Welcome to another edition of the Cardiallorship Guy podcast industry spotlight. I'm your host Sam Darkseo of the Ziegler Auto Group. And coming up this episode, Sonic Automotive joined forces with the biggest e-reteller in the world, Amazon, to help sell cars. Today, we take a deep dive look inside that partnership, joining me as president of Sonic Automotive Jeff Dyke and director for Amazon Auto's Matt Newford. Today you'll hear why Sonic decided to join with Amazon Auto in offering vehicles to the public. How Sonic pays salespeople on those transactions. All the processes different from non Amazon customers, who owns the data, dealer or Amazon.
欢迎来到Cardiallorship Guy播客行业聚焦的又一期节目。我是Ziegler Auto Group的主持人萨姆·达克西奥。本期节目中,Sonic Automotive与全球最大的电商平台亚马逊合作,共同帮助出售汽车。今天,我们将深入探讨这一合作关系,加入我的有Sonic Automotive总裁杰夫·戴克和亚马逊汽车部门的董事马特·纽福德。您将听到Sonic为何选择与亚马逊汽车合作,将车辆提供给公众。Sonic如何在这些交易中支付销售人员的佣金。这些流程与非亚马逊客户的有何不同,数据的所有权归经销商还是亚马逊。
How do vehicle trade-ins work on the platform and what is the one key profit center they haven't yet solved for and how both Sonic and Amazon are working hard to solve for that profit center. This episode is brought to you by Amazon Auto's. Thanks for supporting the show. Now let's dive into it. Hey, so Matt, we've seen this shift in consumer behavior towards online shopping across many industries. And you guys are the biggest Amazon, right? What insights about car buyer preference inform the development of Amazon Auto's?
Yeah, Sam, it's a great question. I mean, we know that 95% of car shoppers are already starting online. And so, you know, I think that was a sort of natural progression. And what we found in talking to customers, to Amazon customers, is they wanted a more transparent, you know, integrated online shopping experience for cars. And we even saw it on our site. We've had vehicle detail pages and digital showrooms on Amazon for a number of years. And customers kept asking us, where's the buy box?
And so, well, we decided, you know, let's add a buy box. It's not a true buy box, but, you know, it was a monumental undertaking, but it's exciting to finally have launched it to the public last month. So it is interesting. Your live you've launched. You've got a partnership with Hyundai and specific OEMs and it like the auto dealer body is kind of holding its breath, trying to figure out what is going on. What's your intent? Where do you fit into that space? And Jeff, Sonic Automotive, you're on the board. I think Matt, you reached out to Jeff as one of the first to come over. Jeff, what brought you into this project? Where did you see the value here?
The auto retail industry suffers from technology or a lack thereof, and in particular, in the digital retail space. And what we believed at Sonic, and what I personally believed is that we could work with Amazon and the manufacturers to build digital retail solutions that would allow the consumer in an omni-channel environment to buy a car from A to Z, where they wanted to do the whole transaction online in their night at night at home, or whether they wanted to do part of it at night and then come into the dealership the next day and then finish it.
It's the technology that's needed in order to, you know, quench the thirst that the consumer has for buying a car online that the industry just doesn't provide right now. Why is that, Jeff? You know, digital retailing has kind of become the buzzword over the past few years, and you go to NADAE here at Everywhere, and you made a great point in the pre-show. Like everybody talks about being able to do it start to finish. Does anyone truly do it start to finish?
The answer is no. It's not in its truest sense that a consumer can go online and buy the vehicle, and I did it. I've spent the last couple of years actually studying this and went out and bought cars from everybody who said they could, documented it and said, well, no, this switch to a human being and this switch to a human being and this system didn't work, and I'm signing paperwork online, but then when I get to the store, I have to re-sign paperwork. There's no way to vault and safely transition the law contract to the consumer. There's just all kinds of problems.
And those are things that we started out really day one with Matt and his entire team working on in terms of developing an online tool that would allow the consumer to truly transact online. And they've made it very easy to buy anything and everything. The next big mountain they're going to tackle in our tackling is the auto retail sector. And it's a big challenge. There's no question. And one of the things that I appreciate about how Matt started all of this and their team started this was they focused for the first couple of months of working with them on how do you make a profit and where does your profit come from? Because we need to protect that before we do anything else.
