I have a lot of peers and 20 groups and dealer friends of mine. They've got 50, 60, 80 service bays. They're half full. Right now. Yeah. And these are dealers that a year ago were booked out five weeks, seven weeks. 100,000 cars are recalled every day in America. What some saw as a major public safety threat, this man saw an incredible business opportunity. And the best part, it's making the streets much safer. Today, I'm speaking with Ryan Mahr, CEO of BusyCar, an automated recall management tool. We discuss how to crush the 70 million automotive recalls on the road today, his journey from infantry officer to chief executive officer, technology fatigue in the car business and much more. Don't forget to click subscribe so you never miss an episode.
What's up, everyone? This is car dealership guy. You're listening to the car dealership guy podcast, which is my effort to give you access to the most transparent insights into the car market. But before we get into the show, this episode was brought to you by private auto, the first transactional marketplace that enables a safe and secure way to buy and sell vehicles privately. Private Auto provides a self service platform that removes the middleman and uses proprietary banking technology. This allows buyers and sellers to safely complete a private party sale on their own at any time. They've thought of it all identity verification to avoid scams and e-bill of sale to simplify the paperwork, instant transfer of money between buyers and sellers and so much more. Learn more at private auto.com and use code CDG to list your car for free.
This episode is also brought to you by CDK Global. CDK Global has been empowering nearly 15,000 dealers with the tools and technology they need to build deeper relationships with customers. Their team is keenly aware of the state of dealership technology. And while many vendors promise seamless experiences between your CRM, DMS, digital retail and fixed ops, most of these bolt-on solutions tend to break workflows and cause more harm than good. That is why CDK has launched a new dealership experience platform. This new integrated software consists of everything you need to operate a dealership efficiently while delivering an unparalleled experience to your customers. Basically, everything working together, not separate, one system to run your dealership as opposed to 10. CDK developed it with an outside in approach and listening to dealers every step of the way. You can learn more about CDK's dealership experience platform by visiting CDK Global dot com slash DXP or clicking the link in the show notes below.
这一集也由 CDK Global 赞助。CDK Global 已经为近 15,000 家经销商提供了他们需要建立更深层次客户关系的工具和技术。他们的团队非常了解经销店技术的现状。尽管许多供应商承诺在您的客户关系管理系统(CRM)、经销管理系统(DMS)、数字零售和固定运营之间提供无缝体验,但大多数这些附加解决方案往往会破坏工作流程,带来更多坏处。这就是为什么 CDK 推出了新的经销店体验平台。这个新的整合软件包含了您运营经销店所需的一切,同时为客户提供无与伦比的体验。基本上,所有东西都协同工作,而不是分开,一个系统来运营您的经销店,而不是十个。CDK 采用了外部内部的方法开发,一路听取经销商的意见。您可以通过访问 CDK Global 点 com/DXP 或点击以下节目中的链接了解更多关于 CDK 的经销店体验平台。
Lastly, this episode is also brought to you by BusyCar. I'd like to thank BusyCar for coming on as a guest and also supporting this podcast. So you just mentioned that you watch the podcast prior to this. I'm out of curiosity. What's your favorite podcast or which episode did you like the most? I really liked the one with Devin daily last week from Impel. Those guys are doing some pretty cool things. But, you know, as a car dealer, I'm amazed at some of the interviews that you've been able to get the last few weeks and last few months. I love the one with Jim Farley. That was that was wild. We'd love to see you. Wait, are you talking about the live one? Yeah, Twitter spaces. Yeah. Yeah. Yeah. We're trying to get Jim actually to come on. We're trying to get him to come on because some people have actually requested him. And I think we can have a pretty good conversation. So we are working on that. I love to see you get Jose Munoz. He, you know, on the Hyundai side, he's, uh, I've known him a little bit for the last few years, uh, you know, from afar as a, uh, you know, because of his relationship of running these, these car manufacturers. But yeah, you've, you've got some pretty cool guests. Uh, I really liked the one with Devin, you know, seeing where AI is, is, uh, is going and some of the cool stuff in that space. It's nice to see it enter into the automotive industry.
Yeah. A couple of things there. So Devin daily, I mean, just fascinating entrepreneur. I remember his company when they were just doing, you know, spin car software, like just imaging software for dealers, right? We use them for years ago and his growth and impulse growth has just been astonishing. Uh, how they've, you know, really gone in different directions and, you know, new products and services and whatnot. So that was for me, like a shocker. I was like, wow, you have come a long way. Um, needless to say, I mean, they rebranded at our whole different company.
And then you mentioned Jose. So I mean, I, you know, there's some emails being exchanged right now. I'll keep it at that. Uh, but if, if someone from, you know, team Hyundai is listening to this and they want to put it a little word, we, we welcome it because we want to, we want to get them on sooner rather than later. Uh, next couple of months are going to be great though. There's some incredible people coming on. Um, and what I always like to emphasize is that it's not just, you know, the big of the big, the big executives, the big entrepreneurs, the billionaires.
It's not just that. There's also, you know, some mom and pop dealers that are bootstrapped have, you know, started from, from nothing and are putting together a really great little operation, sharing their insight from the ground floor. And I think pride in that, because I just think that that is, you know, it's easy to get the kind of drowned out as, you know, the platform scales. I mean, today, you know, we have tens of thousands of monthly listeners and obviously, you know, you want to get like the shiny, like the, the, you know, the big, you know, the big executive, someone, you know, that's done something really crazy and big, but I think it's just as important to bring, you know, the person that is going through, you know, something maybe on a much smaller scale, but that's also very relatable.
And so I think that's the cool part about this platform, because I can do that. And people really appreciate kind of all sides of the platform. So. Well, it's like your story. You come from the small mom and pop. So it's nice to see you get a big microphone now. Yeah. I mean, it's probably, you know, it's probably a little bit of my dad beating into my head, kind of, you know, growing up as a kid, just, you know, kind of stay with your boots on the ground and stay grounded. So it's probably that subconsciously impacting it. But I want to get into that. And I think there's a lot to discuss today with you over here.
