Now What AutoTrader?
December 7, 2010 by John Druien
So what do you think is next on the plate for AutoTrader.com? Take over small countries in the Caribbean? Buy Dealer groups? Nothing really seems impossible for the company that has been in acquisition mode snapping up vAuto, Kelly Blue Book and HomeNet over the last 3 months. The company is truly taking over the automotive online marketing world and is far surpassing the visibility of other players that had previously worked up to 'neck and neck.'
The next step for AutoTrader appears to be getting in the middle of the finance business. They claim that these acquisitions are based entirely on their goal of "listening to dealers." Anyone who is in the business, and that actually listens to dealers, will tell you that staying the heck OUT of the finance side of the business is really what dealers prefer. The F&I office is one of the last bastians of profit that online companies have stayed out of, and dealers are ok with that. On the other hand, AutoTrader understands that's where a lot of money changes hands, and that's money that AutoTrader would like a piece of. We will wait to see what they come up in that area...or who they will buy. Maybe a bank.
What AutoTrader still cannot do, nor can most typical automotive destination sites, is determine the bottom of the sales funnel leads. At some point "quantity of leads" is going to stop being a selling point in favor of quality of leads. Dealers are not strong at keeping up with customers that contact the store and don't let on where they are in the 6-month purchase funnel process.
Chip Perry and AutoTrader...we await your next move.
Thank you,
Thomas Ieracitano
Thomas Ieracitano
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