Adrienne Roberts (WSJ, Car Dealerships)


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Yeah. Baker and Robert. From the Wall Street Journal joins us now to talk about the mergers that are playing out in the world of car dealerships. Adrian thank you for joining us. It. So let's talk about the shift that we've seen in the landscape for dealers in the last couple decades it used to be had a small family owned dealership. Maybe they had a few round your region. Put that seems to have been replaced by these conglomerates now that you're just buying them up in just combining them in a massive networks is that right. I am still a highly fragmented industry paid for either small at dealerships out there. What was happening now on that kind of started with Warren Buffett tan and white fourteen getting into recount but that's we're starting these consolidation. And though. Even the groups that you think would be bigger they lead you to get even bigger player camps he went. Can compete with other groups and they're really. Launch new initiatives and going new directions. That you may need to succeed and the inventory here in the next ten to twenty years. What what types of new initiatives are we talking about them trying to get into. Yes so at this summer onto their own finance companies but some are launching. Subscription services for basically. You have your weight you pay flat monthly PH need to take your car. You know if you actually be for the weekend are you need. You know do a commuter he'd go to the dealership and protect card is needed. That's another initiative. Tom is is houses and vehicles. And to win their. I elected because offered encouragement so it. The range of staying away. The deal didn't mean that they can't make money would be used to you on the front and the debate that event margin. A new and used cars really shelling came. How much military. A palca had. How much is the is the margin shrinking on that front end to this point. I mean in reality it. You know there have been losing money aren't a hundred stale. A car any due cards really planned. But they they make money other ways like and I maker will pay them time they found you know Akamai vehicle them on to. What happens is the customers are coming in and they are paying eight we know how much you paid for this vehicle and we're not paying any more than math. And anti Hillary because it's. They want that it they want that they'll look OK okay final quality for that they're not making much money at all on the front and that that. In terms of competition in how the Internet has played into this how much of a factor is that when you look at the shifting dealer landscape. Yet he HIV and first energy to it it offered rate pricing transparency that you can't use shop online. And you go into the dealer it has you're not gonna walking blind and they're both customers won't block by. You know apparently every dummy out pay cash they have a lot more power. Now and then also I mean you've heard that Anna is enabling the purchase about science. His card he can ballot by current line but possibly can buy a car online so it's really changed the game. Very good well Adrian we appreciate you joining us today thank you very much for the time. Now you can't. Adrian Roberts from the Wall Street Journal talking about the merger's. Going on in the world party yet this really are from the make any money it's funny she says that no one walks in without education. But if you do that we'll treat you very well of course. Warren Buffett set up a fool and his money are welcome everywhere.