Malik Hussain, general manager at Bill Jacobs Volkswagen, shares insights on car buying strategies and the current used car market. He discusses the importance of analytics in sourcing vehicles and the challenges of low supply for certain models. Jacob Zax introduces Fasten Rewards, a credit card that offers points on auto loans and related expenses, aimed at enhancing customer retention for dealerships. James Seal, managing partner at Granbury Kia, emphasizes the significance of building customer relationships over mere transactions, sharing innovative service strategies like a valet service to improve customer experience. The episode highlights industry trends, dealership strategies, and the evolving landscape of automotive retail.
Today's show features:
Malik Hussain, General Manager at Bill Jacobs
Jacob Zachs, CEO & Founder of Fasten Rewards
James V Seale, Managing Partner at Grandbury Kia
This episode is brought to you by:
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"...faulty multimedia software that can cause center screens to turn fully or partially green or black..."
Multimedia software is the technology in cars that controls music, maps, and other entertainment features. Problems with it can make screens not work properly.
Multimedia software in vehicles refers to the systems that manage audio, video, navigation, and connectivity features. Issues with this software can affect the functionality of the vehicle's infotainment system.
"first up today Toyota is recalling nearly 400,000 Tundra and Sequoia vehicles this because of faulty multimedia software..."
The Toyota Sequoia is a big SUV that can fit a lot of people and gear, making it great for families and trips.
The Toyota Sequoia is a full-size SUV that offers spacious seating and strong towing capabilities, making it ideal for families and outdoor activities. It shares many components with the Tundra, emphasizing durability and off-road performance.
"first up today Toyota is recalling nearly 400,000 Tundra and Sequoia vehicles this because of faulty multimedia software..."
The Toyota Tundra is a large truck that people use for work or towing things. It's known for being tough and reliable.
The Toyota Tundra is a full-size pickup truck known for its durability and capability, often used for both work and recreational purposes. It has been a popular choice among truck enthusiasts for its strong performance and reliability.
"...the recall covers 2022 to 2025 Tundra models plus 23 to 25 Sequoias equipped with 14 inch infotainment displays dealers..."
A recall happens when a car company asks people to bring their cars back because there might be a problem that could make the car unsafe. They fix the issue for free to keep everyone safe.
A recall is a request to return a product, in this case, vehicles, to the manufacturer due to safety issues or defects. Recalls are often issued to ensure the safety of consumers and can involve repairs, replacements, or software updates.
"...Sequoias equipped with 14 inch infotainment displays dealers of course will update the software for free..."
An infotainment display is a screen inside a car that shows music, maps, and other information. It helps drivers stay connected and entertained while on the road.
An infotainment display is a screen in a vehicle that provides access to various multimedia functions, navigation, and vehicle settings. It enhances the driving experience by integrating entertainment and information systems.
"...most still end up in dealerships service bays for hands-on fixes which is good news for fixed ops at any dealership..."
Over-the-air updates are like getting software updates on your phone, but for cars. They let car makers fix problems or add new features without you having to go to a shop.
Over-the-air updates refer to the process of wirelessly downloading and installing software updates to a vehicle's systems. This technology allows manufacturers to fix bugs and improve features without requiring a visit to a dealership.
"...focused on reviving Jeep and possibly bringing back a new Dodge V8 muscle car..."
Jeep is a car brand famous for making tough vehicles that can go off-road. Many people enjoy driving Jeeps because they are great for adventures and outdoor activities.
Jeep is an American automotive brand known for its rugged vehicles, particularly its off-road models like the Wrangler and Cherokee. The brand has a strong heritage in outdoor and adventure-oriented driving.
"...possibly bringing back a new Dodge V8 muscle car that's a quick flip from EV to gas engines it's a big shift under new CEO..."
A Dodge V8 muscle car is a type of car made by Dodge that has a big engine called a V8. These cars are designed to be fast and powerful, and they have a classic look that many people love.
Dodge V8 muscle cars are high-performance vehicles known for their powerful V8 engines and classic American muscle car styling. They are part of a nostalgic automotive culture that emphasizes speed and performance, often associated with the 'muscle car' era of the 1960s and 70s.
"...this investment could strengthen Stellantis's standing with the Trump administration as automakers lobby for tariff relief..."
Stellantis is a big car company that makes many different brands of cars, like Jeep and Dodge. They were created when two companies merged to work together better.
Stellantis is a multinational automotive manufacturing corporation formed from the merger of Fiat Chrysler Automobiles and PSA Group. It encompasses a variety of brands, including Jeep, Dodge, Chrysler, and Peugeot, and aims to leverage synergies across its diverse portfolio.
"...the plan would extend tax rebates on U.S. assembled vehicles..."
Tax rebates are money returned to you after you pay taxes, often used to encourage buying certain things, like cars made in the U.S.
Tax rebates are refunds on taxes paid, which can incentivize consumers or businesses to purchase certain products, such as vehicles assembled in the U.S.
"...and even add new incentives for domestic engine production..."
Domestic engine production means making car engines in the same country where the cars are sold, helping local jobs and businesses.
Domestic engine production refers to manufacturing engines within a country's borders, which can support local economies and reduce reliance on imports.
"... you know everyday vehicles you know like Nissan Rogues Nissan Pathfinders I'm talking about BMW 5 series..."
The Nissan Rogue is a small SUV that is great for everyday use. It has a lot of space inside for passengers and cargo, and it's known for being good on gas.
The Nissan Rogue is a compact crossover SUV that has gained popularity for its practicality, spacious interior, and fuel efficiency. It is often discussed as a reliable choice for families and daily commuters, making it a staple in the SUV market.
"...uld look at you know Tesla very low day supply uh Acura TLX sedan low day supply I mean these cars are turni..."
The Acura TLX is a nice car that feels luxurious and is fun to drive. It's a good option if you want something fancy without spending too much money.
The Acura TLX is a luxury sedan that offers a blend of performance, comfort, and advanced safety features. It is often discussed for its value in the luxury segment, providing a sporty driving experience without the high price tag of some competitors.
"... like the Acura TLX fits that mold I'm looking at BMW 3 series instead of 5 series fits that mold perfec..."
The BMW 3 Series is a fancy small car that drives really well and feels nice inside. People talk about it because it's considered one of the best in its category for both fun and comfort.
The BMW 3 Series is a luxury compact car that is renowned for its sporty performance, upscale interior, and advanced technology features. It has been a benchmark in its class for decades, often discussed for its driving dynamics and status as a premium vehicle.
"...I do buy some niche cars that the day supply is you have to stretch out the whole country just to fit that mold..."
Niche cars are special types of vehicles that not everyone might want, but some people really love them. They often have unique designs or features that make them stand out.
Niche cars are vehicles that cater to a specific segment of the market, often appealing to enthusiasts or collectors rather than the general public. These cars may have unique features, limited production runs, or specific performance characteristics that make them desirable to a smaller audience.
"...I use Manheim often they have the best selection of vehicles they have the best sellers in my opinion..."
