In this video interview at Used Car Week in mid-November, Auto Remarketing talks with Black Book’s Jared Kalfus about how his company has partnered with companies that are on the cutting-edge of online strategy in the car business, including dealer groups.
Kalfus, who is senior vice president of sales at Black Book, talks about the company’s work with AutoNation, which he said is utilizing Black Book data to power its online trade appraisal and lead-generation tool called AutoNation Express.
That platform, Kalfus explains, aims to get the purchase experience down to an hour.
Will more dealer groups be heading that way, in terms of moving more elements online and quickening the purchasing process?
Check out the above video to see what Kalfus had to say.
AutoAp leveraged its proprietary safety recall discovery and verification capability this week with the launch of what it’s calling Recall Status Now; a tool developers believe is the industry’s first real-time safety recall status verification mobile app.
AutoAp explained that its automated, multi-sourced and validated recall verification process can deliver more accurate and timely safety recall status updates than what is available from the National Highway Traffic Safety Administration or vehicle history report companies.
“Other recall lookup tools exist (including safercar.gov) that can check the VIN-specific safety recall status, but they have inaccurate recall information and/or significant recall data publishing delays that contribute to false-positive, or worse, false-negative safety recall status results,” company officials said.
The company said its level of accuracy can allow dealers to rely on Recall Status Now to make better business decisions at acquisition, either during the trade-in process or through wholesale channels.
“Taking an off-brand vehicle in trade and finding out it has open safety recalls will cost you to transport it to and from authorized repair, and add time getting it front-line ready,” company officials said.
“And, passing up buying an in-brand trade that has open safety recalls is flushing high margin service revenue down the drain,” they went on to say.
Officials went on to highlight the newest addition to AutoAp’s family of safety recall management solutions can enable dealers to scan a VIN with the mobile app, and quickly get its current, accurate safety recall status, that can be printed or emailed directly from the app.
Recall Status Now joins Dynamic Recall Management — AutoAp’s flagship daily inventory safety recall review service, which is currently selling into the franchised dealer, vehicle rental and fleet markets.
More details about the tool can be found at www.autoap.com.
Kelley Blue Book TV fans that also happen to own a variant of a Roku streaming device can now enjoy both, as KBB announced at the end of December that its streaming channel is now available on Roku.
KBB’s free streaming service provides video content from the editors at KBB.com and allows consumers to gain insight and research vehicles with streamed video content that focuses on various new vehicles, special features, expert reviews, auto show coverage, and more.
"By offering more than 200 vehicle reviews and auto-related features, Kelley Blue Book TV not only helps car shoppers in making the best possible purchase decisions, but also uses visual storytelling to present videos that will entertain as much as they inform," said Jack Nerad, executive editorial director and executive market analyst for KBB.com. "Our multi-award-winning videos offer trusted, objective vehicle information in a visually compelling format, detailing experiences unlike any test drive you've been on, including off-beat, off-road adventures and even a breathtaking helicopter skydive."
KBB recently won the 2015 Dean Batchelor Award for Excellence in Automotive Journalism, judged by the Motor Press Guild, for its “Polaris Slingshot Review” video.
Roku users interested in checking out KBB TV can find it in the Roku Channel Store in the “lifestyle” category, or add the channel online here. KBB TV is completely free and requires no subscription.
Three automotive technology providers — AutoPoint, DMEautomotive and TitleTec — announced Monday that they have collectively integrated to create a single technology and marketing platform.
Branded as AutoPoint, the new comprehensive solution aims to drive revenue and increase retention rates for automotive businesses across the entire vehicle lifecycle.
Applicable for vehicle manufacturers, new-car franchises, aftermarket service providers and independent dealers, the solution combines AutoPoint’s service processes, DMEautomotive’s science-based marketing solutions and TitleTec’s electronic registration tools.
"AutoPoint is designed to fill a critical void in the automotive industry," said Rich Holland, managing director of AutoPoint. "The combination of our three companies' capabilities will provide a powerful, cohesive platform to enrich relationships between our customers and their motorists in ways we haven't seen before."
The AutoPoint service’s goal, as a unified platform, is to reach customers and connect them with their auto service providers throughout the entire vehicle ownership lifecycle, using the digital and mobile channels that are prevalent today.
"This new solution unifies the sales and service processes in a way that enhances motorist interactions, strengthens relationships, and increases transparency for our customers and their customers' customers," Holland said. "This technology will change the way the industry does business."
For more info, visit the AutoPoint site here.
