- Feb 11, 2015
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Maybe, but it's hard to tell exactly. That does happen quite often with technologies and business models outside of automotive.
BREAKING news! Carvana & Vroom is bleeding cash. Is Ecommerce in auto DOA?
- Thread starter joe.pistell
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Only time will tell, but I have a theory.
There is a psychological need that is not fulfilled digitally. It can be scratched, but not satiated. That psychological need is reassurance.
Cars are deeply emotional purchases for Americans. A car is a reflection of our personality and almost a part of our soul. We care about the styling it conveys while appreciating the comforts it delivers daily. Few tangible products become such a part of us. And before we fully commit to bringing this new car into our lives we need someone else to tell us we are making the right decision. We seek out other people to make final buying decisions. Car salespeople are simply mercenaries in our brain's approval system; a "pat on the butt to give us that final nudge" for hire.
A website doesn't pat you on the butt the same way.
And this is where we, car people, take ourselves for granted. We get excited about the new shiny object and forget that our practice was forged in the hay and manure of horse traders. We also forget that this is a people business.
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In our Car Dealer universe, the winds of change are no longer afar, it's all around us and it's getting organized. I agree with Ed, the shift is coming to People and Process (because that's what tech is aimed at).
- Jan 1, 2013
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I think that Joe's comment and Ed's video nail it. The technology is difficult but a much easier part of the process. What is needed is the willingness of dealer's to modify their existing sales model, processes and culture to align with the reality of digital retailing. That won't be easy and I suspect that most dealers won't be willing to do it until they are forced to do it.
Adding digital retailing, no matter how whizzy the technolgy is, to a traditional sales model, is a recipe for failure.
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2nd Gear: Nikola Sues Tesla Over Truck Design
https://jalopnik.com/the-lie-that-makes-uber-possible-just-got-cut-down-1825711489
- Feb 11, 2015
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So, I found a specific 2015 Used Lexus GX 460 that my wife wants. I ended up going through Truecar, which put me in touch with Vroom only to see that big fat $499 shipping cost. I get that they have to make profit and all, but shouldn't that be outside of the shipping rate? I guess they could gouge me any which way, but sheesh... that is fairly blatant.
So, I found a specific 2015 Used Lexus GX 460 that my wife wants. I ended up going through Truecar, which put me in touch with Vroom only to see that big fat $499 shipping cost. I get that they have to make profit and all, but shouldn't that be outside of the shipping rate? I guess they could gouge me any which way, but sheesh... that is fairly blatant.
How far away are you from Dallas?
- Feb 11, 2015
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18 h 10 min (1,220.5 mi) by vehicle. Doesn't matter, is Vroom planning on charging $500 to the entire North East or cities at a distance? Seems like a lot to me. Why not go local?
Seems like a pretty reasonable quote to move a single car 1200 miles
Sure the decision to go local could make sense but I would imagine the reason you found them originally is that there wasn't a compelling value proposition locally. Possibly now with the full picture you can reevaluate that.
Having regional pools of inventory the way Carvana does would potentially alleviate some of those more expensive moves but CarMax has always charged customers for long distance transfers of inventory.
That's definitely new(ish). That was historically a big part of their value statement. I've asked them in the past about shipping or picking up a vehicle in the case fo a return from South Florida and the only applicable charge kicked in if you were over the mileage allotment but within the timeframe for a return. Otherwise, there were no separate "shipping" charges.
*edit*
Also worth noting that this may have something to do with the shuttering of their Indianapolis operations earlier this year.
*edit*
Also worth noting that this may have something to do with the shuttering of their Indianapolis operations earlier this year.
