InformationWeek

More consumers are looking to the Internet to buy cars. Nearly 8 million new-car purchases will be influenced by Internet sites by 2003, according to a report from Forrester Research. Of those, 500,000 sales will be transacted entirely online, the report says.

Auto dealers are starting to take advantage of the Web, says Chris Denove, a partner at J.D. Power and Associates. "Dealers are keeping a close watch on all Internet developments out of concerns that one day an online application will eliminate the dealer altogether," he says.

To help dealers leverage the Internet, Carabunga.com-an online portal for the auto industry that's set to go live in the third quarter-will offer E-Promotions, an online service that walks dealers through the process of setting up marketing promotions, delivering them, and then measures the success of the promotions. Dealers can define a target audience and select a medium such as postcards, letters, or E-mail. At the end of the promotion period, the dealer will be able to check the response rate online.

Meanwhile, consumers can access General Motors' new site at www.gmtickettoride.com and enter a sweepstakes to win up to 20 prizes, including a trip to the 2000 Summer Olympics in Australia and tickets to the 2001 NCAA men's basketball Final Four.