F&I and Showroom, May 2016

LETTERS www fi magazine com 4 F I and Showroom May 2016 Vice President Group Publisher AutoGroup Sherb Brown 310 533 2451 sherb brown@ bobit com Publisher Dealer Group National Sales Manager David Gesualdo 727 947 4027 david gesualdo@ bobit com Editorial Director Gregory Arroyo 310 533 2592 gregory arroyo@ bobit com Assistant Editor Eric Gandarilla 310 533 2588 eric gandarilla@ bobit com Art Director Vince Taroc Graphic Artist Jeff Polman Great Lakes Sales Manager Robert Brown Jr 248 601 2005 robert brown@ bobit com Sales Marketing Coordinator Tracey Tremblay 310 533 2518 tracey tremblay@ bobit com E Media and Print Production Manager Brian Peach 310 533 2548 brian peach@ bobit com Audience Marketing Manager Tony Napoleone Chairman 1961 2014 Edward J Bobit President CEO Ty F Bobit Chief Operating Officer Cyndy Drummey Chief Financial Officer Armand Del Duca Business and Editorial Office Bobit Business Media 3520 Challenger St Torrance CA 90503 Fax 310 533 2503 Change Service Requested Return Address Bobit Business Media PO Box 2703 Torrance CA 90509 Subscription Inquiries 888 239 2455 BobitPubs@ Halldata com Printed in U S A WRINGING DEALERS DRY TO THE EDITOR A couple of things came to mind after reading your news story about Dealertrack Dealer com and MakeMyDeal coming together TrueCar raised a lot of money from investors with a model that tried to convince customers they would save a lot of money by using its service While this may work out for customers did anyone stop to think about how TrueCar really makes money The truth about TrueCar is its business model which lets customers know what someone else paid for the same vehicle ends up costing dealers 395 per delivery Why any dealer would sign up for such a program is beyond me Now online retailers like Carvana and Vroom and Coxs MakeMyDeal have arrived on the scene Dealerships are already paying for all of Cox Automotives many programs and now Cox is going to try to convince dealerships they should also pay for MakeMyDeal because customers want an online experience Cox Automotive is saying that dealers will make more money from this service but the truth is the lowest bidder is always going to win Shame on any dealer who falls into this trap In fact the only dealers I see using these types of services are the desperate ones who think they might pick up a few extra deliveries Really if these services were so great wouldnt everyone sign up for them What these programs aim to do is replace salespeople and managers with anyone willing to work at delivery points for minimum wage Henry Ford would be turning over in his grave if he knew what was happening to the industry Robert Moy President Automotive Development Services Rochester N Y READ THE FINE PRINT TO THE EDITOR I am amazed that people would sign a contract without reading the fine print as was the case in your news item about the woman suing Santander Consumer USA Discrimination Suit Against Santander Allowed to Proceed Page 8 If more people would look at what they are signing then there would be no misunderstandings and no need for these less than scrupulous attorneys to file law suits like the one filed against Santander I cant tell you how many times Ive seen folks with less than perfect credit and even terrible credit folks I thought would never get bought get approved for vehicle financing I have been in this industry since 1988 when people with 700 credit scores were paying 9 to 12 interest for auto loans In those days people with low credit scores got interest rates of 27 These days a finance source would be putting itself in the line of regulator fire if it approved a loan with an interest rate that high I have no sympathy for the banks that charge these kinds of rates Mike Linell Business Manager Landmark Dodge Chrysler Jeep Independence Mo DECEPTION AS A SALES TECHNIQUE TO RON REAHARD I read your column last month Your Sales Manager Is a Criminal Page 34 and I think I know why payment packing schemes like the one you detailed are happening See it is my belief that todays sales managers and finance managers dont know how to sell For these individuals its easier to slide a product in and tell the customer theyre getting it than actually building value and asking for the sale which is sad Sales and finance people would be amazed how many people would actually opt in for products if they just asked Richard Cremo Jr Business Manager Freedom Powersports Hurst Hurst Texas Thanks for your note Richard I couldnt agree more Deception is the primary sales tool of the lazy and incompetent The top performers in F I discover the customers needs and help them see how each product will benefit them specifically Ron Reahard SELLING WITH A MENU TO GERRY GOULD I read your March article Mastering the Menu Page 12 and I really appreciated what you wrote There was a lot of good information in it Jon Floyd VP Sales and Marketing Plastic Mailers Baldwinsville N Y