Inside Automotive with Jim Fitzpatrick, powered by CBT News

115 Years Strong: Evelyn Sames on Adapting in Today’s Auto Market

• Jim Fitzpatrick • Season 1 • Episode 45

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In this episode of Inside Automotive, Evelyn Sames, CEO of Sames Auto Group, reflects on the company’s 115-year legacy and how the fifth-generation business is navigating today’s evolving retail environment. Sames discusses early signs of market softening, including rising delinquencies and longer loan terms, while outlining how her team is adapting through inventory diversification, proactive used-vehicle sourcing, and expanded service operations. She also shares perspectives on EV demand in Texas, OEM brand cycles, and the growing importance of digital retailing and AI—balanced carefully with the human connection that defines the dealership experience. As the group looks ahead, Sames explains how responsible technology adoption and long-term succession planning are shaping the next chapter of the family business.

Key topics covered include:

  • Market signals pointing to a potential retail slowdown
  • Creative used-vehicle sourcing strategies beyond auctions
  • Leveraging the service drive to drive acquisition and sales
  • EV demand driven by incentives rather than organic interest
  • Investing in fixed operations as vehicles age
  • Balancing AI adoption with personal customer engagement

Inside Automotive with Jim Fitzpatrick is powered by CBT News, your go-to source for the latest news, trends, and insights in retail automotive. Subscribe for more interviews with top industry leaders, dealership innovators, and experts shaping the future of automotive.

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Jim Fitzpatrick:

Welcome to Inside Automotive with Jim Fitzpatrick. Hey everyone, Jim Fitzpatrick. Thanks so much for joining me on another edition of Inside Automotive right here at CBT News. SAMES Auto Group is celebrating 115 years. That's right. I said 115 years. They are then I mean that is incredible in the auto industry. Joining us once again is Evelyn SAMES, who's the CEO of SAMES Auto Group, to discuss today's market landscape from new and used vehicles to affordability to EVs to everything that we've been dealing with here in the last few years. So Evelyn, thank you so much for joining us on the show.

SPEAKER_01:

Thanks for having me.

Jim Fitzpatrick:

Sure. So first and foremost, how is business at SAMES Auto Group?

SPEAKER_01:

Group wide, it's steady. You know, I think that industry-wide, it's pretty steady too. We've seen um, you know, we we've we're dealing with all the challenges that everybody else is dealing with, you know, uh, I think the biggest one being affordability. Yeah. That's probably um that that's been our focus is how do we how do we get that sweet spot, that$25,000 vehicle, you know, on the used side. Uh new uh new vehicle sales are steady as well. Um we're definitely um starting to see a little bit of a, I wouldn't say a huge slowdown, but we're definitely seeing um with these longer term auto loans, you know, people are we're putting people out of the market, and we're definitely seeing a little bit of a you know, a change in credit. Um and so pretty steady, I would say overall, yeah.

Jim Fitzpatrick:

Okay, yeah, delinquencies are certainly on the rise right now as we see the uh a little bit of the uncertainty in the marketplace out there. And um, so many of the dealers, many of your colleagues that have dealerships around the country will talk about affordability being an issue, but then like you will say, but yet, you know, sales are pretty still doing pretty good, new car sales. And um, so is it is it as big an issue as we think it is? Are you hearing from consumers that hey, the average price of a new car being$50,000, where is this going? I can't afford a new car. Um is it is it a big issue out there?

SPEAKER_01:

Well, when you think about having something for everybody, yeah, um, you want to have you want to be able to, you know, a first-time buyer, somebody who's credit challenged, all the way to somebody who can't afford the$50,000 vehicle and that's an easy payment for them. Yeah, it's hard to um, it's hard to find something for everybody in this kind of environment. Yeah. Um, and so what we end up doing is we, you know, we extend the term, you know, because we're trying to get somebody into a comfortable payment. Right. And like I said earlier, we're putting people out of the market. You know, it's we're I think the average auto loan today is at around 70 months. And that's the average. So what's the high? That's right.