So what's the answer to that question? Have they stopped for that? And the reason we were so interested in that question is because we're known for being a customer obsessed company. And we always say internally that with Amazon autos, we have multiple customers. We have the end customer who we all need to satisfy. But dealers are a really important customer because dealers are the sellers of record. They provide the inventory. If this is not a great place for dealers to connect with customers, well then, you know, it's not going to be a great place for customers. There won't be any cars. So we really wanted to understand the important elements of dealer profitability. And we have worked really hard to protect those. And this is where Jeff and the dealer council have been absolutely instrumental in, you know, as we you asked about F&I at the beginning, you know, such a critical part of the profitability equation for dealers. And you know, we're trying to design the most customer friendly experience that's also dealer friendly. And you know, that's that's that's a fun challenge.
Matt, I think that's an interesting point that you make as a consumer familiar with Amazon, having bought things through Amazon, not having talked to your team or knowing anything about the project, I would assume that Amazon would have Amazon cars and that you would have a direct OEM relationship and that you would seek to really replace the dealer. What you're saying is, is that's not the case at all. You're looking to provide the dealer a platform to provide them a marketing platform to be able to go to market with their consumers and preserve that relationship and that profit center, right? That's exactly right. It's exactly the opposite of of direct. It's it's creating a bridge for dealers to reach Amazon customers, you know, millions of Amazon customers in a an environment that customers find very familiar. They come back regularly.
So, you know, while the experience is not exactly like buying a book, of course, it will be an it's an experience that is very familiar to customers. And, you know, we are giving dealers the ability and new ways of accessing a new set of customers in a way that customers find really familiar. So, Matt, you know, what is it about the dealership relationship with the customer that Amazon seeks to preserve that?
So what is different about cars than almost any other product is that they have to be serviced and, you know, that car is out on the road every day and, you know, dealers are a critical element of that component. But I also believe in that I very much believe in the omni-channel nature of buying a car. There's, you know, I have no illusions that a customer is suddenly that customers are suddenly going to start, you know, buying cars fully online. It's such a physical product. It's a very expensive product. Customers want to see it, touch it, feel it. They might test drive it. They might not, you know.
And so, we want to provide an experience for dealers to meet customers. However, the customer wants to shop. And we've even seen some of our early orders of the last month, you know, all shades of that experience, right? It goes in, test drives, buys on Amazon, starts on Amazon, goes in. It is, we expect it to be fully omni-channel. Very good. Any thoughts on that, Jeff, relative to omni-channel? And the fact that it appears that Amazon is avoiding the direct-to-consumer model that would bypass dealerships, right?
Yeah. I mean, look, the 800-pound gorilla in the room is there franchise laws in this world that will stop that anyway. And why go down that road and have that fight? That's ridiculous. We've spent decades and decades and decades building relationships with the consumers. The consumers have to have their car serviced as Matt said. And so, and also, the dealer body has a lot of knowledge that we bring to the table. And I think Matt and the team recognize that from the very get-go, whether it's how you finance a car, the paperwork that goes along with the financing, the vehicles themselves, the relationship with the manufacturers. There's just a lot to all of this.
It is a very complex transaction, as you know. And look, we've just gotten started. And I think that if we work together, you know, we're going to put ourselves in a situation where we saw a lot more cars, and it's going to be good for everybody, and most importantly, great for the consumer because it makes the transaction easier. And as we all know, go back for decades, you know, buying a car, people would rather go to the dentist and have their tooth pulled out of your nose again, rather than going into a dealership to buy a vehicle because we've made it a pain in the ass. And it's time to change that.
And I think this relationship can go along the way to making that happen. There are manufacturers out there that believe the same way, and that are working in that same direction and developing digital retail solutions that will allow the consumer to do that. But pulling, you know, two or three hundred dealers and getting them all going in the same direction. And I think you have a great opportunity here to build something that's quite special that can really change the experience of the consumer.
You know, I really like that you're going to dealers for this rather than rather than to the OEMs and then to the dealers. I mean, you've got the Hyundai deal put together, but you're talking to dealers direct. Your team is Matt, which I think says a lot about the approach.
你知道,我真的很欣赏你们直接跟经销商合作,而不是先通过原始设备制造商(OEM)再到经销商。我是说,你们已经和现代(Hyundai)达成了协议,而且你们直接与经销商进行沟通。你们团队里的 Matt 负责这方面,我觉得这充分体现了你们的工作方式。
So Jeff, as a dealer on the on the front line, what are some of the concrete results or key changes you've seen since you've implemented this in your stores? You mentioned the Hyundai success already and it's it's new business. Is there anything else that has been an impact? You know, Sam, it's a little too early. It's new, but one of the things that I would tell you from a corporate perspective, it's getting the team to think differently. It's gotten our Honda Hyundai team to think differently about the ability to sell a vehicle online. Really, we do have 95% of our customers are going on our website.