Love your background and, you know, you've been through some interesting things. So we'll get into it. Start us off about just your growing up in the dealership business, right? For, for those that don't know, you grew up, your family owns prominent dealer group at St. Louis. You know, you grew up in that environment. Tell us a little bit about that. What was that like? Yeah. So we're a third generation auto group, depending on how you, who you ask in the family, fifth, fifth generation family business. You know, we're involved in a company like most card dealers.
We're involved in a couple of different other industries, out of home media, or, you know, we do multi-family housing. And but those are, those are tough to do when you're 12 years old and when you're a little kid and you want to spend Saturdays with your dad, you, you come out to the car dealership and we would, my brother and I, we, we crawl around that. We have, you know, we were, we were a little bit mischievous as kids and it was always kind of a game. You know, we, we jump in the new cars in the showroom on a Saturday and hopefully not set off one of the car alarms, which would like invariably happen between my brother and I got a younger brother who now is our, is our platform president and general manager. Phenomenal, phenomenal operator.
But I'm not just saying this because he's my brother, but I mean, the best car guy I've ever met, just super capable. You know, spend a lot of time at Sewell and, and AutoNation before he came back and worked with the family.
But yeah, I grew up washing cars. My dad wanted to make sure we didn't fall into the proverbial SOD, you know, son of dealer type type scenario where, you know, a lot of these general managers and owners, they don't, they don't grow up in the business. You know, they come in, they're looking for a free job.
And when they graduate college and my dad made sure that wasn't the case for us. So we started off three, 15 an hour washing cars. I was about 12 years old. It was a ton of fun. St. Louis in the summer is hot and it's miserable. It, and a lot of humidity. You really appreciate what it takes to, to get a car front line ready and, you know, what the technicians do in the back to to get cars repaired.
And I fell in love with it. Car industry's got so many cool aspects to it. You know, you've got really four businesses in one and you don't see that. I think when you're, when you're a kid, and as you get older and you realize, you know, all of the cool aspects of the, of the car business and ways to make money.
And, and also ways to impact the customer. It's amazing. Like there, I can't think of another industry that's like this. Went to school in New England, did that for a couple of years, graduated and then 9 11 and happened and found myself going off into the military, which I think is pretty unique from from the Cartier-Luschapore.
Like, yeah, tell us more about that. I mean, you're, you're involved in a family business at this point, right? Your, your family has this, you know, big dealer group and, you know, suddenly you want to go to the military. Why? Right. What happened? Was it simply, you know, the terrorist acts of 9 11 or what happened? What went off in your brain?
Yeah. So, uh, I'm 38. So when I was on 9 11, I was a sophomore in high school. I mean, pretty impactful, horrible thing that happened during, you know, my 400 of years and it, it really changed my outlook on a lot of things.
I, I think, you know, we had 15 rooftop, 16 rooftops when I was, when I was a kid between my dad and my uncle, a mix of, you know, luxury brand, super luxury, like Aston Martin and JAG, the mainline brands like, you know, Nissan Hyundai V Dub.
Actually funny enough, my, my grandfather, who served in World War II, was, you know, got back after, after the war and got into business with another great St. Louisan. And between the two of them, they were, you know, responsible for the Volkswagen, his tribute ship for the, for the Midwest and really great way for my grandfather to get started.
And, and that led to him, you know, purchasing his first, you know, cardio ship and eventually really growing it. And my uncle and my dad are, they were great operators. You know, my dad's still involved, my uncle not involved in car business anymore.
But, you know, it was a, it was a great place for them to, to kind of learn in the late 70s and early 80s. But I always remembered, you know, I, I go over to my grandparents house when I was a kid and I'd see these, these photos of, you know, my grandfather, he was an engineer.
He worked on the, the turrets on the B 29 bombers. He took a policy me, University of Texas to do that. I mean, that's what she did back then. And he, I would see those photos and I'd hear the stories and I never really contemplated myself joining the military.
I thought I, you know, join the car business, right? And I still remember having that conversation with my parents being like, hey, I think I'm going to, I'm going to join the military and I'm just kind of being like, what are you talking about?
And, you know, Iraq was raging and, you know, Afghanistan was still going on. And so yeah, I, I felt the calling. I just, I think that there is a, you know, we live in a great country and I just think there's a, this sense of duty or service that's maybe missing from, from our generation.
I felt very strongly that I needed to go do something. So I, you know, I went to Oxford candidate school, which is, which is brutal, not fun. I joined the Marine Corps and also in the Marine Corps.
And that was absolutely the best decision I could have ever made as a, as a, you know, 22 year old kid. Why do you say it was the best decision?
那绝对是我作为一个22岁小孩能做出的最好的决定。为什么你说这是最好的决定呢?
Yeah. So I didn't know a whole lot about the military. You know, I was, I was interning. I'd heard some stories, you know, my uncle, I had, you know, one of the car businesses was a Huey pilot in Vietnam, but he never talked about it.
My grandfather, a little bit of service in World War II, but, you know, not frontline. I mean, he was, he was working for the Army Air Corps at the time. He has an engineer. And so I didn't really have the, I mean, other than, you know, watching movies as a kid, Chuck Norris or under siege or some of these, some of these other things.
I, I didn't know a lot about it. And it was a rude awakening. I mean, total, you know, the Marine Corps is completely based on meritocracy. They do not care that, you know, your dad's got a car dealership in the middle. That means nothing. And, you know, your, your reputation is everything. And there's just so many core values that, that get in, you know, instilled in you. And, you know, I, I think the Marine Corps is the best service out of all of them, definitely the hardest. And that was a, a really tough awakening. A lot of like early lessons learned of what right and wrong looks like. I'll give you a, I'll give you a short story here. Um, so I remember, you know, going, uh, your second lieutenant, so I'd, I'd been in the Marine Corps about a year. I was an infantry officer. So I had a platoon, 44 guys.
