Dealers and manufacturers have faced many unexpected challenges over the course of the pandemic. These changes have led to a shift in consumer behaviour, as well as in the strategies used by dealers. Sue Robinson, director of the National Franchised Dealers Association (NFDA), said that many businesses have had to come up with new strategies for a marketplace with an increased focus on digital transactions.
“Consumer expectations have changed and although feedback from franchised dealers suggests they are not yet seeing a radical shift in customer behaviour; businesses have had to accelerate their digitisation strategies,” said Robinson, writing in the Q3 AutoFocus from Cox Automotive.
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During the pandemic, many dealers were forced to close their showrooms as the country went into lockdown. This resulted in a greater focus on their digital sales presence, with options such as ‘click and collect’ services and home delivery of vehicles becoming more commonplace.
Robinson observed that although more car retailers were focusing on adapting their digital offerings, the amount of consumers who purchased cars entirely online is still “relatively small.”
“Buying a vehicle is generally the second largest purchase after a house and people want to be reassured,” said Robinson.
“Recent industry insights and the decline in new car sales while dealerships were shut show that physical showrooms continue to play a vital role in the car buying process. Potential buyers place huge value on their interaction with retailers as they look for advice and reassurance, especially when they’re considering buying a vehicle, they may not be fully familiar with. People want to see; touch and test drive the car they are going to buy.”
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By GlobalDataA 2021 study conducted by AM-Online found that over 70% franchised dealers had adopted a full end-to-end online retail offering, with more than 80% using live vehicle video tours and 72% using home deliveries.
