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Beepi and Vroom and Carvana - will they make a DENT?

I suppose the easy retort to all of this goes back to a video & question from @JoePistell:

"If car shopping websites are so great, where are the shopping carts?"

Ask me how well GM's Shop. Click. Drive. is doing or how well Dealer.com's Retail Suite is doing and I think the answer is: it's a great tool for helping customers gather information online - but it's not a good way to sell cars. It is simply very very difficult to sell a car through a website, and this is not where the industry disruption is going to come from. Disruption is definitely coming, just not from e-retail.
 
Which is why I'm not worried about a service that only really provides moderate help to a small segment of the entire market.

Moderate is an interesting choice of words. Small segment strikes me as well.

Giving the customer the ability to complete the entire transaction online seems more significant than you realize.


When you understand the scope of the total used car market as a 45 billion dollar industry even the smallest of segments become very meaningful.

And if today a small segment of people realize how easy it is to transact this way I would imagine as with most technological advances the large public will respond eventually.

There are plenty of really good dealerships across the country that thrive because they provide excellent customer experiences.

It's not just the efficiency of the model. It's the people that execute it. The experience is pretty remarkable.
 
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@Clay Toporski
Or they rely on the personal shopper to keep them at the cutting edge of fashion. But, there is a new trend with things like https://www.fivefourclub.com that are doing all of of those things too or even things like http://blueapron.com for that matter.

Do you honestly think there is a large market out there that would let you send them a new car every 3 years while they pay a predetermined monthly cost and you can figure out the logistics of shipping the car and taking it back if they don't like it then that is great. I personally don't see anything like that working.
 
I suppose the easy retort to all of this goes back to a video & question from @JoePistell:

"If car shopping websites are so great, where are the shopping carts?"

Ask me how well GM's Shop. Click. Drive. is doing or how well Dealer.com's Retail Suite is doing and I think the answer is: it's a great tool for helping customers gather information online - but it's not a good way to sell cars. It is simply very very difficult to sell a car through a website, and this is not where the industry disruption is going to come from. Disruption is definitely coming, just not from e-retail.


Guessing you haven't visited Carvana.com

No "shopping carts" but you can buy a car there. From wherever you are typing from.
 
Moderate is an interesting choice of words. Small segment strikes me as well.

Giving the customer the ability to complete the entire transaction online seems more significant than you realize.


When you understand the scope of the total used car market as a 45 billion dollar industry even the smallest of segments become very meaningful.

And if today a small segment of people realize how easy it is to transact this way I would imagine as with most technological advances the large public will respond eventually.

There are plenty of really good dealerships across the country that thrive because they provide excellent customer experiences.

It's not just the efficiency of the model. It's the people that execute it. The experience is pretty remarkable.


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I have a distinct advantage as a dealership by being able to work with 100% of these customers rather than 13% minus the ones that are suspicious of buying a car they have never driven and selling their car to someone who has never seen it. Therefore, I am again not worried about watching the same model that everyone has tried fail again and again and again.

There is no evidence that people want or will purchase a vehicle through a website without having the experience of driving and negotiating for that car that it will significantly effect the way cars and bought and sold currently.