New Car Online Sales

| 2014 | Concept Paper – Batten & Company
The Marketing & Sales Consultants of BBDO Worldwide
New Car Online Sales – Overview

Common questions around New Car Online Sales.
Is online sales relevant for automotive brands?
What are the relevant business models?
Which kind of USP may threat an OEM?
Is there need for action for car makers and if so, how
urgent?

New Car Sales Online Approaches
OEM direct
sales
Special
Editions Only
Focus
on Pre-Sales
Focus on
Sales
(Conventional)
Lead
generating
OEM driven 3rd party drivenDealer driven
Lead
generating
A B C
A1 A2 C1 C2 C3
Framework New Car Sales Online.
e.g. e.g. e.g. e.g.
+
e.g. e.g.

Approaches with different impact on dealers.
Pre-Sales Sales Delivery
DealerOnline
(Conventional)
Lead
generating
DealerOnline
OEM direct
sales
DealerOnline
Lead
generating
DealerOnline
Focus
on Pre-Sales
DealerOnline
Focus
on Sales
DealerOnline
Special Editions
Only
A1
A2
B
C1
C2
C3

Customer is able to configure a new car to be build. Lead will be referred to a car dealer for offline
sales. Mercedes-Benz car dealer or “Niederlassung” will than contact the customer and will send
the final sales contract.
(Conventional)
Lead
Generating
OEM conventional lead generating – Example Mercedes-Benz
- Car configurator and image
in focus
- Conventional lead generating
Uniqueness
Impressions
Sources: http://www.mercedes-benz.de
Used 1 day permission
Stock cars Build to order
X
X
Type of cars
A1
User Experience
Focus


Customer can configure a new car to be build. Customer can file a buying request via the
homepage of BMW. BMW will then contact the customer and will send over the final sales
contract.
OEM direct
sales
OEM direct Sales – Example BMW i
- Direct sales of an OEM to the
end customer
- Only electric vehicles
(i-series)
Uniqueness
Impressions
Sources: http://www.bmw.de

X
X
X
Type of cars
A2
User Experience
Focus

New cars that are in stock at car dealers are being offered online at a country specific homepage.
Once a car is chosen the customer sends a contact request to the car dealer. The rest of the deal
is handled offline.
OEM direct
sales
OEM direct Sales – Example Citroen Car Store
Impressions
Sources: http://www.carstore.citroen.es/Entrada

X
X
X
Type of cars
A2
- High price discounts on the
offers
- Delivery within 10 days
possible
Uniqueness
User Experience
Focus

Possibility to buy new cars. Potential customer requests the price for a car via dealer’s homepage
and generates a lead for the respective car dealer. Customer is being contacted by sales
personnel to handle the deal offline.
Lead
generating
Lead Sales through car dealers homepage –
Example Capitol Toyota
Impressions
Sources: http://www.capitoltoyota.com/usedspecials.aspx#
Type of cars
X
 X

B
- Hassle-free car quote via E-mail
or text message. Stress-free car
buying
- Get information if and when
chosen car is available
Uniqueness
Price
Focus

Displays new and used cars from dealers and private persons. Private sellers can advertise for
free (all Companies but dealers pay 10 Euros more). Dealers can chose accounts for 53.99 € up to
1,336.98 €. Customer selects a car and gets in touch with the seller via email. mobile.de also
generates extra revenue through advertisement on the homepage. Extra options like Top-listing for
an extra fee available (3€).
Focus
on Pre-Sales
Online marketplace and registered dealerships –
Example mobile.de
Impressions
Sources: http://cms.mobile.de/de/haendler_informationen/preisliste.html
Type of cars

 

C1
- Possibility to research cars with
specific blogs and further
information given
- Wide choice
Uniqueness
Choice
Focus

Possibility to set up preferences for a new car of a specific dealer. TRUECar issues a certificate
with a guarantee that the chosen dealer will offer the chosen car for the given price. Customer then
meets with the dealer to close the deal offline. TRUECar charges the dealers $299 for each
successful new-car transaction.
Focus
on Pre-Sales
Example TRUECar
Impressions
Sources: http://www.truecar.com/
Type of cars

X
X
X
C1
- No face-to-face negotiation
process
- Easy understandable price
analysis
Uniqueness
User Experience
Focus

Opportunity to buy new or used cars from dealers and private persons. Customer chooses a car
and gets in touch with the seller via email. Advertising a car costs between £9.99 and £56.00 for
each ad. Earning money through extra advertisement on the homepage.
Focus
on Pre-Sales
Example Autotrader.co.uk
Impressions
Sources: http://www.autotrader.co.uk/
Type of cars


X
X
C1
- Possibility to research cars with
specific blogs
- 3 ways to sell a car – by
yourself, with experts help or to
a dealer
Uniqueness
Choice
Focus

Possibility to configure a new car for leasing or financing with either the option to return it or buy
the car at the end of the leasing period. An offer is send to the customer and if he accepts Sixt
checks customers solvency. After a positive check Sixt sends the request to the car manufacturer.
Direct B2C offer only.
Focus
on Sales
New online car dealers – Example Sixt neuwagen
Impressions
Sources: http://www.sixt-neuwagen.de/
Type of cars

XX
X
C2
- Discounts of up to 56% of the
listed price
- No banks or dealers involved
Uniqueness
Price
Focus

