WEBVTT
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AI is moving fast.
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If you're dealing with you, ready for what's next.
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And the California Cars Act is raising the stakes.
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What needs to change at your store?
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Find out all that and more right here on CBT Live.
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Hey everyone, welcome into another edition of CBT Live right here at the CBT Automotive Network.
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Today is Wednesday, October 7th.
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I'm Jim Fitzpatrick.
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And I'm Bridget Fitzpatrick.
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Thank you so much for joining us today, everyone.
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Yep, it's gonna be a great, uh, great show.
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We have a great show coming up.
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We're gonna welcome Todd Smith, CEO of Core AI, and he's gonna be live to hear his perspective on the future of AI within your dealership.
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And the California Cars Act is now in effect.
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We'll break down what the new rules mean for dealers and what you need to be doing differently with Brian Moss, president of the California New Car Dealers Association.
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So great stuff there.
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No question.
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That California Cars Act has um caused.
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I've spoken to some dealers out in California and they're like, eh, yeah, this is really, I mean, we're talking about return uh, you know, policies and what have you on used cars and some other things.
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I'm really looking forward to our discussion with Brian today.
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He's a great guy, he does an incredible job for the association out there in California.
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He does.
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And uh so I'm I'm really interested to hear what he's got to say about this and how it's impacted the industry.
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Me too, for sure.
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Before we get to that, I would like to thank our sponsor, Force Marketing.
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Turn your data into more dealership opportunities with automotive marketing technology built for the entire customer life cycle.
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Reach in-market shoppers, reconnect with website visitors, acquire inventory, and keep customers coming back to the service drive.
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And you can learn more at forcemktg.com.
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Thank you, Force Marketing.
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Right.
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Yes.
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Run by one of the finest executives in the automotive industry.
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He's customer great parents.
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He really does.
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He really does.
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Those guys, man, they just nail it, you know?
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So we've got a few stories here.
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Yes.
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I'm getting all right.
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The FTC has dismissed its case against Asbury and three of its Texas dealerships, ending a legal fight that started back in 2024.
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We've talked about this before.
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Yep.
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The FTC had accused the dealerships of adding products.
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Adding products consumer.
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Okay, sorry.
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I I'm gonna blame the writer, which is me.
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You're blaming the writer and you?
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Okay.
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So they added products on that they that the buyers didn't agree to.
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Um they didn't agree to uh anyway.
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Got caught by the FTC on that.
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Exactly.
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So the FTC dismissed the case for procedural and resource reasons, not because Asbury was found innocent or guilty.
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So that's just done.
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Interesting.
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Okay.
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Yeah.
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Guys, the FTC's out there.
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Don't be next.
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That's right.
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You know?
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Radar.
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There's a radio.
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Radar.
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Cool.
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Go to radar and be true.
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So the charging network plans to begin training dealership employees at a few hundred locations in the first quarter of 2027.
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I see why they're doing this.
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The idea is to help the people selling EVs better understand charging so that they can explain it to the customers.
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Now, Iona is backed by eight major automakers, including Toyota, Honda, GM, Hyundai, Kia, BMW, Mercedes-Benz, and Cellantis.
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So and the network is quickly growing.
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They um had 90 active charging locations in January and 191 at the beginning of October.
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191.
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Yeah.
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Okay.
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Yeah.
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To be exact.
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That should take care of a city.
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Right.
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Okay.
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So we've got a really great show coming tomorrow.
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We are going to have two live segments.
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So we're going to have to studio here.
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That's right.
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Adam Marburger, man.
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He brings in such great uh dealers and he does.
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He does.
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He he's going to bring in, actually, we'll have dealers in here all day tomorrow getting some great content recorded for Adam's show.
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And then um Who's he bringing in that we're going to have live on the show?
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Well, we're going to have Lou Ramirez and Fred Lenart's from Dry Coffee.
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I love their podcast.
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They're going to bring the energy.
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We know that for sure.
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Yes.
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They are sure.
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Always a great, um positive, empowering.
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Whenever we talk to those guys, it's just a lot of fun and very energetic.
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They make you feel good about being in the business.
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They do.
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About the car business.
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They do.
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And we should feel good about being in the car business.
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That's right.
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Right?
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That's right.
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All right.
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So we're looking forward to both of those conversations.
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We're going to talk to um Fred and Lou first and then Adam after that.
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So we'll have two segments tomorrow.
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Tomorrow.
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But um I bring this up because we would love for you to send in your questions for them.
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We will ask them on air.
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So if you have any questions for these guys about anything, we will ask them on air.
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So you can send those questions to live L-I-V-E at cbtnews.com and we'll make sure we get to those questions.
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I wonder if they're going to bring us some coffee.
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You know, you can actually buy coffee from the Coffee Guy podcast.
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Did you know that?
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I didn't know that, but no, I do.
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They actually sell coffee.
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That might be one of the questions I asked them tomorrow.
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Let's talk about that coffee.
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Tomorrow we'll be uh very busy in here because as I said, when Adam Marberger comes in, um he brings, I think one time he brought like 12 dealer principals.
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Yeah, yeah.
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GMs and dealer principals with him and what have you.
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And uh this place, uh our studio and our we we have, I guess around 13,000 square feet total.
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Yeah.
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And uh man, it's just buzzing when he comes in with all these people.
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And in like three, four hours, he knocks out all of his content.
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We interview people in the podcast studio as well while he's doing his thing here in the in the studio.
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It's pretty exciting.
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We love it.
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We called it Marburger Day and it's really, really always a great time.
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So we're looking forward to that tomorrow.
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So be sure to send in your questions.
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Again, that's live at cbtnews.com.
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And for any questions that you have, you have any questions for me and Jim or any of the upcoming guests that we have on CBT Live.
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We would love to hear even comments, questions, and we'll make sure that we we get the to the get to those on on air.
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So that would be really fantastic.
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It might even be a question for one of our subject matter experts.
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You know, we produce 12 different shows on the CBT network, all focusing on different areas of the of the dealership operation, whether it be fixed ops or F and I or marketing or what have you.
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So uh if there's a question that you want one of our subject matters uh experts to answer, then uh send that question in and we'll get right to the right.
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Maybe it maybe it's for Dave Anderson that says, hey, how do you how do you lead people better?
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Whatever.
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Send it in and we'll get with them to answer it.
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So we are here for you.
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Yeah.
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Um so before we get to our first guest, who I'm really excited to talk about, he is an AI expert, all things AI, and he's really gonna uh I think uh what's gonna be a really great conversation with him.
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We're gonna learn a lot.
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But before we talk, is it still AI?
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Is it super simple?
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It's not SI.
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It's not SI.
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No, we changed it back.
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Okay.
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Okay.
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I think.
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So anyway, um, before we do, there is an interesting video that we want to show.
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Hey, let me tell the control room real quick to shut the earphone off so that we don't hear.
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So they're they're I know.
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We're hearing everything that they say.
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I took mine out.
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So anyway.
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You took it out?
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Yes.
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Um we love our control room, but I don't want to hear what they're talking about.
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Okay, that's good.
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They're talking, they're hard at work in there.
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They're hard at work in there.
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We can hear them.
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They really are.
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Um so anyway, we do want to um show you this video about okay, so it was this company out of Finland has um produced this video, and this is um an older generation of robots that they're getting rid of.
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Older generation.
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They did a very clever thing with them.
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Here it is.
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Here it is, check it out.
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Sorry.
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They're not people.
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You kind of feel sorry for them.
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They are people, robots are people too.
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Are they getting pushed by by Arnold?
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They they were programmed to do this.
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They're programmed to kill themselves, basically.
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Wow.
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Yeah.
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That's really something.
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Yeah.
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Hmm.
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Yeah, so anyway.
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And that's that.
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They're programmed to do this.
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Schwarzenegger had so much to do with this, he actually recommended them being jump dumped into this molten steel, but then actually it evolved into them programming this too.
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But that makes you wonder.
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Yeah, it's funny because when we first saw that, we thought it looks like an AI video, but it's it's not.
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That's a real full on production.
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Yeah, it's full-on production.
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I triple checked.
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Okay.
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So um, anyway, so I'm really excited about our next guest.
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Well, we got to ask him about this, by the way.
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Because he is the AI expert.
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He's um, you know, one of the uh industry leaders on AI, and uh he's literally written a book about it.
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Yeah, and um and uh he's the guy to ask about that video right there.
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That's right.
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So Todd There's the book.
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There it is, right?
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Intelligent dealership, how AI and data transform automotive retail.
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No, let's just talk about the book.
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We don't need to bring in mind.
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You know, we'll just Todd Smith, CEO of Core AI.
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He argues that they won't be replaced, but it will reshape where people spend their time.
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He joins us now live to talk about the dealership of the future.
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Todd, welcome to the show.
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Uh thank you for having me.
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Looking forward to our fun conversation today.
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Yes, it will be fun.
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Is it really Todd?
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He could be this could be Is it a clone?
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This could be a clone.
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Because maybe Todd, Todd's actually off on vacation in the Bahamas.
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So this clone is sitting in for him.
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No, it's good to see you, Todd.
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Thanks so much for joining us.
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No, thank you so much for having me.
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Yeah, synthetic Todd is uh showing up for meetings now.
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So there you go.
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That's right.
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You're like totally dialed in with your chat and your assistance and and and uh Claude.
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Yeah, it's unbelievable the way that it that you've got this relationship with.
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Sometimes I feel like I'm being cheated on, you know, because it's you do have a relationship.
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I'm like, can I get in on this conversation?
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No.
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The chat's got way better answers.
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Sounds like my my wife uh has her chat GPT tuned as well.
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I feel uh I'm just uh at the mercy of it constantly.
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So yeah, exactly.
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It is the future.
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So in your recently released white paper, you say the jobs don't necessarily disappear, they get rearranged.
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So talk to us about what you mean by that.
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That sounds so nice.
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We're gonna rearrange the jobs a little bit.
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I'm sorry, go ahead, go ahead.
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No, I you know, I I when I originally set out probably two plus years ago, I I had figured at least 20% of jobs would be gone.
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Yeah, just off the cuff, call center jobs, um, you know, BDCs, all these areas would be dynamically changed.
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And um, but as I've watched the industry, not only our industry, just AI itself and its capabilities evolve and what's possible, I realize that's probably not 100% accurate.
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I think we'll see a more gradual evolution inside where, and what I mean by by the change that I see happening is AI will replace tasks, of course, and yes, dealerships will lose a person here or there, but they will end up backfilling other positions uh because of efficiency.
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Think about it.
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If your service department gets 10 times more efficient between a part being ordered to be able to service the car, you're not taking cars, putting them on lifts, pulling them off, moving them to the side, putting another car on the lift while you wait for a part to show up.
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So efficiency will require more technicians.
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So headcount may not change as much as we originally thought.
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I think what we're going to see is just a shift of where the headcount lives inside the dealership.
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So yeah, for sure.
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You make the point that technicians are already a significant part of the rooftop and that their work is uh much harder to automate.
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What happens when AI starts freeing up capacity in other parts of the dealership, as you just mentioning?
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Yeah, so think about that.
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Uh, a world where look, do we need more technicians?
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Yes.
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Do we already have a massive shortage?
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Yes.
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Uh will tech fill that role?
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Probably the last role to be filled inside a dealership.
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Um, I believe, I think Steve Greenfield, there was a company they invested in called RoboTire or something that was supposed to be a robot to change tires uh on and off cars.
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Uh that one didn't go very well.
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I I think we'll see more of those try to fill the gap where humans, we just don't have enough.
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Sure.
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But just from the glide scope, I definitely feel uh that back end, which is the heart and profit center for a dealership, uh, the more efficient it gets, more profitable dealers become, um, you know, more valuable technicians become, it kind of changes the landscape of how a dealership probably operates.
00:13:34.879 --> 00:13:41.679
So now you've also said this change doesn't arrive as a big decision, it arrives on a Tuesday.
00:13:42.000 --> 00:13:43.200
What what do you mean by that?
00:13:43.600 --> 00:13:48.960
Yeah, so think about it where I think a lot of times we look for the easy button in life, right?
00:13:49.120 --> 00:13:56.799
Well, hey, let's hit the easy button, let's just add AI into our entire organization, and it's magically going to make everything perfect.
00:13:57.039 --> 00:13:59.279
That's just not what I see happening.
00:13:59.519 --> 00:14:06.320
I see lots of small bets, I see lots of iteration, trial and error, things work, things don't work.
00:14:06.480 --> 00:14:12.320
And I I meant by that happens on a Tuesday where you see these little breakthroughs.
00:14:12.480 --> 00:14:19.360
And then, you know, let's say your BDC department has six people in it, and unfortunately, one leaves.
00:14:19.519 --> 00:14:21.519
Maybe they get a better job, they go somewhere.
00:14:21.679 --> 00:14:26.000
And then you just don't backfill that position because you don't need to anymore.
00:14:26.080 --> 00:14:34.000
Yeah, AI is now taking up more and more of that workload, where before you would be now desperate to hire a new person to fill a seat.
00:14:34.240 --> 00:14:38.159
I think those seats get filled less and less through time.
00:14:39.120 --> 00:14:45.200
You also argue that dealers need to fix pay plans before they start redrawing the org chart.
00:14:45.360 --> 00:14:48.159
Why is compensation part of the puzzle here?
00:14:48.559 --> 00:14:49.360
Well, think about it.
00:14:49.519 --> 00:14:51.120
What what do we all drive from?
00:14:51.440 --> 00:14:52.399
Comp plans, right?
00:14:52.639 --> 00:14:56.240
If you want performance of your sales team, give them aggressive comp plan.
00:14:56.480 --> 00:14:56.720
That's right.
00:14:56.799 --> 00:14:59.840
And they'll work the comp plan to the nth degree, right?
00:15:00.080 --> 00:15:03.200
Now, our comp plans today are the almost the same comp plans.
00:15:03.279 --> 00:15:06.000
Well, they are since I started in the business in 1990.
00:15:06.080 --> 00:15:09.279
So 36 years almost unchanged comp plans.
00:15:09.840 --> 00:15:19.360
I think our reward structure is going to need to change because some of the money we pay people to do, that work will shift into complete automation.
00:15:19.519 --> 00:15:32.480
But maybe we shift the pay plan into more longevity of customer relationship, uh, more balanced into this CSI world, how we just maintain our customers through time and maintain that belly-to-belly relationship.
00:15:32.799 --> 00:15:35.360
So I think pay plans dictate behavior.
00:15:35.519 --> 00:15:36.960
I think we would all agree on that.
00:15:37.120 --> 00:15:37.440
Oh, yeah.
00:15:37.600 --> 00:15:42.159
And that's why I say we really should rethink our pay plans and automotive.
00:15:42.320 --> 00:15:58.559
Um, I just saw another post I thought was very interesting where they said, you know, if I was starting a dealership today, would you just give all your salespeople a six-figure salary and dynamics around that to build a better organization?
00:15:58.799 --> 00:16:02.799
Where you're not having people just always leave to the next sales job.
00:16:02.879 --> 00:16:03.120
Yeah.
00:16:03.279 --> 00:16:06.879
You're trying to re-establish how the organization runs.
00:16:06.960 --> 00:16:09.759
Because think about today, sales plans are very cutthroat.
00:16:10.000 --> 00:16:13.200
You know, salespeople fight over deals.
00:16:13.360 --> 00:16:17.840
They'll change and manipulate data inside the CRM to steal deals.
00:16:18.240 --> 00:16:19.279
I'm not saying that really.
00:16:19.919 --> 00:16:21.759
Todd, Todd, they're not doing that.
00:16:22.000 --> 00:16:22.240
Right.
00:16:22.559 --> 00:16:23.679
Say it isn't so.
00:16:24.320 --> 00:16:48.240
That really happens, but I I look at this as we probably are going to have to revisit compensation first, then the process of how people work, and then obviously ultimately layering more and more uh AI onto the organization to go from what I consider today we're at this bolt-on to becoming a truly AI native organization.
00:16:48.639 --> 00:16:49.200
Sure, sure.
00:16:49.440 --> 00:17:08.400
As a side note here, just since you brought it up, what do you think of a of the business model or a new business model in auto retail today that does change the compensation to a salary that individuals can live with and then have different uh KPIs in place to ensure that that salesperson's doing a good job?
00:17:08.559 --> 00:17:10.319
Um what what's your take on that?
00:17:10.720 --> 00:17:14.160
Yeah, look, I'm I'm open if the economics work.
00:17:14.559 --> 00:17:17.279
And I think that's the challenge uh right now.
00:17:17.519 --> 00:17:22.720
Our economics inside retail have always just been geared towards pure production of the salesperson.
00:17:22.880 --> 00:17:23.200
Yep.
00:17:23.359 --> 00:17:29.440
Um but then we added a whole nother layer of BDC, which is just made our salespeople uh inefficient, right?
00:17:29.519 --> 00:17:36.160
Because now you throw another person that's doing all the lead management, yeah, and then now there's a new space and confliction there.
00:17:36.400 --> 00:17:58.880
So I do believe we need to rework our organizations, and I do believe we're going to have to, I'm not gonna say start from a clear blank slate, but I will say we should challenge every process and position organizationally in the age of this agentic workforce that is emerging.
00:17:59.119 --> 00:17:59.599
Yeah, yeah.
00:17:59.839 --> 00:18:00.000
Right.
00:18:00.319 --> 00:18:03.119
So, Todd, you have what you call the swap test.
00:18:03.200 --> 00:18:07.119
If you cancel a vendor tomorrow, what do you still have on Monday?
00:18:07.279 --> 00:18:10.240
Why is this such an important question for dealers to ask?
00:18:11.119 --> 00:18:16.160
Well, I look at that question as a very specific one around two things.
00:18:16.400 --> 00:18:20.400
One, if I swapped a technology, what changes?
00:18:21.279 --> 00:18:25.839
And if nothing really changes, how valuable was that technology?
00:18:26.480 --> 00:18:33.200
Meaning, like if you had a piece of technology and you got rid of it, did your processes really change organizationally?
00:18:33.359 --> 00:18:39.119
Did you have to completely rework the org now that you're missing that piece of technology?
00:18:39.359 --> 00:18:42.319
In many cases, the dealership would go on.
00:18:42.480 --> 00:18:44.640
They cancel technology every week, right?
00:18:44.799 --> 00:18:46.559
And they just keep going on.
00:18:46.880 --> 00:18:53.519
The other side of that is what do you keep when you cancel that technology?
00:18:53.759 --> 00:19:10.799
So if organizationally, let's say you worked with a voice tool that you have now trained on handling your customers in service, and you keep tweaking it, you give it more instructions, you make it better and better, now you cancel that service.
00:19:11.039 --> 00:19:12.240
What do you keep?
00:19:12.400 --> 00:19:18.720
And if you don't keep that intelligence, it's not owned by the dealership, you're a renter.
00:19:19.039 --> 00:19:28.640
And think about that type of future where how will you grow exponentially if you're restarting every time you change out the tech on top?
00:19:28.960 --> 00:19:29.279
Good point.
00:19:29.519 --> 00:19:30.319
That's a big change.
00:19:30.640 --> 00:19:36.000
And I think we need to think differently uh and run from a data first layer.
00:19:36.240 --> 00:19:44.480
And that, you know, I wrote a book about this, but that to me is the number one driving force that I think we have to start thinking separate.
00:19:45.119 --> 00:19:47.599
And there's the book the intelligent dealership.
00:19:48.160 --> 00:19:53.359
Uh you say that dealers need their own operational record, not just rent access to it.
00:19:53.599 --> 00:19:56.400
What does uh owning the record look like?
00:19:56.960 --> 00:19:57.839
Yeah, think about it.
00:19:57.920 --> 00:20:05.839
Uh dealers you can now extract data from DMS, CRM, call services, uh payroll companies.
00:20:06.079 --> 00:20:08.640
All that data has inherent value.
00:20:08.880 --> 00:20:16.400
And it has compounding value the more you have of it and the more it's cleaned up, normalized into something the dealership actually owns.
00:20:16.559 --> 00:20:18.799
So I always recommend a dealership.
