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Carvana to acquire ADESA

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ryan.leslie

ryan.leslie

One of the good guys
Apr 20, 2009
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#1
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#6
That is horrible news.

Subaru uses Adesa for lease end purchases, I am sure other manufacturers do, as well. So, either we don't give them a cut through lease end purchases, or we let them have the cars, and lose that opportunity.

Otherwise, would be great to just stop buying & selling on Adesa, to prevent them from getting that revenue & inventory opportunity.
 
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#9
ChrisR said:
That is horrible news.

Otherwise, would be great to just stop buying & selling on Adesa, to prevent them from getting that revenue & inventory opportunity.
Click to expand...


Agreed. If dealers aren't wise and continue to work with these companies and services, they are going to cancel themselves. I wonder what percentage of dealers are owned and operated by the boomer generation (with no one at the helm to take over) will simply NOT care?
 
#10
ChrisR said:
That is horrible news.

Subaru uses Adesa for lease end purchases, I am sure other manufacturers do, as well. So, either we don't give them a cut through lease end purchases, or we let them have the cars, and lose that opportunity.

Otherwise, would be great to just stop buying & selling on Adesa, to prevent them from getting that revenue & inventory opportunity.
Click to expand...
Jeff Kershner said:
Agreed. If dealers aren't wise and continue to work with these companies and services, they are going to cancel themselves. I wonder what percentage of dealers are owned and operated by the boomer generation (with no one at the helm to take over) will simply NOT care?
Click to expand...
This is something that is very frustrating to me. The dealer body will simply not band together for the greater good. I could get 95 of my buddies to not support their biggest competitor and certainly the business model that poses a serious threat to the family owned single point. But then there will be 5 that just won't care about the greater good and they would slide in there and support them at a compressed price (due to the lack of competition). A few months later that number would grow to 50%, and pretty soon we would all be there helping our competitor push us to the brink of extinction. Why won't Car Dealers realize that they are the Customer in the transaction and understand that they control the whole thing. Without dealers, the auction does not exist. @ChrisR talked about Subaru and Adesa, but we all know what will happen to that relationship if dealers won't do Adesa...Subaru will find a new alliance.

I know, I am being a drama queen here with my overreacting. Or am I? Wal-Mart, Amazon, Uber, and this list goes on.

I can imagine myself retired and sitting on my plastic covered couch 25 years from now reading an article about the demise of the small car dealer. The article will reference Wal-Mart and Amazon, maybe Uber too. But the author will point out the biggest difference. Carvana convinced the car dealers to actually run themselves out of business by funding the company that ruined them.

I'm hanging my hat on the idea that this Inter Web is a fad and will pass. Once that happens, these e-commerce car guys are going to be in a world of hurt. Ya heard it here first.
 
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