pricing more customers out of the new car market and driving them to buy used. Enterprising dealers are already starting to get ahead of the demand surge by boosting their strategies to acquire used vehicles. Dealers can look to gain a competitive edge by sourcing a favorable mix of cars at an attractive price and marketing them to consumers who have become more accustomed to purchasing in the used car market. Combining vehicle sales in a hot and profitable used market with financing or protection products will provide even more support for dealer margins. PRICING TRANSPARENCY BENEFITS BUYERS AND DEALERS ALIKE The spike in digital shopping and purchasing has catalyzed the longer-term shift toward more transparent pricing. Retailers have tried to make it easier for customers to see exactly what a vehicle will cost them so they can determine how it will fit within their budget. That transparency applies to used car trade-ins as well. With a better understanding of the value of their current vehicle, consumers know in advance how Tariffs and Their Impact on the Economy Will Test Dealers’ Resilience By TRUIST DEALER SERVICES 18 Virginia Auto Dealer

much they can contribute toward their next car purchase. Clearer and more precise, “no-haggle” pricing also helps dealers consistently protect their margins. These policies build trust in the buying process, which bolsters consumer relationships that extend beyond the initial sale, ideally into servicing. EVs PERSIST, ESPECIALLY IN 12 STATES EV sales will continue to grow, albeit not at the pace some predicted a few years ago. Currently, buyers of commercial vehicles (e.g., Amazon vans) are the fastest adopters of EVs. Over time, we expect this trend to drive down EV prices, which will encourage more widespread adoption. Hybrid vehicles, including plug-in hybrids, are a popular alternative that helps bridge the move to fully electrified vehicles, which we expect to represent 40% of the market within the next five to 10 years. Continued headwinds to EV adoption include lagging development of charging infrastructure, consumer anxiety around trip planning due to battery range and subpar battery performance in cold climates and disaster situations (e.g., floods, hurricanes and evacuation scenarios). The used car market for EVs has been marginal at best, but some 70% of EV buyers report plans to purchase another one. In fact, 92% of EV owners in a recent survey by Global EV Alliance said they would never own another internal combustion vehicle.1 The interesting growth story will be in the 12 states phasing in EV vehicle mandates starting in 2026, 2027 or 2028. Given the current climate, we can expect many of those requirements to be reduced or rescinded, but California, Colorado and possibly Oregon are expected to stick to their commitments. These mandates will require much of the EV and hybrid output to be directed to states with EV mandates, leaving a shortage of those vehicles in the remaining states. SERVICE BUSINESS RISES AS A ROBUST CENTER OF PROFIT AND CASH FLOW The service business is driving profitability and boosting cash flow to a greater degree than many people anticipated. It’s true that vehicles are better built than they were just 10 to 15 years ago — and last longer — but they still need service and parts throughout their extended lifespans. And OEMs will have warranty issues and recalls that require servicing, a meaningful source of revenue, particularly for dealers who maximize their warranty reimbursement rates. An invigorated used car market closely links customer acquisition and rising service needs as a vehicle ages. Focusing on reaching the rising number of used car customers and fulfilling their needs could add critical service volume. Also, contrary to expectations, EVs are contributing to added profitability due to higher average costs for service visits. OEMS ARE PRODUCING AT OPTIMAL LEVELS TO DRIVE ORGANIC GROWTH While many dealers should see solid, organic growth in the coming years, with variation based on brand and individual store performance, the trade policy uncertainty adds a few twists to the story. If the economy avoids a downturn and tariff issues don’t flare up, demand for new and used cars, along with a more normalized market, bodes well for profitability. Manufacturers are building for overall market demand rather than production capacity. Our data shows that the sweet spot for a healthy margin on new car sales is a 65- to 75-day supply of vehicles, and April 2025 closed with a 66-day supply — 16 days lower than a year ago.2 (Compare that to the 110- to 115-day supply in 2019.) At the low end of the ideal new vehicle supply range, dealers enter the summer with inventory levels that should help protect margins. We expect total dealership profit to stabilize at around 4% of sales — twice the historical pre-COVID levels. BRAND DYNAMICS ARE SHIFTING, AND VALUE OFFERINGS ARE EMERGING Brand value is typically quite stable, something retailers can take as a given. However, recently, Nissan, Chrysler, Dodge, Jeep and Ram have dropped in blue-sky multiple values. Subaru and Ford are down as well, while Toyota has increased significantly. Besides several outstanding products that generate high-volume sales, Toyota now offers a hybrid-heavy lineup to better meet shifting demand, along vada.com 19

