Online Car Shopping Popularity Grows, but Dealerships Retain Importance
Almost everyone now searches online when buying a new car, but the majority still sign a contract at a dealership, according to the latest EY international survey of 15,000 consumers in 20 countries.
The vast majority of respondents (87%) first go online to gather information about which car to buy. Nevertheless, the role of dealerships remains indispensable, EY notes.
Some 61% of respondents would definitely buy at a showroom. Just 25% of respondents can imagine buying their chosen car online.
"Although the majority of people will insist on test-driving their new car before buying for a long time to come, online sales are also gaining ground in this market. In just three years, the proportion of people who would be willing to make the final decision online has increased by 7 percentage points," said Tamás Rózsa, automotive expert at EY-Parthenon.
He added that this is why manufacturers and dealerships are in a particularly difficult position when it comes to sales, as they can only be truly successful if they can effectively reach potential buyers at all points of the purchase journey. But this is a particularly long and winding road due to the advance of digitalization, so it is worth bringing in an external expert.
The survey also shows that dealerships can play a key role in the uptake of electric vehicles. Indeed, customers who have reservations about electric cars have a strong preference for dealerships and rely on them from the initial purchase stage. These customers are more likely than the average (75%) to want to test drive a car in person before ordering (67%).
"For some drivers, it's a big leap to switch from a conventional petrol engine to an electric vehicle. From range concerns to charging problems to running costs, there are many reasons for this. This makes information essential to dispel preconceptions, which dealerships can help a lot with, and manufacturers should also take this into account when designing the purchase process," said the expert.
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