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Brutal Truth #1 Everyone knows everyone in the car business…  But almost no one is truly known by anyone. Dangerous space to occupy.

If you're in the car business in Canada. You may find this perspective piece I wrote today of interest

"Would you buy a house if the seller’s mother-in-law was the one approving the inspection? Sounds insane, right? Yet this is exactly how auto auctions work. -They inspect the cars. -They arbitrate the disputes. -They control the money. And they’re measured by how many deals close. There is zero independence in this system. That’s why Auto Auction Review exists…to give dealers an independent voice against a rigged system. If you’ve ever lost money on a bad arbitration call, tell me your story.

Real conversations happening inside The VIN Syndicate Members are -COO’s, GMs, GSMs, Wholesalers, Remarketers, Buyers We have members from MI,OH,MO,GA,FL,CO,PA,NC,TN,TX,ID,ND,WA,IL,NY,VA,ON,QC,SK All over the United States and Canada and adding new members daily Topics are business and personal In 10 days -Business is getting done -Friendships are being formed -Connections are being shared There are no owners, no vendors and no oversight Just a bunch of like minded people with the same struggles talking freely Think of a 20 group owners are part of … but on steroids That’s where this is headed..only it will be a 1000s group It’s not a group….It’s a movement Join us Check my featured section for access

More wholesale math for those of you that care -17,000 franchise dealers -100,000+ independent dealers -350 physical wholesale auctions Let’s do some math: Each auction runs, on average, 1,000 units per week (on the high side). That’s 350,000 cars per week across all auctions. Over a year, that’s 18.2 million vehicles offered. Big number right? Now dig this little nugget… Only 7.3 million of those actually sold in 2023. (Source: Auto Remarketing Magazine) That means conversion rates at auctions hover around 60%...so nearly 40% of the cars don’t even sell and either get run again or move elsewhere.(further skewing the data) Now compare that to this… In 2024, 38.9 million used cars traded hands in the U.S. (Source: Statistica) The auctions only account for 18.8% of used vehicle transactions. Read that again. That means over 80% of wholesale transactions happen OUTSIDE of the auctions. Yet dealers have been programmed to believe that auction is the ONLY wholesale channel that matters. You’ve all been hoodwinked by an elaborate, but effective, positioning strategy News Flash….There’s 20x more commerce happening right under your inventory-starved noses. If you’re still letting the auction overlords control your inventory, you’re missing out on the real game. Join the VIN Syndicate and start playing the game differently. (Check my featured section for access.)

The VIN Syndicate is growing fast... and the only cost of membership is participation. -No lurkers. -No gatekeeping Just connections, knowledge, and opportunity. If you’re in a management role at a dealership…and you're serious, let’s go This is a private community within an app designed to help you get known and expand your network -No Owners -No Vendors A Band of Brothers from all over the USA and Canada. I

The 2-Week Update That Even Shocked Me The VIN Syndicate now has 72 members. Sounds small, right? No big deal? Anyone who has ever onboarded anyone into anything knows that’s monumental. But here’s where it gets wild… Part of our application asks... "What’s your monthly volume?" As of this morning, that total number exceeded 16,500 units per month. Let’s do some math. Because, well… math is math. 16,500 units per month 198,000 units per year According to NAAA, 7.3 million vehicles per year are sold at all their member auctions. In just two weeks, our “little group” now represents nearly 3 percent of that. What happens when we hit 1,000 members? That day is coming fast.

The Car Business is a LONELY place. I’ve known this for many years and have suffered in silence all to often -Rub a little dirt on it -Soldier on -Shut up and Grind After a while it becomes who we are And that is a volcano just waiting to erupt. I’ve been there…. too often. That’s why i started the VIN Syndicate This isolation is a systemic issue that is so easily solved. If you’re in the Car Business and this hits home. Join us Link in my featured section

