Coleman Automotive Group

The real framework behind Kyle Coleman’s goal of 40 rooftops in 10 years: In this episode of the CDG Podcast, Kyle Coleman, CEO of Coleman Automotive Group, unpacks his bold plan for rapid expansion, the strategies driving his growth, why investing in top talent is non-negotiable, and more. Top lessons learned from Kyle: 1. Hiring the right CFO transforms everything about scaling. – Kyle found his CFO through vendor relationships after she called asking if he was serious about his previous recruiting pitch. – She relocated from the West Coast to rural Iowa because she genuinely cared about the business, not just the paycheck. – With 20 years of automotive experience in sales, finance, and controller roles, she handles the financial complexity while Kyle focuses on acquisitions. 2. Vendor contracts benefit companies, not dealers. – When Kyle inherited a Reynolds contract during an acquisition, he ended up paying $120,000 annually for a DMS he doesn't even use. – He discovered vendors provide exceptional service during sales but often disappear once long-term contracts are signed. – Kyle now refuses to sign anything longer than a year—month-to-month keeps vendors accountable. 3. Asset deals eliminate major headaches—but not all. – Kyle only pursues asset purchases because stock deals create legal costs and unknown liabilities. – Even asset deals can force buyers to inherit vendor contracts. – The cleaner structure of asset deals outweighs the complications, but buyers must budget for inherited contracts. 4. Private equity needs independent oversight for confidence. – Kyle partnered with an experienced fund manager who brings banking expertise and operates separately from daily dealership management. – This gives investors peace of mind someone is watching their capital while Kyle focuses on operations. – The fund manager provides perspective on deal evaluation, helping Kyle avoid chasing flashy deals. 5. Rural dealership markets follow different rules. – Kyle found that direct mail marketing—thought dead—works incredibly well in small towns. – Handwritten-style letters got calls from customers thanking the GM for writing them. – What works in metro markets often fails in rural areas, so Kyle adapts strategies to each market. The full episode is live! Stream it now - YouTube: https://xmrrwallet.com/cmx.plnkd.in/d5q-MMNb Apple Podcasts: https://xmrrwallet.com/cmx.plnkd.in/dmyimaSX Spotify: https://xmrrwallet.com/cmx.plnkd.in/dW8_cp9G

Some dealers are built different: In less than 7 months, Kyle Coleman acquired multiple franchises on his own and became the third-biggest Stellantis dealer in his region. I recently spoke to Kyle on the Car Dealership Guy podcast, about his unique journey, what it takes to turn around underperforming stores, and his future acquisition plans. Top lessons learned from Kyle: Earning investor support. — Starting the dealership acquisition process without prior ownership experience can be daunting. — There’s not a lack of investment money — there’s a lack of talent to invest in. — Those with proven track records in the auto industry can get support from investors regardless of their age. Dealership valuations. — Valuing stores post-COVID is challenging due to record profits in recent years. — Buyers will usually pay a lower multiple in rural markets – the tradeoff is that the location’s market efficiency usually isn’t as high. — But proper leadership can make meaningful improvements. Outperforming the competition. — Kyle sells more Stellantis vehicles than any other franchise, despite the brand’s struggles. — Old-school thinking on car prices is leading many dealers to price vehicles at MSRP when the market no longer supports this kind of strategy. — Dealers should instead focus on driving profits in F&I and fixed-ops. Investing in people = success — Employee retention is as simple as it is essential: pay as much as possible. — The car business is challenging and the mental toll can be intense. Good salaries and benefits are required to keep good workers happy. — High compensation also allows employees to equate the store’s successes with their own. Private equity plans. — Funding acquisitions through private equity can be painfully slow since dealers don’t maintain full control over their growth. — By founding their own private equity firms, dealers can start new funds for each acquisition while maintaining a majority stake. — This can lead to faster expansions, if dealers can obtain the capital needed to fuel growth. The full episode is live! Stream it now — YouTube: https://xmrrwallet.com/cmx.plnkd.in/eZ2Qxsf9 Apple: https://xmrrwallet.com/cmx.plnkd.in/emC9awan Spotify: https://xmrrwallet.com/cmx.plnkd.in/eX6igzhy