In early 2000, the automotive retailing industry seemed on the front edge of
fundamental change. For a number of years, there had been rumblings of dissatisfaction
among vehicle buyers with their purchasing experiences at local franchised dealerships.
Many customers felt price haggling and high pressure sales tactics distasteful or
intimidating. Automakers were looking at ways to overhaul their franchised dealer
networks to squeeze some of these distribution inefficiencies out of the industry value
chain. But other hometown dealers were facing unprecedented competition from
megaretailers, like, AutoNation buying services that so happen to threaten to reshape the
role and function of franchised dealers.
Meanwhile, manufacturers had launched Internet sites where vehicle buyers could
get information; compare models and features, and be referred to nearby dealers for price
quotes. That is when thousands of franchised dealers had joined the dealer networks of
the direct sales and were providing the vehicles sold online. These developments
reflected a growing understanding among both manufacturers and franchised dealers that
the Internet had changed the dynamics of automotive retailing.
· Online competition of dot-com companies
-Microsoft's CarPoint -CarPrices.com -CarOrder.com
-Autobytel.com -Car.com -DriveOff.com
-CarsDirect.com -Greenlight.com -StoneAge.com
· Dealer pricing of new vehicles
· National Automobile Dealers Association (NADA)
· Automobile Buyer Demographics
· Block Manufacturer-owned dealerships
· E-Commerce strategies of vehicle manufacturers
· Cars are lasting longer with higher mileage.
· Cars have better warranties in place and APR.
· Used-car sales are just as valuable as new, for this because people are keeping their cars longer and keeping them in great condition.
· The aut...