Welcome to another edition of the Car Dealership Guy Podcast Recap newsletter—the key lessons from top operators, founders, and execs shaping the future of auto retail.
Today’s guest is Scott Simons, Dealer Principal of Simons Chevrolet GMC.
He breaks down the leap from corporate leadership to dealership ownership— the money discipline, personal brand, and network it actually takes.
Saving money matters more than making it when pursuing dealership ownership.
Scott's father worked five jobs simultaneously and never earned more than $32,000 from any single one, but he saved relentlessly and taught his son to do the same.
"One thing that the Builtmore group told me, and Sam, this will kind of surprise you, it did me, they said, 'Well, we need you to send us over a $7,500 retainer.' And I said, 'Okay, where do I wire the money to?' And I wired the money as soon as I hung up as a retainer. And they said, 'Scott, you would be surprised how many people do not have $7,500.'"
While many general managers inflate their lifestyle with every raise, Scott banked the difference, which is the only reason he could write a $2.8 million check to fund his acquisition without taking on partners.
Targeting acquisitions under $10 million opens doors other buyers ignore.
Scott deliberately sought a total transaction—real estate and blue sky combined—for $10 million or less, which positioned him as a serious buyer for smaller stores others overlook.
"My goal, Sam, was 10 million and less for a first store. That's real estate and everything."
He paid $2.5 million in blue sky and $3.9 million for real estate, then contributed roughly $2.8 million in cash to cover the down payment and operating capital, proving smaller deals are accessible for disciplined operators.
OEM approval is earned years before you ever apply.
Scott asked manufacturer reps early in his career what it would take to become a dealer, and they gave him a roadmap: high market penetration, exceptional CSI, and strong profitability.
"One, you better have very high market penetration. You better sell way more than what they expect you to sell. So, get your state average. Find out where you're supposed to be. And that number better be way north of 100% sales effective. If you're not sales effective, good luck. Two, you better have very high CSI."
His Honda and Subaru stores reached 260% and 270% market penetration, respectively, won 24 consecutive President's Awards, and maintained 6–8% net-to-sales, which made GM Financial and GM's approval nearly automatic.
Buying a dealership means starting over, even in your 50s.
Scott moved into a five-bedroom Airbnb with three team members, wakes at 4:30 a.m., and rides to the store in shifts at 6:30 or 7:30 a.m.
"Sam, more than a couple times over this last month, I've said, 'What in the hell was I thinking? What was I thinking? What am I doing?' You know, I I I could be sitting on a beach right now."
He serves as both dealer principal and acting GM, reoriented his office to face the showroom instead of away from it, and tries to meet every customer personally—a reality check for anyone who thinks ownership is the finish line.
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Operating capital requirements are higher than projections suggest.
Scott needed roughly $600,000 in operating capital to feel comfortable, but cash flow volatility in the first month kept him awake at 2 a.m. checking balances.
"I look at my this bank account. I look at contracts in transit. I look at it two or three times a day and I sit there and I'm like, can I operate with this low of cash? And they're like, 'Scott, you're fine. You're fine.' I'm like…I pop up at 2 a.m. thinking where like this cash flow goes up and down so much."
He also maintains a personal account ready to sweep funds into the dealership if needed, knowing that being undercapitalized is how new dealers fail.
Most dealership challenges stem from misrepresented staffing and systems.
Scott was told he had five technicians and five salespeople, but discovered he really had one experienced tech and one seasoned salesperson when he took over.
"I was told that I had five technicians and Sam really I had one. I was told I had five salespeople. I really had one. The other four were like a week or two old in the business, brand new."
He also couldn't sell cars for two days due to licensing delays and couldn't perform state inspections for two weeks, proving that every new dealer should expect the unexpected, regardless of preparation.
Vendor pricing changes dramatically for single-point dealers.
Scott tried to keep the previous dealer's DMS contract to simplify the transition, but was immediately quoted a $15,000 integration fee.
"The first bill I got from them, the first quote I got, they hit me with a $15,000 integration fee. And I sent back and I said, 'I'm a new dealer, but come on now. I've been doing this 30 years. I'm not dumb. I mean, what are we doing here? I'm going to take the same system. You're going to just put it into my system and I'll take over his contract for the next year because it'll give me a year to check everything out and decide what I want to do.'"
The experience taught him that vendors treat single points differently than large groups, and that negotiating power disappears without scale.
Personal branding and industry relationships provide lifelines during crises.
When Scott ran out of inventory in his first month, he posted on LinkedIn and Facebook asking for help, and multiple dealers stepped up immediately.
"I did do some Facebook posts the power of social media. I did do some Facebook posts and some dealers did help me through just LinkedIn. I did a post new dealer who would help me and then GM gave me help and GMC but they're, when they help, those are 45 to 60 days out."
He also called Ed Roberts for advice on recruiting technicians from competitors, proving that decades of giving back to the industry creates a support network that becomes invaluable when starting over.
Offering partnership paths attracts operators willing to sacrifice everything.
Scott brought three people with him, all of whom want to become GMs and eventual partners, and told them exactly what it takes.
"Loyalty got you here. Your performance will get you there. Your loyalty alone is not going to make you a general manager from me. I have very high expectations and I expect more out of them than anybody."
He shares his financials with the entire team, doesn't hide startup costs or attorney fees, and tells aspiring dealers to call him before making the leap, knowing that the path he offers is the same one he waited 30 years to walk himself.
First-month results prove the power of experienced operators and fresh energy.
Despite lacking banks, dealer licenses, and experienced staff for the first two weeks, Scott's team sold nearly as many cars in a single week as the previous dealer sold in an entire month.
"We sold almost as many cars in a week without hardly any banks and without any leads. We almost sold as many cars as a week than the previous dealer did in a month."
The store is now showing a profit in its first full month, validating Scott's belief that strong processes and motivated teams matter more than perfect conditions.