Jim Fitzpatrick:

That's right.

SPEAKER_01:

And uh, I don't know that that's the smartest move, but that's kind of where we've moved to make it affordable. And obviously, um, a big piece of affordability for us on the use car side is sourcing. Um, so before, you know, it was easy to depend on all the trades and go to the auction. And now we're having to get creative. You know, we're incentivizing our employees to source off the you know street street purchases. Um and we're we're really changing our mindset in terms of of sourcing because we're realizing that we can't just sit around and hope that you know, 20 to 25,000 our vehicle drives on our lot. We've got to go out and find it. So we like I said, we've we're incentivizing, you know, we'll buy your vehicle. Um no purchase required kind of campaigns, you know. So we're targeting doing targeted mail pieces and direct direct mail and email pieces out to people, wow, you know, asking for their particular vehicle. Um, and so yeah, I that's I I think the used car pipeline hasn't totally recovered um from the pandemic era kind of production um challenges that we had. And so that's a challenge. That's still kind of a tight market, and wholesale prices are still elevated, and you know, new car, you know, day supply is still, you know, I would say healthy, but not not where it was pre-pandemic. And so there's still that feeling of you know tightness um in terms of inventory and and sourcing. And so so you're yeah, I mean, we're vehicles are steady, nothing's surging.

Jim Fitzpatrick:

Okay.

SPEAKER_01:

Um, I do think that uh that you know affordability is still kind of our biggest hurdle, especially when we've got global markets, you know, that have$15,000,$20,000,$25,000 new vehicles out on the road.

Jim Fitzpatrick:

Yeah, yeah, for sure. It it wasn't long ago that the new vehicle was$25,000. And now we're looking, you know, at used vehicles for that same price. And it's just unbelievable that we're having that uh that discussion, but we are, and it's a it's a it's a reality. So just to kind of put a bow in it, you're actually your salespeople are now getting paid to help in the acquisition of those used cars off of the road. So they might get a snipe in if they get somebody that says, yeah, I'll you know, you give me you gave me a call, and yeah, we'd sell that third car or second car, whatever the case might be.

SPEAKER_01:

Yeah, and it's pretty amazing what they'll bring in, you know. Yeah, we you know in our industry we gotta pay people um to act the way we want them to act. And that's one of those things where you know you you drop that little and it and it's not just for salespeople, anybody, anybody store store wide, store wide. That's a good idea. Um, you know, we'll incentivize them for that.

Jim Fitzpatrick:

So that's a great idea, and it's working.

SPEAKER_01:

About going to an sending somebody an auction, oh yeah, forget it's transportation, you start adding all the cost to vehicles, you know, and you've got somebody there who keeps their eye out for you and is you know, so and it and it could turn into a car deal.

Jim Fitzpatrick:

I mean, sometimes I'm just gonna say, yeah, they're they're doing business with you, they're giving them, you're giving them a check, they're at your store, they're turning the car in. Oh, how much is that one over there? And before you know it, it just became a trade.

SPEAKER_01:

Exactly.

Jim Fitzpatrick:

Yeah, yeah, it works great. And I would imagine, like other stores, you're also putting numbers on cars in the service lane. Is that yes, is that the case as well?

SPEAKER_01:

Yeah, definitely. I mean, we have so many opportunities in our stores that we don't even realize, and that's one of the biggest ones. That's the easiest one because somebody's coming in with a concern. Hey, you know, we can we'll take a look at that for you, but we can also get you out of this vehicle, get you into something new. Yeah, um, so yeah, we're doing a lot of um sourcing off the service drive.

Jim Fitzpatrick:

Sure. Well, as you know, anybody that's given a uh a bill or a proposed bill of a thousand fifteen hundred dollars, you know, on their repair bill, right away they start thinking, well, wait a minute, how much is it? You know, if you have plans with no money now to buy a new car that's under factory warranty. I sold many cars in my time to customers just like that, right?

