Internet presence drives car-lot sales

Tim McKee, Friendly Ford new cars sales manager, said the Internet has changed the landscape of car dealing, as consumers arm themselves with every bit of information they need with a simple click of the mouse.

“Really, everything is set up so people can do everything ahead of time and all they have to do is come to the dealership and drive it off the lot,” McKee said.

Internet auto sales took off around 2000. Since then, almost every dealership has found a spot on the Web, alongside thousands of private-party sellers.

McKee said 5 percent to 10 percent of his monthly sales originate over the Internet, and he estimates at least 75 percent of his customers use it for research to determine exactly what they want and how much they’re willing to pay. Informed consumers have changed the way some salesman approach the sale.

“Don’t try to over sell (car buyers),” McKee said. “They’ve probably already sold themselves. In other words, just try to help them.”

McKee said the number of salespeople employed at Friendly Ford has decreased to between 35 and 40, from around 50 in 2000. However, McKee said he couldn’t place the blame on the Internet since a general economic downturn occurred at the same time.

Hank Tandy, McKee’s assistant manager, handles the dealership’s Internet sales, responding to online inquiries and then handing the customer off to a salesperson who still earns commission.

Both McKee and Tandy said most people still visit the dealership to arrange financing, but customers far away have the ability to do everything over the phone or Internet.

Judy Compton bought her 2005 Mustang convertible, a special order white with tan interior, from Friendly Ford with the help of the Internet. She said she only had to visit the lot twice, once to place the order and then to pick it up in June.

“(The Mustang) has been a very popular item,” said Compton, who teaches at Cox College of Nursing. “I got on the Internet to check availability and prices.”

She said Friendly Ford popped up in an Internet search for 2005 mustangs. Compton e-mailed questions to Tandy, and the rest is history.

In 2000, Kirk Wheeler opened his dealership specifically for the Internet – even naming it Wheelerauto.com. It also has a physical location at 1610 E. St. Louis.

Wheelerauto.com’s Internet manager, Lance Ward, said during the last six months 65 percent of the company’s sales have been over the Internet, mostly to out-of-area buyers.

He’s sold cars, an average of 25 per month, to people as far away as California and Massachusetts, arranging customer-paid delivery which ranges from $300 to $1,500.

“(The Internet) has come in very handy for us,” Ward said

Central Dodge salesperson David Daniels said the Internet is helpful to customers, but it can’t replace old-fashioned, in-person negotiations – especially when it comes to appraising trade-in values.

“A lot of people are more informed, but they’re more misinformed,” Daniels said, noting customers visit sites such as www.kbb.com (Kelly Blue Book) to find out their car’s value without considering condition or regional demand.

Louise Barr, media relations manager for AutoTrader.com, said roughly 10 million buyers browse 2.8 million auto listings at her site alone every month.

That volume of Internet traffic has helped Atlanta-based autotrader.com to average more than $100 million in annual revenues. Since AutoTrader.com is a privately held company, exact figures were not available.

“We know more and more customers are online,” Barr said. “It’s a self-fulfilling prophecy. The more buyers we have, the more sellers we have.”