As affordability tightens and regulatory pressure mounts, independent dealers are navigating a changing automotive market. In today’s episode of Inside Automotive, Don Griffin, president of the National Independent Automobile Dealers Association (NIADA) and CEO and founder of CarHop, discusses where independent dealers stand today and what the association is doing to support its 13,000 members across the country.
"Getting more active in not only NIADA, but in state associations, that's where it really helps our industry advocate for itself."
Griffin brings nearly 30 years of experience in the buy-here-pay-here segment through his work at CarHop. As president of the NIADA, his top priorities include strengthening advocacy efforts and expanding educational opportunities in collaboration with state associations. These initiatives aim to help independent dealers adapt to the challenges ahead.
Inventory sourcing remains a top concern for independent dealers. The supply of used vehicles remains limited, a trend that began during the COVID-19 pandemic. Dealers rely on auctions, wholesalers, trade-ins, and direct consumer purchases to stock their lots. Although franchise dealers also utilize these channels, limited availability has pushed wholesale prices higher, making it difficult for independents to stay competitive.
Affordability is becoming increasingly tight for consumers and dealers alike. With inflation driving up the cost of basic goods, buy-here-pay-here customers are under growing financial stress. This has a direct impact on dealerships, which are also dealing with rising costs for vehicles and parts. For dealers who offer extended warranties—such as CarHop’s 18-month coverage—inflation in parts pricing adds another layer of difficulty.
Dealers must also navigate a patchwork of federal and state regulations. Many small operators lack the necessary resources to manage compliance effectively without external support. NIADA has responded by hiring a vice president of policy based in Washington, D.C., to coordinate lobbying efforts and organize the association’s annual policy conference, which brings members to Capitol Hill to meet with lawmakers.
Tariffs on new vehicles have minimal impact on most independent dealers, but higher parts costs are a genuine concern. The used EV tax credit, set to expire in September, is expected to have limited influence on the independent market, where used EV sales remain low.
Griffin calls on NIADA members to increase their involvement at both the national and state levels. He says dealer engagement is essential to shaping future policy and ensuring the long-term health of the independent retail auto sector.
