Is the Internet a place for all businesses?
Posted by: Curtis Stevens on November 23rd, 2009

Car dealers have been embracing the web for some time now.  Almost all consumers use the web the research a vehicle before making a purchase.  You can practically do everything except test drive the car.  Many dealerships have an exclusive sales team for the Internet site.  Even though most dealerships do not list any pricing on their site and if they do, it is the MSRP price.  However, you can generally negotiate with most dealerships through email and phone.  Man of those sales reps are salaried and are focused on volume and not high profit margins.  This could result in a big favor for the consumer.  One thing that hasn’t come to light and may never, is the actual buying of the car online, as if you were buying a product from Amazon for example.  If this capability ever came to light, you would have large ticket sales placed on credit cards, which most consumers probably do not have that kind of available credit.  The merchant may also have issues with their credit card processing provider for the large ticket sales are much riskier as consumers are well protected when it comes to credit card charges. So it is probably in the best interest of the merchant to never go down this road. Lastly, I’m not sure of how many consumers could even pay for a car with a credit card and pay the bill in full when it comes in.

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