Customers dont seem to like having to negotiate in person and sit and do paperwork for a few hours. why not just give them the option to buy 100% online? Schedule a test drive, go home, purchase online and do all the paperwork, pick up the car...
Dealers, why not just have the option for customers to buy your inventory 100% online?
- Thread starter nicot
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Nico, 2010 called and wants its idea back. I can't think of too many New franchise dealers that don't have a full digital retailing tool on their sites today. Here's the kicker. Current event data from our 15 URLs shows that shoppers are utilizing our digital retailing tools less and less. Rarely, like less than a tenth of a percent, is any shopper taking themselves further than payment and trade. According to COX automotive data, average dealerships visited is back to 2 or more and time spent online is down as well. Your not so subtle thought starter is hard to take seriously in 2024. What is "Dealer Revolution"?
I have bought 3 cars from 1 sales person sort of this way.
Used cars.
Trade in pricing took some effort - can do this online ... or you could but wouldn't be fun.
Once we got a rate sort of sorted, I went home.
I stayed in touch. He stayed in touch.
I went back as needed.
Of course, I needed to go back and sign papers / table with the financing bro.
This worked for him because he got to run a sale in his free time and I got to go to the dinner, watch tv, sleep ... so much easier when you work with a sales person who trusts you.
Used cars.
Trade in pricing took some effort - can do this online ... or you could but wouldn't be fun.
Once we got a rate sort of sorted, I went home.
I stayed in touch. He stayed in touch.
I went back as needed.
Of course, I needed to go back and sign papers / table with the financing bro.
This worked for him because he got to run a sale in his free time and I got to go to the dinner, watch tv, sleep ... so much easier when you work with a sales person who trusts you.
- Apr 7, 2009
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- Joe
- Apr 7, 2009
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Carvana loves your fear of human interaction and.
"In 2024, Carvana reported it's gross profit per retail unit increased by 25.3% to $6,756"
Car Dealer's profit per vehicle sold is THOUSANDS of dollars less.
#ThinkAboutIt.
- Apr 7, 2009
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I fed this theme to Claude.ai
- "Carvana: Turning YOLO into OH NO since 2024."
- "DoorDash your meals, Carvana your wheels - the millennial guide to speedrunning bankruptcy."
- "Who needs a rainy day fund when Carvana's got same-day delivery?"
- "Carvana's target demographic: Old enough to click 'Buy', young enough to think recessions are just scary bedtime stories."
- "Carvana: Turning your parents' 'when I was your age' lectures into reality, one overpriced car at a time."
- Mar 21, 2012
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To be fair, Carvana's definition of gross profit per unit is much different than the average dealer's definition of GPU. As @Steve Stauning knows, they use some creative accounting...
Carvana is taking into account wholesale profitability into their gross per unit figure. Knowing this, I still questions their numbers. I see what they pay for cars at auction and there's no way those vehicles are profitable.
My take on home delivery is not that consumers don't want it, I just don't think most dealers are good at it. Telsa offers a very streamlined UX where you can design your car on their website and have it delivered. People love it. Dealers offer a clunky payment system on a specific piece of inventory that rarely translates into anything tangible once their inside the store. Very different experiences with expectedly different outcomes.
I think we need to stop blaming home delivery and look at the actual experience we're offering our customers. While it's not for everyone there's a large portion of people who would use it assuming the experience was exceptional.
My take on home delivery is not that consumers don't want it, I just don't think most dealers are good at it. Telsa offers a very streamlined UX where you can design your car on their website and have it delivered. People love it. Dealers offer a clunky payment system on a specific piece of inventory that rarely translates into anything tangible once their inside the store. Very different experiences with expectedly different outcomes.
I think we need to stop blaming home delivery and look at the actual experience we're offering our customers. While it's not for everyone there's a large portion of people who would use it assuming the experience was exceptional.
- Mar 21, 2012
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They also strategically time the sale of their loan securitizations. Carvana finances 80+% of their retail sales, and then packages them as asset-backed securities where they can report gain on loan sales.
Let me reframe my question: Dealers, why not offer customers the option to finalize the sale of their vehicle purchase 100% online? A process where customers can test drive a vehicle, go home, and then complete the purchase online. According to the 2023 Cox Automotive Buyers Survey, buyers are moving towards omnichannel experiences. In 2023, 50% of buyers purchased vehicles in person, 43% used a mix of online and offline methods, and 8% completed their purchases fully online. When asked how they see themselves purchasing their next vehicle, 8% said in person, 71% said a mix of online and offline, and 21% said fully online.
Says a lot how the in person experience is going.
I don't think 100% online is the way to go, at least not until virtual viewing technology improves significantly. But wouldn't it be more efficient to have a transparent online checkout and purchase experience?
When I purchased a house, I didn't sit with the seller for 2.5 hours at the property. I looked at the house, went home, got offer/did paperwork online, come the day of closing I picked up the keys from the title co and walked out with a new house.
