When buying a vehicle, the average person will open an internet browser on whatever device they have available to them, like a cellphone or laptop, and then proceed to simply type in the name of the car they are aspiring to buy into the Google search bar or the most convenient online platform.
The search engine of choice for most South Africans when looking for a new car is generally Auto Trader, Cars.co.za, WeBuyCars or the trusty (or not so trusty) Facebook Marketplace. Once the platform is opened, the user has access to browse through thousands of vehicles for sale, without having to move an inch.
With powerhouses like Autotrader and Cars.co.za, are smaller vehicle dealerships really necessary or do they just need to exist as outlets for these online platforms?
Last month, I happened to be “the average person” looking to buy a vehicle, and I ended up visiting 3 or 4 dealerships during my search. Some were not so welcoming and some, noticably, went the extra mile for me. This is what initially spurred the thought repeating in my mind since the new wheels arrived in the driveway: do dealerships really need to exist?
The journey started two years ago when my girlfriend’s sister purchased a Haval H2 and, to put it kindly; I did not agree with the purchase. My annoyance with having a Haval in the family led to two years of sending her links to different types of cars she could get instead. I would send her links from AutoTrader, links from Cars.co.za, or even links from Instagram that showed her what a good car is, even if it was way out of budget. I was constantly poking the ever-so-light-sleeping bear that loves online shopping.
Finally, after two years of hard work, the bear awakened, and the link that did it? A beautiful charcoal BMW X5 50i executive spec. A decision that was heavily assisted by AutoTrader’s ever so helpful monthly-installment indicator. It showed the possibility of owning something new and shiny while being able to understand the financial implications of the purchase right off the bat. If you ask me, that’s inticing to any shopper, but it’s probably even more of a lure for a vehicle buyer.
Within 5 minutes of that link being sent, we were calling the dealership and arranging a viewing. That purchase fell through at the time, but by then, the ball was rolling. I was sent off with a set of specifications and criteria to work within to find an X5 that was up to standard for her.
Coffee in hand, laptop fully charged, and 10-20 tabs running on Google showing different links between the top 3 browsing platforms. As I searched for the right car across dozens of dealerships, the thought crossed my mind: Do we really need all these dealerships? The process of constantly inputting different contact details, poor service from multiple companies, and different locations across the province—it makes the task quite exhausting. Do we need all this or do we just need one central processor who can control the potential sales through a head office, directing customers for viewings to the necessary locations?
My first few experiences highlighted the inadequacy of sales services in the dealerships I visited, most dealership salespeople functioned more as tour guides rather than someone who wanted to make a sale. This makes sense for those that fall under the larger automotive marketplaces because these platforms need vehicle tour guides. Their selling is modelled on a bulk scale and with their customer base, they will always have buyers. Those buyers will be managers of fleet vehicles, daily-driver buyers, convenience buyers, etc. But when it comes to the process of selling a vehicle to someone who enjoys cars and enjoys shopping, you won’t win by simply showing them the car, you have to sell it to them.
While contemplating this idea, I stumbled upon one of the rare links that met my stringent search criteria. It seemed promising enough for us to schedule another viewing. And so, I set out to verify the authenticity of this link before potentially inconveniencing anyone with yet another disappointing option. After visiting numerous dealerships without much success (most simply showcasing the cars without offering any real sales assistance), my job of ensuring the car’s quality before wasting the buyer’s time became an essential part of the buying process.
The conclusion to this question that bounced around in my head for weeks came from our final purchase. Perhaps it was because the previous dealerships hadn’t set the service bar very high, or perhaps it was because we just happened to choose to buy from a dealership whose service was better than most. But from the moment that we walked in and were offered coffee, to the moment I was given a tour of the owner’s private collection, this kind of service excellence made me realize: some dealerships do need to exist. They need to exist as bespoke buying outlets for the enthusiasts and the shopping-lovers.
The car-sales industry should look to two possible solutions when it comes to dealerships: firstly, if they’re going to run a below-average or average dealership (which is completely okay), they need to be part of a larger marketplace to ensure constant customers, despite low sales efforts.
The second solution is that dealerships need to focus on service excellence for their clients. Not every space needs to have a private collection and free coffee, but they do need to pay attention to the customer, speak to them, understand their needs and make a connection that will keep them bringing the rest of their friends and family back to not only the dealership, but that exact salesperson they were working with. Dealerships can either immensely improve their services or have their company swallowed up by larger conglomerates. Either way, they still need to exist.
Matt Boyd, Founder of JDM IKIGAI
Also see: Basic car maintenance you need to know
