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Car retailing If there was ever an industry vulnerable to technological change, it would have to be selling cars in America. For decades a franchise network made up of thousands of dealers has peddled ordinary cars as though they were exotic goods in a Moroccan souk. Each dealer seems to have his own opaque pricing scheme, consumers have to endure endless haggling and the financing is murky at best. Small wonder, then, that the shifty car salesman has became such a stereotype. A decade ago a few brave souls tried to use the emerging power of the internet to modernise this fragmented and frustrating business. Scott Painter, a Californian entrepreneur, founded Cars Direct in an attempt to sell vehicles direct to consumers online. But the business failed to work as he had hoped, and he eventually left the company. Hope springs eternal, at least where the internet is concerned. This week Mr. Painter is launching Zag, his latest attempt to modernise automobile retailing using the internet. His first big customer is Capital One, a financial giant that is one of the countrys biggest providers of car loans. Meanwhile, Auto Nation, the countrys largest car retailer , is launching Smart Choice, its own internet marketing scheme, in June. So is the time finally ripe? Glenn Mercer of McKinsey, a consultancy, believes that internet sales efforts, even fixed price schemes, will not save customers much money because the internet firms by law cannot buy cars directly from manufacturers; they must get them from dealers. Brian Reed of Capital One retorts: Its true, we may not offer the lowest price but we will offer a fair price with a lot less pain. | 
