2 December 1999: The National Automobile Dealers Association (NADA), which represents 19,500 franchised dealers, reports that almost three-quarters of dealerships now have websites. Furthermore, 45% of all dealerships without sites plan to implement one within the next six months.

Dealer websites will not eliminate middlemen: many customers will still insist on test drives and kicking tires. However, these sites let customers view inventory and check prices. In addition, almost 40% of dealer sites allow customers to complete financial applications online and 42% allow customers to schedule service appointments.

NADA notes that customers are responding to the advantages of online car shopping. The majority of sites average 50 hits per month and the percentage of sites that received more than 500 hits per month jumped from 9% in 1998 to 14% in 1999.

The study also found that these websites require additional personnel for maintenance:

• 97% of dealership websites have a designated staff team to maintain and monitor the site
• 95% have salespeople whose sole assignment is to handle internet generated inquiries.