The sales processes vary enormously from region to region, differing in purchasing duration, the level of dealer integration, and payment. Interestingly, though processes were different from region to region, within a region, they were consistent. Despite advertising with special offers and discount codes as with other online shops, the pricing flexibility customers enjoy in a dealership by bargaining is not yet included in the digital customer journey.
The European online shops generally have a very lean buying process. Buyers can often purchase or finance a car entirely online, though sometimes larger down payments are required, and the remaining amount needs to be paid at the dealership. The dealership of choice executes the handover.
Dealerships play a significant role in the online shop experience in the US. Since the US-market is considered a "stock-car market", online shops display the available stock at all participating dealerships, and by selecting a car, a customer will be directed to a specific dealer. The car can be reserved, credit checked, and payment placed, and then the handover can be at the dealership.
China's OEMs either display their online shop offering on their portal or use providers like chebaba.com to display the offering. After a small down payment, the final payment must be made at a 4S Shop (Sale, Sparepart, Service, Survey), which also delivers the car to the customer. Interestingly, the leading practice OEM in China is again Tesla, applying minor adjust- ments to its mature core process for the local specialties.
Key Facts
OEM operated online shop
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New cars offering (stock and build-to-order)
Display of stock
Down payment for car reservation
Online shop of participating dealers
Full payment/financing online
Car reservation, credit check, payment
Offline payment at 4 S shop
Finalized buy