Manheim is a company where car dealers go to buy and sell used cars. They hold auctions, which is like a big sale where people can bid on cars.
Manheim is a leading vehicle auction company that specializes in wholesale auctions for used cars. They provide a platform for dealers to buy and sell vehicles, offering a wide selection and various services to facilitate the auction process.
"tell us about your strategy if if you have one in the service drive I think for service drive it's just like a car sale in my opinion..."
The service drive is where you take your car for repairs or maintenance at a dealership. It's important because it can also be a place where you might sell or trade in your car.
The service drive is the area of a dealership where customers bring their vehicles for maintenance and repairs. It's a critical part of the dealership's operations, as it can lead to sales opportunities for used cars that customers may want to trade in or sell.
"it's just a kbb price you know it's nothing like nothing concrete please see us in sales for more info..."
KBB price refers to the value of a used car according to Kelley Blue Book, which is a guide that helps people understand how much their car is worth. It's a common way to price cars when selling or trading them in.
KBB stands for Kelley Blue Book, a trusted resource for determining the value of used cars. The KBB price is often used as a reference point for pricing vehicles in the market.
"...what are some of the strengths and weaknesses with regard to new car acquisition right now in in the Volkswagen world..."
New car acquisition is how people buy or lease new cars from dealerships, often with special deals to encourage sales.
New car acquisition refers to the process of purchasing or leasing new vehicles from dealerships, which can involve various incentives and offers to attract customers.
"...Volkswagen just put out a great conquest offer in the chicagoland market..."
A conquest offer is a special deal that car companies use to get people who own other brands of cars to buy their cars instead.
A conquest offer is a marketing strategy used by car manufacturers to attract customers from competing brands, often involving incentives for owners of those brands to switch.
"...qualify for additional incentives on the new Tiguan and the new Tiguan is amazing..."
Incentives are special offers or discounts that car companies give to help sell their cars. They can lower the price or make financing easier for buyers.
Incentives in the automotive industry refer to discounts, rebates, or special financing offers provided by manufacturers to encourage customers to purchase vehicles. These can significantly reduce the overall cost of a new car.
"...ill qualify for additional incentives on the new Tiguan and the new Tiguan is amazing i mean you guys go..."
The Volkswagen Tiguan is a small SUV that is comfortable and has a lot of room for people and their stuff. It's popular because it looks nice and has some cool tech features.
The Volkswagen Tiguan is a compact SUV that combines practicality with a touch of European flair, offering a comfortable ride and advanced technology features. It is often highlighted for its spacious interior and versatility, making it a popular choice among families.
"...the recalls the stop sales the tariffs uh there's a lot of uncertainty right now..."
Tariffs are extra fees that the government charges on products coming from other countries. This can make cars more expensive for buyers.
Tariffs are taxes imposed on imported goods, which can affect the cost of manufacturing and selling vehicles. They can lead to higher prices for consumers if manufacturers pass on these costs.
Zero percent financing means you can borrow money to buy a car without having to pay any extra money in interest. It makes the car cheaper in the long run because you only pay back what you borrowed.
Zero percent financing is a promotional offer from dealerships where buyers can finance their vehicle purchases without paying any interest over a specified term. This can significantly reduce the overall cost of the loan.
Car
Kia Sophia
"...I sold some of the very first Kia Sophia's back in Utah back in the early 90s..."
The Kia Sophia was a small, budget-friendly car sold by Kia in the early 90s. It was one of the first cars from Kia that people in the U.S. could buy.
The Kia Sophia was a compact car produced by Kia in the early 1990s. It was known for its affordability and was one of the first models introduced by Kia in the U.S. market.
"...back in Utah back in the early 90s it was a Ford Festiva engine we were all excited about you could sell o..."
The Ford Festiva was a small, cheap car from the 90s that was great on gas. People remember it fondly because it was easy to drive and very affordable.
The Ford Festiva was a subcompact car produced in the late 1980s and early 1990s, known for its affordability and fuel efficiency. It is often mentioned nostalgically for its simplicity and practicality, appealing to budget-conscious drivers.
"...Kia is an absolute giant right now of an OEM..."
OEM means Original Equipment Manufacturer. It's a term used for companies that make parts or cars that are sold under another brand's name. Here, it means Kia makes its own cars.
OEM stands for Original Equipment Manufacturer, referring to companies that produce parts or vehicles that are sold under another company's brand. In this context, it refers to Kia as a manufacturer of vehicles.
"...we were selling we had two cars Sophia and Sportage and yeah that was for the two cars we made a..."
The Kia Sportage is a small SUV that Kia has been making since the early 90s. It's popular for being affordable and practical for families.
The Kia Sportage is a compact SUV that has been in production since 1993. It has undergone several generations of redesigns and is known for its value and practicality.
"...my partners here with the Grand Prairie Auto Group is uh they're great partners they uh have the same vision..."
Grand Prairie Auto Group is a group of car dealerships that work together to sell cars and provide services to customers. They aim to offer great customer service.
Grand Prairie Auto Group is a dealership group that likely represents multiple automotive brands, focusing on customer service and building strong partnerships in the automotive industry.
"wish you all the luck in hitting number one in your new adventure uh as owner and managing partner there at Granberry Kia thanks for being on the show"
Granberry Kia is a place where you can buy Kia cars. They also help with car repairs and loans if you need to finance your purchase.
Granberry Kia is a car dealership that sells new and used vehicles, primarily focusing on the Kia brand. They may also offer services like maintenance and financing options.