SPEAKER_01:

Right. Yeah, yeah, no, there's definitely that opportunity. I think there you have to really be smart. You know, you have to, especially people that are coming in on an appointment, you can have their their um trade appraisal ready to go so that you have a full presentation for them and you're not, you know, kind of just slinging an offer, but you've actually maybe even pulled up a vehicle that you think that might interest them, something equivalent to what they're in. Um, and have that, you know, be completely prepared for that appointment.

Jim Fitzpatrick:

Right. Right. Yeah, that's fantastic. Let me talk to you about EVs. When we saw the incentive um from the government end uh September 30th, was that a big thing for your store? Were you selling a bunch of EVs? I know that you're you're out in certain areas of Texas that might not lend, it's not, it's not like California or maybe some of the coastal states, right? That um I I know Texas does have a coast, but you know what I mean in terms of EVs. Was that a was were EVs, were you selling a lot of EVs and did that make much of an impact in your business?

SPEAKER_01:

Surprisingly, we were. I mean, I wouldn't say a lot. You couldn't compare us to anywhere in California, but yeah, we were selling EVs, and I would say the biggest selling point was again affordability. We had a tax credit, so if somebody came in with negative equity, uh-huh, um we had huge incentives, we had great lease programs on these vehicles, and it was kind of the you know, I bought one. I think my the the lease payment on my Maquee is like 240 was something dollars a month.

Jim Fitzpatrick:

It was incredible. Right. And you took two Uber rides and you just made the car payment. Exactly.

SPEAKER_01:

Exactly. So I really think um once those incentives expired, you know, we've definitely seen that demand soften and um it's not organic demand anymore where people are actually cut and most of the people that came in didn't come in on an EV, they came in on something else. So hey, customer, we can't exactly put you into that kind of payment. But if we consider a vehicle like this that has these incentives, you know, it might might be the the best, you know uh a consideration.

Jim Fitzpatrick:

And so people rather than a nine rather than a 96 month loan, right?

SPEAKER_01:

Exactly.

Jim Fitzpatrick:

Yeah.

SPEAKER_01:

So so it has we've seen some, you know, a decline in in EV sales. Um the people that come in on an you know, looking for an electric vehicle are very educated, they've done all their research, they know exactly what they're looking for, and they're willing to pay for it.

Jim Fitzpatrick:

Yeah, for sure, for sure. Um, you all you have a Nissan store in your lineup, right?

SPEAKER_01:

We do.

Jim Fitzpatrick:

Yeah. How how are you feeling about the Nissan brand today?

SPEAKER_01:

Well, um, I'll tell you, I think they're making real progress. Obviously, they um they're doing some major restructuring um globally, and um they are investing heavily in the future, which is something that we want to see out of our partners because our partnership with all the OEMs really matters. If they succeed, we succeed. Yeah. Um, and so we think that's really important. Um sales of, you know, they're like I said, there's there's there's there's been some challenges there. Um, but we do see them, you know, putting money into technology, investing in their product. Um and so we know that it's gonna take them some time, yeah, you know, to turn things around, but but we're we are we feel positive about the future and we do feel like it's very promising for as a dealer to see them investing, you know, to improve the brand and turn things around.

Jim Fitzpatrick:

Sure, sure. And you're also, I should add, a Stillanis dealer, right? We are. And and with all of the changes there that you know, I've spoken to a number of your colleagues that are uh in the industry with with uh Stillana stores, and they're they're feeling pretty good about that that franchise. Um are you in that in that same group that you're feeling pretty good?

SPEAKER_01:

Yeah, I I I mean, let's let's face it, all the OEMs have had their challenges. I mean, this is not you know, nobody's exempt of um of these challenges, and um we know that you know it takes some work, it takes some we're in the same place, you know. We we've had stores that struggle and yeah, at while at the same time stores that are doing, you know, exceptionally well. So um we, you know, we feel positive about where things are going with both um Solanus and with Nissan. I think I think they're making the right moves um and they're looking into the future. They're not just looking to kind of patch things up, put band-aids on on, you know, things for today, but they're actually looking into the future. And that's what's important to us because we, you know, we're in it obviously for the long term. And uh we want to see our partners, you know, investing in the future.

