Can the dealership survive technology's disruption of how we buy cars?

In the Digital Age, millennials are changing the way shopping is done. Shopping for a car is no different and many people are using car Mobile Apps to help with purchasing cars. As technology grows, will car dealerships be able to survive the way sales are being made? Car dealerships and salesmen are a time-honored tradition. Automotive retail dealerships have remained in business for over a century and have not changed. Dealerships have more competition when it comes to car sales and should keep in mind that shopping with mobile apps is easier if they want to stay in business and not lose money.

Mobile car apps are changing the way business is done.

According to Statista, in 2017, there were an estimated 79 million cars sold in the United States. Trillions of dollars are spent every year buying new and used cars. There are many reasons why Millennials are choosing to shop digitally, busy schedules, more choices are available, convenience, and better savings.

Car dealerships

Dealertrack reports that more than 59 percent use the internet to help research information on automobiles. Consumers are searching for car comparisons, the best savings, financing, and car insurance. It allows the consumers an opportunity to broaden their decision on what to purchase making it easier for consumers to decide what they want.

The first car dealership in the United States started 120 years ago by William E. Metzger in 1898. Car dealerships are typically franchised by car companies to sell and service their vehicles. In the U.S direct manufacturer, auto sales are prohibited and only allowed to be sold through a dealership. Even when you order directly from a factory, the buyer still has to pick up the car from a dealer which is 30% more to the price of the vehicle, reported by Newsweek.

Bloomberg reported that digital apps can help as an aide for dealerships. Car dealers will always be needed to deliver cars. They also will be needed for routine maintenance and repairs. With both dealers and car apps working together it opens the car buying market even more for customers.

Blinker

One mobile car app that is trying to change the way cars are sold is Blinker.

Founder and Chief Executive Officer Rod Buscher, of the Blinker app, wants to change the way car sales are made. Buscher is no stranger to the car auto-industry after working in it for over 30 years. Blinker was created in 2013 and has been growing at a steady rate. They believe in giving consumers the tools to make buying and selling cars easier, safer, and faster than ever before.

Blinker is helping consumers with all aspects of buying and selling cars. Not only do they help provide service from researching to finances. They also connect consumers with private sellers but also to dealerships. The company will also go out of their way for customers and opportunity by a test drive before a buyer makes a commitment.

People who use Blinker do not get charged for the services they provide. Blinker wants to cut out the middleman which brings savings to the consumer. It gives the consumers a large range of choices that were unavailable before. People do not feel the high pressure of a salesman and can relax while shopping.