Two entrepreneurs from Leeds have launched a new car buying website, called CarHerd.com, which claims to offer discounts to consumers by buying stock in bulk and avoiding price negotiation with dealer - although not entirely cutting them out of the purchase.
Mark Heptonstall and Oliver Todd say they are taking advantage of a ‘group buying’ phenomenon on the internet. Groupon is probably the best known exponent of this, with five million registered users.
New car buyers are now given the option to purchase a vehicle through CarHerd.com. CarHerd.com negotiates a greater discount with a dealer on behalf of a group of buyers, reducing the price of new vehicles "significantly" - up to 15% the founders claim. The deal is all done online or via email. Once the purchase is confirmed the buyer will be given contact details of a dealer for them to order the car.
Buyers still deal with car dealers direct and have the luxury of test driving their car, speaking with the sales staff, and negotiating their ideal specification.
“The consumer now has the power, within modern day sales – thanks to the price comparison and daily deal sites.
"Companies now have to monitor the market and pivot their strategies to stay competitive. Potential customers are more likely than ever to spend time researching the best deal on a service or product. We believe leveraging the power of a group of buyers will be the future of car buying,” said Oliver Todd, co-founder of the website.
Cars from 21 manufacturers are available.
Heptonstall and Todd (aged 31 and 22 respectively), came up with the idea in late 2011.