Jim Fitzpatrick:

Sure, sure. Where do you see the biggest growth opportunities for your dealerships over the course of the next 12 to 24 months?

SPEAKER_01:

Well, um, for us specifically, uh I truly believe that fixed stops is gonna be our core growth engine. And that's kind of been our strategy. We're we're increasing shop capacity in almost all of our stores. Um we know that vehicle age is at a record high. People are staying their vehicles longer, vehicles are actually more reliable and they're lasting longer.

Jim Fitzpatrick:

No question.

SPEAKER_01:

Technology is yeah, and we we know that um that people again are more educated, they're doing their research, they know what they need to do, what they don't need to do. Right. And um they so we need you know, we need to have that capacity. And um we're investing in technicians, recruiting, the talent, you know, getting them trained, giving them all the resources, um, maintenance plans obviously is a big you know area of opportunity to to um build customer loyalty and ensure that they're coming back into to our store, you know, to our service departments. And so I would say fixed stops is probably, you know, um and customer obviously loyalty and customer recaptures would be kind of our biggest um push. Um my other big um challenge right now is uh meeting customers where they're at. You know, we've got customers who are shopping online, then coming back into the then coming into the store to finish their purchase. Yeah. We've got lots of really strong digital tools that we're using. And um I still see a lot of my stores want to, as a matter of fact, I was on a call this morning where we had a customer reach out online for um the price of a used vehicle, and you know, the the BDC representative just kept giving him the the runaround and trying to get them in the store, get him in, get him in, get him in. People are, you know, we we get instant information now. We can Google Chat GPT anything and have have an answer in three seconds. That's right. So when somebody looks for us and they have a question, we need to have an answer quickly. That's right. And um, so I'm really wanting to hone in on, you know, I think we have so much opportunity out there. It's how do we get each one of those? Um they're considering us, so they're reaching out. How do we get them into our store to buy? That's right. And that means providing the information that they need, responding quickly, but also meeting them where they're at. There's some people that want to complete their entire transaction in the store, and then there's some people that want to go online, they've done all their research and they're ready to purchase. Um and they want to click a button, they don't want all the other things. So, how do we tailor and customize that experience for all these you know different types of customers um and meet them exactly where they're at?

Jim Fitzpatrick:

That's right, that's right.

SPEAKER_01:

It's much different, you know.

Jim Fitzpatrick:

Yeah, much different in the 115 years of SAMEs autogroup than the than they the way they built the the group, your your parents and your grandparents or great grandparents. The industry is just completely different. To your point, they do want to be, you know, met where they are, whether it be on the comfort of their couch or whether it be uh online uh you know, in a restaurant uh or a cafe. Or I think the the key is they want it fast and they want it accurate. They want that number. If you tell them it's gonna be$349 a month, it can't be$449 a month when they walk in the showroom, right? Otherwise you're gonna lose those customers. And obviously, everybody's walking around with one of these. So, you know, if you don't give it to them quickly, they're on to the next the next dealer group that wants their business, right?

SPEAKER_01:

Yeah, absolutely. So the the you know, the bottom line is the more people we talk to, you know, the more people we can get into our stores and the more cells we close, and the more we grow.

Jim Fitzpatrick:

So that's right. You mentioned uh Chat GPT. Um talk to me about AI and the role that you see that playing in the auto, in the retail auto industry moving forward into 2026. Uh the dealers that I talk to are utilizing it in a big way right now, certainly in service for outgoing calls on uh work that needs to be done or maybe recalls or what have you. Are you doing the same?

