Are Dealers The Problem with EV Adoption?

Don Hall: 0:00

I'm reminded years ago of the United States senator said the following to me, your home is your castle. But your automobile is your freedom. Ladies and gentlemen, we're about dispensing freedom. Cars give us freedom.

‍Daniel Govaer: 0:16

Welcome back, everybody. Thanks for joining us episode number 11 of the wheelhouse and introducing our panel today. We're joined by Matthew Hagen, retailer principal at the prestige collection Auto Group, Don Hall, President and CEO of the Virginia Auto Dealers Association, believe that's again, the first time that we've had actual presidents on our show. So I'm very thankful for you joining us today. And of course, Michael Hayes NADA Academy chair. And joining us for the wheelhouse on episode number 11. We've got this panel. And then just to quickly remind everyone, as we are proud to be the only show on the show do with our own disclaimer that the opinions and comments made in the wheelhouse segment are solely those of the individuals expressing them and they do not necessarily represent the views of asoto its affiliates or the speaker's companies or their affiliates. All right, now we get that out of the way. Let's get to the fun part. And we're gonna go around the horn, 60 seconds for each. Since we've got such a great representation from from automotive franchise foundations, then I'd like to ask each one of you what's the future and the near future? What is the near future of automotive retail franchise ownership? And what's the biggest challenge to automotive franchises in the next year or so? And, Matt, let's start with you since you live that on your skin every day? Wow.

Matthew Haiken: 1:31

Well, first of all, I mean, it's it's very confusing. So dealerships are transacting at Crazy, crazy valuations. I don't know if you saw the one recently in South Florida to Coach Saban for over$700 million to Mercedes stores. So dealerships are still transacting at crazy prices. But at the same time, the OEMs are looking at agency models looking to cancel franchise agreements and contracts. And they're using E v as a tool to thin the herd and pick handpick the dealers that they want to invest. So it's really unknown. You know, challenges for any operator comes down to people and teams. And it always will, and it's never going to change. But right now, we're in a place where we don't know, we don't know where we'll make it. But we don't know what the future holds for us.

Daniel Govaer: 2:30

That's what I'm, that's what I'm bringing on the floor is that clarity, and thank you for that. But I'm but that's I'm glad to hear that somebody else sort of feels similarly. Okay, let's, Michael Hayes. From your perspective, as you see a lot of franchise owners and staff members and management coming through the academy. How do you see it?

Michael Hayes: 2:50

Yeah, well, exactly what Matt pretty much highlight a lot of things, you know, and as you mentioned early, so about two people just kind of what we focus on, as it is. But you know, these are all things that the automotive retailers have dealt with for 115 years, I think what's really changed is technology just speeds up how quickly we have to adapt. But I don't think anybody would, would doubt that. And so it's the speed of change. I think that happens and getting the right people to do it. So other than the regulations, which I assumed on is going to hit and everything like that the cost to get into it to stay into it is huge. I guess we need to still remember, though, that there's 280 million I think vehicles on the road, which about 270 billion of those are internal combustion engines are still gonna have a lot of them. So there still is a really, really good future for dealers, whichever way that we go. But we do have to make a lot of decisions. And we are seeing people think long and hard about what's the return on this half a million a million dollars for me to continue or to start selling EVs, which I don't have very many of them yet. And a lot of big decisions, I think that leads to a reduction in our total dealer principal owner base, more compelling.

Daniel Govaer: 3:52

Perfect. All right. Okay, done and, and your one minute is on the clock. Go ahead.

Don Hall: 3:58

I think it's an exciting time to be in the business right now. Because of consolidation, frankly, and all the various tools that are available to us to get better at giving the consumer a great buying experience. I'm reminded years ago, the United States senator said the following to me, your home is your castle. But your automobile is your freedom. Ladies and gentlemen, we're about dispensing freedom. Cars give us freedom. People still want to be free to go wherever they want to go on the weekends at Night Live and so forth. So what a great industry consolidation is our friend, it is the future we will not stop it, embrace it, along with technology and a great opportunity for people to excel within that future within that growth that's taking place. And yes, as Michael said regulations are important, Association's purpose in life is to make sure the dealers are protected, that there's a level playing field that consumers benefit that dealers benefit in their local communities, not just the manufacturers. And we'll talk later on I'm sure about the agency model what's going on in the Europe European model as well and how that pertains Is to dealers in the United States.

