00:05
We're doing better as a result of social media presence.
00:09
It doesn't do those three things, then it's on the chopping block.
00:11
It's in return on investment discussion.
00:25
Hey everybody, welcome back to The Daily Dealer Live.
00:28
I'm your host Sam Dark and this is the space where all automotive comes together to learn,
00:33
to share, to grow, to have a voice in what's happening across our industry.
00:37
Whether you're a dealer, a vendor or someone just passionate about automotive,
00:41
you are in the right place this afternoon. Today I'm broadcasting live from Austin, Texas.
00:48
This weekend it's F1, props to Santander for sponsoring the race and making my attendance
00:53
here possible. It's going to be exciting to see those cars more on that soon.
00:57
But first, let's dive into today's auto industry headlines.
01:02
First up today, it's a cdgbicell.com special. You can go to cdgbicell.com for more of these
01:10
updates. U.S. Autotrust is making a major move and I just law a U.S. Autotrust is making a major
01:17
move into the luxury space by acquiring Dallas-based Boardwalk Auto Group. The deal adds Ferrari,
01:23
Lamborghini, Maserati, Pagani and Singer franchises to its growing portfolio. The acquisition brings
01:30
U.S. Autotrust to nine luxury stores joining Aston Martin, San Diego and Newport Beach,
01:35
plus Lotus of San Diego and Cadillac of Pasadena, founder Ed Glazer, who also cones the Tampa Bay
01:41
Buccaneers on the other side of the coast, says it's a milestone expansion for the group.
01:45
It's a rare transaction, too, as there are only about 50 Ferrari dealerships. I think that actually
01:51
might be 42, 43 in the country and they almost never change hands. Meanwhile, in California,
01:57
Bacchiari Auto Group has acquired Acura Fremont. That's one of the top performing Acura dealerships
02:02
in the western region from longtime dealer Bruce Kavich. Big picture. While affordability
02:08
challenges are weighing on mass market brands, dealership buyers are betting that high net worth
02:13
individuals seeking luxury and premium brands will keep the upper end of the market strong,
02:18
especially in growth regions like Texas and California. And don't forget, you can see these
02:23
deal announcements and many more throughout the entire year on the CDG Bicell Tracker at cdgbicell.com.
02:32
We've got our own jingle. I love it. Next up today, auto demand among middle-income Americans
02:37
is climbing again, despite new car prices still high and plenty of economic uncertainty in the
02:43
mix. A new third quarter study from Santander found that more than half of households earning
02:49
between $53,000 and $161,000 planned to buy a vehicle in the next year. That's up sharply from
02:55
43% a year ago and nearly three out of four say they're willing to cut back on their expenses
03:00
just to keep access to a car. Much of that demand is shifting towards used vehicles,
03:05
about eight in 10 buyers say they'd consider buying used and most say their interest in
03:11
pre-owned cars has grown over the past year. The study also found that middle-income households
03:16
are feeling a bit more confident financially. More are keeping up with bills and feeling secure
03:21
in their jobs, even though inflation is still a concern. What's the bottom line here? Well,
03:27
affordability is the name of the game, but buyers are finding ways to stay mobile. Next up today,
03:33
GM Financial is rolling out a new app designed specifically for dealers. That's not a surprise,
03:38
giving them mobile access to their captive lending data and performance metrics. I think this is
03:43
fascinating because is it a new tech or is it a trend among buyers? The app was first teased earlier
03:49
this year, but at the Auto Finance Summit in Las Vegas, CEO Susan Sheffield confirmed the pilot
03:55
is launching by the end of the week. It'll let dealers track volume, floor plan balances and
04:00
GM Financial dealer dividend points all in one place. The goal here is to make it easier for
04:05
operators to monitor performance in real time and make quicker financial decisions without having
04:10
to dig through separate systems. Bottom line here, the new app fits into GE Financial's broader,
04:17
GM Financial's broader push to modernize dealer tools, but its success will hinge on whether it
04:22
truly saves time and streamlines workflows on the showroom floor. From a dealer perspective,
