A recent ruling in Colorado allows Scout Motors to sell directly to consumers, potentially reshaping the automotive dealership landscape. Hosts Doug Tabott and Tyler Sanders, along with guest Burt Davidson, discuss the implications of this decision and the ongoing tension between traditional dealerships and direct-to-consumer sales models. They explore various fraud cases impacting the industry, including a notable multi-million dollar scheme involving a restoration business. The episode also touches on the future of car sales, the evolution of dealership practices, and the challenges posed by new entrants like Rivian and Tesla.
Automakers like Rivian are challenging state laws that block them from selling cars directly to buyers, and the legal stakes are bigger than they look. We, joined by our friend Burt Davdison from Diehl Automotive, break down why Ohio is at the center of the fight and what it could mean for the future of car buying.
"...n at 1 56pm on December 10th after someone called 911 to report that the house's front door was open o..."
The Porsche 911 is a famous sports car known for being fast and stylish. It's been around for a long time and is loved by many car enthusiasts for its unique shape and powerful engine.
The Porsche 911 is a high-performance sports car that has been in production since 1964. Renowned for its distinctive design and rear-engine layout, it has become an icon in the automotive world, often discussed for its blend of luxury, speed, and engineering excellence.
"...Scout Motors essentially is Volkswagen. So Colorado gave Scout Motors a loophole, which is a dealer license for the..."
Volkswagen is a well-known car company from Germany that makes many popular cars. They are famous for models like the Beetle and the Golf.
Volkswagen is a major German automotive manufacturer known for producing a wide range of vehicles, including the iconic Beetle and the Golf. The company has a significant global presence and is part of the Volkswagen Group, which includes several other automotive brands.
"...which is a dealer license for the manufacturer to sell direct to consumers. This has been a contentious topic for a while."
Direct-to-consumer sales mean that companies sell their products straight to customers instead of going through stores. This can sometimes make things cheaper and easier for buyers.
Direct-to-consumer sales refer to a business model where manufacturers sell their products directly to customers, bypassing traditional retail channels. This approach can lead to lower prices and a more personalized buying experience.
"Back in August of 2025, Rivian filed a lawsuit against the Ohio Bureau of Motor Vehicles in an effort to force the state to lift its ban on direct to consumer"
Rivian is a company that makes electric trucks and SUVs. They are known for creating vehicles that are designed for outdoor adventures.
Rivian is an American electric vehicle manufacturer known for its all-electric R1T pickup truck and R1S SUV. The company focuses on adventure-oriented electric vehicles and has gained attention for its innovative technology and design.
"So all the other EV manufacturers or other manufacturers who want to go to this direct to consumer model are SOL in Ohio."
The direct to consumer model means that car companies sell their cars straight to people instead of using car dealerships, which is how most cars are sold.
The direct to consumer model allows manufacturers like Tesla to sell their vehicles directly to buyers without going through traditional dealerships, which can change how cars are sold and serviced.
"Now, I know where I stand on this because I don't have a franchise at stake."
Franchise laws are rules that tell car companies how they can sell their cars, usually requiring them to work with car dealerships instead of selling directly to customers.
Franchise laws govern how car manufacturers can sell their vehicles through dealerships and often require that manufacturers use a network of franchised dealers to sell their cars.
"...the factory being the factory changes that up, you know, with Mercedes. It was it was legendary with Mercedes."
Mercedes is a car brand that makes luxury vehicles. They are known for their stylish designs and advanced technology.
Mercedes is a well-known luxury automotive brand, famous for its high-quality vehicles and innovative technology. The brand has a long history and is recognized for its performance and luxury features.
"...as cars get more expensive, the average transaction price..."
The average transaction price is the average price people pay when they buy a car. It helps understand how much cars are costing over time.
The average transaction price refers to the average amount paid by consumers for a vehicle, which can indicate market trends and consumer preferences. It is an important metric for understanding the automotive market.
"Back in 2017, when I was associated with Volvo, and I don't know if this is the case now, but Volvo came out with their poll stars and some of the other electric models..."
Volvo is a car company from Sweden that makes safe and reliable vehicles, including electric cars.
Volvo is a Swedish automotive manufacturer known for its focus on safety and innovation, particularly in the realm of electric vehicles and sustainable transportation.
"...where you leased it directly from the manufacturer, they delivered the car to the dealer and the dealer handled delivery and then after sales..."
Direct leasing means you can rent a car straight from the company that makes it, instead of going to a car dealer. This can make things easier and sometimes cheaper.
Direct leasing refers to a sales model where customers lease vehicles directly from the manufacturer instead of going through a dealership. This can streamline the process and potentially lower costs for consumers.
"...the dealer handled delivery and then after sales, which would be service."
After sales service is the help you get after buying a car, like fixing it when it breaks or answering questions about it.
After sales service refers to the support provided to customers after they purchase a vehicle, including maintenance, repairs, and customer service. This is crucial for customer satisfaction and vehicle longevity.
"But the legacy manufacturers would never survive..."
Legacy manufacturers are older car companies that have been around for a long time. They often have traditional ways of making and selling cars, which can make it hard for them to keep up with new trends like electric vehicles.
Legacy manufacturers refer to traditional automotive companies that have been in the industry for a long time, often characterized by established business models and production methods. They may struggle to adapt to new market trends, especially with the rise of electric vehicles.
