CarPrices.com Signs Agreement with CarMax
10 April 2000
CarPrices.com Signs Agreement with CarMax; Partnership Positions CarPrices.com for National Expansion of its New Car PriceWar
SAN DIEGO--April 10, 2000--CarPrices.com, one of the top automotive research websites, announced today that it has signed an agreement with national auto dealer CarMax to participate in its New Car PriceWar(TM) service.A nationwide auto superstore chain owned by Circuit City, CarMax will be a bidder on CarPrices' PriceWar, a reverse-auction car buying service that enables new car buyers to find the lowest prices in the marketplace.
"This partnership positions CarPrices.com to expand to markets nationwide, and further ensures our customers receive the best deal every time by obtaining competitive bids from numerous dealers," said Ahmed F. Ghouri, co-founder and vice president of corporate communications at CarPrices.com. "Our open and competitive business model allows our customers get the lowest price available and increases sales efficiencies for participating dealers."
CarMax, the car superstore pioneer, operates 40 automotive superstores across the country. Three of their new car dealerships are located in Los Angeles (Chrysler-Plymouth-Jeep, Dodge and Mitsubishi), and will participate in PriceWar when introduced in that area later this month. The company also offers customers access to a 10,000-car, new- and used-car online inventory on their web site.
"As pioneer of the auto superstore concept, CarMax revolutionized car buying with the no-hassle approach," said Austin Ligon, president of CarMax. "Our no-hassle experience with no pricing games is perfect for the Internet shopping process. We're looking forward to extending this experience through CarPrices.com."
CarPrices.com launched PriceWar in November 1999 in San Diego and will roll-out the service in cities across the nation later this year. PriceWar gives customers the opportunity to submit a request for new car bids on-line, which are forwarded to participating dealers. Within 24 hours, dealers compete for the buyer's business with exact prices and firm delivery dates on desired vehicles. Customers select the bid that best fits their needs and work with the selected dealer to complete the sale.
"CarMax is a leader in sales efficiency, and is passing their savings on to their customers," said Ghouri. "Their participation in PriceWar will mean lower price bids for our new-car buyers."
About CarPrices.com (www.carprices.com)
CarPrices.com, headquartered in San Diego, is one of the fastest growing auto-related sites on the Web. It attracts more than 1.5 million visitors per month and is responsible for more than $2 million in new car sales per day. In 1999, CarPrices.com launched the Internet's first and only New Car PriceWar(TM), in which multiple dealers compete for a buyer's business with exact prices. The New Car PriceWar represents the ultimate value proposition for new car purchasers, who in 1999 spent more than $400 billion on vehicles in the United States alone.
The company's PriceWar, which drives down prices for buyers and increases sales efficiency for dealers, has had unprecedented consumer and dealer participation in San Diego. As of December 1999, nearly 80 percent of all new-car dealers in San Diego county were participating in the program. Moreover, nearly 50 percent of PriceWar participants who accepted bids bought a vehicle through the program in its first month of inception.
About CarMax (www.carmax.com)
CarMax is one of the nation's leading specialty retailer of used cars and a rapidly growing new car retailer. CarMax currently operates 40 locations including 34 used-car superstores, and 20 new car franchises. The company pioneered the auto superstore concept in 1993, and offers consumers an a-traditional car-buying experience by offering low, no-haggle prices, a broad selection of new and used vehicles, quality guarantees, and customer-friendly service throughout the buying experience. CarMax is a subsidiary of Circuit City Stores, Inc.