THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, October 24, 1996 TAG: 9610240333
SECTION: MILITARY NEWS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
LENGTH: 83 lines
Car shoppers who dread treks through dealerships' parking lots can now use their personal computers to browse through thousands of automobiles.
And it gets even better. With a few clicks of a computer mouse, a consumer soon may be able to get instant approval for an auto loan or custom order a car from the manufacturer.
``Some day, a customer may be able to sit at home and order a car,'' said Kevin McHugh, president of Hall Auto World in Virginia Beach. ``It would be built that day and shipped the next day. . . . We're moving in that direction.''
Hall Auto World is among a growing number of dealerships showcasing their cars, trucks and sports utility vehicles on the Internet. By computer, customers can look through Hall's inventory of 3,000 new and used automobiles, researching price, make, model and other features.
Hall's online site, which is updated three times a day, includes photographs of some vehicles, but more will be included over the next several months, McHugh said.
Other local dealers, including Freedom Ford of Norfolk, are in the process of putting their auto inventories online. In the next several months, consumers should be able to access auto inventory through http://www.freedomford.auto-network.com
Hall might have gotten a jump on the competition, but big rivals aren't far behind. On Monday, Richmond-based Circuit City Stores Inc. announced that it was taking its used-car venture, CarMax, online.
That means local shoppers can check out CarMax's inventory - thousands of used cars - without making the two-hour drive to the dealer's nearest location in the Richmond suburbs.
For consumers, the benefits of online car shopping are clear. Armed with more information, they can save time by cutting down the number of visits to dealerships.
``The last thing I have time to do is argue with some salesman over price,'' said Bob Miner, who runs his own gas-fireplace business in addition to working full time as a professional firefighter in Virginia Beach.
After hearing about Hall Auto's Web site, the Virginia Beach resident logged on and located his vehicle - a 1996 Ford Econoline van - at Hall's Newport News dealership.
``We came to a price, they sent a fax to me and then I went to get it,'' Miner said. ``I had everything done for me.''
For dealers, showcasing their inventories online is one more outlet to attract shoppers. Already, Hall has attracted dozens of prospective car buyers who have cruised through the company's online pages.
Internet marketing, however, has its limitations, auto analysts say.
Despite technological advances, auto industry observers don't expect dealers will ever be able to make sales simply by using the Internet. Even if every piece of information on an automobile is available online, shoppers will always want to kick a car's tires, peer under the hood and take a test drive.
``There's a lot of talk that cars of the future will be sold over the Internet,'' said George Hoffer, an automobile industry analyst in Richmond. ``I don't think that's going to happen. . . . Who would buy a used car sight unseen?''
Another problem: the Internet itself.
CarMax's online site, which is updated daily, offers a wealth of information on its automobiles, everything from photographs to minute details. But because of the large number of auto listings, online browsers may find themselves twiddling their thumbs while the information is downloaded.
If shoppers have computers with less than eight megabytes of random access memory and slow modems, the wait can be even longer.
Despite the limitations, it's clear that online car marketing is the latest trend in the automobile industry. Dealers anticipate that consumers will soon be able to apply for loans or even order cars with specific features.
Hall recently signed up with ADP Dealer Services, which announced plans earlier this month to build a system allowing instant loan approval. So far, ADP has enlisted NationsBank and Hall. It expects to sign up more lenders and dealers who have pages on the World Wide Web.
But Hall's McHugh anticipates that the auto industry will make further online advances.
Customers at some dealerships in California and Florida can use showroom computers to check inventories at distribution centers, he said. They can order specific cars and have them shipped to the dealerships, he said.
Next, McHugh said, buyers will be able to custom order cars through dealer sites and have them shipped from the manufacturer the next day. ILLUSTRATION: Graphic
Color photos
[For complete graphic, please see microfilm] by CNB