NVDC: Navidec Announces the Driveoff.com Direct-to-consumer Car Buying Web Site
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NAVIDEC ANNOUNCES THE DRIVEOFF.COM
DIRECT-TO-CONSUMER CAR BUYING WEB SITE
CONSUMERS WILL USE DRIVEOFF.COM TO BUY NEW
CARS RIGHT FROM THEIR Desktops
TUESDAY, MAY 25, 1999 7:24 AM EST
- PRNewswire
DENVER, May 25 /PRNewswire/ -- Pioneering e-business provider, Navidec Inc.
(Nasdaq:NVDC), today announced the formation of a wholly owned subsidiary,
DriveOff.com Inc., that will provide next-generation Internet car-buying services.
DriveOff.com Inc.'s goal is to answer consumer and dealer dissatisfaction with the
existing Internet car-buying model. The subsidiary's premier web site, www.DriveOff.com,
is expected to launch this summer, enabling consumers to complete 100 percent of their
vehicle purchase transaction by visiting the site.
"The current model of merely selling consumer names to local dealers makes today's
lead referral web sites little more than electronic phone books," said Michael Kranitz,
president of DriveOff.com Inc. "Instead of relying on the traditional car-buying process to
close an e-commerce sale, DriveOff.com will allow consumers to purchase a vehicle in
the comfort of their living room rather than the pressure of a showroom."
DriveOff.com Inc. has validated both the technology and concept of the
direct-to-consumer Internet vehicle leasing model through a pilot program on its popular
leasing site, LeaseSource.com, since November 1997. Presented with limited makes
and models and full-deal disclosure, 75 percent of the consumers that completed a
credit application for deals offered on the site actually leased a vehicle through the site.
Superior Internet Technology
Beginning this summer, DriveOff.com will implement its world-class technology to
provide consumers with guaranteed pricing and monthly payment quotes on the fly. After
viewing an initial quote, consumers can alter important aspects of their deal, including
down payment, term length, mileage allowed on leases and even credit rating. This
provides an exciting and easy way to compare actual leasing and financing options on
their new vehicle.
"The DriveOff.com integrated technology system takes the mystery out of pricing and
budgeting for a new vehicle -- what you see is what you get, " said Hal Anderson, vice
president of technology for DriveOff.com Inc.
The Optimal Solution for Consumers
Visitors to the site who complete an online credit application will receive a credit
decision in less than one minute, on average. Once they select a deal, consumers can
visit their own secure Personal Auto Center from which they can monitor or change
vehicle and financing preferences or interact with a DriveOff.com customer service
representative.
After collecting a deposit from the consumer, DriveOff.com will either order the vehicle or
locate it using the company's proprietary Data Harvester application. The Data Harvester
allows DriveOff.com to securely access dealers' back-end systems and browse current
dealer inventory located anywhere in the United States. DriveOff.com then delivers a
complete closing kit to the consumer via overnight mail.
The closing kit includes a "DriveOff Draft" covering the full amount of the vehicle along
with all documents needed to complete the transaction. The consumer can leisurely
review the closing documents before picking up the vehicle. While the deal terms are
finalized with DriveOff.com prior to vehicle delivery, a participating dealer still meets the
customer in person to deliver the vehicle.
"Through extensive consumer and dealer research, we recognize the importance of
providing consumers with a friendly neighborhood place to service their vehicle after the
purchase -- who better than the franchise dealer from which they picked up the car to
provide this," said Ralph Armijo, Navidec's president and CEO. "There is great value and
efficiency in the existing dealer infrastructure. Therefore, we have no intention of
acquiring and shutting down any dealerships which would leave consumers without a
committed service source."
Dealer Support -- I.A.D.M.A.
DriveOff.com is supported by the Internet Automobile Dealers
Marketing Alliance (I.A.D.M.A.), a national cooperative of automobile dealers dedicated
to effectively competing in today's Internet arena. DriveOff.com and the I.A.D.M.A. have
entered into a long-term agreement that provides I.A.D.M.A. member dealers the
exclusive right to all sales originating from DriveOff.com and affiliated sites. In exchange,
the I.A.D.M.A. dealers will provide DriveOff.com customers with aggressive pricing on
new automobiles.
DriveOff.com offers I.A.D.M.A. dealers incremental sales without lead fees, monthly fees,
sales commissions or administrative costs. To dealers, DriveOff.com represents a way
to escape the burden of today's online lead- distribution services, which require them to
filter leads and implement costly Internet training programs.
Established Market Presence
DriveOff.com Inc. has more than three years experience providing cutting-edge solutions
to the online automotive marketplace. DriveOff.com will draw content and technical
performance from the company's nationally acclaimed USWheels, CarWizard and
LeaseSource applications. These products currently are used by CBS.CarWizard.com,
Excite.com, Netscape.com, Prodigy.com, WebCrawler.com, TheCarConnection.com
and WomenMotorist.com. DriveOff.com Inc.'s automotive content and tools are widely
recommended and referenced in media outlets including CNN, Fox News, USA Today,
Consumer Reports, The New York Times and Automobile Magazine.
Capitalizing on its established network and existing market penetration, DriveOff.com
Inc.'s network of 14 auto buying web sites will transition to the new DriveOff.com model
by the end of the year. In doing so, DriveOff.com will be able to funnel its nearly 200,000
monthly unique visitors into the new service.
Navidec Inc., based in Englewood, Colorado, is a pioneering e-business provider of
products and solutions that use web-based technologies to achieve business objectives.
From commercial web site development to the design and implementation of intranet and
extranet applications and tools, Navidec helps customers develop successful online
solutions. Navidec's wholly owned subsidiary, DriveOff.com Inc., focuses on the
automotive industry with its DriveOff.com, USWheels.com, CarWizard.com and
LeaseSource.com web sites. The company's corporate web site is www.navidec.com.
All statements in this press release, other than historical facts, are forward looking
statements. These statements are based on certain assumptions and analyses made by
Navidec in light of its experience and its perception of historical trends, current
conditions, expected future developments and other factors it believes are appropriate
under the circumstances. Such statements are subject to a number of risks and
uncertainties, including general and economic business conditions, demand for
automobiles, competition from other automotive online services, market acceptance of
the Company's online automotive solutions, the ability of Navidec to reach agreements
with local media partners and other risk factors indicated from time to time in Navidec's
filings with the Securities and Exchange Commission. Those filings are available online
at www.freeedgar.com.
SOURCE Navidec Inc.
05/25/99 /CONTACT: Andrea Pearson or Andy Mountain, both of Navidec Inc., 800-797-7565; or Steven
Canup of Financial Relations Board, 310-442-0599, for Navidec Inc./
/Web site: freeedgar.com /Web site: driveoff.com
/Web site: navidec.com (NVDC)
CO: Navidec Inc.; DriveOff.com Inc.; Internet Automobile Dealers
Marketing Alliance ST: Colorado IN: CPR MLM AUT SU: PDT
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