Moneyway: technology to have a positive impact on dealerships

Additional technology will have a positive impact on car dealerships, according to Moneyway

Moneyway: technology to have a positive impact on dealerships

Just of a fifth (21.7%) of those who took part in a Moneyway survey said they weren’t sure on if the impact would be good or bad, while 17.4% said it would be negative.

Despite the overall positive reception to technology, 43.5% of respondents felt that an increase in online customer reviews and comparison websites would decrease showroom footfall. This compared to 30.4% who said it would have no impact and just 26.1% who said it was increase footfall.

Of the various new technologies coming into the car market, increased access to relevant online information was seen as the most important by 47.4% of the dealers, while augmented reality and digital showrooms were seen as potentially having the biggest impact by 39.1%.

John Simpson, managing director at Moneyway, sad: “Technology is set to continue to have a significant impact on the automotive sector, with self-driving vehicles and car-to-car communication already being trialled by a number of companies. This will inevitably alter the way that cars are sold in the UK, and we arranged this survey to get the opinion of the people directly affected by this.

The dealers remained open to incorporating a number of technologies, especially click and collect technologies, which was selected by 39.1% of dealers. Just over a quarter (26%) said dealers would increase demonstrations and test driving facilities, while over one in five (21.7%) would use augmented reality in show rooms.

Simpson said: “It is encouraging to see that dealerships remain confident and open to the idea of embracing new forms of technology. While they remain wary of potential changes, the future looks bright and demonstrates that car dealers can be optimistic for future growth.”

When asked if technology would have an impact on car prices, and if so whether this would have an impact on credit, 43.4% said it would impact car prices, which in turn would cause the need for credit to increase. 21.7% said technology would increase prices but not credit, while 17.4% said technology would not increase prices. 17.4% also answered there were not sure for this question.

Mike Bell, managing director at Imperial Car Supermarkets, said: “If their desired vehicle is in stock, consumers can now transact with dealers irrespective of their distance from the dealership. As a result, technology is crucial to ensuring that a dealer’s virtual showroom is as well-managed as the bona fide showroom, or they will risk losing sales.”