11:09 am, May 11, 2020
Last night’s statement by the prime minister laying out the sketches of the roadmap for life to return to some semblance of normality indicated that it would be OK for dealerships to reopen as of today.
It still poses problems though… Return to work if it’s safe to do so and if you can’t work from home, was what he said.
As schools are still closed, though, many parents won’t be able to go to work, which means dealerships could open but they may not be able to staff them properly. What’s more there is still confusion around the fact retail won’t open until June – does that include car dealers?
There are other practicalities, too. Social distancing is still to be taken into account, and it may take some dealerships a while to bring in more rigid hygiene measures.
Confusion is still rife within the industry, as reported yesterday (May 10) by Car Dealer Magazine.
However, as we revealed on April 22, dealerships can sell online and deliver, so long as they observe social distancing plus health and safety protocols, so here we look at how car dealers can do business during these difficult and consuming times.
Firstly – the sales! You need to have your website ready for online selling. This isn’t something that can be done overnight, and our friends at GForces says your site must be able to provide ‘full end-to-end transactional functionality’, which means means dealing with finance quotes, part-exchange valuations, extras, delivery and collection details, the ability to reserve a car and more.
What’s most important to think about when it comes to online sales?
While buyers will want a site that’s easy to use, loads quickly and answers their questions, GForces believes it’s the whole customer experience that’s key.
Smith said: ‘Consumers that want to buy online are doing so for a reason, and that typically will be because they do not want a face-to-face sales experience, are time-poor and just want a simple way to conclude the transaction.’
These buyers don’t want to be ‘sold’ a car, but instead want to be in control of how and when they buy. Digital buyers are different, so don’t make the mistake of selling to them in the same way as you always have done.
Smith says it is important that once the deal has been done, the post-transaction element is streamlined and efficient. This means don’t send a salesperson to do the handover and get the documents signed; this is a ‘digital specialists’ role’, believes Smith.
He warns: ‘At no point after the transaction has been completed online should it return to any form of selling to the consumer.’
[Full Car Dealer Live interview with GForces, 42:43]
What does the customer want when it comes to online sales?
This is about car buying when car buyers want to do it – at a time that suits them. And to do that, dealers need to give buyers all the tools they need to complete the transaction online.
GForces chief commercial officer Tim Smith says: ‘Providing clear and simple quotation calculators so buyers can align their monthly budget, giving a guaranteed part-exchange valuation and allowing them to self-appraise their own vehicle, giving options in a checkout to add accessories and to also choose a preferred delivery method are all vital.’
It’s possible to build in finance application software that will provide a credit decision on the dealer website and this is a must.
Smith added: ‘This allows the consumer to control this part of the purchase, which can often be emotive and stressful.’
What’s most important to think about when it comes to online sales?
While buyers will want a site that’s easy to use, loads quickly and answers their questions, GForces believes it’s the whole customer experience that’s key.
Smith said: ‘Consumers that want to buy online are doing so for a reason, and that typically will be because they do not want a face-to-face sales experience, are time-poor and just want a simple way to conclude the transaction.’
These buyers don’t want to be ‘sold’ a car, but instead want to be in control of how and when they buy. Digital buyers are different, so don’t make the mistake of selling to them in the same way as you always have done.
Smith says it is important that once the deal has been done, the post-transaction element is streamlined and efficient. This means don’t send a salesperson to do the handover and get the documents signed; this is a ‘digital specialists’ role’, believes Smith.
He warns: ‘At no point after the transaction has been completed online should it return to any form of selling to the consumer.’
What about car finance – how do we deal with that online?
Just as it is important in your showroom, dealers need to offer easy-to-access finance solutions online. These should include PCP and HP deals and should all be contained in a calculator that clearly explains the payments and the benefits.
Smith said: ‘The consumer embarks on their own self-appraisal of finance as part of the online journey, and as part of this, compliance in line with the FCA’s principles of treating customers fairly is paramount. This is achieved through clear content, signposting and terms and conditions within the website.’
It’s worth getting some expert advice on this so that you don’t get it wrong.
And what about part-exchanges – how do we deal with those online?
It doesn’t have to be an arduous task. You can embed tools for this via a valuation provider that gives buyers a guaranteed part-exchange value.
Smith advises that this is ‘instant’. Risk can be mitigated by adapting terms and conditions to explain that poor descriptions, incorrect mileage, or issues with provenance will reduce the price offered.
You’ll be surprised how fair customers are, though, says Smith.
He added: ‘In reality, consumers are more honest at appraising their own vehicle, especially as they will be aware that it will be checked as part of the handover process.’
What’s the best way to chat to customers online?
Live chat is the best tool to engage with consumers online, and it needs to appear when the customers need it most.
And importantly, you need to be able to man it long into the evenings when customers are shopping on your website.
On that subject, when will customers be looking to buy a car on my website?
You’ll find that the most common time for customers to be looking at online sales is between 7pm and midnight. But as the coronavirus situation continues, customers have more time on their hands, so it’s a pretty even 50/50 split between office hours and after hours.
