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Speaker 1: Welcome to How to Money. I'm Joel and I am.

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Speaker 2: Matt, and today we're talking about navigating the kind of

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Speaker 2: crazy car market with Car Dealership Guy.

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Speaker 3: Yeah, so Joel, this is the first anonymous person who

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Speaker 3: we have interviewed here on the podcast, and actually for

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Speaker 3: a good reason, because the Car Dealership Guy CDG. That's

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Speaker 3: how we're gonna refer to him during this episode. But

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Speaker 3: he has blown up on Twitter thanks to his insider knowledge,

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Speaker 3: his consumer friendly advice on automobiles. He started out on

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Speaker 3: a car lot, he started out selling cars, moved on

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Speaker 3: to owning a dealership, and now he is the go

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Speaker 3: to guy when it comes to trends within the car market.

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Speaker 3: He's got a podcast, he sends out car market sites

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Speaker 3: to over forty five thousand folks via his newsletter, and

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Speaker 3: of course we're excited to have him here on the

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Speaker 3: podcast today. So CDG, thank you so much for joining us.

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Speaker 4: Thanks for having me on guys, CDG.

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Speaker 2: We're so pumped for this. I've been following you on

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Speaker 2: Twitter like it seems like everybody else these days, for

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Speaker 2: largely for those car buying insights, and there's just so much,

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Speaker 2: so much interesting information that you audition out feels like

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Speaker 2: every single day. But the first question we ask everybody

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Speaker 2: who comes on on the show, we want to know

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Speaker 2: what they like to splurge on, because Matt and I

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Speaker 2: we like to sploorge on craft beer. We're drinking one now.

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Speaker 2: And what is that in your life? Like you're saving

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Speaker 2: and investing for the future, what's one thing that you're like,

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Speaker 2: it's been a little extra.

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Speaker 1: This is my thing.

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Speaker 4: Look, guys, I don't think I'm as interesting as you

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Speaker 4: with craft beer, but you know that that Pellegrino at Costco, Man,

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Speaker 4: it always gets me. I walk by and I'm like,

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Speaker 4: I'm like, do I really need this? Or to stream

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Speaker 4: at home? Yeah? And you know what, I'm like, you

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Speaker 4: know what, let's splurge and got to get the glass,

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Speaker 4: not the plastic bottles. Very important.

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Speaker 3: Okay, So what is it? Does the glass pelagrena? Does

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Speaker 3: it just make you feel that much classier?

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Speaker 1: Like, well, do you stick your peaky out while you're

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Speaker 1: drinking it?

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Speaker 4: Not quite? Not quite? But hey it tastes good.

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Speaker 1: Well, I do like that.

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Speaker 3: I heard you say soda stream as well, So do

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Speaker 3: you also do that at home? Just when you're feeling

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Speaker 3: more like the common man? Do you uh, you fire

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Speaker 3: up the soda stream, but when you're feeling extra fancy.

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Speaker 4: Definitely have a soda stream. I think it's also this

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Speaker 4: like evolution with money in my own life, where there's

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Speaker 4: certain things, like you said, like what do you splurge on?

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Speaker 4: Like go five years a decade ago, I would have

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Speaker 4: never purchased at pelagrene On store, Like I just wouldn't

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Speaker 4: have done it. It was just against my nature. But

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Speaker 4: I feel like, as you know, you get a bit

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Speaker 4: more comfortable over time. I'm still very frugal in nature,

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Speaker 4: but for me, like there's like little things where I

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Speaker 4: just I gotta get that Pelagreno bottle.

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Speaker 2: Man.

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Speaker 4: I don't know how to tell you yet. It makes

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Speaker 4: me feel good.

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Speaker 3: So no, yeah, no, I love it. I love it,

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Speaker 3: no hate at all. I mean we all have our

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Speaker 3: different splurges, and you know, to us it might seem money.

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Speaker 2: We encourage those splurges, right, I love that you do

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Speaker 2: it just like know yourself.

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Speaker 1: Yeah exactly.

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Speaker 3: All right, Well, enough about sparkling water city dealers. Let's

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Speaker 3: talk about the just the car markets. Let's start with

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Speaker 3: recent history. Can you give us basically like the cliff

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Speaker 3: notes version, if you don't mind of just what happened

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Speaker 3: over the past few years and both to the new

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Speaker 3: and the used car markets during COVID, and honestly and

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Speaker 3: just why everything just still feels so out of whack today.

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Speaker 4: Yeah, I mean, look, the car business has gone through

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Speaker 4: the most just transformational period in the last three years,

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Speaker 4: and it has in the prior twenty or thirty years

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Speaker 4: and thirty years ago. I wasn't in the business, but

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Speaker 4: I can tell you that what and when lockdown started

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Speaker 4: around you know, March twenty twenty, we simply shut down

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Speaker 4: supply chains and that had just ramifications on used car

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Speaker 4: supply that we haven't experienced before. And so for the

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Speaker 4: first time ever, you know, all these dynamics started changing

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Speaker 4: interest rates where it record lows or you know, all

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Speaker 4: time lows really and we start entering a new phase

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Speaker 4: in the new US car markets. Now, let's let's sort

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Speaker 4: of fast forward and talk about what has happened over

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Speaker 4: the last three years. New cars supply, you know, really

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Speaker 4: dwindled over the last couple of years. We underproduced eight

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Speaker 4: point six million cars. So what does that mean. It

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Speaker 4: means that we pretty much you know, under sold eight

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Speaker 4: point six million cars that I would have made it

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Speaker 4: otherwise onto the streets of America. Now that eight point

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Speaker 4: six million that I mentioned, some of that has been

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Speaker 4: outweighed by people simply keeping their cars longer. I actually

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Speaker 4: just posted about the fact that the average use car

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Speaker 4: on the road today is nearing fourteen years, which is

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Speaker 4: a record. Yeah, it's pretty crazy when you think about it.

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Speaker 4: But still, you don't just make up an eight point

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Speaker 4: six million vehicle deficit by you know, extending the lifespan

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Speaker 4: of certain cars. Right, something has got to give. And

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Speaker 4: what gives well prices. Prices go up because you know,

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Speaker 4: you have you have less supply in the market. And

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Speaker 4: so that's sort of what happened on a new side.

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Speaker 4: You know, we saw a period where cars were selling

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Speaker 4: above MSRP all across the board. You know, certain cars five, ten,

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Speaker 4: fifteenth and above their you know, asking price, and even

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Speaker 4: more in certain cases. You have high line luxury vehicles

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Speaker 4: selling for one hundred thousand, two hundred thousand over crazy

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Speaker 4: stuff really.

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Speaker 3: You know, like those g wagons that Joelsman the GUI.

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Speaker 4: Yeah, the ones that was talking about that kind of money.

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Speaker 1: So no, I'm not over in there.

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Speaker 2: Well, okay, so in Cox Automotive, like a lot everyone's

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Speaker 2: got an opinion, but Cox Automotive when they give an opinion,

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Speaker 2: you listen because they've had so much like longevity in

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Speaker 2: the car space. They say the car market won't normalize

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Speaker 2: until twenty twenty six. Is is that accurate from your estimation?

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Speaker 2: Is like the crazy high jinks and the escalating prices

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Speaker 2: and the fact that cars continue to appreciate against kind

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Speaker 2: of normal money gravity advice like, is that is that

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Speaker 2: going to continue for the foreseeable future?

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Speaker 4: Yeah? So that essentially brings me to the U side.

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Speaker 4: And the reason is because new car supply has pretty

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Speaker 4: much rebounded. Not across the board. Asian brands are still struggling.

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Speaker 4: Domestic brands you know, are doing much better and they

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Speaker 4: have you know, car the lots are filled, incentives are

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Speaker 4: coming back, so new new cars are new. Well why

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Speaker 4: did Coxon I'm going to say that, Well, they said

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Speaker 4: that because it's going to take time for it's going

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Speaker 4: to take time for the market to normalize. If you

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Speaker 4: think that, you know, the average lease is around three years. Right,

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Speaker 4: the last couple of years, we did not lease nearly

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Speaker 4: as many vehicles. Right, it was leasing was down about

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Speaker 4: fifty percent over the last couple of years versus what

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Speaker 4: was You know, historically, we were leasing about one in

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Speaker 4: three cars that were being sold, and so you had

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Speaker 4: less new cars entering the used market. And so now

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Speaker 4: you're in a situation where you know, you have fewer

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Speaker 4: used cars that are being returned to dealers, right because

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Speaker 4: they didn't lease something over the last couple of years

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Speaker 4: that actually purchased their lease that they had already leased

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Speaker 4: from the year's priors. And you just find yourself in

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Speaker 4: a situation where you need to get time to let

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Speaker 4: the market cycle. And so, yes, I think that, you know,

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Speaker 4: conceptually we don't We can't predict the future, of course,

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Speaker 4: but it does make sense to think that we will

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Speaker 4: start to see some normalization within a couple of years.

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Speaker 1: I like to hear that.

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Speaker 3: Well, so you mentioned how it seems like used cars

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Speaker 3: on the road that were essentially nearing that fourteen year mark.

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Speaker 3: Is that solely because of the fact that it's been

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Speaker 3: required of folks, right, the fact that there has been

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Speaker 3: such a limited supply in the cars that we could

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Speaker 3: buy that folks are being forced into keeping their cars

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Speaker 3: on the road longer.

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Speaker 1: Is it that?

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Speaker 3: Or is also the fact that the technology has just

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Speaker 3: gotten better and cars are essentially just lasting longer on

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Speaker 3: the road.

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Speaker 1: Is it both of those? Is it one more than

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Speaker 1: the other.

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Speaker 4: So it's definitely it's a function of both of those, right,

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Speaker 4: because look, cars are better, it's cheaper to fix, and

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Speaker 4: stuff like that. Like, there are ways that you know

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Speaker 4: they are lasting longer, and there's no doubt about that.

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Speaker 4: But you can't ignore the fact that like lease return

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Speaker 4: rates plummeted eighty three percent over the past three years, Right,

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Speaker 4: everyone kept or lease. Everyone was in the money. Right,

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Speaker 4: everyone's car was suddenly worth more. And so again all

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Speaker 4: these different pieces of like the car age life cycle

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Speaker 4: that extends the average that extends the average age of

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Speaker 4: the average car on the road. And if you look

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Speaker 4: at the last couple of years, you see that there's

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Speaker 4: this spike of average age on the road. Right, So

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Speaker 4: it's not like a linear growth of average age over

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Speaker 4: the last decade. Rather the last couple of years you

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Speaker 4: suddenly see a spike because people need they can't afford

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Speaker 4: these new cars. Interest rates are so high, and everyone

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Speaker 4: is trying to do whatever they can do extend the

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Speaker 4: lifespan on their vehicle.

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Speaker 3: Okay, so you said that it seems like that the

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Speaker 3: Asian Asian car, so like Toyotas and Honda's I assume

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Speaker 3: is maybe maybe the key is as well that they're

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Speaker 3: struggling to keep up with supply.

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Speaker 1: Why is that?

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Speaker 3: Are folks gravitating towards some of those manufacturers because of

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Speaker 3: their reputation, just because of the fact that some of

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Speaker 3: the longest lasting cars on the road today are Toyotas

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Speaker 3: and Hondas.

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Speaker 1: I mean that tell your ride so hot right now?

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Speaker 4: Yeah? The tell your Ride is just I mean, everyone

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Speaker 4: wants to tell your ride. The Kia has done a

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Speaker 4: tremendous job on rebranding over the last you know, real

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Speaker 4: again decade or so. But look, I would say it's Toyota, Kia, Lexis, Honda.

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Speaker 4: They are absolutely by far leading with the lowest days supply,

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Speaker 4: which just means, you know, what is this available supply

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Speaker 4: in the market of those cars that would take or

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Speaker 4: and how many days will it will enough buyers based

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Speaker 4: on current demand just deplete this apply in the market. Right,

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Speaker 4: So there's like twenty to thirty five day supply for

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Speaker 4: the cars I just mentioned. That's not a lot, right.

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Speaker 4: Healthy day supplies typically around say like fifty to sixty

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Speaker 4: on the flip side of that, you're seeing on the

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Speaker 4: other end of the spectrum that you know, brands like Chrysler, Volvo, Buick, Jeep, Dodge,

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Speaker 4: they have much higher day supply, in some cases as

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Speaker 4: high as like one hundred and thirty one hundred and

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Speaker 4: forty day supply, and so those lots are filled, you know,

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Speaker 4: incentives are are you know, are are increasing, and you're

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Speaker 4: just seeing that they're not moving as quickly. And of

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Speaker 4: course it's a function of two major things. Demand is

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Speaker 4: number one, right, Yes, more people want to get the

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Speaker 4: Siena over the Pacifica, right like people people want Asian

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Speaker 4: brands for you know, their their reliability and you know,

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Speaker 4: various other reasons. But the second thing is supply. I

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Speaker 4: mean like Toyota specifically. It's funny because I had the

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Speaker 4: same question and I spoke with the chief economist of

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Speaker 4: Cox Automotive, John Smoked, the other day on my podcast actually,

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Speaker 4: and I said, John, I said, why, like what Toyota,

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Speaker 4: you know, the cream of the crop when it comes

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Speaker 4: to manufacturing. What is going on? And the reality is

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Speaker 4: that they just got you battered in so many different ways,

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Speaker 4: from the pandemic, from the lockdowns, you know, from the

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Speaker 4: manufacturing facilities overseas, they had to deal with a lot

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Speaker 4: more issues, and just simply we're not able to rebound

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Speaker 4: as quickly or effectively as many of the domestic US

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Speaker 4: brands have got it.

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Speaker 2: Okay, why why don't they make inexpensive new cars anymore?

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Speaker 2: Like we've seen all the average price of a new

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Speaker 2: car going up to like what forty eight thousand dollars,

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Speaker 2: and it seems like there's almost no new cars available

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Speaker 2: with a sticker price under thirty k, and they're just

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Speaker 2: going extinct, like the Dodo Bird over and over. The

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Speaker 2: Chevy Bolt is one of those where it's like, hooray,

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Speaker 2: finally a cheap used electric or a cheap new electric vehicle,

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Speaker 2: and then boom, Chevy says they kill it. Yeah, we're

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Speaker 2: killing it no longer. So why in the world can

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Speaker 2: nobody continue to manufacture? Why is it all just really

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Speaker 2: we're pushing up the price, We're getting more and more

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Speaker 2: expensive models.

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Speaker 4: I think what the manufacturers are realized is that, you know,

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Speaker 4: the more expensive models the new car is, it feels

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Speaker 4: like it's becoming just like a luxury good, right, These

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Speaker 4: more expensive models have higher margins, They're just more profitable.

