Wyoming, Kyle Stock, Vanna discussed on Bloomberg Markets
Of 1% lower by five cents a barrel at $40.99. Recapping equities. Laura s and P down five down by about 1/10 of 1%. I'm Charlie Pellet. That is a Bloomberg business Flash. All right, Charlie. Thank you so much. Well, the whole world is definitely be turned upside down. We know that Post talk about you know, Industries, just life in general. We're rethinking how things have been done. We're pivoting. And that includes carbine. We've talked about this on our show before we've got a deep dive or deeper dive into how Cove it in a crowd of startups are shaking up. Carbine Bloomberg News senior writer Kyle Stock is with us on the phone from Wyoming and I want to get into your story, which is featured in the hyper drive section at Bloomberg dot com, which is kind of where we all go. To find out about the future of transportation. But tell me that Wyoming how is it there? And how is it in terms of Cove it, Kyle? It's great. My family lived in New Jersey and our thesis was we'd get out here and there would be It would be safer, but of course, as on our way out. Numbers started picking up, but it's beautiful fasted. They're turning and You know, the animal is moving around in the skiing is going to start soon so afterward for long if you have to work from home to do it in Wyoming is not too shabby, right? That was that was very good. And Kyle went to college at Colorado College. So he knows his way around the Rocky Mountains. College stories. Yeah. Stories fascinating. Here. You know, I first on this thing hit this Krone virus. A good buddy of mine. He does run some dealerships. And it just completely turned their business upside down. They were closed for a while, but now that they're starting to get back, But what's changes? People are much more comfortable shopping online for automobiles. What did you find? Yeah, That's exactly what's happening, and it's just what we've seen in other industries. It's just kind of late to the the auto industry know there's this crowd of start up there doing for Auto e commerce. What you know Wayfair did for furniture what Casper did for mattresses. There they have, you know? Strong Web platforms really good service, no haggle pricing, and then all the other stuff warranties. Financing all that stuff so Really don't have to go to a dealership anymore. The startups are mostly focused on used market. But they're really you know, the pandemic gave them a huge tail end. But it's not just that It's just the stigma of that traditional car dealers. Have had for a long time and have been slow to react to That you know there's a lot of momentum going into this new space. Well, and one of the names we talked about a lot is car. Vanna tell us about the role that they're having, certainly, and that kind of growth in their business as a result of the pen. Yes. Oh, Carbon is kind of the oldest of this crop they launched about seven years ago ineffectually the son Ernie Garcia, the son of a traditional dealership, So he's he's kind of the The young blood and he's got a new idea to do some digital destruction and they've been around the longest. They definitely have. The most volume out of this crop. And they just you know the 1st and 2nd quarter. There was a blip in the second quarter because everyone kind of hit pause. But then they just started doing Tons of business, so it looks like This year, they'll sell At least 200,000 or 3000. Cars in the U. S and Ernie see the path to two million, which would be 5% of the total US used car market. So what I found fascinating. Here is when the factory shut down here in the U. S. Okay, there's a supply plot problem there for new cars and so the demand for used cars. Went up. I wasn't thinking about that. It's just going to get a car these days. It is it is and used car values were going up the trade and well, he's going up. So you know why What kind of set me off on the story is My second kid just turned one and we're in the minivan market. Freon just we just got out of the minivan. And I was just going to say I'm so sorry. I'm so sorry. I know I'm never I love this thing. I'm never leaving college. But I was I was pretty resigned to buying a new one, and I found a few great ones at decent prices, and I just couldn't get the deal done without Dealers saying, Hey, come into the showroom are doing these tricks you hear about on it was infuriating. So I ended up on one of the nicest, actually room. Wanna khurana competitors and I bought a car in 10 minutes and we didn't go. Well, did it go? Well, It was fantastic. Yeah, they dropped it off in my driveway two weeks later. You know, I waved to the delivery man and I have seven days. If there was anything about it. I didn't like they would come get it, giving my money back. No questions and it's been incredible. We drove it out here, so stay out. And nobody pressured. You know, like at the insurance on the tyres are straight under spray like none of that, right? Yeah, none of those tricks. But what if something goes wrong, like, what's your What's your fall back on that? Yeah. So you know most of these cars they're still this was my car is three years old, So it's still under Manufacturer's warranty, but All these platforms offer. Warranties or insurance or warranties. Most of them have You know, a short seven day no questions that window and then a larger window with their will. Any problem with the car. Like 100 days. Something like that. It's kind of standard for them, so they're really on their best behavior because they can't I can't afford the bad reviews at this point. They're so young. They're still building momentum, so they're really going out of their way. To do right by the customer, and it's You know, it's really showing up and people raving about them on social media, telling your friends like that's part of the flywheel effect and More business. They get the better their union economics get. I mean, the more cars they can put through reconditioning on the platform. Move deliver Shit, etcetera. I gotta sad, Sumer. When was it a few years ago with car Vanna on we saw, like the vending machine was not funny. What? Quite a joke. And yet Here we are. It's like disruption.