And, um, I just remember being like, okay, I know what I'm doing. I've been trained. I've been, you know, they put you through a lot of training, very rigorous environment. The one thing that I didn't want to do was, was make a mistake or screw up. And, you know, you're pretty 22. You got some swagger, you know, it's a tough environment. You physically fit your, your, your tactically competent. And man, I got lost on a, on a patrol one dime. And it was absolutely the most humbling experience ever. Cause you're every, it happens to every second lieutenant. You, you invariably, you do something stupid, right?
You, you read the wrong direction on your map or your compass or whatever. And you just, you totally punt. I mean, you really, you screw up in front of a lot of guys that are, are counting on you. Cause if you make a mistake, you know, the, the, the consequences are severe. You know, you're, this isn't like, oh, you had a bad Saturday in the car business. This is, you know, people's lives are at stake. I got lost. And I, I just remember, you know, my platoon sergeant who great guy, uh, Staff Sergeant Joe Medina.
And, um, you know, it's kind of like the right hand man of the, of the, uh, platoon commander. And he kind of sits me down and I think he's going to give me this, you know, whisper sweet nothings in my ear and tell me it's going to be okay. And he's like, you know, very direct. You screw this up again. You're going to get somebody killed. So I'm not going to let that happen. And I just kind of remember like, Oh my God, like, this is, this is super serious. And it just makes you, you know, at a young age, you realize you better know what you're doing. And I've carried that with me. I mean, I think about that story almost every day. Um, you know, after I served in Afghanistan and you just, you, you need to, you got to know what's going on. And so now I apply these lessons to everything I do in my life. And it's just a, it's a very different, you know, very different, uh, background than I think most people in the, in the auto industry. And tell me what, what was it like when you were finally coming back from deployment, right?
And you're getting back to, you know, quote unquote normal life. Right. What was that transition like for you? Right. And, and because I want to, I want you to take us all the way through today, right? And launching busy car, what you're currently doing. So just tell us a little bit about that transition back. So I, uh, I commissioned in 2007, I got out on 2012. So, you know, we did, uh, I did a tour in Afghanistan. I did a tour off the Horn of North Africa. Um, we did humanitarian assistance on Haiti after the 2010 earthquake. So I got to kind of see a lot of different aspects of what you can do in the Marine Corps.
It's not always, you know, combat experiences. There's a lot of other stuff that we did. I was wondering, do I want to make the a career out of the Marine Corps? I, I felt, you know, my family wanted me home. Obviously it was always an option to come back and, and work in the family business. Um, but I didn't feel like I had to do it. So I just remember I was talking to, uh, talking to my dad on a, on a satellite phone and, uh, he's like, so, you know, what do you want to do, son? Uh, this is, you know, like 2011 in Afghanistan.
And I said, you know, I, I think I'd like to come back and explore, you know, what a, what a career would be like in the, in the auto industry. So I, okay, well, you don't know anything about it. So what are you going to do? So, you know, I, I'd grown up washing cars. I, I didn't, I didn't know anything about the car business. Not for real, you know, and I had, I had some great leadership lessons from the Marine Corps, how to take care of people. Um, you know, and it's, it's really, there's a great quote. Um, I don't know if it is an hour or patent or somebody, but, uh, amateur's talk tactics professionals talk logistics.
And, um, you know, that's kind of like saying this, how important the support function is. So in the car business, we're super front end focus. We're very focused on selling cars, but there's so many other people in this, in this industry that are critical to its success, namely on the, on the service side, the technicians, the, uh, the people that make the car safe. And so I, I told my dad, I said, Hey, I think I want to focus on that. I think I want to focus on, um, you know, the technician side, the service side. So great. Why don't you, you know, take a year, get your MBA, learn, you know, take a little, you know, combat's tough. You kind of come back from that and having a little bit of transition time is helpful. You know, I was going to get married and a couple other things, just, you know, life milestones. And it was, um, it was good. I'm really glad we did that. So I ended up doing a, an MBA program and, you know, did a little, uh, you know, got to intern and do some other stuff. And then eventually made my, my way back, uh, to the, to the car business.
This episode has brought you by my very own car dealership guy, industry job board. I hear it every day, CDG, why aren't you charging money for this? My answer, because I can see the jobs.com, my industry job board connecting the best talent and automotive with the best companies will remain absolutely free for CDG listeners to post and fill available roles at their companies. This free job board is for anyone in automotive vendors, dealers, lenders, manufacturers, auto tech, everyone already over a hundred companies have posted open positions, including lithium motors, recurrent credit acceptance, Vero's credit, cars, commerce, shift digital, plug, full path, Westlake trade pending, you get the point. The best part is that when these companies hire through CDG jobs.com, they are hiring the most informed candidates in the marketplace. So don't hesitate. You can add your open roles today by visiting CDG jobs.com or clicking the link in the show notes below that CDG jobs.com. So tell me, and tell me how you got into, you know, tech entrepreneurship.
Right. I mean, it feels like you had no exposure to that. I mean, you had clearly exposure to entrepreneurship, but where did tech come into play? And you know, your current company, busy car, which I want to get into, what, what you currently do, the problem you're solving. By the way, love your, love your marketing. Really curious to know who's the marketing, marketing brains behind all that. But, but I suspect you have some good involvement there. But anyway, so like what brought you into tech entrepreneurship? Why did you launch busy car?
Yeah. So one of the lessons learned in the Marine Corps is, you know, it's not all, it's not all, you know, going out and, and, you know, patrolling through, you know, the mud flats of Afghanistan, right? 90% of your job is an officer. Believe it or not, is, is solving fairly bureaucratic problems. So how do I feed my Marines? How do I, how do I get them promoted? And, you know, they got problems back home. How do I, how do I help them with their family? So you're spending a lot of time really as a leader solving, solving problems. And you're in a giant believer in that bureaucracy. You got there's 200,000 Marines. And then there's just like millions of people that are, that are in the department of defense. So I found myself, you know, kind of taking this, this, like infantry officer mindset to like solve problems. And I would solve one problem and solve another problem. And it's just, it's about, you know, breaking through barriers and, and solving problems on a daily basis.
