COVID-19 will force car dealers to embrace digital transformation
Photo Cred: CARWOW Early reports from most countries around the world indicate that auto sales in March have nosedived as efforts to mitigate the COVID-19 crisis begin to bite. With governments issuing stay-at-home orders, dealerships have seen customer footfall drop significantly or dry up altogether leading to markedly reduced auto sales. April 2020 we are seeing a gradual increase in sales by providing additional services for customers to make vehicle purchases from the comfort and safety of their home. In many areas, dealers have been allowed to keep their service and parts operations going. The National Automobile Dealers Association (NADA) and other dealer organizations extensively lobbied to also have the sales side of dealers declared essential businesses. After several weeks of effort, they’ve now been successful in convincing the Department of Homeland Security to classify dealerships as essential services.
What does the future of remote or digital car sales look like? We are already getting an indication of what auto sales might look like as the virus passes by seeing how dealers are approaching it in China, which is a few months ahead of the western world in terms of managing the outbreak. Geely, one of the country's largest automakers, has already launched a no-contact car buying service the vehicle is delivered to the customer, disinfected, and then the keys are sent separately via a drone.
However, selling vehicles isn't as straightforward as selling other products, they tend to be expensive, require negotiation of sales and are often something a potential buyer wants to experience before they purchase. As a result, completely 'faceless' vehicle buying isn't likely to take off in markets used to a more traditional way of doing things, such as the US ,just look at the push back Tesla has faced in trying to sell cars directly to customers without a dealership network. We're likely to see 'halfway house' solutions evolve, with dealers offering virtual tours of vehicles, live FACETIME videos of vehicles, detailed photos, and negotiations over video calling services.In the UK, a start-up from the founder of Zoopla called Cazoo, which aims to bring the simplicity of digital retail to the used car market, managed to raise GBP 100 million from investors in March despite the current market uncertainty. One of the reasons investors were attracted to Cazoo is its focus on digital sales, which is expected to be a selling point once the pandemic comes to an end. Now more than ever, dealers and customers must embrace new methods of selling cars to customers , especially those that allow more of the shopping and buying process to be done remotely. While we expect a relative return to normality once the pandemic passes, we also see a longer-term shift away from face-to-face sales as customers become more cautious about their interactions with others. Feel free to contact us to find out what BidGoDrive is doing to keep you and your loved ones safe by simplify the vehicle buying process from the comfort of your home. Our staff has over 40 years of hands on experience in the automobile industry. BidGoDrive ® agents are former insurance adjusters, salvage buyers, salvage auction employees, leasing company employees, body shops technicians, automotive recyclers and transporters. You will be greeted by a kind and knowledgeable staff, whose priority is customer satisfaction. Read the full article