00:20:18.880 --> 00:20:26.160
We we set up dealers in a what's called S3 bucket, an AWS instance uh where they actually own their data.
00:20:26.319 --> 00:20:34.000
No matter what happens, no matter what vendor they decide to switch at the higher up, um their data stays preserved.
00:20:34.160 --> 00:20:35.920
And there's huge value in that.
00:20:36.079 --> 00:20:44.559
Um think about it, all these foundational models, the ChatGPTs, clause of the world, they depend on data to build that intelligence layer.
00:20:44.720 --> 00:20:50.319
And I think dealers need to think in a smaller version of that for their own operation.
00:20:50.559 --> 00:20:53.039
Because right now we're all people driven, right?
00:20:53.200 --> 00:20:54.000
Think about that.
00:20:54.160 --> 00:20:59.920
We hire people, we hire better people, and then when those people leave, all of that intelligence walks out the door.
00:21:00.319 --> 00:21:10.640
Dealers need to build a system to start to capture that intelligence internally and build ultimately new processes from what the system has learned about how it does business.
00:21:11.839 --> 00:21:32.240
Um I I've asked this question of others that are in the industry and on the AI side of the industry, and and that is there there was a dealer that I spoke to that's a large uh volume dealer and has got a number of rooftops, and he said over the course of the next five to ten years, he feels he should be able to run his dealership group on about 25% less headcount because of AI.
00:21:32.480 --> 00:21:39.200
Do you think that that's that he's he's on onto something there or that uh not so fast or not so fast?
00:21:39.519 --> 00:21:48.480
Look, I think I always said in the beginning it was probably 20% of people inside a store are doing things that computers could easily do today.
00:21:48.960 --> 00:21:52.960
Um that that roadmap to get there is very complex.
00:21:53.440 --> 00:21:59.359
One, we have software that's tied to OEMs that inhibits this complete automation.
00:22:00.160 --> 00:22:08.480
Um obviously being able to, let's say, just access DMS data to submit warranties, not very easy today.
00:22:08.640 --> 00:22:12.079
There's no uh automatic electric transmission for that.
00:22:12.319 --> 00:22:14.880
A human has to log in and do that work.
00:22:15.119 --> 00:22:25.599
And, you know, headless browsers, which we call just being able to let the software access those systems, breaks a lot of terms and services agreements inside contracts.
00:22:25.839 --> 00:22:33.759
And we've really hardened the internet over the last 25 years to be anti-bot, to be anti-crawling by these tools.
00:22:33.839 --> 00:22:36.160
So that also changes the dynamic a little bit.
00:22:36.319 --> 00:22:42.720
So I think it'll take a little bit of time, uh, but that time will be a pretty accelerated curve, right?
00:22:42.799 --> 00:22:42.960
Yeah.
00:22:43.279 --> 00:22:52.240
I just saw over the next couple years, our biggest lifts will just change organizationally by changing how we look at technology.
00:22:52.400 --> 00:22:58.000
Instead of bolting it on, which what we've done over the last 30 years, uh, we'll kind of look at it.
00:22:58.160 --> 00:23:05.680
Well, how could I rethink this process and leverage AI to help me execute what I'm already trying to do?
00:23:06.079 --> 00:23:19.599
Which could be sell a car, desk a deal, um, follow up on service, um, maintain a relationship with a customer, follow up on a bad CSI uh survey, things like that.
00:23:19.839 --> 00:23:20.400
Yeah, yeah.
00:23:20.559 --> 00:23:24.559
Now, every book author that I speak to is always working on the next book.
00:23:24.720 --> 00:23:25.680
Is that the case with you?
00:23:25.759 --> 00:23:31.599
Or do you are you already either working on it or you have one in your mind that you're like, oh, I want to I want to write a book about this?
00:23:32.000 --> 00:23:35.200
Yeah, I'm already part of that work on it.
00:23:35.279 --> 00:23:37.359
Yeah, so I yeah, well, why not?
00:23:37.519 --> 00:23:39.440
Yeah, I feel like a lot changes.
00:23:39.599 --> 00:23:39.920
Sure.
00:23:40.079 --> 00:23:44.000
Um, and there's a lot to write about, and I like to write.
00:23:44.160 --> 00:23:48.720
So I feel like getting my thoughts out on paper is a fun exercise every morning.
00:23:48.880 --> 00:23:49.119
Sure.
00:23:49.279 --> 00:23:53.279
Uh we'll we'll see if the book actually fully comes to fruition.
00:23:53.440 --> 00:24:27.440
Um, but I'm definitely uh in the throes of continuing to write about our not only our industry, but the technology in general and just how do we how do we interact with it that we can get the most out of it, uh become success more successful or operationally, and uh and also don't lose sight of what we're you know trying to do, which is you know build a great company of a great team, um, and obviously you want to make it profitable, but you know, killing 75% of your people out of your organization doesn't really help, I think, uh, to do that.
00:24:27.680 --> 00:24:31.359
But look, the reality is our entire lives are going to change, right?
00:24:31.519 --> 00:24:32.480
Yeah, they're already changing.
00:24:33.119 --> 00:24:33.680
Yeah, already.
00:24:33.920 --> 00:24:35.920
I just think we're gonna see an acceleration of that.
00:24:36.240 --> 00:24:36.559
That's right.
00:24:36.720 --> 00:24:40.079
My wife is already uh closer to the AI than you are to me.
00:24:40.319 --> 00:24:43.200
You just listen to it.
00:24:43.359 --> 00:24:44.480
Like that's understandable or the one.
00:24:45.839 --> 00:24:46.480
Show it's a she.
00:24:46.799 --> 00:24:47.359
She understands me.
00:24:48.880 --> 00:24:49.759
It's a she's okay.
00:24:52.799 --> 00:24:53.359
It really is.
00:24:53.440 --> 00:24:53.680
I know.
00:24:54.559 --> 00:24:56.240
The world is though, like, think about it.
00:24:56.319 --> 00:24:59.039
If we can help us do the things we are doing, right?
00:24:59.119 --> 00:25:03.359
I I'm taking my wife to I'm doing a 20 group up in New York in a few weeks.
00:25:03.519 --> 00:25:08.319
And uh my wife wanted to go because we're staying at a very nice hotel, which is totally always works out like that.
00:25:08.640 --> 00:25:09.119
By the way, yes.
00:25:09.359 --> 00:25:12.400
Yeah, but then she's like, oh, let me plan out our time.
00:25:12.480 --> 00:25:14.880
So she has a lunch planned at I guess Tiffany's.
00:25:14.960 --> 00:25:15.599
You can eat lunch there.
00:25:15.920 --> 00:25:16.480
I did not know this.
00:25:17.039 --> 00:25:19.519
Yeah, not breakfast, not breakfast at Tiffany's, but lunch.
00:25:20.319 --> 00:25:21.039
It's like a lunch.
00:25:21.119 --> 00:25:24.799
Uh but she planned out everything with her chat TPT.
00:25:25.039 --> 00:25:25.119
Yeah.
00:25:25.279 --> 00:25:25.440
Yeah.
00:25:25.599 --> 00:25:27.599
That that lunch might be expensive, Todd.
00:25:27.680 --> 00:25:29.359
So get I hope uh book sales are up there.
00:25:29.519 --> 00:25:30.640
I hope we got a lot of client.
00:25:30.880 --> 00:25:31.920
I like the way she did that, though.
00:25:32.640 --> 00:25:33.839
Let's have lunch at Tiffany's.
00:25:34.000 --> 00:25:34.079
Right?
00:25:34.240 --> 00:25:34.480
That's good.
00:25:34.720 --> 00:25:34.880
Right.
00:25:34.960 --> 00:25:36.720
And she did the whole itinerary on yeah.
00:25:37.039 --> 00:25:37.279
That's right.
00:25:37.440 --> 00:25:39.519
Six love braces later, right?
00:25:39.759 --> 00:25:40.640
Yes, exactly.
00:25:40.799 --> 00:25:42.240
I can't wait to get to the next call.
00:25:42.559 --> 00:25:42.880
Oh, different.
00:25:43.440 --> 00:25:46.240
Oh, sorry, I got the wrong my wife reminds me I got the wrong brand.
00:25:46.400 --> 00:25:46.799
Sorry about that.
00:25:47.039 --> 00:25:48.319
What would you get at Tiffany's?
00:25:50.240 --> 00:25:51.119
Lunch and breakfast.
00:25:51.759 --> 00:25:52.640
Lunch and breakfast.
00:25:53.279 --> 00:25:54.640
It's gonna be an expensive one for you.
00:25:54.799 --> 00:25:56.480
Hey, I think we've got a I think we've got a question.
00:25:56.720 --> 00:25:57.680
We do have a question.
00:25:57.920 --> 00:26:04.400
Yeah, if if a dealer wants to start small, which two departments make the best first AI use case?
00:26:04.559 --> 00:26:05.359
That's a good question.
00:26:06.240 --> 00:26:10.559
Yeah, so uh my two big ones are fixed ops.
00:26:10.720 --> 00:26:10.960
Okay.
00:26:11.200 --> 00:26:20.400
I think AI can make a very powerful play, not consumer-facing, but internally to be more operationally efficient.
00:26:20.559 --> 00:26:22.480
I think there's a lot of opportunity there.
00:26:22.640 --> 00:26:23.680
And a back office.
00:26:24.079 --> 00:26:31.519
I think back office is a route memory, literally tons of tasks nobody wants to do.
00:26:31.680 --> 00:26:33.279
Mistakes are very expensive.
00:26:33.519 --> 00:26:33.839
Yes.
00:26:34.000 --> 00:26:47.920
Um, and that could be everything from monthly end-of-month reconciliation, uh, inventory reconciliation, uh, analyzing warranties before factory submission to make sure everything is checked.
00:26:48.319 --> 00:26:58.400
There's, I think, a plethora of opportunities in both back office and fixed ops that doesn't necessarily mean I have to touch my customer with the technology.
00:26:58.640 --> 00:26:58.799
Yeah.
00:26:58.960 --> 00:27:08.000
This might put an end to uh dealer 20 meetings, because now you'll just take your financial statement, send it to chat, and say, tell me where the the the problem areas are.
00:27:09.680 --> 00:27:10.079
I know, I know.
00:27:10.400 --> 00:27:10.720
I'm joking.
00:27:10.799 --> 00:27:11.119
I'm joking.
00:27:11.680 --> 00:27:13.519
But no, no, seriously, like what you say that.
00:27:13.759 --> 00:27:14.640
What are the weak spots?
00:27:14.720 --> 00:27:15.279
What are you know?
00:27:16.079 --> 00:27:19.200
The real reality is uh the think about a financial statement.
00:27:19.359 --> 00:27:21.519
You have a snapshot of the dealership.
00:27:21.599 --> 00:27:28.559
Yeah, you really need all the underlying data, you do, that nuanced data to really do those deep analysis, right?
00:27:28.880 --> 00:27:32.400
I I think 20 group is as Brit saying it's about getting together.
00:27:32.640 --> 00:27:35.440
It is, it's about working through problems together.
00:27:35.680 --> 00:27:35.920
That's right.
00:27:36.160 --> 00:27:40.319
And it's about, to me, like sharing wins and losses.
00:27:40.559 --> 00:27:44.960
And I think like you can sit in a team and go, yeah, that was a bad one.
00:27:45.039 --> 00:27:46.079
I shouldn't have done that.
00:27:46.240 --> 00:27:49.440
And all the other 19 other dealers are like, yep, we told you.
00:27:49.680 --> 00:27:56.720
Or they're like, look, you were you were tip of the spear, you experimented for, you know, what do we learn?
00:27:56.799 --> 00:28:01.039
Or what did you learn that we can now learn from to apply back to our business?
00:28:01.200 --> 00:28:09.119
So I think there's a lot of that componentry in all the groups that I spend time with, uh, even more than just the hard numbers of things.
00:28:09.279 --> 00:28:23.519
Um, but I definitely see that giving AI deeper and deeper access to the dealer's data pool once they own it begins to highlight things about how the dealer operates that they might not even be aware of.
00:28:23.759 --> 00:28:24.079
That's right.
00:28:24.240 --> 00:28:27.519
And by the way, for my good friends at NCM and NAD, I was just kidding.
00:28:27.599 --> 00:28:30.400
It was just like a light kind of a joking.
00:28:30.640 --> 00:28:31.200
Ha ha ha ha.
00:28:31.279 --> 00:28:31.759
It's funny.
00:28:31.920 --> 00:28:33.279
AI taking the place of that.
00:28:33.519 --> 00:28:33.839
No.
00:28:34.079 --> 00:28:34.960
Could never do that.
00:28:35.119 --> 00:28:38.720
So what is that ticking mail you're getting from NCM?
00:28:40.079 --> 00:28:42.319
Oh my gosh, it's exactly the role.
00:28:42.559 --> 00:28:44.319
No, the uh no, I'm serious.
00:28:44.559 --> 00:28:50.880
I I was been members of uh of you know and our uh dealer 20 groups, love them, and I agree with you, Todd.
00:28:50.960 --> 00:28:51.599
You gotta have them.
00:28:51.680 --> 00:28:57.680
It's all about the being in the group and having everybody laugh at your uh loss and your Toyota statement.
00:28:57.920 --> 00:28:58.799
Uh no, I'm kidding.
00:28:58.960 --> 00:29:00.480
But uh roll.
00:29:01.440 --> 00:29:04.160
How did you lose money during a Toyota dealership?
00:29:04.960 --> 00:29:05.759
How is that possible?
00:29:06.079 --> 00:29:06.400
That's right.
00:29:06.480 --> 00:29:07.359
How is that possible?
00:29:08.079 --> 00:29:12.240
It is it is again an amazing time to be in our industry.
00:29:12.319 --> 00:29:18.079
I I think we are ill-prepared for the acceleration that we have now already started.
00:29:18.240 --> 00:29:20.720
Right now, and I think it's gonna be fun.
00:29:20.880 --> 00:29:23.279
I think it's gonna be very challenging for us.
00:29:23.359 --> 00:29:28.640
Um, but I think smart dealers, look, uh as you know, dealers are entrepreneurs.
00:29:28.799 --> 00:29:30.720
And what are entrepreneurs good at?
00:29:30.960 --> 00:29:31.599
Evolving.
00:29:31.839 --> 00:29:35.680
That's right, that's right, and adapting to whatever gets thrown at them.
00:29:35.920 --> 00:29:42.880
And I think that is a hardened, unique quality that makes car people car people.
00:29:43.200 --> 00:29:43.599
That's right.
00:29:43.920 --> 00:29:46.640
Todd Smith, CEO of Core AI.
00:29:46.960 --> 00:29:48.640
Todd, thank you so much for stopping by.
00:29:48.880 --> 00:29:49.839
Very much appreciate it.
00:29:49.920 --> 00:29:53.839
This is the guy that you want in your corner for all the answers on AI.
00:29:53.920 --> 00:29:58.319
So I would imagine you're gonna be a very busy young man in the next uh five to ten years.
00:29:58.480 --> 00:30:02.319
The dealers are gonna be looking to you for saying, okay, help us figure this out.
00:30:02.400 --> 00:30:05.359
So we appreciate all of the uh time you've given us here at the station.
00:30:05.519 --> 00:30:05.920
Very appreciated.
00:30:06.960 --> 00:30:07.680
Thank you so much.
00:30:07.759 --> 00:30:09.039
It was great seeing both of you today.
00:30:09.200 --> 00:30:09.359
Thanks.
00:30:09.759 --> 00:30:10.319
You too.
00:30:11.039 --> 00:30:13.119
He's the man you want your corner for AI.
00:30:13.839 --> 00:30:14.160
He is the man.
00:30:14.559 --> 00:30:16.160
And how many shows have we done on AI?
00:30:16.240 --> 00:30:18.960
I mean, it's just it's so front and center for so many.
00:30:20.880 --> 00:30:25.039
We need to be having daily shows on this because it changes every day.
00:30:25.440 --> 00:30:26.960
Is that what your AI assistant said?
00:30:27.279 --> 00:30:27.680
That's what she said.
00:30:27.839 --> 00:30:28.640
Yeah, is that what she said?
00:30:29.440 --> 00:30:31.119
Anyway, before we get to our next guest.
00:30:31.359 --> 00:30:31.519
Yeah.
00:30:31.839 --> 00:30:33.920
So you all know how Jim likes funny clips.
00:30:34.240 --> 00:30:36.880
Well, I came across a clip that I thought would be fun to share.
00:30:38.319 --> 00:30:39.599
Okay, let's let's see what you got.
00:30:39.920 --> 00:30:41.680
So we have that one, guys.
00:30:42.480 --> 00:30:43.680
Can you describe a seat for a second?
00:30:44.079 --> 00:30:45.680
So I just want to have a quick chat with you.
00:30:45.759 --> 00:30:49.599
I I need to get someone to talk to our sales team, and I need someone to give them like a swift kick in the ass.
00:30:49.839 --> 00:30:50.480
I could do that.
00:30:50.640 --> 00:30:50.960
Absolutely.
00:30:51.200 --> 00:30:51.359
Okay.
00:30:51.519 --> 00:30:51.920
Okay, cool.
00:30:52.000 --> 00:30:52.400
I'm excited.
00:30:52.480 --> 00:30:53.279
I'm gonna go prep.
00:30:53.920 --> 00:30:54.559
It's gonna be good.
00:30:56.480 --> 00:30:57.359
Everyone zip it.
00:30:57.599 --> 00:30:58.319
Zip it now.
00:30:58.559 --> 00:30:59.119
Ice forward.
00:30:59.279 --> 00:31:00.720
I'll tell you what the Chevy motto is.
00:31:00.799 --> 00:31:02.319
It's together let's drive.
00:31:02.400 --> 00:31:05.440
But I'll tell you right now, here, it's more like together let's hide.
00:31:05.519 --> 00:31:06.880
Because you guys are selling shit out there.
00:31:06.960 --> 00:31:08.000
Sean, send me this pen.
00:31:08.960 --> 00:31:10.319
Um, it's red.
00:31:10.559 --> 00:31:13.599
That's why silver motto are still everyone stand up.
00:31:13.680 --> 00:31:14.400
We gotta do an exercise.
00:31:14.480 --> 00:31:15.119
Everyone's too tight.
00:31:15.200 --> 00:31:16.240
Stand up, we gotta shake this out.
00:31:16.400 --> 00:31:17.200
Go ahead and shake it out.
00:31:17.759 --> 00:31:18.160
Shake it out.
00:31:18.240 --> 00:31:20.319
Let's go to Harlem with it and shake it, shake it.
00:31:20.400 --> 00:31:20.720
Go ahead.
00:31:20.960 --> 00:31:22.240
Sean, don't know what the hell you're doing.
00:31:22.400 --> 00:31:23.759
Sean, go ahead and belly roll it.
00:31:23.920 --> 00:31:24.640
Belly roll it.
00:31:24.799 --> 00:31:26.160
Something Sean knows a lot about.
00:31:26.240 --> 00:31:31.039
One thing that that's very important to me that I learned is Sean, first off, where'd you get the bag of chips?
00:31:31.200 --> 00:31:32.799
Sean, don't eat a chip.
00:31:33.359 --> 00:31:37.440
I need you to get your head out of your ass and your hand on the bag of chips and pay attention.
00:31:37.519 --> 00:31:38.000
Do you understand?
00:31:38.240 --> 00:31:44.400
The phrase I came up with that's gonna help you guys is when you want to succeed as bad as you want to breathe, okay, that's when you're gonna be successful.
00:31:44.640 --> 00:31:45.279
Sean, what?
00:31:45.759 --> 00:31:47.440
Pretty sure that's Eric Thomas.
00:31:47.680 --> 00:31:48.799
It's right behind you.
00:31:49.599 --> 00:31:52.079
Eric Thomas get salesman of the year in 2010, because I don't think he did.
00:31:52.880 --> 00:31:53.680
You don't really say.
00:31:53.839 --> 00:31:56.240
But if you guys can do what I said today, you guys are gonna be successful.
00:31:56.319 --> 00:31:56.400
Okay.
