Car Dealers vs the Web: GM Shifts Toward Online Purchasing 160
cartechboy writes "Car dealers may be in for a new battle, and it turns out existing car manufacturers are joining the fun. Tesla Motors began the rebellion by trying to sell electric cars directly to buyers. Car dealers have fought that effort state-by-state and even complained to the DMV about Tesla's website. But things just got a little more interesting. General Motors announced plans to expand its new web-based shopping tool (aka a shopping web site) that allows customers to bypass showrooms when buying new cars. The idea is to use the Web as a giant test platform to see if the automaker can better target people who use the web to buy things. The catch is that the web app, called 'Shop-Click-Drive' will allow users to do almost everything they'd do at a dealer: customize the car, get pricing and financing and even arrange for delivery. But then when you push the button, your "purchase" will be routed to GM's network of 4,300 dealers, so you still have to visit a local dealer to sign on the dotted line. Even with this limitation, the move is still making dealers nervous. GM dealers aren't required to participate in the web-based test, and company officials say they have had some dealers turn it down."
Re:Good riddance ... (Score:5, Insightful)
Re:Good riddance ... (Score:4, Insightful)
This is a GOOD thing (Score:5, Insightful)
Even though you have to buy from a dealer, this new GM website means you get exactly the car you want with the extras you want at a price that is set before you even set foot on the dealer lot. No negotiating and no up-sell.
Which is exactly why some dealers dont like it.
Re:Yep, buy on the web, at full MSRP. (Score:5, Insightful)
Re:This just in... (Score:5, Insightful)
GM is functionally incompetent when it comes to the internet. Tesla is new, small, agile, and responsive to the market.
Well Tesla has, what, one model, with very few options available. More coming, sure, but today, its pick your color and battery size, and send a check.
With any of the other big manufacturers, the combinations are almost endless. Engines, transmissions, rear ends, tires, interior trim, exterior trim, across maybe 10 or 30 models. Its a whole level of scale. They have never been set up to do this on a massive scale. Even the dealers need hand holding when ordering cars. Dealers typically order from a pick list of pre-configured models, of what they think will sell in their area.
When you come kicking tires, if they can't find a car you want on their lot, they might check other dealers, but sooner or later you end up settling for something handy or going for a custom order. And custom orders aren't quick through any of the big dealers. It can take a couple months easily, and if you are near the end of a model year you are SOL. So most people settle for what's on the lot.
Tesla was set up from the beginning to custom build from a SMALL selection of models. Detroit was set up to pre-build bazillions of standard models with a very few custom orders.
Still you have to give them credit for trying. You can already "custom build" by picking package options from most manufacturers. (Not with anywhere near a desirable level of granularity.) But you are going to go through a dealer somewhere along the line.