They're going online and they that's where they start their transaction. But the tools are not there in order to do the full transaction. Amazon is bringing that to the table, but the early results are great. We all one of the big takeaways here and we knew from the very beginning that it would be was the penetration for F&I products is a big, the big part of our success is going to be whether or not the consumer is going to buy warranties is going to buy F&I products at the same level at the same penetration levels that they do when they talk to a human being live.
Yeah, what's the answer? And the answer so far is they're not, but but but but that's okay. We knew that getting started because we'd already experimented in that and it's not just sonic automotive, the auto nation group one, Hendrick, Penske, all of them, everybody has seen the same result. So now we understand what the issue is and now we're working on solving the problem. How can we take technology? How can we take AI? How can we take these things, couple them together and solve that issue and we'll solve it. I'm not concerned about solving product penetration with the likes of having the power of Amazon, the power of our manufacturer partners, the power of the dealership network working on this, this topic. It's an important topic because it doesn't work if you just have the front end margin of the car and you just have the F&I margin from financing. We've got to have the product sales. We all know that and we're working around the clock to figure that out.
There is artificial intelligence. There is data and there are ways to make this happen and and we'll do that in the coming in the coming year. That's something that we're all very, very focused on. It's like solving a trade in when you're trading in online and how quickly can you do that? And is it real time and we've solved that issue? And so there are things that need to be solved, but we are making great progress and we'll continue to do that and I'm quite confident we'll solve that problem as well. The F&I piece is unique and fascinating because the car sale is this tangible product you touch, see, feel, get excited about.
I can go on Amazon, see the picture of the car. I know what I'm getting. Finance, as you know, is this intangible product? It's protection against the fear of loss in the future and that's a tougher build on a platform. Are there any, you know, as you think about dealers listening to this concerned about that piece, are there any early thoughts you're having about how to solve for that? Because going back to the digital retailing platform conversation, you're right. Well, this nobody could do it, start to finish. And in every platform promised a solution that would preserve finance and I haven't seen that yet either. It's not there.
And for those who say that it is, but okay, let's go through the numbers together. Yeah. About make you a steak dinner bet. It's just not there. But it doesn't mean that it can't be looked, you know, at our company, there's just our numbers. We have warranty penetration in the 60%, 65% range. But when we're doing it online, that transaction is more like in the 35% range. And so why? What's happening here? Well, what's happening is is that you have a salesman and or an F9 person that does a great job explaining those losses in the future and explaining how to protect the products that you're buying. You're making an expensive investment in an automobile, 70, 80, $100,000. Let's protect that product. Online selling is not doing a great job of explaining it like a human being's doing. Doesn't mean that we can't. And that's the riddle that we're trying to solve. And we'll solve it. I'm confident that we'll solve it. It's just going to take some time and some trial and error. It's not going to happen overnight and you have to be willing to make the investment in the time in order to get to the other side.
The other side is fantastic because you have the ability to provide the consumer what they're asking for. I want to buy a vehicle. I want to do everything online. I want to come in. I want to touch and feel the car. Then I want to get on my phone and hit buy and finish the deal. And by the way, I'll buy I'm going to buy the warranty too. And those things will happen, but it will happen with a collaborative effort. And I think that's what's really important in why Sonic Automotive is sitting at this table is because we want to be a part of that solution. Well, Jeff, we need you back on the show as you solve for that because I think the entire auto body would would love to be able to figure that out. I know that's a huge competitive advantage for Sonic and you and the group and Amazon as well. I mean, truly you think about that. If Amazon can solve for that preserve the dealer relationship and profit center, I can't think of a more powerful, you know, claim. There's nobody else that can really claim to do that. It's just not there.
And we get I get them. I love the vendors coming in to talk to me about it because I'll spend an hour, you know, dissecting and saying, well, how does this work? We haven't solved that yet. I noticed in the conversation with Amazon that you can't choose your own warranty company. You can't choose your own FNI providers. They are pre set thoughts on that. And you know, is there some room for conversation on that going down the road in the future as a member of the board with Amazon? Well, I'll let Matt answer the second part of that question. But the first part of the question is, yes, I mean, it was an immediate, hey, guys, it's going to work. We've got many examples of companies out there that have their own warranty, have their own products, your own warranty companies, et cetera.
