/ Motoring

Do car showrooms have a future?

Car showroom vintage

The high street is depleting. The demise of Jessops, Blockbuster and HMV has been a focal point of news this month, but how will car showrooms cope with changing consumer buying demands and requirements?

How we buy cars is adapting very much in the same way as other consumer goods. With so much information and flexibility available online, buyers can make informed purchase decisions without leaving the comfort of their sofa.

Not only can you read reviews of every model you could conceivably buy – including our own car reviews based on controlled lab testing – there’s also a plethora of owner reviews and verdicts to ponder. And since there are full specifications and option lists online, there’s no need to step foot into a showroom to pick up a brochure.

Car buying process – how times have changed

I can remember some 15 years ago as a youngster, traipsing around car showrooms with my father, clutching his list of company car availability for that year. We’d return home with a Rob-sized stack of brochures to ponder, gawping over different interior trims and finger-printing the glossy metallic-paint coloured squares. But all the while we did this, we’d have to piece together how the car would look in our minds.

Things are very different now. In 2013, you won’t find a mainstream carmaker’s website that doesn’t have a model configurator on it. These allow you to select every specification level and option on the car of your desire, and then present you with a rotating, multiple-angled display of exactly how the car will look. Back in 1998, when we finally opted for a ‘Rosso Red’ Alfa Romeo 156 as the next car of choice (which was subsequently horrifically unreliable), I would have spat my Fruit Pastilles out at the thought of being able to do this.

Car showrooms will always have a future

Still, this doesn’t negate our need for car showrooms. Even today, put in the position of buying a brand new car, I wouldn’t make a decision without spending a long time in a showroom, chewing off a salesperson’s ear and getting my hands on the product.

And it’s something the Which? Car team recommends you always do. We’d always advise test driving any model before buying, but there’s also so much more that you can get out of the showroom experience that the internet will never be able to reproduce.

For example, gaining a real understanding of how big a boot is, and taking an everyday item along to see how easy it is to lift in and out of the loading space. Or trying the different entertainment controls available so you can work out if more options will be more of an annoyance. Even taking the kids along is worth doing, so you can see how they find life in the back seats.

But what’s your take on the car showroom? Is it a phase in the buying process that you still partake in, or do you think you can come to a decision without having to remove your gaze from a computer screen?

Comments
Member

To me, visiting a car showroom is a job that has to be done, rather like attending a funeral. For me the worst part is trying to secure a good deal, because I am very uncomfortable about haggling. In contrast it is very interesting to test drive cars and a quick way of information that is hard to find from the manufacturer’s website or from car reviews.

I would love just to browse websites and compare prices online, but a new car is expensive and I want to have the maximum support if I run into problems, as I have done with new cars.

Member
Neil says:
28 January 2013

Don’t know if this has come up in the discussion already, but surely the trump card for the local dealer is the ability to offer a part exchange deal? The real threat is from the cash offer “buy any car” operations but they still represent more hastle than many people want.

Member
Peter Fletcher says:
28 January 2013

There are two types of car showroom, one for the new car sales and another for used cars. The latter will always be on our high street as the product is unique and there will continue to be a very large percentage of buyers that need to touch, feel and drive the car.

New car showrooms are quite different and something that seems to be forgotten in the buying process is that the customer is the one in fear of killing off the high street showroom without fully understanding why. when the decision is made to trot off around the various manufacturers showrooms and gather more information about your next purchase, you will probably take a test drive, speak to a salesman and collect brochures on models etc. Once you have made your choice it then all comes down to price, in most cases anyway as there are very few people that stick to their local dealer because they get a good service. The next step for most is to scale the internet to see what is on offer and it is inevitable that the price will be lower. Your high street showroom is normally run under franchise and has all the outgoings of staffing, purchasing products such as demonstrator cars and the provision of providing a nice warm welcoming building for you to walk around in. The online showroom has none of this and is often a person(s) sat in front of a computer just placing orders with the manufacturer and as such is undercutting the high street showroom. As an ex-car salesman there was nothing more annoying than a person coming into the dealership wanting a test drive of different models and spending the best part of a couple of hours of my time when I knew it was a company car purchase and likely to be purchased through a leasing company rather than ourselves. I am not sure of the percentage of company cars on the road against private ownership but you can bet that most company motors will be provided through some guy sat behind his computer just order taking.

