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Call-A-Car, Wheels24 join forces to sell new and used cars

Johannesburg, 24 Apr 2001

Wheels24, the Internet motoring Web site serving Media24 and M-Web, moves into top gear today with the news that its readers can buy both new and used cars via the Internet - the first e-commerce initiative of this magnitude in South Africa.

The project, which has been undertaken in conjunction with McCarthy On-Line`s Internet-based motor vehicle buying tool Call-A-Car, enables readers to arrange a test drive or demonstration of virtually any new car model available on the South Africa market, as well as a wide range of used cars.

"Wheels24 as a new entrant to the Media24 stable of Internet brands, has been a success story from day one, having exceeded all our expectations in growing audience, and challenging for the number one position as the most visited motoring site in South Africa," says Russell Hanly, Senior General Manager Media24 Internet Division.

"The relationship established with McCarthy Online will keep this momentum going, and adds a vital commercial element to our already strong content offering. We see this as just the start of what we hope will become a long term complementary relationship which really unlocks the obvious synergies which exist between us."

An advantage to Wheels24 and M-Web readers is the fact that, when they deal with Call-A-Car, they will be transacting with one of the largest and most highly respected motor vehicle retailers in the world, McCarthy Motor Holdings.

Plus they have access to unique and highly beneficial value-added services such as Club McCarthy (with its numerous free benefits) and McCarthy Finance, which offers exceptionally competitive financing and world-class customer service.

Call-A-Car is undoubtedly the most successful Internet initiative within the motor industry in this country - the company sold 754 units in March this year alone. In the process it notched up a turnover of more than R50 million.

The concept is successful for good reason: it makes sense! For, instead of a motorist having to get in his car and physically visit numerous dealers, in search of the perfect car, he can search for the ideal car and arrange a test drive (and ultimately a purchase) at the click of a mouse or via one telephone call.

Previously accessed only via McCarthy`s Web site and also via a call centre (for those customers who don`t have Internet access), it is the simplest and most convenient way to buy a new or used car.

Comments Brand Pretorius, chairman of McCarthy Motor Holdings: "We have been overwhelmed by the response to Call-A-Car. Feedback from customers reveals that the concept is user-friendly and saves the motorist enormous time and hassle."

Pretorius comments that the Wheels24 initiative is particularly meaningful because Call-A-Car`s customer base is shifting towards the Web. "In July 2000 Call-A-Car closed 90 Internet deals - by November last year this number had increased to 250," he says.

Internet buyers are also very different to their telephonic counterparts. "The closing ratio for Internet customers is much higher than with telephone customers. In December, the closing rate for Internet customers was 22% (versus 15% for telephone). In January it was 20% (Internet) versus 8,5% (telephone)," notes Lourens Botha, managing director of McCarthy On-Line.

The transaction is initiated via the Internet after the reader has selected the car he or she is interested in, and then continues through telephone and e-mail communication from McCarthy`s call centre. According to Botha, customers` choice is not limited to cars available from McCarthy dealers only.

"We have for some time been franchising our operation to include independent dealers as well as other dealer groups and importers. We are now able to offer Media24 and M-Web customers an extremely comprehensive selection of motor vehicles - both new and used," Botha maintains.

"We are most excited about this new partnership with Wheels24 - which will enable us to grow our customer base even further. There is no doubt that, as the Internet grows, more and more people will want to search for a car and arrange test drives and ultimate purchase via the Web, as this allows them to make their selection from their own homes, and any time day or night."

His sentiments follow actual experience at Call-A-Car, where Internet buyers are becoming more and more significant. "Currently, 40% to 50% of all Call-A-Car deals are done on the Internet. This was less than 5% two and a half years ago when we launched Call-A-Car. The Wheels24 initiative therefore makes a lot of sense and we are excited about its potential," he reveals.

Call-A-Car currently has about a 3% share of the used car market. It is estimated that 20 000 used vehicles are sold per month in this country and McCarthy On-Line aims to achieve a market share of 15%.

The Wheels24 Internet address is www.wheels24.co.za

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