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 Royce Neubauer, CEO of Auto Hauler Exchange.
We dive into how dealers are losing thousands on slow logistics, reveals the shocking fraud statistics plaguing car shipping, and shares his philosophy on finding opportunities during market chaos.
Strategic partnerships are helping transportation companies weather challenges.
Despite a tumultuous period in the automotive industry, some logistics companies are outperforming market trends through diversified partnerships.
"We have some rail partners that we're working with. We've got some port partners that we're in the mix with as well. So the brand keeps expanding outside of just the initial dealership market that we launched in."
Building relationships across multiple segments of the transportation ecosystem provides stability when individual market segments face challenges.
Transportation demand is revealing broader economic pressures on dealers.
The logistics industry serves as an early indicator of dealer health, with transportation volume patterns reflecting underlying business challenges.
"When you're dealing with an economy that is a little bit chaotic, to put it lightly, if you have a product that is providing solutions for the industry as a whole, you're going to have opportunities in any economy."
Companies focused on solving fundamental industry problems can find growth opportunities even during economic uncertainty.
Dealer purchasing patterns are completely flipping between used and new vehicles.
The transportation industry is witnessing a dramatic reversal in just one quarter, with used car volume collapsing while new vehicle logistics surges.
"We had a huge surge, especially towards the end of Q1 when the tariff conversation was happening. Some of our top 20 dealers revenue sales-wise, the last quarter, they've kind of been in the bottom 50, bottom 100. So, they've definitely slowed down their buying trends."
Meanwhile, new vehicle transportation is picking up steam: "We have quite a few branded dealers where we're gonna be shipping the vehicles directly from the OEM to the dealership through our OEM partnerships—or some of the dealers can gain access to those vehicles and ship them themselves."
Every day in transit is eating into dealer profits.
Time has become money in a very literal sense for dealers, especially when margins are already compressed across the industry.
"From a dealership perspective, if I'm buying units from auction, my clock starts the day I pay and the day I purchase those units, I'm paying interest and the car's depreciating. And we know in the market we're in today, every dealer is making less per transaction."
The math is simple but brutal: interest keeps accruing, values keep dropping, and profit windows keep shrinking with each passing day a vehicle sits in transit.
Presented by:
1. DLRdmv – Dealers, are you still stuck using outdated interstate titling methods? DLR50 from DLRdmv modernizes out‑of‑state titling by providing 24/7 sales tax, title, and registration fees, pre‑populated state-specific forms, through an online platform that directly integrates with your DMS. CDG listeners get 30 days of free full-service access to DLR50 on unlimited out-of-state deals. Head over to DLRdmv.com/CDG, use code POD30 to claim your free month today.
2. ActivEngage - Not every lead is a Glengarry lead. If you know, you know... Those are the ones that matter. ActiveEngage brews them 24/7. Not bots. Not forms. Real human experts having real conversations. Uncovering intent. Surfacing urgency. Creating motivation. Now your team gets buyers, not just browsers. Want to start closing your online faster? Visit activengage.com/glengarry.
3. Auto Hauler Exchange - Ship Smarter. Pay Less. No Middlemen. Tired of brokers driving up costs and slowing you down? Auto Hauler Exchange puts YOU in control. Ship cars faster and cheaper with 5,500+ vetted carriers. Get cars delivered in just 4 days on average/ Transparent pricing, no hidden fees, and real-time tracking. Move cars smarter. Move cars faster. Learn more at autohaulerexchange.com.
Smart logistics are turning geography into a competitive edge.
Modern transportation solutions are completely rewriting the rules about where dealers can do business.
"One of our first dealers, they'd only bought and sold cars in about a six state radius of Wisconsin their entire existence. And within the first three months they started buying and selling cars in California, Texas, Florida."
A 75-year-old dealership expanded their operating territory more in three months than they had in three-quarters of a century, showing how logistics can transform traditional business models.
Logistics costs need to be viewed from a total profitability perspective.
Smart dealers are learning to look beyond just transportation costs to understand the real financial impact of logistics decisions.
"It's more than just the cost to move something from point A to point B. There are so many other factors involved that are going to impact the profitability of that product that you're moving. When you start to really look at and analyze it from a macro point of view, not just the micro, they're saving hundreds of thousands of dollars per year."
This holistic view includes factors like interest costs, depreciation, and opportunity costs that can dwarf the actual shipping expense.
Dealers are examining every cost center for waste.
With margin compression affecting the entire industry, dealers are being forced to scrutinize expenses they previously took for granted.
"When margin compression is happening in any industry, the first place to look is how do I save or how do I recapture wasteful spend? Growing that margin isn't going to happen overnight, but recapturing wasteful spend, you can turn that around in 30, 60, 90 days all day long."
This shift in mindset is driving dealers to evaluate every aspect of their operations, from logistics to technology investments.
Carrier fraud has reached alarming levels in vehicle transportation.
The logistics industry is facing a fraud epidemic that's forcing companies to reject one-third of all carrier applications.
"We actually reject about 33% of the carrier applications we get. Sometimes the carrier just didn't meet the insurance requirements. Or they have poor safety ratings, which is a major issue. But the biggest thing, out of that 33%, about 50% of them that are trying to enter their marketplace are fraud."
That means roughly 16% of all people trying to become vehicle carriers are fraudulent, creating serious security risks for dealers and their expensive inventory.
The "driver shortage" excuse is getting exposed by actual data.
While brokers consistently blame driver shortages for slow service, the numbers tell a different story.
"We're definitely in a driver shortage, but we've been told we're in a driver shortage for the last 20 years. For the last two years, our average time from when a vehicle is posted by one of our shippers to when it is picked up is about 24 hours. That number hasn't changed."
If there really was a crippling driver shortage, pickup times would be getting longer, not staying consistent. The real issue appears to be broker pricing strategies rather than actual driver availability.
Home delivery is becoming a necessity, not a nice-to-have.
Dealers are discovering that offering delivery isn't just about accommodating online sales—it's about winning customers in a brutal market.
"I think it's a service metric. When you're in a very, very tough economy and you're competing for every opportunity against the dealership down the street, if your service levels are higher and you're going the extra mile for that consumer, I'm probably gonna buy from you."
In today's market, superior service can be the deciding factor when customers are choosing between similar vehicles and prices.
