Car dealerships revert to pens and paper after cyberattacks on software provider
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[0] https://casetext.com/case/loop-llc-v-cdk-global-llc-in-re-de...
Why patch things or work your ass off, when none of your customers have an alternative? (especially if PE buys the business or CEOs get a stock price focus and gut engineering to keep-the-lights-on levels)
Could you expand on this, aren't U.S. car dealerships private businesses competing in a (mostly) unregulated market?
https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes
not a monopoly per se, but "forced demand"
Even if you ran a petition and forced a state ballot measure, dealers would run a propaganda campaign to make it sound like a pro-Tesla measure.
when, of course, that very line was funded by large corporations. such is life in Modern America
Or watch the BBC comedy “Yes, Minister” and “Yes, Prime Minister” to grasp how government (as well as most large companies) actually works.
Going through existing congressional process means getting at least a champion on board and overcoming dis/misinformation from many insider corporations, often large local donors.
edit: From my understanding,successful campaigns via referendum tend to cost anywhere from $2-20 million usd. Often involving paid signature gathering and local advertising.
It’s pretty common for modern Western governments to be both of (Democratic, often also Federal) Republic and (Representative, sometimes with minor areas of Direct) Democracy.
You're talking to one, who knows others.
Democracy as defined is a goal we have. Not something all (maybe most!) Americans would claim to enjoy.
Honestly, I can't even think of an alternate(, but still charitable,) interpretation of:
"Shouldn't it be very easy to vote to fix that in a democracy?"
Suggest one, if you can?
> most people
to
> a nonzero number of Americans
Holy motte and bailey, Batman.
> "Shouldn't it be very easy to vote to fix that in a democracy?"
That hasn't been the dominant use of the term for centuries, but, sure, you keep pretending.
It is also a republic. It could be a republic even if it was a pure direct democracy somehow without "issues" - in fact I struggle to see how a direct democracy without issues could be something other than a republic.
What, HOAs?
FTFY. She's still paying for it!
(a) don't need to have cars in a lot,
(b) can sell online,
(c) tolerate some uncertainty while interpretation of status is fought in court.
Then, you can (in many states), sell cars directly.
Tesla does all 3 as they usually don't have (a) inventory and in some cases, the law doesnt prohibit showrooms (b) seem perfectly comfortable selling you the car online (and critically, customers are ok with this too) and (c) have money to fight for settlement of the issues.
Theres even more creative sales now - tesla is actively setting up sales ops in Indian reservations - which have their own sets of the laws outside of specific states.
Edit: added (c) which is certainly an important factor in many states
But for sure, Ford, GM, Toyota, Stellantis, etc would probably love to sell direct.
They have rules that protect them from competition from manufactures, rules that protect them from them from competition from other dealerships (i.e., Ford can't allow a dealership to open across the street from one they don't like), in many states, there are special rules for inheriting a dealership.
Anyone can open a dealership, except manufacturers, and it looks to be a reasonable and non discriminatory process. Critically, the government does not mandate the minimum or maximum number of dealerships in an area, so competition is not harmed in any way. This really does not seem like a monopoly issue.
It doesn't seem like there are any 800lb gorillas in the market where I live.
Dealerships take a lot of inventory and capital risk away from manufactures. Most (unlike Tesla) do not what to deal with retail customers directly.
You basically see this with Tesla: refusal to comply with local lemon laws, the CEO personally banning customers from buying his cars, repairs that take months, service centers hundreds or thousands of miles away.
https://www.justice.gov/atr/complaint-center
https://www.ftc.gov/advice-guidance/competition-guidance/ant...
I suspect we're missing some nuance in that 90%. US dealerships are dominated by UCS(Reynolds&Reynolds) and CDK. ADP and DealerTrack have a fair amount. I used to provide support for three of those.
Switching DMSes is likely disruptive, but is still pretty common. We've had dealerships do it every now and then.
This will also be interesting to see how it affects their their long in-development and repeatedly stalled Fortellis product. They are attempting to release it as a DMS agnostic solution which I did not think that other DMSes will gravitate to just because it comes out of CDK. This attack is just another reason for a competitor DMS to not use it.
Does Fortellis even accept other DMSes? I've dealt with it a bit to integrate with eLeads (now CDK CRM), but there didn't seem to be much on there apart from CDK's APIs.
This is for software programming. Their salary ranges are also unbelievably low and they avoid interviewing anyone with even moderately strong qualifications (which would be considered "mediocre" qualifications in any tech hub).
I'm pretty sure one of our recent trialling companies have been using CDK and desperate to get away from it for their restoration work.
"It hasn't been updated in years" was the quote last week..
It's also been, traditionally, a crazy business with dozens and dozens of vendors that a dealership can choose from. CDK and Reynolds might have pretty big market share, but a lot of that is because they integrate with zillions of tiny vendors.
Lastly, I just don't think there's been enough money in it to try. The industry as a whole is lucrative but you're not gonna get rich trying to dominate a single aspect of it. COVID represented a permanent shift in how software was viewed in the industry. Dealerships have to spend more on higher quality software, because they simply can't afford to stay in business without it.
