Archive for January, 2005
Posted on January 16, 2005 at 3:22 pm by Jeff
In the last post I described (in a very generic way) how entrepreneurs identified they could use the internet to connect car buyers (consumers) and sellers (car dealers)…and hence, the “lead” and “free car price quote” were born.
Let’s talk a little bit about the process itself.
When you come to a site that is offering Free Car Quotes, you are typically greeted with some type of request for information. The most common information collected includes Vehicle Information (Year, Make, Model, Trim level, color preferences, options) and Personal Information (Name, Address, Phone Number and Email). You may also be asked about your Timeframe to Buy, Contact Preference (phone vs. email), and Payment Options (lease, buy, trade). Having been in the business (more about this later) I can tell you it is in your best interest to include accurate information (more about this later as well). Many people put in false information in hopes that they will get their “Free Car Quote” without having to give a valid phone number and email - sorry folks, that’s not how this process works. None of the Free Car Price Quote sites out there will provide you with an actual dealer quote (well, there is one example…keep reading) this needs to come directly from the dealer. Typically the only pricing information given by a Free Car Quote site is the MSRP (manufacturer suggest retail price) and possibly the Dealer Invoice. Once you have submitted your information you have become what we refer to in the business as a “lead”.
Your submitted information is now sent to any one of the following places:
1. Directly to a car dealership or car manufacturer (for example, Ford Corporate, and then to a Ford dealer).
2. A larger company that buys leads (I will talk about these in another post) and sends them to their own dealer network or to a car manufacturer.
3. Nowhere.
This process is very quick and typically takes only a matter of minutes. Follow along: you submit your information via the internet, the information you submit is validated (name, phone, address, email) to eliminate bogus requests, your lead is then routed either directly to a dealer or first to a third party (lead aggregator) and then to a dealer. Of course, if there isn’t a dealer servicing leads in your area, your lead ultimately goes nowhere and you will not get a phone call or email with your free car price quote.
Most of the lead aggregators out there do a very good job sending you an email letting you know if they did or did not have a dealer to take your lead. They also usually include the name of the dealership (or dealerships), the name of the internet sales manager at the dealership and address and contact information.
Coming up in the next post: Now what? Why do I want to be a lead? How do I know which dealer will get my information?
Posted on January 14, 2005 at 2:55 pm by Jeff
Chances are if you’re in the market to purchase a new or used car you’ve come across multiple websites offering Free New Car Price Quotes. What exactly is a “Car Price Quote” and how does it help you the consumer? We’ll get to the essence of that in this post, so brave on!
First a little bit of history…
In the past when you were shopping for a new car you probably drove from dealership to dealership test driving cars, picking up brochures and dealing with lots of, um, ‘interesting’ salesmen. Actually, chances are most people still buy their cars this way. But as Internet access has become more mainstream in American households and in the work place, more and more people are using it to read reviews, look at pictures, compare prices, build and configure cars with different options - essentially shop without ever setting foot in a dealership. But even with access to all of this information and technology you still need to visit the dealership to test drive the vehicle, touch it, feel it, smell it, and kick the tires. And (dread) you still need to sit down with a salesman to haggle over price. Blah! (unless you really enjoy it)
Nearly 8 years ago some entrepreneurs realized that consumers were using the internet to research new cars and that the car dealers 1. didn’t know much about the internet, 2. surely didn’t know how to market to consumers via the internet, and 3. didn’t have the tools and technology to interact with consumers via the internet. Many dealerships didn’t even have a website (and some still don’t). These same entrepreneurs knew that if they were able to identify consumers that were in the market to purchase a new car, or were just considering buying a new car, they could connect them (the buyers) with the dealers (the sellers) and maybe make a few bucks in the middle.
…to be continued.
Posted on January 11, 2005 at 3:14 pm by Jeff
General Motors has joined the foray of businesses joining the blogging world with their launch of the GM Fastlane Blog. GM describes this blog as:
“The FastLane blog is your source for the latest, greatest musings of GM leaders on topics relevant to the company, the industry and the global economy, and — most of all — to our customers and other car enthusiasts. We look forward to an open exchange of viewpoints and welcome your ideas and feedback throughout 2005.”
Most of the posts thus far have been from GM Vice Chairman Bob Lutz. This is a perfect example of exactly how cool blogs can be - where else are you going to interact with and exec like Bob Lutz? His current posts are coming directly from the floor of the North American International Auto Show located right here in my hometown of Detroit.
It will be interesting to follow the Fastlane Blog during the year to see if the exchange between GM execs and the general public stays fresh and engaging. Way to go GM!
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