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
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