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we're doing better as a result of social media presence it doesn't do those
three things then it's on the chopping block it's in return on investment
discussion
hey everybody welcome to another episode of the daily dealer live I'm your
host Sam dark and you've landed in the gathering place for all automotive where
we learn we share and where you have a voice thanks for choosing to join us this
Monday October 6th and let's jump right into today's industry headlines first up
today Toyota is recalling nearly 400,000 Tundra and Sequoia vehicles this
because of faulty multimedia software that can cause center screens to turn
fully or partially green or black that's not good blocking the rear view
camera in certain cases according to NHTSA the recall covers 2022 to 2025
Tundra models plus 23 to 25 Sequoias equipped with 14 inch infotainment displays dealers
of course will update the software for free and customer notifications begin in late
November what's the big picture here well display and camera failures related to
back over prevention have become a major recall driver for many OEMs topping two
and a half million vehicles in Q2 alone this according to busy car and while many of these
issues can be fixed with over-the-air updates most still end up in dealerships
service bays for hands-on fixes which is good news for fixed ops at any dealership
to find out more about this recall head over to the cdg recall tracker powered by
busy car at cdgrecalls.com next up today Stellanus is preparing roughly 10 billion
dollars in new U.S. investments over the next few years with about half of that
expected to be announced in the coming weeks out according to Bloomberg sources say the
money could go toward plant reopenings and new vehicle programs in Illinois and Michigan as a
Michigander game on let's go focused on revving reviving Jeep and possibly bringing back a new
Dodge V8 muscle car that's a quick flip from EV to gas engines it's a big shift under new CEO
Antonio Filosa who's taking a different path than his predecessor Carlos Tavares instead of
leaning on Mexico and Europe Filosa wants to reclaim U.S. market share so he's pulling back
in Europe by scrapping investments and pausing production plans and he's betting that this
investment could strengthen Stellanus's standing with the Trump administration as automakers lobby
for tariff relief and speaking of tariffs President Donald Trump is considering a deal
that could dramatically ease the tariff hit for automakers building and assembling vehicles
here in the U.S. according to U.S. or according to Ohio Senator Bernie Moreno and several
several auto industry officials the plan would extend tax rebates on U.S. assembled vehicles
to five years keeping them at 3.75 percent and even add new incentives for domestic engine
production Moreno a former auto dealer told Reuters quote the signal to the car companies
around the world is look if you have final assembly in the U.S. we're going to reward you for that
and he added that the policy change could make Ford Toyota Honda Tesla and GM quote immune
from tariffs bottom line if the plan moves forward some automakers and dealers could
gain critical breathing room through steadier supply costs and pricing and that's a wrap on
the industry news for this Monday October 6th. All right back in the co-host chair today is the
Yuli the one the only Yuli D Martino Yuli what's up guys to the show and to our in our entire daily
dealer live audience watching across all our social media platforms get in those comments give us your
feedback your questions let us know where you're watching from let us know how you came to be here
on the daily dealer live this is the most watched weekly live stream show in all of
automotive so to all of our guests watching jump in participate get involved coming up today we've
got an amazing show on tap Hussein is going to join us to talk car buying hacks zacks on tackling
affordability and seal on Kia wins plus transition from a public to a larger private group which is
going to be a heck of a lot of fun speaking of these guests that we've got here today we get a
lot of requests from dealers to come on the show and we want all those requests to come in and to
respond to them if you want to join the show if you have a perspective on an issue on a relevant
topic go to cdgguest.com fill out our intake form you'll get the opportunity to meet Hannah
meet Michelle they'll go through ask you a bunch of questions and we'll bring you into the show and
we love having as many as we can and Yuli that reminds me about NADA it's still happening in
Vegas this Thursday February 5th it's the hottest ticket at NADA 2026 with special guests and top
automotive personalities will be there to be considered for formal invite just hit the link
in the show notes request to join and fill out the questionnaire spots are limited and unfortunately
we can't invite everyone so RSVP today and we hope to see you in Vegas and I'm looking forward to it
I'm looking forward to it too but guess what I'm looking forward to more Yuli this Friday we've
got an FNI round table we've got some of the best most elite FNI producers across the country
and we're getting together to talk where did FNI come from where are we today and what is the
future of finance particularly as we look at all the different things that are out there
government regulation uh uh consumer appetite affordability and yeah even some of the tech
and AI so join us Friday so you're saying this Friday is another can't miss episode it's another
can't miss episode but you got to line that up behind today because today is a can't miss episode
and it's a can't miss episode because our first guest up here today Malik Hussain general manager
at Bill Jacobs welcome to the show hey thanks for having me on welcome now Malik you and I know
each other and it took me a hot minute to remember um you're in the chicago land and you worked for
motorworks uh their infinity store and I was associated with a swiss-based insurance company
nearby we brought you in for training and it's fun here's the cool thing about automotive Malik
is we all kind of like like even if you change where you work we end up running into each other
again right which is kind of fun yeah absolutely world very very small world I mean Sam when I
first uh got the invite to be on the show I was like oh I'm so happy I get to talk to Sam again
Julia obviously I'm uh excited to talk to you as well yeah at all I didn't want to have you get
left out you know but we're never leaving Julia come on no but you know I'll tell you the times
at motorworks they were fun Sam you did teach me a lot at Zurich uh great company to be a part of
and you know I'm excited to be here and now we're both on to bigger better I had Ziggler co that
group you gentlemen Andrew at Bill Jacobs you're the GM of a Volkswagen store here in the chicago
land which is a heck of a lot of fun so let's start with the first question how's biz and tell us
along those lines a little bit about what you do at Bill Jacobs Volkswagen so yeah I run day-to-day
operations here business I'll tell you it's pretty good right now I feel like we're on a great
trajectory for to end the year strong um use cars is obviously the big challenge you know I saw
so many reports uh you know a $25,000 car is now seven years old with you know over 80,000 miles
you know I'm seeing that the case you know I source a lot of our cars at our at our dealership
you know I'm on Mannheim on ACV I'm on open lane I'm in our service drive just trying to find the
next best use car uh right now you know there's a lot of day supply issues that you know I'd like
to mention to everyone out there I mean there's cars that people like you know everyday vehicles
you know like Nissan Rogues Nissan Pathfinders I'm talking about BMW 5 series you know they're
high day supply right now people aren't buying those cars you know uh there's other uh manufacturers
that you should look at you know Tesla very low day supply uh Acura TLX sedan low day supply I mean
these cars are turning here um and that's what we should really look at like the analytics
on these type of vehicles so do you think part of the low day supply in Tesla in the Chicago
land is that driven by the expiring rebates and kind of the pull ahead thing or is there a more
are you seeing a different sort of demand in the Midwest than maybe some other dealer groups are
seeing with EVs yeah so I'll tell you that $25,000 price point is the perfect price point for first
time buyers uh somebody's looking to upgrade a 10 year old vehicle and right now Tesla fills that
void in that $25,000 market uh you know like the Acura TLX fits that mold I'm looking at BMW 3
series instead of 5 series fits that mold perfectly and we're selling you know 2021 2022 BMW 3 series
for that $25,000 price point and we are getting so many leads so many walk-ins just just traffic
on those vehicles because of that price point so Malik you you mentioned you're looking at analytics
and you're making these decisions based on cold numbers where are you going for that information
what are you pulling up and how often are you referring to that before we get into where your
best sources are so daily actually you know I'm on stock wave which is a Cox automotive product
uh and then I'm looking in the lanes every lane that I'm looking at you know whether it be Florida
Arizona Pennsylvania I'm looking at every single car you know I will tell you a lot of people make
mistakes buying cars what they like because they might be high day supply cars but yeah it looks cool
you know it has all the options but it might not fit your strategy of selling so now I'm just looking
