The results are in
The results of the first iVendi Report on Online Motor Retailing were published, providing detailed information into the growing area of the motor industry.
James Tew, CEO, said, ‘This independent research, undertaken with the help of APD Global Research, fills what we believe to be a gap in quality information about one of the fastest growing and potentially most important areas of the motor industry.
‘It looks in detail at the views and the plans of new and used car buyers, car dealers and motor manufacturers, illustrating their attitudes towards online motor retail today and into the next few years.’
Highlights of the results include: 79% of customers say they would be ‘confident’ or ‘completely confident’ about buying a car online, 52% of car dealers believe that customers would buy a car from them entirely online, and 81% of moto manufacturers believe that its existing dealer networks should be involved in online retail.
For consumers, the main advantage of online retailing was seen to be convenience and ease of shopping around. The clothes and fashion, and consumer technology, sectors were the most advanced for the online experience and the car sector being well behind the others, ranked at fifth.
The main barriers to buying a car online related to the desire to see and test drive the car as well as the security aspect while, for financing a vehicle online, the barriers related to confidence and security. The positive factors making consumers more likely to buy and finance a car online were seen to be ‘trust in brand’ followed by the lifestyle factors of a non-pressurised sale and convenience.
The role of a dealership visit as part of the buying experience was stated as important with 87% of consumers likely to visit a showroom to see and test drive a vehicle and ask questions.
Of the dealers surveyed, a majority thought that consumers would appreciate the option of buying and financing a car entirely online, and that this kind of activity would increase, particularly in the next 12-18 months.
Almost half of the manufacturers surveyed already offer the option to buy a car on its’ web site or agree that the technology is now available to offer this facility. It sees the opportunities of more brand visibility and believe it will bring new consumers.