Daniel Govaer: 5:02

Awesome. Thank you. All right, so let's, let's jump into just a couple of headlines is just going to relate to kind of our main topic today. So the first thing is we've got Mercedes Benz chooses the coolest collaboration I could ever think of buches as being their charging network partner, so they're going to install Mercedes Benz charging stations at each buches that they have particularly in if you're not from the southeast, or you haven't visited and you've never been to one of these just absolute Smithsonian's of convenience stores. But the interesting thing is is like they're, they're in a market that's not a big adopter of EVs. Is this is this genius? Is this something? Is this how manufacturers are going to be supporting their own charging networks? Now? Is this a gimmick? What other things do we think we're going to be seeing it because you wouldn't really think Mercedes Benz and buches would necessarily have this partnership. But Matt, I know you've got some you've got some fleet of electrics and you don't have a buches up by you?

Matthew Haiken: 6:02

I don't, I don't. I'm the only you know, besides UdG I'm the only dealer today. It's very intimidating. But those intros were amazing. Amazing. So, you know, you know, uh, who knows, I mean, who knows how, how this partnership came about? You're gonna see so much of this. And again, you know, when as more people get into the Eevee, you know, it gets started driving an Eevee they really need to wrap their head around. How do I charge How fast do I charge the fact that I don't fill it up? I only go 80% I guess it's an awareness play, you know, but who knows right now we're sitting on so many EVs. You know, all we're thinking about is getting them off our lats. So

Daniel Govaer: 6:50

I mean, it's just this is how we raise the public awareness for how to charge EVs is by joining with big commercial ventures, Michael, I mean, you've got a big Evie background. Is this something that you saw coming?

Michael Hayes: 7:00

Oh, absolutely. I'm not a fanboy of Elon Musk by any stretch. But one thing he really did well was address this before he started selling a whole lot of cars. You know, he had all kinds of charging stations and easy ways to overcome a lot of people's trepidation about charging before they sold big numbers of cars. And realistically, that's probably led to their success. They were planning on that early on. And I think, you know, as bad a rollout as Ford had, I think that was kind of fairly his deal was if I can have 3004, dealers having five or six plugs a piece and we can help overcome some of these trepidations that I'm sure a lot of people feel.

Daniel Govaer: 7:33

And then in town, I wanted to ask you were there's Mercedes Benz, for example, has the dealer network, why do we need a wiser convenience store network that's going to make this more beneficial to the manufacturer?

Don Hall: 7:43

Oh, well remember right now, first of all, this whole Evie subject is about politics, politics is driving this, nothing else is driving it, but that the manufacturer is under tremendous pressure to be in compliance in the card states, as well as the federal rules as well. Charging stations are created that people have range anxiety, as we all know.

Matthew Haiken: 8:03

I mean, can it make sense to partner with buches versus partner with your local car dealership that's probably already stressed out on space with us car exposure driving as much car to our service departments?

Unknown: 8:18

I mean, well, it's not one or the other. I'm

Matthew Haiken: 8:20

saying it's both right. No, of course. But I mean, it makes sense. If you're going to have a coffee have a slice of pizza, I don't know, buches. I'm in the northeast, what what's their claim to fame as far as

Don Hall: 8:29

Matthew, If I, if I can run quick. Most dealers have fought against the idea of having public charging stations at their dealership, you know, you can argue it either way. And so again, there's this need to take away range anxiety, and the more you've got, the better. And frankly, part of it is because the people that have drive Tesla's there's a lot, I'm in Virginia, now they want to go someplace and get that cup of coffee and relax. And buches is sort of this unique experience when you do it hanging out at a dealership, unfortunately, for many is not their desire. At the same time, we're not prepared to have loads of people just sort of hanging around a dealership now. Possibly, you know, we could also turn those into sales. And that will be part of my argument if we're really smart about as well.

Daniel Govaer: 9:12

Alright, let's, let's jump in to our next one here best specifically, we've seen a few articles all the time, but definitely concentration in the past two weeks about the depreciation of Eevee and luxury vehicles. And the double whammy if it happens to be a luxury Evie vehicles seems to even fare even worse than than either of them on their own. You know, so we're, we've got a Forbes article here that lists out exactly how much money you know, at least that you would lose if you were to purchase into any of these vehicles. We've got some separate articles specifically we know with Tesla, you know, upwards of $40,000 in one year of ownership based off of some different you know what they can do with their pricing. Does that is the argument for the financial investment for the future does this not also have to make sense in the present day for this vehicle? Pelling argument. Why are these vehicles facing bigger depreciation than their counterparts?

