Buying online is familiar to most people these days, and with internet connectivity having spread to all corners of the world, shopping can be done from home for products that may be on another continent. It is even possible to buy a house online which you can build on your own piece of land.
For the auto industry, online sales have been a more recent phenomenon though it was inevitable. Since the 2000s, car companies have established their presence in the online world but used it largely to provide information and interact with customers. The selling part was still done largely in the showroom where customers could touch the cars and take them for test-drives.
There’s still the test-drive...
The test-drive part is still an important part of the decision-making process for many, so it is still necessary. Virtual test-drives could be provided but are unlikely to be appreciated as they will be like videogames. There’s nothing like actually experiencing how a car performs from behind a real steering wheel, and feel the power from the engine or electric motor.
Many of the processes of buying a car can now be done online and companies usually invite customers to place their deposits for bookings online. How far the process can be done online differs in different markets. In Malaysia, for example, there are still documents to be signed which require a physical presence and interaction with the salesman.
Peugeot/Citroen early online pioneers
The PSA Group was probably the first to start selling cars online, starting with an unpublicised pilot project in Brazil in 2016 with Citroen (it goes 200 orders). The following year, Peugeot introduced online sales in Europe, starting with the UK and 8 other markets. At that time, the company saw that 9 out of 10 potential customers had begun their interest in buying a car on the internet so it seemed like a good time to start such an approach for sales.
Furthermore, with more and more information on the Net – from the companies as well as motoring websites which tested products – consumers were able to easily do research without having to go from showroom to showroom. It was therefore the new ‘showroom’ for car brands where they could make first contact and draw customers towards their products.
Full process of sale
Today, buying cars online is available for those who want it and while companies have their own channels, Hyundai will also be offering the full process with Amazon, the company that can be credited with starting the online sales trend 29 years ago (making founder Jeff Bezos a very, very rich man).
A broad strategic partnership between the two companies was announced this week which will see Hyundai using Amazon for full end-to-end transactions for sales in the US market. In 2024, dealers will, for the first time, be able to sell vehicles on Amazon’s US store, and Hyundai will be the first brand available for customers to purchase.
Just like buying any product online
Like buying a computer online and having it delivered, the same sort of process will be offered with Hyundai’s vehicles. Customers will be able to specify if they want the vehicle delivered to their home or they will pick it up at the dealership.
Amazon’s store will show stocks of various models available in various areas so customers will know if they can readily buy one. The entire process from booking to financing options can all be done online and the only thing that remains is taking possession of the new vehicle when it arrives at the dealership.