Internet instead of a car dealership: buying a new car on the computer

Internet instead of a car dealership: buying a new car on the computer

mercedes also offers its new cars for sale online. © daimler

Online commerce is booming – and cars are not exempt from this trend. By 2030, 30 percent of all new cars are expected to be purchased over the internet.

During the corona pandemic, only contactless car purchases were possible for a time. However, new car sales via the internet are likely to continue to play a role in the future – and an increasingly important one at that. Vehicle manufacturers in particular are driving the development forward.

By the middle of the decade, more than 30 percent of all new cars in europe will be sold over the internet, predicts a study by the management consultancy bain. The driving force behind this development is, on the one hand, younger, digital-savvy customers, for whom shopping on the internet is a matter of course.

Automakers rely on internet sales

On the other hand, the manufacturers themselves also have an interest in getting at least part of the distribution into their own hands in order to save on the expensive dealer network. Some brands like tesla, polestar or lynk& co have already dispensed with physical outlets in whole or in part, while others like mercedes at least offer the option of buying their own car online. In addition, portals such as autohero are also selling cars.De, myauto.De or yesauto.Com vehicles directly via the net.

And even the traditionally rather conservative new car customers in Germany are open to buying online, as a survey by the expert organization KuS shows. Around 12 percent of respondents would definitely buy their entire car online – from the presentation of the vehicle to the signature.

Only 8 percent rejected the online purchase completely. franz reiner, Ceo of daimler mobility, has also observed a relatively high level of approval: "online purchasing is definitely becoming more important in germany, too. the corona pandemic has changed customer behavior. Other parts of the world are adapting faster, especially the chinese, but also the norwegians and the scandinavian countries. But central europe has recently made strong gains in the acceptance of buying vehicles online."

Confidence in internet purchasing has risen

Positive experiences with online purchases of other used goods also play a role here. Relatively reliable dealer and product rating systems as well as consumer-friendly return policies have quickly created trust in the past. Across all age groups; even senior citizens are no longer a marginalized group online.

In the long term, everyone should benefit not only from increased convenience but also from a price advantage, because centralized online sales via the manufacturer or a third-party supplier bypasses the indirect sales system via authorized dealers that has grown for decades. "the stationary car trade is very expensive. The customer pays a good 10 percent of the new car price just for the dealership," explains car expert ferdinand dudenhoffer from the CAR center automotive research in duisburg. If dealers were removed from the marketing chain between the factory and the customer, a lot of money could be saved.

Daimler works on online buying experience

The biggest obstacle at present is probably still technology. But there is progress there, too. Daimler mobility, for example, is working on a seamless online shopping experience. Among the most important components is the automation of the credit application process. "today, we can already score fully automatically in more than 80 countries," says daimler mobility chief reiner. "that means the application comes in digitally, is checked digitally, without anyone looking at it. The customer or dealer then receives the credit approval within seconds."at the beginning of 2021, stuttgart had already introduced the option of a digital contract signature, so that the entire purchase process can now be carried out from the computer.

reiner himself does not see an insoluble conflict with the contract trade in the long term. "dealers are not only ready for the digitization of the car buying experience, but they are demanding it. Because customers also demand it." a luxury brand in particular can also benefit from a dealer who can lift the emotional buying process out of the sober net and act as a face for the customer. You don’t buy a mercedes like any other commodity, at least in the mind of brand strategists. A real contact person is also important in other respects: because all cars have to be inspected regularly, and many also have to be repaired. But that can’t be done online in the foreseeable future. (SP-X)

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Christina Cherry
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