Accenture surveyed 10,000 people in the U.S. and a handful of other countries about buying cars, and the results show that most consumers aren’t exactly fans of the standard car dealership experience. In fact, three-quarters said that “if given the opportunity, they would consider making their entire car-buying process online, including financing, price negotiation, back office paperwork and home delivery.”
Some cultures are keener on purchasing via the web than others. Overall, the poll showed that Chinese, American, and Brazilian drivers are “more interested in online digital experiences than other countries,” specifically countries in Europe. For instance, 75% of Brazilians and 90% of Chinese would buy a car in an online auction, versus 45% of Germans and just 35% of French.The survey findings didn’t reveal all that much about why consumers don’t seem to think it’s important to make the big-ticket purchase of an automobile the old-fashioned way, in person at a car dealership. But anyone who has bought a car probably has an idea about why online purchasing is appealing. For many, buying a car at a dealership is too much of a confusing, high-pressure, unreasonably long process. It’s easy to see how it’s preferable to haggle over prices and options and review the fine print at one’s leisure in front of a screen rather than surrounded by salespeople and their “let me talk to the manager” games. After all, a classic negotiation tactic is walking away from the deal on the table, and walking away from an online offer is as simple as ignoring an email.
For another indication of the degree to which consumers don’t like the traditional car-buying experience, check out a recent survey conducted for Autotrader. Of the 4,002 consumers polled, only 17 said they like the current car buying process just as it is. The rest said they “want significant changes, particularly in the test drive, deal structuring, financing paperwork and service phases.” Many said they’d like to see the nitty-gritty of deals conducted online rather than in person. For instance:
Consumers indicate that they would like to see a big change in the way they go about negotiating the deal structure. Of those who liked the idea of online deal building, over half, 56 percent, want the ability to start the negotiation on their own terms—preferably online—and 45 percent would like to remain anonymous until they lock in the deal structureAnd this:
Nearly three fourths of consumers, 72 percent, want to complete the credit application and financing paperwork online. The key factors driving this desire are to save time at the dealership (reported by 72 percent of those who favor online paperwork) and to have less pressure while filling out paperwork (reported by 71 percent of those who favor online paperwork).
There’s no big mystery as to why car dealerships and automakers are reluctant to make online vehicle purchasing more practical and readily available. Doing so would put car sales staffers out of jobs and likely result in lower profits for automakers and dealerships. Let’s not forget that one of the supposed purposes of car dealerships is to provide a place for consumers to kick the tires, test-drive vehicles, and (hopefully) get good insights and advice from employees. A car is a major purchase, and a good car dealership will help steer you in the right direction.
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