How the Car Buying Process Has changed in the last 30 years

Before the internet became widely popular, the traditional car buying process involved driving to a car dealership, haggling with a car salesman, waiting your turn for a test drive and subsequently applying for your car finance. That was just the beginning of a rather long and daunting car buying process to say the least. But the internet has changed the way cars are sold or better yet sold directly online in virtual car showrooms. Let’s first take a look at the tradition auto buying process, and how it compares to how business is done today.

If you wanted to learn about a particular vehicles features and price 10 years ago, your best chances at reliable information was by way of checking your local newspaper, buying magazines and obtaining vehicle manuals, and scouring through your local newspaper. Today, the internet makes this information available with just a few clicks, saving you hours or even days of information gathering and analysis. Back in the day, car reviews were unheard of, and the only way of getting hold of some decent advice was from family and friends. Today, there are a ton of reviews available on probably every vehicle in the market that can be accessed on the fly even at the car dealership.

Most car buyers often lack negotiating skills especially when it was face to face. Now email has become the negotiating weapon of choice and allows potential buyers to bargain without visiting a physical showroom and seal the deal as well. Adding to this, email also makes it possible to pit car salesmen against each other to win your business. With regards to financing, it was simply a tedious process where one had to walk into a bank or credit union, fill out loads of paperwork and then hope for the best. This process is still continued today except that the financing process is exclusively online and more importantly allows you to shop for the best rates.

But the way cars are sold today is revolutionized with the inception of “Mobile Showrooming” With literally millions of smartphone users worldwide, use of mobile technology has reached a tipping point globally so what does this mean for car shoppers and dealers? Recent research indicated that an upwards of 75% of car shoppers used their smartphones during the car buying process, and even to compare product options at a car dealership. Computer savvy car buyers want to compete most of the car buying process online and then getting their personal or motor trade insurance online and spend less or no time at a brick and mortar car dealership.

They want to get answers to questions fast such as affordability, price, reviews, payment options and availability. Owing to this surge of appeal in internet car shopping, several car dealerships often offer online sales of vehicles and often times at discounted rates. To accommodate online shoppers, certain dealerships have even as gone as far as setting up an internet only sales team, which at most times advertise more competitive rates than in the showroom.

The car buying process is definitely not the same as it was 10 years ago, and today is a much better, secure and profitable experience.