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Online Services Experiences (Carsdirect.com, Carwoo.com, etc.)

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Comments

  • ruskiruski Posts: 1,566
    so far I am not pleased with them. I was at first when they quoted over the phone a $210 over invoice (!!!) price on the Jaguar S-type. But now they are sending me e-mails saying that they are not offering this car yet (they cannot quote the priec because it is not shown on their web site).

    In the meantime, they have readjusted all their Jaguar prices to be equal to MSRP. Who needs CarsDirect if I can go myself to a dealer and get a car for MSRP?
  • frankrizzofrankrizzo Posts: 67
    If you are buying something that is hot, they probably can't do much for you. If you are buying a Camry, or an Accord, or something like that, they can probably help out ALOT!
  • billebille Posts: 1
    I finally took delivery of my Acura TL w/nav this week. I had gotten in on the special a few weeks back where CarsDirect was guaranteeing invoice price. Once the car arrived, I just had to have the dealer fax them the invoice and the buyers order. Then they overnighted a check for $2,957.00! No complaints here!
  • ruskiruski Posts: 1,566
    Agree, but they have this picture on their main page:
    image
  • buckwheatbuckwheat Posts: 396
    with regard to post#28 referring to post #26, note also that on website www.icp.com, the people who apparently got the CarsDirect internet project underway, lists CEO Scott Painter for CarsDirect and is captioned with the following, "The only online company that will deliver a new car to your front door at the published dealer invoice price."
  • buckwheatbuckwheat Posts: 396
    RCSpence, thanks for the site, interesting as well as informative
  • ruskiruski Posts: 1,566
    Hey - they changed their web site!
  • charlesfcharlesf Posts: 28
    I was just reading in this mornings Orange County Register (So. CA paper) a two column article about CarsDirect.com. The article stated "The Sherman Oaks-based Cars-Direct will not only sell the car, it will deliver it to the buyer's home or office." "CarsDirect has allied with bank One to offer competitive financing, and is working on marketing alliances with other Internet sites." "Car prices at CarsDirect will be lower than 90 percent of market prices. "Since launching its test site on 12/7 it is now averaging about 25 car sales a day, hitting the 600 mark this month and hiring about five employees each day."
  • frankrizzofrankrizzo Posts: 67
    In the other topic, there was posted a link to a ZDNet news story on CarsDirect. (From the WSJ!)

    Here's a link to the message containing the link to ZDNet.

    >

    Read the message, come back, and let's discuss their business model, and their ideas for cars over the net.
  • frankrizzofrankrizzo Posts: 67
    I was as sceptical as the next person when I first heard about the special they were running a while back. But, being as "frugal" as I am, and always a good shopper, I checked them out. (I called first to avoid potential spamming if they proved to be useless.. Like CarOrder.com is to me in TN). When they seemed legit, and to be VERY easy going, I just sent them my info, 2000 Porsche Boxster, configured like this, and my name as Frank Rizzo. (In case you guys don't know, that ISN'T my real name). Everything went on like normal, I called every couple of days, and talked to Todd, and just chatted about his company, what he was doing over the weekend etc. Anyway, to make a long segment short, they approved me, and I have a letter of confirmation. The more I thought about it, the weirder it got. Sure, they get good word of mouth advertising from us (the program participants), but anyone following us doesn't get the same deal, and furthermore. Once they stop subsidizing deals, they are like the 20 other buying services. And, after the promotion ended, I checked their site, and they were only advertising $1000 below MSRP on a Boxster. I beat that on my first call. "How are these guy gonna survive?" Well, in the story in the above link, I got my answer. Buy dealerships. Then you can charge invoice for all the cars you can sell, and make the money on the financing. Yes, the financing. (My Daughter's Softball coach represents a company that teaches dealerships how to sell, and offers their array of financing products to them. On a normal car sale, he says they can clear $1000 by using their financing. Now THERE is some money to be made! Not counting Dealer Holdbacks, Dealer Incentives, and anything else that we don't get considered in our Invoice deals). They CAN make money selling at invoice. Not to mention, if they become the biggest "Brand X" dealer in the US. They get special treatment from the manufacturer, more vehicles, and other perks. Now, the problems as I see them. If their dealerships become nothing but "Delivery and Service" centers, then they have no cars for test-drives, I mean, "you aren't test-driving MY Boxster!". They also have to buy a Brand X dealership in every geographical area to be able to deliver cars to the entire US. Then, they have the logistics problems of either the customer comes to pickup the car, or you have to deliver it to them. You also have folks who don't feel comfortable buying a car sight unseen.(I can understand this!) They need to be stroked, and pampered by the dealer in order to feel that they are getting a good car. The Net just can't do that for them.

