From Paint to Profits: How XPEL Drives Value for Dealers

XPEL appears to be hitting its stride. Rivian, Tesla, Kia America and other automakers — along with a growing number of dealers — are embracing the paint protection, tint and ceramic coating provider, forming and expanding partnerships that highlight the product’s rising demand.
The timing makes sense.

With S&P Global reporting the average age of vehicles on U.S. roads has reached a record-high 12.6 years, drivers are increasingly seeking ways to protect and preserve their vehicles. At the same time, automakers and dealers, facing shrinking incentives and dipping profits, are turning to ancillary revenue streams. XPEL is a prime example of a solution that benefits both parties.

“We’ve seen a lot of customers choosing to get the paint protection,” says Paul Norgrady, general manager of Porsche Main Line in Newton Square, PA, one of about 1,600 dealerships that partner with XPEL . “It’s really like protecting an investment.”

For high-end vehicles like Porsches, XPEL’s paint protection offers more than cosmetic benefits. Sports cars, with their low profiles and aggressive styling, are especially vulnerable to rock chips and road debris, which XPEL products protect them from. But XPEL’s appeal isn’t limited to luxury brands. Dealers like Chapman Automotive Group, which operates in Arizona and Nevada, also use the product to protect mainstream models.

The growing demand for XPEL’s products was evident at the recent SEMA (Specialty Equipment Market Association) Show, where attendees saw the technology firsthand. Highlights included a 2024 Kia Sorento SUV featuring XPEL’s STEALTH Paint Protection Film, PRIME XR PLUS nano-ceramic window film, and FUSION PLUS ceramic coating. Another standout display featured XPEL’s new Windshield Protection Film applied to a Tesla Model 3.

Even automakers are deepening their commitment to the product. Rivian, for instance, offers full-body, factory-installed XPEL PPF on select models and recently expanded the collaboration with a new XPEL Paint Protection Film and Window Film customization program

“With this extended collaboration, we’re encouraging Rivian owners to be as adventurous as their vehicles,” says Anthony Pecaski, XPEL’s senior manager of key accounts. “This program allows for enhanced protection and customization to keep their vehicles looking great throughout the ownership experience.”

Why This Matters for Dealers

As dealers look to offset declining sales profits, products and services under the Fixed Operations umbrella have become a lifeline.

Net pretax profits for the average franchised dealership fell 33.4% in the first half of 2024 compared to the same period in 2023, according to NCM Associates. That marks a 50% drop from 2021 levels.
Fixed operations, however, remain a profit center. Mercer Capital’s 2024 Mid-Year Report notes that parts and service consistently deliver the highest gross profit margins for publicly traded dealer groups.

But the quality of those fixed ops offerings matters.

Those touring XPEL’s facilities in San Antonio see that first-hand. Everything from the development to training and storage of the patterns that are customized for each model serviced is meticulously managed. Visitors don white lab coats to explore areas dedicated to the development, application and storage of XPEL’s tint, paint and windshield protection products that are perfectly designed to fit specific car models.

Training is another critical component of XPEL’s strategy. Dealers can choose on-site or off-site training for their staff. Tours often include a mini-training session, where visitors can apply some product themselves.

 This hands-on approach highlights the precision required for application and showcases the products’ unique features, including self-healing properties that allow minor scratches to disappear with heat.

Customers Know the Value

Many consumers learn about XPEL film products — most of which require professional installation — at dealerships.

They are especially interested in the various configurations – such as what area of the car can be protected and the benefits of such protection. One example is the painted area by the door handle, which is easily scratched with rings and other objects. That customization makes all the difference in buyers’ attitudes.

“This isn’t something that needs to be sold as much as presented,” says Norgrady. “Most people, especially on the sports car side, are already familiar with it. It’s not a hard sell.”

As automakers, dealers, and customers converge on the need for vehicle preservation, XPEL’s innovative offerings seem perfectly positioned to meet the moment.