How a Buying Association Can Save Your Dealership: Lessons from REI and the Future of Auto Supply Chains.
If you run a new car dealership today, you are not just in the car business anymore, you are in the supply chain business whether you like it or not.
Over the last few years, the ground under dealers has shifted. Tariffs have gone up on steel, aluminum, and hundreds of automotive-related imports, which means your cost structure can change without notice. Semiconductor disruptions keep coming in waves, affecting EVs, ADAS, and connected vehicles. Smaller Tier-2 and Tier-3 suppliers are under financial stress, making sudden shutdowns and parts shortages more likely. OEMs are reshoring and reconfiguring production, which will change where inventory flows and who gets it first.
That is the backdrop you are planning 2026 against.
As “webdoc,” I usually talk about data, marketing, and customer communication, but let me be very clear on this point, none of that matters if you cannot get the parts, supplies, and materials you need at a predictable cost. This is where smart dealers stop thinking transactionally and start thinking structurally.
Why the Old Supply Model Is Breaking
For years, most dealers lived in a “set it and forget it” world.
You had a bunch of vendors, a couple of go-to suppliers, the OEM pipeline, and it all more or less worked. Today that model is a liability.
- Tariff changes can add several points of cost to items you buy every day
- Suppliers you have used for years may be quietly struggling with input costs and liquidity
- Global events can shut down a parts source halfway around the world overnight
- Your team spends too much time chasing backorders, quotes, and substitutions instead of serving customers
You feel it in your fixed ops, in your recon, and even in your front-end merchandising. The risk is no longer theoretical, it hits your P&L.
So, the question becomes, how do you de-risk your supply chain without adding even more complexity?
What Outdoor Retailers Can Teach Auto Dealers
Let me shift to a completely different world for a moment.
Look at REI, the outdoor retailer. REI is not just a store; it is a consumer cooperative. Members pay a small one-time fee and in return get access to exclusive savings, special pricing, and an annual member reward or “dividend” that gives them a percentage back on eligible purchases.
That model does two powerful things:
- It concentrates buying power
- It aligns the interests of the organization with the interests of its members over the long term
REI uses its scale as a co-op to negotiate better pricing with vendors, then shares that value back to members through rewards, discounts, and programs that keep them buying within the system.
Now, imagine taking that same co-op mindset and applying it to the way new car dealers buy shop supplies, detail products, service department consumables, and other operational essentials.
That is exactly where Buying Associations like WASCO come in.
WASCO: A Buying Association Built for Dealers
Wholesale Auto Supply Co. (WASCO) is, in effect, a buying association for car dealers that are in New York, New Jersey, PA, and Connecticut.
Instead of each dealership going out to the market alone, trying to negotiate with vendors one by one, WASCO aggregates the purchasing volume of many dealers. That gives them leverage to negotiate better pricing, more favorable terms, and more reliable supply. Dealers gain the kind of buying power they could never achieve individually, much like REI members benefit from the scale of the co-op.
But it goes beyond just better prices.
- Cost Control in a Tariff and Inflation Environment
When tariffs move and suppliers pass through cost increases, a single rooftop has very little negotiating strength. A group that represents many rooftops does.
Buying Association’s aggregated volume allows dealers to soften the blow of cost spikes by securing more competitive pricing on essential goods and services. In a world where input costs can jump by a few percent overnight, that is the difference between holding margin and constantly playing defense.
- Fewer Vendors, Less Risk, More Time
Most dealerships have far too many vendors.
Every extra supplier means another account to manage, another set of terms, another potential weak link in your supply chain. WASCO helps dealers consolidate purchasing into a smaller, more stable vendor set. That means:
- Less administrative overhead
- Fewer invoices to process
- Easier compliance and policy control
- Less exposure to vendor failure
Your people get their time back to focus on customers and revenue, not paper and purchase orders.
- Supplier Stability in an Unstable World
One of the risks that does not make headlines but absolutely hits dealers is the quiet failure of small suppliers. A Tier-2 or Tier-3 company in your supply chain hits a cash crunch and suddenly cannot ship. You are now scrambling to source replacements at higher cost, with longer lead times.
A buying group like WASCO pre-screens and manages relationships with suppliers at scale. Dealers benefit from:
- Vendors with proven reliability
- Backup options when disruptions occur
- More consistent fill rates and lead times
In other words, you get supply chain resilience, not just a cheaper invoice.
- Better Alignment With Where Supply Is Going
As OEMs localize more production and shift supply chains closer to home, the flow of parts and materials will change. Dealers positioned closer to new manufacturing and distribution hubs, or those tied into networks that have visibility into these shifts, will have an advantage.
WASCO is in a better position than any single store to see trends across many dealers and many vendors. That vantage point helps inform:
- Smarter stocking strategies
- More accurate forecasting
- Better timing on when to buy and from whom
You get the kind of supply foresight most dealerships simply do not have the bandwidth to build internally.
Why This Matters Now, Not “Someday”
If you are thinking, “We will deal with this when things calm down,” I have bad news for you.
Things are not going back to the way they were.
Tariffs will continue to be used as policy tools. Semiconductor demand is not going down as vehicles become more connected and more electric. Smaller suppliers will continue to be squeezed by costs, labor, and capital. Reshoring will create winners and losers depending on who is connected and who is not.
2026 is not the year to start preparing, it is the year to already be prepared.
That is why I believe every serious dealer should at least explore the concept of a buying association like WASCO. It takes you from being a price taker in a volatile supply chain to being part of a structured, resilient, and strategically managed purchasing ecosystem.
Marketing drives demand. Supply chain determines whether you can keep your promises.
Buying Associations give area dealers:
- The buying power of a large group with the flexibility of an individual store
- Lower, more predictable costs on essentials
- Reduced risk from supplier failure or disruption
- Fewer vendors to manage and more time back for your people
- A strategic partner that is watching the supply chain, so you do not have to do it alone
If you are serious about tightening up your operations, protecting your margins, and positioning your dealership for whatever 2026 throws at us, this is the kind of structural move that makes a real difference.
Do what smart REI members do.
Join the co-op instead of fighting the market alone.
Then take that same principle into your dealership and join or create a Local Dealer Buying Association like WASCO.
You have worked too hard to let your profitability ride on unstable suppliers and unpredictable input costs. Put a buying association on your side and turn supply chain chaos into a competitive advantage.