with a transparent dealer-manufacturer relationship that provides a clear rationale behind their strategy. These factors combine to bring Toyota to a premium brand value level. Mazda, Volvo and Audi blue-sky values are recovering from recent slippage, with Honda moving up as well. Chevrolet, on the other hand, has never lost ground but is enjoying rising brand value based on a superior product mix and go-to-market strategy. Each brand’s strategy in handling tariffs and vehicle affordability pressure in the current market could lead to additional shifts in brand value. For example, Ford has stated they will raise prices on all vehicles produced in Mexico, while Toyota has stated they will not raise prices because of tariffs, instead absorbing a 21% hit to next year’s profits. When it comes to affordability, some brands are introducing value platforms to maintain vehicle affordability and market share in the face of cost increases from tariffs or inflation. Look at the F-100 version of Ford’s F-150 or the Enterprise Edition of the Dodge Ram. These are stripped-down, commercial-looking vehicles with a few nice features in the interior to link to the more expensive offering. They allow a buyer to access a brand where they might otherwise be priced out and keep the brand top of mind with the customer. M&A SURGES TO EVEN HIGHER LEVELS We anticipate even more dealer transactions this year than we saw in 2024, one of the top three years from a volume standpoint. The forces driving M&A to new highs in recent years are still in play, bolstered by new geographic trends. • Dealers are sitting on capital amassed through the COVID-19 boom times, and they’re motivated to grow. In this consolidating market, they can see the urgent need to scale for maximum efficiency. • Both international and large domestic institutional investors have renewed their interest in automotive retail. A number of financial investors, including marquee private equity firms and family offices, see opportunities in franchised auto retail and are pursuing dealership investment strategies. • Leadership teams are stronger. After years of struggle to fully staff management positions, most owners finally have capable executive teams to facilitate efficient expansion. • Technology supports the efficient addition of locations. While dealers have traditionally aimed to scale for five to 10 stores in a specific market, technology now enables multi-store efficiency gains beyond a contiguous geographic area. In response to that new capability, we’re seeing a definite trend toward less-localized growth, with dealership expansions finding scale in systems and processes. • Less favored markets are in. California, Minnesota, Illinois and the Northeast are now becoming M&A targets. Reduced dealership values in California make it an enticing market for M&A value investors. Thirty-nine million Californians still need to buy and service vehicles. STRONG PROFIT GROWTH SINCE 2019 AND RESILIENCE THROUGH COVID SUGGEST THAT DEALERS ARE READY TO RESET AND RETOOL TO ADDRESS TODAY’S MARKET. MARKET CONDITIONS OFFER AN IDEAL WINDOW TO MONETIZE YOUR BUSINESS If you’d rather go than grow, now should provide ample opportunity to make your exit. With M&A activity having accelerated to an even higher level, owners who choose an off-ramp rather than facing the challenges of another business reset will have an opportunity to move on. With growth-minded dealership groups coming off strong-performing years and capital available for promising acquisitions, you couldn’t ask for a better time to explore offloading nonstrategic stores or putting your transition plans into motion. WHAT MAKES A DEALERSHIP ATTRACTIVE FOR ACQUISITION? Stores with specific strengths will command a premium in the rush to snap up solid auto dealerships. Whether they’re private investors, growth-focused auto retailers or other interested parties, buyers are looking for stores with the characteristics that pair maximum potential for continued growth and profitability with the resilience to handle market shifts and downturns. That translates to strong service retention rates following vehicle sales, fully staffed and highly capable management teams, desirable brands and updated facilities that meet manufacturer standards for image and capacity. Businesses that know how to tap the potential of F&I programs to generate profits will have an edge. Dealers who deferred capital investment, or can’t meet these buyer expectations for any reason, will have to sell their stores at a discount. 1. Global EV driver survey 2024, Global EV Alliance, December 2024. 2. Consumers Face Challenges as New-Vehicle Inventory Drops 7.4% in April Amid Tariff Uncertainty, Cox Automotive, May 15, 2025. Truist Bank, Member FDIC. ©2025 Truist Financial Corporation. Truist, the Truist logo and Truist Purple are service marks of Truist Financial Corporation. Equal Housing Lender. 20 Virginia Auto Dealer

