THE OFFICIAL PUBLICATION OF THE VIRGINIA AUTOMOBILE DEALERS ASSOCIATION 2026 ISSUE 2 VADA ‘26 PHOTO GALLERY June 22-25
©2026 Virginia Automobile Dealers Association (VADA) | MBR Connect™. All rights reserved. Virginia 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 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 (801) 676-9722. CONTENTS 2026 PUB. 7 ISSUE 2 A MESSAGE FROM PRESIDENT AND CEO DON HALL 4 Innovation, Change, and the Power of Trust By Don Hall, President and CEO, VADA 6 VADA ‘26 Photo Gallery June 22-25 DEALER TECH COMPANY CONVENTION SPEAKER 12 Own Your Data, Or Someone Else Will Insights from Diana Lee, CEO of Constellation DEALER DATA SCIENTIST CONVENTION SPEAKER 14 Dealers Can’t Wait for the Old Market To Come Back Insights from John Coles, Ph.D., of ACV CORPORATE FINANCE CONVENTION SPEAKER 16 The ‘Indifference Tax’ and Why Process Drives Success Insights from Joe St. John, Corporate Finance Director of Oakes Auto Group AUTO RETAIL MEDIA MOGUL, CONVENTION PANEL DISCUSSION 17 Five Things We Learned About the Quickly Changing Auto Industry COMPLYAUTO AND VADA CONVENTION PANEL DISCUSSION 19 FTC Advertising Compliance at VADA ’26 What Dealers Need to Know ECONOMIC OUTLOOK, CONVENTION PRESENTATION 20 Retail Automotive Has Entered a New Era Kevin Tynan Returns to VADA ’26 22 Thank You, VADA ‘26 Sponsors! 24 Virginia Dealers Shifting Gears for Good 27 ‘Drive to 250’ With VADA PAC Celebrating 250 Years of Virginia in America 28 Leadership 29 Thank You VADA Allied Members 30 Thank You VADA Program Partners 6 12 24 Virginia Automobile Dealers Association vada.com 3
A MESSAGE FROM PRESIDENT AND CEO DON HALL One of the greatest privileges of serving Virginia’s franchised automobile dealers is having a front-row seat for the conversations shaping the future of our industry. At the VADA Annual Convention in June, I was fortunate to join discussions with dealer operators, technology innovators, economists and industry media leaders, including a memorable conversation with CBT News’ Jim Fitzpatrick and Sam D’Arc of the Car Dealership Guy and Zeigler Auto Group. The professionals I spoke with came from different corners of the business, but they all reached the same conclusion, which is my takeaway from our 2026 event: The automotive industry is changing quickly, and it’s never going back to the way it was. Here’s what that means: Customer expectations are evolving. Artificial intelligence is becoming a practical business tool. Competition is expanding. Regulatory scrutiny continues to grow. Yet amid all that change, one thing hasn’t changed at all: People still want to do business with people they trust. Recent consumer research from the National Automobile Dealers Association reinforces that point. Customers want a buying experience that is straightforward and easy to understand. They want honest communication, clear expectations and confidence that someone will be there long after they drive off the lot. That’s where franchised dealers continue to shine. Virginia dealers have always built their businesses on relationships. We don’t just sell vehicles; we service them, stand behind them and become trusted partners throughout the ownership experience. That remains one of the franchise system’s greatest competitive advantages. Throughout our convention, we heard a consistent message: Today’s customers expect the same convenience, speed and transparency from buying a vehicle that they experience everywhere else. They arrive informed, expect efficient transactions, and value clear communication throughout the process and when working with service advisors. Those expectations should not be obstacles for dealers. They are opportunities. Technology will play an important role in meeting them, but only if it’s used to strengthen the customer experience. AI can help improve operations and enable employees to spend more time serving customers, but technology should not be a replacement for humans. As ACV data scientist John Coles, Ph.D., reminded us in his keynote, AI should be used to guide customers to the right human. “Speed to human is key,” he said. The dealerships that thrive in the years ahead will embrace innovation while never losing sight of that personal connection. That’s why VADA’s work extends beyond advocating for dealers in Richmond and Washington. We also have a responsibility to prepare our members for what’s next by bringing industry leaders to Virginia to help dealers navigate a rapidly changing marketplace. As we all learned at our Annual Convention in Virginia Beach, the pace of change is only accelerating. But Virginia’s dealers have never been afraid to evolve. The businesses that succeed in the next chapter of automotive retail will be the ones that combine innovation with trust, technology with relationships and progress with the values that have always defined the franchise system. Innovation, Change, and the Power of Trust VADA’s Don Hall with CBT News’ Jim Fitzpatrick (right) and Zeigler Automotive Group COO and Car Dealership Guy podcast host Sam D’Arc (left) at the VADA 2026 Annual Convention. 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. 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.
