Online Car Buying Negotiations Service Compares Prices from Used Car Retail Giant CarMax and non-CarMax Dealers to Uncover Best Deals
Berkeley, Calif., Feb. 11, 2010 — A new used-car pricing study released today by Carsala, an online car buying negotiations service for value-conscious car buyers, found consumers can save, on average, over twenty-five percent off CarMax prices through search, analysis, and skilled negotiations. With a tightening used-car market and prices expected to remain higher than average, finding the best deal remains a priority for consumers looking for their next used vehicle.
The Carsala study compared non-negotiable prices at CarMax to prices, both pre-negotiated and negotiated, on similar cars at competing dealers. The study provides quantitative evidence suggesting that consumers can find significant savings through non-CarMax dealers if they are willing to research, compare and negotiate price.
"The purpose of the study was to examine used-car pricing trends and how car buyers could save money on their next car purchase,” explained Carsala CEO, Tyler Elliston. “The results of the study were profound in that not only could car buyers achieve a better sales price by negotiating with non-CarMax dealers but they could also save money with simple research and comparison."
Highlights from the study include:
• The average discount off Kelley Blue Book values for CarMax cars was .55% while the non-CarMax dealer discount was 1.41%.
• Price research alone produced discounts at non-CarMax dealers greater than those offered by CarMax (~9%).
• Price research and extensive negotiations produced discounts at non-CarMax dealers far greater than those offered by CarMax (~25%).
• More expensive cars for sale at CarMax were listed at a greater discount than cheaper cars.
READ THE FULL STUDY HERE
Methodology Summary
Carsala analysts randomly selected 20 popular cars and searched for each at Carmax.com. They then found similar cars (same year, make, model, and 250 mile radius) at other dealers and negotiated with a subset of those dealers. The Carmax prices were then compared to those offered by competing dealers, both before and after negotiations. Kelley Blue Book was used as an equalizer, accounting for differences in attributes like mileage and transmission. Finally, Autocheck reports were reviewed to control for vehicle quality.
The study was completed over a three-week period in January 2010. To view the complete study, CarMax Pricing Study, please contact Carsala at press@carsala.com.
About Carsala:
Carsala is a service for people who are looking for a used car, but hate the traditional buying process. The company uses the latest web technology, in conjunction with its own professional negotiators, to help its customers find the right used car, without the negotiating hassle, at a desirable price. Unlike autotrader.com, or any other online used car service, Carsala works exclusively for buyers to save them money, hassle and time on their used car research and purchase. The company was founded in 2008 by Tyler Elliston and Raif Barbaros, two MBA graduates from the UC Berkeley Haas School of Business, who were frustrated with the used car buying process. The Carsala team, in total, has more than a century's worth of experience in the automobile industry.
Carsala is privately funded and is financially backed by Labrador Ventures, Launch Capital, Band of Angels and several individual investors.
For more information about Carsala, please visit http://www.carsala.com.
