Online Used Car Sales Surge: How Everyone Can Benefit

Trent Broberg is an auto industry expert and the CEO of ACERTUS.

Online shopping for used vehicles took off at the height of the Covid-19 pandemic, with dealers quickly establishing online platforms to meet consumer demand. Increasingly, consumers are completing some or all of the vehicle transactions online. Today, 39% of car dealers help car buyers complete every step of the purchasing process online, Cox Automotive reports. Compare this to 2019, when roughly 1 in 10 saw the online process through to the final contract, and even fewer through delivery. As more transactions are finished digitally rather than at the dealer’s desk, more automotive retailers are prioritizing optimal online experiences that meet consumers’ preferences as an additional way to meet the customer where they are.

The consumer used-car-buying journey’s online shift allows those in the market for used cars to seek the best price at highly reviewed dealerships. The digital marketplace widens a dealer’s pool of potential buyers and possible new long-term customers. Dealers can benefit by looking to expand their online presence well beyond their local markets.

Setting Up A Digital Storefront

Digitizing the shopping experience may feel daunting, but dealers can simplify the process by focusing efforts on building a user-friendly platform, whether that be developing your own proprietary platform or partnering with a well-established, trusted automotive e-commerce solution provider. Features like high-quality images of the vehicle, 360°-vehicle tours, transparent pricing and live chat create a seamless online shopping experience, bridging the gap left by the lack of face-to-face interaction and fostering trust with customers. Additionally, digital tools such as virtual showrooms, online trade-in estimators and e-signature capabilities empower customers to complete the car-buying process remotely, extending the traditional brick-and-mortar dealerships to a 24-7 marketplace.

Dealers who address these challenges proactively and recognize the opportunities in these shifts in consumer behaviors and expectations are developing and executing shifts of their own—toward creating future revenue streams. While most dealers have moved toward enhancing the online buying experience, many still are struggling to get their logistics into gear.

The Potholes In The Road—And How To Avoid Them

The most frequent challenges of doing business across state lines remain the logistical aspects of product delivery, home delivery, returns and the destination’s title and registration. Finding new ways to move inventory to fulfill online orders becomes a very high priority. Successful fulfillment requires efficient transport and a firm understanding of the complexity of local tax, title and registration to ensure compliance with state regulations.

To effectively manage and coordinate the transportation of vehicles from dealers to customers is to deliver the product itself and deliver on the final stage of a positive digital experience that ultimately enhances dealers’ online reputations. If done wrong, the online experience as a whole suffers. A single subpar experience can lead a dissatisfied buyer to post a negative review. Such a public blemish could impact hundreds of future online experiences from their start.

Selling online and moving used-car inventory to customers across the U.S. has never been easier with today’s advanced logistic solutions. Transport and logistics partners help quickly and easily move inventory to locations outside dealers’ local markets.

Selecting the right logistics companies can add horsepower to the online experience and additional revenue to the dealership’s front end by offering shipping, title and registration services as an option in the buying experience. A comprehensive provider can offer solutions including transporting, storing and reconditioning sold vehicles and can coordinate title and registration for customers while their vehicles are en route. Reducing manual coordination for dealers goes hand in hand with boosting the buying experience; the less paperwork a customer has to do, the better for all involved.

The road is narrow on this customer journey, and the guardrails are unforgiving, especially on a final leg that may cross several states. Automotive logistics-as-a-service platforms offer faster speed to market with reduced risks. Powerful analytics tracking dealers’ spend, claims and inventory both bring to light and reduce inefficiencies in the transport system, reducing costs as well. These carrier networks are digitally enabled for real-time tracking and electronic proof of delivery, the entire process is covered by comprehensive insurance.

Automotive logistics is the last area of a dealership to be monetized. If done right, and with the right partner, logistics can help dealerships expand their reach and selling footprint. In today's rapidly evolving automotive industry, the role of technology in transforming car dealerships into agile and efficient profit centers cannot be overstated. Technological advancements are empowering dealers to enhance operational efficiency, elevate customer experience and drive sustained profitability.

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