Innovative Automotive: New Companies Could Vie With Dealerships’ Used Sales Departments


Are dealers ready to adapt to these businesses’ flexibility with test drives and trade-ins? BY ZACH KLEMPF The automotive landscape is being disrupted faster than ever before. If you thought the advent of the Internet during the late 1990s and…

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  1. Zach, I believe the threat to traditional dealers is very minimal. Once consumers prove the model of online vehicle purchasing, dealers will be able to quickly and easily offer the exact online experience. The startups you mentioned are spending significant resources on custom technology, from online collaboration to CRM solutions. Dealers have access to this technology off-the-self now with vendors like VeriShow and SaleMove. The value proposition of “hassle free online car buying” which these startups leverage, is not enough of a competitive advantage to sustain a head-to-head competition with established dealers, in my opinion. What will Beepi or Carvana or Shift do when every dealer in their market offers similar solutions?


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