Coronavirus concerns and government shutdowns are forcing dealerships to conduct business digitally.Visit Business Insider's homepage for more storiesWhen Michigan Governor Gretchen Whitmer ordered a statewide lockdown in March, things looked bleak for Jim Seavitt, the owner of Village Ford, a dealership in Dearborn, Michigan.
That number, if anything, downplays the rapid pace of change. Even before the pandemic, the general industry consensus was that more than 80% of new car buyers would go online during at least part of the buying process, whether to find what's available or affordable, as well as to check reviews. "We never have to have direct contact," he explains, noting that Village Ford now will arrange for a contactless vehicle drop-off once the deal is done.
"We believe will expect to stay with this way of doing business," said Krebs, "and may even be willing to pay a little more." The push into online sales is just one of the ways the automotive retail model is in flux. The process began with the arrival of corporate dealer groups like AutoNation, the Penske Automotive Group and Lithia Motors around the beginning of the new millennium. Automakers – along with their then-dominant ma-and-pa retailers – initially resisted. Today, however, such groups dominate the market.
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Wow. Cars sold online should be a sight. Wonder how these cars will be shipped from a far off city.
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