DealerSocket's 2016 Dealership Action Report reveals that dealers may be overestimating consumer demand to buy vehicles online.
The report says two thirds of franchise dealers believe consumers would like to complete the entire buying process online. But in reality, only one-third of consumers who were surveyed said they'd want to do so.
According to DealerSocket, the data indicated a lack of urgency amongst car buyers, hence their preference for taking the time to visit a dealership rather than purchasing a vehicle via an automotive portal.
"We've seen disruptors in our industry and that's what causes a lot of the articles to be written and the interest in what Beepi and Carvana are doing," he said at the DealerSocket User Summit in San Antonio. "They see that, and you've got the Teslas of the world," which sell online.
"Dealerships have looked at that and said we need to have that experience," he said. But "there are a lot of consumers out there that still are not ready, so it's not a silver bullet yet."