    What do YOU guys think??
  • flinflin Posts: 29
    Picked up my new 99 Acura TL today. I was probably the last to squeak in on the invoice promotion, so they subsidized my purchase by nearly $3000. I don't know what their future holds, but I am happy and grateful that I was able to get this deal. Everyone I dealt with at CarsDirect was professional and courteous. I didn't get the runaround from anyone, and found that the reps were very flexible considering my specific situation.

    If they continue to conduct business in the same manner they did with me, then I hope they enjoy good success. The amazing part is, I never had to sign anything- it was all done over the phone on my end.
  • flinflin Posts: 29
    Picked up my new 99 Acura TL today. I was probably the last to squeak in on the invoice promotion, so they subsidized my purchase by nearly $3000. I don't know what their future holds, but I am happy and grateful that I was able to get this deal. Everyone I dealt with at CarsDirect was professional and courteous. I didn't get the runaround from anyone, and found that the reps were very flexible considering my specific situation.

    If they continue to conduct business in the same manner they did with me, then I hope they enjoy
    good success. The amazing part is, I never had to sign anything- it was all done over the phone on my end. If they don't, then I'll just be happy knowing I got a great deal with little effort.
  • ruskiruski Posts: 1,566
    They keep changing prices around. They originally told me that they could get me a Jaguar S-type for $210 over invoice. Then they backed out and simultaneously increased prices on all Jags to match MSRP. Now they lowered their Jag prices a bit but still do not show any info on S-type, and they will not sell it if it is not shown on their web site. I sent them e-mail and left voice mail asking when they would put S-type on their web site - have not received any answer for a week.
  • shawnmaloneshawnmalone Posts: 71
    in the long term, without the subsidy. Although I too got the special promotion subsidy when I bought my car through them two weeks ago, the deal WITHOUT the subsidy would still have been better than any other deal I found for that particular car, configured as I chose. They found the dealer and made the deal, saving me all kinds of aggravation. I did not need a test drive.

    I also checked on their prices for availability of a BMW Z3, and CarsDirect.com found a lower price than any of the dealers my wife had been shopping.

    If you read the Waxes and Polishes topic in the Maintenance conference, you will find posts from buyers who would prefer that their new cars be delivered with the "cosmoline" or other protective films still on the car, so they can wash and prep it themselves. If those buyers bought through CarsDirect.com, maybe the dealer would refrain from prepping the car.

    The point is (and I know it's been made in other forums) that car sales need to change from the current system, which adds costs (the dealer) without benefit to educated shoppers who know what they want. Internet buying needs to work here the way it worked on travel agents and computer sales, creating a market that offers savings to a certain class of buyers.
  • whdwhd Posts: 3
    I am repeating a similar post made to Smart Shopper #1305 - CarsDirect.com

    Has anyone run into any reluctance by a dealer about taking a check from CarsDirect in conjunction with the invoice pricing special?

    The recent publicity in the WSJ makes me a bit more comfortable that their check will clear. I am picking up a 528i tomorrow and their portion of the cost is $2,750. In a worse-case scenario, I don't want to be held liable if the check is returned.

    I would appreciate hearing from anyone that has purchased a car during the invoice pricing special. Thanks in advance.
  • brianinohbrianinoh Posts: 20
    I don't see the lack of test drives as a problem or the fact that some people will not be comfortable buying such a large $$ item over internet. Internet car buying does not need to work for everyone for it to work. We have discount stores (lower service and prices) and department stores (higher service and higher prices). Full service brokerages and discount brokerages. Mom and pop type hardware stores (with again higher service and higher prices) and huge home improvement centers (where if the high school kid even knows what a socket set is you are lucky but with lower prices). Each of these stores is able to coincide with each other. They each have their own niche and do fine. With some other types of businesses, the discounters/lower service places tend to drive out the full service places. Pharmacies in many areas of the country are a good example. It is almost impossible to find a mom/pop pharmacy where the pharmacist knows your name, your kids, etc. Evidently few people wanted that type of service anymore or at least wanted to pay for it (certainly there are some niches still out there though).