Matthew Haiken: 10:06

Oh, I've said it several times, right? So new EVs are built for leasing. If you're going to write a check for a brand new Evie, you need your head examined, especially when a certified Evie is going for 50% off window sticker. And really, I think a lot of that has to do with the changes that came from IRA, you know, leasing now is an automatic 7500, I would say 80 to 90% of the manufacturers are passing that on to consumers, there's no income caps for it. And it's a better hedge. So in these in these lease markets, you know, you need to lease an Eevee in these markets that are not used to leasing I think they're going to have to get back to the basics and educate the consumers. Why EVs are built.

Daniel Govaer: 10:52

Yeah, just leasing it doesn't mean there's not depreciation, it just mean someone else's eating and depreciation and you're still paying for it somehow.

Matthew Haiken: 10:58

You'd be crazy, though to take to write a check for one of these cars with with everything changed.

Daniel Govaer: 11:04

I'm not saying write a check, Michael, glad you started to say something.

Michael Hayes: 11:06

Yeah, well, I was just gonna say that, you know, anytime I see the number of staff when they say a $40,000 difference, first of all, that's a statistician taking a very small number of vehicles. When you look at the real volume of Tesla and Tesla's driving this whole market, I think we agree. So when you look at the volume vehicles, they sell Tesla threes, and Tesla wise those have not depreciated. $40,000 worth. In fact, their value isn't isn't too bad to people. I've heard complaining about a dealers who went out and bought some at the sale, paid almost full nude sticker for it. And then when they dropped the price of their ones like seven or$8,000, it took a hit. Well, the same thing would have happened and did happen to people who bought no Silverados. Do you Silverados for for you know what the MSRP and then didn't sell them right. Oh,

Daniel Govaer: 11:45

but the MSRP is themselves change though, right? I'm talking I was talking about a model talking about a Model X dual motor.

Michael Hayes: 11:50

Yeah, Bob, well Model X. So how many of those they sell 2000 A year versus 150 to 200,000, threes and 200,000 wise. So let's look at the real numbers. The extra share was 135 40,000 for sure. really limited number though, so I'm really much more concerned about the 4050 $60,000 car than the person that can afford $140,000 car. I

Matthew Haiken: 12:12

honestly I would take Tesla completely off the table and I look at what's actually going through the sale at Mannheim when it comes to luxuries like BMWs and Mercedes and Volvo's and Hyundai's and Kias and pollsters, I mean, those are the cars that are running through the sale now that nobody is touching at 50% MSRP. And, you know, I don't know why. But it's that's my question why?

Daniel Govaer: 12:38

Why did they face why why? I mean, this is a tangible thing, right? Like, why do people, you know, I think when I, when I was going to the auction, they would call it the cooler, right? Like the car came through, and all of a sudden, the link got really cool. Everyone had somewhere to go, everyone had something to do, I'd go check out the guy that was, you know, in the cafeteria, or make a phone call or see a man about a dog. But I wasn't buying that car. Why is this? Why is this commonplace? More?

Don Hall: 13:01

A big part of it, too, is remember that consumers are beating down the dealerships to get their Eevee. And I'm concerned about these residuals and what what are they going to look like based on what we're seeing right now as well. And so it's understandable, but I also would say this, it's new. And as we get into the, you know, the next subject time for The Washington Post in its article, I mean, it's new, but there's no question as an industry, we got to make sure we got a positive spin on these things, because they're not going to go away. And if there's going to be a bailout someday, and I predict there will be of OEMs, who have committed a lot for EVs, car dealers will not be bailed out. Unfortunately, it'll be the OEMs bailed out. So we've got to be careful this process and how we conduct ourselves and how we feel about EVs to begin with. The reality is people will grow to accept them, I do drive an Eevee VW ID for and also I have the privilege driving something much nicer, which is an ice vehicle. And I will tell you for around town commuting. It's a wonderful vehicle, my wife likes it. It's a wonderful vehicle for around town driving, I wouldn't want to go to New York state where she's from in an Eevee right now because of range anxiety. But there are opportunities. I think a lot of this will be self curing in time, little ugly right now. But it will be self caring and time. I'm gonna make

