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Changing the way you buy cars
Contact Us – Frequently Asked Questions

"Is it a Reverse Auctions website?" and "Are you opposite of eBay" are the two most frequently asked questions. There is no simple answer since we are a unique website of our own having some resemblance with auctions and reverse auctions

Difference between LetDealersBid.com and eBay:
On a regular auctions website like eBay, multiple buyers place their bids against an item. Price goes up and highest bidding buyer must buy item or face some sort of penalty (in most cases). Successful buyer loses money as time progresses since price can only go up

Difference between LetDealersBid.com and Reverse Auctions:
Reverse Auction is opposite of eBay: Buyer requests bids from sellers and price goes down as time progresses. Several variations exist but are not popular due the fact sellers don’t like bidding against each other. We have come up with our own version which circles around offers not bids in its real sense to make this model successful.

On LetDealersBid.com buyers request bids from dealerships but dealerships submit their offers. There are two types of offers dealerships can make: Offer exact same vehicle buyer is looking for (we call such offers BIDS), or offer any other vehicle dealership feels is comparable to original request (we call these OFFERS). An example below explains bids and offers in great detail

How Our Website Works:
Ours is an "Offers Based" Model where:
  • Buyers selects what he/she is looking for (New | Certified Pre-Owned, Year, Make, Model, Trim, etc)
  • Multiple dealerships across the country submit their offers to the buyer online
  • Dealerships adjust their offers if needed (based on offers they see others have submitted)
  • Dealerships have an option to offer any vehicle to any buyer (as long as they stay within same car class - Everyday Cars and Exotic Cars)
  • Buyer logs in anytime to see all incoming bids and offers to compare them side-by-side
  • Buyer can communicate with dealerships through our website if needed and can further negotiate the price
  • Buyer selects a dealerships based on price, and comfort (distance, reviews/ratings, etc)
  • Buyer makes $500 deposit to hold the vehicle for 2 weeks. Buyer either picks the vehicle or gets it shipped based on personal preference
How Dealerships are paid through Dealership Rewards Program (DRP)?

LetDealersBid.com pays lowest bidding dealerships money through Dealership Rewards Program (DRP). Below is how this reward program works:

  1. Buyer submits request for bids and has an option to contribute x amount of money towards Dealership Rewards Program (between $20 to $500 depending on the type of vehicle)
  2. Dealerships submit their bids/offers to buyers through our website. Some bids/offers are always lowers than others
  3. When buyer accepts some bid/offer, or when buyer’s request expires with 5 or more bids, we divide buyer’s money by 4 and credit dealerships using following guidelines
EXAMPLE:

John lives in Chicago, IL, and is interested in buying an Acura MDX 2010. He comes to LetDealersBid.com and submits a request for bids after contributing $90 towards Dealership Rewards Program.

Following vehicle offers are submitted by the dealerships within the time-frame John gave to dealerships:


Dealership Name Vehicle Offered to John Offered For
Dealership A Offered exact same Acura John is looking for (BID*) $45,000
Dealership B Offered exact same Acura John is looking for (BID*) $44,700
Dealership C Offered exact same Acura John is looking for (BID*) $42,300
Dealership D Offered exact same Acura John is looking for (BID*) $45,750
Dealership E Offered exact same Acura John is looking for (BID*) $46,200
Dealership V Offered Brand New 2010 Nissan Armada (OFFER**) $41,000
Dealership W Offered Brand New 2011 Honda Pilot(OFFER**) $38,000
Dealership X Offered some Certified Pre-Owned vehicle (OFFER**) $27,870
Dealership Y Offered some Certified Pre-Owned vehicle (OFFER**) $22,000
Dealership Z Offered some Certified Pre-Owned vehicle (OFFER**) $31,350

* What are BIDS?
When dealerships offers exact same vehicle to the buyer said he/she is looking for, we call it a BID in our system to help us separate such offers from "Comparable Vehicle Offers" (see on right)
** What are OFFERS?
When dealership offers to the buyer something other than what buyer is looking for, we call it is an OFFER for simplicity reasons


How we determine amount dealerships are going to earn through Dealership Rewards Program (DRP)?

