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Comments
so that I could get my car at noon and hopefully go to work for the remainder of the day. This is what happened:
Today:
10:00am Monday rolls around..and I decide to call the dealer just in case. They said that they still haven't received a check! Of course they didn't bother to call me. So I called Carsdirect and they told me that they didn't reveive the check either!?$ WHAT??? Vern, from CD told me that they did get the check on Friday. Vern told said he'd find out what happened..he called back in a few minutes saying that they have mistaken my name for some one elses and that they haven't received the check yet.
This cost me 1 day of work which already offset the price of the car by a considerable amount.
Why couldn't Carsdirect call me on Saturday to let me know that they didn't have the check and that they have made a mistake?? This has really upset me, especially because I was so upbeat all weekend to get the car today. I'm very dissapointed.
Vern said that they'd electronically transmit the funds to my dealer once the check is received. Even if they get the mail today..which would be no earlier than 5:00pm here in Vermont..It would be impossible for me to get my car today. In other words..I've wasted a complete day at home thanks to their false information and failure to let me know after they've discovered the error..if they actually did discover the error.
Very agitated customer so far..perhaps I'll feel better if I get my car tomorrow. I hope nothing else goes wrong but I'm very worried.
CARSDIRECT <------I hope your watching this.
Joseph
First, there is one unbendable rule in the car business: ALL PRICING (like the old saying about politics) IS LOCAL. That doesn't have to mean local as in 10 miles from your house, but certainly regional as in a 500 mile radius. All of the online ordering outfits have dealers they do business with, and depending on the car and model you are looking for, AND THE AREA OF THE COUNTRY YOU LIVE, there may or may not be a good deal to be had using the various web services. The best advice seems to have been repeated multiple times above: use every source at your disposal (web, newspapers, friends, rumors) to get a fence built around the question of availability and price in your region, and then try to get yourself to some dealers in your area and go eye-to-eye. You may come back to your computer and go with one of the web services, or you may find you can do just as well (with fewer complications) working at the dealer level.
As you can see in the posts, even a single service like CarsDirect is all over the map in terms of prices quoted and the hassle factor in getting a car. If you belong to any organization that works with fleet managers at new car dealerships (AAA, AARP, Credit Unions, etc.), start with that person ALWAYS when working at the dealer level. They know what the dealership will sell the car for and are unlikely to jerk you around with the good cop/bad cop routine.
At the moment, we are seemingly at one of those points in history when the promise of what the technology can do is well short of what it is capable of, and what you will see just a few months and years down the pike. Everyone in the car business knows that you ignore the web's power at your peril, but no one seems to have found the right formula yet. The biggest obstacle is the maze of franchise laws in this country that keep the actual car makers from dealing with you (and the selling services) directly...there are various plans in the works to try to improve that. In the meantime, you are still going to be stuck with lots of phone calls, computer time, and leg work if you really want the "best deal".
Sorry for rambling on, but a final plea to all who post here: Please tell us WHERE in the nation you reside. It will make the discussion more useful, I think, for the reasons noted above. Thanks.
John In Northern Calif
playing games ("Internet invoice figures are wrong"; "I have to check with my manager") with me so last night at about 9:30 p.m. I ordered the 2WD Montero Sport XLS w/ premium package through carsdirect.com for $28,240, which is about $800 less than the salesman's last offer.
The automatically generated e-mail stated that a
carsdirect representative would call me within 2
business days to confirm the order. I got called
much sooner: 9:30 a.m. the next day. The advisor
(Jon Jennings)seemed friendly and competent. I missed his first call and he returned my voice mail message within 15 minutes, and then gave me his e-mail address too.
I am supposed to hear back from him no later than tomorrow regarding the delivery date of the vehicle.
As long as the vehicle is delivered in a timely
manner, this will be a great buying experience.
WHAT DID YOU PAY - IF YOU DON'T MIGHT ME ASKING...
THANKS
I started out with Todd, had a short but intense conversation with a guy named Robert, then went to Denise, and finally to Phillip. Phillip Reed is a great guy to deal with, he has generally given me anything that I have asked for, and usually in a timely manner. So, through all those people, and all this time, they never tried to renig on the deal, change the terms, or anything shady. It's been a bit trying at times, (especially during the conversation with Robert), but all in all, it was a good thing!
I leave to get the car in about 4 hours!
