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Online Car Retailer Launching Nation's First Car "Vending Machine"

cartechboy writes "Last year's Gallup poll showed that car salespeople are the least trusted professionals in America, ranking even below members of Congress. Enter, Carvana, an online dealership operating in Atlanta, Georgia. They allow customers to shop for cars online, secure loans online, and pay for cars online. Now they have gone one step farther and are claiming to remove the despised car salesperson from test drives and even post-purchase pickup by creating, yes, a giant auto vending machine. The facility, which will open at the end of November, will be a fully digital, 24-7 interactive 'vehicle-delivery center' designed to offer customers pick-up options after purchasing a vehicle online. They'll have floor-to-ceiling windows, custom LED lighting, flat screen TV's plus interactive keypads that identify customers based on unique buyer credentials. There will be three car pickup bays to allow for simultaneous pickups. One thing they won't have: car sales people (Note: there will be customer service reps there to answer questions). Carvana plans to expand on the idea, presumably if this Atlanta facility works."

19 of 99 comments (clear)

  1. This issue was solved years ago by hessian · · Score: 4, Insightful

    Carmakers like Saturn (RIP) offered no-haggle pricing and compensated their sales staff for being consumer-oriented.

    The reason car salespeople are horrible is that they're set up to compete with the consumer for a concealed amount of money that is either in rebate or discount to the dealer.

    Thus for the consumer, it's guesswork against a predatory salesperson interested only in their commission.

    1. Re:This issue was solved years ago by flyneye · · Score: 4, Informative

      It's true. Out of the plethoral diversity of jobs I've taken, car salesman was one I ducked out of for moral reasons. During the morning I shadowed experienced sales, during the afternoon, I trained from "the book". Basically , it's a book that shows you HOW to lie, what you can get away with and the techniques for prying money from innocents hands for a car that may or may not suit them. You don't care, as long as they spend MORE money than they came in to spend. I woke up one morning two weeks later, fixed breakfast, stayed home and felt good about myself. I had another job by afternoon.

      --
      *Repent!Quit Your Job!Slack Off!The World Ends Tomorrow and You May Die!
    2. Re:This issue was solved years ago by Coward+Anonymous · · Score: 4, Interesting

      No, the real reason the whole car buying experience is horrific is that there is no competition, by law. Car dealerships have indefinite, irrevocable monopolies in the regions they cover due to historical events that occurred 90 years ago. The real solution is to erase outdated laws, break the monopolies and open the market to real competition.

      Here is a podcast about it:

      http://www.npr.org/blogs/money/2013/02/19/172402376/why-buying-a-car-never-changes

    3. Re:This issue was solved years ago by Anonymous Coward · · Score: 2, Interesting

      I work at a dealership, didn't watch your video, but there are some reasons it is like this.

      Manufactureres want to keep quality control. To do warranty work you have to be certified by the manufacturer. They don't want any yahoo with a socket set doing warranty work or recalls and making things worse for the customer. It hurts the customer experience and their reputation. The manufacturers also can't monitor everyone who wants to do warranty work, or have enough parts in every possible dealership for that work. They plan for extra parts, say 100 fuel pumps in each state, which will meet the demand but if everyone can do it suddenly they need to make 5000 fuel pumps per state so each can keep in their warehouse, but they know only 100 will ever be used, this is even worse for recalls because they will need to take back that extra inventory on parts.

      Sales is similar in that they don't want to supply each area with 5x the number of vehicles that will sell in the area and have a glut of extra units that will never sell because everyone wants to sell the new car model.

      I will ALSO say we work with one manufacturer that doesn't have those deals and they guy two blocks away can sell the same new vehicles as us. So saying it is based on laws is obviously a lie, its based on what the manufacturers think is best for them. The ones we deal with want to make the best vehicles they can and not deal with selling them or fixing them and leave that to th dealerships.

      Tesla, for example, is taking this to the extreme level and only allowing themselves ownership of the dealerships for the reasons stated above.

      Just saying its not a black and white issue like people seem to think it is.

