How to Solve Friction Points in the Online Car Buying Experience

Ask most car buyers about the car-buying process, and one of the first things mentioned is that they’re tired of spending hours at a dealership trying to buy a car.

Haig Partners said nearly 30% of U.S. new car sales in 2020 were completed online. Customers can browse various cars with the convenience of an online showroom and complete most of the buying process online.  

While dealerships are rightfully worried about being cut out of the car buying process with the shift to online sales, as reported in U.S. News, “In most cases, though, a final trip to a dealership is still needed to go for a thorough test drive, to sign the paperwork, and to take delivery of the car.” So, dealers still have the opportunity for face-to-face interaction and to add value to the customer. 

But, like any new business model, online car buying has challenges. So, let’s go over some of the major friction points. 

First Friction Point for Buying Vehicles Online: The Importance of Personal Interaction 

One of the most significant challenges is the need for more personal interaction. Customers want to feel confident and secure in their purchase. And with the online experience, personal interaction with the customer is even more essential to answer questions about the car’s features, performance, and comparison to other options they’re considering. And a dealership that can serve as an advisor who can listen to the customer’s needs can make the sale a better experience. 

Be the Expert 

In addition, since customers are accustomed to doing their own online research, it’s easier to get information. Dealership representatives must be knowledgeable and trusted advisors by providing clear and responsive communication through email, phone, and chat support. 

Second Friction Point for Buying Vehicles Online: The Essential Need for Exceptional Experiences  

Although car buyers begin their car buying process online, they find value in the in-person experience. Dealerships that work to provide seamless experiences both in person and online will have the advantage in securing more sales.

Detailed Information & Virtual Tours 

Customers are often skeptical of purchasing a vehicle online because they have questions, want to see the car, or want to test drive the car physically. This lack of interaction can lead to uncertainty and distrust. Dealerships can alleviate these concerns by providing detailed information about the vehicle, including high-quality photographs, videos, and virtual tours online.

Speed up & Improve the Sales Process 

With fewer customers visiting in-person showrooms until they are further into the buying process, dealerships need to secure as many sales as possible from this reduced foot traffic, and that starts with making sure the customer has a great experience in your store. Using a lot management system can not only help secure your lots, but also quickly locate vehicles the customer is interested in test driving and know that the car is ready to impress with a full battery and sufficient fuel. This helps speed up the sales process and ensure a great customer experience to improve CSI scores and drive return business in the future. 

Third Friction Point for Buying Vehicles Online: The Benefit of Added Value 

If every dealer focuses on the best price and works on communication and transparency, does it matter where a car is bought? Well, this is where the importance of added value comes in. Dealerships that are ahead of the curve will go beyond the basics and offer something extra.  

Value adds like stolen vehicle recovery systems and vehicle health monitoring can add substantial value to customers and create additional profit for your dealership at point of sale. These services can help customers feel secure in their investments and set dealers apart from their competition. 

Additionally, dealers can offer the option of home delivery, which saves customers time and hassle. Capital One says less than half (39%) of car buyers say they are willing to order and wait for the delivery of their next car. So, having a vehicle in stock and ready to be delivered is essential. 

If you’re a dealership that makes the buying process more streamlined, responsive, and user-friendly, you’ll be a more attractive option for busy consumers. 

Are You Ready? 

With the right strategies in place, dealerships can ensure a smooth and successful sale, and customers will have the confidence they need to make a purchase.