Retail much like any other business operation is changing rapidly daily. If companies don’t follow trends and new ways of business, it can be easy for them to be forgotten in the marketplace leading to failure. When we think of ecommerce, we think of only certain companies being able to survive in the online marketplace, such as clothing, housewares, or other products that are easily shipped. However, this isn’t the case, businesses we never thought could enter the ecommerce space are doing so and with growing success. This is true for car dealerships, buying and selling cars online.
The idea of buying a car online isn’t necessary new but with more people using the internet for purchases, the idea is more widely accepted and trusted. Companies like Carvana and Vroom now buy and sell, new and used cars online. If you buy or sell a car through them, they tow the vehicle to you, and you usually have 30 days to decide whether you want to keep it. This of course comes at a fee, but it is extremely convenient for the customer and it’s changing how car dealerships operate. It’s creating more competition for classic car dealerships and reaching a wider audience.
Online market has also created a more competitive market on pricing. With customer being more educated on car prices thanks to websites like CarFax and Auto Trader customers can compare pricing to find the best deal. This has led dealerships to follow suite with their websites and creating more transparent prices.
I think that the changes in the industry have given customers the advantage when buying a car, and rightfully so as a new vehicle is a large purchase. It usually takes an average of five years to pay off. I think resources like Carfax and carvana are great and should be used by anyone that’s in the market of buying a vehicle. I think less people will be taken advantage of and more people will buy due to the convenience factor. I think the growing online presence of new and used cars will create a lot of competition for dealerships, but it will force necessary change that will benefit the customers.
For more information on changes in the retail industry pertaining to car sales check out Jam Group and The Balance Careers.