Toronto Auto Consulting

Burt Davidson - Cheddar Auto

Car Biz Insider feat Burt Davidson Ep #7

Car Biz Insider feat Burt Davidson Ep #7 (Automotive Podcast)

We will be having a conversation about how to acquire used inventory for your lot, the non-traditional way, with Burt Davidson.

Burt Davidson is currently the Vice President at Cheddar Auto and Used Vehicle Platform director at Taylor Automotive in Ohio. They currently acquire 75+ vehicles a month avg directly from public (not trade-ins) from Cheddar Auto.

Please join our conversation on Wednesday, March the 2nd at 11am EST. We will be streaming live on YouTube, Twitter, Facebook and LinkedIn. If you have any questions, feel free to ask and hope to connect with you.

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Car Biz Insider is an automotive podcast hosted weekly by Jon Toker, who is an automotive consultant for franchised car dealerships and OEMs. Jon Toker currently owns and operates Toronto Auto Consulting in Ontario, Canada.

#automotive #managementconsultant #usedcars #sales #SEO #dealershipManagement #variableoperations #fixedoperation #opentoconnect #automotiveindustry #managementconsulting #profitabilityimprovement

Transcript

00:00:30 Jon Toker

Hi everybody, this is your host Jon Toker from Car biz insider.

00:00:33 Jon Toker

I have a very special guest here with me today.

00:00:35 Jon Toker

Burt Davidson.

00:00:36 Jon Toker

Hey Burt, how are you?

00:00:37 Jon Toker

Doing today, I’m excellent, John you.

00:00:40 Jon Toker

I’m good, thank you being on the show today.

00:00:42 Speaker 1

My pleasure.

00:00:43 Jon Toker

Why don’t we jump right in and talk about yourself a little bit?

00:00:46 Jon Toker

Introduce yourself to our listeners and viewers who’s Burt Davidson?

00:00:51 Jon Toker

What do you do and all?

00:00:51 Jon Toker

That good stuff, sure.

00:00:53 Burt Davidson

Yeah, I started in the car business.

00:00:57 Burt Davidson

I grew up on a buy here, pay here lot in Lorain, OH which is on Lake Erie near Cleveland.

00:01:03 Burt Davidson

And then I graduated from John Carroll University, which is in Cleveland. It’s it’s a small College in Cleveland and then got in the car business and, you know, been a manager since 2004, primarily with used cars and did a lot of high line.

00:01:23 Burt Davidson

With Lexus Mercedes Volvo and then for the last three years I’ve been the used car director at the Taylor Automotive Group, which is in Eastern Ohio and Western Pennsylvania.

00:01:36 Burt Davidson

We’ve got 5 rooftops.

00:01:39 Burt Davidson

A man that’s been keeping me very busy for the last three years, and then obviously we’re going to talk about Cheddar today and that’s been that’s sort of been my baby since beginning of this summer of.

00:01:51 Burt Davidson

2021

00:01:53 Jon Toker

That’s, uh, that’s really good then.

00:01:55 Jon Toker

You know, thank you for introducing yourself.

00:01:58 Jon Toker

I I was going through the Cheddar auto.

00:02:01 Jon Toker

It solved the website and right now the biggest question I got from people that I know in the business is OK, so we’ve got a shortage in new cars.

00:02:10 Jon Toker

You want us to focus on used vehicle.

00:02:13 Jon Toker

Where we going to get the used cars from when we can’t solve the new cars to get that trade in because there’s a huge scarcity on the products.

00:02:19 Burt Davidson

Right, right?

00:02:20 Jon Toker

Well, I’ll tell my dealers like you, gotta you gotta become creative, right?

00:02:25 Jon Toker

You gotta be able to buy these cars in nontraditional ways.

00:02:25

That’s right.

00:02:27 Jon Toker

Because auctions?

00:02:28 Jon Toker

Are through the roof.

00:02:29 Burt Davidson

That’s right, yeah.

00:02:30 Jon Toker

And then thanks to LinkedIn, we had an opportunity to meet and cheddar sales are very interesting because the numbers you were talking about it.

00:02:41 Jon Toker

So why don’t you give us a little bit some KPIs?

00:02:45 Jon Toker

How was your experience?

00:02:46 Jon Toker

Why did you do Cheddar Auto?

00:02:48 Jon Toker

How do you acquire cars?

00:02:50 Jon Toker

Maybe we can look at your website too.

00:02:52 Jon Toker

That could help other dealers and absolutely.

00:02:54 Jon Toker

Right?

00:02:56 Burt Davidson

So you know, here’s how cheddar came about, so you know it’s kind of like OK, well, we got to start buying cars.

00:03:03 Burt Davidson

We got to start buying cars off private party off people.

00:03:06 Burt Davidson

Let’s do that.

00:03:06 Burt Davidson

So at first we were like every other dealer.

00:03:08 Burt Davidson

You know you put up a sign.

00:03:09 Burt Davidson

You might say you know, hey on the website.

00:03:12 Burt Davidson

Hey we buy cars, whatever, whatever.

