The ability to do car deals 100% online is about a year away, says Cox Automotive Chief Operating Officer Mark O\u2019Neil, who urges dealers to board the digital train today.<\/p>\n
It\u2019s a matter of giving customers what they want \u2013 or else, he tells WardsAuto. \u201cWhen customers want something, they always get it.<\/p>\n
\u201cFundamentally, the consumer has learned to engage digitally in every other retail category: shoes, pizza, mortgages, electronics, books; pick any category. But the auto industry has held back in letting them do it.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\u201cMy message is: Now\u2019s the time to embrace digital retailing. If the industry doesn\u2019t, someone will create a disruptive technology that will put the current dealer or manufacturer at risk.\u201d<\/p>\n
Before his speech, \u201cConnected Retail: Deals in the Digital Age,\u201d at the 2017 Automotive Forum here, O\u2019Neil speaks with WardsAuto<\/em>.<\/p>\n WardsAuto<\/em><\/strong>: You talk of the need for dealers to embrace digital. They might say they already have.<\/p>\n O\u2019Neil<\/em><\/strong>: They might. But when you look at the data \u2013 we look at how enabled websites are to transact electronically \u2013 they are woefully under delivering.<\/p>\n There are dealers who are getting comfortable with things such as customers valuing their trade-ins online.<\/p>\n And you see in financing that some dealers have calculators on their sites. But you need to get beyond that. Give the consumer pre-approved financing with a name bank. Not, \u201cCome in, and we\u2019ll get you financed.\u201d That\u2019s not the transparent, completed process.<\/p>\n One of the advantages of embracing digital retailing is the consumer does half the work. That reduces your cost structure as a dealer. By the way, the customers are happy doing that work. It\u2019s more convenient for them, too.<\/p>\n WardsAuto<\/em><\/strong>: It\u2019s not a bear hug, but dealers and OEMs have embraced aspects of using the Internet to sell cars.<\/p>\n O\u2019Neil<\/em><\/strong>: Everyone has embraced using digital for merchandising and increasing brand awareness. The industry has done a terrific job of letting customers use the Internet to research, shop and get pricing. But not, \u201cOK, now I want to buy it.\u201d That\u2019s a huge leap. The dealers who enable that will thrive.<\/p>\n