It’s not hard. Neither is going to the pharmacy or Wal-Mart, but I still buy everything on Amazon to avoid going to these places. My last car was reserved over the phone in < 5 minutes sight unseen. If I know the car I want, I just don’t need the whole process.
Understood. So, is the expectation to stop in, sign paperwork, then pick up the vehicle? Bring your own financing? I suppose you'd like to skip the whole salesperson taking the time to show features of the car (for their CSI score) thing?It’s not hard. Neither is going to the pharmacy or Wal-Mart, but I still buy everything on Amazon to avoid going to these places. My last car was reserved over the phone in < 5 minutes sight unseen.
Are you saying you've already been sold, you don't need to be sold again?If I know the car I want, I just don’t need the whole process.
Point well taken! All I would add is another dealer advantage of customer retention program.It comes down to Cost of Acquisition.
These companies forgot they are a two headed COA monster eating up money like an Excursion consumes gas. Dealers have a number of advantages; (1) Brand/Certified Used (can't buy a new Honda at a Lexus dealership; consumers are seeing higher incentives on new vehicles so why would they buy a used one?), (2) Service (customers keep coming back making it easier to communicate Value Propositions) and (3) Trade-Ins (new vehicle sales brings in used inventory) and there are more...
Beepi,Carvana, Vroom have to deal with COA across (1) Acquiring Inventory and (2) Acquiring a Buyer. Both are extremely expensive. Add to it a multiplier because they are relatively unknown to the general public which means their marketing has to be increased.
NabThat started 4 years ago as a TrueCar like platform (in many different ways) and one of the issues we faced before pivoting the company to help dealers with technology platforms and consumer products was the Cost of Acquisition - It is damn expensive
Without looking at their financials, I assume they are paying well over $500 per acquisition (totaling more than $1,000 in marketing costs per buy/sell of a single vehicle). We are not evening addressing how they are purchasing vehicles (continually decreasing assets). This is a volume game and getting to the volume and making it potentially sustainable would take Billions of $$$$.
Sounds like "Dead man walking"....
Yes. Ideally, just doing that online or at a kiosk. Print the bill of sale and finish it.Understood. So, is the expectation to stop in, sign paperwork, then pick up the vehicle? Bring your own financing? I suppose you'd like to skip the whole salesperson taking the time to show features of the car (for their CSI score) thing?
https://verified.meStreamlining this process online, with just an email, phone number, and maybe a SSN could help. You can look up pretty much anything about a person with an email and phone number. Bring the FastPass to a dealer, they scan it, and a deal sheet is put together. They snap the drivers license and insurance card into their system, car is washed already waiting with a bow on it.
There's some caveats to work through for sure, but I think it could be a win/win for dealers too. Might even help CSI numbers.
This could also be a compelling product for CRM companies to put together where the FastPass tech is proprietary...
I qualify as a "car guy", both for myself and my peers.Are you saying you've already been sold, you don't need to be sold again?
Many of the more traditional dealerships have been using delivery and pick-up as a customer-service differentiator for ages (while still having to pay sales commissions of 25 to 30 percent). As far as the Vending Machines, they are merely a marketing tactic. Many dealerships have spent millions on showrooms....technology "disruptors" think they can make money by adding costs (like delivery, pick-up and vending machines) to this equation?
Someone failed to take Economics 101 when they were in school.
Obviously noteworthy and interesting perspectives by all. My two cents, this is a marathon not a sprint. Declaring ultimate death or success one quarter at a time is probably foolish.Based on Vroom's & Carvana's news, Ecommerce in auto retail maybe DOA.
Yesterday, @Alexander Lau finds:
Used car site Vroom lays off staff, 25%-50% says source, as it halts Dallas and Indiana operations
https://techcrunch.com/2018/03/05/u...ce-as-it-halts-dallas-and-indiana-operations/Today, Carvana reports:
The layoffs come in the wake of tumultuous times for some of Vroom’s other competitors.
In the UK, both Carspring and Hellocar shut down last year. Shift, meanwhile, laid off staff and paused operations in at least one market, but also eventually raised more funding led by BMW.
Perhaps biggest of all was Beepi, which blew through $150 million in funding before two potential sales fell through and it was sold for parts.
Carvana stock tanks after company reports wider quarterly loss
Shares of Carvana Co. CVNA, -14.35% fell more than 7% late Tuesday after the company reported a wider-than-expected fourth-quarter loss and revenue that also missed expectations. Carvana, a platform for buying used cars online, said it lost $47 million in the quarter, or 45 cents a share, compared with a loss of $36 million, or 26 cents a share, a year ago. Sales rose to $265 million, from $107 million a year ago. Analysts polled by FactSet had expected the company to report a loss of 39 cents a share on sales of $270 million.