Most dealers don’t have a used car problem.

They have a focus problem.

Everybody agrees used cars matter.

But watch what happens during the day…

A deal blows up.

A salesperson needs help.

Service gets backed up.

You lose a good person.

Your DMS takes a crap.

Shit happens.

And just like that — focus shifts.

Here’s the Truth:

The car business rewards reaction.

But results come from discipline.

You can stay busy all day, solve problems, feel productive…

…and never improve the one area that drives your dealership.

Great athletes figure this out early.

The greatest of all athletes start out playing more than one sport.

At some point they realize they need to get focused on the one that they have the most potential with.

Used cars require that same commitment.

You can’t manage them part-time.

You can’t check in when it’s convenient.

And you can’t expect great results without consistent focus.

When I say “you,” I’m talking about those at the very top of the leadership team.

Used cars aren’t just a department.

They’re the engine.

They drive cash flow, inventory turn, service absorption, and overall profitability.

When they’re right, everything feels easier.

When they’re wrong… everything gets heavy.

So what does real focus look like?

The best way for you to create focus is to ask lots of questions. Question anything and everything that has to do with used cars.

Focus isn’t what you say.

It’s what you refuse to take your eyes off.

You don’t need a new strategy.

You need a tighter lens.

You’re not stupid. You know used cars drives your entire business.

To not focus on used cars is just plain stupid.

Don’t be stupid. That’s all I’m gonna say, Tommy Gibbs

I’m thinking that even if you don’t, you probably have. We often lie to ourselves in order to justify whatever it is we’re trying to justify.

Let me save you some consulting money…

The biggest problem in your used car department

isn’t your market…

isn’t your inventory…

isn’t your competition…

It’s you.

More specifically—

The lies you tell yourself.

Now before you get defensive… stay with me.

Because these aren’t the obvious lies.

These are the comfortable ones.

The ones that sound smart.

The ones that feel justified.

The ones everybody nods their head to in the meeting.

“We’re priced to the market.”

(Then why are your cars having birthdays on the lot?)

“Recon is fine.”

(Define ‘fine.’ Because you “think” you’re getting them through quickly.)

“Packs are working.”

(I doubt it. I really, really doubt it.)

“We just need more leads.”

(You’re not converting the ones you’ve got.)

“I don’t want to get rid of it because I can’t replace it.”

(Are you serious? You want some more of those so they too can sit around for 90 days?)

Here’s what you’re really doing—

You’re building a case… instead of building a business.

And you’re a good lawyer.

You’ve got evidence.

You’ve got opinions.

You’ve got other people agreeing with you.

But none of that changes the scoreboard.

And make no mistake—

Used cars is a scoreboard business.

Turn.

Age.

Gross.

TAG…fix the tag.

No opinions.

No feelings.

No stories.

Part of the lying is the justification.

You start explaining instead of fixing.

Defending instead of adjusting.

Talking instead of acting.

And here’s the truth nobody likes—

Every time you lie to yourself about your used car operation is another day justifying what you want to justify.

Choose your lies wisely, that’s all I’m gonna say, Tommy Gibbs.

I’m a baseball fan in part because baseball exemplifies life and the car business.

Let me ask you something…

If you’re stepping into the batter’s box, what count do you want?

3–0?

3–1?

2–0?

Exactly.

Because in baseball, the count tells you everything. It tells you who’s in control.

And the same thing is true in your used car department.

When You’ve Got the Count… Life Is Good

3–0 count

The pitcher’s in trouble. He can’t miss again. What do you get? A “get me over” fastball—right down the middle.

That’s what it looks like when you have:

Zero units over 30 days old.

You’re not guessing.

You’re not hoping.

You’re in control.

Customers show up—and you’re swinging at your pitch. Gross is strong. Decisions are easy. No pressure.

3–1 count

Still a beautiful place to live. You can be aggressive. Miss it? No big deal—you’ve still got another strike.

That’s your store when you have:

Zero units over 45 days old.

You’ve got flexibility.

You’ve got confidence.

You’re not discounting out of fear—you’re selling out of strength.

