Depending upon which plan they choose, CarWoo will facilitate quotes from two to five nearby dealerships. Buyers are free to negotiate the final price, but rather sitting in some cubicle while the saleman makes repeated trips to “talk to the manager,” it all happens anonymously online. The process is transparent, and both the buyer and the dealers involved see all of the offers that come in.

Think of it as eBay in reverse: Buyers indicate how much they’re willing to pay and sellers decide whether the offer is acceptable. Dealers can see the negotiations in real time and — if they are able — can undercut their competitors directly to offer the best price. Company spokeswoman Renee Blodgett said CarWoo has about 3,200 dealers participating nationwide, with 50 more added each week.

Don’t think that dealers are getting a raw deal, though. Because potential car buyers have to put down money up front, dealers can be sure the leads they get from CarWoo are customers who are ready to buy.

When negotiations are complete, the buyer and seller are not legally bound to seal the deal. However, Blodgett says buyers can rate the dealerships, and there is a system in place to prevent bait-and-switch deals. “We do require our dealers to honor their offers in order to continue their participation,” she said. “Buyers are not ever required to complete the transaction.”

Whether customers decide the service is worth a fee of $39 or $79 remains to be seen, but we can certainly imagine some weary souls with inboxes full of spam from dealerships might be interested in negotiating the price of a used car at their own desk rather than the sales manager’s — even if it means they don’t get a free cup of coffee.

Authors: Keith Barry

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