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Speaker 4: For the manufacturers. Consumers want to pay for the upgrades,

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Speaker 4: the ones that can afford it, of course, and so

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Speaker 4: you know, conceptually I call this like it's truly the

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Speaker 4: manifestation of like a K shaped recovery, where you have

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Speaker 4: people that are are you know, better financial means they're

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Speaker 4: able to buy these new cars, and you know, people

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Speaker 4: that are lower middle class or below they just have

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Speaker 4: to settle with, you know, a cheaper used car. And

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Speaker 4: so one thing to note is that you mentioned increasing

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Speaker 4: car prices, right, and I want to say that we

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Speaker 4: hur we hit peak car prices late last year or so,

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Speaker 4: but what you're seeing is that since that point it's

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Speaker 4: slightly been coming down, of course, as supply has been rebounding.

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Speaker 4: But I don't want to gloss over the fact that

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Speaker 4: in December you had one in six car buyers pay

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Speaker 4: over one thousand dollars a month for their car. One

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Speaker 4: in six car buyers. Now again, why why why? Well,

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Speaker 4: it's a function of many But like you said, cars

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Speaker 4: are simply more expensive. If people want more well equipped

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Speaker 4: and feature filled vehicles, people are buying lots of trucks

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Speaker 4: and these bigger vehicles, right, there's a lot of appetite

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Speaker 4: for that for the US consumer. And let's not forget

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Speaker 4: that interest rates are at multi decade highs. Your new

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Speaker 4: car interest rate nowadays to average in the US is

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Speaker 4: like nine percent, and your interest rate for used cars

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Speaker 4: is fourteen percent. And so put all these things together,

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Speaker 4: it's just a recipe for expensive, you know, higher priced,

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Speaker 4: and you know, it's really a bleiaque reality for many people.

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Speaker 1: Yeah, that makes a lot of sense.

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Speaker 3: Let's talk about buying new cars, in particular from dealerships CDG, Like,

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Speaker 3: what do folks need to know about negotiating about getting

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Speaker 3: a better price if they are in the market for

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Speaker 3: a new car.

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Speaker 1: I guess, don't buy a Honda Ar Toyota.

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Speaker 4: It's the first thing makes Yeah. Well, look, they supply

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Speaker 4: and just overall supplying the market is a huge driver

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Speaker 4: of negotiability, right, Like if that's even a word, but negotiation,

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Speaker 4: you know, power, call it whatever.

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Speaker 3: So one hundred days supply of jeeps, So should we

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Speaker 3: all be driving jeeps? Should we be looking to the

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Speaker 3: Pacifica's rather than the Cienna's.

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Speaker 4: Look, I'm not going to say that the CDG bump

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Speaker 4: is real, But I'm also not not going to say

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Speaker 4: that it's not real. And I'll tell you what I'm

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Speaker 4: referring to in this. In January, I want to say,

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Speaker 4: I tweeted about buicks and I was like, yo, I

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Speaker 4: was like, these buicks are like the day supplies out

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Speaker 4: of hand. They're rotting on car lots like trash. If

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Speaker 4: you can, you can pick one up, if you're willing

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Speaker 4: to suffer the embarrassment of being seen in one. Now

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Speaker 4: it was meant to be like satire in a joke,

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Speaker 4: but it's true. Yeah, like buicks, I mean they're very hot.

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Speaker 4: They were, you know, leading the market with they supply,

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Speaker 4: and that tweet got like six million views. Now, you know,

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Speaker 4: within a couple of months now buicks you know, have

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Speaker 4: calmed down and day supply. But the point is that, yes,

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Speaker 4: like people were getting good deals on buicks right because

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Speaker 4: there was a lot of supply to market and the

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Speaker 4: manufacturers need to get these things off their balance sheet.

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Speaker 4: They got to get them out, They got to sell them.

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Speaker 4: And how do you sell what you lower the price

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Speaker 4: with incentives?

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Speaker 2: Yeah, okay, so talk to us about incentives and negotiating

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Speaker 2: and MSRP and stuff like that. Like as let's say,

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Speaker 2: one of how the money listener says, I, you know,

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Speaker 2: we often suggest we want a lot of our listeners

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Speaker 2: to look towards the used cars. But we'll get to

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Speaker 2: use cars in a second. In my just terrible time

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Speaker 2: trying to buy one, But talk to us about that, Like,

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Speaker 2: how how do people think about MSRP day supply when

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Speaker 2: they're kind of putting together a formula and a process

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Speaker 2: for what car they're going to shoot for, how to

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Speaker 2: talk to a dealer to the email before heading onto

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Speaker 2: a lot, Like what are all those little factors that

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Speaker 2: are going to help them get a better deal for

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Speaker 2: the car they want?

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Speaker 4: Yeah, so look, nearly one hundred percent of consumers nowadays

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Speaker 4: do some form of research before coming into the dealership.

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Speaker 4: Like it's pretty mind boggling when you think that it's

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Speaker 4: not eighty percent eighty five, it's nearly one hundred percent.

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Speaker 4: It's like ninety five plus. And so people are coming,

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Speaker 4: people are in many cases are much more well informed

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Speaker 4: than the salespeople at the dealership. And really what's important

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Speaker 4: is that you know, of course, do your research beforehand.

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Speaker 4: There's plenty of resources online to learn about the vehicle.

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Speaker 4: You want to learn about manufacturing, you know, incentives and

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Speaker 4: offerings and whatnot. Start to process via text, startups, vehicle

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Speaker 4: phone call email, right, start speaking with numbers with the

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Speaker 4: salesperson or the dealership. Understand what is the you know,

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Speaker 4: what are they offering, what can they really do before

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Speaker 4: you get to the dealership. That's just the best practice

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Speaker 4: and that's what I would tell, you know, my mom

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Speaker 4: if she was shopping for a car. But then once

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Speaker 4: you're at the dealership, it is important, Like there's certain

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Speaker 4: things that you can do to you know, suiteen your

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Speaker 4: deal or make a dealer more inclined to when a

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Speaker 4: deal deal with you, right, And so some of those

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Speaker 4: things are like a big one is a trade in. Right.

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Speaker 4: Dealers need cars, they need you know, quality, you use

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Speaker 4: vehicles to go and resell. And if you can give

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Speaker 4: the dealer an opportunity to double dip, right, which is

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Speaker 4: really make you know, make two sales by getting your

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Speaker 4: trade in and then retailling that again, then yes, you

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Speaker 4: you may get a much better deal. The dealer may

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Speaker 4: even sell you the car on you know, close to

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Speaker 4: a loss if they really want your trade in. And

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Speaker 4: so the trade in is a very very important negotiation

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Speaker 4: tool that you should consider. The second the guy may

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Speaker 4: say about a trade in, which is why it's such

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Speaker 4: a good tool. And this you know when you're buying

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Speaker 4: a car, is that many lenders actually provide better findance

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Speaker 4: seeing options when consumers are trading in your vehicle. And

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Speaker 4: the reason they do that is because you know, the

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Speaker 4: lenders have all these risk models, and if you're trading

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Speaker 4: in your vehicle, that tells me as a lender that

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Speaker 4: you're actually, you know again hypothetically less risky as a

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Speaker 4: as a as a as a customer because you're you're

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Speaker 4: you're going to rely on this vehicle. Right, It's not

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Speaker 4: like you have two vehicles and you know, maybe you

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Speaker 4: can stop making payments on one to keep the other.

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Speaker 4: But I am your only means of transportation, And so

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Speaker 4: you know, trading in a car to a dealership is

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Speaker 4: a great way to really get great negotiation leverage and

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Speaker 4: ultimately you know, likely get a better deal when you're

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Speaker 4: buying a car.

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Speaker 3: Interesting, yeah, because typically when you think about trading into

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Speaker 3: a dealership, you're expecting to get less money, right, I

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Speaker 3: think a lot of folks, I mean that's the way

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Speaker 3: I think. I'm thinking, all right, if I can take

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Speaker 3: if I can clean this bad boy up, take some

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Speaker 3: really good pictures of it. List it myself as a

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Speaker 3: as a private seller. Well literally when you get Kelly

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Speaker 3: Bluebook ideas that I'm going to be able to get

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Speaker 3: more for it. Yeah, you see a difference between private

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Speaker 3: private sale price and trade in price. And so the

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Speaker 3: value is is typically we're doing right when you trade

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Speaker 3: in a vehicle.

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Speaker 4: Yeah, but it's not quite it's not really true anymore

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Speaker 4: because I think or I would say, I don't know

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Speaker 4: if that was ever fully true across the board, because

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Speaker 4: like I said, there's just so much value now in

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Speaker 4: these last couple of years for dealers with getting trade

385
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Speaker 4: ins because you just can't source these cars in auctions.

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Speaker 4: And then the second thing is you have to think

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Speaker 4: as a consumer. Like it also depends what state you're

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Speaker 4: living in, right, Like many states you can get a

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Speaker 4: trade in tax credit. And so when you just sell

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Speaker 4: a car, right, you've paid taxes on that car and

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Speaker 4: now you're selling it and you lose that tax that

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Speaker 4: you paid even though you didn't drive that car until

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Speaker 4: it's worth nothing. And so when you trade in a car,

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Speaker 4: you can also get traded in tax credit, which is

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Speaker 4: just you know, you're applying to taxes that you paid

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Speaker 4: for the current car onto the new car that you're buying,

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Speaker 4: and that saves you money as well.

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Speaker 2: Which is true here in the state of Georgia. We

399
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Speaker 2: used to pay every single year a certain percentage, but

400
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Speaker 2: now it's nope, all up front at once, and so

401
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Speaker 2: you do. Yeah, when you trade in, you do get

402
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Speaker 2: that tax.

403
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Speaker 3: But I stuck with that massive advolre like right, what

404
00:17:54,080 --> 00:17:56,160
Speaker 3: we used to have. Yeah, but I mean, I'm glad

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Speaker 3: you mentioned that though, because I think typically I've always

406
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Speaker 3: viewed the trade in as a very negative option. But

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Speaker 3: the fact that you could potentially get better financing from

408
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Speaker 3: the dealership, the potential for the tax credit, but then

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Speaker 3: also if you have the ability to get a better

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Speaker 3: price for the vehicle that you're looking to buy from

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Speaker 3: that dealership, it Yeah, it's definitely worth running the numbers

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Speaker 3: and considering.

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Speaker 1: I'm glad.

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Speaker 4: I'll tell you something though, like use cars are really

415
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Speaker 4: not marked up or it's like really razor thin margins, right,

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Speaker 4: Like you have some dealers that are marking up use

417
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Speaker 4: cars like five to seven percent. You have other dealers

418
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Speaker 4: that are, you know, maybe higher volume operations that are

419
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Speaker 4: more focused on selling the We call them back end

420
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Speaker 4: products like warranties, insurans and stuff. They're marking their cars

421
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Speaker 4: up like three percent. Some are even selling them at

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Speaker 4: break even, are close to a loss, just to get

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Speaker 4: you to buy the warranties. And so you know, now,

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Speaker 4: the one thing to note, of course, is that that

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Speaker 4: five percent could be one thousand dollars, not you know,

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Speaker 4: fifty and so on, just like a nominal basis. Yes,

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Speaker 4: there's some meat on the bone there, but you know,

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Speaker 4: negotiating the price of a use car, it's already pretty

429
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Speaker 4: much marked. The price of the cars is typically pretty

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Speaker 4: competitive because remember, dealers are competing with every other dealer

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Speaker 4: on these listing sites. Typically the parts that are more

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Speaker 4: like opaque and where it's just harder to compare and

433
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Speaker 4: the margins are significantly higher, say forty to sixty percent,

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Speaker 4: are on the warranties and insurance products what we call

435
00:19:15,920 --> 00:19:16,520
Speaker 4: them back end.

436
00:19:16,880 --> 00:19:19,040
Speaker 2: Gotcha, Okay, Okay, We've got more to get to. We

437
00:19:19,040 --> 00:19:21,920
Speaker 2: want to talk about negotiating maybe more than just the price.

438
00:19:21,960 --> 00:19:23,920
Speaker 2: We also want to talk about what's going on in

439
00:19:23,960 --> 00:19:26,240
Speaker 2: the used car market and the private sale market. We'll

440
00:19:26,280 --> 00:19:28,880
Speaker 2: get some questions, some more questions with car dealership guy

441
00:19:29,000 --> 00:19:29,760
Speaker 2: Right after this.

442
00:19:39,320 --> 00:19:42,520
Speaker 3: We are back from the break talking with car dealership

443
00:19:42,520 --> 00:19:45,880
Speaker 3: Guy and CDG. We were just talking about buying from

444
00:19:46,680 --> 00:19:49,080
Speaker 3: a car dealership. So as you're kind of going through

445
00:19:49,080 --> 00:19:51,399
Speaker 3: the haggling process, you're trying to negotiate. If you're not

446
00:19:51,480 --> 00:19:54,400
Speaker 3: able to get the you know, the sticker price down,

447
00:19:54,400 --> 00:19:55,760
Speaker 3: some are there other options?

448
00:19:55,800 --> 00:19:58,520
Speaker 1: Are there other benefits that.

449
00:19:58,600 --> 00:20:02,560
Speaker 3: You could perhaps negotiate into the package maybe, like I'm

450
00:20:02,560 --> 00:20:06,160
Speaker 3: thinking of changes for life or like the undercarriage spray.

451
00:20:06,200 --> 00:20:07,120
Speaker 1: Or something like that.

452
00:20:07,720 --> 00:20:09,880
Speaker 3: Like, are there other options for what you could get

453
00:20:10,160 --> 00:20:12,840
Speaker 3: out of a sale if you are buying from a dealership.

454
00:20:13,640 --> 00:20:16,520
Speaker 4: Yeah, look, I think that there you can always you know,

455
00:20:17,080 --> 00:20:20,679
Speaker 4: throw in like like, for example, an extra key, stuff

456
00:20:20,720 --> 00:20:22,399
Speaker 4: like that, Like a dealer will not tell you no

457
00:20:22,560 --> 00:20:25,399
Speaker 4: unless it's like a Audi brand new Audi key that's like,

458
00:20:25,440 --> 00:20:30,680
Speaker 4: you know, seven hundred dollars. That's that's yeah. But you know, dealers, look,

459
00:20:30,720 --> 00:20:32,399
Speaker 4: they're gonna want to do the deal, and you know

460
00:20:32,400 --> 00:20:34,200
Speaker 4: it's kind of cost of doing business. Don't throw those

461
00:20:34,200 --> 00:20:35,920
Speaker 4: things in for the most part, you know, sort of

462
00:20:35,960 --> 00:20:39,080
Speaker 4: at the GM's discretion. In many cases, what I would

463
00:20:39,119 --> 00:20:41,520
Speaker 4: say is, like the best thing to do here is

464
00:20:41,800 --> 00:20:43,800
Speaker 4: to really structurally get the best deal. You've got to

465
00:20:43,800 --> 00:20:45,439
Speaker 4: just focus on what has the most supply on the

466
00:20:45,480 --> 00:20:49,040
Speaker 4: new side. And interestingly enough, though right like, that's sort

467
00:20:49,040 --> 00:20:51,240
Speaker 4: of now translating to the U side as well, because

468
00:20:51,240 --> 00:20:53,639
Speaker 4: what we're seeing is that the new cars that have

469
00:20:53,720 --> 00:20:56,120
Speaker 4: increased in supply the most, well, you have to think

470
00:20:56,160 --> 00:20:59,320
Speaker 4: that the prices on those cars are falling the fastest,

471
00:20:59,800 --> 00:21:02,199
Speaker 4: and the used car dealers that have the comparable use

472
00:21:02,359 --> 00:21:05,360
Speaker 4: version of that new car are now facing a weird situation.