Wall Street Traders Don’t Think Like This. So Why Do You? Do you think a Wall Street trader buys stocks solely based on what they sold for last week? No. Because that would be stupid. Yet in the car business, we’ve been conditioned to do exactly that. We trade on half story history books presented in a nice little app with a cute dashboard. The creators of the app have cornered us into feeling safe…like it’s the only way to do business. Let’s be real…they also know how lazy most dealers can be. - Pump in a VIN and miles - Here ya go, here’s your number - Don’t sell it in 45 days? No problem…just dump it at the auction. It’s bonkers. Yeah, traders look at historical data and trends…but that’s not the play. Like Wayne Gretzky said: "I skate to where the puck is going, not where it’s been." (And hey, he may be a dumb Canadian like me, but he sure didn’t skate to where the puck used to be 2 weeks ago.) Yet that’s exactly what most do in wholesale. All day, every day. Real traders factor in a pile more data…like supply chain issues, production cuts, incentives, global markets. They predict the moves before they happen. Meanwhile, used/wholesale is one of the most volatile, high-investment silos at any dealership…and we just hand it off to a vendor? Mind Blown Does any of this make sense?? Maybe it's time to start moving differently.

Every week, buyers log into simulcast at their normal auctions. Each sale probably has 1,000+ cars running. Buyers isolate maybe 50 that fit their needs…on a good day. Now, say they watch 4 sales a week…that’s 200 cars that fit. And chances are, there are 60+ other buyers logged into the same lane, eyeing the same cars. So to have any chance, you need to be the last man standing…every single time…while sticking to a cost-to-market metric…. That the big auction calculated for you…And IF you win, add another $700-$1,000 in fees…not to mention arbitration headaches. How's that workin out for ya? Now, do you really think this is the best way to buy cars? Here’s some different math: -There are approx 17,000 franchise dealers in the U.S. -If you got to know just 50 of them…Bro…50…less than 0.3%...to trade with outside your market…you’d have an automatic $1,000 head start on every car just by skipping auction fees. -Now, ask yourself: Do you think you could find 50 dealers willing to sell you ONE car per month at market value? -That’s $50,000 right to the bottom line -And trust me, it’s happening all day, every day with dealers who already rewired their thinking. Want to meet some of them? They’re inside The VIN Syndicate. It’s not a group…it’s a revolt Check my featured section.

They laughed when I dropped out of university to sell cars. One guy in particular…a trust fund baby who had never had to earn a dollar in his life…mocked me to my face. Thought I was throwing my future away. I told him: "I’m in school now, brother… Deal School. Every day, I learn about people and putting things together. The product might change, the amount of zeros might change… but the basics will always be the same." Fast forward a few years, and guess who came back asking me for a job? The lesson: The world underestimates car people. They’re wrong. This industry is the best business education in the world…if you know how to use it. More on that in this week’s Manorisms newsletter. Get it here: https://lnkd.in/gTwFKNjT

The Breaking Point Pressure is normal in the car business. Stress is expected. But when emotions get involved… when you feel betrayed… when there’s nowhere to turn? That’s when even the strongest can crack. I know because I lived it. And it damn near killed me. (Full story drops in the Tuesday edition of “Manorisms” Sign up in my featured section.)

The Auction Dilemma: How One Car Can Rack Up $5,000 in Fees…Without Ever Selling Let’s say a dealer buys a car at Manheim for $35,000. They floorplan it with NextGear Capital, transport it via Central Dispatch, list it on Autotrader, and use vAuto to track pricing. After 90 days, the car doesn’t sell, so they ship it back to Manheim. Seems like a normal process, right? Except, by the time the dust settles, they’ve paid $3,400–$4,400 in fees to Cox Automotive without making a single dollar in profit. Here’s a breakdown of where the money goes: -Auction Buy & Sell/Other Fees: $1,300–$1,800+ -Floorplan (Interest & Fees): $970–$1,265 -Transport (Round Trip): $1,000–$1,400 -Autotrader Ads: $100–$300 -vAuto Subscription Allocation: $50–$150 Total: $3,420–$4,415. These are approximations, of course, but let’s say it ends on the low side. We’re talking around 10% of the vehicle’s value…give or take. Now, here’s the real question for dealers reading this… Can you say with confidence that your average front-end gross is 10%? Because if not… Cox is getting paid more than you are. The King eats first? Let’s be real…when’s the last time you sold a car at auction after 90 days and didn’t take a fat blower on it? Plus P.A.C and recon…which turns a loss into a bloodbath. Who still gets paid? Would love to hear your thoughts. Has this happened to you?

