Wal Mart gets into used car business... sorta
Wal-Mart offers a closely-targeted audience: buyers looking for the best deal. Other companies have tried to piggyback on that and grab a slice of the immense Wal-Mart fan base. A used car company called Live X Auto Exchange could be the latest: it has set up portals in two Phoenix-area Wal-Marts that provide used car listings from local dealerships, banks, and private sellers.You don't actually buy the car at Wal-Mart, and Wal-Mart has no interest in Live X other than providing it space. All you do is set up a Live X account at the store and browse the listings. If you see a car you want, Live X will help you get financing. Should you want to make a deal, you will arrange for the seller to get the car ready for you to see it in person. That's it. Although Live X is set up at Wal-Mart, we would imagine you can also set up an account at home.
Patrick Dial, the man behind Live X, was formerly a promoter for Garth Brooks. If you check out the Live X site, it's set up like a concert entertainment site -- you can even buy a Live X hat and there's a Live X Lifestyle section. It's a neat idea, but we're not sure why you'd create a Live X account at Wal-Mart unless you bought some Little Debbie snack cakes and then suddenly remembered you were looking for a used car, too. A company in Houston tried to sell used cars in Wal-Mart parking lots a few years back and lost $6 million. But for all of you bargain shoppers, it's just another thing you can get at your local Super Center. If you live in Phoenix, that is...
[Source: Automotive News - Sub. Req.]
Reader Comments (Page 1 of 2)
Mazda FTW! 8:28AM (12/23/2008)
I hope finding a '98 Maxima is easier than finding a $6 beach tees.
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Avinash machado 9:49AM (12/23/2008)
Maybe they could sell Tata Nanos at Walmart.
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moyoi 10:36AM (12/23/2008)
could be an good venue honestly.
They should let the dealer park the cars in the walmart like they do in my local mall.
Patrick C. Fogarty 12:13PM (12/28/2008)
Avinash Machado
I agree the Tata Nanos would be a hit and Wal Mart would be a good place to distribute the car as well as the concept.
My disappointment is that we did not develop that car in this country. We need the car and the jobs created by its manufacture.
Being a design engineer I know first hand that we have the time,the place the materials and the expertise but lack the desire and the vision .
ryan 9:55AM (12/23/2008)
i don't get it. i'm an internet manager here at our showroom, and you can do all of that at home. why get all dressed up in your sunday best to go to wal mart to do the same thing you can do at home in your comfy wifebeater with a coors in your left hand?
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Osky 10:20AM (12/23/2008)
You're not getting it. this isn't for the internet savvy. This is targeted at those people without internet at home. The idea is that they aggregate car searches and other services into one website that is easily accessible from kiosks that can be found in common locations. Walmart is some prime, high traffic real estate. Now people no longer have to go from car lot to car lot, real or virtual, searching for cars, nor do they need a computer at home with internet access.
Granted, your scenario, a site aggregating cars for access from home, isn't as innovative and has been done several times already.
Frylock350 10:56AM (12/23/2008)
Have you ever been to a Wal-Mart? A wifebeater is the "sunday best" for the clientele
ken_aisin 11:34AM (12/23/2008)
Walmart should actually sell used cars (or even new cars) in store with everyday low prices. I mean, every car in store comes with an everyday low price tag, but without the commissioned salesman, and without having to bargain with the sales manager. I'm sure this would make car shopping a much easier, and much happier experience.
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osky 12:14PM (12/23/2008)
There is a place like that already. It's called Carmax.
davesss 2:31PM (12/23/2008)
Dumbest idea I've heard. Another idiotic marketing niche.
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yama96 7:27AM (12/28/2008)
The Sam's Club here in Naples, Fl. participates in this. I guess they "lend" the use of their parking lot and several dealers haul their cars to it to sell. If ya think you are getting a better deal this way think again. Who pays for the transportation cost for the cars from the local dealers to the Sams' Club parking lot? And then the remaining inventory back to the dealer? The buyer does. There are still "salesmen" there, who get their cut. Where is the savings?? I once stopped there and was told by a salesman to wait and buy the unit from the dealers lot and I could get it for less. Makes sense. Why pay for the additional shipping and time when you can go right to the source.
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cary 7:29AM (12/28/2008)
We have city laws that allow any parked automobile with a "FOR SALE" to be towed. I have been selling Toyotas since 1982, used cars for myself for 10 years.The automobile business has changed form making reasonable profits on the cars,to making it on the SERVICE DEPT.Unless you want a really HOT model ,now is an excellent time to buy a new car.With low rates, most cars will be sold at close to NUT COST to get it off the dealers floorplan.Dealerships will be closing in record numbers over the next 24 months.There are many new websites that will come online to provide NEW and Used automobiles,over this same time frame.We may not like it but,Change is good.
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Mark 7:42AM (12/28/2008)
Oh yeah, I'd DEFINITELY buy a car from my local Walmart.. I can't even trust the MILK I buy there........ let alone a car.
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Ihate Walmart 8:39AM (12/28/2008)
NOT a good idea. Walmart has a habit of moving into a new area and destroying a local economy by forcing out the competition. The current economy is a perfect opportunity for them to now absorb the business of dealerships that are going to fail. I personally don't want a car built in China. It will start with a website and evolve into full blown car sales at the store. Walmart has the potential of becoming "big brother" as it is. As small stores are forced to close, competition evaporates. If we are not observant of what is happening, pretty soon we will all be dependent on Walmart for everything from prescription medicine, food and clothing to automobiles and gasoline. It doesn't take a rocket scientist to figure out that once all the competition is gone, so will also go the "every day low prices". Supply and demand. If you are the only game in town, you control supply and greed begins to dictate what things are worth. When there is only one store within 30 miles of you, a gallon of milk is worth $6. The shopping experience goes from "shop for the best deal" to "how bad do you want it, take it or leave it". Wake up people, Walmart is a big player in the destruction of our economy and way of life. For every low paying job Walmart creates when it comes to an era, it causes the loss of at least 3.
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Shelia 2:35PM (12/28/2008)
Every body says WALMART runs the mom & pop stores out of business. No, they do not. The consumers who shop at Wal-mart instead of the smaller shops are the ones ruining the smaller businesses. You have a choice. Vote with your money. I have several friends who will not shop at Wal-mart. They like thw smaller stores and the personal service. Also, I believe now that Sam Walton is gone, when the grandchildren take over the stores, we will see a change for the worse in Wal-mart. The grandchildren will ruin Wal-mart.
ROBBIE 9:57AM (12/28/2008)
Sams club has been selling cars for a while in kalamazoo
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danzillo 10:55AM (12/28/2008)
If its made in CHINA it will be sold at walmutt...
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David 10:55AM (12/28/2008)
Why is it if the press can insert the name Walmart it is suppose to be a big deal......COSTCO has been selling cars for years and narry a word from the likes "Jonathon Ramsey" the one offering the "great" insight in this article......
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hello 11:06AM (12/28/2008)
I think Wal-Mart selling cars is possibly a good idea. They could sell cars right in their lot. Maybe expand the lot and have half of the parking lot be cars for sale. Think about it, people want cheap cars and wal-mart would sell them. Wal-Mart employees have a 10% discount card and they could get the cars even cheaper. Think about it, a 12,000 dollar car - 10% = 10,800
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dmt 12:04PM (12/28/2008)
It seems to me that in these tough economic times, that it would be smarter to DRASTICALLY reduce the cost of your products, in order for it to sell, than to go out of business all together. Maybe today's consumers will eventually teach retailers an invaluable lesson concerning supply and demand.
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