The closest company I can think of that's trying to disrupt this is Tekion.
Of course, I'm not going to do it and it's probably extremely hard :)
https://www.justice.gov/atr/economic-effects-state-bans-dire...
- lobby for regulation
- poach from the challenger
- tank prices in the one area the challenger has traction
I believe Porter also mentioned trying to secure vendor lock-in.
Dealerships don't make most of their money (or any money, really) selling cars. They make their money from service, and selling info to 3rd parties (ever notice when you buy a new car, you will receive mail from SirusXM for a year after). In order for this to work, their systems are all tightly integrated. When you buy a new car, the dealer will know when you're due for service. When you have your current car serviced more than a certain amount, the dealer will know you're in the market for a new car.
So, it's not possible to swap out only the service management piece of CDK or only the sales piece, or only the CRM piece. They all have to work together. The reason I know is I happened to contract with the IT department of a very large dealer network at the time they were undergoing a migration from Reynolds to CDK. A year into the migration process...they pulled the plug. Moving even from one large incumbent to another was too much work.
Good luck breaking in on that as a brand new baby startup! I think you'd probably have better luck completely disrupting the car sales process from the ground up.
That's my perspective, as someone who has worked at CDK.
If you want something corroborating that, go look at r/serviceadvisors and see why people say they can't switch to anyone from CDK. The tiny dealers are the best candidates for moving, everyone that's reasonably big has too many needs the other DMS providers do not address (yet).
You could hack your local dealership but if they can't sell, the customers just go to the dealership down the street, which serves as a very high incentive to get your systems back up and running.
I would bet money they have non-competes and no-hire agreements with more companies than that - the entire industry is full of it
R&R doesn't have as wide a product offering as we do, and the upstart DMS providers trying to disrupt the market are even narrower than that. For all its problems, CDK is dominant for good reason.
I was talking with one of your clients today (we're not competitors) and you just don't realise how far screwed some of these companies are right now.
It actually made an instant upsell today of 'here's our additional cloud sync' feature. No questions, no umming and ahhing, it's just 'yep done, add it, turn it on'. Heck we probably undersold it by 10x.
I hope you guys start getting some sense of normality soon and get systems back online.
There's more useful stuff on Reddit.[1][2][3]
- Some dealerships can still sell cars. Some can't.
- Parts and service are in worse shape than new vehicle sales because their inventory info is in the CDK system.
- The process by which new cars and parts are ordered and delivered to dealers is down.
- Many dealerships can sell what's on the lot and do repairs with parts in inventory, but the supply chain has stopped.
[1] https://www.reddit.com/r/partscounter/comments/1dmbmy7/the_c...
[2] https://www.reddit.com/r/serviceadvisors/comments/1djisf5/cd...
[3] https://www.reddit.com/r/askcarsales/comments/1dkf0xv/how_pr...
> I write these words in steel, for anything not set in metal cannot be trusted.
The digital world feels increasingly dangerous and ephemeral. If I have something written with ink on paper I have certain guarantees:
I know that it's accessible even if the power is completely out. I know that it won't randomly get deleted if my hard drive suddenly dies. I know that the only way someone can read its contents are if they get physical access to that piece of paper. I know that it's not being automatically scanned by a platform provider to comply with government surveillance laws. I know that any alteration to the document would require physical access to it and would most likely leave a visible trace.
There are technologies that if applied would provide some or most of these guarantees and even provide increased safety, but I don't trust any existing SaaS providers to give me any of them out of the box, and the average person doesn't have the skill to string tools together to get them.
And so here we are: in 2024, anything not printed on paper still cannot be fully trusted.
Is that done on purpose?
More modern retailers are offering receipt-email options which is the option I choose if available, that way I have a "permanent" record of the transaction. I recently did some old taxes from 7 years ago and this feature was invaluable as most online portals no longer offered the records.
(1) Generally, receipts should be scanned (and perhaps re-printed, depending on your needs) for any sort of conservation effort. The heat from scanning (not in any modern tech, just as an FYI so you can decide for yourself) can cause the same degredation. It doesn't necessarily take a long time either. If you ever order a pizza where the driver tucked the receipt in the box you'll also notice that chunk of the receipt is illegible.
(2) If it's partially visible in its current state, you can probably get away with increasing the contrast and applying a decent OCR to the result. You'll get some hallucinations, but if you fill in the most likely characters conforming to the grammar of a typical receipt you're likely to be in the right ballpark (if you need a particular warranty code or something you might have to manually try a few options for particularlly blurry letters). Pair that with a photo of the receipt in its current state for any distrusting shopkeeps.
The prevention measures for digital catastrophes are not widely understood by those outside the industry and most people would have to outsource them to someone else without any way of knowing for sure that what they have set up will actually work if push comes to shove.
verbal is less secure than digital, which is less secure than paper, which is less secure than clay, etc.
