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February 7, 201 1
www.usedcarnews.com
New Approach to Car Sales By Sheila McGrath
With a background in Web design and a lifelong love for cars, Derrick Lamer thought up a new business venture that would combine the two. But before getting started, the 25-year-old had to win over the planning commission in Holland Township, Mich., where he’s launching an online auto sales website. As his base of operations, Lamer will use a business his family already owns – a distribution center located in an industrial zone of the township. Even though his auto sales will be handled online, zoning rules prohibited a used-car dealership in the area. The local planners didn’t want to change the rules in an industrial zone to allow a car lot, they said. But after about four months of work on his plan, Lamer got the go-ahead in January to start his business. He will be allowed to store and detail up to seven cars on the site, as long as he doesn’t have any signage identifying it as a car lot or signs and stickers on the vehicles iden-
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tifying that they’re for sale. Customers interested in seeing a vehicle after researching it online may simply come to the distribution center, where Lamer already works in the family business, and take a look. “This is a market I’ve always had an interest in,” said Lamer. “My grandfather owned a car lot back in the day, and I’ve always had a love for cars. I wanted to take a new approach with the online portion.” Lamer plans to start hitting auctions for his inventory. He expects to have the business up and running this spring. He plans to staff the company by himself for now, although he has family members who can help him out if things get too busy. Lamer said he has never been in the used car business before, but he had been hoping to branch out into a different field where he could use his knowledge of Web design and graphic arts. “I really looked at the used car business and thought this would be the first step with where I’d like to go,” he said. Lamer doesn’t yet have a name picked out for his new company. “This is totally new to me, and I’m excited to see what we can do and where it goes. I’m anxious to get going,” he said. The requirements for dealerships that primarily conduct business online has been a major question facing municipalities across the country in the past decade. Traditional concerns about lot size and access no longer prove as relevant in making decisions.
Photo by Sheila McGrath NEW WAYS: DealerDerrickLamerfollows his grandfatherinto carsales, but takes his own path. He focuses on Internet sales and needs less space than a traditional store.
Cars.com Boosts Confidence with Reviews
Cars.com spent considerable money to spread its message that users of its site buy with confidence. The online automotive marketplace bought two spots during the Super Bowl to drive this message home. The latest method for increasing confidence is customer reviews. Cars.com is currently rolling out this feature on its website. Other shopping sites, for all items from books to electronics, have long featured consumer reviews, said Mitch Golub, president of Cars.com. The vast majority of consumers want this because it’s available everywhere, Golub said. The reviews begin as an opt-in feature this spring and will become a standard feature for all listings this summer.
IN THIS ISSUE • Toyota’s brand faces trouble beyond its recalls. – Page 3
• A Utah dealer will serve as NADA chairman. – Page 8
• Dealers need to get back to basics. –
• A state AG sued a store for the second time. – Page 20
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