I started out with Todd, had a short but intense conversation with a guy named Robert, then went to Denise, and finally to Phillip. Phillip Reed is a great guy to deal with, he has generally given me anything that I have asked for, and usually in a timely manner. So, through all those people, and all this time, they never tried to renig on the deal, change the terms, or anything shady. It's been a bit trying at times, (especially during the conversation with Robert), but all in all, it was a good thing!
I leave to get the car in about 4 hours!
Here's what happened. First, I sent the mail to the office location on the contract CD sent me to sign. Turns out..that address is incorrect because CD has recently moved to a different address. Vern, the CD representative I've been working with said he wrote down the correct address on the fax cover page that came with the contract. It turns out he was right. I didn't think that the address on the contract was different at the time. Well, it's October 22 now and CD still didn't get my mail?? CD did make mistaken a letter for mine. They told me and the dealer that they received my check and that they'ed fax the letter to the dealer overnight. I took a day off the next day expecting to get my car but I never did. Turned out the mail was from someone else. Boy was that a let down. Anyway..CD apollogized which is very important to me and I suppose everyone makes mistakes.
I put a stop on the check two days ago, and today my bank electronically wired CD $25,692<-my car price + $149<-doc fees to dealer.
Vern left a message at home telling me that they received the money and that they'd mail the check overnight morning mail to Maine where the car dealer is. Vern from CD told me that he worked it out with the dealer and that I would receive my car delivered via flat bed to my apartment on SATURDAY..thats tomorrow people. I sure hope he's right because I've waited too long for this car.
I've actually contemplated cancelling the deal and getting a 2000 HONDA EX from a local dealer because it seems to be impossible to get a Camry quickly. None in the local area.
Well, we will see tomorrow. I will be very dissapointed if I'm not driving a 2000 Camry XLE V6 tomorrow. VERY dissapointed. So far, CD seems to have been polite and courteous. Lets see if they can deliver. I sure hope so.
CARSDIRECT<-----I HOPE YOU"RE WATCHING THIS.
Joseph
PS.
I hope my car gets propperly prepped, washed, waxed, and a tank of gas. This was promised to me. I wish I could get some proof that the dealer prepped the car. Do dealers provide documentation for this? Anyway..the car better be MINT or else I will not sign the papers.
I had trouble sleeping last night out of nervousness, hopping that everything would turn out right the next morning(today). Yesterday, I was told by CD that they've received my wire of $25,840(including doc fees to dealer) for a 2000 Camry XLE V6 with HZ package, TC, MG, and Wheel locks. Vern from CD assured me that they would FEDEX a payment to the dealer priority mail to Emerson Toyota in Maine, the Dealer that would trade a car with a Dealer in Mich to get my Camry and deliver it to me via flat bed to my Apartment in Vermont. Vern told me that he spoke to the people in Emerson and they've agreed that if the check was delivered on Saturday morning, they would get me the car ON SATURDAY. I spoke to Mike from Emerson, a very nice and polite sales gentleman on Friday to make sure everything would go well the next day. He agreed that he's talked to Vern from CD and it was all set up to role if they received the check. I was so happy and excited, unfortunately this only increased my dissapointment.
Here's what happened today. I woke up early Saturday in expectations of a call from Emerson
to set up the time of delivery. Never received a call. I called Emerson at 9:40am. Spoke to Mike, he said that he still hadn't received the check, and that FED EX usually gets there by 10:00am. It wasn't quite 10:00am so I waited till 10:30 when I started getting worried. I called the 1-800 FedEx number and inquired as to what time a delivery would arrive at Maine from California..they said around 12:00 if it was priority mail. So..I waited till 12:00. 11:30..still no call. I called CD to find out the tracking number of the mail..spoke to Hugo. I told him the deal and he said to call back at twelve if the mail still didn't get delivered. Of course 12:00 noon comes around on this gloomy Saturday morning and I still hadn't received a call.. I didn't know if Emerson received the mail..hesitated to call them since they seemed agitated at my calls..and they did say that they would call me if they got the check. I decided to call CD. I spoke to Bob the manager at CD. He said he'd call me back in a minute. He did and said that a check was sent priority mail for Saturday delivery. It should have gotten there by 12:00..if it wasn't priority..it would
get there by 1:00pm. Bob said that he spoke to Emerson and they said they'd see if they could deliver the car to me anyway if CD provided a fax proving that the check was sent priority mail. Bob said he would do this and keep me posted on the progress of the transactions. Bob indicated that the only problem now was whether or not Emerson could find the resources to get my car at this late hour since they were expecting the mail in the morning. I must admit that Bob impressed me with his politness and courteous efforts. I truely believe he was doing his best. Well, I figured Emerson would call me any time now since it seemed like they agreed to deliver anyway without the check. I wated till 12:45pm. No call. I called Emerson to find out what happened.
