David Ruggles's Page

I've become a true believer of the premise of the "efficient market" as it pertains to the pre-owned business. BHPH and special finance is another issue. But given the way consumers use the Internet to shop for vehicles, initial pricing is critical. Gone are the days of marking a vehicle up thousands with the idea that we'll make what we can make in the final negotiation. That strategy these days will get you a virtual zero in terms of web hits. In other words, cost plus pricing for pre-owned as… Continue

I Was Wrong! But Don't Tell My Wife I Admitted It!
by David Ruggles


I predicted that Chapter 11 bankruptcy for Chrysler and GM would cause chaos and linger for years. Well, I was right about the chaos part. Little did I know what can happen when the government is the driving force behind a Section 363 sale in a Chapter 11, and how much influence the provider of Debtor in Possession financing has - especially when they also happen to be the government.

I do, however, remain dead set ag… Continue

As I watched the Senate hearings today on CSPAN my blood boiled. When asked about the money they would save by cutting their dealer count these guys, Henderson and Press, engaged in some serious obfuscation. They asserted that by swapping an "under performing" dealer for a "performing dealer" they would pick up the gross profit of the additional sales of the new "performing" dealer. These calculations of the difference between what they got and what they felt they were entitled to makes up the b… Continue

Harley Davidson had a 4 times larger market cap than GM, based on the stock price just before Chapter 11. Does anyone think that stock value is representative of a revitalized low cost GM in a 15 million SAAR, 15% market share, low fuel price market? There could be a good argument made that buying GM stock after they reemerge from BK could be the equivalent of buying a good company at an IPO price. No guarantees of the low fuel price, but I'd bet on the 15% market share and 15 million SAAR withi… Continue

EDITORIAL & OPINIONS Beat the Dealer Is the Obama administration turning Chrysler into a patronage machine? By JAMES TARANTO / WSJ

When people talk about the problems that have driven Chrysler to bankruptcy and General Motors to the brink thereof, they usually have in mind the companies' excessive commitments to those who build their cars: the high wages, lavish benefits and irrational work rules written into union contracts. A less-discussed problem is the companies' relationship with thos… Continue