Buyers can choose a car, order it and pay for it online from home in 30 minutes with the car delivered at dealerships or delivered directly to the customer’s home.
Though Peugeot, which started the service in the UK, claims it is the first manufacturer to offer a one-step purchase process, the global market includes similar services from brands such as Hyundai, Jaguar Land Rover, Ford, Dacia, Citroen and Tesla.
In Australia, Subaru last month opened its online sales service that gives buyers the ability to buy a choice of five models from their homes.
The trend has also moved into used-car sales, with AP Eagers starting its Carzoos online service that is accessible from home but also uses shopping centre locations as introduction points.
In the US, Penske offers online buying consoles in 132 of its dealerships; AutoNation has similar devices at all its 260 stores; Ashby Automotive has online consoles in 12 stores and Sonic Automotive is rolling out a national service.
AutoNation, the largest independent US dealer group, said its online product AutoNation Express was responsible for about 30 per cent of its new-car sales in December.
In the UK, Peugeot customers can use the site, offers.peugeot.co.uk, to configure a car, get a valuation on their trade-in vehicle and choose funding from a choice of finance options.
Test drives are available from neighbouring dealers before the purchase is confirmed while the trade-in valuation and on-selling of the customer’s old car is underwritten by Manheim.
David Peel
Peugeot UK managing director David Peel said car buyers can find visiting a dealership “daunting”.
“With e-commerce by Peugeot, that pressure to make a decision is removed,” he said.
“The customer is in full control and can deliberate all they want over spec and finance decisions, change their minds and retrace their steps as many times as they wish.
“This represents a huge step change for the UK automotive industry. We are not only proud to be the first car manufacturer to offer customers a truly end-to-end experience, but also honoured to be the first of Peugeot’s markets to unveil the system.”
In the US, it is estimated that up to 20 per cent of dealerships have software that enables them to transact a vehicle sale up to delivery. The current sticking point is some US state laws that require documents to be signed and witnessed.
However, in a survey by Automotive News, 80 per cent of respondents who were interviewed in showrooms said they could use an online service to complete “some, but not most” of the purchase.
Dealers surveyed said the car-buying process was complex and involved many steps.
Some said the online system could affect dealership profits as finance and insurance products could not be effectively promoted without face-to-face contact with a customer.
But the focus of the online sales facilities is on being customer friendly.
Peugeot said that its new online system allowed customers to browse the model range and save details in their own, password-protected account, before “clicking to buy”, or starting the configuration process again from the start to compare packages and cars.
“With a new web interface, it is possible for a customer to go through the whole process from end-to-end, and order their car, in less than 30 minutes,” it said.
“With no need to visit a dealer to complete finance paperwork, this ‘buy at home’ capability remains unique in the market,” Peugeot claimed.
Once complete, customers can choose to pick up their new car from the local Peugeot dealership or have it delivered.
By Neil Dowling
Read More: Related articles
