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 Stan Sher on December 2, 2011 at 11:15am
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You know what it is friday. I secured my meeting for Monday. I got some things in the fire. I am going to slow down my workday and make my follow up calls and join AJ on the mission.
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AJ...the balls on you. Wow! You rock my man.
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Comment by A. J. Maida on December 2, 2011 at 10:59am
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@Stan it would be nice if NADA and state Assoc. got involved but I am promoting a more
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. I made sure to include un-Truthful Cars 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!!!!!!!!!!!
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This is a job for NADA and state associations indeed. Don;t worry Alpha Dawg is on this.
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Comment by Keith Shetterly on December 2, 2011 at 10:39am -
@ Craig: It's not stopped at new cars. It's aimed at used cars http://www.prnewswire.com/news-releases/truecar-inc-announces-clear... and it is also surely headed to finance, etc.....
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Comment by Craig Lockerd on December 2, 2011 at 10:36am
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So do I have this right?...A "True Car Dealer Client" could in fact sell a car on purpose at a huge loss,$1000 back of everything,that dealer now has the cheapest price on True Car when a customer goes to look online.Dealer that sold the car on purpose at the bog loss,now puts BIG bump sticker on his cars and ads an additional qualifier in regard to some crazy high Beacon score and smacks the consumer for 3 points in the box ++?...Advanced low balling,Dealers loose,managers make less,salespeople get KILLED....entire industry suffers from this. On somebodies blog or comment of perhaps your video Jerry this isn't going to stop with new cars,so called Angel Investors want HUGE returns....This sounds like a job for NADA to me
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Comment by Jerry Thibeau on December 2, 2011 at 10:17am
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Does anyone has access to a TrueCar contract? If so, please scan it and e-mail to me: jerry AT phoneninjas dot com.
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Thanks for the comments on the video! I actually like my second video better, but the first one has it's moments! Any predictions on when we get 20K views? We need that many views on the second video.
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Comment by Jim Kristoff on December 2, 2011 at 8:10am
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Here is an article from MSNBC where it states in the article that states:
The increase in overall industry sales tells only part of the story. Automotive data tracking service TrueCar.com estimated the average transaction price for light vehicles in the United States rose to $30,317 in November 2011, up $1,163, or 4.0 percent, from November 2010 and up $164, or 0.5 percent, from October 2011.
Data tracking service......Here is the link to the article: http://bottomline.msnbc.msn.com/_news/2011/12/02/9148815-car-buyers...
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Comment by Jim Kristoff on December 2, 2011 at 7:32am
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Jerry's original banned video.....
http://www.automotivedigitalmarketing.com/video/truecar-banned-yout...
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