Winds of (online) change 💨

The way we are purchasing cars is changing 💰

By now an interesting shift occurred in the new car purchase behaviour.  And you’ve experienced it if you’ve bought a new car recently. You either:

1) Paid significantly over MSRP for the car available on the lot right now

2) Paid slightly over MSRP and waited anywhere between 3-12 months for delivery.

Research backs this anecdotal evidence:

82% of new cars sold over MSRP in 2022, while only 3% did in 2021, and mere 0.3% in early 2020.

Dealers just don’t have inventory anymore.

What opportunity does this behaviour change present? Manufacturers are in the prime spot to transform the dealers into “experience & delivery shops” and shift to online sales model.

Manufacturers certainly have been experimenting, within the law framework limitations.

Even further, the majority of car buyers don’t care that much about the options on their car. They want the best value for the best possible monthly payment. 

If all we had to choose was one of three packages, the colour of the car, and maybe wheels, why do we even need to go to a dealer?