When you’re looking at the big picture of car sales, Cox Automotive’s Juan Flores said, the question that many dealers, automakers and consumers have on their minds is this:
When will digital retailing happen?
“We know that there’s some manufacturers that are doing that really well, but it’s still the minority,” Flores told Auto Remarketing. “And I think that the move to KBB Instant Cash Offer positions us to be the centerpiece of the trade-in component for digital retailing.”
The Kelley Blue Book Instant Cash Offer to which Flores refers is what many of you likely have known as Trade-In Marketplace, under the brand of fellow Cox Auto company Autotrader.
The Cox Automotive Media Group told reporters in late October that TIM was being converted into KBB Instant Cash Offer during the fourth quarter, bringing an entirely new experience for consumers and toolset for dealers along with the new name.
The transition is now officially complete.
“As digital retailing is being molded, KBB Instant Cash Offer is positioning itself to be the centerpiece of that,” Flores said, “so, if there’s anything that we’ve learned along the way in this transition, it’s that we’re headed in the right direction and we can’t get there soon enough.”
In a nutshell, the program allows consumers to either trade-in or sell their ride, without negotiation.
The consumer can visit either the KBB or Autotrader website, punch in the various details and info about his or her car and an Instant Cash Offer is generated.
That offer is based on current transaction data as well as supply-and-demand data.
The shopper then takes the car and the offer to a participating dealer, who inspects and verifies the information and condition. The consumer then has 72 hours to redeem the offer once that info is verified. The shopper can then use the funds toward buying another vehicle or just take a check.
(Note: If the consumer chooses to simply take the money for the car and not buy another, the check comes from the dealer, a Cox Automotive spokesperson explained. The check is backed by Autotrader, the spokesperson said, in case the dealer doesn't accept keeping the car. If the consumer wants to buy a car with the offer, he or she can choose from new, used or certified pre-owned.)
“Consumers are asking for this,” Flores said. “Consumers are asking for more discreet and less range. They’re asking for more specific and less vagueness. They’re asking for more autonomy and transparency. So, this meets the trend. This meets their ask.
“And it creates an opportunity for the dealership.”
So, what does that opportunity entail?
It’s the chance to not only “give the consumer the experience that they’re looking for” — one that includes trust, fairness and openness — but generate inventory for the store, as well, he said.
More on digital retail evolution
Flores said he’s not surprised that many products and services that had only been dealer-facing in the past are becoming consumer-facing.
He gives the examples of Carfax and Experian Automotive’s AutoCheck product in the vehicle history space, and Experian’s services to consumers in the credit score space. Their consumer-facing presence is to the point where you might see commercials advertising those services on day-to-day basis, he said.
“And then you see it with more progressive dealer groups, where they have a buy-it-now price or they have a real competitive price, and they’re showing context,” Flores said.
For instance, say a dealer has an asking price of $14,999, he said. Is that a high or a low price?
Third-party providers like KBB, Edmunds.com and TrueCar, Flores said, enable some additional context around that that price.
Though he acknowledges that he is “slightly biased” having worked in the trade-in space for some time, Flores said he’s seeing some growth in this arena.
“I think this Instant Cash Offer is the first step toward a much more transaction-ready number,” he said. “We’re no longer providing an estimate. It’s providing a transaction-ready number that can easily plug into the digital retailing transaction.”
Vroom chief executive officer Allon Bloch was talking about the reconditioning software and processes of Texas Direct Auto when he paused mid-sentence.
“I’m just going to kind of geek out for a second just to explain to you how it works,” Bloch said.
He then described the steps TDA takes between acquiring a vehicle and having it ready for retail or wholesale distribution. As part of reconditioning process, he explained, each car’s to-do list gets uploaded into an RFID chip, which allows for an automated recon process to facilitate greater speed.
And that is pivotal to the online model at the heart of both Vroom and Texas Direct Auto.
So, you can see where his enthusiasm is warranted.
“Speed is really important. You want to get the car online really quickly, and you want to be able to sell the car really quickly, but you need to make sure that the (job) is done really well,” he said, emphasizing the dual-importance of quickness and quality. “So, they’ve created software to manage that, manage the workflow and manage the different teams.”
Vroom announced Wednesday morning that it had agreed to purchase Texas Direct Auto, and the deal gained approval from the Department of Justice that afternoon, according to the company.
Bloch describes TDA’s production line as a “used-car factory” that he said has not been built to the same scale elsewhere in the industry.
And this is only part of the tech-savviness that has Bloch and his team impressed.