I spoke to Mike, but he said he hadn't heard from CarsDirect. It turned out it was Larry at CD that spoke to CD about 40 minutes ago. He said that it would be up to his boss and he'd have to clear it with the Dealer at Michigan as well as make sure the deliverer guy was still there on hold for my delivery. Bob said he had 2 customer and would have to speak to the boss at Emerson and the dealer at Michigan before he could let me know if I would get my car on Saturday. BUT, I thought I was a customer??? Fine,..I waited..what other choice did I have. And I waited..till 2:00 pm. on a Saturday..Haven't done nothing all day..not even taken a shower yet. I called Emerson and asked for Larry. He said he was still working with some customers but has passed the issue to his boss and hadn't the time yet to speak to him. I asked to speak to the boss himself. When I did..the boss seemed very polite..at first. He explained the situation to me..that it would be against edicate to call the dealer from where the trade was to be done on a Saturday because there were too many customers. Wasn't I a customer, I asked but then he proceeded to instructed me to call CarsDirect directly instead. He instructed me that I would have saved my self hassel if I delt with him directly..but here he was speaking to me in a rude tone. I told him to calm down and keep polite, and he did thankfully. It was very clear that I am not going to get the car today..and will probably have to wait till Monday. Fine..but being treated respectfully is of UPMOST importance! I told him I understood his situation and sympathized with it. I'd wait till Monday.
So it seems that the BIG day is once again pushed back another TWO days till Monday. How many out there think this deal is gonna pull through. At this time I've generated huge doubts. If I don't get this car on MONDAY..I WILL cancel the deal..and go strait to the local Honda dealer and purchace a 2000 Honda EX V6 period from the dealer directly.
I don't blame Carsdirect totally. They have been extremely polite. Very curteous. I believe they did their jobs very well..and encourage them to grow more efficient. BUT..the bottom line is..doing interstate business across the nation has it's drawbacks to the consummer. On one hand..Carsdirect eliminates my contact with the dealer..a BIG plus since most dealers are very disrespectful and Carsdirect has proven to put the consumer first in this respect. My hat goes out to Vern, and Bob, and Hugo..these people at CD were really nice..never getting out of line. But on the other hand..elimination of contact with the dealer creates uncertainty since it's the dealer who has the car..or must deliver the car. Furthermore..when someone on the East Coast deals with CD on the West Coast..the 3 hour delay proves very frustrating. I have to wait till 11:30 to speak with my representative about details of my purchace..and any actions there takes an additional 3 hour delay over hear..thats 6 hours waisted which increases the possibility of a full day's worth or more of delay for a complete 360 communication, or transaction. I have not mentioned the anxiety factor of dealing through the internet for a purchace of tens of thousands of dollars. I believe that these types of transactions are the ways of the future..and encourage them though.
Anyway, I've waited this long and I'm willing to wait till Monday. I hope everything goes well, and I thank all of you that wish me well. I especially thank EDMUND to allow these types of consumer communications. It is a great service for us to learn from each other's experiences.
Joseph
in Vermont
FedEx offers Saturday delivery but at an increased cost. If it was sent FedEx you'll need to verify that the Saturday Delivery box was checked and the additional charge was paid. Get the airbill number from the shipper and you can track the shippment via the FedEx web site.
Most Priority Mail is two or three day delivery with no specific delivery guarentee. They also have an option that is next day. I'm not sure if Saturday delivery is a separate option or not. You'll need to ensure that the package was shipping "next day" and check to see if the Saturday delivery is separate. You might check the USPS's web site for that. The USPS has also just added a tracking feature to Priority Mail so your package may be trackable with them as well. Check with the shipper for a tracking number.
Thanks for your observation.
Joseph
P.S.
I do know that I will very likely cancel this deal if I don't receive my car on Monday.
Hey guys..see my experience in the other Carsdirect forum for a different twist on what can happen when dealing in interstate commerce across the nation.
Joseph
in Vermont
Ask CD to fax you their copy of the outgoing airbill. It'll have the tracking number on it and you can see for yourself, via the FDX web site, if they did indeed ship your check out on Friday.
with up front pricing. CarsDirect will find you a car at a Dealer near you with free delivery to your home if the Dealer isn't nearby.