473
00:21:05,680 --> 00:21:08,160
Speaker 4: They're saying, Hm, I'm selling, you know, a Jeep that's

474
00:21:08,200 --> 00:21:10,479
Speaker 4: like three years old, but a new Jeep now is

475
00:21:10,680 --> 00:21:12,840
Speaker 4: not that much more expensive than the car I'm offering,

476
00:21:13,000 --> 00:21:15,640
Speaker 4: or maybe it's even almost the same price. And so

477
00:21:15,680 --> 00:21:17,040
Speaker 4: now what I have to do, well, I have to

478
00:21:17,080 --> 00:21:19,280
Speaker 4: discount that car as well. And so again, if you

479
00:21:19,280 --> 00:21:20,880
Speaker 4: want to find a good deal on the use market

480
00:21:21,040 --> 00:21:22,639
Speaker 4: on a you know, three to four year old car,

481
00:21:23,000 --> 00:21:24,600
Speaker 4: just look at the new market and see what has

482
00:21:24,640 --> 00:21:27,119
Speaker 4: the most supply and what has the best incentives, and

483
00:21:27,160 --> 00:21:29,200
Speaker 4: then follow that to the use market, and that's where

484
00:21:29,200 --> 00:21:30,879
Speaker 4: you'll have, you know, a higher likely of getting a

485
00:21:30,880 --> 00:21:31,280
Speaker 4: good deal.

486
00:21:31,600 --> 00:21:34,040
Speaker 2: Kind of like how those nice Tesla price cuts resulted.

487
00:21:34,160 --> 00:21:36,240
Speaker 4: And I was just going to say that, like Tesla

488
00:21:36,359 --> 00:21:38,240
Speaker 4: was the epitome of this where they dropped prices in

489
00:21:38,320 --> 00:21:42,680
Speaker 4: January like twenty percent and overnight, you know, you're new ollers, yeah,

490
00:21:42,720 --> 00:21:44,280
Speaker 4: and the new ones, and you have like dealers doing

491
00:21:44,280 --> 00:21:46,399
Speaker 4: fire sales and trying to just get them get rid

492
00:21:46,400 --> 00:21:48,359
Speaker 4: of them as soon as possible because everyone was scared.

493
00:21:48,400 --> 00:21:49,800
Speaker 4: It was like, oh my god, like the car just

494
00:21:49,840 --> 00:21:52,240
Speaker 4: fell like twenty percent in price. I'm losing my pants

495
00:21:52,280 --> 00:21:54,840
Speaker 4: right now. And it was it was It was not good.

496
00:21:54,880 --> 00:21:56,920
Speaker 4: That was a very you know, tough moment from any deals.

497
00:21:56,960 --> 00:21:58,840
Speaker 4: A lot of people lost a lot of money, but

498
00:21:58,880 --> 00:21:59,840
Speaker 4: it was in an interesting case.

499
00:22:00,200 --> 00:22:04,280
Speaker 2: Nonetheless, all right, talk to me about buying your car

500
00:22:04,320 --> 00:22:06,679
Speaker 2: dealership guy, so you know all about like buying and

501
00:22:06,680 --> 00:22:09,680
Speaker 2: selling from a dealership standpoint, but talk to me about

502
00:22:09,680 --> 00:22:12,320
Speaker 2: buying and selling from an individual level. You talked about

503
00:22:12,320 --> 00:22:15,879
Speaker 2: trading in but I mentioned before we started recent fender bender,

504
00:22:15,920 --> 00:22:18,160
Speaker 2: my two thousand and six Odyssey sadly bit the dust

505
00:22:18,400 --> 00:22:21,840
Speaker 2: and I upgraded to twenty thirteen hond Odyssey. It is

506
00:22:22,000 --> 00:22:25,000
Speaker 2: so much more plush, by the way, but there was

507
00:22:25,240 --> 00:22:30,359
Speaker 2: so little inventory from like a direct individual private seller.

508
00:22:30,680 --> 00:22:33,760
Speaker 2: I was looking on auto trader, Craigslist, Facebook, and I

509
00:22:33,760 --> 00:22:35,840
Speaker 2: had to just be super patient and wait for weeks

510
00:22:35,840 --> 00:22:39,399
Speaker 2: for the right thing to come along. So why it

511
00:22:39,520 --> 00:22:42,120
Speaker 2: just seems like there's fewer individuals selling their cars now

512
00:22:42,400 --> 00:22:45,960
Speaker 2: everything's going online. People are selling direct to some of

513
00:22:45,960 --> 00:22:49,560
Speaker 2: the carmaxes or carbonas that they will make that direct purchase.

514
00:22:49,600 --> 00:22:52,520
Speaker 2: Is that the case is selling person to person just

515
00:22:52,560 --> 00:22:53,280
Speaker 2: a thing of the past.

516
00:22:54,600 --> 00:22:57,320
Speaker 4: So a lot has changed with private party sales, right,

517
00:22:57,400 --> 00:22:59,760
Speaker 4: Like I actually partnered up with a company called Private Auto.

518
00:23:00,000 --> 00:23:02,040
Speaker 4: Basically what they do is they're trying to streamline the

519
00:23:02,040 --> 00:23:04,399
Speaker 4: private sale process where they're trying to make it like

520
00:23:04,440 --> 00:23:06,600
Speaker 4: a fintech right where you truly like you sell a

521
00:23:06,640 --> 00:23:09,600
Speaker 4: car and you're transferring the money like Venmo. And the

522
00:23:09,680 --> 00:23:11,880
Speaker 4: reason for that is because you know, the private sale

523
00:23:11,920 --> 00:23:14,000
Speaker 4: is very clunky. It's you have to you know, meet

524
00:23:14,000 --> 00:23:16,320
Speaker 4: a stranger, you know, do a little test drive thing,

525
00:23:16,560 --> 00:23:19,480
Speaker 4: you know, hope that their check doesn't bounce, maybe accept

526
00:23:19,480 --> 00:23:21,639
Speaker 4: like ten thousand dollars of cat It's like very weird.

527
00:23:21,760 --> 00:23:24,560
Speaker 1: It's a very manual process. That's you know, I felt that.

528
00:23:24,920 --> 00:23:26,920
Speaker 4: Yeah, Now you also have to ask yourself another two things,

529
00:23:26,960 --> 00:23:29,280
Speaker 4: right like who is typically the candidate that wants to

530
00:23:29,280 --> 00:23:31,600
Speaker 4: sell their car privately, and who's the candidate that typically

531
00:23:31,640 --> 00:23:34,840
Speaker 4: wants to buy privately. It's people that are really looking

532
00:23:34,920 --> 00:23:37,280
Speaker 4: to you know, save save on every buck, every dollar.

533
00:23:37,520 --> 00:23:40,440
Speaker 4: And that's okay. But when you have that, yeah, exactly,

534
00:23:40,600 --> 00:23:42,240
Speaker 4: but when you have that type of situation, you know

535
00:23:42,320 --> 00:23:45,679
Speaker 4: that that's essentially the target market, and you know it

536
00:23:45,800 --> 00:23:48,399
Speaker 4: just again, it creates a dynamic where you have to

537
00:23:48,520 --> 00:23:50,440
Speaker 4: we have to really check that car well, make sure

538
00:23:50,440 --> 00:23:52,520
Speaker 4: that you're you're you're not going to pay that much

539
00:23:52,560 --> 00:23:55,800
Speaker 4: below what the you know, quote unquote deal or marketplace is.

540
00:23:56,200 --> 00:23:57,960
Speaker 4: You may find a deal here and there, but you know,

541
00:23:57,960 --> 00:24:00,320
Speaker 4: in today's market, it's so competitive, it's unlike and the

542
00:24:00,359 --> 00:24:04,000
Speaker 4: reason for that is because Carvana, CarMax and all these

543
00:24:04,040 --> 00:24:07,520
Speaker 4: other companies have truly made the sales process just so frictionless. Today.

544
00:24:07,760 --> 00:24:09,359
Speaker 4: You want to sell a car line, you just boom

545
00:24:09,400 --> 00:24:12,040
Speaker 4: pop it into Carvana, car Maax, whatever. You get an

546
00:24:12,080 --> 00:24:14,240
Speaker 4: offer on the spot, and in many cases they even

547
00:24:14,240 --> 00:24:15,880
Speaker 4: pick it up in your house within a couple of days.

548
00:24:16,160 --> 00:24:19,520
Speaker 4: And so this is fundamentally changing the dynamic. And then

549
00:24:19,760 --> 00:24:21,439
Speaker 4: on top of all this just add the fact that

550
00:24:21,480 --> 00:24:24,480
Speaker 4: dealers more than ever are competing for your car as well. Right,

551
00:24:24,560 --> 00:24:26,199
Speaker 4: we buy cars. We buy cars. You see it at

552
00:24:26,200 --> 00:24:28,960
Speaker 4: every dealership nowadays, because everyone needs cars, and so the

553
00:24:28,960 --> 00:24:32,120
Speaker 4: private market has just gotten squeezed in many different directions.

554
00:24:32,280 --> 00:24:34,960
Speaker 4: There's still a lot of opportunity there, but I think

555
00:24:35,000 --> 00:24:37,119
Speaker 4: that you know, it's much more you know, having to

556
00:24:37,160 --> 00:24:39,480
Speaker 4: try and figure out how to really streamline that transaction.

557
00:24:39,920 --> 00:24:42,600
Speaker 4: Most people are not like you, and they are just

558
00:24:42,640 --> 00:24:45,000
Speaker 4: selling to like one of the big companies, even though

559
00:24:45,280 --> 00:24:47,199
Speaker 4: they might get a little bit less when they do that.

560
00:24:47,600 --> 00:24:50,080
Speaker 2: Yeah, understatement of the year. Most people are definitely not

561
00:24:50,160 --> 00:24:50,359
Speaker 2: like me.

562
00:24:50,480 --> 00:24:50,840
Speaker 1: CDG.

563
00:24:52,760 --> 00:24:56,040
Speaker 4: You're very special. You're very very special. Appreciate that.

564
00:24:56,160 --> 00:24:56,440
Speaker 1: Okay.

565
00:24:56,440 --> 00:24:57,959
Speaker 2: So one of the things I kept running into, by

566
00:24:58,000 --> 00:25:00,680
Speaker 2: the way, when I was trying to buy this this

567
00:25:00,920 --> 00:25:06,479
Speaker 2: used car, was like individual car brokers, and I just

568
00:25:06,560 --> 00:25:09,480
Speaker 2: couldn't figure out the angle on that. They kept making

569
00:25:09,560 --> 00:25:12,240
Speaker 2: it seem like they were an individual private seller, but

570
00:25:12,280 --> 00:25:13,879
Speaker 2: then they were like they would reveal the fact that

571
00:25:13,920 --> 00:25:16,760
Speaker 2: they were a broker and auto broker, and I just

572
00:25:16,800 --> 00:25:19,000
Speaker 2: I felt uncomfortable that I wasn't sure how to proceed.

573
00:25:19,280 --> 00:25:21,879
Speaker 2: What what is the car broker game and how should

574
00:25:21,880 --> 00:25:23,680
Speaker 2: like an individual buyer navigate.

575
00:25:23,400 --> 00:25:26,159
Speaker 4: That yeah, this this is sort of a murky topic

576
00:25:26,200 --> 00:25:29,320
Speaker 4: because you know everyone, like different people can claim they're

577
00:25:29,320 --> 00:25:30,880
Speaker 4: a broker and like you don't really know what they're

578
00:25:30,920 --> 00:25:32,919
Speaker 4: doing and what's their involvement. I can tell you that

579
00:25:33,000 --> 00:25:35,760
Speaker 4: like with leasing, there's many brokers and you know, they

580
00:25:35,800 --> 00:25:38,360
Speaker 4: get some allocation from you know, like car out vele

581
00:25:38,359 --> 00:25:41,920
Speaker 4: co allocation from new car dealers, franchise dealers, and then

582
00:25:41,960 --> 00:25:44,320
Speaker 4: they go and least those cars and you know they

583
00:25:44,320 --> 00:25:46,239
Speaker 4: get some you know, it's almost like an affiliate, they

584
00:25:46,240 --> 00:25:48,879
Speaker 4: get some kickback on the cars the day lease for

585
00:25:48,960 --> 00:25:51,760
Speaker 4: the dealer now on a on a used car broker

586
00:25:52,000 --> 00:25:55,000
Speaker 4: or like you know, just a general car buying broker. Again,

587
00:25:55,040 --> 00:25:57,800
Speaker 4: it's it's a very it's a very niche business, very

588
00:25:57,800 --> 00:26:00,320
Speaker 4: boutique like this isn't something that you can really scale

589
00:26:00,359 --> 00:26:03,199
Speaker 4: effectively in my opinion. And the reason again is because

590
00:26:03,480 --> 00:26:05,119
Speaker 4: you know you have to figure out like at the

591
00:26:05,160 --> 00:26:07,119
Speaker 4: end of the day, you as a broker, you want

592
00:26:07,160 --> 00:26:08,359
Speaker 4: to go or if you're going to go through the

593
00:26:08,359 --> 00:26:10,560
Speaker 4: hassle truly as a broker, not as a sales guy

594
00:26:10,640 --> 00:26:12,320
Speaker 4: that works at a discripan and claims are a broker,

595
00:26:12,480 --> 00:26:14,080
Speaker 4: but if you want to go through the hassle and

596
00:26:14,119 --> 00:26:17,159
Speaker 4: all that and spend the time. And really, why is

597
00:26:17,200 --> 00:26:19,000
Speaker 4: someone going through you? Well, they're going through you because

598
00:26:19,040 --> 00:26:21,080
Speaker 4: they want to a not deal with the headache and

599
00:26:21,280 --> 00:26:23,520
Speaker 4: you know, spend the time, and B they trust you

600
00:26:23,520 --> 00:26:25,000
Speaker 4: that you'll get them a better deal because if you're

601
00:26:25,040 --> 00:26:28,200
Speaker 4: insider knowledge or connections, well, you know, it's just tough

602
00:26:28,200 --> 00:26:30,880
Speaker 4: to make the economics work as a true broker where

603
00:26:30,920 --> 00:26:32,600
Speaker 4: you know they can make enough money, you can save

604
00:26:32,720 --> 00:26:36,000
Speaker 4: enough money, you know, everyone is happy. Needless to say,

605
00:26:36,040 --> 00:26:38,600
Speaker 4: I think in many states it's it's even illegal. But yeah,

606
00:26:38,640 --> 00:26:41,400
Speaker 4: I mean, brokering is a thing. It's typically very boutique

607
00:26:41,400 --> 00:26:43,919
Speaker 4: and niche. Everyone you know has a different definition for

608
00:26:43,960 --> 00:26:46,440
Speaker 4: what a broker really is. But it's just not It's

609
00:26:46,440 --> 00:26:48,320
Speaker 4: not like you know, real estate, where you know there's

610
00:26:48,359 --> 00:26:50,359
Speaker 4: a lot of meat on the bone, you know, three percent,

611
00:26:50,400 --> 00:26:52,760
Speaker 4: two percent whatever of a sales price you can get. Here,

612
00:26:53,119 --> 00:26:56,480
Speaker 4: we're dealing with like very low margins. And you know

613
00:26:56,520 --> 00:26:58,640
Speaker 4: we're not selling a million dollar product, right We're selling

614
00:26:58,640 --> 00:27:01,320
Speaker 4: a ten, twenty thirty product. So I just think it's

615
00:27:01,320 --> 00:27:04,040
Speaker 4: a it's a tough type of business to scale and

616
00:27:04,080 --> 00:27:06,080
Speaker 4: even you know, do unless you're willing to you know,

617
00:27:06,200 --> 00:27:07,760
Speaker 4: do it for pretty pretty low.

