Car Buyers Want a No-Touch Experience
Online tools and video chats challenge the new-car showroom
Forget about kicking the tires.
Most new-car buyers in the U.S. today would prefer to avoid visiting a dealership entirely, according to a KPMG survey.
New Car Buyer Habits
The poll of 2,500 adults finds that plenty of would-be customers are still eager to buy. But results suggest that 75% of these prospects favor a no-touch experience that taps online tools and video chats to handle everything from trade-ins to taking home delivery.
Here’s a surprise: Respondents who planned to purchase within six months before the pandemic began are now slightly more likely to buy.
Not so surprising: Half of those intenders say the COVID-19 scare has caused them to delay their purchase decision by three months or more.
Car Dealers Test Remote Selling
The study notes new-car showroom traffic and retail sales in the U.S fell by roughly two-thirds in March. But it has leveled off since then. KPMG suggests that’s because dealers are trying out new ways to sell to customers remotely during a period of stay-home and facility lockdown orders.
Certainly, consumer interest is there. Yes, four out of five consumers won’t buy a car without a physical test drive. And yes, nearly half of that group still wants to do so by visiting a dealership.
But almost half of respondents say they’d rather have a test vehicle brought to them. And 5% are willing to forgo the physical stuff and simply take a virtual test drive.
After they choose a vehicle, 75% of respondents tell KPMG they want to wrap up the paperwork and take delivery without visiting a dealership.
A yen for online processing is no passing fad, according to the report. It notes that some experts predict as many as 90% of U.S. new-car dealers will be fully e-commerce ready by the end of this year.
As lockdown restrictions lift, KPMG says consumers will be more likely than ever to expect to be able to handle most, if not all, aspects of the buying process remotely.
The next step, the study suggests, is for carmakers to integrate their own product-oriented websites with emerging dealer-level digital sales tools.
Doing so, says KPMG, could help brands capture budding demand. It might even reduce the need for the usual sales incentives typical of previous economic slumps.
When it comes to quality, it seems as though Ford Motor Co. is on a roll.
I'm not talking about a plastic Revell model of a '57 Chevy, but a real vehicle, one that rolls off an assembly line in 1999 with another 99,999 just like it right behind. Is it possible, or is this just a fantasy of the marketing department at Elmer's?
There is a growing concern among automakers that young people just aren’t as keen on driving as those automakers—as in people who are generally north of 45—find that even their own children, kids who have grown up with a highly satisfactory lifestyle thanks to the existence of cars and trucks, are largely indifferent to driving or, in some cases, even getting a license.