The auto industry has experienced rapid growth thanks to technological advancements. A few years ago, online car dealerships were a figment of imagination. But today, select auto companies offer all their services on the internet.
Changes are also evident in consumer buying and shopping trends. Car buyers now start their search for a new or used vehicle online instead of visiting a dealership. Technology has forever changed how cars are bought and sold, and we expect more changes from here on out. Here are four amazing ways technology is changing how people buy cars.
1. Car Research Now Happens Online
Many car buyers are still not comfortable with an online car-buying process in its entirety. At some point, they want to visit a dealership in person and check out the car. However, they research and make up their minds before setting foot in the dealership. Statistics show that 92% of buyers now search for cars online before visiting a dealership.
Six out of ten people are usually undecided about the car they want to buy when they walk into a dealership. At the research stage, auto retailers can draw prospects to their showrooms using technologies such as geofencing marketing.
2. Home Deliveries and Test Drives
Today, it’s possible to complete all car-buying transactions on the internet–right from research to paying for the car. And you don’t have to go to the dealership for a test drive, the car can be delivered to your home. At-home test drives and deliveries increased in 2020 when social distancing was a big concern.
Car buyers can now book test drives online and wait for the cars to be delivered. But not everyone is comfortable with this arrangement; some people still prefer the traditional way of doing things. Lexus of Watertown, a Lexus dealer in Watertown, Massachusetts, says that some people still prefer to visit dealerships, especially those buying a used car.
3. Virtual Showrooms
Virtual reality is now used in many sectors, including the auto industry. It is widely used in the industry in different processes–from manufacturing to car selling. Automakers use it in designing, manufacturing, assembling, and selling cars. Virtual reality showrooms are now used to enhance the shopping experience for car buyers.
Car dealers are heavily investing in VR showrooms to give potential customers a great shopping experience without leaving their homes. You can now examine your dream car using a smartphone and even test drive it virtually. Big auto brands like BMW, Lexus, and Audi have dedicated apps that give shoppers a 360-degree view of a car.
4. Digital Advertising
Auto manufacturers and retailers have moved almost all their marketing campaigns online. Today, it’s very rare to see someone reading a magazine about cars. Digital marketing tools have been cleverly integrated into social media platforms and other digital platforms to appeal to customers more.
Thanks to analytical marketing tools, dealers have become aware of where car buyers hang out and are focusing their marketing efforts there. Platforms such as Instagram, Facebook, and Youtube have become marketing hotbeds for millennials. SEO advertising has also increased in recent years; many websites now advertise using the pay-per-click model.
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