Wednesday, 31 December 2008

Selling Cars Online

The struggles of the global automotive industry are well documented and set to continue for a while. There is however one area in which car sales are growing healthily - online. Research group Xerfi reported recently that direct, online sales of cars are growing apace in France. Online sales grew 25% in 2007 and 31% in 2008. Xerfi predicts a slowdown during 2009 (20% growth) before picking up again in 2010. This is significant growth albeit from a small base. The US manufacturers dabbled in the online space a few years ago with little success mainly due to dealer opposition.

There are a couple of advantages to buying cars online. Primarily, it will allow the OEMs to manage (and optimise) the whole sales cycle and, for the customer, it will remove the most frequently contested part of new vehicle purchases - the dealer experience...