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What Will Car Buying/Dealerships Look Like in the Future?

@onlyusedtesla:
The car buying paradigm is set to change dramatically: what will the future of the automotive dealership look like, if there is one? One Model Doesn’t Fit All Buyers The most defining change is that one model won’t fit all buyers, and that’s fine: brands will stick to what fits their segment, and customer-base. Some customers may want to order a vehicle configured to their exact specification on their smartphone in as much time as it would take to purchase a book on Amazon. Tesla is providing the pioneering example for this, which fits the forward-looking premise of the automaker. Others may want more of a guided experience through a dealership, browsing through various makes and models then comparing colors and interior materials before deciding on the perfect fit — whether that’s a vehicle in existing inventory, or a custom configured-to-order vehicle as the industry seems to otherwise be heading. Conventional automakers should know what its customers want, and the colors that will appeal to same-day customers if they’re already on the lot. Many luxury buyers enjoy the upscale treatment of a dealership, even if that service comes with a cost. Fittingly, dealerships are not going anywhere. Online shopping will complement them, and automakers will experiment with new features and services including speculatively same-day delivery that rivals a dealership experience. New Technology for a Better Experience That begs the question: how will dealerships become modernized? Industry experts are looking towards new technology, with the most recent advancement being virtual and augmented reality experiences allowing customers the ability to see a vehicle in different colors and configurations. We think this will go several steps further as just the beginning: as customers will need dealerships to do research and ask questions, automakers and franchises are bound to experiment with more types of innovative new technologies. Artificial intelligence is becoming a powerful technology that will imminently book appointments and inevitably answer questions about electric vehicle features, including training about range and charging. Marketing and highlighting vehicles in showrooms will also take bold new approaches to creating more of a presentation and therefore experience. A Transition to Information Centers That’s important as dealerships will transition into becoming more of an information center: a place customers will go to test and learn about products not unlike an Apple Store, then figure out their next steps. An increasing amount of customers will then finalize their purchase online, only coming back to pick up their newly-purchased vehicle. Autonomy may enable vehicle deliveries directly to a customer’s house, which we think is Tesla’s goal, eliminating dealerships from the equation altogether for customers that don’t want to make the trip. On the other figurative hand, there are customers that welcome the handshake of the dealership experience and want the in-person process. Set Pricing A majority of the industry is transitioning to a fixed price transaction, with no-haggle negotiation accompanying that handshake. Customers will pay one clear, transparent price with no room for haggling or markups in the other direction. Fees will be outlined before customers even reach the dealership. Automakers will push for these sales to be at MSRP, as they are matching invoice pricing with MSRP. While this doesn’t perfectly emulate Tesla’s direct-to-consumer sales model, which carries other cost savings that drastically improve margins, fixed pricing is another carryover of the modern paradigm alongside configured-to-order vehicles. Subscription/Shared Ownership Many customers may prefer not to own a vehicle at all, instead opting for short-term ownership via a commitment-free subscription service. Or, this could come down to hailing a vehicle as needed from an autonomous fleet. This may be the way that car buying and ownership changes the most, as customers will become gradually less likely to purchase a vehicle outright. The level of convenience, flexibility, practicality, and even affordability for some low-mileage travelers could outweigh the emotional attachment of a personal vehicle. Customers that do want to own a vehicle will have significantly more advanced options to choose from, and greater availability as a result. New Brands At the same time, this opens up the floor for brands unheard-of in the automotive space to start making waves. Sony is experimenting with entering the space through a partnership with Honda. Apple, too, has been on-and-off with an ‘Apple Car’. Startups like Fisker and Aptera have the opportunity to influence the direction of the industry as well, at a smaller scale than Tesla. The variety of automotive brands and partnerships will change drastically over the next decade. Personalization Automotive brands and dealerships will begin personalizing the experience to their customers before they begin shopping. This can be accomplished through careful data and calculation. Customers will benefit from vehicle design that is more personalized to their needs, and more options to configure a vehicle exactly as desired. This coincides with the removal of options that aren’t necessary, or that have become standard features in the modern era. Automakers are taking more of a customer-first approach, which is what matters most beyond the vehicles and dealerships. The Future The future of car buying and dealerships will be better than ever, creating new experiences that are more tailored and connected to customers even as car shopping becomes more digital. __________________ Interested in Listing or Upgrading YOUR Tesla? The BEST place to get TOP dollar for your used Tesla. MADE IN NYC Browse the listings now: Only Used Tesla Buy or list your premium electric vehicle: OnlyEV Or feel free to contact us directly at contact@onlyusedtesla.com today!
What Will Car Buying/Dealerships Look Like in the Future?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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