Is your Dealership considering using TRUE CAR?

As an Internet and Social Media nut I love technology. I also love the fact that there are companies in the market who are trying to help Dealerships sell more cars. There have been websites for years that have sold consumers invoice pricing and of course Automotive brokers have also be playing games with consumers for years now.

Before you make a decision on True Car you need to read these articles:

http://jeremyalicandri.com/2011/12/06/why-former-truecar-dealers-ar...
http://www.dealerrefresh.com/colorado-department-of-revenue-cities-...

As with anything new in the market companies make mistakes, and True Car is one of many. Car Cost Canada also made some errors a few years ago by charging customers for the Cost of a vehicle and then selling their contact information to dealerships without letting the customers know. In addition they tried to get the dealership to rebate the fees they charged customers back when they purchased a car from the dealer as well. Of course they also made money selling the non-receptive lead to the dealership.
The Key thing to remember is you will sell cars and make less on some transaction and more on others we all know this of course. Finding ways to sell more cars is great, but just make sure you know who you are partnering up with on the way.

Happy Holidays from the team at Proactive Dealer Solutions and make 2012 a truly GREAT year.

If you have questions, comments or feedback, call 1 877 452 2753 anytime.

Ian Nethercott
Performance Coach
Proactive Dealer Solutions
The "BDC" Experts
http://www.bdcexperts.com

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Comment by Ian nethercott on January 2, 2012 at 5:48pm: Hello Automotive world,

Thanks for the great comments, I appreciate it. I agree 100% it's about service and True Car is just another "Broker" the only difference is that they are using the internet and pitting dealership against dealership. The race to the bottom is never the way to go. Dealers who compete in this way are only handing the gun to "True Car" and saying shoot me please.

I never understood why dealers did business with brokers for less. If they are so good add them to your sales team.

It's about great customer service and a fair profit not "Price". If this was the case Starbucks would charge $1.00 for a Latte....

Have a great 2012 and keep the comments flowing I love it!

Ian

Comment by James A. Ziegler on January 2, 2012 at 5:41pm: 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 Keith Shetterly on December 22, 2011 at 10:20pm: @ Ian "there is a right way and the wrong way to do business." You got that right, brother. Nice article!

Comment by Ian nethercott on December 22, 2011 at 2:59pm: Hello Michael,

Thanks for the comment. I understand that there are companies that have partnered with True Car. I also commend your firm for trying to change the car industry. In business however there is the right way and the wrong way to do business. There is a company in the Canadian market that also started out the wrong way.

If you want to change and industry and change the way people buy cars you need to consider the road you are taking. It's not all about revenue all the time.

Just a thought......

Best of luck top you and yours and have a fantastic day!!!!!!!!

Ian Nethercott

Proactive Dealer Solutions

Comment by Michael Timmons on December 22, 2011 at 2:36pm: Ian,

I agree that you should always know who you are partnering with and that is why companies like Consumer Reports, USAA, American Express, AAA and countless others have partnered with TRUECar for their members looking to purchase a new or used automobile. The nice thing about technology and technology companies is that they have the ability to quickly adapt and are always striving to bring a better product to the market. To be fair, you should have posted Jeremy Alicandri's most recent blog about his visit to TRUECar and also discovered the results of the Colorado Department of Revenue inquiry.

Happy Holidays