Used Cars, Future Deals, and Dealers' Dilemmas

August 15, 2023
Interpreting the data can be hard, but the Wheelhouse is here to help.
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On our second consecutive episode, host Daniel Govaer is joined by Paul J Daly, Brian Kramer, Matthew Haiken and Jasen Rice.

We take a deep dive into the recent JD Power and Cox Automotive reports, separating fact from fiction. Plus we add our normal bit of sarcasm and wit. Are we right or wrong? Let us know in the comments.

Daniel Govaer: 0:00All right. Do you think you could open up a franchise dealership tomorrow? What OEM are you choosing?

Jasen Rice: 0:06

I do, I would do sports. I like motorcycle ATV side by side type. But anyways,

Paul Daly: 0:13

how do you bet a sports franchise like? No like,

Daniel Govaer: 0:17

like buying the browns? All right, and welcome back everybody to our second consecutive episode of the wheelhouse. That's right. Despite all of our own expectations, we're back here again. And looking even better than the week prior is we've got some some new additions, just goes to show what happens when you go out on the street with a sign that says please help us. But like, welcome, well, welcome into the show a couple of more experts that we'll get to in just a minute, I'm just want to go through a few things that we saw, we're going to jump right into some things already this week, because we want to make good use of your time. First of all, I know that last week I was I was a bit I was a bit ragging a little bit on a specific Cadillac model. And they definitely more than made up for it because they debuted their new Cadillac electric or Cadillac IQ or whatever the final name for it is going to be. And I think that it's absolutely it's going to be an absolute runaway success. I think they're capitalizing on what made that vehicle, a pop culture icon and absolute great family mover throughout every generation that it's been, they've taken a little bit of the design cues from that cell SDQ. And they've really, they've really like improved upon that Escalade to make it look even better. And at the same time, they also introduced the new version of their Escalade V. Which, if you remember about a year ago, and that came out was going for, you know, close to 100 over MSRP. And those that's cooled down a bit, but that still makes it one awesome rock and family mover. And I definitely applaud that sort of dual approach that they're doing and to anyone that was that was writing me a bit for being a little too harsh on Cadillac the week before, I would like to point out that I am a fan of those two things. And then a little bit of a beware story in Alaska. So you've got a dealership group that purchased another group that's there, and the Alaska Attorney General has filed complaints, some of which have stemmed from their own employees against an audit group in Anchorage for quote, deceptive sales tactic, tactics. And when you read through it, it's mainly revolving around the advertising of cars that were in transit to the dealership, either new or pre owned. And another complaint really seems like it revolved around someone finding a 0% APR sticker inside of the vehicle. And then they note that that client actually did receive a 3.89% APR, which to me still sounds like that was darn low compared to what we're seeing. And an additional complaints said that they were mostly mostly related to just having, you know, their associates being overly zealous, and that information on the website hadn't been updated yet from when they purchased it. So it was kind of like a welcome to Alaska get out, is pretty much how I heard that. And then rivian owners can't really decide who they want to beef with if they want to beef with each other for not knowing how to drive a rivian or to beef at rivian for giving them cars that either way, needing to replace tires in about 6000 miles. And because they have time on their hands, a lot of these owners are conducting their own studies to prove to rivian that the r1 T and the r1 s models, which by the way, also weigh 7000 pounds and produce over 800 horsepower are deteriorating their front tires in 6000 miles or less. So hopefully they decide who they want to beef with and that somebody at least helps these guys get tires that will actually last more than 6000 miles on their on their reviens. But

Brian Kramer: 3:23

I've got a friend with a demon that's a lot lighter than that that actually went through tires and less miles. So there's maybe it's the tires. Because there's

Paul Daly: 3:32

different reasons. Yeah, because there's a good parallel there, right? You got to have some reason to bring it back every 6000 miles if there's no oil change, that's that's the way they're

Daniel Govaer: 3:41

going to generating service.

Jasen Rice: 3:44

Here the wipers go out to

Paul Daly: 3:49

Now currently, the tire thing though, is only if you put it in, like conserve mode,

Daniel Govaer: 3:54

which made even less sense to me. You save you save on the

Paul Daly: 4:01

right, but then you put it all the horsepower to the front wheels only and the actual stance of the car actually lowers like an inch or two.