at every car in every lane just to see you know what fits what's the day supply the like mind
day supply supply in viado is what I use you know a lot of people use a different metric but
that has worked for me in the past um you know what's the metric again Malik tell us like mind
day supply so it's that car that trim level in your specific market whether it be 10 miles away
or whether it be 500 miles away uh you know I do buy some niche cars that the day supply
is you have to stretch out the whole country just to fit that mold uh you know I usually put 25 in
a vehicle set uh you know I think that's a broad enough market you know I had many experts tell
me 15 is a good number or 20 is a good number I found 25 to be the best number for your vehicle set
when you're analyzing that car and by that you mean you're comparing it to 25 other vehicles
so you're getting a broad enough set that it's actually a credible absolutely source so you
so you mentioned watching all these different auctions and you're you're testing all of them
to see inventory where are you seeing the most success as you're importing vehicles into the
chicago land for the vehicles that sell best in your market so you know I use manheim often
they have the best selection of vehicles they have the best sellers in my opinion
people that stand behind their cars I mean it's hard to buy from someone you don't know you know
just like consumers you know if I bought in that lane before and I've had success in that lane
I'm gonna go back to that lane you know I'm gonna see what they have uh usually they have hundreds
thousands of cars you can look at but then are you are you using your time effectively if you're
looking at a thousand cars or if you're gonna look at your previous buys see what lane they came from
and repeat that cycle yeah so uh Malik Lauren Klein reports in she's watching from a flight
from Philadelphia to DFW nice so nice I think this may be our first in-air uh uh watcher so
thank you for being here uh and then old Kentucky homeboy says I'm here for the car buying hacks
and yoga car acts asks a really good question then we'll do one from Mustafa but yoga car says Malik
do you have a strategy for service drive acquisition so your big focus right now is where
do I get that elite used car we've had many people on the show reporting different strategies
tell us about your strategy if if you have one in the service drive I think for service drive
it's just like a car sale in my opinion if you're not presenting that number on paper
a hundred percent of the time you're losing business you're losing opportunity so service
advisors have you know a tool like I'll say X time my karma where all your appointments are coming
in right so you just pre-appraise every single car the service advisor or your service to sales
coordinator and put a business card or actually what we do is a placard with a price on it that's
big bold it's just a kbb price you know it's nothing like nothing concrete please see us
in sales for more info it's always a starter it's a talking point we convert so many in my
previous dealerships and currently from service to sales and we get the best cars because we
service them previously in our use car who's spearheading that initiative my use car manager
and uh the service advisor and even the service manager the service manager is bought into that
because here the more he services the more cars we can sell so they can repeat that that cycle
and you've got to feed the beast in the back and are you incentivizing them as well oh yeah
yeah everyone's incentivized all the way from service advisors to sales people to even porters
so everyone is bought in how many uh how many how many vehicles do you sell at your
Volkswagen store overall so average it's about 120 total so you do about 120 and what's the
new used split in that uh it's one to one so six months better some months worse how many vehicles
do you typically acquire out of the service drive in i would say i would say we source about 15
percent from service which is a good number we're trying to attain nine ten more yeah somewhere in
the 30 percent region uh right now what we are struggling with is obviously new cars and trying
to get these cars out of the tariffs and all stop sells for recalls and correct all the things
yeah correct so you mentioned you incentivize your teams in the service drive what does that
look like from a is it a spiff that goes from the service advisor to a salesperson is it and
how much is it how have you set that up as a yeah so it's a spiff uh that the service advisor gets
and it's 250 dollars um and they basically hand off to the salesman and they're following up
just like the salesperson and the managers are like where are we at on this deal how do we get it
are we close are we far you know they're bought in and they're keeping each other accountable
because you know there is money involved and you know obviously they want to capture everything
every every stone unturned you know they want to get that money yeah so you mentioned the new car
challenges right let's turn a little bit to the new car side Volkswagen in your case that's your
oem you're working with right now um what are some of the strengths and weaknesses with regard to
new car acquisition right now in in the Volkswagen world we don't talk to a lot of Volkswagen dealers
honestly yeah so we are the number two uh new car volume dealership in Illinois soon to be number one
who's got your beat who's number one right now uh right now it's hawk
all right hawk yes all right hawk jacob's is coming for you you know what what i love about
automotive is we compete to make each other better right so that's what's great about it so yeah
absolutely i like uh that they're setting the pace uh but we're coming after them uh obviously
right now we have to uh work every single program that they're coming out with uh Volkswagen just
put out a great conquest offer in the chicagoland market uh any uh 10-year-old or newer Honda will
qualify for additional incentives on the new Tiguan and the new Tiguan is amazing i mean you guys
gotta check it out it's uh a real game change they're coming after Honda so oh yeah since that was
how old is that promotion that conquest uh it just started five days ago okay but probably no sales
yet off of it yeah uh surprisingly we did get one on saturday so yeah people are hearing about it uh
i'll tell you it's gonna be a great great rebate uh i'm happy Volkswagen is uh going after a great
OEM what what's one of the biggest challenges you have when it relates to Volkswagen new car
inventory recalls supply availability all that um right now we are having some issues um just
i would say with the recalls the stop sales the tariffs uh there's a lot of uncertainty right
now uh but they are providing us with the great vision i mean they're a great partner to work with
i mean i don't know if you guys have worked with Volkswagen in the past they're pretty good OEM
yeah so you bring up an interesting point right with all the things that are going on the world
you're a you're a general manager you lead a team you're very much focused on use car acquisition
you're aware of all the things that are out there so tariffs and EV rebates going away and
interest rates and payment affordability what's your strategy with your team to keeping your team
focused on the mission because if you're selling 120 cars you know one to one new used
and you've got the acquisition program you have you you and your team are pretty dialed in on the
mission right oh yeah yeah we're all analytical based and you know we look past we have monthly or
sorry weekly meetings and we just go over traffic walk-in leads internet leads phone up leads and
you know i treat them as three individual showrooms phone internet and walk-in so we tackle them
each and we look over month month over month changes quarter over quarter and year over
year changes right now we are having challenges with financing i'll tell you a lot of people are
coming in their credit available is you know anywhere from zero percent all the way up to 25
percent or last year they had a lot of credit available but you know Wells Fargo is now a partner
with VW so they are our captive for our retail deals and they are stepping up huge they're a
great partner we just call them if we have a trouble deal they'll walk us through what they're
looking for and it's very transparent which so so Malik that's fascinating to me i don't know
did you see the daily dealer live news release uh early last week where we talked about how Wells
Fargo has lowered their FICO score they've gone up to 150 percent uh for some of these lower FICOs
are you seeing this actually happening because i don't have a ton of experience yeah no somebody
from wells is out there reach out for heaven sakes i haven't heard from wells in a long time but
are you having success with that and are they delivering on that uh the press release that
they are they are we haven't seen um we haven't submitted a deal that's you know over 150
percent loan the value yet so uh we do have a great clientele here we're in the south suburbs of
Chicago Naperville so we don't have too many issues with the loan the value aspect uh on deals
yeah it's just the FICOs currently uh and they're dropping uh you know i i wish i could
share with you guys the average FICO at our dealership year over year but it has dropped
considerably yeah i gotta say it's pretty exciting to see these initiatives you know
maybe this is an unpopular opinion but i love conquest programs you know so for so long you've
seen OEMs talk about like where you stand in the district and that's us eating each other's lunch
right Volkswagen dealer to Volkswagen dealer but conquest is where it's at right we want to bring
