Few segments of AutoTrader.com history rival the past three months in terms of acquisitions. Of late, AutoTrader.com has acquired vAuto, Kelley Blue Book and HomeNet Automotive in succession.

With so much recent activity geared toward catering to dealers’ needs, could venturing into consumer financing or dealer floor planning be next? AutoTrader.com chief executive officer Chip Perry touched on that subject and more in an exclusive interview recently with Auto Remarketing.

“We’re interested in helping dealers receive very qualified, finance-ready customers,” Perry began. “We think that the process of executing an automotive transaction really can’t be done online completely in most cases. Auto finance is going to continue to be centralized in dealerships. Indirect finance is going to continue to be the mainstay of the automotive industry where dealers are at the forefront of facilitating the finance portion of the car deal through their lending relationships.

“So philosophically, we hope to play a useful, positive, facilitating role for dealers and financial institutions in the future,” Perry continued to Auto Remarketing. “We’re just beginning to go about ways in which we could play a useful role. We think there are some very interesting possibilities. But they are still, I would say, on the drawing board status.

“Over the next year or two, we’re going to start make some moves in that direction in a way that will help dealers like I said facilitate the finance part of the auto transaction with them remaining in complete control,” he added.

Perry went on to explain that entering into territory revolving around the financial world isn’t any more complicated than the inventory listing business that’s at the hallmark of AutoTrader.com’s success.

“But it requires some integration of capabilities that are present within the industry but haven’t been put together yet in terms of helping consumers receive a loan offer from a dealer that reflects the consumer’s credit quality and down payment capability.” he pointed out.

“It’s technically possible to do that, but it just hasn’t been done yet,” he continued. “It requires a number of moving parts that need to be assembled. We’re scoping out those moving parts today and we’ll be pursuing that kind of effort in parallel with the work to develop new products for the industry through collaboration between AutoTrader.com, Kelley Blue Book, vAuto and HomeNet.

“We’re really excited about the four products that together our four companies can now bring to the industry,” Perry went on to say. “We’ve got a bunch of them in the works now that will be done in parallel with longer-term strategic planning related to opportunities like auto finance, social media, mobile applications and the like.”

Deeper Look into vAuto and HomeNet Acquisitions

While both companies are broadly associated with dealer inventory, Perry emphasized that vAuto and HomeNet bring different attributes that can augment AutoTrader’s plate of client services.

The CEO first indicated that vAuto “specializes in inventory optimization and real-time based market pricing analysis.” AutoTrader.com finalized the vAuto acquisition back Oct. 19, which started this string of major company developments.

“They’ve done a great job helping dealers address the increased transparency in the used-car shopping world that’s been brought about by the Internet in the last decade. vAuto has the very strong niche and specialization,” Perry highlighted.

Then last week, AutoTrader.com announced its purchase of HomeNet to broaden AutoTrader.com’s offerings even further.

“Their strong suit is basic tools that enable dealers to manage their inventory, normalize and efficiently distribute it across many marketing channels,” he explained “They a very strong in what they call, ‘get, edit and deliver,’ a solution set that enables them to obtain raw vehicle inventory information from virtually any source, edit it to the dealer’s specifications so that it can get presented properly on their website and through third-party sites.”

Along with the resources of vAuto, HomeNet as well as sister companies that came with the KBB acquisition, including CDMdata and CDM Dealer Services, can be combined for a robust set of inventory management tools for dealers, Perry insisted.

“We’re going to be looking for ways to cross fertilize the best aspects of the core technologies of these companies to advance and help dealers manage and merchandise their inventory faster and better than they can today,” Perry explained.

Listening to Dealers

Whether it’s been through the national conventions of the National Automobile Dealers Association or the National Independent Automobile Dealers Association, dealer advocacy committees and communication with the nationwide sales force, Perry emphasized that much of the site’s recent activity stems from what dealers are telling AutoTrader.com regularly.

“At AutoTrader.com, we’re constantly seeking feedback from dealers all across America about their unmet needs, about their pain points, about the areas of friction and inefficiency in the Internet marketing process,” Perry noted.

“We’re always listening and observing their needs and looking at competitors and what they’re doing well as well as neighboring spaces and markets and related solutions that complement AutoTrader’s current offering,” he added.

No matter what tactics AutoTrader.com might unleash next, Perry insisted dealers will be at the forefront of the reasons why.

“What we’ve done is integrated these inputs from dealers over the years to formulate a strategy to enhance the dealer-facing solutions we offer to the industry," Perry explained. “These acquisitions are pieces that are being plugged into a puzzle that will enable us to help dealers accomplish their mission of selling more cars more efficiently and more quickly than they can today.”

Financial Leverage for Growth

Back in mid-November, at a presentation at the Internet Summit — a gathering in Raleigh, N.C., which included of some of the top Web professionals in the nation — Perry pointed out that having significant access to capital has been one of primary reasons for AutoTrader.com’s growth since 1997.

“In order to make these kinds of acquisitions, we’ve had to have strong financial backing and support from the financial community,” Perry emphasized. “We’ve utilized a mix of liquidity from our parent companies (Cox Enterprises and Providence Equity Partners), along with some debt that has enabled us to finance these transactions.

“Together with the solid financial performance of the company and the momentum we have with our customers, we’ve been able to assemble the financial resources necessary to make these deals,” he continued. “Without the strong support of Cox and Providence, these deals wouldn’t have been possible. Their assistance in making these investments is a strong expression of their belief in the future of AutoTrader.com and in the great potential that lies ahead for third-party sites to help dealers and manufacturers go to market more efficiently.”

As critical as financial resources might be, Perry is quick to point out that AutoTrader.com’s successes are sparked by more than just figures on the company’s balance sheet.

“Back in 1997 when we started the company, we had a dream of helping the industry by being the largest automotive shopping and marketing site,” Perry recalled. “We’re proud of our progress so far but we believe there’s a lot more to be done than we’ve already done.

“One of the most important beliefs we have in our company is that nothing wilts as fast as laurels rested upon,” he offered. “We take that to mean that we always need to innovate quickly, question the status quo and not take our position in the industry for granted. We need to work hard every day with solid service to our customers and constantly pushing the envelope with product innovation to ensure that we remain an industry leader.”