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 the actual 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 to 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 bypass a dealership and go online.
Meanwhile, only 29% of people earning 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 one consultant, wealthy people tend to value time over price. This doesn’t mean they don’t care about a good price. Instead, they are willing to pay a reasonable price for a car to avoid wasting time at a dealership. This group of customers often knows exactly what they want, from the color of the car to the options it comes with, without having to go to a dealership.
The middle-income group of buyers has a high need to try out different brands and models to come to a 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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