The future of car buying based on technology.

Matt Lowery
I might come across a bit jaded... well thats probably because I am, but I disagree with this. I hear it a lot, but I just dont see it. I agree this is what the customer will tell you this is what they want, I just believe its one of those things that sounds good to someone in theory but doesnt work out in practice. If the auto industry goes to the model you are talking about, walmart will be the only car dealer in town. Nobody wants to hear this, but dealers have to make a profit... I mean forget going for the jugular now a days, we already work on the slimmest of margins, and many stores only survive because of aftersale items. With the model you lay out, we all might as well just go to Truecar pricing and see if we can stay open. The management salaries you suggest in your other post of 60K to 100K you can throw out the window under this model. You would be little more than a Walmart Employee. Our job is now, and I believe will continue to be, Make the customer feel like they won, while still turning a profit. That is hard to do, but if you put every part of the buying experience online, including aftersale, and do a true transparency... Walmart and Amazon win... your dealership looses. Also... how did that clear pricing and buying thing work for Saturn?
Noel Gautier
I don't know if you have seen it, but Amazon already sold 1 Nissan Versa packaged and delivered just like everything else they sell online. https://www.youtube.com/watch?v=nSwykB2cOJ8 Trust me when I say this...dealerships are a dying breed once big dot coms and corporations figure it out you're right you will be buying cars from Costco and Wal-Mart. There will be more used car lots (CARMAX) at that point. Look at Tesla's business model and it works. Maybe Honda will start opening Honda Corporate stores I would much rather purchase my car from a corporate store over a franchised dealer. The old dealerships dogs hate to admit it but a change is coming.
Noel Gautier
Here's the actual link from Amazon.com http://www.amazon.com/gp/feature.html?docId=1001359341
Cody Jerry
The industry is definitely going to evolve, like it has been since the beginning. However, the buying process will always be more involved then just picking one out online. People want to check out the seats, see how it drives, make sure it has enough zip, 1 of the 1,000 other things people look at. That could be done in a much different way then our current system, such as test drive facilities across the nation, but it will always be a part of that system. The other thing that will control how this pans out is the dealers themselves. I'm not sure what they could do, since I don't have a law degree, but I would be willing to bet that 1000 Chevy dealerships losing their franchises at the same time could produce a lot of lawyers that could think of something.
Mike Bloom
Great insight guys. GM is clearly trying to push Dealers towards an easier online shopping experience for consumers with their launch of Shop Click Drive. The only problem with that is it doesn't do anything different than what a traditional dealer website already does. In conjunction with a Dealer group in Detroit, my partners and I have developed a website format that allows consumers to price purchase payments or lease deals to the penny. We are getting ready to go public with the site...I'd love to give you guys an early opportunity to take the site for a test drive via a webex meeting. Here is our landing page. http://clickclickcar.com/ Let me know if anyone is interested.
Cody Jerry
Thanks really interesting, Mike! I know the lease sales are popular in England (http://www.lingscars.com). I always thought it would do well in the U.S., but never had the experience or know how to do it.

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