618
00:27:07,680 --> 00:27:11,399
Speaker 3: Return as a broker, right, Yeah, So from a the

619
00:27:11,440 --> 00:27:14,160
Speaker 3: service you're providing, it doesn't sound like the margins are

620
00:27:14,440 --> 00:27:18,240
Speaker 3: very thick. But from a just from a consumer end standpoint, like,

621
00:27:18,280 --> 00:27:21,919
Speaker 3: do you is there the ability to go with a

622
00:27:21,960 --> 00:27:24,680
Speaker 3: broker and potentially buy because because oftentimes are these brokers

623
00:27:24,680 --> 00:27:28,240
Speaker 3: buying their cars from from the different auto auctions where

624
00:27:28,359 --> 00:27:30,560
Speaker 3: they're able to get you know, get these cars.

625
00:27:30,400 --> 00:27:31,399
Speaker 1: At a really low price.

626
00:27:31,640 --> 00:27:34,280
Speaker 3: Is there the ability for a consumer to get a

627
00:27:34,320 --> 00:27:37,800
Speaker 3: car from a broker at a pretty pretty discounted price.

628
00:27:38,040 --> 00:27:39,879
Speaker 4: And at that point, you're just a dealer, right Like,

629
00:27:39,960 --> 00:27:41,800
Speaker 4: if that broker is buying a car and an auction

630
00:27:42,000 --> 00:27:44,760
Speaker 4: for you, it's literally a dealer. The only difference is

631
00:27:44,760 --> 00:27:47,160
Speaker 4: that you've made a specific request for a car. Now,

632
00:27:47,240 --> 00:27:50,560
Speaker 4: different dealers will treat that differently, Like many dealers you

633
00:27:50,600 --> 00:27:52,680
Speaker 4: know will buy you that car, source you that car

634
00:27:52,840 --> 00:27:54,520
Speaker 4: as long as you know, you put a deposit, you're

635
00:27:54,560 --> 00:27:58,000
Speaker 4: pre approve for financing, right and then again they'll charge

636
00:27:58,040 --> 00:28:00,360
Speaker 4: you like a normal markup as they would that car,

637
00:28:00,440 --> 00:28:03,280
Speaker 4: maybe a little bit less, but essentially you're a dealer

638
00:28:03,320 --> 00:28:05,040
Speaker 4: at that point. If you as a you know, you

639
00:28:05,080 --> 00:28:07,640
Speaker 4: take a specific request for a car, then you've become

640
00:28:07,640 --> 00:28:10,240
Speaker 4: a dealer. Now again, one other thing to note here

641
00:28:10,320 --> 00:28:13,800
Speaker 4: is that it's it's a very tough business to scale.

642
00:28:13,880 --> 00:28:16,600
Speaker 4: We've actually tried it. I've tried it because you know,

643
00:28:16,640 --> 00:28:20,000
Speaker 4: people like that you're a consumer, right, like you wouldn't

644
00:28:20,000 --> 00:28:22,160
Speaker 4: know what you're buying. You're not a dealer. Like, You're

645
00:28:22,200 --> 00:28:24,520
Speaker 4: just not going to be as comfortable saying yes, I'll

646
00:28:24,520 --> 00:28:26,879
Speaker 4: spend fifty thousand dollars on a vehicle that I have

647
00:28:26,880 --> 00:28:28,560
Speaker 4: no idea what it's going to look like or anything

648
00:28:28,560 --> 00:28:30,919
Speaker 4: about it. And as a dealer at an auction, you

649
00:28:30,960 --> 00:28:33,320
Speaker 4: have like what like you know, fifteen seconds to make

650
00:28:33,359 --> 00:28:35,720
Speaker 4: a decision. I don't have time to, like, Yo, Joe,

651
00:28:35,920 --> 00:28:37,400
Speaker 4: check this out, look at this picture, like, I don't

652
00:28:37,440 --> 00:28:38,960
Speaker 4: have time to do that unless you know, we look

653
00:28:39,000 --> 00:28:42,240
Speaker 4: at it beforehand. But again, very very clunky process. And

654
00:28:42,320 --> 00:28:44,080
Speaker 4: I just think that the true definition of a car

655
00:28:44,120 --> 00:28:47,200
Speaker 4: dealership are a broker, And the way it works best

656
00:28:47,360 --> 00:28:49,239
Speaker 4: is for like high end cars, like if you're just

657
00:28:49,280 --> 00:28:51,480
Speaker 4: like someone like yo, like I want that g Wagon.

658
00:28:51,560 --> 00:28:53,640
Speaker 4: I needs to be perfect, Go find it for me.

659
00:28:53,760 --> 00:28:56,160
Speaker 4: I'll pay you fifteen thousand dollars ten thousand dollars, just

660
00:28:56,160 --> 00:28:58,479
Speaker 4: find me exactly what I want. I think that's the

661
00:28:58,520 --> 00:29:00,920
Speaker 4: only case where like being a broke and this business

662
00:29:00,960 --> 00:29:02,560
Speaker 4: truly can work. Okay.

663
00:29:02,560 --> 00:29:06,200
Speaker 2: That being said, you mentioned process and the how easy

664
00:29:06,280 --> 00:29:09,000
Speaker 2: or difficult it can be, and buying a car online

665
00:29:09,080 --> 00:29:11,640
Speaker 2: is something you've if you'd told somebody fifteen years ago, Yeah,

666
00:29:11,640 --> 00:29:13,560
Speaker 2: people are just going to buy it, signed onseen, they'll

667
00:29:13,680 --> 00:29:15,200
Speaker 2: kick the tires thing. They're not going to kick the

668
00:29:15,240 --> 00:29:17,120
Speaker 2: tires before they buy it. But you would have like

669
00:29:17,160 --> 00:29:19,760
Speaker 2: been looked at like you were crazy, right like, And

670
00:29:19,800 --> 00:29:22,040
Speaker 2: so Carvana has changed the game on that front. Car

671
00:29:22,080 --> 00:29:24,440
Speaker 2: Max has kind of followed suit. Do you feel like

672
00:29:24,480 --> 00:29:28,360
Speaker 2: the online buying experience is serving consumers well, these days.

673
00:29:28,600 --> 00:29:30,640
Speaker 4: I think it is. I don't think it's going anywhere.

674
00:29:30,720 --> 00:29:33,080
Speaker 4: I think there's a subsect of consumers that like to

675
00:29:33,080 --> 00:29:35,040
Speaker 4: buy online and don't want to go into the dealership.

676
00:29:35,320 --> 00:29:37,480
Speaker 4: The data end surveys still show that most people do

677
00:29:37,560 --> 00:29:39,080
Speaker 4: want to come into the dealership at least still a

678
00:29:39,160 --> 00:29:42,000
Speaker 4: complete the sale, and so they want to do a

679
00:29:42,040 --> 00:29:43,640
Speaker 4: lot of a big part of the purchase online. But

680
00:29:43,680 --> 00:29:45,120
Speaker 4: they don'tant to do it all right, They do want

681
00:29:45,120 --> 00:29:46,920
Speaker 4: to com They want to have some point of contact,

682
00:29:47,720 --> 00:29:49,640
Speaker 4: they want to test drive that car on the dealership

683
00:29:49,640 --> 00:29:51,840
Speaker 4: premises and all that. And so I think that, you know,

684
00:29:51,880 --> 00:29:53,840
Speaker 4: the market for online car buying is here. It's going

685
00:29:53,880 --> 00:29:56,600
Speaker 4: to keep growing more so and new than used.

686
00:29:56,600 --> 00:29:56,880
Speaker 1: I think.

687
00:29:56,920 --> 00:29:58,160
Speaker 4: I just you know, I think, like you see, like

688
00:29:58,200 --> 00:30:00,840
Speaker 4: the Tesla model and whatnot, it's so easy to buy

689
00:30:00,840 --> 00:30:02,440
Speaker 4: that car online. It's new. You don't have to worry

690
00:30:02,440 --> 00:30:05,720
Speaker 4: about condition or anything. And we also we've invested, you know,

691
00:30:05,760 --> 00:30:08,080
Speaker 4: heavily in the online car buying process at our at

692
00:30:08,080 --> 00:30:10,880
Speaker 4: our dealership. I can tell you that we have sort

693
00:30:10,880 --> 00:30:13,800
Speaker 4: of retracted a bit in in you know, most recently

694
00:30:13,840 --> 00:30:16,600
Speaker 4: more recently, and you know, a function of again just

695
00:30:16,600 --> 00:30:19,400
Speaker 4: becoming more efficient with how we're spending our you know,

696
00:30:19,440 --> 00:30:23,560
Speaker 4: marketing dollars and just you know, streamlining our process internally.

697
00:30:23,880 --> 00:30:25,479
Speaker 4: But I can tell you the online car buying is here.

698
00:30:25,480 --> 00:30:28,239
Speaker 4: It's here to stay. Carvada has built a very you know,

699
00:30:28,320 --> 00:30:31,600
Speaker 4: a great car buying experience for that online car buyer.

700
00:30:32,240 --> 00:30:34,959
Speaker 4: It's not perfect. They have their challenges. They scaled super quickly,

701
00:30:35,160 --> 00:30:37,200
Speaker 4: and they have many challenges in many states, especially when

702
00:30:37,200 --> 00:30:39,560
Speaker 4: it comes to like titles and registrations and whatnot. But

703
00:30:39,720 --> 00:30:42,520
Speaker 4: overall it's it's it's it's definitely. You know, it's grown

704
00:30:42,680 --> 00:30:44,640
Speaker 4: like crazy, and I think we're going to see it

705
00:30:44,640 --> 00:30:46,440
Speaker 4: continue to grow over the coming years.

706
00:30:46,880 --> 00:30:49,880
Speaker 3: Yeah, I think with the seven day warranties or even

707
00:30:49,880 --> 00:30:52,720
Speaker 3: thirties at thirty day with CarMax, but they've got those

708
00:30:53,000 --> 00:30:55,520
Speaker 3: massive windows that allow you to just try it out,

709
00:30:55,640 --> 00:30:57,920
Speaker 3: so it's thirty to return, and I believe it's a

710
00:30:58,000 --> 00:30:59,960
Speaker 3: ninety day warranty, which is part of I was correct.

711
00:31:00,000 --> 00:31:01,760
Speaker 3: If I had not found this one car that I

712
00:31:01,800 --> 00:31:03,640
Speaker 3: was looking for from a private seller, I was going

713
00:31:03,640 --> 00:31:04,520
Speaker 3: down the car Max route.

714
00:31:04,600 --> 00:31:04,840
Speaker 4: Yeah.

715
00:31:04,880 --> 00:31:07,160
Speaker 3: And for us, I mean like six years ago or

716
00:31:07,160 --> 00:31:09,800
Speaker 3: whenever it is that we bought our Odyssey, Like that's

717
00:31:09,800 --> 00:31:12,000
Speaker 3: what gave me the comfort to know that, all right,

718
00:31:12,040 --> 00:31:13,320
Speaker 3: I can totally give this a shot, and if it

719
00:31:13,320 --> 00:31:14,360
Speaker 3: doesn't work out, I can.

720
00:31:14,400 --> 00:31:15,480
Speaker 1: Absolutely take it back.

721
00:31:15,920 --> 00:31:19,240
Speaker 3: But you know, one of the advantages of looking for

722
00:31:19,280 --> 00:31:21,440
Speaker 3: a car online, I think is the ability to find

723
00:31:21,440 --> 00:31:24,160
Speaker 3: the best deal, which might not even actually be in

724
00:31:24,200 --> 00:31:26,360
Speaker 3: your city or even your state, like it might be

725
00:31:26,400 --> 00:31:29,080
Speaker 3: in a different part of the country. And so does

726
00:31:29,120 --> 00:31:32,440
Speaker 3: it just come down to crunching the numbers and you know,

727
00:31:32,480 --> 00:31:34,520
Speaker 3: seeing if it makes sense to have a car ship

728
00:31:34,560 --> 00:31:36,160
Speaker 3: to you because oftentimes they've got you know, they've got

729
00:31:36,280 --> 00:31:39,280
Speaker 3: a fee associated with that, or even to like buy

730
00:31:39,560 --> 00:31:42,040
Speaker 3: a one way flight, buy a plane ticket in order

731
00:31:42,120 --> 00:31:44,560
Speaker 3: to fly there, buy the car and drive back. Does

732
00:31:44,600 --> 00:31:46,400
Speaker 3: it just come down to crunching the numbers and seeing

733
00:31:46,440 --> 00:31:47,920
Speaker 3: if that makes sense to snag that deal.

734
00:31:48,200 --> 00:31:50,680
Speaker 4: I think it's crunching the numbers, but it's also what

735
00:31:50,720 --> 00:31:52,880
Speaker 4: type of vehicle are you looking for? Are you looking

736
00:31:52,880 --> 00:31:55,360
Speaker 4: for like a three year old Nissan Ultima where you

737
00:31:55,360 --> 00:31:57,479
Speaker 4: can find them anywhere throughout the country, right, or are

738
00:31:57,480 --> 00:32:01,320
Speaker 4: you looking for like a five year old hour Rs

739
00:32:01,400 --> 00:32:03,480
Speaker 4: like you know, blah blah blah whatever, right, like a

740
00:32:03,520 --> 00:32:06,280
Speaker 4: specialty car. I think the more you go specialty, the

741
00:32:06,280 --> 00:32:08,760
Speaker 4: more it makes sense to source far and wide, you know,

742
00:32:08,800 --> 00:32:10,720
Speaker 4: to maybe fly to go pick up that car, or

743
00:32:10,720 --> 00:32:13,800
Speaker 4: maybe you know, arrange transportation. Especially and by the way,

744
00:32:13,800 --> 00:32:15,959
Speaker 4: even if we're not talking specialty in this age of

745
00:32:16,040 --> 00:32:18,720
Speaker 4: like you know, markups and whatnot, in many cases it

746
00:32:18,720 --> 00:32:20,840
Speaker 4: does make sense to you know, buy the vehicle somewhere

747
00:32:20,840 --> 00:32:23,240
Speaker 4: else and have it transported. If the markup is five thousand,

748
00:32:23,520 --> 00:32:25,800
Speaker 4: and you buy it and have it transported for you know,

749
00:32:25,840 --> 00:32:28,200
Speaker 4: two thousand, you still won you're still in the money,

750
00:32:28,640 --> 00:32:30,440
Speaker 4: and so I think that's truth. I don't think it

751
00:32:30,480 --> 00:32:33,120
Speaker 4: makes much sense for you know, your bread and butter cars,

752
00:32:33,160 --> 00:32:36,080
Speaker 4: you know, like you're Honda Civis or Toyota Camera or whatever.

