Consumers rate buying from a dealer equal to do-it-yourself dentistry


% Some of the newswires I read are a summarized mishmash of several topics.
The following URL has OT items I have excluded. I am only focused on
automakers selling via the Internet. First see:  %


-
http://www.upi.com/Business_News/2013/11/10/Toyota-unveils-fuel-cell-car-Point-click-spend-30000/UPI-21751384079400/
...
Internet car sales

Anyone who buys a new car without first doing some research on the Internet
is either lazy or crazy, but can the same be said for buyers who actually
purchase a vehicle online.

With tons of information, from in-depth auto reviews to pricing, available
at the click of a computer mouse or touch of a fingertip on a tablet, doing
research online before making the purchase is a no-brainer.

General Motors Co. thinks more consumers are ready to avoid the wheeling and
dealing that goes on in the showroom entirely and the No. 1 Detroit
automaker is rolling out a new online shopping tool.

Some consumers rate buying a new car from a dealer about the same as
do-it-yourself dentistry.

More new car sales are being negotiated by email, which eliminates a lot of
variables for savvy consumers who don't feel confident taking on a wily
salesperson on the dealer's home court. It's easier to find the vehicle you
want, equipped the way you want, and get the price you want without all the
face-to-face haggling.

Call it the art of the virtual deal.

But there's that leap of faith of shelling out tens of thousands of dollars
(plus tax) for a vehicle you may have never even driven.

"We want people to start buying cars over the Internet," said GM Chief
Executive Officer Dan Akerson, who added it "doesn't mean we're going to
bypass our dealers."

As it expands, GM's web-based application called Shop-Click-Drive will give
shoppers electronic access to the entire network of 4,300 brick-and-mortar
dealers, allowing shoppers to negotiate a price, get an estimate of the
value of a trade-in, and apply for financing.

Shoppers can schedule a test drive or request the new vehicle be delivered
to their driveway or parking spot.

If the experience sounds a lot like buying an appliance on Amazon.com,
there's no doubt of the comparison.

Tesla Motors, which manufacturers the all-electric Model S sedan, pushed
sales through its website but ran afoul of franchise laws that protect
dealers' turf in many states. Dealers like to get customers inside the
showroom where they can try to sell them expensive add-ons, extended service
contracts, insurance products and service work.

More than have 100 dealers signed up for a test of GM's online shopping app
since January and have sold more than 1,000 vehicles online in eight states,
the Detroit Free Press reported.

"I never even walked into the dealership or met my salesperson," said Debbie
Mahaffy of Gladwin, Mich., describing her purchase of a new 2013 Chevrolet
Camaro to The Wall Street Journal. "I never even test-drove it. I wanted to
do everything strictly by email."

GM says only about 10 cars have been delivered directly to buyers and
stresses that Stop-Click-Drive is not intended to eliminate dealers or
showrooms.

"There are a lot of people who do things online, and those customers are
asking the question: Why can't I buy a car online?" said Jim Bement, the
manager of GM's online retailing program. GM says dealers like the program
because it generates high-quality leads and a higher rate of sales than
other referrals.

Most potential new car buyers prefer shopping on the Internet and taking a
test drive at the dealership before writing that check -- or making an
electronic funds transfer ...
[© upi.com]
-


% OK, so GM has dealerships, yet are pulling a Tesla to compete by also
selling via the car-dealer-less online method. GM is not alone,  other
automakers selling online. See the following ... (more at the bottom)  %



http://tottenhamnews.org/sci-tech-3/you-can-order-mercedes-from-the-internet-1676.html
You can order Mercedes from the Internet!  [2013/12/02] - ... from the
company, a new business strategy of internet car sales was noted. Starting
tomorrow, customers can order on the Internet and they want a new tool ...

http://www.detroitnews.com/article/20131202/AUTO0104/312020053/1148/auto01/Mercedes-starts-sell-cars-online-first-German-Web-store
Mercedes starts to sell cars online with first German Web store 
[2013/12/02] - Daimler AG's Mercedes-Benz will start selling cars online for
the first time through its dealership in Hamburg, following BMW in
experimenting with Internet sales.

http://www.courthousenews.com/2013/12/02/63317.htm
Russians' Car Dreams Sink in Internet Potholes  [2013/12/02] - "Instead, the
Kapustins use images of cars and information about them gathered from other
online car sales sites to advertise these vehicles as ...