new people into the fold this compounded with a new captive i mean it sounds like an exciting time
for VW oh yeah i'm super excited that they're going after Honda you know Honda's been a powerhouse for
so long but i think Volkswagen's knocking on the door well Malik all i'm gonna tell you is we get
closer wrapping here stay away from our Honda store so i love conquest until it affects us but
again going back to it we compete in automotive in a great way so i love that part about automotive
so look as we wrap last question here you've had a few different roles throughout automotive
automotive has been a part of of your life you're in a GM role right now what's something that happened
to you in the past that really prepared you well to take on this general manager role here at Bill
Jacobs and what's a strength you brought to the table to this role that has helped you
increase your team's production increase profitability what's what's something as a
strength that you brought into that role so i'll tell you a lot of uh i work with a lot of GMs you
know when i was a salesman all the way to internet manager new car manager use car manager uh i'll
tell you the best GMs they lead from the front and it's a united front they're in day-to-day
operations of that store and they know everything they know where every decimal point is where every
deal is where we lost deals so i believe leading from the front is the only way in our current age
of automotive i think we're back to the grind and i love these times you know the strongest
will survive the survival of the fittest so we do have to leave no stones unturned i mean it is
it's a dog eat dog world and you know we're trying to be number one in the chicagoland market and
you know we gotta eat their lunch before they eat others well malik hussein it's cool as heck to
see you again it's great to run into you here it's gonna be fun to watch your continued success thanks
for sharing some of your strategies on use car acquisition on team building on even new and and
Volkswagen and OEM strategies it's been fun having you on the show today malik hussein thank you thank
you guys oh he's a good guy he would be a fun gm to work for and this is a debate you and i
every now and again have uh julie which is how how active should a gm be in store operations
should they even be desking deals every now and again i i agree with malik like you got to be in
all the details you got to be intensely curious and you got to be willing to roll up your sleeves
and and get your hands dirty now you can't always be desking deals right but you've got to be in
every detail julie yeah you got in every detail in every department absolutely 100 correct you
can't just be a one-trick pony yeah so it's fun to run back into malik all right let's talk get
appraisal pro here for just a moment before we go to our next guest uh stop losing thousands on
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appraisal pro dot com to learn more or click the link in the show notes below and you can scan the
qr code uh off to the side here as well to get more information and to get appraisal pro thanks for
sponsoring today's content and supporting the show including malik's message i think malik
is the kind of guy that would be very much in the details of everything that's going on including
a tool like get appraisal pro so thanks for supporting the show uh dav rogers says a gm
needs to be hands-on yoga cars gm roll depends on the store size and actually you know i would
agree 100 with that although i would say even some of our biggest stores those gms are very much
in all the details they are front line uh an old kentucky homeboy says thanks who's saying
dan c says wells fargo has a new leader running their retail auto uh group so maybe uh maybe
that's part of the changes the leadership has changed and so their appetite has increased but
there you heard it that's our first true test that wells is uh delivering on this uh new news
so all right without further ado let's go to our next guest ceo and founder of fasten rewards
jacob zax jacob welcome to the show hey guys thanks for having me we're pumped to have you thanks
for being here so let's ask the question and in your ceo of a company you're not yeah selling cars
but how's biz and then tell us what your biz is and tell us a little bit about who you are and
what you do yeah so biz is going great we launched uh over the summer and we launched the fasten uh
visa card we are the only credit card in the market that gives points on any auto loan
and lease rate and then instead of giving bonus points at restaurants like a lot of your credit
cards we'll give bonus points for all of your auto spend parking gas insurance tolls maintenance
car washes dmv and then you can use those points back at your dealership group so it's also a
retention tool for the group and actually talking about conquesting is someone didn't actually have
to have purchased from you to go and for you to sign them up so we use dealers as like a car
distribution channel so people can go and start advertising to everyone in their area if people
want to start getting loan and lease rates lease rates lowered by getting rewards so customer walks
through the door yeah and i sell them a car or give them service and as part of that i can sign
them up for this credit card yeah and then as they as they buy things in the automotive world not the
car right because that would be a teal of challenge i would assume right car is qualify so actually yes
so we give rewards back on the auto loan itself so people we are not actually moving the money but
people go in and connect any auto loan and lease end on the back end that is a little point of
confusion so you're not actually paying for debt with debt which is not allowed but you connect your
loan to our app you pay it off monthly just as you would and we'll give you three points effectively
lowering any auto loan and lease rate by three percent okay so net net net difference so i'm a
consumer and i'm making my payments and i'm buying gas and doing other things i'm i'm getting points
like an amix card or like chase sapphire or whatever and then those points have more value
back at the dealership where the car was purchased is that what it is exactly yeah and it's also your
whole group right so as opposed to you know the oem cards where you are really the oem's customer
right so you know they want to get you on and get you buying one of their cars for us you know we want
you to really be the dealers customer so we maybe you know you had you know you want a different
brand last time but you want to stay within your group we'll have your points be redeemable you
know at fast and partner dealership group so you can go you know you add a Toyota next time you
want a Ford and now we'll be able to go and you know you can have your points re-redeem there or
for service or you know to get your brakes change can cost 1200 bucks now you can use your points
there as well for you know the the other parts of car ownership you know that we have or even on your
next down payment but the whole key is now you're also going to get four points back on your down
payment so you know you might get one point for you know for every other credit card but we'll
give you four points for these large purchases and three points for all of your auto related spec
so so as a dealership or a dealer group I sign up to be able to offer this card to my
customers there's not a charge to me right I get what do I get back for this so we'll actually
spiff the dealership per car per card enrolled yeah so we'll actually pay we'll pay you know
whoever's the f&i manager the marketing person we'll work with your marketing team on how to go
and advertise out to your entire you know geographic region and we'll actually spiff you
per card enrolled and then we have a rewards calculator as well that says hey you know
your car is 45 grand over 70 months whatever it is now effectively your car is 40 grand so you
know really going and helping with this and you know yep sorry although you got to be careful how
you state that right because you don't want to run a foul of to you know things totally changing
the true cost of the the vehicle right you're saying after the incentive right so exactly so
we're a financial services product so we are very highly regulated right so everything we do
goes through our compliance we'll work with your compliance but like yeah everything is everything
is there and it is compliant and approved by banks and all of that so the biggest benefit to a
car dealership is it generates a little bit of revenue on their referral right and then the other
benefit is you're saying it would be retention do you have any metrics that kind of support that
retention play yeah so you know so we've only launched about five months ago so people are
just getting enough points now to start to be redeeming but you know as we kind of like our you
know our our have more data we will have more retention but you know credit card loyalty and
credit card retention is something that is incredibly well established you know throughout
every other industry right yeah we think of airlines and hotels right I mean airlines are
basically credit card companies that happen to fly people you know 70% of people who fly Delta have
a Delta account right and so this is something that you know has been worked incredibly well
across most other industries but you know dealers just haven't done it and the real hook
is we are the only credit card that's going to give you points back on your auto loan so that's
really the hook for the consumer help them lower their monthly loan and lease rate by
not effectively by 3% while also going out and uh and using those points as a redemption channel so
