The next leap forward in the car trade is to establish online dealerships. Companies in the US are working on “best practices” to achieve this goal without scaring off consumers. The process starts by building trust through offering fair values for vehicles in partial exchange, and illustrating to the consumer the benefits of going online.
Online shopping is no longer a new concept. These days, people don’t mind making online purchases but when it comes to buying a car online, they might think twice. Cars are high-value items with many specs and aesthetic aspects that consumers like to see, touch, test and perhaps negotiate before they buy.
Online companies are coming up with new ideas all the time including virtual reality tours of new cars, selection of specs and colors, and virtual dealers to help with questions. Buyers can see their customized cars online at a lower price.
Some car companies are already experimenting with virtual dealership booths in shopping malls. The practice is expanding and sales are picking up at a steady pace.
This trend could be the norm in the future and car dealers are advised to embrace it rather than oppose it. Dealerships need to realize that the experience of buying a car is daunting to some consumers. Some people hate to haggle and find salespeople pushy. They also dislike being at a disadvantage when salesmen use jargon and technical terms they do not understand. It gets worse when negotiations about prices start.
However, all these issues could be effectively handled online.
Making the car-buying experience pleasant and easy is vital for success in the marketplace today, but that may not be enough in tomorrow’s digital world. Those who do not adapt will perish.
• Adel Murad is a senior motoring and business journalist based in London.
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