00:03:17 Burt Davidson

I’m I’m working a deal. I tell a salesman to go out there, you know it’s a Kia whatever it’s like hey Joe, this car is worth $25,000.

00:03:25 Burt Davidson

Go tell your guest you know we’ll purchase the car off of him for $25,000, and you know he comes back and I see the guy leave and I’m like well, what happened he’s like.

00:03:35 Burt Davidson

Oh yeah, you know, he said he’s going to think.

00:03:37 Burt Davidson

Battle, would you tell me this?

00:03:38 Burt Davidson

Well, I I told him $22,000 ’cause you know, I figured you want me to take it.

00:03:42 Burt Davidson

In cheaper and maybe.

00:03:43 Burt Davidson

We could split the money that you know and and.

00:03:45 Burt Davidson

At that point time, I realize that car dealerships are terrible at buying cars.

00:03:50 Burt Davidson

Off of people.

00:03:51 Burt Davidson

Because we are generally negotiating and gross focused.

00:03:56 Burt Davidson

Beings and and.

00:03:59 Burt Davidson

In order to purchase these cars off people.

00:04:02 Burt Davidson

You have to have.

00:04:02 Burt Davidson

An entirely different mindset, and so me and my owner, Matt Taylor, who’s an amazing progressive owner, a younger, younger person.

00:04:10 Burt Davidson

You know we sat down and Matt actually came up with the cheddar tagline.

00:04:14 Burt Davidson

He says, how about getting more cheddar?

00:04:16 Burt Davidson

And I says that that sounds corny enough that it just might catch on and and so we created a website.

00:04:23 Burt Davidson

And we started with some radio advertising and some Internet marketing, some creative Internet marketing and and it started to grow.

00:04:32 Burt Davidson

And you know, all of a sudden we’re buying 20 cars and they were buying 30 cars.

00:04:36 Burt Davidson

They were buying 50 cars and I think last month and and if we have a if I have a screen and as we go on through this.

00:04:43 Burt Davidson

I can share my screen and show you some back end metrics.

00:04:46 Burt Davidson

I’d be happy whoever is listening to they can see.

00:04:48 Burt Davidson

Those I mean, I think last month we bought about 120 cars the month before that we were over 100 and you know we do that by hand and you can show the website.

00:04:58 Burt Davidson

We do that by driving people to a website very similar to Carvana or CarMax.

00:05:02 Burt Davidson

Is or anybody else that has one of these they put in their information.

00:05:08 Burt Davidson

They get an amount and then that information gets fed back into our BDC.

00:05:15 Burt Davidson

And and our BDC gives them a call, gives them a range so you know John, your your car. It says your cars worth $25,000.

00:05:23 Burt Davidson

It could possibly be worth up to 26 five, but the next thing we have to do is we have to set an appointment to schedule you in to get an inspection and at that point in time you’ll get a guaranteed offer.

00:05:35 Burt Davidson

And then we go ahead and we set appointments. We’re setting about 15% of the leads that come in. We’re setting appointments.

00:05:43 Burt Davidson

It’s been as high as 18. It’s been as low as 13, but 15 is kind of the number and then we set the appointment and it’s the same thing like any other Internet lead. About 60% show and then we buy about half of the cars by anybody that shows up. We buy about half the cars.

00:06:02 Burt Davidson

So, so we’re having success and the metrics look good, and it’s it’s a.

00:06:06 Burt Davidson

It’s a good business.

00:06:07 Burt Davidson

Now it does require some commitment on the dealer part and this is I think the part where the dealers sometimes make mistakes.

00:06:14 Burt Davidson

Two is, you know we’re we’re big in this business of dipping our toe into the water and I think if you study the real winners in this business, whether it’s the whether it’s the guys on a huge level like you know, CarMax or Carvana, or if it’s individual dealers like paragon.

00:06:32 Burt Davidson

You know ’cause paragons in my 20 group?

00:06:34 Burt Davidson

You know, Brian benstock.

00:06:35 Burt Davidson

So genius.

00:06:36 Burt Davidson

They don’t dip their toes in the water.

00:06:38 Burt Davidson

They go all in and they.

00:06:39 Burt Davidson

Amit and I think with this you know we went all in and and we’re spending you know 20 to $30,000 a month in advertising, which you know some dealers might be like, oh jeez, that seems like a lot of money but but but is it you know is it is it to buy 120 cars at better way, better margins than you could ever imagine.

00:06:59 Burt Davidson

You know, buying them at the auction for, so I mean the old adage you got to spend money to make money is very true when it comes to private party acquisition.

00:07:08 Burt Davidson

I mean you have to get your voice heard.

00:07:09 Burt Davidson

It’s a little bit of a crowded space and.

00:07:11 Burt Davidson

You’ve got it.

00:07:11 Burt Davidson

You gotta get your voice out there.

00:07:14 Jon Toker

Well, you you just right in the eye there man telling like you can’t just dip your toes and give it a try and test the waters like when you’re coming up with something brand new like.

00:07:23 Jon Toker

This you either in or out.

00:07:25 Jon Toker

There’s no in between and, and you’re talking about $20,000. It sounds like a lot of money, about 120 units.

