AutoNation Looks To Shift Retail Automotive Online

One of the most frequent complaints consumers have about retail automotive is the hours spent on the lot. However, what if customers could show up at the dealership having already started the purchasing process online? For AutoNation, that appears to be the goal.

The largest retailer of new cars in the United States is moving towards an online storefront. Mike Jackson, the CEO of AutoNation, sees this process truly taking off. Jackson told the LA Times, “This is just the beginning. We will buy your car online, will do your credit work online, and ultimately do a great deal of the documentation online.” With consumers used to purchasing so much online already, it’s possible that the contrast with a normal dealership buying experience is becoming too great. Digital consumers are used to brands like amazon, which vehemently seek consumer approval. Is AutoNation’s new dealership model a simple matter of being customer obsessed and trying something new? Are other dealers buying this idea? David Conant, of the Conant Auto Group in Florida told the LAT that this idea would catch on industry wide. “It won’t be exclusive to them for long. This is the next logical evolutionary step in car sales, Conant said.”

Not every automotive group can do what AutoNation is doing. They have invested $100 million into their project to shift part of the retail automotive experience online. It’s a move that NADA spokesman Charles Cryill says ultimately benefits customers. “Fierce competition in automotive retailing — driven by a network of new-car dealerships, as well as other online services — benefits car buyers.” Those buyers will reportedly encounter sales staff at AutoNation with a non-traditional skillset. CEO Mike Jackson explained, “They (AutoNation staff) won’t be negotiators, they will have to be product experts and customer service specialists.” Avi Steinlauf, CEO of Edmunds.com, told DrivingSalesNews, “The car shopping process is always evolving, particularly recently as technology sets ever more demanding consumer expectations in the retail space. It shouldn’t surprise dealers that portions of the transaction will move online as they have in the real estate business and today’s announcement by AutoNation is a great example of an innovative automotive retailer embracing this change. Truly, that development should streamline things and make for a better experience for everyone involved in car buying transactions.” Do you agree that online transactions is the direction the industry is headed? Are you planning on creating online options for your store? Will this idea pay off for AutoNation?