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Automobile

The Amazonification Of Buying A New Car

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Sharmistha Suman
Updated On

Automakers are increasingly moving towards online sales of electric vehicles (EVs), as they see this as a path to cut costs and form deeper relationships with customers. Car companies are pouring money into bringing vehicle sales online, especially for EVs.

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This trend has been accelerated by the pandemic, which has led to increased e-commerce sales across all sectors, including the auto industry.

Cowen's Report

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According to a report from Cowen, US auto e-commerce sales grew by 25% in 2021, the largest jump in the past decade.

While automakers are transforming their sales to include more online elements, there is still some resistance to this idea from new car dealers, who are concerned about how they will fit into a digitized and electrified future.

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Some fear they will be relegated to operating sales processing and delivery facilities, which also do car repair. The pandemic's shift to e-commerce has prompted a significant number of buyers to complete at least half of the car-buying steps online.

What was the effect?

This has been welcomed by many buyers who see it as a way to avoid the upselling, haggling, and confusing financing provisions that they associate with buying a car. General Motors (GM) is leading the way in online sales, having seen a 50% spike in traffic to its website in spring 2020.

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Since then, the carmaker has made it possible for customers to shop for, purchase, and finance their vehicles wholly online, and even take delivery of a car at home, although the transaction would always involve a dealer.

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Honda has said that its entire electric Acura line will be sold online in the US, while Ford is driving towards a more streamlined, internet-based buying experience, with the CEO envisioning a future in which factories do not send out vehicles to wait around on lots anymore.

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