|
CarsDirect launches site
|
 |
May 17, 1999: 3:25 p.m. ET
Firm backed by Michael Dell aims to sell cars solely through the Internet
|
NEW YORK (CNNfn) - CarsDirect.com, an Internet venture backed by Michael Dell's personal-investment company, launched its Web site Monday in an attempt to become the first company to sell cars exclusively through the Internet.
The Sherman Oaks, Calif.-based firm, founded by Internet veteran Bill Gross and entrepreneur Scott Painter, will allow car shoppers to research, price, finance, order and take delivery of new automobiles.
Unlike such third-party online car companies as AutoBytel.com Inc., CarsDirect doesn't provide sales leads to car dealers, with whom customers still would need to negotiate the final price.
Instead, CarsDirect offers a set price based on the average selling prices from a variety of dealers.
The company said it already has generated $20 million in sales through a pilot program that began in December.
CarsDirect has received the financial backing of MSD Capital, the personal-investment arm of Michael Dell, founder of Dell Computer Corp. (DELL). Bank One and investment bank Goldman Sachs have also invested in the company.
Bank One also will offer loan and lease financing for CarsDirect customers through its Finance One subsidiary, and work with the company to build its preferred dealer network.
CarsDirect hopes to do for automobile sales what Amazon.com Inc. (AMZN) has done for bookselling: That is, change consumers' buying habits.
"The car-buying experience has remained virtually unchanged since our grandparents bought their first cars. It's time for an overhaul that puts the consumer in control," Painter said. "We know how difficult car-buying can be. That's why we want to help in every way we can." 
|
|
|
|
|
|
CarsDirect.com
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
