Rise of online car sales: How to adapt to the online market

The car sales industry has experienced a monumental shift in recent years, moving away from the traditional, in-person dealership experience to a new era defined by online car sales. With platforms like Carvana, Vroom, and Shift, consumers now have the convenience of buying vehicles entirely online, sparking a transformation in how people view the car-buying process. But what led to this shift, and what role do automation tools play in supporting both online platforms and traditional dealerships? This article explores the evolution of car sales, the impact of online platforms, and how tools like MeasureOne’s automated auto insurance updating and verification solutions can empower both dealerships and digital car sales platforms to stay competitive.

The history of car sales and early dealerships

In the early days, car sales revolved around physical dealerships. Dealerships served as hubs where consumers could browse inventory, experience test drives, negotiate prices, and receive financing options in person. This approach allowed customers to interact directly with salespeople, experience the vehicle up close, and ultimately make a purchasing decision with confidence. While effective, this model was labor-intensive and required significant investments in real estate, inventory management, and staffing.

However, as technology began to evolve, dealerships gradually started listing inventory online and providing digital support to enhance their traditional services.

The rise of online car sales

The emergence of e-commerce and an increased desire for convenience set the stage for the rise of online car sales. Consumers began seeking ways to streamline the car-buying process, and with improvements in digital technology, the auto industry was quick to respond.

Market drivers for online car sales

Consumer demand for convenience, the rapid growth of e-commerce, and the need for contactless services drove the rise in online car sales. This demand laid the foundation for platforms like Carvana, Vroom, and Shift to enter the market, offering a seamless and customer-centric experience.

Carvana and other online-only platforms

Online car sales platforms have quickly gained traction. Let’s look at some of the key players that helped redefine the industry:

• Carvana: Known for its iconic “car vending machines,” Carvana allows users to purchase cars entirely online, with the option to have the vehicle delivered or to pick it up from one of their vending machines. Carvana’s success is attributed to a transparent purchasing process, minimal time commitment, and the ability to complete a purchase from home.
• Vroom and Shift: These platforms also offer fully online car purchasing, with unique selling points like at-home test drives and competitive financing options, providing customers with flexibility and transparency.
  
  

Benefits to consumers

• Convenience: Shop anytime, anywhere, with options for home delivery and pickup.
• Transparency: Access to vehicle history, condition reports, and a streamlined purchasing process.
• Financing and Trade-in Options: Instant financing pre-approvals and trade-in offers make the process even simpler.
  
  

Benefits to the platform or dealership

• Scalability: Without the need for physical showrooms, these platforms can serve a larger customer base.
• Cost efficiency: Reduced overhead on real estate and staff costs.
• Data insights: Enhanced data tracking helps platforms better understand customer preferences and buying trends.
  
  

How traditional dealerships are adapting to the online market

In response to these digital platforms, traditional dealerships have also started embracing online tools to remain competitive. Many have built comprehensive websites, allowing customers to browse inventory, apply for financing, and even complete the purchase process online.

Benefits of integrating online tools for dealerships

• Broader reach: Digital tools allow dealerships to reach more potential buyers beyond their local area.
• Reduced operational costs: Online tools reduce the dependency on in-person staff for every transaction.
• Enhanced customer experience: Customers enjoy the convenience of exploring and purchasing at their own pace, whether online or in-store.

The role of automation in enhancing online car sales

Automation is now a key driver in improving efficiency and enhancing the consumer experience across both online and traditional car sales channels.

Examples of automation tools

• Leasing vs buying calculators: These calculators allow potential customers to compare monthly payments, upfront costs, and total ownership expenses for leasing versus buying a vehicle and weed out more unserious buyers.
• Automated access to car buyer data for verifications: Certain online tools, like from MeasureOne, can instantly verify a buyer’s employment, income, insurance status and even add a car and lienholder to the buyer’s existing policy, expediting the transaction process.
• Instant financing approval: AI-powered financing solutions offer instant approval for financing applications, removing the need for lengthy waits and paperwork.
• Predictive analytics: Enhanced data analytics allow dealerships to better anticipate consumer needs, improving the overall buying experience.
• Virtual showrooms: Using AR/VR, customers will be able to experience vehicles as if they’re in the showroom from the comfort of their homes.

By incorporating these automation tools, online platforms and dealerships can streamline their operations, reduce overhead, and provide a more enjoyable customer experience.

MeasureOne’s low-cost, heavy-lifting automation

As automation becomes essential in the car-buying experience, MeasureOne offers innovative solutions that address the specific needs of car sales platforms and dealerships. Take advantage of:

• Automated VOIE: Automating income and employment verification with MeasureOne allows businesses to simplify the loan origination process and streamline the transaction process to increase conversions.
• Automated auto insurance updating: By integrating MeasureOne’s auto insurance updating feature, dealerships and online sellers can keep track of customers’ insurance policies effortlessly, ensuring compliance and reducing the risk of uninsured vehicles.
• Auto insurance verification: MeasureOne’s automated verification tool allows platforms to instantly confirm a customer’s insurance status, which reduces friction and speeds up the buying process.
  
  

Embrace the benefits for dealerships and online platforms:

• Reduced manual work at a low cost: Automated verification and updating eliminate time-consuming manual tasks for dealership staff.
• Faster transaction times: With instant VOIE and insurance verification or policy updating, transactions are completed more quickly, enhancing customer satisfaction.
• Nearly instant integration: Integrate effortlessly in your current workflow and ensure a user-friendly interface that minimizes disruptions and enhances the overall dealership process.

Ready to see how MeasureOne can streamline your operations? Sign up for 14 days free or get a demo today!