Weekly Circles Briefing · Jan 2 - Jan 9, 2026

CRM & Phone System Integration: Dealerships are actively seeking seamless integration between CRM platforms like DriveCentric and phone providers such as CarWars, CallRevu, and GoTo, with several users reporting good integration with DriveCentric.

Service AI Adoption: Numa is gaining traction for service operations, with reported monthly costs of $2,000 USD and $3,000 CAD, and is being used for outbound text campaigns for Service Connect alerts, resulting in 10,762 texts sent last month across 4 stores. Impel AI is also used for sales, though some question its value.

Digital Merchandising & Photography: Tools like CarCutter ($399 per store monthly) and Spyne AI ($299 monthly) are being used to create digital showrooms, standardize photo cadences, and generate AI videos. Snaplot360 is also utilized for in- house photography, enabling 4 initial photos upon arrival and 25-35 detailed photos after reconditioning.

Customer Data Platforms (CDPs): Fullpath's CDP is unofficially estimated at $4,000 per month for one rooftop, with add-ons for equity mining and data enrichment, and a potential beta integration with DriveCentric for GM dealers.

Diagnostic Tools: Dealerships are using various tools for scanning non-OEM used cars, including Velocity Automotive’s VINSight OBD-II scanner, Vintel (around $200), Autel ($3,000), and Snap-on.

Technician Compensation: Master technicians in some regions (OH, FL, MA) are paid $50-$55 per hour, while diesel technicians can earn $55-$65 per hour (TN, MA). There is discussion around whether DMS cost setup for technicians should be straight wages or include bonuses, with a recommendation for bonuses and spiffs to hit unapplied labor.

Warranty Parts & Labor Rates: OEMs vary significantly in approved markups; Mazda is at 149%, while Toyota has declined a justified 125% parts markup multiple times. Honda stores have seen warranty rates increase from 172% to 198-202% with assistance from Service Department Solutions.

Service Marketing & Retention: SEO/SEM for RO volume has not consistently yielded increases, prompting exploration of exact match campaigns for specific services (e.g., "Ford Tires"). Matador AI is used for declined service follow-up, offering 10% discounts in the first week and 15% in the second, with high response rates.

Operational Efficiency Tools: Dynatron is praised for helping increase warranty parts and labor rates, coaching service/parts managers, and maintaining accountability. Armatus Fixed Ops Performance Center (FOPC) is noted as a more cost-effective alternative, at approximately one-third the price of Dynatron.

Carvana's Frictionless Model: A personal experiment revealed Carvana sold a new Wrangler at basically invoice price with zero fees or surprises, including no doc fee, and delivered it in 72 hours. Stellantis believes Carvana primarily converts used vehicles to new and has a deep relationship with Stellantis Financial and Ally.

Inventory Acquisition Performance: KBB ICO conversion ratios have reportedly dropped from 10% to 5% over the last two months, with some dealers paying $5,749 per month for a dedicated rep with Impel AI. Success in acquisitions is attributed to immediate review of offers and often exceeding KBB appraisals.

Used Car Profitability: One independent dealer reported an average gross profit of $3,665 per unit, with an average recon cost of $960, targeting an average unit value of $20,000-$25,000 for faster turns. The average cost to market for auction purchases is 93%, and for trades is 80%.

Inventory Swap Channel: An official template has been introduced for sharing available or needed inventory across various OEMs (Ford, RAM, GMC, Buick, Mercedes-Benz, Honda, Toyota, Jeep, BMW, Chevrolet).

Third-Party Lead Source ROI: Conversion rates for platforms like CarGurus and Cars.com are reported between 2-4%, significantly lower than the 10-15% for other lead sources. A target of 10% conversion at a cost of $50-$70 per lead is suggested before reallocating spend.

Mailer Campaign Effectiveness: Experience with mailers, including GMF/Epsilon and Mudd's pre-qual/credit mailers, varies by location and demographics, with some finding them effective for re-exposing to their customer base.

Key Performance Indicators for Growth: Net profit is widely considered the most important metric for business success. Driving net profit involves focusing on cost of acquisition (leads), closing ratio, and gross profit per sale, rather than solely chasing revenue or unit volume.

Sales Onboarding: Toyota dealers are implementing 2-week onboarding processes for new salespeople, including assigning a mentor (paid $500 plus a bonus per car for 60 days) and requiring demonstration of phone, internet lead, and meet-and-greet skills.

Stellantis Program Updates: Districts are being realigned, with some dealers experiencing changes without prior notification. Issues with rebates not showing up in conquest and delays in select inventory feeds are reported.

Nissan DVB Program Overhaul: Nissan has changed its dealer incentive program to two payout levels: $1,000 per new vehicle when hitting sales objective or $500 for 80% of target, eliminating previous tiers. This is seen as a potential pay cut for high- performing stores.

Hyundai PEP 3.0 Concerns: The new PEP 3.0 program is viewed by some as a $200 per vehicle retail (PVR) pay cut for stores consistently exceeding 110% of their objective.

EV Charger Costs & OEM Support: Dealerships are struggling with the high cost of operating Level 3 EV chargers (e.g., $0.55/kWh in Canada, up to $0.69/kWh in Michigan, potentially losing $15,000/month in California). Ford has reportedly refunded equipment costs after walking back its EV program, while GM did not.