You have three types of car salesperson,
1. A person that has knowledge and pride in what he is selling and as such always gives a good service.
2. A person that is only interested in the sale and has little care about the client and their needs.
3. A person that has little tangible knowledge about what they sell and is only an order taker.

The high street new car franchised showroom goes to great expense to provide local people with the facility to experience first hand the products they offer but if people continue to use this but take their business to the internet then sadly it will be the end of the new car showroom as we know it.
2.

Member

Peter

I have some sympathy, as I did when I heard that Comet was struggling. Unfortunately, the customer is in charge of how they spend their money. In order for the showroom to survive they must provide a service that the customer perceives to be the best option. Even if all salespersons were in your top class, the savings to be made via online purchase are a big attraction. For the moment you have traditional customers like me, who have only ever bought from a showroom and have misgivings about Internet sales.

I don’t want to waste the time of a salesperson. I just want to be quoted a decent price, find out if there are any special offers, and make a couple of calls to other dealers in the region to make sure that I would not save hundreds of pounds by buying the same model from a showroom 50 miles away. Once I know what I want, then I want to drive my chosen model to provide reassurance that I am not making a big mistake. I certainly don’t want to have to repeatedly say that I don’t want paintwork protection, insurance for the wheels and a dozen more things that can amount to a lot of extra money for me and no doubt in bonus for the salesperson. By all means tell me about the options once, but also accept the first refusal. I have generally found car salespeople helpful, polite and well informed, though sometimes a little unwilling to accept that they might be wrong about something.

I don’t expect that dealerships will prosper and perhaps you were right to get out of the business.

Member

Thanks for replying Peter and sorry for ignoring your point about company cars. Obviously that is a very important issue, though not one I have given any thought to.

I think the suggestion in your final paragraph is really the only way forward.

Member

Oops. This was intended as a reply to Peter’s comment below. Sorry.

Member
Peter Fletcher says:
28 January 2013

Wavechange,

I agree with your point that the customer will spend their money with whom and where they want but my point is, how long will it be until there are no new dealerships left because of the business that is being given to the person behind the computer that has done nothing apart from take an order.

I also agree that sales people should accept no the first time but most of these people are on a very small salary £6000 – £8000 and then paid commission. They are also under pressure from management to meet targets and not just with the sales of vehicles but also paint protection, finance as well as other types of extras.

The main point I was trying to make was that a company car buyer will exhaust the facilities of their local dealer and yet they have no control of where the car is purchased from. This is not their fault but when it comes to a company purchasing large amounts of fleet vehicles, they largely do so through an internet based company and as such at the cost to the local dealer. It is a hard situation to overcome as the manufacturer wants buyers to have a good experience when entering a showroom, the franchise is under pressure from the manufacturer to sell a targeted amount of vehicles, the sales staff should treat everyone the same and I hope this is the case every time but somewhere there is a person sat behind a computer with very little overheads that can undercut the dealership every time. It seems that the manufacturer wins everytime!

Getting back to the OP, maybe the future will see a manufacturer open a dealership that provides everything but a sales department, that way they can provide cars for customers to test drive and allow them to sit with staff and build a car but all sales/orders are to be done via the internet and as such the customer experience should be good for the reason that there is no pressure on anyone to achieve targets.

Member
Sophie Gilbert says:
28 January 2013

If buying a house is the biggest purchase we ordinary folk are likely to ever make, buying a car is likely to be the next biggest, isn’t it? At least that’s the case for me, and it warrants a visit to the showroom. Two reasons: I don’t think I could make such a big purchase without seeing (touching, trying) what I’m buying, and for me face to face aftersales service is a must, just in case.

I must say I also enjoy the visits to the showroom. I love the smell of them even! And seeing a brand new car I can’t afford (eg a coupe cabriolet) next to one I’m going to buy in reality (an ordinary super mini) doesn’t make me sad but makes me dream…