Motorists will buy vehicles directly from car makers online as subscription models could pave their way through the industry in just ten years. The claims came from Phil Kerry, Sales and Marketing executive at Mini cars who suggests new forms of ownership will emerge with an increasing focus on online sales.
The rise in populate of subscription and finance deals means more than half of motorists now consider the price of a car as a monthly cost rather than a full retail price.
Data shows one-in-seven road users would buy a vehicle through a finance package rather than pay upfront costs.
Recent AutoTrader data shows nearly half would consider purchasing a vehicle online without seeing it in person despite many car experts warning against this.
Ian Plummer, Commercial Director at AutoTrader said: “Our latest research shows that people are more open to buying a car online if using a finance agreement because it’s considered less risky.”
Sales of online cars are expected to pass on million globally next year in a massive win for the new market.
AutoTrader’s Nathan Coe claims more personalised retail experience will create interaction between online and offline experiences across the market.
He adds some retailers have already embraced digital technology and have benefited highly from the giant step.
He claims those who have digitised their business have seen the time it takes to sell a vehicle reduced in half from 80 days to less than 40.
Nathan Coe says: “Dealerships certainly won’t disappear, but they will continue to evolve.”
He added: “Technology can improve the car buying process enormously, making it simpler, more intuitive and more transparent, transforming the experience for consumers.”