Two More Signs Of The “E-Driven Evolution” Of Our Business
This week brings two news developments that suggest difficult times ahead for dealers who resist the car business’ fast-moving, e-driven evolution:
First, on the heels of going public, TrueCar says it’s testing a TrueTrade program that will offer consumers guaranteed trade-in values from participating dealers, according to an Automotive News story. In addition, the company indicates it plans to offer TrueLease and TrueLoan programs in the coming months.
Second, several outlets reported that the Atlanta-based Carvana, which urges consumers to “Buy The Car Without The Car Salesman,” plans to open a second retail outlet in Nashville. Carvana’s business model includes a start-to-finish online financing/purchasing processes, as well as free delivery of a vehicle to a buyer’s home for test drives.
Both of these developments could be viewed as an answer to what consumers have long been saying—we don’t like the traditional way of buying new and used vehicles.
It’ll be interesting to watch both ventures play out. In the meantime, I believe dealers would be wise to study the developments and look for ways they can adapt their new/used vehicle sales processes (both online and in the showroom) to meet consumer desires for convenience, efficiency and transparency.