VADA ‘26 PHOTO GALLERY June 22-25 VADA held its 2026 convention at the Marriott Virginia Beach Oceanfront Resort in June. From the drone show Monday night to the Wizard of Oz closing dinner on Wednesday, VADA ‘26 delivered everything we hoped it would — and then some, including record attendance, record sponsorships, and three days of conversations that we hope will change how you run your business. Thank you to everyone who attended and made VADA ’26 the best convention yet! View more photos and save the date for our 2027 Annual Convention at VADA.com/convention. 6 Virginia Auto Dealer
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If Diana Lee had to boil her message down to a single sentence, it might be this: Your dealership’s future depends on data — and too many dealers are giving it away for free. During a conversation with CBT News, co-founder Jim Fitzpatrick at the VADA 2026 Annual Convention, the Constellation founder and CEO delivered a blunt assessment of how automotive retail is approaching marketing, artificial intelligence and customer acquisition. While much of the industry is focused on AI, Lee argued that the more important conversation is about who owns the information powering it. MESSAGE 1: STOP GIVING AWAY YOUR MOST VALUABLE ASSET For Lee, the industry’s biggest blind spot is data ownership. She criticized marketing arrangements in which vendors retain control of advertising accounts and historical campaign data, forcing dealers to start over whenever they switch providers. She argued that dealers should maintain access to their advertising accounts and performance history regardless of which vendor they choose to work with. “Every single time you switch vendors because you’re like, ‘I had a bad month, I’m going to switch the vendor,’ you have to start over again,” she said. “It’s a machine learning model.” The issue isn’t simply transparency. In an AI-driven world, historical data becomes more valuable over time. Losing access to it means losing the ability to learn from it. MESSAGE 2: AI IS CHANGING HOW CUSTOMERS FIND VEHICLES While much of the automotive industry is still focused on websites, Lee believes consumers are shifting toward AI-powered search tools. “Websites are of the past, and bots are of the future,” she said. That shift has major implications for dealerships. AI tools can only surface information that exists online and is easy to access. If inventory, pricing and incentives are difficult to find, dealers may disappear from the conversation entirely. “If you don’t put something up there, there’s nothing to read,” Lee said. “If there’s nothing to read, you’re not even close.” Lee pointed to a review of more than 100 dealership websites in which nearly half lacked pricing information midway through the month. In her view, that is no longer just a marketing problem — it is a visibility problem. MESSAGE 3: DATA SHOULD DRIVE DECISIONS, NOT HABITS Lee challenged dealers to rethink how they make pricing and merchandising decisions. Her company analyzes inventory, pricing, and offers data from thousands of dealership websites across the country, giving dealers visibility into what competitors are advertising and what is actually selling in their markets. Too often, she said, pricing decisions are based on habit rather than market intelligence. Recalling conversations with dealers, Lee said she often asks a simple question: Why was a particular payment chosen for a vehicle promotion? “Why did you pick $299?” she said. “The answer always back to me was, ‘That’s what I always do.’” In an era where dealers can compare pricing, inventory levels, incentives and competitive offers in real time, Lee argued that decisions should be driven by data rather than tradition. What worked last month — or last year — may no longer be the most competitive offer in today’s market. LEE’S BOTTOM LINE Dealers who own their data, make information accessible and embrace transparency will be positioned to benefit from AI-powered shopping. Those who don’t risk becoming invisible in a marketplace increasingly shaped by algorithms. In Lee’s view, the question is no longer whether AI will change automotive retail, but whether dealers will control the data that drives it. “If you don’t own your own data right now and you don’t care about it,” she said, “I don’t know what to tell you.” DEALER TECH COMPANY CONVENTION SPEAKER Own Your Data, Or Someone Else Will Insights from Diana Lee, CEO of Constellation 12 Virginia Auto Dealer
