Online car buying and digital dealerships


Buying a car may mean choosing without ever getting into the driver's seat.

The traditional car dealership, with its choice of different models and the opportunity to test drive before you buy, may soon be a thing of the past.

Audi showroom

Is that it? An Audi Showroom in Hong Kong Image: Cecilsphase

With dealers starting to display fewer physical vehicles and all the models accessible online, the digital dealership is becoming the answer to changing shopping habits, the industry's tight margins (less than 1% of the total vehicle price) and falling profits.

In an example highlighted by the Financial Times, Audi's flagship showroom in London's Piccadilly is a classic example, with only one car on display - a two-seater R8 Spyder sports - but a showroom where customers can choose from the complete range of models on touchpad-controlled TV screens which allow viewers to customise, accessorise and even repaint them.

The statistics say it all:

  • Predicted global online car sales will account for just under one in every five new car purchases by 2025.
  • A quarter of online car sales are likely to be in advanced economies such as the UK and the US by 2025
  • Around one third of British under-35 year-olds would buy a car online, while 80% have researched the car model they want to buy before they even set foot in a dealership, according to GfK Automotive Market research.

However, it's worth noting that the brand experience for car purchasers would definitely need to be a high quality virtual experience to adequately replace the traditional test drive.