2–0 or 2–1 count

Now the hitter gets selective. “I’m not swinging unless it’s what I want.”

That’s the equivalent of:

Zero units over 60 days old.

You’re still ahead.

Still in control.

Still choosing your pitch.

Now Let’s Tell the Truth…

Most dealers don’t operate in hitter’s counts.

They’re behind in the count.

0–2.

1–2.

Hanging on.

Why?

Because they let inventory age.

They hold on too long.

They “hope” instead of act.

It’s like putting a blindfold on and taking three hefty cuts. Once in a while you might get lucky.

Old Inventory = You’re Chasing the Pitch

Once units creep past 60 days…

You’re no longer the hitter.

You’re reacting.

You’re protecting.

You’re just trying not to strike out.

Gross shrinks.

Decisions get emotional.

And every deal feels harder than it should.

Sound familiar?

The Best Operators Do One Thing Differently

They protect the count.

They don’t let inventory age into a bad position.

They manage it daily.

They price it aggressively.

They turn it before it turns on them.

Because they understand this:

You don’t make your money when the car is 75 days old.

You make it when the count is in your favor which is about 30 days or less.

Final Thought

The goal is to step into the box every day…

with the count in your favor.

Because when you’ve got the count—

you don’t need luck.

You just need a good swing. Having the count in your favor improves the odds of you hitting it out of the park.

Going, going, gone! Thanks all I’m gonna say, Tommy Gibbs

Let’s get something straight.

A used car is not a spreadsheet.

It’s not a formula.

It’s not a clean data set.

And it sure as hell isn’t the same as the one parked next to it.

Every used car is one of a kind.

Same year. Same make. Same model. Same mileage.

And still… completely different cars.

Why?

Because cars live different lives.

One was owned by a neat freak who serviced it like clockwork.

Another was driven hard, skipped oil changes, and cleaned only when it rained.

And yet…

we’ve got dealers pricing them like they’re identical.

The Software Trap

Now let me say this upfront…

I’m in the software business.

I believe in it. I use it. I sell it.

Good software is powerful. It gives you data, speed, and consistency.

But here’s the problem…

Too many dealers have turned software into a crutch instead of a tool.

They plug in the VIN.

They look at the number.

And they stop thinking.

That’s where the money gets left on the table.

You Can’t Download Experience

No software can:

• Feel how a transmission shifts
• See the difference between “clean” and “exceptional”
• Smell smoke, pets, or neglect
• Recognize pride of ownership
• Have that good old “street savvy”

That only comes from you.

Your experience.

Your judgment.

Your time in the trenches.

You’re the one standing in front of the car.

You’re the one who decides:

“Is this rough, average… or is this special?”

Common Sense Still Wins

Here’s the truth most people don’t want to admit:

Data doesn’t price cars.

People do.

The best operators I know don’t ignore the software…

but they don’t worship it either.

They use it as a guide—then they adjust.

Up.

Down.

Or sometimes… they ignore it completely.

Because they trust what they see.

The Opportunity Most Dealers Miss

If you price every car like the market average…

You’ll get average results.

But when you recognize that a car is:

• Cleaner than the market
• Better maintained
• Harder to find
• More desirable than the comps

Now you’ve got an opportunity.

That’s where gross lives.

And it doesn’t come from software.

It comes from judgment.

Bottom Line

Software is a tool.

You are the advantage.

If you rely on the tool and ignore your instincts—you’ll underperform.

If you combine both?

Now you’re dangerous.

Final Thought

Every used car tells a story.

The question is…

Are you listening to the software?

Or are you reading the car?

You have “street smarts.” Use them. That’s all I’m gonna say, Tommy Gibbs

Absolutes build discipline.

They create clarity.

They set the standard.

But here’s the problem…

Absolutes leave no room for exceptions.

And sometimes, exceptions are necessary.

Now be careful.

Exceptions don’t just bend the rules…

they start rewriting them.

One turns into two.

Two turns into “we always do it this way.”

And before you know it, discipline is gone.

Not overnight.

Not with a bang.

Slow. Quiet. Sneaky.