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THE ECONOMY REMAINS CHALLENGING, BUT CONSUMERS ARE ADAPTING Coles began with a look at the broader economy, noting elevated consumer debt levels, persistent inflation and continued uncertainty around employment and interest rates. While inflation reached 4.2% in May and fuel prices remained a significant contributor, Coles encouraged dealers to focus less on short-term volatility and more on long-term trends. “The reality is the K-shaped economy that has been talked about for the last five years is very much coming into play in the service drive and in the sales department in each of your dealerships,” he said. That divergence creates different experiences for different consumers. Some continue purchasing newer vehicles, while others are increasingly focused on affordability. MARGIN COMPRESSION IS NO LONGER TEMPORARY The most important chart in Coles’ presentation may have been ACV’s Retail Profit Index, which tracks dealership profitability against inflation-adjusted pre-pandemic levels. The chart tells a simple story: The exceptional profits generated during the inventory shortages of the COVID era are fading, and dealership profitability is moving back toward historical norms. “The new normal for dealers, margin compression is structural. It’s not temporary,” Coles said. Many managers entered the industry during a period when inventory was scarce, and front-end grosses reached unprecedented levels. As those conditions disappear, dealerships are facing what Coles described as a “massive retraining and mindset course correction.” “That’s a very real friction that we’re seeing right now in stores,” he said. DEALER DATA SCIENTIST CONVENTION SPEAKER Dealers Can’t Wait for the Old Market To Come Back Insights from John Coles, Ph.D., of ACV Stop waiting for things to go back to the way they were. That was the message delivered by John Coles during his presentation at VADA ‘26. The vice president of data science and analytics spent much of his session examining economic indicators, used-vehicle trends and artificial intelligence, but his message was ultimately about adaptation. Dealers who continue measuring today’s market against the extraordinary conditions of 2021 and 2022 are preparing for a future that no longer exists, he said. “Running a business with uncertainty is the new normal,” Coles said. That divergence is creating different experiences for different consumers. Some continue purchasing newer vehicles, while others are increasingly focused on affordability. The annual inflation rate in the U.S. rose to 4.2% in May 2026, marking its highest level since April 2023. Gasoline prices soared 40.5%, after a 28.4% gain. Fuel oil also increased 58.9% (vs. 54.3%). 14 Virginia Auto Dealer
AFFORDABILITY IS RESHAPING THE USED-CAR MARKET One of the clearest examples of changing consumer behavior is found in used-vehicle demand. Rather than seeing strength concentrated in nearly new inventory, ACV’s data shows growing demand for vehicles between 10 and 15 years old. “We’re seeing accelerated demand slightly hotter than seasonal for vehicles between 10 and 15 years old,” Coles said. That reflects the reality of today’s consumer, as higher interest rates and elevated debt levels push buyers toward vehicles that offer reliable transportation at a lower monthly payment. “The average car on the American road right now is 13 years old,” he said. At the same time, franchise dealers are seeing continued demand for three- to five-year-old vehicles as customers search for alternatives to new inventory. CUSTOMERS ARRIVE INFORMED The internet transformed vehicle shopping years ago — and now artificial intelligence is accelerating the trend. Today’s customers often arrive with vehicle valuations from CarMax, Carvana or online pricing tools already in hand. “They’re going to walk in with a number and maybe unwarranted confidence on the value of that car,” Coles joked. That means pricing information alone is no longer enough to differentiate a dealership. Instead, Coles argued that community involvement, trust and personal relationships will become even more important as consumers gain access to more information. “Every consumer walking in will be on their phone, have three different prices, and you have one shot at reminding them how you’re connected to the community before they leave,” he said. AI WORKS BEST BEHIND THE SCENES Although artificial intelligence dominated much of the conversation throughout the convention, Coles offered a more measured perspective on where it can create value. He believes dealerships should resist the temptation to place AI directly between employees and customers. “There’s a trend in the industry to push more and more to have AI as a customer-facing layer. I feel very strongly that’s a terrible idea,” he