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Vroom Room

Good Morning!

Its Good Friday, its the Vroom Room, we have espresso this morning, come in join the conversation.

Safe to say that Spring is here, the snow is gone, and Sunday is Easter, and the days are getting longer.

If you are of a certain age, you evolved at a time when personal freedom, a sense of independence, was gaining momentum. The idea that "Big Brother" is always watching was contrary to the sense of freedom of the time.

The advent of the Internet promoted this idealistic perspective that we could connect far and wide with a myriad of individuals and promote a sense of a wider community...agreed 20 years ago it was idealistic thinking. That idealism spawned fertile exchanges with some smart and interesting people.

This is back in the day when folks were investing serious money upgrading from a PC that could deal with spreadsheets to a PC that was compatible with the nascent Internet, e-mail, and dial up modems. Lets not forget the cumbersome 15 inch screens. 

At the same time the idea that "Big Brother" could be watching, lurking in the background was opaquely omnipresent. 

Back in the days of "give me a real phone number, not a cellular number, give me a real e-mail address, not a Hotmail address.

Today we are constantly connected with our smart devices, with our cars, with our work, we literally go around with tracking devices to further enable "Big Brother" to watch over us.

Interesting enough we see a "padlock" in the URL bar, and think its safe, secure, and in the past few days we discover that Heartbleed is an immense security problem. You also become aware that OpenSSL is an idealistic open software that was adopted by a myriad of entities seeking inexpensive security software.

Fascinating to see the extent of "entities" that preferred to acquire an inexpensive security system (reminds you of the car alarms bleeping in mall parking lots), and the number of "entities" that took advantage of the situation to perpetuate and strengthen the notion that "Big Brother" is watching.

Keep in mind that "Big Brother" is also watching you in vehicles.

In case you missed 50 Years of Mustang with Lee Iacocca, and Birth of the Mustang...what can you say, seems like sure does.

Gotta love this Road and Track article from 1963...Corvette vs Cobra.

Stunning photography and old cars from the Tour Auto Rallye 2014...take a few moments enjoy.





Koenigsegg One to generate 1,360 HP






Handmade in Los Angeles

Yes...its the Icon



Things of the Past

1941 Tatra T87...enjoy



Doing a Deal

Why is a Mercedes-Benz worth more at an Audi dealer than a Mercedes dealer?

In this auto business there is all the talk of social media, accompanied by a myriad of systems and software. Dealers are encouraged to have a presence here, there, and literally of over the place, and convert leads into a prospect, at least a showroom visit. 

What closes a deal is the "moment of truth" in the showroom.

Here is the "true story"

This Mercedes-Benz customer visits his local M-B dealer on a Saturday morning where the current vehicle is serviced. The tentative deal is to trade in the current M-B for a newer model. 

After the initial small talk, the promotion/incentive of the month is offered on the new vehicle, an individual appraises the used vehicle, and offers a low price. 

We all know that when a trade in is involved its either a smooth process, or a level of "intellectual friction" starts arising. On this morning the "friction" started arising, reinforced by some questionable arguments. The dealer mentions "if a transaction does not make business sense for the dealer they will not entertain it further". 

If you conclude that there is a strong level of arrogance in such a statement we agree with you. Perhaps their success clouds their showroom thinking, empathy, understanding, and desire to do a deal.

The dealer made it abundantly clear that they had absolutely no desire to do a deal that morning, on that new vehicle, with that particular trade in. 

Obvious that when the trade in went for service this same dealer was very motivated in the service work, and taking the money. 

We could keep on going, suffice it to say that the customer leaves with a bitter after taste.

The reality in 2014, if a customer leaves the showroom without doing a deal, and a bitter aftertaste of enduring "intellectual friction" it will be difficult to get this customer back in the showroom.

A few hours later at the Audi showroom, with no "intellectual friction" the Mercedes-Benz trade in is worth 20% more than at the M-B dealer, and the Audi incentives of the month have a higher value proposition than the M-B incentives.

Its a foregone conclusion where the deal was done.

We all know, in an age of social media, blowing a deal out of your showroom can take on a life of its own.

Why was the Benz worth more money at the Audi dealer?

The M-B dealer was "low balling" and insisting on low balling the trade. The Audi dealer paid a fair wholesale price for the trade. The monthly incentives on the Audi have more value than the incentives on the M-B.

The Audi dealer has an innate understanding that in 2014 an individual in the showroom deserves a genuine team effort (sales person/appraiser/business manager) to remove any and all intellectual friction, and close a deal.

Its only 1 customer, 1 deal, 1 trade in on a Saturday morning, the Mercedes dealer walked the customer driving a Mercedes, the Audi dealer acquired an Audi customer.