"In the nineties, Ford did something called Ford Direct, where they..."
Ford Direct was a program where Ford tried to sell cars directly to people instead of going through regular car dealerships.
Ford Direct was an initiative in the 1990s where Ford attempted to take control of certain dealerships to sell cars directly to consumers, bypassing traditional dealership networks.
"All right. Corvette curmudgeon. Bert, you were down at Meekum this week and saw a lot of a lot, a lot of cars there going through auction."
The Corvette is a famous sports car made by Chevrolet. It's known for being fast and stylish, and it's a symbol of American car culture.
The Chevrolet Corvette is a sports car known for its performance and distinctive design. It has a long history and is often associated with American automotive culture.
"But you saw one extra special Corvette. Tell us about that one. I mean, you know, I went down there to see Bianco Speciale, which is the white 250 GTO."
The Ferrari 250 GTO is a very famous and expensive car that was made for racing. It's known for being one of the best cars ever made and is loved by collectors.
The Ferrari 250 GTO is one of the most iconic and valuable cars in automotive history, known for its racing pedigree and limited production. It is highly sought after by collectors.
"But this was the ultimate in the Corvette one of one minus rare."
'One of one' means that there is only one car like it in the world. This makes it very special and rare.
The term 'one of one' refers to a vehicle that is the only example of its kind, often due to unique specifications or features. This adds significant value and rarity to the car.
"...the bill is proposed to give drivers the option of installing speed limiting devices in their cars instead of losing their licenses. So if you have multiple convictions for excessive speeding..."
Speed limiting devices are tools that can be added to cars to make sure they don't go over a certain speed. This can help drivers who have gotten into trouble for speeding to drive safely without losing their license.
Speed limiting devices are electronic systems installed in vehicles that restrict the maximum speed a car can achieve. They are often used to promote safer driving habits and can be particularly beneficial for drivers with a history of speeding violations.
"The 991s are becoming increasingly desirable, especially in a manual transmission."
The 991 is a specific version of the Porsche 911 that was made from 2011 to 2019. It has updated features and a new design compared to earlier models.
The 991 is the internal designation for the seventh generation of the Porsche 911, produced from 2011 to 2019. It features a more modern design, improved technology, and enhanced performance compared to its predecessor.
"Tesla guys might say that it's because the Corvettes are tired of losing... Electric vehicles require specific fire suppression"
Electric vehicles are cars that run on electricity instead of gasoline. They have batteries that can catch fire in accidents, which makes them different from regular cars when it comes to safety.
Electric vehicles (EVs) are cars that are powered entirely or partially by electricity, using batteries instead of traditional internal combustion engines. They have unique safety considerations, especially regarding battery management and fire risks in the event of a collision.
"Electric vehicles require specific fire suppression..."
Fire suppression is how we put out fires. Electric cars might need special ways to handle fires because their batteries can be very dangerous if they catch fire.
Fire suppression refers to the methods and systems used to extinguish or control fires, especially in vehicles. In the context of electric vehicles, specialized fire suppression techniques may be necessary due to the unique risks posed by lithium-ion batteries.
"...you can still move it like there's a whole bunch of other things that you can do with hybrids you can't do with full EVs."
A hybrid vehicle uses both a gas engine and an electric motor to run. This helps save fuel and is better for the environment than cars that only use gas.
Hybrid vehicles combine a conventional internal combustion engine with an electric propulsion system. This allows them to use less fuel and produce fewer emissions compared to traditional gasoline-only vehicles.
"...Tremac already installed its manual transmission in a C8 Corvette. Whoa, yeah. Yep, yep, yep. Nice."
Tremec is a company that makes gear systems for cars, especially for sports cars that need strong and reliable transmissions to handle high speeds.
Tremec is a manufacturer known for producing high-performance manual transmissions, often used in sports and performance vehicles. They are recognized for their engineering and quality in the automotive industry.
"...they have not only developed a six-speed manual transactional for the platform..."
A manual transmission is a system in cars where the driver has to change gears by hand, using a stick and a pedal. It gives the driver more control over how the car drives.
A manual transmission is a type of vehicle transmission that requires the driver to manually shift gears using a clutch pedal and gear stick. It offers more control over the vehicle's power and speed compared to automatic transmissions.
"I know we've taken this and mounted it in our own C8 just to make sure everything clears..."
The Chevrolet C8 is the latest version of the Corvette sports car, known for its powerful engine and unique design with the engine located in the middle of the car.
The Chevrolet C8 refers to the eighth generation of the Corvette, which features a mid-engine layout and advanced performance capabilities.
"...the Ford Mustang GTD also uses Tremac's TR980-9080 dual clutch transmission..."
The Tremac TR980-9080 is a type of transmission that helps cars shift gears quickly, making them faster and more responsive.
The Tremac TR980-9080 is a dual-clutch transmission designed for high-performance vehicles, allowing for faster gear changes and improved acceleration.
"...that could also take Tremac's six-speed manual. I don't know who would manual swap a half million dollar Mustang..."
A manual swap is when someone changes a car's automatic transmission to a manual one, which can make driving more engaging for some people.
A manual swap refers to the process of replacing an automatic transmission with a manual transmission in a vehicle, often for performance or driving preference.
