Almost half of car dealers say they are worried about the rise in car purchases online, according to Close Brothers Motor Finance’s Dealer Satisfaction Survey.
Among these concerned dealers, 30% said they worry about customers turning to car sale sites instead of showrooms, while 16% are concerned buyers will turn to online marketplaces like eBay or Facebook.
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Seán Kemple, managing director of Close Brothers Motor Finance, said: “After a tough year, which saw showrooms close their doors, potential buyers had no alternative than to research and purchase their car online or hold out until restrictions had been lifted.
“As such, the online trend is here to stay. Even of those who prefer to buy in person, many will still do their research before stepping onto a forecourt. And this can give dealers an advantage to reach more potential customers. So the value of dealer advice and insight both via digital channels and in person is significant and could lead to more sales.”
Nearly two-thirds of respondents said they had revamped their website or invested more in social media to stave off the competition. Others have incorporated more digital tools on their such as finance calculators and virtual showroom tours.
Although online sales have been rising steadily for some time, research from the Britain Under the Bonnet report found that drivers are not quite ready to take the full leap with buying a new car online. Just one in eight drivers said they would buy a car online without seeing it first.
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By GlobalDataMore than two in five admitted that they prefer to browse online but would then like to see the vehicle before buying it. Instead, drivers said they used digital channels to research vehicle choices, dealerships, and finance options before making a decision.
The drivers that are comfortable buying cars completely online tend to be younger – a fifth of 17-24 year olds would buy a car online compared to just 7% of over 55s. Men are also more comfortable than women purchasing cars online at 16% and 10% respectively.