The entire process of executing this service is a liability of CarsDirect once a deal is made with a customer. How well CarsDirect or any company executes it's promise of sale is directly a reflection of that company. FedEx is merely a means or tool that CarsDirect uses in order to provide it's services. Failure of a tool does not excuse any company from the bottom line delivery of services or goods for that matter, just as toyota is not obsolved if a car breaks down due to
faulty parts built in a different company.
That doesn't mean I can't take things into perspective. But I also take the whole process into perspective. I ask myself...was this whole process worth it? I have to ask myself..had I known it would be this difficult to get a car for money which has been at hand, preapproved at my bank, for weeks, would I have chosen this means of buying a car? This is the painful question I must weigh and take into account. Whether or not CarsDirect is at fault is irrelavent from this fundemental perspective. The hard and cold bottom line. That's what counts. I've been patient in this process, but I'm not sure I can wait longer than Monday. I need a car. It's getting cold up here in Vermont, and the bus is a 3/4 miles away from my house.
Joseph
in Vermont
Good luck on Monday Juzef, you definitely deserve a medal for all you put up with!
Dan
P.S. If you do cancel and run over to Honda, make sure you put the Honda guys through the mill and get the best deal there
Dan
Good luck, man.
took delivery 2 weeks ago. but up until today, neither the dealer or I have received the check
the dealer made me write a check for the difference btw CD quoted price and dealers selling price. I'll let everyone posted
They are not a sham at all. They are trying to
set up a new business model for selling cars.
Through August when I placed my order, Carsdirect were willing to subsidize the price of a car in return for making the deal. They don't seem to
bargain as hard as I might have, but the $1200 they added meant that to me I couldn't have found
my car cheaper.
Their basic idea is that if they can sell many units with their new business model it will be the basis of a new .com IPO on the NASD, which will bring back a lot of investment capital--more than enough to offset the loss they are currently running. Given the state of the stock market its a fine idea. Will this marketing model have long term prospects? For the moment it doesn't really matter--they just need to move cars now to run the
IPO in the next few months. So if carsdirect gives you a good price then just take the gift and
say thanks!
Jusuf, its too bad that things haven't worked out
for you (or have they by now?). Basically you picked model that was too popular. You have my sympathy, because when I dealt with them it was clear that if anything had needed the slightest bit of special attention they would have messed it
up.
Good luck everyone!
They are not a sham at all. They are trying to
set up a new business model for selling cars.
Through August when I placed my order, Carsdirect
were willing to subsidize the price of a car in
return for making the deal. They don't seem to
bargain as hard as I might have, but the $1200
they added meant that to me I couldn't have found
my car cheaper.
Their basic idea is that if they can sell many
units with their new business model it will be the
basis of a new .com IPO on the NASD, which will
bring back a lot of investment capital--more than
enough to offset the loss they are currently
running. Given the state of the stock market its a
fine idea. Will this marketing model have long
term prospects? For the moment it doesn't really
matter--they just need to move cars now to run the
IPO in the next few months. So if carsdirect
gives you a good price then just take the gift and
say thanks!
Jusuf, its too bad that things haven't worked out
for you (or have they by now?). Basically you
picked model that was too popular. You have my
sympathy, because when I dealt with them it was
clear that if anything had needed the slightest bit
of special attention they would have messed it
up.
Good luck everyone!
Put it on the record, I did receive my car on Monday, 10/24/99 at 9:00pm, after placing an order with CarsDirect signing a contract with them on October 8th. It was washed, not at the dealer but by the delivery man by hand?? That was a bit odd to me..but Vinny and Mike at Emerson said he was a professional touch up technician. Well, the car was clean..had some small stickers on it here and there. The floor mats were still in the trunk along with another package. It was a heavy long and sqaure cardboard box. Wonder what it is. Can any of you guess before I open it tomorrow? I was too tired to find out. There was also some plastic still on some parts of the car but I don't mind. What did disturb me is the fact that the sticker tag with the invoice, msrp and a detailed options list was not on the car. WHY NOT? I did check the car semi-thoroughly and it seemed to be the car I ordered. Sunroof, Leather, 16" Alloy Wheels with locks, Mudguards, Traction Control, 6CD Changer, JBL.. So I was confident that this was indeed the car I ordered to the T.