And you can't take the profit away from the dealer body. Amazon was real quick to say, look, tell me how your instrument works. Show me the profitability of a warranty. And we're going to have a warranty company, but we're going to emulate that profit structure for you in particular for your warranty that you sell on this VIN number. And so, you know, it's hard to argue with that, right? I'm going to, yes, it's going to be a different warranty company, but I'm going to pay you the same money and give you the same structure. Meaning if you have a DOWC, you're going to get the dollars to put into your DOWC to earn your interest and do all the things that you currently do with the warranties that you have. So, you know, there's going to be some sort of meeting in the middle.
But if Amazon is willing to support the profit structure all the way down to the penny of what we're making in the F&I products, then I think it's worth continuing on down the road of figuring out, okay, how do we make sure that our penetrations and our attachments rates are where they're supposed to be? Believe me, had Amazon said, no, sorry, this is going to be our own warranty company. We're going to take the warranty profit. It had been a short discussion. We would have not played ball there. And I think Matt will tell you, I was very upfront about that from day one.
In what I said this in the beginning, what really impressed me about Amazon was they spent the first call it 90, 120 days. All we talked about was how do you make money? Who'd show me on the front end, buy product line, buy manufacturer? How are you making your, because we can't interrupt your profit stream. We get that. Who knows what might happen if you create a big pool of trading vehicles within the Amazon environment and selling a bunch of cars, what we might be able to do with that. So there are just an infinite amount of ideas and thoughts that I think will come to light as we mature and we grow together as a team. But the important thing right now is building the tool out, working out all the issues, and most important figuring out the attachment rates and how do we get the product, the F&I product sales. We get that solved, the rest of it is going to be gravy and a lot of fun.
So I'd love to ask a question about the trading because I think you bring up another important profit center and I think the structure is interesting. But Matt, is there an openness in the future for a different. I was going to say, well yes, the short answer to the second part of the question is, you know, we're open to discussing, you know, really anything about the experience. I'm trying to build, as I said, the most customer friendly and dealer friendly experience available and we recognize that dealers have different companies. What we're trying to do is, you know, harmonize the customer experience a little bit so that customers don't have to go and read the fine print of, you know, what's included in every product every time for every car they look at. But you know, if we can find ways to do that, we're open to discussing almost anything.
Okay. Trade ins. How does the trade in work? Trade in when it comes in, right? Which is a big deal in our way. We give that. So we have a trade in partner who gives a value on the trade. ACV. And is that exactly? Exactly. Exactly. So they put a value on the car and then the dealer selling the car, the new car can take the car at that value or choose not to. I think so far, almost 100% of the dealers have chosen to take the cars at the value that's been given. And then, you know, if they don't, it ends up going to our partner to ACV. And then, and you sort of need that to maintain the credibility within Amazon because you don't want to have a situation where a number is put down and the dealer tries to devalue it or something.
Is that kind of the thought process? Exactly. Exactly. I mean, the goal is to get as close to a, you know, precise transaction at the time the customer is making the decision. You know, you don't want to add friction into the process. That's an important point is getting to that penny perfect payment so that when the consumer does show up, the transaction is complete. And really what we're doing is creating a great delivery experience versus having to do anything else.
And that's part of the early on discussion that we all had as a group is, let's make sure that when the guests gets to the store, the transaction is done. And then we can rely on the dealership to create a great Amazon experience and a great dealership experience for that, for that guest when they come in. Another key part of the answer to your question of, you know, why do we make a decision to partner with dealerships? In that event, you need someone who can figure it out for the customer. You don't want to take a buyer and turn them back into a shopper, right? You want to help that customer through the entire process.
They've indicated an interest in buying and if we can't help them online or they don't want to complete the transaction online, we want them to go into the dealership and be able to do that. I mean, the industry doesn't offer a scenario where you can buy a vehicle, Indian and a transaction online. They say they do, but it's baloney. They do not. And so we don't know what the consumer is going to do when you do provide a tool that allows them to do that. That's the fun part is, hey, you know, Amazon didn't know what they were going to do when they were selling barbecue pits or whatever Amazon sells today.
You know, on Amazon, it's the, it's the same thing. Offer the customer something that makes it easy for them to buy a vehicle. Let's see what happens. We don't really know the answer to that yet. And I think that number could be, you know, a much higher percentage if we provide them the tool to do it, which we're going to, it's just going to take a little time to get it right. So on a, you are known very well for creating strong customer relationships and a great customer experience industry wide. You are known for that from your experience so far on, on this platform. How have you been able to maintain those strong customer relationships?
