CarsDirect.com Caps 2001 With `Top 100 Web Site' Award and Strong Company-wide Growth
LOS ANGELES--Jan. 16, 2002--Since its launch in May 1999, CarsDirect.com has consistently proven that the formula for building a successful online car-buying company is based on time-honored business principles and sound consumer value, not fads or fashion.
During 2001, the leading multi-brand car buying service reinforced its single-minded commitment to creating the world's best online consumer car buying experience by launching significant new services, forging valuable new alliances and expanding its premium dealer network to 41 states.
These steps not only contributed to record web site traffic, strong incremental dealer sales and steady growth in all areas of business, but also resulted in unparalleled customer satisfaction ratings for every step of the CarsDirect.com purchase process. It is this achievement in particular that was recognized in January by Yahoo! Internet Life magazine, a leading publication read by five million consumers each month. For the second year in a row, Yahoo! Internet Life selected CarsDirect.com as one of its annual "100 Best Web Sites." CarsDirect.com was the only automotive web site to receive this honor, joining market leaders such as Amazon.com , CharlesSchwab (charlesschwab.com), eBay , and Monster.com.
During 2001, a record number of consumers told the company just how satisfying and convenient their online experience was. Ninety-eight percent of 3,000 customers queried expressed superior satisfaction with every element of purchase and delivery, from upfront and guaranteed low prices to seamless dealership delivery. Respondents also noted that on average they recommend CarsDirect.com to four friends and family members. In addition, the most recent CarsDirect.com customer survey disclosed that high satisfaction is also based on CarsDirect.com's one-stop shopping philosophy. The majority of buyers reported that they saved anywhere from four to ten days of valuable time by choosing to buy their new car through CarsDirect.com.
"Buying cars online is no longer an emerging trend -- it's a fact of life," says Bob Brisco, CEO, CarsDirect.com. "Consumers have clearly signaled that they will continue to enthusiastically adopt new processes that deliver high value, make their lives easier and are enjoyable -- and they'll do so in ever increasing numbers."
Despite slowing off-line new car sales, forecasts for continued strong growth in the online sector reinforce the shifting preferences of today's new car buyer. Jupiter Media Metrix forecasts that Internet-generated new cars sales will skyrocket from nearly 13 percent of total new car sales in 2001 to 32% in 2006, or 5.7 million car sales worth $142 billion.
More Consumer Choices, Even Stronger Dealer Partnerships
By offering new car buyers more choices in the way they shop and purchase online, CarsDirect.com attracted record numbers of shoppers and earned the continued support of the country's best dealerships in 2001. The November launch of CarsDirect Connect(TM) marked an industry first and a new alliance between CarsDirect.com and Reynolds and Reynolds . The new CarsDirect Connect service provided additional opportunities for dealers to forge long-term relationships with CarsDirect.com customers, while giving customers who prefer face-to-face dealer interaction an entirely new way of buying dealer-direct. CarsDirect.com visitors now have two distinctive options: buying online through the company's award-winning direct service, or being matched with a top-quality local dealer of their choice.
Early results indicate that CarsDirect Connect is a resounding success with both dealers and customers. Dealers benefit from strong incremental sales; customers enjoy a memorable dealer-direct buying experience. In the three short months since launch, the service has been successfully rolled out to more than 500 dealers in 18 markets including the state of Texas.
Key Milestones Contribute to Strong 2001 Growth
Supported by its premium national dealer network, CarsDirect.com concluded 2001 stronger and better positioned for the future than ever before. Other key milestones that contributed to the company's success include:
| -- | The launch of a multi-phase Automotive Research Center which helps customers make more informed buying decisions through pricing and cost of ownership comparison tools, in-depth road tests and reviews, and other up-to-the-minute consumer information. Research-related page views have increased more than tenfold since the Center's debut. |
| -- | Cooperative relationships with some of the world's greatest automotive brands through innovative web site advertising opportunities. CarsDirect.com helps many of the major automakers as well as online automotive enterprises like GMBuyPower and Cars.com market their brands to consumers who are serious about selecting their next new car -- now. Manufacturers like Saab are reporting significantly above average response to their CarsDirect.com marketing initiatives, again proving that CarsDirect.com shoppers are deep in the purchase funnel and ready to buy. |
| -- | A partnership with four clubs within the nation's best-known and most respected organization for automobile owners -- the American Automobile Association (AAA). More than 9 million AAA members in New York, Northern California, Michigan and Washington State can now choose to buy their new car through CarsDirect.com -- a choice already enjoyed by partner Amazon.com's 29 million customers and Autotrader.com's three million monthly visitors. |
| -- | The expansion of consumer finance and lease options, a step that has significantly increased the speed and ease of online loan approvals for customers, as well as resulted in a new revenue stream for the company. During 2001, over $117 million in loans and leases were secured by CarsDirect.com new car buyers. |
| -- | The acquisition of competitor Greenlight.com, which increased the number of priority dealers in CarsDirect.com's network to 3,000 and made CarsDirect.com the exclusive preferred partner of Amazon.com. |
For 2002, CarsDirect.com intends to keep the same aggressive expansion pace that it set in 2001. "Our vision never waivers -- we intend to deliver the best possible online car buying experience by working with the best possible dealerships in the country," affirms Bob Brisco. "To achieve that goal, we will continuously evaluate, improve and enhance every element of our business and dealer network. By anticipating consumer needs and preferences, then developing services and benefits to fulfill them, we will continue to reach our business objectives for accelerated growth."
About CarsDirect.com
Los Angeles-based CarsDirect.com (www.carsdirect.com) is the leading multi-brand online car buying service, providing new automobiles and related products and services, such as loan and lease financing and in-demand aftermarket products including extended warranties. As the pioneer of the direct online car buying model, CarsDirect.com offers upfront pricing to consumers, who can research, price, order, purchase, insure and finance a vehicle online via an intuitive Web site that offers product information for nearly every make, model and style of new automobile available in the United States today.
In November 2001, CarsDirect.com introduced CarsDirect Connect(TM), a new online buying process that offers consumers who prefer face-to-face dealer interaction the option of being matched with a top quality local dealer of their choice.