Why Dealers Should Be Maximizing Their Dollars Per Unit In Operations


Scot Eisenfelder, Chief Executive Officer and Executive Chairman of Affintiv Inc., explains how the auto industry is becoming more of a razor blade business than ever before and why dealers should be maximizing their dollars per unit in operations within their dealership.

Scot Eisenfelder, shares insight with CBT News on how the retail car industry has shifted it’s process and why the money that was once brought in by a dealerships service department is a different from what we know it to be. Historically, “most of a dealer’s service business came from warranty guarantees rather than from customer pay,” Eisenfelder explains, “it was naturally baked into the business”. What we are seeing now in the industry is a decline in warranties and an incline of importance generating around CP’s. Now, couple that adjustment with the fact that dealers are not seeing as much money off the sale of a car as they would have in the past. Both points, Scot explains, is ever the more of a reason why absorption now has a greater importance. Dealers need to start thinking about maximizing the dollars per unit in operation.