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What ways could dealers be more transparent, IDEAS anyone?

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#101
RE: "This is all natural business evolution spinning in a world that has been catapulting beyond any level of human imagination since 1900. To think the status quo will remain is wishful thinking, and I feel sorry for anyone who has a fantasy like that. Let's evolve; let's do more!"

And because of this new era we can loose ourselves in the noise that's out there. There are simply so many predictions of new ideas and vendors trying to sell them the basics are being lost. No one who has been in the business for awhile has survived by being a status quo person. But I'll tell you what IS status quo. Selling big ticket items in a negotiating environment with complex credit issues and negative equity will remain a business that depends on relationships.

Before making any wild predictions about the future one should at least become familiar with the Federal Trade Commission. One should also become familiar with the term "disintermediation."
 
#102
  1. Shoppers almost always arrive with more questions than answers.
  2. Shoppers often buy a different car than the one that brought them in.
These are great observations and certainly true, but perhaps not for the reason given.

First, shoppers these days have MUCH more information then before BUT KNOW LESS. The complexity is like drinking from a firehose for them.

Second: Why do shoppers often buy a different car than they came in on? There are a HOST of reasons that aren't likely to be solved by a website. Let's start with negative equity and the consumers' typical lack of sophistication. How many consumers don't realize intuitively that their balance on their trade has to get added back in to the new car loan? How many understand going in that the advance call from the lender, as well as their available cash, or lack of it, dictates what they can and can't buy based on their own budget for monthly payment? There are obviously a host of other issues that determine this but in HUNDREDS of dealership visits over the last 5 years, I've seen this situation time after time.

Often, the consumer blames the dealer for the lender's advance call and their own negative equity. This reflects itself in survey results.
 
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#103
RE:

eBayMotors
GM's Shop-Click-Drive
Dealer.com's Reserve It Now
Carvana
Cox's MakeMyDeal.com

I believe the statement was made that a shopping cart approach would be illegal. I can't address any of the above other than GM's Shop, Click, Drive, an abject failure despite GM's attempts to put a positive spin on it. A dealer COULD legally have a shopping cart option on his/her website and NOT be in contravention of any laws UNLESS there was some brokering somehow involved that might conflict with laws in certain states. Since we are told that consumers OVERWHELMINGLY want this option, I am waiting for some dealer somewhere to put a shopping cart on their site so we can observe the data. Of course, if it is a wild success, why would a dealer rush to tell competitors of the success unless he can find a way to make money by selling the concept and charging consulting fees to implement it.

I repeatedly caution dealers about paying attention to surveys produced by companies who merely want to "prove" their own agenda.

OEMs would be in contravention to their own Sales and Service Agreements with their dealers. Can anyone tell us why an OEM would back stab its own partner dealers by circumventing them even if there were no franchise agreements in place?

Regarding a dealer shopping cart and delivery to a customer's home: Who is familiar with the various Right of Recision laws in the various states? Those of you with AFIP certification know chapter and verse on this. Yes I know, there are dealers who have certain money back guarantees under tightly controlled conditions. Imagine if this becomes wide spread and the scammers come to the party in numbers. Who has worked out how to unwind a deal when sales tax has already been paid, license plates purchased, title work completed, etc. What if the trade is sold? Will dealers now have to have a moratorium on selling trades for a period of time because of some Right of Recision consideration? In many states dealers don't have the latitude to hold up title work because of some money back guarantee or Right of Recision situation.

There ARE quite a few operators around the country who SUCCESSFULLY use a non standard approach to new vehicle auto retail. In Texas, there are huge lease facilitators who do business out of offices without inventory. They have no storage and display lots. They have no new vehicle franchise. They are charactized by the fact that they produce enough gross profit per deal to pay their producers well. They are staffed by GM and or F&I Director caliber people who don't turn over every 90 days. Why can't their business models be consistently duplicated? Many have tried. Answer: Imagination and Discipline.
 
