Financial providers and automakers are not the only institutions innovating, as the auto industry continues to evolve.
Even dealerships are altering their standard brick-and-mortar models, including Alberta Koch Automotive Group, which is launching Canada’s first e-commerce dealerships.
The dealer group has rolled out the e-commerce platform to three of its four dealerships so far, with the last dealership to be launched next month, Mobility Finance has learned.
Using Alberta Koch Automotive Group’s innovative website, the consumer can reserve the vehicle online, then purchase it with either a credit card, PayPal, or by calling a representative to arrange financing with one of the dealer group’s 10 lender partners — including Ford Motor Credit Co., Jeremy Koch, the dealer group’s assistant general manager, told Mobility Finance. The dealership also offers deliveries.
Alberta Koch Automotive Group is not looking at where the market is right now, it’s looking at where the auto market will be in the future, he said. “We want to make sure we are going where the market is going,” in terms of innovation, Koch added.
And the e-commerce site puts the dealer group “in the right direction” — particularly as autonomous cars come to market, to make sure that Alberta Koch is in a position to take advantage of whatever comes down the pipeline from Ford Motor Co., he said.
Ford plans to bring autonomous vehicles to market by 2021, which could change the way its dealerships operate.
“As we get to early 2020 and the deployment of highly automated vehicles, most — if not all — vehicles will actually be owned by the OEMs and operated through [carshare] services,” Sam Abuelsamid, senior analyst at Navigant Research, said at the Empire State of Mobility conference in mid-April.
“OEMs will actually retain control of these vehicles for the life of the vehicle, partly for liability reasons to ensure the vehicle is properly serviced and maintained, and not serviced with cheap aftermarket parts,” he said.
There is going to be an evolution, and dealer networks in particular will have the opportunity to provide those mobility services and maintenance for the OEMs, Abuelsamid said, “and perhaps charging, or other aspects of deployment of these vehicles, as we transition away from private vehicle ownership to more on-demand mobility models.”
While Alberta Koch Automotive Group may not necessarily become a mobility service center for Ford, the e-commerce dealership model puts the dealer group on the right path, Koch said. By proving the dealership has the ability to evolve and innovate, it shows it can easily adapt to “game changing innovation,” he added.
To learn more about the evolution of transportation, join us at the second annual Auto Finance Innovation 2017 conference, May 17-18 at the Hilton Bayfront in San Diego. Visit www.autofinanceinnovation.com to register or learn more. To request a media pass, contact Skylar Taylor at firstname.lastname@example.org - Reader Likes This Post