How to Compete with Carvana in a Digital World

Written By: Alyson
Originally Published: March 24, 2022
Updated: May 9, 2024

Embracing Change: Adapting Traditional Dealerships to the Digital Era

In today's rapidly evolving automotive landscape, staying relevant as a dealership demands agility and foresight. While the allure of point-and-click, touchless buying options like Vroom and Carvana may seem tempting, traditional dealerships possess inherent strengths that can outshine their digital counterparts. Let's explore strategies to optimize sales within the traditional dealership model amidst the digital revolution.

Leveraging Experience and Expertise: Traditional Strengths in a Digital World

Traditional dealerships have weathered numerous shifts in consumer behavior and technological advancements over the years. Despite facing disruption from online retailers, they have maintained a strong foothold in the automotive market by leveraging their experience and expertise. With decades of industry knowledge and established processes, traditional dealerships are well-equipped to navigate challenges and provide customers with a seamless car-buying experience.

Prioritizing Customer Experience

Personalized Support Every Step of the Way

While Carvana and Vroom tout convenience and efficiency, their rapid rise hasn't been without hiccups. Issues such as late deliveries, incomplete paperwork, and undisclosed vehicle issues have plagued these disruptors. In contrast, traditional dealerships prioritize customer experience and satisfaction.

At traditional dealerships, the buying process is guided by knowledgeable staff who are dedicated to addressing customer needs and ensuring a smooth purchasing journey. From the moment a customer steps onto the lot to the final signing of paperwork, dealerships provide personalized support every step of the way. This human touch sets dealerships apart from online retailers, fostering lasting relationships and customer loyalty.

Quality Assurance: A Competitive Edge

Meeting Customer Expectations

One area where traditional dealerships excel is in quality assurance. Customers expect meticulously inspected, dependable vehicles when purchasing from a dealership. Unlike the lightning-fast transactions of Carvana and Vroom, which prioritize speed over thoroughness, dealerships prioritize quality assurance.

Before a vehicle is listed for sale, it undergoes a rigorous inspection process to ensure that it meets the highest standards of safety and reliability. From multi-point inspections to detailed cleaning and reconditioning, each vehicle is meticulously prepared to meet customer expectations. This commitment to excellence not only instills confidence in buyers but also establishes dealerships as reliable sources for quality pre-owned vehicles.

Embracing the Hybrid Model

Integrating Online and In-Person Sales Channels

The onset of Covid-19 accelerated the adoption of online car buying experiences among traditional dealerships. By seamlessly integrating online and in-person sales channels, dealerships can offer customers the best of both worlds.

In addition to providing a personalized in-person experience, dealerships have expanded their online presence to cater to the growing demand for digital transactions. Customers can browse inventory, schedule test drives, and even complete the purchasing process entirely online. However, unlike pure online retailers, dealerships offer the added benefit of in-person support and expertise, ensuring that customers receive the guidance and assistance they need throughout the buying process.

By embracing this hybrid model, dealerships can differentiate themselves from digital competitors and position themselves for continued success in an ever-evolving automotive landscape.

Have questions about how you can get your dealership's digital strategy up and running? Contact Us today to get started!

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