The transition from traditional to online car sales

The internet has been fundamentally changing the way we buy things for years. While other sectors felt the changes immediately, it took longer for other industries. But today, everyone is aware that the impact of the internet on all industries is enormous. Initially, it seemed as if the vehicle trade was largely immune to the upheaval brought about by the internet. However, large parts of the car trade have now been digitized.

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Customers find out about cars online

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‍Studies show that the majority of car buyers today use many different sites to find out about models and manufacturers before making a purchase decision. On average, buyers spend around two and a half months researching before they start looking at vehicles. As a result, buyers today are much better informed about manufacturers and models when they visit the dealer than they used to be. However, buyers don't just use this time to research their new vehicle, but also to decide where to buy the car. In this article, former car dealership consultant Christoph Adunka explains which tips car dealerships should consider in this context to successfully convince buyers online: Digitalization in the car dealership with these 5 tips

The impact of the internet on the new and used car trade

The trend towards extensive information gathering on the Internet is just as noticeable for new cars as it is for used cars. New car buyers use the Internet to configure their dream car and research prices. However, internet research plays an even greater role when buying a used car. In addition to selecting the right vehicle, it is also important to choose a dealer and find the right price.

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Same trends for dealer vehicles

The proportion of online trading is also growing steadily in the sale of used cars between commercial dealers. While the purchase of dealer vehicles used to be a laborious and time-consuming process, more and more dealers are using digital B2B marketing to get rid of their clocks and buy suitable vehicles. The increased efficiency compared to traditional auctions results in enormous cost savings and less effort for dealers.

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What the automotive trade needs to consider now

In order to fully exploit the potential of online retail, you first need to consider the differences compared to traditional retail. In general, the buying process nowadays goes something like this:

1. A buyer researches online to make a shortlist of vehicles that interest him
2. The buyer then begins the search for a Seller. Both the product range and the retailer's reputation play a role here
3. The buyer tries to find out whether a vehicle is available by phone, e-mail, text message or chat
4. If the vehicle is available, an appointment will be made for a test drive
5. After the test drive, the terms of the purchase are negotiated
6. Financing and documentation are handled online
7. The buyer visits the dealership to sign the contracts and collect the car

In some cases, the dealer even delivers the vehicle to the buyer's front door. This means that the test drive is the only point of contact between the dealership and the customer. Some customers even forgo this last point of contact. Due to the very limited points of contact with the buyer, it is essential for a car dealership to consider an Internet strategy.

Connect the retail trade with the online trade of your vehicles

Just as car buyers are looking for connected vehicles, they also want a connected retail experience. A connected retail experience seamlessly connects online and offline activities. This plays a role in the checkout process, for example. Buyers want to complete part of the process, such as choosing a financing option, online. However, the majority of buyers want to sign the final purchase contract at the dealership. Allowing this type of connected retail experience puts you ahead of the competition.

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Create an informative website

An important factor for the credibility of a website is the information content. If you want to attract more attention online and get more leads, try to keep the following things in mind for your website:

• Calculator for determining the trade-in value (purchase screens)
• Reviews of different brands and models - even those you don't currently sell.
• Videos showing the interior and exterior of the vehicles you offer
• Guides on the financing process.

So the goal of your website is to be a resource for online car buyers, not just a marketing platform.

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Exact specifications of the used cars

Detailed condition reports are the decisive purchase criterion for buyers. Exact specifications of a vehicle are therefore more important than the reputation and experience of the dealer or the price. Buyers usually find their way to a dealer's website based on the vehicle inventory. It is therefore important to state the specifications of a vehicle truthfully and in full.

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Simple processes for buying and selling dealer vehicles

Car buyers agree that the most annoying part of buying a car is the paperwork. CarOnSale users also agree that the time saved on paperwork is a big advantage. Therefore, sit down with your accounting department to find out where processes can be simplified. For example, are there forms that you can make available to customers online?

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Adapting the website for mobile devices

There are two very good reasons why your website should be as "mobile-friendly" as possible:

1) Google evaluates your website according to the motto "Mobile First". This means that the mobile version of your website is used to determine where your website is displayed in the search results.  

2) Every year more people use mobile devices for research in the car.

Well over half of people use mobile devices to find out about vehicles, while desktop use has declined slightly. This trend is in line with today's everyday life, people are spending more and more time on their mobile devices. Use this development to your advantage by gearing your website towards mobile devices. This will increase user-friendliness.

