Could buying cars on-line become popular?

By Matt Brogan | December 16th, 2009

Buying online is a common occurrence these days, from groceries to small electrical appliances, books and DVDs. A UK based company AutoeBid.com now allows you to buy a car online, and has increased online sales by 99.6 per cent year to date with predictions that one in four cars will be bought online by 2015.

Most people have avoided large online transactions due to security concerns, Auto eBid has a unique transaction process which supports its online security tools. Giving its customers the confidence to buy online and to take advantage of the savings.

The way Auto eBid works is a ‘reverse auction’ system, car dealers are invited to bid for customers business. Dealers compete for each sale which helps give customers the best possible deal, customer details are withheld until the winning dealer is declared, which helps protect the customers’ security.

Dealers using Auto eBid have strict conditions to adhere to, they must have traded for at least three years, sold a minimum of 100 vehicles, have at least three employees and can only take a small deposit by credit card. Payment for the car is made once the buyer has taken delivery and inspected the car and is 100 per cent satisfied with it.

“Cars are a big transaction for anyone, not least those nervous about online security” explains Auto eBid CEO, Amin Saleem. “That is why we go the extra mile to make sure buying a car online is safer even than doing so in person. You can’t get duped by a dealer, you can’t lose any deposit and your details are not passed on or sold to any third party.”

Having good security is important, if the customer doesn’t feel safe they will not use the service. Auto eBid use the internet security firm Thwate who have checked and verified the company to make sure it meets the strongest identity authentication standards.

“We have seen that by addressing people’s security concerns, we can gain where others lose,” says Saleem. “This is the future model for high value transactions that will change the way cars are bought.”

Internet entrepreneur, Amin Saleem, founded Auto eBid in 2003. The website receives over 100,000 visitors a month and has processed 2,500 successful sales saving customers around $12 million compared to the cars RRP.

With a database of 5,000 franchised dealers it has over 3,500 regular auction bidders.

Mitch

Anyone who buys a car without driving it and driving a few competitors is an idiot
MisterTwo

Buying vehicles online has been around in a mature state for a few years in the UK with dealer websites and manufacturer backed scemes run by dealers. The dealers will soon become a place to get a test drive and pick the car up from and get serviced. The sales transaction will happen online.
Peter

I’d love to buy online. Having to put up with salesmen really takes the fun out of it, especially the BS they go through with the trade “…gotta talk to the manager…went in to bat for you, but sorry, can only…” routine, complete with the shaking of the head, the empassioned plea to the manager etc etc. Sound familiar? Really makes you want to do a violence, once you see it a few times, especially when you are waiting for it to happen. Now, I buy over the fone. I have bought my last 4 cars sight unseen, though I’ve test driven the model (maybe not the spec). That’s new cars, though – I wouldnt be so bold with used. In 3 of those I’ve struck the trade deal over the fone too, but that was low km cars. If I could do it all online, it’d suit me fine.
Brett

Anything that gets you out of dealing with salesman and frankly car dealers generally is a good thing.
Dave

One Ford dealer with have none off it. He banned anyone who didn’t buy the car from him. Complete and proper twit, which Ford refused to yank the dealership from. Even refuses to do warranty work (which he is obliged to do) when it suits.
He’ll be thrilled with this story.

Maybe this would work if the car companies recognised that we as the end consumer are the most important part of a sale and the dealerships need to change their business practices or move on.

The Real Car Fanatic

Just do your research decide what you want them go see the salesman. I did that with VW, the guy I dealt with said I was the easiest customer to deal with. Mind you I saw beyond his BS and could see that he was seething that I didn’t buy any of the extras they try to shove down your throat( I told him before hand not to waste his time just sell me the car I want the way I want it). Even gave me a discount cause he knew I was happy to go elsewhere to get exactly what I wanted ( well I told him I would).

The Customer needs to be in control, that’s what any kind of selling is about control. If the salesman owns you he owns your wallet.

Yonny

Lot of resistance from the dealers (and to a lesser extent manufacturers) to online investigation of various cars, if my experience is any guide. Most websites have a lot of info, sure, but just try and use the internet to start the purchase process and see how far you get – they want you in the dealership, not at the end of a computer. You don’t exist unless they can see you and smell your money.

