by The Evolving Car Buying Experience
The way consumers purchase vehicles has changed dramatically in recent years. As internet usage has increased worldwide, more shoppers are researching, evaluating, and even buying cars completely online without ever stepping foot on a dealership lot. Some key shifts fueling this transition include the rise of e-commerce across all industries, the ability to comparison shop from any location online, and the desire from Millennials and Gen Z for a streamlined digital experience.
Online Research and Reviews for Online Car Buying
The first step for most shoppers starts on search engines and automotive review sites. Websites like Edmunds, Kelley Blue Book, and CarGurus allow users to research makes and models, read professional evaluations, compare specs and trim levels, calculate costs of ownership, and read first-hand reviews from verified owners. Shoppers can search large inventories nationwide and filter by criteria like price, mileage, color, options, and location to find exactly what they want. Review sites also provide reliability and safety ratings to help inform important purchase decisions.
Configurators and Custom Orders
Many automakers now offer in-depth Online Car Buying configurators on their websites to allow future owners to build their exact vehicle specification from the ground up. Shoppers can choose exterior and interior colors, packages, technology features, drivetrain options, and more to design a unique configuration. The completed build can then be saved, shared, or sent directly to a local dealer for a test drive and purchase quote. Some brands even facilitate direct custom orders online that are built-to-order and shipped from the factory.
Researching Available Inventory
Once a make and model are chosen, shoppers turn to sites displaying available inventory within a chosen radius. Websites aggregate new and used inventory from thousands of franchised dealers nationwide to provide the largest selection searchable from one portal. Filters can narrow results by price, mileage, transmission type, color, options, and distance from a given zip code. Shoppers can then contact local dealers directly with one click to learn more or schedule a test drive for vehicles that align with their criteria.
Online Financing and Trade-Ins in Online Car Buying
Going beyond the traditional on-lot process, some websites have integrated online credit applications, financing calculators, and trade-in valuations to streamline the financial side of the purchase. Shoppers can often get preliminary approval for an auto loan through a partner lender and obtain trade-in offers without leaving home. The goal is to fully digitize as much of the purchase process as possible to simplify what was once very paperwork-intensive in dealerships. Through strategic partnerships, some platforms can even handle electronic paperwork, e-signing documents, and home delivery to bypass dealership visits altogether if desired.
Virtual ExperiencesFill the Gap
For shoppers still hesitant to buy sight-unseen, video tours, virtual test drives, and online consultations with sales representatives aim to fill the gap until an actual in-person appointment. Virtual showrooms on OEM websites allow rotating 3D models, zooming in on details, and previewing multimedia demonstrations. Independent review sites host detailed walkaround videos of most models as well. Some dealers livestream test drive events or offer virtual appointments where a salesperson can share their screen to review vehicles, answer questions, and discuss the purchase process through video chat until a test drive occurs. These virtual experiences provide tangible product previews to bolster online confidence.
Data Privacy and Security
With the growth of online shopping comes more worries about data privacy for consumers. Leading automotive websites strive for best practices like encrypted connections, careful handling of personal and financial information, and transparent privacy policies. Some offer membership programs requiring signup for features like saved vehicle configurations or trade-in valuations, but auto shopping and research can still be done anonymously. With years of experience in the highly regulated automotive industry, top companies employ rigorous security standards to protect shoppers. As online security continues advancing rapidly, digital car buying can provide reassurance through proactive protection of personal data.
After Purchasing
Not only is the core car buying process moving online, but related après-purchase activities as well. Shoppers can now research, select, and purchase parts and accessories online post-sale. Websites specializing in OEM parts break down vehicles into modular assemblies to quickly find what is needed without specifying part numbers. Many dealers and independent sellers provide online parts inventory that can be shipped for at-home or professional installation. Customers may also explore appearance modifications, technology upgrades, cargo solutions, protection products, and more selected specifically for their vehicle’s applications without visiting stores.
Trends Favoring Digital Convergence
Clearly, significant portions of the car-shopping lifecycle have already made their way online. Research indicates the future will bring continued digitization with the following ongoing trends:
– Younger demographics even more comfortable with internet-based activities than generations before them
– Advancements in VR/AR bringing virtual previews ever closer to reality
– Data-driven personalization improving throughout the purchase funnel
– Partnerships strengthening the hand-off between online and offline phases
– Expectations of convenience, control and choice driving consumer demand for digital omnichannel experiences
As technology removes friction points and automakers/dealers adapt inventories and processes, online car buying initiatives will remain focused on streamlining what is now often a drawn-out and cumbersome purchase process traditionally centered at dealerships. Full convergence between online and offline remains on the horizon as retailing continues its digital transformation across all industries.
Online car buying offers an appealing alternative to the traditional dealership experience for many modern consumers.
