NEWS! CarMax (KMX) Addesses Consumer Needs with NEW WEB SITE!
New Survey Reveals Consumer Concerns With Web Car Buying; CarMax(R) Introduces New Web Site That Addresses Consumer Needs
RICHMOND, Va., March 14 /PRNewswire/ -- A new survey indicates that more than two-thirds of all web car shoppers are
unable to obtain needed information or buy a vehicle at the price quoted on today's sites.
Survey Reveals Lack Of Information, Actual Price Frustrates Online Shoppers
The findings were provided from a random sampling of more than 1,000 Internet online car shoppers in a survey conducted for
CarMax by Digital Marketing Services. Of those polled, 61 percent did not find the information needed to purchase a car. A
key part of the problem was the inability of consumers to quickly get a firm price online. While 94 percent of those polled
desired firm online quotes, only one third (or 37 percent) found them online.
Most Quoted Prices Change When Shoppers Visit The Dealer
Perhaps the most disturbing finding was that even when firm prices are quoted on Internet sites, most consumers found they
could not purchase the vehicle at the quoted price because of traditional dealer pricing games that occurred when they visited
the dealership to pick up their car. Most online car sites act as intermediaries to traditional dealers. The reliance on dealers and
the traditional haggling processes associated with them is the source of most consumer concern. Nearly three fourths (or 72
percent) of shoppers, who pursued buying a car using the Internet, found that the online price had changed when visiting the
actual dealership.
Survey Highlights Lack Of Timely Response To Consumer Inquiries
Key findings of the survey offer additional evidence to support the notion that the absence of timely, comprehensive information
about vehicles and prices are at the heart of consumer discontent. The poll found that response to consumer inquiries are
typically longer than 48 hours. Half (49 percent) of the group requesting additional information waited two days or more to
obtain it.
CarMax.com Is Superior At Addressing Consumer Needs
Austin Ligon, president of CarMax, commented, ``This survey confirms that consumers want an online buying experience
where prices are instantly available and all information can be easily accessed. CarMax.com provides firm prices, detailed
information and easy to use comparisons on actual in- stock inventory without requiring a consumer to provide confidential
information or contact a salesperson. We give the consumer open access to all of the details they need 24 hours a day.'
Lee Blue, an information technology manager in Houston, Texas, had this to say about the new CarMax.com site, ``The site is
very intuitive. It understands what the customer expects in a vehicle search and makes it easy for them. I especially liked the
ability to search by make, model and location. CarMax.com provided all the details I needed, at the low price I wanted to pay
for my Ford Ranger truck.'
New CarMax.com Meets Consumer Needs Better Than Most Sites
The chart below, divided into the top direct-purchase and intermediary sites, illustrates how CarMax.com gives consumers the
best possible online buying experience for both new and used cars.
Comparison of Online Pricing and Inventory Practices
Actual, Confidential Online
Final Selling Information Prices Based
Price Not Required on Actual
Available To Obtain Inventory
Online Final Price Available
Direct-Purchase Web Sites
CarMax.com Yes Yes Yes
AutoNationDirect.com Yes Yes Yes
CarsDirect.com Yes (Actual Yes No
Price Subject
To Availability)
DriveOff.com Yes Yes No
Greenlight.com. Yes Yes No
Intermediary Web Sites
Autobytel.com No No No
Autoweb.com No No No
AutoVantage.Com No No No
Cars.Com No No (For No
New Cars)
Microsoft's CarPoint.com No No No (For
New Cars)
The Results
Of all the major on-line buying sites reviewed, only CarMax.com and AutoNationDirect.com offer actual inventory and actual,
final prices on both new and used vehicles.
Most of the other direct-purchase sites also offer instant prices, but do not have actual inventory when the quote is presented to
the customer. At these sites, consumers are led to believe that their vehicle of choice is in stock after confirming it via a series of
exhaustive online steps. After completing the process, however, the car is often not available in their area.
Among the intermediary sites, none offer actual inventory or actual prices online. All require additional steps to obtain final
prices on new cars.
CarMax.com Offers Great New Cars
CarMax offers consumers a wide-ranging assortment of new, domestic and import vehicles online at www.carmax.com.
Shoppers can browse CarMax's entire 10,000-car, new-and used-car inventory. The online inventory includes a description of
each car, the actual price and vehicle location. CarMax new- car franchise markets and brands include:
Atlanta - Chrysler, Jeep, Mitsubishi and Plymouth
Chicago/Milwaukee - BMW, Chevrolet, Ford, Jeep, Mitsubishi, Nissan and
Toyota
Dallas/Ft. Worth - Chrysler, Jeep and Plymouth
Greenville, S.C. - Nissan
Los Angeles - Chrysler, Dodge, Jeep, Mitsubishi and Plymouth
Orlando - Chrysler, Jeep and Plymouth
Washington, D.C./Baltimore - Mitsubishi, Nissan and Toyota
CarMax, a subsidiary of Circuit City Stores, Inc. (NYSE: CC - news, KMX - news), is the pioneer of the auto superstore
concept and has been revolutionizing the way consumers think about automobile purchases since opening its first store in
Richmond, Va., in 1993. CarMax operates 40 locations, including 20 new-car franchises and 34 used-car superstores. For
more information, access the CarMax web site at www.carmax.com(SM). |
