January 16, 2017
www.usedcarnews.com
High Tech Provides Opportunity for Dealers
THE FUTURE: Toyota shows off a concept car at the Consumer Electronics Show. More and more there is a blurring of the lines between tech shows like the CES and car shows like the North American International Auto Show.
By Ted Craig
Rush - Dated Material
In-car technology was on the main stage at both the Consumer Electronics Show and the North American International Auto Show. Tech now ranks high in the car selection process for new-car buyers, according to the 2017 Autotrader Car Tech Impact Study. Having the latest technology is more important than vehicle color for 61 percent of respondents. Brand and styling still count for more, but not by much. This increased interest in technology also presents an opportunity for used-car dealers, said Karl Brauer,
executive publisher at Cox Automotive. Brauer said today’s aftermarket products allow dealers to install upgrades fairly easily and at a reasonable cost. “You can essentially make an older car feel as up-to-date as a newer car,” Brauer said. “You’re basically giving a Botox shot to the car.” Brauer cautions that dealers need the right set-up at their stores, including the right inventory and marketing. But if they have that, they might find consumers willing to pay for better technology.
“Dealers might be surprised,” Brauer said. Just don’t expect them to pay for safety technology. The Autotrader survey found most respondents expect safety technology to come standard. Of course, dealership staff needs to know about the technology they are selling and that can prove a challenge even on the new-car side. Autotrader recommends car shoppers consider two test drives when making a purchase decision – one for the ride and one for the technology. The main catch to spending so much time explaining the tech-
nology is it can lengthen the sales process and other surveys show customer satisfaction takes a steep decline after the first 45 minutes at a dealership. There is a downside to having cars that are rolling smartphones, though and that is hacking. There have been several highprofile reports recently of hackers showing they can hijack vehicles remotely. Brian Moody, Autotrader’s executive editor, said it’s possible manufacturers might someday produce low-tech versions targeted at those concerned about hacking or other issues.
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