A Dealer CALLED IN to DESTROY My Business Then Asked to Work Together!
About this episode
Dealers, franchise laws, and pricing power take center stage as the hosts argue about why “sticker” isn’t the real number and how negotiation (or lack of it) changes outcomes. They question dealership credibility and point to lawsuits and shutdowns tied to direct-to-consumer attempts. From end-of-month “gammy” incentives to why discounting sets market value, they push a “vote with your wallet” approach—while debating whether DTC would actually be cheaper once logistics, service centers, and data-driven pricing are considered.
In this video a Hyundai dealer named Kevin finds me live on stream and calls in to debate me on everything from franchise laws to direct-to-consumer sales to whether dealerships actually add value for consumers.
He came in swinging, held his ground on some points, and genuinely made me think on a few others.
But by the end of the call he offered to send me Hyundai clients in New England! You don't want to miss this episode!
Scout
"Why did Volkswagen spend $2 billion on Scout? If they could just spend that money to lobby congress, like if they spent $2 billion, and they haven't put a single car on the ground yet..."
Scout is the new off-road-focused brand Volkswagen is associated with in this discussion. The host frames it as a brand launch that hasn’t put a single car on the ground yet, and argues that the company’s strategy and timing are part of why it’s facing shutdown and legal pressure.
Volkswagen Did Volkswagen
"...e I want to debunk this idea that they could. Why did Volkswagen spend $2 billion on Scout? If they could just spe..."
The Volkswagen ID. Buzz is a van that uses electricity instead of gas. It’s made to carry people or cargo, and it’s part of Volkswagen’s electric-vehicle lineup. It comes up in discussions about how companies plan and spend money on different electric models.
The Volkswagen ID. Buzz is an all-electric van built on Volkswagen’s electric vehicle platform, designed for people and cargo with a modern EV layout. It’s relevant to the podcast because it ties into Volkswagen’s broader investment and strategy around electric vehicles and platform development. Mentioning it alongside the idea of “spending $2 billion on Scout” frames how Volkswagen allocates resources across different electric projects.
lobby congress
"If they could just spend that money to lobby congress, like if they spent $2 billion... Why didn't they spend some of that money to lobby congress?"
“Lobby congress” refers to trying to influence lawmakers through political advocacy. The host uses it to contrast two approaches—spending money on political influence versus spending it on building a new brand—arguing that Volkswagen chose the latter.
NAD
"and now they're being sued by NAD up to Wazoo, they might not be able to sell a car."
NAD is referenced as a party suing Volkswagen “up to Wazoo,” implying a large number of legal actions or aggressive litigation. The segment doesn’t define what NAD stands for, but it’s clearly used as a legal pressure point in the host’s argument.
calculated risk
"Well, it was a calculated risk for them, simple as that. You know, they figured they could launch a brand, they can skirt by their dealers."
A “calculated risk” means taking a gamble on a plan because you think it will work out. The host is saying Volkswagen decided to try launching Scout even though there were big risks involved.
A “calculated risk” is a strategy where a company expects the upside (like launching a brand) to outweigh known uncertainties (like dealer pushback or regulatory/legal challenges). Here, the host argues Volkswagen intentionally took that risk to try to launch Scout and “skirt by” dealer constraints.
sticker
"because dealerships are charging $10,000 above sticker on a lightning. So they commit to actually selling cars direct to consumer to give consumers options."
“Sticker” means the price printed on the car’s window label. The host is saying some dealers charge way more than that printed price.
In car sales, “sticker” usually refers to the window-sticker price—commonly tied to MSRP or the listed MSRP-based figure. The host uses it to highlight how dealers can charge a large markup above that published number.
Ford F-150 Lightning
"...alerships are charging $10,000 above sticker on a lightning. So they commit to actually selling cars"
The Ford F-150 Lightning is a pickup truck that runs on electricity instead of gasoline. Because it’s a newer, high-demand type of vehicle, some dealers may try to sell it for more than the listed price. That’s why it’s brought up when talking about negotiating the final purchase cost.
The Ford F-150 Lightning is an all-electric version of the F-150 pickup, combining the utility of a truck with an electric powertrain. It’s discussed in negotiation contexts because demand and inventory can affect whether dealers charge above the listed price. The podcast’s mention of dealers charging $10,000 over sticker highlights how buyers may need to push back to get the advertised deal.
MSRP
"Okay, so here's the thing, MSRP, right? What's the F stand for Tommy suggested?"
MSRP is the price the carmaker lists as the starting point for the car’s cost. A dealer can still charge more or less than that number.
