When Covid hit in 2020, the automotive industry was forced to adapt. Shutdowns across the globe created shortages and uncertainty which significantly affected the operation of dealerships. As we seem to be in the “post-covid” phase, it’s important for dealers to understand the shifts that the pandemic caused in the industry. In this article, we’re going to look at three car buying trends that have changed since the beginning of the pandemic.
Many dealerships still have their focus primarily on selling and buying gas-powered vehicles. While there certainly needs to be a huge focus on that, there also needs to be a concerted effort into selling and buying electric vehicles. Since covid started, it’s clear that more people are looking at buying an electric vehicle. According to a report by McKinsey & Company, between November 2020 and June 2021, interest in electric vehicles increased from 39% of car buyers to 48% of car buyers. The one caveat to this for dealerships is to consider where you’re located. While it’s great owning an electric vehicle in a big town or city due to the amount of charging stations, if you live way out in the boonies, owning an electric car may not be so convenient as there will be limited if any public charging stations.
When Covid first hit, many dealerships were forced to close temporarily and then limit their customers in the showroom. On top of this, many customers weren’t comfortable enough going to a dealership. This forced dealerships to quickly adapt and shift the car buying process to a completely online process. While multiple reports tell different stories, there is no doubt that online car buying is increasing. According to an Autotrader report, 2 out 3 car shoppers were most likely to buy a car completely online, but according to a Deloitte survey, they found only 29% of car shoppers would consider buying a vehicle completely online. That Deloitte survey also revealed that the two biggest reasons people want to buy in person is because they want to be able to physically see the vehicle and test drive the vehicle. Overall, we can see online car shopping is on the rise as in 2017, only 3% of customers were looking at online dealerships compared to today where over 20% of customers are looking at online dealerships.
It’s impossible to deny the convenience of at-home delivery and the ability to test drive a vehicle for 48 hours to make a decision on buying it or not. According to a survey done by Google, the at-home test drive was the most preferred service of car shoppers. This shouldn’t be hard to believe, and if you are questioning this, just take a step back and look at the bigger picture. Home deliveries and contactless interactions are being used in all industries from big box stores to groceries, and restaurants.
Knowing these three trends, you need to ensure you can adapt to the evolving trends. Perhaps you need to start putting more of a focus on electric vehicles. Seeing that online car buying is on the rise, it would be wise to ensure your website is set up to allow buyers to go through the entire process online. Lastly, if you’re not already equipped for delivery and at-home test drives, consider incorporating this at your dealership right away!
We are pleased to announce we are new members of the Canadian Lenders Association (CLA). By integrating cutting-edge online financing options, including real time credit data with seamless lender integrations, we ensure a smooth, secure, and efficient digital experience for all users.
Canadian Black Book, the leading provider of Canada’s used vehicle valuation data and residual value forecast solutions, today announced its integration with Autocorp.ai, a trailblazer in the FinTech sector focused on the automotive industry. This partnership promises to transform the car purchasing experience, making it smoother and more efficient for consumers and dealerships alike, with a strong emphasis on credit and financial services.
Honda is considering the establishment of an EV-battery production facility in Canada, as reported by Nikkei Asia. Speculations point toward Alliston, Ontario, where the automaker already manufactures its Civics and CR-Vs, as a likely location for the plant. However, details regarding the precise site, timeline, and rationale for this potential facility remain unconfirmed. Current reports indicate a prospective timeframe for the commencement of operations, tentatively set between 2027 and 2028.