    Who knows what true internet buying of autos may mean to traditional dealers. They may be forced to change to survive. Those who can adapt most quickly will probably do the best. Bottom line is that I think it will be good for consumers. It is not very often that increased competition is bad for consumers.
  • frankrizzofrankrizzo Posts: 67
    You could be exactly right about the different "classes" of merchants. I, for one, (as if you guys didn't already know), am driven COMPLETELY by price. The best price on the same item wins. If it has a warranty, that warranty is from the manufacturer, and must be honored at any dealership that does warranty work. I have no loyalties to a particular dealership. Because they have no loyalties to me. Case in point, I got a good deal on my BMW 323. That dealer is also a Porsche dealer. I called my salesman, and asked if he wanted to give me a quote on a Boxster. Since they were selling for MSRP all over, he could make GOOD money on this car. He said his dealership had NEVER sold a Boxster under MSRP, so he would have to decline. I didn't even get an offer of "You are a valued customer, we'll discount it $500." I got that from a dealership I have never dealt with before. He said just because I asked, he would give me $500 off. (He was in Florida where list is the norm for them). So as I said. Money talks, bull-uhhh.. you know what I mean :-)
  • flinflin Posts: 29
    CarsDirect's check to my Acura delaership for $2977 toward a 99 TL went through just fine. The dealership deposited it, then marked it as $2977 down toward the total price.

    Needless to say, they were a bit skeptical at first, but it worked out just fine.

    As a matter of fact, I know several people at that dealership who rushed to the CarsDirect website when they found out about my deal, but they were too late. Acura is not even offering an employee discount on the TL, it's so popular.

    Anyway, don't worry about the check. If you'd like to e-mail me, I could probably hook your dealership up with the people who worked the deal at mine.
  • KThomp100KThomp100 Posts: 62
    Very satisfied customer here. Michelle at Carsdirect did everything she said she would including being very patient in my decision of which car to buy. Ended up the a 99 Lexus GS300 at invoice price! WOW! Even the dealership could not believe this but since I have the car in my garage, Carsdirect must have made good on their payment check to them. Anyway....great folks to work with...try to get Michelle if you are ready to buy...her extention is 7881
  • joemacjoemac Posts: 2
    (I'm a little late getting into this thread. The reference, below, is to post #69 by FrankRizzo)


    Brian, I know that there a companies that are
    trying to negotiate to be the "internet's first
    virtual dealer", but it hasn't been done yet.
    (Being that the physical dealers would pitch one
    HELL of a fit considering that they have paid
    MILLIONS of dollars to secure a dealership for a
    particular brand), so I don't expect that to show
    up real soon, unless the manufacturers do itthemselves.


    The physical dealers would not have to be suffering fits about the possible advent of the virtual dealer, if they'd simply taken the bull by the horns in the first place. I see no reason why they cannot offer this service, in addition to their traditional service. It's really a no brainer, so why they don't is beyond me. Any of you salesman (or sales managers, if you're out there), care to offer an explanation? It seems doubtful to me that manufacturers will do it, because, if they were interested in doing direct sales, they would have a long time ago.
  • shawnmaloneshawnmalone Posts: 71
    Just as IBM has seen the success Dell has been having, and is trying to find a way to compete in direct sales without enraging retail dealers, the car manufacturers will avoid losing market share to CarsDirect.com by offering their own, competing Internet buying services. I fully expect this to be the norm for car buying by the time I buy my next car, probably in 2005.
  • shawnmaloneshawnmalone Posts: 71
    another response to post #35: The check to Rod East VW in San Antonio TX from CarsDirect.com for my Volkswagen was accepted by the dealer without complaint or comment.
  • I believe that dealerships are opposed to the sale of cars and trucks over the internet for several reasons. One is that they already have a lot of money invested in their facilities. Even if a dealership were to open a "virtual showroom" in addition to their actual dealership they still have a lot of expenses associated with and a lot of money invested in their existing facilities. Furthermore, the sale of vehicles over the internet will ultimately lead to lower profits per vehicle. Why else would anyone want to purchase a vehicle on-line? Sure it is convenient, but most people like to physically see and touch something that they are purchasing if they are investing so much money in it.

