Car dealerships across the country are expected to keep digital car-buying options in place long after the lingering COVID-19 pandemic subsides.
"The current climate drove dealerships across the country to quickly adapt to meet the changing needs of American car buyers," Cars.com Inc. president and CEO Alex Vetter told PR Newswire. "It has been incredible to witness an industry as large and established as automotive respond with new technology and adopt new processes to ensure a safe and frictionless car-buying experience. As the pandemic continues into the second half of 2020, more people will turn to car ownership to safely get around while social distancing. And I believe we will see durable changes to car buying and selling that deliver an improved experience for all."
The digital automotive marketplace and solutions provider highlights six trends it expects to play out during the second half of 2020 that could have a lasting impact on the industry.
To begin with, the company foresees more car-buying business being completed online. By May, car sales through Online Shopper were up 63% compared to before the pandemic, the PR Newswire release said.
Concierge services, such as at-home vehicle pickup and delivery, are also increasing, with nearly one in three car shoppers now wanting their local dealerships to offer at-home test driving and home delivery. And because many showrooms continue to operate on a limited basis, artificial-intelligence-powered options like chatbots have grown in importance.
As more consumers are looking to become car owners amid growing concerns about public transportation and ride-hailing-service use, interest in sedans is particularly on the rise, with Cars.com reporting a recent 14% search activity uptick on those vehicles. The used car market has also experienced a significant resurgence, with preowned-vehicle searches having increased by approximately 5% over a three-month period extending through the latter part of June.
Finally, the so-called affordability crisis is lingering, as new-car prices reach all-time highs that beg the option of longer loan agreements.
Vetter concludes it could all spell good news for the industry over the long haul. "The long-term impact of COVID-19 on the auto industry remains to be seen, yet our data and research indicate reasons for optimism,” he told PR Newswire. “Despite the pandemic, our site traffic has grown for 11 consecutive weeks dating back to the start of May and leads from shoppers to dealers have increased for 14 consecutive weeks. There is significant activity taking place and in the midst of all this, our industry is changing for the better."
Alerts Sign-up