The number of customers considering buying cars online may steadily be increasing, but most people still prefer getting their first cars from a dealership. This is mainly because they want to test drive the automobile before buying. More than 80 percent of buyers prefer taking this hands-on option, which only emphasizes the strategic role dealers play in the industry.
A 2014 study conducted for the National Automobile Dealers Association showed that even though the internet has altered the car-buying experience, the role of the dealer in automobile transactions has not diminished. Senior vice president for global automotive operations at J.D. Power John Humphrey says that, in fact, “people are more satisfied with dealers today than they have been.”
A key factor in the continued preference for dealers is the existence and prevalence of state franchise laws which largely prohibit car manufacturers from direct selling. While some may frown at this, it actually makes great sense: it generates good competition among car businesses, which allows for more options, better service, special discounts, and value-added offerings like free maintenance.
Dealers also often have broader inventory and brand options, as they work independently from automakers. They provide sound financing arrangements, shoulder tax deductions, handle state registration, let buyers choose from an array of models, and again, give buyers the option to try before they buy.
Accelerated Service International has been focusing on automobile dealerships, financial institutions, and the agents who serve them, for over 20 years. The company offers a host of benefits for agents to effectively market to dealers. For more on its array of services, visit its official website.
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