SHOPSMART AUTOS – CUSTOMER INFORMATION – OCTOBER 24, 2020 (PT. 2)
About 15% of Sonic Automotive’s sales include delivering vehicles to a customer’s home. The North Carolina-based company operates nearly 100 new and used car dealerships in 12 states.
“We’ll see how this evolves over time,” he said. “I’ve been surprised more people haven’t taken advantage of it.”
Daryl Kenningham, president of Group 1 Automotive’s U.S. operations, expects the coronavirus will have a long-lasting impact on the auto industry and consumer purchasing behavior, particularly online dealer processes.
“They’ve been comfortable with it in other parts of their lives, but in automotive they haven’t been as comfortable with it,” he said. “They’re certainly more comfortable with it today.”
The auto retailer is focusing on providing a process that “moves customers seamlessly between the online world and offline world,” Kenningham said.
Online-generated sales, or sales that start out online, tripled last month to 7.3%, according to Paige Goodwin, director of Group 1′s retail strategy. That compares with 2.5% before the coronavirus pandemic.
“The usage of the tools themselves has really spiked,” she said. “We have seen the number of people increase but we also have seen the steps that they are taking go further in the process.”
Vehicle deliveries for the company also have increased from 5% or less to about 20%, Goodwin said Group 1 is one of the largest auto retailers in the country with more than 100 dealerships across 15 states.
Smaller dealers are experiencing the shift to online sales as well. Mike Bowsher, the owner of Carl Black Automotive Group, which has four dealerships with General Motors brands in Georgia, Tennessee, and Florida, said about 80% of sales are now starting online.
“This propelled our entire company into the digital space,” he said. “Our sales are booming.” The online sales aren’t completely supplementing the loss of traditional sales due to the coronavirus pandemic. But Bowsher believes that’s likely due to a lack of inventory after auto plants, most of which is reopening this month, being down since March due to the pandemic. Bowsher expects to continue to shift his business to online sales and vehicle delivery. “The traditional model may be fading or diminishing,” he said. “I don’t think floor traffic will go away 100%, but online is just an easier process for everybody involved.”
Customers are reassured by the OEM and the larger automotive groups but what about the Independents – “How is the customer-centered focus there?”
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