More Consumers Turning To Technology For Vehicle Purchases

Cameron Aubernon
by Cameron Aubernon

While visiting a dealership is de rigueur for most, an increasing number of consumers are turning to technology to buy their cars.

Detroit Free Press reports that consumers visit 1.6 dealerships on average prior to purchasing a vehicle — down from an average of five 10 years prior — four out of five compare prices and vehicles from an average of 10 dealerships through sites like eBay Motors, Edmunds and TrueCar, and half of millennials purchased their vehicles from their smartphone or tablet.

The challenge for those who conduct their car-dealing business online is to convince more traditional dealers that technology is a tool for increasing sales, not a new competitor out to steal sales. Ebay Motors general manager Bryan Murphy considers his site a sales channel and “not a retailer,” citing scale as the main selling point; dealers can connect with 155 million eBay customers around the world through eBay Motors.

Dealers, as well as automakers and lenders, would also be able to make financial offers tailored to a consumer’s given economic history, zip code, insurance, and other factors that may not be relevant to buying a car, thanks to data mining and other information-gathering tools.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • Ruggles Ruggles on Feb 06, 2015

    RE: "The challenge for those who conduct their car-dealing business online is to convince more traditional dealers that technology is a tool for increasing sales, not a new competitor out to steal sales." Why on earth would online dealers want to convince "traditional dealers" to do what they do? What might be their motivation?

  • 7402 7402 on Feb 06, 2015

    Step 1: Go to a nearby dealer to test drive the target car. Be crystal clear and state two things before you drive, that you will NOT buy a car today, and that you will be soliciting bids from other dealers. No need to be chatty about price, you are gathering data about the vehicle, not about the pricing. Step 2: Once you've confirmed that you want that make/model, contact every dealer within your reasonable traveling distance by e-mail. Provide the details of your transaction (cash or finance, trade-in or not, precise vehicle configuration and options). Say you plan to make your purchase within X days from the dealer with the best offer. Tell them to make their best offer and provide the "out the door, one check" price that includes taxes, tags, etc. Ask what extras they throw in such as loaner cars for service, included oil changes, etc. etc. Provide your name and phone number so they know you are serious. Step 3: Compare all the offers. If the closest dealer's offer isn't the best, call the manager there and explain that you would really like to buy from a local business but they have to meet or beat your best price. If they are really close, ask them to throw in some all-weather mats or something. Buy local if you can. Step 4: Pick up the car. If you are a cash buyer with no trade, simply bring the cashier's check with you--you'll get almost no hassle from the F&I guy because you are simply paying for something that has already been negotiated.

  • Brianyates Brianyates on Feb 06, 2015

    Actually Ruggles,the price for my 550i was was agreed upon on quite quickly. The dealer realised he would have lost the sale if therewas no movement on transport and document charges. I didn't think that those things should spoil my experience and they didn't. I wasn't really haggling, I just said no the extras being foisted upon me.

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