Dealer Elite Interview
1. What is "Cars Out The Door"?
If you are the car buyer, Cars Out The Door is negotiation-free online car buying, with online trade-in, lowest out-the-door price, and know your loan amount and car payment before you click the button to buy the car.
If you are the car dealer, Cars Out The Door is every single internet efficiency you were promised to offset your compressed internet margins - but never received. Cars Out The Door has turned the new and used automobile into a “click to buy” product - driving down the cost of running a dealership by 50% and the cost of opening a new dealership by 40%.
If you are the OEM, Cars Out The Door makes it possible to finally sell vehicles directly through your OEM website - via the dealer network - while saving hundreds of millions of dollars by building only the exact models options and colors that people will buy.
2. How long have you been a Dealer Elite member?
About a year and a half. I joined in anticipation of the day I would finally be releasing this product.
3. What do you like best about Dealer Elite?
DE is a community of people that are passionate about problem-solving the auto industry. I am actually a financial adviser, which accounts for my analytical, problem-solving side, and I am very proud to be a member of the Best Automotive Social Site in our industry.
4. What does Cars Out The Door do that is different from every other car buying website in the history of the internet?
Everything. In fact, we are the auto industry - simply translated onto the internet in its‘purest form. The auto industry speaks a business language all its’ own - and we wrote the internet code for that language. In doing so, we killed the car buying negotiation and unlocked every single internet efficiency that was predicted for the auto industry in the early 90’s - but never showed up.
5. This all sounds interesting? Can you explain in more detail?
Car buyers live on the internet – and they want to build their car from the manufacturer’s catalog and purchase it negotiation-free, via the click of a button. Except they can’t because car dealers can’t get the internet leads in real time, respond back with price quotes in real-time – and when they do respond, the price quotes are lacking critical details – namely the trade-in has to be included and the price has to be “out-the-door.” For buyers to say yes to an online vehicle purchase they have to a) know the full amount they are spending b) receive enough competing offers to make a buying decision c) the offers have to arrive quickly and on schedule. Without these three elements, the car buying negotiation will never die and the automobile will never be sold via the click of a button.
6. O.K. Mike. But as soon as we put a price quote in writing, the buyer is simply going to play us against the next dealer. Don’t you see what we have to deal with?
I sure do. That’s why dealers are completely anonymous when quoting prices - and price quotes are visible only to the respective buyers - not other dealers. Neither buyer nor dealer can manipulate our system - and every dealer has a fair and equal chance to win every deal. Besides, buyers have no interest in manipulating anything. The whole reason they’re using our system is they just want the information so they can get on with their life. Oh, and we don’t tell the dealer how much to sell the car for - and we don’t tell the buyer how much to pay for the car. We don’t care about the price of cars.
7. So this is not really just about price - like every other car website?
Cars Out The Door is more about value than about price. We just took the internet leads you are currently buying, increased their quality a thousand-fold, made them free - and killed the ensuing negotiation that comes with every dinosaur internet lead. In doing, we’re going to eventually save the dealer about a thousand bucks in marketing costs per vehicle. Not only that, we’ve provided a system that has form and structure and moves according to a clock. It works all the time and the labor to staff it is standing around the dealership already. Just put all hands on the computer - because that is where the car buyers live.
8. How much does Cars Out The Door Cost?
$279 per vehicle sold - period. If the buyer cancels the sale through no fault of the dealer, the fee is refunded immediately. Site access is immediate and FREE. Dealers can sign up right now on www.carsoutthedoor.com and in 30 seconds they will have every car buyer in the county at their fingertips. We were just launched on Aug. 23, 2011, so give us a month or two to get the buyer’s rolling in.
9. What can car dealers do to make Cars Out The Door better?
First of all, spread the word far and wide throughout the industry. OEM’s need to hear your voice and know that you want this. You have nothing to lose - either way. The whole thing is free for the taking - and we only make money when you make money. Second, read our Manufacturer Q & A page http://www.carsoutthedoorblog.com/?page_id=86 . Call your OEM rep and ask him or her to get the OEM on our system. It is free to the OEM and the OEM‘s will start driving traffic right from the source. The sooner they do, the faster the buyers will be showing up - and the faster dealerElite Dealers will start saving money.
Comment
You are right, Mike. I haven't dug into the product enough to see how these factors are addressed. I need to do that, and will.
Cheers,
Pete
I still forsee at least one major issue. Condition affects trade value so significantly that any online bid for a customer's trade will have to be "subject to" a final appraisal. It would be nice if this were not so, but valuations can vary hundreds simply based on tire condition, and thousands based on damage and/or mechanical condition unable to be evaluated online. Dealers do not want their employees to mislead potential customers, however a blind bidding forum that gets earns traffic by making the most aggressive offer leaves room for such tactics.
While no-trade new vehicle transactions should proceed in such a process easily, IMHO $279 represents too high a percentage of the typical gross margins of such transactions.
The real value in such a service (to both dealer and customer) is not in eliminating negotiation altogether. Many (no, most) customers actually like a tiny bit of negotiation to assure themselves they haven't left anything on the table. The real value is identifying the potential customer and her needs and bring those to a dealer willing to negotiate quickly in a narrow range.
Cheers,
Pete
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