Uncle Joe's Make Over Diary

[joe.pistell]

Back in June, I wrote:

Used Car Volatility Index... someone needs to build this​

Used Car Volatility Index... someone needs to build this

The two charts in the prior post (gasoline, wholesale and retail) speak to the lag that exists in wholesale and retail prices, the same thing happens in used car retail, only far bigger and far more important. IMO, the shopper data seen in the big 3 marketplaces must be 'worked' as they can see into demand weeks before it becomes a sale.

Because used cars turn so slowly, buying the car right can make or break your P&L. Someone needs to build a far more robust vehicle pricing tool that 'sees' all of the data that human beings cannot see.

 

[joe.pistell]

Wall Street Valuations.
Here's an interesting chart... Car Dealers vs Carvana

In the depth of the covid panic, what if you bought $1000 worth of Cavana and $1000 worth of a basket of big car dealers like Lithia and penske (full list below).

Your Carvana investment is now worth $940 (blue line)
Your basket of car dealers' investment is now worth $2700 (red line)

Think about it.

Red line = the following dealers:
Asbury Automotive Group, Inc. (ABG), AutoNation, Inc. (AN), Group 1 Automotive, Inc. (GPI), Lithia Motors, Inc. (LAD), Penske Automotive Group, Inc. (PAG), and Sonic Automotive, Inc. (SAH).

 

[joe.pistell]

This post is a keeper, I wanted to make it easy for me to find so I copied it here. Sorry for the dupe
https://forum.dealerrefresh.com/threads/are-traditional-website-form-submissions-dead.9432/post-66113

I'd love to make a chat system that could really help shoppers down the funnel. Hi-level Building Blocks:​

• Site awareness(Page/path/visit count, etc).
• Car Smart.Vehicle segment, trims, packages, options are all semi-structured data*.
• Payment Personalization. Shoppers simply want the most car for the least payment. If you don't nail this, you'll miss the target.
• Trade-in Personalization. Create ability to allow shopper to easily establish a tradein range and payoff. Accutrade is quite amazing in this area.

 

[Tallcool1]

@joe.pistell I don't like doing this type of thing because I generally get long winded and end up suffocating the general idea that I am trying to convey. I will NOT do that here.

I personally want to thank you for all of the help that you have (perhaps unknowingly) provided me and my store. When I found DR, I was fresh out of a 20 year gig as the CFO of a dealer group. While I understood the car business (I started in sales and was a finance director), I did not understand how my website would ultimately help to shape my dealership into what it is today. A customer can study my website and find exactly what they see online in the actual dealership. While this was a long play, I am comfortable to say that it was the right way to go. You helped me capture the spirit of my store on my website, and my customers know it.

More importantly I appreciate your willingness to help the small dealers and newcomers. Nobody was too small or insignificant to deserve your time and attention.

Thank you Uncle Joe.

 

[Viracocha]

Wall Street Valuations.
Here's an interesting chart... Car Dealers vs Carvana

In the depth of the covid panic, what if you bought $1000 worth of Cavana and $1000 worth of a basket of big car dealers like Lithia and penske (full list below).

Your Carvana investment is now worth $940 (blue line)
Your basket of car dealers' investment is now worth $2700 (red line)

Think about it.
View attachment 7434
Red line = the following dealers:
Asbury Automotive Group, Inc. (ABG), AutoNation, Inc. (AN), Group 1 Automotive, Inc. (GPI), Lithia Motors, Inc. (LAD), Penske Automotive Group, Inc. (PAG), and Sonic Automotive, Inc. (SAH).

Here's a very interesting article about them on Seeking Alpha, From November 2021. The author has been bang on so far, and does a great job at explaining what's happening in laymen's terms. Cheers

Carvana: A Ponzi Collapsing (NYSE:CVNA)

Carvana is controlled by a felon with +25-years experience running similar cons. Ernie Garcia II is the smartest guy in the room. A Ponzi always ends the same way, for the same reason.

seekingalpha.com

 

[joe.pistell]

@Viracocha, this writer is a troll. He/she is a short seller, or, is employed by one. Look at the body of work this "player" has produced. https://seekingalpha.com/user/767332/instablogs Only 5 articles, all anti-CVNA. It's a boutique industry as old as wall street, Content generation for Short sellers.

Yes, CVNA has problems, BIG problems, but this troll produces a narrative that is so emotional, so one sided it's useless.

That being said, I'd love to talk about CVNA's BIG PROBLEMS.

 

[joe.pistell]

I personally want to thank you for all of the help that you have (perhaps unknowingly) provided me and my store.

@Tallcool1 I love to make that cash register ring!!

Dude, I ck'd your site, your reviews are off the hook!

Remember, there are 2 kinds of customers.

1. Those that know you.
2. Those that dont.

Reviews help you sell #2, those ppl that don't know you. Find a way to get your ratings on you site and into your listing pictures.



CarGurus


Work DealerRater too
DealerRater - Car Dealer Reviews, Car Dealer Directory, Vehicles For Sale, Vehicle Recalls



I love this on your VDP

Your reps KILL IT on your reviews. If they're great employees, think of friendly ways get them into your Vehicle pics (no pushy sales pitches)

Hope This helps
Joe

 

[Viracocha]

@Viracocha, this writer is a troll. He/she is a short seller, or, is employed by one. Look at the body of work this "player" has produced. https://seekingalpha.com/user/767332/instablogs Only 5 articles, all anti-CVNA. It's a boutique industry as old as wall street, Content generation for Short sellers.

Yes, CVNA has problems, BIG problems, but this troll produces a narrative that is so emotional, so one sided it's useless.

That being said, I'd love to talk about CVNA's BIG PROBLEMS.

The author definitely has it out for them, but his math checks out. Very hard to sustain model at a time when money comes at a premium. That, along with a melting iceberg of inventory is what I consider to be their biggest challenge!

 

[joe.pistell]

Now we're talking BIG problems I'll add

1. "selling cars is easy, making a profit selling cars AINT easy".
2. They've got a great brand, the title problems has to end fast.

My tea leaves prediction
WIth the "Used Car Desert" coming and new car supply rising, and the difficulty of making profits from sales, watch CVNA pivot to become more of a retail consignment marketplace and grow ADESA's biz.

 

[Viracocha]

That's actually a great prediction Joe, I am not sure you are wrong!