Posted on 03/28/22

Moving Forward In A Digital Automotive Retailing World

Moving Forward In A Digital Automotive Retailing World

With each passing day, the memories of selling vehicles before the pandemic are fading faster. The 'what brings me in today' conversations are almost gone. Customers from all walks of the globe now use smartphones and laptops to scroll, view, and click.

You might be an auto retailer trying to sell used and new cars in this new environment. Perhaps you are seeing the silver lining, and reaping the rewards of the sudden changes that the pandemic has brought on consumers and the automotive retail sector.

These are the top five competitive advantages car dealers can use to maximize their digital retail growth.

Advantage #1: Your local markets are now almost limitless

Social distancing is the new norm, and more people are buying used and new cars online. Your target market can be anywhere, especially if your service offers home delivery.

Research shows that 25 to 35 percent of new car sales in 2020 were made online. However, less than 3 percent of cars were bought online before the pandemic.

"When dealers are able to provide shipping estimates and home delivery directly from their vehicle details pages, their local markets go from a 100-mile radius to one thousand.

Advantage #2: There is an opportunity for innovation

You're probably an auto dealer and have heard all the dire predictions: complex supply chains, low inventories, growing online disruptions, etc. These issues are real problems, but they also offer a tangible opportunity for innovation.

Trudeau stated that "how people shop for used and new cars hasn’t just changed, it’s been revolutionized." "The retail model has remained basically unchanged for as long as I have been alive." Companies are constantly innovating to meet the changing needs of consumers who want a better way to shop for cars.

Here's an incentive to innovate: According to the Bureau of Labor Statistics' monthly Consumer Price Index, June 2021, used cars are selling at 45 percent higher prices than last year.

Advantage #3: Reverse logistics is already in place

There are fewer consumers at physical stores, which means that there will be fewer trade-ins. Also, inventories of used cars for sale will be lower. According to Deloitte, nearly half of Americans expect to keep their vehicle for longer than expected in 2020.

Retailers are looking for new sources of vehicles to supply their customers, as there is a shortage of used and new car inventories. Although auctions are a good option, some dealers now buy inventory directly from customers.

To stabilize used car inventories, reverse auto logistics is used to trade-in, return and even acquire vehicles. Dealers buy from consumers and pick up vehicles in their driveways.

Move Car, the world's leader in single-unit vehicle movements, is a great partner for reverse logistics. Trudeau stated that he can pick up trucks and cars from any 50 states, and have them delivered to the dealer, auction, or wherever they are needed.

Advantage #4 Your website can do all the heavy lifting

Many consumers start their search online for a vehicle. They will then do their research and choose the right options. Finally, they will make their purchase at a dealership. Many consumers want an easy car-buying experience online. Dealerships must transport cars to their homes or other designated locations.

Trudeau stated that "Dealer should consider how to combine the online and in person experiences to provide consumers with a consistent, personalized experience." For online buyers only, it is essential to provide door-to-door shipping and vehicle delivery estimates.

Advantage #5: Be ready for the next disruption

Are online retailers taking over your market? It's something you are working on. Cancellation of car shows It was obvious. What's next? The end of the shortage of semiconductor chips.

This pending inventory surge was not unexpected. The pandemic was unanticipated. Dealers will benefit from all the practice drills, which involved shifting priorities, reallocating resources, and pivoting strategic plans. Reduce unnecessary risks by taking action now.

How else are you able to be ready for anything? Find the right logistics partner to help you stay organized. Choose one that has the right mix of technology, innovation, and think-tank acumen to provide the services and solutions you require.

Auto retailers have many options, opportunities, and efficiency.

Dealerships recognize that consumers want an easier car-buying process. They are updating their websites and renovating their showrooms.

Trudeau stated that Move Car, as a tech-forward business, is constantly innovating to assist dealers get their units to roofs and auctions quicker, and partnering with them for the future. We launched last year a home delivery service with lead generation and managed services to accelerate innovation for our dealers. Dealerships will have the ability to grow their local markets, increase transit transparency, keep their sales teams busy with leads, and reduce the time it takes to transport units by a third.

A successful digital auto retail program must include vehicle home delivery. It's a demand from consumers and can be obtained at any retailer. You can make car shopping easier and more enjoyable for your customers by having the right logistics partner. This includes home delivery, pickups at trade-in locations, and additional selling opportunities.

Move Car can help identify and close the gaps in your business processes, saving you time, frustration, and resources. All this while helping you get to the forefront of digital automotive technology. Learn more about Move Car business solutions or call us.