And so when I, I got back from the Marine Corps and, you know, fast forward a couple of years, my brother and I were sitting in a, in a conference room on Saturday. And we got this email from a car manufacturer. I think I'll leave it nameless on who it was. We got this email saying, Hey, you've got 42 customers that are in your primary market area. Every car dealer has like a defined area throughout the US. And they said you have these 42 recalls. You got to go, you got to go fix them. And it was just, it was just a tough email to get on Saturday. You know, my brother and I just bought lunch for everybody. We're sitting in one of our conference rooms and he's like, yeah, it's a huge pain point. You know, my brother, it's like Mr. Cardiola, you know, you know, he fits the mold to a team. He's got the, you know, the shoes and the fancy watch. And, you know, he's a phenomenal salesman, great leader, great GM. And I'd be like, Hey, if you want to do this on your, you know, on your off time, knock yourself out, recall sucks, right? Like it's just a, it's something that you have to do as a dealer.
This is like four years ago now. So we got the email and it was just a list of the numbers that, that had, you know, customers had a recall. We had no way of contacting them. We had no way of reaching out to them, no name, nothing. And just on a whim, totally, like totally random. I went to auto trader and I said, okay, can you find me? I don't know. I'll make it up used Nissan's and, you know, in my backyard. So you set the little radius to 10 miles or 25 miles. And, and that, believe it or not, that's, that's how busy car was born is identifying vehicles that, that had recalls, you know, throughout our, throughout our, our backyard, so to speak. And 60 days later, COVID hit. So it was just this massive, like once in a generation thing that happened. And here we are trying to, you know, we were just messing around with this, like recall thing and everybody, everybody was shutting down.
You know, dealers were looking at laying off technicians. We were, you know, we were, we weren't selling any cars. I mean, no, we were locked down. I mean, it was really bad. And I was like, there's no way we can let these technicians go finding technicians in the car business is like the, I mean, it's like chasing unicorns. They are really hard to, to find. And I said, there's just no way we can, we can do this. And we were in a really fortunate position. You know, my, my dad made sure, I mean, we had a, we have a, as a family, as a, as a cardiovascular group, we had a, you know, strong balance sheet. We were able to kind of weather the storm, but we didn't know how long this thing was going to last. And so we started going to use car lots and finding vehicles with recalls and repairing them. And it worked, man. It's just like, I'd like to say that I had like a crystal ball and this was all part of some grand fan fantasy. It was, to be honest with you, it was luck and timing and solve one problem.
Okay. Solve another. I mean, my dad's like, there's no way this used car dealers going to let you take one of their cars. So I just picked a phone and called. I mean, so many entrepreneurs are, are just afraid to pick up the phone. You know, they, people have ideas for businesses. They have, they have ideas to do it. You got to, you got to have that personality where you just are like, all right, well, I'm going to, I'm going to try it. Pick up the phone, call the dealer. I was nervous, right? Like maybe he's going to say no. So what? All right. So that's known to me. I get told no all the time. We started making money in our first month. We made $40,000. And just to be clear, this was from recall work that you just went out, found and you brought that business to get it done. Totally.
Yeah. Use finding, finding cars with recalls on, on other dealers. Lots. So we, we called it, you know, business to business B2B recalls. The true, the true definition of dialing for dollars, dialing for dollars. That, that was it, man. Like it was, it was like, oh my God, we found a, and you know, you check the then and there'd be like maybe five recalls on this or six recalls on this. So, I mean, there's some, some arrows that we use some repair orders. We wrote up that were like two, three thousand bucks. And the nice part was, you know, these cars are, are, are on safe, right? The, the vehicle was recalled because there's a problem that had to be fixed.
And I had no intention at the time of turning this into a, into a company. But, you know, a couple of months later and, you know, we were, you know, in the middle of COVID and, you know, we're an essential business, right? Getting cars repaired. So, um, things started, you know, when I mean this like very gently, but, you know, things started to kind of come back. And, um, it's like, what are we, what are we going to do about this recall thing that we, we come up with?
And I did a little research. You know, um, we started, you know, breaking down some barriers. And, uh, as it turns out, the, the number of vehicles on the road today that I have a recall is shocking. It, it really blew my mind. Or what was that at the time? Yeah. So at the time it was 59 million vehicles on the road with an open recall. Uh, today it's close to 70 million. So it's going off one and four. Yeah. And you got, you got your work, you got your workout out for you, Ryan. We, uh, we're busy. We say we're busy and busy car.
Um, I couldn't believe it, man. Like the numbers are huge. Uh, one in four cars on the road and depending on the manufacturer, it can be higher than that last year in the United States. We recalled over 30 million vehicles to about a hundred thousand vehicles a day. And that's a shocking number. So tell me, tell me, just give us some insight into the state of recalls, right? Are we seeing recalls overall rising? Are they staying, you know, kind of stable or, you know, declining? Like what is happening with recalls and why? Right. What is driving these movements?
A couple of things. One is, uh, we're getting better at it diagnosing and testing faster on recalls. So, um, you know, it's kind of like the correlation causation issue. So, uh, if you test more, you're going to get more positive results. So we're better. That's part of it. But really the, the bigger issue is these cars are just way more complicated. And a lot of my technicians and my stores, you know, they, they love turning rinses, they love kind of, you know, touching the parts and the pieces of engines and brakes and tires. But there's a ton of electrical work on these vehicles, EVs, especially.
Yeah. I mean, they're, they're basically, you got to be, you got to be a software engineer nowadays. That's, I mean, that's, you know, there's a lot of dealers I talked to that they basically call some of their master texts engineers. Um, and that's, that's really what they've had to become. And I, I do wish, you know, just, you know, broadly speaking to our industry, I wish we would, you know, spend more time about how we craft the message around our technicians. They are engineers. If they were in another industry like HVAC or something, we would call them an engineer.