Then one day you wake up and think,

“What the heck happened?”

Here’s the truth about leadership…

You can run with both absolutes and exceptions.

But only if you know what you’re doing.

Grant the exception.

Then go right back to the standard.

That’s leadership.

The problem?

Most leaders can’t pull that off.

They live in one world or the other—

Rigid… or reckless.

And at the wrong time,

both will hurt you just the same.

— That’s all I’m gonna say, Tommy Gibbs

I get the same question 15–20 times a month:

“Where can I find a good used car manager?” I’ve had 3 calls today asking that very question.

Short answer?

You probably won’t.

Think about it.

If someone is great at what they do, they’re not looking.

And if they are… there’s usually a reason.

Most of the time, when a “great” manager leaves, the truth follows them out the door.

All the inventory problems? They were always there. Now you just see them. 99% of the time the leave a hot mess in their wake.

So here’s my advice:

Stop looking outside. Start building inside.

Great leaders don’t shop for talent—they develop it.

Find someone on your team.

Strong work ethic.

Open-minded.

Tech-savvy.

A little common sense (harder to find than you think).

Then go to work.

For the next 6 months, they’re not the manager—they’re your shadow.

You move, they move. You think, they think.

First:

You do it. They watch.

Then:

They do it. You watch.

Eventually:

They do it. You step back.

And finally:

They do it… and now they’re training the next one.

That’s how real growth happens.

That’s how you scale.

When you keep bringing in people from the outside, you keep bringing people in from the outside. It’s a revolving door of insanity. That’s all I’m gonna say, Tommy Gibbs

About this time every year I make this suggestion.

I realize this may not be a fit for some of you. And yes, there are some who believe this is old school, old fashioned and outdated. But, there are some who can make this work. And if it helps someone sell a few more units, I can handle a little criticism.

Memorial Day is just a few weeks away. It’s not too soon to be thinking about putting on a Memorial Day sale.

Consider Having An Onsite Tent Sale:

1. Put the tent up as close to the road as possible. Pick the best strategic position on your lot.

2. Put tables and chairs in the tent.

3. Put ALL of your people in the tent.

4. Everybody goes in the TENT!

5. Work all deals in the TENT!

6. If at all possible, move your computers into the tent and do F&I in the TENT.

7. Hang banners from the TENT saying “TENT SALE.”

8. Promote it with Direct mail and/or with a “private invitation” only deal for Thursday before you kick off your regular ads.

9. Do anything you can to make it look like a circus.

10. Rent those jumping air things for kids.

11. Balloons and more balloons.

12. Pop Corn, Sodas, Hot Dogs.

13. Lots and lots of spiffs for your sales people and managers.

14. Do a great kick off breakfast on Thursday for your staff.

15. Don’t do it just for the sales staff; get as many of your

employees involved as you can. (Feed everybody lunch every day of the event as well.)

16. Send out memos and emails to all employees explaining in detail what’s going to be happening.

17. Rope off special parking for customers. Hire an off duty police officer or security guard to direct them.

18. Answer the phone XYZ Dealership Tent Sale in Progress.

19. Do a fundraiser at the same time for the local little league or whatever.

20. Post the event on your website.

21. Do an email blast to all your customers advising them of the sale. If your CRM system is sophisticated enough make sure you tell them you need their specific trade and will pay top dollar for it during the sale.

22. Giveaways generally don’t do much except cause people to show up to get their gift and leave, but having people register for a free car is a good way to get info on them when they show up. Pick out a $1000 or $2000 car and give it away.

23. Along that same line, give the salesman who registers the winning ticket some sort of prize. Gift card, $200, whatever floats your boat.

24. Make up a bunch of signs like real estate signs that say “Tent Sale in Progress” and put along the grass in front of the dealership.

25. If you’re close to the interstate do some signs with arrows and put them up close to the ramp. (Oh come on, the worst that can happen is they make you take them down.)

26. Rent a chicken suit or some kind of character and have them walk up and down in front of the Dealership with a placard that says “Tent Sale in Progress.”