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Communicate by e-mail and online chat

Align your communication with the Internet and offer your customers the opportunity to contact you by e-mail or chat. For perfect communication on the Internet, it is very important to respond quickly to incoming inquiries. Many mail programs offer the option of automatically sending a confirmation of receipt to the customer. This reinforces the professional impression on the customer.

The use of online chat functions has also increased significantly in recent years. An online chat can be used to answer the buyer's questions in real time and at the same time collect additional information about the buyer's wishes.

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Building a good reputation with online reviews

Trust is a major factor when buying online. This is especially true for high-priced goods, including cars. Buyers use online reviews to determine how trustworthy an online retailer is before deciding to make a purchase. It is therefore very important to receive many authentic positive reviews. If someone leaves a negative review, it is helpful if you respond immediately. Use the response to apologize for the bad experience and offer pragmatic solutions. Customers often want to have a serious discussion about their problems. Try to put yourself in the customer's shoes and offer them individual solutions. This helps to put the effect of a negative review into perspective.

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Have an active presence on social media

More and more online car buyers are using social media sites during the car buying process. While only 2% of new car buyers use social media to research a vehicle, 10% use it to make a final decision on the vehicle they want to buy. As an online retailer, you can use your social media presence to promote special offers, showcase vehicles and engage with car buyers who are approaching the final purchase stage.

What a car dealer must consider online

No matter what proportion of the purchasing process is handled online, there will always be a need for salespeople to support customers with their purchases. However, the role of a salesperson differs greatly between brick-and-mortar retail and online sales. A successful Seller in bricks-and-mortar retail is not necessarily a good Seller in online business.

Use data in a targeted way to increase your sales success

Being a Seller in the online car trade is not easy. There is a lot of data that needs to be ideally utilized for short and long-term success. Coupled with the qualities of a traditional salesperson, such as good communication skills and knowledge of human nature, they can be used to advise the modern car buyer.

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Understanding the Internet car buyer

Good Seller online car dealers understand their new role as well as their target group, online car buyers. They have already researched on the Internet, decided on certain models, gathered initial information and are probably interested in a test drive relatively quickly. What is most important to online car buyers is simple processing, time savings and good value for money.  

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Provide detailed information

As is usual on the Internet, online car buyers expect the car dealer to provide information free of charge. Make sure that you provide as much information as possible on prices, vehicle condition and interesting facts about the model.  

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Know your stock inside out

Online car buyers are better informed than most consumers have been in the past. Therefore, make sure you know your inventory to avoid embarrassing situations where the buyer informs you about the details of one of your vehicles. If you have hundreds or thousands of vehicles in your inventory, it can seem overwhelming at first. Start by learning the essential information about the best-selling models. Pick a new vehicle to study every day, and you'll be able to cover a large portion of your inventory in no time.

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Communication with customers - Be quick

Online car buyers expect a quick follow-up when making contact. Remember, online shopping is about convenience and easy access to information. If you miss a call, call back within a few hours. Respond to emails within the same time frame.

Use software, so-called CRM systems, which ensure that every single lead is followed up several times if you are unsuccessful with the first follow-up. Every sales employee with customer contact should know the answers to the most important questions and know which contact person to inform for which questions. In this way, you can ensure seamless communication with customers.

Be up to date

To be able to respond to customers in the best possible way, you need to be just as tech-savvy as your buyers. So you need to know how to use the latest car finance calculators, car review sites, social media sites and so on. This way, you can help your customers use them and integrate your services into the use of the offers.

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Minimize hurdles

One of the biggest hurdles in online car sales are car dealerships that don't understand that customers don't just visit the dealership to get information. The most important reason to visit a dealership in person is to test drive a car. Make sure potential new customers know how to schedule test drives with you. The customer should have a contact person at the dealership after booking, even if they have booked the test drive online. If this is not feasible in your dealership, make sure that the handover is clearly communicated between employees and that the relevant employees are informed internally. In practice, it happens too often that customers book a test drive online and nobody in the branch knows about it. Have full control over the organization of the test drive and communicate this to your customer accordingly. This way, every potential customer will feel that they are being taken seriously and will not feel like they are wasting time on a test drive.

Many industry experts predict that online car buying will overtake the traditional process in the next few years. Regardless of how consumers buy their vehicles in the near future, you should take online sales seriously today to realize your full potential.