753
00:32:36,440 --> 00:32:38,560
Speaker 4: I think those cars, you know, the ones that are

754
00:32:39,480 --> 00:32:42,080
Speaker 4: in just higher supply, and they're pretty much the same

755
00:32:42,080 --> 00:32:44,760
Speaker 4: across the board, barring some you know, features colors and

756
00:32:44,800 --> 00:32:46,640
Speaker 4: all that. Those are the ones that you can really

757
00:32:46,640 --> 00:32:49,240
Speaker 4: find them anywhere. It's just unlikely going to you know,

758
00:32:49,280 --> 00:32:50,640
Speaker 4: it's not likely going to make sense for you to

759
00:32:50,640 --> 00:32:52,920
Speaker 4: spend a couple grand on transporting them, especially if you're

760
00:32:52,920 --> 00:32:53,440
Speaker 4: buying used.

761
00:32:54,120 --> 00:32:55,960
Speaker 2: Okay, this is a question. I feel like you're gonna

762
00:32:55,960 --> 00:32:58,240
Speaker 2: be able to knock out of the ballpark here. There

763
00:32:58,280 --> 00:33:01,600
Speaker 2: are different tiers of dealerships, and when we talk about

764
00:33:01,640 --> 00:33:04,640
Speaker 2: there's like the buy here, pay here dealerships, which to

765
00:33:04,760 --> 00:33:08,360
Speaker 2: me are I don't know, a little more tenuous. Many

766
00:33:08,400 --> 00:33:10,800
Speaker 2: of them come with a less than stellar reputation attached.

767
00:33:10,800 --> 00:33:12,880
Speaker 2: So what should what should people know before they just

768
00:33:13,360 --> 00:33:16,120
Speaker 2: venture into the newest car lot that's closest to their

769
00:33:16,120 --> 00:33:16,920
Speaker 2: house to start looking.

770
00:33:17,520 --> 00:33:19,800
Speaker 4: Yes, so there's definitely different types of dealerships they oh

771
00:33:19,880 --> 00:33:23,280
Speaker 4: cater to different consumers predominantly, right, this is not perfect,

772
00:33:23,320 --> 00:33:25,960
Speaker 4: but predominantly you see that buy here, pay here caters

773
00:33:25,960 --> 00:33:28,080
Speaker 4: to really the lower end of the market, so like

774
00:33:28,360 --> 00:33:32,200
Speaker 4: lower income, really just battered credit people that just need

775
00:33:32,240 --> 00:33:33,920
Speaker 4: like a new beginning, and they're willing to pay up

776
00:33:33,920 --> 00:33:35,400
Speaker 4: for it, and they do pay up for it, like

777
00:33:35,880 --> 00:33:38,800
Speaker 4: it's the most expensive across the board. But you know,

778
00:33:38,800 --> 00:33:39,360
Speaker 4: we're talking to me.

779
00:33:39,640 --> 00:33:41,840
Speaker 2: If the average UICE car interest rate is something like

780
00:33:41,880 --> 00:33:44,320
Speaker 2: fourteen percent at a buy here, pay here, it's got

781
00:33:44,360 --> 00:33:45,560
Speaker 2: to be in the upper twenties, right.

782
00:33:45,760 --> 00:33:47,840
Speaker 4: Yeah, if the state allows it, right, like some states

783
00:33:47,920 --> 00:33:50,320
Speaker 4: limited at like twenty one or twenty four or you

784
00:33:50,320 --> 00:33:52,040
Speaker 4: know some states, some states can go up to thirty

785
00:33:52,040 --> 00:33:54,440
Speaker 4: I want to say, So, yes, you're going to pay

786
00:33:54,440 --> 00:33:58,600
Speaker 4: the higher a stalt of interest, for sure, but also

787
00:33:58,720 --> 00:34:00,560
Speaker 4: you know that dealer or that lender is just taking

788
00:34:00,560 --> 00:34:03,160
Speaker 4: a lot more risk, right because you're more like more

789
00:34:03,200 --> 00:34:06,040
Speaker 4: than likely not or you're going to have that car repossessor.

790
00:34:06,080 --> 00:34:07,560
Speaker 4: You're going to default on your loan at some point,

791
00:34:07,640 --> 00:34:10,879
Speaker 4: So that's sort of price for that. The second thing

792
00:34:10,960 --> 00:34:13,120
Speaker 4: is if you look at just your traditional use car dealer,

793
00:34:13,160 --> 00:34:14,560
Speaker 4: so not by your pay or they don't do their

794
00:34:14,600 --> 00:34:16,520
Speaker 4: own finance. They don't do their own lending, right, They're

795
00:34:16,600 --> 00:34:20,080
Speaker 4: partnered like with the bigger lenders, all the publicly traded

796
00:34:20,120 --> 00:34:21,640
Speaker 4: you know lenders, the household names that you and I

797
00:34:21,680 --> 00:34:27,760
Speaker 4: both know. They predominantly serve a more call it, middle

798
00:34:27,760 --> 00:34:31,440
Speaker 4: class buyers. Sometimes they skew a bit more subprime. Uh,

799
00:34:31,520 --> 00:34:34,160
Speaker 4: they could again if they have, if they go very specialty,

800
00:34:34,160 --> 00:34:36,239
Speaker 4: they might go for a different type of consumer. It

801
00:34:36,320 --> 00:34:39,440
Speaker 4: really it's really driven by your geography and the inventory

802
00:34:39,480 --> 00:34:42,480
Speaker 4: you carry, right, Because if I'm only carrying, like, you know, trucks,

803
00:34:42,520 --> 00:34:44,480
Speaker 4: then yeah, I'm going to sell to people that can

804
00:34:44,520 --> 00:34:47,560
Speaker 4: afford trucks, wan't use trucks, and that's kind of my niche.

805
00:34:47,840 --> 00:34:49,799
Speaker 4: If I'm selling you know, more of like these like

806
00:34:49,840 --> 00:34:52,880
Speaker 4: bread and butter economy cars, then I may, you know,

807
00:34:52,960 --> 00:34:55,400
Speaker 4: skew and if I'm in the right geography towards a

808
00:34:55,440 --> 00:34:58,880
Speaker 4: more near subprime consumer, that's sort of shopping financing and

809
00:34:58,920 --> 00:35:00,440
Speaker 4: not so much to car, right, they need to get

810
00:35:00,440 --> 00:35:02,080
Speaker 4: a proof for a loan and the car is kind

811
00:35:02,080 --> 00:35:04,640
Speaker 4: of secondary. But then you have the third tier of dealerships,

812
00:35:04,640 --> 00:35:07,719
Speaker 4: which is the franchise dealer. And even even then, not

813
00:35:07,800 --> 00:35:10,760
Speaker 4: every franchise dealership is equal, but they tend to attract

814
00:35:10,840 --> 00:35:13,520
Speaker 4: the more higher credit. You know, whether you're buying new

815
00:35:13,600 --> 00:35:16,520
Speaker 4: or certified pre owned, you know, typically you're getting just

816
00:35:16,640 --> 00:35:19,440
Speaker 4: a better a more qualified customer, a better credit customer,

817
00:35:20,120 --> 00:35:22,239
Speaker 4: and that's you know, they're sort of cornering the rest

818
00:35:22,239 --> 00:35:24,480
Speaker 4: of the market that way. So it really comes down

819
00:35:24,520 --> 00:35:26,880
Speaker 4: to look, every single type of dealer can be a

820
00:35:26,920 --> 00:35:28,640
Speaker 4: good dealer. I want to be very clear about that.

821
00:35:28,800 --> 00:35:31,839
Speaker 4: Like we started, you know, as a small use car lot,

822
00:35:31,920 --> 00:35:34,000
Speaker 4: and we grew and in many cases, you know, we

823
00:35:34,120 --> 00:35:36,680
Speaker 4: found out through benchmarking through our lenders that like we were,

824
00:35:36,719 --> 00:35:39,880
Speaker 4: we had better processes, better systems in place than franchise

825
00:35:39,880 --> 00:35:43,360
Speaker 4: dealers down the street. So you really have to read reviews,

826
00:35:43,520 --> 00:35:48,279
Speaker 4: ask friends, questions, you know, referrals that is, and just

827
00:35:48,280 --> 00:35:50,840
Speaker 4: really do your homework to find a good quality operation,

828
00:35:51,080 --> 00:35:53,439
Speaker 4: whether it has the franchise shingles or not. You want

829
00:35:53,440 --> 00:35:55,920
Speaker 4: to just find somewhere that's reputable, somewhere that's been in

830
00:35:55,960 --> 00:35:58,400
Speaker 4: business for many years. In many cases, right you know

831
00:35:58,440 --> 00:36:00,560
Speaker 4: that they you know, they care about their long term reputation,

832
00:36:01,080 --> 00:36:03,120
Speaker 4: and ultimately, I think you know, you should shop for

833
00:36:03,160 --> 00:36:05,759
Speaker 4: the reputation with the dealership less so the brand name,

834
00:36:05,760 --> 00:36:08,000
Speaker 4: because that's how typically you'll get the best experience.

835
00:36:08,400 --> 00:36:10,720
Speaker 3: Yeah, I hadn't thought about it like that, but it

836
00:36:10,560 --> 00:36:12,399
Speaker 3: makes a lot of sense. So he was gonna knock

837
00:36:12,400 --> 00:36:16,200
Speaker 3: that one out of the partcast. I'm curious, so you

838
00:36:16,239 --> 00:36:18,680
Speaker 3: mentioned certified pre owned. Is it a good deal for

839
00:36:18,760 --> 00:36:20,279
Speaker 3: the consumer or is it more of a good deal

840
00:36:20,320 --> 00:36:22,840
Speaker 3: for the dealership? Is there a big markup for Is

841
00:36:22,840 --> 00:36:25,279
Speaker 3: there a big markup there? Or is that actually a

842
00:36:25,320 --> 00:36:28,520
Speaker 3: great way to get a vehicle that's been looked over

843
00:36:28,760 --> 00:36:30,719
Speaker 3: and it's a service that the dealership is able to

844
00:36:30,719 --> 00:36:32,960
Speaker 3: provide because they have done a lot of the work.

845
00:36:33,040 --> 00:36:34,959
Speaker 3: You know that you're going to be getting a solid

846
00:36:35,040 --> 00:36:38,600
Speaker 3: vehicle that's backed by essentially a used car warranty. What

847
00:36:38,600 --> 00:36:39,359
Speaker 3: are your thoughts on that?

848
00:36:39,600 --> 00:36:42,319
Speaker 4: Yeah, look, CPO, it depends, it depends what brand you're

849
00:36:42,400 --> 00:36:45,120
Speaker 4: buying from. And I'm not an expert on CPOs because

850
00:36:45,120 --> 00:36:47,680
Speaker 4: you know, all the programs are very different. But ultimately

851
00:36:47,719 --> 00:36:50,040
Speaker 4: with CPO, right, like they're basically telling you, hey, we're

852
00:36:50,040 --> 00:36:53,680
Speaker 4: reconditioning this specific standard, like you know, a pretty high standard.

853
00:36:54,000 --> 00:36:55,880
Speaker 4: And by the way, like you said, you're getting this

854
00:36:56,000 --> 00:36:58,280
Speaker 4: like extended warranty with it, or you have the option,

855
00:36:58,400 --> 00:37:01,040
Speaker 4: you know some some better, more or robust options to

856
00:37:01,520 --> 00:37:05,080
Speaker 4: ensure the car. You know, thereafter, I think CPO is good.

857
00:37:05,600 --> 00:37:07,799
Speaker 4: I don't end yesterday. You know, there's a small mark

858
00:37:07,880 --> 00:37:10,680
Speaker 4: up associated versus a non CPO car. So if a

859
00:37:10,719 --> 00:37:13,000
Speaker 4: dealer can CPO a car, they may choose to do so,

860
00:37:13,160 --> 00:37:14,840
Speaker 4: a franchise dealer that is, you know, they have to

861
00:37:14,840 --> 00:37:17,399
Speaker 4: pass certain qualifications and whatnot. Does it does it.

862
00:37:17,400 --> 00:37:19,239
Speaker 3: Just have to be a certain quality, like doesn't need

863
00:37:19,280 --> 00:37:21,200
Speaker 3: to have a like low a certain number of miles?

864
00:37:21,239 --> 00:37:26,480
Speaker 4: What's the requires certain standards you know, like tire tread depth, breaks,

865
00:37:26,760 --> 00:37:30,000
Speaker 4: you know, stuff like that. So it just a certain standards.

866
00:37:30,040 --> 00:37:34,279
Speaker 4: But again, if you're purchasing, if you're purchasing from a

867
00:37:34,400 --> 00:37:37,520
Speaker 4: very reputable use car dealer, then they may recondition their

868
00:37:37,560 --> 00:37:40,800
Speaker 4: car at the same to the same standards as a CPO.

869
00:37:41,320 --> 00:37:43,840
Speaker 4: And so I think it again, it really it comes

870
00:37:43,880 --> 00:37:45,640
Speaker 4: down to, you know, what's more important to you. If

871
00:37:45,680 --> 00:37:47,480
Speaker 4: if you want the peace of mind, just go CEPO.

872
00:37:47,600 --> 00:37:49,919
Speaker 4: There's nothing wrong with that. You may pay a little

873
00:37:49,920 --> 00:37:52,239
Speaker 4: bit more because it's a CPO. But you know, if

874
00:37:52,280 --> 00:37:55,400
Speaker 4: there's a car from another rep reputable dealer, and you

875
00:37:55,400 --> 00:37:56,759
Speaker 4: know you take a good look at it, maybe even

876
00:37:56,760 --> 00:37:58,399
Speaker 4: show it to your mechanic. Then yeah, you could fare

877
00:37:58,400 --> 00:38:00,880
Speaker 4: out the same way, exact way by buying non CPO

878
00:38:01,040 --> 00:38:03,120
Speaker 4: you know, late model, low miles used vehicle.

