Wal-Mart moves to sell cars

Date: 23 JAN 2017posted by Car Rentaledited by WinX

Wal-Mart the world's largest hypermarket chain has decided to start selling cars via their new partnerships with dealership groups. The program, named CarSaver is an online auto retail platform launching on April 1st in about 25 Wal-Mart stores in four markets - Houston, Dallas, Phoenix and Oklahoma. Wal-Mart is the world's largest company by revenue, as well as the world's largest private employer with 2.2 million employees. Operating in 63 different banners, the corporation operates 11,666 stores and clubs in 28 countries as of December 2016. It is the most popular retail chain in North America since customers are able to buy almost anything at a very low price and now they are about to be able to purchase cars at Wal-Mart too. CarSaver will allow shoppers to select, finance and insure a vehicle through its website or on a touch-screen kiosk, supported by bilingual auto advisers available by phone. Ally Financial will be the program's preferred lender.

Potential customers will be able to select a new, used or certified pre-owned vehicle and apply for financing and auto insurance at the kiosk. CarSaver will then connect the customer with a local, certified dealer and schedule an appointment to visit the dealership which are all within 15 miles of the Wal-Mart. If the shopper doesn't contact the dealership, an auto adviser will try to reconnect with the potential purchaser. Upon a successful purchase, the dealership will pay CarSaver a "success fee" of $350 in most states or a subscription fee depending on state law. They will be operating a no sale, no payment policy with CarSaver. AutoNation will be one of the dealerships participating in the partnership with Wal-Mart and CarSaver. AutoNation is the largest automotive retailer in the United States. The company owns and operates over 310 franchises throughout the United States and leads the nation in sales of new and pre-owned vehicles.

CarSaver, Wal-Mart and auto lenders and 20 participating dealerships conducted a pilot test trial version of the program in Stuart, Florida in April 2016. Nearly 80 percent of the appointments scheduled through the program led to a sale and the customers saved on average more than $3000 off the sticker price with the programs no-haggle, upfront pricing. The program is expected to sell 1000 units, split between new and used per year, per store. There are currently over 3500 Wal-Marts in the United States and 90% of US consumers live within 15 miles of a Wal-Mart with an average of 140 million visits a week. If the program is successful, CarSaver hopes to be in Wal-Mart Supercenters nation-wide within two years matching customers to over 10,000 certified dealership partners.

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