Blog > Dealerships go digital
Author: Tom Callow
Cars are generally accepted as the second biggest purchases most people make in their lives – and they are now available to buy online.
In a move that other manufacturers are expected to follow, Ford has started selling its cars online, meaning a customer can browse, order and buy a car without moving from their computer.
Research suggests that whilst not all consumers are convinced, the proportion of buyers who would consider buying online is certainly a high enough to make this a worthwhile venture.
The ability to buy a car without actually seeing and touching it, or even visiting a dealership in person, brings with it an interesting set of questions – for example, manufacturers in particular invest huge sums of money in experiential elements of vehicle retailing, so how will they replicate this experience in the online world?
A number of manufacturers – Fiat being perhaps the most obvious example – have already started to imitate a dealership experience online by creating virtual showrooms that almost allow customers to walk around different vehicles, with 360-degree images and car configurators packed with options to allow buyers specify their exact vehicle down to the smallest detail.
These website developments are coinciding with great leaps forward in interactivity of hardware, such as motion-sensing games consoles, and it will be interesting to see what happens if we start to see crossover between these industries.
It is no doubt an exciting time to be involved in retail in the car industry. However, given the cited impact of online resale in the demise of major retailers in other sectors, such as Borders, will new innovations in online vehicle retail spell the end of the dealerships as we know them?
2nd Jul 10
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Mr |
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Gordon Lyster |
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In answer to your closing question, yes probably and wouldn't that be a good thing too. The whole area of car retailing is long over due a change. In recent years we have seen a trend to fewer, bigger dealerships. Yes they are much smarter and more plush but fundamentally they are just bigger versions of the traditional dynastic/protected territory dealership model. While it is nice to have a reasonably local place to return the car to for servicing, beyond that, you've got to question the value most dealers provide. Whatever the 'youthful' image of the particular car brand, the fact is new cars are mainly bought by people in their 50s and beyond. I think the manufacturers have started to realise that this years crop of new 50 year olds are i-phone toting internet savvy and well researched in a way that previous generations of cunsumers have not been. If I was an automaker, I'd look to the things being done by other high end brands, create phenomenal properly engaging websites, interactive experiential marketing programmes, ditch most of the dealers and sell online. |
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Mr |
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Martin Hayes |
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Actually Tom, I bought my first Audi, all of 11 years ago, on line without sight or sound of a dealer or even a test drive. It turned up on a transporter outside my house and that was it. Now, back then, I did have a lot of trouble persuading my local dealer to service it but other than that it was a trouble free experience. Why haven't I repeated that route? Well I was driven to the web by the promise of a better deal (I had no trade in havingpreviously had company cars)and was driven back to the franchised network (now with a nice second hand car) by the same motivation. I think its horses for courses but its for sure not new! |