04:28
we welcome anything that brings all these disparate systems together and makes access to
04:32
them so much easier, particularly in an AI world. You should be able to think it, ask it,
04:37
and get information as quickly as possible, but that's just my perspective. Finally up today,
04:42
Truecar is going private again and its original founder, Scott Painter, is back in the driver's
04:47
seat. Painter's fair holdings has agreed to acquire the company in a $227 million all cash deal
04:53
valuing Truecar at $2.55 a share. Most of the financing, that's about $164 million,
05:02
comes from Alpha Auto, an affiliate of Miami Lakes Automall with another $60 million from a group
05:09
of industry vets and investors known as, quote, the syndicate. Once the deal closes,
05:14
expected late next year, early 2026, Painter will return as CEO 10 years after stepping down,
05:21
zooming in. Truecar's revenue grew more than 10% last year, but the company still has profitability
05:27
issues and has seen its stock drop more than 90% from its post-IPOP. You can see it on the screen
05:35
here for those live years. Shares did rebound slightly on the news of the deal. Bottom line here,
05:41
completion of this transaction is subject to approval by Truecar stockholders and gaining
05:45
the appropriate regulatory approvals, but Truecar's return to private, founder-led ownership
05:51
could mark the start of a more dealer-focused era. And that's a wrap on today's industry news and
05:58
headlines. So next up, I want to welcome back Yuli. Welcome back to the show.
06:05
Looking like a million bucks, Sam. Hey, you look even better, man. How do I look in Austin? It's
06:15
and Yuli, as everybody knows, for those joining our live stream, we're live across all CDG social
06:20
media platforms. Post your comments in. We'll bring them into today's show. We'd love to know
06:24
where you are on this Friday, October 17th. And we'd love your feedback on our topics. We just
06:29
talked about Truecar's going private again, big news. And actually, our first guest up today,
06:37
it will lend some perspective into that. But we've also got a great conversation coming up on
06:42
recalls. We've talked about Ford being the number one most recalled OEM on planet earth so far year
06:51
to date. Our guest today will provide some perspective on that. And then we'll also talk
06:56
a little bit about some charitable giving and things that are going on in California.
07:00
Supervisor Dan says $1.1 billion between the two of you. Thank you. So post your comments
07:07
into the notes. We'd love to bring them into today's show. So without for how are you doing,
07:12
Yuli? Like we haven't seen you for a few days. We missed the heck out of you. We're glad to have
07:16
you back. So I'm super excited to be here. This is going to be a great episode. Yeah. All right.
07:21
Well, first up today, let's go to founder of Truecar and returning owner Scott Painter. Welcome to
07:27
the show. Sam, thanks for having me. We're excited to have you. We're excited to talk about some of
07:32
the news. Before we go into it, Scott, let's start with how's biz in your world? How do you
07:37
define biz and what does it look like? Well, you know, I think it's a pretty exciting time to be
07:42
an innovator and entrepreneur in the car space. Obviously, we've seen not just the introduction
07:46
of new technologies, but you know, electric has just transformed how we think about the business
07:51
across the board. For me personally, I've been, as you know, a longtime entrepreneur trying to
07:59
really innovate how people buy shop for and own cars. And for me, you know, this comeback is really
08:07
about recognizing that I think there's just a tremendous opportunity still out in front of us.
08:13
And clearly, the landscape is shifting the introduction of artificial intelligence. I think
08:20
has so many great opportunities to really transform and elevate the conversation between
08:25
customers and dealers. You know, having been through this before, I think I learned a lot
08:31
in true car 1.0. But one of the things we're seeing right now is just a real opportunity to bring
08:38
transparency and really digital solutions forward in a way that can elevate the customer
08:43
experience in a way that really works for dealers. So looking forward to this next chapter for sure.
