How Technology Has Disrupted the Used Car Buying Experience

How Technology Has Disrupted the Used Car Buying Experience

TYRON JONES

Car Insurance Expert at n/a

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How Technology Has Disrupted the Used Car Buying Experience

08.07.2020 08:30 pm

We’ve seen many fields change rapidly as a result of the integration of modern technological advancements over the last couple of decades. And it looks like more is coming on the horizon as well, judging by current trends. One of the markets that have been affected particularly noticeably is the used cars one. Buying – and selling – a used vehicle today is a much different process as opposed to a decade or two ago, and there are many reasons to believe that things will change even more in the coming years. But for the most part, it looks like those changes have been for the better for both sides, and we’ve seen some strong, positive responses as a result.

Expectations Are Changing

The most noticeable thing is that buyers’ expectations are much different than before, and they seem to want a lot more out of each deal. Sellers have been scrambling to provide as much as they could, but it seems like the internet’s widespread availability has caused some issues for them. However, smarter dealers have started to adapt quite effectively, running their own information services online, and doing their best to engage their customers on the internet. Meeting those expectations can alone provide a very solid boost to the performance of a business in this field.

Buyers Know What They’re After

Another point to consider is that the average buyer is now much more informed about what they’re looking for, and they know how to make that fact known. The average buyer knows how to do their research and what the market has to offer them, including in their own local area. This has made some dealers more careful, which can be seen as a somewhat detrimental effect to their productivity, but it does also seem to benefit buyers significantly. People also understand the auxiliary factors in this situation – such as the need to get insurance coverage for their purchase.

Everyone Is Highly Visible

Dealers have benefited a lot from the increased exposure that the internet has provided them with. It’s easy for anyone to look up the dealerships in their area and figure out which one would work best. And while some dealers initially tried to game the system by pretending to offer services they didn’t, this changed quickly when people caught on, and the situation today is quite far from that. Now, listings for dealers are reliable and trustworthy, and it’s quite easy to find what one needs. Companies and their clients have entered into a mutually beneficial relationship that seems to be working quite well across the board.

Competition Is Growing Fast

And with all the extra integration of technology that we’ve seen recently, it’s also noticeable that there is much tougher competition for the average dealership. New companies keep coming up on the market, and it can be difficult to keep up with the trends for those who continue to refuse to integrate modern solutions into their business. But this is not too different from many other situations throughout history, where we’ve seen companies failing mostly due to their inability to adapt.

Buyers Have More Options Than Ever

The range of options for the average buyer is also wider than before. That’s not just because of the increased availability of dealerships – there is much more on the table for everyone involved. As we said above, dealers have been doing their best to provide a wide range of services that matches the growing expectations of their customers, and we’re already seeing some good results on that front. But it also looks like many buyers have started to take advantage of the increased availability of options that they have, and have been pressuring dealers more than ever before. It’s interesting to follow this development and it will certainly be interesting to see where it all ends up in the future.

Post-purchase Support and Similar Factors

Dealers are now also facing growing pressure to provide additional support for their buyers after a deal has been closed. This has somewhat shifted the balance in those negotiations, as people tend to demand much more than before in terms of post-purchase support. Technology has played a major role in that, connecting dealers with suppliers from all parts of the country – and beyond – and allowing them to develop good inventories that can match the needs of most of their customers. At the same time, researching new parts and other similar points can be a piece of cake with the help of the internet in its current state.

Who Will Win in This?

It’s clear that the market for used cars is becoming a bit crowded, and this has raised some eyebrows. This is not a sustainable situation, and some companies will have to go before things stabilize. It’s hard to predict which ones those will be exactly, because many factors are in play right now, and it has already been difficult to determine the movements of the market and some of its more unusual shifts. It’s definitely something worth paying attention to for anyone even remotely involved in this field though, both buyers and sellers alike. And while it’s difficult to say who will come out on top in the end, some things are starting to shape up as clear trends – such as the fact that dealerships need to adapt to modern technological advancements on a deep level if they want to stand any chance at all in this market. With all that in mind, the next years and decades are going to be quite exciting.

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