CARFAX - What Are You Thinking?

[Brian Pasch (blog)]

From a number of clients that have called me,, it looks like AutoCheck will be having the best sales month in the company's history in May 2010.

The fact that CarFax did not respond to Alex's questions, when they said that they would is telling.

By their actions, some might even say that this forum of passionate dealers is NOT worthy of interaction, comments or engagement.

Now, what else can you feel when they ignore a social media engagement?

 

[Rob Fontano (blog)]

They seem to be focusing their efforts on defending the product and how it benefits everyone, instead of opening a dialog. It seemds that they have not learned what most large companies have known for several years, that you cannot ignore blog posts until they go away. Just ask Michael Dell what happens when you bury your companies head in the sand while your customers scream.

 

[Troy Shields]

@Patrick... you have 71 vehicles that this "devalues" by a grand total of $240 dollars!?

What am I missing here? Either, on average, the cars on your lot are priced right were they should be "on average" and your sales people do not understand the how to handle a third party question/objection OR your dealership will not discount the 71 cars on your lot by an average of $3.08 to sell them.

It looks like CarFax is helping you in this case.

 

[Troy Shields]

CarFax is just adding value to it services (kind of like we should in the car business). We just want to continue to so the same crap over and over and expect to make more and more money. Then when we see empty bank accounts and small commission vouchers we, like so many of our customers who buy below invoice, point the finger at everyone but ourselves.

I guarantee you that the figure on the CarFax report is way more than a customer would offer on their own most of the time. Then again, I also bet that you will get an offer lower than the number on the CF report 9 out of 10 times.

So really, is the problem the figure on the CF report or the value in the customer's mind.

 

[Patrick (blog)]

@Troy... Sure, if I found a customer to buy all 71 vehicles at the same time for the magical "book value(?)" carfax pricing, then yes, I would surely thank them.

Otherwise, I like to keep brain damage to a minimum, personally.

 

[Mark]

We've been happy AutoCheck customers for some time. The "objection" of showing an AutoCheck report vs. CarFax is quickly and easily overcome, just like if you hand someone a generic tissue when they ask for a Kleenex. What they really wanted was a tissue, just like what they really want is a history report.

eBay switched their integrated reports to AutoCheck - and according to Nielsen net ratings - eBay Motors is the #1 trafficked automotive website - so look for AutoCheck to gain brand recognition ground on Carfax rapidly.

The only real drawback is the exclusive agreements CarFax holds with sites like AutoTrader.

 

[Mark]

BTW, CarFax is aware of this post - I got a .pdf from an unnamed sales person that included text about "what dealers are saying" about this new product -that was copied and pasted from Troy Shields comments as 'unknown dealer'.

 

[Troy Shields]

@Mark, could you forward me that pdf? I really don't appreciate CarFax trying to make a case off my post. Although I can handle a pricing tool objection, I still feel that they are acting very Steve Job/Apple -like in not telling dealers and/or buyers where their information is coming from.

I guess if they told us they were using Blue Book, NADA, or other base-line pricing that they would have to pay up on some royalty money like htc did with microsoft last week.

email: [email protected]

 

[Mitchell Brenner]

Here's the CarFax spin. We dealers love it according to them:

What Dealers Are Saying About CARFAX® History Impact™

Version: 05/03/10

Dealer Testimonials:

John Donnelly, Findlay Automotive

Jeff Prince, Internet Manager, Lou Fusz Automotive Group

Tim Mort, GM, Chapman Automotive Group

“Before putting any car on our lot, it’s important for us to know what a customer might expect to pay for

that car. The CARFAX History Impact gives a clear understanding of how information reported to

CARFAX adjusts the retail book value that our customers already use in their research.We’re confident

that our vehicles are priced competitively in the market and we’re holding gross on each sale.”

Dealer Blogs:

Terryville Chevrolet:

This feature is a closing tool and really hurts nobody smart enough to use it that way...

Lets say it says a vehicle is worth $350.00 less than book value.

How does that hurt you at all?

Unless you own the vehicle for way too much $$$ it is not going to hurt to sell the vehicle for $350 under

a book value that does not even exist.

I think this was implemented as a closing tool to get people into a buying mindset and out of a shopping

mindset. It assures them it is a safe bet and a good deal to purchase that vehicle for $x.xx +/- "book

value".

Park Place Dealerships:

I could not agree more with these statements - This is an opportunity, not an obstacle.

In fact, the last time I checked, a good salesperson welcomes objections so he/she can overcome them

on the road to the sale. If you are the dealer then you have the CARFAX value information at your

fingertips and can plan the proper responses to any objections.

Aren't most of your cars priced competitively for the market? Can't you justify/back up the reason your

car is slightly more expensive?

Did you know that you can plug in whichever of the "book values' you select? How many instances will

there be where the CARFAX pricing adjustment is in your favor as a dealer? Don't you already use the

CARFAX as part of the sales process to enhance value?

Our CARFAX representative has been in constant communication with us about this change for almost

two months, so it is absolutely no surprise to us.

I am surprised by some of the names on this forum who are opposed to this additional bit of information

being supplied to the public - what happened to 'transparency' and 'openness'?!?

What Dealers Are Saying About CARFAX History Impact Page 2

May 3, 2010

@ Joe - Are you saying that people asking for a Kleenex is a knee jerk reaction to a need to wipe their

noses? I think you might be missing the bigger issue...what is wrong with associating your brand with

another nationally recognized and respected brand?

Unknown Dealership:

@Patrick… you have 71 vehicles that this “devalues” by a grand total of $240 dollars!?

What am I missing here? Either, on average, the cars on your lot are priced right where they should be

“on average” and your sales people do not understand the how to handle a third party

question/objection OR your dealership will not discount the 71 cars on your lot by an average of $3.08

to sell them.

It looks like CARFAX is helping you in this case.

CARFAX is just adding value to it’s services (kind of like we should in the car business). We just want to

continue to so the same crap over and over and expect to make more and more money. Then when we

see empty bank accounts and small commission vouchers we, like so many of our customers who buy

below invoice, point the finger at everyone but ourselves.

I guarantee you that the figure on the CARFAX report is way more than a customer would offer on their

own most of the time. Then again, I also bet that you will get an offer lower than the number on the

CARFAX report 9 out of 10 times.

So really, is the problem the figure on the CARFAX report or the value in the customer’s mind.

 

[Mitchell Brenner]

That's why I don't believe testimonials. How about putting all the negative blogging going on in their testimonials and give a true picture of what dealer's actually think? I don't expect this to cost us any sales and I certainly know our inventory well enough to know we'll never be hurt by the info shown. That's not the point. It's that CarFax took it upon themselves to "add" this value and if we, as dealers, don't want it, too bad! I also believe the information has no validity in the real world of the auto business. I'm sure the stuffed suits in corporate loved the idea (as long as they never have to be in a dealership dealing with the negative ramifications this WILL eventually bring) Remember, the more information we give the customer the more they think they know. We all, in the actual car business, know that a little knowledge is dangerous and if we don't know where these arbitrary numbers are derived from, how can our customers know? It's top secret CarFax information (I see the guy in the lab coat now with his evil laugh just making up numbers as the reports are run)

If CarFax wants to present the truth then they need to put up the negative and not just the positive from the 2 that do out of 10,000 dealers that don't like this.

Again, do I think this will cost us sales? No! Does that matter to me? No! I just think it's another layer thrown over what are too many as it is! I am also worried to the fact that as all the vendors try to one up each other with the next great "enhancement" we will see someone posting what customers should pay for each vehicle in the country and we will be watching used car profits go the way of the dodo bird (and the new car department)