Consumers specify a model and the maximum price they are willing to pay, then Autoebid's suppliers start a bidding war for their business. As a benchmark for both buyer and supplier, Autoebid.com displays the best price it has previously been able to source. If the buyer has been able to independently source a better price, this can also be included as a target for suppliers.
Escrow facilities supplied by Fortis Bank are used for buyer's deposit and balance payments. Autoebid.com does not take a commission from suppliers; instead, buyers pay a finder's fee of 1% or £250, whichever is the greater: "This allows us to retain our independence and enables us to access every supplier nationwide, meaning that we are able to offer buyers the most competitive prices and the quickest delivery times," explains Amin Saleem, Autoebid's founder.
With a 'Group Buying Scheme', if more than five people are looking for the same vehicle, Autoebid.com says it will negotiate a bulk discount to win all of the business. Typically, this equates to a further 3 per cent discount with 5-10 cars, and 5 per cent for 10 or more. While Autoebid claims to be first to market with a consumer reverse auction for new car purchase, the online buying system pioneered by www.oneswoop.com in the 1990s also relied on (continental) dealers contributing bids to provide the optimum match to buyers' specifications, including price, specification and delivery. (www.autoebid.com)