A Merge of Third Parties Are Looking to Disrupt the Auto Industry
Before the Internet and the explosion of the e-commerce industry, your options for buying a new or used car were very limited. It was much more difficult to find a private seller for a used car before sites like Craigslist and other online listing sites existed, and dealership lots were virtually the only possible destination for consumers who were in the market for a new car.
In today’s Internet-focused world, the auto industry is changing rapidly. A myriad of third- party companies are attempting to supersede the monopolization of traditional car dealerships and infiltrate the auto industry with convenient, primarily virtual buying options. These companies strive to appeal to those in the market for a new or used vehicle by making the process of buying a car faster and less overwhelming. In many cases, third-party companies even allow shoppers to completely circumvent in-person visits to the dealership and handle their entire vehicle transaction completely online.
In order to survive as new and unfamiliar options in the auto industry, many digital- based third-party companies are finding niches that they can fill—such as offering to deliver your new car to your house after you buy it or offering attractive financing plans to buyers with low credit scores—to set them apart from other third-party companies and traditional dealers and help them stay afloat in the auto industry.
Also, not all of these new third-party companies that are cropping up focus on helping drivers buy a new or used car. Some of them also offer assistance with financing, loans, and leasing vehicles. The primary goal of these recently-developed third-party companies in the auto industry seems to be to establish themselves as legitimate, valuable service providers that offers something other companies and dealerships don’t. The number of digital-based third-party auto service companies continues to grow at a rapid rate. Amazon, Joydrive, and AutoGravity are three of these third-party companies that have experienced significant growth and attention since their launch.
Amazon’s specialty is infiltrating and transforming other industries. The book industry is one of the best testaments to Amazon’s power. The retail giant now accounts for about 20% of all annual book sales in the United States and the number of independent bookstores in the U.S. has decreased by more than 50% throughout the past two decades—due largely to Amazon’s growth and the development of their hold on the book industry.
In recent years, Amazon has started the process of breaking into the auto industry as well with their launch of Amazon Vehicles. Right now, Amazon Vehicles is just a research tool for buyers in the market for a car. However, Amazon Vehicles has the potential to be successful as an online car-selling hub as well—especially for used vehicles. Amazon already successfully sells a large number of vehicle parts. Plus, they have the available resources to stay afloat as they compete with other established third- party online car sellers. In fact, the appearance of Amazon Vehicles on the scene is already hurting traffic for some of these online car shopping tools.
An innovative and effective method is what makes Joydrive such a successful third- party auto seller. Instead of trying to circumvent car dealerships completely, it offers established dealers the option to pay a monthly subscription fee to have their inventory featured on Joydrive for more potential buyers to see.
Joydrive displays the complete updated inventories of these dealers—including both new and used vehicles. They do not accept haggling—which makes the car buying process smoother and less stressful for the shopper—but offer competitive prices. One of the most unique and coveted features of Joydrive is its delivery service. Shoppers can complete their entire transaction online and get their new car delivered straight to their home or workplace.
Many car dealers have even begun to proudly advertise their partnership with Joydrive. Modern car shoppers are more likely to buy a car from a dealer if they can handle the transaction straight from their phone and even get it delivered to their own driveway via Joydrive.
AutoGravity does not sell cars, but it is disrupting the auto industry nonetheless. For many drivers, one of the most stressful and frustrating parts of buying a car is figuring out how to pay for it. Since the majority of drivers can’t pay the full price of a car up front, most buyers turn to loans and financing plans to help them pay off their car over time.
By offering up to four loan options based on a minimal amount of information buyers provide, AutoGravity makes financing a new car easier and faster. It also caters to drivers with low credit scores who don’t have many other options when it comes to loans and financing for a new car. Plus, the service runs through an app—which makes it even more convenient and accessible for users.
It's best to do plenty of research to make sure you understand exactly what it is you are getting from any of these 3rd party apps or even from using a traditional dealership. You can get answers to your questions about any of the cars on our lot, simply by using our online chat feature that you can find on our website.