said. Instead, he sees the greatest opportunity in back-office functions such as inventory management, staffing, lead routing and process automation. “The chatbot era of okay answers is over,” Coles said. “Speed to a human is key.” For dealers eager to adopt AI, his advice was simple: Start small, identify internal champions and focus on solving specific operational problems rather than chasing every new tool that enters the market. “If you deploy nine pilots, you will get zero successes,” he said. THE DOC’S FINAL GUIDANCE For all the discussion of inflation, vehicle values and AI, Coles returned to a simple conclusion: Dealers cannot wait for the conditions of the pandemic-era market to return. Success over the next several years will come from adapting to thinner margins, understanding affordability-driven consumers and using technology to strengthen — rather than replace — the human relationships that have always defined retail automotive. “The differentiator is to delight and serve the community,” he said, “not just transact.” Monthly MAX Customer: Retail Profit Index Retail Profit Summary: ACV’s Monthly Front-End Gross calculated based ACV Dealers with 2018/2019 as Monthly Baseline Index for “pre-covid” profit. • May 2026 Profit Index remained slightly elevated compared to baseline. • Adjustment in May Driven by Inflation adjustments and softened consumer demand. Market Update: ‘26 Early Monthly 2025 ACV Wholesale Adjusted Monthly Price Index by Vehicle Age Band. Vehicle age bands are calculated based on the model year of the vehicle and then grouped into year ranges with a consistent mix of vehicles in the basket. Vehicles in the basket have at least 10 vehicle sales/week for combination of Year, Make, Model, Trim, Mileage and Condition Status. vada.com 15
CORPORATE FINANCE CONVENTION SPEAKER The ‘Indifference Tax’ and Why Process Drives Success Insights from Joe St. John, Corporate Finance Director of Oakes Auto Group Most dealers can tell you exactly what they spent on advertising, floorplan interest or warranty claims. But if you listen to Oakes Auto Group Corporate Finance Director Joe St. John, one of the industry’s largest expenses rarely appears on any report. He calls it the “indifference tax.” Speaking at the 2026 VADA Convention, St. John argued that dealerships quietly lose millions of dollars due to turnover, inconsistent processes and managers who spend their days putting out fires rather than developing people. The Kansas City leader delivered a message on the importance of building systems that enable success to be repeated. Here are five of the most valuable takeaways from his presentation. 1. TURNOVER IS A PROFIT PROBLEM St. John challenged dealers to calculate the actual cost of employee turnover to their business. Using conservative estimates of $12,000 per departing salesperson and the industry’s average 73% turnover rate, he estimated that a three-store dealership group could easily lose more than $315,000 annually replacing sales staff. Scale that across the industry, he argued, and the hidden cost approaches $20 billion every year. “This isn’t an HR headache,” St. John said. “It’s a direct tax on your front-end gross, your F&I profit and your enterprise multiple.” 2. BUSY MANAGERS AREN’T ALWAYS LEADING St. John walked through what he called a typical Tuesday morning for a sales manager. By 10 a.m., the manager had rebuilt deal structures, tracked down titles, resolved pricing issues, fielded lender questions and handled constant interruptions. What hadn’t happened? Coaching. Accountability conversations. Team development. “Our sales managers have stopped leading, and they’ve all started doing,” he said. The result is a dealership full of activity without enough leadership to help people improve. 3. TASKS ARE THE SILENT KILLER Administrative work steals the three responsibilities every manager should own: • Leading • Managing • Holding people accountable Every hour spent chasing paperwork or fixing preventable mistakes is an hour not spent developing employees. Rather than blaming managers, St. John argued that dealerships should examine the systems forcing managers into reactive work. “Their tasks are neglecting their team for them,” he said. 4. GREAT SYSTEMS OUTPERFORM GREAT PEOPLE To prove his point, St. John shared a simple experiment conducted with his own leadership team. Three groups were asked to build the same Lego taxi using different methods. 16 Virginia Auto Dealer