YOU WANT IT! (801) 676-9722 SALES@THENEWSLINKGROUP.COM DON’T ROLL THE DICE ADVERTISE HERE! CONTACT US TODAY PNC and PNC Bank are registered marks of The PNC Financial Services Group, Inc. (“PNC”). Bank deposit, treasury management and lending products and services, foreign exchange and derivatives products, bond accounting and safekeeping services, escrow services, and investment and wealth management and fiduciary services are provided by PNC Bank, National Association (“PNC Bank”), a wholly owned subsidiary of PNC and Member FDIC. Lending, leasing and equity products and services, as well as certain other banking products and services, require credit approval. ©2025 The PNC Financial Services Group, Inc. All rights reserved. PNC Dealer Finance Group | With a complete range of banking and financial services — and the support of our dedicated relationship management team — PNC’s specialized Dealer Finance group is committed to making a positive difference for your business. From floor plan and retail financing to treasury and wealth management, we can leverage our resources to deliver a flexible, custom-built solution that moves you forward financially. Shift Your Plans into Drive, Starting Today. Contact a PNC Relationship Manager today and put our Dealer Finance group to work for you. Daniel P. Cannaday VP Floor Plan & Commercial Financing 1 E. Pratt St. Baltimore, MD 21202 443-605-7334 daniel.cannaday@pnc.com CON LEND PDF 0125-0138-2616502 vada.com 21

Virginia’s auto dealers aren’t just selling cars; they’re investing in the Commonwealth. We’re highlighting the positive impact auto dealers are making in their communities. From charitable giving to community service, these stories showcase how local dealerships go above and beyond to support their teams and neighborhoods. BAGS FULL OF KINDNESS DONATED BY MARLOW AUTO GROUP’S TRI‑STATE NISSAN Marlow Auto Group’s Tri-State Nissan made donations to Evans Home for Children in June. “We can’t express how thankful we are for the support from our community,” the Winchester store writes on Facebook. Throughout the month, friends, customers, co-workers and neighbors stopped by Tri-State Nissan with bags full of kindness. “What started as an empty truck parked in our showroom turned into a powerful reminder of what community really means. Because of you, we were able to show these kids that they are seen, supported and deeply cared for.” SHEEHY TOYOTA OF FREDERICKSBURG SUPPORTING THE COMMUNITY Sheehy Toyota of Fredericksburg donated $1,250 to the Rappahannock Fraternal Order of Police Lodge #15. This contribution supports their efforts to assist officers in need, the Cops & Kids program, and Cub Scout Pack #540. Sheehy has proudly supported this cause since 2022. 22 Virginia Auto Dealer

CHRYSLER DODGE JEEP RAM OF LYNCHBURG IS MOVING LIVES FORWARD Carter Myers Automotive’s Chrysler Dodge Jeep RAM of Lynchburg participated in “Trunk Tales” at the Lynchburg Public Library. Three team members braved the summer heat and brought a family-favorite vehicle (a Chrysler Pacifica) to transform it into a cozy mobile reading nook. “We had the chance to read stories to local children as part of the library’s Summer Lunch Program, helping spark imagination and a love for reading,” CMA shares. The event wasn’t just about books — it was about connection, community and creating memories. “We’re grateful for the chance to step outside our showroom and into the heart of Lynchburg,” CMA said. 5K SPONSORED BY ALEXANDRIA TOYOTA Alexandria Toyota sponsored the Active for Autism 5K for a third year and raised $2,500. RK SUBARU IS SHARING THE LOVE Subaru of America and RK Subaru presented a more than $12,500 check to Sentara Brock Cancer Center. Located in Norfolk, the 253,000 square-foot home of the Sentara Cancer Network provides an environment for healing, innovation and collaboration. RICHMOND FORD SUPPORTING UNSTOPPABLE KIDS As one of Virginia’s oldest Ford Motor Co. dealers, Richmond Ford proudly supported the city’s Children’s Hospital of Richmond (CHoR) at VCU through Anthem LemonAid. For 25 years, Anthem LemonAid has supported unstoppable kids at CHoR fighting cancer. vada.com 23