SPEAKER_01:

We are. Um it's pretty incredible how far AI has come already, um, specifically in our industry. Um, everything from seeing a technician, you know, use AI to type their notes. Yeah, and and you know, to following up with customers to chatting online to, you know, we've got we've got so many different platforms um and different areas that we're using AI in. Um obviously we're concerned about privacy and how much information we're putting into these systems. So as a group, um, we are working on a um, you know, a policy for all of our employees because everybody's using you know their own form of AI in different ways. Um and so we want to be conscientious of that. Um, but it's really something very powerful. And I I've already seen it evolve. I just can't imagine where it's gonna take us next. Yeah. Um, I do think, again, back to you know, streamlining these processes, you know, we've got a lot of opportunity to make things more efficient. Um, but we have to, you know, then you know, we can AI can do so much, and then once it becomes a personal interaction, we have to ensure that, you know, we've already we've we're we're up to date with what AI has already done for the customer, and then we pick it up from there. Sure. Um and and take, you know, we don't want to overlap or repeat.

Jim Fitzpatrick:

Um, and today's consumers are almost um not demanding it, but expecting their retailers that they're doing business with to make the process as seamless and as fast as possible. And if that includes AI, then they seem to be okay with it, right?

SPEAKER_01:

I I think so. I mean, I definitely think there needs to be a personal aspect to it. You don't really, when you're shopping for a car, you don't want to feel like you're talking to, you know, a chap or a bot. You want you want that personal experience. It's a big purchase.

Jim Fitzpatrick:

Um but if I call a if I call uh your dealership and a you know an AI uh voice comes on and I can set the appointment with them for my car, I'm okay with that. I don't I don't need to talk to a human being to do that as long as they uh you know send me a you know text uh uh confirmation of my appointment or what have you, if if they can do that and I don't have to wait for somebody to get off a phone call or come back to me or check or whatever, and they can. Be done through an AI bot, you know, uh setup, and I'm good.

SPEAKER_01:

Yeah, no, there's definitely ways to make it personal, and that's something that we've got to focus on. We don't just want to set it and forget it, leave it out for you know, AI to handle, and we step away. I still think that our business is very personal. I mean, people like I said, it's a big purchase. People uh want to touch, feel, smell. Yeah, you know, when they go into the service department, they want to actually talk about their concern with the service advisor. You know, they don't want to just so I definitely think that um we're very much a people industry and we we need to make sure things are still personal.

Jim Fitzpatrick:

That's right. That's right. Uh anything that keeps you up at night about uh as we go into 2026, uh, that you're most concerned with?

SPEAKER_01:

Probably AI.

Jim Fitzpatrick:

AI getting it right.

SPEAKER_01:

Where is this gonna take us? Um, you know, but I like I said, I do feel like we're in a very people personal business. Yeah. And um for me, um, you know, it's important to put people first and invest in our culture, invest in our people. And um, you know, the only thing that's ever kept me up at night, but it you know, is there's so many, you know, our industry gets a bad rap. Yeah, and uh it's very important for us to do the right thing always and to be transparent. And so um, you know, I'm that's that's something that I we instill in our culture and our people, and we expect that. You know, that's my expectation of everybody is we do the right thing, we take care of our people, right, our customers. Um and really for me, uh personally, what keeps me up at night is you know, getting this business onto the sixth generation. That's my goal.

Jim Fitzpatrick:

I feel like a six generations. That's incredible.

SPEAKER_01:

Pass it along, and I I don't want to be the one that breaks the chain. So hopefully I can get it there.

Jim Fitzpatrick:

That's right. That's right. Well, I'm sure you'll you'll do just fine and not break the chain. So Evelyn Saymes taking care of the family business. Uh, that's been 115 years, folks, in business. That is incredible. Uh, she's the CEO of SAMES Auto Group. Thank you so much for joining us on the show. It's always great catching up with you. And man, 115 years. Congrats on that. And uh hopefully we can have you back on to see how things are moving along.

SPEAKER_01:

Thank you, Jim. I appreciate it.

Jim Fitzpatrick:

Great. Thanks so much.

SPEAKER_01:

Thanks for watching. Inside Automotive with Jim Fitzpatrick.

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