    4. Re:This issue was solved years ago by mjr167 · · Score: 2

      Why don't they do what other industries do and just sell the car to the dealer who is the responsible for reselling it to a customer? If the dealers paid for the inventory, they wouldn't buy inventory they couldn't move and the manufacture wouldn't give a shit if the dealer sold the car or it sat on their lot for ten years.

    5. Re:This issue was solved years ago by PPH · · Score: 2

      Its the business model that manufacturers came up with decades ago. They wanted to push product out of the factory and to independent car lots so as not to have to deal with inventory. Also, many car sales are made based on impulse. Dealers have something shiny on their lot and that will sway some customers. Usually the dumbest and most profitable. The warranty service issue is legitimate, but that could be solved by having authorized service centers operating as independent entities from the dealerships. Sure, some people will be too stupid to select a brand that has a service center in their same state. But this will put the responsibility back on to the manufacturer to support a maintenance network. And some people buy vehicles knowing full well that there is no dealership service center in their area. That's the facts of life in rural areas.

      Once one business model is in place, some people are fearful of change. There will inevitably be winners and losers with any change. That's life in the free market.

      --
      Have gnu, will travel.
  2. The real question is... by zippo01 · · Score: 5, Funny

    If I shake it real hard will a free car fall out?

    1. Re:The real question is... by rvw · · Score: 2

      If I shake it real hard will a free car fall out?

      Yeah shake that booty baby!

    2. Re:The real question is... by MiniMike · · Score: 3, Informative

      With my luck the car would get stuck halfway down and I'd have to buy a second car just to get the first one out.

  3. This seems like solving the wrong problem... by fuzzyfuzzyfungus · · Score: 4, Insightful

    With some probable exceptions, car salesmen aren't genetically-engineered-dispicable-abhumans or anything, they are just what you get at the pointy end of a system designed to resist non totally-fucked-up market pricing through a mixture of social flimflam, feature obfuscation, mandatory bundling, etc. (Sort of like trying to get an actual 'price' for a nontrivial medical procedure, except that with the car you are usually conscious the entire time, making it less pleasant)

    If you aren't trying to fuck around on prices, I'd venture to guess that you'll automagically get at least apathetic salespeople, rather than overtly slimy ones. Actually good ones might require additional management and technique. However, at the same time, it's not as though there aren't dozens of ways to design confusing and abusive web interfaces for inhibiting comparison shopping, pre-filling unhelpful checkboxes, hiding useful things, and generally shoving the user around.

    Barring gross incompetence on the part of either the management or the web devs, the experience is going to follow the economics. Are you running a business moving goods you think people will want at clearly stated prices? Your humans or your website will likely be pretty easy to deal with. Are you fucking around with the user? You'll either get slimy pressure-jockeys in person, or an absurdly unhelpful and downright malicious site. The medium is not the message, in this case.

  4. Comparing cars is hard by dargaud · · Score: 2

    And the makers don't want to make it easy on you. For instance I was trying to compare the inside volume of minivans. All the makers had sites in Flash with the dimensions and other stats impossible to extract, much less to compare even with other models of the same brand. Had to write them down manually in a spreadsheet. Of course some magazines have nice charts for you but they tend to go for the flashy models and anyway aren't interested to publish specs for anything from the current year or older.

    --
    Non-Linux Penguins ?
  5. Dealer franchise laws? by PeeAitchPee · · Score: 2

    Traditional car dealerships are owned by wealthy, powerful folks who've managed to preserve their monopoly via lobbying their local and state legislatures to force the auto manufacturers to sell thru the dealer chain. This forced "3 tier" system (a lot like the others many states enforce on commodities which throw off a lot of tax revenue, like alcohol, where a chosen few are granted a limited number of licenses) does nothing to help the consumer -- instead, it limits choice and artificially drives up the price. There's no practical reason for these laws in 2013, yet we still have them. I'm hoping that companies like this one and Tesla manage to disrupt the obsolete, 20th Century business model, but I have my doubts.

