Wal-Mart Looking To Drive Innovation With New Car Sales Program, CarSaver.com Partnership

Wal-Mart Stores Inc WMT is entering the auto sales market after forming a partnership with several dealership groups including the nation's largest new-vehicle retailer AutoNation, Inc. AN, according to Automotive News.

CarSaver

The program will be called CarSaver, serving as an online auto retail platform, and is set to launch the program on April 1 at 25 Wal-Mart stores in four markets: Houston, Phoenix, Dallas and Oklahoma City. CarSaver will allow shoppers to select, finance and insure a vehicle through its website or on a touch-screen kiosk set up inside Wal-Mart stores.

The service will then connect customers with a local, certified dealer and schedule an appointment to visit the dealership, similar to a TrueCar Inc TRUE buying experience, with no haggle upfront pricing. For the referral, dealerships will pay CarSaver a “success fee” of $350.

Pilot Version

The two companies launched a pilot version of the program in Florida in 2016 with much success, almost 80 percent of appointments scheduled led to a sale and customers saved over $3,000 of MSRP.

Wal-Mart is essentially modeling the program off the success Costco Wholesale Corporation COST has had through its own auto-buying program. The nation's largest retailer is hoping to leverage its credible name to ensure a more trusted referral for an auto purchase.

Ally Financial Inc ALLY has signed onto the program as the preferred lender.