Selling cars and trucks online with automotive e-commerce is now a reality, but many dealers are still confused about whether digital retail is good for their businesses. After all, the car business has found success by sticking to the tried and true methods, so why change the rules this late in the game?
On this episode of Driving Solutions, hosts Jim Fitzpatrick and Shyann Malone are joined by Paulo da Silva, vice president of operations and e-commerce at Cox Automotive. Da Silva has spent years developing successful digital retail campaigns, generating over $800 million in revenue for his employers. Now, he discusses the advantages of e-commerce and why dealers should embrace this emerging technology.
1. Automotive e-commerce allows dealers to conduct multiple parts of the purchase process online, giving car buyers the ability to shop at their own pace.
2. Roughly half of all e-commerce customers are further than 65 miles away from the dealership they purchase from.
3. Automation of consumer crediting and financing, made possible through a partnership with an automotive e-commerce platform, can save up to 90 minutes in the transaction process.
4. Average gross-per-unit revenue on e-commerce purchases varies only $100 from in-store transactions.
5. The industry is still in the early stages of adopting automotive e-commerce, but the technology is expected to rapidly permeate the market in the next 12 months.
"When you look at the front-end, e-commerce effectively offers no negotiation on prices, so...for a like-for-like vehicle, you are looking at effectively either the same front end as you would realize in-store or better if you're negotiating in-store." — Paulo da Silva