MSRP (Manufacturer’s Suggested Retail Price) is the price the automaker publishes as the baseline for what the car “should” cost. Dealers can still sell above or below MSRP, which is why the host discusses markup versus sticker price on the Lightning.
dealer markup
"So if somebody's gonna sell it for $10,000 over because there's no supply or whatever, because they think that they can get it,"
Dealer markup is when the dealer charges more than the listed price. The host suggests it happens when cars are scarce and dealers think people will pay anyway.
Dealer markup is the extra amount a dealer adds on top of the baseline listed price (like MSRP) to capture profit or respond to demand. The host connects it to supply constraints and the belief that buyers will still pay.
vote with their wallet
"Consumers at the end of the day, [337.6s] they should be voting with their wallet. [339.4s] And car sales isn't slowing down"
The phrase means customers send a message with their buying decisions. If people don’t want to pay a certain price, they can choose not to buy, and that pressure can push prices or practices to change.
“Vote with their wallet” is the idea that consumers influence the market by choosing whether to buy (or not buy) at certain prices. In this context, the host argues that if prices and payments are too high, buyers can shift demand to force dealers/manufacturers to adjust.
payments
"regardless of price going up, [342.5s] payments going up. [343.1s] It's just not going down, man."
Here “payments” means what you pay each month for the car, usually through a loan or lease. The host is saying that monthly payment pressure doesn’t automatically make car sales drop.
In car sales, “payments” usually means the monthly payment amount under an auto loan or lease. The host’s point is that even when sticker prices rise, buyers may still keep buying because monthly payments don’t necessarily fall in the short term.
franchise laws
"Why not just get rid of franchise laws? [361.5s] Why is NADA doing everything they can"
“Franchise laws” are rules that control how car brands are allowed to sell cars through local dealerships. They often limit the brand from selling directly to customers, which affects how much dealers can negotiate and how prices are set.
“Franchise laws” are state and federal rules that govern how car manufacturers can sell through dealer networks. They typically require manufacturers to work with licensed dealers and restrict direct-to-consumer sales, which strongly shapes pricing and negotiation dynamics.
direct to consumer
"Number one, the manufacturers currently do not have anything [715.1s] in their operations to support direct to consumer. [721.9s] So that is a cost."
“Direct to consumer” means buying a car straight from the manufacturer instead of going through a dealer. The host’s point is that even then, the car still has to be shipped and delivered, which creates real costs.
“Direct to consumer” (DTC) is a sales model where the manufacturer sells to the buyer without the traditional dealer acting as the middleman. In practice, the host argues manufacturers still face costs and logistics challenges—like getting cars to customers—so DTC isn’t as simple as just adding an online “buy” button.
Toyota RAV4
"So if you want to go on Toyota's website, [725.9s] you want to buy a RAV4, okay? [729.1s] So you can click the buy."
The Toyota RAV4 is a popular SUV. The host is using it as an example to explain that even if you buy online, the car still has to be delivered through the supply chain—often starting with a dealer.
The Toyota RAV4 is a compact SUV that’s commonly sold in high volumes, so it’s a good example for how distribution and inventory work. In this segment, the host uses it to illustrate how a direct-to-consumer “buy” flow still has to decide who receives the car first—dealer or customer.
destination charge
"okay, how are we going to get it to the customer? [736.4s] And number three, okay, how are we going to get it to the customer? [738.9s] So there's a destination charge, right? [741.9s] But that destination charge is calculated to shift the car [744.5s] from the manufacturing plant to the dealership"
A destination charge is the cost of getting the car from the factory to the place it’s sold. The host is arguing that if you skip the dealer and ship to one customer directly, it usually doesn’t reduce shipping cost.
A destination charge is a fee added to a car’s price to cover transporting it from the manufacturing plant to where it’s sold or delivered. Here, the host claims the destination charge is calculated to move the vehicle from the plant to the dealership, and that shipping one car directly to one customer wouldn’t be cheaper logistically.
chip shortage
"During the chip shortage, they've raised their prices. They just raised their prices of the Model Y."
A chip shortage means there weren’t enough computer chips for cars. If manufacturers can’t make as many cars, the prices can rise because supply is limited.
A chip shortage refers to a lack of semiconductor components used in modern vehicles. When chips are scarce, automakers can’t build as many cars, which can tighten supply and push pricing upward.
Tesla Model Y
"I mean Tesla didn't. During the chip shortage, they've raised their prices. They just raised their prices of the Model Y."
The Tesla Model Y is an electric SUV/crossover. The host is using it as an example that car prices can go up when parts are scarce, even for the same model.
