TRUE CAR and ZAG Cyber Bandits, Parasites or Good for the Car Business?
Jim Ziegler asks...
I am hearing a lot of discussion about True Car and ZAG. I continually scratch my head and wonder if desperate dealers are doing the marketing limbo "How Low Can You Go?"
Are we so bad at what we do that we have to line up and pay vendors to lose money? AND, who is giving these people access to your data that is used against you?
Who owns these companies and what might be their ulterior motive? Sometimes I ask questions to which I already know the answer.
Am I wrong?
What do you think... JIM
Jim Ziegler's Guidance and Recommended Action Plan:
Ten Areas We Need to Concentrate on to Bring This Monster to It's Knees...
- Government investigation of ALL Data Aggregators taking consumer information from dealers' DMS. Sadly enough, dealers who do business with TrueCar are exposed to liability charges. Cut off all access to unecessary data, no matter who takes it from the dealers DMS and make it illegal to "resell identifiable consumer data" and "transactional data".
- Educate Your Fellow Dealers; If anyone takes financial transactional data, they expose the dealer that allowed it to violations, especially if it is passed on to other vendors or shared.
- Educate Consumers to what they're doing with their information...
a. You buy a car from a dealer, do you really want your personal information, and maybe even your financial information, passed along and sold and shared by "God knows who?"
b. These People Charge the Dealer $300 which the dealers have to build into the deal
c. Your Privacy and the Security of your Information could theoretically compromise your identity if you do business a company that takes data from the dealership. - Educate Investors and potential investors they could possibly be mislead if anyone is telling them this is a safe investment because of all of the dealers pushing back, associations pushing back, and government regulators in many states coming after TrueCar's business model as NOT compliant, in some cases they're saying it is Not Legal.
- AMEX, USAA and all of their affiliates do not want the bad consumer relations this push back is creating with their members and customers.
- Cancel your dealership's Affilation with TrueCar. Tell people with TrueCar certificates that YOU don't honor TrueCar and you feel the company is NOT reputable. Educate consumers as to perceived data exposure if they buy from a TrueCar dealer. Make sure that each consumer knows that using TrueCar actually increases their vehicle cost by $300 to $400.
- Make the dealers selling at huge losses take all of those deals. Big problem right now is too many Nissan Dealers and others are taking huge losers to get the factory money. The TrueCar reverse-auction business model will continually push those numbers down until the factory money is non-existent. Consumers need to hear from many dealers, "We don't do TrueCar"
- Keep calling your National and State Dealer Associations demanding they get involved and stay involved... No excuses.
- Get the Manufacturers into the game. If GM, Ford, Toyota, and other majors change the rules about how we advertise and do business to protect the dealers, we can cut off their ability to set pricing. So keep it up at every dealer meeting. Call your Dealer Council Members and protest to your factory reps. Tell the manufacturers, if they want showroom and facility improvements, we need the ability to make fair profits.
- Tell everyone you know. Educate other dealers and industry people. Watch the Painter interviews... I believe this is the first time a vendor has publicly announced they intend to bring down the dealers and hijack our business, taking our profits and starving us out with our own data. Painter has said manufacturers and dealers should go bankrupt and he, in his God-like way "will control distribution..."
When the TrueCar-Yahoo Deal kicks in we need to stand firm and "Just Say No" we don't honor TrueCar deals.
Read this article as a reference: http://www.autonews.com/apps/pbcs.dll/article?AID=%2F20110831%2FFIN...
AND, if you doubt the mission... read this... http://www.zag.com/websiteASSETS/whitepapers/ZAG-WhitePaper3.pdf
Comment
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Comment by Jerry Thibeau on December 3, 2011 at 9:04pm
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Here's a better version saved on Screencast.
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Oh how I love it when everything we've been preaching comes to fruition. I think a TrueCar employee sent me a private link via an anonymous e-mail. Take a look at this video:
This will so be going in my customer oriented message to consumers. No dealer in their right mind will want to be on TrueCar when I finish my new video.
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Comment by John Miller on December 3, 2011 at 8:35pm -
what ACTION do you suggest Jim?
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Comment by James A. Ziegler on December 3, 2011 at 8:15pm
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Personally, I believe Painter and his key executives should be investigated and, if they've broken laws, should serve jail time.
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12000 page views and growing interest levels
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Of course I might be wrong, BUT, I believe, for the first time we may have enough forces in motions to bring these alleged, perceived to be, jerks down. THEY HAVE NO IDEA WHAT'S COMING.
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Comment by Keith Shetterly on December 3, 2011 at 7:18pm
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Jim, I love the letter! I only have my opinion, which could have been wrong, about Truecar. What's happened here, however, and on other threads is that folks have come to understand this as a real threat; THEY have validated for themselves, for me, and for others what the risk is as the CEO himself has stated. He was the one that described publicly a vision for showrooms with hourly employees, no "expensive" sales staff (I think that meant managers, too), and buyers just easily picking up the keys to the "commodity cars" they bought. I am glad others have expressed their opinion just like I did.
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Comment by Jim Kristoff on December 3, 2011 at 5:22pm
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Great letter Jim........It should rally the dealers in a positive direction!!!
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Sorry, this forum cut of the link and I did not shorten it. Be sure when you forward that letter on to everyone in your email influence that you use a link that will bring them here. The letter is written correctly and does not step over the line. I suggest we all use it. JIM
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