How Coronavirus Has Radically Impacted The Car Dealerships
The pandemic has tossed the automobile industry into a topsy-turvy; every rule of the game is changing. Manufacturers, as well as dealerships, are adapting themselves to face the heat of this unforeseen crisis.
Some big brands have collapsed completely, while smart ones like Tesla are swinging their A-game. Unfortunately, only a few of the best online car dealers were equipped for this sudden change of pace.
Online car dealerships face some unique challenges, such as shifting gears to a completely digital selling medium. Used vehicle sellers are having an easier time during this pandemic. In an uncertain economy, people are investing in resources that save money and grant personal security.
Thus, the magnitude of people choosing to buy a used car online and have it delivered is increasing. This is a surprising turn of events for the used vehicle industry, which generally takes a back seat since people prefer first-hand cars instead of used ones.
The Advantages Of Buying A Car Online
This switch to the online selling and buying module is a rewarding experience for prospective buyers. Here’s how:
- There’s no provision for physical exposure; this makes vehicle shopping as easy as buying groceries
- Buyers can have much more autonomy and comfort while making a choice, away from the aggressive sales pitch that happens in many situations
- Negotiation with a car dealership can be done remotely; this is a happy turn of events for a majority of buyers who don’t prefer confrontation while buying vehicles
- Dealerships are clubbing a few value-added services along with the car purchase, thereby offering a compelling deal for the buyers
- Without being pressurized by salespeople, there’s abundant time to research as much and as long as possible before finally zeroing in on the model of choice
- Online dealers are trying their best to cultivate loyal customers. Therefore, they’re creating impressive packages and services
- Personalized pick-up and drop-off services are facilitated by the dealerships, without the customer having to face a single hassle
What Challenges Do Dealerships Face
Dealerships are learning to juggle internet car sales and business digitization. Since the switch suddenly came, most dealerships had to convert to a digitized servicing platform to keep working.
This means that salespeople who were used to leveraging personal connections and physical proximity now have to adapt to a vastly different strategy of making a sale. It’s no surprise that dealerships are upgrading to a business module that enriches the customer.
Their biggest challenge is to create an infrastructure for the foreseeable future where ancillary value-added services meet a customer-friendly online buying experience. To allow more users to take a personalized test drive, dealerships must figure out ways to sanitize their cars’ interiors as well as secure their vehicles with telematics technology.
There’s a need to modify the security scans that allow prospective buyers to take a test drive without the risk of having the vehicle stolen.
Covid-19 had halted the vehicle industry’s manufacturing wing, which has resulted in a dwindling number of car models in the inventory of dealerships. Even the best online car dealers face an acute shortage of surplus models to quench the demand for new vehicles.
What Does The Future Hold?
The pandemic has ushered the auto industry into a digital world, and there’s no turning back from it. Customers seem to prefer buying cars digitally, and the amount of sales even during the peak months of the pandemic signifies so. Some online auto dealers recorded the same percentage of sales from April to June 2020 as they did in April to June 2019.
To keep up with the demand, online dealerships have equipped themselves with special services to satisfy customers extensively. It’s unlikely that physical sales will completely resume once the pandemic subsides.
So, it’s safe to say that the online sales arrangement is here to stay for a while. To maintain a streak of excellent sales, dealerships must seek to provide customers with an exclusive digitized buying experience so that the process of acquiring ownership of their vehicle is seamless.