http://www.marketwatch.com/story/ford-prepares-for-online-rush-led-by-f-150-shoppers-this-holiday-weekend-2013-11-26
Ford Prepares for Online Rush Led by F-150 Shoppers This Holiday ...  Nov
25, 2013 - Ford pioneered a digital dealer strategy in 2000 and has seen
online sales leads increase ... "Buying a car is largely an in-person
transaction by necessity ...

http://www.whec.com/article/stories/s3225649.shtml
Internet transforms car buying process  Nov 22, 2013 - The internet is
transforming the auto retailing industry. As more ... Though the average
salary of a sales person rose last year, many dealerships are eliminating
...

http://www.bloomberg.com/news/2013-11-21/the-great-disruption-comes-to-auto-dealers.html
The Great Disruption Comes to Auto Dealers  Nov 21, 2013 - The Internet
didn't get rid of the dealers, but it forced them to become much more ...
Average gross profit on a new-car sale dropped to $1,283 last year from ...

http://www.autoworldnews.com/articles/5174/20131121/death-of-a-haggling-car-salesman-sales-jobs-shift-as-more-customers-research-online.htm
Death of a 'Haggling' Car Salesman: Sales Jobs Shift As More ...
Nov 21, 2013 - During the last 15 years, the Internet has revolutionized the
car sales industry, forcing those working the showroom to become more
"concierges than ...

http://online.wsj.com/news/articles/SB10001424052702304672404579182061400578466
Say Goodbye to the Car Salesman  Nov 20, 2013 - Now he's becoming like
everyone else—stuck most days in a chair in front of a computer screen. The
Internet has been upending car sales for ...

http://www.bostonglobe.com/business/2013/11/20/tesla-battles-auto-dealers-direct-sales-consumers/3f1xBFN21xH8QqQc3jijTP/story.html
Automaker Tesla looks to bypass car dealers  Nov 20, 2013 - But the
expensive bauble on sale in this storefront is a car — the ... a comfy store
or over the Internet rather than the traditional showroom ...

http://blogs.wsj.com/corporate-intelligence/2013/11/12/what-internet-ford-doubles-down-on-its-car-dealers/
What Internet? Ford Doubles Down on its Car Dealers  Nov 12, 2013 - Ford
Motor Co. has relied on dealers and showrooms to sell its cars for more than
100 years, and plans to keep on doing so despite the rise of ...

http://www.newsday.com/classifieds/cars/gm-sells-1-000-cars-online-seeks-more-internet-sales-1.6394208
GM sells 1000 cars online; seeks more internet sales  Nov 6, 2013 - DETROIT
- An online shopping service for General Motors Co cars and trucks is being
expanded to GM dealers throughout the United States.

http://business.time.com/2013/10/10/buying-a-car-online-is-about-to-get-way-easier/
General Motors Pushes Online Car Sales  Oct 10, 2013 - Though online
shopping has become ubiquitous in recent years, buying a new car remains a
distinctly retro experience. However, a new ...


% Even Craigslist wants a piece of the action. See:  %


http://www.newsday.com/business/press-releases/craigslist-to-start-charging-car-dealers-publishers-increase-automotive-leads-with-autoconx-systems-automotive-vertical-solution-provider-1.6505510
Craigslist to Start Charging Car Dealers; Publishers Increase ...
Nov 27, 2013 - The online classified giant will begin charging auto dealers
to list vehicles on their platform next month. Publishers need to be poised
to take advantage of this ...


% At the same time the above is going on, the Auto Dealers are only fighting
Tesla. See:  %


http://www.dispatch.com/content/stories/business/2013/12/03/auto-dealers-seek-to-stop-teslas-way-of-selling.html
Auto dealers in Ohio seek to stop Tesla's way of direct selling
Columbus Dispatch-3 hours ago
Tesla, a California-based maker of all-electric cars, has faced similar
attempts to prohibit company-owned dealerships in Massachusetts, Minnesota,
New York ...
...
http://www.washingtonpost.com/cars/tesla-faces-off-against-car-dealers-in-another-state-ohio/2013/12/03/61b5cd6e-5c3e-11e3-8d24-31c016b976b2_story.html


% So, if the NADA [
http://en.wikipedia.org/wiki/National_Automobile_Dealers_Association
] monopoly allowed Tesla to have car dealerships, but Tesla never used them,
that would be OK?!?

Something smells really wrong here. The media is touting that automakers'
use of online sales will be the end of dealerships. If so,  why isn't NADA
stopping that instead of just focusing on Tesla? Its like there's a
Good-Ol'-boy double-standard ... What gives?  %




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