One group relied on a manager giving verbal instructions. Another depended on the manager to release directions one page at a time. The third group received the complete instructions upfront and organized themselves. The third team finished first — by a wide margin. The exercise offered a lesson that wasn’t limited to Lego-building strategies. “When your frontline has both the vision and the blueprint, the system executes itself,” St. John said. He contrasted that with dealerships built around “heroes” who solve every problem personally. “Heroic effort isn’t a culture,” he said. “It’s a liability.” 5. DEALERS SHOULD THINK LIKE TEXAS ROADHOUSE Texas Roadhouse is St. John’s favorite restaurant, and he explained why. The company succeeds, he argued, not because it hires extraordinary servers, but because it has created an extraordinary system. From its H.E.A.R.T. hospitality framework to technology that removes the burden of routine tasks from servers, everything is designed to free employees to focus on the customer experience. “They don’t hire the best servers,” St. John said. “They build the best system and hire people who can run it.” He challenged dealers to ask the same question inside their own stores: What tasks could be eliminated so employees can spend more time serving customers instead of managing paperwork? CONCLUSION For dealerships facing margin pressure, staffing challenges and increasing operational complexity, St. John’s argument was eye-opening. The biggest opportunity isn’t finding better employees but eliminating the “indifference tax” that keeps good people from doing their best work. Challenging a long-held assumption, he said success does not depend on finding exceptional people willing to outwork everyone else; rather, sustainable performance comes from building repeatable systems that ordinary people can execute consistently. “The answer isn’t better heroes,” he said. “The answer is better instructions.” AUTO RETAIL MEDIA MOGUL, CONVENTION PANEL DISCUSSION Five Things We Learned About the Quickly Changing Auto Industry If there was a common theme throughout the VADA ‘26 conversation between VADA President and CEO Don Hall, Zeigler Auto Group’s Sam D’Arc, and CBT News co-founder Jim Fitzpatrick, it was this: The automotive industry is changing quickly, and dealers can’t afford to stand still. From FTC compliance to customer experience and competition from new entrants, auto industry veterans — combined with more than a century of industry knowledge — covered a wide range of issues facing dealers today. Here are five key takeaways. 1. FTC COMPLIANCE ISN’T OPTIONAL The three agreed that the FTC’s new vehicle shopping rules represent a major shift for the industry. Hall described the changes as a “sea change” and warned dealers against assuming enforcement will be limited to federal regulators. “Customers will know exactly what the drive-out price truly is, unless they opt to add things to their vehicles after the fact,” Hall said. “If you load up things beforehand and you don’t include them vada.com 17
in the price, you run the risk of a lawsuit getting into over the FTC — and giving away a lot of free stuff as well.” Several panelists argued that dealerships should consider designating a compliance officer to oversee advertising, pricing and sales practices. As Fitzpatrick noted, compliance isn’t a once-ayear training exercise anymore — it’s an everyday responsibility. 2. THE REAL COMPETITION IS FRICTION The discussion repeatedly returned to one word: friction. Whether consumers are using brokers, shopping with Carvana or exploring other alternatives, D’Arc argued that many customers are looking for a simpler buying experience. “What have we done so poorly in automotive that creates a need or a demand or an excitement for that kind of personless experience?” he asked. The takeaway wasn’t that dealers need fewer people, but that customers want transparency, speed, and convenience. 3. DEALERS NEED TO SEE THE PROCESS THROUGH THE CUSTOMER’S EYES Hall challenged attendees to remember that most customers buy vehicles very differently than industry professionals. “We don’t understand what happens to a customer when they come in, because that’s not what we do. We’re in the business,” he said. His point: Dealership leaders often know how to navigate the process because they’ve spent their careers inside it. Customers haven’t. Creating a better experience starts with understanding that difference. 4. THE FRANCHISE SYSTEM FACES PRESSURE FROM ALL SIDES The panel touched on everything from Carvana and brokers to direct-to-consumer sales and Chinese automakers. The speakers didn’t always agree on solutions, particularly when it came to Chinese manufacturers, but they agreed on one thing: Dealers cannot ignore the forces reshaping the market. “The U.S. franchise system is under attack,” Fitzpatrick said. “It’s under attack by manufacturers. It’s under attack by consumers.” 