While they are working out which car to buy – a period that usually takes around six to eight weeks – buyers will be researching across the web. GForces says that dealers offering a full online transaction capability are ‘effectively open 24 hours a day’.
Smith said: ‘Having the ability for a consumer to buy from a dealer when their traditional facilities are closed gives them a unique advantage over their competitors that don’t. More than 50 per cent of the transactions online take place when dealers’ showrooms are closed.’
How do you deal with a part exchange taken from a customers’ home that might not have been cleaned?
During the handover process, ask the customer to leave the documentation and keys on the step in an envelope or resealable bag. Ensure they you pick these up wearing disposable gloves.
It’s recommended that you avoid getting in the vehicle where possible. Ensure you have the correct truck to allow for ‘recovery’ of the part exchange and the vehicle can be ‘deep’ cleaned back at base. This is where professionals can certainly help as it’s unlikely your dealership will have the correct equipment.
Ensure you take pre and post loading pictures of the vehicle that can be shared with the customer once the vehicle has arrived back safely at the dealership.
Can two members of my staff take the customers’ car and then drive back together?
No. That would contravene social distancing regulations as your staff members would have to be in the car together after dropping the customers’ vehicle off. Trade plate movement companies we have spoken to have said they are not operating in this way because of the risks. One-person vehicle transportation is really the best and safest method.
Dealers planning on offering a click-and-collect service should heed government advice on how to do it safely.
As reported by Car Dealer Magazine, the decision to offer a click-and-collect style pick-up solution to remote car sales is down to individual dealers.
There still isn’t a definitive answer as to whether it is strictly allowed under the rules – with even legal experts from the same company, Lawgistics, unable to agree on whether dealers can, or can’t, do it.
However, with the advice that it is up to the individual dealers to decide – based on their own legal advice – many dealers will be offering a click-and-collect style service to customers.
One boss of a large independent business told Car Dealer: ‘We can’t see how it is any different to what B&Q and others are doing – with the right social distancing measures it can be done safely and far more efficiently than home deliveries.
‘We have big showrooms and by offering customers the chance to come in on an appointment-based set-up we can manage the risk. We still haven’t decided what to do, though.’
While his point about B&Q is interesting, it shouldn’t be confused with an excuse for opening a showroom
What is the advice around collections of cars?
Where customers are collecting items, the government says they should have staggered collection times.
When customers whose orders are ready enter, they should come in one at a time to collect their order and make payments (if they haven’t already been taken online), maintaining a safe distance. Where queuing is taking place, you should use queue management systems to maintain a safe distance.
What about deliveries?
The government says, for retailers or restaurants running a delivery service, you should advise all delivery drivers that no goods or food should be physically handed over to the customer.
There should instead be a set drop-off point agreed in advance.
After ringing the doorbell, the driver should maintain a safe distance from the door and oversee the delivery of the goods. The goods should not be left unattended.
You should introduce a way for customers to be able to notify your business that they are in self-isolation or are unwell in advance of the delivery, in which case these guidelines should be very strictly followed. The driver should not enter the customer’s property.
To minimise the risk that a customer does not answer the door, sensible steps such as setting an approximate delivery time and gaining a contact number should be taken.
You should advise drivers to wash their hands using soap and water for 20 seconds as regularly as possible, and drivers should be given hand-sanitiser to be carried at all times and used after each delivery.
To protect your staff, you should remind colleagues and drivers daily to only come into work if they are well and no one in their household is self-isolating.
While this advice about deliveries hasn’t been specifically written for car dealers – it is for retail overall – it could be used as guidance for those planning home deliveries or a click-and-collect service, as guidance.
To protect your staff, you should remind colleagues and drivers daily to only come into work if they are well and no one in their household is self-isolating.
If a dealer chooses to get a staff member to deliver a car what should they tell them?
Wear the most appropriate level of personal protective equipment, probably limited to gloves right now, but keep an eye on the government guidelines around face masks as this advice looks likely to change as they lockdown rules relax.
From a personal hygiene perspective, they need to ensure that they are adhering to the guidelines around hand washing.
How do you deal with a part-exchange taken from a customer’s home that might not have been cleaned?
During the handover process, ask the customer to leave the documentation and keys on the step in an envelope or resealable bag. Ensure you pick these up wearing disposable gloves.
It’s recommended that you avoid getting in the vehicle where possible. Ensure you have the correct truck to allow for ‘recovery’ of the part-exchange and the vehicle can be deep-cleaned back at base. This is where professionals can certainly help as it’s unlikely your dealership will have the correct equipment.
Ensure you take pre- and-post loading pictures of the vehicle that can be shared with the customer once the vehicle has arrived back safely at the dealership.
We’re not set up for delivering cars to people’s homes – what can we do?
Firstly, you need to take advice on the Consumer Contracts Regulations, which have replaced the Distance Selling Regulations, as these are onerous and come with added rights for the car buyer, which could cause you problems in the long run. Speak to the experts at Lawgistics or your company lawyers to get the correct procedures plus terms and conditions in place.
Our website’s Advice section has guidance on a wide variety of topics
-
- Join our WhatsApp group to get updates sent straight to your phone. Email us via the website here to get a link to join.
