AutoNation Succeeds with Full Online Car Sales

Washington DC October 29, 2007; The AIADA newsletter reported that AutoNation Inc., the nation's largest public dealership group, is testing start-to-finish online car sales in Atlanta.

The program is a departure from the company's traditional Internet strategy, in which vehicle sales are completed at dealerships, according to an Automotive News story. "We like what we have seen, but it is too early to see if we will roll it out across the whole country and what impact that would have," AutoNation President Mike Maroone said during AutoNation's teleconference on Wednesday, Oct. 24, releasing third-quarter financial results.

Like other dealer websites, AutoNation's dealer websites being tested in Atlanta allows shoppers to browse vehicle inventory, select a vehicle, schedule test drives, obtain a no-haggle price quote and apply for credit. But the process differs from typical online auto shopping in three critical ways.

The customer can: 1) Complete the financing process and schedule payments online; 2) Trade in a vehicle on the Web through a transaction that is separate from the vehicle purchase; and, 3) Choose to pick up the vehicle from a dealership or arrange home delivery.

Since the program was launched in July, AutoNation says, it has received 200 to 300 inquiries a month. In previous years, AutoNation CEO Mike Jackson has said the car transaction is too complex for all but a few customers to finish online. He has noted that many consumers are upside down in their trade-ins, and some have blemished credit histories, making it tough to finance the sale.