08:48
So it's interesting. Well, we'll just go right into it. We'll go right into it. So
08:52
you talk about your reacquisition of true car. What's your thought? What do you see in true car
08:59
today that your expertise could lend to that company that would bring it back to,
09:06
I don't want to say relevancy, because I don't want to poke the word in there, but
09:09
would make it great again, for lack of a better way of putting it. Well, first of all, I think that,
09:14
you know, it's important to note that, you know, we're acquiring a publicly traded company. So I
09:19
almost talk about everything but true car to some degree. You've covered the news and the press
09:25
announcement speaks for itself. But I think it certainly reflects that we think that true car
09:31
has tremendous intrinsic value and a place in the auto industry. It really does provide a very,
09:38
very valid bridge between in-market car shoppers and forward-leaning dealers. And, you know,
09:48
really premier dealers that tend to be very forward-leaning, love technology and want customers
09:52
that are also leaning into technology as a way to get their next car. And I think that
09:57
where we sit in the world today, we think there's tremendous potential. I'm personally excited just
10:03
because, you know, we see so many technologies that just didn't exist five years ago. So,
10:09
you know, in terms of, you know, where we see the world going, I think we're going to be positioned
10:15
to be very relevant in that conversation. But we're also, you know, always open-minded and want
10:22
to hear from dealers who are thinking about what's next. And so, you know, since this announcement
10:28
went out, I have literally heard from everybody that's ever worked for me. I've also heard
10:32
just about everybody who's been a dealer partner. And I can say that, you know, one of the things
10:37
that is really important to get out there is how we really do want to hear from everybody. You know,
10:44
I'm pretty much an open book. I'll just publish right here on the site. My phone number is 310-200-2000.
10:51
There you go. It's got it, fair. I get so much inbound. And we are just right now really looking
10:59
at this as an opportunity to extend the partnership with the industry and in particular with
11:06
forward-leaning dealers. We've seen obviously some of these runaway successes in terms of being able
11:12
to take the conversation with a customer, make it more digital, make it more transparent, more
11:17
streamlined. I think that, you know, as cars become more autonomous, connected and electric,
11:22
and cost a little bit more, that's going to be even more important.
11:25
So let's get into what the future looks like in just a second. But let me just ask you the
11:29
question that are on some people's mind, right? So you built TrueCar. You sold it. You've built
11:34
other companies, cars direct, fair autonomy where you are now. Why not just go start over and create
11:42
TrueCar 2.0? Why invest a quarter billion dollars into the company?
11:48
Well, I'll tell you, I think the company is an incredibly valuable player in the overall
11:52
landscape. And it's much harder to break into a crowded space that has low barriers to entry,
11:57
really. I think that the auto space is something that we all have a big sort of set of feelings
12:02
about. And I think great entrepreneurs and great companies solve a real problem.
12:06
And the mission that we set out to solve on that journey is still out there as an opportunity.
12:11
I think that there is more opportunity to really provide a bridge between consumers and
12:16
dealers today than ever before. And I personally have learned so much about how to do that. I mean,
12:23
it's been a hard journey at times, but it's also been really sort of a remarkable one that gives
12:29
me a lot of perspective about what's possible. But we're not as much wanting to be a startup
12:36
as we are wanting to be a really legitimate at scale partner to the industry. And one of the
12:42
things that I personally believe in is the value of goodwill that comes through affinity
12:49
relationships. All the companies that I've ever focused on have really been built from a brand
12:55
point of view that starts with introducing trust transparency and fair play. And so whether it
13:01
was true car or fair or autonomy or any of these businesses, it's always been built on,
13:08
can we bring trust into the relation? So let's talk about that trust, right? And actually trust
13:13
was troublesome early on in true cars history to many dealers like a lot. Many dealers pushed back
13:20
on it, but you've always pushed for that transparency, even when it started controversy.
13:25
In 2025, when consumers already know invoice prices online, what does transparency mean now
13:32
today when you say that word? Yeah, I think first of all, when anything changes, it's scary. And I
13:41
think that true car 1.0 is really very much at the forefront of that transformation. And a lot
13:48
of people didn't know how to take advantage of it. I think where we stand today and the opportunities
13:52
I see in front of us, and this isn't in particular a true car thing. I think that one of the things
13:58
that was fascinating to me when I was building that company in the first round, I had to convince
14:03
investors that the internet was going to be a big deal. Was that a hard out? Was that a hard
14:09
out? I mean, we had a large number of slides in our presentation committed to the adoption curve
14:17
of the internet. Obviously, today, 100% of consumers that go shopping for a car start their
14:24
journey online. 100% rely on technology. We have a much greater trust in what we see online,
14:31
but more importantly, 100% of cars that are currently for sale are digitally discoverable
14:38
today. And there's a lot of constraints in terms of how that's evolved. We think that AI opens up some
14:44
really big questions about, you know, talk about the fear that one of the things I get
14:50
from dealers more than anything right now is how is AI going to affect me? Is it going to
14:56
eat our brains, right? AI search in particular has been a hot topic on this show
15:00
past few episodes, right? Like how do you maximize AI search so that you compliment true car,
15:08
all these other lead providers, but then also represent yourself as a dealer best?