“Texas Direct Auto has led online car retailing and their team shares our business spirit of making buying and selling cars online the smartest and easiest way to transact, with an experience that is transparent and fun,” Vroom chairman Elie Wurtman said in the news release announcing the deal Wednesday.
“The continued investment in technology allows the combined company to tackle the operational complexity of making this vision a reality,” Wurtman added. “Millions of people who want to sell their cars or purchase new ones will be able to do it in a more efficient and empowering way that’s as easy as any other e-commerce transaction.”
And with TDA being described as tech-focused and early adopters of online retailing, perhaps it makes total sense that this Houston-based outfit was founded by two former owners of a software business.
Tech entrepreneurs Mike Welch and Rick Williams sold their software company before starting Texas Direct Auto in 2002 — out of a warehouse, no less.
“What we brought to the car business is that we did not know anything about the car business,” Welch said with a laugh. “We basically taught it to ourselves from the ground up.
“I don’t know if either of us are qualified to work at a car dealership, but over the last 14 years we’ve managed to grow this thing to sell about 3,000 cars a month out of this location in Southwest Houston,” Welch added.
From the get-go, Williams said, the company has been rooted in technology.
He also points out that TDA was started around the same time that other technologies we now consider everyday amenities were emerging: the availability of high-speed Internet in people’s homes, consumer-grade digital cameras and e-commerce platforms like eBay and Amazon.com that were picking up some momentum.
“So, people were actually starting to think about selling products and buying products on the Internet,” Williams said. “We just thought, ‘Cars are an interesting place to start, nobody’s doing cars. Maybe you can sell cars on the Internet.’
“And my mother was absolutely certain that no one would ever buy a car on the Internet,” he said. “But we thought at that time that there was no one else, really, in that space doing it consistently and doing it well, and we thought we could leverage our technology background and start using technology to put cars on the Internet for sale.”
So far, that plan appears to be paying off for Texas Direct Auto. But the combined entities have their sights set even higher: cars shipped, throughout the U.S., within 48 hours after the customer buys.
Bringing in a company like TDA, which has the software and reconditioning/fulfilment know-how, should help.
Millennium Capital and Recovery Corp. recently completed a move into a new state-of-the-art corporate headquarters that can accommodate the company’s growth and meet the current and future needs of its clients.
As part of the relocation to its new facility located at 95 Executive Parkway in Hudson, Ohio, Millennium also invested in upgraded technology and systems, including:
• More than 6.6 miles of new Cat6 certified computer cable form the infrastructure of the company’s network — that’s more than the length of 116 NFL football fields lined up end-to-end.
• Latest generation Cat6 computer cable provides superfast speed of up to 10 gigabits and reduces intra-cable interference for increased reliability and performance.
• State-of-the-art high-speed fiber optics power the company’s Internet and technology in the new facility for improved speed internally and with its clients’ system interfaces.
• More than 260 flat-panel monitors at the new headquarters are part of a company-wide upgrade in staff workstations that are designed to optimize efficiency, productivity, and comfort.
• A new, advanced capability VOIP (voice-over-internet-protocol) service has been installed to enhance to the company’s telecommunications.
• Two new 22,000-watt generators ensure the company will continue smooth operations 24/7 — even if a power outage happens to strike, Millennium’s clients will continue to experience optimum levels of activity and service.
“Millennium has a rich history of continuous self-improvement. Our new headquarters provides upgrades in technology that improve our speed and performance, and an updated environment for our staff. Just as importantly, the new facility provides additional space — double the square-footage in fact — to better serve our clients and meet their growing needs,” Millennium president Jayne Bronchetti said.
“Prior to moving into the new building, we completely gutted and renovated it,” Bronchetti went on to say. “Our goal was improved service to our growing client base, and to make the work environment more productive and enjoyable to our dedicated staff. I’m proud of how our team has accomplished that.”
The moves are the latest in a series of strategic actions by the company.
Recently, several key executives have been added, most recently a new chief business development officer. Additionally, a number of key people have been added enhancing the company’s core business processes of finance, technology, compliance, and client relations.
“The new corporate headquarters is another shining example of Millennium’s commitment to grow, improve, and serve employees and clients alike,” officials said.
If you’re anything like the sports fans near Auto Remarketing’s offices in the area of North Carolina known as “Tobacco Road,” the word “Raycom” immediately brings to mind ACC basketball.
But Raycom Media’s tentacles go well beyond the Raycom Sports property with whom sports fans are familiar, including one recent transaction — its purchase of digital ad platform PureCars in late October — that has a direct tie to the car business.
