The launch of Kogan Cars represents a significant step for the Melbourne-based Kogan which has made its mark on selling smaller consumer items.

It also pre-empts rumoured plans by Amazon to introduce a similar online buying platform for vehicles.

Kogan Cars will work with fleet management and leasing specialist Eclipx to advise a customer on vehicle choices, arrange a test drive through a participating dealer, locate a customer’s desired vehicle and arrive at a suitable price by negotiating on the price with Eclipx’s dealer groups.

It then arranges delivery of the vehicle to the customer’s house or other location.

In a statement, Kogan said: “Kogan Cars will secure new cars at competitive prices from dealers across Australia while also enabling customers to trade in cars from a wide range of makes and models.

“Kogan will receive fees from Eclipx Group under the arrangement.”

Kogan has about 1.6 million active Australian customers and recently introduced Kogan Marketplace that is a conduit for manufacturers, wholesalers and retailers to place their goods on the company’s platform.

It opened the concept early this year and already has 100,000 products from brands including Microsoft, Breville, Lego, Fisher-Price, Gillette and Philips.

The sale of cars uses the Marketplace platform but is tailored by Eclipx to select from dealerships around Australia. Eclipx has an intimate relationship with large and small dealer groups – including AP Eagers and AHG – through its fleet management, leasing and rental businesses under names including FleetPlus and FleetPartners.

Eclipx Group managing director (consumer) David Brudenell told GoAutoNews Premium that his company was involved with a large number of national dealer groups.

“We have an expansive list of dealerships around the country. This is important because the customer is likely to be very specific about what they want to buy – vehicle make, model and even colours – so we have to provide a service to ensure the customer gets exactly what they want, as quickly as possible,” he said.

Mr Brudenell said the Kogan-Eclipx partnership does not take away anything from the dealer.

“The dealer is still involved in the process, from test drives to getting stock and servicing,” he said.

“We bring the customer, who is ready to buy, to the dealer and that frees up the dealer for other opportunities.”

Though only weeks old, Kogan Cars is already showing promise with Mr Brudenell saying Eclipx is “encouraged by the number of customers who are engaging with us online”.

“Amazon’s entry into Australia shows that it sees a future of customers doing business online,” he said.

“In the automotive line, there’s a lot of companies in the US and the UK who have been successful at online sales and the same system is expected to do very well in Australia.

“The US companies who have done very well at online sales include Truecar, Carvana and Shift.

“As demand for online retailing increasingly shifts into Australia, we are already there with products to sell.”

Eclipx Group’s move into the online car sector with Kogan follows its sale earlier this month of its GraysOnline, AreYouSelling and Right2Drive assets to Quadrant Private equity.

By Neil Dowling