TECHNOLOGY AND THE AUTO INDUSTRY: A GAME OF CATCH-UP
Technology and the Internet have changed the way people do just about everything. It’s the tool people use to watch movies, buy goods, and even fall in love. So naturally, it shouldn’t have been long before technology seeped its way into the automotive industry with the internet’s high promises of convenience and available inventory at the click of a button. For some reason, however, dealerships have been playing catch-up with every other industry in that it hasn’t really utilized technology to its fullest capacity until relatively recently. So much so, that the car buying industry has actually received backlash from consumers who cant help but wonder: There has to be an easier way to do this.
In 2015, Accenture conducted a study of over 10,000 consumers across eight countries finding that:
- 80% of consumers are looking to purchase a new vehicle using some form of technology
- 75% of consumers would consider making their entire car buying process online
- 69% have either bought a car online or would buy a car online
This demand for an online solution matched with the technology available to make it happen is only really missing one thing: a connecting factor.
Or a couple of connecting factors.
There are a few companies that saw this online demand in the auto-industry and jumped on board.
TrueCar is an interesting tech venture in the auto-industry. What this company does is provide cutting edge data on MSRP and car value so that the consumer is informed about what he’s dealing with every time. TrueCar allows the consumer to see what others are paying for the same vehicle in their area, giving them a better idea as to what to expect from a dealership and, more importantly, what not to settle for.
Edmunds.com also revolutionized the auto-industry in a similar way to TrueCar. While they are both lead-generation platforms and provide information on the estimated average that people are paying for new vehicles, Edmunds is more interested in pushing local inventory where you can contact dealerships near you to purchase vehicles.
Carvoy is a tech startup which combines the data-driven approach of both TrueCar and Edmunds while also cutting out the dealership for the consumer entirely. Carvoy provides the consumer with the best offer available on the market guaranteed, due to its extensive dealership network competing for your business. The main distinction between other sites and Carvoy is that Carvoy allows the consumer to conduct the entire leasing process from start to finish online, as well as provide the option for front-door-delivery in order to really remain consistent with the roots of today’s on-demand culture.
Regardless of which route you choose to take, it is virtually impossible to claim that technology doesn’t play and active, and increasingly more important, role in the auto-industry.
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