Car dealers ramp up home-delivery options
CARY, N.C. -
Less than half of car dealers were providing home-delivery of vehicle purchases when the COVID-19 pandemic began in March, according to CARS Dealer Community data from the group that includes Cars.com, DealerRater and Dealer Inspire.
However, 66% of dealers were offering such services by August, the data shows. About a fifth of recent buyers have used that option, according to DealerRater data.
And it’s an option that many consumers say they would want.
In fact, 61% of respondents in DealerRater’s mid-September survey of recent car buyers said they would like to have purchase be delivered from the local dealership to their home, if that option was available.
“Approximately 20% of recent car buyers used home delivery from their local dealership, while 61% of recent buyers state they would use this service from their local dealership if it were offered, showing sustained interest in this growing trend,” Cars.com said in a news release, citing the DealerRater data.
Just like week, CarMax said that its omni-channel experience, which lets consumers buy used cars online, in-store or a blend of both, is now nationwide.
The largest retailer of used cars in the U.S. said Thursday it has finished rolling out its omni-channel capabilities, a process it started in late 2018 with the launch of omni-channel in Atlanta.
With this omni-channel program, CarMax shoppers can utilize the company’s e-commerce to browse, save and transfer vehicles, while also lining up pre-approval and getting an online appraisal of their trade-in.
The transaction can be completed at a CarMax store or online, with options for home delivery (for most shoppers) or contactless curbside pickup at a store (which is available across the U.S.)
Going back to the CARS data, while the pandemic certainly has changed how consumers are taking delivery of their car purchases, the pandemic is what’s driving many consumers to buy a car in the first place.
The CARS Gen Pop In-Market Car Shoppers survey in mid-August revealed that 57% of consumers who bought a car in the prior six months said they did so because of the pandemic.
But they’re doing it online, instead.
Cars.com internal site analysis from last week indicated that dealerships are seeing a 15% drop in walk-in traffic. Meantime, data from the company shows that 57% of recent buyers completed most of the purchase online with a local dealership.
“During the start of the pandemic, and certainly far beyond, consumers have turned to personal car ownership as their preferred and safe mode of transportation," Cars.com chief executive officer Alex Vetter said in a news release.
“While the technology and digital retailing tools are not new to the industry or CARS, there is a noticeable increased usage driven by shopper demand and dealers are rapidly shifting their strategies to meet this new consumer expectation,” Vetter said.
In a similar analysis, Cox Automotive found that 47% of consumers who made a vehicle purchase since mid-March completed more of that process online than they did on prior vehicle purchases.
And 60% of six-month purchase intenders who have bought a vehicle before said they would like to do more of that process online the next time, according to the report on dealer and consumer sentiment that Cox released last week.
On the service side of the equation, Cox Automotive said among those who have had their car serviced during the pandemic, 19% took advantage of pick-up and delivery options. And satisfaction with such services appears to have climbed recently, going from 85% on Aug. 7-8 to 95% Sept. 18-19, the Cox data shows.
Among franchised dealers, 59% are giving consumers the vehicle pick-up and delivery option for service appointments, with 37% of independents offering this option, according to Cox Automotive.