FIRST TEAM HONDA PACT GRADUATES First Team Honda’s Will Stephans (left) and Andrew Hillman (center) graduated from the Honda PACT (Professional Automotive Career Training) program at Tidewater Community College. “We’re proud to have such dedicated and talented technicians on our team,” First Team writes. The dealership also thanks Brian Culp (far right), head of the PACT program, foreman Kent Matthews (second from right), and PACT instructor Randy for supporting their journey. AUDI CHANTILLY WELCOMES HUNG CI LION TROUPE In honor of Asian American and Pacific Islander (AAPI) Heritage Month, Audi Chantilly welcomed the Hung Ci Lion Troupe for a powerful lion dance performance. “The energy, tradition and meaning behind the dance brought our team together and reminded us of the importance of celebrating culture and community in the workplace,” the dealership said. MOTOR MILE SUBARU LOVES TO CARE Motor Mile Subaru teamed up with the Leukemia & Lymphoma Society through the Subaru Loves to Care Program and supplied blankets to local cancer patients to keep them warm during chemotherapy. Since 2016, the partnership has given over 500,000 blankets and care kits across the U.S. Motor Mile Subaru has supported the program for nine years. 24 Virginia Auto Dealer

vada.com/event/ vada-2026convention FLOW TOYOTA OF CHARLOTTESVILLE SPONSORED THE FIREHOUSE 5K Flow Toyota of Charlottesville sponsored the Crozet Volunteer Fire Department’s Firehouse 5K, Kids’ Fun Run & Pancake Breakfast as the Red Helmet Sponsor on May 31. With over 250 community members in attendance, it was an incredible turnout. The Kids’ Fun Run kicked off bright and early at 8 a.m., and every young runner earned a participation medal and a Chick-fil-A gift card delivered by the mascot. vada.com 25