#104
RE: "If Amazon sold Subarus I would have bought mine there and had it shipped like everything else I buy."

And you would be able to ACH the money to pay for it? Who eats the VISA/PayPal charge? You or Amazon?

I guess you would have no trade. When was the last time anyone traded something in to Amazon, especially something with negative equity.

If Amazon sold Subarus, they would have to have a franchise agreement with Subaru that would conflict with Subaru's Sales and Service agreements with all of their dealers nationwide. What are the chances of that happening?

Why are we even talking about this ridiculous stuff that's not going to happen.
 
#105
RE: No thanks, you had your chance.

Next."

We can all make wild claims that can't be proven false. Its one thing to claim auto retail will change. No kidding. To tell us what that's going to be based on consumer surveys? Let's wait until we see consistent results before claiming victory and taking a victory lap.

Hell, we have people out their claiming we'd be doing 22 million SAAR or so if we could just get the "friction" out of auto retail. Can't prove them wrong, right?

Just ask a simple question. Are the people making claims like this actual owner operators of car dealerships, or are they trying to sell something?
 
#106
ruggles said:
RE: "If Amazon sold Subarus I would have bought mine there and had it shipped like everything else I buy."

And you would be able to ACH the money to pay for it? Who eats the VISA/PayPal charge? You or Amazon?

I guess you would have no trade. When was the last time anyone traded something in to Amazon, especially something with negative equity.

If Amazon sold Subarus, they would have to have a franchise agreement with Subaru that would conflict with Subaru's Sales and Service agreements with all of their dealers nationwide. What are the chances of that happening?

Why are we even talking about this ridiculous stuff that's not going to happen.
Click to expand...

I use Amazon as an example because they experimented and dabbled in the earliest form of this concept (not quite selling).

http://autoweek.com/article/car-news/buy-nissan-versa-note-through-amazon-sort
 
#108
RE: "I may be taking your post wrong, but I get the feeling you're taking some shots at mine. However, it definitely seems like you're not comprehending what others are saying in this thread. @Ed Brooks mentioned, earlier, that a dealer's profit isn't a concern to the consumer."

I often don't know who I am replying to. I typically respond to a comment. Ed is wrong if he says consumers aren't concerned about a dealer's profit. I don't know where he is coming up with that. Don't tell me, another survey? But my comments are primarily concerning "Transparency." What it is. What it isn't. And why we don't get to make up our own definitions and expect consumers to believe us.

RE: "Are you saying that we shouldn't change a thing, but rather should just make our sales people better negotiators? "

I am saying that auto retail has been changing/evolving for the time I've been in it and have studied it. AND YES, we DO need to establish systems that make out dealerships better negotiators. Pretending not to negotiate is just another way to negotiate. Our business is what it is. Get used to it and get good at it. If you want to really get rid of negotiation, start a lobbying campaign with the FTC. Then eliminate trades. While you'Eschewre at it, get rid of negative equity. We sometimes have to negotiate a lower selling price and make it up on the back end and trade in. Of course, if you want to send those deals down the road your competitor will love you for it.

If you think it works for you, eliminate the fat deals and pass the skinny ones and see if you can make it up in volume. Good luck with that.

RE: "Sorry....we've been trying to do that since Henry Ford's assembly line made the car something for the masses."

Trying to do what? Get consumers to like the negotiation? Why are you even worried about that? Do it one customer at at a time, and do it better than your competitors, and you'll do fine.

OR, if you think it works for you, post your prices on your new cars and make it easy for your competitors to use your own info against you. Remember, the Ford Collection was spun a a great success, except it lost millions of dollars before Ford pulled the plug. The few consumers who bought from TFC were thrilled. Even more thrilled were the dealers on the fringe of TFC. Disappointed were those outlying dealers when real dealers took back over.

Why do people keep trying this crap? Better yet, why do certain vendors keep trying to promote it?
 
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