I also wonder why it took so long to get to me? The delivery guy and woman told me that they left Maine at 11:30ish, but Vinny at Emerson in Maine told me that they left around 8ish(am)..but he wasn't sure. It only takes about 2..say 3 hours to get from Maine to Mass. Say it takes 4 hours to get from Mass to Burlington VT. If you add an hour say 2 hours for that carwash it's about 9 hours. I suppose 9:00pm does sound right..wow.
This process of buying this car took a bit longer than expected, and it was a trying wait on my nerves and bloodpressure..but I did get the car. It's funny, I don't feel that great right now. Not excited or even very happy. Mostly I'm tired. Perhaps it's because it was a long weekend. Maybe it's because I've been through too many ups and downs in this experience. Or maybe it's just because I got the car at 9:00pm, couldn't see the car very well. I had to drive it to a gas-station while the delivery man and a lady, his wife I suppose, some very nice people from what I could tell, waited till I got back with my answer of whether I wanted it or not. (I took the car for a test drive.)
Well..I guess I got the car. I don't feel bad or anything..it's just funny how I don't feel happy.
Maybe it's because I'm too tired. Saturday wore me out waiting for it to be delivered as promised only to find out that I wasn't getting it. Gary and a couple of other jerks from work will owe me a soda for the bet they made that I wouldn't get the car today as I claimed. Some predicted I'd get it several years from now! I don't blame them since I've been wrong about the delivery date more times than I'd like to admit thanks to CD. But I look foward to that free soda.
This morning Vern at CD told me today, that if it made me feel any better to know, my experience is not the typical way this process goes. I believe him, but I didn't feel any better. The main thing is I got my car. Would I do it again??
Probably.
I would have wired the check from the start instead of relying on any physical mailing system though. Besides the painful ups and downs that are to be expected I suppose, CD offered me a quick and easy method of purching a car without, or I should say, with the reduced hassel of a dealer. No one as of now has this automobile in the near vicinity(100mi or so) so CD did find the car for me and get it to me. I would be impressed if I weren't so tired and exhuasted from the process. I guess I'm a bit less than adequately satisfied. No more no less. Things may go better for others dealing with CD.
As for the risks? Life is a risk. Some times you have to go with your decissions and take the good with the bad.
Thank you wenyue for your continual support and advice. Thanks everyone for rooting for me. I hope this documented experience will help others in one way or another. I'm gonna get some sleep now so I'll have a brand new and fresh look at the car in the morning. It will be nice driving to work.
Sincerely,
Joseph
in Vermont
(not 24)
Dan
And what just TOTALLY WOW'ed me is that sales tax you paid!!!!! -- $2.00!!!!! Where do you live?! In Michigan (where I live), I would have paid $1,615.5 in tax alone. I should buy my next car where you live.
My guess to what's in that long box? Hmmmm... maybe the car's invoice sticker. Along with something for the alloy wheels, and maybe few plastic clips that you put on the bottom of the car to tow a trailer. Just a wild guess, let us know.
Congrads again. Have fun driving your brand new car to work tomorrow, and drinking all that free soda.
John In Northern Calif
the prices were guaranteed prices and included cash gifts of over $1000 (I have seen as much as $3000 mentioned on this board). Today while they are still seeding the market, and before the carsdirect IPO, they are still making it worthwhile to be a carsdirect.com customer. Not quite as good as before September 1st, but still excellent.
The advantage is both on price and no hassle. At some point, the price advantage for the agressive
buyer (like me) will have to diminish because
giving money away is not a business plan. But for
my sweet mom carsdirect.com is a dream. When she buys her next car, she will be happy to use them. She will get a price that hard bargaining could maybe lower by $500 and she won't have to deal with the salesmen at the dealership. It will be just as easy as walking into the dealership, smiling at the salesmen and asking "How much?"
and $1500 less.
I am a very satisfied carsdirect.com customer
and I wish them well.
The advantage is both on price and no hassle. At some point, the price advantage for the agressive buyer (like me) will have to diminish because giving money away is not a business plan. But for my sweet mom carsdirect.com is a dream. When she buys her next car, she will be happy to use them. She will get a price that hard bargaining could maybe lower by $500 and she won't have to deal with the salesmen at the dealership. It will be just as easy as walking into the dealership, smiling at the salesmen and asking "How much?" And it will cost her $1500 less.
I am a very satisfied carsdirect.com customer and I wish them well.
Over the long term they will do the car
buyer a tremendous service, but aside from the
general good they are doing by making car salesmen
suffer lets examine their short term plans.
