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 Kirk Rogers, wholesale manager at McCarthy Auto Group.
He explains why wholesale should be a strategic lever—not a last-resort escape hatch, how efficient transport unlocks massive savings, and the process McCarthy uses to eliminate the automotive retails biggest logistics bottleneck.
Selling over 110% of MMR is achievable with the right approach.
Rogers holds himself accountable to consistently exceeding market benchmarks rather than simply meeting them.
"For the year I'm over well over 110%. I have a lot of sales where I'm in the 115% of MMR range."
This performance comes from thorough research, proper vehicle preparation, and understanding exactly what each car is worth before it enters the lane.
Strategic lane arrangement keeps buyers engaged and maximizes bids.
Rather than placing all premium inventory at the start of an auction run, Rogers intentionally mixes high- and mid-quality vehicles throughout.
"I like to keep everybody engaged. So I have the most buyers in lane at one time and the most buyers engaged online."
This ensures diverse buyers stay active throughout the sale, preventing the common problem of losing participation as quality declines.
Proper detailing adds $300-500 per vehicle at auction.
Any car sent to auction without quality detail work signals a lack of effort, and buyers will immediately dock the price accordingly.
"Just detailing a car could get you $300 more a car. Simply just doing a good job on the detail part of it."
Good detailing creates the best first impression and may save smaller lot buyers from having to pay for detailing themselves.
Internal inventory swaps preserve gross and recon investments.
McCarthy uses a 75-day write-down policy to trigger transfers of aging vehicles between stores in the group.
"We'd like to trade within our own group...keep the recon, keep all the money inside the auto group instead of sending to the auction losing all that recon money to go buy another car to replace it."
Brand-specific vehicles like Toyota Highlanders or 4Runners get moved to Toyota stores before ever being considered for outside auction.
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Physical auctions still deliver superior results for true wholesale inventory.
While late-model three-year-old cars with warranties perform well online, Rogers believes older wholesale units require in-person inspection.
"The true wholesales, the 6 to 11 year old cars, you know, they do really well at physical auctions with physical buyers. They want to see the car, smell the car, drive the car, and make the best decision they can make."
Buyers without fixed ops departments to cover mistakes need that hands-on evaluation.
Transportation costs significantly impact wholesale profitability.
Using auction platforms' built-in transportation services can cost $300-500 more per vehicle than alternatives.
"If you're willing to get them up to $500 bucks a car because you can click it and that's easy for you to do. You're leaving a lot of money on the table."
When shipping 1,000-2,000 cars annually, those savings compound dramatically, often coming straight out of front-end gross.
A 90% sell-through rate attracts more buyers over time.
The industry average sell rate at auctions hovers around 55%, meaning only half the cars typically move.
"My goal is to sell, you know, 80%, 90%, or 100% if I can, but 90% or better. And by being a good seller like that, you'll attract more buyers."
Buyers gravitate toward sellers who price vehicles accurately because they know their time won't be wasted on unrealistic reserves.
Service lane acquisitions can generate 40-50 cars monthly.
Some McCarthy stores excel at buying vehicles directly from their own service departments, creating a steady acquisition channel.
"I have two stores that do 40, sometimes 50 cars a month, which is amazing."
This strategy focuses on maximizing off-street purchases rather than relying solely on traditional auction buying or trade-ins.
Taking personal ownership of every detail drives departmental success.
Rogers applies the same level of accountability to transportation, detailing, and reconditioning timelines across all nine locations.
"Everything I do, I take it personally. You know, I take ownership of everything I do."
When a vehicle doesn't arrive on time or detail quality slips, he addresses it immediately, maintaining standards that have contributed to consistent above-market performance.
Wholesale should generate profit, not just break even.
While McCarthy's official policy targets break-even on wholesale operations, Rogers maintains a different personal standard for his department.
"What's the point of going to work if you're not going to make a profit?"
When wholesaling 10-15% of inventory, finishing the month in the green signals you've done the job right, and anything less requires reevaluating the appraisal process.
