Car dealerships of the future: what is important now to remain successful

The car trade is undergoing the biggest upheaval in its history - and no, this is not just due to new mobility concepts conquering the market. Rather, it is about a rapidly changing industry that has to respond to new technologies, data-driven processes and completely new customer needs. 

Whereas a Saturday trip to the car dealership used to be almost a weekend ritual, today's customers first gather information online, compare prices and prefer to buy at the click of a mouse - and preferably with a 24-hour return policy. Does this mean the end of the classic car dealership? Experienced voices from the industry agree: the car dealership has a future - if it changes. It is not a question of throwing everything familiar overboard, but of further developing what already exists. 

This article takes you on a journey towards the car dealership of the future and provides ideas on how car dealerships can respond to current developments and translate their strengths into the new era.

Car dealers must overcome these challenges

Before we talk about what the dealership of the future could look like in concrete terms, let's take a look at the challenges posed by the current changes in the industry. While digitalization in the dealership, online retail and new mobility concepts offer enormous potential, they are also a test for traditional structures.

Those who are not visible do not exist

Customers google, compare and read reviews before they even set foot in a dealership. If you don't play along here, you will lose potential buyers before the first contact is even made. A modern car dealership website with a comprehensive vehicle presentation, online appointments and digital consultation options is therefore not a luxury for car dealers, but a survival strategy.

Customer expectations have changed

Today, nobody wants to "just" buy a car anymore. The digital world has spoiled customers: everything has to be quick, simple and as transparent as possible. Endless haggling with the car salesman? Not in the mood. Paperwork that you have to sign in ten copies? Not cool. If you don't digitize your processes and simplify the purchasing process, you will quickly lose touch with the buyers of today and tomorrow.

Manufacturers' direct sales threaten car dealerships

Tesla has shown the way: direct sales are becoming more and more popular and manufacturers are increasingly focusing on establishing their own sales channels. Mercedes-Benz, Volkswagen and BMW are already testing new sales models in which car dealers only act as service partners. This means that if you want to survive in the car trade in the future, you have to differentiate yourself through service, digital advice and individual customer experiences.

Online beats offline - but not everywhere

According to a recent survey by Deloitte, 45% of car buyers can already imagine buying a car completely digitally - and the trend is rising. Nevertheless, this does not mean that the physical showroom is obsolete. Customers want to test, feel and experience. 

After all, according to the MHP Online Car Sale Study from 2023, more than a third (36%) of potential buyers can still be convinced to purchase a vehicle with a test drive. The challenge for car dealerships is to bridge the gap between the digital and physical worlds and create experiences that stand out from pure online searches.

Data as untapped potential

Big data, artificial intelligence and smart algorithms - it sounds like science fiction, but it has long been a reality and a must for the future of car dealerships. If you don't use modern dealership software such as the AUTOMANAGER is not only wasting efficiency, but also valuable business opportunities. 

Innovative solutions & new strategies for the car dealership of the future

Good, we have understood: There will be plenty of challenges for car salespeople in the future. But it is precisely these challenges that bring with them new opportunities: those who pursue the right strategies now can not only survive, but even become the leading car dealerships of the future. Let's take a look at some of the most promising approaches for the future of automotive retail:

Digital showroom & online purchase options

Modern customers want to be flexible - this means that they prefer to configure a vehicle from the comfort of their couch, compare financing offers and complete the purchase at the click of a mouse. Solutions such as AUTOMANAGER enable exactly that: a seamless e-commerce retail solution that meets customers where they feel most comfortable.

Personalized customer approach through smart data analysis

"I see you're interested in a sporty SUV with full equipment?" - A well-maintained CRM system can provide precisely this kind of information and make communication in the car dealership of the future more individual and effective. Thanks to AI-supported analysis of customer behaviour and preferences, the sales pitch can be digitally optimized.

Omnichannel strategy for maximum reach

Online marketplaces, social media, your own website, digital consulting services - those who only present their vehicles on one platform are limiting their opportunities. The future - also in the used car trade - belongs to those who diversify their offerings and rely on efficient automation. 

A tool like the AUTOMANAGER synchronizes vehicle offers on over 50 platforms as well as on your own website with the AUTOMANAGER Marketplace - with just a few clicks.

Establishing hybrid sales models

A seamless connection between digital research and physical interaction ensures a modern shopping experience. This means that a prospective buyer can reserve their desired vehicle online, receive digital advice and then experience a personalized test drive at the dealership. 

Creating worlds of experience in the car dealership

A showroom that's just a collection of cars? Boring! The most successful dealers of tomorrow rely on worlds of experience: Interactive touchscreens, VR test drives, digital advice stations. A customer who is emotionally involved makes a purchase decision more quickly.

Where is the development heading? An outlook towards the car dealership of the future

So what does all this mean for car dealerships? Do they have to turn into glossy tech companies? No, but car salespeople must remain flexible. 

The future of the car trade is developing in two directions: While the digital dealership along with convenience shopping make buying easier and more convenient, the physical presence remains essential for test drives, advice and brand experience. Car dealerships that manage to combine their digital strategy with an outstanding customer experience will not only survive, but thrive.

The car dealership of the future at a glance

• Hybrid sales: online purchasing and personal advice merge to create a successful model.
• Using data instead of guessing: AI and big data make sales strategies more efficient.
• Experience instead of sales area: digital showrooms and interactive advice increase purchasing decisions.
• Flexibility is crucial: Those who adapt quickly remain competitive.

The car dealership of the future is digital, but not impersonal

The car trade will not transform overnight into an online store where nobody talks to people anymore. But: customers expect new experiences, modern processes and seamless digital service. Those who act now can use this change as a competitive advantage. With solutions like the AUTOMANAGER dealers can optimize their processes, maximize their online visibility and revolutionize the customer journey. Are you ready for the future in your dealership? Let's talk about it - it's easy. Contact us today and start your business towards the dealership of the future!