Quick observations on things with respect to the crash of CarOrder.com. Remember them? They were going to buy dealerships and sell cars on the internet, hopefully to circumvent state laws prohibiting non-dealer sales by becoming dealers themselves. Guess it didn't work that well (article on Dealer's Edge Home page says it all).
Why did it not work? Seems like a good idea: Buy underperforming dealerships to get inventory and use the web to sell that inventory. I think the real problem is lack of long term commitment and understanding of the retail business in general. How much money was wasted on this effort?
What about other internet schemes? I get propositioned every week by someone with a better mouse-trap and that I'm stupid to not see the vast opportunity. Well, the only opportunity I see if for that (insert: referal company, lead generation source, priceline.com, carsdirect.com, etc.) to make money off of me. Just look at most of the posts in this forum (Muntz will appreciate this): Automotive internet consultants trying to promote one thing or another. The people that come to my store have little car experience, little business experience and are paid by stock-options in soon-to-be-annouced IPO's. Get serious people, the market has changed and that IPO isn't happening.
Don't get me wrong just because I'm critical of this web-business. But I don't see the main source of your business coming directly from the 'net, however a method to handle the 'net shopper should be employed. Also, don't spend a bunch of money on third-party companies, most of them won't last the next 12 months.
My opinions, of course.
Scott