The Next Generation of Automotive Retail Leadership

Jane Vaden Thacher, President of Vaden Automotive, and Jack Thacher, the group's Director of F&I, join Inside Automotive to discuss dealership growth, digital retailing, affordability challenges, workforce retention, and the future of family-owned automotive retail.

As Vaden Automotive continues expanding across Georgia and South Carolina, Jane and Jack share how the organization approaches acquisitions, develops talent from within, and adapts to changing consumer expectations. They also discuss the role of digital retailing, the importance of F&I in today's market, and how dealerships can navigate affordability pressures while maintaining profitability. The conversation also explores generational leadership, employee burnout, and the legacy behind one of the Southeast's largest family-owned dealership groups.

Key discussion points:

• Vaden Automotive's acquisition strategy and approach to integrating new stores
• How digital retailing is changing the customer buying journey
• The impact of affordability pressures on dealerships and consumers
• Why F&I remains critical to profitability and customer retention
• Addressing employee burnout through workplace flexibility
• Building and preserving a multigenerational family business

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Transcript

Welcome And Big Hyundai News

Jim Fitzpatrick 0:07

Welcome to Inside Automotive with Jim Fitzpatrick. Vaden Automotive continues to expand its footprint across the Southeast with a new Hyundai dealership in Brunswick, Georgia. So what's driving that growth and where is the business headed next? Joining us now with more on their operations is Jane Vaden Thatcher and Jack Thatcher of Vaden Automotive. Thank you so much, folks, for joining us on the show. Thank you for having us. Sure, congratulations on the big news, a new dealership, especially Hyundai. That is a great franchise.

Jane Vaden Thacher 0:40

We are very excited. We are big Hyundai fans, and we um we have a we have two points for Hyundai, one in the south in Brunswick, and then and we have a brand new facility that we've only been in for gosh just a couple weeks, I think. Wow. And then we also have a dealership in Statesboro, Georgia, or Hyundai, which is um the area contiguous to the Hyundai MetaPlant, which you may have heard about. Yes. So that's pretty cool. And we

Fourteen Stores And Acquisition Strategy

Jim Fitzpatrick 1:15

will very soon begin a complete remodel and expansion of that facility. Wow. Look at Vaden Automotive just taking off with three Hyundai locations. That is uh fantastic. So congratulations on that. Um talk to us a little bit, Jane, about uh fat about uh uh Vaden Automotive Group today. How's it doing? How many stores do you have down the chain?

Jane Vaden Thacher 1:39

So we now have 14 dealerships. Wow. We um our last purchase was actually an underperforming dealership um in a market where we already had a presence with a Nissan store. So we have added a Chevrolet dealership in Hinesville, Georgia, and have had that dealership since November. Okay. Wow, that's great. So yes, we are now up to 14 dealerships and about 880 employees, I believe.

Jim Fitzpatrick 2:11

Oh my gosh, wow. What I asked this of a lot of different dealers when I meet with them. 14 dealers is a lot of dealers and almost a thousand employees. When is enough enough? Do you ever want to take a vacation and just go, you know what? We we we have enough dealerships to be happy, or do you just want to keep growing?

Jane Vaden Thacher 2:31

I think there'll be a tipping point. I think that we are um built for probably one more round of acquisitions in the near term. Um, but but at some point, yes, because we are we limit ourselves somewhat in the geography that we're willing to um move into. Okay. I don't know if Jack and after I'm gone, he may triple it. Who knows? He's smiling there. I think that's the that's the point. Yeah. Talk to Jack for a minute about bringing the cultures together

Culture Fit And Vadenizing Teams

Jim Fitzpatrick 3:07

when you uh when you acquire another group. Obviously, there's people that are working there. How do you bring them into the Vaden you know, way of doing business?

Jane Vaden Thacher 3:17

We start on day one, or actually we start before day one, and we we call it Vadenizing people, and we really bring them into the fold of how we do things. We um fortunately have been able to promote quite a bit from within our ranks. Okay. Um that is our that is our main focus to be able to do that. And we, I mean, inevitably you find that that some folks um don't feel like they're a good fit for us, or some folks we may feel like aren't a good fit for us. But we we give everybody a chance on day one. Everybody who's at a store we purchased still has a job if they would choose to have one.

