The world in which we live has altered dramatically thanks to the advent of game-changing companies such as Airbnb, Uber and Spotify.<\/p>\n
Today, a similar scenario is set to unfold within the automotive industry; in fact experts predict that, by 2023, the industry as we know it will have dramatically changed, says AutoTrader CEO, George Mienie.<\/p>\n
Here are some likely developments to rock the motoring marketplace that will have you buying cars very differently in just five year\u2019s time.<\/p>\n
“In five years from now, price negotiation could very well be a thing of the past, as dealers adopt a no-negotiation policy,” said Mienie.<\/p>\n
Neil Smith from Imperial Cars, a United Kingdom (UK) based dealership said that they adopted a no-negotiation as a way to build trust with their customers. “Many consumers are turned-off by the haggle and don’t enjoy the process\u201d.<\/p>\n
He said the price that a customer sees on their website is the price that they will pay.<\/p>\n
Would this approach work in South Africa?<\/strong><\/p>\n AutoTrader\u2019s recent poll results show that just over 50% of respondents said they found price negotiation intimidating and the remaining said they found it a joy.<\/p>\n “The results were surprising for us, as we initially thought price negotiation was a pleasurable part of our culture,” Mienie said.<\/p>\n “It appears our European counterparts are capitalising on a growing global consumer trend,” he said.<\/p>\n Transparency in pricing is inevitable.<\/p>\n “Consumers know that dealerships make profit and they are accepting of this. But, they want to know how a dealership arrived at that retail price. They will demand transparency \u2013 and dealerships will have no choice but to deliver,” Mienie predicted.<\/p>\n Dealership walk-ins are decreasing. In 2015, South African consumers visited three to four dealerships prior to purchasing a car. Now in 2018, they only visit one or two. \u201cThis is because the tech-savvy consumer comparison shops online. He or she is very knowledgeable and, once on the showroom floor, is ready to buy,” Mienie said.<\/p>\n Dealerships will utilize the high footfall shopping centres enjoy, to improve on their dwindling walk-in figures.<\/p>\n This trend has already caught on abroad where Subaru has opened a dealership in a shopping centre in Melbourne, Australia; Hyundai has opened a dealership in a shopping centre in Kent in the United Kingdom; and Tesla has a dealership at the Westfield Shopping Centre in London.<\/p>\n “More recently Mercedes-Benz experimented with pop-up stores in shopping centres in the American cities of Atlanta and Miami. Now it will open a store in a mall in Chicago,” Mienie said.<\/p>\n A range of online tools and metrics will be used by the digi-savvy dealer to support their sales team and to help you to buy the car of your dreams. Already, automotive live chat software is starting to play a role; capable of answering product-related questions and booking a test drive.<\/p>\n It\u2019s clear, the automotive industry is changing at an accelerating rate, and the car buying customer is in for a real treat, Mienie said.<\/p>\n
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