Charles D. Prater started a yearlong term as Chairman of the Georgia Automobile Dealers Association Board in July 2023. He has been an active and engaged member of GADA for years and has served in a number of board positions, including Committee Chair, Secretary, Treasurer and Chair-Elect. He is also the President and General Manager at Prater Ford in Calhoun, GA.

Charles and his wife, Angie, have three children, Charlotte, David and James. James recently started working at Prater Ford and is a fourth-generation Prater in the business.

GADA recently sat down with Charles and got to know more about his thoughts on the current state of the industry, what he’d like to accomplish as Chairman and his life. We would like to thank Charles for his time. The following are excerpts from our conversation. We hope you enjoy getting to know more about him as much as we did.

What are the biggest issues facing the auto industry?
Excessive federal mandates and the effect it has had on the industry is a big issue. It has raised the cost to the consumer. With the Corporate Average Fuel Economy (CAFE) requirements, motor companies have to get a certain average fuel economy for all vehicles they sell, and that’s pushing us down the road into electric vehicles, which is not a bad thing, but there are so many additional federal mandates. These mandates are good to a degree but are often pushed to the extreme. There needs to be a balance.

Inflation and high-interest rates are a big challenge right now. They have caused the price of vehicles to go up so much, both new and used. Just a few years ago, interest rates were between 3-4%; now they’re 6-8%. This increase has impacted car prices along with dealers’ increased rates on floor plans. It’s a challenge.

How do you think the industry will change in the next 3-5 years?
Economists are predicting a recession over the next year or so. That will obviously be a big hurdle for the industry. But whenever the recession passes, I expect relative stability in the market. There is pent-up demand among consumers. Production is up, and customers will get used to paying the higher interest rates. Combining that with motor companies offering subvented rates, the market will settle over the next few years.

EVs will be a big piece of the retail business; there’s a growing market for that. But internal combustion engine (ICE) vehicles will continue to make up a majority of sales for dealers for the time being.

Additionally, I expect to see more domestic production of vehicles and domestic production of parts in the future to hedge against production and supply chain issues.

Why is the franchise system still the best way to sell cars?
Some motor vehicle manufacturers have tried to open up dealerships themselves to sell directly to consumers. Manufacturers that have tried this have realized that the retailing and service end of the business is best handled by the franchise system. To me, it is the best way to go for consumers.

The franchise system creates competition and allows local people to help local clients fulfill their wants and needs in a vehicle. We train our sales consultants to evaluate the situation and help the consumer find the vehicle that best suits them and fits their budget. If you take a genuine interest in their needs, you will have a client for life.

Also, local communities are supported by the franchise system in a number of ways, including sponsorships that benefit activities, civic clubs, the Chamber of Commerce, etc. Dealerships give back to the community, and I think that’s important.

How long have you been a GADA member, and why did you get involved in the association?
Our dealership has been in GADA for decades. Several years ago, I wanted to get more involved to help the association continue, what I consider, outstanding work that supports the franchise system and its dealers. I was asked to serve on the Board of Directors by a dealer friend. He shared with me the benefits and opportunities of getting involved. I told him I was interested, he submitted my name, and I was elected to serve on the board. The rest is history.

What do you see as the benefit of being a GADA member?
GADA provides so many benefits and resources to its dealers; it would be impossible to list them all. The association does a great job representing its dealers on legislative matters. They advocate on behalf of their dealers on franchise law, employment law, tax and fee legislation, as well as many other relevant issues. It provides workers’ compensation, property and casualty, group health, and other insurance solutions for its dealers. These services are designed to fit the needs of franchised automobile dealers and to save them considerable money.

Other benefits include title services, workforce development and business forms to name a few. I don’t think dealers know all the benefits that GADA offers. They do an outstanding job.

What are your goals as GADA Chairman?
My goals as Chairman are to do my part to continue the success that has been achieved by those who preceded me. I plan to support the association and all its endeavors and to promote the viability of the franchise system and dealers in our state.

What help do you need from members to accomplish those goals?
We need all franchise dealers in our state to become members. We have a good majority, but there are still some that don’t participate. We need them to get involved by attending the regional meetings, Dealer Day at the Capitol and the Annual Convention.

We also need every dealer to support the Committee of Automobile Retail Dealers (CARD). CARD supports legislators at the state level concerned with the welfare of franchise dealers. Through CARD, the influence we have by working with these legislators has gone a long way in the past and will continue to go a long way in the future to protect franchise laws and promote the well-being of franchise dealers.

Have you had any mentors? What did you learn from them?
My mentors are both of my parents, Jim and Judy Prater. They taught me that if you’re a hard worker, you will be successful. They also taught me to be honest and forthright. We always went to church on Sundays, where I accepted Jesus Christ as my Lord and Savior. Dad taught me the ropes of how to be a good car guy and a good dealer. I owe my success to my parents raising me properly. I was raised in a good home, and you can’t buy that.

When you mentor others, what are three pieces of advice you would share?

1. Treat people as you would like to be treated.
2. Take genuine concern for the well-being, wants and needs of your employees, friends and clients, and you will gain their respect and trust. It will also help you earn their business. I don’t make friends to sell them cars, but if they know you, like you and trust you, they will come to see when they need something.
3. Attitude and effort are keys to success. I tell my employees that if they come to work with a good attitude and give their best effort, they will have a job for life.

Where were you born? Please tell us about your childhood.
I was born in Rome, GA, which is right next to Calhoun, GA. I lived my whole life here, except for the four years when I was in college. I grew up on a cattle farm, and we had a large garden which was a lot of work — it was a very humble beginning. I learned the value of a hard day’s work. My parents instilled a strong work ethic in me from a young age, which I think is important. I attended Calhoun High School and participated in basketball, baseball, softball and weight training. I really enjoyed sports.

What is your educational background?
I received a bachelor’s in economics from the University of Georgia. To this day, I’m a big Georgia football fan. I follow them regularly — going to the games is a lot of fun!

How long has your family been in the automotive dealership business?
I am a third-generation dealer. My grandfather, Gaines Prater, was in the used car business until he purchased a Pontiac franchise in 1952. He sold Pontiacs until 1957 when the local Ford dealer went out of business. Ford approached him, and since they had a more complete line of vehicles, my grandfather felt like that would be a better scenario. He ended up purchasing the Ford franchise in Calhoun, and we are still in the same location today.

What experience did you have working at a dealership before you became the President and General Manager of Prater Ford?
I grew up in the business. I worked weekends during the school year and spent my summers at the dealership, cleaning up the shop and helping with whatever needed to be done. I’ve worked in all departments, including parts and service. When I graduated from college, I was a salesperson for quite some time; then I got into F&I. After that, I moved into sales management, then General Manager and Vice President. A few months ago, my father retired, and I took over as President.

Any last thoughts?
I appreciate the association allowing me this opportunity to serve as Chairman, and I look forward to the road that lies ahead.