Here’s something crazy that’s actually real “We don’t do wholesale.” “Ok… so you buy and sell at auctions?” “Of course.” “That’s wholesale, right?” “Well… yeah.” “But you won’t buy from another dealer?” “Nope.” “Okay… but you’ll buy a car from a consumer off the street?” “Of course.” “You paying them retail, or buying at wholesale?” “Well… wholesale. But we run the CarFax and build sheets and stuff.” “Got it. And you need to see the car first?” “Nope. We’ll buy it right over the phone.” (head shakes in disbelief) If this sounds absolutely insane to you… come join The VIN Syndicate. Check my featured section for access to guys like you People that know the power of building direct relationships — Not accepting comments at this time. LOL.

Car dealers have been brainwashed!! (For some of them…it’s just a rinse.) For decades, auctions have conditioned dealers to believe that they can’t trust each other…but somehow, they can trust an auction to handle their wholesale transactions… all for a nice fat fee of course -You’ll buy and sell cars at auction without hesitation. Sometimes the same vin multiple times -You’ll buy from a consumer over the phone, sight unseen. -But dealer-to-dealer wholesale? Hell no!! That’s too risky. It’s programming. A mental moat built around their business to keep you locked in. (oh..and they help ya price them too..with their results which only measure half of the actual national  transactions…if that) And for some of the dealers…it’s just a brain rinse. (A full wash isn’t needed when the belief is already conditioned) Lots of dealers today are 3rd generation guys raised with this belief Hard to teach a man something he thinks he already knows This is exactly why The VIN Syndicate exists. It’s not just a network….it’s a critical rewiring of a belief system.  Like as in necessary to sustain life Relationships going forward are going to be like a Pancreas to a Human being…you ain't surviving without it When dealers start trusting each other and moving inventory without the auction overlords, that’s a direct threat to the system that’s been built to control them. And guess what? The auctions already see it happening. Join us inside The VIN Syndicate. (Check my featured section.)

When small people can't control you They try to shrink you...

The Next 12 Months in the Prev Cdn Used Car Market: My Prediction Here’s what I think is about to happen. -The USD/CAD gap keeps widening. -The US market is about to go nuts for 2021-2023 mid-market inventory.(like we recently experienced) -Rental companies will start buying used again, making the supply issue even worse. -Exportable units will become untouchable in Canada for Cdn dealers -What’s left will get expensive…domestic non-exportables will see a severe premium. This trend isn’t reversing anytime soon. -At least 12 months of this market dynamic. -If tariffs stay on new OEMs? The East Canada Economy is decimated (Ontario/Quebec), but it’ll take time. What does this mean for you? If you’re buying or selling in the Prev Cdn wholesale space, you need to be ahead of this curve. -Are you tracking the shifts in cross-border pricing? -Do you have direct supply channels outside the auctions? -Are you thinking beyond the next 60 days? I’ve built a network of top operators from the USA and Canada who are watching this unfold in real-time and discussing it This is not the kind of market you want to be guessing your way through. The VIN Syndicate is built for this. Even if you don't dabble in this space…it affects you In a normal climate 375,000 late model units cross annually.  Volatility in this area leaves a mark everywhere If you’re serious about wholesale, join us. See my featured section for link

“I don't buy from other dealers…I don’t want to inherit their problems” “I ONLY buy at auctions!!” Ok genius…where exactly do the cars at auctions come from again? The Car Stork maybe? It’s like saying “I’d never buy used furniture from a person…I only buy at thrift stores” As though it was manufactured especially for him at a secret factory in Narnia Do dealers actually believe things like this? Is the distrust of other dealers…people EXACTLY like them…that deep?

Don’t Quit

For those of you that deal in Prev Canadian This will be welcome news Duty schedule DM me if you want to discuss what it means