Jacob just so I'm understanding correctly so you mentioned a 45,000 dollar vehicle
effectively could cost you as low as 40,000 after redeeming the points and I'm not holding you to
the math of what the 3% is but in this scenario assuming a customer finances a 45,000 dollar
vehicle and then pays it off right because they're gaining points based off of how long they're
holding the loan correct no yeah so every month as they pay off their auto loan they're accumulating
yeah they're getting it's a month so if they pay off the loan in its entirety right through
whatever the 72 month term is they are you have 5,000 dollars worth of points sitting there in
this example for them to redeem towards their next vehicle yeah because they're also getting so
they're getting points on everything right if you go to Starbucks or if you're on Netflix you're
getting points for everything and then you're getting bonus points for all of the ancillary
car spend that's beyond the car right your car is not just your car it's your gas for insurance
your EV charging your tolls your parking yeah all of that can you know really really add up so
you know say you have a 15 year old and you want to buy your car we might be your primary car and
use us instead of your chase for AMX cars and now you're getting more points to use
towards that next down payment so so at what point in the process I'm still kind of so I go back in
my mind I'm trying to think in my mind in a dealership a what point would I share this with a consumer
right and then is the juice worth the squeeze is there enough benefit to me by having customers
get points and value out of that plus whatever they whatever they spend and I get back like
what do you anticipate the retention benefit to be uh to dealers so you know so our attachment
rate at certain dealers is like is you know in like 20% right so and at what point is it presented
like so it's presented in it's presented generally in FNI so we have a rewards calculator that you
just put in the car and you say hey and you know it talks about the car vehicle you know the cost
of the vehicle and then it says hey these points like like all credit card points have a cash value
and you say hey we we make an estimate that over the lifetime of your loan this is how much you're
going to spend on gas and insurance and how much you might spend on other stuff and now like over
the you know over the lifetime of your loan your car can be thousands of dollars less right I mean
you can you know it's like it's kind of people think about it with travel but now it's working
back at your dealership yeah but you got to be so careful to separate the two because you don't
want a rogue finance manager to say well hey it's less right and it's here's the effective interest
rate and all that right right your team I know research is it vets it and trains on it and then
you've got to make sure that those finance managers showing it don't don't switch it the car dealership
guy himself says pretty incredible how airlines and other industries have had this for a long time
and auto hasn't till now how come I don't think this is new in automotive right it's just kind of the
way of approaching that that's a little different share of your business yeah I mean the new thing
is the points on the auto loan at least right I mean like you know there are credit cards out there
but we are the only card at least that I know of that will give you points back on any auto loan
at least which is you know the second largest form of non-discretionary spend in the American
households you know from a car dealership guy study it's the number one issue affordability
is the number one issue for consumers and the number one issue for dealers can you make a
multiple auto loans like let's say I have three auto loans yeah you can yeah you can link multiple
auto loans uh yeah you can do that so you know you you and your wife or your kids have auto loans
yeah you can do dealerships uh white label it in some places ask for more and client online yeah um
so we do have some dealerships that we are in discussions with that but uh yeah that that that
is something that you know we can't offer for our dealer partners um for our dealer partners but
we haven't launched that yet but that is something we are working on now for and then and then yoga
cars ask the question it's a good one uh what if you have zero percent financing
doesn't matter any auto loan you spend the money we will give you three points back for
dollar on any auto loan at least yeah and then leave it to Jay a lot of pitch the softball
I'll take points for money I'm already spending so yeah Jay Jay is uh Jay is all in so uh last
question uh any any any you know as dealers are thinking about implementing a system like this
a process like this to help with retention generate a little bit of different revenue
what are some things they should watch out for and avoid as the as they go on the road on this
well one thing is you know I don't know something about that avoid but something actually a product
that we're coming out with soon is also dealers will actually be able to use our points as a call
to action so you know in the credit card world there's what's called a card linked offer that's
when you say hey I get 10x points to Home Depot and Lululemic this month right so the reason why
we all wake up with these emails every day is because 62 percent retailers broadly that offer
card linked offers see their transaction volume double from the previous year one thing we realize
is actually credit card points are actually reinsurable so instead of like Home Depot and Lululemic
just buying these points dealers can actually reinsure them and take advantage of the tax breaks
there and now you can say hey you know come buy this extended warranty we'll give you 10x points
you'll increase the sales velocity of tools and you know and also you know I think going back to
the previous point of conquesting right you know going out to everyone in your store and saying
hey you know you want to you know you like everyone in your geographic area say hey you want to get
points and start redeeming like that's really key that's really the key uh and so you know using it
as a conquesting tool using it as a loyalty tool take a real tried and true model that's worked
incredibly well but a really kind of like new way that we're looking at it which is the rewards on
the auto loan and lease and get people back into your store for their next vehicle and you know
and you know if you're if you're a car buyer and they say hey everywhere else the same car is
essentially within a few hundred bucks but we're saying hey with here with just by spending the
money it's a few thousand dollars less I mean you know who are you going to go to right I think
it's pretty pretty clear as day so so Jacob it's a newer initiative right you yeah this is something
launch over the outer space that you've done what made you think of it and and what was your
background that kind of brought you into this segment yes I was a I was a infintech actually
before there's a company doing what we're doing in the rent space called Bilt that some people may
have heard of uh they're they're doing this for rent and they have about five million card holders
in four years uh and I knew a bunch of the C-suite there I was like hey are you guys moving into
auto they said no we're moving into mortgages uh some of their C-suite came on as our early
investors and advisors and I was like hey the second largest form of non-discretionary recurring
debt in the American household is the auto loan right and so why not take this model that's worked
incredibly well in housing and bringing it to cars right you know two things you use
every day that you pay off every month and you're traditionally aren't getting rewarded for
now you can get rewarded for that and so that's uh that's that's really what we're coming on
yeah yeah well it's it's a fascinating concept and it's super interesting when you think about
again retention generating some additional revenue and giving your customers a little bit of a a leg
up on in the points world and there is there an annual fee attached to it by the way no annual fee
card it is zero dollars you can go sign up right now at fastencard.com yeah so yeah well
jakemzack ceo and founder of fasten rewards thanks for being on the show and sharing your
perspectives on on this credit card is an opportunity for attention and revenue thank you
awesome thanks for having me thanks jakem it's an interesting topic I mean you know payment
pretty cool way to tie right and tie the customer back to the group so we got a question here let's
see I got to find it in the thing somebody asked what's up with the black backgrounds never seen
anyone stream like this by the way guess what no one has ever streamed like this ever this is an
automotive first this is the living room of automotive and I'll tell you a part of the reason
why I do the black background anyway I we want us to both be similar so we're both kind of on par in
terms of our backgrounds we are in completely different locations and as coo of a large dealer
group ziggler auto group 41 locations four states I can't do a three time a week show at 1 pm eastern
every single monday wednesday friday and be in the same place I just can't do it so I have I travel
with this setup nobody knows where I am at any given time and uh I've thought about some people
have been like hey go out on the showroom floor livestream from the showroom floor have you been
on a showroom floor to cardio show like you can't it would be so tough to run this show there get
interrupted every yeah yeah seconds yeah that is a uh that is a great point and a great question