VADA Executive Committee Roger Keller Chair Sheehy Auto Stores Eley Duke Vice Chair Duke Chevrolet GMC John Altman Treasurer Beyer Auto Group Tanner Hulette Secretary Page Auto Group Don Hall President VADA Dan Banister Immediate Past Chair Banister Automotive Tim Pohanka Legislative Chair Pohanka Automotive Group VADA Board of Directors John Altman Beyer Automotive Group Conrad Aschenbach Aschenbach Automotive Group Daniel Banister Banister Automotive Harry Carrion Haley Automotive Zachary Cochran Whitten Bros Chrysler Dodge Jeep Mazda Mark Dalton Terry Auto Group David Dillon Southern Team Auto Group Eley Duke Duke Automotive Eric Flow Flow Motors Don Hall Virginia Automobile Dealers Association Josh Hamilton Checkered Flag Motor Car Co. Tanner Hulette Mechanicsville Toyota Cameron Johnson Magic City Ford Lincoln Isuzu Roger Keller Sheehy Auto Stores Steve Klimkiewicz Cavalier Ford Lincoln Ashton Lewis Jr. First Team — Automotive Chip Lindsay Lindsay Automotive Chris Lindsay Lindsay Automotive Ross Luck Luck Automotive Thomas Mohr Highway Motors Jeff Owens Southern Auto Group Michael Patrick Patrick GMC Geoff Pohanka Pohanka Lexus Tim Pohanka Pohanka Nissan Hyundai Rachel Pullen Safford Brown Michelle Radley Radley Automotive Group Jake Sodikoff Steven Nissan Matthew Walsh Carter Myers Automotive LEADERSHIP Virginia Motor Vehicle Dealer Board Alexis Barker-Taplett Mercedes-Benz of Virginia Beach Thomas Bates RK Chevrolet Inc. Tom Barton Beach Ford and Barton Ford Dennis Ellmer Priority Automotive Group Chip Lindsay Lindsay Volvo Cars of Alexandria Dick Myers Dick Myers Chrysler Dodge Jeep Ram Fiat Timothy Pohanka Pohanka Automotive Group Kevin M. Reynolds Jr. Reynolds Chevrolet-GMC-Subaru VADA Group Self-Insurance Association Board of Directors Cole Balderson Ourisman Automotive of Virginia Burt Brenner Lindsay Lexus of Alexandria Chris Brown Haley Automotive Penny Burch Magic City Ford Lincoln Isuzu Gerald Duncan Duncan Ford Chrysler Dodge Jeep Don Hall Virginia Automobile Dealers Association Adam Johnson Johnson Family Chevrolet Fred Kirschbaum Checkered Flag Motor Car Co. Ralph Mastantuono American Service Center Associates Benji Nowak Ted Britt Ford Lincoln Michelle Radley Radley Automotive Group Chris Strosnider Strosnider Chevrolet Rich Tritel Carter Myers Automotive HRADA Officers Pat Fields President Wynne Ford Volvo Heath Wynn Treasurer Hall Auto Group Mike Owen Secretary Southern Auto Group Rebecca Wilson Immediate Past President Checkered Flag Audi HRADA Board of Directors Jarryd Carver Winners Circle Auto Group Brian Clark Charles Barker Mercedes-Benz Jim Hernandez Priority Honda Dave Lawson CMA Williamsburg Ford Cameron Shaw Southern Auto Group Allied Member Bryan Dougherty ACV (L-R) Roger Keller, Eley Duke, John Altman, Tanner Hulette and Don Hall 26 Virginia Auto Dealer

Accumatic Inc. Ally Financial Assurant Dealer Services Inc Atlantic Union Bank AutoFi Baker Tilly US LLP Bank of America — Merrill Lynch BDO USA LLP BG Products & Services Brightline Dealer Advisors Brown & Brown Brown, Edwards & Co. CarNow CBIZ Charapp & Weiss LLP Computerized Vehicle Registration Core Assurance Councilor, Buchanan & Mitchell PC DLRdmv Dominion DMS DSMA Dynatron Software Ethos Group Forvis Mazars Foti, Flynn, Lowen & Co. Fulton Bank GM Financial GPW & Associates Inc. Greensboro Auto Auction Haig Partners JM&A Group Kerrigan Advisors KPA M&T Bank Manheim Fredericksburg Manheim Harrisonburg OPENLANE PDP Group Pinnacle Bank PMA Management Corp. Priority Payment Systems Local Protective Asset Protection QoreAI Renew Energy Safepoint GPS Solera TitleTec Strategic Source Tekion TowneBank TradePending True Car Truist Bank United Bank Wells Fargo Dealer Services VADA ALLIED MEMBERS THANK YOU! Learn more at BankWithUnited.com Member FDIC / Subject to credit and underwriting approval. United Bank specializes in tailoring a combination of financial products and auto-dealer services to best meet the specific needs and goals of your automotive dealership. Floor Plan Line of Credit Term Financing Indirect Financing Cash Management Services GET MORE BANK FOR YOUR DEALERSHIP vada.com 27

