BRAINSTORM WITH THE DAWG

Here’s the challenge….

Those of you that have known me through the years; you know many of the processes and techniques the entire retail car business uses daily were originally invented and implemented by me. In other words, the stuff we do every day in every dealership, much of it I created. That’ a fact and can be proven. So, let’s move on to the important stuff…

Through the years I have had to throw on the brakes, stop, reverse and totally go in a new direction of mindset. What I was teaching and creating even 10 years ago is no longer valid nor appropriate. My ability to change and evolve has made me who I am today. That is also YOUR ABILITY to change and your ability to create a new dealership model.

We Cannot Trust the Manufacturers and we certainly can’t trust most of our Vendors to lead the way to change because they all have hidden motives that Are Not in the Dealers’ interests. They are more interested in stealing your business and profits, and reselling our customer data, than they are at partnering, and; some of us fools are paying them to do that. Therefore; this I what I am thinking….

In light of everything that’s happening now, we have to proactively reinvent everything.

“Carvana” is not the competitor, but; they are the ‘Call to Action’ we needed to go where no dealers have gone before. Every time I created new dealership processes the resistance to change was the downfall of the losers, and the bold and daring among us were extreme winners.

Here’s the basis for the challenge. Imagine, that our dealerships COMPLETELY remodeled our selling methods to a concierge-home delivery model? Are YOU fully prepared to recommit to total restructure of everything you do in variable sales operations?

Here’s the assumptions:

A.  Carvana is successful because they offer allegedly A to Z online buying, financing, and hassle-free delivery, return the car policy guarantee. (even though most of the online reviews that I consider to be genuine reviews are averaging only 2-stars)

B.  They are gaining a lot of traction and market momentum even though they are losing a lot of money. In other words, they are extremely successful at market disruption and selling increasing volume. Regardless of their poor customer service, they have created an image the public is buying into by saturating television and other media with their message.

C.  Carvana is owned by convicted felons who also have ownership of “DriveTime” which also has superior brand image management despite questionable practices and numerous brushes with Federal Agencies. READ THIS NOW... CLICK--- https://www.forbes.com/sites/nathanvardi/2017/12/18/how-an-ex-con-became-a-billionaire-from-used-cars/#27d1fcae6d3f

D.  Carvana has alliances that are allegedly and apparently screwing over dealers. Some of these alliances with vendors that dealers are paying, in fact, channeling your customers directly to their other partner, Carvana.

Everyone is aware of their recent exposed plot with CarGurus, which CarGurus had to admit when they were caught red-handed sending your customers that clicked on your unit that you paid them for to Carvana. They tried to minimize it BUT , in my opinion; it was an inexcusable double-cross by CarGurus. They appeared to only be sorry they were caught.

Do Not be deceived into thinking that CarGurus is the only Vendor you are paying that is diverting your customers elsewhere.

OKAY: We could go on and on about the situation BUT now we have another challenge that is even more immediate. The “China Virus Pandemic” (call it what it is).

This virus has your customers staying home and isolating.

SO: Here’s my thinking, YOU...YOUR DEALERSHIP... WE ... We all have to immediately and radically shift paradigms of who we are and how we think and how we sell cars.

I NEED YOU HELP AND YOUR INPUT HERE. (Serious Help and Serious Deep Thinking)

First of all, YOU need to “Go All-In on This or Do Not Even Play the Hand”. In other words, total commitment and resources have to be dedicated.

As everyone knows, I just survived an aggressive Cancer surgery. I can’t do this one by myself as I have in years past. I am working on it BUT YOU have to do the legwork and help with the research.

There is No Reason our dealerships can’t outperform Carvana and Zoom or whatever interlopers are getting into our business and making under the table deals with other vendors that we formerly trusted.

A.  Even though Carvana often can deliver a car same day, reports tell me that sometimes it takes them 5-15 days to get a car to the customer. This is because sometimes it appears that they DO NOT HAVE THE CAR they advertised. Many times, it is looks to me to be a fake ad they then hope to locate the car based on their relationship with other vendors and their partnership with Manheim. As Dealers we have the ability to get a real car to the customer same day. We have the ability to offer stellar service and outperform them, whichever vendor competitor we're talking about.

B.  Reading their reviews, two things become obvious to the professional that’s been doing this a long time. I believe they are buying a lot of “Fake Reviews” just based on the wording and source.

C.  Read their Bad Reviews (and there are many) and you will find several common themes alleging that...

1.   Cars failed mechanically and cosmetically

2.   Customer Service promises not kept

3.   Had to switch cars

D.  As we formulate this plan, I encourage YOU and YOUR STAFF to do extensive research of Carvana Reviews. We need to study everything about them.

E.   The Vending Machines are a joke and NOT something dealers even need to consider; we are in the serious business of selling cars.

The Dealership Concierge-Home Delivery Model

Now, vision this with me…

If you have the testicular fortitude, your dealership converts immediately to a home delivery full concierge, home delivery model? I am talking about a BDC - Driven total concierge model. NOT an additional department.

It has to be Internet driven and requires Radio and Television Support Advertising mirroring Carvana, CarGurus, and Drivetime business plan and scheduling demographics. 

THERE IS NO WAY THAT Carvana can beat the local dealer if we play their game heads up.

First of all, we have the people on the ground and we have the cars and trucks and SUVs.

Secondly, we have the ability to contract online and gather finance info. We have better sources than they do to finance.

We have a service department and trained technicians, much better support.

Our warranties and service contracts are superior. I read some bad reviews on their warranties.

Also, their “Finance Sources” are what I consider to be the industry “Bottom Feeders”, same sources they use at DriveTime if they don’t carry the paper. While you’re t it, read the reviews on DriveTime and you will see how many Federal Complaints and penalties they paid for Collection Abuses of their customers. They paid as much as $8 Million Dollars Federal Penalties for collections abuses, per repeated incident.

Everything about DriveTime and Carvana reflects, to me, the “Criminal Mindset” of some of convicted felons that own them. Remember, Garcia and his cronies were part of the 1990 Criminal Fraud Case because he was part of the Charles Keating, Lincoln Savings and Loan Scandal that cheated numerous people out of their life savings. The scam they were running was to get customers who had their life savings in deposits to convert their cash accounts to worthless junk bonds they issued that had no value and were uninsured. In other words unsuspecting depositors were sold into giving up their Cash Savings in exchange for these bonds which they allegedly knew were worthless. 23,000 people, mostly seniors lost everything. That's what Garcia says he played only small role in. OF COURSE, the government convicted him and his cronies. He got off from prison time by testifying against his friends. Although he did no time as such, he is still a convicted felon and, in my opinion, he is still the same bad guy; and he’s hired some of his former allegedly criminal cronies in key positions. Treating him and his companies like they are “Respectable” is putting Lipstick on a Pig.

To pull off the concept and make it work immediately is the only real option. Your customers are on Lock Down and self-quarantined, they’re NOT coming to us.

SO, Now, I need YOUR HELP here. I want this to be one of the deepest thought-provoking, meaningful threads on Social Car Media Ever. I want and need YOU to give deep thought and do more research and post ideas here.

SO, don’t give it trite short social media foolish replies just to chime in, BUT instead; Go That Extra Mile and lets research and create how this would work… What we need to do… How would we do it?

Have a meeting with dealers and your managers, even your sales persons and brainstorm this with me.

NOW, let's see YOUR COMMENTS and IDEAS.