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The latest news from iVendi and the industry

News

The latest news from iVendi and the industry

Results of first-ever iVendi Report on Online Motor Retailing published

Mon, 04/06/2018

Attitude2

The results of the first-ever iVendi Report on Online Motor Retailing have been published, providing probably the most detailed and credible insight yet into this rapidly 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.

“The overarching message from all three groups is that online motor retail is set to grow, probably rapidly and substantially, with increased investment from dealers and manufacturers, and increased trust and activity on the part of consumers.

“Importantly, all agree that dealer networks will remain essential part of the process.”

Highlights of the results include:

Car buyers

  • 79% say they would be “confident” or “completely confident” about buying a car online
  • 57% believe that motor retail lags behind the best online retail experiences
  • 87% indicate that visiting a car showroom is an important part of the buying process

Car dealers

  • 52% believe that customers would buy a car from them entirely online and 6% offer this option currently
  • 43% plan to increase their online retail activity in the next 18 months
  • 83% say it remains important for the customer to visit the showroom

Motor manufacturers

  • 33% plan to offer the option to buy and finance a car online within the next 18 months
  • 73% say that they will be increasing their investment in this area
  • 91% believe that their existing dealer networks should be involved in online retail
  • They currently see car supermarkets as their biggest online competition but, in the future, foresee it becoming digital marketplaces such as Amazon

James Tew added: “These findings act as an important counterweight to some of the more outlandish claims that have been made about how online retail will change the motor industry. It shows that yes, online retail will become much more important and relatively quickly so – but it also indicates a future where the dealer remains a key element of the buying process.

“What consumers want, it indicates, is a high degree of flexibility. To construct their own buying process that may be entirely online or entirely at the dealer – but is much more likely to combine the two in whichever way they desire.”

James said that that the attitudes shown by the three groups surveyed provided an insight into the opportunities and challenges that the sector faced.

“Consumers are comfortable with online retailing and finance when considering a car but they have concerns based around the requirement for security, the need to see the physical vehicle and the desire for ease of experience. The dealer is still perceived as important in the sales process for a new car.

“The dealer is keen to maximise sales and believes that getting consumers into their showroom will support this but also wants to meet consumers needs and improve the overall sales experience, so are evolving their online offerings.

“Finally, manufacturers want the highest sales and brand profile at the lowest cost, and view online as an important way of achieving this. Plus, they see the need to compete with other retailers online, from car supermarkets to digital marketplaces.”

To request a copy click on this LINK

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