Technology has radically altered almost every sector of retail, and motor traders are no exception.
The internet has allowed some car brands to move their marketing, specification, test-drive booking, finance arrangements, and even purchasing online, and we are already seeing the first forays into virtual reality (VR) and artificial intelligence (AI) taking their place in the dealer’s toolkit. But what changes do these developments herald in the franchised dealer’s business model? What will dealerships of the future look like and how will they be shaped by technology?
Here we look at four key areas where dealers are likely to evolve most – new cars, used cars, aftersales and architecture/hardware.
New cars
While there are new cars being sold through manufacturer online platforms such as Hyundai, Peugeot and Volvo, or in digital-only transaction and subscription models by the likes of Polestar and LYNK & Co, the transactions are still something of a rarity. But few people see the trend towards direct online sales declining.