Because it does sound like that's a focus of Amazon's through this process. It is. And when Matt and I first met, you know, one of the things that I said, it was, look, I know you're very focused on, on consumer behavior and, and having that grace, yes, experience. And I can tell you, we, we wake up every morning at Sonic Automotive and in everything that we do, is it going to help the customer? Is it going to help the transaction?
Is it going to help the process? Will it make our guests happier? And if the answer is yes, we do it. If the answer is no, we just simply don't do it. And so far, every ounce of energy that's gone into this from our team, Amazon's team, and all the dealer partners that are on this deal or board and a part of this has been focused on improving the customer experience in, in our stores, the customers have so far that the number of cars that we saw, they've loved it. But it's a small sample size.
And we, like I said earlier, have tweaking to do in order to get the F and I penetrations where we need to be. And at the same time, keep the great experience. So that, that's something that we're very, very focused on. And Amazon's methodical, they're very methodical and which I appreciate. We're going about this one step at a time to make sure that what we build is permanent and, and something that is going to definitely increase the, the experience for the consumer. And so we're fortunate to be able to be working together, but the consumer is going to be the winner here when it's all set in dough.
So consumer walking through the door deal is basically finalized. You create that excellent experience, which, which you're well known for. What is, if you're comfortable sharing it, what is the conflict like with salespeople or whoever delivers on that experience? It's got to be a different structure there, I would admit. Yeah. So one of the things that we've been blessed with at Sonic's at Echo Park, our sales associates are what we call experienced guides or paid a salary.
We don't pay, you know, have the traditional compensation plans. And so in this instance, for our teammates that are handling Amazon transactions in the new car dealership, we're paying a salary for that so that we don't create pressure. We don't, our goal here is just let's make an investment in our teammates so that we can create this amazing experience when the consumer comes in the store and our guests are there. And, and that's what we challenge our team to do. And there's not every morning at 4.30, 4.45 in the morning.
The very first report I get is our CSI scores from the day before. I was just going to ask about CSI. Yeah. And we study that like clockwork and our CSI across our entire organization is as green as you can see it from the moon, so to speak. And that's very important to us. It's critical to our, to our, in our minds to our success. And in what's great is it's critical in Amazon's minds to their success. So we both, we have this, this one North Star that we're all focused on, which is making sure that the consumer experience is, is fantastic.
And we're able to live up to that and deliver that great experience along with what Amazon has asked us to do in the dealership, which is make sure that there's an Amazon parking spot for consumers, make sure that there's a identified area, you know, for the consumer. So they know where to go when they get to the dealership and everything is identified. And so we've been able to do that and have seen, we have done, had nothing but great experiences for again. So, Jeff, we actually bring up, you bring up a great point.
I'd love to have Matt talk in just a minute about Amazon's thought about CSI with OEMs and what the CSI results have been. But before that, just to kind of set up that question, will you just walk us through the process in your store, if you're comfortable? Customer comes in, they've gone through, they've said by now, they've gone through the process as far as they can. How does that Amazon process look different in the brick and mortar from your traditional deal?
You know, what's great in from, from, from Sonic's perspective, it's not that much different because it's what we do every day is an organization. But we do have a teammate that's identified as an Amazon sales associate. They'd have a logo on their shirt along with our, whatever the store's brand's logo is, a parking area. In every state, there is going to be right now, unfortunately still, you know, pen to paper where you're going to have to sign some power of attorney, some document, a title. There's still some ink requirements in. Yeah, there's to read the will need to be done.
And then if they want us to take them through the vehicle and do the delivery, great. If they don't, this is their fifth one and they just want to get in their car and we can move, set their radio stations for them, get their seats set, right? Do all those things. We'll do all that and then, and then get them on their way. That's one thing about the consumer that we find out that buys online. They want to come in and pick their vehicle up and get the heck out and not spend, you know, two hours running around the dealership. Certainly happy to have them there.
But we live up to what those expectations are for the, for the consumer. And Amazon challenge us on that right away. And our challenge was go visit our stores and watch our process and tell us what you think. And here's my CSI scores. And one of the things that Matt and them did early on was if you're not going to have great customer satisfaction scores, you're just not going to be in Amazon. Part of you, right? You just, you can't, you can't play ball. You've got to have great customer satisfaction scores. And that was very important to us as we got started.
What's your thoughts about CSI, Matt? And those, I mean, as Jeff said, it's super important. I'm very encouraged by the first month of operation and over hundreds of customer reviews are NPS score. That's above where we were targeting or expecting to be in the early days. Along with that, to Jeff's point, we're seeing almost all five star seller ratings. So the experience in the dealership for customers is great. And a number of customers said they feel like a VIP when they show up, you know, as Jeff said, like the dealers expecting them, the car is ready to go.
