Hard-To-Get Floorplans, Voice Control Over Physical Buttons, Online Choice Overload

Shoot us a Text.

We’ve got Michael Cirillo in the studio on this Monday, as we’re talking about how its becoming harder for new auto dealers to secure floorplan loans, how Rivian has decided that voice control is better than physical buttons and how online customers are abandoning carts because of choice overload.

Show Notes with links:

• New and smaller auto dealers face mounting difficulties in securing essential floorplan loans, a crucial step in dealership ownership. Amid rising interest rates and cautious lending practices, lenders are increasingly reluctant to finance smaller deals, affecting many hopeful first-time dealers.
  • Banks and lenders now often require floor plans to exceed $10 million, and many first-time buyers are confronted with last-minute cash demands, sometimes needing an additional $250,000 to $1 million as collateral.
  • Josh Letsis, aiming to buy a Chevrolet store, was denied floorplan loans by multiple banks and GM Financial, which required more cash on hand despite his strong credit. The deal’s collapse cost him $60,000 in fees.
  • Chad Chase faced a similar setback when Stellantis unexpectedly pulled out of financing, forcing him to scramble to keep his Chrysler-Ford store purchase alive.

• In the great button-versus-touchscreen debate, Rivian’s Chief Software Officer Wassym Bensaid doubled down on voice controls as the future, saying in-car buttons are “an anomaly.”
  • At TechCrunch Disrupt 2024, he noted that physical controls are “a bug, not a feature,” advocating that voice interactions should replace touch and physical controls. 
  • Rivian aims to make every vehicle function accessible by voice, with AI advancements potentially solving current issues in voice assistant technology.
  • Many users remain skeptical, citing frustration with today’s voice controls and concern about losing quick access to functions like AC adjustments and seat controls.
  • On top of this, Bensaid called Apple CarPlay (which isn’t available in Rivians) a “lazy” option that oversimplifies the UI, which Rivian plans to build out with proprietary, integrated software features.

• With endless options and extensive product information, today’s online shopping experience can feel less like convenience and more like an exhausting chore. Research suggests that too much choice is paralyzing, creating a phenomenon some call “choice overload.”
  • A recent Accenture survey revealed 74% of consumers abandoned online shopping carts due to feeling overwhelmed by choices and content.
  • Top abandoned online shopping carts include clothing (79%), flights (72%), snacks (70%), home goods, and electronics.
  • Psychologist Barry Schwartz’s “paradox of choice” explains that while variety can make us happier initially, too many options complicate decision-making.
  • Tools like filters and recommendations often backfire by introducing more factors to consider, which can make shopping fatigue worse, according to NYU’s Raluca Ursu.

Hosts: Paul J Daly and Kyle Mountsier

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/

Read our most recent email at: https://www.asotu.com/media/push-back-email