1) The auto market is huge, and the players are huge. Competing with Edmunds, Cars.com, Auto Trader, is extremely difficult. Word of mouth only gets you so far. You need a marketing budget, and you can't stop building. Auto Swatch was only ever a side project for us, and that spells failure.
2) Our sub-project within Auto Swatch, the dealership management software, was impossible to sell to dealers, even though we were cheaper than their system (usually http://carsforsale.com). They didn't want to spend any more time online than they have to, and they actually resented the fact that they needed to get their inventories onto Cars.com, Auto Trader, or the internet in general. Dealerships make money when people walk into the building, not when people shop around online for the best price. So when we said to dealers "we have a better online inventory manager for you, and we're cheaper", they said "we don't care if it's better, and it's already cheap enough with our current provider".
In 1519, Captain Hernán Cortés and his army set out on one of the greatest conquests in the history of the world. Cortés was going to accomplish his goals no matter the consequences, despite being up against incredible odds. When he arrived near Veracruz with 500 soldiers, a dozen horses and a few cannons, the first thing he did was burn his ships so there could be no retreat. He told his men “You can either fight or you can die”. Returning to Spain was not an option anymore. By burning his ships, he not only cut off his only means of retreat, but also made his soldiers fight harder. They were all fully committed to the cause.
(I love this story)
Seriously don't give up now, failure is only the beginning of future success.
We've been on this project for over a year. We've tried multiple business models, strategies, etc. We know where we went wrong, and we know what it needs to make it successful. But we don't have the time, energy, or money to do it.