Comment

Comment by James A. Ziegler on January 2, 2012 at 5:46pm

This is an email from man who is a second generation dealer and a great friend of mine for 20 years...  If TrueCar gets their way, this is the fate most dealers will suffer, at least that's my perception of probability.

Name Withheld:

A Virginia Dealer Principal writes...

This hurts my pride to say, but I'd like to tell you bluntly. Feel free to send to all your dealer friends. 

For 10 years in a row, my Buick-GMC store has been GREAT. Top CSI, decent grosses, great reputation. Many of my managers and staff have been here 10 years.  We always did business honestly, hence our repeat business is very high, and carried us thru the dark days of 2008 and 2009. 

My staff was happy. Not wealthy, but making a good living. Ordering "Outback" for dinner at night, paying their rents and living expenses....it was a pleasure to come to work. 

2 years ago we signed up for TrueCar and initially, we LOVED the few extra deals. TrueCar also became the "gatekeeper" for USAA customers so in my heavy military-area, we needed access to those customers. 

Today, WE ARE ON OUR KNEES. It's New Year's Eve right now and usually, we high-five each other, exchange hugs, and pats on the back on a good year. But tonite, we're dejected. Our grosses were KILLED via True-Car. We've TOTALLY stopped selling value and service.  Most of my best salesmen have had to take pay advances from me just to provide Christmas for their families. 

We were a prosperous business, and due to TrueCar, we are DESTROYED now and have to rebuild.

Comment by James A. Ziegler on December 16, 2011 at 3:17pm

Okay Honda has taken a courageous stand and banned TrueCar pricing with it's dealers. I know for a fact VW is strongly considering doing the same. I hope VW realizes that they've just began to get some incredible momentum in the market AND now is NOT the time to allow an invader like truecar to devalue the brand in the public's eyes. No matter what you sell, TrueCar cheapens your brand.

Group 1 made sure their dealers cancelled after looking at the exposure of having these people rooting around in their DMS, especially with AutoNation's CEO on the board of Truecar...

Group 1 was smart enough to see the writing on the wall and run as from away from these people as possible. When is Asbury, Penske, Sonic and others going to awaken and realize they people appear to be a huge threat? Even large private groups like Rick Hendrick should be looking at the evident danger we're all perceiving here. 

Where are Ford, General Motors and especially...where is Toyota in this escalating skirmish? I am embarrassed that mark Reuss, president of general motors would actually go to TrueCar Headquarters and play with Painter showing him a 750HP Camaro.

I did not mention Nissan because their dealers are using Truecar to sell way below invoice so they can collect stair step money. You guys are smiling now BUT if Nissan takes away the program, you're screwed royally because of the benchmarks you set with TrueCar making your brand image "Ultra Cheap Nissan"

Does Mark Reuss NOT understand that his dealers are being raided by these people cheapening the product down to unprofitable and below? I find it hard to believe that Reuss would publicly suck up to these people if he truly understood.

There are a few investigations of TrueCar popping up here and there AND we're still urging dealers to put more emphasis with your dealer associations to get off of the sidelines and represent us... I know a couple of associations are doing their best while others limped off of the battlefield without firing a shot...  weak. 

I am especially disturbed about Toyota staying quiet while Honda takes a stand. It's like sending a message that Toyota has less value. 

This thing will gather increasing momentum and I predict TrueCar will find some high-profile weak suck who will sellout their integrity for the publicity or hard cash and take a stand publicly backing them and betraying dealers.

Of course, this is all a lot of conjecture, speculation, supposition and opinion...I might be wrong. :)

 

Comment by Stanley Esposito on December 14, 2011 at 10:17am

@Ian The point that I am not missing is that truecar thinks cars are a commodity and they are training their customers to think the same way. The CEO of truecar has been quoted saying he wants to eliminate the salesman.

 

Comment by Ian nethercott on December 13, 2011 at 6:32am

Hello Stan,

First of all thank you for the comment and feedback, I appreciate it. Proactive Dealer Solutions works in dealerships all over the USA and in Canada and Australia as well. Of course we have dealt with price with Internet Customers, True Car customers and customers on Ebay or Car Cost customers in Canada we all have.

The point of the artice was to show dealers what True Car is really about. Dealerships should see companies like True Car, Car Cost, Ebay and Jiffy Lube as a reason to embrace their existing customer base and new customers and treat them right. True Car is only a threat if your dealership and dealer group is not actively treating customers right.

Great customer service, Proactive campaigns and reaching out to your current, past and future customers is the key to success in the car business. The reason Realtors who understand this and Car dealership who do as well grow is that the other dealerships just want Truecar to save them and set a new bottom.

All I am saying is Automotive Dealerships should change the way they sell to turn angry customers into happy ones. When customers "Love Buying Cars" the price is less important.....

Give me a call today when you get a chance I would love to talk more....

Our number is 1 877 452 2753

Ian Nethercott

Proactive Dealer Solutions

Comment by Stan Sher on December 13, 2011 at 2:44am

You fail to forget is that Starbucks and Apple are not a $20,000 car or a $200,000 house.  No one has ever had issues with any other industry like they had with the automotive industry.  The average consumer has nothing good to say about car buying.  TrueCar is just helping these customers dislike car dealers even more.  

Coming from a company that consults auto dealers on how to bring more customers in and sell more cars profitably you sure are presenting this blog like someone who has never experienced the wrath of TrueCar or Zag on the front lines.  When was the last time you ran a BDC that was flooded with 200 leads per month from Zag.  The same Zag leads that account for 75% of the prospects living 50 miles away or further.  Did you BDC waste time on them and work them to the bone only to find out that the prospect took your price and beat it by $100 at their local dealer?  This happened because the dealership cannot lower the Zag price since it is already low and they have a $300-400 expense on it.  This comes down to all about price.  That is the reality my friend.  TrueCar makes it all about price.  If TrueCar would advertise the best price to be over invoice and allowed the dealers to make a fair profit I would support them.  If TrueCar partnered with sites like DealerRater and used customer testimonials to add to the experience flavor I would be a fan of that.  But TrueCar is trying to shut businesses down.  If TrueCar was not taking data and using it against dealers I would support it too.

You say to think of it as Jiffy Lube.  Well let me tell you something about that.  Jiffy Lube costs the same of maybe $5-10 less for an oil change.  However, Jiffy Lube does not use factory genuine parts and accessories.  They use cheap aftermarket parts that can subject your vehicle to further problems.  An authorized dealer has professional certified mechanics making $15 an hour to as much as $30 or $35 an hour.  A Jiffy Lube tech makes $12 an hour if they are lucky.  Do you think a $12 an hour mechanic really cares about your car like a $20 an hour mechanic?  My father is a master Lexus technician and I see the work that dealers do over these cheaper aftermarket places.

It is one thing to talk about customers buying motives being experience when looking at coffee and dry cleaning but it is another when looking at big ticket items.  While there are a select few customers that will go after the experience this is a situation where price rules the game.