CarMax(R) Launches Insta-Price(SM) On-Line New-Car Buying Service
15 July 1999
CarMax(R) Launches Insta-Price(SM) On-Line New-Car Buying Service
Auto Superstore Pioneer is First to Offer Low,
No-Haggle Prices Available 24 Hours a Day on Total New-Car
Inventory/Eliminates Middleman and Uncertainty Over Real Price
RICHMOND, Va., July 15 -- CarMax announced
today that it has launched the first on-line new-car buying service to offer
consumers across the U.S. immediate and firm prices on 13 brands of new
vehicles at http://www.carmax.com(SM).
CarMax Internet Service Revolutionizes On-line Car Buying
In making the announcement, CarMax president W. Austin Ligon said, "Our
Insta-Price On-line Internet New-Car Buying service has taken the time,
guesswork and uncertainty out of on-line car buying. Consumers in 10 major
cities throughout the nation now have instant access to low, no-haggle prices
on new vehicles without having to deal with middlemen or waste time waiting
for someone to return a quote."
How CarMax's Consumer-Friendly Buying Service Works
Consumers log on to CarMax's Web site at http://www.carmax.com to access its new-
car buying service. Using CarMax's AutoMation(R) inventory selection system,
car buyers can browse a full selection of new cars, trucks and sport-utility
vehicles and view prices that are available 24 hours a day, seven days a week.
The system also provides a description of each vehicle and its location. If a
customer is interested in purchasing a car, they can contact a dedicated on-
line CarMax sales consultant by e-mail, telephone or fax and receive quick
individual attention. The sales consultant will answer all questions,
including financing inquiries, and help the customer work out all purchase
details from the comfort of their home. The customer then simply comes to the
store to pick-up their new vehicle.
In the Los Angeles market, CarMax has taken its model one step further by
testing free home delivery with its on-line service for new vehicles purchased
from the auto retailer's LAX Chrysler-Plymouth-Jeep and LAX Dodge franchises.
CarMax Insta-Price Service Offers Low Prices With No Middleman
"At CarMax, we target our prices to be at or slightly below the best
negotiated price available in the market," said Ligon. "Because Internet
middlemen add costs to the buying process, typically our prices also will be
below those provided through third-party referral services."
Great New Cars Available In 10 Major Cities
CarMax offers consumers a wide-ranging assortment of new domestic and
import vehicles on-line. The new-car locations and brands include:
Atlanta -- Chrysler, Jeep, Mitsubishi and Plymouth
Baltimore -- Mitsubishi, Nissan and Toyota
Chicago -- BMW, Cadillac, Chevrolet, Ford, Jeep, Mitsubishi, Nissan,
Subaru and Toyota
Dallas -- Chrysler, Jeep and Plymouth
Fort Worth -- Chrysler, Jeep and Plymouth
Greenville, S.C. -- Nissan
Los Angeles -- Chrysler, Dodge, Jeep and Plymouth
Milwaukee -- BMW, Cadillac, Chevrolet, Ford, Jeep, Mitsubishi, Nissan,
Subaru and Toyota
Orlando -- Chrysler, Jeep and Plymouth
Washington, D.C. -- Mitsubishi, Nissan and Toyota
http://WWW.CARMAX.COM Offers Used Cars Too
CarMax's Web site at http://www.carmax.com also gives consumers access to more
than 10,000 top-quality used cars. CarMax pioneered the used-car superstore
concept in 1993 and offers a revolutionary used-car buying experience that
consumers love. The used-car offer includes:
* Low, no-haggle prices marked clearly on every used car and truck.
* Low-mileage used vehicles that pass a rigorous CarMax Certified
Quality Inspection(SM).
* Five to 10 times the average used-car selection of typical auto
retailers.
* Consumer shopping convenience that includes computerized access to
every model through our AutoMation(R) inventory selection system;
supervised "For Kids Only(R)" play areas; no-hassle, pressure-free
sales processes; and convenient, on-line financing.
* Easy on-line inventory and price search of CarMax's entire 10,000-
car, used-car inventory at http://www.carmax.com. The on-line inventory
search includes a description of each car, the actual price and the
location of each vehicle.
CarMax has been revolutionizing the way consumers think about automobile
purchases since opening its first store in Richmond, Va., in 1993. CarMax
operates 35 locations, including 30 used-car superstores and 21 new-car
franchises. For more information, access the CarMax Web site at
http://www.carmax.com(SM).
Note: Following is a comparison of 10 leading on-line, third-party
referral services versus CarMax.
Ten Leading Third-Party Referral Services Versus CarMax
Below is a comparison of 10 leading third-party referral services versus
CarMax. Of the 10, none provide instant, bottom line prices or daily price
updates. CarMax has the only service staffed by dedicated on-line sales
consultants. While only two do not offer a response time, of those that do,
nearly half exclude weekends and holidays or give open-ended timeframes.
Also, response times for three of the services are more than 24 hours.
On-line Instant, Actual Middleman Referral Response Time
Buying Bottom line Prices Service Promise
Services Prices Updated On-line
Daily Help
CarMax Yes Yes No Yes
(Dedicated Yes
on-line (Within
CarMax sales 24 hours)
consultants)
1.Autobytel No No Yes No Yes
(Dealer (Contacts a (Within
no-haggle dealer) 24 hours)
price)
2.AutoConnect No No Yes No No
(Attempts (Contacts
to find shopper if
dealer dealer is
willing to found)
pay the
shoppers
desired
price)
3.Auto Stop No No Yes No Yes
(Dealer quote) (Contacts (Within
a dealer) 48 hours)
4.AutoVantage No No Yes No Yes
(Dealer quote) (Contacts (Based on
a dealer) shopper
request,
response
ranges
from 48
hours to
more than
three
weeks)
5.Autoweb No No Yes No Yes
(Dealer quote) (Contacts (Within 24
a dealer) hours,
excluding
weekends
and
holidays)
6.Cars.com No No Yes No
(Dealer quote) (Contacts No
a dealer)
7.CarPoint No No Yes No
(Dealer quote)
(Contacts Yes
a dealer) (Within
48 hours,
excluding
weekends
and
holidays)
8.CarSmart No No Yes No
(Dealer quote) (Contacts a (Within
dealer) 24 hours)
9.DealerNet No No Yes No
(Dealer quote) (Contacts (Within 24
a dealer) hours,
excluding
weekends
and
holidays)
10.Stoneage No No Yes No
(Dealer quote) (Contacts a (Within
dealer) 24 hours)