RE:
eBayMotors
GM's Shop-Click-Drive
Dealer.com's Reserve It Now
Carvana
Cox's MakeMyDeal.com
I believe the statement was made that a shopping cart approach would be illegal. I can't address any of the above other than GM's Shop, Click, Drive, an abject failure despite GM's attempts to put a positive spin on it. A dealer COULD legally have a shopping cart option on his/her website and NOT be in contravention of any laws UNLESS there was some brokering somehow involved that might conflict with laws in certain states. Since we are told that consumers OVERWHELMINGLY want this option, I am waiting for some dealer somewhere to put a shopping cart on their site so we can observe the data. Of course, if it is a wild success, why would a dealer rush to tell competitors of the success unless he can find a way to make money by selling the concept and charging consulting fees to implement it.
I repeatedly caution dealers about paying attention to surveys produced by companies who merely want to "prove" their own agenda.
OEMs would be in contravention to their own Sales and Service Agreements with their dealers. Can anyone tell us why an OEM would back stab its own partner dealers by circumventing them even if there were no franchise agreements in place?
Regarding a dealer shopping cart and delivery to a customer's home: Who is familiar with the various Right of Recision laws in the various states? Those of you with AFIP certification know chapter and verse on this. Yes I know, there are dealers who have certain money back guarantees under tightly controlled conditions. Imagine if this becomes wide spread and the scammers come to the party in numbers. Who has worked out how to unwind a deal when sales tax has already been paid, license plates purchased, title work completed, etc. What if the trade is sold? Will dealers now have to have a moratorium on selling trades for a period of time because of some Right of Recision consideration? In many states dealers don't have the latitude to hold up title work because of some money back guarantee or Right of Recision situation.
There ARE quite a few operators around the country who SUCCESSFULLY use a non standard approach to new vehicle auto retail. In Texas, there are huge lease facilitators who do business out of offices without inventory. They have no storage and display lots. They have no new vehicle franchise. They are charactized by the fact that they produce enough gross profit per deal to pay their producers well. They are staffed by GM and or F&I Director caliber people who don't turn over every 90 days. Why can't their business models be consistently duplicated? Many have tried. Answer: Imagination and Discipline.
