Viewing cars for sale has never been easier. Online capabilities have made it possible for consumers to buy and sell cars from the comfort of their own home. “Consumers consider online shopping and traditional shopping to be closer substitutes than any other pair of channels” (Ward 2004).
The Internet makes it possible for consumers to view cars for sale online with reviews, pictures, prices and location. There are then tools for consumers to compare different models and makes of cars over a much wider selection than available on the forecourt of a car dealership.
With changing attitudes towards cars and need for consumers to feel they have a wide selection available to them when making a decision, the internet is the perfect forum from which consumers can start their search.
The rise and changing fuel costs, the rising tax, the congestion charge for those affected, the need for economically sound cars for sale, these are all effecting factors in the need for a wider range of car choice for consumers. Consumers are looking for specific specifications so dealers must have these available to them. The only way to achieve this is through a large stock choice. Nearly 7.5 Millions used cars were bought in 2007 smmt(dot)com. The online dealer can hold a database of tens of thousands of cars, a physical local dealer can’t.
Due to the nature of physicality of a car dealership, the geographic location of the dealership can affect the amount of cars available, whereas online dealers will provide consumers with delivery options and possible regional selection when searching for a car.
The sale of cars online leads us to the question then of, ‘could the internet car shopping forums end the need for car dealerships?’ or does the car market, similar to the clothes market, need both internet availability as well as a tangible market place?
There are currently various ways to purchase a new or used car. These include;
- Franchised dealers
- UK brokers
- Car supermarkets
- Online supermarkets
The cost of using any of these mediums entails an extra cost, so another question raised by consumers would be; Who is charging the most for their service? This is where online supermarkets are able to capitalise, through minimisation of costs and over-heads when compared to other mediums of car sales.
The online market has its own pitfalls however. These include, enjoyment levels reduced due to intangibility of the product, access to the Internet necessary combined with a daunting level of product choice.
However, these possible hindering factors are counter-acted by the fact that online shopping is convenient for consumers, there is no salesmen and no pressure to buy, an infinite shelf space for dealers and product and price comparison capabilities all lead to a superior shopping process.
Whether the consumer currently likes to enjoy a tangible shopping experience or not, the online shopping process has taken a hold on many markets including the car market. Providing a good forum for both consumer and seller to optimise their chances on receiving the best deal from reaching a wider client base.
Ward, R. 2004. Will online shopping compete more with traditional retailing or catalogue shopping?. Netnomics Business and Economics. [Online]. 103-117. (Springer Netherlands) [Accessed 20 October 2008].
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