Two years ago, CarsDirect set out to reinvent and improve the online car buying experience for consumers.
Today, the online automotive provider completes its second year in business with a network of 3,000 dealers in place. The company has already seen major shifts in the competitive landscape -- and the demise of many of its competitors in a tough dot com environment -- but says it has record traffic, growing sales of vehicles and finance & insurance products. It also recently acquired competitor Greenlight.com, and forged an exclusive partnership with online retailer Amazon.com.
At the company's launch in May 1999, CarsDirect.com became the first nationwide automotive provider to enable consumers to purchase cars directly over the Internet, a business model that it says has fuelled the company's rapid growth. CarsDirect.com says it has continued to increase its customer base, enhance operating efficiencies, expand its dealer network, and form key strategic alliances.
"Over the past two years, CarsDirect.com has leveraged the power of the Internet to deliver unprecedented convenience, selection, upfront pricing and value to car buyers," said Bob Brisco, CEO of CarsDirect.com. "With our easy-to-navigate Web site and award-winning customer service, CarsDirect.com is the easiest way to purchase a vehicle. The consistent growth we've experienced in virtually every aspect of our business proves that the CarsDirect.com business model and online car buying concept are here to stay."
In April CarsDirect.com says it recorded 1.7 million unique visitors -- quadruple the traffic the site received in January 2000 (396,000 unique visitors). According to company officials, increased operating efficiencies enable the company to serve more customers than a year ago at a fourth of the cost, while still enabling CarsDirect.com to maintain customer satisfaction levels at an all-time high.
Industry-Wide Recognition
Year Two also brought more industry accolades for CarsDirect.com's innovation and customer-friendly service, including listings among Forbes.com's "Best of the Web" and being named the "Best Car-Buying Hub" and one of the "100 Best Sites for 2001" by Yahoo! Internet Life magazine. CarsDirect.com also holds the distinction of being named the "Best Car Buying Web site" for five consecutive quarters by e-commerce authority Gomez.
"The record growth we've been experiencing, coupled with the recognition we've received within the industry for our consumer-friendly concept, affirms that we're getting it right," Brisco said. "With our established and enduring focus on providing a satisfying car buying experience, CarsDirect.com will continue to build value and trust in the automotive industry, breaking down barriers to benefit consumers, dealers, manufacturers and stakeholders."
CarsDirect.com has continued to solidify and extend its leadership position in the online car buying business through strategic partnerships that increase the company's revenue and marketing opportunities, according to Brisco. Within the last 90 days alone, CarsDirect.com acquired Greenlight.com, the fast growing online car buying service; became the new exclusive preferred partner of Amazon.com, enabling CarsDirect.com to reach Amazon.com's 29 million experienced online shoppers; added an alliance with AutoTrader.com; and united four of the nation's largest dealer groups within the CarsDirect.com national dealer network -- bringing the total number of CarsDirect.com priority dealers to 3,000.
CarsDirect.com also significantly enhanced its customer service offerings throughout the year, according to company officials. Customers now receive a new Price Protection Guarantee designed to ensure they obtain the lowest price available; a comprehensive, automated multi-lender service that gives customers unparalleled options to finance or lease vehicles online; and automated financing approvals in real time.
Other key milestones, according to CarsDirect.com, include:
-- An alliance with UnitedAuto Group, Inc. and Penske Automotive Group, Inc., enabling CarsDirect.com to serve its customers locally and more conveniently with UnitedAuto's and Penske Automotive Group's expedited vehicle fulfillment and comprehensive customer service capabilities.
-- More than $100 million in loans and leases funded during a 10-month period in 2000 via CarsDirect.com's financing arm, CD1 Financial.
-- A new marketing alliance with LoJack Corporation, giving consumers the opportunity to purchase the LoJack Stolen Vehicle Recovery System when buying a new car or truck online at the CarsDirect.com Web site.
Market analysts project that 8 percent of consumers will buy their cars online and that the online car buying market will reach $33 billion by 2004. "Led by a powerful group of investors, managed by experts from both the automotive and Internet sectors and supported by an expanding Priority Dealer Network of nearly 3,000 quality franchised dealers, CarsDirect.com is positioned to extend its market leadership to meet growing consumer demand," a company statement reads.
About CarsDirect.com
Los Angeles-based CarsDirect.com is a multi-brand online car buying service, providing new automobiles and related products and services, such as loan and lease financing and in-demand aftermarket products including extended warranties.
CarsDirect.com offers upfront pricing to consumers, who can research, price, order, purchase, insure and finance a vehicle online via an intuitive Web site that offers product information for nearly every make, model and style of new automobile available in the United States today. Shoppers can also simultaneously compare the specifications of competing vehicles.