So I think that's part of the, the reason why we, we have a tech shortage is just the way we treat our people. It's the, we could do better. But, um, recalls are, are getting worse, not better, depending on how you want to look at it. There's just more cars on the road. Part of it's we're getting better quality control, but, uh, you know, a lot of reasons, the cars are just more complicated. And, you know, people want to drive safe cars. I don't blame them.
I want to drive, I want my wife and my, you know, with my kids to be in the safest car possible. So, you know, cars today, uh, you know, getting recall rates are really high. Um, and as we, you know, the, the SARC count starts to, you know, the total number of cars sold every year starts going back to normalizing. I think you're going to see the recalls go up as well. But tell me a little bit more about the incentives here, right? Because 10 years ago, right, could you have done this profitably or would the, you know, the vehicle manufacturer undercut you on what they're paying you, which would leave you with no incentive to go find these cars on the road.
Right. Basically, my question to you is has what else has changed on the way vehicle manufacturers are paying dealers? Cause that's obviously the incentive, right? They're paying you to perform this work. So what is that like today? And are there manufacturers where you have more of an incentive to go find their recalls because you know, you might get paid more or a premium. Yeah. So, and I know, you know, you have, you have a huge audience. So maybe, maybe recalls one on one, right? So, um, car manufacturers are required by federal law. Um, to send out a recall notice when they identify an issue that could be unsafe to their, uh, customer.
Um, it's totally free. It is a hundred percent free for the consumer. So if you get a recall notice in the mail, um, from your car manufacturer, it is a hundred percent free to get that repaired. And it's actually free for the dealer as well. The dealer is getting paid from the car manufacturer to get that repair. That's how this works. Now, on the dealer side, it's, it's good margin. You know, it's about 70% gross margin, which, which sounds like a lot and it is. Um, but it's still not as good as, is kind of main, main shop work, you know, other, other service type work. So recalls one on one, a recall gets announced. You hear about the big ones, you know, on, on the six o'clock news, a million vehicles from, you know, some Detroit manufacturer, a million vehicles from a Japanese manufacturer.
Um, but really it's a hundred thousand a day. And the incentive side of this, you know, back in the day, 10 years ago, the only, the only way that we could solve this problem is we would send a letter to the customer and we would alert them to the fact that they had a recall. That was it. The, and in fact, until a busy car was, was founded, that was the, the primary methodology for getting your, your vehicle repaired. And the only place where you can get a recall repaired, um, and have it be free is that a franchise car dealership. There's a lot of reasons for that. Some of these recalls are very complicated and you need to go to a franchise dealer who has kind of the, the technical expertise to, to do that properly and keep it to manufacturer spec.
但实际上,每天是十万辆。而且激励方面,你知道,十年前,我们解决这个问题的唯一方法是给客户寄一封信,告诉他们有召回。那就是了。实际上,直到 busy car 成立之前,那是你得到车辆维修的主要方法。而唯一可以免费修复召回的地方是特许经销商。这有很多原因。一些召回非常复杂,你需要去特许经销商那里,他们具有专业的技术知识,可以正确地进行维修,并保持到生产商的规格。
So that's how we were doing it. Uh, in our, in my own stores and, and there's some other companies out there. They're really marketing companies, um, you know, service retention or whatever they would, they would use, you know, some of these direct mail lists to get, you know, to, to alert customers, but they didn't see the kind of like the deep value of, of what you could do with this. And then tell me, explain to me how dealers are handling recalls today then. Right. Clearly now we, there's what you do. Busy car. You've commercialized this, right? You had this insight work to commercialize it. But overall, I mean, dealers that are, you know, are not familiar with what you're doing and busy car and just the general, you know, this opportunity. How are they handling this today?
It's a mass man. Like it's just this perfect store, a storm of like, uh, you have, uh, you know, fragmented data. There's like 18 different ways you have to look up the information. Um, you know, did the customer buy a car from me? Do I have the right contact information? Then you have to go into the car manufacturer portal. And then, you know, it's not like these car manufacturers just have a plethora of parts sitting around. So the parts are restricted. It, it's super complicated. And, you know, this goes back to, you know, Marine Corps for me, solve one problem and solve another problem and then simplify it, just make it easy. One step at a time. Totally. And, you know, you eat the elephant one by the time and you've just got to find a way to make this easier.
And one of the things I kind of pride myself on, uh, in, in my stores is, you know, making the complicated or simple, right? Cause that's what you do in the Marine Corps. We have to take extremely complex, you know, like machine gunnery or mortar employment, like that is some complicated stuff. I mean, you're basically doing like trigonometry under fire and you have to get it right. So what are we doing in the Marine Corps? We distill it down to two GM second graders mindset, right? Like we get it. And I hope, I mean that endearingly, like we, you know, I'm a college graduate.
And if I was, you know, cold, wet, tired and getting shot at, um, I, I, I, I, I need to keep things simple so that I can react accordingly. So we, we kind of have that culture at busy car. We have taken this super complicated, fragmented, disjointed process. And we've kind of stitched it all together to this elegant, simple, easy to use tool. And I, I told my brother, I said this when, when we asked like, Hey, when I, I do this, this has to be a product that nobody logs into. This has to be, you know, we have like 39 vendors that we work with. So it's a lot, it's a lot to manage, it's a lot to log into. I don't, I don't need another vendor.
What I need is a tool that is going to simplify my life. And so my brother Kevin and I, and he's like, okay. All right. He's like, I would buy that. He goes, you just need to get the car to show up. Right. Like that's in his top. He's tough on vendors. I went, man, I want to meet your brother. This is, this is good. I'm starting, I'm starting to, you know, he's, he's pretty awesome. You know, Kevin's magnetic. He's like, uh, he's a great poker player. He's just, he's like the ultimate. What was the last time you beat him up? Oh man.
