THE ISSUE & SITUATION:
If you cannot go into the dealer showroom during Pandemic Lockdown, is Virtual Reality (VR) the next best thing to being there ?
And why can’t I buy a new car entirely online ?
You can already identify, build, search, find and price a new vehicle online.
You can see colors and Interiors.
You can hear the engine. You can watch a video to see how it drives and handles.
You can process all of the paperwork online, make your payment and they will deliver it to your doorstep ( see Carvana, but only for used cars; they are not a protected species like new car dealers ).
SIGNIFICANCE OR WHY IMPORTANT:
So why do we need to go to a new car dealership? Probably to smell that new car smell.
but mostly it is to honor the hundred-year-old dealership franchise model, which is enforced by state laws.
Some including the authorI could be okay with never setting foot in a dealer showroom again.
What the Consumer Wants:
The Dealers dodged a bullet in the early 2000s with the dot-com era.
A segment of people were ready to buy their car from a web page at that time.
Surveys always show Buyers don’t like car salespeople but have no alternative.
Plus the younger buying segment has grown up with gaming and other virtual things.
And the technology already exists.( see Vroom ) Perhaps The Crisis will force the change ?
SOLUTION(s) What to Do ?
- Auto dealers should take VR seriously as an alternative business model. ( and I hope the car sales people tried to do Zoom sales calls to see how primitive remote selling works ).
- Take a look at what Vroom is doing. How could you grow your business with it ?
Employ some Bonus Thinking:
Just for fun, what if we took a blank sheet of paper and design a new dealership business model?
Apply all the virtual technologies that have come to the forefront during the Pandemic Lockdown?
Stay tuned to see more from Mike Pochan’s proposed solutions in future postings
SOURCES: FULL DISCLOSURE: The contributing editor, Mike Pochan, provided software to the auto finance industry so he knows the inner workings of the numbers and paperwork
EDITORIAL CONTRIBUTOR: Mike Pochan, Entrepreneur, Innovator, Carnegie Mellon Professor, and Leaders in Transportation Management. Contact Mike at email@example.com