IMO Every important document must be first written and then scanned (or digitized) That includes medical records, sales receipts.
In the event that your personal printer is not functioning, the airport has many publicly accessible printers for your ticket printing convenience.
I don’t have any phones still working of that vintage.
Not a perfect comparison but the argument is dumb because the item at issue is the printed product not the printer.
If someone is carrying their printer with them on their entire trip in order to print their boarding passes at the last possible second at the gate, that's... A different kind of problem.
nightmare scenario: your flight is delayed on the runway, so you end up watching a bunch of videos and draining the device battery. once you land, you sprint to catch your connecting flight following the delay. but just as you get to the gate to board, your phone dies and you can't prove you have a ticket before they close the door.
IT needs more logging to write-once media. That's mandated for many financial businesses, but it's not widely seen elsewhere. With unchangeable logs, and the ability to re-establish databases from logs, there's a path to recovery.
And no, that does not mean emulating WORM devices on erasable hard drives.
The former are far more vulnerable to outages and interruptions.
Fair but paper comes with a significant drawback of poor discoverability. I've had to dig through old aerial survey photographs taken before digital photography, and combing through the indexes to find what I looking for was an adventure unto itself. Never would've been able to do it without help from the librarians, and there's only one archive where that information is stored.
And digital format can be more readily altered, but it can also be more easily backed up or have redundancies. There's ways of managing digital's drawbacks, and ultimately I think we're probably better off having digital formats then just reverting to alternatives for the most part.
* dealer didn't have a good handle on what was available in stock on the lot * anything related to a title for a tradein was massively hampered. * appears USAA's auto insurance online add/replace vehicle on your policy is broken * everything was literally hand written, down to the sales contract
I would imagine the impact of this is in the tens of millions of dollars
FWIW, USAA did some kind of upgrade recently and there have been several functions that broke utterly. They had a message for a while apologizing for it. Not sure if it's fixed now, it could be that which you are experiencing and not related to CDK. Or you may be right.
Also, we're hiring! I could use another solid dev and a solid designer that wants to create a delightful experience out of an awkward wait time in dealership. Challenges abound but persistence prevails. Primary stack includes React, Remix, Xstate, Remotion, Framer motion, Python, Django, Graphql. Contact devs@zipdeal.com if interested and we can go from there.
Should just rename it back to Dealer Services at this point.
DMS, as someone already mentioned, stands for Dealer Management System.
https://x.com/GuyDealership https://www.dealershipguy.com
*not affiliated
When you talk security to most dealerships, it's about protecting the assets that are on their floor plan -- the vehicles -- not necessarily anything else. Most places have tried to take steps that prevent their sales folks from walking out with their customer book, but, that's the extent of most of their information security needs.
--
All that being said, I will call him out on Twitter for some of the things he says that are quite ridiculous. He's a sales guy after all.
Naturally the people who know these answers are very busy today but hopefully we will hear more soon.
Whoever is politically convenient
> How?
Probably social engineering but possibly poor security practices
> What vulnerabilities allowed the intrusion
Probably poor security training on employees and poor safeguards, but possibly also poor security practices in software engineering
> what organizational processes created those vulnerabilities?
Leadership with poor priorities and shortsightedness for the sake of short-term profit
I'd be willing to bet that they have comprehensively sloppy and terrible infosec practices and that we'll never hear any details about it - most of their customers wouldn't understand, and it would only expose how bad they are at all of this if they did.
Most of us don't actually know the answer, to be honest. They're not telling 6500 employees what really happened. I know more than you, but not that much more, and I'm definitely not saying anything about it.
If the dealers have the capacity to go around and run everything by pencil and paper, it seems like either the are really poorly run for the average case where the computers work and make life easier, or the programmers have done a really poor writing useful programs.
Googling tells me the average car salesman sells 8-10 cars per month. Maybe more for a 'high volume' dealership but certainly less than 1 car per day.
I would think the paperwork to sell a single car would take substantially less than 8 hours for an experienced worker to complete.
But an individual dealership has what, 50 cars in stock? That seems easily manageable to me. I'm old enough that I've seen far larger operations running on paper.
Of course, the days of paper-based paperwork did require businesses to employ diligent and numerate clerks, and to have filing cabinets, manual calculators, photocopiers, whiteout, and suchlike. I suppose they could have run into some challenges around that sort of thing.
That would be a very small dealership around here, even in the suburbs. 50 cars on the lot was the amount I was seeing during the height of the pandemic supply chain problems and I was amazed at how empty the lots looked.
The entire time I was thinking how much of a "waste of time" this all was for the sales guy. He really didn't do much after the initial 2 hours of sales time, just "held our hands" while the paperwork was processed.
How? Like, they order a certain number of cars from the dealership--do they just trickle in randomly? Do they forget to log sales? I get misplacing where the car is, but whether it is?
Granted, I have friends who work at rental-car companies, and the level of shitshow they aspire to is truly inspiring.
I told him, "okay, well if you do get any in, call me up so I can come over and buy one." Easiest sale ever. Well, that didn't happen, and my assumption is that they just don't know what they have from day to day.
