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True Car and ZAG - Cyber Bandits or Good for the 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

 

 

 

 

 

 

EDITOR'S NOTE: The ADM Professional Community has assigned a short-cut domain name to this blog post by Jim Ziegler to make it very easy for ADM members and readers to refer others to this web page. Please use the following URL:

www.TrueCarDealer.com

 

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.

Comment

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Comment by Arnold Tijerina on February 8, 2012 at 10:17am

It doesn't matter how I know. It's still a fact.

Comment by Keith Shetterly on February 8, 2012 at 9:48am

@ Arnold, then how do you personally know they got their paychecks from the same place?

Comment by Arnold Tijerina on February 8, 2012 at 9:27am

@Keith You can believe me or not. Doesn't matter. I stand by the facts that I personally know.

I don't have personal knowledge of the whole chain of events from one legal filing to another or the chain of ownership of the domains. 

I'll  be the first person to say my facts are incorrect if I'm wrong.

Comment by Keith Shetterly on February 8, 2012 at 9:23am

Just so everyone understands the common error:  The current "WhoIs" registrant of a site is not necessarily the same original registrant.  The age of a domain is not, then, directly the age of the current ownership.

Comment by Keith Shetterly on February 8, 2012 at 9:23am

@ Arnold:  By the way, how do you know they got their paychecks from the same place?

Comment by Arnold Tijerina on February 8, 2012 at 9:21am

I'm not claiming to know everything.. BUT, I do know that Zag and TrueCar have always been in the same building, with the same offices and both Zag and TC employees got the same paychecks. Kind of hard for me to believe that they were two separate entities with this being the case.

Comment by Keith Shetterly on February 8, 2012 at 9:15am

@ Arnold:  By the way, how do you know they got their paychecks from the same place?

Comment by Matt Tucker on February 8, 2012 at 9:13am

Arnold, now you are getting funny. Zag.com was registered by a Mr. Walter Titcomb in 1995. (use this site - http://kepler.sos.ca.gov/cbs.aspx ) and search for ZAG.  Mr. Titcomb's company has since been dissolved and was not associated w/ Scotty. But nice try.

Comment by Keith Shetterly on February 8, 2012 at 9:11am

And they have NOT always had the same investors.  That is just more misinformation.

Comment by Keith Shetterly on February 8, 2012 at 9:09am

Arnold, that's just a dumb argument.

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