00:31:56.559 --> 00:31:57.599
T on me, team on three.
00:31:57.680 --> 00:32:01.359
One, two, three, tink! All right, we can probably work on that.
00:32:01.599 --> 00:32:01.920
I don't know.
00:32:02.079 --> 00:32:03.359
That guy was really good.
00:32:03.680 --> 00:32:06.799
Not only was the whole skit a funny skit, that guy's a good actor.
00:32:07.119 --> 00:32:07.759
He is, he is.
00:32:07.839 --> 00:32:10.319
I've seen him on other on other things, but that that is spot on.
00:32:10.480 --> 00:32:11.359
It's the it was great.
00:32:11.440 --> 00:32:13.680
Yeah, swift kick in the ass is whatever his sales team needs.
00:32:14.160 --> 00:32:17.759
I think he was pulling pieces from a lot of different trainers that we all know and love.
00:32:18.160 --> 00:32:18.880
Yes, we do.
00:32:19.200 --> 00:32:22.880
So I thought that was pretty funny too, because I was like, oh, that's that looks like so-and-so.
00:32:23.920 --> 00:32:26.400
And I'm like, oh, that looks like so-and-so the way he was doing that.
00:32:27.279 --> 00:32:27.519
That's right.
00:32:27.599 --> 00:32:28.000
Yeah, that's right.
00:32:28.160 --> 00:32:28.799
So I thought that was great.
00:32:28.960 --> 00:32:30.240
No, I I thought it was great.
00:32:30.480 --> 00:32:36.319
You so we we should have the the the uh audience vote on who picks better clips, you or I.
00:32:36.880 --> 00:32:37.440
So far.
00:32:37.759 --> 00:32:38.160
Uh-huh.
00:32:38.880 --> 00:32:44.480
You have a lot more to choose from, but is that what your assistant said?
00:32:44.960 --> 00:32:45.519
That's what she said.
00:32:45.759 --> 00:32:46.000
Okay.
00:32:46.240 --> 00:32:48.720
I'm looking forward to this conversation coming up here.
00:32:49.200 --> 00:32:49.440
For sure.
00:32:49.759 --> 00:32:52.720
So the California Cars Act is now in effect.
00:32:53.039 --> 00:32:55.839
You can hear on the West Coast the dealer screaming right now.
00:32:55.920 --> 00:32:56.480
No, just kidding.
00:32:56.799 --> 00:32:59.759
Bringing new requirements for dealers are really across the state.
00:32:59.920 --> 00:33:00.960
So it's it's a big move.
00:33:01.359 --> 00:33:01.519
Right.
00:33:01.599 --> 00:33:05.920
So what do dealers need to know and what should they be doing differently now?
00:33:06.160 --> 00:33:11.519
Joining us is Brian Moss, president of the California New Car Dealers Association, to break all this down for us.
00:33:11.839 --> 00:33:13.680
Brian, thank you so much for joining us on the show today.
00:33:14.000 --> 00:33:14.319
That's right.
00:33:14.480 --> 00:33:14.960
Hey Brian.
00:33:15.200 --> 00:33:16.079
Thank you both for having me.
00:33:16.400 --> 00:33:19.039
Do you have to wear a flat jacket into dealerships these days?
00:33:19.119 --> 00:33:20.480
Because uh gosh.
00:33:21.920 --> 00:33:25.359
Yeah, I used to be over six feet, but I'm a little shorter now.
00:33:25.519 --> 00:33:29.680
Um, this this is a big move out there in California, right?
00:33:29.839 --> 00:33:36.000
I mean, they're let's uh for the people that are listening, break break down the uh the the actual law.
00:33:36.880 --> 00:33:37.279
Sure.
00:33:37.440 --> 00:33:49.759
So uh this was a law that was passed in 2025, and we uh asked the legislature to delay its effective date until October 1st, which was just a few days ago.
00:33:50.000 --> 00:34:00.400
Uh it's probably the biggest change in uh the car buying process since the car buyer's bill of rights all the way back in 2006.
00:34:01.119 --> 00:34:16.239
Uh what it requires is that if a customer makes an inquiry about a specific vehicle, uh dealer must give a written disclosure of the total price of that vehicle.
00:34:16.480 --> 00:34:34.639
Uh that total price is slightly different than it is under the FTC's interpretation, but that's a significant change, and dealers are trying to figure out how to uh provide that disclosure and keep a record of it because the law also requires they keep a record for two years.
00:34:34.960 --> 00:34:35.440
Wow.
00:34:36.000 --> 00:34:36.400
Yeah.
00:34:36.639 --> 00:34:40.159
So you have hosted several webinars for your members on this.
00:34:40.320 --> 00:34:43.760
What are the questions or concerns that you're hearing the most from your dealers?
00:34:44.639 --> 00:34:59.039
Well, I think it's uh uh because it's something new and uh dealers are used to their processes that they've employed for a while, uh they're trying to understand what the rules are, what the parameters, uh, what they need to do.
00:34:59.280 --> 00:35:04.719
Uh the questions uh revolve around uh exactly how do you have to provide it.
00:35:04.880 --> 00:35:10.400
It only has to be a written disclosure at the first inquiry about a specific vehicle.
00:35:10.480 --> 00:35:17.920
So you don't have to keep giving uh the same disclosure over and over, but you have to keep a record of it, and that's uh really important.
00:35:18.320 --> 00:35:22.159
Uh the bill contains lots of other things too.
00:35:22.400 --> 00:35:32.000
Uh it provides for a uh three-day rite of return for used vehicles priced under$50,000.
00:35:32.639 --> 00:35:36.719
So that's another process and procedure that dealers have to implement.
00:35:36.880 --> 00:35:49.119
It's similar to a two-day contract cancellation option that had been around for 20 years, but some of the rules have changed, some of the numbers have changed, and dealers obviously need to update their processes.
00:35:49.360 --> 00:35:49.519
Yeah.
00:35:49.920 --> 00:36:02.960
It would seem it would seem as though this is a gonna be a huge uh training uh initiative to retrain all of these salespeople and managers so that they know what the law is and how to abide by it.
00:36:03.039 --> 00:36:08.480
And uh are there any parts of the new law that dealers seem to be struggling with more than others?
00:36:09.679 --> 00:36:21.599
Yeah, I think that some of the initial inquiries that we're getting, uh we run a legal hotline uh at our association and uh staffed with a couple of attorneys who are fielding calls nonstop.
00:36:21.760 --> 00:36:21.920
Yeah.
00:36:22.079 --> 00:36:24.880
Uh we're also talking to lots of outside counsel.
00:36:25.199 --> 00:36:36.960
It's really about the um uh first disclosure of the total price, how that has to be provided, and uh how it has to be kept.
00:36:37.039 --> 00:36:43.760
Uh most dealers are trying to do that through their CRM so they can have a record of it.
00:36:44.000 --> 00:36:53.039
And some of the CRM uh partners are working uh diligently to come up with the technology to make it as seamless as possible.
00:36:54.159 --> 00:37:01.199
So what should dealers uh what should they be doing to make sure these procedures actually become part of their day-to-day operations?
00:37:02.079 --> 00:37:03.360
Well, I think Jim said it.
00:37:03.440 --> 00:37:04.960
It's uh it's about training.
00:37:05.119 --> 00:37:13.840
It's about uh explaining the rules to uh your team at your dealership and then implementing those rules.
00:37:14.000 --> 00:37:20.079
It's no different than any other law or process that uh requires a change.
00:37:20.239 --> 00:37:28.639
You've got to post new signs in the F and I offices, um, you've got to uh make sure you're uh keeping records, et cetera, et cetera.
00:37:28.800 --> 00:37:35.039
It's really about training and then following through to make sure everybody is doing what's necessary.
00:37:35.360 --> 00:37:53.440
One of the things um we've made clear and repeated over and over to dealers is you don't want your salespeople using their personal cell phone to communicate this first price unless it's through an app uh that your CRM can track.
00:37:53.760 --> 00:38:04.320
Because if you don't have a record of it, it's you know Jim's personal cell phone, yeah, you're not gonna be able to have the record if the DMV comes calling.
00:38:04.639 --> 00:38:05.039
Wow.
00:38:05.119 --> 00:38:08.480
That yeah, there are some big fundamental changes here, that's for sure.
00:38:08.639 --> 00:38:18.800
Also, in the event of a trade, if somebody trades a car in on a used car, now that retailer has got to hold on to that trade, can't wholesale it, can't resell it, right?
00:38:19.840 --> 00:38:28.000
Well, the the rule does account uh for uh uh the circumstances where a dealer sells uh the trade.
00:38:28.719 --> 00:38:36.000
Um we we knew that there there's a possibility that dealers uh have processes where they're gonna turn this around instantly.
00:38:36.320 --> 00:38:36.639
Sure.
00:38:36.800 --> 00:38:45.679
Um it's probably better if you hold the trade for three days because then you don't have all the paperwork and craziness that you have to do to comply with the law.
00:38:45.840 --> 00:38:46.079
Yeah.
00:38:46.320 --> 00:39:00.239
Um but if uh you know somebody uh does sell a car after day two and the customer comes back on day three, there's a way to give money back to the customer if the car has been wholesaled or retailed.
00:39:00.880 --> 00:39:02.639
What what's uh what have you heard so far?
00:39:02.800 --> 00:39:08.880
I know it's just the first week, it's week one, but what are what are some of the things that you're hearing back from your your members?
00:39:09.440 --> 00:39:10.239
Any anyway.
00:39:10.400 --> 00:39:23.760
Yeah, I think most of the calls right now uh, as we've been discussing, are about uh that uh first disclosure of the total price and how dealers are trying to figure out how to comply.
00:39:24.400 --> 00:39:30.320
Uh you know, we've emphasized to our dealers uh you don't have to outrun the bear.
00:39:30.480 --> 00:39:35.760
You just have to outrun the dealer that's not uh doing their best to comply.
00:39:35.840 --> 00:39:36.000
Yeah.
00:39:36.159 --> 00:39:47.840
So if dealers are making a uh an honest effort to try and uh match the disclosures that are required by the CARS Act, um they're gonna be in good shape.
00:39:47.920 --> 00:39:51.599
And it's gonna take some time for this to sink in in the marketplace.
00:39:52.239 --> 00:39:59.280
And we've been communicating with uh uh folks at the state that you know this is a a huge endeavor.
00:39:59.679 --> 00:40:03.440
It's not just new car dealers, of course, it's all independent dealers.
00:40:03.760 --> 00:40:08.079
It's anybody who sells uh cars as licensed dealers in California.
00:40:08.159 --> 00:40:15.760
So we're talking thousands of thousands of folks, uh, and we're trying to make sure our dealers are as up to speed as they can be.
00:40:15.920 --> 00:40:19.199
And you've showed some of the resources we provide on our website.
00:40:19.280 --> 00:40:24.559
We've got checklists, FAQs, that's great, an 80-page compliance guide.
00:40:24.880 --> 00:40:25.199
That's great.
00:40:25.360 --> 00:40:29.280
Uh the resources are there, and uh it's about training.
00:40:29.519 --> 00:40:30.880
Yes, yeah, I would imagine.
00:40:31.119 --> 00:40:36.880
And how many uh roughly do you know how many used car dealers there are independents in in the state?
00:40:37.599 --> 00:40:39.599
I don't know the precise number.
00:40:39.760 --> 00:40:43.440
Somebody told me a few years ago it's five or six thousand.
00:40:43.519 --> 00:40:43.679
Yeah.
00:40:43.840 --> 00:40:46.559
Now that could be a guy that's selling three cars on this driveway.
00:40:47.119 --> 00:40:47.280
Sure.
00:40:47.360 --> 00:40:49.280
Um but probably at least a couple of thousand.
00:40:49.920 --> 00:40:54.400
Carmax is a used car retailer, and they're gonna have to comply with this too.
00:40:54.639 --> 00:40:56.320
Yeah, yeah, very good point.
00:40:56.559 --> 00:41:00.960
All right, switching gears here for for a minute, you just wrapped up your annual convention.
00:41:01.119 --> 00:41:02.000
Talk to us about that.
00:41:02.159 --> 00:41:03.119
How'd that go?
00:41:03.519 --> 00:41:04.400
Oh, it was great.
00:41:04.639 --> 00:41:17.599
We uh meet every year in Hawaii, and we have uh educational programs for dealers and opportunities for our dealers to network with each other and with our uh vendor partners.
00:41:18.000 --> 00:41:32.239
So uh sponsors are all there, and it's a in a relaxed environment, an opportunity to uh break bread and spend time together and talk about industry trends and things that are happening in the industry.
00:41:32.400 --> 00:41:47.199
Uh, one of the highlights for me is we do a dealer-only meeting where we have our members in the room and they get to ask uh myself and our colleagues questions about what's going on at the association and what might be on the horizon.
00:41:47.599 --> 00:41:47.840
Sure.
00:41:48.000 --> 00:41:54.320
What is uh on on the uh to-do list before the year runs out here in this last quarter?
00:41:54.480 --> 00:41:59.440
Is there any unfinished business that you want to close out or get to before the end of the year?
00:42:00.000 --> 00:42:04.079
Uh well, a couple things, as you know, we've had many conversations in the past.
00:42:04.320 --> 00:42:08.159
Jim, we're in the process of litigation against VW Scout.
00:42:08.400 --> 00:42:10.079
That that case is ongoing.
00:42:10.239 --> 00:42:12.639
Yeah uh we're in discovery right now.
00:42:13.039 --> 00:42:19.280
So I suspect there'll be depositions and document requests provided and those kinds of things.
00:42:19.440 --> 00:42:29.679
Um in addition, we do uh new law seminars uh every December where we talk about all the new laws that California passes.
00:42:29.840 --> 00:42:37.119
About 1,100, 1200 bills are signed by the governor, and some 50 or so may impact dealer operations.
00:42:37.199 --> 00:42:39.599
So we need to explain those to our dealers.
00:42:40.079 --> 00:42:42.239
CARS Act is obviously a big deal.
00:42:42.400 --> 00:42:47.920
Uh we'll continue to talk about that, but there are other bills that dealers need to know about uh as well.
00:42:48.239 --> 00:42:55.119
And then finally, we're gonna plan for a brand new governor and a brand new legislature uh next year.
00:42:55.280 --> 00:43:04.800
So we're gonna have a meeting uh with some of our leaders uh next month to talk about what our priorities are gonna be when the legislature reconvenes in 2027.
00:43:05.119 --> 00:43:13.119
Yeah, I was watching the debate um uh last week between the the two different um candidates that you've got up for governor.
00:43:13.280 --> 00:43:15.519
Uh interesting discussions there between the two of them.
00:43:15.599 --> 00:43:18.880
It's a very contentious race there, for sure, right?
00:43:19.760 --> 00:43:20.159
For sure.
00:43:20.320 --> 00:43:33.840
Yeah, we're we're a very democratic state, so I think most uh pundits think that uh Avier Becerra, the former HHS secretary and California Attorney General and Congressperson, is likely to win.
00:43:34.000 --> 00:43:42.719
Uh but uh we have to prepare for any contingency, and we're looking forward to working with whoever the next governor is.
00:43:43.280 --> 00:43:44.639
Yeah, no, no, for sure.
00:43:44.800 --> 00:43:45.280
Absolutely.
00:43:45.440 --> 00:43:47.679
The uh the dealers need you on the front line there.
00:43:47.760 --> 00:43:49.039
I mean, we've talked about that before.
00:43:49.119 --> 00:43:56.000
The uh uh and as much as you can get the dealers, your members involved in helping your efforts, right?
00:43:56.159 --> 00:44:13.199
I mean, we've said we've said this before that if you're a dealer in California and all All of this is going on, the best thing that you can do, right, Brian, is bring in you know the state legislators and let them know what you're doing there at the at the dealer level, how many people you employ, how many taxes you pay, and all of that, right?
00:44:13.840 --> 00:44:16.159
Yeah, it's it's an education process.
00:44:16.400 --> 00:44:22.000
Many of these legislators, frankly, uh haven't worked in the private sector before.
00:44:22.239 --> 00:44:25.199
They've never signed the front of a check.
00:44:25.360 --> 00:44:28.079
They've only signed the back of a payroll check.
00:44:28.400 --> 00:44:39.039
So uh explaining to them how the car uh dealership uh ecosystem works and why it's important to their constituents, yeah.
00:44:39.199 --> 00:44:42.239
Um, you know, that's what the VW Scout fight is about.
00:44:42.480 --> 00:44:59.119
If um VW can get away with distributing vehicles through a scout brand and ignore their dealer partners, that's ultimately gonna hurt consumers because they're not gonna have access uh to fully functional uh dealerships that our members provide.
00:44:59.360 --> 00:44:59.679
That's right.
00:44:59.840 --> 00:45:01.599
And uh we can't let that stand.
00:45:01.920 --> 00:45:02.400
No, I agree.
00:45:02.559 --> 00:45:06.400
The um, you know, we all are going crazy over gas prices right now.
00:45:06.559 --> 00:45:13.039
And uh it's funny because we uh we'll talk about, you know, oh my god, it's$4 a gallon,$4.15 a gallon, whatever, whatever the number is.
00:45:13.199 --> 00:45:15.199
What is gas in California?
00:45:16.000 --> 00:45:23.760
I don't know what the precise average is, but I know in my neighborhood uh regular gas is about$650 a gallon.
00:45:24.079 --> 00:45:24.400
Wow.
00:45:24.559 --> 00:45:30.639
Uh diesel's probably closer to$850 or$9 a gallon.
00:45:30.960 --> 00:45:31.679
Oh my God.
00:45:31.760 --> 00:45:31.920
Yeah.
00:45:33.920 --> 00:45:47.199
That's gonna have a dramatic impact not only on dealerships and the cars that our members sell, but every consumer who uh buys something at you know Walmart or their grocery store.
00:45:47.360 --> 00:45:47.599
Yeah.
00:45:47.679 --> 00:45:52.639
Uh you need diesel trucks to deliver those things, and it's just gonna be a lot more expensive.
00:45:52.960 --> 00:45:54.559
Yeah, no, no, no question about it.
00:45:54.639 --> 00:45:59.280
So as a result of that, do you have you seen a spike in EV sales in California?
00:46:00.079 --> 00:46:02.000
There have been uh there's been some growth.
00:46:02.079 --> 00:46:11.360
We're gonna publish our uh quarterly auto outlook uh in the next week or two, uh, which will have uh third quarter uh data.
00:46:11.840 --> 00:46:17.199
Uh but uh what we saw in the first half of the year is hybrid sales really took off.
00:46:17.360 --> 00:46:19.519
And there was a lot of growth in hybrid sales.
00:46:19.679 --> 00:46:21.199
Obviously, you're seeing that naturally.
00:46:21.840 --> 00:46:24.400
I think consumers are making the calculation, eh?
00:46:24.559 --> 00:46:28.320
I may not be ready for an EV, but fuel economy sure matters.
00:46:28.400 --> 00:46:37.360
And I'd like to improve on you know the 20 or 30 miles a gallon I get now and get 40 or 50 miles a gallon so they can stretch those dollars further.
00:46:37.599 --> 00:46:42.480
So I think the companies that have hybrid offerings are doing really well in California.
00:46:42.639 --> 00:46:42.880
Yep.
00:46:43.039 --> 00:46:49.599
And those that uh had hybrids or don't yet have hybrids, um, they're having to play catch-up.
00:46:49.840 --> 00:46:50.960
Yeah, like GM.
00:46:51.199 --> 00:46:54.159
GM, we just did a story on GM that they don't even have a hybrid.
00:46:54.239 --> 00:46:55.519
They had no, I think they have one, right?
00:46:55.599 --> 00:46:58.239
Is it yeah, the Corvette?
00:46:58.320 --> 00:46:58.480
Yeah.
00:46:58.800 --> 00:47:00.559
It's like, what is going on?
00:47:00.880 --> 00:47:02.239
Well, how did they miss the boat?
00:47:02.400 --> 00:47:02.880
There it is.
00:47:02.960 --> 00:47:05.280
How did we miss how'd they miss the boat on hybrids?
