New survey predicts digital future for car sales

Digital showrooms could become even more important in the future after new research has found that more than three quarters of potential new car buyers will still be reluctant to visit a dealership once the lockdown has been lifted.

The study from Auto Trader was conducted between 14 and 17 April.

It found that 82% of consumers researching their next car are looking to buy now or as soon as they’re able to make a transaction, but the majority did not want to go to a dealership and 20% are actively looking to avoid it.

Auto Trader’s director of commercial products, Karolina Edwards-Smajda, said: “We’re confident the appetite to purchase remains, however our research highlights that for most consumers, their expectation of a retailing experience will be vastly different to what it was pre-lockdown.

“Retailers must use this time to plan how they can implement measures that enable their customers to buy a car safely and which comply to the strict guidance set out by the government. They must be retail ready for when the restrictions lift – failure to do so will put them at a huge disadvantage to those businesses that have been able to adapt to the new retail landscape we are now faced with.”

The survey found that 50% of respondents said they’d still be happy to complete the purchase at the dealership but wanted the majority of the process conducted online.

Edwards-Smajda added: “With consumer visits to dealerships set to fall, online showrooms will become the primary mechanism for driving sales. As a result, the digital marketplace will become increasingly complex and competitive; the businesses that will stand out from their competitors will be those that not only build confidence in the cars they’re selling, but in their ability to sell them safely.”