Web no site for Arthur Daley

By Alastair Sloane

Selling cars on the Internet is expected to be one of the legislative changes the Government will make to the Motor Vehicles Dealers Act.

Another is the approval of direct selling, like that used by Korean carmaker Daewoo until its trading licence was revoked earlier this year.

The amended act is expected to have its first reading in Parliament within the next few weeks.

"We haven't seen the amendment, but my understanding is it will allow direct selling," Daewoo chief executive officer Mark Vidak said.

"In theory it should go through very quickly. I've been assured that cabinet has a good handle on it, subject to the wording, and that the Opposition has too."

Daewoo's direct-selling method, introduced in 1997, was ruled illegal by the Motor Vehicle Dealers Institute under the present act, which basically says that dealers must have a car yard.

Daewoo has been restricted over the past two months to dealing only in greater Auckland, but that hasn't stopped it flying customers to the city.

Last month Daewoo sold 170 new cars, only 30 or so down on its best month last year when it was operating largely without restrictions.

Trading on the Internet falls into a direct-selling category, say industry analysts.

Toyota Australia shocked its dealers and the industry last week when it set up a Web site selling cars direct to the public.

A Chrysler Jeep dealer in the United States more than trebled sales last year by using the Internet and fixing a non-negotiable price. He sold new cars only, refusing trade-ins.

The phrase "the quick and the dead" sums up the direction the car industry is taking.

Buying on the Internet is also becoming popular in Britain, where it is possible to get the car you covet delivered from a dealer or consultant to your doorstep.

One such Web site is run by Floreat Car Consultancy in London. Its director, John Spooner, carries out the car search, organises a trade-in if needed, and negotiates a price.

He says he offers a service a cut above the used-car broker, who simply introduces buyer and seller. Spooner visits the buyer and offers advice on the type of car needed. His fee works out at about 10 per cent of the car's purchase price.

The industry says direct-selling does away with the Arthur Daley types, the larrikin Londoner from television's Minder series.

The first Internet Web site in Britain to deal only in new cars is New Cars Direct.

The site allows users to seek specific makes and models, or to find all available cars that fit their budget.
In all cases, the prices are considerably cheaper than carmakers' list prices.

Used Japanese importers in Auckland are already using the Internet to buy from auction houses in Japan.