Keffer Auto Group continues to stand firm on its entrepreneurial approach to retail, even amid the ups and downs of the industry.
It’s a 50-year business model quite different from most traditional auto groups in that it’s centered on the individual operator, as Keffer Auto Group CEO Jim Keffer explained to Daily Dealer Live hosts Sam D’Arc and Yossi Levy.
Operator centered: “In the (retail) business model, you either look for operational efficiency at a corporate level or you look for the very best operators who, oftentimes, want to have entrepreneurial autonomy to be able to make a lot of the decisions that make a difference in their stores. And that's one of the things that we have always provided.”
Much like traditional dealer groups, Keffer’s operators still must adhere to certain business practices—but the silo model allows Keffer Auto Group’s general managers to control how they manage their retail operations.
Staking their claim: Every single GM in the North Carolina-based Keffer dealer group has an equity stake—operating with full P&L control over inventory, advertising, and people rather than being required to follow corporate directives.
It’s all about paying-it-forward—rooted in an opportunity that his father got in 1974 to do a 10-year buyout, explained Keffer.
Measuring success: To date, the approach has enabled Keffer Auto Group to complete 33 total GM-to-owner buyouts, fostering generational wealth while maintaining only a "handful" of failures over 40 years.
Starting point: One of the key elements of Keffer Auto Group’s entrepreneurial business model is its approach to developing its operators, which includes pushing P&L and balance sheet understanding "all the way down all rungs of the ladder."
“We get our sales managers and our service and parts managers involved in 20 groups that are led by moderators, so that they are looking at every metric,” he said.
Keffer also seeks out opportunities beyond the auto group—identifying potential operators, possible acquisitions, and brands that fit their business model, with a major focus on used cars right now
That commitment to finding the right operator recently took them to Minnesota, where they acquired Soda Chevrolet in Northfield. "A guy named Josh Heron and his wife, who did not want to move away from Minnesota," Keffer explained when asked what drew them hundreds of miles from their North Carolina base.
“It's not about the brand or the land, it's about the man or the woman,” said Keffer, an adage he picked up from his dad.
Pick your lane: The CEO, however, was quick to note that Keffer Auto Group’s business model isn’t for everyone.
“I will go on record as saying that I don't recommend what we do. If your goal is to make the most money, do what the other guys do. But if your goal is improving lives…then…this is a good thing,” he explained.
A quick word from our partner
Here’s a question –
How much would your business change if you had one more employee who works 24/7, answering questions, driving sales conversations, and setting up test drives–even when your dealership is closed?
Most AI solutions only act as a copilot–and a human still has to approve and use the content they create.
But now with Podium’s AI BDC – AI can take over tasks to respond instantly to every incoming lead without direct supervision.
The best part?
With a seamless handoff to staff on the sales floor, customers will never know they were interacting with an AI to begin with.
Click here to try Podium's AI BDC today.
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.