1) Sell 50,000 cars (a hypothetical number) and
offer an average subsidy of $1000.
2) Go to investors on Wall Street and show them
how good carsdirect.com is at selling cars over the internet. Sell stock--say 10 million shares
at $10 a piece--collect $100 million. Watch
share price shoot through the moon and everyone
gets rich! Yahoo!
Obviously, there is some risk involved and the
initial outlay is expensive, but these guys have
very deep pockets.
The price I've listed above does not include the 6% sales tax I have to pay as well as registration and Inspection..because it was an out of state sale.
Thank you all for your congratulations to me.
Sincerely,
Joseph
in Vermont
P.S.
It should be noted to people out there considering these new means
of commerce that there is not yet any substitute for a visit to the dealer to actually see and test drive a car. I would not have known
the real differences, that is what matters to me, between the Honda
Accord and the Toyota Camry for example, had I not actually spent
the time to drive both of them. So..I would urge people to utillize all
means available. These new ways of buying are enhancing
the consumer's power in a revolutionary way. I wouldn't want them to replace existing infrastructure; to do that would eliminate or reduce our options to what we have now. The key is diversity and multiplicity of tools. It's exciting times.
Good Luck all you prospective buyers.
Also, how is service at the local dealer? I'm looking to buy an I30t,a ES300. If I buy locally, the dealerships promise a free loaner when I bring the car in for service appointments. I'm wondering if they would do that for a car they didn't sell, or would you go to the bottom of the list? Any thoughts?
Ro
I actually wrote all that stuff up in a post that ended
errased because I accidentally pressed BACK on
the browser. It's probably a good thing since it was a
pretty long post as I usually go on and on.
The box in the trunk was.....
The trunk rug. I should have knows because
the floor mats were in the trunk too for inside the car
and they were small compared to the trunk space.
So..it was just a big rug with a silver TOYOTA label
on it. It actually looks very nice. No big surprise.
By the way..I've received many compliments by even
Camry pessimists, about the looks of this Camry. They
say it looks a bit on the elegant side compared to the Honda.
I think it's a sweet car. It drives like a dream. I'm happy. It's
definately not a flashy fancy car. It's refined and some have
said a bit sporty with the alloy wheels. I've received compliments
on the inside as well. One was surprised how much he liked the fake
the fake wood trim. He said it actually looked very nice.
I'm happy now. I give all the credit to Toyota..great job!
Joseph
in Vermont.
Glad you are getting praises for you car. It's an Camry XLE, with the emphasis on "XLE". That's pretty much as luxury and as refined as main stream family car comes. Have fun in the break-in period.
Say, did you ever get that free soda at work?
Buy your cars from them if you get the deal that you are looking for...just keep in mind that we are in a very changing envronment..
The car is being flat bedded to my home from 150 miles away. I am not to worried because I have my certified check and did not have to send it in to Cars Direct. I will being paying the dealer in full when the car is delivered this saturday.
I will keep you posted but so far it has been a good experience.
I also agree with jmurman42 that IPOs are not as easy as they sound. For someone who's doing a lot of security analysis and valuing models, I know that it's not easy as just coming up with a $10 price per share and boom you get $10 million.
which has very deep pockets--one of its principal
investors is Michael Dell. They don't own dealerships. To the best of my knowledge they don't charge dealerships for referrals either.
They seem to keep tabs on dealer inventory and
when they find a match they negotiate with the
dealer on behalf their customer. They also
cover the difference between what the dealer will
take and what they have promised the customer.
Two points:
There is certainly a good market for this kind of service. Many people don't like car salesmen. (!)
If the stock market bubble holds until the
carsdirect.com IPO the return will also be enormous. Clearly if the IPO had been 5 months
ago the company could have a market valuation
of several billion dollars based on an initial
investment of $100 million. Again, these numbers
are completely hypothetical and I have no idea
what the balance sheet looks like, but this seems
to be the spirit of things.
money right now. Eventually they will settle on
a low profit--say $300 for themselves and $300 for
a dealer they work with consistently. Both they and the dealer will make money on volume.
In the meantime they don't need to make money.
Amazon.com will never make a penny in profit--
and their first employee stock boys are worth $3 million on paper. I actually believe cardirect.com can make a profit in the long run. Like you wrote earlier everything is in play in the car business and it can work out a number of different ways.
either of these benefits--are they only for new
customers or is your company extending them to
earlier buyers also.