Jim Fitzpatrick 4:03

Yeah. Oh, that's great. That's great. You give everybody that that that chance. So you Vadanize them before you vaporize them if they don't make it. That's terrible. That was my line, not that. That is terrible. But uh listen, that happens. So uh so Jack, you're the future of the company there. What uh what are your plans? I mean, when you when you look ahead the next 10 years, are you rolling up your shirt sleeves saying let's let's get on with uh the growth of the company?

Jack Thacher 4:32

Yeah, so I mean to speak to that a little bit, as my mom said, I still think we have a lot of growth in in the near term, right? You know, in which we can continue to expand our footprint in this local community. I think there's a lot of benefits at scale in which things do become more efficient. And quite frankly, just our structure makes sense where you know we have the the support to facilitate some of that. Um now what that's gonna look like in 10 years, if I had my crystal ball, you know, I'd be rich from trading stocks and sitting somewhere on a beach drinking a mojito. Um so I have no idea, but at least in the short term, I see a lot of benefit and growth and you know, and then optimizing the the source that we do purchase. Yeah. Jack, do you uh 10 years? I mean, he'll just be getting started. He'll he'll he'll sell the end island 30.

Jim Fitzpatrick 5:24

He's he's gonna be in his in it, not even in his prime in 10 years. So he's got a lot of runway. That's right. That's right. Um, Jack, since you're you know, kind of the the the generation that everybody wants to do business with and capture as a consumer as well, um, how do you see the different the business different than maybe your folks do?

Digital Retailing Meets Real Dealers

Jack Thacher 5:45

Sure. So I think a couple of things. Number one, you know, we've talked about digital retailing and we see how shoppers are wanting to do more and more of their business online, right? That doesn't necessarily mean that it's cradle to grave in which you know it's an Amazon purchase and they're putting a vehicle in their shopping cart and moving on down the line. Right. But a lot of customers are coming in and they want to work their deal out prior to arriving at the dealership. And for me, when I think about my generation, I haven't had a moment in my life in which I couldn't purchase something completely online. And so I'm comfortable with that type of transaction. Yeah. And so I really think that's only going to continue to grow. And I think we as dealers need to be comfortable with that. We need to embrace it and try and meet consumers where they're at rather than trying to force them into a transaction that you know they they may not want to do in that manner, right? Just really meet them in the medium that they want to be.

Jim Fitzpatrick 6:43

That's right. A lot of people now are buying cars right on their cell phones, aren't they? That's right. Absolutely. It's incredible. Um, we see car companies like uh Carvana and of course uh Tesla and uh and even CarMax that sell cars just at a one-price structure. There's no negotiations, there's no back and forth. We're not sending, they're not sending their customers kind of you know through this uh this machine of negotiation. Um what's your take on that, Jack? Do you think

One Price Versus Negotiation

Jack Thacher 7:11

that that is the future of the industry uh in the sense that less negotiation, more cut to the chase on a bottom line price? Yeah, that's a great question. So I do think that there needs to be additional transparency, additional communication, you know, as we move forward in terms of transitioning fully to a one-price model. I'm not sure because I do think there's benefits in being able to be flexible and making a decision based off the age of the vehicle or trying to hit a number, things of that nature, which the consumer benefits from the ability to make that fly decision. Um and so I do think that you know both us and we as an industry are going to move to more structured pricing, but I I still believe that there will be a component of negotiation long term. Um, I think there are benefits to both the dealer and the consumer.

Jim Fitzpatrick 8:04

Sure, sure. Um, Jane, I know that you built the business alongside your dad there and uh did an incredible job. Uh there's not many females in the industry running large groups like yours, so uh kudos to you for that. We need more women in the business. And uh but right now we're in a very uh unique

Affordability Headwinds And Pivoting

Jim Fitzpatrick 8:23

market. I mean, we've got some headwinds, the affordability issue is is uh kind of creeping down everybody's back, whether you're an OEM, you're a consumer, or you're a retailer as you are. Talk to us about some of those challenges when it comes to affordability.

Jane Vaden Thacher 8:39

The challenges are real. Um there are you know a lot of budget concerns for consumers which are completely understandable. I think um, again, as dealers, as retailers, really of any product, we we have to be flexible and we have to adapt to what the market's doing. I think that there are always opportunities. And one thing that that we as a company, and I would even say to some extent, our industry has learned over the years is is to adapt. Um, we don't know what the next thing will be, but um, there's always going to be something, and we just have to be ready and be forward thinking, try and get ahead of it. We um, I mean, for us, March was a record, all-time record month for our company. So that's great. Um yes, there are headwinds, but again, there there's plenty of opportunity if if you're smart about how you do business and if you stick to what made you successful in the first place while being able to adapt to changing conditions outside our control.

