The pandemic may do it for them.
Is this the death of the test-drive?
Not yet. Historically, at most dealerships, the rule was that you had to take the car out with a sales representative. All the technology in modern cars made this essential; it’s better to learn how to use the Bluetooth from a person than an app. Special friends of the dealership and VIP clients could take the car for a spin alone, after handing over driver’s license and insurance information.
Expect to see more of that post-Covid-19.
“Many of the problems that a consumer has with a car could be sussed out with one good, long test drive—preferably without the sales rep,” says Gillis. “You’ve got to kick the tires to make sure you like the car. That concept of touching it, feeling it, looking at it, sitting in it, driving it is very ingrained in the way we buy cars.”
The test drive should last at least an hour. Park it in your driveway, and pull out. Steer it into your garage. Take it on the highway. Drive it on your normal errands route. You’ll end up observing the things that could become problems later, such as blind spots, ambient road noise at high or low speeds, a too-small (or too large) trunk. You may just decide you don’t like the car’s color in your driveway.
What about online sales? Will those increase?
Yes. Online car sales in 2019 made up 10% to 15% of the total U.S. vehicle market, according to research firm Autopia. But if you listen to the experts, buying a car online won’t be the first choice for most car shoppers, even after Covid-19.
Dealers are likely to update and improve their websites. And they’ll probably respond to emailed inquiries faster. But the average transaction price of a new car is $35,000, and $21,000 for a used car. It’s still the largest payment you’re likely to make for something other than your home. For most people, it’s “inconceivable” to purchase something of that value without seeing it first, says Tynan.
“I think e-commerce will go up, but it was going up anyway,” he says, adding that this also has to do with getting the best deal possible, which is less likely via impersonal transaction online. (Online sales were less than 10% of total domestic car sales just three years ago.) “We may do some more online research first, but no dealer is going to give you their best deal through email. I just don’t see that happening.”
Consumers can use that to advantage. Do even more research online, and cross-shop from dealer to dealer before you head to the dealership for that (socially distanced) test drive.
“There will be tremendous competition over the next six months because the industry is suffering,” Gillis says. “Dealers have a huge incentive to offer the very best prices. And if you combine that incentive with your ability to shop online from dealer to dealer, you can end up getting a great car and a great value.”