Matthew Haiken: 14:17

one more point, right. So on the new car side of things, these cars are the most incentivized cars in the marketplace. You know, the manufacturers got the residuals, the rates, the rebates, the IRA, all the incentives, the true field for demand is the pre owned side. So there is demand, but at what value and that really tells a story when these cars really sell at a certain price point and consumers are buying them that shows you that where they are from a from a supply and demand right

Daniel Govaer: 14:51

and consumers are I think what you know, like the duopoly version of what you're saying is like whether it's a true market or an artificial market and pre owned market Without incentives is more of is more of a free market. My point exactly from that, though, is like I don't really want to think that the reason that I don't have a lot of very aggressive leasing programs on ice vehicles, is because the manufacturer is so stretched on what it has to do for Evie vehicles. And it cannot do both at the same time, then that I think is a little bit bothersome. But we'll come back to that and sort of the main and the main thing, when we

Matthew Haiken: 15:23

could really double click on that, because then you know, they're gonna come after our margins. And say, due to the investment we need to make in our E the future, dealers are making too much, we need to attack their margins, we need you to pay for this, we need to pay for this because we need to compete in the Eevee future. And then they're going to constantly benchmark Well, Tesla's margin is this and our margin assists. So the street doesn't value our price per share until we have this margin. And they're going to come after us to make up for it.

Don Hall: 15:55

Daniel, one other quick point that can't be lost on people. And that is, remember where the pressure is coming from? No, it's not demand in the marketplace for these vehicles. The pressures coming from bureaucrats out of California are about I think 16 or 17 states now that are carb states, Virginia being one of them. New York, as Matthew knows, being one of them in many other states, including California, obviously, Minnesota and some other states. And so that pressure, if they don't, they're being heavily penalized, and they don't have the ability to buy their credits or sell the credits like they used to. So now what's happened is they have to sell these cars. That is the commitment and they're doing so because of pressure from California and the federal government. This is not because we are demanding it. And so again, one more time, elections have consequences, no matter how nice or how great we think they are. The reality is that's why we're doing what we're doing today. Not because we demand it.

Matthew Haiken: 16:51

I had this crazy thought this morning. I was waiting

Daniel Govaer: 16:54

wait Hang on. You're gonna have your crazy thought in another minute. Hang on. I'm glad I'm glad all your crazy thoughts are back. Hang on. Okay, we got to meet this is the main event is coming up. All right. I just want to point out that the state of New York was trying really hard. We just talked about New York being a state that's trying to be progressive and they were trying really hard to make as many vehicles as they could Evie from even a state and a municipal status. So they have what do they have? They have a lot of snow plows. And is it alright snow plows could be EVs that makes sense. Maybe they really has a lot of low end torque and I think that would make a great snowplow maybe they saw the electric snowplows that you know, there were for sale it at like Home Depot and Lowe's. And then two years into the program, they said, No, nevermind, we actually were going to do we liked the idea of EVs, we're going to do something real similar to diesel. And they're just going to be all diesel. And we're not even trying to pick up an Eevee snowplow anymore. And then so is this. Now do we have municipal fleets that are also is this the first is a heartbreaker of municipal fleets turning away from having an Eevee solution to their fleets and what they need? So our cities turning away from this also? And how does that make you feel as a consumer? Yeah,

Michael Hayes: 18:03

I don't think that turning away from it necessarily. I think some some things are just dumb to think about, you can do it with an Eevee right now anyways, because of the weight and that was a thing, you know, you know, these are garbage trucks if they're gonna put plows on in the winter, okay, so that's what the city that's what they're doing. So EVs make perfect sense for all those municipal items where I know I make a route on a constant basis, I know exactly how big a battery I have to have know, if I'm going to add 12 hours of plowing to my normal six or seven or eight hour garbage route. All bets are off now. And I think that's the issue. You know, EVS make great sense for that low speeds stop and go stuff. That's exactly what they were designed for that internal combustion engines, including vehicles are not necessarily designed for. But the problem is, is that we have forced it in certain areas don don kind of mentioned is that don't necessarily make a lot of financial sense, or all kinds of people all kinds of uses for EVs that make perfect sense. Fleet side, municipal side and everything else. We just keep focusing on ones that don't make sense. I mean, plows on one right up the front when they've got 1000 Other areas I can do is just don't but you know, there's a whole lot of ways you can do better. There are so many opportunities and we haven't even attacked it

Daniel Govaer: 19:10

my way to go and tell him it was done then.

