Car buying websites

It's no secret that ever since the Credit Crunch the motor industry has been in turmoil

. Manufacturers, Wholesalers and even Showrooms all heavily dependent on finance took a heavy blow in 2007 when the banking system ground to a halt and fear gripped the markets. For dealers 2007-2010 has been the toughest test of their metal ever, with cars hard to come by and finance for customers even harder.

Once most manufacturers put a stop to production fleet owners where forced to hold onto their cars for longer and car owners found it almost impossible to replace their cars. The flow of both new and used cars slowed to a trickle and for the first time in living memory dealers saw their stock appreciate in value. It was time to get inventive or face the prospect of going under.

Selling your car online wasn't a new concept in 2007, their where already a handful of sites competing for the cars (at least one of which we had developed for a client), but now almost every dealer was in desperate need of stock and so car buying websites started to popping up everywhere in the desperate hope of netting the stock needed to keep them afloat. And so during this time we became involved in the development of a number of car buyer websites.

Very quickly we learnt that the website itself could not 'buy the car for you' but only generate a lead for the car. After countless revisions of the code to value a car it became obvious that at the time of valuation you would not have enough information to generate an automatic valuation which was an accurate value for the metal. The 'true' value of the car is really decided by the 'eye of the beholder'.

To complicate matters even the most savvy and knowledgeable visitors almost never correctly identified cars manually, which can have a significant impact on an automatically generated valuation extreme for some models. However this can be avoided by using Car Lookup services (such as those provided by HPI and Car Web) to identify the vehicle and get access to key DVLA details. There is a cost per valuation but if you are serious about buying cars online, the cost is acceptable.

Eventually the model we settled for, which seems to be common, was to generate a rough value for the vehicle and have staff at the dealership follow up people who decline the rough estimate in an effort to come up with a more accurate value. It is labour intensive but can be a source of reasonably priced cars for dealers.

New website however will have an uphill battle today. The key phrases for these websites are now heavily contested and some are so well established that getting your website noticed will take a lot of work and a lot of money.

However there are still opportunities. For example a site we are about to release The Car Arena will have thousands of dealers all over the UK placing bids for cars via its portal, giving dealers access to these cars without the need to set up a car buying website and car owners potentially hundreds of offers for their car via one website. Another which is in development at the moment will do much the same for trade cars as the car buying websites for the public have done in recent years.

And so I suppose it is as true today as it was in 2007, if you want to buy cars online successfully you will have to get inventive!

Car buying websites

By: tc software

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