SHOPSMART AUTOS – CUSTOMER INFORMATION – SEPTEMBER 29, 2020 (Pt.2)
Coronavirus Is Pushing Car Dealerships Into Online Sales and Home Delivery
Consumers interested in a “contactless” transaction need to do online and telephone research to see which dealers are offering online sales and home delivery options. Shoppers also might need to feel comfortable with buying a car without first kicking the tires or test-driving multiple models. Some dealerships arrange for an at-home test drive as part of the process.
However, you buy a car—with or without a test drive—be sure to clean its surfaces, inside and out. Many dealership websites now include a list of precautions that sales and service staff are taking to make sure customers’ vehicles don’t become contaminated.
Research, Research
Many independent dealers, customers now have the option of free home delivery. They are using technology that allows customers to walk around a car virtually through video chat and to gather as much information as possible without setting foot in the dealership. Financing, registration, and all the other documentation can be handled online, and any document requiring an in-person signature can be sent through express mail.
Even in normal times, Shopsmart Autos recommends that shoppers research cars and various option packages online before contacting a dealership, says Gabriel Shenhar, associate director of CR’s auto-test program. Shoppers should feel empowered to take the initiative in this process, identifying the exact car they want in their own time frame, including negotiating a price or lease deal over the phone or through email, he says. This strategy not only lessens the time exposed to any sales pressure but also maximizes social distancing. Physically going to the dealership might only involve a test drive and the signing of final papers, he adds.
Niche Business Model Taking Off
Some auto sales companies have been selling or leasing cars online for years. Tesla, in a long-running battle with various states over their dealership laws, conducts sales online and delivers purchased cars directly to buyers. Carvana, a national used-car sales company, connects online used car shoppers with available vehicles. Once a deal is reached with an online salesperson, the buyer signs documents by mail and can receive delivery of the vehicle at their home.
Autopia allows consumers to search lease deals by entering the preferred criteria. The company then sets up financing and arranges delivery of the vehicle. Assuming the buyer qualifies for financing, the transaction doesn’t take much time and the vehicle shows up at their house.
To be sure, dealerships, generally speaking, prefer to have potential buyers physically at their location—test-driving multiple vehicles and considering option packages and higher trim levels. Also, some consumers might insist on browsing the inventory at a dealership so that they can test-drive multiple vehicles before making a decision.
Even so, online sales have become a way to minimize human contact, and in states that have closed showrooms, they present an avenue for dealerships to shore up sales that have dropped precipitously in recent months. No matter how you calculate it, year over year, or month over month, double- digit drops in sales have been the norm in recent months, and they’re expected to worsen as “stay at home” orders spread throughout the nation.
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