Jim Fitzpatrick 9:58

Sure, sure. Uh many of the dealers that I talk to around the country um have said that these are the times that you pivot. If new car sales are a little bit off, uh then you move to used car sales, you know, and you focus maybe more on service, uh, or you really make make sure your PVR in your finance department is running top uh top numbers. Uh I know, Jack, that's something that you know a little bit about. Uh talk to us

Why F And I Matters More

Jack Thacher 10:21

about FI and uh the future of FI. Yeah, so I mean, as we've all seen, right, we've seen some margin compression on front side PVR, you know, in which the market's just incredibly uh competitive. You know, as you mentioned, there's a very real affordability issue in which, you know, it's just very difficult to uh you know get the advance required based off the values of the vehicle or sometimes just fit into a budget. And so in my mind, F and I has become infinitely more important than it really ever has been. You know, if we can't make the margin on the front side of the sale, we need the ability to make it on the back. Right. Um and to me, not just from the the gross opportunity, but from the value represented within F and I. So, you know, service contracts and driving retention, uh, maintenance and driving retention, things of that nature, just ensuring that our customers are in a position in which when something does happen, they're they're protected and they can come back to us for that service and continue the relationship and hopefully purchase their next vehicle with us. And so F and I is absolutely integral to our success.

Jim Fitzpatrick 11:31

For sure, for sure. Jack, um, for the you know, the next generation of sales professionals that come in to retail automotive, um, you know, they're facing long hours uh pay that can fluctuate. As you know, you could be a hero one month and back to zero the next month. That's right. Um but the hours typically we hear from the younger salespeople that enter the industry that, man, this is this is a tough gig. You know, this isn't what I I thought I was signing up for, you know, a 60-hour work week and we every weekend and what have you. Um you're you know the perfect person to ask. Is that is that a major thing with with uh Generation Z today that that they want they want more uh work-life

Gen Z Hours And Burnout Fixes

Jack Thacher 12:12

balance? I I would say absolutely. Um, and I'll speak for myself, in which, you know, I've had prior careers in which PTO was one of the most heavily driving factors for enjoying that that job, just having the flexibility. And so, you know, whether we're we're talking about managing affordability or just trying to ensure that we have the proper staffing, I think it comes back to adaptation. You know, fundamentally, I think we need to recognize that you know, if we are going to continue to groom that next generation, we have to meet them where they're at and provide them the ability to work within the confines of what they're willing to do. Um I think there is some ancillary benefit. We see significant turnover in this industry, and you can attribute some of that to burnout. And I think we can manage some of that burnout just by providing additional flexibility. Um we saw it in COVID, and you know, I don't know about you, but any person I ever speak to about the time in COVID was the best time for the industry. And that's for sure. Some of that was the money, but some of that was also just the time off. Yeah, yeah.

Jim Fitzpatrick 13:21

That's right. That's right. No question about it. What is Vaden doing to address that when you've got uh you when you recognize that need among the team? Um is it special hours? Do you you know close earlier? Do you take Saturdays off? Or how do you address that without at the same time flooding the showroom floor with more salespeople for proper coverage? It's a tough, it's a tough thing to do, isn't it?

Jack Thacher 13:46

It's very challenging. And you know, I don't I don't pretend to have it figured out. Um I think service, quite frankly, is easier than than sales. There's some very unique schedules that allow for coverage and a lot more flexibility. Sales is tough. Um, you know, where we've found success is you know, offering one Saturday off a month in which you'd have a three-day weekend essentially. Nice. Um yeah, just uh just to again, even if it's not a consistent thing, providing that one weekend out of the month in which, hey, it's your time, go enjoy time with your family or friends, or or what have you, you know, just as an additional benefit. But in terms of how to structure it, I don't know. Um, I think it's something we're gonna have to figure out in the coming years. Yeah, it is very important.

Jane Vaden Thacher 14:32

I will say since I started, the schedule is much more forgiving um than it was. I was just gonna say, you and I were in the business at the same time, and man, to have a whole weekend off, forget it. Did not happen, right? Right. And and by the way, I had a baby and didn't get a whole week off. That's right. They were they were bringing you deals uh inside the delivery room and saying, uh, you know, what are we gonna do? Pretty much put this on the road, right? Hey, let me

Family Legacy And The Next Decade

Jim Fitzpatrick 15:02

ask you, Jade, you worked for your dad, and now you're in in between now, your son works for you. What is that whole dynamic like? I mean, are you do you find yourself softer on your son because your dad, you like, well, I'm not gonna be the way my dad was on me? Or what does that look like?

