For decades, buying cars involved going to a dealership, taking a test drive, and sitting down for endless hours attempting to cut a deal. Even with the advent of the internet and a plethora of new car purchasing websites, the act (or art as some might say) of purchasing a new vehicle has been an in-person exchange sealed with a handshake and signed on a dotted line. But with COVID-19 keeping people around the globe in their homes, shuttering factories and dealerships, and the end to social distancing nowhere in sight, the way we have all been conditioned to purchase autos is going to change.
Large Dealership Groups
The Detroit Free Press spoke to a few large dealership groups earlier this month and they all seem to be acknowledging a necessary change to the business model. Rhett Ricart, CEO of Ricart Automotive Group in Columbus, Ohio and Chairman of the National Auto Dealers Association, said, "This is going to fundamentally change how people view buying a car. By the end of this year, you're going to see 80%-90% of US new car dealers with full e-commerce capability in their shops."
The Rise Of E-Commerce
You can basically do everything online at this point (except get tested for coronavirus). Various e-commerce services already allow customers to go through the whole purchasing process, except the test drive and signing the papers. But there is plenty of technology available for distance signing at this point, meaning that outside of actually driving the car before typing in your credit card number, online car purchasing is basically at dealership level.
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The Immediate And The Future
Ricard stated that his dealerships’ online sales have doubled over the past six weeks, and its uptick can be seen across the industry. Dealerships around the globe are beginning to update their online marketplaces, and it’s already being seen as a way of the future. While there may need to be some changes to existing law allowing for customers to sign online instead of in-person, it is expected that the government will be willing to help push the necessary changes through.
Source: Carbuzz
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