Zeigler Auto buys Ferrari, WE Auto's ruthless inventory strategy, Matt Bowers warns against sale-leasebacks

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Welcome to The Weekly, your go-to roundup of the top five auto industry headlines of the week. Let’s dive in.

1. Tariffs, economy drive a wedge in dealer sentiment for Q2 – survey

Cox Automotive’s Dealer Sentiment Index for Q2 reveals mixed feelings about the current market.

Driving the news: Franchised dealers are still feeling the tailwind of strong new-car supply and rising foot traffic. But independents are growing more cautious. With tighter used inventory, softer margins, and rising pressure from tariffs.

Profitability and foot traffic are up, but short-term expectations are falling fast.

• 51% of dealers cited the economy as their top concern.

• Another 42% pointed to interest rates.

• And 33% of dealers said tariffs on vehicles and parts are holding back business.

Bottom line: The back half of 2025 is shaping up to be a stress test. Dealers with the right mix of inventory, flexibility, and cost control will stay ahead. The rest are at risk of falling behind fast.

(Go deeper: 3 min. read)

2. Midwest mega-dealer Aaron Zeigler explains latest Ferrari acquisition

Zeigler Auto Group just made its boldest move yet by acquiring Ferrari Lake Forest in a rare ultra-luxury expansion.

Why it matters: Ferrari operates on a completely different model than traditional dealerships—low volume, high margin, and multi-year waitlists. Only ~40 Ferrari stores exist in the U.S., and demand far exceeds supply.

It’s the most money dealer principal Aaron Zeigler has ever paid for a single rooftop. But he’s betting big on synergy, with customers already crossing over from his other stores.

Bottom line: Zeigler’s Ferrari play is a calculated bet on scarcity, margin, and lifetime customer value.

(Go deeper: 4 min. read)

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3. The 65-day rule that keeps dead weight off this dealer’s lot

At WE Auto, every used car has a hard deadline—65 days or it’s written off. No exceptions.

Here’s how it works: Once a unit hits 65 days, it gets written off—100% of the inventory amount. Any proceeds from a future sale, retail or wholesale, don’t go back to the store. They’re recorded in accounting on the “13th month” statement. The store then realizes a full write-down.

That discipline starts at the buy. Managers know the clock starts the moment a car hits the lot, which has led the group to tighten sourcing through Q2 while watching for better timing this summer.

Bottom line: By enforcing strict cutoffs and removing emotion from the process, WE Auto stays ready to move when the market turns—and avoids getting stuck when it doesn’t.

(Go deeper: 2 min. read)

4. Louisiana dealer Matt Bowers warns against sale-leasebacks: ‘There is a misalignment’

Matt Bowers has a warning for dealers considering sale-leasebacks: “Think twice before signing.”

Bowers says one deal left him stuck for 8 years in an undersized facility—servicing triple the volume it was built for, with no room to expand and no exit until the lease ends.

His bigger concern? New dealers using sale-leasebacks to fund growth with over-leveraged terms. Some firms offer above-market loans, which can lock dealers into unsustainable rents—especially if the store underperforms.

Not everyone agrees. Some argue the problem isn’t the model, but poor execution. Still, Bowers prefers dealer-to-dealer arrangements, where incentives are aligned and landlords understand the business.

Bottom line: For Bowers, the real question is whether your partners will help you through a downturn—or leave you stuck in a deal you can’t unwind.

(Go deeper: 4 min. read)

Missed yesterday’s episode of Daily Dealer Live?

Senate strikes down CA EV rule, Volvo gets first dibs on new google tech, and more

Featured guests:

• Eric Barbosa, VP of Variable Ops at Cavender Auto Group

• Brett Sutherlin, Owner of Sutherlin Automotive Group

• Ned Hennessey, Vice President Dealership Investments at SURMOUNT

5. President Trump to decide fate of California emission rules after Senate vote

The Senate just voted to block California’s gas-car ban—now the final call goes to President Trump.

Why it matters: If the resolution takes effect, it would strip states of the power to set their own EV targets and re-center control at the federal level. That could slow the rollout of electric models, extend the lifecycle of ICE vehicles, and shift how automakers and dealers plan for inventory, compliance, and future investment.

The 51–44 vote repeals California’s EPA waiver and is drawing support from dealers and lawmakers calling for a more realistic approach.

“California needs a durable, market-aligned electric vehicle policy,” said Brian Maas of the California New Car Dealers Association.

But this isn’t happening in a vacuum: Congress is moving to cut EV tax credits, and the EPA is signaling that stop-start tech could be next on the chopping block.

(Go deeper: 3 min. read)

Three opportunities hitting the CDG Job Board right now:

• Ron Marhofer Auto Family: Auto Dealership Paycom Specialist (Ohio)

• Motorcars of Lansing: Finance Manager (Michigan)

• HoneyCar: Controller (Virginia)

Looking to hire? Add your roles today—it’s 100% free.

• Gee Automotive expands with Orange County Honda dealership.

• America’s aging cars are fueling a fixed ops renaissance.

• Volvo becomes lead development partner for Google’s Android automotive software.

• Subaru is raising prices across multiple models starting in June.

• Ex-dealer group VP is being sued for $216M in unprecedented FTC case.

That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

Thanks for reading. Hit reply and let me know if you found The Weekly valuable or have any feedback. I’ll see you next weekend.

— CDG

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