Auto retailing is not working—for automakers, dealers or consumers. But fixing auto retailing is not simply a matter of turning car-buying into just another online transaction. Even though consumers love to start the car-buying journey online—and internet pricing transparency has squeezed dealer margins—there are many kinds of car shoppers, who make their own online/offline journey and only a minority of shoppers might ever be comfortable buying a new car sight-unseen from an app and waiting for it to be delivered to the curb. This means that reinventing auto retailing is massively complex. But it also means that no single player can be all things to all shoppers. That frees automakers, dealers, tech upstarts and other players to focus on what they can do best and look for partners who can help in other areas.
Improving the car-buying experience for all consumers and creating a healthy retail network will be a team sport.
Our white paper, The future of automotive retailing, provides additional insight on the challenges facing auto retailing and what it will take to reinvent the wheel. This paper was also a key topic of discussion at KPMG’s 10th Annual Automotive Executive Forum, which brings together the top minds in the auto industry and took place at the 2019 Los Angeles Auto Show.
To view our presentation on KPMG’s SlideShare page, click here