Digital Dealer - December 2017 - 36

By Penina Rothner
Content Marketing
Writer, AutoLeadStar

COMMUNICATIONS

APRIL 21-23, 2015 * TAMPA, FL
APRIL 21-23 * TAMPA, FL

What Your Dealership
Can Learn from Carvana
If you mention the
name "Carvana" to
most people in the auto
industry, they will probably
respond with a mixture of
fascination and unease. At
some point in the conversation, the word "disruption" will probably come
up - and there is no doubt
that Carvana and
companies like it, including Amazon, have
changed the way we think
about car shopping. The
possibility of buying cars
online raises questions
about how customers
relate to the dealership,
and how dealerships will
need to adapt. So, what
can dealerships learn
from platforms that take
the entire car shopping
process online?

WHY WE SHOULD
LEARN FROM CARVANA

First, we have to
acknowledge that there is
something about Carvana
that attracts both investors
and customers. In 2015,
one year after its launch,
Carvana was rated as
the fifth most promising
company in America by
Forbes (www.forbes.com/
companies/carvana/).
Revenues are growing,
and as of October 2017,
6/7 analysts recommended buying stock in the
company (http://bzweekly.
com/whats-ahead-for-carvana-company-nysecv36

DECEMBER 2017

CARS TO GO

Minute Auto

ALTHOUGH THE IDEA OF A CAR
VENDING MACHINE MAY SOUND
INTIMIDATING AND "DISRUPTIVE,"
WHAT CARVANA IS REALLY DOING IS
TRYING TO MAKE THE PROCESS
OF BUYING A CAR EASIER AND
MORE CONVENIENT.
na-after-more-shortedshares/). This success
should cause us all to take
note and consider what
Carvana is doing right.

DON'T ABANDON THE
DEALERSHIP MODEL

Even with this success,
the traditional dealership
still appeals to most
shoppers. According to
the DealerSocket 2016

D I G I TA L D E A L E R . C O M

Dealership Action Report,
only 33% of customers
are actually interested in
buying their car online
(http://www.autonews.
com/article/20161010/
RETAIL/310109974/
do-people-really-wantto-buy-cars-online?). Car
shoppers are still hesitant
to make such a large purchase on an ecommerce

platform. They want the
opportunity to actually see
their different options, take
a test drive, and feel the
car before putting down
money.
Even more, most customers still want to negotiate the price of their vehicle with a salesperson. The
ability to speak to someone in person and ensure
that they are getting the
best price for the product is
important to car shoppers.
A vending machine cannot
provide shoppers with this
same peace of mind that
they are making the right
decision.
WHAT CAN
DEALERSHIPS LEARN
FROM CARVANA?

The most important
step for dealerships is to
understand what makes
Carvana so attractive to
shoppers. Why would they
choose to buy their car
from a vending machine
instead of a dealership,
aside from the novelty?
The answer is simple:
Carvana is making the
process of buying a car
easier and more convenient. Being able to buy
a car online can remove
hassle and frustration.
Shoppers can choose
the products they want to
see, without being shown
irrelevant information. They
can choose to pick up their
vehicle, or have it delivered

http://bzweekly.com/whats-ahead-for-carvana-company-nysecvna-after-more-shorted-shares/ http://bzweekly.com/whats-ahead-for-carvana-company-nysecvna-after-more-shorted-shares/ http://www.forbes.com/companies/carvana/ http://www.forbes.com/companies/carvana/ http://www.autonews.com/article/20161010/RETAIL/310109974/do-people-really-want-to-buy-cars-oline? http://www.autonews.com/article/20161010/RETAIL/310109974/do-people-really-want-to-buy-cars-oline? http://bzweekly.com/whats-ahead-for-carvana-company-nysecvna-after-more-shorted-shares/ http://bzweekly.com/whats-ahead-for-carvana-company-nysecvna-after-more-shorted-shares/ http://www.DIGITALDEALER.COM

Table of Contents for the Digital Edition of Digital Dealer - December 2017