Technology investment cost is ‘threat to dealers’
Car dealers are becoming increasingly concerned about the need to invest in technology to maintain growth in their business, new independent research* from the UK’s leading independent automotive finance company Santander Consumer Finance shows.
Around 30% of dealers believe the cost of technology investment is a threat to their business’s future growth and profitability with the launch of ‘click to buy’ websites by manufacturers seen as a growing threat by one in three (32%).
Car buyers support the increased use of technology and digital sales – up to two out of five (38%) want to be able to buy directly from car manufacturers while a quarter (24%) would like to be able to buy their next car online.
Santander Consumer Finance’s research shows dealers provide real value – 64% of buyers say the service they received from dealers was very good when they last bought. But dealers admit they need to do more to strengthen their relationship with customers – more than half (55%) believe rivals have better customer contact strategies.
Andy Green, director of marketing and innovation at Santander Consumer Finance, said:
“Technology is driving structural change across the motor industry and dealers have to work hard to provide the service and connectivity that car buyers expect which means being on top of technological change.
“Dealers clearly already provide an excellent service with around two out of three buyers leaving showrooms happy with the customer service they have received. But dealers also need support from partners such as finance providers to ensure they can continue to offer the service customers expect.
“We believe there is an enormous opportunity to help our dealers prosper and deliver mutual sales growth by investing in technology and are committed to supporting dealers and customers in enhancing the car buying process.”