Alternative vehicle ownership is becoming increasingly popular among consumers and here to help us navigate through this constantly evolving industry is Rachelle Petusky, research and market intelligence executive for Cox Automotive’s Mobility Group. Today, CBT’s Jim Fitzpatrick and Rachelle discuss phase 2 of their mobility study: A Dealer’s Perspective.
So, what have we learned about dealers’ outlook on alternative vehicle ownership? As it turns out, dealers are well aware of the burgeoning new mobility trends. When it comes to vehicles per household, dealers are more aggressive in their predictions for a future decline. 28 percent of dealers say that the primary mode of transportation for consumers will not be a personally-owned vehicle in 5 years, only 18 percent of consumers said they believed that as well.
It certainly doesn’t mean that the traditional idea of car ownership will go away overnight, it just means that the industry will see a transformation in the next few years. So, what will ultimately cause the decline in vehicle ownership? Rachelle says there are several factors such as ridesharing, subscription services, and autonomous vehicles among other alternative ownership models.
What do dealers make of this? Well, only 1 in 10 dealers see these trends as a threat to business. Subscription services offer dealers a huge opportunity because it gives them another option to add to their business plan. It also allows consumers to experience multiple vehicles within your brand, and it will lead to an increase in revenue from fixed-ops as well.
One of Cox’s missions is to help dealers navigate through these changes, and that is done through education according to Rachelle. Dealers may know what these mobility trends are, but they might be unsure of how to adopt them for their particular dealership. While Cox is already getting some great dealer feedback, Rachelle hopes to continue to share the learning and engage in productive conversations. As for phase 3 of the Mobility Group’s study? It’s time to go back to consumer’s current preferences. What is the tipping point for consumers to go from traditional ownership to alternatives? We’ll find out soon enough.
You can find out more about Cox Automotive Mobility Group here on CBT News.