Photo of Lusso Motors & Roberts Auto Services dealer principals mid discussion about current state of auto market. Captured June 27, 2206
At the end of June, Empire State Warranty brought together some of our top dealer partners for the 2026 Diamond Dealer Event at The Sagamore Resort in Lake George, New York.
One of the highlights of the event was our Dealer 20 Session—a collaborative discussion designed to give dealers the opportunity to share real-world experiences, strategies, challenges, and ideas with other successful automotive professionals.
From artificial intelligence and inventory acquisition to technician recruitment, service operations, lending, and reputation management, the conversation covered nearly every area of dealership operations.
Below is a recap of many of the key topics and insights discussed in the room.
Artificial Intelligence in the Dealership
Artificial intelligence continues to become a competitive advantage across multiple dealership departments. Rather than viewing AI as simply a content creation tool, dealers shared practical ways they are incorporating it into everyday operations.
Some current AI use cases discussed included:
- Preparing inventory and vehicle information ahead of customer test drives.
- Identifying unusually named automotive parts during claims processing.
- Creating preliminary reconditioning estimates and service quotes.
- Producing targeted social media content for specific vehicles.
- Evaluating potential profitability on aging inventory after anticipated reconditioning expenses.
- Assessing auction vehicle condition and identifying potential arbitration opportunities.
As AI tools continue to evolve, dealerships willing to test and implement practical applications may find new opportunities to improve efficiency and decision-making.
Improving Vehicle Acquisition Strategies
Inventory acquisition generated several strong conversations throughout the Dealer 20 Session.
Dealers discussed improving the customer experience during street purchases by controlling the conversation from the initial inspection through the final appraisal. The group also explored ways to expand vehicle buying strategies to appeal to a broader customer demographic.
Additional topics included leveraging CARFAX buying data, managing reconditioning costs on aging inventory, and utilizing outsourced BDC solutions such as CarNow.
The overall takeaway was clear: successful acquisition strategies require dealers to closely understand their market, their ideal inventory, and the customer experience throughout the buying process.
Recruiting and Developing Automotive Technicians
One of the strongest discussions of the session focused on technician recruitment and development.
Rather than solely competing for experienced technicians, several dealers discussed the importance of building talent from within. This can include investing in young graduates entering the automotive industry and developing apprenticeship-style programs that create a clear career path.
One idea discussed was creating programs where technicians gradually earn ownership of their tools over time.
Competitive starting wages, strong benefits, clearly defined opportunities for advancement, and a positive work environment were all identified as important factors in attracting and retaining technicians.
Improving Dealership Service Operations
Service department efficiency was another major topic of conversation.
Dealers discussed assigning work based on individual technician strengths rather than focusing exclusively on distributing jobs equally. Maintaining a healthy parts pipeline and maximizing overall shop and facility utilization were also identified as key operational priorities.
The conversation even extended to facility design, including ways dealerships can optimize heating and cooling costs within service areas.
When hiring technicians, several dealers also emphasized interviewing multiple candidates to identify the strongest cultural and technical fit rather than simply filling an open position as quickly as possible.
Technician and Sales Compensation Structures
The group compared several different compensation structures being utilized across dealerships.
For technicians, the conversation included flat-rate compensation with retroactive bonus structures designed to reward higher levels of production.
Within sales departments, dealers compared salary-based and commission-based compensation models and discussed how different structures can impact performance, employee retention, and dealership culture.
There is no single compensation model that works for every dealership, but the discussion highlighted the importance of creating a structure that aligns employee incentives with the dealership’s long-term goals.
Marketing and AI Search Visibility
As customer search behavior continues to evolve, dealership visibility within AI-powered search results is becoming an increasingly important marketing consideration.
Dealers discussed building detailed FAQ content that answers real customer questions and positioning dealership websites as trusted sources of automotive information.
Traditional search engine optimization remains important, but dealerships must also consider how platforms powered by artificial intelligence understand, reference, and recommend businesses.
Creating useful, accurate, and specific website content may play an increasingly important role in how customers discover dealerships online.
Negotiation, Pricing, and Customer Objections
Another conversation focused on reducing unnecessary price negotiations by creating more value throughout the sales process.
Rather than immediately discounting a vehicle when a customer pushes back on price, dealers discussed identifying the customer’s true objection.
Is the concern actually the vehicle price? The monthly payment? Trade value? Financing terms? Or is the customer simply uncertain about the purchase?
Understanding the real objection allows sales teams to address the customer’s concern without automatically sacrificing gross profit.
Inventory Turn Times and Finding Profitable Niches
Dealers compared average inventory turn times and discussed strategies for identifying profitable niches within their individual markets.
This included analyzing performance by specific makes, models, and vehicle years.
The group also discussed the importance of differentiating dealership inventory from nearby competitors. Understanding which vehicles perform best within a specific market can help dealers make more informed acquisition decisions and reduce aging inventory.
Finance and Lending Opportunities
Finance managers in the room shared their experiences balancing cash, prime, and sub-prime customers.
The conversation also included experiences with various lending partners, including Global Lending, and the importance of maintaining financing options that allow dealerships to serve a broader range of customers.
Building strong lender relationships and understanding each partner’s strengths can help finance departments identify more opportunities to structure successful deals.
Customer Goodwill vs. Legal Responsibility
A healthy discussion took place regarding the difference between a dealership’s legal responsibility and customer goodwill.
Dealers discussed the importance of clearly setting expectations through tools such as Consumer Financial Responsibility Acknowledgements.
At the same time, there are situations where supporting a customer beyond the dealership’s strict responsibility may protect a valuable long-term relationship.
The group also acknowledged another reality of operating a business: sometimes the appropriate response is to respectfully decline an unreasonable customer request.
Online Reputation Management
Negative reviews are an unavoidable part of operating a growing dealership.
Several dealers emphasized the importance of not fearing the occasional negative review. Instead, dealerships should respond professionally and use the opportunity to clearly explain their position to future customers reading the review.
A thoughtful public response can often provide important context and demonstrate how the dealership handles difficult situations.
The group also recognized that not every customer relationship is worth maintaining, particularly when expectations become consistently unreasonable.
Want a Seat in the Room Next Year? Reach Diamond Status!
The value of the Diamond Dealer Event goes far beyond the destination.
It’s about bringing successful dealers together in one room to openly discuss what’s working, what’s changing, and how dealerships can continue improving.
Want a seat at the table for next year’s Dealer 20 Session and Diamond Dealer Event?
Reach Diamond Status with Empire State Warranty and earn your opportunity to join us in the room.
We look forward to seeing which of our dealer partners earn their place at next year’s event.
