With more dealers adopting online tools during the Coronavirus pandemic, this is good news for the buyers!
The coronavirus pandemic has certainly modified life as we know it forever and the auto industry is certainly not left out in this. Even though car dealerships remain in place even in states where there is a total lockdown order, the traditional car purchase system does not appear to be adequate in tackling the issues arising.
Although there have been attempts by companies such as Tesla to bring changes to the car buying process over the past few years, most of the traditional dealership around do not have any online shopping tools. However, with the large scale shelter-in-place orders around the country, there has been a rapid decline in sales which is not expected to get any better. With this, car dealers are now being forced to use new technologies if they are to weather this storm.
What is the prognosis?
According to Michelle Denogean, the Chief marketing officer of Roadster, a company that retails a platform that helps car dealers sell online, only a fifth of car dealerships had any online shopping system before the pandemic. According to her, during the first few weeks of this pandemic, she received over four times the normal calls from manufacturers and dealers who wanted to adopt her platform. It is even expected that up to 90 percent of the dealers will be operating with full e-commerce capability before the end of the year.
Possible challenges and workable solutions
Without a doubt, some obstacles stand in the way of a proper online car sales system. The fact that a large number of car buyers have to take out loans to buy cars means physical conversations can’t be ruled out. This is especially regarding the terms of the loan even if it means it taking placing via phone call. Also, even though you can electronically sign your tax returns, most states will not allow that for a car.
Another challenge is the need and desire to test drive the car. This is a challenge owing to the times we find ourselves. Roadster is making efforts to make changes to the car-buying process with a no-contact world into consideration. This would mean a possible scenario where a salesperson comes to drop the car with you at home. There are also efforts to inform clients about the sanitation efforts in states where showrooms are still open.
What happens to online sales after the pandemic?
Contrary to what some may think online car shopping won’t be temporary. Dealerships already have the right motivation to use such tools. These tools are rich in the type of data a lot of retailers have been exploiting for a long time.
The tools used by Roadster give room to the dealers to follow the shopping journey of a customer. This should arm the salesperson with the right information whenever such a person walks in to inquire.
Very importantly is the fact that several customers want to purchase their cars online. According to research conducted by Carvana, about 97 percent of shoppers were already using the internet when researching cars. It also indicated that 75 percent of them would consider buying online.
Roadster thinks having a robust and functional platform would make the transition into e-commerce a lot easier.
With the efforts being made by the key players in the industry, there may be a radical change coming to the car sales model!