I’m actively looking for a new car at present, know what I want, have driven it, and have come to a decision to buy. I’m in an area with few dealerships within an easy drive, so thought I would use the net to contact various dealerships. What a waste of time. Various emails have either been ignored, or responded to with an invitation to call (when I outlined quite clearly in my email what info I was after). If I wanted to call, I would have! No sale for you, idiot.

Dealers are missing a market here, small though it may be at present.
Flying High

Actually this type of service has already been available for years using a Car Broker – even for individual sales. I wont mention web sites so that this comment gets posted, but google car brokers and there are a number of them available. I have used Private Fleet in the past.

Reputable car brokers will generally beat the best price most people can negotiate and deliver the car to your front door with a full tank. You never have to see a car dealer at all! Perfect.

Goodfa

Only problem with this is if you buy from another dealer other than your local dealer you then get treated like crap by local dealer when you bring car in for warranty problem because you did not buy from them.

I would prefer to buy online directly from Manufacturer and have car delivered to local dealer where they get say a delivery fee.Customer will be happy as they would have got the car cheaper because they have cut out the middle man and dealer still makes some money on the deal for doing basically nothing plus the fact customer will probably get car serviced there.(That could even be part of the deal for buying directly from manufacturer where you have to get car serviced at dealer during warranty period)

Peter

you’d think that, but it hasnt been my experience. I’ve never bought a car from my local dealer for various reasons (mainly coz I impulse buy and I gotta gotta gotta have it right now, so if my calls arent returned within a day, I fone someone else, then I also shop by fone for the best price), so over the past 7 years or so I’ve taken in 3 new and one nearly new car for servicing warranty stuff. It’s been a little embarrassing for me (probably like getting caught out playing up), but I’ve always been treated brilliantly.

Stitch

Bring it over here. I am just now trying to get a reasonable deal on a new car and using recommendations on forums have contacted by email some dealers who appear okay.
This idea would be fantastic for a new car but I wouldn’t trust it on a 2nd hand one.
toxic_horse

I would love to be able to buy a car and not have to deal with dealers.
At least i would not have to correct a web page for knowing less about the car than me.
And not have to listen to there speel about how there $ 600 window tint is better than any other and that i really need underbody sound deadening.
Goodfa

I would be more than happy to buy a car direct from the manufacturer on line so I did not have to deal with salesmen. It would have to be at a good discount since it cuts out the middleman.

This will only suit people who know EXACTLY what they want.

As long as there are strict rules I think buying direct from the manufacturer on line would boom.

The Real Car Fanatic

Agreed, I know the rental car company I worked for in the UK got cars dirt cheap from the manufacturer. Vauxhall Omega’s for 14500 when they were selling brand new at dealers for 25,000 just as an example. The comapny then sold them on to second hand car dealers for 16,000 six months later.

JEKYL & HYDE

lets go against the grain a bit here…

firstly,imagine you own a small business and your product was at the mercy of a reverse auction.i guarentee you,you would not want to play that game unless you were desperate.even ebay goes forward,and thats the way bidding should go…

as “the salesman” has said before,car brokers clients are (rightly) treated like orphans.there’s the product,rack off.the real vulture is the broker in the middle(and his commission cheque).

here’s a true story,once i bought a plasma,dvd,surround sound system.got the best price,no problem.had to install it myself,found out i needed extra gear(hdmi cables etc).that was 2 years ago.i still don’t know how to fully work it.now,should i have paid a couple of extra hundred for some young bloke to set it up,customise my settings,and show me how everything works?that answer is yes.and cars are no different.another plus is the next time you go and buy a car,you allready know him/her(less stress)

forget online brokers…just get on the internet,there’s a big chance your cars there allready.get on the phone,tell these evil salesman your ready to go,now,today,done,you will get your price…
Aussie

I would consider it, to avoid dealing with salesmen. To get around a test drive issue, I would rent that particular car model that I want to buy, for a proper test drive for a day.