COVID-19: Are auto buyers turning to new technologies?

There is some good news for dealers! The majority (52%) of potential Canadian auto buyers who planned to buy a new car prior to COVID-19 still intend to do so within their original timeline. 

Potential new buyers have entered the market as their situation has changed, while others have decided to purchase earlier than before COVID-19. Some are avoiding public transport to get to work, or going to the grocery store less often … there are still many reasons to buy a vehicle during the pandemic. What is certain is that people now have much more time to research vehicles online.

Today, almost three quarters of Canadian prospects are ready to buy a vehicle online without going to a dealership. This number has climbed significantly over the past few weeks! What used to be a service appreciated by connected consumers has now become indispensable. Thanks to an online sales tool like SHOWROOM-V2, customers can fully configure their new vehicle, choose their preferred payment methods and complete all the steps that would normally occur at the dealership. 

COVID-19 has pushed people out of their habits to adopt a new way to buy cars. The majority of the population is no longer afraid to buy a car online.

As a result of social distancing, Canadians are exploring more alternatives to buying cars at dealerships. Here are the top three methods that buyers have adopted.

• #1: An at-home test drive is the solution most often requested by car buyers right now. Test drives remain difficult to implement in the context of COVID-19. However, this will certainly be introduced in the future, given its growing popularity.

• #2: Online shopping tools on dealership websites is the second most used alternative. Much easier to set up than test drives, and potentially lucrative enough to keep your dealership up and running.

• #3: Digital showrooms were undoubtedly already very popular with buyers. They are of even more interest now that buyers can’t view the vehicles at dealerships. It has never been more crucial to offer customers a portfolio of premium quality photos, detailing all aspects of their future vehicle and even 360° virtual tours. Your online buyers need to be supported in their decision-making.

After a significant decrease in the number of Google searches in the entire automotive category in mid-March, we are now seeing a significant upturn in all searches in this category. At the moment, the queries only show a decrease of 8.2% compared to last year, which is good news, compared to a decrease of more than 20%, just a few weeks ago. It seems that very few consumers have postponed their purchases. In fact, they are taking advantage of confinement to get ready to buy their new car.

Consumers understand that new technologies are the best options while social distancing measures are in place. Whether or not they are used to buying online, few had considered buying a vehicle online before the COVID-19 crisis, yet today it no longer seems to be an obstacle.