It's merely a gimmick to get you in the door and convince you to buy something else. (And probably illegal, too.)
Happened to me the first time I went to buy a car. I just walked out and went to a different dealer.
Sure. And I get that some of the walking around is probably a ruse. But we're talking about their internal records.
I don't doubt that on a slow day a salesperson and the entire process will be slowed down... nothing like tapping into the sunk cost fallacy (as a buyer I spent 3 hours here today, I'm not walking out now and doing THIS again)!
And sometimes I swear it's just a glitch and they don't really care.
Me: "I want to buy one of the cars you advertised in the newspaper." (It was 2003)
Them: "We don't have those cars."
Me: "But you're advertising this sale."
Them: Poker face.
It wasn't like they said, "Oh, yeah, that was a popular sale and they sold out." It was very clear they advertised cars they didn't have so they could divert me to a more expensive model, and it wasn't like they offered to call another dealer to ask if they still had inventory.
Even in person, the people in the office would look at inventory on the computer but then have to send someone physically out into the lot to verify they did in fact have what "the system" said they have.
If you run a SAAS you could offer this as a feature. Even hire data entry people to input transactions later if needed.
If not, this feels like an obvious match there.
E.g. "Company has a defined and demonstrated process by which they can (a) offer degraded but limited functionality in the event of full system outage & (b) accept data updates via a backup method, until system restoration."
Sure would have helped with Change Healthcare...
~1 week outage once every ~5 years, let's say you lose 100% of revenue that week, that's 0.38% of revenue. Now most likely they're not losing 100% of revenue, demand for cars is not very elastic... it starts to get pointless all around.
Which is frustrating for consumers, but the profit for perfection isn't usually there.
There's also an argument that developing a backup process is a great exercise to help people understand all the parts of your system and how they interact, as a first step to making them more efficient/redundant/secure/delightful.
Some of the smaller mom-and-pop stores just use small business accounting systems like quickbooks but those get pretty tedious to maintain with any sizable number of sales or employees per month.
Best case, this startup gets bought out by a larger competitor. Worst case, they get crushed by it.
Oligopolies going to oligopoly.
Why assume that good people are only driven by money and pay? Further that good people know all the opportunities and can get a job paying better? Also there is no evidence that I have seen that the places that pay better don't suffer from cyber attacks or ransomware.
A bigger part of the problem (maybe) is the fact that there is a vast amount of info published which helps people improve their hacking skills and make more attacks possible than would be the case if that info was not as easily available. (Note I did not say anything that indicates it wouldn't still be possible or happen but that it wouldn't be as easy to do).
Ah that's easy: Because CDK Global does not utilize the kinds of technologies or operate in a market where it would attract engineers who'd take the job out of passion or curiosity. It's a dime-a-dozen Enterprise Java shop that sells software to car dealerships. It is also not a startup that offers you equity upside.
If you want a job where you get to write Spring Boot Java that gets deployed to AWS for a "mature" employer you're spoiled for choice; and orgs with the same tech stack will pay 30+% more.
The real problem IMO is that Brian MacDonald is focused (again, this is his second shot) at squeezing the company for every penny so he can make a buck turning it public again. I hate to see all the work people are doing 24/7, but a little part of me is giddy with the thought that BM is getting bent over hard by this. Couldn't happen to a nicer guy.
So in this case, a DR plan might be "how do we restore our CDK data if something important gets deleted?" A BCP might be "what do we do if CDK no longer exists?"
BCP: keep the business running, possibly without using IT.
If you have a BCP with no DRP you're probably going to survive, painfully.
If you have a DRP and no BCP the company may be dead before the disaster is recovered.
Pen and paper, but please no cursive: Widespread cyberattack sends car dealers back to 20th century - https://www.marketplace.org/2024/06/21/cdk-global-hack-softw...
> Car dealers are a pretty big part of this economy, doing some $1.2 trillion in sales last year, according to the National Automobile Dealers Association. In the wake of the CDK hack, there’s a new policy among the salespeople and mechanics at the Willis Automotive dealership in Des Moines, Iowa: no cursive.
> “We have a lot of staff members that are younger than 30 that I’m not sure have seen cursive in their life. So we try not to go the cursive route just to make sure everybody understands what’s going on,” said Jason Willis, CEO of the dealership.
Additionally, kids do still learn cursive. It's just not mandatory curriculum. My nephew is was learning it just before school ended this year.
If the system ever fell down, the operators had standard templated papers they would fill, and once the system would be back up they would add the case data back in.
“The current 911 system is down statewide, if you have an emergency and need assistance pull your nearest Fire Box, or call the Boston Fire Department at 617-343-2880. You can also get assistance by going to your nearest Firehouse,” the post read.
Police Commissioner and Boston Police Chief Michael Cox said earlier Tuesday that residents looking to contact officials while the 911 system was down could call local police departments for assistance, and pull the local red call box on streets and corners to alert fire/EMS.
https://www.kake.com/story/50917965/statewide-911-system-out...
