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

25 hours later &the brilliant #TeamAutoTrader reached Croatia for @TrustFordUK #BreakoutForBen. Congratulations guys & massive well done to everyone involved in this great cause. If you'd like to donate & help raise funds for @BenSupport4Auto just visit: https://t.co/bOlmSpzI1N https://t.co/1SV5VQbUJy
It's been a long night for #TeamAutoTrader on the @TrustFordUK #BreakoutForBen as they try to get as far away as possible for @BenSupport4Auto. But where could they be...and where are they heading 🤔 Keep racking up those miles guys 🚙 https://t.co/p1RmNsY5Uj
And they're off! Border one done for #TeamAutoTrader in this year's @TrustFordUK #BreakoutForBen. Guesses welcome for where they're aiming for...🚗 https://t.co/PWU4eLTaCW
Good luck to everyone taking part in the @TrustFordUK #BreakoutForBen event tonight, especially the brilliant (& brave!) Auto Trader team. We can't wait to see how far everyone can get in 25 hours & how much is raised for the amazing @BenSupport4Auto https://t.co/T67MO99SYN
The latest findings from the Fastest Selling Index reveal that used Euro 6 diesels are bucking the trend seen in the new car market, making up half of the top 10 fastest turners. @SEATUK takes the top spot for fastest selling diesel & petrol. Read more https://t.co/wukyRJIc4y https://t.co/kZIosLwEBQ
With new car sales falling & Sept registrations under performing how do you maximise every opportunity to reach car buyers, generate incremental leads & win in your area of influence?Join our free #ATInsight webinar at 11am Friday to find out.Register here https://t.co/JV1hbWRBFK https://t.co/MTeDLB1fu3
T-minus 10 minutes until our free Market Report webinar, during which we'll be delving into the future of car retailing and the impact (and opportunities) changing consumer attitudes towards online purchase is and will have on the industry. Tune in here https://t.co/11QovV64xq https://t.co/tDQQ1TYR16
"It's essential that the government makes a commitment to outline a clear and beneficial deal in order to ensure our industry has what it needs to secure its future success.” @RMI_NFDA Chairman Peter Johnson at tonight's RMI Annual Dinner https://t.co/mkD6wEi5be
To mark #WorldMentalHealthDay2019 today, @BenSupport4Auto has launched its first ever whitepaper on the topic - one of the biggest issues affecting the industry's workforce & could cost employers up to £1.2bn a year. Download your free copy here: https://t.co/gR9ahHXt8Z https://t.co/5VAoNDLYCt
Well done and massive congratulations to everyone at @BCA_Auctions for winning Auction House of the Year at the @MotorTraderMag #MTIndAwards 2019 🥂🥂🥂 https://t.co/3lk60FsHRw

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