LetDealersBid.com creates 4 buckets of funds using these guidelines. John’s contribution of $90 is divided between following dealerships as soon as John accepts any offer or after his request expires:

  1. Dealership D gets $22 (lowest offer over-all)
  2. Dealership B gets $22 (2nd lowest offer)
  3. Dealership A gets $22 (3rd lowest offer)
  4. LetDealersBid.com gets $22 (service charge)

Note: If John receives less than 5 offers and does not accept any offer in 30 days no one gets any money since we give John his money back. If John accepts an offer even when there were less than 5 offers, dealerships earn even more money since there are less no. of parties getting money (see guidelines)

Q - 
Is it true that buyers have to pay money to get bids/offers?
No. Buyers are not required to pay. However, buyers can make a contribution towards our dealership rewards program through which 3 dealerships with bottom 3 bids are paid your money
We request buyers to please consider following when submitting bids:
  • Buyers get their money back from selected dealership. Buyers also get their money back if there are less than 5 bids submitted to them
  • Dealerships can see who paid how much when requesting which means:
    • Dealerships know a buyer is really serious about buying a car since he/she has paid money to get bids
    • Dealership also know how much money they are going to earn through dealership rewards program since buyer’s money is going to be broken into parts and paid to 3 lowest bidding dealerships

      Our study shows paying buyers save 5 to 7 times more than their contribution (a buyer paying $50 to get bids on a $30,000 vehicle receives bids that are on average $250 - $350 lower than what a buyer would get without spending any money when requesting bids - We suggest buyers to contribute towards dealership reward program when requesting bids to save extra money
Q - 
Who are the dealerships on your website? Are they legitimate?

We verify and then approve for bidding any dealership in the United States. Dealerships must be licensed an authorized dealership of at least one manufacturer in order to qualify. Dealerships with poor buyer experience are not allowed to bid on vehicles.

Note for buyers or sellers outside the US:

We are currently focused on US market only. Buyers and/or sellers outside the US will be able to buy or sell vehicles through our website pretty soon but we do not take any responsibility for any international trade that involves one party or both outside the US. Buyers and sellers are on their own when dealing with buyers and/or sellers outside the US

Q - 
What benefit does your website offer to the dealerships?
OR  
Q - 
Why not lead-generation websites? We have been using such websites for years

Answer is simple: Only 1 to 3 percent of leads from lead generation websites convert into actual sales because:

Quality of sale leads is poor; buyers are not serious about buying cars since "Getting Free Quotes" through such websites does not cost buyer anything. Buyers have to pay some money on our website to get offers which determines how serious they are about buying a vehicle

Lead generation websites are based on obtaining customer’s personal information to send to bunch of dealerships in the area. Salesmen then contact buyers via phone or email. Vast majority of buyers are not comfortable giving their personal information out on websites for salesmen to start calling them at home and work. We protect buyers since their personal information is not shared with any dealership unless or until they themselves share such information. This gives buyers lot more confidence in using our service. You’ll get only serious buyers from our website

Q - 
What benefit does your website bring to buyers?
OR  
Q -
Why not Free Listing or Free Quotes Websites?

There are only two types of websites when it comes to shopping for cars online:

1 - For Sale Listings Websites:

A buyer has to spend lot of time searching for cars, calling dealerships, going to dealerships, etc. Better listing websites like AutoTrader.com have done better job by letting the potential buyers open account and setup alerts but it still requires registering account, setting up alerts, going through bunch of emails, making several calls to dealerships, negotiating price, etc. We save buyers from such hassle and let the dealerships submit their bids/offers online in a smooth and easy way. Buyer does not have to do any negotiation either because that is part of DNA

2 - So called "Free Quotes" Websites

Buyer selects a vehicle, provides his/her personal information (How you want to be contacted/delivered quotes) and everyone knows what happens next … buyer is on mercy of salesmen who have buyers name, phone number, e-mail address so that they can chase the buyer at home, at work and continue to do so even after buyer has bought a car

Remember: A dealership’s intent is to get you on their lot. You will almost always end up buying something other than what you wanted to buy and at a price you did not expect to pay. Using LetDealersBid.com:

  1. You get the privacy and freedom you deserve!

    No more calls from salesmen chasing you at home or work or sending you emails. Don’t believe it? Submit a request for free quotes on any such website and you’ll know what we are talking about
  2. No one can push you to buy a car!