00:07:33 Jon Toker

You made the calculation. This was $600 per car like that.

00:07:36

Well it has, yeah.

00:07:38 Burt Davidson

If we’re wholesaling the cars, we’re right around a lifetime, right around $1000. But on retail you know you’re looking. I think about $3700, you know, per retail car from there, so you know.

00:07:53 Burt Davidson

Pays for itself on, you know, 1010 retail units double s it pretty much.

00:07:59 Jon Toker

And Burt like right now.

00:08:01 Jon Toker

I mean, how’s your situation with near car inventory?

00:08:03 Jon Toker

How many new cars do you have on the lot right now?

00:08:06 Burt Davidson

Yeah, I mean you know Kia. We’ve got a 123. We got three Kia stores. The key inventory, you know, single digits, probably double digits at our big store, Chevy or Chevy Toyota store.

00:08:17 Burt Davidson

Same thing, Toyotas are really tough right now, you know.

00:08:22 Burt Davidson

So and and it’s you know, we know the old story.

00:08:24 Burt Davidson

The the factories are telling us.

00:08:27 Burt Davidson

Hang in there, but you know we we’ve been hearing it every month now.

00:08:32 Burt Davidson

For for a year so yeah, and new car inventory is tight so you use cars.

00:08:37 Burt Davidson

It’s all about used cars and and the right use cars because as the market’s been declining, you know black book says we’re about 8 tenths of a percent per week right now.

00:08:48 Burt Davidson

And and anybody that savvy auto user has seen the Market Day supply climb very high.

00:08:53 Burt Davidson

On some cars you know it it.

00:08:55 Burt Davidson

It’s the right used cars. It’s not. It’s not may of 2021 anymore where you know whatever is out there is going to sell you. You gotta have. You gotta have the right units now.

00:09:06 Jon Toker

Yeah, you’re you’re absolutely right.

00:09:07 Jon Toker

I keep seeing that reports on LinkedIn.

00:09:10 Jon Toker

People are sharing and like they’re saying, there’s a a bit slow down and everybody is cutting back prices because everybody is in panic mode.

00:09:18 Jon Toker

So buying those cars from the auction.

00:09:21 Jon Toker

Obviously you know you pay a lot of money for it.

00:09:25 Jon Toker

Auction fees and everything.

00:09:26 Jon Toker

When you have your own thing like this like Cheddar auto, you don’t pay auction fees you know and and you get to drive the car probably right when they come to your location.

00:09:37 Jon Toker

Before jump into your website and should go over your website a little bit because it looks really nice, plain and simple, like fast, simple and easy.

00:09:44 Jon Toker

Like Brian Kramer says it looks.

00:09:46 Burt Davidson

Right?

00:09:47

Pretty cool.

00:09:48 Jon Toker

You were we were having a conversation and you said something very interesting because I ask you the question that a lot of dealers tried this in the past to acquire cars.

00:09:59 Jon Toker

One of the problem is, unless they’re trying to steal cars to make money, but I think the other problem and I give you an example.

00:10:07 Jon Toker

We had this specific company dedicated to purchase cars in Greater Toronto area in Canada.

00:10:13 Jon Toker

It it didn’t take them too long to go out of business and what they did was they were actually doing the mobile stuff.

00:10:19 Jon Toker

So you submitted lead, they show up to your house and try to cut you a check on the on the parking lot on your in your driveway.

00:10:27 Jon Toker

Didn’t work well for them when I was talking to you, said something very important about inspection stations.

00:10:34 Jon Toker

Could you talk about a little bit more?

00:10:35 Jon Toker

Are you allowed to talk about or that’s?

00:10:37

No, yeah no.

00:10:37

Not really.

00:10:38 Burt Davidson

Absolutely, you know, we’ve got. We’ve got right now. We’ve got three inspection stations spread out over about 120 mile radius, and we’ll add a fourth. Since we just purchased another store.

00:10:50 Burt Davidson

For a moment, and it’s preferential to drive the guests to an inspection station.

00:10:56 Burt Davidson

Because the metrics show that I am going to buy you.

00:11:01 Burt Davidson

Uhm, you know half this 50% of the cars that show up to the inspection station, we do have a mobile option through one through a 3 mobile inspection.

00:11:12 Burt Davidson

Company UM and our success rates. Only about 30 percent 2830% through them, and so it is definitely.

00:11:22 Burt Davidson

And we communicate this to our BDC who’s making the calls.

00:11:25 Burt Davidson

It’s definitely preferential to schedule somebody to come in and then it.

00:11:30 Burt Davidson

It really is about.

00:11:32 Burt Davidson

The human touch and about.

00:11:34 Burt Davidson

Sales and I’ve always been a big believer.

00:11:37 Burt Davidson

Uhm yeah, I I had a really good teacher 12 years ago in in in my career, a fellow by the name of Bernie Moreno, who built a huge conglomerate here in the in the in the Ohio.

00:11:47 Burt Davidson

Area and he was always.

00:11:49 Burt Davidson

A big fan of of treating of assuming that every guest is smarter than you are and and sharing real data.