According to its website, Raycom Media either owns and/or offers services to 63 TV stations throughout the U.S., plus a few production-related companies and other work interests.
As for how PureCars fits into the fold, it will be run as a separate business unit within Raycom, meaning “the automotive dealer community that knows us as the cutting-edge leading provider in the space will continue to see that,” PureCars founder and chief executive Jeremy Anspach said in follow-up interview with Auto Remarketing this month.
Sometimes, he said, a purchased company can lose a good bit of things like “culture and speed of new product,” after an acquisition.
Don’t count on that with this deal.
“One thing great about this acquisition is we are operating as a separate business unit,” Anspach said in the interview. “With that being said, one of the most exciting things we see from it is the additional resources we have, both in human capital and development, as well.
“Where we’re focused is, when you look at television as a medium, it’s always stimulated shoppers to learn,” he continued. “And before the Internet, the way they learned was, they’d go to the auto mile and start talking to dealers and test-driving cars, and then making decisions.
“Well, as we all know, 97 percent of auto shoppers — according to the book Google wrote, '(Winning the) Zero Moment of Truth' — they don’t behave that way anymore,” Anspach said. “They’re still stimulated by TV, but then they do online learning, and what they learn online is what drives them in.”
Given that, PureCars is aiming to knock down the walls separating TV and digital, he said.
Anspach said that 87 percent of TV viewers have a second screen with them while they watch (think: scrolling through sports scores on your iPhone while you watch the football game on TV).
For PureCars, it’s about connecting the watcher to that second screen once they see the TV ad.
“When you see a commercial that stimulates you, what do you do? You probably, on that second screen, start learning,” Anspach said. “And based on what you learn, you’ll either go down the buyer funnel or you start looking at other things.
“Or you stop looking at them altogether. So what’s exciting is, imagine seeing an incentive and when you’re on that second screen, we can connect the dots,” he added. “And by doing so, create synergy on the TV buy and also dominate on the digital side.”
More on Inventory Targeting
Less than two months after the purchase was announced, PureCars unveiled an Inventory Targeting feature that lets dealers take their daily inventory data and use it to allocate digital advertising spend.
Through this solution, which is within PureCars’ SmartAdvertising platform, dealers can view and earmark ad dollars based on the following:
— How well the inventory is merchandised
— The performance of those vehicles at their store and elsewhere in their market
So where did PureCars spot a need for this product?
“Inventory Targeting is something we’re very excited about because we have yet to see a dealership with an infinite ad budget,” Anspach said. “So, all dealers big and small have one. They have a budget. And when you have a budget, you have to make decisions.
“And the decision you have to make is, how do you spend these dollars in a way that generates the highest probability of creating more sales,” he said.
Anspach later added: “Where we see a need is, dealerships have large amounts of inventory and the inventory is not created equally as it relates to the specific vehicle. There are some vehicles on the lot that are very hot. These are vehicles high in demand with low supply. There are other vehicles that are poorly merchandised — these may be ones without quality photos or being priced away above market. Then there are vehicles where their other advertising is driving significant buyers to the vehicle details page.”
Bearing that in mind, dealers have to make decisions as to where their “finite resources” are going to be spent; they have to determine “which vehicles need a boost.”
The point is that Inventory Targeting can help dealers determine which vehicles it makes the most sense spending their ad dollars.
Another important piece of the product that PureCars emphasized was the relationship with traditional advertising.
“You can allocate the ad spend based on their inventory and factor in merchandising, etc.,” Anspach said. “But the dealership, or their ad agency, can let us know what they’re doing in traditional, whether it’s TV, radio, billboard, etc. and we can leverage that traditional buy to create the most synergy with the digital buy.”
VehicleXchange LLC announced Monday that it has added automated GM Financial pre-qualification capabilities to its service lane lead solution.
The tool, launched by Pearl Technology Holdings in January and otherwise known as “VX,” now allows dealers to pre-qualify customers through GM Financial within seconds.
The VX system utilizes pre-screening technology from Experian to allow dealers to calculate a customer’s equity in their vehicle as well as allowing consumers to view all vehicles in a dealer’s inventory that they are pre-qualified to purchase.
Another aim of VX is to help customers find “improved” terms via manufacturer incentives and estimated payments, allowing customers to upgrade their vehicle and maintain the same or lower monthly payments.
Allowing for automatic communication to consumers on the dealer’s behalf, the VX system can turn manufacturer incentives into targeted marketing campaigns within 24 hours of release.
