Is Selling Cars Online The Next Big Idea For The Automotive Industry? Some Seem To Think So, But We Aren’t So Sure (Part 3)

Just about everyone has been talking about how selling vehicles online and “Buy Now” buttons are the future of the car business. We’ve identified the 3 major problems with the way the industry is approaching the advent of digital automotive retailing. In the past two months, we talked about customers and their preferences. This month we bring you the final installment.

Big Problem #3: Even Once The Technology Is Available, Not Everyone Will Be Able To Buy Online

If you analyze the overall market, you’ll find that roughly 2% of the people in any geographic area are currently shopping for a car, be it new or used. But of that 2%, the people who are going to have the liquidity of cash to pick their down payment and their monthly payment, all while having the near perfect credit score it will take to get approved online is also only about 2%.

That means that by moving your entire sales process online, you’re only going to be able to help about 2% of the 2% who are actually shopping. And, that’s a pretty dang small piece of the pie.

Ultimately, most of the current digital retailing solutions are only going to help you target those people who can afford to do what they want, when they want.

Entering into the world of online selling may seem inevitable. And we’re not saying you should dig in your heels and refuse to keep up with the times, but what you need to understand is that the Internet is merely a tool. But it’s not the only tool. And it’s not a strategy for continuous success.

The biggest opportunity in the car business is learning to market to and attract the 98 percent of the market who are not shopping, but would like a new car.

We call these people Sleeping Buyers because while they aren’t currently shopping, they are dreaming of driving a better car than the one they have right now.

Why?

Because of The Miracle Of The Car Business, which is the fact EVERYONE would like to drive a Nicer, Newer^® car.

Think about it: Do people wait until their old car is broken down or in an accident before they buy a new car? Not usually…otherwise there would be no used car market. So what motivates somebody to buy, if not logic or necessity?

People buy cars because of emotional reasons. They want to feel safer, more important, more comfortable, more cool. They want to change the way other people look at them and think about them. Ultimately a car is an extension of our ego. Your car is parked right outside in the driveway, or in the parking space at work, on display for the whole world to see and judge you by. And that’s why you can motivate these Sleeping Buyers into the market. Because deep down inside they are dreaming of a Nicer, Newer^® car.

But a “Buy Now” button on your website isn’t going to help you attract these customers, so you need another strategy that will. That doesn’t mean you shouldn’t have the option of online purchasing or approval available for the people who want it. It just means that you need to supplement the approach with solutions that will help the rest of the people who would like to buy a car from you today. This is a much bigger opportunity that will bring you much greater success.