How the FTC Exposed Automotive Dealership Processes – and What You Can Do to Improve Them

Michael Renaud of PTS explains how the FTC exposed dealer's over reliance on pricing strategies, and how they can reorient to processes, communication and customer-focused value to earn appointments and close deals.

How Dealerships Win Customers Without Competing on Price

When price disappears, process gets exposed. That’s exactly what is happening right now across the country.

The Federal Trade Commission (FTC) didn’t change the car business. It didn’t change customers. It didn’t remove demand. It removed the cover.

For years, aggressive pricing carried weak processes. It created activity. It drove leads. It filled pipelines. And it allowed stores to avoid fixing what actually matters, how they communicate, how they control conversations and how they lead customers through a decision.

Now that pricing shortcuts are being taken away, those weaknesses are showing up fast. And a lot of stores don’t like what they’re seeing.

Why Price Isn’t Costing Dealerships

The biggest mistake dealers are making right now is treating this like a pricing issue. If your deals only worked because of price, they didn’t work. They were subsidized.

This is a process problem. Price was never the reason deals happened. It was just the reason conversations started. What happened after the lead came in is what determined whether the deal moved forward.

But most stores built everything around that first number.

Low-price leader. Get them in. Work the numbers.

That model created traffic. It never was about control. And now that price can’t do the heavy lifting, the rest of the process is exposed.

 

Customers Aren’t Looking for a Human Kiosk – They Want Expertise

This is where most dealerships are still missing it. They treat every lead like it is about a specific vehicle. It’s not. Eighty-four percent of customers do not buy the vehicle they submit a lead on. That means most stores are building conversations around the wrong thing from the start.

Customers don’t wake up wanting a stock number. They wake up needing a solution, a new job, growing family, changing commute or financial pressure.

When you lock into one stock number, you shrink the conversation. You create friction. You force the customer into a yes or no decision before they are ready. That’s why they keep shopping. That’s why they lose confidence. And that’s why they go looking for someone who can actually help them make a decision.

Underutilizing Existing Leverage

While everyone has been focused on price, they’ve ignored the most powerful part of the deal.

The trade.

The trade is the great equalizer in every deal. Most dealerships don’t lose deals on price. They lose them because they never got the full deal on the table. It’s where flexibility lives. It’s where opportunity lives. It’s where control comes back into the conversation. And most stores wait too long to bring it up. They treat it like a closing tool. It’s not. It’s a control tool.

 

When the trade is introduced early and positioned correctly, 74% of customers set an appointment. That changes everything. When you bring the trade in early, the conversation expands. The customer starts thinking differently. The deal becomes real. If the trade isn’t part of the conversation early, you’re not in control. You’re reacting.

Without it, you’re stuck defending numbers. And that’s exactly where most stores are losing.

What the FTC is Showing Us Now

This is what the FTC shift is really exposing. A capability gap.

Too many BDC teams have become transactional. They respond instead of lead.

Too many salespeople act like an information booth instead of understanding customers.

Too many managers focus on what’s happening inside the showroom instead of coaching behavior to drive more traffic to the showroom.

When price disappears, communication becomes the differentiator. Process becomes the differentiator. Leadership becomes the differentiator. And if those aren’t strong, performance drops fast.

The Shift That Has to Happen

This isn’t about adding something new. It’s about fixing what should have been happening all along.

Stop trying to be the low-price leader. Be transparent.

Stop trying to “get them in.” Earn the appointment.

Stop working one stock number. Open up inventory.

Stop waiting on the trade. Be proactive, hook it early and build around it.

Stop dancing around website pricing. Lean into it.

Stop working numbers. Present the proposal.

We’re seeing stores right now with more leads than ever, and fewer appointments than ever. This is execution. Not theory. This is what separates stores that will adapt from stores that will struggle.

 

How Car Dealerships Lost Focus on the Sales Process — And How to Get It Back

None of this is new. For more than 20 years, there has been a better way to handle these conversations. While much of the industry chased low-price hooks, one stock number conversations and activity for the sake of activity, the strongest operators stayed focused on the things that actually move a deal.

Understanding the why. Controlling the conversation. Transparency. Early trade engagement. Earning the appointment.

That approach worked then, and it works now, because it was never built around being an information booth. It was built around sounding like a professional, leading the customer and helping them make a decision.

Because while rules change, how people make decisions does not.

The Bottom Line

This moment is uncomfortable for a lot of dealerships. It should be.

Because when price disappears, process gets exposed. The stores that relied on price will feel it. The stores that built process will separate. This isn’t about reacting to regulation. It’s about deciding whether your store actually knows how to sell.

Because the dealers who learn how to control the conversation, build value beyond price and lead customers through a decision will not just survive this shift.

They will dominate because of it.

Read about how FTC Automotive Pricing Will Impact Dealer Strategy on AutoSuccessOnline →

Or Read on the Digital Edition of AutoSuccessOnline’s May Issue (located pg. 16-17) →

If you want to build these skills across your BDC and sales team, schedule a consultation with Proactive Training Solutions.