According to J.D. Power, millennials made up the largest group of car buyers in 2020, accounting for 32% of total new-car sales. And, as one of the largest buying groups by demographic their behaviours are shaping the future of the automotive market.
As a technology company, we’re always asking ourselves:
“What do people want from their car buying experience?”
Based on current research data from Deloitte, only half of consumers aged 18 to 35 still want in-person transactions. Automotive retailers are following suite with more and more services becoming available online and in digital format, such as:
Online search and immersive/virtual viewing of a car
Online financing and approvals
Online contract signings and digital notarization
Such data indicates that the automotive industry is trending towards a fully digital approach. What will that look like?
1. Everything will happen with a swipe and click
From choosing your car on your phone to viewing the interior cabin through VR/AR. The entire sales process for buying and selling a car will take place online. Dealerships will still exist—for a while--until most of the car buying experience is fully digitized.
2. Buying and selling a car will become a lot easier
Same day delivery. 24hr digital support. Automated pick-up and drop-off (something we already do) of a car will all be the norm. Buying and selling a car will be like buying and selling anything online. Online platforms, like ours, will facilitate this change by making the sales experience easy.
3. Electric Vehicles will be at the forefront of change
Tesla changed the dealership model to some degree with most of the buying experience taking place on their sleek and user-friendly website with less focus on the retail location. The growth and transition to EVs are also pushing dealerships to either change or fold. For example, 20% of Cadillac dealers accepted a buyout offer rather than follow the brand into an EV-only sales model.
The future of buying and selling a car will look much different than it does today with more focus on digital experiences as opposed to physical retail ones. With new immersive technologies being adopted by automotive manufacturers and new carmakers pushing the envelope on traditional methods of buying and selling—the future of driving is going to be a lot of fun.