Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: lipid who wrote (68697)	10/14/2011 11:57:09 AM
From: robert b furman	1 Recommendation Read Replies (1) \| Respond to of 207794

Well in the good old days a repeat buick buyer would trade in a 2 year old garage kept cream puff.It was a good customer so you paid good money. When the used car shopper showed up you added 3000-4000 and said shop me or pay the price. It was an ill informed (not efficient market). Now you go to the internet and look for that cream puff and it will show 5 with 250 miles. It is much more efficient - more info at the touch of a moouse click. Most dealers refuse to accept that the old days of the 4000 gross are history. The efficient model is a warehouse with a T1 line coming into it and a sales force that makes pricing competitive and a used dealer doesn't have huge property taxes and a a big country club bill thrown into the overhead. It is a past concept that is referred to as the 4000 fantasy. Old school dealers stick to it and continue to decline in sales volume. Used car delares that are sharp turn their totsl invrntory 12-17 tines a year and the old school guys sit with used cars that are a year old. duh It's like being in the travel agency business and seeing the internet taking away your customers and saying - I have to charge more for my services to keep profitable. It is the inevitable destruction of a past business model. Most do not see it morphing. Bob