Daniel Govaer: 4:08

So I think it was really just like we're just misunderstanding what conserve means. It's not that it's conserving battery, it's conserving fixed income for the dealership and get otherwise it wasn't possible. So you hit that button. And I think that's a great feature. I think that more and more EVs should be coming with that like please hit this button so we don't lose our service revenue.

Matthew Haiken: 4:26

I also just think you should be applauding these these customers that are doing their own tests like today in today's market you have got like live Reddit live response embrace these people because they're going to find holes that guarantee no one at HQ is going to find so let them keep experimenting, breaking this stuff coming up with studies on tires, and maybe some interesting solutions will come out of that. Okay,

Daniel Govaer: 4:54

we're gonna take our first spin around the horn. 30 seconds on what you're watching this week. What's top of Your list this week on your watch list for the automotive industry. And let's, let's start with you, Mr. Paul Daly. Okay.

Paul Daly: 5:05

So earlier this week, Wall Street Journal had an article talking about the purchasing power of women over the summertime, and how, you know, between Taylor Swift concerts and the Barbie movie, just saying there's been this multiplier effect, where women are actually bringing a lot of the other consumers with them to events. And I think it would be a really big mistake for dealers to ignore this or not paying attention to it. Because there's just a moment in culture where I think dealers can capitalize on this and get some of that attention and empathy and traffic going.

Daniel Govaer: 5:40

Alright, and immediately to your left, Jason rice. 30 seconds on the clock.

Jasen Rice: 5:44

I'm watching the shopper index of used cars and volume seems like dealers had this little uptick, which happens always July, August seems like summer sales event, summer sales of 1000s are going on. And typically after that it follows a trend word down word all the way through December. If that's the case, we'll see five to 10% continued decline in values of used cars, if it stays up, like we had a weird jump in January of this year, which typically didn't happen. So let's see if this thing continues by this thing gets people getting into school and getting things settled back down. And

Daniel Govaer: 6:18

I'm so happy you did bring that up. And that's why you're here to bring in the realism. That's you. That's your 51 points for that opening statement. By the way, we do have points here. They matter. You know, like we said in the show intro they they matter about as much as Evie demand does for evey production so.

Brian Kramer: 6:35

And CAFE standards, the 2030 limits on

Paul Daly: 6:38

I don't know where to plug. Right now. That's

Daniel Govaer: 6:41

okay. I'm keeping track of it. So thank you. And then and then new to art new to our show this week. Thanks so much for joining us. Matthew eek. And then you know, from your perspective, 30 seconds if you can go on the clock. Yes.

Matthew Haiken: 6:51

Yeah. Thank you so much. I'm looking at Automotive News. Certain manufacturers today saying by 2030 We will be all in on electric no ands ifs or buts. What is only electric? Is it plug in hybrids, mild hybrids, is there an asterix? It doesn't add up? What is the definition of electric and that's what I'm looking at.

Daniel Govaer: 7:13

Yeah, and that's I mean, I appreciate you saying that too, because I think everyone's just sort of lumping zero tailpipe emissions electric battery electric, everyone's just lumping everything into like one giant pot and it's not and it doesn't make sense when you break it apart. So it

Matthew Haiken: 7:27

doesn't make us because we're live we're on the front lines. Wall Street sees the headline. They love it. They go nuts. But what is it Let's peel away what what electrification is. All right, Brian Kramer,

Brian Kramer: 7:40

you're kind of the narrative there. Because we're going to mean, we're going there by 2030. And, Brian, let's start with another narrative that we're gonna blow up I know that's close to your heart. Another narrative is that use car supplies are too low or too high. Now you've got to throw I'm looking at car dealership guys, Twitter posts. Today, we're Honda got a range of 21 days on Honda. You've got 102 days on Chevy, and everything else is in between. So when somebody's saying well use car value, you know there's new car supply is tight. Well, yeah, if you're a Honda Kia Toyota Subaru dealer, but if somebody was there, there's all kinds of inventory on dealership lots Well, yeah, if your Infiniti Jeep, Ram dodge Chevrolet Chrysler dealer, so I would just say, bucket that into one single thing. Thank you. All

Daniel Govaer: 8:29

right, you're gonna work we're gonna work on some efficiencies just just for you after this, whatever.

Jasen Rice: 8:36

Always overtime. Alright, but

Daniel Govaer: 8:39

let's, let's go back real quick to what we you know, I briefly touched on this art. And this was also an automotive news, right. So art, essentially, are we seeing digital retailing, outpacing client expectations we're doing I always am a little bit curious when we say we're doing things in the name of a better client experience, right? Are we actually helping the client with it? And in this case, I understand there might have been some extenuating circumstances, but is the world of digital retailing actually outpacing what clients are here and have an appetite for to do?

