The Growth of Online Car Buying
Over the past decade, car shopping habits have shifted significantly as more people turn to the internet to research and purchase vehicles. According to recent surveys, over half of all car buyers now start their search online rather than visiting dealerships first. This trend has been driven by the convenience of shopping from anywhere at any time as well as the ability to easily compare models, trim levels, features and prices. Online retailers and manufacturers have responded by investing heavily in digital platforms and online inventory to better serve digitally native car shoppers.
Researching and Pricing Options Online
Manufacturers like Ford, Toyota and GM now have robust websites that allow users to fully configure potential vehicle purchases with different color and option combinations. Shoppers can then view base MSRP pricing as well as invoice pricing data to get a better sense of potential negotiation room. Third-party sites like Edmunds, KBB and AutoTrader also aggregate vast amounts of vehicle data, user reviews and pricing information to enable easy one-stop research. Buyers can spend hours diving into specs and trims without visiting a single showroom. Pricing information from various dealers nationwide is just a few clicks away.
Online Car Configurators & Visualization Tools
Advanced Online Car Buying configurators have become a major research tool for buyers. Websites allow users to experiment with different vehicle variants, building their ideal configuration from the ground up with option selections. Some sites take this a step further, offering high-quality 3D vehicle renderings and camera tools to see selections from every angle. This level of online visualization helps buyers feel more confident in their choices prior to stepping foot in a dealership. Some brands are even introducing augmented reality smartphone apps that overlay vehicle imagery directly onto real environments for a true test drive feel without the vehicle.
Streamlined Online Purchase & Delivery Processes
Once shoppers have settled on the right vehicle, many automakers and retailers allow completing the bulk of the purchasing process with minimal dealership interaction. Secure online credit applications, e-contracts, e-signatures and e-delivery scheduling steps minimize the need for face-to-face meetings. Some companies advertise quick delivery right to the customer's door. This streamlining removes many traditional irritants of the dealership experience while maintaining a personal branded experience online. It also enables buyers to maintain control of the process through their preferred digital channels - whether on a mobile device or desktop.
Test Driving & Inspections
While much of the research and deal-making can happen remotely, test driving remains a critically important part of the process for many buyers prior to a final commitment. To facilitate this, some automakers and retailers have developed innovative programs. For example, Tesla allows prospective owners to request vehicle loans for short test drives within their local areas. More traditional brands are partnering with independent rental services in major metro regions to keep a rotating inventory of vehicles available for quick test rentals. Dealers have also gotten smarter about at-home test drives by ensuring vehicles are thoroughly cleaned and inspected ahead of time. In s where at-home test drives prove too logistically complex, buyers can still get an idea of dynamics with online driving simulators or virtual test drives prior to purchasing.
Factory Ordering & Delivery Lead Times
For shoppers who have designed a uniquely specified vehicle on a carmaker website, factory ordering the precise configuration may be preferable to settling for existing dealer inventory. Most major automakers allow US customers to place factory orders online that trigger vehicle builds at plants. Shoppers can then track estimated production schedules and take delivery of the brand new ride within just a few months once completed. A few companies have found ways to further compress traditionalschedules by pre-building common option combinations ahead of orders and shipping from nearby port facilities rather than direct from plants. However, factory delivery times will generally still exceed the immediate gratification of driving off the lot in an existing unit.
Online Financing & Trade-Ins
Completing vehicle financing arrangements digitally has become standard practice in today's online car buying ecosystem. Major automakers have launched customized online auto loan application portals that tap lending partners to generate instant approval decisions and rate quotes based on credit profiles. Some tech-focused retailers even promise to beat rates from local banks. Online loan contracting allows binding buyers to specific deals in a paperless process. The ability to conveniently initiate trade-in appraisals remotely through uploaded photos has further streamlined online selling. Major players have also built out certified pre-owned inventory selection with dedicated online financing to extend digital convenience to used vehicle shoppers.
Managing Post-Sale Service Needs Online
While the focus is on online sales, manufacturers and dealers recognize the need to also elevate post-purchase digital support. Most provide online account portals for routine tasks like scheduling service appointments, checking maintenance records or making payments. Some advanced systems even leverage connected vehicle data feeds to proactively notify owners of potential issues. Owners can now typically source genuine parts, book mobile technicians or remotely grant dealership access via these accounts. This ensures customers remain engaged with brands digitally not just during shopping but throughout ownership. Over-the-air software updates further strengthen the connection by beaming new features directly into vehicles.
The Outlook for Online Car Buying's Continued Rise
Industry analysis shows internet auto sales trending upwards for the foreseeable future as more buyers adopt digital habits and options proliferate. Younger generations especially demonstrate strong affinity for the convenience afforded by online options. While some shopping tasks will always require in-person components like test drives, the bulk of car buying activities will likely continue shifting online. Automakers and retailers plan on investing heavily in expanded online tools and digitized deals to capitalize on this migration. Going forward, online car buying looks poised to become the dominant automotive purchase path.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)