Ego can be one of the biggest obstacles to making the right strategic moves for growth, especially when it comes to buy-sell opportunities, said Matt Bowers, president of Matt Bowers Auto Group.
Lesson learned: The retail veteran said he has learned this firsthand after focusing too heavily on acquisitions in a single market, taking on unnecessary risk, as he explained to Daily Dealer Live hosts Sam D’Arc and Yossi Levi.
“You sort of run out of people over time, depending on the city that you're in. And it limits…your overall possibilities later,” said Bowers. “What I should have done is…, stores where I'm at in a platform setting, and then maybe gone to do three or four other platforms as time went on…, some will identify themselves as being easier to run than others, and then you sort of focus on those.”
Going for bigger wins: A dealer group can dominate a market with several rooftops, but when self-financing an acquisition, every dealer’s definition of success is different, Bowers explained.
“I'm looking for stores that make an impact to me financially, to the people around me,” he said. “And I'm looking to not be involved with stuff that's a pain in my ass, quite frankly, even if it's in my hometown.”
To that end, Bowers has shifted his strategy from regional dominance to geographic diversification across multiple platforms. He currently has three Asset Purchase Agreements (APAs) in three different states.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
Betting against the odds: Bowers is also investing in cyclical brands other operators are shying away from. He is buying two Stellantis stores and has offers on two more Stellantis rooftops that he believes are viable.
“Overall, I think there's a lot of positive indications out of them—to be a car dealer, like for the next decade,” said Bowers. “I think they're going to bring back models that are going to add maybe 20 to 30% to their overall volume.”
Staying competitive: Carvana’s recent acquisition of a Stellantis $STLA ( ▼ 1.99% ) is a strong indicator of the viability Chrysler-Dodge-Jeep-Ram rooftops have, Bowers noted.
“They're trying to do major metros with towns with big populations, where they can be the most effective with the advantages that they currently have,” he said.
Still, OEM framework agreements could pose hurdles for Carvana’s brick-and-mortar ambitions—along with the challenge of going up against entrenched traditional dealers, Bowers added.
Bottom line: Whatever Carvana’s play is, Bowers is watching closely. “I'm going to take what they do well and I'm going to try to rip it off and implement it. And then I'm going to take what they don't do well and what they can't do well, and I'm going to live right there,” he said.
A quick word from our partner
Want insider knowledge on today’s auto retail trends?
The Haig Report® is the industry’s longest-published, most-trusted quarterly resource on dealership values. Since 2014, it has delivered insights on performance, market shifts, and franchise desirability—helping leaders spot opportunities and risks.
Each edition includes exclusive insights on valuation trends, brand outlooks, and blue sky values.
Looking to grow your portfolio or explore investments? Join our exclusive buyer and investor database at haigpartners.com/buyerdatabase.
