A new online car buying website, CarWoo, has entered the online automotive industry with promises of making the car buying process easier than ever. Other sites such as cars.com, vehix.com, and autotrader.com have been in the business of online shopping for over a decade, but, according to Tommy McClung of CarWoo, these sites failed in their mission to remove salespeople from the buying process and create a more buyer-friendly experience. McClung believes that these sites have essentially become lead generation methods for car dealers.
After tests in California and Florida, CarWoo has now gone national. For $19 users of the site receive two to three quotes on cars, and $49 will get users three to five quotes. Unlike other car-buying websites, customers remain anonymous throughout the buying process, eliminating the potential for spammy emails and phone calls from salespeople. With a sort of online auction process, where dealers see other dealer’s offers and try to outbid them, CarWoo claims that the average buyer pays $3000 less than sticker price for vehicles.
McClung states, “If you were to ask a dealer to log into a website even five years ago, they would have laughed at you—we still run into plenty of dealers who are on IE6 or lower. So you are looking at an industry that’s slower. But the dealers that are surviving today—and last year saw the lowest number of new cars sold in the last 26 years—are looking for new and innovative ways to grow their sales. We think that’s one of the biggest things we have going for us, that we have hit the market at the right time.”
Having raised 4.2 million dollars in investments, CarWoo is slotted to be another major car buying site on the net.