Tuesday, January 07, 2014
One in four new cars will sell online
As many as one in four UK new-car sales could soon take place online. A report by consultancy Frost & Sullivan predicts that such transactions will increase eight-fold by 2025, with the steepest growth happening in the UK and the US.
The Financial Times highlights the trend in a report that also cites research suggesting that a third of under-35s would buy a car online now, while eight of 10 buyers have researched online the car they wish to buy before visiting any retailer.
The report sees the future of current dealerships as split between those chiefly associated with servicing and repairs and other ‘flagship’ digital stores, often located in prime shopping areas. Audi has one such new outlet (pictured) in central London, a year ago replacing a previous traditional set-up.
The company reports a 60% upswing in new vehicle sales measured over 10 months at the location, with a higher average transaction total than for other dealerships.
“Digital showrooms and online retailing is the big shift that is coming to the car industry, and it is coming fast,” says Sarwant Singh, a partner at Frost & Sullivan. “This is going to completely change the way people choose and buy their cars.”
DATED: 07.01.2014
FEED: ARN