  6. Big Deal. Germany already has one by jittles · · Score: 2

    Go to Wolfsburg, Germany and you can see twin towers that do the same thing. I didn't buy a car there, I only visited, so I don't know all the details. My understanding is that you go there, pick out the car you want, and then you go to the tower and watch the robot pick it up and deliver it like a coke in a vending machine. I watched it serve up a few cars. It's pretty cool.

  7. Re:Next, fix your car yourself. by bleh-of-the-huns · · Score: 3, Interesting

    Actually, that used to be possible. There were some shops that rented out bays and tools, and had mechanics on staff to assist if you wanted it. Great for those easy jobs that you get ripped off on, say like brake jobs, $2500 quote for all for wheels for my AMG.. fancy car aside, I did it myself with $1k in parts, rotors are kinda pricey, a jack, and about 2 hours, and most of that time was jacking the car up and down. Would have been nice to have a lift I could have rented, took me 5 min per wheel for parts swap.

    However, most of those shops that used that business model in the DC/MD/VA area are no longer in business, so guessing the business model was not profitable. There also used to be some shops that rented out the bays and lifts on weekends when they were closed, but they stopped due to liability issues.

    Maybe it will catch on again in the future, but for now.. I'm stuck with jacks and jack stands.. or spend $4k and get a portable half high lift.

    --
    I came, I conquered, I coredumped
  8. Re:Cars are a commodity by speedlaw · · Score: 2

    The reason for options and such is that so no two cars are alike. There will always be the ones on the lot that don't match whatever you researched on line. (unless you buy to order, rare in the US) so the pricing isn't clear...by design. This poster is on, though. When you go car shopping, do it at the end of the month, on a bad weather day, and fully expect to spend at least an hour, maybe two, in each dealership. If you go in expecting this to take way longer than it should, you have negated the time factor they play on. Make sure you have financing aligned already, and that there is no trade in deal to confuse things.

  9. Re:when car brakes after falling in Vending machin by CanHasDIY · · Score: 2

    when car brakes after falling in Vending machine you own it and must pay costs to get it fixed. No refunds as well.

    What if the machine breaks the brakes before the brake can break the brakes?

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
  10. Re:scion by Reece400 · · Score: 2

    Mod up, Fog light are supposed to low to the ground so they don't light up the fog directly in front of you reducing visibility - brighter main bulbs would just reduce visibility further in thick fog. Sales people have a bad habit of thinking they know more than they really do.

  11. Re:Free car rental? by Joce640k · · Score: 2

    Also useful if you need a pickup truck for an hour to move something big/heavy.

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    No sig today...
  12. A Tale of Two Toyotas by ImprovOmega · · Score: 3, Insightful

    I live in a small town a couple of hours away from a major city. A couple of years ago my wife and I went to the local dealership to try and get a reasonable priced lease on a new Camry. Not only did the local dealership insist on us paying full sticker price, they also wanted to add on top about another $1000 for dealer added "upgrades". They were absolutely adamant about not budging on the price, to the point of insulting me to my face claiming that I just didn't understand financing. After a few hours of back and forth we left disgusted.

    Flash forward two weeks later. We go on over to the major city, make an appointment with a salesman at one of their Toyota dealerships and book a hotel room for a weekend of R&R in case this goes south. We show up at that dealership and are greeted by a friendly guy who has a couple of cars ready for us to pick from for a test drive. The sticker price goes out the window as he starts off with a deal about $2500 under the factory sticker, no weird dealer add-ons, and all the same or better features as we were looking at in the small town. Quick test drive and some paperwork later and we were in and out in less than an hour with a far more pleasing experience and at least $50/month lower payment than the local dealership was trying to foist on us.

    The lesson to be learned here is that not all dealerships are created equal. Yes, some of them are packed with slimeballs out to screw you over, but others do in fact have decent folks staffing them and a non-sociopathic manager who understands that giving people a good experience at a reasonable price will get so much more business in the long haul that it's the far better path to take. You really do have to shop around. Oh, and it helps to know the dealer invoice price. If you know what they paid for the car then you're in a far better position to negotiate.

    TL;DR If you're willing to shop around you'll find that not all dealers are dickholes.