It's clean. It's out front. I'm not trying to brand the dealership. As Jeff talked about the spot or the sign, we just want to make sure that the customer knows where to go when they arrive because presumably they may have placed the order without having been in the dealership. And so that's really encouraging. I think we, at the end of the day, what we all want is a better customer experience. Yeah.
So one area that I think is on a lot of people's minds, we've already talked finance. The second is I think about that delivery would be attachment to the service department, right? So the cops revenue over time is so important and the relationship is so important. So Jeff, how during that delivery experience, if it ends up being kind of what the customer wants, like, is there an introduction to service? Is there a, you know, what, what is sonic doing to increase that attachment rate into service?
Yeah, 100%. Our team may still get paid if they don't make that introduction. So that's a 100% and it's something that the consumer wants, right? We always make an introduction on our product or service department. If it's after hours, we still introduce, we show where the service department is, where the service drive is. We have pictures of our service writers that are in the dealership and there is an intro. And we also set that first appointment, which is critical. We, we, we want to try to get the customer to come back in 90 days. We explain, look, you may have questions. There might be anything that might be going on with your vehicle. We want to give it just a quick once over. There's no charge to you, but, but that is something that is a part of our process. It's always been a part of our process and it's a part of this process as well. Yeah. Matt, you support that at the Amazon side, right? There's not an issue. Fully support it.
Yeah, exactly. I mean, that's part of the objective partnering with dealers is that we recognize this product has to be supported and that we want to create a great customer experience and, and, and, you know, that means, you know, ideally, and, you know, customers prefer dealerships that are close to them for that reason. Yeah. Yeah. So I would imagine thinking of CSI and then the Amazon ratings, you probably haven't seen this yet because you're getting volunteering dealers that are very participatory and probably facilitating a great experience. There's going to be a bar where Amazon, if a dealer doesn't provide that great experience, we'll say, Hey, we're done with you on the program. What does, what does that bar look like? Maybe Jeff, you've been involved in creating that bar as part of the board.
We want to uphold a great customer experience across every transaction. You know, my experience working with dealers is that the majority want to provide a great customer experience and do, but, you know, some don't. And just like, you know, some restaurants aren't, aren't good. And so we will, we will track that religiously and, and take action if needed. Makes sense. So Jeff, the biggest surprise for you since partnering with Amazon autos, we began building trust and working together. And we've had some very robust meetings and, and great conversations. I think that, you know, how willing Amazon has been to sort of break the mold and maybe the mystique that people might businesses may think of Amazon has been a great welcoming surprise for, for all of us.
We don't get to be the size that Amazon is without having great experiences and relationships with your business partners. And, and so far that is 100% come true. And then our team, there's a lot of energy at Sonic around Amazon and a lot of energy around the idea of developing a digital retail solution with Amazon that is going to allow the consumer to buy from end to end and everything in the middle. And what can we learn from that and how can we use that to improve our own technologies and businesses as we move forward. And selfishly, we're going to learn from that and we're going to build from it and we intend to help the industry, you know, correct us.
It wouldn't bother me at all if we just had one darn tool. I mean, we have a CDK or we have a Reynolds and Reynolds, if we didn't have one darn tool that, you know, worked for everybody that, that allowed for a digital retail experience to be online and then leave it up to the dealer, you know, to provide the great customer experience that they need to provide. I mean, Jeff, that would be insane. That would mean we wouldn't have 10 different logins. Like, what would we do in the world if we didn't have 10 different logins, 10 different data centers, 10 different platforms. And your logins not long enough. It needs to be a four character.
如果我们只有一个工具,我完全不介意。我的意思是,不管是CDK还是Reynolds and Reynolds,如果没有一个能够适用于所有人并支持在线数字零售体验的工具,然后让经销商来提供他们需要的优质客户服务,那就太疯狂了。就像Jeff,那样我们就不用再有10个不同的登录账户。想想看,如果我们没有10个不同的登录账户,10个不同的数据中心,10个不同的平台,我们会怎样呢。而且你的登录密码还不够长,需要至少四个字符。
So when you think ahead, Matt, there's price enhancements or new features that we could expect from Amazon autos. What are some of the new things you're working on out there? Yeah. I mean, you can expect that, you know, we'll want to continue to expand selection, selection for customers, which means, you know, more brands, more financing options, but also for dealers. I mean, to the earlier questions, you know, we know that what we have, you know, the initial experience today, you know, only Hyundai capital, for example, for financing, we need to expand that. And that's both good for customers and good for dealers.
