Aligning Goals in Vehicle Acquisition: A Path to Better Compensation and Success

The disconnect between ownership/GM goals and the approach of Used Car Managers in acquiring street vehicles is a critical issue. The core problem lies in compensation structures that do not support unified objectives.

Understanding the Issue

Consumer Selling Dynamics

Consumer selling options have widened significantly. Simply offering 85% Cost-to-Market does not suffice anymore. Platforms like CarMax and Carvana provide straightforward alternatives, pressuring dealerships to present competitive offers.

Causes of Misalignment

The primary reason for this misalignment is the compensation model itself. While a front-end profit might seem modest, integrating backend and fixed operations transforms it into a substantially more lucrative deal. Yet, if Used Car Managers do not benefit from this expanded perspective, their buying strategies remain cautious.

Proposed Solutions

Conclusion: Unifying the Approach

To enhance street purchases and overall dealership success, it's essential to align compensation with the results that ownership values. Ensuring Used Car Managers see the complete profit potential as GMs and owners do is vital.

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