Wal-Mart Stores Inc (NYSE: WMT) is entering
the auto sales market after forming a partnership with several dealership groups including the nation's largest new-vehicle
retailer AutoNation, Inc. (NYSE: AN), according
to Automotive News.
CarSaver
The program will be called CarSaver, serving as an online auto retail platform, and is
set to launch the program on April 1 at 25 Wal-Mart stores in four markets: Houston, Phoenix, Dallas and Oklahoma City. CarSaver
will allow shoppers to select, finance and insure a vehicle through its website or on a touch-screen kiosk set up inside Wal-Mart
stores.
The service will then connect customers with a local, certified dealer and schedule an appointment to visit the dealership,
similar to a TrueCar Inc (NASDAQ: TRUE)
buying
experience, with no haggle upfront pricing. For the referral, dealerships will pay CarSaver a “success fee” of $350.
Pilot Version
The two companies launched a pilot version of the program in Florida in 2016 with much success, almost 80 percent of
appointments scheduled led to a sale and customers saved over $3,000 of MSRP.
Wal-Mart is essentially modeling the program off the success Costco Wholesale Corporation (NASDAQ: COST) has had through its own auto-buying program. The nation's
largest retailer is hoping to leverage its credible name to ensure a more trusted referral for an auto purchase.
Ally Financial Inc (NYSE: ALLY) has signed
onto the program as the preferred lender.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.