Uh, okay. You, I'll let him know. That's, that's the real question that we want to know. Yeah. Uh, you know, I don't, I don't think I've ever lost a, a golf outing, uh, to him. So we'll, uh, we'll get him on at some point, but, uh, yeah, he, uh, he's a pretty dynamic guy. He's a, he's a great brother. But, um, he was right, man. I mean, he, he hit the nail on the head and Kevin's, you know, he's on national dealer council. You know, he's, he's on a bunch of stuff for our finance companies. I mean, he really knows what he's doing and his, his answer to me was, Hey, Ryan, you want to build something, get the cars to show up and I don't want to lift a finger.
It's like, okay. So that's our bar. That's every time that we add a feature or we explore making a tweak. We have to make sure that it's, it's going to work that way. And. I mean, God bless that we did it that way because 97% of our customers never logged into our platform. It just runs in the background. I think, I think that's incredible. And. You know, the, the beauty of being a practitioner, right? And ever a dealer and having built this is that you see, I mean, you get to use it firsthand. And like you said, you know exactly what your pain points are. Right. You can solve it. You're from within the industry and it just makes things so much more practical.
Like you said, you don't want to log into the tool. Like when I hear that, my, you know, kind of entrepreneurial, like tech brain right away says that is not the incentive that you should have as, you know, a founder, an entrepreneur. If you're strictly looking at how do I maximize, you know, time on, you know, tool or whatever. Right. But if you're putting the customer first, right, you're putting the end user first, then you're absolutely doing the right thing, right? No one wants to log into another platform. I've talked about SaaS fatigue. And if you look at, you know, all the big players in their industry, there's a lot of integration and consolidation. I mean, people are trying to simplify, right? Like you said, things have gotten, there's lots of different tech and, and don't get it twisted. Like, you know, dealers that adopt tech that use tech are going to be ahead of the curve. There's just no doubt about it.
Increasingly, I had the curve. I think that's, you know, that should not be controversial. But like you said, right? It's keeping it, keeping it simple. Yeah. So there's, there's so much technology that's coming out. And I really do think, you know, in the car industry from a technology standpoint, you know, five to 10 years behind, you know, some of the other leading stuff out there. I mean, even look at some of our, some of the AI solutions, like, you have these vendors that are trying to build AI. And like, you're going to compete with Microsoft. You're going to compete with Amazon. It's just, you know, it's tough.
And, you know, I think what, what we see in the industry, from my perspective is, build a solution that's auto-magical, right? Build a solution that's on that word. Yeah. You like that? It fits auto-magical. It seems to kind of, kind of play out. We just, I just want tools that are kind of, you know, Marine Corps again, fire and forget, like push the button and, you know, boom, it does what it's supposed to do. That's important.
And I think if, as we look at evaluating vendors into the future, like what are we, what are we going to use inside of my stores? And then like, you know, we have some really big customers, the Publix, you know, the Lithias of the world, the Asberries, you know, some really large groups on here. They don't, they don't have time to manage this stuff. And if you're fighting, you know, other vendors to, to make this stuff work, you know, for, if you're, you're fighting for like, Mindshare, it's tough.
I mean, you either have to have a product that is so good, you know, or that you have to have like a V auto or, or, or DMS, something that you like have to have on a daily basis to, to run your, your product or to work inside your stores. But yeah, for us, people can sleep at night. The general manager can sleep at night because he's not lying at him, you know, every month, right? Let's cut expenses, cut expenses.
Okay. Well, you, the general manager knows I have a tool that's going to reach out to customers. It's going to use AI to schedule. So my team doesn't have to train or do anything. And then the car is just going to show up. And there's so many pieces about this, you know, the way the product works that's so elegant.
My, I think my favorite piece is that recalls are, are, you know, the outreach, we're exempt, right? We're exempt from TCPA. So for dealers that are, you know, members of your audience that are on the dealer side, a car manufacturer side, this is a way to talk to customers that haven't been to your store in years. So recalls the safety component super, super important to me. But, you know, that's the mission, but the value prop is loyalty and retention. And that's the thing that we're bringing beyond. And everybody knows this.
Look at what the car manufacturer, you buy a new car. If you got there and buy a Volvo, you go out there and buy a Ford, you're getting three years of maintenance. And it's not because the car manufacturers, you know, want to give you free oil changes. What they want to do is build. Come back, baby. 100%. Like get that, you know, you got to exercise that muscle. And if you're coming back to the store twice a year for three years, you're building a relationship, you're getting to know the people, you know the process. And then what are you doing?
You're kicking some tires, you're looking at the brand, you're looking at the new stuff that's coming out. And you're going to, you know, there's a direct correlation between service retention and what happens on brand loyalty and buying that car. We've actually invented something out of this called REI, the Recall Efficiency Index. That's our, you know, trademark tool. And there's a direct correlation on REI and, you know, dealers that are good at increasing their REI and what their service loyalty and retention is and NCSI. So we've been able to, you know, really get this out in front of dealers.
And we ask them all the time, like, do you know what your REI is? They're like, what is that? You know, they've never heard about it before. You know, if you asked Dale Pollack 15 years ago, when he would go into dealers and he'd say, hey, what's your inventory turn? Dealers would be like, what's an inventory turn? Now it's like synonymous, right? Like with the industry. So the analogy is if V-Auto is a, you know, I love distilling things down to like five-word answers. So V-Auto is an inventory turn product, right? Busy cars, automated recall management.
And what we're going to do is we're going to increase your REI score. So we take a look at all of your recalls in your backyard and we have, you know, the best data in the world. We are the only vendor in the space that is directly integrated with the car manufacturer. So we have real-time recall updates, you know, real-time recall updates from the OEMs. And then what we're doing is- I got to say, man, I, oh, no, I don't have any cash out, but I love your clarity.
