Views on Alternative Retail Formats, Vehicle Subscription Services:
Dealers Exploring Both, Consumers Skeptical on Vehicle Subscriptions
Our recently commissioned study with The Harris Poll, which surveyed approximately 200 OEM Dealers and 2,000 Consumers, both in the U.S., dove into alternative retail formats and vehicle subscription services. Here is a sample of the insights we learned. We hope you’ll find them helpful, too.
The Harris Poll survey showed most Dealers are assessing innovative ways to market and sell their vehicles to an increasingly educated buyer. In fact, 89% said expanding their business beyond the traditional storefront isn’t an option — it’s a necessity.
Further proof they are bullish on innovative sales approaches: Compared to Consumers, Dealers are 1.5 times more likely to agree that apart from picking up the actual vehicle, every aspect of buying a new vehicle will be done on-line. And only 7% of Dealers said they are NOT considering at least one alternative retail format.
The majority of Dealers (7 in 10) view vehicle subscription services as an opportunity — and 56% believe they will have a positive impact on their business.
But change can bring concerns as well. In the Harris Poll survey, Dealers predicted the challenges a vehicle subscription service would present to their business. At the top of the list: 45% said the need for new technologies, 39% said a new financing structure and 39% said a change in service operations will be challenges.
Beyond that, both Dealers and Consumers believe cost will be an issue, with 75% of both groups saying vehicle subscription services will be too expensive for most people.
The Harris Poll survey explored Consumer and Dealer interest in Vehicle Subscription Services. In general, Dealers see value in them, yet Consumers are skeptical.
Example: While 65% of Consumers say subscription services are the way of the future and 59% say they make their lives easier, only 35% say they are somewhat or very likely to use vehicle subscriptions. In contrast, 78% of Dealers said Consumers are very or somewhat likely to be interested in them.
Where do they agree? Both said dealerships are the top choice for offering vehicle subscription services. Plus, 87% of Dealers and 77% of Consumers said a trusted dealership will be essential for vehicle subscription services to work.
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