Monday, April 7, 2008

Frustrated?

When we created iLuxCars our goal was to become the wholesale solution for luxury and exotic cars. The decisions we make and the rules we enforce are designed to realize this goal.

One of the advantages to the way that iLuxCars works is that it allows you as sellers to broadly distribute your vehicle to a large (growing larger every day) group of qualified buyers instantly. For buyers, there simply is no other place that gives you a chance to bid on big cars during the trade process.

We're unique. Oh, you say - it's just an auction. Well, almost. While iLuxCars feels like a traditional auction the choice to accept or reject the bid is up to the seller. Being the high bidder doesn't always mean you buy the car. Why? All of the vehicles on iLuxCars are Live Trades. The retail deal around the vehicle, even though your money is likely the best money, may not happen.

We sense a bit of frustration with this and frankly, we're a little confused. All auctions work this way. Even large auctions (Manhiem, for example) close less than 50% of cars that run. These are cars, remember, that are owned by the seller and have been trucked to the auction at the expense of the seller.

The close rate for an iLuxCars transaction is almost 25%. We should repeat this. Nearly 25% of the vehicles submitted on iLuxCars result in successful transactions. These are Live Trades that are NOT owned by the selling dealer and haven't been trucked anywhere.

The important thing about all of this is that if you are the high bidder on a vehicle you will, on average, end up winning 25% of the time.

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