Michael Hayes: 19:12

Yeah, you're right. I want to told him it was a dumb thing to ask me.

Matthew Haiken: 19:15

I think any any local municipality would say I don't think this is going to work as they're waiting for the snow. Going heavy bouts of snow while they're charging

Daniel Govaer: 19:24

us an electric snowblower Matt.

Matthew Haiken: 19:27

No, I don't I don't think that would work. I think we'd be we'd be parallel. As we realize, you know, I met with our town officials just on installing charges and they're still scratching their heads where they're going to install them how they're going to pay for them.

Daniel Govaer: 19:42

I'm first I just want to say that I'm glad that we have that we have cranky Hakan back, you've come back to us. A little do a little to calm and a few previous episodes. So this is what we needed back. Alright, let's get into the rig now. So we have what I like. I just think we got to call them near narratives are like currents that every that that different forces wants to tell the story of EVs differently. So it's started because looking at news articles related to EVs use, and just what we've talked about so far today, we have just a boatload of issues that we're working out. And then the Washington Post publishes an article saying that the road but they're not the only ones saying that the roadblock to evey adoption are the actual auto dealers themselves. Crazy, that is

Matthew Haiken: 20:27

reverse entrepreneurs that will sell anything. That's what we are recreating. We love this sell things. And that's why we're successful. And we've made it through wars, and market crashes and everything. You know, we're just we are right on the front lines, we live a 30 day cycle, we know what customers want. And we are advocates for our customers. So that is just totally false. I think maybe the auto manufacturer lobbies pushing that because they want to get rid of us. And that's a whole that's a that's a fact.

Don Hall: 21:04

So Matthew, let me say I appreciate what you just said, as a dealer. But you're saying that from a much higher level, let's go down into the trenches to those who work on them and those who sell them. And the reality is what's being said out there is oh no, you don't want to go Eevee you want to go with what I've gotten a lot here, an Ice Vehicle. That's what you want to do. Look, I've got that article right here. It is what scares the hell out of me representing car dealers is the OEMs want to make the argument federally, we don't need franchise laws that prevent us from selling direct, we want to sell direct, because look at what the salespeople say when they do blind studies. And they do mystery shoppers, and so forth. So what's happened is in the old days, and I go back this business more than 40 years, we had demos today, you don't have people who even drive these cars except on a demo drive. And so they don't believe in the product. They don't understand the product. And people aren't clamoring for the product. No matter what we're involved in right now. We have to have a game face of saying the following EVs are part of our world. And as Matthew said, and Amen, brother, you're right. We'll sell anything. Anything we've got. And so mister manufacturer, Mr. President, Mr. Senator, Mr. congressperson, we're all about selling whatever we have on our lot. Now, you've got to make Evie such when we get rid of range anxiety and so forth. But as an industry, if we don't play this, right, the OEMs are going to use this against us. And we've got to make sure that people in the trenches have got a positive spin and a positive attitude about the future of EVs and what they are. Because the reality is, them's the cards we've been dealt, and we got to deal with those cards.

Michael Hayes: 22:45

Yeah. And I think we see a lot of different things when they have different dealers from around North America. And a lot of it depends on where they live and what they do. I mean, in the northeast, Matthew, I think and around New York, where you have some levels of Evie penetration in particular areas here in DC, we've got a lot of areas of the penetration. Absolutely. We look at California with what 25% Evie penetration last quarter across the state, much less than Orange County. You know, there are dealerships that have absolutely all in bought in on this. But there's a lot of dealers that you know, haven't really sold an Eevee yet and hasn't really done it yet. So they aren't really getting people involved in it. Not all of them. But there's always a few that kind of are held back. But that's not news that shouldn't be well, I guess it is news in those areas. But I don't think that happens in areas where AV makes sense. And again, back to, you know, areas where it makes sense. It's fine dealer in Wyoming, I'm not so sure too many EVs are going to work out there right now until we do have better, you know, charging public charging everything else. However, it makes perfect sense where I live, it makes perfect sense where Don lives for at least one of the two or three household vehicles that the average household in America has. And if we focus along those those areas, but I totally agree with that. It wouldn't surprise me certain companies are trying to get dealers out of the market that are promoting this a little bit more than they probably should. But we as dealers need to step up and tell them man, we're here to sell these things. We're here to promote them and everything else.