Select text to request an explanation
Welcome back to Switchcast Season 6. I'm your host, Doug Tabott, here with my co-host, Tyler
Sanders, Ethan Huffnagle, behind the Apparatus's Apparatus.
In the Command Center.
Apparati.
Is that the plural of Apparatus?
I like it. I'll have his dongles and plugs.
He's our international executive producer.
Resident dongle enthusiast.
Guest co-host tonight, Burt Davidson, familiar voice and or face to many of you.
He's been on a few times.
He's our resident new car industry expert.
How many dealerships are in your dealer group or how many brands?
22 franchises.
22 franchises.
Just about every brand except Highlines.
We don't have Highlines, but everything else.
Yeah. Yeah.
All right.
So he's going to weigh in on our main topic tonight.
Let's see.
Switchcast is podcast, the automotive podcast.
It's not just for car people.
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Like, subscribe, share, leave a five star review, a six star, even if you can.
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Please also sign up for our Patreon.
If you want more exclusive content, you can do that at patreon.com slash switchcast.
And our Patreon this month is Stealth Wealth.
Again, that's the only clue I'll give you.
It's a fun discussion topic though.
Let's see.
Let's do a warm up lap as always.
Need to get the jokes going, get the sarcasm in line, make sure we put our foot in our
mouth now before we get to the big topics.
But that's what the listeners like the most, I think.
Foot in your mouth?
Yeah.
Yeah.
Well, when Tim Neely's here anyway.
We're just at the point where we're dogging on him now and he's not even here.
Poor guy.
Can you help it?
Let's see.
Tyler, what is fueling this podcast?
I am drinking some Stag Junior tonight.
That is a batch 14 from like 2020.
And I think at some point I might hop into some Abraham Bowman.
That is 139 proof.
Just be a little nip.
Just a wee nip.
Jet fuel.
I think I could put that in my car and it would get me home.
All right.
Let's warm up with some frauds because nothing says switchcast like a fraud perpetuated by
somebody else, not us.
See, this is the foot in mouth thing, Doug.
All right.
From local12.com.
I don't know where it's local to, but anyway, it's local 12 man allegedly used wife's marked
Homeland Security vehicle to pose as a federal agent.
Whoa.
And help police respond to an emergency call that he placed himself.
Officers with Washington Township Police Department would dispatch to residents.
It was under construction at 1 56pm on December 10th after someone called 911 to report that
the house's front door was open on a house that's under construction.
That's worthy of calling 911.
The first actual officer to arrive was met with a Homeland Security police vehicle pulling
up to the residence.
Man exited the vehicle and identified himself as a Homeland Security police officer.
He allegedly attempted to assist officers in clearing the residence while armed holding
a handgun.
Why in the world would Homeland Security show up to a random residence check?
Why?
If this house was under construction, what is the purpose of this placing?
What is this whole room?
I don't know, but obviously they did some investigation and were like, you're not a
cop.
And this car belongs to your wife who is a Homeland Security cop and she was out of
state on a duty assignment.
So I guess he was bored and couldn't handle the temptation of having a police car in his
driveway.
And there was no real action.
So he decided to create some himself.
Sounds like he created some felonies for himself.
Seriously.
Yep.
Yep.
She might be in trouble too.
That could jeopardize her career potentially.
Right.
They did.
They did take the car.
Seized it or whatever.
I don't know what they're going to investigate in that regard, but maybe she was not supposed
to leave her keys accessible.
I don't know.
Anyway, a less funny fraud.
This is an update.
Our first video we did for the newer format, but I guess a two-year-old episode, was the
CPR restorations Andrea Nicole Doherty, the multi-million dollar fraud through selling
at the time.
It was alleged, but yeah, she's pled guilty to selling vehicles on consignment, which
she didn't own consignment cars, but they weren't even there for sale.
They were there for restoration and or she sold them multiple times to different buyers
and or sold them and then said, well, it needs a restoration.
You can pay us for the restoration and sending them fake progress pictures in order to get
more money.
This was a massive scheme.
She pled guilty in federal court a couple of weeks ago to defrauding customers of her
former business, admitting to pocketing more in 827,000 and then agreeing to pay over 8
million in restitution, which there's an old saying, you can't get blood from Iraq.
If she was already on the skids trying to do this to prop up the business, the money's
gone.
So I don't know how she's going to repay anybody.
But I know after our video that we did, a number of my customers reached out and they're
like, yeah, she owes me $600,000 or $300,000 or she sold me a car that didn't exit like
she really, really screwed some people over is pretty crazy.
We may do a full episode update on this.
But anyway, so she will be going to jail.
And as we mentioned in our video as well, the apple doesn't fall far from the tree as
Brian Doherty, her father, from whom she took over the business, was tried and convicted
in 1994 for bank fraud and interstate transportation of stolen aircraft.
There's a doozy.
We want more fraud, more fraud, more fraud.
Oh, yeah, the Tri-Color founder charged with defrauding banks.
Tri-Color was a subprime lender.
Did you deal with them?
That all?
No, no, but I've heard a Tri-Color.
Yeah.
Filed chapter seven bankruptcy in September, owing lenders in excess of $900 million,
according to the NIADA, as a result of the alleged fraudulent schemes, including double
pledging collateral and manipulating assets and collection information.
