Internet Car Price Quotes - Can They Really Save Time And Money?

Chances are if you’re in the market to purchase a new or used car you’ve come across multiple websites offering “free” car price quotes. What exactly is a “Car Price Quote” and does it really save you time and money? We’ll get to the essence of that in this article, so brave on!

First, a little bit of history. In the past when you were shopping for a new car you probably drove from dealership to dealership test driving cars, picking up brochures and dealing with lots of, um, ‘interesting’ salespeople. Actually, chances are most people still buy their cars this way. But as Internet access has become more mainstream in American households and in the work place, more and more people are using it to read reviews, look at pictures, compare prices, build and configure cars with different options - essentially shop without ever setting foot in a dealership. But even with access to all of this information and technology you still need to visit the dealership to test drive the vehicle, touch it, feel it, smell it, and kick the tires.

Nearly 10 years ago some entrepreneurs realized that consumers were using the Internet to research new cars and that many car dealers:

1. Did not know much about the Internet

2. Surely did not know how to market to consumers via the Internet

3. Did not have the tools and technology to interact with consumers via the Internet.

These same entrepreneurs knew that if they were able to identify consumers that were in the market to purchase a new car, or were just considering buying a new car, they could connect them (the buyers) with the dealers (the sellers) and maybe make a few dollars in between.

When you come to a site that is offering free car quotes, you are typically greeted with some type of request for information. The most common information collected includes vehicle information (year, make, model, trim level, color preferences, options) and personal information (name, address, phone number and email). You may also be asked about your “timeframe to buy”, contact preference (phone vs. email), and payment options (lease, buy, trade). Having purchased a number of cars through the Internet I can tell you that it is in your best interest to include accurate information. Many people put in false information in hopes that they will get their “free car quote” without having to give a valid phone number and email - sorry folks, that’s not how this process works. Very few websites will provide you with the actual price quote - this needs to come directly from the dealer. Typically the only pricing information given by a free car quote site is the MSRP (manufacturer suggest retail price) and possibly the dealer invoice price. Once you have submitted your information you have become what we refer to in the business as a “lead”.

Your submitted information is now sent to any one of the following places: directly to a car dealership or car manufacturer, a larger company that buys leads and sends them to their own dealer network or to a car manufacturer, or nowhere.

This process is very quick and typically takes only a matter of minutes. Follow along: you submit your request via the Internet and your information is validated (name, phone, address, email) to eliminate bogus requests. Your request is then routed either directly to a dealer or first to a third party (lead aggregator) and then to a dealer. Of course, if there is not a dealer servicing leads in your area, your lead ultimately goes nowhere and you will not get a phone call or email with your free car price quote.

Most of the lead aggregators out there do a very good job sending you an email letting you know if they did or did not have a dealer to take your request. They also usually include the name of the dealership, the name of the Internet sales manager at the dealership and address and contact information of the dealership that received your request.

So now you’re a “lead”, but what does that mean? What should you expect to happen next? Here is how it is supposed to work: after submitting your request you should be contacted within 24-48 hours. Most car dealers do not get enough information from the lead alone to give you an accurate quote on a new car. They will probably send you an email asking for more information: what specific options are you considering? Leather or cloth interior? Need a moon roof? EX or LX? DVD Player? You get the idea.

Many dealers use an ‘auto responder’ email to let you know that they have received your quote request and expect to hear from them in the next day or two. Unfortunately for many consumers that is all they get…an email. No phone call. No car price quote. And an experience that leaves little to be desired. Surprised? Well it’s true. Many car dealers out there do not call or email their leads. They set up their auto responders and hope you call them. This does not help you get a good deal on a car either. The good news is that there are dealers out there that get it. And this is precisely why you want to be a lead. Here is my list of the top reasons why you want to be a “lead”:

1. Some of the best dealers understand the value in buying leads - this is good for you the consumer. Good dealers buy leads.

2. Internet Sales Managers are some of the best-trained salespeople at the dealership. They understand today’s Internet consumer and how to interact with them over the phone and email. They won’t waste your time.

3. You can get competing quotes from multiple dealers without going from dealership to dealership. This can save you valuable time and money.

4. Many Internet sales departments focus on volume. This means aggressive pricing. Since the Internet department contributes to incremental sales (additional sales they probably would not normally get) they may have more pricing flexibility versus other salespeople working the dealership floor.

5. Some of the largest volume dealers in the country sell most of their cars over the Internet. Don’t believe me? Look up Dave Smith Motors. This is the largest Dodge dealership in the world, and it’s located in rural Idaho. Want another example? Check out Fitzgerald Auto Mall. Compare their prices on any make/model in stock. These guys understand what it means to be a volume dealer. Other dealers can’t even touch their prices.

So if you haven’t figured it out yet - dealers purchase many of their leads. Most manufacturers send dealers leads generated through their websites (GM.com, Ford.com, Jeep.com, etc.) at no charge. But there are a number of third party lead generators that sell their leads to dealers and the manufacturers. These make up the bulk of the "free car quote" sites. Dealers are “paying” for the opportunity to sell you a car. Those “free new car quotes” are not free to the dealers. So it’s in a car dealer’s best interest to call/email/engage the leads they are buying. The best dealers are very good at this. They sell more cars, you get a good deal, and both parties are happy. So don't be afraid. If you're in the market to buy a new car, try getting a free internet car price quote first, you'll be glad that you did.