Virtual dealership open doors to new opportunities

Vehicle distribution and delivery systems will undergo a fundamental change as consumers purchase more and more vehicles on-line rather than off dealer floors. Some 83% of respondents in the Americas to the 12th annual KPMG Global Automotive Executive Survey believe that internet sales will grow, according to Gavin Maile, Africa automotive director of the KPMG Automotive Practice. In contrast, respondents from Asia expect the traditional dealer model to remain strong in countries in that region. South Africa currently has a mix, with the online sales primarily in the used car segment that was pioneered by McCarthy Call-a-Car. It sells both used and new vehicles online. It now has stiff competition. Auto Trader has nearly 40 000 vehicles available, the Imperial group has Imperial Select, and cars.co.za has over 23 000 cars for sale. Other online sites include AutoWorld, Automart, Netwheels and Autofind. Most dealers also have a strong on-line presence. None of the sites visited by FTW highlight delivery options – which possibly presents an opportunity for car carriers. In the United States, for example, new and used vehicles are delivered off-wheel to the door of the purchaser.