I love your clarity of thought, right? Like the distilling down, you know, I was looking the other day, how many times I've tweeted, right? Like posted on Twitter and LinkedIn and all that. And the last, you know, year and a half, two years, 18,000 times. And I was, I was having a chat with my team about it. And I said, you know, 18,000, 18 or like 17,800, whatever. Wow. I was telling them, yeah, I mean, I was telling them, you know, if, if not for anything else, I mean, the one thing I've, this entire experience, you know, the one thing that I've really kind of gone from it is just, you know, being forced to distill your thoughts down and simplicity. Keep things simple, right? Use simple words.
You know, there's a, there's a website that I like now and I started using called Hemingway App, where you literally put in a sentence or something and it tells you what grade or what, you know, what grade it's, it's being written in, right? Like third grade, fifth grade, like what grade level comprehension. So, you know, just keeping things simple. It goes such a long way in everything in business and life. But anyways, so that's a sidebar. So Hemingway App, you'll love that if you have a museum. I love that. And I love Blinkist. I don't know if you're a Blinkist guy, but, you know, distilling down complex books to, you know, 10 chapters. Yeah, getting the, getting the simplified focused efforts in the car industry are long overdue. Get to the crux of it.
So, you know, while we were talking about service retention, I know, so I look through your tagline. I look a little bit through again, your brand. And I love how you, for you, you're not recall management. You're making the streets safer. And I love that, right? Because that is fundamentally like, that is the why behind it. And I think, again, a lot of brands lack that, right? You are making the streets safer by getting these recalled vehicles off the streets and fixing them. And then I thought about present day. I thought about today, I thought about the industry and kind of the trends right now in the auto business. And another thing went through my mind, which is that, you know, right now, you know, dealers are seeing new car margin compression at faster pace than they've seen in the last, you know, in years. Used cars are still, you know, incredibly challenging to source during short supply, right? We have this leasing, leasing cliff of, we didn't lease in the vehicles over the last couple of years. And we're hitting that cliff now, where there's just fewer lease returns, which again, that also kind of, that hurts the use car market and inventory availability. But where you came to mind, I said, wow, I said, you've sort of, you launched as this recall, you know, recall automation software where you're making the streets safer.
And today, I would make the case that you are, you know, fixing margin compression, potentially. I mean, you know, think about it, right? Exactly what you did in 2020, when you went out to get cars off the streets, when you needed to fill your service department. Well, guess what? Today, service has become so, so important, even more than has been services always been important. But it's especially important when new car sales are going for a moment, when there aren't enough use cars in the street. And so here you are, and you're providing the opportunity for dealers to hedge against margin compression by proactively finding and sourcing vehicles that have recalls on the street and bringing them into the department. Am I thinking about this the right way? Is this how you guys are thinking about it now? As a super big, you know, super important value proposition to the dealership community?
Yeah, so I look at interest rates. I mean, I look, you know, our family owns a bunch of car dealerships January was soft, you know, we're seeing the things are starting to come back to where they were a few years ago. Margin compression is very real. And I mean, you know, depending on what statistic you want to pull, but I mean, can we agree? 55, 56% of a dealership's gross profit comes from service roughly. So, you know, we're very, you know, focused on when sales slow a little bit, or margin gets compressed. We're really focusing on our fixed side. And how do you get the right customers back in? And there was a there was this huge, like, glut of service work that needed to get done the last 18 months, because nobody was buying cars. And, and, you know, there was this, you know, cars need to get serviced. That's, that's like, you know, worth through that.
So I have a lot of, you know, peers and 20 groups and, you know, dealer friends of mine, they've got 50, 60, 80 service pays. They're half full. And right now, yeah. And these are dealers that a year ago, were booked out five weeks, seven weeks. They couldn't get enough customers through put. And when you say they're half full, is that due to a lack of just demand or consumer demand or to condition shortage or both? Yeah. I feel like the technicians shortage is we always chalk a lot of problems, you know, up to, you know, I think you and I could agree to this.
So if you had a sales manager, you know, so if you owned a store, you know, my stores, if a sales manager came up to you and said, Hey, we don't have enough people to sell cars. You mean, that'd be a pretty quick conversation with that sales manager, right? You'd say, right, you're better off. You don't work here anymore. But when we say, Hey, we don't have enough technicians, we, we just kind of let it happen. And if you know, I hope this isn't hubris, but like, we don't have a technician issue. And in our source, because we focus on it and we pay people, you know, the right way people are incentivized every single salesperson. You know, that is, that is on the variable side, is incentive base comp.
I mean, that's literally why you sell cars, right? Because you work your pay plan. Like the fact that we don't have, you know, pay plans are incentive structures for advisors, technicians, service managers, and like career track and career progression, that's tough. And so, you know, you talk about where the industry is going, why are these bays short? Well, some of it is, am I focusing on that as a general manager, my focus on focusing on the technicians, am I focusing on the people? You know, one of them, my favorite sayings from the Marine Corps is mission first Marines always.
I love that, right? Like, if we apply that to the car industry, I need to sell cars, but I also have to take care of my people. And these two things are, or they're not like opposing forces. In fact, they're just two different things that we have to pay attention to. So if we're short work in a lot of our stores, how do you, like, where are the customers going? Where they're going to the third parties, right? They're going to Jiffy Lube and Balvoline and some of these convenience-based places. And they're going there because it's not more cost-efficient.
Getting an oil change at, you know, national average for quick loop, 20% higher than a franchise dealer, 20%. So they go there because it's convenient, sufficient, simple, and, you know, we're losing these customers in the franchise dealer world, and it's tough to get them back. Recalls is a way to get them back, right? You can hook the customer back, kind of get that, create that boomerang, if you will. But we've got to make sure that we're giving consumers other tools. So we're very, you know, at BusyCar, and in my stores, we're really looking at things like mobile service, like how is that part of the equation?
How is service delivery and pickup part of the equation? Like, you know, if somebody offered you the ability to repair your vehicle in your driveway versus driving, you know, 15 minutes, the car dealership and waiting here for two hours, what are you going to say? You're going to sit in your driveway, right? Like, you're going to make it easy at home. So, and I think there's a lot of technicians that would love that job, you know, they don't want to work in a shop. Really interesting because I've actually taken the opposite stance.