The Tesla Model Y is a battery-electric compact crossover that became a major volume seller for Tesla. In this segment, it’s used as an example of how pricing can change quickly during supply constraints like the chip shortage.
personalized pricing
"If they knew, if they have so much data now, if they knew you were shopping at RAV4s... how do you know what makes you believe that they wouldn't suddenly raise the price for you? ... People get different coupons no matter what you're doing."
Personalized pricing means the price you see could be different from someone else’s based on what the company thinks you’ll pay. The host compares it to how apps give different coupons to different people.
Personalized pricing is the idea that a seller could adjust what you’re offered based on your behavior and data signals (like what you’re shopping for). The host argues that if OEMs know you’re shopping for specific models, they could raise your price compared with someone else who’s cross-shopping different cars.
Tucson
"who maybe they're more cross shopping with a CRD or CS5 or Tucson, they might offer them a lower price that they see on the internet."
The Tucson is a Hyundai SUV that people often compare when shopping for a crossover. The host is using it to illustrate that shoppers look at multiple models, and pricing could be targeted based on that behavior.
The Hyundai Tucson is a mainstream compact SUV that competes directly with other crossovers in the same shopping set. It’s mentioned as one of the alternatives a buyer might be comparing, which ties into the host’s argument about personalized pricing.
data
"Why maybe why do you see two different offers of coupons for the same service? Because of data."
Here, “data” means the information an app or company has about you. The host is saying that different people can get different offers because the system knows different things about them.
In this context, “data” refers to the information companies collect about you (like app usage and purchase behavior) to tailor offers. The host’s point is that two people can see different coupons or deals because the system is using different customer profiles.
loyalty app
"if you want to use the argument is that, you know, the reason why you get a discount when you download a loyalty app is you're statistically more likely to keep using the product."
A loyalty app is an app that gives you rewards or discounts for using a service. The host is saying companies discount people who are more likely to keep using it.
A loyalty app is a customer app that tracks engagement and purchases to deliver discounts or rewards. The host argues that downloading and using such an app can correlate with repeat behavior, which is why companies may offer discounts to encourage continued usage.
dealership's profit
"Again, what a dealership's profit is on a car. It does not matter to when you consume."
“Dealership’s profit” means how much money the car dealer makes from the sale. If the dealer’s profit is small, they can’t usually discount the car much more without losing money.
“Dealership’s profit” refers to the money the dealer earns on a specific car deal, typically driven by the difference between what the dealer pays (or effectively pays) and the final sale price. In negotiations, this profit margin is what limits how much discount is realistically possible without losing money.
below cost
"So you want me to go $600, but actually it was really more than that. So you want me to go $2,000 below cost."
“Below cost” means the dealer would be selling the car for less than it cost them. Dealers usually won’t do that because they’d lose money on the deal.
“Below cost” means selling a car for less than the dealer’s cost basis, which usually isn’t sustainable for the dealer. The host argues that asking for $2,000 below cost would force the dealer to lose money, which is why negotiations often hit a hard limit.
Hyundai Elantra
"...You are selling the same physical item, a Hyundai Elantra, and you are having two people pay thousands of d..."
The Hyundai Elantra is a regular, everyday car meant for commuting and errands. It’s usually sold in different versions, and the price can change based on promotions and dealer pricing. That’s why it can be used as an example when people talk about negotiating the final cost.
The Hyundai Elantra is a compact, everyday passenger car focused on practical transportation and value. It often comes up in sales and negotiation discussions because its pricing can vary by trim, incentives, and dealer offers. In a podcast about paying “thousands” for the same car, the Elantra is a common example of how the final deal price can differ from what buyers expect.
Hyundai Sonata
"Yeah, you're in the 80% because two people at your dealership can buy a Hyundai Sonata and pay thousands of dollars at a different price depending on their education level."
The Hyundai Sonata is a common, everyday family sedan. The hosts mention it to show that two people can pay different prices for the same model at a dealership.
The Hyundai Sonata is a mainstream midsize sedan from Hyundai, often used as a volume-selling example in pricing and negotiation discussions. In this segment, it’s referenced to illustrate how the same car can end up with different transaction prices at the same dealership depending on the buyer.
one-price stores
"So how do you feel about one-price stores then? One-price stores, at least I've found a decent business model. Yeah, sure. That's fine. Everybody pays the same price."
A one-price store is a dealership where the car has one set price for everyone. The idea is that you don’t haggle, so the deal feels more straightforward.
“One-price stores” are dealerships that advertise a single, fixed selling price for a vehicle rather than using negotiation to vary the final deal. The host argues this can create a more predictable, “fair” customer experience because everyone pays the same amount.
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