We'll be introducing leasing, another very important element for brands and particularly EVs and car buyers. So, you know, I think you can expect that the enhancements, like they're all aimed at just making it a more comprehensive and convenient car buying experience and then a better experience for dealers selling an Amazon. What's causing? It's the biggest friction point at this point. I mean, it's exactly to your questions, right? It's F&I, it's trade in, it's, you know, improving those experiences.
But the thing that's important is that we know ahead of time, as I said earlier, hey, it's not going to be 60% penetration on day one. It's just not. We've got to go figure this out, but there's a lot of smart people in the room. Let's go figure it out. You know, one other big surprise, Sam, that I just thought about was, wow, why did you decide to do new versus preowned? Because pre-owned would be so much easier to do, right? It would be a whole lot easier. But tackling, if you can do new, you can do preowned real easy. So I think, you know, Matt would tell you that preowned would be another product down the road that, you know, that we'll get into and be able to offer to the consumer, which would be great. Something, and from a volume perspective, three times the size of the new car volume.
You know, can I just say this about both Jeff, you at Sonic and then now to Amazon? I think it's cool as heck that you're sitting on this podcast talking to us about this project and you're willing to talk about the great parts about it, but you're also willing to talk about the areas where it's a challenge and you're trying to work through it and innovate through it. Like honestly, Jeff, you said at the very beginning, dealers are great at smelling out BS, right? And I think it would be a huge mistake to come into a place like this. Many OEMs would tell you they've tried the same thing.
And, you know, a lot of them would try to shut down the conversation. I love that we're having this conversation. We're saying we're trying to work to solve better for these things, for the dealer to strengthen the customer relationship. I think it's a ton of confidence that you're here, that we're having this conversation, Jeff. Do you agree? A thousand percent. Look, I've been at this for 30 years and I've learned from, you know, some of the best dealers in the country and you don't, you just can't bullshit an autoretant dealer. You're just not going to and tell them the damn truth, but tell them where you're at in the progress that you're making and they'll be right behind you helping you try to figure it out.
And I said this, you run a car dealer, you run a car dealer, you run anything. And this is an incredibly important time in our industry, you know, EV aside, creating the environment online with the right AI and the right technology is going to make a big difference. And I'm looking forward to, you know, getting across that goal line with Matt and his whole team. We're going to, and all the other dealers are involved here because there are a lot of really smart dealers that are participating.
And a lot of dealers that are sitting on the sidelines that I have a ton of respect for that are watching. And I want to say, listen to this podcast to say, well, shit, you know, he's not bullshit unless he's telling us, you know, where he's at and what's going on. And we've got our ways to go, but we're making progress and we're going to, we won't stop until we're finished. So, so what would you say, Jeff, to those dealers that are sitting on the sidelines hesitant to jump in? Love to ask you that question.
Then Matt, how do people find out about more than is there a, is there a particular type of dealer other than a new car dealer that you're looking, you know, is there a particular dealer profile? So Jeff first on the, I mean, look, keep watching and keep listening and keep calling. I get phone calls every day on it, whether it's from a dealer or a manufacturer, a partner, I've got one next week that wants to dig in a little more and understand what that's going on or come, come join. I've talked to a bunch of people and it's come get on this board with us and let's learn together.
And, and, and look, you don't have to be a genius. You've got a willing partner in, in Amazon. That's not hard to do. They've got all, they've got a lot of data. They're very smart people, good people. And, you know, if we just take our time and we do this right, I think that, you know, going to have a lot of participants that are, that raise their hand and I don't begrudge or hold anything against any of them.
Percent on the sidelines or any of them saying that bull, bullshit. I don't want to be a part of that. They're going to take our, they're going to take our profit. I get it. I get it 100%. Yeah. I'm just of the mindset that I'd rather have a seat at the table and try to figure this out and solve it than not. And so we're putting our resources, time, energy and making that happen. You have a voice and a place at the table in the evolution of this. And obviously they're listening, Amazon is, as you go down the road.
So Matt, who are you looking for dealer-wise? Who can sign up and be part of the program? Well, I would first just like to say, I love working with car dealers. I find them to be some of the most entrepreneurial people in the country. And it's really fun, you know, work with people like Jeff and, you know, others who we've been working closely with. Because, you know, they're action-oriented, as Jeff said, like, let's solve the problem. Okay. Here are the problems.
