NEW YORK -- Car dealerships are not an endangered species in the digital age, a new report says.
In fact, women and young buyers want to visit a showroom to validate their research, get a test drive and do some haggling over price.
Those are among the findings of a study by website AutoTrader.com released last week in conjunction with the New York Auto Show, which is open to the public through next Sunday. AutoTrader.com says the findings are based on interviews with more than 4,000 consumers.
Overwhelmingly, consumers don't like the current car-buying process, especially the four to six hours it takes to complete the transaction. Just the credit check alone can take an hour, says Jared Rowe, president of AutoTrader.com.
But that does not mean buyers want to excise the dealership out of the equation. The survey says 84% want to buy their car in person. Women and young buyers are the most adamant about coming in to see, touch and experience the vehicle they have spent so much time researching and which they will spend many years owning.
Consumers spend more time researching their next new car online than ever before: 16.7 hours, and increasingly they are doing so on their mobile devices as opposed to their computer.
But young Millennials like the Apple store experience, where they can go to talk to experts to learn more about the product they intend to purchase, Rowe said.
They want to apply the same philosophy to a new car. They want detailed information about the vehicle as well as deals, special offers and warranties. They also want to negotiate price, as opposed to paying a flat rate, even though research shows a narrowing gap between the list price of a vehicle and the average transaction price paid.
And the study found a buyer will drive further for a great salesperson than for a great deal, Rowe said.
It all suggests automakers should invest in better mobile apps as well as digital tools, processes and training in the dealership to speed and smooth the final transaction steps. That could include starting some of the paperwork online ahead of time, Rowe said.
And the time for automakers to make these investments is now with the industry forecast to remain strong for the next five years, Rowe said.
A good experience will bring buyers into the dealership more often. "What company wouldn't want customers in their stores more often," he said. And 66% are more likely to buy from the dealership where they like the service.
The biggest opportunity to make sales gains is with female and Millennial buyers who will account for 70% of car sales by 2025, he said.
"We need to meet the needs of females and Millennials," Rowe said.
Article Reference:
1) Article Source: usatoday
In fact, women and young buyers want to visit a showroom to validate their research, get a test drive and do some haggling over price.
Those are among the findings of a study by website AutoTrader.com released last week in conjunction with the New York Auto Show, which is open to the public through next Sunday. AutoTrader.com says the findings are based on interviews with more than 4,000 consumers.
Overwhelmingly, consumers don't like the current car-buying process, especially the four to six hours it takes to complete the transaction. Just the credit check alone can take an hour, says Jared Rowe, president of AutoTrader.com.
But that does not mean buyers want to excise the dealership out of the equation. The survey says 84% want to buy their car in person. Women and young buyers are the most adamant about coming in to see, touch and experience the vehicle they have spent so much time researching and which they will spend many years owning.
Consumers spend more time researching their next new car online than ever before: 16.7 hours, and increasingly they are doing so on their mobile devices as opposed to their computer.
But young Millennials like the Apple store experience, where they can go to talk to experts to learn more about the product they intend to purchase, Rowe said.
They want to apply the same philosophy to a new car. They want detailed information about the vehicle as well as deals, special offers and warranties. They also want to negotiate price, as opposed to paying a flat rate, even though research shows a narrowing gap between the list price of a vehicle and the average transaction price paid.
And the study found a buyer will drive further for a great salesperson than for a great deal, Rowe said.
It all suggests automakers should invest in better mobile apps as well as digital tools, processes and training in the dealership to speed and smooth the final transaction steps. That could include starting some of the paperwork online ahead of time, Rowe said.
And the time for automakers to make these investments is now with the industry forecast to remain strong for the next five years, Rowe said.
A good experience will bring buyers into the dealership more often. "What company wouldn't want customers in their stores more often," he said. And 66% are more likely to buy from the dealership where they like the service.
The biggest opportunity to make sales gains is with female and Millennial buyers who will account for 70% of car sales by 2025, he said.
"We need to meet the needs of females and Millennials," Rowe said.
Article Reference:
1) Article Source: usatoday
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