Matthew Haiken: 9:10

I would say no, I mean, really, what the customer wants is they want to feel like they didn't get a worse or better deal than their neighbor. And they want the same experience offline and online. But when it comes to actually taking the deal from A to Z on by themselves, that's why we're there and we're fielding questions and we're placing the deposit and we're going through the that process with them. I think you use words to describe what you're saying but it really doesn't evoke the pain point.

Daniel Govaer: 9:43

The things that we want to be more efficient about though right like posting inventory that's not here yet. I mean, typically, right? If you go back not too long ago, advertising a car you don't have that was pretty contentious. And now it seems like that's coming back again. Is that an isolated case? Or, or are efficiencies essentially just pissing off our client? I

Paul Daly: 10:01

think it's not an isolated case, I think that I know a lot of dealers who don't put a picture on the site, because they don't want that to happen. And they advertise that, you know, if you're gonna go somewhere else, make sure they actually have the vehicle because it is it does kind of like put forth this dealer first unfair advantage, but not a consumer first advantage at all. Because you think the vehicle is there, I don't think it's isolated at all. And I do think the efficiency of showing on there is just just symptomatic of even manufacturers saying, hey, put this on your site, let it connect automatically to see that it's coming in to try to, you know, not lose interest or lose buyers to other brands. And I think that's a great point. I think that's where digital retailing is failing, because it's not consumers first.

Brian Kramer: 10:46

And I don't think that it's failing with Tesla. And I don't think that it's failing with even Ford direct. Does that mean?

Jasen Rice: 10:56

You're not showing up to a dealer's lot to see that Tesla's there? Yeah, well, I think I'm shopping for a car right now. And the site will have pictures, they'll say in stock, the other one says no picture, but in transit. So I'm assuming if I go there, that one's in stocks there. And if it's not, I'm frustrated. But Tesla, I don't expect I don't have those expectations.

Matthew Haiken: 11:14

Tesla's also updating everything daily on the hour, they're launching inventory all the time, they're changing pricing dynamically, which, which really, the manufacturers can't we do. And that's keeping people coming back and refresh, refresh, refresh, looking for a specific.

Daniel Govaer: 11:30

Listen, I don't know. I mean, first of all, listen, everybody needs to for the job that they have that says, When Brian says Tesla, add a coin, go ahead and do that. So we started our first one today, right? And that I mean, at the end of the day, I'm going to plant the tree. But I think but here's the thing, though. And man, I'm just you know, coming back on what you said, it's like we continue to talk about Tesla as an example, we're talking about dealerships doing digital retailing, and we're bringing in Tesla, which Tesla is an entire OEM that's just practicing direct sales, the way that they're going to be able to come to market is going to be different than what a dealer body is going to be able to do. Now, Brian just loves bringing in Tesla, because, you know, in the back of them, you can't see he's actually at the gigawatt factory. So that, you know, I've never actually

Paul Daly: 12:11

seen a cyber truck right now.

Brian Kramer: 12:14

Change my background. So when I was in retail, though, back in my day,

Paul Daly: 12:21

was only like a year ago.

Brian Kramer: 12:23

We read this, we're retailing five 6000 cars digitally a year. And I think that the biggest mistake that he makes is that trying to defend why we shouldn't go digital, instead of figuring out how to do it and then letting the customer at the auction. So

Matthew Haiken: 12:37

digital and digital, it's it's there's a lot of meanings to that. I mean, are they transacting? Are they doing DMV work? Are they setting up transportation digitally? Or are they just working a payment sending a lead? It's a complete digital

Brian Kramer: 12:50


Jasen Rice: 12:51

And this is a guy who's signed up the first deal, right? The first Metaverse deal.

Brian Kramer: 12:56

loves talking about the first first

Daniel Govaer: 12:57

and last actually, yeah, it wasn't. It was so

Paul Daly: 13:02

great. No one could top it. It was like about they wrote the perfect song.

