Why expectations, not technology, drive dealership performance
Why expectations, not technology, drive dealership performance
https://www.cbtnews.com/why-expectations-drive-dealership-performance/
Publish Date: 2026-05-05 05:03:00
Source Domain: www.cbtnews.com
Chris Saraceno, vice president of Kelly Automotive Group, breaks down the habits, hires, and standards that drive performance across a multi-store dealer group.
The car business is changing fast. Margins are tighter. AI is reshaping how dealerships hire, sell, and service customers. New franchises are struggling to hold market share. But what separates the dealerships that win is not the technology they adopt or the franchise they carry. It is the standards they set.
On this episode of Training Camp, host Adam Marburger talks with Chris Saraceno, Vice President of Kelly Automotive Group and author of the bestselling book Theory of Five, about hiring for the long game, adopting AI without losing the human element, and why setting hard expectations from day one is the most important thing a leader can do.
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Challenges dealers face today
Car dealers are navigating a difficult market. Saraceno says margin compression is hitting hard. Franchises that were profitable two years ago are feeling the squeeze. He says the trend is widespread, although some brands are feeling it more than others.
Rising floor plan costs are making it worse, he says. Dealers are paying to hold inventory that is not moving. Meanwhile, manufacturers keep pushing production. The math, Saraceno says, is not working in the dealer’s favor. Dealers need to stay in good standing with their brand partners, he says, but they cannot afford to absorb inventory they cannot sell.
One thing that has gotten easier for dealers over time is collections, Saraceno says. Before e-contracting, a deal could sit unfunded for days.
Saraceno recalled a lesson from his mentor, Robert Kelly, who passed away recently at 91. While running his first store in the early 1990s, Saraceno was celebrating his sales numbers when Kelly reminded him that collecting…
