Third-Party Marketplace Battle Unfolding? Legacy vs Startups

[Ryan Everson]

My first question, who is providing the financing? The FAQ was a little unclear. Maybe the dealer, maybe Rocket Auto? My guess is the dealership, only because I seriously doubt Car Max would be on board if they were potentially losing F&I.

Clean website. No filter for distance.

Yeah I thought it was odd that omitted a distance filter too. Maybe offering vehicle delivery is a requirement?

For financing, it sounds like dealers are allowed to select the lenders. Not sure if dealers can load F&I products in their platform.

 

[Greg Spencer]

Yes, financing is from the dealerships. Rocket doesn't sell car loans yet, but it may do so in the future.

 

[Greg Spencer]

Yes, financing is from the dealerships. Rocket doesn't sell car loans yet, but it may do so in the future.

 

[ChrisR]

Had a demo with them, they are still figuring things out. No pricing structure yet, no firm ETA on when things will get to move forward. On the list though.

 

[ChrisR]

Had a demo with them, they are still figuring things out. No pricing structure yet, no firm ETA on when things will get to move forward. On the list though.

 

[Jeff Kershner]

Be sure to catch RefreshFriday tomorrow!!

@Ryan Everson will be joining us to discuss this trending topic!

 

[Rohit Sharma]

Biggest thing going for legacy dealers is the physical presence, whether that is the ability to go and see a few cars or the presence in the local retail space for decades. They also have the ability to provide service which increases loyalty. This is something that the new sites are not going to be able to fulfill, or at least find it very difficult to do so. You can see this trend in online only retailers like Warby Parker, Amazon etc - they are all looking for local presence. The biggest thing going for the likes of Carvana, Vroom, et al is the convenience (perceived or real) factor - the convenience factor wins for a sale, but what happens when you need to service? Whoever is able to marry these two will take the lead in this transformation. Regardless of the winner, providing a better retail experience to the consumer is going to be paramount.

 

[Rohit Sharma]

Biggest thing going for legacy dealers is the physical presence, whether that is the ability to go and see a few cars or the presence in the local retail space for decades. They also have the ability to provide service which increases loyalty. This is something that the new sites are not going to be able to fulfill, or at least find it very difficult to do so. You can see this trend in online only retailers like Warby Parker, Amazon etc - they are all looking for local presence. The biggest thing going for the likes of Carvana, Vroom, et al is the convenience (perceived or real) factor - the convenience factor wins for a sale, but what happens when you need to service? Whoever is able to marry these two will take the lead in this transformation. Regardless of the winner, providing a better retail experience to the consumer is going to be paramount.