Dealertrack Technologies and AutoTrader.com Engage in Strategic Partnership to Help Ease the Transition from Online Shopping to In-Store Purchasing
by Business Wire
Helping to ease the transition from online shopping to in-store buying for both consumers and dealers, Dealertrack (Nasdaq: TRAK) and AutoTrader.com® today announced a strategic partnership to bring dealer-driven (indirect) automotive financing to vehicle shoppers online.
As part of this partnership, Dealertrack and AutoTrader.com are piloting an innovative digital retailing finance tool called Deal Builder in six select U.S. markets. Deal Builder, which incorporates Dealertrack’s PaymentDriver and FinanceDriver products, will allow online shoppers to display realistic monthly loan or lease payments based on a dealer’s current inventory, lender programs, rates and incentives for a selected vehicle, as well as allow them to complete an online credit application for submission to the dealer.
This tool will help simplify and streamline the vehicle buying process for consumers while delivering more qualified shoppers to dealers. The tool will also provide dealers with full control at all times of the specific deal terms, including their lending margins, that are presented to online consumers.
During the Deal Builder pilot, Dealertrack and AutoTrader.com are listening closely to dealer feedback and monitoring consumer usage to ensure that the product is meeting market needs. Over time, the companies will work to adapt and evolve the product to optimize both the consumer and dealer experience.
“This partnership allows two industry leaders to enable dealers to offer consumers a superior retail experience and set a new standard for the future of automotive retailing,” said Mark O’Neil, chairman and chief executive officer, Dealertrack. “Today’s consumers are looking to complete more of their vehicle shopping online, and this new Deal Builder tool will help extend the reach of the dealer’s F&I department to their virtual online showroom while staying true to a dealer’s business practices.”
“AutoTrader.com’s mission is to dramatically improve the way people buy and sell cars, and this partnership will enable us to continue delivering on this promise,” said Chip Perry, president and chief executive officer of AutoTrader Group. “Dealertrack is the industry leader in providing solutions for dealers and the lending community, and together, we are creating powerful functionality that will enhance the financial end of the car buying process.”
According to the 2012 AutoTrader.com Dealership Experience Survey, which was conducted by Morpace Inc., consumer satisfaction is lowest when the vehicle shopping process moves from online to in-store. In fact, new vehicle buyers said they were least satisfied with Negotiating a Purchase Price (52 percent), Filling Out Paperwork (47 percent), Applying for Financing (43 percent) and Receiving a Trade-In Offer (37 percent).
The Dealertrack/AutoTrader.com partnership brings together the largest network of lenders and dealers and an awarding-winning technology provider with the largest audience of in-market vehicle shoppers to give consumers access to dynamic online financing tools for the first time ever. Thus, the two companies are helping to alleviate consumer dissatisfaction with some of the financial aspects of the online vehicle buying process revealed in the survey.
About Dealertrack Technologies (www.dealertrack.com)
Dealertrack Technologies’ intuitive and high-value web-based software solutions and services enhance efficiency and profitability for all major segments of the automotive retail industry, including dealers, lenders, OEMs, third-party retailers, agents and aftermarket providers. In addition to the industry’s largest online credit application network, connecting more than 19,000 dealers with more than 1,200 lenders, Dealertrack Technologies delivers the industry’s most comprehensive solution set for automotive retailers, including Dealer Management System (DMS),Inventory, Sales and F&I, Interactive and Registration and Titling solutions. For more information visit www.dealertrack.com.
Created in 1997, Atlanta-based AutoTrader.com is the Internet's ultimate automotive marketplace. As a leading resource for car shoppers and sellers, AutoTrader.com aggregates millions of new, used and certified pre-owned cars from thousands of dealers and private sellers and provides expert articles and reviews. AutoTrader.com, which also operates the AutoTraderClassics.com auto marketing brand, is wholly owned by AutoTrader Group™. Additionally, AutoTrader Group owns Kelley Blue Book® (KBB.com) as well as three other companies that provide a full suite of software tools that help dealers and manufacturers manage their inventory and advertising online: vAuto®, HomeNet Automotive® and VinSolutions®. AutoTrader Group is a majority-owned subsidiary of Cox Enterprises. Providence Equity Partners is a 25 percent owner of the company and Kleiner Perkins Caufield & Byers is also an investor. For more information, please visit www.autotrader.com.
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding the benefits of the Dealertrack/AutoTrader.com partnership, AutoTrader.com’s Deal Builder, Dealertrack’s PaymentDriver and FinanceDriver products and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of Dealertrack Technologies to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.
Factors that might cause such a difference include the use of Deal Builder, the Dealertrack/AutoTrader.com partnership, the performance of Dealertrack’s PaymentDriver and FinanceDriver products and other risks listed in our reports filed with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ending December 31, 2011. These filings can be found on DealerTrack Technologies’ website at www.dealertrack.com and the SEC's website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and Dealertrack Technologies disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.