How in the world?
What bank is so dumb?
Or I don't know, Bert, help me out here.
How do you double pledge collateral to two different banks on a car?
You're like, you got to have some real imaginary document creation going on.
I would think for sure, because I mean, it's been 900 million.
I mean, a bank just doesn't loan you hundreds of millions of dollars.
And you would think unless they do some massive vetting.
So this is, this will be interesting to see the details of this, because that's,
I mean, that's a lot.
I mean, that's, that's a lot of money.
They also manipulated loan data to make delinquent accounts appear current.
Oh, yeah.
What would that gain you?
Like just the health of your company?
Well, they might have been selling the paper, you know, they might have been selling
the loans to another bank, you know, to package them up.
And so they manipulated the data to see, you know, we collect 95% of our payments
on time or something.
Gotcha. Yeah.
So, yeah, big story to unpack there.
But there's, there's our fraud trifecta wrapped up with tricolor.
Whoa. Yeah.
Did you plan that?
No, I didn't.
Nice.
That was off the cuff.
That's all I got.
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All right, our main topic today, something I've kind of had on the docket
for a while, but a recent article made me more interested in it.
There's an article from AutoNews.com, Automotive News is the publication.
Scout Motors win in Colorado sets a dangerous precedent for dealers nationwide.
Their words, not mine.
So Colorado approved a dealer license for Scout Motors, the manufacturer.
And Scout Motors essentially is Volkswagen.
So Colorado gave Scout Motors a loophole, which is a dealer license for the
manufacturer to sell direct to consumers.
This has been a contentious topic for a while.
Florida, as much as I probably would have preferred that the Republican Party have,
I always want to call him Jeb Bush, always.
What is DeSantis, Ron DeSantis, as the presidential candidate over Mr.
Orangeface, as everyone loves to call him, he signed a law into effect that banned
dealers, I'm sorry, manufacturers from selling direct to consumers.
He upheld the franchise laws there for car dealers.
Now, likely because the car dealers there are some of his big constituents,
big lobbyists, as is the case with the Ohio Auto Dealers Association.
They have a big impact on how the laws are written here.
So I fundamentally disagree with that.
Ohio has some interesting laws.
Back in August of 2025, Rivian filed a lawsuit against the Ohio Bureau of Motor
Vehicles in an effort to force the state to lift its ban on direct to consumer
vehicle sales.
Tesla is allowed to.
Tesla has an exemption in Ohio, but I think it's only for Tesla.
So all the other EV manufacturers or other manufacturers who want to go to this
direct to consumer model are SOL in Ohio.
So every state is kind of making their own rules here and their own laws.
And this is definitely uncharted territory.
Now, I know where I stand on this because I don't have a franchise at stake.
I'm an independent car dealer.
So this these rules, these laws affect me zero.
But I also, for as much as I dog on Carvana for their allegedly sketchy accounting
practices, I believe in that business model and the car dealers and salesmen who are,
you know, saying, oh, no, people always need car salesmen to help them in their
car buying journey.
I think is ridiculously short sighted thinking.
And it is indicative of how so many car dealers are stuck in the past.
So I think this is the way of the future.
So sorry for the franchise car dealers.
But Bert, you work for a 22 franchise group.
What is your take on this?
Because obviously this potentially affects you guys a lot more.
And I'm curious to hear your perspective on it.
Well, you know, yeah, I'm certainly on the other side of the coin.
I think that, you know, franchise laws have existed for a long, long time in this
country since after World War Two.
And it's there to protect the dealer from the factory, the factory from going wild
and authorizing dealerships on every corner, because there's some significant
investments that dealers have to make in order to become a franchisee.
They have to make significant investments in buildings and they have to.
It's not something that's optional.
You know, the factory has discussions with you.
They call it image compliance and they do image compliance reviews every year.
And and what they tell you to do, you got to do.
And the factory being the factory changes that up, you know, with Mercedes.
It was it was legendary with Mercedes.
They were all blue and then they woke up one morning and decided to go black.
And so, you know, and if you built this brand new facility, when blue,
you had to paint it black the next year, you were out of luck.
So that's one.
Number two is is as cars get more expensive, the average transaction price
of new cars over $50,000, the cost of carrying inventory is a tremendous
burden to a new car dealer, a tremendous burden.
And they have to carry that because the factory has certain stocking level
objectives that they want you to have throughout the year.
And they tie that to money.
They tie that to you getting better cars.
So like if you're if you decide, you know, you're not going to order cars
because you have too many cars.
Well, then when the next, you know, hot car comes out there, guess what?
You're it's not going to be first at your dealership.
You know, you're going to be the 30th guy to get it.
And and then they also the dealers bear the burden of the bad choices
that manufacturers make.
Stellanus most recently over the last three or four years.
And certainly the Volkswagen dealers.
I mean, you know, Volkswagen is only the North American market is only 10 percent
of Volkswagen's market and they treat it as such.
They they really have contempt, I think, sometimes for the for the North American
market and some of the products they give us versus some of the products
that they have overseas and in their their way I have contempt for the North
American market. Right. Right. Right. Exactly.
And give us more wagons.
Why don't people want them?
Right. Right. And why do we hate diesels?
Yeah. And and and sort of the dumbing down of some of the products
that they've given the North American market, one of the jet when they
switched the solid axle and the jet is back.
