Internet car sales on slide

Online traders are netting fewer new car buyers than ever, according to the latest figures. And price matching by traditional dealers could be to blame, Auto Express can reveal.

Auto Express Car Reviews

Source: www.jamjar.com

By Julie Sinclair

06th November 2006

The number of motorists who use the Web to purchase their new motor dropped from 14 per cent in 2004 to six per cent this year, a study from market researcher Mintel revealed.

The Internet is often considered a cheaper source for new vehicles. JamJarcars was launched in 2000 "to sell cars at up to 30 per cent below UK list prices", claimed owner Royal Bank of Scotland. But when we collected quotes from its website and, posing as a buyer, asked dealers to match them, they actually beat the Internet prices. However, more motorists are doing their research online. Mintel claims 22 per cent of potential buyers now log on to check car prices before visiting a dealer.

A spokesman for the Society for Motor Manufacturers and Traders said: "Maybe buying online was a fad; people thought it was a good idea, but they weren't getting the personal service of a dealer." JamJarcars refused to comment.