In 2018, the United States automotive industry reached a little over $1 trillion in new vehicle sales and $116 billion in parts and service. Advertising has averaged $9.5 billion for the last three years, with 56.3 percent of that total attributed to online marketing. Today, consumers use third-party websites to research and shop for their next purchase. These third-party websites limit the way consumers shop for a vehicle as they only focus on one thing: “price”. These sites make their money solely from charging dealers monthly fees to list their inventory. Over the last five years, the monthly fees for dealers to list inventory has increased to thousands, even tens of thousands, of dollars per month.
Due to the abundance of information available online, dealers have had to become more transparent to get more customers into the showroom. In order to do so, however, they must be very aggressive with their pricing on third-party marketplaces. Over the last decade, this cycle has driven profit margins lower and lower for vehicle sales and has allowed the third-party sites to exercise undue control on the market. Due to the high monthly fees of these websites, dealers must make up the difference elsewhere, chancing a poor customer experience for the sake of recovering the loss in sale price.
With this outdated online sales model, there are several opportunities for improvement. In our research, we have found that most of the top online platforms have no real “in-dealership” experience on their executive teams. Throughout our team’s 25+ years working in the automotive sales industry, we have experienced the frustrations and dissatisfaction that consumers have with the current online model.
THE CARNOMALY SOLUTION
Carnomaly will be addressing these issues for both the consumer and the dealer. We will be launching a digital online platform that that will be far superior than the competition. Our goal is to provide an easy-to-navigate platform that helps consumers search for a vehicle and helps dealers control costs, allowing them to pass the savings onto the consumer. Carnomaly’s goal is to provide a win-win for both parties involved.
Carnomaly will be the most advanced online digital platform in the automotive market, offering consumers multiple ways to shop for a vehicle. No longer will they have to use the standard matrix that current platforms offer. With Carnomaly, consumers can shop for more than simply price and miles. Carnomaly will provide them with the options needed to make an informed decision before even stepping onto the showroom floor. Carnomaly will serve two markets: consumers and dealers. The platform’s comprehensive features will make for an easier buying experience and will allow the 30,000+ franchise and private dealers in the United States the opportunity to get in front of more interested buyers.