I think it was 1213 years ago.
So it's you can't compare franchise dealers to other to pizza huts
or other other industries because of the significant costs associated
with with being a dealer.
So they should be protected by these franchise laws.
However, Scout has some legal precedent here and really what what
they're going to probably turn to.
And I haven't read all the cases is what Saturn did with with General Motors.
You know, just because you were a General Motors dealer when Saturn came
out in and you know, when they announced the plan in 88 89, it was a
significant departure from the other General Motors brands and they were
going to do it in a different way and they selected specific dealers
based on their criteria to get Saturn stores.
And so there is some legal precedence probably for Scout when it comes
to denying Volkswagen dealers the ability to sell these vehicles, how
they're going to fare, I guess, depend state by state and and you know,
in dealing with with the states and how how, you know, I hate to say this,
how corrupt the states are, you know, with with in terms of the lobbying
and the donations that go on with NADA and some of the other lobbying arms.
So we'll see.
So you listed a few what I read is kind of like downsides to being a dealer
in terms of the carrying expense and the investment and expense and stuff like that.
But if you offload those to the manufacturer, like is there, I guess, one,
how does that fit into newer companies like Rivian who just who
that they don't have an established dealer network that they're quote unquote
screwing over because nobody's made any investment and they want the laws
to adapt to the new marketplace.
And, you know, is there a path forward to where and again, I kind of look
at a lot of these car dealers and you know, the stuff that we see post
on the internet is not from the best and the brightest of the CEOs and all
that because, you know, you're in operations, you know, better than the
post on Facebook groups about your your dealer complaints.
Right.
But with that said, you know, I think there's validity to the fact
that people want a better, more progressive experience like buying from
Carvana, like buying from Amazon, whatever.
And they're tired of the old dealer business model, but the dealers are
digging their heels in, or at least that's a perspective of no, no, no,
it has to be this way because it's always been this way.
Is there a happy medium to where we can allow the Rivians and the Tesla's
to operate the way they want to in a free market and not force them to have
traditional dealers, but where the dealers can also say, hey, the way we've
been doing things this whole time isn't the way of the future.
And, you know, I don't know, I just feel like it's an opportunity for
dealers to reevaluate the model and say, what is next?
How do we do this better?
How do we compete with Carvana instead of just thumbing our nose at them and
saying, well, nobody's going to buy a car online?
Yeah, I wholeheartedly agree with you.
I mean, first of all, we're our own worst enemy.
We've treated consumers terrible for a long, long time.
And, you know, there wouldn't be this desire for consumers to want to buy
direct if we're taking care of business.
I also think that if there's no established dealer network, then the
Rivians should be allowed to because there's no established dealer network
that you're screwing over.
So it's not like, you know, there's no harm, no foul there, certainly.
And I also think that that manufacturers and dealers need to get creative.
Back in 2017, when I was associated with Volvo, and I don't know if this is
the case now, but Volvo came out with a with their with their poll stars and
some of the other electric models where you leased it directly from the
manufacturer, they delivered the car to the dealer and the dealer handled
delivery and then after sales, which would be service.
And the dealer got a little bit of money, you know, for delivering the car.
And and with with new car margins shrinking the way they are, the money
you make on new cars isn't that significant.
Anyway, that's kind of what I was going to say, right?
Like I worked at a new car dealer for a little bit, very little bit.
And yeah, everybody complains about the margins.
Right. The last three years, nobody did or 2020 or 2024.
But, you know, now it's getting back to normal.
It's going into hold back, selling cars at invoice, rebates, whatever.
So if you're saying, well, we got to put ten million dollars
into the dealership branding every, you know, 10, 15 years.
We got to hold all this inventory floor plan cost risks.
And our new car margins aren't that good.
We make money on used cars and service.
Well, all of that could change.
And so if if the dealers looked at it and said, oh, OK, well,
if the manufacturer sells direct and we're just point of sale centers,
we don't have to carry inventory.
We don't have to spend all the money on the building.
We can still make money on the service and on the trade ins and the used cars.
Like I feel like that would be a win win for everybody,
but the dealers aren't seeing it that way.
They're just going, oh, if we let Rivian do this, if we change the laws,
we're just going to close like manufacturers are going to run wild.
They're going to price gouge people and all this stuff.
And I'm like, well, the dealers are price gouging.
Well, and I've that's the one thing that I've always kind of wondered in all of this
is the the the feeling that it's all going to disappear.
Like cars still need to get delivered and serviced.
And like that doesn't disappear.
The job, not all the jobs and stuff, they don't evaporate.
So like I'm wondering why that's the thought process.
But I don't know.
I'm not the one whose job is like being threatened.
Well, the one thing manufacturers like to talk out of both sides of their mouths.
It's it can be an abusive relationship at certain times.
And if you went to the manufacturers, I think when the rubber hit the road
and the manufacturers had a choice, maybe to go consumer direct,
the marketing guys would remind them that when they build stinker products,
they know their stinker products.
Now they have a bunch of stinker products that they built
and they have to build X amount in order to get their ROI.
What do they do?
They go to the dealers, they dangle carrots in front of the dealers
and say, hey, Doug, you sell a hundred of these, we're going to give you two hundred
thousand dollars.
