Drivers Will Soon Buy Cars In The Same Way As Their Groceries
The way we buy cars is changing at an alarming pace. So much so that, within a decade, we’ll approach the process in the same way as ordering our shopping online. At least, according to a new report…
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Buying a car has, traditionally, been a relatively convoluted process. Back and forth trips to dealerships and endless paperwork are taken as a given. But a new report claims it’s all about to become a lot easier; so easy, in fact, it’ll be just like ordering your groceries online. You won’t have to wait long to buy cars in this way either. According to Auto Trader, buying a car online will be just as accessible as ordering your food by 2029. This increasingly online retail model is gradually winning acceptable amongst some of the world’s largest automakers. And this shouldn’t be surprising. Around 45% of motorists would carry out the entire purchasing process online if they were paying via finance. That figure rises to 64% if you only look at the answers of people aged between 18 and 34. Despite this, Auto Trader believes car manufacturers will still use physical locations; they’ll just cease to operate around sales.
Nathan Coe, Auto Trader’s Chief Executive, sees the change as a nature evolution. He said, “dealerships certainly won’t disappear, but they will continue to evolve. Successful retailers will embrace technology, invest equally in their online platform as they do their physical one, and re-evaluate the physical elements of their cost base to run more efficiently”. The report discovered that consumers used to visit five dealerships before making a purchase, now they only visit two.
The automotive industry isn’t alone in pursuing digital sales. Consumers have become increasingly accustomed to making transactions via a few clicks on a computer or smartphone. As you might expect, retailers are pretty chuffed with this. It removes the need for salespeople and, in many cases, physical stores and locations. People are much more likely to make purchases on impulse, too. More than cost-effectiveness and product quality, people seem to want convenience; a transaction that’s quick and effortless. This is so much the case that people will often pay more for more convenience; something the likes of UberEats illustrates.
Tesla is probably the industry pioneer for avoiding the dealership model. It owns all of its locations, rather than relying upon private dealerships. These also don’t act as sales hubs, rather a means of consumers learning more about the vehicles; orders have to be made online. Volkswagen is also heavily investing in online transactions. This will also play an important role in the rise of the so-called ‘sharing economy’, which will see younger consumers become less concerned with ownership and more interested in flexibility and convenience. So, in the not too distant future, you’ll probably buy cars via a few clicks of a mouse or screen; no more dodgy sales tactics at least!
Car Dealers: Motorists Are Happier To Visit Than Ever Before – https://www.autoserveclub.co.uk/blog/motorists-car-dealers/
All The Reasons Millennials Are Turning Their Backs On Car Ownership: https://autoserve.co.uk/motoring-news/young-people-turning-backs-cars/