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 Marcello Sciarrino, Co-Owner of Island Auto Group.
Together, Sciarrino and host Sam D’Arc unpack how family-owned dealerships can stand out against national groups, why transparency matters now more than ever, and the biggest fixed ops opportunities in today’s market.
The King of Staten Island: Real strategies to win against deceptive pricing, stair-steps, and Amazon
Transparent pricing without games separates family-owned dealers from the competition.
Island Auto Group refuses to participate in deceptive advertising tactics that plague the used car market, even when competitors dominate search results with misleading prices.
"You can do a search right now and go online at, I'd say 90% of the dealers, and they're all advertising…with a trade-in, must have $2,000 down or must buy a product, some sort of product to get that price. That's not the way to treat your customers. It's dishonest."
The group's website displays the actual price customers will pay, no hidden fees, no mandatory products, and no bait-and-switch tactics, treating transparency as a competitive advantage rather than a weakness.
Fixed ops investment beats acquisition fever when the market normalizes.
While public groups paid record multiples during COVID, Island Auto Group is spending $30 million to add roughly 70 service bays and renovate facilities across its existing footprint.
"A lot of dealer groups expanded and, we think, paid record prices that a lot of them are kind of scratching their heads now and going, 'Wow, I paid that much money for this store.' Because now business is normalized. So, we kind of took the wait-and-see approach."
Service retention represents the most reliable revenue stream when new car sales soften, and facilities capable of handling volume without multi-week wait times are now the priority.
Lifetime engine warranties drive retention and create natural upsell opportunities.
Every new and used car sold by Island Auto Group includes a free lifetime engine warranty, giving customers a reason to return and creating a foundation for F&I penetration.
"On every single new and used car that we retail, we give a lifetime warranty on the engine. Every single car... We do it because we believe in the products that we sell. And we're very confident that when we sell you a used car, it should last you a lifetime."
The reinsured product requires customers to maintain service records, naturally bringing them back into the service lane and enabling advisors to offer comprehensive coverage upgrades at better economics.
Work-life balance is no longer optional for attracting younger employees.
Island Auto Group closed on Sundays during COVID and never reopened, while shifting to five-day work weeks for most sales roles and closing at 7 p.m. instead of 9 p.m.
"Years ago, I ran the sales desk for Brad Benson Hyundai. We were closed on Sundays and we sold 700 Hyundai's a month and the store across the river from us was open on Sunday and he sold 300 cars a month. So to me that's all nonsense."
The shift reflects market reality rather than preference. Younger employees prioritize culture and flexibility, and stores can maintain volume with engaged teams working fewer hours than burned-out staff grinding through seven-day workweeks.
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Brokers exploit stair-step programs and create unfair advantages in metro markets.
Brokers operate with minimal regulation, buying cars at triple-net from dealers outside the market and reselling them while pushing service responsibility back to franchised stores.
"Brokers have this gray area and something's got to be done about it. It's a problem. And with all the compliance that we have to go through, a car dealer is probably the most overregulated business I've ever heard of..."
The solution requires OEM enforcement similar to luxury brands that restrict out-of-market sales, but manufacturers turn a blind eye while legitimate dealers navigate heavy compliance costs and facility investment requirements.
Most stores lack strong operators, not better locations or brands.
Island Auto Group's experience expanding to Miami revealed that geographic growth without the right leadership creates more problems than opportunities.
"Keep in mind, we went from two stores to 12 stores in like two and a half, three years. And I think now that we look back, maybe we didn't have a good enough strategy... The gentleman who bought it was in that market like we are in Staten Island. He had an operator and they turned the store around."
Successful dealers focus on their core markets where they can recruit, train, and retain strong general managers rather than chasing deals in unfamiliar territories without leadership infrastructure.
Toyota's disciplined approach to inventory and dealer relationships sets the standard.
Island Auto Group is building a $15 million Toyota facility because the brand maintains production discipline, treats dealers with respect, and never forces unwanted inventory.
"You find one Toyota dealer that's turned down one singular car and tell them to call me and I'll take them…They're just smarter and they treat their dealers with respect, with decency. Just an incredible manufacturer, somebody we're proud to be a partner with."
Other manufacturers promised COVID-era discipline but quickly returned to stair-step programs and excess production, creating the same inventory problems that plagued the industry before the pandemic.
The path from porter to partner still exists, but conditions have changed.
Starting as an unexpected car salesman and eventually buying into a Jeep store by mortgaging his house, the traditional dealer career path faces new obstacles from consolidation and rising valuations.
"I think it's gotten more difficult you know with the public money that's come into the space and the Carvanas of the world but it's become difficult. You can't buy a dealership for a million or $2 million, which I know sounds insane. The numbers now are 10, 20, 30, $40 million."
While the opportunity hasn't disappeared entirely, new dealers now face significantly higher barriers to entry and need to target less competitive franchises like Nissan to gain a foothold.
Post-COVID employees need process and culture, not yelling and intimidation.
Returning to fundamentals means teaching repeatable daily routines while building environments where people want to win together, not fear making mistakes.
"When I was a general manager, I did the same things every single day. You know, I sat down and did my morning meeting. I sat down and checked my website. I sat down and went through my leads... When you tell someone to do a process and they can't handle it, your job is to figure out why. Not to tell them they suck."
The generation entering dealerships today cares as much about atmosphere and leadership as compensation, requiring managers to coach and develop rather than intimidate and berate.
Service experience must rival other industries through modern communication tools.
Island Auto Group eliminated cashier windows, moved service advisors into open lanes, and implemented electronic MPIs with photos and videos to justify recommended work.
"We have no cashiers in any of our stores. If you go to our stores and you want to pay a bill, you pay that bill either on your phone or with your service advisor... All of our service advisors are in like a lane. We don't have offices. We believe in like that bank model. It should be out and open."
The approach removes the adversarial feeling of explaining repairs through a window while giving customers visual proof of needed service, making it easier to justify dealership pricing versus independent shops.