879
00:38:03,560 --> 00:38:05,799
Speaker 2: Sure, okay, all right, CGG. We got just a few

880
00:38:05,800 --> 00:38:07,080
Speaker 2: more questions to get to. If you want to talk

881
00:38:07,080 --> 00:38:09,440
Speaker 2: about leasing, I want to talk about electric vehicles. We'll

882
00:38:09,440 --> 00:38:11,560
Speaker 2: get to questions on both of those things right after

883
00:38:11,560 --> 00:38:22,680
Speaker 2: this our well back from the break, we're still talking

884
00:38:22,680 --> 00:38:26,560
Speaker 2: about navigating the pretty crazy car market with car dealership guy.

885
00:38:26,640 --> 00:38:28,560
Speaker 2: There's just so much that's changed in the last couple

886
00:38:28,560 --> 00:38:31,200
Speaker 2: of years. I love getting the backstory, but I specifically

887
00:38:31,200 --> 00:38:33,399
Speaker 2: want to ask you about leasing. Something we always say,

888
00:38:33,440 --> 00:38:36,720
Speaker 2: like you coming from a different perspective, rights as someone

889
00:38:36,960 --> 00:38:39,960
Speaker 2: who has worked in the car industry. Matt and I

890
00:38:40,160 --> 00:38:43,719
Speaker 2: as money nerds, have always talked about leasing in a

891
00:38:43,880 --> 00:38:46,840
Speaker 2: mostly negative way. It's more of a lifestyle decision than

892
00:38:46,880 --> 00:38:49,120
Speaker 2: a financial one. How true is that in your opinion?

893
00:38:49,160 --> 00:38:52,160
Speaker 2: Because it's it's very rarely like slam dunk, this is

894
00:38:52,160 --> 00:38:53,960
Speaker 2: the best move for my money, and usually it's just

895
00:38:54,000 --> 00:38:56,200
Speaker 2: because Hey, I've got the money and this is what

896
00:38:56,239 --> 00:38:56,719
Speaker 2: I want to do.

897
00:38:56,960 --> 00:38:57,399
Speaker 1: Is that right?

898
00:38:58,239 --> 00:39:01,239
Speaker 4: Yeah? I mean, look, I I always say I had

899
00:39:01,239 --> 00:39:02,759
Speaker 4: this thing where I would say, like, you should lease.

900
00:39:02,800 --> 00:39:05,080
Speaker 4: If you're optimizing for a lifestyle, you should buy if

901
00:39:05,080 --> 00:39:06,360
Speaker 4: you're optimizing for a value.

902
00:39:06,920 --> 00:39:08,399
Speaker 1: Right, you just answered our question.

903
00:39:10,560 --> 00:39:12,760
Speaker 4: But you know what it's it's just not true anymore.

904
00:39:12,800 --> 00:39:16,760
Speaker 4: This is a crazy car. Oh okay, so a little switchero,

905
00:39:16,920 --> 00:39:20,040
Speaker 4: a little switcher room, right. And the reason is because

906
00:39:20,680 --> 00:39:23,440
Speaker 4: the last couple of years, just things have gotten so inverted.

907
00:39:24,200 --> 00:39:26,799
Speaker 4: And you know, if you're buying a car and you're

908
00:39:26,840 --> 00:39:30,880
Speaker 4: paying like, you know, fifteen grand over MSRP, like it

909
00:39:30,920 --> 00:39:34,080
Speaker 4: doesn't really make sense in many cases like that, you're

910
00:39:34,080 --> 00:39:37,400
Speaker 4: not necessarily buying the best value. And well, if you

911
00:39:37,440 --> 00:39:39,399
Speaker 4: go back to leasing, right, like, what's a lease? Well,

912
00:39:39,520 --> 00:39:42,360
Speaker 4: a lease is essentially it's comprised of three things we

913
00:39:42,520 --> 00:39:45,279
Speaker 4: say in the car business. A net cap cost, which

914
00:39:45,280 --> 00:39:47,800
Speaker 4: is really like the price of the car, residual value,

915
00:39:48,160 --> 00:39:51,120
Speaker 4: which is essentially what the lender thinks the car will

916
00:39:51,160 --> 00:39:53,320
Speaker 4: be worth when you return it. And then it's multiplied

917
00:39:53,320 --> 00:39:55,040
Speaker 4: by tend to call that money factor, which is really

918
00:39:55,080 --> 00:39:57,520
Speaker 4: an interest rate. It's like a derivative of an interest rate.

919
00:39:57,719 --> 00:40:00,000
Speaker 4: And don't ask me why it's this confusing it's probably

920
00:40:00,120 --> 00:40:02,480
Speaker 4: confuse people so that you're like, what I first learned

921
00:40:02,480 --> 00:40:04,680
Speaker 4: about is I'm like, wait, what, like, why is this

922
00:40:04,760 --> 00:40:07,640
Speaker 4: so complicated? But at the end of the day, that's

923
00:40:07,640 --> 00:40:11,439
Speaker 4: how leases are actually structured. And so what you had

924
00:40:11,440 --> 00:40:13,439
Speaker 4: over the last couple of years actually is that people

925
00:40:13,480 --> 00:40:15,600
Speaker 4: that least these cars also people that bought, but people

926
00:40:15,640 --> 00:40:18,080
Speaker 4: at least their cars. They were actually worth more at

927
00:40:18,080 --> 00:40:19,520
Speaker 4: the end of the lease. And that's why people didn't

928
00:40:19,560 --> 00:40:22,160
Speaker 4: return the cars, because the cars were worth a lot more.

929
00:40:22,320 --> 00:40:24,600
Speaker 4: They you know, quote unquote could make money and the

930
00:40:24,640 --> 00:40:26,680
Speaker 4: newer cars were a lot more expensive, so they didn't

931
00:40:26,680 --> 00:40:28,400
Speaker 4: want to go buy a new car. But I think

932
00:40:28,400 --> 00:40:30,439
Speaker 4: at the end of the day, right, like, traditionally, yes,

933
00:40:30,560 --> 00:40:32,959
Speaker 4: leasing offered you know, hey, trade in your car every

934
00:40:32,960 --> 00:40:35,719
Speaker 4: three years, have all these like you know this warranties

935
00:40:35,719 --> 00:40:38,000
Speaker 4: and services and everything is covered for you throw the

936
00:40:38,239 --> 00:40:40,400
Speaker 4: term of the lease and whatnot. I mean, so you

937
00:40:40,520 --> 00:40:42,080
Speaker 4: just live like it's sort of like a more comfortable

938
00:40:42,120 --> 00:40:44,759
Speaker 4: lifestyle play. You also had a lower payment traditionally, right,

939
00:40:45,160 --> 00:40:47,040
Speaker 4: And I think that's the key thing that's changed over

940
00:40:47,080 --> 00:40:49,680
Speaker 4: the last couple of years, where lease payments in many

941
00:40:49,680 --> 00:40:53,080
Speaker 4: cases are not lower anymore than just buying a car.

942
00:40:53,400 --> 00:40:55,480
Speaker 4: And so when the economic incentive is not in the

943
00:40:55,520 --> 00:40:58,360
Speaker 4: picture anymore, why should I lease a car? If you know,

944
00:40:58,480 --> 00:41:01,400
Speaker 4: the only other incentives are like life style stuff, now

945
00:41:01,960 --> 00:41:04,640
Speaker 4: are they? Why are lease payments not lower than buying car? Well,

946
00:41:04,640 --> 00:41:07,399
Speaker 4: because manufacturers are not incentivized to lease you a car

947
00:41:07,480 --> 00:41:09,360
Speaker 4: if they can sell you a car. And when I

948
00:41:09,440 --> 00:41:11,640
Speaker 4: only have when I typically have ten cars, but now

949
00:41:11,640 --> 00:41:13,799
Speaker 4: I have two cars, why should I lease your car?

950
00:41:13,840 --> 00:41:15,560
Speaker 4: I'm going to want to sell you the car, and

951
00:41:15,600 --> 00:41:18,800
Speaker 4: so I'm going to make leasing less attractive. I'll increase

952
00:41:18,880 --> 00:41:21,400
Speaker 4: the price of leasing, and then you're likely going to

953
00:41:21,400 --> 00:41:23,080
Speaker 4: buy that car. So that's why I say it's no

954
00:41:23,160 --> 00:41:27,839
Speaker 4: longer that valid, because the reality is leasing has you know,

955
00:41:28,000 --> 00:41:30,000
Speaker 4: has just become a lot less attractive over the last

956
00:41:30,000 --> 00:41:30,600
Speaker 4: couple of years.

957
00:41:31,040 --> 00:41:33,120
Speaker 3: Yeah, so it's a matter of what is going on

958
00:41:33,200 --> 00:41:35,759
Speaker 3: in the market. And it seems like a lot of

959
00:41:35,800 --> 00:41:38,279
Speaker 3: folks who were who had a lease back during the

960
00:41:38,320 --> 00:41:39,879
Speaker 3: beginning of the pandemic they kind of lucked out.

961
00:41:40,200 --> 00:41:42,839
Speaker 1: Oh yeah, for sure. So does it ever make sense?

962
00:41:42,840 --> 00:41:45,200
Speaker 3: Actually, so you're talking about leasing, what about leasing an

963
00:41:45,239 --> 00:41:48,080
Speaker 3: electric vehicle? Because I mean, they certainly seem to be

964
00:41:48,160 --> 00:41:50,640
Speaker 3: taking off. I feel like that the change in the

965
00:41:50,640 --> 00:41:53,160
Speaker 3: federal tax credit like that actually could impact the rate

966
00:41:53,200 --> 00:41:57,400
Speaker 3: of adoption as you're trying to decide between leasing versus

967
00:41:57,400 --> 00:41:58,320
Speaker 3: actually purchasing.

968
00:41:58,640 --> 00:42:00,200
Speaker 1: Yeah, what would you would you tell a friend or.

969
00:42:00,160 --> 00:42:01,800
Speaker 3: What would you tell a client if they're thinking about

970
00:42:02,280 --> 00:42:05,879
Speaker 3: switching to electric whether or not they should buy new,

971
00:42:05,920 --> 00:42:07,560
Speaker 3: whether or not they should buy used, whether or not

972
00:42:07,560 --> 00:42:09,200
Speaker 3: they should even consider leasing it.

973
00:42:09,640 --> 00:42:12,120
Speaker 4: Yeah, Look, I think a lease or buy is a

974
00:42:12,160 --> 00:42:14,400
Speaker 4: separate question, which I think that comes down to the

975
00:42:14,640 --> 00:42:17,480
Speaker 4: you know, to the specific program offered by the manufacturer.

976
00:42:17,560 --> 00:42:19,800
Speaker 4: How attractive is the least relative to the purchase doesn't

977
00:42:19,800 --> 00:42:22,799
Speaker 4: make sense, What are the terms and whatnot. There's no

978
00:42:22,840 --> 00:42:25,400
Speaker 4: doubt about it that, you know, electric evs are growing,

979
00:42:25,480 --> 00:42:27,359
Speaker 4: right It's like at around seven or eight percent market

980
00:42:27,440 --> 00:42:29,960
Speaker 4: chare right now. Some projections are that it's going to

981
00:42:30,000 --> 00:42:32,160
Speaker 4: peak at twenty, some at fifty, some at one hundred.

982
00:42:32,760 --> 00:42:34,080
Speaker 4: I have no idea. I don't think it's going to

983
00:42:34,120 --> 00:42:35,600
Speaker 4: get to one hundred. I don't think it's going to

984
00:42:35,640 --> 00:42:37,960
Speaker 4: peak anytime soon. So I think we're gonna you know,

985
00:42:38,120 --> 00:42:40,600
Speaker 4: and I know that doesn't say much, but I think

986
00:42:40,640 --> 00:42:42,160
Speaker 4: somewhere in the middle is where we're going to land.

987
00:42:42,560 --> 00:42:46,640
Speaker 4: I can tell you like you're seeing that especially with

988
00:42:46,719 --> 00:42:51,040
Speaker 4: like coastal elites specifically from clientele that you know we're serving,

989
00:42:51,080 --> 00:42:53,080
Speaker 4: You're seeing that there's a lot more you know, interest

990
00:42:53,200 --> 00:42:56,000
Speaker 4: on electric like that. I think the term search, Yeah,

991
00:42:56,040 --> 00:42:59,640
Speaker 4: the term for electric on CarMax like doubled from twenty

992
00:42:59,680 --> 00:43:02,520
Speaker 4: twenty to twenty twenty three from February twenty twenty three

993
00:43:02,560 --> 00:43:05,080
Speaker 4: on CarMax dot com just as an example. So like

994
00:43:05,120 --> 00:43:07,040
Speaker 4: there's no doubt about it that electric is just on

995
00:43:07,080 --> 00:43:08,880
Speaker 4: the rise big time all across the board. There's more

996
00:43:08,920 --> 00:43:11,279
Speaker 4: consumer interest in it. Yeah, But I do think that

997
00:43:11,320 --> 00:43:14,279
Speaker 4: you know, it serves or a very specific you know,

998
00:43:15,440 --> 00:43:18,160
Speaker 4: cohorts of customers are interested in that. And I think

999
00:43:18,160 --> 00:43:20,600
Speaker 4: that you know, we're seeing just like you're everyday American.

1000
00:43:21,239 --> 00:43:24,839
Speaker 4: I mean, we're getting more questions about affordability, right, like

1001
00:43:24,960 --> 00:43:27,799
Speaker 4: reliability and just much less so on like ev versus

1002
00:43:27,840 --> 00:43:30,839
Speaker 4: you know, combustion engines, and so I think that it's

1003
00:43:30,840 --> 00:43:33,239
Speaker 4: going to take time until it kind of starts to

1004
00:43:33,280 --> 00:43:36,480
Speaker 4: really get into more with like you know, mass the

1005
00:43:36,960 --> 00:43:40,439
Speaker 4: mass population, but it's definitely moving quickly there. I think again,

1006
00:43:40,560 --> 00:43:43,400
Speaker 4: least versus buys depends on the OEM and the program

1007
00:43:43,440 --> 00:43:46,239
Speaker 4: offered at the time, but ultimately, like, I have nothing

1008
00:43:46,239 --> 00:43:48,160
Speaker 4: against electric I think, you know, it serves a certain

1009
00:43:48,200 --> 00:43:50,440
Speaker 4: type of client and needs, and I think it's here

1010
00:43:50,440 --> 00:43:51,880
Speaker 4: to stay and it's going to grow very quickly.

1011
00:43:52,400 --> 00:43:55,080
Speaker 2: So you just mentioned reliability, and it feels like when

1012
00:43:55,080 --> 00:43:59,120
Speaker 2: you're buying, especially a used electric vehicle, it's it throws

1013
00:43:59,160 --> 00:44:02,840
Speaker 2: into a whole series of other questions that come along

1014
00:44:02,880 --> 00:44:05,160
Speaker 2: with that purchase. Whereas you kind of know the questions

1015
00:44:05,239 --> 00:44:07,120
Speaker 2: to ask or are the things to look at when

1016
00:44:07,160 --> 00:44:10,440
Speaker 2: you're buying maybe a new internal combustion or excuse me,

1017
00:44:10,480 --> 00:44:14,759
Speaker 2: a used internal combustion engine vehicle, but with you're like, hey, okay,

1018
00:44:14,760 --> 00:44:15,920
Speaker 2: how old is this? How hold it's about it?

