As dealers navigate ongoing challenges tied to OEM incentives and online pricing transparency, Andy Wright, managing partner at Vinart Dealerships, is calling for greater collaboration, objective-based programs, and proactive industry standards to protect dealer profitability and rebuild consumer trust on today’s episode of Inside Automotive.
According to Wright, Vinart finished 2025 strong overall, with first-quarter and mid-year performance carrying the year despite a Q4 slowdown. He argues, however, that he is optimistic about 2026, noting the convergence of trends that could benefit OEMs, franchise dealers, consumers, and manufacturers, creating mutual gains for all stakeholders.
Stair-step Program
Wright notes that regarding the stair-step program, it boils down to how dealers pursue solutions that are a “win-win” for dealers and consumers alike. He describes the program as unpredictable and difficult to manage, with dealers often unsure of where they need to be by month’s end. This further complicates planning for marketing, inventory, and sales incentives.
“These programs continue to decimate dealer profitability and compromise the customer experience,” Wright said. “They’re not good for short, medium, or long-term brand building.”
His proposed solution, however, focuses on collaboration. At the OEM level, he suggests consulting the dealer council to establish objectives and budgets. He notes that dealers should be included in these conversations to provide insights from the front lines, all within the framework of trust, transparency, and collaboration.
Wright also points out that some OEMS have opted out of the stair-step program altogether, like Toyota, Honda, and Subaru. But their processes have delivered steady growth, robust customer satisfaction, and profitable operations.
Pricing transparency
Moreover, Wright raised concerns regarding conditional pricing on third-party listing platforms like Cars.com, Autotrader, and CarGurus. He notes that dealers may advertise incentivized pricing on these sites, but customers often discover the advertised price does not reflect the actual cost at the dealership.
Although this creates confusion and erodes consumer trust, he argues the industry is capable of self-regulation and does not need government intervention, but that dealers and online platforms must agree on standards and enforce them proactively.
Direct-to-consumers
Recent news that Scout Motors received a dealer license in Colorado illustrates the growing tension between direct-to-consumer sales and the franchise model. Yet, Wright called the situation “unfortunate,” and stressed that the franchise model remains the most effective delivery system for retail automotive.
“The bottom line is that the franchise model has been the single best delivery mechanism for retail automotive in the history of the world and the history of mankind,” he said.
Wright also noted legal concerns under the affiliation rule. Since Scout Motors already operates within a franchise network, he believes they are potentially violating the rule. Similarly, he claimed Honda’s Afeela may be in violation as well.
Meanwhile, NADA, he said, is gearing up to defend franchise dealers, though he acknowledged that dealers are often overlooked as the key solution for delivering new products to consumers.
“Ultimately, we’re in this together,” Wright said. “If we can find solutions that work for everyone, we can achieve our mutual goals and strengthen the industry for the long term.”
