The secrets behind private-party used car sourcing, Q1 buy/sell activity hits decade low, AI chaos derails car buying

Hey everyone. Just dropped a new episode of the CDG Podcast with Ben Faricy, President at The Faricy Boys.

We talk scaling in Southern Colorado, stepping back so his GMs can lead, and how a coach helped him ditch bad habits.

No fluff—just real talk on growth, trust, and getting out of your own way.

Live now on YouTube, Spotify, and Apple.

— CDG

Welcome to the Daily Dealer, a concise rundown of the most important automotive industry headlines that matter to car dealers, automakers, and industry insiders.

As dealership profits slide, finance and insurance is bucking the trend:

In Q1, the average publicly owned auto dealership earned $2,505 F&I gross profit per vehicle retailed, nearly a record high.

F&I is now carrying more weight than ever…

And it may be the difference between a solid quarter and a soft one.

(Data source: SEC via Haig Partners analysis)

And as Michael pointed out, there’s a specific combo at play here…

1. The most overlooked source of high-gross used car inventory today

David Long of Hansel Auto Group is building high-gross used car inventory without touching the auction.

His play? Skip automotive veterans and recruit high-energy baristas—people with zero car experience but natural people skills. After just two weeks of training, they’re calling private-party sellers and closing deals.

One buy center he advises bought 106 cars last month, generating $650K in gross with no marketing spend.

Big picture: While others are chasing overpriced auction inventory, Long’s team is quietly winning off-market, one follow-up at a time.

(Go deeper: 4 min. read)

Want insider knowledge on the most up to date trends in auto retail?

The Haig Report® is auto retail's longest-published and most-trusted quarterly report tracking trends and their impact on dealership values. Since 2014, this report has delivered analysis on dealership performance, market trends, and franchise valuations—offering a clear view of opportunities and challenges in automotive retail.

Join the leaders in the industry who rely on the Haig Report® for:

• Exclusive insights into dealership values and valuation trends

• Franchise insights and outlooks on brand desirability

• Market trends to help you make informed business decisions

• The only report to publish blue sky values every quarter.

Looking to grow your portfolio or explore dealership investments? Join our exclusive buyer and investor database—visit haigpartners.com/buyerdatabase.

2. Q1 marks slowest quarter for dealership buy/sell activity in a decade

Dealership buy/sell activity just hit a 10-year low—only 68 rooftops changed hands in Q1, down 57% YoY.

But it’s not for lack of interest.

Buyers are circling, valuations are stable, and profits are still strong—yet many are pressing pause until the political dust settles.

Bottom line: Even public groups pulled back hard, slashing acquisition spend by 91%. And with big deals already in the pipeline, expect a sharp rebound once the outlook clears.

(Go deeper: 4 min. read)

Missed yesterday’s episode of Daily Dealer Live?

The Car Buying Episode

This episode is brought to you by: Podium

Featuring:

• Tom Goodwin, Author/Speaker

• Alan Meyer, Tesla Enthusiast

• Anna Del Villar, Editorial Lead, Car Dealership Guy

3. Automaker consultant Tom Goodwin exposes chaos in the car buying process

Automaker consultant Tom Goodwin went undercover for a major OEM to audit the car-buying process.

The result? One simple email triggered six responses in two hours—most of them automated, none of them helpful.

Which is why he says the process has become so tech-heavy that it’s losing the human touch that sells cars. AI has its place (think service updates or parts requests), but when it comes to sales, nothing beats a real conversation.

(Go deeper: 3 min. read)

Thanks for reading everyone.

— CDG

Want to advertise with CDG? Click here.

Want to be considered as a guest on the CDG podcast? Right this way.

Want to pitch a story for the newsletter? Share it here.