And then the dealers since time and memorial have always come through
for the manufacturers and sold their stinky products.
You know, there's there's there's there's never any dealers sitting there
with with hundreds of three year old cars on new cars that they couldn't sell.
They always managed to sell every new car.
And I think that that the manufacturers sometimes talk out of both sides of their
mouths, legacy manufacturers.
Now, Rivian and Tesla want to do direct sales.
That's fine.
But the legacy manufacturers would never survive, never survive
if they went to a direct to consumer model, because they build too many bad
products and they don't know how to sell those products and dealers do.
The problem is, like EVs, they wouldn't realize that they made a mistake
until they had totally shot themselves in the foot to the tune of multiple
billions of dollars, screwed over all their dealers and then gone, we don't
know how to do this, you all come back now.
Right. Well, and and there's a little bit of precedent for it.
In the nineties, Ford did something called Ford Direct, where they
they they started buying up a limited number of metro area dealerships
and started to run them their selves.
And besides the dealers losing their minds and suing them, which they could
have maybe got through, they found out that selling cars was hard.
And and and, you know, it required, especially again, stinker products.
You know, it's easy to sell the hot models, but it's not so hard to move the tough stuff.
Yeah, that's what I've been thinking of, too, is, you know, the the manufacturers
kind of get the best of this because they just get to sell swaths of product
and immediately get the money from all the dealers.
And then they like, it's kind of like, OK, we've got our money.
Like you guys deal with it and they get paid instantly.
The minute they generate that invoice, they don't need that money.
It's taken out. Yeah.
It's like they don't need to actually impress the consumer.
Like they do, in a sense, because it's their brand.
Yeah. But like they just get to sell it immediately.
Yeah. And they sell to an audience that can't say no.
Yeah. It's always yes.
So they they definitely get something in return from it.
Yeah. Yeah, I just I don't know why everyone's so threatened by this
law or absence of a lot, right, the freedom, because like you said,
there is value there for everybody in the chain. Right.
So I don't know why dealers don't look at this and go,
yeah, who cares of what they want to do?
Like that just makes us define our competitive edge.
Yeah, I don't like it when the free market, which would be the dealers,
try to then like make it a less free market in order to
improve their competitive edge through legislation.
That's what I don't like about Ohio's rules.
In particular, I've ranted about this a million times.
There's sales tax credit if you trade in a vehicle on a new car, but not a used car.
Let me tell you a law written by the frigging new car lobbyists,
because it benefits them.
It gets more sales to the new car dealers as opposed to the pretty old car.
It makes me say, yeah, that is an unfair law.
That is you gaining a competitive edge through legislation,
through influence, and I'm like, just be better. Right.
Open it up and be better.
Right. And it doesn't really hurt you.
PA has tax credit both ways. Yeah.
And it's it's it's a great benefit for the consumer.
It encourages them to trade out of cars, but you're right.
That legacy law, if I could change that, I would change it tomorrow.
It's a ridiculous law.
Yeah. And you wouldn't notice any different.
You probably get more cars on trade anyway, and then you could sell.
You sell more used cars. That's right.
Because there's no new car dealers.
The old model of new car dealers, just wholesaling stuff out.
It doesn't happen anymore.
You all keep your inventory because the internet exists
and you want the margins. Right.
And nobody thinks for it.
Nobody buy nobody buys newer used based off that.
It's it's based off affordability.
So yeah. Yeah. All right.
Good talk. Good talk.
All right. Corvette curmudgeon.
Bert, you were down at Meekum this week
and saw a lot of a lot, a lot of cars there going through auction.
You said some crazy numbers on some cars and then the 50s cars
like we all knew was happening and it's going to continue to happen
are tanking in value.
But you saw one extra special Corvette.
Tell us about that one.
I mean, you know, I went down there to see Bianco Speciale,
which is the white 250 GTO,
but I stumbled upon a car that was even rarer than that
because they built 36 GTOs, right?
Or 32, 33 or 36, depending on how you look at it.
OK. But this was the ultimate in the Corvette one of one minus rare.
It was a 1982 Chevrolet Corvette. Hold on. Can't be.
No, that's not rare.
Well, he says that this is the only one that is black
with gray leather interior with less than 10,000 original miles.
And he was so proud of it.
He put it in three inch lettering across the windshield.
But not just that it is.
He's not even that confident.
He said, believe to be, right?
Believe. Yes. Very, very precise legal jargon there.
So you can it's the allegedly believed is very similar to the
Corvette faith. Yeah. The Church of Corvette.
Well, you know, he's trying to get those extra few dollars on a Wednesday afternoon
or whenever that car is selling. That's right. Yeah.
Not prime time. Right. Right.
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We've got two conflicting articles, both referencing Arizona and speeding laws this week.
Both of them are laws that have been proposed by representatives in the house
for the state of Arizona, and it is quite interesting.
Obviously, lots of things get proposed. Everybody wants to please their constituents
and see what I'm doing for you, and neither of these laws may come to anything,
but I think they are worth talking about.
So the first one from carscoops.com, and thanks to our Patreon listener Larry for the submission,
Arizona's plan for serial speeders is an ankle bracelet for your car.
The bill is proposed to give drivers the option of installing speed limiting devices
in their cars instead of losing their licenses.