5. THE FUTURE STILL BELONGS TO DEALERS WHO ADAPT Despite the challenges, the panel ended on an optimistic note. D’Arc described automotive retail as one of the few industries where someone can still build a successful career regardless of background. “The auto industry is a leading economic indicator of health in the United States of America,” he said. “It’s a unique industry because you can come into it from any background — not much education, not much experience — and you can accomplish almost anything. Something we explore often: ‘Is the American dream still alive and automotive?’ I would say yes, but it’s not assured for that next generation. It’s our job, as we are more transparent, as we reduce friction, as we think and have conversations that cause us to be more innovative and to progress, we help to preserve that.” 18 Virginia Auto Dealer
The FTC has made advertising compliance one of its top enforcement priorities, and dealerships can no longer afford to treat it as an afterthought. At VADA 2026, ComplyAuto’s Lauren Bailey joined VADA’s Anne Gambardella and our outside counsel, Barrie Beaty, for a practical discussion of the FTC’s recent warning letters, the agency’s six key advertising enforcement priorities, and the steps dealers should take now to reduce legal risk. From all-in pricing and rebates to third-party listing sites, AI and phantom inventory, the panel offered timely guidance for navigating one of the biggest regulatory shifts facing the automotive retail industry. COMPLYAUTO AND VADA CONVENTION PANEL DISCUSSION FTC Advertising Compliance at VADA ’26 What Dealers Need to Know Scan the QR code to view the full panel, with audio synced to slides, and broken out by chapter. youtu.be/mypfB3B9uJk VIDEO CHAPTERS 0:00 Introduction 2:02 Agenda and today’s discussion 4:48 What counts as advertising? 8:10 Is a Monroney Sticker an advertisement? 14:30 Private communications vs. advertising 20:42 The FTC’s March 2026 warning letters 27:26 All-in pricing and required fees 33:19 Third-party listing sites and vendor responsibility 43:20 Rebates and conditional pricing 48:30 Required down payments 50:55 Dealer financing offers 53:20 Mandatory dealer add-ons 57:55 Phantom inventory and vehicle availability 1:02:35 “Made in America” advertising claims 1:05:10 Best practices for dealership compliance 1:09:15 Download the ComplyAuto Dealer Guide 1:10:20 AI in dealership advertising 1:18:45 Guardian compliance platform 1:23:00 Audience Q&A vada.com 19
In this VADA 2026 presentation, The Presidio Group’s Kevin Tynan — a VADA Annual Convention regular and favorite — examines the forces reshaping dealership profitability, from the normalization of new-vehicle margins and inventory levels to changing OEM strategies, vehicle mix, EV economics and the growing importance of fixed operations. Backed by market data and industry trends, the session offered dealers a clear-eyed look at where the business is headed — and what it will take to succeed in the years ahead. ECONOMIC OUTLOOK, CONVENTION PRESENTATION Retail Automotive Has Entered a New Era Kevin Tynan Returns to VADA ’26 Scan the QR code to download Kevin’s full presentation. vada.com/wp-content/uploads/2026/07/3.TYNAN_DECK.pdf 20 Virginia Auto Dealer
While our n me h s ch nged under new ownership, the he rt of our comp ny rem ins the s me — including the reli ble, friendly te m you’ve lw ys worked with. Our go l is to be trusted p rtner for tr de nd profession l ssoci tions, strengthening membership nd connecting member businesses with their future customers. We look forward to what’s to come! New name. Same people. Renewed commitment. We’re excited to nnounce th t is now mbr-connect.com (801) 676-9722 hello@mbr-connect.com vada.com 21
VADA ‘26 Sponsors! VADA ‘26 would not have been possible without the incredible support of our sponsors. On behalf of Virginia’s franchised dealer community — thank you. FEATURED TITANIUM PLATINUM GOLD SILVER Thank You 22 Virginia Auto Dealer
BRONZE vada.com 23
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. MILEONE AUTOGROUP DONATES CAR SEATS TO HAMPTON ROADS FAMILIES As part of the MileOneCares Car Seat Community Program, MileOne Autogroup, Children’s Hospital of The King’s Daughters (CHKD) and the Virginia Beach Fire Department worked together to distribute 233 car seats to growing families in Hampton Roads. A group of amazing volunteers helped distribute car seats and provide education on proper installation. CMA’S SUBARU OF WINCHESTER PROVIDES PLENTIFUL POTATOES TO FOOD PANTRY The team at CMA’s Subaru of Winchester donated over 500 pounds of potatoes to help stock the CCAP Food Pantry! The donation was part of their Cars & Cans Food Drive, supporting local families and helping ensure the Winchester community has access to nutritious food. FLOW TOYOTA OF CHARLOTTESVILLE COLLECTS PET SUPPLIES FOR SHELTER Flow Toyota of Charlottesville hosted a pet supply drive, collecting donations for the animals at Charlottesville-Albemarle SPCA, including puppy Sunbutter. Thanks for helping keep our furry friends comfortable and happy while they wait for their forever homes! 24 Virginia Auto Dealer
