FI showroom red and grey logo
MenuMENU
SearchSEARCH

Online Car-Buying Services Finally Become Profitable

by Staff
March 4, 2003
2 min to read


The Internet auto business is finally starting to hum, driven by renewed public interest, according to the Atlanta Journal-Constitution.


Last month, industry pioneer Autobytel Inc. reported its first quarterly profit after seven years of losses. Autotrader.com became profitable in June after about five years on the Web. EBay Motors, launched by an e-commerce giant with a powerful infrastructure and millions of daily visitors, reached profitability almost immediately after leaving the starting line three years ago.

Ad Loading...


In the 1990s, dot-com entrepreneurs bragged that they'd put traditional auto dealers out of business and revolutionize the way people bought cars. Because of everything from state laws that prohibit direct car sales by out-of-state companies to the reluctance by many shoppers to buy before kicking the tires, the industry hit the skids, according to the Journal-Constitution.


While the online auto sites offer private, person-to-person sales, all of them depend

primarily on traditional dealers for revenues. Those are the same venerable dealers that were supposed to go the way of buggy whip makers

just a few years ago, the Journal-Constitution said.


"Dealers are the only people that sell cars,"

Ad Loading...

said Autobytel CEO Jeffrey Schwartz. "Internet sites don't sell cars. Manufacturers don't sell cars. Dealers have been, and always will be, the center of the new-car selling universe."


The biggest beneficiaries of the online auto services, ironically enough, may be the

traditional car dealers that once feared the sites, according to the Journal-Constitution. That's because for dealers, auto sites offer an advertising and referral opportunity that's much cheaper than traditional outlets.


Using primarily traditional media, such as newspapers, television and radio, dealers spent an average of almost $400 per car sold for

advertising in 2001, according to the National Automobile Dealers Association (NADA).

Topics:F&I

More F&I

Easycare White paper cover See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
SponsoredSeptember 8, 2026

How AI-Powered Coaching Is Transforming F&I Performance

See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability

Read More →
Assurant, Sell Value Build Trust, F&I Series, Expert Trainer Trent White
F&ISeptember 2, 2026

Sell Value, Build Trust

In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.

Read More →
2026 StoneEagle summary
F&Iby Hannah MitchellAugust 31, 2026

F&I Sales Give Dealers First-Half Lift

Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.

Read More →
Ad Loading...
man with white hair and glasses delivering a speech standing next to a podium
F&Iby Lauren LawrenceAugust 31, 2026

Targeted Training Drives Results

Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.

Read More →
Man's hand holding pen over a paper document
F&Iby Justin B. GasmanAugust 20, 2026

Double the Change, Double the Chance

When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.

Read More →
Laptop computer, tablet, calculator and notebook on a desk
F&Iby John TabarAugust 20, 2026

Just Do It

F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.

Read More →
Ad Loading...
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
Leading with Purpose thumbnail. Trent white pictured in front of titled graphic.
F&IAugust 5, 2026

Leading with Purpose

In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.

Read More →
Photo of a keyring with mltiple keys, including a car key fob, on a white surface
F&IJuly 15, 2026

Integrating Nontraditional F&I Products

The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.

Read More →
Ad Loading...
Photo of businessman's hands holding eyeglasses at a desk
F&Iby Rick McCormickJuly 7, 2026

Trust Is Personal

Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.

Read More →