00:47:05.519 --> 00:47:06.719
They seem to be doing okay, though.
00:47:06.800 --> 00:47:08.880
So other other areas.
00:47:09.119 --> 00:47:09.440
That's right.
00:47:09.599 --> 00:47:12.880
Well, Brian Moss, thank you so much for joining us today on CBD.
00:47:13.039 --> 00:47:15.679
Oh, we have a question from our viewers here.
00:47:16.000 --> 00:47:16.239
That's right.
00:47:16.480 --> 00:47:16.800
Okay.
00:47:17.039 --> 00:47:18.000
Sorry, we almost missed that.
00:47:18.320 --> 00:47:25.840
Can the initial quote be a discounted price they can buy the car for, or does it have to be MSRP out the door?
00:47:27.199 --> 00:47:36.719
So um essentially what the CARS Act requires is an MSRP price, uh a manufacturer's suggested retail price.
00:47:37.039 --> 00:47:39.519
You can't do that advertising any longer.
00:47:39.679 --> 00:47:46.800
It has to be the total price, everything excluding government uh taxes and fees.
00:47:47.199 --> 00:47:47.440
Okay.
00:47:47.760 --> 00:47:53.920
So uh whatever you're pricing at, uh it could be MSRP, it could be higher or lower than MSRP.
00:47:54.000 --> 00:47:54.159
Okay.
00:47:54.320 --> 00:48:01.599
But whatever your price is, uh the customer has to uh feel confident that that's the price you're selling at.
00:48:01.679 --> 00:48:06.159
So hard ads that are on the vehicle have to be included in the total price.
00:48:06.400 --> 00:48:12.239
Document processing charges, uh pursuant to the FTC's advice have to be in the total price.
00:48:12.480 --> 00:48:16.239
All those kinds of things um have to be included.
00:48:16.559 --> 00:48:19.760
And uh this is the direction we're going nationally.
00:48:19.920 --> 00:48:20.239
Yeah.
00:48:20.480 --> 00:48:29.199
Um, and it's just the CARS Act has hit October 1st in a much more meaningful way in California than perhaps in other states.
00:48:29.679 --> 00:48:39.039
Uh and our dealers, as usual, are gonna be uh compliant first, and then I suspect some aspects of our law are gonna spread eastward.
00:48:39.360 --> 00:48:39.519
Sure.
00:48:39.679 --> 00:48:41.840
Is it I'll ask you a crazy question here.
00:48:42.000 --> 00:48:49.599
If if a Republican, if the Republican that's running for governor wins, could this could this law go away?
00:48:49.760 --> 00:48:54.880
I mean, if if somebody says, hey, I'm I'm not down with this and we're gonna scratch that law in California.
00:48:55.840 --> 00:48:59.039
Um the short answer is no.
00:48:59.280 --> 00:48:59.519
Okay.
00:48:59.679 --> 00:49:02.960
Uh we have a three-quarters Democratic legislature.
00:49:03.119 --> 00:49:04.960
So even if Mr.
00:49:05.039 --> 00:49:18.719
Hilton uh somehow upset uh Becerra and won the governorship, yeah, chances are really good the three-quarters democratic legislature would not uh change the law.
00:49:18.880 --> 00:49:24.880
Now that doesn't mean we might not go in once we have some time to say, hey, we need to tweak this.
00:49:25.039 --> 00:49:28.159
The implementation isn't working out the way we thought.
00:49:28.320 --> 00:49:33.280
Uh, and we do that uh every year in a very democratic state.
00:49:33.440 --> 00:49:39.199
The CARs act, as it was initially proposed, was significantly worse than it is now.
00:49:39.280 --> 00:49:46.559
And I realize dealers aren't thrilled, but it had a 10-day used car cooling off period, for example.
00:49:46.960 --> 00:49:47.840
That is crazy.
00:49:48.320 --> 00:49:51.280
It was gonna take effect last January 1st.
00:49:51.599 --> 00:49:51.840
Yeah.
00:49:52.000 --> 00:49:54.079
Uh, but we got a delayed effective date.
00:49:54.320 --> 00:49:54.559
Wow.
00:49:54.719 --> 00:49:59.280
Uh, there are lots of things that we were able to push back on and fix.
00:49:59.599 --> 00:50:17.840
Uh but it California is a very uh progressive state, they're very consumer friendly uh and consumer forward, and uh we did our best to work with the legislature and come up with a law that dealers could comply with, although it does uh require significant effort.
00:50:18.159 --> 00:50:18.639
That's right.
00:50:18.800 --> 00:50:28.320
And your governor, your your current governor could be running for president and be the next president of the United States, right?
00:50:28.480 --> 00:50:28.719
Could be.
00:50:31.039 --> 00:50:37.199
I believe he's one of many that are being uh talked about as uh running for president.
00:50:37.360 --> 00:50:42.719
Uh, you know, we're not even through the midterm elections yet, so we've got a ways to go.
00:50:42.960 --> 00:50:52.960
And I suspect uh a lot of folks right now are looking in the mirror saying, hmm, it could be me, uh governors, senators, congresspeople, others.
00:50:53.119 --> 00:50:58.400
Uh I expect, certainly on the Democratic side, it's gonna be a huge field.
00:50:58.559 --> 00:50:59.039
Yeah, yeah.
00:50:59.199 --> 00:51:02.719
Um to test what's gonna happen two years from now.
00:51:03.039 --> 00:51:03.440
That's right.
00:51:03.599 --> 00:51:03.840
That's right.
00:51:04.079 --> 00:51:04.239
Yeah.
00:51:04.400 --> 00:51:05.039
Interesting stuff.
00:51:05.119 --> 00:51:08.719
Well, Brian Moss, president of the California New Car Dealers Association.
00:51:08.800 --> 00:51:10.960
Thank you so much for joining us on CBT Live today.
00:51:11.199 --> 00:51:11.679
Thanks, Brian.
00:51:12.000 --> 00:51:13.519
Bridget Jim, thanks so much for having me.
00:51:13.599 --> 00:51:14.000
Appreciate it.
00:51:14.400 --> 00:51:15.119
Thank you.
00:51:15.920 --> 00:51:18.400
All right, I think Brian Moss should run for president.
00:51:19.280 --> 00:51:19.679
He's a great guy.
00:51:20.960 --> 00:51:21.519
I'd vote for him.
00:51:21.599 --> 00:51:22.079
Yeah, you know?
00:51:22.480 --> 00:51:23.599
Brian Moss for president.
00:51:23.840 --> 00:51:24.000
What?
00:51:24.239 --> 00:51:25.199
Brian Moss for president.
00:51:25.760 --> 00:51:29.519
That way we can just call him and say, hey, could you get on CBT Live and now that's your president?
00:51:29.679 --> 00:51:31.440
He'll be like, I don't even know who you people are.
00:51:32.400 --> 00:51:33.760
He's a great guy because he runs for the head.
00:51:33.840 --> 00:51:35.039
He's a presidential seat that he's in, right?
00:51:35.360 --> 00:51:35.599
That's right.
00:51:35.679 --> 00:51:36.159
He does.
00:51:36.239 --> 00:51:36.480
He does.
00:51:36.559 --> 00:51:38.800
I'm I'm joking, but he's he runs a great organization there.
00:51:39.039 --> 00:51:40.239
They really he does.
00:51:40.480 --> 00:51:41.199
He does such a good job.
00:51:44.960 --> 00:51:45.920
Busy guy.
00:51:46.800 --> 00:51:47.119
For sure.
00:51:47.360 --> 00:51:50.639
So oh I've got a we've got a couple of comments too, maybe about the conversation.
00:51:50.800 --> 00:51:52.159
What do we got, guys?
00:51:52.480 --> 00:51:55.199
Oh, I like Bridget's clips best.
00:51:55.440 --> 00:51:56.079
Ah, there we go.
00:51:56.320 --> 00:51:56.800
Oh, what?
00:51:57.840 --> 00:51:58.320
We can vote.
00:51:58.559 --> 00:51:58.639
Wow.
00:51:58.960 --> 00:51:59.760
And I've only had one.
00:52:00.079 --> 00:52:00.559
Do you vote?
00:52:00.800 --> 00:52:02.320
Do you know this individual already?
00:52:02.880 --> 00:52:05.039
Are you already stacking the deck against the sister?
00:52:05.119 --> 00:52:05.360
Thank you.
00:52:07.280 --> 00:52:07.519
No.
00:52:08.559 --> 00:52:10.320
Boy, that's that's from Coffee Guy.
00:52:10.719 --> 00:52:12.960
That's from the uh Car Guy Coffee podcast.
00:52:13.199 --> 00:52:13.760
Best news in coffee.
00:52:13.920 --> 00:52:14.559
Oh, thanks a lot, guys.
00:52:15.039 --> 00:52:16.480
We are looking forward to seeing you all tomorrow.
00:52:16.800 --> 00:52:17.440
Yeah, maybe not.
00:52:17.519 --> 00:52:18.960
Maybe we're not looking forward to seeing you.
00:52:19.840 --> 00:52:20.000
We are.
00:52:20.159 --> 00:52:20.880
I thought you were voting for the code.
00:52:21.039 --> 00:52:21.599
No, it wasn't them.
00:52:21.760 --> 00:52:22.239
It wasn't them.
00:52:22.320 --> 00:52:24.639
They're saying the best news in automotive.
00:52:24.719 --> 00:52:25.119
Thanks, B.
00:52:25.280 --> 00:52:25.360
T.
00:52:25.760 --> 00:52:26.000
Thank you.
00:52:26.079 --> 00:52:26.159
Okay.
00:52:26.639 --> 00:52:28.159
Another viewer, Kaylee Crockett.
00:52:28.480 --> 00:52:30.000
Kaylee said I like Brigitte's.
00:52:30.320 --> 00:52:30.639
Okay, okay.
00:52:30.719 --> 00:52:33.920
I was going to say So before you get jump all over them, I did, I did.
00:52:34.159 --> 00:52:35.360
You're going to be our guests tomorrow.
00:52:35.840 --> 00:52:36.960
All right, I take it back, guys.
00:52:37.039 --> 00:52:38.159
We're looking forward to seeing coffee again.
00:52:39.199 --> 00:52:40.800
And by the way, bring us coffee.
00:52:42.960 --> 00:52:44.480
We'll have lunch for you for sure.
00:52:44.719 --> 00:52:45.280
That's right.
00:52:45.440 --> 00:52:45.840
That's right.
00:52:45.920 --> 00:52:47.599
You know this place is going to be jumping when they come in here.
00:52:47.760 --> 00:52:48.639
It's going to be a lot of fun.
00:52:48.800 --> 00:52:48.960
Yeah.
00:52:49.119 --> 00:52:50.320
So be sure to tune in tomorrow.
00:52:50.400 --> 00:52:58.079
And again, if you have questions for them or Adam Marberger on tomorrow's show, be sure to send those into live at cbtnews.com.
00:52:58.400 --> 00:52:58.800
That's right.
00:52:59.039 --> 00:52:59.360
Yeah.
00:52:59.519 --> 00:53:05.920
So also, while you're at cbtnews.com, be sure to head over and sign up for our newsletters.
00:53:06.000 --> 00:53:09.280
You'll get more great conversations like we've had today.
00:53:09.440 --> 00:53:13.920
And you'll all and also be sure to sign up for um like, follow, and subscribe on social media.
00:53:14.239 --> 00:53:15.280
That's Joe Laham right there.
00:53:15.360 --> 00:53:15.679
I love him.
00:53:16.880 --> 00:53:18.239
The hardest working man in the car business.
00:53:18.639 --> 00:53:20.320
Love how you comment on the newsletter every time.
00:53:21.679 --> 00:53:22.239
He's great.
00:53:22.400 --> 00:53:26.559
Whenever he comes on, he tells it like it is, and we get like a million views from his uh We do.
00:53:27.280 --> 00:53:28.400
Damn outies, right?
00:53:28.639 --> 00:53:29.199
Whatever it is.
00:53:29.840 --> 00:53:30.320
I love him.
00:53:30.480 --> 00:53:30.960
Love him.
00:53:31.199 --> 00:53:32.320
One more thing before we go.
00:53:32.480 --> 00:53:35.199
I do want to mention that we will be out at Use Car Week.
00:53:35.280 --> 00:53:35.440
Yes.
00:53:35.679 --> 00:53:37.519
November 16th through the 19th.
00:53:37.599 --> 00:53:40.880
So please be sure to stop by and say hi if you're going to be there.
00:53:41.280 --> 00:53:45.119
We'll be recording CBT live right from the show floor.
00:53:45.519 --> 00:53:47.440
We'll be doing other interviews throughout the day.
00:53:47.519 --> 00:53:48.800
So we are really looking forward to that.
00:53:48.960 --> 00:53:50.159
That's going to be here before we know it.
00:53:50.239 --> 00:53:53.519
And um we look forward to seeing you all out there in San Diego.
00:53:53.679 --> 00:53:54.239
Yep.
00:53:55.599 --> 00:53:56.159
San Diego.
00:53:56.400 --> 00:53:56.960
San Diego.
00:53:58.239 --> 00:54:00.000
Do you know what San Diego stands for?
00:54:00.159 --> 00:54:01.199
No, we're not having this conversation.
00:54:02.320 --> 00:54:03.679
We will see you all tomorrow.
00:54:04.000 --> 00:54:05.760
Thanks for joining us today.
00:54:06.079 --> 00:54:06.880
Have a great day.
00:54:11.440 --> 00:54:13.920
Keep the whole market tuned in.
00:54:15.280 --> 00:54:17.039
Monday morning, Keystone and Jersey.
00:54:17.280 --> 00:54:18.880
No numbers on the boat room moves.
00:54:19.119 --> 00:54:19.760
That's a day.
00:54:19.920 --> 00:54:22.079
From the showroom floor to the vendor car.
00:54:22.239 --> 00:54:25.440
We bring the latest stories, breaking down head hard dealers in the room.
00:54:25.599 --> 00:54:26.480
Tell us what they see.
00:54:26.800 --> 00:54:29.039
Inventory, margin, digital strategy.
00:54:29.280 --> 00:54:32.000
No rumor, no noise, just the facts and motion.
00:54:32.079 --> 00:54:36.400
We tell out of news with the clear eye focus and on his own head.
00:00:00.320 --> 00:00:01.439
AI is moving fast.
00:00:01.600 --> 00:00:03.520
If you're dealing with you, ready for what's next.
00:00:03.680 --> 00:00:06.799
And the California Cars Act is raising the stakes.
00:00:06.959 --> 00:00:08.560
What needs to change at your store?
00:00:08.720 --> 00:00:11.359
Find out all that and more right here on CBT Live.
00:00:18.320 --> 00:00:23.440
Hey everyone, welcome into another edition of CBT Live right here at the CBT Automotive Network.
00:00:23.519 --> 00:00:25.120
Today is Wednesday, October 7th.
00:00:25.199 --> 00:00:26.239
I'm Jim Fitzpatrick.
00:00:26.399 --> 00:00:27.839
And I'm Bridget Fitzpatrick.
00:00:27.920 --> 00:00:29.440
Thank you so much for joining us today, everyone.
00:00:29.679 --> 00:00:31.359
Yep, it's gonna be a great, uh, great show.
00:00:31.600 --> 00:00:33.039
We have a great show coming up.
00:00:33.119 --> 00:00:41.359
We're gonna welcome Todd Smith, CEO of Core AI, and he's gonna be live to hear his perspective on the future of AI within your dealership.
00:00:41.439 --> 00:00:44.000
And the California Cars Act is now in effect.
00:00:44.079 --> 00:00:52.960
We'll break down what the new rules mean for dealers and what you need to be doing differently with Brian Moss, president of the California New Car Dealers Association.
00:00:53.119 --> 00:00:54.159
So great stuff there.
00:00:54.479 --> 00:00:54.960
No question.
00:00:55.359 --> 00:00:58.079
That California Cars Act has um caused.
00:00:58.320 --> 00:01:07.359
I've spoken to some dealers out in California and they're like, eh, yeah, this is really, I mean, we're talking about return uh, you know, policies and what have you on used cars and some other things.
00:01:07.439 --> 00:01:09.840
I'm really looking forward to our discussion with Brian today.
00:01:09.920 --> 00:01:13.519
He's a great guy, he does an incredible job for the association out there in California.
00:01:13.760 --> 00:01:14.079
He does.
00:01:14.319 --> 00:01:18.879
And uh so I'm I'm really interested to hear what he's got to say about this and how it's impacted the industry.
00:01:19.280 --> 00:01:20.079
Me too, for sure.
00:01:20.239 --> 00:01:23.920
Before we get to that, I would like to thank our sponsor, Force Marketing.
00:01:24.159 --> 00:01:31.920
Turn your data into more dealership opportunities with automotive marketing technology built for the entire customer life cycle.
00:01:32.079 --> 00:01:39.439
Reach in-market shoppers, reconnect with website visitors, acquire inventory, and keep customers coming back to the service drive.
00:01:39.519 --> 00:01:43.040
And you can learn more at forcemktg.com.
00:01:43.840 --> 00:01:44.959
Thank you, Force Marketing.
00:01:45.200 --> 00:01:45.359
Right.
00:01:45.519 --> 00:01:45.680
Yes.
00:01:45.920 --> 00:01:48.799
Run by one of the finest executives in the automotive industry.
00:01:49.120 --> 00:01:50.640
He's customer great parents.
00:01:50.879 --> 00:01:51.680
He really does.
00:01:52.719 --> 00:01:53.439
He really does.
00:01:53.519 --> 00:01:56.000
Those guys, man, they just nail it, you know?
00:01:56.319 --> 00:02:00.640
So we've got a few stories here.
00:02:00.719 --> 00:02:00.799
Yes.
00:02:01.760 --> 00:02:03.599
I'm getting all right.
00:02:03.680 --> 00:02:11.360
The FTC has dismissed its case against Asbury and three of its Texas dealerships, ending a legal fight that started back in 2024.
00:02:11.520 --> 00:02:12.560
We've talked about this before.
00:02:12.719 --> 00:02:12.879
Yep.
00:02:13.120 --> 00:02:16.319
The FTC had accused the dealerships of adding products.
00:02:18.479 --> 00:02:19.919
Adding products consumer.
00:02:20.319 --> 00:02:20.960
Okay, sorry.
00:02:21.039 --> 00:02:23.680
I I'm gonna blame the writer, which is me.
00:02:24.719 --> 00:02:26.080
You're blaming the writer and you?
00:02:27.120 --> 00:02:27.439
Okay.
00:02:27.599 --> 00:02:30.960
So they added products on that they that the buyers didn't agree to.
00:02:31.199 --> 00:02:33.520
Um they didn't agree to uh anyway.
00:02:34.000 --> 00:02:35.120
Got caught by the FTC on that.
00:02:35.520 --> 00:02:35.759
Exactly.
00:02:35.919 --> 00:02:42.400
So the FTC dismissed the case for procedural and resource reasons, not because Asbury was found innocent or guilty.
00:02:42.800 --> 00:02:43.520
So that's just done.
00:02:44.159 --> 00:02:44.479
Interesting.
00:02:44.639 --> 00:02:44.800
Okay.
00:02:44.960 --> 00:02:45.039
Yeah.
00:02:45.360 --> 00:02:46.719
Guys, the FTC's out there.
00:02:46.960 --> 00:02:48.000
Don't be next.
00:02:48.319 --> 00:02:48.560
That's right.
00:02:48.719 --> 00:02:49.039
You know?
00:02:49.199 --> 00:02:49.599
Radar.
00:02:49.680 --> 00:02:50.000
There's a radio.
00:02:50.240 --> 00:02:50.560
Radar.
00:02:50.719 --> 00:02:50.879
Cool.
00:02:51.120 --> 00:02:52.240
Go to radar and be true.
00:03:00.080 --> 00:03:07.039
So the charging network plans to begin training dealership employees at a few hundred locations in the first quarter of 2027.
00:03:07.840 --> 00:03:08.960
I see why they're doing this.
