"I think there's an element (the anonymous nature of the Internet) to the study that may be transferable to other (automotive) sites, said Zettelmeyer. "But Autobytel's relationship with their dealer base is also a main part of the reason for the lower price." Autobytel Inc. owns and operates the automotive websites Autobytel.com, Autoweb.com, Carsmart.com, AutoSite.com, as well as AIC (Automotive Information Center), a provider of automotive marketing data and technology. The Internet's largest new-car buying service, last year Autobytel generated over a billion dollars a month in car sales for dealers through its services. Through the first quarter of 2003, Autobytel had approximately 5,000 program dealer relationships.

According to Professor Zettelmeyer, those relationships make a difference. He claims that shopping on the Internet, and specifically at Autobytel, eliminates factors that increase the cost of car shopping. The studies conclude that this benefit is the result of information and competition: the Internet informs consumers about the pricing of new vehicles, and online buying services exert pressure on dealers by directing business to affiliated-and away from unaffiliated-dealerships.

"If you don't use the Internet to buy a car, you may wind up paying more than you need to," said Andrew Donchak, Executive Vice President and Chief Marketing Officer, Autobytel Inc. "I think most people now realize that this is the best way to buy a car."