How Technology Is Disrupting The Auto Industry
Key Points:
- The next time you want to buy a car or truck, stay home, go online and, scroll through the inventory, then push the buy button.
- What do you mean the computer found the problem right away? I thought you needed to look under the hood first.
- Wholesalers are supposed to drive around and place their bids on vehicle packages. When did bidding from your home computer become a thing?
- It’s not quite a dear john letter, but manufacturers have been put on notice. If they don’t innovate, improve, and comply, there will be setbacks.
Over the last ten years, a noticeable technology shift has gained ground in the automotive industry. For instance, vehicles are becoming smart devices, service equipment with internet capabilities for updating, and introducing electric cars and trucks.
With this increasing momentum, auto dealers, auto auctions, and auto mechanics have had to rethink and implement new strategies, to serve their customers better. With those cutting-edge advancements and leveraging technology, the auto industry continues moving forward.
Selling Cars and Trucks Has Become An Online Phenomenon
Having to go to a car dealership to purchase your new or used vehicle has seen a dramatic shift in favor of the buyer. Instead of sitting face-to-face with a salesperson, customers can easily open their internet browser, scroll through the inventory, and make a purchase.
With advanced technology, the dealership can now provide a higher level of customer service experience not seen before. For instance, a vehicle gets shipped directly to the customer’s front door. If there is a trade-in, that vehicle is picked up and taken away.
That advanced technical purchasing experience allows car dealers to cut back on unnecessary inventory, reduce labor costs, and eliminate expensive marketing budgets. The days of the pushy auto sales guy are rapidly ending because technology put purchasing power back in the consumer’s hands.
Service Departments Now Start A Repair With A Computer
Instead of picking up a wrench, a connected tablet and diagnostic come first. Traditional methods of servicing vehicles have shifted to more efficient, innovative, and advanced techniques. Before, repairs were time-consuming. Now mechanics a working faster.
From replacing and programming car keys to sensors sending information to the electronic control unit, service departments have transitioned. Now they rely heavily on the latest technological advancements to diagnose a customer’s vehicle quickly.
As manufacturers continue incorporating new technologies into their cars and trucks, those updates will also introduce newer internet-connected technologies and equipment. That allows a service department or auto shop to accurately service their customer’s vehicle.
Auto Auctions Used Technology To Save Their Businesses
Like many businesses that need customers and buyers to come to them for purchasing, the pandemic changed all that for auto auctions. Traditionally bidders sit on bleachers or folding chairs at auto auctions, waiting for the next set of vehicles to roll through the auction house.
However, in 2020, that ended for auto auctions. Buyers and wholesalers were prohibited from entering, mingling, and taking their seats. As a result, inventories grew at auto auction lots. In some instances, vehicles were turned away because there was no room for storage.
But thanks to technology, auctioning shifted from location bidding to bidding from the buyer’s home or office screen. The auctioneer was able to use a live internet feed to show the cars and trucks up for bid. That technical advancement also reduced a wholesaler’s traveling expenses to multiple car auctions.
Manufacturers Have Seen The Writing On The Wall
With a global push for more electric vehicles to be made, reduce a country’s carbon footprint, and governments enacting laws and regulations for less fossil fuel use, car manufacturers are feverously turning to the latest technical advancements.
Furthermore, the supply chain issues have also caused car dealers to wait months for new inventory and computer chip shortages for making new vehicles. Due to these setbacks, manufacturers have found ways to use the latest technology to keep cars on the road longer.
For instance, older vehicles require an oil change every 3000 miles. Now, it’s every 5000 to 7000 miles or twice a year. Those improvements, inspections, and vehicle changes have saved consumers and business owners from unnecessary repairs due to the latest technology.
Mainstreet IT Solutions Can Help You Avoid Disruption
Technology disruption for any industry, including automotive, takes off slowly for years. But due to circumstances beyond anyone’s control, technology and the advancement it brings revitalizes an industry.
Whether it’s a car dealer, auto mechanic, auto auction, or manufacturer, eventually, they had to accept that change was better for their operations. As a business owner or a decision maker for your organization, how’s your technology holding up these days? If it needs inspecting or improving to meet the changes in your industry, contact us for proactive IT solutions.
