I’ve been off line for a moment, But In read this article this morning on online giant TRUEcar gazillion dollars funding. I decided to Tweet this Press Release a few times as it chaps my ?!% to no end. “TRUECar Nets $200M In Funding – Investors.com: “http://bit.ly/pmf7Oh, Let me tell you, Know the REAL TRUECar Value, they aint sharing profits with Dealers. ” I personally have less respect for companies that are non support of Small Business owners toward profitability to market online wholesales Dealer Car market prices and not share their profits.

I guess TRUECar thinks all Dealers are online cooks and consumers need to know the “Chrystal Ball” no profit online below invoice, below wholesale book online pricing efforts of what True Cost Is shameful. For Dealerships or any businesses in today tough economic climate that uses such marketing tactics and or spin with profits disclosure and using words like “Transparency.” It’s Juvenile! It’s Like the Word “Stimulus.” Mean Well but Does Nothing. What Other Industry Gets this treatment in pricing standards?”

I would like to know the spin on hurting dealers profits and advertising cost to customer?. No other industry has this platform of a spinning transparency. Surely you would think the Boats, Motorcycles, Furniture could tell us cost. What about Real Estate Market Transparency of disclosures of what the home owners owe on houses to negotiate from their balance owned instead of market.
If TRUECar tell you they’re supportive of Dealers that all hype and Bull. We as industry professional have just accepted their hype and still sell. But watch this company. One instance they have a dummy up sales program marketing claiming to helping Dealers., the Next Program that will net Trillions of dollars to rouge companies such as TRUECar is for Dealers to post their MSO’s and invoices.

Then Financial Statements online to the Public. They would spin this ridiculous notion too, as “Transparency”. Who knows for money, Any Crazy Idea to manipulate small business owners profits is at risk.

Transparency, That word use to mean Open. But TRUECar from the beginning with Manufactures, Banks and Insurance support now means in selling at low profit margins. What are Dealers to do? It’s Monstrous to think what small business owners such as Dealer have to contend with. No other Industry get such dividedness and back stabbing of the Dealer” Small Business Owners. They Still Survive, but should be more in profits for Dealers Not Just Manufactures. It s a fact the Manufactures will bail and shut down stores again without a blink of history in franchise relationships. It’s Just True Business.

The amazing thing in this instance TRUECar $200,000 million in funding., Dealers should be commended for putting up with such garbage rouge marketers such as TRUECar. Yeah I said it. Somebody needs to speak up. But there’s money in it somewhere for insurance companies and banks to shell out his type of money to offer cost marketing pricing to customers. Who wins?

The Dealers will tell you it “bring someone in the door and sell at invoice with the hope of Backend Heaven. With new regulations coming again, Round two of a Banking Regulation Bills that WILL include Dealers will come again, then what?

Well … “It’s a Car Deal.” With the lack of manufactures efforts to protect car value market has forced Dealers a back stabbing fight for profits legitimately, while companies such as TRUECar makes millions in private funding, struggle with CSI and good will opportunities a challenge. Do you think TrueCar share their profits with dealers? The manufactures and Auto Associations are to blame as well. Give us your thoughts. Bend your knuckles and comment now.
Post your Comments

Written Opinion : D, Sims CarLance contributor

A Recent May 2011 Automotive News Article regarding the possible” Used Car Bubble” prediction has created a lot of buzz lately online for discussions in Dealers conversations. Personally, I don’t think a used car bubble exist or will happen anytime soon. Yes, it’s good to bring up the subject since it’s clear that the used car market is just about to down swing starting in 4th quarter of 2011 of over inflated pricing due to increased new car inventory injections. But the article does make you think about a pricing bubble, like the housing market bubble that is still not bottom out. Yes, its possible that the used car market can become over inflated sooner than expected. I think the subject in used car pricing discipline should happen now, mainly to break the crazy spell of how some dealers have lost their minds in used car purchasing and selling.

Is it true market demand? I think not. In my opinion it’s only right to talk about a bubble prediction to slow down the ridiculous wholesale used car markets. But with the pre-owned market that has been hot like this during the ” dealer survival period the pass few years” as banks was only financing used base on consumer profiles in recovery and market confidence. The market will stay used cars until consumer and market confidence rise. The Banks drove the used car markets up largely in secondary credit lending and more viable dealer profit potential compared to new car profit margins. The subprime housing market is still in recovery and used cars will still dominate the auto car market for a minute more now from inventory tsumani recovery.

A used car pricing bust will start probably happen next year, as the current shortage of new car imports production has taken a drive from the Japan earthquake to keep market prices at the same level until year end. During this new car inventory scramble, new car profits will rise. But once inventory levels and the shock of Japan earthquake wears off. The new car market is coming back to compete. The manufactures will force this to happen with their dealers. The manufactures hefty investments in EV, GO Gas, Hybrid cars is the futue and the new green must get sold and will take priorty in the markets, like it or not. The old conformity of selling used at a 3:1.5 with a franchise sign will change.

Now back to used, If the earthquake didn’t happen, I would say yes, the bubble would be probably be ready to take a belly flops sooner, as the manufactures has previous aggressive programs on new cars and inventories were getting back to 2004-2005 inventory levels but now better dealer controls. It’s a thought to get scared of a possible used car pricing bubble, but there’s not enough indicators to run for the hills just yet. But whoever thought of putting this thought out here for Dealers consideration on market pricing was correct and brilliant to keep a corrale on the bullish used car market.

If used car inventory scare on the bubble is 60 days of inventory that’s a no brainer to sell and trade out based on pass history. It’s when you’re not using inventory tools and you have a inflated 6 months of bad stock, now that’s another story. Of course inventory management in using your better judgment to purchase inventory at the right market price while using the best data inventory tools to make proper decisions in replenishing and bid trade new stock is double important. But for those Dealers that are not planning a proper inventory strategy, take a lesson from the 2008-2010 bubble burst depression in the housing market. Yes, Dealers inventory can collapes again into depresson mode at any time. So take cover, it can happen in used cars with no thought of a manufactures or goverment bail out for sure to dealers. A good idea is to keep inventory and pricing margins in check with every tool and resource you can find, you’ll need it.

Deborah @ CarLance