Tesla, which has been selling cars 100% online for years now, is the first digital native company in the motor industry. But globally, for car manufacturers and dealers, selling online has been an objective for years, one which seemed unattainable. However, the COVID-19 crisis has been a game changer, and during the successive periods of lockdown experienced in Europe, innovation has flourished in this domain. Click-and-collect, home delivery, digital buyer’s journeys have been put in in place, and now in France over 10% of cars are sold online .

Only over 10% of used cars are sold online

So given this difficult context, why only 10%? The market has been shifting more towards used cars, which are, by essence, more difficult to sell online. However, a study by Carnext1 shows that men between 35- and 44-years old living in the Paris region, are those most likely to buy a used car online. Around 45% of them are ready to take the plunge.

The factors that could tilt the balance are:

• the possibility to benefit form a home delivery
• a 14-day money back guarantee
• a complete professional car inspection

Traditionally, the two things which have slowed down the development of online car sells are car trade-ins and financing, both part and parcel of car sales.

Is 100% digital Financing difficult to put in place?

What is necessary for 100% online lending and leasing:

1. The internet
2. 100% online Financing customer journeys

Considering the amount of time spent on Netflix during this pandemic. The former does not seem to be an issue. The latter can be incredibly easy, or a nightmare:

1. Financing relies on an old Core System on which digital customer journeys are being built. Good luck, it will be long and expensive.
2. Lending and leasing rely on a cloud native System: just switch on the option!

1. Source L’argus Covid-19. Quel impact sur l'usage et l'achat automobile en Europe ?, 7 septembre 2020

2. Source Data Car ecommerce l’avenir du secteur automobile