The Lows and Highs of Used, EV Escalade Is Coming, Customer AI Reviews

Paul Daly: 0:27Oh, you know what? I wanted to make sure the right music. There it is. How do you get the right music through your pad because that kind of sets the tone for the whole thing. Hey, today, we are excited to be with you. We're talking about this new Cadillac, Evie, use car prices again. I mean, do we ever stop talking about used car prices?

‍Kyle Mountsier: 0:46

I never stopped talking. I'm

Paul Daly: 0:47

also going to talk about a really I think it's a cool deployment of AI. consumer reviews.

Kyle Mountsier: 0:54

I think it's great.

Paul Daly: 0:56

I wonder I wonder what everyone's gonna think about it. I mean, at first I was like, super skeptical about it. The first time I read it, and then or when I started reading it. And then I like, hey, you know what, actually send an email. I think sec. Do you want it to our friend Jamie older Shaw at DealerRater? Because I'm wondering what he thinks about it. Yeah, he's got it. Got it. Got it, I would say a qualified perspective on consumers use. I'm

Kyle Mountsier: 1:20

gonna hit Matt Murray wide wet right

Paul Daly: 1:22

after that, too. Yeah, definitely gonna ask everybody like,

Kyle Mountsier: 1:24

what do you think you gotta do this?

Paul Daly: 1:26

Gotta tap, tap the brain trust base. Exactly. The brain trust. Oh, man. So when people get out, get after it. So

Kyle Mountsier: 1:33

here's the thing. If, okay, we literally are talking about a soda con every day, because this is the this is our heart, we really believe that it is the place that the conversations, the connections, the learning, the energy, the vibe, everything that allows you to be more in your stores, in your companies, all of that, like we put our heart and soul into the content, the engagement, the energy, the feel the vibe, we put everything into it, because we know it's the place that can literally transform your organization. And one of the people that absolutely line up and believe that with us is the team that effective. They were one of the first ones to throw down and say, Yes, we're in again. And we want to make sure that we're a part of not just like overall sponsorship, but content. And so they're going to be hosting again. So do concessions with effective, which is our podcast booth, we've moved the podcast booth, if you were there last year, it was off to the side, in a side room and kind of sectioned off, it's gonna be right in the middle of the expo score, right? Seating around at the recharge lounge with snacks and all that right out in front of it as well. And so it's going to be a really engaging place. I think we're hosting over 22 conversations at that booth, short form conversations with people that will be at the event. So you are not going to want to miss the podcast booth. partnered with by effective and thanks, thanks so much for coming down.

Paul Daly: 3:06

That's one of the things we love about a sort of kind of we're always like bringing conversations even if it's not in a session. There's stuff happening people free to listen to converse with talk because the perspective shift is really why you've made progress in your business or life. Right? Think about just about every area. Somebody's saying something or you're seeing something that changes your perspective, just a little bit is usually the first thing that happens before you make a positive change in your business or your life. So funny thing about that. So back to Kyle statement. That's why we're talking about a soda con every day, because we have a whole team working feverishly to make that a reality for you join us September 26 27th Go to a soda con.com to see the growing list of speakers I think we added like 70 to 100 rooftops just yesterday. Just yesterday. All right, let's talk about adding things. Consumers are realizing something dealers have actually known for a while and that's finding a used car under 20 bucks $20,000 is no easy feat. This Jalopnik article was shared with us by our good friend Daniel go there who by the way, we have a new show with called the wheelhouse A recent study highlights the dramatic changes in the used car market. With budget from the options dwindling. Check this out in 2019. So if you're thinking you're like a consumers mind, am I crazy? Or is this just seemed really expensive now? No, you're not crazy in 2019 Remember then, right before the pandemic, nearly 50% of the market that means 50% of all the used cars on the market comprised of sub$20,000 vehicles by 2023. It is only 13% So basically it was like on real five, five out of 10 We're under 20,000 Now it's like one out of 10 or Yeah, it's like what

