iMotors.com Launches Service in Southern California -- Statewide Coverage Now Sets Stage for National Expansion
17 November 1999
iMotors.com Launches Service in Southern California -- Statewide Coverage Now Sets Stage for National Expansion
LOS ANGELES--Nov. 17, 1999--Delivery Centers and Launches Major Advertising Campaign
In its drive to become the first national direct-to-consumer business to sell custom-ordered used cars over the Internet, iMotors.com today launched its service in Southern California.
The expansion into the number one car market in the country comes just two months after iMotors.com premiered its custom-order service in Northern California, and signifies a major step in the online retailer's strategy to expand nationally next year.
"LA is the largest, most sophisticated car market in the nation," said CEO Adam Simms, who has 16 years of experience in the automotive retailing industry. "We estimate that over half a million used cars between one to five-years old are sold in this market each year. Southern California is ripe for iMotors' offering and our milestone entry here marks another step towards our national expansion. We plan to expand quickly to the rest of the West Coast and arrive on the East Coast by early next year."
iMotors.com represents a new category of online car company. It is not a referral service, broker or auction site. It carries no inventory and low overhead, allowing consumers to custom order one to five-year-old used cars on the Internet. Customers can specify make, model and options and color -- and are guaranteed a price lower than the Kelley Blue Book retail price.
Once iMotors gets an order, it finds the car out of millions available nationally, buys it, then inspects, tests, and certifies the vehicle at the company's state-of-the-art Vehicle Certification Center near Sacramento and delivers the vehicle to a local iMotors Delivery Center. Each car comes with a warranty and money back guarantee as well as a personalized AutoBiography(SM) Report, offering an unprecedented level of disclosure about the vehicle's history and the iMotors inspection process.
iMotors' Los Angeles launch includes plans to open up to 10 Southern California Delivery Centers where customers will pick-up their cars and sign paperwork. The first three iMotors Delivery Centers, located in Torrance, Ontario, and the City of Industry, will open by month's end. iMotors.com operates four other Delivery Centers in Sacramento and the Bay Area.
iMotors.com has raised a total $73.3 million in venture capital to fund its massive expansion plans and fuel the growth of its Webvan-like infrastructure. Gus Tai, partner with Trinity, an investor in iMotors.com, said the company addresses what he calls a "broken" consumer experience. "For the first time, we can deliver a better product, a better purchasing experience and higher quality than the consumer has ever seen before," he said.
The company's LA market entry also launches with a major advertising campaign that breaks this week throughout California. The work, created by Saatchi & Saatchi, San Francisco, includes newspaper, television, radio and outdoor, and bears the new company tag line "You've never bought a used car like this before."
"To truly change the used car market, we had to start from scratch and build the business around the customer's needs rather than work within the confines of the traditional model," said Beth Van Story, iMotors.com president. "At iMotors, we believe you shouldn't have to sacrifice quality, selection or service when you're buying a used car. That's why we've retooled the entire used-car buying experience to align our goals with those of our customers."
Here's how the iMotors process works:
-- The consumer logs onto www.imotors.com or calls 877/6IMOTORS and specifies the year, make, model, options, color choices, and mileage of the vehicle desired. The customer gets a no-hassle quote up front that is hundreds to thousands of dollars less than Kelley Blue Book retail price. To secure the order, the consumer provides a refundable $250 deposit, signs an iMotors.com Search and Locate Agreement, and provides proof of financing. -- iMotors.com's expert buyers quickly locate, assess and buy the car that meets the customer's specifications and iMotors' high-quality standards. -- At iMotors.com' Vehicle Certification Center, each vehicle undergoes an inspection and extensive evaluation of its engine, power train, accessories, interior and exterior. ACE and I-CAR-certified mechanics and technicians use state-of-the-art equipment to go beyond many major manufacturers' standards to make sure each iMotors.com car is in outstanding mechanical and cosmetic condition. -- Once the car is ready, iMotors.com schedules a delivery appointment at a nearby iMotors Delivery Center -- located in major shopping and office complexes -- where the customer inspects and drives the vehicle and finalizes paperwork. The customer also receives an AutoBiography(SM) Report, a complete history of the car verifying a clean title and accurate odometer, and detailing testing, inspecting and any work performed at the iMotors facility. -- The consumer drives away with his or her like-new car -- iMotors stands behind its work with a 3-month/3,000-mile warranty and a 7-day/700-mile money-back guarantee.
About iMotors
iMotors.com was launched in September 1999 as the Internet's first e-commerce auto retailer, allowing customers to buy pre-owned vehicles entirely online. iMotors.com is a privately held company, backed by world-class investors with successful investments in leading land-based retail and Internet/e-commerce businesses. Investors include Global Retail Partners, Oak Investment Partners, Rosewood Capital, Trinity Ventures, Moore Capital Management, MeriTech Capital Partners and Vulcan Ventures.
Note to Editors: iMotors.com and AutoBiography are service marks of iMotors.com.
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