Nearly half of consumers plan to preorder their next new car according to study
With today’s inventory shortages, preordering a vehicle instead of buying from dealer stock could evolve the way consumers engage with their dealerships of choice and forever change the way cars, trucks and powersports showrooms look. Here’s why.
The traditional buying process is changing dealerships, according to a study from Cars.com. The study maintains that 41% of survey respondents say they plan to preorder their next vehicle. Moreover, among the 16% of survey respondents who actually already preordered a new vehicle, 98% enjoyed the experience and said they would preorder again.
Reasons for this go beyond today’s inventory shortages created by the COVID-19 pandemic and supplier issues that include the semiconductor production crisis. Cars.com goes on to say that "work-from-anywhere mindset" and innovations in car-shopping technology are facilitating this change in consumer buying behavior. Automakers are making it easier to browse, order and purchase vehicles using more sophisticated digital retailing websites.
With new-car buyers having to wait months due to inventory shortages, shoppers have fewer reasons to select from dealer stock when they can easily order exactly what they want while waiting a similar amount of time and paying a similar amount of money. Automakers like Tesla have been using online preorder system for years, while companies like Ford and General Motors have been successful in deploying early deposit-based reservation products.
Automakers and franchise dealerships are showing newfound willingness to adapt to rapidly evolving consumer tastes. Of the 1,002 respondents to the survey, Cars.com says, "38% of current car shoppers expect to complete the entire buying process online, with another 38% intending to purchase a vehicle in person but complete all paperwork online."
If preordering continues to play out over the long term, this will very likely impact the way dealerships look in the future. One of the biggest expenses for franchises is the cost of maintaining inventory. As more customers move to preorder, it follows that dealers won't need to stock as many new vehicles or invest in big lots to maintain large inventory.
Mobile Dealer is the leading provider of mobile solutions that grow sales, service, parts and F&I revenue for auto, truck and powersports dealers and gorups. Mobile Dealer helps dealerships to increase pre-orders, service retention and F&I profitability with its product portfolio, including Mobile Dealer App, Digital Loyalty Rewards, Geofencing, Customer Portal and Mobile Payments solution. www.mobile-dealer.com