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 Michael Paulson on December 20, 2011 at 5:08pm
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I bet CNNMoney would love to report on the current backlash. It makes for a great story. It would be nice to get the financial news outlets doubting the viability of the TrueCar model in advance of their IPO.
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Comment by Keith Shetterly on December 20, 2011 at 5:01pm -
Comment by James A. Ziegler 2 minutes ago
Taken from Cnn Money Magazine article today
Painter says the average savings for a TrueCar buyer is 9.7% off sticker price. Sometimes, where dealers have too much inventory, many buyers have paid less than dealer cost. "There's an average 25% range from top to bottom on what people pay for a commodity -- the exact same car," Painter says. "Buying a car should be more transparent. You don't have to trust the dealer anymore -- trust the data."
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Comment by Keith Shetterly on December 20, 2011 at 5:01pm
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Comment by James A. Ziegler on December 20, 2011 at 4:57pm
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Taken from Cnn Money Magazine article today
Painter says the average savings for a TrueCar buyer is 9.7% off sticker price. Sometimes, where dealers have too much inventory, many buyers have paid less than dealer cost. "There's an average 25% range from top to bottom on what people pay for a commodity -- the exact same car," Painter says. "Buying a car should be more transparent. You don't have to trust the dealer anymore -- trust the data."
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I think Scott Painter was sort of right... He said dealers have to embrace change...well maybe TrueCar is going to have to embrace change. :) smiling
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Comment by Mike Warwick on December 20, 2011 at 3:33pm
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Just wondering if some of the Truecar supporters are still comfortable with the way they do business? Seems as though the state regulators are a little uncomfortable with it. I'm sure that at the end of the day, the dealers will be left holding the bag and forced to clean up the mess.
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Comment by Keith Shetterly on December 20, 2011 at 2:06pm
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Lookit what Jim's Tribe led to: http://watda.clearsender.com/proxy.php?filename=files%2FBulletin_15...
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Gosh David Thank You sincerely... I am dedicated to the best interests of our industry. JIM
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Comment by David T. Gould on December 20, 2011 at 1:44pm
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I would like to additionally thank Jim for grabbing this bull (TrueCar / Data ReDistribution) by the horns and for TAKING A DEFINITIVE position on the side of the dealer. This issue was bantered around months prior but did not get real traction prior to Jim's pro active posts. Jim you have proven you are an INDUSTRY LEADER... Not a follower or sideline watcher. Your pro active approach with this matter deserves recognition far beyond mine. The mission vs. the risk for someone of your status is past notable, it is noble, keep up the good fight. God Bless, DTG
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Comment by Al Mosher on December 20, 2011 at 1:16pm
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and the beat (down) goes on.....
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