Daniel Govaer: 13:06

That's it's the dodo bird and the Hindenburg. But moving on. There's we actually touched on we broke the news first here on the wheel. I do believe we broke the news here first on the wheelhouse that the extreme shortage of used vehicles under $20,000 for the purchase price. And now it's everywhere, right. So even market watch this this week coming out with an article illustrating again, the shortage of those under $20,000 vehicles, but also the fact that of those vehicles that are under $20,000, that there are 20,000 more miles on them now than there were in 2019. So we're talking about miles in the 60s as opposed to miles in the 40s. And so you know, is this another? Is this an which who's the which is a casualty here is this inflation? Is this is this post is just another post pandemic casualty? And is this Do we see this basically being the continuation? Is this just how it's going to be? And do we need to just change our expectations for what an under 20k car should be?

Paul Daly: 14:04

I think it's going to go back.

Unknown: 14:05

I think it's a casualty of just inflation, maybe partially, but also, it's just the supply, that one of the stats was like 63% of all home use vehicles listed. Were under$20,000 or somewhere like that. And now it's like 13%. I think that's just indicative like it's going to take years to catch up. But I think under under 20,000 will normalize somewhat, it'll still be higher than it was in 2019. But I think there's someone normalized by maybe 2025.

Daniel Govaer: 14:35

So we'll have the cheap markers before we have everybody going electric essentially, at least that Yeah, way before.

Jasen Rice: 14:42

I wasn't aware I think I think you've seen Carvana get a little bit uptick in in the stock market and everything in the results and stuff. If you look at their site right now they got 30,000 us cars and 10,000 of them are under 20 grand. A third of their inventory is 20 grand or less so Wow. They get a lot. Yeah, they got a lot of car Cars offered there. I think

Matthew Haiken: 15:01

that's one of their that's one of their core strengths is buying cars from the public. I mean, that's that's, I think, where their genius is they really know how to buy cars from the public. And that's where those cars sit.

Daniel Govaer: 15:10

But what type of car that is has changed dramatically over the past three years. Right? So is that is that changing? How who were retailing those cars do is that changing anything about warranties and financing? And what the public is willing or is public just willing to accept it? I

Paul Daly: 15:24

think affordability is driving the bus. They'll accept whatever they can afford.

Daniel Govaer: 15:29

So that's so that's essential, we're willing to make those compromises is basically based on affordability. And that's whether it's either the casualty or the victory of inflation.

Jasen Rice: 15:36

It goes to the JD Power report that we were looking at earlier, the first transaction price decline in 11 years. Okay, it declined almost$700 the first time transaction prices declined. And I think it's just customers with higher interest rates. So they said the other thing year over year, the prices dropped 800 bucks, but average payments. 18 bucks. Yep. Yep. So customers. It's a high demand card. It's hard to come by.

Daniel Govaer: 16:01

Okay. Don't pull ahead from future segments to make your point like in this one. Case points away. Yeah, negative. Let's take his 51 points away. No, I'm taking I'm taking three.

Paul Daly: 16:19

Point my only chance to beat a

Daniel Govaer: 16:21

three point penalty, but okay, no, I'll give you guys a chance to get back into the ring. So we touched on this and let me so let's expand on it. What we went through a pandemic and who we weren't on the idea of digital retailing, we got into the idea of digital retailing. And Matthew, like you pointed out, everyone's got a different version. We all say it, we don't all mean the same thing. But what have we actually learned now that we're post pandemic? And now we're dealing with this reality? What have we learned are the definitely like don't do's with digital retailing? What have we learned absolutely stay clear from? And you can't say the metaverse because that's obvious. No, I just

Matthew Haiken: 16:54

I think we're completely turned around. I mean, we went from the pandemic where everything was touchless, pickup and delivery drop off, etc. into a place where people were just picking up the phone call, do you have that card want to come in. And I think we're gonna have to redefine all our definitions of what it what it actually means. So I think we're right back to where it started right now. And it's not until inventory really, really starts to creep up at the end of the year, where we get back to the roots of digital retailing.

Jasen Rice: 17:25

I think it's half and half like talks about you know that first half of doing research, but you want to kind of finish it off at the store, you know, get in there, just make it quick and easy for me, don't drag me through all these steps, and sit there and wait for financing. And then, you know, I think it's mostly just, I think customers want a half and half mix. They want to be able to do as much as they can online and then get in the dealership be in and out pretty quick.

Daniel Govaer: 17:50

Brian, I've bragged on you, but I mean, you know you see this every day, you're you're you're looking at a lot of cars that are available for sale online. What What have you seen that definitely just isn't working?