The technology, patented by Gamewell in the 1880s, is based on telegraph technology from the mid 1800s - you pull the handle, it releases a notched disc which starts spinning and transmitting a number to the central fire command. The number corresponds to a street address and emergency services will be alerted.
Old call box still in working order: https://www.instagram.com/reel/C5bwxFoJc56/
There are a bunch of problems that connection and automation bring with them, the rise of digital monocultures seems to be one of them.
Like any non-technical market, they just bought what was pitched, and there's often more gripes than complains.
One example:
When a patient transfers to another dental office, their records need to follow. Before you "had to" fax or snail-mail them. The software/cloud solutions promised streamlined, painless transfers, but those benefits never really materialized due to the amount of HIPA-compliancy issues (the details around this pain point are fuzzy).
The office-manager explaining all of this was (half-jokingly) fantasizing about going back to snail mail.
I'd say the problem is approximately zero to do with HIPAA; we almost never even talk about it in my experience. It's just a lack of standards, and poor implementations of what standards do exist - every once in awhile something will crash because of a weird escape character or something in an HL7 message (though that could be on us no doubt).
I believe last year was the first time that there was a mandated standard to export EHR data and one of the devs was complaining that it didn't even say if units should be imperial or metric.
I'm told the labs are a complete mess and have no federally mandated standards; I know they've written code because doctor X wants to use lab Y. Obviously the big national labs win because you only have to write code for them once and all customers can use them.
It's just another aspect of a broken American healthcare "system" - there's no incentive for anyone to interoperate in the best case, and in the worst case it allows you to create lock-in for your product.
However, I could see certain professions operating with simplified "air gapped" systems.
Not connected to the Internet at all. It would take some disciplined processes but it would be possible. Updates could be done by qualified tech's to maintain the air gap when updating with a "sneakernet".
"Privacy" until a disgruntled staffer copies or takes a picture or just takes the pieces of paper and publishes them.
With digital systems, this can be mitigated (rate limiting, encryption and least privilege information sharing, audit logs etc.) to an extent. With paper, you're screwed.
I still remember a few years ago walking on a street in a city in Easter Europe, behind a bank office for a bank which no longer exists. There were dumpsters nearby that were overflowing with garbage, and the wind was carrying some of it around, like sheets of paper with bank loan applications, ID card scans, etc etc etc.
Paper is not easier to secure than digital systems if the people supposed to secure it don't care.
None of those measures do anything to prevent someone from taking a picture of the screen, which is the same sinking boat you describe.
I think you are insightful in identifying care as the key principle. My argument would be that care is more easily achieved by smaller groups working on smaller populations using fewer components.
But it's relatively easy to only have the people that need specific information to have it. Receptionist only has your names and contact information; doctor only has your relevant medical information; etc etc.
With paper, either everything will be together in a big file, or it would be very impractical to manage.
> My argument would be that care is more easily achieved by smaller groups working on smaller populations using fewer components.
Potentially. Or they'll improvise because they're a small operation and there's trust. Many a small company has been caught with terrible physical or digital security, because nobody cares and at their scale dedicated people to care don't make sense.
Which brings us back to...
> "Privacy" until a disgruntled staffer copies or takes a picture or just takes the pieces of paper and publishes them.
With paper, it's primarily about the trust you place in people.
With digital it is not only the trust you place in people, you add the trust required for the systems you use; not only the ones you select, but the ones they depend on.
Across a range of systems, we are seeing that we haven't yet mastered complexity.
> Many a small company has been caught with terrible physical or digital security, because nobody cares and at their scale dedicated people to care don't make sense.
Which brings me back to those boutique firms... with paper-only you reduce the problems to one that have been well-understood for hundreds of years. Air-gapped systems seem like an attractive option, but even then, you're depending on both the trust you place in the hardware, OS, and package vendors and in the practice of the new field of digital hygiene by the staff. My prediction is that some clientele somewhere - actors, politicians, billionaires - will decide that their private data should be as private as they can possibly make it, and that it will be the old-fashioned way.
It was a massive shit show.
- Tests? Useless and garbage. Only used to pump their code coverage reports to show to management
- Design? Non existent and a hacked together code base across a half dozen low bid contractors, probably junior engineers at best
- CI? Dedicated test environments? Nah, costs too much money. Just “use docker to test on local and deploy directly to prod”
- Documentation? Besides very basic instructions on how to deploy locally … good luck
- backup and recovery? Nah who has time for that. Just work on the features that {big client} wants
- code quality? I wish there was a “god” class, but in this code base they managed to create a universal class or “macro service”
Management was a mess. Just a mouthpiece for sales or executives. No backbone. No vision. Just “alright we just need to get through the quarter” mentality.
I am in the market for a new vehicle and did multiple test drives this weekend. One salesperson casually mentioned "our software is down and things are a little crazy". But other than a lot of waiting, things proceeded as I expected.
