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...

  1. 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".
  2. 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.
  3. 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.
  4. 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.
  5. AMEX, USAA and all of their affiliates do not want the bad consumer relations this push back is creating with their members and customers.
  6. 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.
  7. 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"
  8. Keep calling your National and State Dealer Associations demanding they get involved and stay involved... No excuses.
  9. 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.
  10. 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

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Comment by Arnold Tijerina on November 30, 2011 at 2:04pm

Give me a choice between a negative image and profit and I'm going with profit.  I long for the days when we pissed off 17 million buyers a year.

@David Wow. That will certainly endear car dealers to consumers. 

Comment by David Ruggles on November 30, 2011 at 2:00pm

Give me a choice between a negative image and profit and I'm going with profit.  I long for the days when we pissed off 17 million buyers a year.

Comment by Keith Shetterly on November 30, 2011 at 2:00pm

Gutless move, TrueCar.  Jerry, I'd say you should remake the video without the screenshots.  You might have a case for 1st Amendment action, considering you were critiquing a product; depends on where you want to go with it.

See what $200million does to your head?  Amazing.  Can't kill the truth!  Talk about viral now!!!

Comment by Larry Muirhead on November 30, 2011 at 1:54pm

THE MONSTER HAS SPOKEN!  TAKE HEED!

http://www.youtube.com/watch?v=YL4ChT8pPes&feature=player_embedded

IT's BEEN REMOVED BY TRUECAR!

Comment by Keith Shetterly on November 30, 2011 at 1:53pm

And Here's the TrueCar replaces Cars.com with Yahoo story:  http://dev.autonews.com/article/20111031/RETAIL07/310319825/1422

Here's the TrueCar works with AAA to get "customers" story:

http://finance.yahoo.com/news/TrueCar-Partners-With-Leading-prnews-...

Here's the TrueCar pursues the female buyer story

http://finance.yahoo.com/news/TrueCar-Partners-with-prnews-32903465...

Here's the TrueCar gets $200million in funding from mix of USAA, DealerTrack, buys ALG (lease residual barometer) from DealerTrack and also CarPerks http://allthingsd.com/20110907/truecar-fuels-up-with-200-million-in...

Read it and understand:  The "sea change" is not about closing these leads.  It's about TrueCar closing your DOORS.

Comment by Arnold Tijerina on November 30, 2011 at 1:40pm

@Brian - maybe, but I doubt it seeing as price-fixing is illegal. Price Fixing

Comment by Jim Kristoff on November 30, 2011 at 1:38pm
Comment by Arnold Tijerina 2 minutes ago

@Jim ... so don't allow them to. That was easy.

 

It is NOT that easy.....Dealers need to have this information so they STOP giving them their financial data!

The NADA needs to take a look at this along with the State Dealers associations.....

Simple to fix....yes.....easy??....NO....

 

Comment by Keith Shetterly on November 30, 2011 at 1:38pm

Comment by Brian Willian on November 30, 2011 at 1:37pm

But Arnold, isn't that what TC advocates, that all dealers ban together and fix prices?  They just want to be the ones to decide at what level.  Additionally, customers have had pricing data for years.  It was just more realistic, and the companies that provided it didn't want to be compensated by the dealers directly for it.

Comment by Larry Muirhead on November 30, 2011 at 1:36pm

 

Can we get the links all in one spot that show what TrueCar is currently soaking up and are relative to this blog.
The youtube link is about 20 pages back. Maybe if we could get them all together it would be useful?

Here's a start....

http://www.zag.com/websiteASSETS/whitepapers/ZAG-WhitePaper3.pdf

http://www.autonews.com/apps/pbcs.dll/article?AID=%2F20110831%2FFIN...



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