00:11:57 Burt Davidson

With guests, and so you know, we bring him into the inspection station and we sit him down and I’ve showed guests over the last two weeks. The Black book where it says that cars are depreciating at 9/10 of a percent per week.

00:12:08 Burt Davidson

And if you show people facts and then do a little math, you know because the scenarios a lot of the scenarios are the same.

00:12:14 Burt Davidson

It’s the same with a car deal. You show somebody it will pay you 25 and and and you know the person like we know we want $26,000 and you’re $1000 away and you show him the data like when you walk out of here and you know 1%.

00:12:28 Burt Davidson

Per week 200.

00:12:29 Burt Davidson

And $50.

00:12:30 Burt Davidson

You know it’s you share the data with the consumer with the guest and and you make them feel like appear you make them feel like an equal and and and you’re you’re 100% transparent with them and and it goes a long way and we’ve had a lot of success doing that, right?

00:12:50 Burt Davidson

You know we.

00:12:51 Burt Davidson

We I have a team that’s very progressive and you know we stay away from the old car dog sayings you know, like oh, you know the cat is Kelley Blue Book and write you a check at that number and you know all that crap.

00:13:03 Burt Davidson

App that never worked, that that creates conflict. You know non confrontational as as a guy 1000 times smarter than the Brian Benstock will say frictionless. The future is frictionless. Don’t create confrontation, don’t create friction, have data on hand.

00:13:23 Burt Davidson

You can share with the consumer just like a doctor would share with you when they’re going over test results, and it’s amazing how their defenses drop and how.

00:13:33 Burt Davidson

Then you can talk to him on a real human level and and you know, get into a situation where it’s a win win.

00:13:39 Burt Davidson

They win, they’re happy, you win, you’re happy.

00:13:42 Jon Toker

And you also mentioned that, uh, when you buy someone car there, there’s a chance that they will actually turn around and buy a brand new or used car from you as well too.

00:13:52 Jon Toker

So you generate some sales out of it too, right?

00:13:55 Burt Davidson

100%, you know when they’re at the dealership, the question we always ask is is, So what?

00:14:00 Burt Davidson

What’s your next car?

00:14:01 Burt Davidson

What are your plans?

00:14:02 Burt Davidson

Since you’re getting rid of this one and it’s amazing.

00:14:05 Burt Davidson

That people will be.

00:14:06 Burt Davidson

Like I don’t really have any plans.

00:14:08 Burt Davidson

You know, I just I just know that the markets high I’m going to sell this and you know, maybe drive my husband car or drive my wife car for a week and.

00:14:14 Burt Davidson

And those turn into sales.

00:14:16 Burt Davidson

And then the other thing that’s really been shocking.

00:14:20 Burt Davidson

Excuse me it.

00:14:21 Burt Davidson

Is the amount of.

00:14:23 Burt Davidson

Referral business that we have had.

00:14:25 Burt Davidson

So now at our inspection stations we’re getting.

00:14:28 Burt Davidson

Two or three.

00:14:29 Burt Davidson

Walk-ins a day.

00:14:30 Burt Davidson

You know walk-ins, not appointments that are like, hey, you know my buddy sold sold your car, you know, sold his car to you guys and you know, told me about you guys.

00:14:41 Burt Davidson

And so the referral business.

00:14:42 Burt Davidson

And because of that we’ve been able to.

00:14:44 Burt Davidson

Tamp down the advertising.

00:14:46 Burt Davidson

Spend because you know this is kind of like a top where we needed a little bit of a push.

00:14:51 Burt Davidson

To get.

00:14:52 Burt Davidson

It spinning, but now that it’s spinning we.

00:14:54 Burt Davidson

Just need to tap it every once in a while.

00:14:57 Jon Toker

Well, you’re right in terms of advertising because you’re a brand new company, brand new website, yes.

00:15:02 Burt Davidson

Yeah, well.

00:15:03 Jon Toker

What’s going to happen is over the time your website is going to gain more domain authority and then it’s going to start ranking organically.

00:15:12 Jon Toker

Then the time is gonna come when people gonna say where can I sell my car on Google?

00:15:16 Jon Toker

Obviously in your area your website is going to start ranking really fast organically.

00:15:21 Jon Toker

Then you probably will start spending maybe just retargeting campaigns at that point, right?

00:15:26 Jon Toker

Not just acquiring campaigns, not conquest anymore.

00:15:29 Jon Toker

You’ll probably switch back to remarketing.

00:15:31 Jon Toker

Stuff well, I I think it’s it’s really nice, so why don’t we look at your website a little bit and show our viewers?

00:15:39 Jon Toker

I mean, some people listen to it, so they may not be able to see it, but they can always go on YouTube and look at this and they.

00:15:45 Jon Toker

Find out.

00:15:46 Jon Toker

But if I were to go over your website now.

00:15:50 Jon Toker

Now, uh, well, I like the callers and it’s pretty cool and there’s a little video here, so that’s pretty good.

00:15:57 Jon Toker

Explains people like how potentially this works, right?