Jane Vaden Thacher 15:19

Well, uh I think I'm I'm a much different, um I have a much different management leadership style than my dad did. I mean, he and the company was much different back then. Yeah. Um, and we did not have the level of support of people that have been able to work with Jack and train Jack other than myself. Yeah. And, you know, Jack, Jack and I I think have a very unique relationship in that we communicate extremely well and we think a lot alike. And it it really, I don't know about you, but it's just not that hard. Um it just it just seems it it works. Yeah. Um and I I think I think if you asked um the rest of our organizational leaders, they they would concur with that statement.

Jim Fitzpatrick 16:23

Yeah, that's pretty cool. That that's great. Jack, based on what you know of the business, um, do you do you uh you're third generation, right? Uh would do you see uh your kids coming into the industry? Is it is an industry that you say to yourself, hey, I could I can see my kids taking over one day.

Jack Thacher 16:40

I absolutely do. And that's I mean, part of the intention behind being here is trying to maintain that legacy and provide them the same opportunity that I was provided and my mother was provided and that my grandfather created. And so, you know, assuming it's a path that they want to follow and have the aptitude to do so, I would absolutely love for them to be a part of it. It's a fantastic industry. You know, it allows a lot of people to put a really good living together and food on their table and support their families, you know, a lot of involvement in the community. And so absolutely I would love to continue that legacy.

Jim Fitzpatrick 17:15

Yeah, that's great. That's great. I understand that you left the business for a little while and and tried your hand at something else, but then you were drawn back in. What got you to come back in?

Jack Thacher 17:25

Yeah, I mean, fundamentally, it's the excitement. Um, so I I had a fantastic career uh in working for a brokerage firm out in Colorado and really, really enjoyed it, had no intentions of coming back. And my mother convinced me to come back to go to one of our leadership retreats. And so, you know, I'm thinking, oh man, I'm taking PTO from my job to go attend someone else's job, and but whatever, I'll I'll go. Right. And by the end of it, I was so pumped up, I was like, what am I doing? I put in my notice that Monday and you know was back within a couple of weeks. And so, you know, fundamentally this business is it's challenging, it's difficult, but every day is something new and it's so fluid, it's constantly changing, and I I I love it. It's it's like a puzzle, you know. Um, it changes every single day.

Jim Fitzpatrick 18:20

Sure. I know there's many, but what's the if you had to pick one uh lesson that you've learned from your mom thus far, what would it be?

Jack Thacher 18:28

I'm gonna say don't be afraid to speak your minds. You know, you alluded to it where she's a female in in an industry that's largely dominated by men, and so you know, she has never been one that has been afraid to uh give her opinion. Um and that's something I can appreciate because I don't I'm not naturally like that. And so seeing it and the efficacy of it, you know, has given me the the skill set, you know, because there is value in doing so.

Jim Fitzpatrick 18:56

That's right, that's right. Jane, I'll get give you the last word in our segment. And again, I appreciate all the time that you've given us. Um what's what's the future of the company if we were sitting here 10 years from now? What does the business look like?

Jane Vaden Thacher 19:11

I think the business will have grown um probably fairly significantly. Um the business may diversify. I think that um I'm very blessed and fortunate to say that we'll have a lot of the same um leaders that we have today. That's great. And it is. Um and I I I feel pretty strongly about that. And I think, you know, I hope I'll still be a part of it in 10 years. Um I'm not planning on exiting stage left quite quite yet, but um whether I am or not, I am confident that it's in good hands and that it will be led in a way that not only I would be proud of, but my father as well.

Jim Fitzpatrick 20:07

Oh, that's great. That's great. Jane Faden Thatcher and Jack Thatcher of Vaden Automotive Group, and congratulations again on the brand new Hyundai store in Brunswick, Georgia. Uh, I'd like to get out there uh one day and sit down with you folks again. Uh as you know, many of you that are watching and uh tune into CBT News, uh Jane was one of our executive profiles that we did, and uh everybody was amazed with the story. So uh keep up the great work, folks. Thank you so much for spending some time with us and uh look forward to seeing you soon. Thank you. Thank you. Thanks for watching Inside Automotive with Jim Fitzpatrick.