Daniel Govaer: 24:09

The attitude survey, I mean, how big of an issue was that on, on attitudes or on the on the last two attitudes surveys? Now,

Michael Hayes: 24:15

let's say well, you know, that's a great point. And from a dealership point of view that the the companies that aren't doing as well with them are certainly down the thing of Ford is certainly not that really hired because of the way they've done it. Mercedes, isn't that rated highly because of the way they've done it? So you're hitting a couple of those areas there that that certainly have had more struggles.

Matthew Haiken: 24:37

But it's not it's not about the product or the Evie. It's the fact that they're using it as a crutch to thin the herd of the network. I think there's truth to that. And we need to combat and like any article thinks that dealers are the roadblock. I mean, we need to go on the total fence. No, we aren't because

Daniel Govaer: 24:57

Nathan didn't tell you this yet. But the next episode of Have people more than cars? Actually, we're taking you on a camera crew down to the Washington Post Offices. But gentlemen, I mean, I've since I've got the experts here, like, let me ask you gentlemen, though what explain to some of us, right that have been sort of living along in the automotive retail world, and all of a sudden there's this big pressure, right? And then we have to sell these EVs. And I think if I'm not mistaken, as in most things that the government is involved in, was there not some type of calculation, that maybe move the decimal point and all of a sudden something became like miles per gallon, ie miles per gallon weren't? Is that what they were being calculated at before? And so now we need to sell more EVs. Let me

Don Hall: 25:39

explain again, one more time is elections have consequences right now, the environmentalists are in control of much whether you agree or disagree, and EVS were a product of that coming out of California. That's where it all started. And as a result, after 36 years of being a registered lobbyist, and working with politicians, they're great people. But at the end of the day, they're going to support where they think they're going to get their support. And the fact is, we've got this electric train driving us down the avenue to sell EVs. They don't believe us, as an industry, car dealers, those of us who love this business day in and day out, as being credible. So we've got Matthew, we've got to work on that story, not by people like yourself, but by the people in the trenches. And at the end of the day, if we've done all those things, and these articles don't exist, like the Washington Post said, then we can make your own, it's because of the following reasons, not because we refuse to sell them. It's because we don't have infrastructure in place, because they are too expensive, because the batteries are gonna cost us a ton of money after four or five years of driving them. And oh, by the way, we're not even sure how to evaluate the value of those cars four or five years from now. And those things have got to be addressed. The current politicians ignore that in order to appease a particular sector in the marketplace.

Michael Hayes: 26:56

So to be fair, there are a lot of companies that are working on a lot of things you're talking about, and we're certainly not there yet. No, we are. But there are a lot of ways that we're doing this. And I think the I think the fact that they're going to have common standards for the OBD two or whatever you want to call it. For EVs to be able to have a common way to gauge battery health, which is everything as you say, I will say this, I am quite frankly surprised. It went from being in the 17 years ago, how good the batteries are on some of the better vehicles, they lasting far longer than we ever expected and 2006 789 and 10, I mean really far longer. And it isn't about the mileage, it's about how well they're charged now while they're cared for. And the other thing I want to throw about EVs is this EVs aren't going away, maybe the way that we do them and how the speed is good EVs make perfect sense. I think everybody likes driving an electric vehicle. I mean, the power is great, whether it's going to be always with the battery, or whether it's going to be a combination of a fuel cell someday, or whether it's going to be resistors, or capacitors, there's a multitude of ways to fuel it. We just have to get there. But I think EVs is where everything's going to end up for a couple of reasons. We can make electricity 15 different ways. And we can only make fossil fuels one way. And that's the end result from 1015 20 years from now, how quickly we get there is everything but that's what's driving us.

Daniel Govaer: 28:11

What's what's give me one thing I'm I'm a sales, I'm a young sales manager to dealership, and I'm hearing all you know, the pros and cons on EVs and a lot of cons, but I have them here. And that's meant in a lot of cases, that's what I have to sell, right? Give me Give me Give me one simple thing I can do at the dealership to start turning myself towards that better and my sales team towards that better. You

Matthew Haiken: 28:30

need to get people to I think drive the car that's driving. You cannot sell an Eevee virtually or over the phone, if someone has never driven a car and experienced the instant torque, the one pedal driving and the quietness of the vehicle. And if they're all about software, there's nothing else to consider. On one drive.

