Car showroom choices after coronavirus

Car showroom choices after coronavirus

We can all expect an upsurge in demand for new cars when dealers open their doors following the Coronavirus outbreak, in June. They are required to provide a safe shopping environment and as ever, some car dealers will do this better than others.

Too many car dealers are missing out on car sales opportunities to counter the digital threat. Anecdotally we know that dealer staff rarely know enough about their cars, they aren’t quick enough to respond to enquiries, their customers don’t like haggling and all too often their website availability isn’t as up to date as it should be.

So recent research from car buying customers to confirm a lacklustre car shopping experience can be no real surprise to female shoppers and the industry alike.

In fact millennials say they would rather clean their house or have root canal treatment than visit a car showroom! Being online users from birth it seems, they are now looking to digital websites to buy their cars.

This research has been collated by FOXY’s vehicle inspection service partner, DEKRA. It’s designed to remind car dealers that if they do a better job they’ll sell more cars which seems to be imperative in the wake of Corona and a massive dip in car sales.

Recent DEKRA Research

Recent DEKRA research confirms that

  • Over 50% of new car shoppers feel anxious or uncomfortable at dealerships.
  • 87% of customers dislike something about car shopping at dealerships.
  • 94% of new car shoppers conduct online research before buying and it’s reasonable to expect the dealer to be better informed than them about the product!
  • 70% of millennials see technical innovation and infotainment as “must haves” when purchasing a car.
  • Research shows that up to 50% of car sales go to the online dealer who responds first.
  • 4 times as many consumers would prefer to watch a video about a product than to read about it.
  • 32% of buyers post a review now on social media.
  • 67% look at online reviews before buying a car.
  • 75% of millennials (who grew up online) would rather communicate with a car dealer digitally than talk to a human being.
  • Over half of consumers would pay a premium to buy from a dealer that offers their preferred experience.
  • Only a third of buyers want to talk to a salesperson about a product.

A spokesman at DEKRA said, “It’s clear that dealers who know their product, respond quickly, succinctly and in a straightforward manner are far more likely to sell a car to the new tech savvy group of car buyers then by keeping to the traditional sales methods. Training is key to this as 40% of employees who receive poor training will leave that company within a year whereas dealers that provide thorough training and a fast response will guarantee sales success in the modern car showroom.”

Undoubtedly, if more car dealers were strategically active in selling garage services (to more than just those who drive their franchise brand for sure) they’d have a healthier sales funnel of loyal customers to sell new cars to, when the time is right.

For as time-strapped and digitally-inclined as many of us are, we need to use a garage at MOT, car servicing and mechanical repair times so this can be the ideal opportunity to show potential customers how friendly a dealership is – whilst growing a database of new car prospects.

Sadly the car sales and aftersales functions and teams are rarely as integrated as they should be. For example, whilst dealers will usually earn more from garage services, it’s sexy car sales that they’re more likely to spend their marketing money on.

Don’t get me started on the gender issues this all raises!

Steph Savill

NB: Women drivers who’d like to enjoy affinity car deals and FOXY Lady Approved dealer standards can join FOXY Lady Drivers Club – and recoup their low cost lifetime subscription time and time again.

NNB: Car dealers who’d like to show off superior and female friendly standards (to welcome the gender who influences some 80% of all car sales) can apply to be FOXY Lady Approved here.

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