00:16:01 Jon Toker

Let me just put those volume down.

00:16:03 Jon Toker

But, uh, it is.

00:16:05 Jon Toker

It is pretty cool so they can 3 easy steps, right?

00:16:10 Jon Toker

So I really like this by the way.

00:16:12 Jon Toker

The license plate number thing.

00:16:14 Jon Toker

What is that hooked up to?

00:16:16 Jon Toker

Is it your own system or are you guys using something to tag along to that?

00:16:20 Burt Davidson

Yeah, we’re this.

00:16:21 Burt Davidson

Our site is powered by Galves market data, which is accutrade and and you know they are our partner in this and they have been fantastic.

00:16:27

Welcome.

00:16:32 Burt Davidson

In working with us and they are a wonderful partner.

00:16:37 Burt Davidson

You know, Bob Hollinshead and his team out there.

00:16:40 Burt Davidson

They’re just absolutely amazing and you know there, there’s just a there’s just a huge part of what we do here.

00:16:47 Jon Toker

Yeah, this is very convenient because most of the times we tell clients.

00:16:51 Jon Toker

I mean I’m talking about can.

00:16:52 Jon Toker

Yeah, and I say what’s the VIN number for the car and customer says what’s that like?

00:16:57

Right?

00:16:57 Jon Toker

That’s right?

00:17:00 Jon Toker

And I explained to them that’s that thing on your registration or your insurance card that like 16 digit number, right?

00:17:06 Jon Toker

And they’re like, oh OK, but like putting the license plate number, that is pretty makes things really easy so you can punch it in.

00:17:14 Jon Toker

I’m sure you don’t have Canada.

00:17:15 Jon Toker

Here now.

00:17:17 Jon Toker

Brian on Oh yeah, of course.

00:17:19 Jon Toker

But this is really good or or somebody has the VIN they can pull it.

00:17:23 Jon Toker

Pull the VIN number or they can do a make model year.

00:17:26 Jon Toker

So question is this so I don’t want.

00:17:31 Jon Toker

Go too deep into your processes, but just out of curiosity, uh, somebody punches the license plate number.

00:17:37 Jon Toker

You get a lead, you know the VIN number of that card.

00:17:40 Jon Toker

Top point, I assume.

00:17:41 Jon Toker

Do you guys put like car Carfax report on those cars before the customer comes in that?

00:17:46 Jon Toker

Does the values factor that into that automatically?

00:17:48 Jon Toker

Like how does that work?

00:17:49 Burt Davidson

Out it’s.

00:17:51 Burt Davidson

It’s the the the accutrade.

00:17:53 Burt Davidson

System will catch some vehicle history report.

00:17:56 Burt Davidson

But you know, certainly you know when when the when we inspect the vehicle when we do the final inspection, you know we’re looking at the auto auto history Carfax, and we’re certainly factoring that into our appraisals.

00:18:11 Jon Toker

So you do that one day and OK makes sense because like if car is a $15,000 hit, obviously it’s not going to worth the money that you know it’s it’s going to be different animal there, right? Because you’ve got to factor that in.

00:18:25 Burt Davidson

Yeah it is, and you know that’s where the human human comes into contact.

00:18:28 Burt Davidson

You know, I I I always tell people we’re real people with real check.

00:18:33 Burt Davidson

And you know, if I get a car in here and somebody comes in, and the Carfax is really bad on it because they didn’t have the VIN number, they didn’t provide us with the VIN number.

00:18:43 Burt Davidson

Or if we go out and do a mobile inspection and same thing, they didn’t provide us with the VIN number and it comes up really bad.

00:18:48 Burt Davidson

You know, we make sure that we go out and explain it to the guest.

00:18:52 Burt Davidson

You know, in plain English and and let them know why there’s a change in value you know, and I think that’s important.

00:18:59 Burt Davidson

You can’t just shoot out a computer, print out that says you know your cars were $15,000 when he thought it was worth 25.

00:19:05 Burt Davidson

And you know, give them, uh, give them a one line explanation. That’s that’s that’s how you irritate people because I’ve been pretty obsessive about the Google reviews from our business, and I think we have like a 4.7 rating and and you know that that that’s super important to us. So we, we really, you know, we really make sure that.

00:19:25 Burt Davidson

That everybody leaves us that has an interaction with us.

00:19:29 Burt Davidson

Everybody leaves us feeling good.

00:19:32 Jon Toker

That’s amazing and the other things that you know.

00:19:36 Jon Toker

Car dealers.

00:19:37 Jon Toker

You know we have.

00:19:38 Jon Toker

Sometimes the reputation, right?

00:19:40 Jon Toker

That we don’t always.

00:19:42 Jon Toker

You know, sometimes they the consumer always thinks that we’re the bad guys sometimes, but you say get paid on the spot.

00:19:49 Jon Toker

You literally cut the check on the spot as long as.

00:19:52 Jon Toker

You know there’s no lien or anything on the vehicle, right?

00:19:55 Burt Davidson

Yeah yeah our our main inspection station has the has a check has a check book there and if they come in there and they have a title free and clear you know we’ll write him a check.

