COVID-19: Consumers ditch showrooms for online stores to buy cars

03/25/2020

Posted by: Chris Odogwu

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The COVID-19 pandemic is changing how people buy cars as consumers have moved away from visiting showrooms to online stores for their car purchases!

The Coronavirus (COVID-19) pandemic is changing the way of life across different spheres. As the battle for survival continues, people are adapting to new patterns of living that keep them out of harm’s way. The automotive industry is experiencing a paradigm shift in its buying process. Instead of the usual foot traffic car dealers receive in their showrooms, they are seeing more people visit their websites. This is a new territory for the industry which had very little online transactions before now.

car-dealership

Car showrooms are now empty without foot traffic

According to a recent study by J. D. Power, car dealership websites are experiencing a traffic surge as more people troop to place their orders and have their cars shipped to them without having physical contact with the showrooms. According to the research data, about 1,000 car dealers on Roadster recorded a 6% traffic increase.

>>> Riding an Uber this COVID-19 period? Stay safe! COVID-19 advisory: Riding an Uber or any other ride-hailing services safely

Speaking about the new development, Brian Benstock a New York car dealer stated that many dealers were taken unawares. Although car dealers have been doing online transactions, it is nothing compared to what they are experiencing now. Looking at the bright side, Benstock stated that this could be a turning point for the auto industry.

A 2015 survey of 540 car dealers showed that only 15% of car-buying transactions were done online. The number is projected to double by 2025. Benstock, who revealed that he started doing online transactions in 2015, commended companies like TESLA for harnessing online transactions even when it was not popular in the industry.

Despite the affinity for online transactions triggered by COVID-19, auto experts are of the opinion that many people still prefer walking into the showroom to buy their cars. This was the assertion of David Smith – an official of Sonic Automotive Inc. According to him, only a small segment of the market is keen on a complete online car transaction.

Hyundai received a heavy blow in sales, no thanks to COVID-19! Watch the video:

Meanwhile, the impact of Corona epidemic on the importation of tokunbo cars from Europe to Nigeria is very obvious. if you are thinking of buying a car in Nigeria amid the COVID-19, these tips will be helpful

>>> Check out the latest auto news on Naijauto.com for more updates!

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Chris Odogwu

Chris Odogwu

Car events

Chris Odogwu is a Content Writer and Journalist. He holds a bachelor's degree in Mass Communication from University of Jos and a master's degree in Mass Communication from University of Lagos. His works have been published in top local and international publications including Forbes, HuffPost, ThriveGlobal, TheNextScoop and Nigeria360 among others. A member of the Nigerian Institute of Public Relations (NIPR), the thrill he gets from writing about exotic cars feels almost the same as riding in them.

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