and then Tyler Leblanc I love this I just got pitch slapped and he's talking about the credit card
deal look I gotta tell you it's our job in automotive to bring on unique and interesting ideas
that's a unique and interesting idea I think we for sure pressure tested a little bit right like I
would want to make sure my finance guys and gals were super well trained in how they explained it
because I can see all sorts of ways it could go afoul but I also see how you could possibly
really do it the customer service and you could actually keep retention back to a dealer group
by by doing it that way so uh fun fun stuff fun stuff so yoga car says I think two percent
flat gives better rewards but it's a great product and idea hey it's a it's an interesting idea
and it's our job to bring those ideas out so without further ado let's turn to our third
final guest James Seal managing partner of Granbury Kia Granbury Texas James welcome to the show
hi James hi James hey we're excited to have you on the show uh and thank you for being here
let's ask you the very first question we ask everybody which is house biz and as part of that
tell us a little bit about who you are where you are and what you do you know this is great uh
Kia is setting all-time records their year-old year they're up their market shares up and so
I'm excited to be part of the Kia Group and Kia dealer James can I tell you something I got into
the car business in 91 selling Isuzu's I sold the very this is this is I remember when this made me
I sold some of the very first Kia Sophia's back in Utah back in the early 90s it was a Ford
Festiva engine we were all excited about you could sell one for 5500 bucks manual transmission
nowhere Kia is an absolute giant right now of an OEM uh we've got a Kia store and and they're
they're they're great it's a great OEM tell us a little bit about some of the strengths that Kia
brings to the market today in your market in your store why why Kia well funny you mentioned that I
got in business in 1992 and I started selling Isuzu's oh no way I started running the Isuzu's store
and then that's where I got introduced to Kia back in the early 90s and I was uh we were selling
we had two cars Sophia Sophia and Sportage and yeah that was for the two cars we made a
so the ton of them and made a lot of money and it was a great run and they started with the Sophia
and then they added the Sportage and we were excited because that was right after a consumer
report said that the trooper rolled over so we were in a bad place with Isuzu so it's fun to
think back in the world so you're winning at your current store you're you're in an interesting world
you are a GM of multiple stores at Lithia and you've only recently made this transition to managing
partner at Granbury Kia tell us a little bit about that transition for you what went into it
and why did you leave a large group for a single point with presumably a little bit of ownership
that's a great question you know so a little bit back history I've only worked
for three dealerships in 33 years and this is my count as the third dealership so I started off
at Buzz and worked there for nine years and I'm sorry 14 years and then he stated the next group
was privately owned by an individual Shahab Sahoon and we I was overseeing five stores there for them
and unfortunately he passed away in 2021 and his beautiful wife Zora decided that she didn't want
to keep the dealership so she sold them to Lithia. Lithia is a great public company they are the number
one public company in the world and they're that reason they're that for a reason they they do a lot
of things right they empower GM's to make decisions for their store and they help do it at the end
of the day they are still a public company they still have shareholders to report to they still
have you know metrics that they have to hit and so I would forward that Lithia for four years from
from august 2021 where I took it over as the running the Frisco store and I took it and we
we had great success we made it the number one key store from a ground up facility to number one in
the region and top of the nation and so the reason that I'm switching is really just I want to get
back I want to I want to challenge myself to take one more run at the the the ball and hit it out of
the park and see if we can have great success so my partners here with the Grand Prairie Auto Group
is uh they're great partners they uh have the same vision saying culture customer centric
mentality that I do and I think we can build something really great I feel like I'm steep
jobs in the garage so it's interesting you took a Kia store to number one and you're seeking to
take this Kia store to number one as well as you think about october of 2025 our marketplace all
the different things that are out there what are the top one two or three things you're focused on
in this new gig only a month or two in that's going to help you get to that number one ranking
with Kia well it's not going to happen overnight uh but the very first thing I started
tackling is uh marketing um you know sometimes when you look at a geo map and you see hey it's
not in a the the immediate percent of the major market it's 30 30 miles outside of forward so uh
it's you know we're not you know right next to all the big stores but also we don't have all
the competition that all those big stores have so I feel like I can market and go west south east
and I think I can gain market share from these other small towns and build it up you know
grandberries a small town but also with small town becomes what I really thrive about the car
business is building the relationships building the customer centric mentality getting one on
one with customers in all honesty this is unfortunately a trend for a lot of dealers some
dealers do it really well but some don't all the metrics that we use to measure our success
are transaction driven they are not customer relationship that's a good point give us an
example of a transaction metric versus a customer relationship metric your financial statement
your financial statement is the in all be all to everything that's goes on in the store right
tell me one line on that financial statement that says about the customer loyalty or the customer
retention interesting if there's nothing there and there's gonna be thousands and
thousands and thousands of meetings today because it's monday right we gotta get it right
I'm giving it to you there'll be thousands and thousands of people talking about hey we need
increase unit sales we need to increase our pbr we need to increase this this this there'll be
very few conversations on how can we gain more customers how can we make more uh relationships
so when so what how would you flip that sweat the that script you would set aside the financial
statement not permanently but for the moment what what are the things you're focusing on
in your well again don't get me wrong the financial statement is uh flipping breathing
statement for us it's what we do to go buy more stores it's what we use her for for probability
but the conversation has these had at the store level at the employee level that we're not in the
car business we're in the people business and being in the business we need to build relationships
not only customers who are trying to sell a car to the customers we're trying to service
in long term relationships and we do that through initiatives at frisco excuse me
I started a lot of initiatives that were out of the box theme uh I had a valet service
that we would come and valet their car into our service department we would do all the work we
clean it we would hand wash it we would valet it back to them and the whole point of that is
in my thinking I don't want a customer sitting in a customer waiting room for 30 40 50 60 minutes
an hour and a half for an oil change it's not a customer trick viewpoint yeah it makes no sense
to me yeah so how can we make that experience better and then we start marketing it we market it
to the to the public that hey at at our store grandberry kia we are going to be different we
don't want you coming in here to uh sit in a waiting room we want to come and get your car
we want extra VIP valet first have you been able to deliver on that that promise because in a super
busy service department that's a tough problem before you promise that you've got to be able to
deliver on it right what's your biggest obstacle to being able to deliver on the no wait so within
the purpose of 33 years I've had a lot of trial and errors I make a lot of mistakes and I've
learned from them and I try to do it I started this when I was uh uh at San Francisco and I
tried to do it internally look at what that was I was gonna say I couldn't we couldn't manage it
so I looked for a company and I found one out there called hot rod that actually is the valet
service we call them just like we call an uber we have our scheduler so that the customer can
actually get it in it and it's very professional the customer gets a text from the uh from the
service with a very professional picture of a driver that's only coming to pick up their car
when they pick up their car they take a video of the car they walk around it they text them when
they'll be back to car when they get to the dealership they take another video of the car
they send it to the customer so again it's just a lot of trial and error to make sure that you
know what we are doing is truly fulfilling our promise what what what's the name of that company
again that does the pickup drop off of the car it's called hot drop there's a couple there but the one
I used was hot drop it is it a is it a flat fee for pickup drop off or is it is per charge uh for
ride okay based on model though each one's a little different so just like an uber it's just like