I figured that by 1000 this (Monday) morning I'd be fending off follow up texts and calls. Yet its now 1430 and not one outreach has appeared on my phone. This is not a complaint but it is a surprise compared with past buying experiences.
I still choose to just do it all by email anyway and then show up only to grab the keys. Works fine. Next time I'm going to go a step further and have them bring the car out to my driveway. They absolutely will, even if it just means having a salesman drive it out.
1. There are legal incentives (in the US at least) for doctors to use electronic health records, EHR. Providers that don't use EHR are penalized for it when it comes to Medicare/Medicaid.
2. Imaging PACS (Picture Archiving and Communication Systems) allow radiologists to read images from multiple different facilities from one location, including smaller/rural hospitals, and at all times. The alternative is to require physical staffing by radiologists at every single location, which is obviously much less efficient.
I agree there are tons of issues with the quality of cybersecurity, especially in the health system, but saying "I just want it all on paper" is throwing out the baby with the bathwater, not to mention basically impossible at this point.
Noteworthy exceptions: FAANG promotion bid orientation, and VC growth startup alignment towards shipping something to look like growth towards exit.
In a small minority of cases, you have developers who know what they are doing, and are thinking rigorously.
The norm isn't big-meanie Product making (forthright, courageous, photogenic) developers ship negligent security vulnerabilities, against developers' protests. Developers are at least as much responsible as Product.
But I don't think there's hardly any developers who would've done something securely but didn't because Product said no.
Anyways, I remember going in, and the guy pulling up a car in their system when the (too good to be true) car listed wasn't in stock.
He turned the computer screen around, and there was one of those (I think) fake "you have a virus" pop ups in the IE window. It was either that or a real alert. Either way - clearly incompetent with tech, and once I saw that I noped out of there fast.
Because then it would be impossible to do transactions on paper when the computer system goes down? That doesn't sound like an advantage.
So many of us were quick to move paper-based systems (voting, orders, kiosks, parking meters, journals, requests, etc) over to computers – without accounting for the e2e cost and flakiness of the software-based system.
Otherwise paper is quite fragile and susceptible to combustion.
What if voting was all done via paper and you could later view the scan of your ballot as it existed at the time of count? Unfortunately there could still be funny business on the backend.
Lets say someone offers me $500 to vote for candidate X. I don't like X, but I do like money. I vote for Y, I tell them I voted for X, there is no proof either way, would they still want to give me that $500? Or if someone says, "vote for X or I'll break your legs", how would they know if I voted for X or not?
fire protection is easier than data retention
no perfect solutions, only tradeoffs
If you have doubts about the system, you can just come and see.
A software system, even when reading the code, is much more difficult to see the chain of custody and workflow
I am personally not a fan of Tesla as a vehicle, but I admire the business model of buying directly from Tesla. Stealerships are a drain on the consumer. All that land they own can be used for productive economic activity or housing.
It seems like the EU has reined in the worst excesses of dealerships a lot, and allows direct-to-consumer. Maybe the US will follow suit in a few decades.
But as those manufacturers and dealers grew, they then had the resources to operate at broader geographies, and dealers lobbed for franchise laws to "protect local businesses", etc.
I think the main problem with dealerships is the government granted monopoly. If a dealership is in a region, most states prevent any other dealership from setting up shop in that region. That's why so many of them are passed from father to son like a dynasty. No competition at all -- and they act like it.
Restore competition and the "stealership" aspect should go away.
Tesla doesn't have independent dealerships and it's quite easy to test drive their cars before you buy.
But instead we ended up with a system where car dealerships basically own local lawmakers and got laws passed that not only prevent the manufacturer from competing with them, but make it really hard for people to start new dealerships to compete with them. And the experience shopping for cars at a dealership is absolutely terrible, which shows you that they don't feel any pressure to compete.
For example, Games Workshop doesn't like when 3rd party retailers charge less, but it's easy to find 3rd party retailers that charge less than Games Workshop on their website.
In response they've increasingly made certain models online only and its always at full markup.
There are practical reasons for this. People buy expensive items and expect to be able to get those items maintained and serviced. If the business was cutthroat, that could be more difficult. I don't want my dealer going bankrupt, frankly.
But the idea that dealerships aren't out there competing with each other is insane. Have you ever actually bought a new car?
>And the experience shopping for cars at a dealership is absolutely terrible, which shows you that they don't feel any pressure to compete.
Just the complete opposite experience I've had in my lifetime of buying new vehicles. And the idea that they don't compete is an outright fabrication. You have an incredible amount of leverage buying a car, and you can shop quotes around.
And use them openly against each other to get a better subsequent quote.
I once had the salesman turn his terminal around and say to me, "Have a look. By the time we pay the guys to detail and prep the car, we will make $700 off this sale. I have no more room."
Carmax was fairly OK in comparison to my experience with dealers but still took like 8 hours.
And the idea that they don't compete is an outright fabrication.