When we had our first dealer counsel, we said, here are the challenges that we see, right? We want this customer experience. We understand you need this profitability. How do we do this? So the dealers we want are dealers who are willing to innovate and experiment. And we're not going to get everything right. We're going to try and we're going to make some mistakes. But if we make mistakes and we can then correct, we'll do that. So be it. Yeah.
All right. Well, so to both of you as we wrap up, what are you most excited about regarding the future collaboration between dealerships in Amazon and how do you see this partnership evolving over the next few years? I mean, obviously it's in its infancy here in the first month. I want to board, by the way. I want to join Jeff on the board. Come on. We would love to have you, Sam. Hook me up. Hook me up. All right. To have a voice as a dealer. That's a pretty cool deal. So, but how do you see this evolving here, Matt? I mean, as I mentioned earlier, we want to continue to improve the customer experience. So there are certain elements, you know, additional selection.
Jeff mentioned pre-owned vehicles, additional lending options, and, you know, continuing to make it a more efficient process for the dealers who are participating. And then, yeah, I think, as I said, since dealers are so entrepreneurial, we keep getting ideas. Oh, yeah, we could do this. You know, let's work together on that. So I think there are other elements of the customer journey, you know, to drive more customer retention for, you know, what's the statistic most customers after warranty? They leave the franchise system, right?
How can we, if they have a great experience on the front end and through the service, then I think they're more likely to stay. So helping with that customer loyalty, I think these are areas where Amazon's quite good. And then, you know, Jeff said to me in our first meeting, he said, you know, 50% of my advertising is working. I just don't know which 50%. He said that jokingly, I'm sure. But, you know, I think we can help there too. That's awesome. Jeff, any other comments you'd like to add to what Matt said? I mean, I agree with everything you said. We're, you know, on the exact same page.
I do think that there's, you know, a huge opportunity for Amazon to buy the brand to buy vehicles off the street and to sort of create, you know, you talk Sam about your, you know, ACV and your country, the marketplace. Yep. Internal. I think that there's, you know, great opportunities there for us to, as an Amazon dealer to participate in something like that and to be able to supply inventory that way, you get them at better margins and quicker turn and all kinds of, all kinds of great opportunities there.
But most important is the collaboration is going to lead to a great guest experience in a tool that allows the consumer to transact online. And we don't have it. We've said it a lot clean. They do. Let's sit down and talk about that, you know, at some point in time. But I look forward to look, there's a lot of hard work left to do, a lot of hours, but we're going to get there and I look forward to the results that come from that.
Because at the end of the day, the North Star is, you know, let's make sure that we have the best guest experience and whether it's inside our industry or any other industry, I want consumers coming to our stores and saying, my God, that was fantastic. I wish they had sold other things. And Amazon can help us do that. And we're going to work hard with them to make that country. I have one last question and I'm not trying to reopen, but it just, it came into me and I think every dealer listening will think this based on what you just said, Jeff, about the buying used car marketplace or whatnot.
Who owns the data? So you sell that car. Who owns the data for that question? I didn't wait for that question. Okay. Everybody asks that question. I will get hate mail if I don't ask that. It's such an amazing question because it comes up everywhere and everybody's like this, you know, this is my data. And I think it's incredibly important that, you know, we all protect our data. That's obviously important, but at the same time we use the data to make the guest experience better.
So maybe we're thinking about in the auto industry, sometimes data in an old way. Like maybe the question is, is who can best utilize that data to deliver the best customer experience and better connect us to that customer? And to your point, Amazon's got a ton of data like they don't do a lot of things in the old way. Yeah. Yeah. Just because we've done it that way doesn't mean it's the best. 100% agree. Matt, how are you thinking about that?
So the customer starts on Amazon. They're an Amazon customer. They have to log in to start the transaction. So they're all, they are already logged in. But then once they submit the credit application or if it's a cash deal, if they, you know, they submit payment, it becomes then the dealer's customer as well. Okay. Okay. Very good. And your intent with the data you've collected is to again help us deliver our best to the customer, whether with insights or whatever, with whatever.
The important thing here is can we use data to improve the guest experience? Yeah. I mean, how do we do that? And to make things more efficient, more effective. And we know we can do that. Why not combine forces and figure that out together and what that's exactly what we're doing. Yeah. Well, Jeff and Matt, hugely grateful for your time today. This is a fascinating project, something that will truly transform the face of the auto industry. And again, to Jeff at Sonic Automotive's point, the way we deliver our very best experience to every single customer. Super grateful you're here. Thanks for being on the Cardio Ship Guy podcast. Thank you. Thank you so much for having us.