Use of Internet in Car Buying

Internet is being exploited in a number of ways to sell vehicles although sites allowing consumers to purchase remain limited

Other players, while not having the reach of eBay, have also arrived, in many cases offering innovative business models to encourage consumers to purchase online. These include AutoeBid, which specialises in the purchase of new cars and works with a reverse auction model. Tesco Cars is a new entrant that offers fixed prices for its vehicles backed up by a number of guarantees for buyers.

What we think

Getting those consumers who are prepared to pay over £3,000 for their vehicle to purchase online is the holy grail for all those looking at this sector. Sites like AutoeBid that are focused on new cars in theory should be able to drive sales, although as yet the company has a low presence.