ACV is investing in game-changing technologies and world class people to improve the wholesale process for all dealers. They provide unbiased vehicle information that is unparalleled in its transparency. Their inspectors complete comprehensive condition reports on fresh vehicles, right at the seller’s lot. Cintas leads the industry in supplying corporate identity uniform programs, providing entrance and logo mats, restroom supplies, promotional products, first aid, safety, and fire protection products and services. Learn how Cintas’ solutions can benefit your sales and service departments at cintas.com. Forget the forms, binders, spreadsheets, folders, manual audits and training sessions. Compliance is automatically performed, logged and demonstrated in one simple platform. They’re not just another software company. They’ve actually worked at dealerships and have spent their entire legal and compliance careers in the automotive industry. You can receive optimal results for your parts warranty uplift. Just outsource the process to Armatus. Hand the entire retail warranty process to them, and you won’t have to lift a finger. Plus, there are no upfront fees — Armatus doesn’t get paid until you do. As the leading innovator in Vehicle-to-Government (V2Gov) technology, Vitu is transforming the way vehicles, businesses, government and drivers interact with one another. Vitu partners with state government agencies and businesses across the U.S. with cutting-edge process management SaaS solutions — including Digital Title and Registration — that cross state borders and transcend state-by-state variables. Digital Air Strike is the leading social media, intelligent lead response, consumer engagement and customer experience (CX) technology company helping over 7,700 businesses increase consumer response and conversions by leveraging patented AI-powered digital technology that generates measurable ROI. A pioneer in digital response, social media marketing technology and online reputation management solutions, Digital Air Strike deploys industry-specific mobile apps, software, intelligent messaging and consumer engagement platforms to monitor, respond, improve and convert more consumers into customers for thousands of businesses in the United States. More information about the company is available at www.digitalairstrike.com. As specialists in the antitrust settlement field, DCap makes antitrust claim filing easy for businesses, navigating the inherent complexities of the process and maximizing claim refunds for its clients. For nearly a decade, DCap has provided premier settlement education, guidance and ongoing support, resulting in millions of dollars recovered, for thousands of businesses. VADA PROGRAM PARTNERS THANK YOU! Directly from state registrations, Cross‑Sell Interactive® vehicle data provides insight into customized local markets to help dealerships and dealer partners create strategies for increased market share. Cross‑Sell reports provide in-depth views of local automotive sales, registrations and trends. VADA regularly publishes articles and news from our Program Partners. It’s content that makes you a more informed dealer. Find it at vada.com/news. For more information on our programs, contact Natalie Toler at ntoler@vada.com. 28 Virginia Auto Dealer

DMS allows dealers to take advantage of federal law to greatly diminish their expenses with credit card processing fees, typically between 75% and 95%. DMS can save some dealers well over $100,000 per year in fees. Find out how at dealermerchantservices.com. Promote your business, reduce compliance risk, manage data and keep your office inventory stocked with Reynolds Document Services. Hilb Group comes to work each and every day to ensure they have you covered. They take pride in providing sound advice to all of their clients. Hilb Group’s job is not done until you have complete peace of mind that you and your employees are receiving the best benefits and service available. MOC® is a leading provider of innovative products and solutions to the retail automotive industry. Their program is designed to provide new car dealers the ability to buy necessary products, tools and equipment at manufacturer direct pricing, but also receive unprecedented local and regional service and support. One Source Wonderful! Your local, one‑stop shop for all departments supply needs! In 2010, Co-Founders Adam Robinson, Michael Krasman and Jeff Ellman reinvented the hiring process, empowering businesses to ditch their filing cabinets and manilla folders in exchange for an intuitive, technology-based hiring process. Management consulting, human resource management and labor relations. For more information visit sescomgt.com. Zurich F&I professionals can help you increase product penetration, per vehicle retail, and customer satisfaction. They currently work with more than 100 Mid-Atlantic dealers, helping them build relationships with their customers and increase product sales. As the provider of Connect CRM, a leading dealership customer relationship management system, VinSolutions helps more than 5,000 dealers make every connection count. VinSolutions products integrate dealership systems, processes and tools to deliver a single view of the customer across the business. RockED’s mobile learning platform turns employees within minutes into customer‑centric high-performers. The app allows for learning anytime, anywhere, through a mobile solution. Lessons are based on competencies and include highly relevant, industry-specific audio-visual content delivered by industry leaders. Learn more at rocked.us. Sqwire’s mission is to help low- to moderate-income families realize their financial promise by providing financial education that is hopeful, respectful and fun. Financial education includes topics that build a solid financial foundation, using tools created specifically for today’s adult learners and quizzes, and detailed reporting ensures clients meet their goals. Learn more at getsqwire.com. vada.com 29

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