    You are serious buyer but remain anonymous; no one can push you to buy an expensive item like a car. You are not on the phone or in front of a salesman under a roof with luxury cars around... you are protected!
  3. Your Identity is safe!

    Unlike other websites, we are NOT going to send your name, phone # or email address to any dealerships to start contacting to offer their cars. Your personal information is visible to only the dealership you finally select
  4. You are the boss!

    • Compare incoming offers side-by-side from dealerships around the country
    • Accept an offer that makes sense... or just move on!
    • Communicate with dealerships via LetDealersBid.com website without revealing your identity, negotiate price via emails without any pressure from the dealership, plus more!
  5. You save more!

    • Price goes down automatically without you spending time or putting any effort since dealerships can see what others are offering. Everybody wants to sell you a car and earn extra $$$ by placing offer which is low enough to earn a spot among bottom 3 offers (How Dealership Rewards Program Works)
    • New cars and Certified Pre-Owned vehicles carry warranties; it does not matter where you buy these vehicles from. We give you the freedom to shop from any dealership and get the vehicle shipped to save $1,000s!

    Also remember: A dealership IS running a promotion on exact same make and model you are looking for but you are not aware of it ... We are filling this gap by letting such dealerships come to you!

Q - 
I have accepted an offer; now what?

Once buyer accepts any offer, we send an email alert to selected dealership revealing buyer’s name, phone number and email address. Buyer has 24 Hrs to pay $500 initial deposit and reserve the vehicle for 14 days or accepted offer is cancelled.

Buyer and dealership communicate with each other and figure out final payment/delivery of vehicle to buyer. LetdealersBid.com does not get involved into actual transaction of the vehicle since our role ends when buyer has submitted $500 initial deposit (buyers can come back any time and submit their feedback though). Buyers and dealerships have access to all payments other party made/expects since dealerships have to make any pricing adjustments based on what buyer has already paid

Q - 
What if dealership does not sell me the vehicle?
OR  
Q - 
What if dealership refuses to sell the vehicle on the price I accepted?

Dealerships have agreed to our User Terms and Conditions clearly stating a dealership cannot change his/her price and is bound to sell the vehicle to buyer. However we are in no way able to force this rule and encourage buyers to report such dealerships as soon as possible to take necessary actions against them.

Buyers can also leave a negative feedback damaging dealership’s repute alerting future buyers about dealership not meeting your expectations.

Q - 
Do you offer vehicle purchase protection plan like eBay does?

There is a difference between buying a car through LetDealersBid.com, and through other websites. We request our buyers to consider following when making such comparison:

  1. Our sellers are not like sellers on eBay, Craigslist, etc. We validate all dealerships to have a valid dealership license, be authorized to sell brand new and certified pre-owned automobiles to buyers in the US, and every dealership must be authorized dealership of one or more the manufacturers selling their vehicles in the US market.

    We put lot of effort to verify each and every dealership with our representatives personally visiting and interviewing some of the dealerships. We deny 1 out of 3 dealerships that register on our website on average because we believe LetDealersBid.com Inc can survive by not having many dealerships but a single not-so-good dealership can throw us out of business. So we better take care of this problem before it starts

  2. Buyers cannot see details of a sellers (or vice versa) on eBay, Craigslist, etc. Our buyers don’t have this barrier and they can see all information of a seller (dealership). We believe this helps the buyers look for information about a seller prior to making a purchase. Knowing sellers along with ratings & reviews given by other buyers, we believe buyers are in very good shape and can make smart choices about their purchase
  3. Our website deals with brand new and manufacturer certified vehicles ONLY (not even "dealership certified"). It means ALL vehicles bought/sold through our website should carry a factory warranty to take care of any post purchase issues. We do suggest our buyers to consider buying extended coverage if offered by the dealership out of the savings they receive using LetdealersBid.com website
  4. Dealerships on our website have agreements with LetDealersBid.com Inc. clearly stating expectations from our buyers. LetDealersBid.com Inc. reserves the right to seek legal help or impose penalties if our terms of service are violated

Having said all this, we are working on obtaining such protection for our buyer’s piece of mind; we are just not there yet. If you have any suggestions and/or additional concerns, please share your thoughts here



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