Digital sales to dominate by 2020

Social media, internet based communication and virtual showrooms could become preferred methods of new-car purchasing in the not too distant future.

A recent survey conducted by the National Automotive Industry Survey showed that 65 per cent of dealers reported web-based sales leads accounted for approximately 30 per cent of all lead traffic.

A further 32 per cent said that they believe internet-based sales leads will generate more than 50 per cent of all showroom traffic by the year 2020.

"Given the predicted growth in online sales, operators in the automotive industry will need to be prepared to embrace multi-channel online communications in order to drive sales, similar to what other retail sectors are already doing" said survey spokesman, Brett Fowler.

Dealers who have embraced the move to engage customers online have reported an increase in virtual showroom traffic as high as 79 per cent. This figure almost mirrors projections by US firm Polk Data that 76 per cent of potential new-car buyers jump online to source information to support their buying decision.

But despite the shift to an online realm, there is still a place for the humble showroom. Buyers are using the internet to validate their decision, but still prefer the chance to see, touch and test drive a potential purchase, considering the experience a valuable part of the equation.

"Customers are not only using the internet and the automotive retailer's website to research the vehicle to be purchased, but they are also using it to review the retailer's facilities and services on offer, such as finance, servicing and parts," Fowler adds.

"Potential customers are not just buying a motor vehicle but the entire product experience. Given that customers have access to substantial information prior to visiting an automotive retailer, negotiations with a sales representative are likely to be more limited than ever before."

As motoring.com.au has previously reported, Subaru has utilised the internet as the sole outlet for selling its eagerly awaited BRZ. Mercedes-Benz has also jumped on the online sales bandwagon allowing customers in Poland and Germany to purchase products from the comfort of their favourite armchair. Locally, Mercedes-Benz sells its smart range online too.

The report also suggested that consumers appreciate the convenience of booking a vehicle service from an internet enabled device and said dealers will be able to use the internet as a 'more effective social media and marketing tool' within the next six to seven years.

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