|
Car-buying Web site due
|
 |
June 23, 1999: 9:43 a.m. ET
AutoAuction says site to offer access to 30,000 new and used car dealers
|
NEW YORK (CNNfn) - The fast-growing business of selling cars over the Internet got more competitive Wednesday when AutoAuction.com, Inc. announced plans to launch a Web site to sell new and used cars to both dealers and individuals.
The venture will compete with AutoNation, the Fort Lauderdale, Fla.-based company whose Web site allows car buyers to research, lock in prices and locate dealers.
Haines City, Fla.-based AutoAuction (AAAC) said it will target about 30,000 new and used car dealers around the country. By contrast, AutoNation (AN) has relationships with 380 new vehicle franchises in 20 states.
AutoAuction said its new Web site will supplement a site now being tested that will allow online auctions for about 1,400 Florida car dealers. That auction site will be launched this fall, and eventually be open to individuals.
AutoAuction did not give a start date for the nationwide site, but said it will initially be available to dealers first and individuals later.
"We have a lot of work ahead of us with the Web site development and implementation, but the market for auto sales, both new and used, on the Internet is so huge that there is room for many companies," said John Trusty, president of AutoAuction.com, Inc.
According to the consumer research firm J.D. Power and Associates, about 4 million car buyers are using the Internet in one way or another before setting foot in a showroom. And that number is expected to grow to 6 million, or roughly 50 percent of all personal vehicle purchases, in the next two years.
For the past few years, automakers have given customers research, prices and dealership information over the Internet. AutoNation offers that, in addition to financing information and the ability to lock-in prices.
AutoAuction, however, says it will also bring buyer and seller together through the online auction format, which has been successful for companies such as eBay (EBAY) and Amazon.com (AMZN).
"Our company just wants to be one of the first, and we plan to offer the best service, technical support, financing, trade-ins, insurance, fleet discounts and services, and after-sales support and service," Trusty said.
AutoAuction shares, which have declined 81 percent in the past year, rose 1-1/ 2 to 9-1 /2 Tuesday.
|
|
|
|
|
|
AutoNation
AutoAuction
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