15:12
I think there's a bigger question for the modern dealer and modern retail. Is AI going to make
15:19
my business better? Because of course, process improvement and greater efficiency, better go
15:24
to market strategies, better pricing strategies, all of that is going to be enabled by AI. And
15:29
I think we all see it in everyday life. And for me, I just find myself using AI more than I ever
15:34
thought possible. But really, what we're about to see and what I think is really going to need to
15:40
be embraced by the industry is that we're about to see the rise of agentic AI, which is really
15:45
a consumer optimization tool. And I think the fear is that if you're a retailer, will that
15:53
agentic AI optimize against my best interests? And what I believe having been through this battle
16:00
firsthand is that an ecosystem needs to find balance. It's got to be good for all. And these
16:05
things cannot be erased to the bottom. There has to be efficiency that comes from transparency,
16:11
and there has to be not just one-sided efficiency. It is interesting to have gone to NATO the last
16:17
couple of years and see how much AI is coming for process improvement and business development and
16:22
CRM improvement at the dealership, but not the revolution that's coming next. The revolution
16:28
that's coming next is a consumer driven revolution, where a consumer is going to basically say,
16:33
help me to get the entire transaction done. It's not going to just be shopping for a good deal.
16:40
It's going to be, how would Captain Kirk buy a car? And clearly, Captain Kirk is going to be
16:46
on his spaceship in a galaxy far, far away, and he's going to be able to talk to his computer.
16:53
So we're going to see the rise of natural interface computing. We're going to see the need for
16:58
retail to embrace technologies that don't even have penetration today in the same way that AI is
17:05
becoming a bigger and bigger part of daily life. Just think about the migration away from the web
17:10
and to the smartphone. Today we live on our phones. These phones are computers. They are so powerful,
17:16
but we're also very quickly moving to a reality where we're not going to be
17:23
moving sliders around in filters to see what choices we have. We're going to be simply talking
17:29
to the technology. And the technology will then go talk to the dealership and it will
17:35
finalize and complete. So is that part of your vision with these different acquisitions is to
17:38
kind of complete that process? Well, I do think that there is an exciting future state where
17:45
you're going to be able to talk to your technology and you're going to be able to, for the first
17:49
time, handle the four big elements of buying a car. It's going to be getting a good deal on the car.
17:54
It's going to be handling your trade-in, your down payment. It's going to be handling all of the
17:57
transaction tax, title registration, and actually payment of that vehicle and insurance of that
18:03
vehicle because 93% of people don't pay cash for their car, but 100% of people who buy a car must
18:09
ensure that car. Yeah. So Scott, in the beginning of true car, you were a true disruptor in the
18:15
industry and I alluded to that in the very beginning. I remember the early days, right?
18:20
Dealers pushed back on that change and many argued it was a race to the bottom. You were kind of the
18:25
first to take that approach. Do you see a similar disruption as you come in with 2.0 and this vision
18:32
of connecting these right now disparate systems to create this ecosystem where a consumer can
18:37
interact, engage, and what advice would you give to dealers about kind of leaning into that change?
18:46
It was fought initially when you did it 1.0. Do you see pushback in 2.0?