1019
00:44:15,960 --> 00:44:16,040
Speaker 1: Well?

1020
00:44:16,080 --> 00:44:18,480
Speaker 2: How much is how much range does this actually still have?

1021
00:44:18,800 --> 00:44:21,120
Speaker 2: How how how does someone navigate that when they're buying

1022
00:44:21,160 --> 00:44:23,680
Speaker 2: And you just had someone on actually on your podcast

1023
00:44:23,800 --> 00:44:26,960
Speaker 2: talking about their startup and how they're kind of they're

1024
00:44:26,960 --> 00:44:29,520
Speaker 2: trying to standardize what it what it looks like for

1025
00:44:29,719 --> 00:44:32,400
Speaker 2: a consumer to approach buying a US DV. But how

1026
00:44:32,440 --> 00:44:33,800
Speaker 2: do we do that right now? Kind of feels like

1027
00:44:33,800 --> 00:44:34,720
Speaker 2: the wild wild West.

1028
00:44:35,200 --> 00:44:38,560
Speaker 4: Yes. Shameless Plog Car Dealership Guide Podcast Number one automotive

1029
00:44:38,560 --> 00:44:42,000
Speaker 4: podcast in the world. That's right, baby, And you guys

1030
00:44:42,000 --> 00:44:43,719
Speaker 4: are crushing it as well. I mean, I see you

1031
00:44:43,719 --> 00:44:46,200
Speaker 4: guys on the ranks just killing it. So like love

1032
00:44:46,239 --> 00:44:47,640
Speaker 4: to see the work you guys have done here. It's

1033
00:44:47,640 --> 00:44:51,880
Speaker 4: just truly, truly commendable. What I'll tell you is buying

1034
00:44:51,880 --> 00:44:53,960
Speaker 4: an EV is different, bottom line, There's no doubt about it.

1035
00:44:54,040 --> 00:44:55,799
Speaker 4: And there's a lot of companies that are starting to

1036
00:44:55,880 --> 00:44:58,359
Speaker 4: you know, pop up, and they're trying to, you know,

1037
00:44:58,440 --> 00:45:00,880
Speaker 4: make that easier for the consumer. Me as a dealer,

1038
00:45:01,000 --> 00:45:03,320
Speaker 4: I can tell you that it's it's a bit confusing,

1039
00:45:03,360 --> 00:45:05,040
Speaker 4: Like if you're an auction like I'm unsure like is

1040
00:45:05,080 --> 00:45:07,440
Speaker 4: this battery good? Is it not good? How do I

1041
00:45:07,480 --> 00:45:10,560
Speaker 4: really know? Now? There again company like you mentioned, like

1042
00:45:10,719 --> 00:45:12,920
Speaker 4: it's called recurrent, where what they're doing is they're essentially

1043
00:45:12,920 --> 00:45:17,000
Speaker 4: giving you battery battery reports. And so you as a buyer, right, Like,

1044
00:45:17,040 --> 00:45:19,120
Speaker 4: what's like the one of the most expensive parts of

1045
00:45:19,120 --> 00:45:22,080
Speaker 4: a EV electric vehicle, Well, the battery. If the battery

1046
00:45:22,080 --> 00:45:24,240
Speaker 4: goes bad, I mean it's you know, it's very expensive.

1047
00:45:24,239 --> 00:45:27,200
Speaker 4: It could be thousands and thousands of dollars if it's

1048
00:45:27,200 --> 00:45:30,000
Speaker 4: past a warranty, and so what these companies are trying

1049
00:45:30,000 --> 00:45:31,960
Speaker 4: to do is they're trying to provide you reporting and

1050
00:45:32,040 --> 00:45:34,080
Speaker 4: almost like you know, in the past we'd say like

1051
00:45:34,120 --> 00:45:36,800
Speaker 4: carfax report. This is very different. This is not a

1052
00:45:36,880 --> 00:45:38,759
Speaker 4: vehicle history, but this is more of like you know,

1053
00:45:38,840 --> 00:45:40,719
Speaker 4: a kint or it's it's similar to the sense of

1054
00:45:40,760 --> 00:45:42,560
Speaker 4: like this is like a battery report. And so I

1055
00:45:42,560 --> 00:45:44,279
Speaker 4: think it's it's it's definitely going to solve a big

1056
00:45:44,280 --> 00:45:46,360
Speaker 4: need in the market already is and it's you know,

1057
00:45:46,480 --> 00:45:48,880
Speaker 4: just using that apprehension for consumers that are looking to

1058
00:45:48,920 --> 00:45:52,520
Speaker 4: buy used evs and having more knowledge and transparency into

1059
00:45:52,560 --> 00:45:55,080
Speaker 4: the into the history of this battery and its performance

1060
00:45:55,080 --> 00:45:56,960
Speaker 4: to make sure that you're not buying an EV and

1061
00:45:57,040 --> 00:45:59,040
Speaker 4: suddenly you realize that it has a bad battery and

1062
00:45:59,080 --> 00:46:01,160
Speaker 4: you're you know, thousands and so I think that's going

1063
00:46:01,200 --> 00:46:02,640
Speaker 4: to be the biggest thing with buying a used DV.

1064
00:46:02,680 --> 00:46:04,840
Speaker 4: It's just understanding the state of the battery. On the

1065
00:46:04,880 --> 00:46:06,960
Speaker 4: flip side, I think there's a lot of benefits where

1066
00:46:06,960 --> 00:46:09,000
Speaker 4: like you know, you don't have to worries too much

1067
00:46:09,000 --> 00:46:11,359
Speaker 4: about like you don't have like oil changes, and there's

1068
00:46:11,360 --> 00:46:13,239
Speaker 4: just all these other things that you know, make just

1069
00:46:13,320 --> 00:46:17,440
Speaker 4: a EV fundamentally different than a combustion engine vehicle, but

1070
00:46:17,520 --> 00:46:19,200
Speaker 4: I think they all have their pluses and mind says.

1071
00:46:19,239 --> 00:46:21,879
Speaker 4: Evs do require a bit less service for the most

1072
00:46:21,880 --> 00:46:23,800
Speaker 4: part for outifty combustion vehicles.

1073
00:46:24,120 --> 00:46:26,839
Speaker 3: Yeah, well, so you focusing on the battery there makes

1074
00:46:26,840 --> 00:46:28,600
Speaker 3: me think of range anxiety.

1075
00:46:28,719 --> 00:46:30,200
Speaker 1: So obviously the tech is.

1076
00:46:30,160 --> 00:46:33,120
Speaker 3: Going to improve, whether it's through companies like you mentioned

1077
00:46:33,160 --> 00:46:35,360
Speaker 3: that are going to be able to grade the batteries,

1078
00:46:35,400 --> 00:46:38,320
Speaker 3: but hopefully we're going to also see the infrastructure increase

1079
00:46:38,480 --> 00:46:40,440
Speaker 3: as well. And it sounds like you were thinking at

1080
00:46:40,440 --> 00:46:42,360
Speaker 3: some point it might be fifty to fifty whether it

1081
00:46:42,400 --> 00:46:46,440
Speaker 3: comes to gasoline powered vehicles compared to electric vehicles. When

1082
00:46:46,480 --> 00:46:48,359
Speaker 3: do you think we will? You know, and we're kind

1083
00:46:48,400 --> 00:46:49,960
Speaker 3: of looking off into the future a little bit here,

1084
00:46:50,000 --> 00:46:52,440
Speaker 3: but at what point do you think the typical American

1085
00:46:52,560 --> 00:46:55,120
Speaker 3: is going to feel comfortable buying an EV knowing that

1086
00:46:55,160 --> 00:46:58,160
Speaker 3: they have the infrastructure around them that's going to allow

1087
00:46:58,200 --> 00:46:59,879
Speaker 3: them to take some day trips, that's going to allow

1088
00:46:59,920 --> 00:47:02,160
Speaker 3: them to get out on the open road where they're

1089
00:47:02,200 --> 00:47:05,120
Speaker 3: not necessarily counting on coming back home and recharging every

1090
00:47:05,120 --> 00:47:05,480
Speaker 3: single night.

1091
00:47:05,520 --> 00:47:07,200
Speaker 1: When are we going to reach Norway status?

1092
00:47:07,320 --> 00:47:10,480
Speaker 4: Yeah? Well, I think it's you know, if battery technology

1093
00:47:10,520 --> 00:47:12,520
Speaker 4: gets us to a point where the range on an

1094
00:47:12,600 --> 00:47:16,320
Speaker 4: EV is just in the hundreds and hundreds, where people

1095
00:47:16,360 --> 00:47:18,440
Speaker 4: don't have to worry, truly don't have to worry about

1096
00:47:18,760 --> 00:47:21,279
Speaker 4: charging their EV unless they're at home. Right, That's one

1097
00:47:21,320 --> 00:47:24,040
Speaker 4: solution where you say, like, oh, if I'm making a subparight,

1098
00:47:24,080 --> 00:47:25,640
Speaker 4: but let's I have a thousand miles I can drive

1099
00:47:25,680 --> 00:47:29,000
Speaker 4: in my EV. Great, Like, if I can thousand.

1100
00:47:28,719 --> 00:47:29,959
Speaker 1: Miles, I would get an EV today.

1101
00:47:30,840 --> 00:47:32,880
Speaker 4: Say yeah, you see how you responded, You're like, I

1102
00:47:32,880 --> 00:47:34,839
Speaker 4: would get it. I would think about it. Now. On

1103
00:47:34,880 --> 00:47:36,759
Speaker 4: the other side, there's another there's a different type of

1104
00:47:36,760 --> 00:47:39,400
Speaker 4: solution which you could say, okay, well maybe not that,

1105
00:47:39,560 --> 00:47:43,640
Speaker 4: but maybe just super charges are become ubiquitous everywhere. Imagine

1106
00:47:43,640 --> 00:47:46,640
Speaker 4: if every gas station at America had a super exactly right.

1107
00:47:46,840 --> 00:47:49,200
Speaker 4: So that's another option. And so I think it just

1108
00:47:49,640 --> 00:47:51,040
Speaker 4: like I think we, you know, as a society, we

1109
00:47:51,080 --> 00:47:53,560
Speaker 4: got to keep making progress on the We need to

1110
00:47:53,560 --> 00:47:56,960
Speaker 4: continue progressing with our infrastructure and make sure that you know,

1111
00:47:57,040 --> 00:47:59,960
Speaker 4: if ev' is having an infrastructure all around, and range

1112
00:48:00,080 --> 00:48:02,440
Speaker 4: becomes less and less of a topic and you don't

1113
00:48:02,440 --> 00:48:03,799
Speaker 4: have to think, you know, you get to a point

1114
00:48:03,840 --> 00:48:05,800
Speaker 4: where like you don't think about the range. It's just

1115
00:48:05,840 --> 00:48:07,759
Speaker 4: like I'm buying an EV because it's you know, I

1116
00:48:07,800 --> 00:48:09,759
Speaker 4: want to buy an EV and I don't know range

1117
00:48:09,800 --> 00:48:11,520
Speaker 4: is going to be there. I'm not even worried about that.

1118
00:48:11,719 --> 00:48:13,800
Speaker 4: I mean, I think that's going to obviously increase adoption

1119
00:48:13,880 --> 00:48:16,399
Speaker 4: even more. And look the way the industry has been

1120
00:48:16,880 --> 00:48:19,600
Speaker 4: progressing and evolving, I don't think it's it's I think

1121
00:48:19,640 --> 00:48:21,640
Speaker 4: it's going to happen one way or another, whether we're

1122
00:48:21,640 --> 00:48:23,920
Speaker 4: going to have super charges at every corner, or we're

1123
00:48:23,920 --> 00:48:27,600
Speaker 4: gonna have these you know, crazy long range batteries something.

1124
00:48:28,040 --> 00:48:29,560
Speaker 4: I mean, I think our range is just going to

1125
00:48:29,600 --> 00:48:32,920
Speaker 4: continue improving, and ultimately that's going to translate into increased

1126
00:48:32,960 --> 00:48:34,000
Speaker 4: adoption of EV's.

1127
00:48:34,280 --> 00:48:36,960
Speaker 2: Yeah, my first niece on leaf eighty two mile range

1128
00:48:37,120 --> 00:48:39,399
Speaker 2: and over the six years, I mean it went down

1129
00:48:39,440 --> 00:48:41,360
Speaker 2: to I don't know, like sixty sixth that by the

1130
00:48:41,360 --> 00:48:41,719
Speaker 2: time I.

1131
00:48:41,680 --> 00:48:43,360
Speaker 1: Sold it maybe forty in the winter.

1132
00:48:43,280 --> 00:48:44,360
Speaker 4: Right exactly.

1133
00:48:44,440 --> 00:48:45,520
Speaker 1: Well, that was one of the problems.

1134
00:48:45,520 --> 00:48:48,360
Speaker 2: And now I heard somebody I think on your podcast

1135
00:48:48,440 --> 00:48:51,040
Speaker 2: that we're talking about how what was it that you

1136
00:48:51,080 --> 00:48:53,359
Speaker 2: need separate in order to heat heat the car because

1137
00:48:53,360 --> 00:48:56,760
Speaker 2: of its lower like a heat pump heat heat pumping

1138
00:48:56,800 --> 00:48:59,399
Speaker 2: an EV, so look for that if you actually want

1139
00:48:59,400 --> 00:49:00,160
Speaker 2: to run your heat.

1140
00:49:00,040 --> 00:49:01,720
Speaker 4: During the war. Was yeah, that was good. I didn't

1141
00:49:01,719 --> 00:49:03,000
Speaker 4: know that one, so yeah.

1142
00:49:02,840 --> 00:49:03,640
Speaker 1: I didn't know that either.

1143
00:49:03,760 --> 00:49:07,239
Speaker 2: So all right, Car Dealership Guy, such a pleasure having

1144
00:49:07,280 --> 00:49:09,920
Speaker 2: you on the podcast. Where can our listeners find out

1145
00:49:09,920 --> 00:49:11,040
Speaker 2: more about you and what you're up to?

1146
00:49:11,480 --> 00:49:14,240
Speaker 4: Gentlemen, it was really good to be on some great questions.

1147
00:49:14,280 --> 00:49:17,480
Speaker 4: I'm on Twitter, you know, the at guide Dealership you

1148
00:49:17,480 --> 00:49:19,439
Speaker 4: can order just write Car dealtri Guy. You can see

1149
00:49:19,440 --> 00:49:22,000
Speaker 4: all my tweets and all my good stuff there. Of

1150
00:49:22,040 --> 00:49:24,480
Speaker 4: course I mentioned I do have the Car Dealership Guy podcast,

1151
00:49:24,560 --> 00:49:26,880
Speaker 4: which is sort of the fastest growing part of my

1152
00:49:26,960 --> 00:49:29,560
Speaker 4: brand here where I just share transparent insights into the

1153
00:49:29,560 --> 00:49:32,200
Speaker 4: car business. So if you're interested, you know, follow us

1154
00:49:32,239 --> 00:49:35,640
Speaker 4: on Apple or whoever Spotify and you can listen to

1155
00:49:35,680 --> 00:49:38,200
Speaker 4: all my stuff. And so it's great being on things.

