Walmart Will Start Selling Cars Soon

Consumers are completing more and more of the car buying process outside the dealership, and now Walmart is throwing its hat into the ring. The nation’s largest retailer has partnered with dealership groups to sell cars through a new program launching April 1.

Through the CarSaver program, buyers can select their desired new or used vehicle and apply for financing and insurance. Walmart will host CarSaver kiosks inside 25 of its Supercenters at launch, although customers can also go through the process on their own online or by calling an 800 number. After this initial stage, CarSaver links the customer to a local dealership so they can complete the transaction.

CarSaver earns a “success fee” of $350 in most states for each car it helps sell. In some states, CarSaver may charge a subscription fee. Major partners with the Walmart program include AutoNation, the largest new-vehicle retailer in the U.S., as well as Ally Financial, the preferred lender for the program.

By entering into the car business, Walmart is following in the footsteps of Costco, a big player in the haggle-free car buying space. Costco sells more than 1,000 new vehicles a year per store on average, according to Automotive News. That’s the number Walmart is shooting for, split between new and used cars.

In April, CarSaver will be in Walmart Supercenters in Houston, Dallas, Phoenix, and Oklahoma City. If everything goes as planned, CarSaver will be represented in Walmart Supercenters nationwide within two years.

Source: Automotive News (Subscription required)

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