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Virtual vs. Actual? What Does it Mean For You NOW...
The pandemic changed the course of the used market completely after more people showed an inclination towards having personal vehicles...
As things continue to change across the Marketplace, especially in the USED CAR WORLD I was just reading a column on what happened/what’s happening/what’s going to happen, as a result…
It’s something we all know, that THINGS HAVE CHANGED, but how are Dealers NOW moving past the old “status quo” and improving in the face of things like VIRTUAL DELIVERY?
Here’s a bit of the column from SPYNE online…
No doubt, the pandemic ravaged all kinds of businesses, maybe not as much so for those who were more agile in moving to more digital solutions and for those who leveraged digital payments to cater to their potential consumers.
Most all businesses including car dealerships, had a dip in their sales during the beginning of COVID-19, later car sales were roaring back like we have seldom witnessed before.
Having personal mobility before the pandemic was (and wasn’t) a thing.
The pandemic changed the course of the used market completely after more people showed an inclination towards having personal vehicles.
There are several reasons why the growth of the used car market accelerated in the post-pandemic era, considering:
Change in Consumer Perception & Demand
Once the Pandemic took hold, people were reluctant to travel in shared vehicles and public mobility…
In many cases it created a change in the perception of having a personal vehicle.
However, with job uncertainty widening and health becoming the top priority, people were less likely to make a major financial (longer-term) commitment to buying a new car. Instead, they seemed more inclined to purchase a well-maintained pre-owned car, at substantially lower prices.
The second-hand luxury car market is also gaining momentum.
According to Summit Garg, Co-Founder & MD, Luxury Ride, potential car buyers are able to get their hands on a well-maintained luxury at almost the same price as a new “less-than-luxury” midsized car.
In many cases looking at half the price of a new car, people were more open to buying a well-maintained used car.
Increased online presence
78% of prospective car buyers begin their car buying journey online.
They are more conditioned to researching (most anything) a car before visiting the dealership. Understanding how important online presence is for any business, car sellers have doubled down their efforts in improving online presence and elevating the consumer experience for better sales.
The bigger players in the independent car marketplace have created/are creating a more robust online presence, giving potential buyers the ability to research vehicles in the comfort of their own home. It also gives car sellers an edge versus the competition.
A Personalized User Experience
An efficient user experience can do wonders for any kind of business.
All across the marketplace car sellers like Cars24, Carvana, Spinny, Karvi, Carzoo, and many others have cracked the code on how visual presentation can improve the user experience of their prospective buyers visiting their online platforms.
They make it easier for these buyers to find the car they’re looking for. The level of experience they provide to potential car buyers during the research of the next used car is highly personalized. They use high-quality, studio-setting images and spin videos that are sleek and clean to improve customer experience and conversions.
Most of them, including Cars24, are using AI-powered computer vision tech to edit images in seconds, making sure they take their cars live faster without operational hassle.
Well organized dealerships & marketplaces
More organized players entering the used car market seemingly increased the trust as well as the demand for pre-owned cars considerably.
According to a recent study from McKinsey, prospective buyers are less inclined to visit a dealership and interact with salespeople.
This decline in preference is falling across all age groups and in all regions of the country.
As Covid concerns continued to spread, consumer foot traffic witnessed sharp drops, leaving little choice for dealers and potential buyers except to go digital.
This presented a new opportunity for players in the used car market to up their game if they wanted to win these new customers.
Conclusion
The pandemic for sure changed the way we BUY - most anything.
Our research begins online whether it is for our next gadget or a used car.
Businesses catering to the demand of online shoppers need to understand the way consumers are more inclined to buy from a platform that is well organized and provides a highly personalized user experience. If you understand how to address the problems of your potential customers seamlessly, they are more likely to trust your business over your competitors. And have the feeling that you’re making LIFE EASIER for them as your customer.
****Just a reminder that you can check out our latest edition of CETV for more on this topic in my interview with Lyamen Savvy of 321 Ignition and her presentation on Mobil-first online sites in Lesson TWO of CETV 2022.
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