00:03:09.120 --> 00:03:15.520
The idea is to help the people selling EVs better understand charging so that they can explain it to the customers.
00:03:15.759 --> 00:03:23.680
Now, Iona is backed by eight major automakers, including Toyota, Honda, GM, Hyundai, Kia, BMW, Mercedes-Benz, and Cellantis.
00:03:23.759 --> 00:03:25.680
So and the network is quickly growing.
00:03:25.759 --> 00:03:32.159
They um had 90 active charging locations in January and 191 at the beginning of October.
00:03:32.639 --> 00:03:33.360
191.
00:03:33.599 --> 00:03:33.759
Yeah.
00:03:33.919 --> 00:03:34.240
Okay.
00:03:34.560 --> 00:03:34.719
Yeah.
00:03:35.599 --> 00:03:36.159
To be exact.
00:03:36.960 --> 00:03:38.159
That should take care of a city.
00:03:38.400 --> 00:03:38.639
Right.
00:03:40.000 --> 00:03:40.319
Okay.
00:03:40.719 --> 00:03:43.840
So we've got a really great show coming tomorrow.
00:03:44.000 --> 00:03:46.400
We are going to have two live segments.
00:03:46.560 --> 00:03:48.479
So we're going to have to studio here.
00:03:48.639 --> 00:03:48.879
That's right.
00:03:49.039 --> 00:03:50.080
Adam Marburger, man.
00:03:50.159 --> 00:03:52.879
He brings in such great uh dealers and he does.
00:03:53.199 --> 00:03:53.520
He does.
00:03:53.680 --> 00:03:59.599
He he's going to bring in, actually, we'll have dealers in here all day tomorrow getting some great content recorded for Adam's show.
00:03:59.840 --> 00:04:02.719
And then um Who's he bringing in that we're going to have live on the show?
00:04:02.960 --> 00:04:06.879
Well, we're going to have Lou Ramirez and Fred Lenart's from Dry Coffee.
00:04:07.199 --> 00:04:07.840
I love their podcast.
00:04:08.479 --> 00:04:09.439
They're going to bring the energy.
00:04:09.520 --> 00:04:10.159
We know that for sure.
00:04:10.400 --> 00:04:10.479
Yes.
00:04:10.639 --> 00:04:11.680
They are sure.
00:04:12.080 --> 00:04:15.599
Always a great, um positive, empowering.
00:04:16.000 --> 00:04:19.759
Whenever we talk to those guys, it's just a lot of fun and very energetic.
00:04:20.480 --> 00:04:21.839
They make you feel good about being in the business.
00:04:22.000 --> 00:04:22.240
They do.
00:04:22.399 --> 00:04:22.879
About the car business.
00:04:23.199 --> 00:04:23.439
They do.
00:04:23.759 --> 00:04:25.360
And we should feel good about being in the car business.
00:04:25.600 --> 00:04:25.920
That's right.
00:04:26.079 --> 00:04:26.240
Right?
00:04:26.480 --> 00:04:27.120
That's right.
00:04:27.519 --> 00:04:27.839
All right.
00:04:27.920 --> 00:04:29.680
So we're looking forward to both of those conversations.
00:04:29.759 --> 00:04:33.279
We're going to talk to um Fred and Lou first and then Adam after that.
00:04:33.519 --> 00:04:35.120
So we'll have two segments tomorrow.
00:04:35.519 --> 00:04:35.759
Tomorrow.
00:04:36.079 --> 00:04:40.160
But um I bring this up because we would love for you to send in your questions for them.
00:04:40.399 --> 00:04:41.680
We will ask them on air.
00:04:41.759 --> 00:04:46.800
So if you have any questions for these guys about anything, we will ask them on air.
00:04:46.959 --> 00:04:53.519
So you can send those questions to live L-I-V-E at cbtnews.com and we'll make sure we get to those questions.
00:04:53.920 --> 00:04:55.279
I wonder if they're going to bring us some coffee.
00:04:55.439 --> 00:04:58.319
You know, you can actually buy coffee from the Coffee Guy podcast.
00:04:58.399 --> 00:04:58.879
Did you know that?
00:04:59.120 --> 00:05:00.160
I didn't know that, but no, I do.
00:05:00.480 --> 00:05:01.360
They actually sell coffee.
00:05:01.600 --> 00:05:03.439
That might be one of the questions I asked them tomorrow.
00:05:03.600 --> 00:05:04.639
Let's talk about that coffee.
00:05:05.680 --> 00:05:14.319
Tomorrow we'll be uh very busy in here because as I said, when Adam Marberger comes in, um he brings, I think one time he brought like 12 dealer principals.
00:05:14.399 --> 00:05:14.800
Yeah, yeah.
00:05:14.959 --> 00:05:17.040
GMs and dealer principals with him and what have you.
00:05:17.120 --> 00:05:23.040
And uh this place, uh our studio and our we we have, I guess around 13,000 square feet total.
00:05:23.199 --> 00:05:23.360
Yeah.
00:05:23.519 --> 00:05:26.959
And uh man, it's just buzzing when he comes in with all these people.
00:05:27.199 --> 00:05:30.000
And in like three, four hours, he knocks out all of his content.
00:05:30.160 --> 00:05:35.199
We interview people in the podcast studio as well while he's doing his thing here in the in the studio.
00:05:35.279 --> 00:05:35.839
It's pretty exciting.
00:05:35.920 --> 00:05:36.160
We love it.
00:05:37.519 --> 00:05:41.439
We called it Marburger Day and it's really, really always a great time.
00:05:41.680 --> 00:05:42.879
So we're looking forward to that tomorrow.
00:05:42.959 --> 00:05:44.319
So be sure to send in your questions.
00:05:44.480 --> 00:05:47.040
Again, that's live at cbtnews.com.
00:05:47.199 --> 00:05:53.040
And for any questions that you have, you have any questions for me and Jim or any of the upcoming guests that we have on CBT Live.
00:05:53.199 --> 00:05:59.439
We would love to hear even comments, questions, and we'll make sure that we we get the to the get to those on on air.
00:05:59.519 --> 00:06:01.279
So that would be really fantastic.
00:06:01.519 --> 00:06:04.079
It might even be a question for one of our subject matter experts.
00:06:04.160 --> 00:06:13.279
You know, we produce 12 different shows on the CBT network, all focusing on different areas of the of the dealership operation, whether it be fixed ops or F and I or marketing or what have you.
00:06:13.360 --> 00:06:20.480
So uh if there's a question that you want one of our subject matters uh experts to answer, then uh send that question in and we'll get right to the right.
00:06:20.800 --> 00:06:24.160
Maybe it maybe it's for Dave Anderson that says, hey, how do you how do you lead people better?
00:06:24.319 --> 00:06:24.560
Whatever.
00:06:24.639 --> 00:06:26.480
Send it in and we'll get with them to answer it.
00:06:26.639 --> 00:06:27.839
So we are here for you.
00:06:28.000 --> 00:06:28.399
Yeah.
00:06:28.800 --> 00:06:37.839
Um so before we get to our first guest, who I'm really excited to talk about, he is an AI expert, all things AI, and he's really gonna uh I think uh what's gonna be a really great conversation with him.
00:06:37.920 --> 00:06:38.720
We're gonna learn a lot.
00:06:38.879 --> 00:06:40.800
But before we talk, is it still AI?
00:06:40.879 --> 00:06:41.600
Is it super simple?
00:06:41.920 --> 00:06:42.399
It's not SI.
00:06:42.560 --> 00:06:42.959
It's not SI.
00:06:43.279 --> 00:06:44.399
No, we changed it back.
00:06:44.720 --> 00:06:45.040
Okay.
00:06:45.439 --> 00:06:45.680
Okay.
00:06:46.000 --> 00:06:46.319
I think.
00:06:46.639 --> 00:06:52.160
So anyway, um, before we do, there is an interesting video that we want to show.
00:06:52.560 --> 00:06:56.720
Hey, let me tell the control room real quick to shut the earphone off so that we don't hear.
00:06:57.439 --> 00:06:58.240
So they're they're I know.
00:06:58.319 --> 00:06:59.439
We're hearing everything that they say.
00:07:00.079 --> 00:07:00.560
I took mine out.
00:07:00.639 --> 00:07:00.959
So anyway.
00:07:01.279 --> 00:07:01.759
You took it out?
00:07:02.000 --> 00:07:02.319
Yes.
00:07:02.480 --> 00:07:05.759
Um we love our control room, but I don't want to hear what they're talking about.
00:07:06.000 --> 00:07:06.720
Okay, that's good.
00:07:06.959 --> 00:07:09.040
They're talking, they're hard at work in there.
00:07:10.720 --> 00:07:11.759
They're hard at work in there.
00:07:11.920 --> 00:07:12.319
We can hear them.
00:07:12.879 --> 00:07:13.519
They really are.
00:07:14.079 --> 00:07:27.600
Um so anyway, we do want to um show you this video about okay, so it was this company out of Finland has um produced this video, and this is um an older generation of robots that they're getting rid of.
00:07:28.000 --> 00:07:28.560
Older generation.
00:07:29.279 --> 00:07:30.800
They did a very clever thing with them.
00:07:30.959 --> 00:07:31.519
Here it is.
00:07:32.000 --> 00:07:33.360
Here it is, check it out.
00:07:34.639 --> 00:07:35.360
Sorry.
00:08:12.959 --> 00:08:13.680
They're not people.
00:08:14.079 --> 00:08:15.600
You kind of feel sorry for them.
00:08:15.759 --> 00:08:18.160
They are people, robots are people too.
00:08:21.040 --> 00:08:23.920
Are they getting pushed by by Arnold?
00:08:24.240 --> 00:08:26.079
They they were programmed to do this.
00:08:26.399 --> 00:08:28.399
They're programmed to kill themselves, basically.
00:08:28.639 --> 00:08:28.879
Wow.
00:08:29.040 --> 00:08:29.680
Yeah.
00:08:32.080 --> 00:08:33.120
That's really something.
00:08:33.279 --> 00:08:33.600
Yeah.
00:08:33.840 --> 00:08:34.399
Hmm.
00:08:34.720 --> 00:08:36.240
Yeah, so anyway.
00:08:37.360 --> 00:08:38.080
And that's that.
00:08:39.200 --> 00:08:39.840
They're programmed to do this.
00:08:40.399 --> 00:08:51.679
Schwarzenegger had so much to do with this, he actually recommended them being jump dumped into this molten steel, but then actually it evolved into them programming this too.
00:08:51.759 --> 00:08:52.799
But that makes you wonder.
00:08:53.039 --> 00:08:58.159
Yeah, it's funny because when we first saw that, we thought it looks like an AI video, but it's it's not.
00:08:58.240 --> 00:08:59.600
That's a real full on production.
00:09:00.639 --> 00:09:01.679
Yeah, it's full-on production.
00:09:01.759 --> 00:09:02.720
I triple checked.
00:09:03.120 --> 00:09:03.440
Okay.
00:09:04.559 --> 00:09:07.840
So um, anyway, so I'm really excited about our next guest.
00:09:08.080 --> 00:09:09.519
Well, we got to ask him about this, by the way.
00:09:09.919 --> 00:09:11.360
Because he is the AI expert.
00:09:11.840 --> 00:09:18.000
He's um, you know, one of the uh industry leaders on AI, and uh he's literally written a book about it.
00:09:18.080 --> 00:09:22.000
Yeah, and um and uh he's the guy to ask about that video right there.
00:09:22.399 --> 00:09:22.799
That's right.
00:09:22.960 --> 00:09:24.480
So Todd There's the book.
00:09:24.639 --> 00:09:25.120
There it is, right?
00:09:25.519 --> 00:09:28.960
Intelligent dealership, how AI and data transform automotive retail.
00:09:29.279 --> 00:09:30.159
No, let's just talk about the book.
00:09:30.240 --> 00:09:31.200
We don't need to bring in mind.
00:09:31.600 --> 00:09:34.559
You know, we'll just Todd Smith, CEO of Core AI.
00:09:34.879 --> 00:09:40.080
He argues that they won't be replaced, but it will reshape where people spend their time.
00:09:40.320 --> 00:09:42.960
He joins us now live to talk about the dealership of the future.
00:09:43.120 --> 00:09:44.399
Todd, welcome to the show.
00:09:44.879 --> 00:09:46.000
Uh thank you for having me.
00:09:46.559 --> 00:09:48.480
Looking forward to our fun conversation today.
00:09:48.720 --> 00:09:49.759
Yes, it will be fun.
00:09:50.000 --> 00:09:50.799
Is it really Todd?
00:09:50.960 --> 00:09:52.720
He could be this could be Is it a clone?
00:09:52.879 --> 00:09:53.759
This could be a clone.
00:09:53.919 --> 00:09:57.120
Because maybe Todd, Todd's actually off on vacation in the Bahamas.
00:09:57.519 --> 00:09:59.200
So this clone is sitting in for him.
00:09:59.279 --> 00:10:00.240
No, it's good to see you, Todd.
00:10:00.320 --> 00:10:01.440
Thanks so much for joining us.
00:10:01.679 --> 00:10:03.200
No, thank you so much for having me.
00:10:03.279 --> 00:10:06.639
Yeah, synthetic Todd is uh showing up for meetings now.
00:10:06.720 --> 00:10:08.000
So there you go.
00:10:08.240 --> 00:10:08.960
That's right.
00:10:11.519 --> 00:10:16.399
You're like totally dialed in with your chat and your assistance and and and uh Claude.
00:10:16.559 --> 00:10:19.919
Yeah, it's unbelievable the way that it that you've got this relationship with.
00:10:22.639 --> 00:10:25.679
Sometimes I feel like I'm being cheated on, you know, because it's you do have a relationship.
00:10:27.279 --> 00:10:29.120
I'm like, can I get in on this conversation?
00:10:29.679 --> 00:10:29.919
No.
00:10:30.159 --> 00:10:31.919
The chat's got way better answers.
00:10:32.159 --> 00:10:37.679
Sounds like my my wife uh has her chat GPT tuned as well.
00:10:37.919 --> 00:10:42.159
I feel uh I'm just uh at the mercy of it constantly.
00:10:42.240 --> 00:10:43.360
So yeah, exactly.
00:10:44.240 --> 00:10:45.120
It is the future.
00:10:45.679 --> 00:10:52.559
So in your recently released white paper, you say the jobs don't necessarily disappear, they get rearranged.
00:10:52.639 --> 00:10:54.399
So talk to us about what you mean by that.
00:10:56.720 --> 00:10:57.759
That sounds so nice.
00:10:57.919 --> 00:11:00.240
We're gonna rearrange the jobs a little bit.
00:11:00.480 --> 00:11:01.919
I'm sorry, go ahead, go ahead.
00:11:02.240 --> 00:11:11.440
No, I you know, I I when I originally set out probably two plus years ago, I I had figured at least 20% of jobs would be gone.
00:11:11.600 --> 00:11:19.600
Yeah, just off the cuff, call center jobs, um, you know, BDCs, all these areas would be dynamically changed.
00:11:20.240 --> 00:11:33.200
And um, but as I've watched the industry, not only our industry, just AI itself and its capabilities evolve and what's possible, I realize that's probably not 100% accurate.
00:11:33.360 --> 00:11:56.480
I think we'll see a more gradual evolution inside where, and what I mean by by the change that I see happening is AI will replace tasks, of course, and yes, dealerships will lose a person here or there, but they will end up backfilling other positions uh because of efficiency.
00:11:56.639 --> 00:11:57.279
Think about it.
00:11:57.440 --> 00:12:13.600
If your service department gets 10 times more efficient between a part being ordered to be able to service the car, you're not taking cars, putting them on lifts, pulling them off, moving them to the side, putting another car on the lift while you wait for a part to show up.
00:12:13.759 --> 00:12:16.320
So efficiency will require more technicians.
00:12:16.639 --> 00:12:20.720
So headcount may not change as much as we originally thought.
00:12:20.879 --> 00:12:26.159
I think what we're going to see is just a shift of where the headcount lives inside the dealership.
00:12:26.320 --> 00:12:27.679
So yeah, for sure.
00:12:28.080 --> 00:12:35.200
You make the point that technicians are already a significant part of the rooftop and that their work is uh much harder to automate.
00:12:35.279 --> 00:12:41.679
What happens when AI starts freeing up capacity in other parts of the dealership, as you just mentioning?
00:12:42.080 --> 00:12:43.759
Yeah, so think about that.
00:12:43.919 --> 00:12:47.519
Uh, a world where look, do we need more technicians?
00:12:47.679 --> 00:12:47.919
Yes.
00:12:48.080 --> 00:12:50.559
Do we already have a massive shortage?
00:12:50.799 --> 00:12:51.440
Yes.
00:12:51.600 --> 00:12:53.679
Uh will tech fill that role?
00:12:53.919 --> 00:12:57.279
Probably the last role to be filled inside a dealership.
00:12:57.440 --> 00:13:07.200
Um, I believe, I think Steve Greenfield, there was a company they invested in called RoboTire or something that was supposed to be a robot to change tires uh on and off cars.
00:13:07.279 --> 00:13:09.120
Uh that one didn't go very well.
00:13:09.279 --> 00:13:14.559
I I think we'll see more of those try to fill the gap where humans, we just don't have enough.
00:13:14.720 --> 00:13:14.879
Sure.
00:13:15.120 --> 00:13:34.639
But just from the glide scope, I definitely feel uh that back end, which is the heart and profit center for a dealership, uh, the more efficient it gets, more profitable dealers become, um, you know, more valuable technicians become, it kind of changes the landscape of how a dealership probably operates.
00:13:34.879 --> 00:13:41.679
So now you've also said this change doesn't arrive as a big decision, it arrives on a Tuesday.
00:13:42.000 --> 00:13:43.200
What what do you mean by that?
00:13:43.600 --> 00:13:48.960
Yeah, so think about it where I think a lot of times we look for the easy button in life, right?
00:13:49.120 --> 00:13:56.799
Well, hey, let's hit the easy button, let's just add AI into our entire organization, and it's magically going to make everything perfect.
00:13:57.039 --> 00:13:59.279
That's just not what I see happening.
00:13:59.519 --> 00:14:06.320
I see lots of small bets, I see lots of iteration, trial and error, things work, things don't work.
00:14:06.480 --> 00:14:12.320
And I I meant by that happens on a Tuesday where you see these little breakthroughs.
00:14:12.480 --> 00:14:19.360
And then, you know, let's say your BDC department has six people in it, and unfortunately, one leaves.
00:14:19.519 --> 00:14:21.519
Maybe they get a better job, they go somewhere.
00:14:21.679 --> 00:14:26.000
And then you just don't backfill that position because you don't need to anymore.
00:14:26.080 --> 00:14:34.000
Yeah, AI is now taking up more and more of that workload, where before you would be now desperate to hire a new person to fill a seat.
00:14:34.240 --> 00:14:38.159
I think those seats get filled less and less through time.
00:14:39.120 --> 00:14:45.200
You also argue that dealers need to fix pay plans before they start redrawing the org chart.
00:14:45.360 --> 00:14:48.159
Why is compensation part of the puzzle here?
00:14:48.559 --> 00:14:49.360
Well, think about it.
00:14:49.519 --> 00:14:51.120
What what do we all drive from?
00:14:51.440 --> 00:14:52.399
Comp plans, right?
00:14:52.639 --> 00:14:56.240
If you want performance of your sales team, give them aggressive comp plan.
00:14:56.480 --> 00:14:56.720
That's right.
00:14:56.799 --> 00:14:59.840
And they'll work the comp plan to the nth degree, right?
00:15:00.080 --> 00:15:03.200
Now, our comp plans today are the almost the same comp plans.
00:15:03.279 --> 00:15:06.000
Well, they are since I started in the business in 1990.
00:15:06.080 --> 00:15:09.279
So 36 years almost unchanged comp plans.
00:15:09.840 --> 00:15:19.360
I think our reward structure is going to need to change because some of the money we pay people to do, that work will shift into complete automation.
00:15:19.519 --> 00:15:32.480
But maybe we shift the pay plan into more longevity of customer relationship, uh, more balanced into this CSI world, how we just maintain our customers through time and maintain that belly-to-belly relationship.
