Obituary of the car salesman

Was it inevitable? Machines replacing humans was a popular movies’ theme in the 80s; and while many of “back to the future” predictions were too inane to come true, the world has become adequately tech-driven. There are still some jobs that cannot be entirely automated, but the digital revolution in every imaginable area has made it evident that a lot more could be done with less human participation.

Even after the dotcom bubble of 2000 where dozens of internet companies went under, the potential of digitizing products and services has only grown over time, perhaps become more strategic and tailored. Now also entering emerging and developing economies with heavier populations and greater needs. The truth is, businesses have to start changing the way demand is changing.

The on-demand economy is attempting to do that with newer, more disruptive technologies introducing more options for the changing consumer. In fact, the online one-stop presence of a business can be the biggest brand differentiator for consumers. This is why online retailing for clothing, groceries, and electronics; ride-sharing and space-sharing apps has picked up so fast. The same trend is now being seen in the online car sales industry.

Pakistan has been a little late to the game but there hasn’t been a dearth of ideas, even if some models have failed in the past. The online marketplace for cars especially deals in used and imported cars, not only working as classifieds but also bringing unique options to the table. Carmudi and PakWheels are the more popular ones while, CarFirst is the latest hype that works as a middleman, and cars can be bought and sold in an online auction much like eBay.

But how will this catch on? Are those days over when prospective car buyers went to the nearest dealership to kick the wheels of a car in order to fast check its tenacity; and what about test drives? Are people willing to buy a car, a valuable asset without seeing it, and inspecting it first? It seems the possibility exists. A McKinsey study tells that the average number of visits to auto dealerships has dropped from 5 to 1 over a period of 10 years, while more than one-third of customers in its survey said they would consider buying a car online.

Another survey conducted by Accenture shows that 75 percent of the 10,000 car buyers they interviewed across eight major countries said they would consider conducting the entire car-buying process online. This includes financing, price negotiation, back office paperwork and home delivery. More than 60 percent of respondents said they would be interested in buying a new car through an online auction.

Meanwhile, a Financial Times piece tells that car manufacturers across the world, from Nissan to Mercedes-Benz to the European Audi and Fiat have all launched online dealerships websites for customers to buy cars directly, and keep with the times. In the U.S, traditional dealerships have created online platforms to conduct part or most of their business online.

It is no argument that online sources have fast become the biggest influence in the purchasing decisions of car buyers. People are spending more time online looking for cars than they are in-person at the dealerships, though many still might want to get the feel of the car first before buying.

This awareness though—that consumers’ needs are evolving and services can be tailored using technology—has to be the key takeaway, which OEMs in Pakistan seem to be catching on. Pakistan Suzuki recently signed on with Pakwheels to sell Suzuki certified used cars on the online platform. This is a game-changing move and no doubt other players would follow suit, or should, if they aren’t planning to. Suzuki will definitely have the first movers’ advantage, but there is no shortage of space in the virtual world for more to enter, sans the suited, sweet-talking salesman. Because simply, there is no need.