Brian Kramer: 18:01

Well, I think that people need to realize that they are, there's a retailer, it's not a lead generation tool, it's actually should be transactional, the credit application should populate the CRM. Same thing with the trade appraisal tool, same thing with everything. It's not mapped, and it doesn't it's not integrated. That's all it is. It's just lead gen. I think that's one of the biggest crimes that we committed and reverted back to, it should save everybody time. But when you put something on your on your digital retail tool that says, Click here for Express Checkout, and then the client fills out and populates all that information, and then they show up and like all while your listeners fill it out again, because now you're back on the Ferris wheel for round two. And like I said, that's why I did all that ahead of time for my doctor's appointment. You know, we were flipped out if we did that induction and they didn't acknowledge what we the time we spent.

Matthew Haiken: 18:48

I've said this in the past, it is not a linear process. Like some people want the credit app up front, some people want the credit up as the last stage somebody won't be the same A to Z linear road to sale can't

Daniel Govaer: 19:02

be a bolt on solution. No, it's got to be it's got to be your process. It can't be a bolt on solution. Alright, moving moving towards the bread and butter here. So we went through just megabytes of PowerPoint slides from both JD Power and Cox automotive. So you don't have to. And we're gonna unpack that a little bit, or at least some of us did. And some of us are looking at it now. But that doesn't matter because we're speeding reverse, right. So it looks like with the aggregated data that's out there. Let's save you the time from having to go through this. But I think we've got enough info out there to really solidify our new and used car operations. And some really, and some really good and somewhat surprising and somewhat not surprising info. But Jason since you started since you opened the Pandora's box. But knowing and probably one of the foremost minds in that in that in that realm. Let me start with you and tell me what caught your eye.

Jasen Rice: 19:55

Well, I think it was the coxswain where basically you know, looks like up ticking used Retail daily sales for August. And again, I think the it's a seasonal adjustment that you'll see a little bit uptick, your stabilization and wholesale. But if that comes back down to normal, it will go directly down like it did last year. If you look at the trend lines in that, that report September, October, November, December each month after August, it kind of was a drop off in the meantime, yes, used to retail availability supplies less than less than last year, about 10%. I think they said, but it looks like it's been going up since the 12th week of this year. And I bet those lines are going to cross here in the next two to three months or two to three weeks. And you're gonna see more more used cars out there as new cars getting the attention with lower rates.

Daniel Govaer: 20:40

Yeah, I'd love to have someone from from the Fed here to just ask them. Are our transaction prices high enough now? Like is we got? Have we gotten to that point yet? New us? If we got us? I

Paul Daly: 20:52

hope you're happy one of those moments?

Daniel Govaer: 20:54

Are you happy?

Paul Daly: 20:56

Are you not entertained? Right. Was that Gladiator?

Daniel Govaer: 20:59

You have nothing else? Right? It's I mean, I just I would like to know where the I'd like to know where the high water limit is. So they

Paul Daly: 21:08

would they they would like to know what that is? Fair.

Brian Kramer: 21:12

Brian? Well, I'm looking at all this MMR data. But I'm realizing it's only just a cross section. It's, it's, let's say a little over half of the data, that it's not something I'm willing to, to put as much weight into because it's become so decentralized, VCB auctions car offer all these different auction sources, if you could somehow aggregate all that data into one place and figure it out. And then it looks like, like I've been hearing or saying for two years that MLR is at the peak and it's can't go any higher and just continues to climb and climb. So I'm not saying that anymore. Because every time I do it just keeps going up. And but it's it's a matter of MMR as compared to what if you were able to really look at all the transactional data, you see the gap between wholesale and retail so tight. I don't know if you call it wholesaling. But I don't know that that's an accurate measurement. It just seems like the right cars are still bringing all the money in the wrong cars for the ones that

Matthew Haiken: 22:08

always do they pull out electric cars and seeing like 50% off window sticker that's going to be the new percentage of cars under 20,000. You know, right? And those third parties I mean, they they really are they're struggling I don't even think they haven't published their transactions because it's it's down so bad. I mean gurus under with car offer. Last week, they they they got punched in the face. You know, and again it last week there was there was one buyer one big buyer out buying cars, I think that was the blip. I think you're gonna see a steady decline for the rest of the year.

Daniel Govaer: 22:48

What I mean, what about purchase affordability? And actually you don't before I get to that, I mean, they'll talk about us real quick because on the JD Power report, we're saying current use days to turn is an average of 39 days. I don't know what everyone's you know, seeing in their particular neck of the woods, but I mean, what, what 39 days, is that right? Wrong and different? Would they

Paul Daly: 23:07

say it says that's 10 days faster than previous years?

