What’s Wrong With This Internet Car Sales Business Model?

April 21, 2006 by Chuck | 0 Comments

Maybe nothing’s wrong with it. Time will tell. I’d like to see if you noticed what’s missing.

This is a real company rolling out a real service but I won’t divulge the names since they’re not active yet.

They consider themselves “Carmax” without the lots.

They’ll have an internet website that sells used cars bought at auction.

They’ll be sold online to anywhere in the country and delivered within a few days to a location near you. They are working with a national auto parts store with branches in every major market.

The auto store handles their warranty side of the business.

The cars are delivered to the stores from one of 2 distribution points in the Mid South or Southwest so most cars can be delivered in 2 days within the continental U.S.

Orders are taken over the net through a “no haggle” pricing system.

Orders placed online are immediately followed up by a phone call from a live operator to confirm delivery address so that the documentation can be sent overnight by Fed Ex.

Financing and insurance are arranged.

Any necessary papers are signed and returned by courier.

And the car is delivered to the nearest branch of this national chain.

While it’s an internet facilitated sale, marketing will be done through many traditional outlets.

What’s missing from this business plan and how can local entrepreneurs tap into it?

In Sound Off, WAH News

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