Gary Gearbox from Greytown wrote to SuperSpark to ask
about the future of bricks and mortar dealerships as we
It is often said that the business of buying and selling
cars as we know it is about to change dramatically. What
is your take on this?
As one often hears, “the only constant is change”. And that
is indeed so in the motor industry as well.
I recently came
across this interesting article and thought the best way
to answer your question is to share the article with you.
While it is an article about the UK industry, we at the
southern tip of Africa never lag behind for too long.
So, my advice is that you should not be intimidated by change,
but to rather embrace it. Work out ways of incorporating
new technology and marketing techniques into your current
I have to fly, but would like to leave you with one last
thought, on a less serious note from one Robert Gallagher,
who once said, ‘Change is inevitable – except from a vending
Car-buying process will be entirely via video within five
The process of buying and selling cars will be done almost
entirely remotely using video technology within five years,
claims new research.
Consumers already use video extensively in the shopping
process, with 75% of car buyers watching video to research
their next purchase before ever setting foot in a car showroom.
As Smartphone software becomes ever more sophisticated and
super-fast 5G technology is introduced, that trend is expected
Motorists will be haggling with dealers, agreeing part-exchange
prices remotely and selling cars privately, all using video
communication rather than face-to-face negotiation.
The predictions come from automotive video specialist, CitNOW,
which has published a White Paper on the current and future
roles of video in automotive business.
Video is already used by the car industry across the UK,
with more than 50% of the franchised dealer network using
some form of personalised service to help customer relations
in both car sales and workshops.
CitNOW CEO Alistair Horsburgh said: “At the moment, the
car industry is waking up to the importance of using video
to communicate with their customers but, by 2020, it will
be a two-way conversation.
“We are already seeing how drivers are starting to expect
and demand video as part of the service they get from dealers.
“Within five years, the entire process of buying a new car,
from researching different models to agreeing a price and
a specification, will be done remotely. Motorists won’t
ever have to visit the showroom, except perhaps to pick
up the car they’ve ordered.”
CitNOW’s research paper found that, through the use of personalised
video, not only were motorists more likely to return to
the same dealership for future purchases, but transactions
were made quicker.
The vast majority of dealers interviewed by CitNOW (86%)
said that video had positively impacted on customer retention;
meanwhile, 88% of used car sales and 70% of new car sales
were completed within four weeks using video.
CitNOW counts 28 major car makers and 88 of the top 100
UK dealer groups among the businesses it works with. By
the end of 2016, it forecasts that its customer base will
be of over 5,000 dealers.
“It all sounds a bit daunting,” said Horsburgh, “but it’s
the way the whole industry is going. Consumers these days
expect this level of convenience, speed and quality of service.”
The original article, Car-buying process will be entirely via video within five years, first appeared on www.4x4i.com