    The existing dealerships throughout the country posses a tremendous amount of lobbying power with both legislators and their manufacturers. In fact, many states still have laws that prohibit factory owned stores. So the existing dealerships will likely put up a huge fight against completely on-line dealerships. Still having said this, with the increasing popularity of services such as Auto-By-Tel, some manufacturers are exploring the sale of vehicles over the internet. General Motors recently began the national roll-out of their GM BuyPower Web Site. This is not a completely virtual dealership service, it actually refers customers to existing GM dealers. I would not be surprised if several other manufacturers came out with services that are similar to BuyPower in the future. However, I personally believe that it is next to impossible to eliminate the sale of vehicles through actual dealerships any time in the near future.

    Your Host
  • frankrizzofrankrizzo Posts: 67
    that the dealerships will put up one heck of a fight. I think that this might cause the dealers to be more pro-active in their responses to the internet, (Like many dealers have already), and offer "Internet specials", or even host their own "Car configurators", Like Niello Porsche does. Eventually I think that a large majority of sales will be through the internet. I think things at the dealership level will change. Once the general public discovers that they can get discounts over the 'net, I look for folks to start going to their local dealerships, looking at, and driving the cars that they like, and then getting their deals over the net. This being the case, things might change. Dealerships could be more hesitant to allow test drives, and the like, except to folks who have signed buyer's orders. This is a possibility that I see.
  • shawnmaloneshawnmalone Posts: 71
    I noticed today that the CarsDirect.com web site said that their service was not available in Texas. The site lists a phone number to call the Texas Attorney General, which I did.
  • shawnmaloneshawnmalone Posts: 71
    Despite what their website says, the CarsDirect service IS available in Texas, according the representative who worked on my deal earlier this month.
  • frankrizzofrankrizzo Posts: 67
    Don't keep us all in suspense!
  • tomcat1tomcat1 Posts: 8
    Picked up my '99 bmw 323i last wed. I had ordered the car 1st week in March. Like you guys, I began seeing mention of CarsDirect...gave them a call right at the end of the promotion. Due to a tight schedule in picking up the car as soon as possible, CarsDirect agreed to send the check for $960 made out to me directly to my home....got it this morning (friday) courtesy of FedEx!
  • frankrizzofrankrizzo Posts: 67
    out to you, or the dealer? My dealer wants my check to be made out to me, and I just pay them like normal. (Porsche is VERY picky about there being 3rd parties involved in sales of their cars, so he wants it to be Me, and His dealership on all the paperwork).

    (In case you are wondering why, Porsches are cheaper in the US than anywhere else in the world. And as such, the US serves as the delivery point for MOST of the grey-marketers around the world. Porsche doesn't want this going on, so they try to make their dealers aware of 3rd party involvement, and tell them to avoid it, or suffer penalties).
  • shawnmaloneshawnmalone Posts: 71
    When I called the Texas Attorney General, they said that Texas has a law which says that no one can sell cars in Texas without a franchised dealership in the state, which CarsDirect does not have.

    That's why CarsDirect's own website has a special caution specifically for Texas shoppers which says that their services are not available here.

    However, Michelle at CarsDirect said that despite what their own site says, she will help me buy another car. I already bought one Jetta through CarsDirect, and my wife likes it so much that she wants to buy one too.
  • frankrizzofrankrizzo Posts: 67
    They passed a law to protect local car dealers by forbidding internet car sales inside the state lines. This is getting absurd. The answer is, if you live near the border with another state, just go there and get your car. Of course, I am in the dark as far as how enforcement goes. I don't know what it would take to conceal a "Grey-market" car purchase.
  • tomcat1tomcat1 Posts: 8
    Since I wanted to pick up the car the day after it arrived at the dealership, and did not want to worry that the check might not make it there in time, I paid the invoice price by cashiers check made out to the dealership, and put the balance on my credit card. CarsDirect then sent a check made out to me which will cover the amount I put on my card. Worked out well for all involved. Hope your bimmer is back on the road soon!
    Regards,
    Tomcat
  • frankrizzofrankrizzo Posts: 67
    It looks like Wednesday I'll be able to get rid of this boat I'm driving, ('99 Mercury Grand Marquis), and get my baby back. I think that I'll have to get the check made out to me, I'll deposit it before going to the dealership, and just write them a check. Thanks for the info!
  • buckwheatbuckwheat Posts: 396
    Boy did this topic die now that they are not giving good old US currency away in an attempt to gain recognition. Apparently all things being equal this outfit is just another face in the crowd. Their website could do with some improvements, updating to include a number of 2000 models and they certainly could/should answer Email, alas maybe they think they have achieved what they set out to do.
  • JustinlJustinl Posts: 13
    I just checked out the CarsDirect.com website and what do you know, a Volkswagen Passat GLX for $100 over invoice. Not a bad deal!!

