Thanks for the heads up. Some days I have a lot more blogs going that I should and I lose track of whether I am replying to email, posting on AutosandEconomics, TTAC, FB,DS, and a host of others. In my spare time a try to write columns and have a life. Until some health issues took me off the road, I visited hundreds of auto dealers and lenders. Each of these venues has somewhat different formats. I generally go with what I can figure out the quickest. TTAC drives me crazy. I see the "Reply" button and will try to remember to use it.
What ways could dealers be more transparent, IDEAS anyone?
- Thread starter Jeff Kershner
- Start date
RE: "No @ruggles, it is been driven by the mega dealer groups - the AutoNations, the Sonics, etc. and the manufacturers like Toyota and GM. The vendors are just scrambling to provide solutions to the smaller dealerships who don't want get left behind."
No Ed, you confuse messaging with reality. The first priority of the people you mention is still gross profit and market penetration, not transparency. Transparency is a marketing claim designed to convince consumers we are telling them everything. We're not, and we're not going to, BUT if you want to be the first, we'll love to see your data.
BTW, manufacturers don't retail cars. When they make the attempt, it doesn't work out. Perhaps you haven't noticed that. Vendors are trying to pitch the allure of "getting ahead of the curve." The money wasted on failed initiatives is epic.
You also confuse the announcement of a new initiative with a successful initiative. They are two different things.
No Ed, you confuse messaging with reality. The first priority of the people you mention is still gross profit and market penetration, not transparency. Transparency is a marketing claim designed to convince consumers we are telling them everything. We're not, and we're not going to, BUT if you want to be the first, we'll love to see your data.
BTW, manufacturers don't retail cars. When they make the attempt, it doesn't work out. Perhaps you haven't noticed that. Vendors are trying to pitch the allure of "getting ahead of the curve." The money wasted on failed initiatives is epic.
You also confuse the announcement of a new initiative with a successful initiative. They are two different things.
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- Joe
ruggles,
Maybe you're onto something! You could start your own online community & call it DealerRuggles!
Let's talk about you.
Your comments are always about selling cars, but, all you ever do is defend the status quo. I'd like you to become an asset to our community. Please share a few of your new car selling ideas with our community.
Many of these vendor-funded consumer studies aren't completely self-serving. Speaking as ex-AutoTrader guy, yes ATC cares about selling more advertising, but they have zero vested interest in the number of photos you include on your listings or in the information you include in your comments -- they simply want to help dealers make their advertising as effective as possible. So when they release a study about consumer habits, there may be a whole lot of truth there -
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ruggles,
Maybe you're onto something! You could start your own online community & call it DealerRuggles!
Let's talk about you.
Your comments are always about selling cars, but, all you ever do is defend the status quo. I'd like you to become an asset to our community. Please share a few of your new car selling ideas with our community.
Some questions: Isn't the purpose of auto retail to sell cars and make gross profit?
How would you characterize the "status quo" you say I'm defending? I'm pointing out facts on the ground. If that's defending the status quo, color me guilty as charged. Are you in denial about the existence of the FTC and their mission? Do you think auto retail isn't about sales and gross profit? Are you trying to make the case that if a little transparency is good, more is better? Are you trying to make up your own definition of the word "Transparency?" Do you think the franchise system is outmoded? Do you think traditional sales people should be replaced by clerks? Do you think all consumers should pay the same margin? Do you think it is wise to post your non negotiable price on new vehicles online? Would you agree that divulging your triple net cost to consumers would be the ultimate in transparency? Are you looking to create an "efficient market?" If so, do you have any understanding of what disintermediation is?
Whatever it is, what's your motivation? Are you out to save the world, or to make a buck, or as Scott Painter would say, both?
How would you characterize the "status quo" you say I'm defending? I'm pointing out facts on the ground. If that's defending the status quo, color me guilty as charged. Are you in denial about the existence of the FTC and their mission? Do you think auto retail isn't about sales and gross profit? Are you trying to make the case that if a little transparency is good, more is better? Are you trying to make up your own definition of the word "Transparency?" Do you think the franchise system is outmoded? Do you think traditional sales people should be replaced by clerks? Do you think all consumers should pay the same margin? Do you think it is wise to post your non negotiable price on new vehicles online? Would you agree that divulging your triple net cost to consumers would be the ultimate in transparency? Are you looking to create an "efficient market?" If so, do you have any understanding of what disintermediation is?
Whatever it is, what's your motivation? Are you out to save the world, or to make a buck, or as Scott Painter would say, both?
There isn't a single value proposition, or thing about AutoTrader that isn't self serving. From the beginning I found it as a company that spins any argument into how they on our dealers side. The business model and how listings are displayed do not favor dealers. Add in high funnel buyers and major competition. AutoTrader is one of the worst digital solutions out there. Fact.
My own personal opinion is about Cox Automotive more than just Autotrader. I am a great admirer of Manheim Auctions. Anything that has to do with auto wholesale is all right with me. I have been a great booster of vAuto when it emerged as a player. Dale Pollak wasn't visionary, he merely saw what was going on, articulated it well, and executed a great plan for dealing with the evolution of the used car business. He introduced the concept of efficient markets as he saw it applying to the used vehicle business but didn't take it all the way to disintermediation, something he left out on purpose or didn't think applied. You'd have to ask him. Now vAuto thinks dealers should pay them to price their entire new vehicle inventory at a discount, or "market based" pricing as they call it. Yup, you pay them to give away your gross profit on new vehicles. In my mind, there must have been pressure from Cox to produce a new revenue stream. And this is it. Its been a big credibility loser for me.
Dealers are their own worst enemy. And they are often suckers for those who don't have their best interests at heart.
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When they attempt to position their research as being a gift to the auto industry I have issues. There is no credibility. They come up with a self serving conclusion, then structure their "research" to prove what they already decided. If they don't know that auto consumers behave differently than they answer survey questions, they arebn't smart enough to be conducting surveys in the first place.
Anything Cox, CDK, or Cars.com related is a complete waste of dealers time and money. Regardless of their spin, those companies are in it for themselves. They care enough and satisfy a paying account enough to make it happy.
For a part it's a dealers fault but I blame these high dollar companies for over selling their company. I really wish dealers would would grow a sack a ditch AutoTrader and Cox including ddc.