Not when almost all the dealerships in given region are own by the same family. Here the same group own the Genesis, Infiniti, Kia, Hyundai, Mazda, Mercedes, Mitsubishi, Nissan and Volvo dealerships in a 100km radius.If I want a Mazda I can get a quote from Joe Cardealar or I can drive 50km and get a quote from his brother Steve Cardealar.
So, more competition is bad for the consumer?
This feels like a reflexive response to the mention of the word ‘car dealerships’, not something that will lead to a discussion of the substance of this article.
Still, I think there is something to be said for independent dealerships overall for service quality. Trying to get a Tesla serviced is still something of a nightmare. In comparison the service departments of dealerships have are much more robust.
Usually, your soft drink is manufactured from the brand's syrup by a bottling partner, which is then distributed to a retailer, who you buy it from.
e.g: https://www.coca-colacompany.com/content/dam/company/us/en/a...
But in this case, at the point of retail it makes no difference. The store can sell as many different brands as they want. The problem is not the middlemen, it's the exclusivity arrangements that disincentivize brand competition.
e.g. I drank Coke products in my undergrad because of my school's exclusivity agreement.
Tesla has service issues, I'm not sure that they're related to their lack of dealerships though.
Dealers actually don't know much about their older cars. Try to bring for example a 1990's era (or really anything more than 10 years old or so) Mercedes to a dealer for service, none of their techs have any idea what it is, unless they happen to have an old guy.
Dealership shops are trained and reasonably competent working on newer stuff that's under warranty coverage. Older than that, you can often get better workmanship and cheaper prices with an independent.
It’s wired that the country of free market has all these protectionist laws that do not exist in many ex-soviet evonomies
It's a common misconception, but the US actually has a mixed economy.
They literally come to my house and fix things, it's incredibly easy for me, but I have four service locations within 30 minutes drive, so may not be the common experience.
They should have the option, sure.
But what difference do you think this makes in reality? The process ends up being the similar.
>but I admire the business model of buying directly from Tesla
A lot of people don't want to buy a $40,000+ item online. Tesla understands this, which is why they opened "showrooms" to have real people walk you through the process.
Oh, and let's not get started on surprise repair costs from Tesla, as if they are immune to that ridiculousness.
Saying "no stealerships" (so clever) doesn't change the fact that there's a manual process involved with buying a car.
The difference is the price listed is the price you pay. There's not an environment where the dealer is injecting whatever BS fee or piss poor financing they can to milk out every extra cent from the customer.
The manufacture is incentivized to sell these cars at the advertised price.
What does the "advertised price" mean, when companies like Tesla can, and do, change it on a whim? Is that really better?
No one is stopping you from walking into a dealership and paying sticker/MSRP.
My personal experience is that they honoured my order and delivered a vehicle superior in every metric but "turning radius". (Which has a far higher price if ordered again on my delivery day)
Every company in every industry modifies products and pricing? See e.g. "shrinkflation"
But there isn't a middleman with big facilities and staff to feed, so the resulting product can be cheaper, with the process being streamlined because the middleman's job is to milk you for all they can, meanwhile the original vendor just wants to sell their product.
No it can't. You still need places where cars can be repaired as well as storage for parts/cars inventory. The only way you reclaim some land is if service gets worse.
Edit: For example, Tesla sells direct to consumers but there's still a Tesla "showroom" in my town. In terms of footprint/appearance it's basically a dealership. So where are the land savings?
That said, still need somewhere to buy/sell used cars.
You probably aren't going to have 10 Ford dealerships in town all selling the same models of cars. That's where the space savings comes in.
As for parts/service, that also gets more streamlined as you aren't likely to have the audi/ford/dodge dealerships and instead just the 1 ford manufacturer in town.
So do we want competition, or not?
The competition is that besides ford there's going to be a GM, stellates, and Audi lot (probably).
If we want more competition, we get it not by having dealers competing over who can screw you the most with the best hidden fee, we get it by adding more car manufacturers.
The idea was "if you buy a VinFast" from vinfast and they exit the market, you're 100% hosed, but if you buy a VinFast from "Karl Marx VinFast and Fiskar Dealerships of North Idaho" you can go back and talk to KMoNI Inc about your new car.
The dealership model was established a very long time ago back in the cambrian explosion era of car manufacterers and people were buying cars from companies like Auburn, Cole, Crow, Davis, Dixie, Durant, Elcar, Grant, King, Kline, Lafayette, Kurtz, Marmon, Mercer, Overland, Peerless, Pilot, Roamer, Saxon, Stearns, Velie, Wescott and Winton [1] and then the company would vanish and there would be no support.
Towns don’t all need one Unilever store to sell your Ben&Jerry’s, your Dove body wash, and your Hellmans Mayo, then a separate Procter and Gamble store that sells Tide, Pampers and Bounty.
Why can’t you just get all the main car brands at Costco?
> They have considerable political influence and have lobbied for regulations that guarantee their survival and profitability. By 2010, all US states had laws that prohibited manufacturers from side-stepping independent car dealerships and selling cars directly to consumers. By 2009, most states imposed restrictions on the creation of new dealerships to compete with incumbent dealerships.