00:15:32.799 --> 00:15:35.360
So I think pay plans dictate behavior.
00:15:35.519 --> 00:15:36.960
I think we would all agree on that.
00:15:37.120 --> 00:15:37.440
Oh, yeah.
00:15:37.600 --> 00:15:42.159
And that's why I say we really should rethink our pay plans and automotive.
00:15:42.320 --> 00:15:58.559
Um, I just saw another post I thought was very interesting where they said, you know, if I was starting a dealership today, would you just give all your salespeople a six-figure salary and dynamics around that to build a better organization?
00:15:58.799 --> 00:16:02.799
Where you're not having people just always leave to the next sales job.
00:16:02.879 --> 00:16:03.120
Yeah.
00:16:03.279 --> 00:16:06.879
You're trying to re-establish how the organization runs.
00:16:06.960 --> 00:16:09.759
Because think about today, sales plans are very cutthroat.
00:16:10.000 --> 00:16:13.200
You know, salespeople fight over deals.
00:16:13.360 --> 00:16:17.840
They'll change and manipulate data inside the CRM to steal deals.
00:16:18.240 --> 00:16:19.279
I'm not saying that really.
00:16:19.919 --> 00:16:21.759
Todd, Todd, they're not doing that.
00:16:22.000 --> 00:16:22.240
Right.
00:16:22.559 --> 00:16:23.679
Say it isn't so.
00:16:24.320 --> 00:16:48.240
That really happens, but I I look at this as we probably are going to have to revisit compensation first, then the process of how people work, and then obviously ultimately layering more and more uh AI onto the organization to go from what I consider today we're at this bolt-on to becoming a truly AI native organization.
00:16:48.639 --> 00:16:49.200
Sure, sure.
00:16:49.440 --> 00:17:08.400
As a side note here, just since you brought it up, what do you think of a of the business model or a new business model in auto retail today that does change the compensation to a salary that individuals can live with and then have different uh KPIs in place to ensure that that salesperson's doing a good job?
00:17:08.559 --> 00:17:10.319
Um what what's your take on that?
00:17:10.720 --> 00:17:14.160
Yeah, look, I'm I'm open if the economics work.
00:17:14.559 --> 00:17:17.279
And I think that's the challenge uh right now.
00:17:17.519 --> 00:17:22.720
Our economics inside retail have always just been geared towards pure production of the salesperson.
00:17:22.880 --> 00:17:23.200
Yep.
00:17:23.359 --> 00:17:29.440
Um but then we added a whole nother layer of BDC, which is just made our salespeople uh inefficient, right?
00:17:29.519 --> 00:17:36.160
Because now you throw another person that's doing all the lead management, yeah, and then now there's a new space and confliction there.
00:17:36.400 --> 00:17:58.880
So I do believe we need to rework our organizations, and I do believe we're going to have to, I'm not gonna say start from a clear blank slate, but I will say we should challenge every process and position organizationally in the age of this agentic workforce that is emerging.
00:17:59.119 --> 00:17:59.599
Yeah, yeah.
00:17:59.839 --> 00:18:00.000
Right.
00:18:00.319 --> 00:18:03.119
So, Todd, you have what you call the swap test.
00:18:03.200 --> 00:18:07.119
If you cancel a vendor tomorrow, what do you still have on Monday?
00:18:07.279 --> 00:18:10.240
Why is this such an important question for dealers to ask?
00:18:11.119 --> 00:18:16.160
Well, I look at that question as a very specific one around two things.
00:18:16.400 --> 00:18:20.400
One, if I swapped a technology, what changes?
00:18:21.279 --> 00:18:25.839
And if nothing really changes, how valuable was that technology?
00:18:26.480 --> 00:18:33.200
Meaning, like if you had a piece of technology and you got rid of it, did your processes really change organizationally?
00:18:33.359 --> 00:18:39.119
Did you have to completely rework the org now that you're missing that piece of technology?
00:18:39.359 --> 00:18:42.319
In many cases, the dealership would go on.
00:18:42.480 --> 00:18:44.640
They cancel technology every week, right?
00:18:44.799 --> 00:18:46.559
And they just keep going on.
00:18:46.880 --> 00:18:53.519
The other side of that is what do you keep when you cancel that technology?
00:18:53.759 --> 00:19:10.799
So if organizationally, let's say you worked with a voice tool that you have now trained on handling your customers in service, and you keep tweaking it, you give it more instructions, you make it better and better, now you cancel that service.
00:19:11.039 --> 00:19:12.240
What do you keep?
00:19:12.400 --> 00:19:18.720
And if you don't keep that intelligence, it's not owned by the dealership, you're a renter.
00:19:19.039 --> 00:19:28.640
And think about that type of future where how will you grow exponentially if you're restarting every time you change out the tech on top?
00:19:28.960 --> 00:19:29.279
Good point.
00:19:29.519 --> 00:19:30.319
That's a big change.
00:19:30.640 --> 00:19:36.000
And I think we need to think differently uh and run from a data first layer.
00:19:36.240 --> 00:19:44.480
And that, you know, I wrote a book about this, but that to me is the number one driving force that I think we have to start thinking separate.
00:19:45.119 --> 00:19:47.599
And there's the book the intelligent dealership.
00:19:48.160 --> 00:19:53.359
Uh you say that dealers need their own operational record, not just rent access to it.
00:19:53.599 --> 00:19:56.400
What does uh owning the record look like?
00:19:56.960 --> 00:19:57.839
Yeah, think about it.
00:19:57.920 --> 00:20:05.839
Uh dealers you can now extract data from DMS, CRM, call services, uh payroll companies.
00:20:06.079 --> 00:20:08.640
All that data has inherent value.
00:20:08.880 --> 00:20:16.400
And it has compounding value the more you have of it and the more it's cleaned up, normalized into something the dealership actually owns.
00:20:16.559 --> 00:20:18.799
So I always recommend a dealership.
00:20:18.880 --> 00:20:26.160
We we set up dealers in a what's called S3 bucket, an AWS instance uh where they actually own their data.
00:20:26.319 --> 00:20:34.000
No matter what happens, no matter what vendor they decide to switch at the higher up, um their data stays preserved.
00:20:34.160 --> 00:20:35.920
And there's huge value in that.
00:20:36.079 --> 00:20:44.559
Um think about it, all these foundational models, the ChatGPTs, clause of the world, they depend on data to build that intelligence layer.
00:20:44.720 --> 00:20:50.319
And I think dealers need to think in a smaller version of that for their own operation.
00:20:50.559 --> 00:20:53.039
Because right now we're all people driven, right?
00:20:53.200 --> 00:20:54.000
Think about that.
00:20:54.160 --> 00:20:59.920
We hire people, we hire better people, and then when those people leave, all of that intelligence walks out the door.
00:21:00.319 --> 00:21:10.640
Dealers need to build a system to start to capture that intelligence internally and build ultimately new processes from what the system has learned about how it does business.
00:21:11.839 --> 00:21:32.240
Um I I've asked this question of others that are in the industry and on the AI side of the industry, and and that is there there was a dealer that I spoke to that's a large uh volume dealer and has got a number of rooftops, and he said over the course of the next five to ten years, he feels he should be able to run his dealership group on about 25% less headcount because of AI.
00:21:32.480 --> 00:21:39.200
Do you think that that's that he's he's on onto something there or that uh not so fast or not so fast?
00:21:39.519 --> 00:21:48.480
Look, I think I always said in the beginning it was probably 20% of people inside a store are doing things that computers could easily do today.
00:21:48.960 --> 00:21:52.960
Um that that roadmap to get there is very complex.
00:21:53.440 --> 00:21:59.359
One, we have software that's tied to OEMs that inhibits this complete automation.
00:22:00.160 --> 00:22:08.480
Um obviously being able to, let's say, just access DMS data to submit warranties, not very easy today.
00:22:08.640 --> 00:22:12.079
There's no uh automatic electric transmission for that.
00:22:12.319 --> 00:22:14.880
A human has to log in and do that work.
00:22:15.119 --> 00:22:25.599
And, you know, headless browsers, which we call just being able to let the software access those systems, breaks a lot of terms and services agreements inside contracts.
00:22:25.839 --> 00:22:33.759
And we've really hardened the internet over the last 25 years to be anti-bot, to be anti-crawling by these tools.
00:22:33.839 --> 00:22:36.160
So that also changes the dynamic a little bit.
00:22:36.319 --> 00:22:42.720
So I think it'll take a little bit of time, uh, but that time will be a pretty accelerated curve, right?
00:22:42.799 --> 00:22:42.960
Yeah.
00:22:43.279 --> 00:22:52.240
I just saw over the next couple years, our biggest lifts will just change organizationally by changing how we look at technology.
00:22:52.400 --> 00:22:58.000
Instead of bolting it on, which what we've done over the last 30 years, uh, we'll kind of look at it.
00:22:58.160 --> 00:23:05.680
Well, how could I rethink this process and leverage AI to help me execute what I'm already trying to do?
00:23:06.079 --> 00:23:19.599
Which could be sell a car, desk a deal, um, follow up on service, um, maintain a relationship with a customer, follow up on a bad CSI uh survey, things like that.
00:23:19.839 --> 00:23:20.400
Yeah, yeah.
00:23:20.559 --> 00:23:24.559
Now, every book author that I speak to is always working on the next book.
00:23:24.720 --> 00:23:25.680
Is that the case with you?
00:23:25.759 --> 00:23:31.599
Or do you are you already either working on it or you have one in your mind that you're like, oh, I want to I want to write a book about this?
00:23:32.000 --> 00:23:35.200
Yeah, I'm already part of that work on it.
00:23:35.279 --> 00:23:37.359
Yeah, so I yeah, well, why not?
00:23:37.519 --> 00:23:39.440
Yeah, I feel like a lot changes.
00:23:39.599 --> 00:23:39.920
Sure.
00:23:40.079 --> 00:23:44.000
Um, and there's a lot to write about, and I like to write.
00:23:44.160 --> 00:23:48.720
So I feel like getting my thoughts out on paper is a fun exercise every morning.
00:23:48.880 --> 00:23:49.119
Sure.
00:23:49.279 --> 00:23:53.279
Uh we'll we'll see if the book actually fully comes to fruition.
00:23:53.440 --> 00:24:27.440
Um, but I'm definitely uh in the throes of continuing to write about our not only our industry, but the technology in general and just how do we how do we interact with it that we can get the most out of it, uh become success more successful or operationally, and uh and also don't lose sight of what we're you know trying to do, which is you know build a great company of a great team, um, and obviously you want to make it profitable, but you know, killing 75% of your people out of your organization doesn't really help, I think, uh, to do that.
00:24:27.680 --> 00:24:31.359
But look, the reality is our entire lives are going to change, right?
00:24:31.519 --> 00:24:32.480
Yeah, they're already changing.
00:24:33.119 --> 00:24:33.680
Yeah, already.
00:24:33.920 --> 00:24:35.920
I just think we're gonna see an acceleration of that.
00:24:36.240 --> 00:24:36.559
That's right.
00:24:36.720 --> 00:24:40.079
My wife is already uh closer to the AI than you are to me.
00:24:40.319 --> 00:24:43.200
You just listen to it.
00:24:43.359 --> 00:24:44.480
Like that's understandable or the one.
00:24:45.839 --> 00:24:46.480
Show it's a she.
00:24:46.799 --> 00:24:47.359
She understands me.
00:24:48.880 --> 00:24:49.759
It's a she's okay.
00:24:52.799 --> 00:24:53.359
It really is.
00:24:53.440 --> 00:24:53.680
I know.
00:24:54.559 --> 00:24:56.240
The world is though, like, think about it.
00:24:56.319 --> 00:24:59.039
If we can help us do the things we are doing, right?
00:24:59.119 --> 00:25:03.359
I I'm taking my wife to I'm doing a 20 group up in New York in a few weeks.
00:25:03.519 --> 00:25:08.319
And uh my wife wanted to go because we're staying at a very nice hotel, which is totally always works out like that.
00:25:08.640 --> 00:25:09.119
By the way, yes.
00:25:09.359 --> 00:25:12.400
Yeah, but then she's like, oh, let me plan out our time.
00:25:12.480 --> 00:25:14.880
So she has a lunch planned at I guess Tiffany's.
00:25:14.960 --> 00:25:15.599
You can eat lunch there.
00:25:15.920 --> 00:25:16.480
I did not know this.
00:25:17.039 --> 00:25:19.519
Yeah, not breakfast, not breakfast at Tiffany's, but lunch.
00:25:20.319 --> 00:25:21.039
It's like a lunch.
00:25:21.119 --> 00:25:24.799
Uh but she planned out everything with her chat TPT.
00:25:25.039 --> 00:25:25.119
Yeah.
00:25:25.279 --> 00:25:25.440
Yeah.
00:25:25.599 --> 00:25:27.599
That that lunch might be expensive, Todd.
00:25:27.680 --> 00:25:29.359
So get I hope uh book sales are up there.
00:25:29.519 --> 00:25:30.640
I hope we got a lot of client.
00:25:30.880 --> 00:25:31.920
I like the way she did that, though.
00:25:32.640 --> 00:25:33.839
Let's have lunch at Tiffany's.
00:25:34.000 --> 00:25:34.079
Right?
00:25:34.240 --> 00:25:34.480
That's good.
00:25:34.720 --> 00:25:34.880
Right.
00:25:34.960 --> 00:25:36.720
And she did the whole itinerary on yeah.
00:25:37.039 --> 00:25:37.279
That's right.
00:25:37.440 --> 00:25:39.519
Six love braces later, right?
00:25:39.759 --> 00:25:40.640
Yes, exactly.
00:25:40.799 --> 00:25:42.240
I can't wait to get to the next call.
00:25:42.559 --> 00:25:42.880
Oh, different.
00:25:43.440 --> 00:25:46.240
Oh, sorry, I got the wrong my wife reminds me I got the wrong brand.
00:25:46.400 --> 00:25:46.799
Sorry about that.
00:25:47.039 --> 00:25:48.319
What would you get at Tiffany's?
00:25:50.240 --> 00:25:51.119
Lunch and breakfast.
00:25:51.759 --> 00:25:52.640
Lunch and breakfast.
00:25:53.279 --> 00:25:54.640
It's gonna be an expensive one for you.
00:25:54.799 --> 00:25:56.480
Hey, I think we've got a I think we've got a question.
00:25:56.720 --> 00:25:57.680
We do have a question.
00:25:57.920 --> 00:26:04.400
Yeah, if if a dealer wants to start small, which two departments make the best first AI use case?
00:26:04.559 --> 00:26:05.359
That's a good question.
00:26:06.240 --> 00:26:10.559
Yeah, so uh my two big ones are fixed ops.
00:26:10.720 --> 00:26:10.960
Okay.
00:26:11.200 --> 00:26:20.400
I think AI can make a very powerful play, not consumer-facing, but internally to be more operationally efficient.
00:26:20.559 --> 00:26:22.480
I think there's a lot of opportunity there.
00:26:22.640 --> 00:26:23.680
And a back office.
00:26:24.079 --> 00:26:31.519
I think back office is a route memory, literally tons of tasks nobody wants to do.
00:26:31.680 --> 00:26:33.279
Mistakes are very expensive.
00:26:33.519 --> 00:26:33.839
Yes.
00:26:34.000 --> 00:26:47.920
Um, and that could be everything from monthly end-of-month reconciliation, uh, inventory reconciliation, uh, analyzing warranties before factory submission to make sure everything is checked.
00:26:48.319 --> 00:26:58.400
There's, I think, a plethora of opportunities in both back office and fixed ops that doesn't necessarily mean I have to touch my customer with the technology.
00:26:58.640 --> 00:26:58.799
Yeah.
00:26:58.960 --> 00:27:08.000
This might put an end to uh dealer 20 meetings, because now you'll just take your financial statement, send it to chat, and say, tell me where the the the problem areas are.
00:27:09.680 --> 00:27:10.079
I know, I know.
00:27:10.400 --> 00:27:10.720
I'm joking.
00:27:10.799 --> 00:27:11.119
I'm joking.
00:27:11.680 --> 00:27:13.519
But no, no, seriously, like what you say that.
00:27:13.759 --> 00:27:14.640
What are the weak spots?
00:27:14.720 --> 00:27:15.279
What are you know?
00:27:16.079 --> 00:27:19.200
The real reality is uh the think about a financial statement.
00:27:19.359 --> 00:27:21.519
You have a snapshot of the dealership.
00:27:21.599 --> 00:27:28.559
Yeah, you really need all the underlying data, you do, that nuanced data to really do those deep analysis, right?
00:27:28.880 --> 00:27:32.400
I I think 20 group is as Brit saying it's about getting together.
00:27:32.640 --> 00:27:35.440
It is, it's about working through problems together.
00:27:35.680 --> 00:27:35.920
That's right.
00:27:36.160 --> 00:27:40.319
And it's about, to me, like sharing wins and losses.
00:27:40.559 --> 00:27:44.960
And I think like you can sit in a team and go, yeah, that was a bad one.
00:27:45.039 --> 00:27:46.079
I shouldn't have done that.
00:27:46.240 --> 00:27:49.440
And all the other 19 other dealers are like, yep, we told you.
00:27:49.680 --> 00:27:56.720
Or they're like, look, you were you were tip of the spear, you experimented for, you know, what do we learn?
00:27:56.799 --> 00:28:01.039
Or what did you learn that we can now learn from to apply back to our business?
00:28:01.200 --> 00:28:09.119
So I think there's a lot of that componentry in all the groups that I spend time with, uh, even more than just the hard numbers of things.
00:28:09.279 --> 00:28:23.519
Um, but I definitely see that giving AI deeper and deeper access to the dealer's data pool once they own it begins to highlight things about how the dealer operates that they might not even be aware of.
00:28:23.759 --> 00:28:24.079
That's right.
00:28:24.240 --> 00:28:27.519
And by the way, for my good friends at NCM and NAD, I was just kidding.
00:28:27.599 --> 00:28:30.400
It was just like a light kind of a joking.
00:28:30.640 --> 00:28:31.200
Ha ha ha ha.
00:28:31.279 --> 00:28:31.759
It's funny.
00:28:31.920 --> 00:28:33.279
AI taking the place of that.
00:28:33.519 --> 00:28:33.839
No.
00:28:34.079 --> 00:28:34.960
Could never do that.
00:28:35.119 --> 00:28:38.720
So what is that ticking mail you're getting from NCM?
00:28:40.079 --> 00:28:42.319
Oh my gosh, it's exactly the role.
00:28:42.559 --> 00:28:44.319
No, the uh no, I'm serious.
00:28:44.559 --> 00:28:50.880
I I was been members of uh of you know and our uh dealer 20 groups, love them, and I agree with you, Todd.
00:28:50.960 --> 00:28:51.599
You gotta have them.
00:28:51.680 --> 00:28:57.680
It's all about the being in the group and having everybody laugh at your uh loss and your Toyota statement.
00:28:57.920 --> 00:28:58.799
Uh no, I'm kidding.
00:28:58.960 --> 00:29:00.480
But uh roll.
00:29:01.440 --> 00:29:04.160
How did you lose money during a Toyota dealership?
00:29:04.960 --> 00:29:05.759
How is that possible?
00:29:06.079 --> 00:29:06.400
That's right.
00:29:06.480 --> 00:29:07.359
How is that possible?
00:29:08.079 --> 00:29:12.240
It is it is again an amazing time to be in our industry.
00:29:12.319 --> 00:29:18.079
I I think we are ill-prepared for the acceleration that we have now already started.
00:29:18.240 --> 00:29:20.720
Right now, and I think it's gonna be fun.
00:29:20.880 --> 00:29:23.279
I think it's gonna be very challenging for us.
00:29:23.359 --> 00:29:28.640
Um, but I think smart dealers, look, uh as you know, dealers are entrepreneurs.
00:29:28.799 --> 00:29:30.720
And what are entrepreneurs good at?
00:29:30.960 --> 00:29:31.599
Evolving.
