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Last week’s announcement that Cinch would open its first physical showrooms was perceived by many as an admission of the failure of the purely virtual model.
The company is opening retail stores in Northampton, Birmingham, Bristol and Manchester in a bid to adopt a more classic “omnichannel” strategy for used car sales.
This follows the dramatic collapse of Cazoo earlier this year, with recent documents showing that the former disruptor has been put under management with £260 million in unsecured debt.
So, are online-only car sales dead?To find out, we spoke to some industry experts to get their thoughts on what the future holds for the brand.
In response to our question, Cox Automotive said that e-commerce is just dead and still has its position in the automotive sector.
However, the company claims that this strategy addresses a “small part of the market” and advises distributors to adopt a combined strategy in the future.
The so-called “bricks and clicks” have also been championed by Swansway director Peter Smyth.
Asked if the purely virtual marketplace dead, he told Car Dealer “never say never,” yet added that he did not think the style sustainable in the long run.
He said: “Do I think the online service is dead? I would say never, ever, because I don’t think it’s possible, but with used cars there are several things. “
“Every used car is unique in its own way and other people need to come and see it and check it out before they get to buy it.
“I know they [Cinch and Cazoo] have offered a 14-day money-back guarantee, but in a market where cars depreciate about 3% a month, it’s not a viable proposition.
“Never say never, but this shows that there is a need, both in the short and long term, for a physical sales method.
“At Cinch, I think it’s fair to say that they identified that there’s a desire to do anything other than just online, which I guess answers the first question, because if online-only is the only way, then why would Cinch go through and take over some of Cazoo’s leases?
“My opinion about Cinch is that he will probably die slowly over a long period of time. “
Other stores are wondering if online disruptors offer more than what classic stores have been offering for years.
It’s a view that Umesh Samani, president and founder of IMDA, appreciates.
“I don’t forget when Cazoo started and they asked me what I imagined my business would look like,” he told Car Dealer.
“Several journalists from the Times and the Telegraph told me that independent distributors were going to die and that the new approach to online promotion was the Cazoo approach.
Throughout our conversations with experts, one thing came up again and again: the importance of appointments between distributors and their customers.
Robin Luscombe, director of dealer group Luscombe Motors, said that purely online promotion allows consumers to “build trust”.
He told Car Dealer, “Studies on buying cars online are booming, but online transactions are another story!
“Buyers need to communicate with competent people, ask detailed questions, build trust, have a non-public appointment with the seller and sales reps to gain trust, and in many cases, touch and feel the car.
“The personal, face-to-face, phone, or email relationship with a competent person is critical. “
Jack joined the car dealership team in 2021 as a copywriter. In the past he worked as a journalist for a national newspaper for the BNPS news agency. He has provided car news and reporting for a number of national publications, including The Sun, The Times. and The Daily Mirror.
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