Jeff Kotlarek of Taylor Chevrolet in suburban Detroit expects a bump in vehicle sales from a new deal between search engine Yahoo and TrueCar Inc., an online car pricing and lead generator to dealers.
For nearly five years, Taylor Chevrolet has paid TrueCar $299 for each new vehicle it has sold from a TrueCar lead, said Kotlarek, the dealership's Internet sales manager.
He expects more leads now that TrueCar has agreed to pay Yahoo $150 million over three years to capture leads from at least 10 million auto shoppers who visit Yahoo Autos each month. The exclusive partnership kicks off Jan. 1.
To prepare for the volume, TrueCar intends to nearly double the number of its participating dealer franchises over the next year to 10,000 from 5,600 today, said TrueCar CEO Scott Painter.
Kotlarek says customers sent to Taylor Chevrolet by TrueCar account for as many as 15 vehicle sales per month. The store sells about 175 new cars monthly, he said.
"I expect the hookup with Yahoo will be another source of business," Kotlarek said.
Yahoo has guaranteed TrueCar.com at least 10 million unique visitors per month, but Painter said he is confident the number will be consistently higher.
For comparison, online shopping site Edmunds.com registered nearly 7 million unique visitors in September, according to Compete.com, an online audience tracking service.