but but if I understand right they're picking up the car not the customer yeah right
so instead of like saying hey you drive your car into our service department then we'll uber
you back home it's like hey you stay home we'll pick up drop off which that's that's flips the
script right there I mean that way the customer is never waiting right yeah they can go about their
day yeah no I was gonna say in James it's so refreshing to to see your view on this and I
believe you're so right you know the book atomic habits talks about this you you can't focus on
the score right because a score is a byproduct of your processes so if you focus on the processes
the score takes care of itself and it's that way really in everything in life because you know we
all want a super healthy financial statement but what's it going to get us there it's certainly
not wanting a healthy financial statement it's the details it's those one percent increases
in every department exactly 100 correct uh you know if you solely measure the end result
too much room for you know misleading doing things that we should be doing if you focus on
people like a million dollars I believe they'll spend yeah so so it's interesting you found out
about this daily dealer live show not through automotive but through a personal what you found
out about this from your wife and we're going to go into that in just a minute we're going to hear
this story but before we go there I think you bring such an interesting perspective having
worked for a large public group now having ownership in a smaller single point store
you want to go number one you obviously brought some strengths from a large company
let's call it whatever the company is and then there are things that you've said hey
I'm not going to keep and there and then you and then there are things that you're going to keep to
help you and your your goal to hit number one in this Kia store what's maybe one of the one of the
top things you learned in your prior role that you're like hey this is valuable I want to make
sure I ingrain in my team here at Granbury Kia and then what's one thing that you're going to
quickly jettison in this transition that's a very good question so let's start with the jettison
okay you know again with these great companies I've learned a lot from them and I'll continue to
learn from them I have a lot of great mentors there but one of the things that I don't agree with
matter of fact I really disagree with it is solely measuring success off of the SDNA solely
measuring your what the shareholders think well we had a you know we're going into summer months
one year and the initiative came down that it was a manager we had to cut so much so much
percent off of our personnel right one into summer months it we're about this you know literally yes
it was February that we're making this adjustment because yeah we're cycling out of the slow time
about ready to hit the money producing time and you want to cut people you're like that's insane
right yeah and I get it they're about to go into the first quarter earnings call and I want to make
sure that everything looks good so that's where you get to use in common sense this is not the
right way to do it and you look at overall you look at every store should be independent yes there
should be or measured by hey you do need to cut personnel but it doesn't have to be across the
board because if you do it across the board you're taking some of the stores that are doing
correctly doing it correctly and punishing them so so that's one of the things I would
adjacent to some of the things I would bring to this is the fact that we can do volume volume is
a mindset I'm a believer either you think you can or think you can't do what you're right
I asked you know my managers from one of the very first days I came here what's the definition of
possible well you know it's what's attainable right what's the definition of an impossible
what's not attainable what's not attainable what the definition of possible is whatever
your mind says it is what's the definition of impossible is what your mind says it is
impossible we could do we could sell cars in volume in very business it will be done I guarantee you
if we will increase volume year over year month of our month and we are investing money into our
our infrastructure we're building a brand new 12,000 square foot building that is on the amazing
year that's why I'm in a little pod right now we're you know we're investing dollars into that
building we're investing dollars in the people I'm getting the right people on the right seats to get
those uh to hit the proposal we have yeah so you're as an equity partner as a as an owner
right you're a managing partner you have ownership stake in the store how does it change how does that
ownership change your mentality in operating the store like does it keep you up at night at all or
does it just fuel you with excitement because of what you've done in the past you you know what
it's regression I'm going home excited every night yes it does give me up at night my wife will
tell you that I wake up in the middle of night and I you know because I don't want people awake I'll
go and get on the couch it took off your morning I'll start thinking I'll start writing stuff down
I'm thinking of how can we move the needle and increase sales and and make more customers and
before people we turn this control so last couple questions before we go into the the
story because I'm excited to have you share this but um what what is one of the biggest
obstacles you see between now and the end of the year economically speaking tariffs uh
you know EV credits are gone what what's that next big thing you're working on between now and the
end of the year James well I don't think it is a good year but I'm really concerned about
federal regulations getting too much into our business I think there's a time and place for
everything that I think they're too far into our business uh the EV you know tax credit for example
you have manufacturers making long-term commitments long-term changes to satisfy government mandates
and then all of a sudden they pull these you know the supporting dollars that helped us make these
changes you know EVs was the talk of the the year last year we don't sell a lot of EVs we're not
EVs Kia did really good Kia had a great EV lineup well now they're pulling back so yeah
makes it hard to think long-term and uh forecast what we're going through yeah there's the stuff
you can control the stuff you can't and you almost have to just focus on whatever you think you can
control because it will change right that's that's automotive so your wife is a real estate agent
and she came to you recently and she said hey she was talking about her car dealership guy and
you're like wait isn't that me I'm at the gym of a Kia store for Cranout Lab tell us the story
about how you came to know about us yeah it's a great story so my wife uh she actually wanted
to introduce me to y'all and and told me about you and she's a producer and she likes uh helping
people and she always says my guy my my plumber my roof or my uh uh loan officer and then one day
I heard her talking years ago and talking to one of her friends and said yeah my car guy
said that the interest rates are going down and I looked at her and said that and she said now
and what's your wife's name we got to give her props for that first name is Kristen
Kristen Kristen props props for listening to the show even before James did so thank you for
for listening you know it's fascinating to me I was recently at an event
that our Ziggler's drive for life it's a charity gallon somebody came up to Yossi and I and they're
like hey I've been listening to the show for a long time he was not even in the auto industry right
like this is good best practice content for business period and uh so even people outside of
automotive industry I think learn things and take away so James we appreciate you being on the show
sharing your perspectives wish you all the luck in hitting number one in your new adventure uh as
as owner and managing partner there at Granberry Kia thanks for being on the show thank you guys
thanks James so I got to tell you Yuli uh Lauren Klein said something that I believe
on the in the social media comment you don't see that valet service often and especially not
outside of luxury dealers amazing example of exceeding the expectation so this is the spot
we come for best practices to learn to grow your own business like I'm gonna I'm gonna research
that a little bit I want to find that out because like like everybody does it's it's like the old
Seinfeld thing anybody can take a reservation it's holding the reservation so in automotive
anybody can get an uber car there's no edge in that everybody does that which by the way
no shade to uber because it's a great service we use it all over but to be able to have a car
picked up delivered to our service and then taken back um that that's something you can
action tomorrow you could do it tomorrow right you don't need to hire and train personnel you
can just plug it into your existing uh structure I mean yeah yeah so I was uh I was I love that
idea super super impressed so well that's a wrap on today's show everybody don't forget Friday
it's our FNI round table we're gonna be excited to feature our best of automotive FNI thank you
for watching Daily Deal Alive today where we break down the biggest moves in the car business as
they happen so don't forget we're live here every Monday Wednesday Friday 1 p.m. Eastern so if this
is your world and we hope it is hit like hit subscribe turn on those notifications so you
never ever miss a beat and we'll see you next episode everybody
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