WHY: The Problems With Shopping For Cars On The Internet

AutoBrag was created because the process of buying new cars needed to be improved. During the late 90's the Internet started to make its way into the living rooms of Americans across the country. It seemed as if overnight the collective data of the universe had been placed on our PC monitors. With just a few clicks of a mouse and the punching of some keys, thousands upon thousands of pages of information became available on any topic.

This is when the new car buying process became liberated. No longer did people need to pickup a magazine or visit an auto dealer to get information. In all likelihood, the people working at these dealerships couldn't provide the kind of detailed information a website possessed. The first phase was to make information on each auto manufacturer's make and model available to the public. The pursuit of information on the EXACT car a consumer wanted coupled with the EXACT options was no longer a difficult task.

Then came the famous and eventually more infamous "dotcom bubble". Numerous companies received venture capital in the pursuit of staking their claim in the online world of automobile sales. There is no exact figure on the total financial losses of the industry but the flameouts and failures were catastrophic.

Most companies went bankrupt. However, a select few that were fortunate enough to have raised enough capital (or went public before the bubble burst) began to thrive.

The second stage in the development of the auto industry online was to capitalize the millions of eyeballs that were looking for new cars on the Internet. Major auto websites figured out that they could make millions of dollars supplying LEADS to dealerships.

A potential car buyer went online and filled out information on what kind of car they were looking for (bells and whistles included). The auto website would then sell the lead to dealerships that contacted the potential car buyer. It was a win-win situation as the dealership made sales, the website sold leads, and the consumer found the car that he or she was looking for.

This system worked very well for a while but then problems developed. The lead generation companies are seeing a contraction in the number of leads being purchased by dealerships. This is partially due to weak economic conditions but the main culprit is the maturation of the industry.

The National Automobile Dealers Association reports that the average dealership spends $600 per car on advertising. Much of this is spent purchasing leads. According to Zag Data, dealers currently spend $18-$23 per lead and online leads convert to sales at a rate of 2%-5%. That means dealerships generate one sale for every $360-$1,150 spent on purchasing leads. What used to be an efficient means of generating business is no longer viable.

It makes sense because Internet users have had years to improve their skills. Why enter your information into a website when you can contact your local dealer directly? The business of selling LEADS becomes obsolete if dealerships realize they are paying for leads to be placed in contact with customers that would have purchased cars from them regardless.

We are now at the beginning of the third phase of the online auto world. Consumers know exactly what car they want. Two fundamental questions remain…

"How much should I pay for the new car?" & "What dealership should I buy the car from?”"

AutoBrag is the first car price search engine on the Internet that is providing thousands of new car prices quoted from dealerships. These prices are what the new cars are actually being sold for. With just a few clicks, users can know exactly how much the market price for the new car they are looking for should be.

They can choose to contact the dealership quoting the price or utilize AutoBrag's proprietary Braggle System For New Cars. The Braggle system enables new car shoppers to negotiate the lowest new car prices by making anonymous offers to local dealerships simultaneously with just a few clicks. Dealerships compete, buyers win, and best of all it's free for both dealers and shoppers of new cars. Our goal is to save time and money for car buyers while reducing dealerships’ advertising budgets so that the cost savings trickle down to the car buyers.

For most people, buying a new car is the biggest purchase (outside of home buying) that they'll ever make. It is your hard earned money and now you have the ability to find the best deal on a new car with the help of AutoBrag.

1) Search AutoBrag for the make (brand of car) and model of the automobile that you are interested in. Or if you just want to see the best deals, you can search by make or by every make.

2) Compare the prices you find in our search engine and determine what the average discount (% under MSRP) should be for the auto you are interested in. We have taken the liberty of providing some useful information for you on the right side of the search results.

3) Once you see how much the price of the new car should be, the next step is to decide where to make your purchase. You can contact the dealer that provided the listing or use the Braggle system which enables new car shoppers to negotiate the lowest new car prices by making anonymous offers to local dealerships simultaneously with just a few clicks. Regardless of whom you buy your next new car from, use AutoBrag and ensure that you get the best deal.

If there are any questions please visit the AutoBrag Blog and we will be happy to help.