The Reality of Zag.com/TrueCar

Friends,

I send this message as a true friend in the automotive industry. As
some of you already know it is my mission to help dealers be
profitable and grow their results.
I wanted to reach out to you and send you this message to inform you
of what has been going on with Zag.com/TrueCar and the current
discussion.

I know that a lot of dealers are using Zag.com because they are sold
on the fact that they never pay for a lead and only pay $300 for when
the car gets sold.
The problem is that we give out access to our data. Zag and TrueCar
pull all of our data including front end gross, trade value, and back
end gross. Since they go into the database they pull information for
every deal that you did that month.

Now let's think. Let's hypothetically say that you had an issue with
a deal. I am talking about an issue where a customer was misquoted
severely to the point where you had one deal that you literally lost
$2,000 on. This happens at some point or another. Well now you let
Zag know of that information. They take that low price and post it on
TrueCars.com as the best price out there. Now you have customers
expecting to go into dealerships (including yours) to pay that
unrealistic low price. This takes competition to a whole new level.

So I ask. Why do we want to let a vendor take our data and use it
against us. Let's face it, Scott Painter (CEO of TrueCar) has never
worked in a dealership or experienced the pain that we all had selling
cars and dealing with struggles. He actually has been quoted saying
that he envisions this industry eliminating sales people with this
process. Here is a man that is out to give consumers transparency
while hurting out business. I believe in being fair, honest, and
showing transparency. I do not believe in auto dealers getting hurt
to do it. We should be playing on even field. If Zag/TrueCar were
posting realistic figures allowing dealers to make a profit we would
not have any problems.

Check out this Automotive News Article: http://bit.ly/vbMAim

Also, Jim Ziegler has created a discussion on this topic right here
and you all need to read through this because it affect your business:
http://bit.ly/smOaRJ

Here are some more important resources for you to look at: http://bit.ly/jNtK8M

http://bit.ly/bIt4WP

The bottom line. The automotive business has been great to me. I
created a solid career out of it. I learned skills in this business
that I would never learn anywhere (including college). I have made a
decent living at it. I started Dealer eTraining to give back to the
industry and help better our industry by providing training solutions.
When I see a company get started that hurts our industry I care and I
want to see it go away.

As the saying goes, "there is no such thing as a free lunch". If you
are using Zag because you like the at leads are free and you only pay
for the lead when the car gets sold you need to consider the damage
that you are doing by losing money on these deals and letting Zag use
your data to make you look bad in front of your customers as well as
create more tension between competing dealers. Let's put an end to
this madness. I propose that whoever is using Zag/TrueCar stop using
them and pass that on to everyone including your competitors.

Thank you.

--
Stan Sher
President
Dealer eTraining
Website: www.dealeretraining.com
Direct: (732)925-8362
Email: Stan@dealeretraining.com

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Comment by Stan Sher on December 7, 2011 at 3:02pm: I know I am excited. I hope that this helps dealerElite get more members. Thanks for such an awesome site.

Comment by DealerELITE on December 7, 2011 at 2:11pm: Almist 700 views

Comment by Stan Sher on December 7, 2011 at 6:18am: Thank you. This particular article has attracted many people including a State Dealer Association. I am excited about that.

Comment by James A. Ziegler on December 7, 2011 at 5:29am: Great posting Stan, you're on target. JIM

Comment by Keith Shetterly on December 2, 2011 at 11:15am: @ Christine: It's not about that glass. It's about $200million of investment now running towards a billion dollar IPO of stock. It's about the CEO Scott Painter aiming his company at YOU and YOUR business and openly stating that his agenda is to change the business to be without you IN it. These are the real beginnings of Dealer Data Wars, and DealerTrack has invested money--and likely YOUR data, too--in making this happen. Please take a few minutes to read this summary blog I wrote, including the reference articles, and then come back here to comment. I just don't think you realize what you are facing. Painter intends to OWN the glass you hold and empty it until you and your business die of thirst. http://www.dealerelite.net/profiles/blogs/why-you-must-cancel-truec... and also see 54+ pages and a record ten thousand+ page views on Jim Ziegler's blog here http://www.dealerelite.net/profiles/blogs/true-car-and-zag-cyber-ba... and perhaps participate there. Thanks!

Comment by A. J. Maida on December 2, 2011 at 11:03am: GRASSROOTS Movement.

This morning I submited a lead threw un-Truthful Cars and when the dealers sent me their responses I replied with links to Jerry's video and other threads about the dangers of True Car. I made sure to include un-Truthful Cars legal actions to Jerry's video posting on You-Tube and how a company with True in their name is afraid of the TRUTH!!!!!

LET"S GO PEOPLE>>>START SUBMITTING THOSE LEADS!!!!!!!!!!!

Comment by Stan Sher on December 2, 2011 at 1:57am: Please share these blogs with every dealer that you know and get them to cancel Zag. I want to see these investors never see a dime of their $200 million investment again and watch Scott Painter go bankrupt or at least get into real trouble for what he has done.

Comment by Christine Nolden on December 2, 2011 at 12:58am: oh.. btw.."Check out this Automotive News Article: http://bit.ly..."

Everyone can dream.. People sell cars not the cars .. You all know this is high in the sky.. the new vehicles are too complicated and you do not buy your expensive Suit online you get advice from a trusted source and have it FIT.. Your car sales person or advisor -you trust and that will advise you to all features and benefits. Plus Luxury cars need to be explained not even Mr. P's car he wanted was NOT a Reality built option.( nonexistent) ...he needed help, advice and not just once. So lets use TC for what it is and hold some profit . Everyone can survive

Do not cave in on the price wars. You do not have to be the cheapest but the best game in town.

Nice and honest people sell more..Invest in the good sales / Internet advisors.

Comment by Christine Nolden on December 2, 2011 at 12:46am: ZAG - True Car ( not much really true about it as the numbers are wrong)- when I first saw the card I was almost shocked. I have to say from sources Mr P. makes a great living and has never worked in a dealership but there are many ears listening to him. Truth is he paid over MSRP for his cars. He is not cheap. But a nice guy. Yes about all the data. It is a bit of a "boys club" and all started with support from larger Corp.It is true they pull data. However I held gross on many deals. Who do you recomand as a lead supplier . I think having a little of all makes a good flow. So that is why I like True car to give options to the consumer.

As of right now word is TC is out of compliance with some brands. And do not forget a large center "all makes and models" is run by Mr F.his friend. They server hundreds of Dealer Centers and created a new business within a business.. not so good ,,reps do not know the product; so one hand washes the other and this just is a business this has always been an issue. Dealer principals are often SOLD on SEO and Leads because they are ill advised from selfish greedy employees. Sell cars or be an SEO specialist rarely both; plus the driving traffic is a very ?? business. We all know...There are still good Dealerships and honest people selling cars I have to believe this. I came from Organic Lead Generation was copied and know work in the Internet. Most employees have no idea what it takes to work an internet department ... greed, and corruption will go on until Managers do not get paid on other peoples work and start getting out of their chairs and empower and manage.. What happened to round robin and what do you think about the power of a BDC? should not any good salesperson take a call and run it through to an appointment? Why do we need reps Reading scripts.. lazy sales people not making calls and e-mails and still getting set appointments. Like a drug for Managment .. it works lets do more it will work more. If one is good five are better.

What is new?.. I still love my work and believe in the good .My glass is half full.

Comment by Jay Grosman on December 1, 2011 at 11:47pm: Amen. That is all I have to say:)