So if you have multiple convictions for excessive speeding, similar to, I guess,
DUIs, when you drive drunk too much, you get nothing.
Party plates, I guess, in Ohio, but speeding is so much more dangerous
than drunk driving that they're going to say, wow, you can either lose your license
or we'll put this device in your car to use GPS tech, and it will keep them from being able
to exceed the speed limit, thereby causing lots of traffic jams.
It's the geriatric mod in your car.
Does it also turn on the left turn signal constantly?
Apparently Virginia, Washington, and the District of Columbia have already
actually enacted similar laws.
I didn't even know this was a thing.
No surprise with those states.
Yeah, this is crazy.
Can you imagine the money that went into developing this and now then rolling it out?
That money probably could have been better spent to do literally anything else.
No, because the man behind the bill is Representative Nguyen, who says he will
introduce the bill when the state legislature starts up again in January.
The company behind the man behind the bill is two companies, Smart Start and Life Safer.
Nguyen has been working with two representatives, four companies,
who produce these speed limiter devices.
There's some profit here to be made for these companies,
similar to the red light cameras and the speed cameras that we have everywhere.
If you get a fine in the mail, which I never do because I drive the speed limit,
you notice you're mailing your check, which I don't do either.
Because you don't get them in the mail, of course.
Right. But if I did, I wouldn't mail the check.
You're mailing it to like Georgia, somewhere totally out of state, out of state company.
Now, people can debate the constitutionality of that.
People have challenged some of them one, challenged some of the laws.
We're not going to get into that.
But the long and short of it is it's a profit sharing program with the municipality and the company.
Now, I do not want to allege any wrongdoing or lining of pockets,
but listen, they're politicians. We all know what lobbyists do.
We all know that if politicians' lips are moving, no.
How do you know a politician's lying?
Oh, their lips are moving.
Right. Like car salesmen. Yeah.
So, you know, it's, there's money to be made here.
Did you say it was in Arizona?
Arizona.
Barry Goldwater is rolling in his grave.
Hopefully, the libertarian don't tread on me, arm of the legislature strikes this down.
This guy is a Republican. This is a Republican representative.
Really?
Yes. And Arizona is already known for incredibly strict speeding law.
It is a very difficult state to go through on the cannonball.
They will throw you in jail for like 30 over.
Here's the crazy thing. Another Republican representative,
Nick Cupper, this one, according to Hagerty.com,
has introduced an act called RAPID, the goal of which is to get rid of the speed limit
on some rural stretches of Arizona.
I like this guy. Let's go.
Let's ignore the other one.
These two laws, it's the reasonable, imprudent Interstate Driving Act,
which is a throwback, of course, to the state of Montana,
which used to have an official daytime speed limit as reasonable, imprudent,
or 55 at night, which to me is a wide, it's a big difference.
With today's headlights, I feel like you could have a higher speed limit at night
because there's no traffic. But anyway, I digress.
Cupper explains this proposes to give motorists the power, I would say,
the freedom to decide what is and isn't a safe speed in some parts of the state.
Can't we just do that everywhere and educate our drivers properly?
Cupper explains that the idea isn't to turn Arizona roads into a free-for-all.
The speed limit would only be lifted or removed in the more remote parts of the state,
which is 90% of it, for non-commercial vehicles and during daylight hours.
So exactly like the Montana rule 40 years ago.
Well, Nick, and I don't know if it's in the middle of nowhere
and there's nobody else around you. Why does it matter if you choose to go a little bit faster?
And honestly, the making the decision I like because there are some roads that are local to us
that have like a 35 mile an hour speed limit that I don't actually like going 35 on because the roads
are piles of garbage and it's like there's a ton of people around and it's residential.
So I back it off a little bit like I'm not going 20, but it's like I'm not, you know,
doing the like 35 or five over like I'm just taking it easy because that's what feels right
in that scenario. I love this quote. Most drivers can tell the difference between a crowded city
freeway and a wide open stretch of rural interstates. But not all. Trust me.
Who are the drivers that can't? Can we just take them off the road?
Oh, most.
Doug, you've been on highways around us. You know, there are some that can't.
This is true. Oh my gosh.
Copper did note that a study performed in Montana while the state had no daytime speed limit shows
accidents and deaths went down even as the average speed increased
and that seatbelt use and driver behavior are more important than speed.
My mic wasn't in a stand. I would drop it.
We've been we've been preaching that for a long time. There's some sense in some
governing group in some states. So it's out there, Doug. We just needed to come this way.
It's out there. It's out there. There's hope. It's going to take forever. They want to do a pilot
program on one section of interstate for one year and then do studies and who knows.
Anyway, although Casey Putch has promised that if well, he promised to me anyway,
that if I voted for him, he I would like his Ohio Autobahn policy or whatever that he's going to
try to introduce or whatever. I said, well, I don't vote for people. Well, sometimes I do if I
don't know their character, but I was like, that's that's not my concern with you, Casey.
You just leave it at that. Yeah. This isn't student council where you're like,
I'll get you a soda machine if you vote for me. He's the gentleman that's challenging the vague,
right? Yes. Okay. Gentlemen is okay. That's that's a word. That's a word. He is dapper.
That's for sure. Foppish. I learned I learned a word this week because I've been catching up on
my classic literature. Foppish is a word that perfectly describes Casey Putch in one word.
