Used cars and all the many tools

[ryan.gerardi]

At DD20 last week there were 5 exhibitors with solutions for used car departments. With exception to one, each of them was designed for dealer-to-dealer trading.

When I talk with the buyers at dealerships they are normally in the middle of working a deal or at an auction. Most are comfortable in how they do things. Most seem to have little issue acquiring vehicles they need, be it from auctions, vehicle trades, or dealer trades.

Despite these tools being smarter, more user-friendly, and from a practical viewpoint quite handy, are the guys in the trenches inclined to utilize them to their fullest capabilities or will they cling to what they're doing in the years to come?

 

[joe.pistell]

#MoneyBall
Same story, same ol' guys, same biz intelligence, just a different industry.

 

[ryan.gerardi]

Still haven't seen that movie @JoePistell and I'm sure I'd love it.

 

[joe.pistell]

Still haven't seen that movie @JoePistell and I'm sure I'd love it.

VAuto was founded on the MoneyBall premise. After reading the book in 2007-8, I ran to Dale Pollak and told him how the vAuto concept was an exact mirror of MoneyBall. He smiled and said "I gave a copy of MoneyBall to all my key ppl and my investors, it's a must read". Damn... beat by Pollak again

Here's lil' deeper look into Money Ball

http://video.foxbusiness.com/v/1162464104001/the-science-behind-moneyball/?#sp=show-clips

When they talk baseball players, think used cars At 4:10, they talk about how 'dynamic' markets are and yesterday's great ideas are today's common ideas (read: no advantage). This is the vAuto/MoneyBall paradox. You farm data for undiscovered jewels, if you're lucky, no one catches on. But, once the competition wakes up, the easy money is gone and you gotta keep farming every day to keep ahead of your competitors. The framework is just like PPC.

 

[Tallcool1]

I personally believe that there are many different factors involved.

Some people just plain and simple like to go to the auction. They like to hang out with their buddies. They like the atmosphere.

Some people are not comfortable purchasing vehicles that they can't see. Pictures, videos, arbitration agreements, you name it. Tons of buyer protection available, but they just aren't comfortable with it.
Old habits are hard to break.

In the past few months, we have gotten ourselves into a couple of dealer to dealer networks. The first couple of months we spent a lot of time just looking at vehicles. Maybe make an offer here or there.
The next month we started buying. I admit that it was scary at first. My idea of "front line ready" is not what another person's idea is. This makes it hard. However, we have not gotten a surprise yet.