Based on 1,000+ dealer-only conversations across franchise and independent rooftops in CDG Circles.
Quick note: July Temp Check is now open!
The June results gave us a clear signal: fixed ops and F&I were carrying the store, while lead volume and consumer demand continued to soften.
Now we need to know: Was that a one-month shift... or the start of a larger trend?
It takes less than 60 seconds:
Click the link below
Sign in
Answer 10 quick multiple-choice questions
Big picture: One dealer took their body shop labor rate from $55-72/hour to $110/hour by directly negotiating with insurers — citing OEM certification and state administrative code, backed by real teeth: handling fees, daily storage charges, and re-entry fees if a rate gets disputed.
Meanwhile, the room's patience with core CRM/DMS platforms is wearing thin, with operators openly comparing VinSolutions, Tekion, and Reynolds unfavorably against newer entrants. FTC addendum disclosure remains a live gray area, with dealers split on how much to display upfront.
1) Fixed Ops: Asserting Body Shop Labor Rates
Direct Insurance Negotiation Yields Higher Pay: One dealer reported successfully increasing their body shop labor rate from a typical $55-$72/hour to $110/hour by directly negotiating with insurance companies. This was achieved by leveraging OEM certification (Stellantis in this case) and state-specific administrative codes. Their strategy includes a formal letter that cites manufacturer standards and outlines administrative policies for non-compliance, such as immediate work pauses, handling fees (1 hour of labor), daily storage fees ($29/day), and re-entry fees (1 hour of labor) if rates are disputed.
Automated Declined Service Remarketing: One operator shared that their service software automatically generates $5,000-$10,000/month by emailing and mailing postcards to customers with previously declined service recommendations. They noted that an advisor could further drive this by actively working the reports.
2) Compliance: FTC Threats and Pricing Transparency
Addendum Disclosure Challenges: Dealers are grappling with how to advertise addendums in light of FTC threats. While some are complying by listing addendums on SRP/VDPs, others are only including disclaimers at the bottom of pages, observing competitors doing the same. One dealer noted that offering a bundle pack on the first pencil, even if optional, could be considered an FTC violation, yet not offering available products to all customers is also a violation, highlighting the "funky" nature of compliance.
Transparency vs. Competitive Pricing: The sentiment is that transparent, upfront pricing is challenging when local competitors advertise vehicles with significant "finance discounts, trade-in discounts, etc.," making their advertised prices impossible to match. Some speculated that extreme FTC crackdowns could force a Carvana-like online process requiring customer information before viewing vehicle details.
3) Technology & Tools: Persistent CRM/DMS Frustrations
Dissatisfaction with core DMS/CRM platforms continues to build across recent weeks.
Widespread Dissatisfaction: Dealers expressed significant frustration with existing CRM and DMS solutions. One operator, after a year with VinSolutions, stated they "would not add another VinSolutions product even if I had a gun to my head" due to everything being "beyond sub par." Another noted that Tekion, CDK, Reynolds, and Dealertrack "still lag in operational ease and efficiency" compared to disruptors like Carvana.
Lead Management Inefficiencies: A specific pain point highlighted was the incorrect bucketing of acquisition leads under sales leads, leading to "totally wrong cadence and follow up process." One operator suggested that while a single contact list is fine, the ability to surface different deal pipelines and metrics for buy center leads is crucial.
Support Issues: Tekion support was described as "spotty at best," with one instance where a simple printer change request led to "all print functions for the entire dealership" being taken out for two hours.
4) Marketing & Lead Generation: Targeted Approaches for Specific Segments
Market-Dependent SEM & 3rd Party ROI: A rural dealer selling 220 units/month reported not spending a dollar on SEM, finding it merely competed against themselves. They focus heavily on 3rd party used sites like Cargurus, Cars.com, and Carfax listings, while dropping Autotrader due to "far and away my lowest ROI." This operator also uses Overfuel for a separate group website, citing dissatisfaction with OEM website providers.
Subprime Facebook Events Drive Volume: In a college town, one Kia dealer reported moving K4s quickly by running Facebook events that cost $7,500 for two weeks, which generated 6-7 times that amount in gross. These events handle lead generation, follow-up, and appointment setting.
Top Actions for Next Week
Evaluate Body Shop Labor Rate Strategy: Consider developing a formal letter and process for negotiating higher labor rates with insurance companies, leveraging OEM certifications and local regulations.
Review Addendum Display & Pricing Strategy: Assess current advertised pricing and addendum disclosures against evolving FTC guidance, noting the potential for future shifts toward more upfront, all-inclusive online pricing.
Audit CRM/DMS Lead Management: Review how acquisition leads are categorized and followed up on within your current CRM, ensuring appropriate cadences and reporting.
Explore Targeted Digital Marketing: For specific inventory needs or market segments (e.g., subprime), investigate focused digital campaigns like Facebook events and assess ROI from existing 3rd party listing sites.
Evaluate Automated Declined Service Follow-Up: If not already in place, review service software capabilities for automated emailing and postcard campaigns to re-engage customers with declined recommendations.
Pro & Circles members: Your Wins & Warnings for July 10 – 24 are below.
Custom-built AI tools are drawing attention for combining equity mining with deep DMS history to cut manual work in appraisal and reconditioning. Space.Auto is earning praise for consolidating legacy systems into meaningful monthly savings, and Dynatron resurfaces with a $237 door rate and steady parts markups — a contrast to the audit-risk concerns flagged in earlier coverage.
On the warning side, VinSolutions' email deliverability issue persists even after members corrected SPF, DKIM, and DMARC records, pointing to the platform's shared servers as the likely culprit. Vincue implementation strain continues to concentrate in complex, multi-store rollouts. And Dealer Inspire's support team couldn't resolve a broken-link issue directly, requiring escalation to engineering — consistent with the pattern flagged in prior weeks.
Not seeing them? [Upgrade now]