The last vehicle I purchased was certified preowned and I went through several models before landing on one - much of my decision was based on how the vehicle handled to me.
As an average car consumer, I have done many test drives and gotten nothing out of it except the car salesman looking like he did something.
I will buy a reliable car sight unseen like I bought my big screen t.v.
The other thing is that some "car people" that I know will rent a car before purchasing it because the test drive is far too superficial for them.
Something led you to buy a Sentra, though, a car that is middling in its class. Why?
"my mind was already made up based on price/features"
and
"I'm more-or-less just looking for something that gets me where I need to go safely."
I know that "car guys" can't fathom this but I've driven a LOT of car models (as I've rented a LOT) and they are (mostly) the same to me; I consider cars almost a commodity. I wouldn't even know how to compare vehicle "handling."
That claim seems disingenuous, in order to serve up a point.
You most certainly would be able to differentiate and compare.
Your point wouldn’t stand though would it?
Correct. I've also been driving for a quarter of a century.
>That claim seems disingenuous, in order to serve up a point.
>You most certainly would be able to differentiate and compare
No I wouldn't. I swear to you I'm not lying. A car is a car to me. There are different sizes and some are a bit more comfortable than others but they are mostly the same to me. I don't even know what "handling" even means, I've never had a car behave unexpectedly when turning the wheel.
In sure I would notice a difference if I was racing or something, but I'm not, I'm just going to the god damn grocery store.
Name 1 or 2 other things you buy "sight unseen" that are remotely close to the cost of a new vehicle.
>I will buy a reliable car sight unseen like I bought my big screen t.v.
If you have zero preference for the multitude of ways even similar cars can vary, you aren't an average car buyer. Most people care about these things, be it sight lines, headroom, where the chargers are, driving dynamics...
That question cannot be answered, we all know that nothing is comparable to that price in an average household's shopping list.
But a few years ago a shoe purchase was in store only but a month ago I bought a new pair online. Because I knew that I could try it and return it easily.
Luckily, I didn't have to return.
I wish I could do the same with cars.
For my car shopping, I've usually been locked into a model before I visit the dealer/private party, but if I test drive a car and it drives like some of those rentals, I'd be back to looking at other things. I also just recently test drove a lower trim / different engine/transmission configuration vehicle than I wanted, because that configuration was available to test drive and the desired one wasn't... and I was pleasantly surprised by the drivability, so I broadened my search (helps that the configuration I wanted is more expensive and less produced; it's easier to compromise towards something that I might be able to buy for less)
A few years back I was convinced I wanted a certain model Hyundai (Elantra), researched the hell out of it, figured I didn't even need to test drive as I had owned the previous model. Got to the dealership, sat in the drivers seat and found there was no headroom. I'm not that tall, but the new model was so "aerodynamic" (swept back windshield) that it felt claustrophobic. I bought another model (Sonata).
The key difference that the place is owned by the car company instead of rich middlemen that engage in regulatory capture, add markups that don't go the manufacturer and degrade the experience.
https://caredge.com/guides/how-did-car-dealerships-become-so...
It's somewhat telling that Tesla has a bad reputation for delivered quality, and they don't have a dealership network that does final QA.
Of course, dealerships also like to install unnecessary options while they're doing the other parts of dealer prep, so it's a mixed bag.
Indeed, a good dealer will spend several hours checking out the new arrivals and then detailing them to remove the transport dirt. AFAICT Tesla doesn't do this as well themselves, both my Model 3s had some fairly obvious defects that took me under a minute to spot.
This is really such a classic clueless HN comment from someone who both doesn't understand business and hasn't taken the time to understand why things are done the way that they are. (My comment doesn't mean in any way that things can't and shouldn't change and/or can't be improved. But seriously calling them in part 'stealerships'. And 'there is no reason'. Thanks for having it all figured out.
There are for the politicians who benefit from the lobbying the dealerships do!
I agree with you though, I just don't love the entire model of dealerships being that some local person just wants to run their own business and this is the easiest. So little brand or experience consistency across dealerships and so much perception that the person benefiting most from your transaction is the dealership itself. I have zero interest in putting any money in some locals pocket for a car transaction, I'd really rather it all just go directly to Toyota and have Toyota keep a more consistent experience across the country.
Hard disagree. Shitty car dealers should be a relic of the past, sure, but the business model is sound. It's basically like every other product you buy. How often are you buying from the manufacturer? Almost everything you buy from a store. That's what a dealership is.
Inventory is nice to have for all the same reasons you are happy the home store has inventory. And a built-in service department with a good parts and knowledge source is pretty important for a big expensive device which requires maintenance and that you're going to keep long enough for it to break a couple times.
The laws protecting them, I do think should be repealed. But I don't see the business model going anywhere. And I am on my second Tesla, so I see the alternative. The buying experience is easier, sure, but otherwise it's all the same shit under a different name. And some dealers can provide the same experience, frankly. In the future all of them will, or they will go out of business.