The solution has achieved 1,300 subscriptions from dealers since it launched at the beginning of the year. To learn more about VX, click here.
Whew, what a day.
Several announcements were made Thursday regarding new and ongoing issues related to three different automakers — and they were quite substantial.
These evolving matters include an update on Volkswagen’s diesel situation, the final report on General Motors’ ignition switch compensations to those affected, and a civil penalty brought against Fiat Chrysler Automobiles by NHTSA.
Starting in Wolfsburg, Germany, Volkswagen AG hosted a conference call early in the day (EST), outlining its continued efforts to realign the company and its brands for increased economic efficiency and transparency to get it back on track financially and regain confidence with its customer base.
While VW AG’s leadership discussed several topics encompassing its current internal and external investigations into both its European CO2-emissions issues as well as its multi-national NOx-emissions issues, one key item of discussion will likely be most important to dealers in the United States: There is still no concrete emedy in place to fix the North American diesel vehicles.
According to a statement by VW, the company said that “due to far stricter nitrogen oxide limits in the United States, it is a greater technical challenge to retrofit the vehicles such that all applicable emissions limits can be met with one and the same emissions strategy.”
While VW officials noted their plans to have the European variants of the TDI engines repaired have been approved by the appropriate authorities and will be handled in various fashions over the course of 2016, VW’s plan for a North American remedy is still awaiting approval from the U.S. Environmental Protection Agency and the California Air Resources Board.
What VW did do, however, is accept the blame for the diesel deceit. A statement from the company explains how it all played out:
The information that has been screened to date has largely explained the origin and development of the nitrogen oxide issue. It proves not to have been a one-time error, but rather a chain of errors that were allowed to happen. The starting point was a strategic decision to launch a large-scale promotion of diesel vehicles in the United States in 2005. Initially, it proved impossible to have the EA 189 engine meet by legal means the stricter nitrogen oxide requirements in the United States within the required timeframe and budget. This led to the incorporation of software that adjusted nitrogen oxide emission levels according to whether vehicles were on the road or being tested. Later, when an effective technical process was available to reduce NOx emissions, it was not employed to the full extent possible. On the contrary, the software in question allowed the exhaust gas treatment additive “AdBlue” to be injected in variable amounts such that the NOx values were particularly low when vehicles were in the test bay, but significantly higher when vehicles were on the road.
Hans Dieter Potsch, the chairman of the supervisory board of VW AG, said that, “No business transaction justifies overstepping legal and ethical bounds.”
“I here and now guarantee that we will pursue our thorough investigation to its conclusion,” Potsch said. “I vouch for this personally, as does the entire supervisory board of Volkswagen AG.”
Final report on GM ignition switch compensation released
Kenneth Feinberg, the attorney heading the compensation process for General Motors, released his final report on Thursday, revealing how many claims were submitted and approved in the ignition switch settlement.
The findings of the report conclude that 124 people were killed in relation to the faulty ignition switches in GM’s compact vehicles. Another 275 were approved to receive compensation for their injuries. The total compensation for payouts from the GM fund that Feinberg administered come out to a total of $594.5 million.
A total of 4,343 claims were submitted to the automaker – less than 10 percent were deemed eligible.
Auto Remarketing reached out to GM on Thursday for an official comment on the findings but has not received a response at the time of this writing.
To check out a full breakdown of the findings, click here.
NHTSA imposes $70 million penalty against FCA
In other news related to recent manufacturer challenges, the U.S. Department of Transportation’s National Highway Traffic Safety Administration issued FCA a $70 million civil penalty on Thursday, citing the company’s failure to report legally required safety data as the impetus.
The penalty befalls FCA following its September admission that it has failed, over the course of several years, to provide Early Warning Report data to NHTSA as required by the TREAD Act of 2000. The administration uses this data, among others, to identify and investigate potential defects that may require a safety recall.
According to NHTSA, FCA has commissioned a third-party audit to determine the full extent of the reporting failures.
“Accurate, early-warning reporting is a legal requirement, and it’s also part of a manufacturer’s obligation to protect the safety of the traveling public,” said U.S. Transportation Secretary Anthony Foxx. “We need FCA and other automakers to move toward a stronger, more proactive safety culture, and when they fall short, we will continue to exercise our enforcement authority to set them on the right path.”
FCA isn’t alone in this realm, however – the company is the fifth automotive manufacturer to be penalized by NHTSA in the last 14 months for failure to meet early warning reporting requirements. These previous penalties have been issued to Honda, Ferrari, Triumph, Forest River and Spartan Motors.
