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.
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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
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
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
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
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.
00:02:27 Jon Toker
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
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
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.
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
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?
No, yeah no.
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
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
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
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
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.
00:16:32 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 Jon Toker
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
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
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
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.
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
00:22:45 Jon Toker
That’s that’s really good.
00:22:46 Burt Davidson
00:22:46 Jon Toker
God, I’m sorry.
00:22:48 Jon Toker
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 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
00:24:10 Burt Davidson
00:24:13 Jon Toker
00:24:17 Speaker 1
00:24:20 Jon Toker
And let me put that on the screen.
00:24:24 Jon Toker
00:24:26 Jon Toker
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
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
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.
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
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.