STROSNIDER CHEVROLET SUPPORTS LOCAL EAGLE SCOUT’S FOOD DRIVE Strosnider Chevrolet noticed a local Eagle Scout stepping up in a big way and was proud to be the drop-off location for his donation drive benefiting the Prince George Animal Shelter. Every toy, every bag of food, and every item brought in went straight to the shelter to support the care of animals in need. CMA’S HONDA OF LYNCHBURG DONATES CLASSROOM SUPPLIES The team at CMA’s Honda of Lynchburg is making a real impact outside the dealership. In May, they donated an array of books, pencils, paper and other vital classroom supplies to Ms. Halka’s third-grade classroom at R.S. Payne Elementary School. Way to support education and local students! BEYER SUBARU DISTRIBUTES TREES FOR A GREENER ALEXANDRIA The Beyer Subaru family proudly participated in the national Subaru Loves the Earth initiative by distributing tree saplings to community members. With support from the Arbor Day Foundation, Subaru and its retailers have distributed 65,000 trees across the country so far this year, helping to improve environments and enhance well-being. vada.com 25
SHELOR TOYOTA HOSTS TEST DRIVE FUNDRAISER FOR ELEMENTARY SCHOOL Shelor Toyota hosted a test-drive fundraiser on behalf of McHarg Elementary School to raise funds for the school. The event raised $2,000 to help the school meet its students’ needs, and representatives from Shelor Toyota paid a visit to Ms. Dobson’s second-grade class to present the check. ALEXANDRIA HYUNDAI PRESIDENT PROMOTES PEDIATRIC CANCER RESEARCH Kevin Reilly, president of Alexandria Hyundai and vice chair of Hyundai Hope on Wheels, spent an inspiring day in New York City with pediatric cancer survivor and Hope on Wheels National Youth Ambassador Jackson Trinh. The pair represented Hyundai Hope on Wheels during a satellite media tour promoting its mission to end pediatric cancer and sharing Jackson’s story of courage and optimism. Backed by decades of experience, Brad D. Weiss, Barrett Charapp Beaty, Travis Salisbury, Elizabeth A. Dwyer, and Ben Sinder are dedicated to providing auto dealers with comprehensive legal support and strategic guidance. cwattorneys.com 571.346.7507 1818 Library Street, Suite 500, Reston, VA 20190 Barrett Charapp Beaty Travis Salisbury Elizabeth A. Dwyer Ben Sinder Brad D. Weiss Your Trusted Legal Partner for Auto Dealers: Charapp & Weiss, LLP. Contact Us For Further Inquiry 26 Virginia Auto Dealer
‘Drive to 250’ With VADA PAC With VADA PAC Celebrating 250 Years of Virginia in America Virginia’s auto dealers have always been drivers of progress — keeping customers on the road, creating jobs and powering one of the Commonwealth’s most important economic engines. As we celebrate America’s 250th anniversary in 2026, the road ahead demands the same commitment and unity that built our industry. Drive to 250 is our call to action, with the goal of raising $250,000 to support pro-dealer candidates. Because the policies written in Richmond shape the future of every dealership, from the sales floor to the service bays, we must ensure our voices are heard. Through the Virginia Auto & Truck Dealers Political Action Committee, we support candidates who understand our industry, value free enterprise and will protect a pro-business environment for Virginia dealers. 250 YEARS OF OPPORTUNITY, ONE INDUSTRY DRIVING FORWARD To secure a pro-dealer environment, we need every member of the Virginia Automobile Dealers Association to contribute to our PAC. Your support ensures that our industry’s story is heard. Whether you are a dealership owner, general manager, sales leader, service technician or proud partner, your contribution helps us drive the future of the automotive industry in Virginia. More Giving Options Make It Easy to Contribute For the first time ever, VADA is offering two new contribution levels to encourage people from every corner of the dealership to get involved. A $250 level is now available — a dollar for each year of American independence — as well as a $25 option, making it easy for our many dealership employees and industry partners to give what they can to this important cause. Make your contribution today at vadapac.com. vada.com 27
