Based on 1,000+ dealer-only conversations across franchise and independent rooftops in CDG Circles.
Big picture: One operator dramatically increased warranty rates by shifting tech pay to a skill-based career path, reaching $75/hour for top master techs and raising their warranty rate from $132 to $207. Dealers are finding success in improving customer satisfaction and Net Promoter Scores by focusing on "neutral" customers (7s and 8s) and asking "what would it have taken to make this a 10 experience?"
The consensus on sales pay plans is shifting from pure gross-based to hybrid models that combine salary or base units with volume bonuses and smaller percentages on gross, incentivizing both sales and gross defense. Several operators report a strong preference for DriveCentric over Vinsolutions, citing support and platform experience.
1) Fixed Operations Profitability & Staffing
Warranty Uplift & Tech Pay: One group reported significant increases in warranty rates and parts markup. One operator detailed moving a Ford dealership from a $100 warranty rate to $190 in 5 years, with parts markup at 125%, using Armatus (which they preferred over Dynatron for its detailed review and focus on increases). Another store in NC stabilized technicians with a career path pay plan, paying top master techs up to $75 an hour, increasing their door rate from $139 to $189 (diesel work from $165 to $225), and receiving approval for a warranty rate increase from $132 to $207.
Outsourced vs. In-house Warranty Admin: There was discussion around the pros and cons, with one member using Fixed Ops Intel to achieve a $40.00 increase and 83% parts markup.
Shop Foreman Compensation: Members shared models including a guarantee on hours plus $1 for every hour the shop turns. One operator is moving towards a small base salary with additional pay based on total shop sales, hours produced, and CSI/comeback/warranty standards, noting their owner's dislike for non-productive positions.
2) Sales Compensation Models
Shifting Away from Pure Gross: Operators discussed moving away from solely gross-based pay plans due to reduced salesperson control over front-end gross. Various hybrid models were shared:
Hourly base plus flats based on volume, with kickers for gross and tailored monthly bonuses.
A "healthy 1st unit" payment to cover minimum wage, no hourly, with the desk controlling gross. Bonuses tied to average discount from listed price to incentivize defending gross.
Base salary plus a unit bonus with a smaller percentage paid on gross.
A salary based on a 90-day rolling average (adjustable quarterly), volume bonuses from $1,000 to $5,000 (starting at 15 units), and 2-3% of gross starting at $50,000 gross, supplemented with spiffs and other monthly incentives.
Turnover & Incentives: One dealer reported a 10-15% annual sales staff turnover, mainly from new hires whose experience didn't translate. The consensus highlighted the need for pay plans to reward value creation, product conviction, and gross defense, rather than simply volume, to maintain profitability and a healthy culture.
3) Customer Experience & Digital Tools
NPS & Promoter Score Focus: One member reported significant improvements in customer satisfaction (above district, state, and national averages) by applying principles from "The Ultimate Question 2.0." The key shift was moving from chasing survey scores to creating "promoters" by genuinely listening to "neutral" customers (7s and 8s) and asking, "What would it have taken to make this a 10 experience?"
CRM Performance & Switching: Multiple operators expressed strong dissatisfaction with Vinsolutions, with one stating they'd take "a brown paper sack full of my dogs yard presents vs going back to vinsolutions." DriveCentric received widespread praise for its advancement and support, though one user noted rebates pushing to the DMS didn't itemize. One member is piloting Space Auto, calling it "way ahead of anything I’ve seen on the market." For Lexus/Toyota dealers facing OEM restrictions on unapproved vendor chat features, one operator successfully requested an exception from their e-commerce rep for Fullpath chat.
Website Trade-in Conversion: A member detailed building a custom trade-in process where customers upload photos/videos to a Dropbox integration, creating a link in the XML ADF lead for DriveCentric. Another is developing an AI-layered acquisition tool that provides a trade-in range immediately, offers a firm number after phone validation, and can re-offer after AI scans uploaded pictures, with fraud detection built-in.
WhatsApp Activity Linking: One dealer reported VIN app outbound calls being flagged as spam on customer phones and suggested the CRM provider may need to provide a new number.
4) Emerging AI & Integration Strategy
DMS API Access & Custom Builds: A dealer is actively completing certification for Dealertrack DMS read/write API access (a 2-3 month process) to build automated recon flows, dispatch boards, CRM visibility, and deferred service capture, along with GL import tools that have already shaved 90% of posting time for complex OEM statements. They highlighted the liability of DMS write access, noting "you could accidentally delete every single purchase order for every single part ever." MotiveRetail was recommended as a DMS-agnostic API solution, with one dealer successfully getting a dashboard live in about a month using it.
In-house AI Platform Development: Members discussed emerging in-house AI approaches to multi-channel used vehicle acquisition, website engagement, personalized video messaging, and FTC-compliant inventory addendums — reflecting broader frustration with third-party data vendors that don't understand day-to-day dealership operations.
Top Actions for Next Week
Review Customer Feedback Strategy: Review how neutral customer feedback (7s and 8s) is currently handled — members report gains from directly asking what would have made the experience a 10.
Evaluate Fixed Ops Pay Plans: Analyze current technician and shop foreman compensation against reported models that incentivize skill development, career paths, and shop productivity to potentially drive warranty rate increases and operational efficiency.
Assess Sales Compensation Model: Review your current sales pay plan's effectiveness given shifting market dynamics, exploring hybrid models that balance base/volume incentives with gross defense, and tracking discounting more closely.
Review CRM Satisfaction: If currently using Vinsolutions, review current CRM satisfaction and support experience against peer feedback in the room.
Evaluate DMS API Access Options: Evaluate DMS API access options — including certified paths and third-party solutions members have used — for building internal tools.
Pro & Circles members: Your Wins & Warnings for July 31 – August 8 are below.
Armatus is drawing praise for its role in warranty rate negotiations, with one Ford dealership reporting a jump from $100 to $190 over five years alongside a 125% parts markup. Matador is earning early attention for inbound call handling and social message integration, and Drive Centric continues to pull ahead of legacy CRMs on development speed and support responsiveness.
On the warning side, Spyne saw one dealer cancel within 30 days over AI-generated photo backgrounds falling short of real photography. Roadster is drawing specific functional complaints — VDP redirect behavior, OEM rate markup differentiation, and trade payoff entry — worth confirming before implementation. And Stellantis is mandating vAuto Conquest for 2027 model MAP pricing, with dealers pushing back on being required to adopt a platform they view as subpar.
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