Offers new cars for sale. Either directly refer “ready to buy” customer to dealer or handle the sale
in-house. For in-house sales the cars a purchased from Broker4cars before they sell it to the
customer. The customer gives preferences while broker4cars searches for the right dealer/offer
and contacts the customer afterwards.
Focus
on Sales
Impressions
Sources: http://www.broker4cars.co.uk/mercedes/new-mercedes-a-class.htm
Type of cars

X X
X
C2
- Broker will identify a suitable
car option
- Provide trouble free and
enjoyable car buying
experience
Uniqueness
User Experience
Focus
Car brokers – Example broker4cars.co.uk

Only new cars are displayed. Customer can choose from configuring a car or buying an in stock
car and either leasing or buying it. If the car is configured the details are send to a dealer to settle
the rest of the buying procedure offline. Dealers pay a fixed fee for each successful transaction.
Extra revenue through advertisement on website.
Focus
on Sales
Impressions
Sources: http://www.meinauto.de
Type of cars



X
C2
- Possibility of a live consultation
- Complete manufacturer’s
warranty
Uniqueness
Choice
Focus
Car brokers – Example meinauto.de

Customer configures a new car or selects an in stock car and is transferred to the cheapest dealer.
Buying procedure is then handled offline. Fees for the dealer only arise after a closed deal.
Focus
on Sales
Impressions
Sources: http://www.autohaus24.de
Type of cars
 
X
C2
- Up to 44% discounts available
- Entire sales talk is handled by
autohaus24
Uniqueness
User Experience
Focus
Car brokers – Example autohaus24.de

Customer can configure or select a new car. Possibility to buy or lease a car. After selecting the car
the customer is transferred to a dealer. The buying procedure is handled offline. Dealer can buy a
flat rate to advertise their cars and also promote/advertise the configurator on the dealers own
website (e.g. Pro-package 119€/6 months).
Focus
on Sales
Impressions
Sources: http://www.carneoo-pro.de/
Type of cars
 
X
C2
- Only dealers within Germany –
no re-imports
- High discounts (up to 40%)
Uniqueness
Price
Focus
Car brokers – Example Carneoo

Possibility to search for new or used cars (max. 24 months of use). Offers are displayed online
with the contact information for the dealer given. Option to email or call the dealer to handle sales
offline. Only professional import offers – no private car selling. Additional revenue through
advertisement.
Focus
on Sales
Impressions
Sources: http://www.eu-neuwagen.de/fahrzeugangebote.html
Type of cars

 

C2
- Advertising to have the best
prices for re-imports
- Choose from new cars, stock
cars, employee’s car or used
cars
Uniqueness
Price
Focus
EU Imports - EU-neuwagen.de

Only offering cars available from five dealers cooperating with Car Shop. Possibility to
book/reserve a car. Afterwards customers meet with Car Shop’s dealer to inspect the car and
handle the deal offline. Home delivery is an option.
Focus
on Sales
Impressions
Sources: http://www.carshop.co.uk/
Type of cars
XX

C2
- 7 days money back guarantee
- Live video tours
- Price Match Promise
Uniqueness
Price
Focus
Car Supermarkets - Car Shop

Selling cars through multi-media channels such as reward sites (Amex) or Twitter. E.g. a specific
BMW model has been offered at American Express for bidding within 24 hours.
Special
Editions Only
Impressions
Sources: http://www.forbes.com/sites/hannahelliott/2010/12/15/flash-sales-are-the-new-auto-marketing-stunts/
Type of cars
 
X X
C3
- Very high price discounts
- Attraction and uncertainty
develop high involvement
Uniqueness
Price
Focus
Special Editions Only – Example Flash sales

In general: Three kinds of customer strategies.
User Experience
Price
Choicemobile.de aims
on greatest choice
Hassle-free buying process
(personal agent) Best price for a defined car
If a supplier will succeed in bringing „Choice“ and „New User Experience“ together,
the process of selling new cars might change significantly.

A strong player combining Choice and User Experience may be a “game
changer”.
User Experience
Price
Choice
New players aiming on a new kind of “buying experience” – not longer based on features but on
needs!
Hassle-free buying process
(personal agent) Best price for a defined car
mobile.de aims
on greatest choice
Choice plus UX
may threat
premium brands

Relevance of online sales for an OEM’s digital strategy.
Recent figures indicate that online sales are
of less importance to premium sector
3rd party online providers will not
necessarily be crucial for worldwide sales
within the next 5 years
As today 3rd party online providers are no
threat to OEM‘s digital strategies
Current platforms do not offer „game
changing“ added value to the customers
These figures are not only unreliable, but
could also be subject to quick changes
3rd parties will be very crucial for the
success of an OEM’s overall digital
strategy (as partner or as competitor)
If 3rd parties are able to combine „Choice“
with „User Experience” striking online
players might emerge
If a strong player develops a new kind of
buying experience based on needs, this
may change (from features to needs)
— On one hand — — On the other hand —

Batten & Company GmbH, Königsallee 92, 40212 Düsseldorf, T +49.211.1379-8539, F +49.211.1379-8742,
www.batten-company.com
Düsseldorf • Johannesburg • London • Madrid • Moskau • München • Shanghai • Tel Aviv • Zürich
Christian von Thaden
Managing Partner
Batten & Company GmbH
Königsallee 92
D-40212 Düsseldorf
Fon +49.211.1379.8748
Fax +49.211.1379.91.8748
Mobile +49.177.88.17.555
christian.von.thaden@batten-
company.com

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