TrueCar: Out to destroy our retail business model or a sales tool you should consider?

If True Car was a republican political candidate Herman Cain would still be in the race for the Republican nomination. Cain’s troubles would have been overshadowed as attention shifted to this revolutionary polarizing candidate “True Car.” But TrueCar is not a political candidate. TrueCar is a consumer website that offers a “low retail price” to car shoppers.

In general this isn’t a revolutionary idea at all. Sites like Edmunds.com, CarsDirect.com, and ConsumerReports.com have been around for years providing consumers with information about fair prices to pay for cars. Consumers for long periods of time have been able to replicate invoice pricing on any new car as they prepared for their trip to the dealer. So why the buzz about TrueCar? Well it’s in their execution. TrueCar in many ways is Edmunds.com on steroids. TrueCar’s sell isn’t just that they can tell you a fair price to pay; it’s that they have done the leg work for you and the dealer has already AGREED to sell it at that price. Scary? Maybe…but genius in execution. Oh yeah and that price is based on REAL DATA based on what other customers have actually paid. At least that’s True Car’s story.

Before our venture into the car business I knew my Father to be a Lexus guy having leased 3 in a row from the same salesperson at Lexus of Tampa Bay. When asked why (they had his business) my Dad would always mention “exemplary and professional customer service.” I remember asking him once if anything ever bothered him about the experience. “I always wondered just how much they were making off of me.” I have to think that’s a concern felt by SOME of our consumers. That’s who TrueCar is talking to.

I’m not excited about the price per deal ($300 dollars) or giving a third party access to our DMS. BUT having said that True Car has loaded their guns with 200 million in advertising dollars and despite some compliance challenges doesn’t look to be going away anytime soon. Some of our stores will not want to be left behind … especially volume driven stores with factory unit bonuses. I have enjoyed Honda’s stiff stance citing involvement with true car as a violation of Honda’s ad covenant. Honda has been proactive to a degree that is consistent with their personality and market position. Other car companies aren’t looking like they wish to make the decision on True Car for you. So what’s your take on True Car?

Consumer Reports gets it right...most of the time...

Ok so I couldn't help myself. First of all let me preface all of my remarks: as a car dealer who makes every attempt to be ethical I love the information age. I am not scared that most of our customers are more educated than myself on a specific model when they step into the showroom. I am excited. Cause if it's the right information and they are willing to let me make nothing more than a fair profit - than the transaction is going to be smooth and we have reduced the number of times someone would ever feel (dare I say it) "buyer's remourse."

BUT sometimes I read something from a consumer advocate service and it drives me nuts. It usually is something that means well but falls short of painting the full picture. So this time out I actually have written Consumer's Reports about some things stated in thier new 2011 New Car Preview.

I thought I would include the letter for all who follow this blog.

August 14, 2010

ATTN: Rik Paul, Editor “Consumer Reports”

Mr. Paul,

I simply wouldn’t feel like I was doing anyone any justice if I didn’t address your latest Consumer Reports Preview Guide. As a hard working, hands on, dealer principal in the car business I have found over the years that many of consumer reports teachings actually work adversely to the very same people you propose to help.

One simple example is found in this latest issue, “Don’t visit during special sales events solicited by direct mail. Those are often run by contracted specialists trained in techniques that increase the dealer’s profit.” You spend countless pages battering the word profit as if all other businesses in the world are non-profit. Being an industry insider like yourself you show no sympathy for the countless dealer closings and/or difficulties that have beset our economy and industry. It’s the information age Rik, “fair profit,” is more less the word of my generation along with being a responsible and ethical business man and dealer.

Now I will finally arrive at my point. Earlier on the same page you speak on “hard-to-track” dealer incentives. Being that I currently reside (and I might as well sleep here) in a General Motors store I do not deny that we don’t often receive incentives quarterly based on units and excellence in CSI (customer satisfaction). While it costs money to participate in this opportunity of earning these incentives (which we don't always reach) they are more often than not “passed on to the customer.” Oftentimes the best way I can communicate these “hidden” incentives directly to my previous customer base is through Direct mail.

I used to work in media. I understand that it is oftentimes a vacuum that needs to be filled. Why don’t you someday contract a current dealer to add a little true insight to your service? More often than not when the complete picture isn’t painted you do an injustice. In this case you’re hurting the very people who pay good money for your services.

Sincerely,


Brett A. Morgan
Wade Raulerson Buick GMC

The New Buick Lacrosse continues to garner praise....

