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THE dealership remains, for now a least, a wanted and integral part of the car-buying experience for car shoppers and even those who want the Internet to play a greater role in their purchase process see an ongoing fundamental role for the dealership.

These are the findings of a US study on the future of digital auto retailing conducted by Cox Automotive of 2550 diverse shoppers during early August last year.

The survey, released by Cox Automotive this week, confirmed that, despite some desire for a change in the customer experience in showrooms, dealerships will remain fundamental to their car buying.

The survey found that car buyers (83 per cent) are becoming more attracted to completing at least one step of the process online but most car buyers wanted to finalise the process at the dealership. Completing the process in-person remains a high priority.

Buyers also wanted to get accurate, detailed information about the deal on the car and wanted to complete the majority of the information gathering before walking into the showroom.

People who completed some of the deal-gathering online said they saved an average of 30 minutes compared with those who completed the whole process in the showroom.

The survey concluded that car buyers, ahead of attending a dealership, want to agree on:

  • An accurate price that does not change later in the process
  • Understand and select add-ons and warranties
  • Agree on a trade-in value and other costs

Car buyers also said they wanted to reduce – or eliminate – the time necessary to negotiate the final purchase price in-store.

The Cox Automotive report said there was considerable dissatisfaction with the average car buyer spending three hours in the dealership and, of that time, 90 minutes was taken up haggling over the financial details of the purchase.

In this area of satisfaction, dealers were going backwards. In the 2016 survey, 55 per cent of car buyers found the amount of time the process takes in the dealership as acceptable, but in the 2018 survey, satisfaction with the time spent in the dealership had dropped below half of buyers at 46 per cent.

Other findings in the survey were:

  • Nearly 90 per cent of consumers said they wanted to sign the final documents in the dealership but 25 per cent of these wanted to review the paperwork electronically before going to the dealership.
  • The total number of buyers who wanted to review and sign papers electronically away from the dealership was a relatively modest 11 per cent.
  • 80 per cent said they would never buy a car without physically driving it and 70 per cent said they would never buy a car without seeing it in person even it they were issued with a condition report.
  • Most car buyers (60 per cent) said they would prefer to use the time they spend negotiating the deal in test driving the car and learning about its features in vehicle delivery briefings.
  • 60 per cent said they would want the help of dealership staff even if they bought the car online and suggested they wanted dealer staf to become “product specialists” and consultants in a low-pressure environment.
  • On servicing: more than half said online service tools for making appointments and estimates of service costs increased the likelihood of service and repair business going to that dealership.

Cox Automotive vice president of digital retailing Mike Burgiss said: “The results of our study show that the most successful dealers are the ones who offer a connected in-store and online experience, where consumers start car-buying activities online and seamlessly finish them at the dealership.

“Importantly, a more efficient process is not only better for consumers, it’s better for dealers as well,” he said.

IMPLICATIONS


  • One set car-buying process does not meet the needs of all consumers
  • Consumers want to start the car-buying process online and finish it at the dealership
  • As more purchase steps move online, the in-store experience will become more focused on learning about the vehicle and cultivating a relationship between the consumer and dealership staff
  • Consumers want a transparent, self-directed, personalised, no-pressure shopping experience measured in minutes, not hours

WHAT DEALERS CAN DO


  • Differentiate by providing a “connected” retail experience that seamlessly integrates online and offline car-buying options
  • Provide car-buyers with digital retailing tools for conducting research, securing financing and structuring the deal, both online away from the dealership and in-store
  • Give consumers the ability to start car-buying activities online and finish them at the dealership
  • Enable consumers to take as many steps online as they like
  • Ensure that dealership staff are trained as “product specialists” who are highly knowledgeable about vehicle specs, features, technology, models, trim levels, etc., and act as consultants who listen to consumer needs in a low-pressure environment
  • Create digital sales specialists to effectively facilitate deals online
  • Plan ahead to meet future consumer demand for the ability to complete the entire car-buying process online

By John Mellor

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