How Car Dealers Sell Cars Using Digital Retail

For any business to survive and also grow today, changes need to be made, and new practices adopted. The clearest change in retail over the last decade or perhaps longer has been with digital sales.

It is expected that up to 35% of total retail revenue will come from digital sales by 2025 as opposed to 24% in 2020. Clearly, the pandemic changed the habits of some shoppers, and not just for the short-term, but for life. Consumers are choosing digital retail more as vendors up their game and provide a better online shopping experience.

One sector of the digital retail market that is showing growth, is car sales. 

What is digital car retail?

This is simply the process of retailing an automobile through the use of the internet. However, it isn’t simply about setting up a shop online with a range of vehicles to purchase. It is a little more complex than this.

Traditionally, if you wanted to choose the right family car, you would head to a showroom and look at the various options. You could talk to a representative, and ask questions about the vehicle, and what payment options there were.

With digital car retail, you can get a combination of online and traditional experiences. Ecommerce involves the purchase of goods online, but digital retail can be more of a hybrid. 

How are car dealers using digital retail?

Car dealers can use digital retail to help market their stock online but still give the option for the buyer to visit the dealership to complete the sale. This means that the buyer can find out valuable information on the site but when it comes to completing the sale they may prefer to head to the dealership.

This gives great convenience to the consumer and saves the dealer time too. The website can be used to show a variety of internal and external photos of the car along with a video.

And, with all ecommerce and digital businesses, the shop is open 25 hours a day. Car dealers can market their vehicles this way even when they are closed. In fact, they can even provide a personal service all day and night.

How can dealers use digital retail and keep the human touch?

It is clear that many people prefer to shop online now but sometimes it can feel a little too automated. With a purchase as big as a new car can be, it would be understandable that the buyer would wish to speak to a human when they have questions.

This is a problem with digital retail as it is running 24/7. Some car dealers are solving this issue with live chat. Using Visitor Chat means that there is someone with industry knowledge available all the time to talk to consumers.

They won’t try to hard sell but they can provide technical information and advice that can help to propel online sales. They can also switch the conversation over to an internal dealership employee if and when the time comes to do so.

What do consumers gain from digital car retail?

From the consumer’s point of view, digital retail is convenient. There is nothing easier than browsing online for products and services without having to travel anywhere.

Yet, retailing cars digitally offers much more. Consumers can check for safety features on cars, customize their vehicle choice, look under the bonnet online, book test drives, and schedule an appointment to see a sales representative.

Search features allow potential buyers to go through the dealer’s catalog, and then they can look up technical specifications. They can then choose whether to carry out a purchase online or to complete it at the showroom.

If the buyer chooses either option, they can still carry out other processes online. Dealers can provide payment options online, and also help with financing and credit checks. Adding more options like this can help to improve sales, and give a better UX to the buyer.

Is digital car retail going to be the way forward?

The truth is, that consumers want digital retail. The Financial Post printed a report where 63% of consumers said they would like to be able to carry out more of the car purchasing process at home.

This is where digital car retail comes in. The website allows the consumer to do literally what they are asking for. They can carry out as much or as little of the sales process in the comfort of their office or home. Someone could use the website to simply find out some information and talk live to a representative, or they could actually purchase a new vehicle and arrange financing.

Digital retail in all areas is growing, and there is no reason why car dealers cannot take advantage of this. Indeed, any car dealer not using digital retail is likely to get left behind as the tide turns.

As ecommerce and digital retail grow, there will be surprising changes in the way consumers shop. The online luxury goods market has grown online, and now car dealers are realizing the potential also.