INTERNET LEAD FIRMS GENERATE COMEBACK

CarsDirect says that its lead generation is up 70 percent.

February 2, 2004—Not as hot as a few years ago, Internet lead generators are still a major presence on the exhibit floor—and, in fact, growing again. CarsDirect.com’s own survey of dealers using third parties shows that nearly 25 percent now get 200-plus Net leads a month. (More than 80 percent quote firm prices to Internet shoppers by e-mail.)

CarsDirect’s lead generation grew 70 percent in the past year, says CEO Bob Brisco. (It also offers “direct” sales, in which a personal shopper prices, orders, buys, and finances a vehicle for a consumer, arranging delivery at a CarsDirect dealer.) Dealer cost: $250 to $1,500 a month, depending on brand and market. Other Net news:

• Ford Division’s FordDirect now generates nearly 9 percent (80,000 last year) of the division’s sales, says president Steve St. Andre. More than 80 percent of Ford dealers are enrolled. A Lincoln Mercury site comes at the end of February and used cars later in the year.

• Ninety percent of consumers who log onto autotrader.com to research a used car prefer phoning to e-mailing a dealership, says CEO Chip Perry. Of the 10,000 dealers enrolled, 65 percent are franchised. Dealers’ cost for listings ranges from free for no-frills to $2,500 a month for premium (with photos and preferred placement). Dealers paying $800 or more monthly for listings with photos have a close rate of 23 percent, says Perry. Autotrader started offering auction-style listings a year ago (for a fee of $10 to $25 per car) and has a niche market of 300 dealers for those.

• At eBay Motors, the top sellers are mainstream cars like the Honda Accord, says global vice-president Simon Rothman, who claims a car is sold on the site every minute. Dealer business—so far mostly from independents—exploded in the past year. Dealers can now offer F&I on cars sold on eBay (the financier is Household Finance). Dealers will get a flat fee for F&I, still being negotiated. Also planned for this year: a telesales center for dealers to help them manage their eBay sales.