00:29:31.839 --> 00:29:35.680
That's right, that's right, and adapting to whatever gets thrown at them.
00:29:35.920 --> 00:29:42.880
And I think that is a hardened, unique quality that makes car people car people.
00:29:43.200 --> 00:29:43.599
That's right.
00:29:43.920 --> 00:29:46.640
Todd Smith, CEO of Core AI.
00:29:46.960 --> 00:29:48.640
Todd, thank you so much for stopping by.
00:29:48.880 --> 00:29:49.839
Very much appreciate it.
00:29:49.920 --> 00:29:53.839
This is the guy that you want in your corner for all the answers on AI.
00:29:53.920 --> 00:29:58.319
So I would imagine you're gonna be a very busy young man in the next uh five to ten years.
00:29:58.480 --> 00:30:02.319
The dealers are gonna be looking to you for saying, okay, help us figure this out.
00:30:02.400 --> 00:30:05.359
So we appreciate all of the uh time you've given us here at the station.
00:30:05.519 --> 00:30:05.920
Very appreciated.
00:30:06.960 --> 00:30:07.680
Thank you so much.
00:30:07.759 --> 00:30:09.039
It was great seeing both of you today.
00:30:09.200 --> 00:30:09.359
Thanks.
00:30:09.759 --> 00:30:10.319
You too.
00:30:11.039 --> 00:30:13.119
He's the man you want your corner for AI.
00:30:13.839 --> 00:30:14.160
He is the man.
00:30:14.559 --> 00:30:16.160
And how many shows have we done on AI?
00:30:16.240 --> 00:30:18.960
I mean, it's just it's so front and center for so many.
00:30:20.880 --> 00:30:25.039
We need to be having daily shows on this because it changes every day.
00:30:25.440 --> 00:30:26.960
Is that what your AI assistant said?
00:30:27.279 --> 00:30:27.680
That's what she said.
00:30:27.839 --> 00:30:28.640
Yeah, is that what she said?
00:30:29.440 --> 00:30:31.119
Anyway, before we get to our next guest.
00:30:31.359 --> 00:30:31.519
Yeah.
00:30:31.839 --> 00:30:33.920
So you all know how Jim likes funny clips.
00:30:34.240 --> 00:30:36.880
Well, I came across a clip that I thought would be fun to share.
00:30:38.319 --> 00:30:39.599
Okay, let's let's see what you got.
00:30:39.920 --> 00:30:41.680
So we have that one, guys.
00:30:42.480 --> 00:30:43.680
Can you describe a seat for a second?
00:30:44.079 --> 00:30:45.680
So I just want to have a quick chat with you.
00:30:45.759 --> 00:30:49.599
I I need to get someone to talk to our sales team, and I need someone to give them like a swift kick in the ass.
00:30:49.839 --> 00:30:50.480
I could do that.
00:30:50.640 --> 00:30:50.960
Absolutely.
00:30:51.200 --> 00:30:51.359
Okay.
00:30:51.519 --> 00:30:51.920
Okay, cool.
00:30:52.000 --> 00:30:52.400
I'm excited.
00:30:52.480 --> 00:30:53.279
I'm gonna go prep.
00:30:53.920 --> 00:30:54.559
It's gonna be good.
00:30:56.480 --> 00:30:57.359
Everyone zip it.
00:30:57.599 --> 00:30:58.319
Zip it now.
00:30:58.559 --> 00:30:59.119
Ice forward.
00:30:59.279 --> 00:31:00.720
I'll tell you what the Chevy motto is.
00:31:00.799 --> 00:31:02.319
It's together let's drive.
00:31:02.400 --> 00:31:05.440
But I'll tell you right now, here, it's more like together let's hide.
00:31:05.519 --> 00:31:06.880
Because you guys are selling shit out there.
00:31:06.960 --> 00:31:08.000
Sean, send me this pen.
00:31:08.960 --> 00:31:10.319
Um, it's red.
00:31:10.559 --> 00:31:13.599
That's why silver motto are still everyone stand up.
00:31:13.680 --> 00:31:14.400
We gotta do an exercise.
00:31:14.480 --> 00:31:15.119
Everyone's too tight.
00:31:15.200 --> 00:31:16.240
Stand up, we gotta shake this out.
00:31:16.400 --> 00:31:17.200
Go ahead and shake it out.
00:31:17.759 --> 00:31:18.160
Shake it out.
00:31:18.240 --> 00:31:20.319
Let's go to Harlem with it and shake it, shake it.
00:31:20.400 --> 00:31:20.720
Go ahead.
00:31:20.960 --> 00:31:22.240
Sean, don't know what the hell you're doing.
00:31:22.400 --> 00:31:23.759
Sean, go ahead and belly roll it.
00:31:23.920 --> 00:31:24.640
Belly roll it.
00:31:24.799 --> 00:31:26.160
Something Sean knows a lot about.
00:31:26.240 --> 00:31:31.039
One thing that that's very important to me that I learned is Sean, first off, where'd you get the bag of chips?
00:31:31.200 --> 00:31:32.799
Sean, don't eat a chip.
00:31:33.359 --> 00:31:37.440
I need you to get your head out of your ass and your hand on the bag of chips and pay attention.
00:31:37.519 --> 00:31:38.000
Do you understand?
00:31:38.240 --> 00:31:44.400
The phrase I came up with that's gonna help you guys is when you want to succeed as bad as you want to breathe, okay, that's when you're gonna be successful.
00:31:44.640 --> 00:31:45.279
Sean, what?
00:31:45.759 --> 00:31:47.440
Pretty sure that's Eric Thomas.
00:31:47.680 --> 00:31:48.799
It's right behind you.
00:31:49.599 --> 00:31:52.079
Eric Thomas get salesman of the year in 2010, because I don't think he did.
00:31:52.880 --> 00:31:53.680
You don't really say.
00:31:53.839 --> 00:31:56.240
But if you guys can do what I said today, you guys are gonna be successful.
00:31:56.319 --> 00:31:56.400
Okay.
00:31:56.559 --> 00:31:57.599
T on me, team on three.
00:31:57.680 --> 00:32:01.359
One, two, three, tink! All right, we can probably work on that.
00:32:01.599 --> 00:32:01.920
I don't know.
00:32:02.079 --> 00:32:03.359
That guy was really good.
00:32:03.680 --> 00:32:06.799
Not only was the whole skit a funny skit, that guy's a good actor.
00:32:07.119 --> 00:32:07.759
He is, he is.
00:32:07.839 --> 00:32:10.319
I've seen him on other on other things, but that that is spot on.
00:32:10.480 --> 00:32:11.359
It's the it was great.
00:32:11.440 --> 00:32:13.680
Yeah, swift kick in the ass is whatever his sales team needs.
00:32:14.160 --> 00:32:17.759
I think he was pulling pieces from a lot of different trainers that we all know and love.
00:32:18.160 --> 00:32:18.880
Yes, we do.
00:32:19.200 --> 00:32:22.880
So I thought that was pretty funny too, because I was like, oh, that's that looks like so-and-so.
00:32:23.920 --> 00:32:26.400
And I'm like, oh, that looks like so-and-so the way he was doing that.
00:32:27.279 --> 00:32:27.519
That's right.
00:32:27.599 --> 00:32:28.000
Yeah, that's right.
00:32:28.160 --> 00:32:28.799
So I thought that was great.
00:32:28.960 --> 00:32:30.240
No, I I thought it was great.
00:32:30.480 --> 00:32:36.319
You so we we should have the the the uh audience vote on who picks better clips, you or I.
00:32:36.880 --> 00:32:37.440
So far.
00:32:37.759 --> 00:32:38.160
Uh-huh.
00:32:38.880 --> 00:32:44.480
You have a lot more to choose from, but is that what your assistant said?
00:32:44.960 --> 00:32:45.519
That's what she said.
00:32:45.759 --> 00:32:46.000
Okay.
00:32:46.240 --> 00:32:48.720
I'm looking forward to this conversation coming up here.
00:32:49.200 --> 00:32:49.440
For sure.
00:32:49.759 --> 00:32:52.720
So the California Cars Act is now in effect.
00:32:53.039 --> 00:32:55.839
You can hear on the West Coast the dealer screaming right now.
00:32:55.920 --> 00:32:56.480
No, just kidding.
00:32:56.799 --> 00:32:59.759
Bringing new requirements for dealers are really across the state.
00:32:59.920 --> 00:33:00.960
So it's it's a big move.
00:33:01.359 --> 00:33:01.519
Right.
00:33:01.599 --> 00:33:05.920
So what do dealers need to know and what should they be doing differently now?
00:33:06.160 --> 00:33:11.519
Joining us is Brian Moss, president of the California New Car Dealers Association, to break all this down for us.
00:33:11.839 --> 00:33:13.680
Brian, thank you so much for joining us on the show today.
00:33:14.000 --> 00:33:14.319
That's right.
00:33:14.480 --> 00:33:14.960
Hey Brian.
00:33:15.200 --> 00:33:16.079
Thank you both for having me.
00:33:16.400 --> 00:33:19.039
Do you have to wear a flat jacket into dealerships these days?
00:33:19.119 --> 00:33:20.480
Because uh gosh.
00:33:21.920 --> 00:33:25.359
Yeah, I used to be over six feet, but I'm a little shorter now.
00:33:25.519 --> 00:33:29.680
Um, this this is a big move out there in California, right?
00:33:29.839 --> 00:33:36.000
I mean, they're let's uh for the people that are listening, break break down the uh the the actual law.
00:33:36.880 --> 00:33:37.279
Sure.
00:33:37.440 --> 00:33:49.759
So uh this was a law that was passed in 2025, and we uh asked the legislature to delay its effective date until October 1st, which was just a few days ago.
00:33:50.000 --> 00:34:00.400
Uh it's probably the biggest change in uh the car buying process since the car buyer's bill of rights all the way back in 2006.
00:34:01.119 --> 00:34:16.239
Uh what it requires is that if a customer makes an inquiry about a specific vehicle, uh dealer must give a written disclosure of the total price of that vehicle.
00:34:16.480 --> 00:34:34.639
Uh that total price is slightly different than it is under the FTC's interpretation, but that's a significant change, and dealers are trying to figure out how to uh provide that disclosure and keep a record of it because the law also requires they keep a record for two years.
00:34:34.960 --> 00:34:35.440
Wow.
00:34:36.000 --> 00:34:36.400
Yeah.
00:34:36.639 --> 00:34:40.159
So you have hosted several webinars for your members on this.
00:34:40.320 --> 00:34:43.760
What are the questions or concerns that you're hearing the most from your dealers?
00:34:44.639 --> 00:34:59.039
Well, I think it's uh uh because it's something new and uh dealers are used to their processes that they've employed for a while, uh they're trying to understand what the rules are, what the parameters, uh, what they need to do.
00:34:59.280 --> 00:35:04.719
Uh the questions uh revolve around uh exactly how do you have to provide it.
00:35:04.880 --> 00:35:10.400
It only has to be a written disclosure at the first inquiry about a specific vehicle.
00:35:10.480 --> 00:35:17.920
So you don't have to keep giving uh the same disclosure over and over, but you have to keep a record of it, and that's uh really important.
00:35:18.320 --> 00:35:22.159
Uh the bill contains lots of other things too.
00:35:22.400 --> 00:35:32.000
Uh it provides for a uh three-day rite of return for used vehicles priced under$50,000.
00:35:32.639 --> 00:35:36.719
So that's another process and procedure that dealers have to implement.
00:35:36.880 --> 00:35:49.119
It's similar to a two-day contract cancellation option that had been around for 20 years, but some of the rules have changed, some of the numbers have changed, and dealers obviously need to update their processes.
00:35:49.360 --> 00:35:49.519
Yeah.
00:35:49.920 --> 00:36:02.960
It would seem it would seem as though this is a gonna be a huge uh training uh initiative to retrain all of these salespeople and managers so that they know what the law is and how to abide by it.
00:36:03.039 --> 00:36:08.480
And uh are there any parts of the new law that dealers seem to be struggling with more than others?
00:36:09.679 --> 00:36:21.599
Yeah, I think that some of the initial inquiries that we're getting, uh we run a legal hotline uh at our association and uh staffed with a couple of attorneys who are fielding calls nonstop.
00:36:21.760 --> 00:36:21.920
Yeah.
00:36:22.079 --> 00:36:24.880
Uh we're also talking to lots of outside counsel.
00:36:25.199 --> 00:36:36.960
It's really about the um uh first disclosure of the total price, how that has to be provided, and uh how it has to be kept.
00:36:37.039 --> 00:36:43.760
Uh most dealers are trying to do that through their CRM so they can have a record of it.
00:36:44.000 --> 00:36:53.039
And some of the CRM uh partners are working uh diligently to come up with the technology to make it as seamless as possible.
00:36:54.159 --> 00:37:01.199
So what should dealers uh what should they be doing to make sure these procedures actually become part of their day-to-day operations?
00:37:02.079 --> 00:37:03.360
Well, I think Jim said it.
00:37:03.440 --> 00:37:04.960
It's uh it's about training.
00:37:05.119 --> 00:37:13.840
It's about uh explaining the rules to uh your team at your dealership and then implementing those rules.
00:37:14.000 --> 00:37:20.079
It's no different than any other law or process that uh requires a change.
00:37:20.239 --> 00:37:28.639
You've got to post new signs in the F and I offices, um, you've got to uh make sure you're uh keeping records, et cetera, et cetera.
00:37:28.800 --> 00:37:35.039
It's really about training and then following through to make sure everybody is doing what's necessary.
00:37:35.360 --> 00:37:53.440
One of the things um we've made clear and repeated over and over to dealers is you don't want your salespeople using their personal cell phone to communicate this first price unless it's through an app uh that your CRM can track.
00:37:53.760 --> 00:38:04.320
Because if you don't have a record of it, it's you know Jim's personal cell phone, yeah, you're not gonna be able to have the record if the DMV comes calling.
00:38:04.639 --> 00:38:05.039
Wow.
00:38:05.119 --> 00:38:08.480
That yeah, there are some big fundamental changes here, that's for sure.
00:38:08.639 --> 00:38:18.800
Also, in the event of a trade, if somebody trades a car in on a used car, now that retailer has got to hold on to that trade, can't wholesale it, can't resell it, right?
00:38:19.840 --> 00:38:28.000
Well, the the rule does account uh for uh uh the circumstances where a dealer sells uh the trade.
00:38:28.719 --> 00:38:36.000
Um we we knew that there there's a possibility that dealers uh have processes where they're gonna turn this around instantly.
00:38:36.320 --> 00:38:36.639
Sure.
00:38:36.800 --> 00:38:45.679
Um it's probably better if you hold the trade for three days because then you don't have all the paperwork and craziness that you have to do to comply with the law.
00:38:45.840 --> 00:38:46.079
Yeah.
00:38:46.320 --> 00:39:00.239
Um but if uh you know somebody uh does sell a car after day two and the customer comes back on day three, there's a way to give money back to the customer if the car has been wholesaled or retailed.
00:39:00.880 --> 00:39:02.639
What what's uh what have you heard so far?
00:39:02.800 --> 00:39:08.880
I know it's just the first week, it's week one, but what are what are some of the things that you're hearing back from your your members?
00:39:09.440 --> 00:39:10.239
Any anyway.
00:39:10.400 --> 00:39:23.760
Yeah, I think most of the calls right now uh, as we've been discussing, are about uh that uh first disclosure of the total price and how dealers are trying to figure out how to comply.
00:39:24.400 --> 00:39:30.320
Uh you know, we've emphasized to our dealers uh you don't have to outrun the bear.
00:39:30.480 --> 00:39:35.760
You just have to outrun the dealer that's not uh doing their best to comply.
00:39:35.840 --> 00:39:36.000
Yeah.
00:39:36.159 --> 00:39:47.840
So if dealers are making a uh an honest effort to try and uh match the disclosures that are required by the CARS Act, um they're gonna be in good shape.
00:39:47.920 --> 00:39:51.599
And it's gonna take some time for this to sink in in the marketplace.
00:39:52.239 --> 00:39:59.280
And we've been communicating with uh uh folks at the state that you know this is a a huge endeavor.
00:39:59.679 --> 00:40:03.440
It's not just new car dealers, of course, it's all independent dealers.
00:40:03.760 --> 00:40:08.079
It's anybody who sells uh cars as licensed dealers in California.
00:40:08.159 --> 00:40:15.760
So we're talking thousands of thousands of folks, uh, and we're trying to make sure our dealers are as up to speed as they can be.
00:40:15.920 --> 00:40:19.199
And you've showed some of the resources we provide on our website.
00:40:19.280 --> 00:40:24.559
We've got checklists, FAQs, that's great, an 80-page compliance guide.
00:40:24.880 --> 00:40:25.199
That's great.
00:40:25.360 --> 00:40:29.280
Uh the resources are there, and uh it's about training.
00:40:29.519 --> 00:40:30.880
Yes, yeah, I would imagine.
00:40:31.119 --> 00:40:36.880
And how many uh roughly do you know how many used car dealers there are independents in in the state?
00:40:37.599 --> 00:40:39.599
I don't know the precise number.
00:40:39.760 --> 00:40:43.440
Somebody told me a few years ago it's five or six thousand.
00:40:43.519 --> 00:40:43.679
Yeah.
00:40:43.840 --> 00:40:46.559
Now that could be a guy that's selling three cars on this driveway.
00:40:47.119 --> 00:40:47.280
Sure.
00:40:47.360 --> 00:40:49.280
Um but probably at least a couple of thousand.
00:40:49.920 --> 00:40:54.400
Carmax is a used car retailer, and they're gonna have to comply with this too.
00:40:54.639 --> 00:40:56.320
Yeah, yeah, very good point.
00:40:56.559 --> 00:41:00.960
All right, switching gears here for for a minute, you just wrapped up your annual convention.
00:41:01.119 --> 00:41:02.000
Talk to us about that.
00:41:02.159 --> 00:41:03.119
How'd that go?
00:41:03.519 --> 00:41:04.400
Oh, it was great.
00:41:04.639 --> 00:41:17.599
We uh meet every year in Hawaii, and we have uh educational programs for dealers and opportunities for our dealers to network with each other and with our uh vendor partners.
00:41:18.000 --> 00:41:32.239
So uh sponsors are all there, and it's a in a relaxed environment, an opportunity to uh break bread and spend time together and talk about industry trends and things that are happening in the industry.
00:41:32.400 --> 00:41:47.199
Uh, one of the highlights for me is we do a dealer-only meeting where we have our members in the room and they get to ask uh myself and our colleagues questions about what's going on at the association and what might be on the horizon.
00:41:47.599 --> 00:41:47.840
Sure.
00:41:48.000 --> 00:41:54.320
What is uh on on the uh to-do list before the year runs out here in this last quarter?
00:41:54.480 --> 00:41:59.440
Is there any unfinished business that you want to close out or get to before the end of the year?
00:42:00.000 --> 00:42:04.079
Uh well, a couple things, as you know, we've had many conversations in the past.
00:42:04.320 --> 00:42:08.159
Jim, we're in the process of litigation against VW Scout.
00:42:08.400 --> 00:42:10.079
That that case is ongoing.
00:42:10.239 --> 00:42:12.639
Yeah uh we're in discovery right now.
00:42:13.039 --> 00:42:19.280
So I suspect there'll be depositions and document requests provided and those kinds of things.
00:42:19.440 --> 00:42:29.679
Um in addition, we do uh new law seminars uh every December where we talk about all the new laws that California passes.
00:42:29.840 --> 00:42:37.119
About 1,100, 1200 bills are signed by the governor, and some 50 or so may impact dealer operations.
00:42:37.199 --> 00:42:39.599
So we need to explain those to our dealers.
00:42:40.079 --> 00:42:42.239
CARS Act is obviously a big deal.
00:42:42.400 --> 00:42:47.920
Uh we'll continue to talk about that, but there are other bills that dealers need to know about uh as well.
00:42:48.239 --> 00:42:55.119
And then finally, we're gonna plan for a brand new governor and a brand new legislature uh next year.
