Matthew Phillips, the CEO of Car Pros Automotive Group, a rapidly growing dealership group with nine stores in Washington and California, recently participated in a community event where a brand-new vehicle was given to a nurse and foster parent selected from over 100 nominees. While some may view this as a self-serving promotion, car dealerships like Car Pros are actively involved in their communities through various initiatives such as car donations, sponsorships, and donations to local organizations. These dealerships are considered to be one of the last true “Main Street businesses” in the U.S., playing an essential role in driving the local economy, philanthropy, and community service.
Despite being lucrative businesses, auto dealerships are not part of the billionaire class and are deeply ingrained in their communities. They contribute significantly to local tax revenues and job creation, making them essential components of the nation’s economy. Unlike other small businesses that have been disappearing due to consolidation by large corporations, many local dealerships have managed to thrive and maintain their presence in the community. The franchise model allows dealerships to outsource expenses and management while keeping the business hyper-local and personalized, making it difficult for tech giants to disrupt the traditional dealership system.
The franchise system benefits customers, employees, and the community as a whole. It allows for local competition between dealerships, ensuring competitive pricing and customer service. Employees have the opportunity to earn a respectable salary without requiring a college degree, providing a pathway to the middle class. Profits generated by dealerships are reinvested back into the local community, making the franchise model a community-focused and sustainable business model. Wall Street billionaires are the only ones who may not benefit from this approach.
As the automotive industry evolves with the rise of electric vehicles (EVs), some EV-only companies are shifting towards a franchise dealer network model. Major automakers that initially embraced direct-to-consumer sales for EVs are also reconsidering their approach and recognizing the benefits of the franchise model. This system provides numerous advantages, including educating buyers, expanding service footprints, and offering financing options for all credit situations. Despite technological advancements in the sales process, the human element of car sales remains crucial and cannot be entirely replaced by technology.
In conclusion, today’s car dealerships have evolved beyond the cliché of unscrupulous car dealers to become true community partners. These businesses play a vital role in driving the local economy, supporting philanthropic initiatives, and creating job opportunities for individuals in the community. The franchise model enables dealerships to remain deeply rooted in their communities, serving as essential pillars of support and sustainability. Through their commitment to community engagement and service, car dealerships continue to thrive as Main Street businesses that contribute to the overall well-being and prosperity of their local areas.
