As the auto market normalizes post-pandemic and years of disruption, Todd Caputo, president of Todd Caputo Consulting, urges dealers to tighten their operations, leverage AI, and strengthen leadership accountability on today’s episode of CBT Now.
According to Caputo, it’s time for dealers to “get back to the basics.” To achieve this, he advises every dealership to begin with a thorough operational shift, including mystery shopping sales and service departments and verifying website links, phone numbers, and lead-handling processes. Too many dealerships assume their systems are working as intended when, in reality, basic functions often fail due to oversight.
“No two days are ever, ever the same.. I think the auto industry does a lot of good… but most importantly, dealers do a lot for their communities.”
Beyond process reviews, Caputo encourages leaders to revisit vendor contracts and renegotiate for better ROI, especially as dealers head into 2026 budgeting. He also stresses the importance of reviewing F&I menus, product cancellation rates, and lender relationships to identify profit leaks and growth opportunities.
While operational discipline is key, Caputo sees AI as a powerful efficiency tool that can streamline audits, automate reporting, and improve follow-through. “AI, in my opinion, gives [dealers] superpowers,” he said, adding that tools like AutoAcquire AI help retailers identify potential trade-ins through customer registration data.
Caputo also points to service-lane vehicle acquisition as a profitable strategy amid ongoing used-car shortages, saying it’s more cost-effective than competing at auction.
On the workforce side, he emphasizes the need to retain and promote internal talent while partnering with local schools to develop the next generation of techs. For instance, Caputo attended an event hosted by the Charlotte Auto Dealers Association with some local trade schools, where students could tour service departments and meet technicians. These initiatives expose young talent to automotive careers early and help dealerships build a pipeline of future technicians.
Ultimately, Caputo believes leadership will determine who thrives in 2026. “Fear mediocrity,” he said, noting that the dealers who hold their teams accountable, control expenses, and use AI strategically will come out ahead when the market gets tougher.