1156
00:49:38,239 --> 00:49:40,120
Speaker 4: For inviting me, and you know, I hope this was

1157
00:49:40,120 --> 00:49:42,480
Speaker 4: helpful for people that are trying to navigate this crazy market.

1158
00:49:43,080 --> 00:49:45,759
Speaker 3: Yeah, yeah, well awesome, Thank you so much for joining us.

1159
00:49:45,880 --> 00:49:50,000
Speaker 3: Thank you so much, guys, joel Man. It was really refreshing,

1160
00:49:50,000 --> 00:49:53,200
Speaker 3: honestly to get somebody who's kind of like inside the house,

1161
00:49:53,360 --> 00:49:56,640
Speaker 3: you know, like the colls coming from inside that. But

1162
00:49:56,680 --> 00:49:59,040
Speaker 3: I feel like CDG he was able to provide us

1163
00:49:59,080 --> 00:50:02,040
Speaker 3: with a lot of insight. He's got a pulse on

1164
00:50:02,080 --> 00:50:05,080
Speaker 3: what is going on with the car industry, with a

1165
00:50:05,120 --> 00:50:07,319
Speaker 3: new car industry, with a used car market as well.

1166
00:50:07,440 --> 00:50:10,600
Speaker 2: Yeah, I love getting kind of the back information on

1167
00:50:10,680 --> 00:50:12,319
Speaker 2: kind of whatsp We knew a little bit, but man,

1168
00:50:12,320 --> 00:50:13,799
Speaker 2: we're not We're not as plugged in as he is.

1169
00:50:13,800 --> 00:50:16,080
Speaker 2: So I love hearing kind of the what would he

1170
00:50:16,239 --> 00:50:18,200
Speaker 2: his take on the past three three and a half years,

1171
00:50:18,680 --> 00:50:20,520
Speaker 2: and then you know kind of what to look forward

1172
00:50:20,560 --> 00:50:22,960
Speaker 2: moving forward with what trends to expect. I think there's

1173
00:50:23,080 --> 00:50:24,920
Speaker 2: a lot anybody who's in the used or new car

1174
00:50:24,960 --> 00:50:26,440
Speaker 2: market could learn from from the most.

1175
00:50:26,960 --> 00:50:29,400
Speaker 1: Did you have a big takeaway from our convent today?

1176
00:50:29,440 --> 00:50:32,120
Speaker 2: I did, but there's there's so many one you had

1177
00:50:32,160 --> 00:50:34,959
Speaker 2: a bunch of data. Financing a car new or used

1178
00:50:35,000 --> 00:50:37,520
Speaker 2: sucks right now. It's really expensive, so come with cash.

1179
00:50:37,680 --> 00:50:39,640
Speaker 2: But I think the biggest thing that stuck out to

1180
00:50:39,640 --> 00:50:42,000
Speaker 2: me was when he said that new cars in general

1181
00:50:42,120 --> 00:50:46,400
Speaker 2: are becoming a luxury good. Not just luxury cars, but

1182
00:50:46,680 --> 00:50:48,879
Speaker 2: any new car in general is becoming a luxury good.

1183
00:50:48,880 --> 00:50:51,080
Speaker 2: And I think that's true. I do think that's true.

1184
00:50:51,160 --> 00:50:52,680
Speaker 2: I think he spot on. When you look at kind

1185
00:50:52,680 --> 00:50:55,439
Speaker 2: of the the overall average sales price of a new car,

1186
00:50:55,920 --> 00:51:00,160
Speaker 2: it's increased dramatically in the past decade, and so it

1187
00:51:00,280 --> 00:51:01,920
Speaker 2: just it just makes me want to stick to my

1188
00:51:01,960 --> 00:51:05,200
Speaker 2: guns even more when it comes to the best financial

1189
00:51:05,280 --> 00:51:08,040
Speaker 2: choice for most people being by used, and even that,

1190
00:51:08,360 --> 00:51:10,399
Speaker 2: like we were talking about, has become fraught with peril

1191
00:51:10,440 --> 00:51:11,920
Speaker 2: in so many more ways, and you have to really

1192
00:51:12,040 --> 00:51:14,240
Speaker 2: look out for yourself and really be a good shopper.

1193
00:51:14,520 --> 00:51:16,600
Speaker 2: But you're you're standing to save a lot of money,

1194
00:51:16,640 --> 00:51:20,560
Speaker 2: and buying new is kind of a luxury choice if

1195
00:51:20,560 --> 00:51:22,960
Speaker 2: you have the money, and that's the avenue you really

1196
00:51:22,960 --> 00:51:24,839
Speaker 2: want to go down, and in particular, if you're going

1197
00:51:24,840 --> 00:51:26,520
Speaker 2: to keep it a long time, it's not the worst

1198
00:51:26,600 --> 00:51:29,439
Speaker 2: thing you could do. But I love how he praised it. Yeah,

1199
00:51:29,480 --> 00:51:31,720
Speaker 2: I mean, as you're talking about luxury cars, he touched

1200
00:51:31,719 --> 00:51:35,160
Speaker 2: on the fact that because manufacturers like they're not making

1201
00:51:35,200 --> 00:51:37,799
Speaker 2: as many entry level vehicles anymore, because why would they

1202
00:51:37,800 --> 00:51:41,000
Speaker 2: when the margins are so nice. When it comes to

1203
00:51:41,200 --> 00:51:43,480
Speaker 2: the true luxury cars, well, there's only only so many

1204
00:51:43,560 --> 00:51:45,680
Speaker 2: chips to go around, why not stick them in like

1205
00:51:46,000 --> 00:51:49,200
Speaker 2: literally eighty thousand micro truck processors. Yeah, champs exactly that

1206
00:51:49,280 --> 00:51:51,200
Speaker 2: go in the vehicles. But uh yeah, that really stood

1207
00:51:51,200 --> 00:51:54,000
Speaker 2: out to me. And also like another theme or takeaway

1208
00:51:54,000 --> 00:51:56,680
Speaker 2: I think can be to like, if you don't care

1209
00:51:57,080 --> 00:52:00,480
Speaker 2: about cars, the less choosy, the less picky that you.

1210
00:52:00,400 --> 00:52:02,680
Speaker 3: Can be, that is going to allow you to to

1211
00:52:02,760 --> 00:52:05,600
Speaker 3: snag the best deal, whether it comes to cars where

1212
00:52:05,640 --> 00:52:07,160
Speaker 3: there's just a lot of inventory, because that's the thing.

1213
00:52:07,160 --> 00:52:09,880
Speaker 3: Folks a lot of times they go into car shopping

1214
00:52:10,000 --> 00:52:12,799
Speaker 3: knowing what kind of car they're looking for, and well,

1215
00:52:13,000 --> 00:52:16,279
Speaker 3: there's a lot less flexibility if you already if you're

1216
00:52:16,520 --> 00:52:18,400
Speaker 3: if you've narrowed it down to a make and model

1217
00:52:18,680 --> 00:52:21,800
Speaker 3: versus like he said, uh, you know, buix literally rotting

1218
00:52:21,840 --> 00:52:24,200
Speaker 3: on the lot, right, If you are flexible and you

1219
00:52:24,239 --> 00:52:26,920
Speaker 3: can find a vehicle that you know it's got decent

1220
00:52:27,000 --> 00:52:31,480
Speaker 3: reliability reports. But if the dealer or even that then

1221
00:52:31,520 --> 00:52:33,560
Speaker 3: trickles down to the used market, that's gonna lead to

1222
00:52:33,600 --> 00:52:36,200
Speaker 3: lower prices overall. And so if you can be less choosy,

1223
00:52:36,239 --> 00:52:38,279
Speaker 3: less picky, I think you know you're you're going to

1224
00:52:38,360 --> 00:52:39,719
Speaker 3: absolutely be able to get the best deal.

1225
00:52:39,800 --> 00:52:43,279
Speaker 2: That's the exact advice we give when it comes to travel, right,

1226
00:52:43,320 --> 00:52:45,600
Speaker 2: It's it's pick your destination after the fact. Look, the

1227
00:52:45,640 --> 00:52:47,279
Speaker 2: deal kind of drive you, and I think if you're

1228
00:52:47,360 --> 00:52:50,000
Speaker 2: less picky about oh, I just need this specific color,

1229
00:52:50,040 --> 00:52:52,840
Speaker 2: even think about that. If you're the more specific, the

1230
00:52:52,840 --> 00:52:55,160
Speaker 2: more choosy you are, then there's a whole lot less

1231
00:52:55,200 --> 00:52:56,160
Speaker 2: likelihood that you're gonna.

1232
00:52:55,960 --> 00:52:56,600
Speaker 4: Be able to get a deal.

1233
00:52:56,640 --> 00:52:57,600
Speaker 1: Totally yep, yep.

1234
00:52:57,640 --> 00:52:59,839
Speaker 3: So I feel like that's a good just overall philosophy

1235
00:52:59,840 --> 00:53:03,360
Speaker 3: on on maybe how folks should consider approaching their next

1236
00:53:03,480 --> 00:53:04,120
Speaker 3: vehicle purchase.

1237
00:53:04,160 --> 00:53:04,960
Speaker 4: But let's get to the beer.

1238
00:53:05,080 --> 00:53:08,759
Speaker 3: Joel, you and I we enjoyed an alligash hop reach.

1239
00:53:09,239 --> 00:53:11,239
Speaker 1: I pa, what were your thoughts on this?

1240
00:53:11,320 --> 00:53:12,840
Speaker 2: I pa, Okay, I was gonna say this one was

1241
00:53:12,840 --> 00:53:14,680
Speaker 2: a bit perfume. I don't know if you got that

1242
00:53:15,040 --> 00:53:17,800
Speaker 2: taste and on the nose, but give it another sniff.

1243
00:53:17,800 --> 00:53:18,120
Speaker 4: You had like.

1244
00:53:18,120 --> 00:53:21,160
Speaker 2: Botanical kind of vibes going on in my mind, almost

1245
00:53:21,239 --> 00:53:23,400
Speaker 2: like a like a gin or some sort of tropical

1246
00:53:23,400 --> 00:53:25,839
Speaker 2: garden with maybe gin infused tropical garden.

1247
00:53:25,840 --> 00:53:28,560
Speaker 3: Now you're saying that because there's like flowers and florals

1248
00:53:28,920 --> 00:53:29,600
Speaker 3: are drawn all.

1249
00:53:29,560 --> 00:53:30,120
Speaker 1: Over the label.

1250
00:53:30,239 --> 00:53:34,720
Speaker 3: Suddenly, take your subconscious has been impacted by the graphics.

1251
00:53:34,800 --> 00:53:37,600
Speaker 2: I think it does. It has just more of like

1252
00:53:37,640 --> 00:53:41,920
Speaker 2: a perfume botanical sort of vibe going on. So maybe now,

1253
00:53:42,040 --> 00:53:44,560
Speaker 2: maybe they just made the label based on what it tastes, like, Matt.

1254
00:53:45,000 --> 00:53:47,080
Speaker 3: Perhaps I'm not gonna argue with you at all all that,

1255
00:53:47,239 --> 00:53:49,160
Speaker 3: like we all taste what we taste.

1256
00:53:49,239 --> 00:53:52,080
Speaker 2: But my thoughts were that this was we all know

1257
00:53:52,120 --> 00:53:53,200
Speaker 2: my taste bugs are inferior.

1258
00:53:53,520 --> 00:53:55,360
Speaker 3: No no, no, Like I'm not gonna say that you

1259
00:53:55,400 --> 00:53:57,799
Speaker 3: didn't taste that, because you know, like we all have

1260
00:53:57,840 --> 00:53:59,920
Speaker 3: our different filters that we run things through. But it's

1261
00:54:00,080 --> 00:54:02,520
Speaker 3: as the general style. This wasn't like a West Coast ipa.

1262
00:54:02,600 --> 00:54:06,440
Speaker 3: This was because it wasn't overly bitter, resiny, piney. It

1263
00:54:06,800 --> 00:54:09,640
Speaker 3: also wasn't like a New England hazy where you've got

1264
00:54:09,680 --> 00:54:13,520
Speaker 3: like those orange juice with those sharp hop notes. This

1265
00:54:13,640 --> 00:54:16,080
Speaker 3: was just like a middle of the road, solid India

1266
00:54:16,120 --> 00:54:19,000
Speaker 3: pale ale. It was refreshing and I'm glad that you

1267
00:54:19,000 --> 00:54:21,719
Speaker 3: and I got to share this Alligash beer here on

1268
00:54:21,760 --> 00:54:22,080
Speaker 3: the show.

1269
00:54:22,200 --> 00:54:25,279
Speaker 2: We'll say this. I love Aligash. They're better at their

1270
00:54:25,320 --> 00:54:28,440
Speaker 2: white Belgian styles, their Farmhouse. That one's great, or they're

1271
00:54:28,480 --> 00:54:31,160
Speaker 2: better at ye barrel aged oak Gage sort of sort

1272
00:54:31,160 --> 00:54:33,640
Speaker 2: of beers as well. This this is not my favorite

1273
00:54:33,640 --> 00:54:36,520
Speaker 2: from them, but I love Alligash's brewery, so I was

1274
00:54:36,560 --> 00:54:37,600
Speaker 2: more than happy to try this.

1275
00:54:37,560 --> 00:54:38,319
Speaker 1: One if I was.

1276
00:54:38,360 --> 00:54:40,120
Speaker 3: If I were to write this one untapped, i'd give

1277
00:54:40,120 --> 00:54:41,799
Speaker 3: it a solid three seven four.

1278
00:54:41,920 --> 00:54:43,799
Speaker 1: All right, let's good beer, solid middle of the road

1279
00:54:43,840 --> 00:54:44,560
Speaker 1: for sure. Exactly.

1280
00:54:45,000 --> 00:54:46,719
Speaker 2: That's going to do it for this episode. For folks

1281
00:54:46,719 --> 00:54:49,960
Speaker 2: who want show notes, links to car dealership guys, Twitter,

1282
00:54:50,080 --> 00:54:52,040
Speaker 2: and some of the other assets that he mentioned, you

1283
00:54:52,040 --> 00:54:53,800
Speaker 2: can find that up on our website at hot toomoney

1284
00:54:53,800 --> 00:54:56,839
Speaker 2: dot com. There's just tons of money saving information in

1285
00:54:56,840 --> 00:54:59,960
Speaker 2: addition to the podcast up there on our website as well.

1286
00:55:00,400 --> 00:55:03,120
Speaker 2: So Matt, that's gonna do it. Until next time, Best

1287
00:55:03,120 --> 00:55:05,160
Speaker 2: Friends Out and best Friends Out.