Kyle Mountsier: 4:48

what what kind of payment are you looking for? 350 payment perfect. We have 50% of our used cars that cannot accomplish that nowadays. 13 per see that line

Paul Daly: 4:58

in the back. See that? Live in the back. Yeah, the one with the tire fallen off. Yeah, that's your that's your $15,000 line. A study from icy cars revealed the popular use car models like cameras and civics are now up to $8,000 more expensive in 2019. But for me the percentages tell the story. So a Corolla are the highest on the list in 2019. A ram 1500 average used Ram was 27,003 24 and 2023. That's up 56% to 42,008 81. A Corolla jumped almost 50% You could get lots of Corollas for 16. Five back in the day now you're looking at$24,000 and those little Honda Civics, they're also up 46%. from, say, from 16 I'm sorry, the Crowell was 14,000 to 21 the Civic jumps 16,000 to 24.

Kyle Mountsier: 5:51

Can you believe that? He is three three civic models were brand new listed under 24 grand just three years ago. Now the average used is 24.

Paul Daly: 6:03

That's all mine, Nicholas? Good. Yes. So on the on the wheelhouse podcast that we're talking about. It's so much fun. Daniel go there. GM of Mercedes Benz of Easton. He hosts the show much like you'd see. I don't know It's wild. And he brings up this topic. You have to go check it out, because you're gonna watch it and we're like, What the heck is this format? It's amazing, by the way, and we talked about the affordability of the cars in a little bit more detail. So you know, George Shimon, who some of you may know CEO of online auction company ACV having to say on their earnings call yesterday that industry trends are pointing towards an ongoing recovery in the market. Obviously a lot of auction data he said and he thinks that we'll start to see next year be the year where normalization happens and by 2026 will be normal boy, does that seem really really

Kyle Mountsier: 6:51

far away. Like if I had if I had a quarter for every time someone predicted normal in the last two years, I'd be a rich freaking man. It's unbelievable. I look. I have no clue when normalcy is going to happen again, but I can tell you it's not going to be this fall. Everything is pointing to between the potential UAW strikes to strike strangulated markets EVs still being large percent of production to us car availability. Nothing is changing about this market. I can I can pretty much dang guarantee that let's go

Paul Daly: 7:29

let's speak anything's changed. All right. This is like the opposite end of $20,000 us cars reiterating their commitment to heading towards an all electric future Cadillac revealed the 2025 Escalade, IQ and launch event yesterday, this revamped version of the iconic SUV is priced about get this $130,000 Starting price 450 miles so much money 450 mile range and they're trying to you know, like really combine this Escalade brand with some brand new cutting edge tech GM President Mark Reuss said in in in the event Escalade has defined what a full size luxury SUV is supposed to be from the get go it was the cream of the crop. It's what everybody wanted, almost immediately became a status symbol. So true isn't a lot of hip hop videos. The Escalade IQ is riding on a wave of all that history, all the cache and all the greatness a lot of big words here and only now it's fully electrified. So this thing is four inches wider than the current Escalade. Like is that going to fit my garage? Yeah, for wider that's a lot and then you you already can't put a foot longer than the standard escalates. Okay, yeah, yeah, the extended one is probably still longer. So 750 horsepower, zero to 60 in five seconds and a 55 inch curved display that they took from the Cadillac Stila that thing is

Kyle Mountsier: 8:57

gorgeous, but it is so cool. Look, I'm telling you that thing is so I looked around at all the photos that they had of it and automotive news was at the at the opening and they had a little Instagram video of it. I caught that yesterday when it was unreal. It is unreal car and the fact that they're going to still tow 8000 pounds with a 450 mile range on that thing. Well, maybe not with towing eight. But 450 mile range on that big ol honkin thing. It is impressive.

