Does TrueCar deserve a second chance?

[Jerry Thibeau]

Doug,

How many of those 60 would the dealer have sold on their own? There are always going to be dealers having success with TC, but if too many start to play it can become a cut throat business. Give TC a good stream of cash and they'll drive more and more traffic to their website. Let them grow and dealers become dependent on TC. It won't be a pretty picture several years from now.

I say put them out of business!

 

[ddavis]

Doug,

How many of those 60 would the dealer have sold on their own? There are always going to be dealers having success with TC, but if too many start to play it can become a cut throat business. Give TC a good stream of cash and they'll drive more and more traffic to their website. Let them grow and dealers become dependent on TC. It won't be a pretty picture several years from now.

I say put them out of business!

Jerry, they wanted to hire me.

They understand the power of the internet. They manipulate their reviews. They leave vehicles up, long after they have been sold. Their vehicles are priced far below what they are willing to sell them for. They have a group of hammers that can close deals. Reading some of the reviews, I believe that the F&I department is more of the same. "Shirt sleeving" contracts, telling the customers that certain F&I products are mandatory with marginal credit, shady business practices. It's an old school, bait and switch type operation.

Have you met people that will not do things the right way? Their Internet budget is far more than anything that I have ever had. Because of the way they conduct their business, their closing ratio, as a percentage of leads, is really poor. At my store in Dallas, we sold a lot more cars on a third of what they are spending (not including TrueCar) and maintained a high CSI. Ironically, this type of store is exactly what TrueCar says they are against. They deserve each other.

 

[tomwhitejr]

I think this might be a good time to bring up a book that ALL should read... The Art of War by Sun Tzu... just sayin'

 

[ddavis]

It is only one who is thoroughly acquainted with the evils of war that can thoroughly understand the profitable way of carrying it on.

 

[Jerry Thibeau]

They understand the power of the internet. They manipulate their reviews. They leave vehicles up, long after they have been sold. Their vehicles are priced far below what they are willing to sell them for. They have a group of hammers that can close deals. Reading some of the reviews, I believe that the F&I department is more of the same. "Shirt sleeving" contracts, telling the customers that certain F&I products are mandatory with marginal credit, shady business practices. It's an old school, bait and switch type operation.

These are the type of people who give our industry a bad name. Their success will be short lived and their day of reckoning will come. A lot of the stuff they are doing is illegal.

 

[ddavis]

These are the type of people who give our industry a bad name. Their success will be short lived and their day of reckoning will come. A lot of the stuff they are doing is illegal.

Jick is a poor substitute for knowledge, skill and work ethic. Having a culture that promotes excellence has to be the norm.

I heard my Grandfather say, "He would rather climb a tree and tell a lie than to stay on the ground and tell the truth". Ridiculous as that sounds, we have all met people like that.

Your question: "How many of those 60 would the dealer have sold on their own?" I never bought leads, even third party leads from the manufacturer. I don't understand why anyone would pay $300, for a lead, and start back of invoice.

Jerry, you and I have a deep respect for salespeople. TrueCar's stated goal is to eliminate them.

 

[Eley Duke]

When it comes to True Car I can't help but think of three very elementary expressions all of us have heard all our lives.

"History repeats itself"

"A leopard can't change his spots"

"Snake in the grass"

just saying.....

 

[yagoparamo]

Yago,

The store that I visited did over 60 cars. If they were all new cars, which I doubt, that is $18,000. Considering their $2000 addendum labels, what would you guess their closing ratio is? The GM told me that they do not accept loosing deals. They are obviously getting plenty of leads.

I don't want anyone to think that I endorse TrueCar or this way of doing business. The others that you name, I don't like them either.

Don't piss Jerry off!

Whether a dealer should use 3rd party leads or not or whether a dealer makes money when selling on a TC program, or Costco, or KBB, etc is a different argument.

We are talking about the change in company's change in business model.

 

[ddavis]

Whether a dealer should use 3rd party leads or not or whether a dealer makes money when selling on a TC program, or Costco, or KBB, etc is a different argument.

We are talking about the change in company's change in business model.

Yago, you are right. They are the same people. Fleas don't add value to the dog.

 

[yagoparamo]

Yago, you are right. They are the same people. Fleas don't add value to the dog.

OK, so that is a valid point. Many of other points were unrelated to TC itself and more to whether you believe on 3rd party leads or not.

I do agree that the person in the room hiding a knife is the one that you need to be watching for.