Dealer Lead Suppliers serve up a lot of information for car shoppers. Sites like Edmunds.com and KBB.com are jam packed with model specifications, trim and color options, and much more. TrueCar.com goes as far as showing visitors real-time car deal data from dealerships throughout the country. By tracking vehicle registration information, they publish extremely accurate new car pricing information. However, by serving up this wealth of “inside” information that used to be reserved for auto industry insiders, they are in actuality trying to compel you to do the one thing that generates them cash: complete an online purchase request form.
By giving car buyers unprecedented access to new car information, Dealer Lead Suppliers are able to entice millions of visitors to complete online new car price request forms. The data collected by these forms, predominately the visitor’s contact information and buying preferences, is then sold to local new car dealerships, automakers, and auto finance companies. After completing the form, the car shopper should expect several phone calls from regional salespeople. Therefore, Purchase Request Form equals Calls from Regional Salespeople.
Consumer Negotiation Advocates have an entirely different business model. On the front-end they appear almost identical to Dealer Lead Suppliers. Like the other types of sites, they serve up unprecedented new car information. They give model specifications, trim and color options, and exceptionally accurate new car pricing data. And, like their competitors, they too want to compel the visitor to complete a new car price request form.
For the convenience of the buyer, used cars are classified by price range (exotic, luxury, premium, mid-range, economy, etc.); by manufacturer (Honda, Toyota, BMW, Mercedes etc.); by market segment (performance, diesel, hybrid, cross-over, high performance, etc.) or by body styles (sedans, coupes, SUVs, etc.). There is a large range of used car prices some which range from as low as $2,000 and as high as $40,000.
There are a variety of options for someone interested in buying used cars. They can be bought from used car lots, from car superstores, dealers or directly from the owner. The used car prices depend on this factor. For example, a dealership may charge a considerable amount more for the same make and model of car as opposed to a private sale directly from the owner because the dealership has to factor in running costs of the showroom, employees, etc. Furthermore, it is harder to negotiate from dealerships and superstores. The total cost of the car is also largely dependent on the mileage on the car. Also, there are numerous other factors such as the year it was first purchased, the make and model of car, the condition of the car and the place of purchase. Collectively, these factors determine the total used car price.
The truth is, about 95 percent of all online car shopping sites are really just lead aggregators. Modern web technology makes it simple to build a car buying site that is loaded with model specifications, new car builders, and fairly accurate pricing data. The trouble is, they pull the consumer in with all the fancy gadgets only to collect personal information, submit it to their lead aggregation database, and then resell their visitors’ personal info to hundreds of advertising and marketing firms, or to the major car buying sites.
So how does a modern car buyer find accurate information and pricing without sacrificing their privacy, or worse, ending up in the databases of hundreds of advertising agencies? The answer is really simple. Stay with the trusted sources. Do not enter your personal data into a form on a car shopping site unless it is known to be a trusted authority in the auto industry.
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