Lockdown driving change by Richard Dicello

Lockdown driving change

by Richard Dicello

For years the retail industry has been talking about the benefits of an omnichannel approach; buy online if it’s more convenient, or come in store if you’d prefer to see the goods in person.

The auto industry has been lagging in this area. While the idea of buying a car online has been bandied around for years, few dealers have jumped on board. Last year when COVID-19 hit there was talk it would finally force the industry’s hand to adopt new technology, however at the time consumers could still walk into dealerships. This year’s COVID lockdowns have been different, buyers haven’t been able to check out vehicles in person. Consequently, consumers wanting to get their hands on a new car have been forced to transact with dealers under new circumstances like buying a car without a test drive, ‘clicking and collecting’, and signing forms digitally. And similarly, dealers have had to rethink how they can give consumers the confidence and motivation to buy online. Increasingly I’ve noticed a number of smart dealers offering a free third party inspection. It’s interesting, our recent Autotrader study into Australia’s confidence in car buying & securing a ‘fair deal’ found that only 30% of used car buyers actually got a third party vehicle inspection report done prior to buying. So from a consumer perspective, if you’re buying a car remotely and the dealer is throwing in a free third party inspection, you could be doing more due diligence than if you walked into the dealership! In my opinion some consumers are still going to want to walk in and see cars in person, while others will adapt and enjoy the benefits of buying online. So is this the dawn of omnichannel selling for dealers? I think so. And it’s a good thing; the more ways dealers can allow consumers to buy from them, the more cars they will sell, as ultimately it’s a better consumer experience as one size doesn’t fit all. This no doubt will be a more sustainable business model for dealerships and the industry as a whole. We recently published a fairly in-depth guide to trading online. You can find it on page 47. It features lots of tips and strategies, so it’s well worth a read. Good luck and good selling. Richard Dicello