Paul Daly: 9:27

I mean, it's probably Labtech from the Hummer. I bet it's ungodly heavy. But they didn't they did reiterate the fact like hey, like Make no mistake, Cadillacs going all electric. And I mean, obviously this is a big part of doing that. And you know, they did confirm there's not gonna be any funny business. You're going to sell these Escalades just like dealers sell the ice vehicles are going to be sitting side by side on the lot, which is good news for dealers. I

Kyle Mountsier: 9:50

think here's the thing that I know this for sure, because I know a few people that are like, I'm an Escalade buyer. Those buyers want the in store experience They actually want to go customize and make sure that they've got their things and then they accessorize it as that thing's coming off the truck like they want that in store experience. So kudos kudos to Cadillac for for keeping that as a reality with the with the electric vehicle

Paul Daly: 10:15

for sure. Andrew Boyer in the comments on LinkedIn says factory 24 inch wheels to that is the truth that is a big wheel and a very expensive tire.

Kyle Mountsier: 10:26

Absolutely. Man. tire is not a great transition,

Paul Daly: 10:31

a very expensive tire. It's not it's not speaking of trying to buy expensive things.

Kyle Mountsier: 10:41

Man, I hadn't seen this name in a hot minute. It was like since I was 23. And building my computer custom it Yeah, exactly. Miles knows what it is. Oh, exactly. Look, if you're between the ages of 16 and 23. And you do any level of gaming your

Paul Daly: 10:55

if you have a phone that gives green bubbles and text messages, you know who this company is? Oh, online

Kyle Mountsier: 11:01

technology retailer New Egg is working to transform reviews. And in econ with its latest AI driven feature. The technique retailer now employs generative AI chat GPT to distill customer reviews into concise what they're calling review bytes, and detailed summary AI paragraphs to make it easier for shoppers to get the gist of a review. So basically, what it does is it takes a whole subset of reviews, grabs all the key words, phrases, and understanding from a large set of reviews and distills it into exactly the way that shoppers might feel out of out about that. What they're really doing is making sure that everything is labeled for transparency, so that if you've got this this like shopper review, or review by everybody knows, hey, this came from something generated, not from something actually written. And it's still clear and easy to get to the main reviews. But I love this because, one, Paul, if you've ever read through, like 20 reviews, you're like, do these people even speak English? Right? Yeah, like it's capital letters all over the place. Missing contrast. He's got he's got grammar. Yeah. So it's just it's rough. And so I really appreciate this, because the sentiment is really what I'm looking for in the reviews. And as if I can grab sentiment and maybe some key things that I might be looking for, in a really short concise way. Kudos, and I think Man, auto would do well, like, I'm glad we've already got a line out to Janet to Jamie ottershaw. And we're gonna get a line out to Matt over at wide well, because I think that there's a really unique opportunity here for auto to capture the same type of engagement.

Paul Daly: 12:39

I can also I mean, it's all about speed. And like you said, like kind of mentally summarizing the sentiment, and everyone does it in a little bit of a different way. When you're scanning and reading through reviews, right, you see some repeated elements, try to capture the sentiment, I wouldn't be surprised if Google reviews start doing this, right? Because it allows you to fit more reviews on one page. And I think it's something to be super aware of, because all of a sudden as a dealership, if the reviews are going to be summarized in the sentiment summarize, the good and the bad, don't get buried. So right up front and center and out there. But I think it's a good development as save people time and allow us to read more reviews faster. Like that sounds like a winning

Kyle Mountsier: 13:17

recommended SEO perspective. You're like, what are the key things that people say about our brand? And well, we'll be shopping about our brand, and bringing that to the forefront and the content on your pages. Done?

Paul Daly: 13:30

Oh, that's good. It's really good. That's

Kyle Mountsier: 13:33

cool stuff this morning. You know, I'm

Paul Daly: 13:35

trying to give her a good practical stuff. Hey, thank you so much to everybody that's alive and well in the comments. watching the show live. If you don't you can also listen to it download on your favorite podcast platform, but it's Thursday. We got some work to do.

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