Last fall, eBay Motors released the results of its "Future of Automotive Shopping Survey," which included findings about how consumers purchased vehicles and auto parts online. According to the survey, nearly one in five consumers reported purchasing a vehicle online in the last five years, and the same number reported they were likely to purchase their next vehicle online.
What do you think were the most important results of the survey?
The rise of mobile devices is very interesting. More and more people want to use that technology in different ways. About 20 percent of respondents said they were likely to complete the purchase of a car using a mobile device.
More people are leveraging online resources to both research and purchase vehicles. Is that largely due to a generational change from older to younger buyers?
It's absolutely true there is a generational shift. But there's also the fact that online purchasing has become so pervasive. People have the expectation that they can buy anything online and have the same experience. The buyers look at cars as commodities.
There's a geographic element as well. If you are looking for a used minivan with specific mileage and a specific color, you may not be able to find it locally. You can find it online.
The third thing that is happening is that people don't want to go near a dealer anymore. They don't feel like they know if they got a good deal, and the whole experience is not very positive. Online purchasing gives them a way to get away from that experience.
It was surprising to see that so many respondents (43 percent) were interested in virtually "test driving" vehicles.
All you really need is a good streaming service. You can already embed videos in the vehicle listing so you can see what the vehicle looks like. The next logical step would be real-time video. It's just a matter of time, frankly.
Are dealerships adjusting to these new consumer expectations about their online capabilities?
One example I can think of is a dealer in Kansas City. The father closed the dealership down, and his two sons restarted it and had to understand how to crack the code of how buyers are shopping. They were very new to eBay, but very quickly did a great job of understanding what kind of information they should have, and how to provide good value to attract more shoppers. How do you treat them and make sure you maintain the customer relationship? All of these things are essential to automotive e-commerce, and they are figuring out that. They are a franchised dealer, too.
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