It’s not complicated and it’s not expensive. You just have to be creative. Get some of your key people together and throw some ideas around.

That’s all I’m gonna say, Tommy Gibbs

Don’t you hate hearing…

“We’ve always done it that way”?

Here’s the truth—

Most dealers don’t say it.

They just do it.

They stack fees.

They bury charges.

They advertise one price… and deliver another.

Let me ask you something—

Would you want your mother, your father, a relative or close friend

walking into your store…

Thinking they’re paying one price…the one they saw on your website

…and getting hit with another?

Come on. You know the answer.

And now the Federal Trade Commission is stepping in.

No more games.

What you show as a price…better be what you sell it at.

Some of you are going to test the system.

Some of your are going to try and figure another way.

Some of your are going to get fined a bunch of money and wonder what the heck happened.

Some of your are smarter than that. Some of you have already made the move. Nobody had to tell you or force you to do the right thing.

Now we get back to real selling.

Sell the value of you.

Sell the value of your product.

Sell the value of your dealership.

Earn the trust.

Sell more cars the old fashion way. Because you earned it.

Funny how that works. That’s all I’m gonna say, Tommy Gibbs

Human nature is funny. When things aren’t going well, people like to complain and blame someone for their inefficiencies.

Want to know the number one complaint I hear from sales managers when I’m in dealerships?

You already know the answer.
The service department.

Sometimes they say it quietly. Sometimes they say it loudly. Usually they say it and then apologize for saying it.

Early in my career my attitude was simple:
“Stop complaining. Go to work. Control what you can control because it’s not going to change.”

Well, I’m here to tell you something.
It does need to change.
And it needs to change sooner rather than later.

Historically, dealers charged full retail from service to the used car department for the same reason they implemented packs. Sales managers worked from cost up, and that system worked very well for a long time.

But times change.

Whether people want to admit it or not, over the years the used car department has become an easy mark for the service department. And here’s a fact people don’t talk about enough: the hours per RO on a used car ticket versus a customer pay ticket is more than double.

But it’s not just the cost.
It’s the time.
It’s the speed.
Or more accurately… the lack of speed.

Almost everyone in our business today understands how crucial speed is to success. The lack of speed and efficiency in your service department is killing your ability to do volume and make the money you’re capable of making.

Creating speed and becoming more efficient should be your number one priority as you move into the selling season.

I like relating our business to sports. Pick any sport. Today’s athletes are bigger, faster, and better conditioned than ever before. The game didn’t slow down — it sped up. And the teams that couldn’t keep up disappeared.

With shrinking margins, the car business is no different.
You have to get bigger — sell more cars.
And you have to get faster — turn cars quicker and operate more efficiently.

Everyone today talks about making the customer experience easier, better, and faster. That’s great. But even if you improve the selling process, you will never reach your full potential until you fix the time and cost it takes to get a used car to the front line.

I’ve said it before and I’ll say it again.
The best thing about being a dealer or owner/operator is this:

You have the power.
You have the power to fix whatever you want to fix.

That’s all I’m gonna say.

— Tommy Gibbs

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CHAMPIONSHIP TEAMS DON’E KEEP UNDER PERFORMERS

In business, we love to say our team is family.

Sometimes they actually are family, but even when they aren’t, we still like to think of it that way. It makes everyone feel good. It creates a nice culture. Warm and fuzzy.

And if you interview any championship sports team, they’ll say the same thing.

They’ll tell you they love each other. They’ll tell you they’re family. They’ll talk about chemistry and culture and how much they care about each other.

But here’s the difference.

If someone on that team doesn’t perform, they’re off the team.

No hard feelings. No long speeches. No “but he’s been with us a long time.”

They are paid to perform, and if they don’t perform, they are replaced.

In business, we often keep people who don’t perform because they’re “family.”

We tolerate things we shouldn’t tolerate.

We lower standards we shouldn’t lower.

We carry people we shouldn’t carry.

You can love people, care about people, and still have standards.

Championship teams love each other — but they also hold each other accountable.

Good thing you aren’t running a sports franchise.

That’s all I’m gonna say, Tommy Gibbs