Car dealerships in the Internet age
In today’s internet-savvy marketplace, all kinds of businesses are changing the way they do things to keep up with consumers, and car dealerships are no exception. More than just a celebrity appearance or some kind of free meal, because deals are finding ways to engage with the online community.
In recent weeks, Facebook users have been participating in what’s called the “Ice Bucket Challenge” as a way to raise funds and awareness for ALS, the disease also known as Lou Gehrig’s disease. The idea is for people to virtually nominate their friends to pour a bucket of ice water over their heads and donate to the ALS research fund. They post a video of the potentially embarrassing ice cream experiment on their social media pages, then name a list of friends who then have 24 hours to do the same. Recently, a dealership in Connecticut made headlines when staff got involved and the dealership promised to donate along with every share or video like received. In another similar case, a car dealer in Fargo, ND took up the challenge and then used their nominations to call competing car dealers. This is a prime example of how car dealers use the power of memes and other online phenomena to gain publicity.
In a recent article for a Canadian publication called The Globe and Mail, a reporter shed light on a change in customer habits; Because it’s so easy to shop online today, especially cars, most people know what they want before they even set foot on the lot. This means salespeople can’t rely on high-pressure sales tactics and outdated tricks of the trade to entice drivers into doing something because they’re not familiar with it, and may not even want to.
The Internet is helping to keep car dealerships honest in other ways. Consider the web company, CARFAX, which maintains a log of service, collisions, and other relevant data that is particularly important to the used car market. Knowing the history of a used vehicle has gone a long way in helping drivers avoid buying a lemon and make more informed investments.
Seasonal weather is another factor that can be influenced by Internet resources. TrueCar, a website dedicated to informing buyers about car prices and related matters, recently announced that August is the best month to buy a car in 2014. We’ve come a long way from a rough estimate of a car’s value. using only the Kelley Blue Book.
Despite all these changes, car sales continue to rise. For the third year in a row, the “throughput” of US car dealers (ie the average number of cars sold per store) has risen. It’s safe to say that while the presence of the internet has changed the way cars are bought and sold, it certainly doesn’t mean the end of car dealerships.