Customers are not ready to buy cars online.
People with high incomes who want to save time buy cars online, while the middle-income group values real-life experience before buying.
E-commerce giants like Amazon and startups like Beepi are looking to sell cars online, but recent surveys show that most car buyers still prefer to go to dealerships.
Automotive News magazine cited data from a survey conducted on 2,000 new car buyers in August in the US (conducted by the software company DealerSocket) showing that buyers' needs are still not connected with what car dealers are selling. In fact, many large car business chains in the US such as Sonic Automotive, AutoNation, Penskeare investing heavily in online shopping options.
When asked if they would be willing to buy a car entirely online instead of going to a dealership, only 33% of respondents said “yes.” The survey also detailed that only the very wealthy are interested in buying a car online. Half of those surveyed with annual incomes between $100,000 and $149,000 would be willing to skip the dealership and go online.
Meanwhile, only 29% of people with incomes between $25,000 and $49,000 a year choose to buy a car online. In terms of gender, 37% of people who choose to buy a car online are men, compared to only 29% of women.
According to a consultant, wealthy people tend to value time over price. This does not mean they do not care about good prices. Instead, they are willing to pay a reasonable price for the car to avoid wasting time at the dealership. This group of customers often know exactly what they want, from the color of the car to the accompanying options, without needing to go to the dealer.
The middle income group of buyers has a high demand for trying out different brands and models to come to the final decision on which product will be the best. This group is more interested in saving money than time.
According to VNE
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