    Guess the "Cars at Invoice" promotion is not the only good deal that they have going. Not too bad of a price at all when most everyone else is charging full MSRP.

    They've got some really good financing info/rates as well.
  • JustinlJustinl Posts: 13
    I just checked out the CarsDirect.com website and what do you know, a Volkswagen Passat GLX for $100 over invoice. Not a bad deal!!

    Guess the "Cars at Invoice" promotion is not the only good deal that they have going. Not too bad of a price at all when most everyone else is charging full MSRP.

    They've got some really good financing info/rates as well.
  • ruskiruski Posts: 1,566
    yeah, once they quoted a 2000 Jag S-type to me for $210 over invoice. Also they listed all other Jags at similar too good to be true prices ($200-$300 over invoice). I guess, before me, they never tried to sell a Jag. When they poked around, they quickly updated all their Jag prices to be the same as MSRP and withdrew from a deal with me. And they still have not published the 2000 S-Type on their site.
  • rwkkbkrwkkbk Posts: 1
    I live in North Carolina. We are in the process of buying a Lexus RX 300 through carsdirect. I am just wondering if anyone in North Carolina or the southeast has had any experiences with carsdirect and were they satisfied? Is there anything I should watch out for or check out? I would appreciate any help or advice. Thanks.
  • KThomp100KThomp100 Posts: 62
    I bought my Lexus GS300 from them in May and they did a great job. I am in Seattle but they are in CA so it doesn't matter where YOU live, same great service for us all
  • pschiffepschiffe Posts: 373
    See my response 201 posted at SUV's board topic #354 for my experience purchasing a Lexus RX300 from CarsDirect.com.
  • rkprkp Posts: 1
    Recently used Carsdirect to buy a 2000 Toyota Sienna XLE in the Bay Area. Most dealers would not budge far below MSRP (popular and scarce van right now). Told Putnam Toyota that I would be willing to pay $1500 over invoice. They let me walk away without a fight.

    Subsequently, used Carsdirect to get a price of $1370 over invoice. Had to call them twice to get some attention, but they were great when they started working on it. They found the car I was looking for in about an hour. I put in a down payment directly to the dealer and will take delivery in two weeks. I will pay the stated price directly to the dealer, and it appears Carsdirect will subsidize the dealer directly for some additional amount (my guess is several hundred dollars).

    Seems as good or better than Autobytel, Autoweb and Carpoint with less hassle!
  • ndfonendfone Posts: 2
    I feel I should let everyone know about my slightly negative experience with CarsDirect. The staff was friendly and helpful, but I ultimately went with a local dealer.

    After looking at everything under the sun for my first vehicle, I finally settled on a new 1999 Nissan Frontier. I recently graduated from college, and so I qualified for an additional $500 college grad cash on the Frontier. After shopping the local dealerships, they wouldn't come down to my price. I never mentioned the college grad cash in negotiation, and didn't plan on doing so until we agreed on a price (it was strange that the dealers didn't know about it--I mentioned that I had recently graduated).

    So I tried Carsdirect.com. After filling out all the info, they called within an hour to confirm the online quoted price (the college grad rebate was not considered yet). They said they would locate the truck for me. I told them about the additional $500, and they said they would look into it.

    About three days later they called back and told me they found the truck I wanted, and the would have to subsidize the dealer $476 to keep my quoted price. But here was the catch: they used the $500 college grad rebate as cash to the dealer. Unlike other manufacturer's college grad rebate programs, Nissan's is handled by the DEALER, not the customer. But it is still Nissan's cash to you, so you should be able to negotiate a price and then mention the rebate. The dealer doesn't lose any money on the sale--you gain $500.