00:20:06 Jon Toker

That’s that’s really good, because sometimes you know consumers have that idea right, but yeah.

00:20:12 Jon Toker

That’s really good.

00:20:13 Jon Toker

Well, while this looks, uh, that that looks really nice here, and I’m sure I.

00:20:20 Jon Toker

I mean, it’s not like.

00:20:22 Jon Toker

It’s not like, uh, this is like inventing something brand new, but it’s the execution is the point.

00:20:28 Jon Toker

’cause everybody is the idea of you know, doing this?

00:20:31 Jon Toker

Acquiring cash from people, because obviously you’re not getting as many as trades, but I guess you guys have very good practices in terms of executing it.

00:20:42 Jon Toker

Uh, my other questions I would have is so you. You say you got about like you, you did get 120 cars last month.

00:20:51

Let me do this.

00:20:52 Speaker 1

How many of?

00:20:53 Jon Toker

Them you retail then how many of them you actually wholesale?

00:20:57 Burt Davidson

Yeah, we bought a.

00:20:57 Burt Davidson

I’m looking at my metrics board. We bought 127 cars, uh, roughly.

00:21:04 Burt Davidson

The 35% of those went out to our retail stores and then we wholesale the rest was a pretty high wholesale month, because here in the states, especially in the area we’re in right now, we have a lot of GM retirees that get the GM discount. And so they had they had.

00:21:24 Burt Davidson

They had equity equity in in some of their GM leases, so we we bought it.

00:21:29 Burt Davidson

We bought an unusual amount of GM vehicle.

00:21:32 Burt Davidson

Getting people out of their equity, so that’s that’s why we had a little bit of a higher percentage going to the auction.

00:21:38 Burt Davidson

I, I think when the market turns a little bit and normalizes a little bit.

00:21:42 Burt Davidson

More, and I’ve seen it.

00:21:43 Burt Davidson

Uhm, that’ll that’ll swing. You know we’ll be sending 70% to the stores and taking 30% to the auction.

00:21:52 Jon Toker

And you said the average money you guys making. There’s retail units about what $3700 that’s including ethanai or.

00:21:59 Burt Davidson

Including F and I yeah, about 35 thirty 700 bucks.

00:22:02 Jon Toker

That’s that’s really good.

00:22:04 Jon Toker

I think whoever is listening or watching this.

00:22:07 Jon Toker

I think this is a good idea and there’s good good things that, like I think they should take their self like the best practices in terms of being transparent.

00:22:16 Jon Toker

Having those physical locations, I think and being like you know that fast, quick and easy.

00:22:23 Jon Toker

Right that it has to be simple process.

00:22:25 Jon Toker

So somebody drives in.

00:22:26 Jon Toker

They see the car.

00:22:28 Jon Toker

Yeah you, you agree on the price.

00:22:30 Jon Toker

Then you cut the check on the spot.

00:22:32 Jon Toker

You don’t you don’t you, don’t you know waste their time because like there’s some dealers like that too.

00:22:37 Jon Toker

You saw your car and then you’re gonna go drop it off.

00:22:39 Jon Toker

Then there’s, Oh yeah, I.

00:22:40 Jon Toker

Need the controller signature that’s.

00:22:42 Jon Toker

Gonna be another two days.

00:22:43 Jon Toker

And right?

00:22:45 Jon Toker

That’s that’s really good.

00:22:46 Burt Davidson

And and.

00:22:46 Jon Toker

How about?

00:22:47

God, I’m sorry.

00:22:48 Jon Toker

Go ahead.

00:22:49 Burt Davidson

The the the.

00:22:50 Burt Davidson

Beauty about this whole system that we’ve set up is we really haven’t, except for the remote location that I have in the Cleveland area.

00:23:00 Burt Davidson

We haven’t had to hire any extra employees because it’s just been.

00:23:04 Burt Davidson

And the employees that we have filling in and working together as a team to handle the folks that come in.

00:23:12

I mean.

00:23:12 Burt Davidson

You know, and a lot of it are the buyers or or the people that have bought on a part time basis that that aren’t buying cars right now because going to the auctions just just doesn’t make any sense so.

00:23:24 Burt Davidson

For dealers that.

00:23:25 Burt Davidson

Are interested in doing this or interested in talking to me.

00:23:28 Burt Davidson

Further up, you know it it it is a system to where you can utilize your your current dealership team.

00:23:34 Burt Davidson

You don’t need to hire a bunch of extra people and have a bunch of a bunch of payroll because it is controlled.

00:23:40 Burt Davidson

If you set appointments and you let them know that that it’s kind of like a doctor’s office where you know you’ve got a, you’ve got an appointment slot.

00:23:48 Burt Davidson

You gotta be there you you can control your day. I mean you can have 1012 appointments and still control your day pretty well in in. In terms of in terms of managing that that.

00:23:59 Jon Toker

So in in terms of dealers reaching you, uh, let me put it on the screen.

00:24:04 Jon Toker

Your email address so Burch email it’s what?

00:24:08 Jon Toker

BB Davidson?

