LiveDealAutos.com has begun charging dealers $20 for every lead it generates and letting dealers list used vehicles on the sales Web site for free.
Dealers previously paid $10 per vehicle for listings. And for $500 a month, they could buy priority placement of their vehicles on the site, locally and nationally.
LiveDealAutos.com is part of LiveDeal.com, a year-old Web site similar to eBay.
LiveDealAutos.com lists about 35,000 used vehicles. About 29,000 listings come from about 500 dealerships. The rest are from private owners.
Devon Cohen, LiveDeal's automotive vice president, says the new business model is more in line with how dealers market vehicles online. Dealers will pay for results rather than listings, he says.
"That's where the market is going," Cohen says.
LiveDealAutos.com had about 300,000 visitors in May.
Dealers can post photos of used vehicles.
The Web site transfers shoppers who call a toll-free number to dealerships that list used vehicles.
Customers also can reach dealerships by e-mail.
LiveDealAutos.com charges dealers for completed phone calls from consumers and for e-mail leads that include valid e-mail addresses and phone numbers, Cohen says.
Dealers do not pay for multiple contacts from the same customer, he adds.
Dealers who paid for priority placement of their vehicles on LiveDealAutos.com can keep that status for a year, Cohen says.
LiveDealAuto.com's chief competitor, eBay Motors, charges sellers $40 to list a vehicle and another $40 when it is sold. Dealerships pay extra for more prominent listings.
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