What new car dealers in the states can learn from the Brexit

What new car dealers in the states can learn from the Brexit

Why did the UK vote, and vote overwhelmingly, to leave the 28 country union known as the European Union?

The reasons are many, but the at the core I’d posit that two main drivers were at play.


The UK was one of only 10 countries in the EU that paid in more in membership duties than it received in benefits. It was a mandated welfare state to support the likes of Poland, Greece and other debtor nations that made habitually poor financial decisions and were protected from the socioeconomic and financial consequences of those decisions by the largesse of the UK, Germany, France and others.


The UK recognized the dangers of homogeny, the open mandated sameness around borders and the flow of commerce and people that didn’t provide them any advantage, only artificial competition and diminished safety.

What can a new car dealer in the states learn from the Brexit?

If you are a big player in your market, like the UK was to the EU, RUN from homogeny. Yes it will cause short term pain for the UK to Brexit, but when you’re a big player you should benefit from that size and not be lumped into feeding the weaker players.

No lines to read in between here… RUN from the manufacturer-sponsored co-op programs — they are corporate welfare for the smaller players and take away so much of your (well earned) competitive advantage.

On what planet would you want to share SEM, SEO, or any other providers with your closest competition? Are you insane? Look, if you’re a little guy, I get it… let the big guys bankroll the partnerships that, remember, first benefit the OEM, next benefit the vendor and finally (if at all) benefit the dealer.

Homogeny occurs ONLY when the economy is good; the OEMS are then incredibly smart, and can mandate otherwise flaccid programs. 

Winter is coming.

You can’t be born on third base forever. Survival is about safety and competitive advantage, advantage that comes from specialization and differentiation.

Yes, it’s easy to spend (your own money by the way, simply held captive by the OEM) co-op funds and have it funnel right through an automated approval process, and maybe get a higher level of reimbursement. And you’re eating the same gruel as everyone else at the trough, throwing away any competitive advantage.

Forging your own path takes effort, but it beats the pants off of homogeny. It’s like pulling off a bandaid…or leaving the EU.

The herd never wins the long race — it’s the trailblazer

Erik Radle

A voracious reader, un unabashed foodie and struggling golfer, Erik holds multiple degrees from Baylor University where he attended as a National Merit Scholar. His involvement in the community includes support for organizations like Educational Media Enterprises and Park Cities Baptist Church. More info