Page 9 - On The Move - Volume 17, Issue 1

of vehicles owned per household has actually gone up for three years
in a row. Franchised dealers have worked tirelessly to

Fully autonomous vehicles will eventually penetrate the new-vehicle adapt to changing consumer preferences
market in a meaningful way. But it will probably take several decades,
not a few years. However, new-car buyers don’t have to wait to reap and to utilize new commerce tools.
the benefits of vehicle autonomy given that so many current-model
vehicles are loaded with advanced driver assistance systems (ADAS) It’s what’s gotten them ready to handle the
that are already reducing driver injuries and fatalities.
wave of delayed first-vehicle purchases, and
Multiple studies show that the combination of two or more of these
SAE Level 2 ADAS systems in today’s cars and trucks can provide it has them very well prepared to serve the
80% or more of the safety benefits of fully autonomous vehicles.
Yet even as we’ve come back to earth on robo-cars and ride-hailing needs and wants of generations to come.
services as the displacement of personal vehicle ownership, other
disruption scenarios are still swirling around, i.e., that consumers are Berlin said the research flips on its head “the total misnomer that the
clamoring to buy vehicles completely online; car buyers don’t trust young people want to do everything online.”
dealers or want them to be part of the shopping experience; and
younger generations are totally averse to physical dealerships and “They’re the ones that are looking at multiple brands, but also multiple
personal vehicle ownership in general. dealers,” said Berlin of Gen Z and young Millennial car buyers.
“Intuitively, I guess that makes sense. It’s their first major purchase.
Nothing could be further from the truth. They’re not loyal to any brand yet. So, for them it really is an active
shopping experience.”
The idea of e-commerce fully displacing physical dealerships
has been around as long as the Internet. And while it’s true that And they’re buying. Reams of data from the auto industry, the lending
consumers are spending more time researching online for vehicles to community and even the Federal Reserve show unequivocally that
purchase, it’s not as much as Millennial and Gen Z consumers simply delayed major purchases,
one might think. According including their first vehicles, longer than previous generations.
to the latest Cox Automotive Whether you measure it by cars, homes, moves or kids, they are
Car Buyer Journey Study, catching up fast.
in 2019 car buyers spent
an average of 14.5 hours Polls and studies are also showing another thing: Consumers, in
researching and shopping for particular young ones, don’t want an online-only shopping experience
a vehicle. 61% of this time was for major purchases; they want an omni-channel experience. This is
spent online, but 34% of the why Apple has retail stores that are always full of their latest products.
total time spent researching And it’s why other “online” brands like Casper, Warby Parker and
and shopping—not pur- Bonobos have complemented their online presence with nearly 500
chasing—was done at retail locations. It’s also why dealers will continue to offer the “clicks
dealerships. and bricks” experience that consumers truly want when buying a car
or truck.
This survey is supported by
other data. Other data from Urban Science and Harris backs this up. According
to their research, 85% of auto-buying consumers agree that a vehicle
A recent Harris Poll study commissioned is too big an investment to risk not seeing it before you buy, and 83%
by Urban Science shows that consumers would never buy a vehicle without test driving it first.
are visiting 2.5 dealerships before a
purchase, with 68% visiting more than And where do they want to see and test drive these vehicles? Auto
one. shows and dealerships. 75% of Harris Poll respondents said they
would not want to buy a vehicle without a dealership involved. That’s
“That’s one of the important findings of because 81% trust the information they receive from a franchised
this from a dealer standpoint,” Randy dealer, and 72% believe sales consultants have an expertise that
Berlin of Urban Science told Automotive is necessary to help people navigate the complex vehicle buying
News in August. “Right now, all the process.
data or so-called studies provided to
the industry indicate that customers Urban Science’s Berlin said dealers “have done a wonderful job in
are visiting only like 1.2 dealers. This changing that reputation from 1999 to now being a trusted source.”
research is saying quite the opposite.”
This is not a happy accident. Franchised dealers have worked
Even more interesting, according to Urban Science: Average tirelessly to adapt to changing consumer preferences and to utilize
dealership visits by generation is actually highest among Gen Z and new commerce tools. It’s what’s gotten them ready to handle the wave
young Millennials. The average Baby Boomer visited 2.2 dealerships, of delayed first-vehicle purchases, and it has them very well prepared
Gen X visited 2.3, and older Millennials visited 2.2. But Gen Z/ to serve the needs and wants of generations to come.
young Millennials visited 3.5.

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