Internet for automotive distribution

The Internet is at the heart of the French people’s daily life. Booking a table at a restaurant via the internet, ordering a cab via the net, studying online, is part of everyday life and does not surprise anyone anymore. Today, even the automotive distribution is taking place on the web. In a few lines the detail.

From used cars to new cars

Online vehicle sales are not new. However, the practice was limited to the sale of older models. Numerous companies proposed from then on the web the sale of second-hand cars. But for some time, especially in 2016, manufacturers have also been moving into this new distribution channel. In addition, they offer generous discounts of up to 25-28%. Once the purchase was made online, the consumer had to choose a physical point of sale, i.e. a group dealership, in order to pick up the vehicle. The practice is successful and the attempt to sell cars online is renewed. Moreover, more and more manufacturers want to join this adventure of online car distribution. All you have to do is go to an automotive website, make contact with a representative of the online seller and negotiate until the sale is completed.

Realization of the sale

To buy a new or used vehicle, 90% of the French population undertake an initial prospecting process online before deciding which manufacturer to turn to, which model, which option, etc. Given this high proportion, manufacturers see in online distribution, a new effective means of sales and thus invest a large sum in the automotive website. The distribution method just fits in with a practice already put in place by car consumers themselves. Without moving in this direction, a manufacturer risks losing out in the face of growing and increasingly tough competition between manufacturers. On the administrative side, a manufacturer who relies on online vehicle sales is likely to reduce operating costs. Paper management is also simpler. But there are still many questions. Are physical points of sale disappearing? How is the transaction done? Are tests still possible? Is it possible to deliver the vehicle? In any case, it is impossible to envisage the disappearance of physical points of sale in the near future. Indeed, even though consumers are increasingly buying online, they prefer to go to a dealership to pick up their vehicles. The practice of some manufacturers even proposes a two-part step, including the payment of a deposit to confirm its choice on a particular model and pay the rest at its sight and after its trial. The sale on the automotive website is generally cheaper thanks to the pricing policy applied.

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