    Basically, Carsdirect.com opted to use that $500 rebate to lower their cost from $976 to $476. Had I been any other John Q. Public that hadn't just graduated college, Carsdirect would have had to pay $976 to make their guaranteed price. Why couldn't they extend that privelige to me so that I could take advantage of this once-in-a-lifetime discount? I know...it's just business.

    In the end, I bought from a local dealer because without that $500 rebate, Carsdirect was actually $100 more than what the local dealer offered. I stress again that the staff of Carsdirect was friendly and helpful, and I would still recommend them to the typical buyer. My situation was a special one, and so I chose the dealer.

    DannyL
  • hmerglerhmergler Posts: 85
    Ndone alluded to this is his post, but I'd thought I'd ask anyone else about their experiences or if they know how CarsDirect handles rebates.

    I looked up the price of a 1999 Ranger SuperCab XLT and the CarsDirect price is about $500 UNDER invoice. Using another buying service, I can get a price $60 less than that, but that would be including the current $1,000 rebate and a $400 college grad rebate. Since, I haven't said anything to CarsDirect about these rebates, can I get another $1,400 off the CarsDirect price?

    - The Merg
  • ndfonendfone Posts: 2
    Carsdirect definitely knows about the $1000--they take customer cash into account when they set their prices. They also claim to take dealer cash into account--but DO NOT tell them about the $400 college grad rebate--that's the mistake I made.

    But in your case, it doesn't even matter. Nissan lets the dealer handle the processing of their college grad rebates. If I understand Ford's program, once negotiate your price, you buy the vehicle from the dealer and never have to mention that you're a college grad. You apply for the $400 from the factory directly *after* you buy the Ranger. You send them proof of purchase and proof of graduation, and that's it.

    DannyL
  • dkfanndkfann Posts: 6
    I have read this entire thread and have seen no mention of this so I'll ask you who already know:
    What's the deal with the $250 refundable deposit that CarsDirect.Com says they want in order to get the ball rolling on my car? Who gets/keeps that money? What if they are unsuccessful in matching me with a deal I want? I am trying to buy a loaded 1999 Windstar SEL which has become end-of-the-model year scarce and CarsDirect is my last chance after having exhausted the options at all the local dealerships.
    Any comments or info would be welcome. Thanks.
  • ruskiruski Posts: 1,566
    They have finally added Jaguar S-Type to their website. CarsDirect price is actually more than the MSRP!!!
    My mother-in-law got $1000 off MSRP by herself!!!
  • mattmatt Posts: 2
    Just like Autobytel (or any other car buying company for that matter), CarsDirect.com is not perfect. I have heard the same story that Ruski tells from many people when talking about Autobytel. The bottom line is that you still need to do your own research and choose what is best for you. Sounds like rkp got what he considers to be a good deal on the Sienna. Great. Sounds like the deal on the Jag may not be the best one out there. OK. What, do you expect CarsDirect to have the best price on every car? Probably a little unrealistic.

    I used CarsDirect.com to get my '99 3.2TL at invoice. They were very prompt, professional, and courteous in the handling of my purchase. Of course this was a promotional deal and I don't expect to get this type of cut rate again. But, the next time I go to buy a car you can be sure I will check with CarsDirect.com AND Autobytel AND my local dealer. These car buying companies certainly can make it easier to purchase a car but the bottom line is that it doesn't replace shopping around for the best available price.
  • molliemollie Posts: 6
    Hi, I'm thinking of trying CarsDirect. I have not seen any post about trade-in, I guess you'll need to take care of your car on your own if you choose to use CarDirect? Or people here didn't have a car to sell?
  • hmerglerhmergler Posts: 85
    Mollie:

    With CarsDirect, you are still dealing with a dealership. Because of this, if you have a car to trade-in, you would do it when you go to sign the sales contract or pick up the new car. Of course, you could just sell it on your own or sell it to some other dealer.

    - The Merg
  • molliemollie Posts: 6
    Thanks Merg. Thought I might not see a dealer if CarsDirect does everything for me. It's nice to know that I can trade-in my car even though I may try to sell it on my own.
    I have sent the order to them on the internet, now waiting for them to contact me.
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