SELLING VEHICLES LOCALLY AND INTERNATIONALLY

The automotive market is in transition. Dealerships are scrambling to redefine their marketplace. International listings have exploded in the last several years as customer demand and vehicle prices can vary widely from one country to another. AutoXloo was founded on the belief that today’s technology tools can be leveraged to help businesses run more effectively. More specifically, that these tools can be leveraged to redefine what it means to be in business today and stay one step ahead of your competition, regardless of geographic location. We offer several web based tools to help you manage the business processes that you have in place to sell cars, in both domestic and international markets. We are committed to partnering with our customers to help them fully leverage the potential of the Internet.

AutoXloo’s goal is to make our customers the Internet leader in their local markets. Bringing new technology to the dealer website and car listing arena is how we improve your effectiveness in selling your vehicles online. Our systems have been designed with the user in mind. The seamless integration between the different modules ensure quick and easy updates to your constantly changing inventory. Our system is so simple to utilize that the least savvy computer users can upload and manage your inventory with minimal training. With web based access you will be able to manage your applications in real time with out having to install any applications on your desktop PC. And we offer phone or online support to help you maximize the value of your software investment.

Are you the car dealer resigned to the fact that you are going to make less money this year compared to last year? Or are you the dealer who recognizes a shifting market and changing economic conditions offers opportunities as well as challenges?

Everything you read in the trade publications and watch on television today paints dismal views of the automotive market in 2008 and 2009. And certainly, there are challenging realities facing everyone when contemplating the US automotive market.

AutoXloo offers services to facilitate international transactions that include:

• Online listing of inventory on international sites.
• Websites translated to other languages (English, Spanish, and Russian currently supported).
• Phone and email support (English, Spanish, Russian) for international inquiries.

Certainly, selling a car to another market requires a good understanding of market conditions, regulations, and transaction requirements, but as more and more business is done internationally, all of these considerations are easily and readily managed today. Think about how quickly consumer behavior has changed in the United States in the last five years:

• Initially, people researched a product online, but typically bought the product in a traditional brick and mortar store.
• Then, consumers became more comfortable completing transactions online, thanks to the help of companies like eBay, and Amazon.com, and travelocity and expedia.
• In the automotive market, several tools have been introduced to again boost a consumer’s confidence in buying online:
• EBay offers seller and consumer guarantees to ensure transactions are completed fairly for both sides.
• CARFAX allows easy checking of car history reports
• Vehicle pictures and videos ensure a buyer of overall car condition.
• Shipping companies routinely ship cars from dealers on one side of the country to consumers on the other side of the country.

So, how about instead of limiting your potential market to your local city or the US, have you thought about selling your cars internationally?

Consider the potential:
The exchange rate for the US dollar strongly favors exporting cars and this has trended upward for several years. The chart below shows how many dollars can be purchased with different currencies. Across the board, you see these countries being able to buy more dollars with their currency, which translates to them getting more value for their money when purchasing cars from the United States.

Exchange Rates Can Work in Your Favor When Selling Internationally:

Foreign Currency		Jan 2005	Jan 2006	Jan 2007	Jan 2008	July 2008	% Change
EURO		1.357		1.320	1.470	1.590	17%
Pound (UK)		1.919	1.724	1.959	1.997	2.001	4%
Ruble (Russia)		0.036		0.380	0.0497	0.0431	19%
Hryvnia (Ukraine)		0.193	0.198	0.207	0.202	0.218	13%

Consider the untapped market of new consumers purchasing vehicles as the less developed countries continue to develop. In the US market, you are selling replacement cars to people who already own a car, which translates to slow growth on a year to year basis. In many countries, you are selling a car to a person for the first time. The current rate of ownership in different countries are shown below:

And don’t neglect the fact that many economies continue to grow quickly. As an example, consider how the Russian economy has changed in the last 10 years. Their economy is tied to the $ of oil, which as we all know, has increased significantly in price. The disposable income of the average Russian citizen has doubled in recent years, and their economy has increased 7% per year for the last decade.

What it means to be an automobile dealership will undoubtedly change in the next 5 to 10 years. Certainly dealership Internet sales will become more and more important as dealerships work to stay relevant in the future. And international sales may increasingly be important. More and more car buyers are comfortable with buying a car online from one location and having it shipped to them.

The Internet makes it easier to broker an international deal:

• Email and instant messaging make communication much simpler and immediate
• Digital photos and video reinforce consumer confidence
• International financial transactions are easier than ever before
• Consumers throughout the world are more comfortable with using the Internet
• Freight forwarders manage shipping, customs paperwork

It's just a different audience. An audience that offers growth potential and with the current exchange rates, many times a better price.

If you would like a free guide on things to consider, then click here to download a “how to guide” when considering international markets.