Jasen Rice: 23:13

Yeah, but you're getting into I mean, one Cox's 45 but two is again, this is seasonal, this is stuff that as people get that I mean, my kids started full day today was the first day back to school, we gotta get cars, you know, my teenagers gonna need a car you get just as that seasonal uptick. Cut plus, again, July, August tends to bring on that new car tension where summer sales events, summer sales at Don's and leasing starts to uptick. And, you know, I think that that attention is there, and you see it in new cars is creeping up new, and I'll circle back to us. But new car sales is creeping up. But there's not It's not double, there's double the inventory available selectively, as Brian mentioned earlier, but there is double the inventory out there and the sales are creeping up for new so it just means more trades and everything are gonna be coming into into this equation. So I think it's just a quick little snippet of good business to turn but also how many of those cars in about the auction trying to get wholesaled out of here

Daniel Govaer: 24:05

to what's in what's so what's the deal with pickups? Because that's I mean, I'll be honest, I mean, that's an area I'm not that familiar with. But I was surprised to see pickups and, you know, high end luxury vehicles mentioned in the same sentence, as they're both suffering a bit on the new car side of things, you know, in terms of their pricing their sales rate. And so why why pickups all of a sudden, because that seemed to be that seemed to be something that was unstoppable

Brian Kramer: 24:29

as expensive as a luxury vehicle,

Matthew Haiken: 24:31

right. And inventory. I mean, the inventory is there. I think with the shortage of inventory people need people need work vehicles, but inventory comes up and normalizes everything

Daniel Govaer: 24:43

is a demand. Just ask you guys. I mean, it's just some things that are obvious that we've seen, right? So interest rates clearly have gone on understand it's not necessarily affecting our rate of sales, but interest rates have gone up. values have fluctuated and there's no arguing that across every segment things are worth less than Then they were same time a year ago. Right? So do these just normal car factors, right, higher interest rates and tougher trade equities? Is this is this effect? Is this essentially all that's affecting? Or are a large part of what's affecting our rate of sales? Is it making our time to transaction a little bit longer as we figure these things out? Because this will just I mean, that's pretty normal. I would say definitely for the for this time of year also. But is this something that we're just going to be seeing as a cooling damper on our new and used car sales for the rest of the year? And if it is, you know, what's the is there? What's the bullet?

Jasen Rice: 25:33

Alright, gas prices are up 80 cents. Since the beginning of the year, you calculate that on top of higher interest rates, and on top of everything else, we're paying inflation, people just need cheaper vehicles right now and trucks aren't there.

Paul Daly: 25:47

Are you all in the pricing? Are you all starting to see people showing up underwater in their trades? More than you were a year ago? Yes. Right. That's that's going to be a big factor, especially as affordability. And this plays out even further, more and more people are going to be coming in with negative equity in their trade. When a year ago everyone was like, oh, like I traded in a lease, a 36 month Telluride lease I traded last year, and I got a check for 14 grand right now. I'd be paying to get out of that. So I mean, especially on the more expensive vehicles.

Daniel Govaer: 26:18

Yeah, that's right. Exactly. And, and so we're seeing like, it's harder and harder to get people out of leases. You know. So I mean, and that's, and so there's, I think, and also, when we go back to talking about buying cars from the public, you know, first of all, it's like, everyone will agree, and everyone wants to say like going to an auction is gonna be the worst place to buy a car. But everyone is going to look at what the reporting data from MMR is to decide at the end of a quarter a day or a week about what the strategy to get their inventory is. And now I'm going to say like to buy a car from the public is bought for us to just be operating buying cars from public, is it from the public? Is that not gonna get increasingly difficult as we move forward?

Matthew Haiken: 26:48

I mean, we're gonna have so much competition because the cats out of the bag, everyone knows that's, that's how you get your best trades. So everyone now who never invested in buying cars from the public is doing it. So yeah, if

Daniel Govaer: 27:00

MMR is less than residual, no, is it better? Are you getting a better deal buying it from the client?

Brian Kramer: 27:05

Yes, it depends on the scarcity, average days on market, and apart isn't tracking where the where the value is going. It's tracking where it's been for the last 45 days. So it's not caught up on an Eevee that really just had an MSRP change. It can't, it's not instantaneous. There's still a lag, measure beta

Matthew Haiken: 27:22

$1,000, dealer fee, 1500, recon, another nickel and post inspection fee. You know, the house always wins.