00:42:55.280 --> 00:43:04.800
So we're gonna have a meeting uh with some of our leaders uh next month to talk about what our priorities are gonna be when the legislature reconvenes in 2027.
00:43:05.119 --> 00:43:13.119
Yeah, I was watching the debate um uh last week between the the two different um candidates that you've got up for governor.
00:43:13.280 --> 00:43:15.519
Uh interesting discussions there between the two of them.
00:43:15.599 --> 00:43:18.880
It's a very contentious race there, for sure, right?
00:43:19.760 --> 00:43:20.159
For sure.
00:43:20.320 --> 00:43:33.840
Yeah, we're we're a very democratic state, so I think most uh pundits think that uh Avier Becerra, the former HHS secretary and California Attorney General and Congressperson, is likely to win.
00:43:34.000 --> 00:43:42.719
Uh but uh we have to prepare for any contingency, and we're looking forward to working with whoever the next governor is.
00:43:43.280 --> 00:43:44.639
Yeah, no, no, for sure.
00:43:44.800 --> 00:43:45.280
Absolutely.
00:43:45.440 --> 00:43:47.679
The uh the dealers need you on the front line there.
00:43:47.760 --> 00:43:49.039
I mean, we've talked about that before.
00:43:49.119 --> 00:43:56.000
The uh uh and as much as you can get the dealers, your members involved in helping your efforts, right?
00:43:56.159 --> 00:44:13.199
I mean, we've said we've said this before that if you're a dealer in California and all All of this is going on, the best thing that you can do, right, Brian, is bring in you know the state legislators and let them know what you're doing there at the at the dealer level, how many people you employ, how many taxes you pay, and all of that, right?
00:44:13.840 --> 00:44:16.159
Yeah, it's it's an education process.
00:44:16.400 --> 00:44:22.000
Many of these legislators, frankly, uh haven't worked in the private sector before.
00:44:22.239 --> 00:44:25.199
They've never signed the front of a check.
00:44:25.360 --> 00:44:28.079
They've only signed the back of a payroll check.
00:44:28.400 --> 00:44:39.039
So uh explaining to them how the car uh dealership uh ecosystem works and why it's important to their constituents, yeah.
00:44:39.199 --> 00:44:42.239
Um, you know, that's what the VW Scout fight is about.
00:44:42.480 --> 00:44:59.119
If um VW can get away with distributing vehicles through a scout brand and ignore their dealer partners, that's ultimately gonna hurt consumers because they're not gonna have access uh to fully functional uh dealerships that our members provide.
00:44:59.360 --> 00:44:59.679
That's right.
00:44:59.840 --> 00:45:01.599
And uh we can't let that stand.
00:45:01.920 --> 00:45:02.400
No, I agree.
00:45:02.559 --> 00:45:06.400
The um, you know, we all are going crazy over gas prices right now.
00:45:06.559 --> 00:45:13.039
And uh it's funny because we uh we'll talk about, you know, oh my god, it's$4 a gallon,$4.15 a gallon, whatever, whatever the number is.
00:45:13.199 --> 00:45:15.199
What is gas in California?
00:45:16.000 --> 00:45:23.760
I don't know what the precise average is, but I know in my neighborhood uh regular gas is about$650 a gallon.
00:45:24.079 --> 00:45:24.400
Wow.
00:45:24.559 --> 00:45:30.639
Uh diesel's probably closer to$850 or$9 a gallon.
00:45:30.960 --> 00:45:31.679
Oh my God.
00:45:31.760 --> 00:45:31.920
Yeah.
00:45:33.920 --> 00:45:47.199
That's gonna have a dramatic impact not only on dealerships and the cars that our members sell, but every consumer who uh buys something at you know Walmart or their grocery store.
00:45:47.360 --> 00:45:47.599
Yeah.
00:45:47.679 --> 00:45:52.639
Uh you need diesel trucks to deliver those things, and it's just gonna be a lot more expensive.
00:45:52.960 --> 00:45:54.559
Yeah, no, no, no question about it.
00:45:54.639 --> 00:45:59.280
So as a result of that, do you have you seen a spike in EV sales in California?
00:46:00.079 --> 00:46:02.000
There have been uh there's been some growth.
00:46:02.079 --> 00:46:11.360
We're gonna publish our uh quarterly auto outlook uh in the next week or two, uh, which will have uh third quarter uh data.
00:46:11.840 --> 00:46:17.199
Uh but uh what we saw in the first half of the year is hybrid sales really took off.
00:46:17.360 --> 00:46:19.519
And there was a lot of growth in hybrid sales.
00:46:19.679 --> 00:46:21.199
Obviously, you're seeing that naturally.
00:46:21.840 --> 00:46:24.400
I think consumers are making the calculation, eh?
00:46:24.559 --> 00:46:28.320
I may not be ready for an EV, but fuel economy sure matters.
00:46:28.400 --> 00:46:37.360
And I'd like to improve on you know the 20 or 30 miles a gallon I get now and get 40 or 50 miles a gallon so they can stretch those dollars further.
00:46:37.599 --> 00:46:42.480
So I think the companies that have hybrid offerings are doing really well in California.
00:46:42.639 --> 00:46:42.880
Yep.
00:46:43.039 --> 00:46:49.599
And those that uh had hybrids or don't yet have hybrids, um, they're having to play catch-up.
00:46:49.840 --> 00:46:50.960
Yeah, like GM.
00:46:51.199 --> 00:46:54.159
GM, we just did a story on GM that they don't even have a hybrid.
00:46:54.239 --> 00:46:55.519
They had no, I think they have one, right?
00:46:55.599 --> 00:46:58.239
Is it yeah, the Corvette?
00:46:58.320 --> 00:46:58.480
Yeah.
00:46:58.800 --> 00:47:00.559
It's like, what is going on?
00:47:00.880 --> 00:47:02.239
Well, how did they miss the boat?
00:47:02.400 --> 00:47:02.880
There it is.
00:47:02.960 --> 00:47:05.280
How did we miss how'd they miss the boat on hybrids?
00:47:05.519 --> 00:47:06.719
They seem to be doing okay, though.
00:47:06.800 --> 00:47:08.880
So other other areas.
00:47:09.119 --> 00:47:09.440
That's right.
00:47:09.599 --> 00:47:12.880
Well, Brian Moss, thank you so much for joining us today on CBD.
00:47:13.039 --> 00:47:15.679
Oh, we have a question from our viewers here.
00:47:16.000 --> 00:47:16.239
That's right.
00:47:16.480 --> 00:47:16.800
Okay.
00:47:17.039 --> 00:47:18.000
Sorry, we almost missed that.
00:47:18.320 --> 00:47:25.840
Can the initial quote be a discounted price they can buy the car for, or does it have to be MSRP out the door?
00:47:27.199 --> 00:47:36.719
So um essentially what the CARS Act requires is an MSRP price, uh a manufacturer's suggested retail price.
00:47:37.039 --> 00:47:39.519
You can't do that advertising any longer.
00:47:39.679 --> 00:47:46.800
It has to be the total price, everything excluding government uh taxes and fees.
00:47:47.199 --> 00:47:47.440
Okay.
00:47:47.760 --> 00:47:53.920
So uh whatever you're pricing at, uh it could be MSRP, it could be higher or lower than MSRP.
00:47:54.000 --> 00:47:54.159
Okay.
00:47:54.320 --> 00:48:01.599
But whatever your price is, uh the customer has to uh feel confident that that's the price you're selling at.
00:48:01.679 --> 00:48:06.159
So hard ads that are on the vehicle have to be included in the total price.
00:48:06.400 --> 00:48:12.239
Document processing charges, uh pursuant to the FTC's advice have to be in the total price.
00:48:12.480 --> 00:48:16.239
All those kinds of things um have to be included.
00:48:16.559 --> 00:48:19.760
And uh this is the direction we're going nationally.
00:48:19.920 --> 00:48:20.239
Yeah.
00:48:20.480 --> 00:48:29.199
Um, and it's just the CARS Act has hit October 1st in a much more meaningful way in California than perhaps in other states.
00:48:29.679 --> 00:48:39.039
Uh and our dealers, as usual, are gonna be uh compliant first, and then I suspect some aspects of our law are gonna spread eastward.
00:48:39.360 --> 00:48:39.519
Sure.
00:48:39.679 --> 00:48:41.840
Is it I'll ask you a crazy question here.
00:48:42.000 --> 00:48:49.599
If if a Republican, if the Republican that's running for governor wins, could this could this law go away?
00:48:49.760 --> 00:48:54.880
I mean, if if somebody says, hey, I'm I'm not down with this and we're gonna scratch that law in California.
00:48:55.840 --> 00:48:59.039
Um the short answer is no.
00:48:59.280 --> 00:48:59.519
Okay.
00:48:59.679 --> 00:49:02.960
Uh we have a three-quarters Democratic legislature.
00:49:03.119 --> 00:49:04.960
So even if Mr.
00:49:05.039 --> 00:49:18.719
Hilton uh somehow upset uh Becerra and won the governorship, yeah, chances are really good the three-quarters democratic legislature would not uh change the law.
00:49:18.880 --> 00:49:24.880
Now that doesn't mean we might not go in once we have some time to say, hey, we need to tweak this.
00:49:25.039 --> 00:49:28.159
The implementation isn't working out the way we thought.
00:49:28.320 --> 00:49:33.280
Uh, and we do that uh every year in a very democratic state.
00:49:33.440 --> 00:49:39.199
The CARs act, as it was initially proposed, was significantly worse than it is now.
00:49:39.280 --> 00:49:46.559
And I realize dealers aren't thrilled, but it had a 10-day used car cooling off period, for example.
00:49:46.960 --> 00:49:47.840
That is crazy.
00:49:48.320 --> 00:49:51.280
It was gonna take effect last January 1st.
00:49:51.599 --> 00:49:51.840
Yeah.
00:49:52.000 --> 00:49:54.079
Uh, but we got a delayed effective date.
00:49:54.320 --> 00:49:54.559
Wow.
00:49:54.719 --> 00:49:59.280
Uh, there are lots of things that we were able to push back on and fix.
00:49:59.599 --> 00:50:17.840
Uh but it California is a very uh progressive state, they're very consumer friendly uh and consumer forward, and uh we did our best to work with the legislature and come up with a law that dealers could comply with, although it does uh require significant effort.
00:50:18.159 --> 00:50:18.639
That's right.
00:50:18.800 --> 00:50:28.320
And your governor, your your current governor could be running for president and be the next president of the United States, right?
00:50:28.480 --> 00:50:28.719
Could be.
00:50:31.039 --> 00:50:37.199
I believe he's one of many that are being uh talked about as uh running for president.
00:50:37.360 --> 00:50:42.719
Uh, you know, we're not even through the midterm elections yet, so we've got a ways to go.
00:50:42.960 --> 00:50:52.960
And I suspect uh a lot of folks right now are looking in the mirror saying, hmm, it could be me, uh governors, senators, congresspeople, others.
00:50:53.119 --> 00:50:58.400
Uh I expect, certainly on the Democratic side, it's gonna be a huge field.
00:50:58.559 --> 00:50:59.039
Yeah, yeah.
00:50:59.199 --> 00:51:02.719
Um to test what's gonna happen two years from now.
00:51:03.039 --> 00:51:03.440
That's right.
00:51:03.599 --> 00:51:03.840
That's right.
00:51:04.079 --> 00:51:04.239
Yeah.
00:51:04.400 --> 00:51:05.039
Interesting stuff.
00:51:05.119 --> 00:51:08.719
Well, Brian Moss, president of the California New Car Dealers Association.
00:51:08.800 --> 00:51:10.960
Thank you so much for joining us on CBT Live today.
00:51:11.199 --> 00:51:11.679
Thanks, Brian.
00:51:12.000 --> 00:51:13.519
Bridget Jim, thanks so much for having me.
00:51:13.599 --> 00:51:14.000
Appreciate it.
00:51:14.400 --> 00:51:15.119
Thank you.
00:51:15.920 --> 00:51:18.400
All right, I think Brian Moss should run for president.
00:51:19.280 --> 00:51:19.679
He's a great guy.
00:51:20.960 --> 00:51:21.519
I'd vote for him.
00:51:21.599 --> 00:51:22.079
Yeah, you know?
00:51:22.480 --> 00:51:23.599
Brian Moss for president.
00:51:23.840 --> 00:51:24.000
What?
00:51:24.239 --> 00:51:25.199
Brian Moss for president.
00:51:25.760 --> 00:51:29.519
That way we can just call him and say, hey, could you get on CBT Live and now that's your president?
00:51:29.679 --> 00:51:31.440
He'll be like, I don't even know who you people are.
00:51:32.400 --> 00:51:33.760
He's a great guy because he runs for the head.
00:51:33.840 --> 00:51:35.039
He's a presidential seat that he's in, right?
00:51:35.360 --> 00:51:35.599
That's right.
00:51:35.679 --> 00:51:36.159
He does.
00:51:36.239 --> 00:51:36.480
He does.
00:51:36.559 --> 00:51:38.800
I'm I'm joking, but he's he runs a great organization there.
00:51:39.039 --> 00:51:40.239
They really he does.
00:51:40.480 --> 00:51:41.199
He does such a good job.
00:51:44.960 --> 00:51:45.920
Busy guy.
00:51:46.800 --> 00:51:47.119
For sure.
00:51:47.360 --> 00:51:50.639
So oh I've got a we've got a couple of comments too, maybe about the conversation.
00:51:50.800 --> 00:51:52.159
What do we got, guys?
00:51:52.480 --> 00:51:55.199
Oh, I like Bridget's clips best.
00:51:55.440 --> 00:51:56.079
Ah, there we go.
00:51:56.320 --> 00:51:56.800
Oh, what?
00:51:57.840 --> 00:51:58.320
We can vote.
00:51:58.559 --> 00:51:58.639
Wow.
00:51:58.960 --> 00:51:59.760
And I've only had one.
00:52:00.079 --> 00:52:00.559
Do you vote?
00:52:00.800 --> 00:52:02.320
Do you know this individual already?
00:52:02.880 --> 00:52:05.039
Are you already stacking the deck against the sister?
00:52:05.119 --> 00:52:05.360
Thank you.
00:52:07.280 --> 00:52:07.519
No.
00:52:08.559 --> 00:52:10.320
Boy, that's that's from Coffee Guy.
00:52:10.719 --> 00:52:12.960
That's from the uh Car Guy Coffee podcast.
00:52:13.199 --> 00:52:13.760
Best news in coffee.
00:52:13.920 --> 00:52:14.559
Oh, thanks a lot, guys.
00:52:15.039 --> 00:52:16.480
We are looking forward to seeing you all tomorrow.
00:52:16.800 --> 00:52:17.440
Yeah, maybe not.
00:52:17.519 --> 00:52:18.960
Maybe we're not looking forward to seeing you.
00:52:19.840 --> 00:52:20.000
We are.
00:52:20.159 --> 00:52:20.880
I thought you were voting for the code.
00:52:21.039 --> 00:52:21.599
No, it wasn't them.
00:52:21.760 --> 00:52:22.239
It wasn't them.
00:52:22.320 --> 00:52:24.639
They're saying the best news in automotive.
00:52:24.719 --> 00:52:25.119
Thanks, B.
00:52:25.280 --> 00:52:25.360
T.
00:52:25.760 --> 00:52:26.000
Thank you.
00:52:26.079 --> 00:52:26.159
Okay.
00:52:26.639 --> 00:52:28.159
Another viewer, Kaylee Crockett.
00:52:28.480 --> 00:52:30.000
Kaylee said I like Brigitte's.
00:52:30.320 --> 00:52:30.639
Okay, okay.
00:52:30.719 --> 00:52:33.920
I was going to say So before you get jump all over them, I did, I did.
00:52:34.159 --> 00:52:35.360
You're going to be our guests tomorrow.
00:52:35.840 --> 00:52:36.960
All right, I take it back, guys.
00:52:37.039 --> 00:52:38.159
We're looking forward to seeing coffee again.
00:52:39.199 --> 00:52:40.800
And by the way, bring us coffee.
00:52:42.960 --> 00:52:44.480
We'll have lunch for you for sure.
00:52:44.719 --> 00:52:45.280
That's right.
00:52:45.440 --> 00:52:45.840
That's right.
00:52:45.920 --> 00:52:47.599
You know this place is going to be jumping when they come in here.
00:52:47.760 --> 00:52:48.639
It's going to be a lot of fun.
00:52:48.800 --> 00:52:48.960
Yeah.
00:52:49.119 --> 00:52:50.320
So be sure to tune in tomorrow.
00:52:50.400 --> 00:52:58.079
And again, if you have questions for them or Adam Marberger on tomorrow's show, be sure to send those into live at cbtnews.com.
00:52:58.400 --> 00:52:58.800
That's right.
00:52:59.039 --> 00:52:59.360
Yeah.
00:52:59.519 --> 00:53:05.920
So also, while you're at cbtnews.com, be sure to head over and sign up for our newsletters.
00:53:06.000 --> 00:53:09.280
You'll get more great conversations like we've had today.
00:53:09.440 --> 00:53:13.920
And you'll all and also be sure to sign up for um like, follow, and subscribe on social media.
00:53:14.239 --> 00:53:15.280
That's Joe Laham right there.
00:53:15.360 --> 00:53:15.679
I love him.
00:53:16.880 --> 00:53:18.239
The hardest working man in the car business.
00:53:18.639 --> 00:53:20.320
Love how you comment on the newsletter every time.
00:53:21.679 --> 00:53:22.239
He's great.
00:53:22.400 --> 00:53:26.559
Whenever he comes on, he tells it like it is, and we get like a million views from his uh We do.
00:53:27.280 --> 00:53:28.400
Damn outies, right?
00:53:28.639 --> 00:53:29.199
Whatever it is.
00:53:29.840 --> 00:53:30.320
I love him.
00:53:30.480 --> 00:53:30.960
Love him.
00:53:31.199 --> 00:53:32.320
One more thing before we go.
00:53:32.480 --> 00:53:35.199
I do want to mention that we will be out at Use Car Week.
00:53:35.280 --> 00:53:35.440
Yes.
00:53:35.679 --> 00:53:37.519
November 16th through the 19th.
00:53:37.599 --> 00:53:40.880
So please be sure to stop by and say hi if you're going to be there.
00:53:41.280 --> 00:53:45.119
We'll be recording CBT live right from the show floor.
00:53:45.519 --> 00:53:47.440
We'll be doing other interviews throughout the day.
00:53:47.519 --> 00:53:48.800
So we are really looking forward to that.
00:53:48.960 --> 00:53:50.159
That's going to be here before we know it.
00:53:50.239 --> 00:53:53.519
And um we look forward to seeing you all out there in San Diego.
00:53:53.679 --> 00:53:54.239
Yep.
00:53:55.599 --> 00:53:56.159
San Diego.
00:53:56.400 --> 00:53:56.960
San Diego.
00:53:58.239 --> 00:54:00.000
Do you know what San Diego stands for?
00:54:00.159 --> 00:54:01.199
No, we're not having this conversation.
00:54:02.320 --> 00:54:03.679
We will see you all tomorrow.
00:54:04.000 --> 00:54:05.760
Thanks for joining us today.
00:54:06.079 --> 00:54:06.880
Have a great day.
00:54:11.440 --> 00:54:13.920
Keep the whole market tuned in.
00:54:15.280 --> 00:54:17.039
Monday morning, Keystone and Jersey.
00:54:17.280 --> 00:54:18.880
No numbers on the boat room moves.
00:54:19.119 --> 00:54:19.760
That's a day.
00:54:19.920 --> 00:54:22.079
From the showroom floor to the vendor car.
00:54:22.239 --> 00:54:25.440
We bring the latest stories, breaking down head hard dealers in the room.
00:54:25.599 --> 00:54:26.480
Tell us what they see.
00:54:26.800 --> 00:54:29.039
Inventory, margin, digital strategy.
00:54:29.280 --> 00:54:32.000
No rumor, no noise, just the facts and motion.
00:54:32.079 --> 00:54:36.400
We tell out of news with the clear eye focus and on his own head.
