Competing with online retailers for better dealership growth

Until recently, buying a vehicle without a test drive or seeing it in person was rare. Online vehicle transactions typically involve older models or cars intended for parts or projects. Most buyers preferred to visit a dealership to inspect the vehicle, ask questions, take a test drive, and finalise the sale in person. As a result, dealership growth heavily relied on these traditional in-person shopping experiences.
The COVID-19 pandemic changed everything. It redefined how people work, shop, and communicate. Virtual meetings replaced physical workplaces, and online car sales gained traction. Dealerships responded by improving their websites, offering online purchasing as a premium service, and delivering vehicles directly to customers’ homes.

Soon, online-only dealerships emerged, allowing customers to buy, trade, or sell cars entirely from home. At one point, nearly 75% of Australians said they would consider buying a vehicle online.

This shift has created a new challenge for traditional dealerships: how to compete with a streamlined, door-to-door buying process. The good news? The in-person experience still matters, but dealerships must adapt and deliver a seamless blend of digital convenience and face-to-face service.

Here are some strategies to support dealership growth in this evolving landscape.

Invest in Your Online Presence

Your online presence is no longer optional, it’s essential. Research shows that 80% of a buyer’s journey now happens online before they speak to a salesperson.

Your website must be fast, intuitive, and up to date. It should allow customers to browse inventory, learn about vehicles, ask questions, and book appointments or test drives, all without picking up the phone or stepping into the showroom. If your website doesn’t make these steps easy, potential buyers will look elsewhere.

Use Technology to Create a Seamless Experience

Technology is key to delivering a streamlined, profitable customer journey. A strong digital experience encourages customers to engage with your dealership before they even arrive.

Offer tools that make it easy for customers to browse, compare, and reserve vehicles online. Use incentives to drive online leads into your showroom. Reassure buyers that visiting in person will be simple, safe, and worthwhile.

Sales software like SalesLogs can also enhance your internal processes. Set clear goals, keep your team aligned, and monitor your key performance metrics in real time, all of which help drive stronger outcomes.

Increase Sales Despite Inventory Challenges

Inventory shortages are still impacting the industry, but they don’t have to stall your sales.

Start by optimising your inventory, organising it efficiently and highlighting high-demand vehicles. Train your team to showcase the value of what’s available and guide customers toward alternatives if their first choice isn’t in stock.

Transparency is critical. Be upfront about availability and wait times. Customers will appreciate the honesty, and it builds trust. Focus on providing a smooth, well-communicated experience, and you’ll turn inventory challenges into opportunities for growth.

Extend Your Reach and Sell More Cars

Your digital reach goes beyond your website. A strong social media presence is just as important to keep your dealership front of mind and drive traffic.

• Maintain a consistent, on-brand presence across platforms
  
  
• Post regularly and respond to questions or comments
  
  
• Share content that’s informative, entertaining, and worth sharing
  
  
• Include clear calls to action in all posts
  
  
• Use third-party platforms like Carsales to expand your visibility 

Make the online experience feel just as welcoming as the in-store one. And once they’re in the dealership, ensure your team delivers a frictionless, customer-focused process from start to finish.

Final Thoughts

The rise in online car buying was driven by necessity, but it’s here to stay because of convenience. Many customers are now willing to skip test drives entirely if it means saving time.

To grow in today’s market, dealerships must meet buyers where they are, both online and in person. By improving your digital experience, offering exceptional service, and using the right sales tools, you’ll position your dealership for long-term success.