Jasen Rice: 27:32

I think the dealer with the biggest rebates are gonna win that battle, because they got that trade allowance, they can show you know, absorb that negative equity, get that customer out of it. If they need to replace a car, not just sell it.

Daniel Govaer: 27:41

So we're so we're just going right back to artificial demand then. And that's and maybe that's why we're seeing it's kind of moving in a direction opposite of what we're seeing demand and

Jasen Rice: 27:51

it gets incentives. One.

Daniel Govaer: 27:54

Good news is it's recorded. So we'll be able to, you know, in three months, we'll be able to look in the rearview mirror and see which one of us had the 2020. But all right, we, I'm glad that we went through that. And I think that I mean, if you haven't seen the report, by all means, go ahead. But honestly, I mean, those are the things that we've got our eyes on from there. All right. Moving on from from that I think we're gonna I'm going to total up my points here real quick. And the winner of our of our point total is going to go into a rapid fire section. Minus three so 48 points. Jason rice, followed closely by everybody else with a zero. But But that's, that's only because I don't really want to keep track down. I was gonna say, no, no, I mean, you all did you know what, Paul, you have 17. Brian has eight. That's a new commerce. So you want to keep this? Jim ready? Yeah. All right. So So Jason, if you're ready, I've got I've got six questions for you. All right. All right. One. How many weeks will the UAW strike last? Five All right. What music should any da get to play the opening party at their Las Vegas fear?

Paul Daly: 29:13

Oh, these are great questions. I really

Jasen Rice: 29:16

want to wait next segment on that. You chime in on that one. Killers music?

Daniel Govaer: 29:21

The Killers. This isn't a collaborative effort.

Jasen Rice: 29:24

take points away from me then.

Daniel Govaer: 29:28

Don't be so cavalier with these points. All right, Jason. You could open up a franchise dealership tomorrow. What OEM are you choosing?

Jasen Rice: 29:36

I do I would do sports. I like motorcycle ATV side by side type one. But anyways,

Paul Daly: 29:43

how do you bet a sports franchise like a soccer?

Unknown: 29:46

No like, like

Daniel Govaer: 29:48

buying the brown let's put it this way. What automotive franchise would you definitely not choose?

Jasen Rice: 29:58

Oh, shit, I don't know. they can no Oh no

Daniel Govaer: 30:03

she's like I got one of those sorry All right, what's the new neck? What's the next car model that's going to be discontinued from a manufacturer

Jasen Rice: 30:15

call you like this real? No No those are gonna stick around manufac people need cheaper cars shoot tech as ribuan know

Daniel Govaer: 30:29

you're eliminating an entire

Jasen Rice: 30:36

planet already got canceled in it originally. No it didn't

Daniel Govaer: 30:40

know it got actual pickup truck owners from what I understand but

Unknown: 30:44

not canceled. It was

Daniel Govaer: 30:47

alright if you if you had a if you had fully autonomous like level seven whatever it needs to be in your current vehicle would you would you use it?

Jasen Rice: 30:58

No no, it's a big three 350 dually the thing Oh freaking crushed by it something happens man.

Paul Daly: 31:07

It's been a Model S is heavier than your dually I think

Daniel Govaer: 31:12

last question to wrap it up what's the worst job to have right now in the automotive industry wholesaling. Wholesaling. Okay.

Jasen Rice: 31:23

It's gonna be a tricky one right now.

Daniel Govaer: 31:26

All right, well, they're young ladies and gentlemen, and just just a little bit over.

Jasen Rice: 31:31

Bring that up because 49% I saw him at the lane. It was in the 70s this time last year,

Daniel Govaer: 31:35

you know, you had time to bring all this up, you know what you did? And you took from a segment and now you're just we're over budget.

Jasen Rice: 31:42

You can have my points there.

Daniel Govaer: 31:45

Yeah, I'm not giving you points anymore, if that's how you're gonna do it. Alright, guys, thank you so much. For such check how many points you didn't get. Thank you so much, Denise Nathan, Southwick that helps produce all this and put this together and make it look way better than if it was just us doing it ourselves. Thanks for joining us here on the wheelhouse. And we'll see you again next week with a whole new cast. Maybe a whole new set of questions as we try and decipher what this is in our crazy business called the automotive industry. Thanks again for joining us and see you next week.

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