00:24:10 Burt Davidson

[email protected]

00:24:13 Jon Toker

Drive Taylor.

00:24:17 Speaker 1

Dot com.

00:24:20 Jon Toker

And let me put that on the screen.

00:24:24 Jon Toker

Oops coming.

00:24:26 Jon Toker

That’s correct.

00:24:27 Burt Davidson

That is correct, yes, and.

00:24:29 Jon Toker

So yeah, if you guys have any questions about this process for each Burt I, I’m sure he’s more than happy to help you, and I think it’s good practices and I’m really impressed.

00:24:38 Jon Toker

The fact that you guys have Brian on your Brian benstock on your group 20 and that’s pretty impressive.

00:24:45 Jon Toker

To do that, I mean having.

00:24:47 Jon Toker

A big dealer like that because they do really good with used and new and.

00:24:51 Burt Davidson

Yeah, his his he’s got a used car director Rob Patel.

00:24:54 Burt Davidson

That’s just so smart and you know I I.

00:24:57 Burt Davidson

I mean, it’s it’s been.

00:24:58 Burt Davidson

It’s been a great group because it’s it’s a little different.

00:25:01 Burt Davidson

You know we’re all the auto users in the group and we’re all pretty progressive and you know, we just kind of get around a table for a day and a half and talk about the challenges you know we do it three times a year and.

00:25:11 Burt Davidson

It’s really good.

00:25:13 Burt Davidson

I mean, you know, I’ve I’ve.

00:25:14 Burt Davidson

I’ve been educated so much in that group to different things, and you know, we challenge each other.

00:25:19 Burt Davidson

And and I.

00:25:20 Burt Davidson

Mean that that’s what this business is all about.

00:25:22 Burt Davidson

I mean it’s moving so fast it changes so quick that that communicating with one another and and and and connecting with somebody that’s you know 100 miles.

00:25:31 Burt Davidson

From you that’s doing something right and learning from them is is huge.

00:25:36 Burt Davidson

I mean, it’s paramount ’cause you can get into a bubble real quick in this business or get comfortable with with something that you’ve done.

00:25:42 Burt Davidson

You know in the.

00:25:43 Burt Davidson

Fast and hang on to it.

00:25:45 Burt Davidson

Too long and then before you know.

00:25:46 Burt Davidson

It you know that segment of the business has passed you by.

00:25:49 Jon Toker

Well, that’s the danger in the business becoming complacent, right?

00:25:53 Jon Toker

Once you become complacent, that’s gonna end up end your business, right?

00:25:57 Jon Toker

Sometime down the road, your performance group is is it open to Canadian dealers or it’s just US dealers?

00:26:04 Burt Davidson

I I don’t think so.

00:26:05 Burt Davidson

It’s through NSM and I don’t know if you guys.

00:26:08 Burt Davidson

Had you guys have any?

00:26:10 Burt Davidson

CM Canada

00:26:10 Jon Toker

Yeah we do.

00:26:11 Burt Davidson

OK, it’s Bruins.

00:26:11 Jon Toker

Yeah they do performance group meetings, yeah?

00:26:15 Jon Toker

But, uh, I think in CM in.

00:26:16 Jon Toker

The US they.

00:26:17 Jon Toker

Do like just.

00:26:18 Jon Toker

Use car only meetings too, I think because the ones we have is that everybody altogether fix variable whole 9 yards together, right?

00:26:24 Burt Davidson

Yeah, yeah, this is just a used car meeting.

00:26:26 Burt Davidson

Yeah so.

00:26:27 Jon Toker

Yeah, I mean it’s good to have Canadian dealers to look into that because there’s really good practices that they can utilize it.

00:26:34 Jon Toker

I mean, obviously the market and the way to do business is slightly different.

00:26:38 Jon Toker

We have different regulations, different provinces in Canada, right?

00:26:42 Jon Toker

You can’t just go there and take a process from an American dealer and say.

00:26:45 Jon Toker

Oh, that’s the way to do it.

00:26:46 Jon Toker

Let’s do it.

00:26:47 Jon Toker

So here you go, you’re going to fail miserably.

00:26:50 Jon Toker

Or a vice versa, right? We do things slightly different and the volume is a lot bigger in the US due to the population. And, you know we have a lot more dealers per population, so that makes it a little bit difficult hear things.

00:27:00 Jon Toker

But I think it’s always good to learn more and improve yourself more continuously.

00:27:05 Jon Toker

That’s why on my podcast I like to try to bring their diverse.

00:27:10 Jon Toker

People from car business so I don’t only just say OK, I’m only going to have used car guys on my stuff because I like to have other people too.

00:27:17 Jon Toker

Like last week, when we had the A President of Hyundai Canada and yeah, I don’t know if you had a chance to listen to him.

00:27:24 Jon Toker

I was blown away.

00:27:25 Jon Toker

The stuff he said it’s it’s unbelievable, right and?

00:27:29 Jon Toker

Next week we can have another gentleman from, uh, your state.

00:27:32 Jon Toker

That’s a tailor, but it’s a different kind of tailor.