18:51
First of all, I think I'm 57. I am not the same entrepreneur I was and I've learned a lot. I have
18:58
no interest in being a disruptor per se. I think I want to take what I've learned and apply it to
19:03
the benefit of the industry. I do think this is about really connecting consumers and dealers in a
19:08
way that's going to be more efficient, more effective. I do want to move away from the mentality of
19:14
we're just a business that processes leads or we're just a business that's trying to provide
19:18
information. I believe that all these businesses that I've created touch on different points of
19:23
the overall transaction, but at the end of the day, the Holy Grail here is a more efficient
19:29
leaning in customer that results in a better transaction for the dealer that it generates
19:35
higher grosses, believe it or not, and generates in more profit. Really, the ability to reduce cost
19:40
and be more efficient is at the heart of this revolution that's coming right now. I have no
19:45
interest in being either labeled or in fact a disruptor. I want to be an enabler in the same
19:50
way that this technology, while scary, can make a dealer and make anybody in this business much,
19:56
much, much more efficient. Scott, two questions for you on that. Number one,
20:02
you mentioned takeaways and lessons learned from 1.0. I would love to get one or two big
20:07
lessons and then two, advice to a dealer today in 2025 about how to move forward in this new world,
20:13
because I think you are right. There's a big change coming, but first the lessons. What are
20:17
some of the biggest lessons? Well, I think the first lesson is to collaborate instead of trying
20:22
to take on a system. It's funny because great entrepreneurs and great companies solve a real
20:29
problem and there's no better way to define yourself by to contrast yourself as a solution
20:35
to a particular problem that people can identify with. While early days, I did a lot of that and
20:43
certainly we became a hero brand with consumers, I think what we missed in the first round is saying,
20:50
how can we collaborate with the industry? One of my partners early on, when I left
20:55
Truecar and went to FAIR and started FAIR was George Bauer, who is the former CEO and founding
21:00
CEO of Mercedes Credit Corporation, the Community Financial Services. The first thing that George
21:04
said to me is, how are we going to work with dealers? The first call he made was to our friends
21:08
at Automation. I think for me, there's been a lot of maturity and a lot of aging that has come with
21:16
how do you collaborate? I think we also have a deep understanding of auto retail, whereas
21:23
being an innovator in the early days where we were learning a lot of that in real time,
21:28
I think we're on the other side of that now. It is a big revolution of sorts that's coming.
21:34
It's a big change and many dealers get nervous at the thought of it. They need to understand it.
21:40
They need to know how to lean into it. As you come into this world of 2.0 and you seek to connect
21:46
these systems, what's your advice to dealers today in October of 2025? What's step one, step two,
21:52
step three? As we say that, Yossi, the car dealership guy just posted to social. Scott,
21:57
congrats on the acquisition. Excited to see what you do with Truecar. What advice do you give to
22:03
dealers in 2020? I would say be open-minded and curious, pull the string, but prioritize the
22:08
solutions that are going to focus on customers, not just back off as stuff. This is not just a
22:15
process improvement revolution. This is a transformational moment for consumers, how we buy
22:21
everything and how we interact with mobility. I think that whether it's the fleetification of
22:26
cars, the introduction of electric, moving to an entirely new powertrain, we are going to rewrite
22:31
all of the rules. I think the auto industry, more than anything, is safe because of its complexity
22:37
to some degree. Not as though you can even take AI today and say, go and do me, get a whole
22:43
transaction done and work around the system. The only way we're going to unlock the real value of
22:49
artificial intelligence as a superpower for consumers is to collaborate with the constituents
22:54
that are deeply embedded in that journey. That means dealers, finance companies, leasing companies,
23:00
insurance companies. That overall set means that we're also going to be 100% digital.
23:07
I think what happened in the pandemic, I spent most of my life trying to say, no, really, we
23:13
want to appeal to a modern customer. The old way of thinking about it was that a modern customer
23:19
doesn't want to confront the dealer. Well, the truth is the modern dealer isn't confrontational.
23:24
They want to help you with a good experience. What we really see is an opportunity for that
23:31
for that experience to be very efficient, very consumer friendly, but I wouldn't look at these
23:37
solutions as how is it going to necessarily make the dealership better? I would say start with,
23:44
ask the question, and this is how I come at it as an entrepreneur, everything. How is it going to
23:48
optimize and make buying and owning a car easier? I go back to this really silly analogy of how
23:54
would Captain Kirk buy a car and