Don Hall: 28:51

There's just salespeople excited about the cars, not a five minute demo drive or 10 minute with a customer. But get them excited about it, put some in loaner service, let them drive them, let them get the fever because again, we're not going to have a choice at some point. It's what you've got in front of you. And not a lot, a lot a lot of ice vehicles available to you as it is.

Michael Hayes: 29:11

And I think fever is driving it. Matthew, what help that really hasn't changed much in the last 100 years as well as the fever driving the car. I mean, isn't that?

Daniel Govaer: 29:20

No, I mean, I I support the idea of putting them into into loaner service. I think it varies by manufacturer because the the support that you get as the market changes, as we know the daily rate that you get on your loaner vehicles has very little to do with what the market is just in general. But as we've covered before, and I'm not making any financial suggestions to anybody, but just as we've covered before, that these vehicles tend to depreciate faster than other counterparts when you put them into loaner if you already don't have a sufficient daily rate. Understand, as Don said that not only elections have consequences, but But putting cars into loaner cars service also has consequences and you may look at that with caution. I mean for what it's worth. Yeah, they do. Need to drive them but also understand that that's an additional investment. I just wanted, I didn't want that to be recognized as an additional investment on the dealer part to put these into loaner car service for the expenses, they're going to be operating off of them. But so let me just and debate was so good. I didn't want to slow anybody down and announced the points. So I have them written here. And I'm just gonna just finish adding them up here. And so we've got a matt with 87 points today, just shy of just shy of 100. But a big uptick from from some prior performances. Thank you so much. And Michael Hayes 105. Are you pressing first showing? Thanks very much, Brian, it was almost such a close tie. Don Hall. 114 points on today's episode. Thank you so much for for joining us. So you get to then answer a few rapid fire questions. We're going to load up the clock with 20 seconds. All right. So if we got 20 seconds on the clock, and we can get started, what are you most excited for at the 2024? NADA show?

Don Hall: 30:57

To see the people there and see them get enthusiastic about what's going on the industry and all the opportunities for all of us?

Daniel Govaer: 31:03

Are you listening to Christmas music yet?

Don Hall: 31:05

Not yet? And won't?

Daniel Govaer: 31:07

What do you think is a course that NADA Academy should have that doesn't have yet?

Don Hall: 31:12

Probably how to feel more empathy for people and understand where people are coming from in terms of how they feel about buying a car. We get jaded sometimes because of our experiences.

Daniel Govaer: 31:25

That wasn't great as far as the rapid fire. But we got that was a great answer there. And Michael, you're clapping Is that something that we can just say

Michael Hayes: 31:31

we actually have, we have an Eevee course we'll be introducing right away. It's been we did it with his Center for Sustainable Energy. And I think it'd be pretty pleased. It's gonna be an online thing for salespeople and stuff to kind of get them excited and talk about it. So

Daniel Govaer: 31:42

are you going to have Matt on there? Can he be a guest speaker?

Michael Hayes: 31:46

Matt and I will have Matt help promote it. Matt's gonna be the first one to buy. Can

Matthew Haiken: 31:50

you guys know I'm a pulsar dealer, right, I sell he's all day long.

Michael Hayes: 31:56

I rented a pole star two weeks ago, when I was always rent an Eevee. When I go out and stuff like that. I actually had to post our last last year for three free weeks and drove it I think it's a hell of a car.

Daniel Govaer: 32:08

Matt, did you have any crazy idea burning desires that you didn't get to know,

Matthew Haiken: 32:13

I had this crazy thought this morning. I'm waiting for my car. And there's like six plug in hybrids, there's a Jeep I'm driving to plug in hybrid Volvo. There's a plug in hybrid BMW, and I'm thinking to myself, what percentage of these plug in hybrids have never been plugged in? And I'm like, that's true. It's like 80 than 90% of these people in New York City that have plug in hybrids that never got plugged in. And then I was like, Can they track that? It might be a privacy issue, but maybe they should be tracking? And how much investment in money? Did we put it through these plug in hybrids for them never to get plugged in? And yeah, that was my thought.

Daniel Govaer: 32:50

Was that your happy thought for the day we need to work on

Matthew Haiken: 32:53

what percentage of plug in hybrids never get plugged in.

Daniel Govaer: 32:56

Guys, thank you so much for joining us for another episode of the wheelhouse and we'll see everybody again in another two weeks, all new panel and all new topics of things that matter to us every day and automotive retail. Thanks so much for our guests for joining us today. Look forward to seeing everybody in another couple of weeks. Thanks, guys.