It also was just ranked the top Internet car-buying service by Gomez Advisors, which evaluates Internet services. The developments suggest explosive growth for systems that exploit buyers' dissatisfaction with auto dealers. Priceline users avoid the dealer except when picking up and paying for the vehicle. CarsDirect, in most states, even handles delivery and payment, eliminating dealer contact. Typically, Internet services refer you to a dealer to negotiate the sale.
Dealers pay the services for prospects.
Keller's No. 2 is Michael Seergy, former marketing executive at Nissan. Priceline takes your Internet bid for a new vehicle and faxes it to dealers within the geographic area you specify. You are notified, usually within 24 hours, if any dealer accepted. CarsDirect, open since January, quotes a price and counts on being able to buy the vehicle from a dealer for less. Last month, it sold 1,500 vehicles.