Car Dealership Guy Podcast Derrow on Auction Lane Grades, Holleman on Lenders, Kaulback on Subaru Strategy | Daily Dealer Live
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Nov 5, 2025 Kable Derrow, owner of Findlay Chrysler Dodge Jeep Ram, dives into the challenges of sourcing used vehicles and the discrepancies in auction condition reports, emphasizing the financial impacts on dealers. Will Holleman from Equifax discusses the rise of income fraud in auto lending and the importance of swift verification methods for reducing risk. Devin Kaulback, General Manager of Subaru of Niagara, shares innovative dealership strategies, including AI-powered appraisals and the differences in the Canadian market, highlighting the effects of tariffs and inventory adaptations.
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Payment Quote Mismatches Are Costly
- Dealers lose money when lender-approved payments come back higher than quoted, hurting both sales and F&I revenue.
- The report estimates an average dealer loss of ~$500,000 per year from payment mismatches nationwide.
Wrong Auction Grades Cost Dealers
- Kable Derrow described buying high-volume used cars where auction condition reports (CRs) misstate grades, forcing costly rechecks and arbitration.
- He said many of their virtual buys returned worse grades and they now buy direct from trusted sellers to avoid repeated losses.
Better CRs Inflate Auction Value
- Better condition reports generally bring higher auction prices, increasing incentives for mis-grading.
- Uli and Kable noted auctions sometimes allow favored high-volume sellers to influence CRs, creating systemic bias.