Industry Expert Chip Perry on the evolution of the automotive sales model

On the latest episode of Straight to the Point, host Frank J. Lopes is joined by Chip Perry, CEO of A2Z Sync. Perry has extensive experience in the automotive industry, as he previously served as CEO of AutoTrader and TrueCar. Perry joins the show to discuss his perspective on what today’s automotive sales model should look like.

Lopes gets straight to the point with Perry by asking him if the traditional sales model is dead and gone. Traditionally, the sales process started with BDC, moved to setting appointments, and incorporated numerous dealership personnel. Perry calls this method “outmoded”, but he isn’t ready to make a sweeping declaration to insist that it is dead. He says that it would be arrogant and presumptuous to consider this method dead because many dealers still use this method and are finding success with it. 

While the traditional automotive sales model isn’t necessarily dead, Perry believes that it can be improved upon. One major reason for improving the process comes from consumer perception. The traditional process of buying a car has led many customers to dread looking for a new vehicle. Perry insists that the process must be improved because disruptors, like Carvana and Vroom, are taking market share from dealers based on promotions of a better car-buying experience.

“I think it’s pretty clear that dealers need to respond and not take the current strong financial performance of their stores and allow them to become complacent about future competitive challenges,” said Perry. “The disruptors are not getting weaker, they are getting stronger.”

Digital retailing has allowed dealers an opportunity to destroy the negative perception that floats around in the minds of consumers. While disruptors market the perception that dealerships are complicated and difficult places to buy a vehicle, dealers can now use digital retailing to offer a similar, if not better experience, than online-only retailers. However, dealers must be willing to utilize these digital tools to reap the benefits they produce. 

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