The new Buick Lacrosse has lived up to every bit of the hype here at Wade Raulerson Buick GMC except for one thing...Sales! Buick's new revolution of cars has come to be in a time of economic downturn when many mature buyers have decided to stay on the sidelines. We are ok with this - for now...it has ensured that in Gainesville and Central Florida, clearly the 2010 Buick Lacrosse is the car market's best kept secret.

Just this week KBB (Kelley Blue Book) announced the Lacrosse #1 as far as the most comfortable vehicles under $30,000 dollars. Guess who finished #2? Again Buick with the Lucerne. Toyota is lucky it wasn't a Top Five List as the Camry and Avalon snuck in at #9 and #10 respectively.

I don't want to give our customers and my readers the wrong impression...we are selling some Buick product and the Buick Enclave product continues to do well. All I am saying is that we are sitting on a bonified hit and that the masses just don't quite understand this yet. I feel like I am managing the Beatles right before they signed to Capitol Records!

Then Autoweek this week caught my eye. They paired the new Buick Lacrosse CXS with the Audi S4, BMW M3, Cadillac CTS-V, Hyundai Sante Fe SE, Ford Fusion Sport, Chevy Malibu LTZ and VW CC Sport. And guess what they said?




"The car that surprised me most was the Buick LaCrosse. It's good looking, quiet and has a beautiful, comfortable interior. I'm not saying it was the best car at camp from a performance standpoint, but it surprised me the most of any car there." - Wes Raynal "Autoweek" Editor

So Gainesville, Ocala, Lake City, High Springs...I ask you...how long can you stand on the sidelines?

Brett Morgan
Wade Raulerson Buick GMC
General Manager
bmorgan@waderaulerson.com

"Buick is Back!" Raves Motor Trend Magazine ...

Wow! What a cover. Glad to see that the new 2010 Buick Lacrosse and the upcoming release of the new Regal are gaining some positive traction!


By the way - actually read the reviews too - they say the new Lacrosse outclasses the Lexus ES!

Pontiac Vibe 2009-2010 Included in Toyota Recall?

First of all I will say I feel bad for the misfortunes of the Toyota. As many of our customers know we did have one vehicle that was a joint venture between Toyota and General Motors - the Pontiac Vibe. As soon as we have more information available we will post it here. It is important to know at this time that there are no known cases of Pontiac Vibe's (2009-2010) having failures consistent with the cases related to the Toyota recall.

The All New 2010 Buick Lacrosse Has Arrived in Gainesville!

We are super excited that the 2010 Lacrosse has touched down at Wade Raulerson Buick-GMC here in Central Florida! We still have a handful of 2009 Buick's that must go as well and we are also expecting the all new GMC Terrain for 2010 to drop off the truck around mid month! Lots to be thankful for here in Florida. For Buick buyers enjoy up to 4,000 dollars in Buick incentives on the 2009 product as well as conquest bonus cash for having a trade in on the 2010!

Cash for Clunkers in Gainesville, FL??? Are you confued yet? Cause I'm not! Well actually we are all still a little confused!

Ok --- truth be told...the new "Cash for Clunkers" program is confusing. So I am here to help. Well let me try to help, or ummm --- un-confuse you!

Wade Raulerson GSM, Brett Morgan



It's like a bad Jeff Foxworthy joke, "you might be a Clunker if..." but let's face it --- it's a government program, so it's confusing! Let's start with the basics:


First off is Wade Raulerson Pontiac, Buick, GMC an "authorized" "registered" home for the government's Cash for Clunkers program?

Why yes we are! In fact, if you need immediate assistance you can call 352-372-2583 and ask for General Sales Manager Brett Morgan.


Is your current vehicle a clunker?


Good question.


Do you owe money on your current trade in? If the answer is yes, than it's not a clunker --- it's a "trade in" though --- and you will want bring it into Wade Raulerson still for trade in appraisal.


So if you have kept reading, I can only assume you hold clear title to your possible clunker, now:

Have you had the vehicle registered and insured in your name for the past year?

If yes...your vehicle may indeed be a clunker...


Now what you need to do is make sure that the government considers your trade in to have a "combined" mpg rating of 18 miles-per-gallon or lower. You can use fueleconomy.gov to compare your vehicle side by side with the vehicle you are considering to buy. You can also go to gm.com; they currently have a great tool up to help you guage the amount of your CARS rebate. Remember the CARS program is only good on new vehicle purchases and typically the rules want to see you in a vehicle class or a specific vehicle that out-performs your current ride (meaning they don't want to see you leaving your current Pontiac Vibe for a GMC Sierra 2500 Diesel truck!). There are many other provisions of the program and you can read them all here: cars.gov



And of course if you are still confused you can call or e-mail myself (quickly becoming a resident CARS expert) at bmorgan@waderaulerson.com or 352-372-2583.