Is that like F-A-U-P? F-O-P-P. Foppish. Love it. Anyway, that brings us to the props and flops
brought to you by Switchcars. And Switchcars is the enthusiast dealership where we buy and
sell cars that we like ourselves. So check out our handpicked inventory at switchcars.com and be
sure to mention Switchcars for special pricing when available. You can find more information
online at switchcars.com or come visit our showroom in Winsburg, Ohio. I got to tell you,
you said handpicked. We're so low on inventory that I think you could pick them with two hands.
But we do have a repeat offender coming in. It is a beautiful 2014 Porsche 911 C2S cab seven speed
manual 30,000 miles. Very hard to come by. The 991s are becoming increasingly desirable,
especially in a manual transmission. What color is it? Silver over black.
So with that said, we need inventory. We will buy inventory. We'll give you a cash offer within
24 hours on anything, well, not anything, but any clean, nice car that you submit. Switchcars.com
slash an offer. I think there might be some hyphens in there. Just go to switchcars.com. There's a
button right there. It takes three seconds to get there in less than five minutes to submit
the information on your car. So we'd love to have the opportunity to to buy your car. Our
flop of the week EVs have been banned from Orlando Speed World Dragway. Why? Why? Well,
Tesla guys might say that it's because the Corvettes are tired of losing.
Oh, yeah. But it is for safety, according to this press release. Is it because they burn forever?
Yeah, pretty much. That's right. That's it. They've been banned for the following risks.
And they made this decision after reviewing safety protocols put out by the manufacturers and,
you know, various departments and stuff. The battery may release toxic and flammable gas
after a collision. First responders may not be able to confirm that the car is off.
Doors may not unlock from the outside after a collision. If a driver is unconscious after the
incident, there is a chance that the chassis is live and removing the driver would put
responder at risk. The car may not roll with the power disconnected and the towing the car
with our current equipment would be impossible. Electric vehicles require specific fire suppression
systems such as water baths. So no EVs at Orlando Speed World Dragway. If I owned a drag strip,
I wouldn't have them either for that very reason. I own them no longer, but I own a storage facility
and I wouldn't allow full EVs in there. So they will still allow hybrids because it's much smaller
battery and other things like you can confirm the vehicles off, you can still move it like
there's a whole bunch of other things that you can do with hybrids you can't do with full EVs.
Our prop of the week, our prop of the week, sorry, GMauthority.com is the source Tremac
already installed its manual transmission in a C8 Corvette. Whoa, yeah. Yep, yep, yep. Nice.
Yes, they have not only developed a six-speed manual transactional
for the platform, Sean Connery reporting here, but have already bolted it into a Corvette.
So this is not speculation, this happened. Brad Dennis, a senior sales engineer said,
I know we've taken this and mounted it in our own C8 just to make sure everything clears
and everything fits. It fits, it's feasible. This does not signal an imminent factory option from
Chevrolet, a chasm exists between a transmission that bolts in and a fully functional software
integrated vehicle ready for production. Just ask Tavaresh about that.
Ah, yes. So their goal is to provide an aftermarket setup for this to be done.
And the potential extends beyond the Corvette because the Ford Mustang GTD also uses Tremac's
TR980-9080 dual clutch transmission. So logically, according to GMauthority,
that could also take Tremac's six-speed manual. I don't know who would manual swap a half million
dollar Mustang, but hey. If I had the money, I would. Yeah. Yeah. Well, if I had the money,
I wouldn't buy a Mustang. Okay, well, also that. But I don't, I mean, you know, maybe that one would
be weird because it'd be slower on track and that's specifically such a track focus thing
like the GT3RS, but it would be cool to have it in a stick. Yes, I agree. It'd be cool just to
have. If I had enough money so that I had enough extra money to spend half a million dollars on
a Mustang GTD, I would manual swap it. If I, if I, if I. But a mid-cycle production
manual transmission on a C8 would be great to boost C8 sales. Sure. Because three,
four years is when they start to get a little stale, you know. Yeah. Yeah. I just, I love it
because I think the CA is such a good car already. It is. Yeah. Ugly, but it's a good car. And
yeah, that would make it that much better.
The Sheffield brand was recently revived by Jake Turkbus, an owner of an original Sheffield
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high level of quality and specification at a value price. His first effort and a successful one
on July of 2023 was the debut of the Sheffield All Sport Diver one. It had the kind of build
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$13 his parents paid in 1970. Since that debut, Sheffield has expanded to a wider range of
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of high quality, very affordable range of automatic and quartz watches. Sheffield watches value on
merit, not just price. I love mine. So get yours at Sheffield watches.com and be sure to mention
you found them on Switchcast. Thank you for joining us for Switchcast with Doug Tabott and
Tyler Sanders produced by Ethan Huffnagle. Switchcast is an automotive entertainment and opinion show
and nothing we say should be taken very seriously. We do not give tax, investment,
legal, emotional or professional advice and the only licenses we hold are driver's licenses.
The opinions expressed on this show are exclusively held by the people pontificating at that moment
and do not reflect the values of our producers or sponsors. Our theme music is provided by Emily
and Ivory. You can stream their full album on Spotify or SoundCloud. If you like this show,
you can stream it in its entirety on your favorite audio podcast platform.
Check out switchcast.live for more info.
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