00:27:34 Jon Toker

I didn’t know there’s multiple tailored dealerships in.

00:27:37

Your state so.

00:27:38 Jon Toker

And and that’s another gentleman too.

00:27:40 Jon Toker

Is a really good sales process, so I just like to diversify.

00:27:44 Jon Toker

You know my guests and it’s always good to have.

00:27:49 Jon Toker

Especially people like you because the.

00:27:50 Jon Toker

Most question I got right now is.

00:27:53 Jon Toker

How can we get these used cars?

00:27:55 Jon Toker

Yeah, right.

00:27:56 Jon Toker

And I tell them, buy it from people.

00:27:58 Jon Toker

How are we gonna do it?

00:27:59 Jon Toker

While ago on Facebook, whatever XYZ place advertise it and get it.

00:28:03 Jon Toker

But you’re right, if you’re not true, your process and that person comes in and you start lowballing trades and decided to steal stuff.

00:28:11 Jon Toker

Not going to happen now.

00:28:13 Jon Toker

Or if you only say.

00:28:14 Jon Toker

OK, I’m going to spend $2000.

00:28:16 Jon Toker

A month on advertising.

00:28:17 Jon Toker

That’s not going.

00:28:18 Jon Toker

To happen, either you gotta be able, there’s a lot of noise in in advertising space and you have to be very persistent with your processes in place, because otherwise you’re going to fail miserably.

00:28:30 Jon Toker

That’s right, what other stuff you guys do it differently in the used car business overall?

00:28:36 Burt Davidson

It’s, you know, for the states state to state it’s a little different.

00:28:39 Burt Davidson

You know in.

00:28:40 Burt Davidson

Terms of of of of.

00:28:41 Burt Davidson

How the titles are handled and and things like that?

00:28:44 Burt Davidson

You know it’s in the United States.

00:28:46 Burt Davidson

There’s 50 states, so you know it’s it’s and we’re in PA and we’re in Ohio.

00:28:51 Burt Davidson

And you know some states are really easy. Ohio is really easy and you know PA is a little bit tougher.

00:28:55 Burt Davidson

New York’s really tough

00:28:57 Burt Davidson

Uh, you know in terms of the regulations.

00:28:58 Burt Davidson

I I would assume.

00:28:59 Burt Davidson

That you guys are regulated a little bit tougher.

00:29:02 Burt Davidson

Up north up, you know, and and it’s it’s.

00:29:06 Burt Davidson

It’s something that the.

00:29:07 Burt Davidson

Dealers in the States and like you guys in Canada, you just learn to work around and live by.

00:29:11 Burt Davidson

And you know, I mean, we’re such adaptable creatures in this business that you know.

00:29:17 Burt Davidson

Regulate regulations have been changing.

00:29:19 Burt Davidson

I’ve been in the business since I was a kid.

00:29:21 Burt Davidson

I mean regulations have been changing and I remember stories of my dad telling me that, you know, ’cause he was selling cars when they first put Monroney labels on cars.

00:29:30 Burt Davidson

And and and all the dealers you know were mad at the factories because they thought that was going to end their business as.

00:29:36 Burt Davidson

They know it.

00:29:36 Burt Davidson

The Monroney label you know and and and because before the Monroney label, you could ask whatever you wanted for a car you know and and, and so you know everything comes around and and and people.

00:29:49 Burt Davidson

Complain that it’s going to end the business as we know it, but at the end of the day, as as we’re finding out even more so now in the digital age, it’s a people business, and if you make a connection with a person and and show them that you’ve listened to their problem and and have solved their problem.

00:30:05 Burt Davidson

You know they’re going to do business with you and and that’s that’s what it’s all about.

00:30:09 Burt Davidson

And and we’ll we’ll be around till the end of time because human human beings need that.

00:30:15 Jon Toker

Yeah, we need.

00:30:16 Jon Toker

We need that transportation right?

00:30:18 Jon Toker

We gotta transport themselves for one another.

00:30:20 Jon Toker

Well, bird, it’s it’s an absolute pleasure to host you in the show.

00:30:24 Jon Toker

I hope we can do this sometime down the road again, because what I’m planning to do now that the show is once I gather like once I have more episodes I’d like to bring those people back, hold together again and like have kind of like.

00:30:35 Jon Toker

A round table thing in the future, so hopefully we can have you there too in the future and really appreciate your time.

00:30:38 Burt Davidson

That’d be great.

00:30:42 Jon Toker

Anything else that you want to add before we wrap this up, you OK people contacting you have no problem with that pretty friendly guy, right?

00:30:49 Burt Davidson

Absolutely yeah please.

00:30:51 Burt Davidson

Yeah, please do so.

00:30:53 Burt Davidson

And John it was.

00:30:54 Burt Davidson

It was my pleasure to come on and and thank you so much for having me on.

00:30:58 Burt Davidson

I really enjoyed it.

00:30:59 Jon Toker

No problem Burt.

00:30:59 Jon Toker

All the best.

00:31:00 Jon Toker

Have a great day, hope you saw lots of cars and take care.

00:31:04 Burt Davidson

We’ll see it bye bye.