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I have a friend who works for a major automotive lead provider... She sent the following bullet pointed lists to me, and asked that I do not disclose her identity. She copied these lists out of an email that her company's newest VP (who came from True Car and worked directly for Scott Painter) sent to their internal team.
Select Affinity Partners (No-Haggle Auto Buying Program) – Zag traditional model – only premium dealers get these leads
Distribution Partners (TrueCar Price Reports)
I am posting this to the ADM Forum section to generate discussions around the topics referenced in each section and the bullet points that follow... What is your opinion or insight on the listed sections shown?
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The logical action for TrueCar to overcome the "kill the beast" movement is to turn on the advertising machine in an attempt to drive lots of consumer traffic to their site. I am starting to see a lot of TrueCar advertisements in my travels. This is going to get ugly. Dealers in competitive markets are going to brutalize one another. The ads show customers saving thousands of dollars, who wouldn't check it out if shopping for a vehicle. This is going to get really big and it's going to happen really fast if dealers don't stop now!
Dealers in rural areas who say that they are making money with TrueCar won't be making money when/if more dealers start using the tool.
If the beast grows, dealers are going to become profit stressed and we'll see a reduction in dealers across the country. There is no doubt in my mind that this will happen. Eventually dealers and manufacturers will be forced to go with one price shopping. This strategy would eliminate an environment where TrueCar could prosper.
For vendors watching this unfold from the sidelines, this won't be good for us either? Fewer dealerships mean less opportunities for all of us. We all need to be united and spread the word about TrueCar.
As always -- Kill The Beast!
Mr. Painter my statements & questions to you:
Dealers at the end of the day it is up to us to protect our data from thieves like TrueCar. That is a harsh statement I know, but I have had it with TrueCar trying to justify this process its BS.
NO MATTER WHERE THE DATA CAME FROM IT ORGINATED AT THE DEALERSHIP IF THE CUSTOMER WANTS TO DISCLOSE THAT DATA…FINE, BUT YOU DON’T GET TO BUY IT FROM DMS COMPANIES, INSUREANCE COMPANIES, DATA AGGORGATORS OR ANYONE ELSE IT IS NOT THEIR DATA TO SELL PERIOD.
I'd love to hear you do a phone interviews with him. Just saying. :)
If I did any type of interview it would be live and on video, and I don't see that happening. From what I have heard of the calls he has made, it seem Scott get to talk and you get to listen but an exchange of Ideas to make the program work for all isnt what he has in mind.
Dead on Larry.
Thanks Gerald, I stayed out of this for a while because I was torn between my love for this industry and a good friend of mine that works for TrueCar.
After a lot of investigation on my own, hearing Scott Painter in several videos and seeing some of the move Zag / TrueCar is making I am convinced that they're plans are not to help the dealer, the industry or even the customer.
I believe TrueCar intends to get a mass of distribution outlets they call "Dealer Partners" & a critical mass of customers and go direct to the OEM.
Great list Larry!
Thanks Pete, but we all need to keep the faith and we cannot let DealerTrack get a pass on this deal either, they are as deep into this as TrueCar.
I got a message yesterday from Group1, they were told that TrueCar is not using DealerTrack credit app data to power their website, but wouldn't rule it out. Let's face it why would TrueCar do the deal with DealerTrack for anything but that?
What troubles me the most is that everytime you ask "Do you get the data here?" the answer is always NO, so somehow these guys get the data from somewhere and nowhere. It reminds me of a Dr. Seuss book:
"I do not get the data here, I do not get the data there, We do not use dealer data DealerSam we do not use it the way we plan"
No matter how these guys justify where they get it...It orginates at the dealer and the dealers need to do something about it.
Larry, Their network of internet properties is likely so vast and intertwined that everything can be true or anything can be a lie.....I am with you, it comes from somewhere and they have it........Clinton-ism "It depends on what the meaning of the word 'is' is. If the--if he--if 'is' means is and never has been, that is not--that is one thing. If it means there is none, that was a completely true statement....”
Pete just like any network DealerTrack & TrueCar are only as valuable as the dealers that sign up and support them.
If the dealers leave them so will the banks and the customers.
The question is... "Do we have the BALLS to do it?"
I know that may be easy for me to say but RouteOne is an alternative and be honest with yourself do you really want to sell an extra 10 to 20 cars per mo for $1000 gross profit...REALLY?