usedcars.com
Headquarters: Redwood City, Calif.
Launched: 2005
Sales: Less than $1 million in 2007, $5 million in 2008
Car sales may be slumping around the U.S., but they've been a gold mine for Dealix, an online company that helps customers find cars and connects dealers with shoppers in their area.
Dealix, a division of The Cobalt Group, has had a used car site since 2005, but it was always a sideline to Dealix's new car business, according to general manager Anna Zornosa. Last year, as the recession deepened, Zornosa decided to invest more in the used car market. She ordered a relaunch of Usedcars.com in January 2009.
The site was upgraded to help buyers search for green vehicles and to provide comparisons of dealer pricing with Kelley Blue Book values.
"We increased our customer base 60% in the last six months of 2008 on the used-car side," Zornosa says. "A lot of shoppers are very interested in green vehicles, but often don't know that cars don't have to be hybrids or electric to be fuel efficient and environmentally friendly, so we provide that information."
Zornosa says that 11 million used-car shoppers visit the site each month, and more than 50,000 of them contact dealers about listings. Usedcars.com now only charges dealers a fee if a customer contact is made through the site.
"We think this is a business model that fits the economic times," Zornosa says. "Last year, our dealers were selling two new cars for every one used car. Now, they're selling two used cars for every one new car."
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