No Lies, No Leisure Suits: How Internet Changed Traditional Car Dealership

Traditional Car DealershipIf you’ve ever bought a car, then you’ll know that though the car salesman stereotype is an oversimplification of the car-buying process, the anxiety caused by having to haggle for a better price is very real. The times have changed the industry, however. shares that the internet transformed the car-buying game by the end of 90s — at least for the web-savvy.

Changing Times

Technology now allows prospective buyers to pick a car online and wait for a representative from the “Internet Sales” division to contact them with a price. Some car companies have even taken this process further by collecting a stock of second hand cars and informing clients about how much they could really expect to shell out for a brand new car.

Transparent Transactions, Better Customer Care

Phase one was about how auto manufacturers and conventional car dealers reacted to the innovations caused by the internet. One car company planned an experiment where 12 dealerships volunteered to provide “no-haggle” pricing on all their vehicles. They believed that fixed pricing would improve customer care and transaction transparency.

From the customer’s point of view, there are two huge benefits to fixed pricing. First, they know the amount they’re going to pay. Second, unscrupulous car salesmen can’t profit off their customers by raising the price. They believe that this would lead to a better buying experience for them.

But that was just phase one. What comes next will really shake things up.

What Comes Next?

Innovation is changing the way people purchase used cars. There is no longer a need to travel to a used car dealership. It’s possible to buy a car online and have it delivered to your preferred address. It’s also possible to return the car if you’re not satisfied with it. If this takes off, a bulk of the profit would shift from traditional car dealers to online car dealers.

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Competition is driving innovation in the car industry. It can bring you the car you desire at a good, fixed price and eliminate the stress of haggling. More efficient competition can help you sell your old car so you can buy your next car. It’s good news no matter how you choose to purchase.