New online auto selling competitor enters LV market

Phil Levine

Monday, March 27, 2000 | 11:25 a.m.

Competition for new car buyers has entered the world of cyberspace.

Officials of Greenwood Village, Colo.-based driveoff.com believe the new era of auto shopping is just a click away. As part of its national expansion, the company has signed on about 40 Las Vegas-based car dealerships to handle sales in Southern Nevada.

Launched last September, the website was first rolled out into three test markets; by April, the site will be available to customers nationwide.

"We're looking to be in the top 50 markets nationwide," said company spokesman Andy Mountain. "We certainly view Las Vegas as one of those markets."

The growth in Internet auto sales has not gone unnoticed by bricks-and-mortar car retailers.

The National Automobile Dealers Association this month revealed plans to launch its own website.

Slated to start next month, the site will offer customers online access to dealer websites as well as offering new and used vehicles.

NADA officials expect about 90 percent of the nation's new vehicle dealers will be accessible through their web portal.

By offering an up-front, binding price and monthly payment quotes, driveoff.com is touting an online no-haggle system similar to that of rival AutoNation Inc.

Mountain says driveoff.com customers won't be required to work out deal terms with a salesman on the phone. In addition to buying the vehicle on their computer, customers can also secure online financing for their new car.

"Customers can select a vehicle (online) and then work out the financial components of the deal to suit themselves," he said.

By placing a $250 deposit, customers can reserve and then complete their transaction in under one minute.

Consumers then receive e-mails alerting them to the status of their transaction, as well as a DriveOff Deal Kit via overnight mail.

Although the driveoff.com website has only been operational for a short time, Mountain said it's becoming clear what type of customer is most attracted to online car buying.

"We're finding about 80 percent of our customers are men, and the general demographic appears to be in the 30- to 50-year-old age bracket," he said. "Customers also tend to be in the mid-to-upper income level."

The company generates its revenue through a partnership with the Internet Auto Dealer Marketing Association.

Mountain said driveoff.com expects participating dealerships to sell about 20,000 vehicles nationwide this year.