CarsDirect.com bets on one-stop, desktop showroom; venture hopes to cut out dealer middlemen and sell entirely online
Article Abstract:
CarsDirect.com plans to become the first company to sell automobiles directly through the Internet without the help of showrooms and salespeople. The Internet venture was co-founded by idealab Chairman Bill Gross and is being backed by Dell Computer Co. executive Michael Dell's personal investment company. The venture, which has already sold $20 million worth of cars through its test Web site since December, is launching its revised site this month and plans to acquire auto dealerships later this year. CarsDirect.com does not plan to funnel sales leads to dealers as do other third-party online auto dealers such as Autobytel.com Inc. or Microsoft Corp.'s CarPoint. When the company acquires dealerships it plans to close them down, keeping the property but without having salespeople in the showrooms. The company will give consumers a firm price online based on recent average prices and will work through dealers to acquire the cars at those prices. Consumers will be able to apply for financing through Bank One Corp.'s Finance One subsidiary after they pay a credit-card deposit of $250 to initiate the sale.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Car race in cyberspace; auto companies and dealers challenge online buying services
Article Abstract:
In the beginning, online car dealers offered a service that individual dealers paid for. Now those dealers are setting up their own Websites. The big automakers have several sites each. Ford now sells used cars coming off leases online instead of arranging auctions. The competition online is getting stiff. It's a trillion dollar marketplace they are all fighting for a piece of.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
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