The Evolution of the Car Buying Industry

THE EVOLUTION OF THE CAR INDUSTRY A MARKET THAT LEADS IN VEHICLE INNOVATION, BUT REMAINS IN THE DISTRIBUTION DINOSAUR AGES From the launch of Henry Ford's assembly line to self-driving cars, it's undeniable that the car industry has accelerated in product innovation for more than a century. However, while our cars continue to get smarter, the sales channel for consumers has remained static. The below infographic compares the advanced vehicle innovations that continue to change the auto industry with the distribution channels that have been stagnant due to a century of legislation. The mid 2000's marked the first true advancements to the sales process, providing alternatives to traditional dealerships. II//I CAR INNOVATION CAR DEALERSHIPS EARLY DAYS EARLY DAYS German inventor Karl Benz created the first modern automobile, a three-wheeled 1886 "Motorwagen." Benz made several improvements in the Motorwagen, which eventually featured four wheels, a fuel tank, and rear brakes. Robert E. Twyford, a resident of Pittsburgh, Pa., included a mechanical power steering 1900 mechanism as part of his patent (U.S. Patent 646,477) issued on April 3 for the first four wheel drive system. The first independent car dealership was 1896. opened in Detroit by William Metzger. The first franchise car dealership was also opened that year in Reading, Pa. by H.O. Kohller. Ferdinand Porsche developed the 1901 Lohner-Porsche Mixte Hybrid, the first gasoline-electric hybrid automobile in the world. Ford Motor Company created the Model T, the first car aggressively marketed to the average 1908 family. By widening the sales base for the automobile, Ford did a great deal to create an industry for cars and car products. The first franchise law was passed. Colorado 1937 was among the first states to start interfering in arrangements between dealers and manufacturers. In more than 70 years, just Henry Ford invented the assembly line and was able to make the Model 1913 one section has been amended. Teven more affordable H and accessible. As governor of Texas, George W. Bush signed what was then the nation's toughest law in the country banning new car sales online. Egged on by local car dealerships, state regulators invoked the law to help shut down Ford's fledgling attempt to sell used cars online. MID-CENTURY DEVELOPMENTS 1999 The first car phone was used in St. Louis on June 17 by the Bell System. The original equipment 1946 weighed 80 pounds, and there were initially only 3 channels for all the users in the metropolitan area. MODERN DAY DEVELOPMENTS The first crash test dummy 1949 was the Sierra Sam. California legislator Mark Leno introduced legislation to let consumers buy Studebaker-Packard was the first company to 1964 2005 hybrid and other low-emission vehicles directly from introduce seat belts as standard equipment on all of its vehicles. manufacturers online. The bill came in response to evidence that local dealerships were price-gouging consumers seeking hybrids, which were then in short supply. Allen Breed was holding the patent (U.S. #5,071,161) to the only crash sensing 1968 technology available at the birth of the airbag industry. Breed invented a "sensor and safety system", the world's first electromechanical automotive airbag system. The 1973 Oldsmobile Toronado was the first car with a passenger air PRNDL was created to help facilitate your online used 2010s, vehicle purchase. Tred F PRNDL Get your deal in gear bag intended for sale to the public. launched its at-home tred. test-drive service MODERN DAY EVOLUTION in Seattle. In the late 1990's and early 2000's, sales of sports utility vehicles helped revitalize the 1990s US automobile industry. It H was widely reported that automakers made about $10,000 per unit on a SUV or truck, compared with breaking even on a compact car. In July, a Tesla-backed grassroots petition asking the federal 2013 government to "allow Tesla Motors to sell direct to consumers in all 50 states" reached 100,000 signatures. TESLA The hybrid-electric vehicle became widely available with the release of the 1997 Toyota Prius in Japan. This car was followed by the launch of the Honda Insight in 1999. ONLINE BUYING EVOLUTION Tesla was officially revealed to the public on July 19 in Santa Monica, Calf., at a 350-person invitation-only event held in Barker Hangar at Santa Monica Airport. The first Tesla Roadster was delivered in February 2008 to Tesla co-founder, chairman and product 2006 CARVANA CHA ICE 140.000 OXOenntiar CARVACE 141.250 architect Elon Musk. 2011 AOAS CARVAN MICE 4.100 2011KESENZE CLAS CAWAPRICE 41.000 Toyota announces in May that sales of the Prius, the first mass-produced hybrid vehicle, 2008 surpassed the one-million mark, coinciding with record gasoline prices in the US. 2013 Carvana, the first complete online auto retailer that allows consumers to browse, Auto Bailout: In December, President George Bush approved $17.4 billion in rescue loans for General Motors and Chrysler. finance and purchase a car entirely on the web, launches. With its patent-pending 360° photo process, the company sells 2008 more than 100 cars in its first six months. In May, the Nevada Department of Motor Vehicles issued the first license for an autonomous car. 2012 The license was issued to a CARVANA Toyota Prius modified with Google's experimental driverless technology. www.carvana.com %24