Is Technology Transforming The Car-Buying Experience?

Niraj Singh May 11, 2022

Driving innovative technologies is a cornerstone of the automotive industry. From technologies in the car to technologies in the showroom, constant transformation is essential to remain relevant. The rapid rise of digital technology and other innovations have triggered fundamental changes within the sector. This exponential increase in technology and innovation has directly contributed to the improvement in this industry and car–buying experience journey. As a result, most of the consumers spend time researching online.

Taking the fundamental changes in the consumers’ car purchase outlook into account, auto players are making significant investments in various consumer-focused digital technologies that facilitate customer engagement. This change is driven to improve sales procedures, increase customer satisfaction, and adapt to the digital ecosystem.

Here are some ways whereby technology is transforming the customer’s car-buying experience:

Online research: In the digital age, it’s no surprise that the car-buying journey begins with intense online research on various models. Interestingly, customers don’t rely primarily on dealerships or brands for procuring details about new cars or even pre-owned models. Instead, they visit/scroll online websites to read reviews and details about the best cars available. Thereafter, they check specific websites of companies. Online research helps save time before they step into a physical showroom and also minimises the decision-making period.

Digital buying is the future: Today, consumers habituated to the speed and convenience of online shopping lack the patience to check myriad details at brick-and-mortar showrooms. For car purchases, physical visits are particularly time-consuming, complex and friction-filled. Online booking of vehicles has, however, made the purchase experience easy and seamless. Thanks to technology, once a specific car is identified, technology helps close the deal swiftly. Then, the chosen vehicle is sent to the buyer’s address for a home test drive – all this without the buyer stepping into a physical showroom.

Mobile drives sales: Nowadays, most of the car buyers use their mobile phones to procure specific details and shortlist prospective cars. Therefore, automotive players are using a bottom-up approach, ensuring product details and images are configured for crystal clear viewing on small mobile screens. This is contrary to the earlier practice when digital was configured for better viewing on large screens of desktops and laptops. The sheer convenience and instant viewing on mobiles can help drive more sales in the future.

Digital advertising and marketing: Due to changing consumer trends, auto companies are deploying digital advertising and marketing to promote sales. Since most people shop online, it’s easier to grab eyeballs via online advertising. Social media platforms, digital marketing strategies and influencers are all being leveraged to drive greater sales.

Be it new or pre-owned cars, auto companies are realising the benefits of using digital in reaching out to vast customer cohorts across India. Accordingly, a full-stack used-car portal offers potential buyers a 360-degree view of every vehicle listed on its site.

Considering the trends, the future of car buying lies in the digital domain, including the Metaverse. Here, an immersive viewing experience at virtual showrooms could help customers check various models via VR/AR tools. Online bookings and at-home test drives can then complete the sales process – without buyers even entering a conventional car showroom.