DADA launches virtual used-car lot - Detroit Auto Dealers Association's new Web site
Brian CorbettThe Detroit Auto Dealers Association (DADA) takes its sales to the Internet, debuting a Web site (www.dadacars.com) that aims to address growing inventories of off-lease vehicles and competition from AutoNation USA used car superstores.
"It's just going to be another venue, another tool. With the Internet's reach, there's no telling who's going to drop into the site," says DADA President Russ Shelton, owner of Shelton Pontiac-Buick in Rochester Hills, MI.
Right now the listing includes about 700 vehicles from 60 Detroit-area dealerships. But Mr. Shelton says DADA is hoping for 12,000 vehicles eventually by building home pages for dealers without their own Web site when they join http://www.dadacars.com
Shoppers can search for cars and trucks according to make, model, year, price range, mileage, dealership, zip code and other variables. The cyberlot also includes additional information, including vehicle photos, list of vehicle options/accessories and dealer comments. Essentially, the advertisement-free Web site, which was developed in one year for about $500,000, gives consumers the kind of hassle-free shopping that the used-car superstores cite as their most attractive business method.
Mr. Shelton says the recent arrival of AutoNation USA into southeast Michigan had little to do with DADA's decision the launch its own Web site.
AutoNation's parent company, Republic Industries Inc., is acquiring rival Driver's Mart Worldwide Inc. of Grand Rapids, MI, for $40 million cash. Michigan dealers cofounded Driver's Mart. Its eight used-vehicle megastores will become AutoNation outlets.
"We certainly know they're out there. There's awareness of it. Competition breeds competition. But they really haven't affected our market. We just need a Web site out there, "Mr. Shelton says.
The DADA Web site is "adding dealers every day" he claims, and the number of hits will be recorded to determine its success. "I think we'll be pleasantly surprised," he says.
Some auto dealer groups from other cities have contacted DADA about starting a similar cooperative Web site in their own town, Mr. Shelton says. "There's no secrets in our business," he adds.
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