Virginia Automobile Dealers Association VADA Executive Committee Eley Duke Chair Duke Automotive John Altman Vice Chair Beyer Automotive Group Tanner Hulette Treasurer Page Auto Group Rachel Pullen Secretary Safford Automotive Group Don Hall President & CEO Virginia Automobile Dealers Association Roger Keller Immediate Past Chair Sheehy Auto Stores Tim Pohanka Legislative & PAC Chair Pohanka Nissan Hyundai Chris Lindsay NADA Director for Virginia Lindsay Chevrolet LEADERSHIP VADA Group Self-Insurance Association Board of Directors Michael Allen Virginia Automobile Dealers Association Cole Balderson Ourisman Automotive of Virginia Burt Brenner Lindsay Lexus of Alexandria Chris Brown Haley Automotive Penny Burch Magic City Ford Lincoln Isuzu 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 Eley Duke, Chair, VADA Board of Directors Conrad Aschenbach Front Royal Ford LLC Daniel Banister Banister Automotive Zachary Cochran Whitten Bros. Chrysler Dodge Jeep Mazda David Dillon Southern Team Auto Group Eric Flow Flow Motors Josh Hamilton Checkered Flag Motor Car Co. Cameron Johnson Magic City Auto Group Steve Klimkiewicz Cavalier Automotive Group Kayla Kody Richmond Ford Ashton Lewis First Team Automotive Chip Lindsay Lindsay Management Co. Kimberly MacCumbee Ourisman Graham Automotive Tom Mohr Highway Motors, Inc. Jeff Owens Southern Auto Group Matt Perry Crown Acura Geoff Pohanka Pohanka Lexus Kinsey Pridgen Haley Automotive Michelle Radley Radley Automotive Group Jake Sodikoff Steven Nissan Jeff Syed Leesburg Buick GMC Matthew Walsh Carter Myers Automotive Michael Wood Euro Motorcars Jaguar Land Rover of Chantilly Virginia Motor Vehicle Dealer Board Tom Barton Beach Ford and Barton Ford James Church Blake Ford Carl Hart Hart Motor Co. Inc. 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 GM Subaru 28 Virginia Auto Dealer
A1 Asphalt Paving & Sealing LLC Advanced Dealer Services Atlantic Union Bank BG Products Brightline Dealer Advisors CarFax Core Assurance Partners Dealer Pay DLRdmv Dynatron Software Foti Flynn Lowen & Co. Grow Financial Federal Credit Union Huntington National Bank JM&A Group Kenect M&T Bank Manheim Fredericksburg Manheim Harrisonburg PayJunction Protomiq Solera Titling Tekion United Bank Veramatic Inc. VADA ALLIED MEMBERS THANK YOU! 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 29
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. Brown & Brown Dealer Services offers a comprehensive suite of F&I training, participation programs and additional services tailored specifically for franchised automobile dealers. Their products are designed to help strengthen profitability, elevate customer experience, and navigate an increasingly complex regulatory and insurance environment. 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 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. 30 Virginia Auto Dealer
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. Priority Commerce Automotive helps dealers reduce their credit card processing fees by an average of 75-95%, with some dealers saving well over $100,000 per year in fees. Find out how Priority Commerce Automotive can help your dealership save at prioritycommerce.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. Whatever the workday demands, who but W.B. Mason delivers. Offering advanced business solutions, fast, free shipping on over 100,000 business products. Trusted by one in four dealerships nationwide, Hireology is the best applicant tracking system in the industry. Our platform is built for the unique needs of multi-location, decentralized dealerships, and our team has decades of experience in the automotive hiring space. Management consulting, human resource management and labor relations. For more information visit sescomgt.com. More than a CRM provider, VinSolutions turns data into profit across the entire dealership. Powered by Cox Automotive’s real-time, first-party data, VinSolutions equips dealerships with predictive AI that pinpoints when shoppers are ready to buy and how much they’re willing to pay—while precision-targeted marketing campaigns automatically adapt to real-time consumer behavior, ensuring every message hits the mark. 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. TagTracker is a robust, cloud-based solution designed to give dealerships full visibility and control over their vehicle inventory. By leveraging advanced tracking technology, TagTracker simplifies operations, enhances security and improves the overall efficiency of dealership management. vada.com 31
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