Press release

Market Report Consumer Press Release

WE’LL BE BUYING CARS LIKE WE ORDER OUR GROCERIES WITHIN A DECADE

Car retailers will adopt a grocery retail shopping model over the next few years, with Brits researching and buying their cars almost entirely online.

That’s according to Auto Trader, the UK’s largest automotive marketplace for new and used cars. Within a decade, motorists will be able to buy a car as easily as doing their weekly food shop, ordering with just a few clicks of a button.

Like Waitrose, Morrisons and Marks & Spencer, dealerships will still operate physical locations, but they will no longer be used primarily as showrooms or to complete the sales process. Instead, retailers will adopt an Ocado-style retail model, giving shoppers multiple ways to buy their car.

Auto Trader spoke to 2,000 UK motorists about their car buying habits for its latest Market Report, The Future of Car Retailing, published today.

45% of car buyers say that if they were buying a car on finance, they would be happy to do the whole thing online. This rises to nearly two-thirds (64%) of Millennials and Gen Zs - 18 to 34-year olds.

In the past, car buyers typically visited five retailers; these days that has reduced to two, but Auto Trader thinks the direction of travel is clear and in the future many cars will be bought without any visits at all[1].

“The car buying process is frustrating and confusing,” said Nathan Coe, CEO designate of Auto Trader. “There are as many as 28 tasks that buyers need to complete before they get the keys to their new car. A lot of people stop part way through the process while others end up reaching a point of fatigue and buy cars that aren’t right for them.”

In fact, Auto Trader’s research reveals an astonishing 85% of motorists don’t think the car they purchased was their perfect car. The ‘smoke and mirrors’ around pricing confuses buyers; 75% think it’s difficult to work out the final price according to the research conducted for the Report.

“Buying a car may never be the quickest process,” said Nathan Coe, “but technology can improve the process enormously, making it simpler, more intuitive and more transparent.”

A small number of retailers have grasped the digital nettle, not just in the way they market and sell cars but in every aspect of their business including buying and pricing vehicles, and the end-to-end transaction. However, most retailers currently only offer the initial vehicle selection online.

“Dealerships certainly won’t disappear, but they will evolve. Some will become brand experience destinations which give customers an interactive adventure. Others will be specialist logistics and service centres, or high street ‘stores’ where car buyers can ask questions or touch and feel the car they’re interested in.

“Car buying in the future should be more enjoyable, as it will be faster, more transparent and give buyers the choice to shop the way they want - just like when they buy anything else.”

Online sales of cars are expected to pass one million next year, and they will grow to six million globally by 2025 according to a recent Report from Frost and Sullivan. In 2018, the Report said 618,000 cars were sold online, nearly double the number sold digitally in 2017[2].

Read the full Auto Trader Future of Car Retailing Market Report here.

[1] Auto Trader Research September 2019

[2] Frost & Sullivan Report Global Vehicle OEMs’ New Online Retail Strategies, Forecast to 2025

Missed this week's webinar with special guest @vertumotors? Well fear not - the whole webinar is now available on demand at https://t.co/A8vB2i49FU https://t.co/fpMbEkaRgB
Driving long distances? Well the best car for the job is the @UKVolkswagen Golf which scooped the Best Car for Long Distances award at the Auto Trader New Car Awards 2020. Find out what owners said at https://t.co/TAtdeRojpZ https://t.co/4Sj9ANaFK6
For those looking for a 7 seater you can do no better than the @VolvoCarUK #XC90. That's according to the 181,000 car owners who voted it the best 7 seater in this year's Auto Trader New Car Awards! https://t.co/M7t1X3Ic9S https://t.co/csJOtcU63N
Exactly one week ago @MrRoryReid & @ErinBakerMotors announced the winners of the Auto Trader New Car Awards – revealing the best #newcars in the UK according to over 181,000 car owners! You can check out the #award winners at https://t.co/FMgf5HByCM #ThrowbackThursday https://t.co/CLdSORmOV0
Exactly one week ago when @MrRoryReid & @ErinBakerMotors announced the winners of the Auto Trader New Car Awards – revealing the best #newcars in the UK according to over 181,000 car owners! You can check out the #award winners at https://t.co/FMgf5HByCM #ThrowbackThursday https://t.co/SAFHIczDhl
#Dacia have done it once again! The @daciauk Duster once again won the Best Value New Car at the Auto Trader New Car Awards 2020 - an award they also took home in 2019! https://t.co/vf00Z0g60W https://t.co/rn5qZX59Gh
We've seen a record number of #newcar and van #leads with new car retailers enjoying a massive 91% monthly increase in leads! Discover the latest new car data and how to drive even more leads as we see demand continue to spike now > https://t.co/8l2Mkx0ldn
Big thanks to everyone who joined today's webinar and of course to our guest speaker @vertumotors!
Reminder that next week we'll be launching #ATHighlyRated! Retailers who met the criteria will be receiving a pack next week to promote their achievements to consumers. https://t.co/UJgS71ytoP
Over to @stuart_trader who reveals the result of our earlier poll - a majority discounting prices much less or maintaining pre-#covid19 approach https://t.co/t8PfkUzrtU

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