TRA - Turners Automotive Group [previously TNR - Turners Limited]

[Balance]

For sure it was a pathetic uptake from punters and underwriters, leaning on the underwriters guarantee and still way short of target, quite concerning actually.

Don't know if a mockup is needed, just go see it here. Easy to add a new 'Select your location', namely Turners locations. Anyway, obviously TRA aren't concerned dropping another 1/4 mill$ into CL8, so soon after the buy in.

And the company believes the issue received a 'strong' response!

Oh well, always right to buy right when it's wrong to sell.

[percy]

Subscription vehicle ownership will either work or not work in NZ.
If it does, Turners will have first mover advantage at very little cost.

[Baa_Baa]

Subscription vehicle ownership will either work or not work in NZ.
If it does, Turners will have first mover advantage at very little cost.

Turners/Carly are far from "first mover" in NZ. Need to do a bit more research there.

You're right though, it will either work or not and a couple of A$mill for Turners is chump change. More worrying is not whether Turners can make a fist of car sharing, but whether Collaborate will survive long enough for them to do it. There is an ugly backdrop to Collaborate, numerous failures to generate any significant growth in any of their products. Carly is just the latest and is very new and unproven. Constantly holding out their hand for new money from investors.

It's not the idea that Turners explore car subscriptions (or rental if they do) that is worrying, even though it was never forecast in strategy except in loose terms like 'digital opportunities', it's more about their choice of platform, country, and the company that owns it.

Basically they're investing their shareholders money in an Oz penny share with a checkered history of non-performance, well ... less than a penny.

[Baa_Baa]

I should be clear, Collaborate have never had a problem obtaining cars on the supply side (rental or lately car subscriptions), punters and car companies have been supportive. Many have come and gone though.

The BIG problem is that they have never found the key to driving the demand side.

No point having a few thousand cars available, Turners will need to teach them how to advertise and drive demand growth. Shareholders should expect significant further costs in delivering a car subscriptions platform and particularly sustained advertising.

[peat]

haha yeh good point Baa Baa , just as with driving a second hand car, its not the cost to buy but the cost to keep running.
So you're are suggesting the CL8 venture will become an unrewarding money soak. hmm sounds familiar lol.

[percy]

I should be clear, Collaborate have never had a problem obtaining cars on the supply side (rental or lately car subscriptions), punters and car companies have been supportive. Many have come and gone though.

The BIG problem is that they have never found the key to driving the demand side.

No point having a few thousand cars available, Turners will need to teach them how to advertise and drive demand growth. Shareholders should expect significant further costs in delivering a car subscriptions platform and particularly sustained advertising.

Turners brand strength was recently shown,when they openned at New Plymouth.Without any advertising their new site went "gangbusters" straight away.
So to make Carly subscription model work you need three things,
1] Customers..............As NZ largest seller of used vehicles Turners have the customers.
2] Vehicles..................Turners have the vehicles.
3]Operation model.......CL8 have this.Turners by taking a shareholding in CL8 Turners will not be held ranson,and will be able to modify the model to suit NZder's requirements.
From the Turners Roadshow we learnt Carly should start operating at the end of the year.I think it is fair to say Turners know their customers,are close to them, and have a record of achieving customer statisfaction.
Will it work?.Don't know.Either will or will not.
That said I think it is well worth Turners trying it. Soak up money.I don't see how,as Turners will be only operating it from Turners sites for Turners customers.

[winner69]

Turners/Carly are far from "first mover" in NZ. Need to do a bit more research there.

https://simplify.co.nz/subscription/...BoCBIkQAvD_BwE

[Brain]

https://simplify.co.nz/subscription/...BoCBIkQAvD_BwE

$92/week for a 2005 suzuki swift minimum 3months subscription.

[winner69]

$92/week for a 2005 suzuki swift minimum 3months subscription.

.....meaning?

[Balance]

.....meaning?

Great way of getting rid of old cars - $4784 a year subs for a 2005 Suzuki Swift which can be bought for less than $5k.

So a strategic change of shifting the 'con' from selling 'ex-Buy Right' type bombs to the unwary to selling subs on bombs to the unwary?