I've thought that it's, you know, tech just wants to be a tech. They don't want to be driving around, providing customer service. Yeah, I think it depends on the tech. And where I'm seeing this is, you know, our family owns a bunch of HVAC companies, you know, the Cardiologists, right? We're involved in a bunch of different stuff. And the right play here is those HVAC technicians absolutely know how to diagnose a problem, do a menu presentation, right? They got to explain it to me in my home.
And, you know, in some instances, you know, provide additional value. So, hey, we came out here to do some seasonal work, but you need a filter change. Well, what's that sound like in the car industry? I came out here doing an oil change. How about a set of wiper blades or whatever? So, while I'm with you that the average car technician does not want to be driving around or, or, you know, doing, you know, customer menu presentations, there's an opportunity, I think, for either recruiting new people into this industry, which I think has an immediate impact on the technician shortage.
And I also think there's an opportunity to create new value. And I'm kind of worried, man, like what's going to happen in five or 10 years when EVs are all the rage? Like, there's no 3495 oil change. What am I going to do to get that customer? Like what's going to be that lost leader in five years? And if you don't have like an exemplary service opportunity for your consumers, then you're going to be stuck. Recalls as part of that equation, you know, express service stuff like that. So, I'm with you, I think, putting technicians, trying to convert a technician out of your shop onto the road, that's a mistake, huge mistake, and it won't work. We've tried it.
Where I think you have great opportunity is bringing new people into this industry that have not been here before with no predispositions and just kind of starting from scratch. No bad habits. And, you know, service managers, I'd say, I don't want to make like, you know, absolute statement here, but I would say most service managers there in that role, because they were probably the best technician in the shop. And so we promoted them. Maybe they're a great manager, you hope that they are, but not always.
And I'd say more often than not, they, you know, they're not managers by, you know, by choice. We put them into the role. And, you know, some technicians just don't want to deal with that. They don't want to deal with somebody that doesn't know how to leave the shop. And I think by creating, you know, creating an opportunity out of the shop could be valuable there. I want to get a little bit of sense of your scale, right? We also have, you know, a lot of entrepreneurs that listen to this podcast and founders and just people in the industry that are looking to, you know, do things differently and kind of push to envelope.
So just tell us a bit a bit more about, you know, the nitty gritty of the business, your scale, how you how you've been funding it, how you got it off the ground, kind of give us, give us a lay out of land there. Yeah, being an entrepreneur is not for the fan of heart, especially in the auto tech space. I really think that there's a huge opportunity in our industry the next few years to bring some tremendous change. Like, like, game-changing trajectory type stuff. I think there's a lot of pain points on the variable side, on the fixed side, on the finance side that, you know, car dealers, like, they know how to solve the barrier to entry for, to be a technology entrepreneur is a lot lower than it was even five or ten years ago.
And there's some amazing technology out there, AI, you know, RPA, robotic process automation. There's some really cool stuff. So if you're a car dealer and you have a pain point, which is what we had, right? We had a pain point around recalls and I wanted to solve it. And I think there's a great opportunity to bring about that change. So how did we kind of do it? It was really tough at the beginning. Finding, you know, somebody like a developer or software engineer, that was the hardest part, because I had no idea how to do that. And once we found that right person through a lot of, like, networking and talking, you know, it was really me and him for the first year, building out kind of an MVP of the product. What, what, what could this look like? And then we started getting some early traction.
I sold it to some of my dealer friends. And, you know, we were trying to find the right price point, then you have to have DMS integration. That's really kind of the first major inflection point as an automotive technology entrepreneur. Until you have DMS integration, you're really like, what are you? You're kind of a, it's a good idea. That's, yeah, you got to have that first. So once we did that, we went to all the majors, we went to, you know, all the service scheduling tools. Things really started to pick up. And, you know, our company now is a little over 50 people. We signed up 700 dealers last year alone. Yeah, we're super excited about the growth, man. A lot of signups last year. We'll probably do twice that this year. We don't spend any money on marketing or advertising. It's all pure word of mouth at this point. And it's just through, you know, getting building product market fit, like identifying a pain point that dealers have a real pain point, and then solving, like giving them a solution to solve for it.
And, you know, I wanted to have a price point that was attainable, you know, obtainable for pretty much every franchise dealer out there. So we've done that accordingly. And we did, we got some funding along the way. So we're, you know, series A backed institutional venture capital. That was a harrowing journey at the time. But I'm really glad that, you know, we did that. It's put a really good board. We've got a good board of people that, you know, advise me and the rest of the company. And, you know, our goal is to be in 10 or 12,000 dealers. This is a, this is a pain point. This is a problem that every card dealer in America has to solve. And candidly, we're expanding to Canada and, or have expanded to Canada. And we have some major launches coming up there in the next few weeks, which we're excited about. The growth in the scale is really ramped in the last 12 months.
Well, I'm very, very pumped for you. I feel like you're operating at a very opportune time. So there's definitely a need for something like this, especially with all the craziness around, just deal with your profitability. Really, really excited to continue, you know, following your growth and, you know, what you're going to be up to. I want to thank you for coming on. It's been awesome. If anyone wants to learn more about BusyCar, I'm on the website right now, BusyCar.com. You can check it out there. We'll also throw the link in the show notes. If anyone wants to get in touch with you, what's your email? Yeah. So hello at BusyCar.com is the, is the easiest and we got a bunch of contact info. We make it pretty easy to go whole of us. So we're everywhere, LinkedIn, Facebook and our website. Love it. Ryan, appreciate it. Any, any parting words for our guests?
I just want to say it's good to see you. The big review of the last few weeks has been super exciting. And, you know, much appreciation for, for having us on and wish you continued success and looking forward to the Jose interview. Let's go, baby. All right. Hope you enjoyed that episode. Please give the podcast a rating. Consider subscribing to the show and check the show notes for links to what we talked about. Thanks for tuning in. I'll see you guys next time.