The Rise of Online Car Dealerships – How the Industry is Changing

The Customer Experience

According to Donald Guerrero, in a constantly changing digital environment where new businesses are quickly taking over, providing a great customer experience has become crucial for corporate success. Companies have therefore had to change their CX to match shifting consumer expectations rapidly.

For car dealerships, this means integrating data from the different departments involved in selling vehicles to create a seamless omnichannel experience for customers. It includes integrating the dealership’s website, CRM, DMS, and sales platform to ensure data can be accessed and analyzed in a way relevant to customer interactions both online and in person.

For their front-end experiences to compete with those offered by disruptor businesses like Carvana and Vroom and win over new customers, auto dealers must mirror those of these businesses. To satisfy customers, create new revenue streams, and control expenses, they must swiftly find, design, scale, and continuously improve solutions.


Inventory is a crucial part of any business and plays a prominent role in a company’s bottom line. The right amount of inventory can help you meet demand, reduce costs and ensure your supply chain is manageable with goods.

A sound inventory system will track products, materials, and other supplies from inception to sale. It includes raw material stock and finished goods like a new car.

As you might expect, inventory is a highly active part of a business. For instance, a fashion retailer might have to adjust their inventory levels regularly to keep up with seasonal sales patterns.

A warehouse is a conspicuous location for inventory-related technology and tools, including automated guided vehicles (AGVs) and mobile robots (AMRs). These devices can perform basic tasks, like locating and stocktaking items on pallets, to increase efficiency. The real challenge is implementing a sound system that will work well over the long term.


Online car dealers are a rising trend in the automotive industry. They offer a variety of benefits, including easy financing and a hassle-free buying experience.

While traditional dealerships have long fought against e-commerce, new companies are changing the game.

It also shows that the prices are lower than those of brick-and-mortar dealerships. It is because online dealers do not have the exact overhead costs as traditional car dealerships, which means they can sell cars for a lower price than their counterparts.


When car buying became a digital process, dealers sprang into action. They installed new software that lets customers browse inventory, apply for credit, and choose a payment schedule. They offered virtual test drives and arranged “touchless” vehicle pickup and delivery.

But as technology entrepreneurs and carmakers tried to modernize the buying experience, they were often thwarted by franchise laws protecting dealerships from the competition. They faced falling profit margins, consumer complaints, and administrative snags, such as delays in title and registration.

However, online car-buying services sell directly to consumers and platforms.

To remain competitive, dealerships must adopt an entirely new approach to service. To give the customer a good experience, dealerships must abandon pushy sales techniques and turn to a more streamlined, customer-focused strategy.