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Dealers, why not just have the option for customers to buy your inventory 100% online?

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.
It's that "transparent" part I think a fair number of dealers struggle with.
 
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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.
@Jon Singo I think you are spot on here. I hear far too many dealers who want customers to adjust to the way the dealership does things instead of the dealers adapting to the customers. Carvana sold north of 90k vehicles in Q1 this year. Accounting practices aside, the question one might ask is why are 90k plus customers purchasing directly online and getting their vehicle delivered versus going to a car dealership? The next question for me, if I were a dealer, is, what do I need to do to grab some of that share? How can I improve my dealership's customer experience, improve operational efficiencies, offer better value while maintaining or growing my profit margins? Since 2018, I've been involved in purchasing 4 vehicles, two from a dealership, and two completely online CarMax and Carvana. The dealership experiences were MISERABLE with one trying to stick my father-in-law with vehicle trim he didn't need but was $6000 more(trying the ol' bait n switch tactic), plus trying to add a bunch other extras he didn't need. The other two experiences were phenomenal. I know some will bring up getting the titles. Well, I have my two from CarMax and Carvana. Still waiting on the one I purchased from the dealership's loan source.

Not saying that dealers need to have 100% online, but they should think about the customer experience above all. I'll pay more for a great experience that saves the one commodity I can't make more of: Time.
 
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Not saying that dealers need to have 100% online, but they should think about the customer experience above all. I'll pay more for a great experience that saves the one commodity I can't make more of: Time.
Precisely. Stop trying to put customers in YOUR box and start meeting your customers where they are. Time is the most valuable asset we have, and any good business owner will agree. So why are so many wasting the time of their customers? Traditional brick and mortar retail figured this out decades ago when Amazon was growing, and there are a large groups of dealers fighting it kicking and screaming.
 
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Id love to hear your thoughts on this. How so?
From a transparency perspective, I know first-hand how dealers try to play with pricing and sneak add-ons in that they hope the customer won't see. As I said, dealt with it myself and with my father-in-law. Far too many second-hand stories as well. Not sure why some dealers feel the need to make all the money they can in one deal while potentially turning off a customer for life instead of looking long-term and creating a customer for life. If I were a dealer, those dealerships that pulled that crap would piss me off. It may be a very small percentage of dealers who play that game, but it impacts the whole industry.
 
Stop trying to put customers in YOUR box and start meeting your customers where they are. Time is the most valuable asset we have, and any good business owner will agree. So why are so many wasting the time of their customers?

Love this thread. :popcorn:

The dealership experiences were MISERABLE with one trying to stick my father-in-law with vehicle trim he didn't need but was $6000 more(trying the ol' bait n switch tactic), plus trying to add a bunch other extras he didn't need

Can someone explain to me why Dealer Review scores DO NOT dominate car shopper behavior (like it does in restaurants)? Could it be that most all dealers are 4.1 to 4.7 stars?
 
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Love this thread. :popcorn:



Can someone explain to me why Dealer Review scores DO NOT dominate car shopper behavior (like it does in restaurants)? Could it be that most all dealers are 4.1 to 4.7 stars?
Don't temp me to get on a high horse :lmao:

Great question about the Dealer Review/Google scores. We know price is the #1 motivator for consumer behavior in automotive, a behavior created by dealers themselves (race to the bottom, culture, etc). How low does a dealer review score need to be in order to keep most consumers away from them, even if their prices are the best?
 
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How low does a dealer review score need to be in order to keep most consumers away from them, even if their prices are the best?
Incredibly low. Even customers who have their own experience with a dealer (not even just reviews from other people) and they STILL buy from that dealer. We've all had that customer who said, "I'll never buy from X dealer again" or "We were just at X dealership and they were awful to us" and then on our next follow-up with them where did they buy from? You guessed it.

The biggest difference between restaurant reviews is that they are more organic. Dealers water down their reviews by the sheer volume of them which leads to a large portion of dealers having a 4.5 star rating or better even if they do royally suck. So I think customers pay less attention to dealer reviews than restaurant reviews.