Unlocking a world of possibilities: Expanding market reach with virtual new car buying platforms

By Gaurav Aggarwal, Founder & CEO – CarLelo (A Capri Loans Venture)

Globally, the automotive industry has been witnessing significant change in the past decade due to technological innovations. By 2026, India is expected to emerge as the world’s third-largest car market. The Indian automobile market is anticipated to touch $160 billion, rising from $100 billion in 2021, recording a CAGR of 8.1 percent between 2022 and 2027.
Meanwhile, the new car market is undergoing a revolutionary change from offline to online sales. As a result, the days of always visiting several dealerships and bargaining for discounts may soon be a thing of the past. The advent of online new car sales is providing consumers with greater choice, more convenience, higher transparency and extremely engaging virtual experiences.

Single-Stop Online New Car Buying
Today, virtual new car buying platforms offer prospective customers a one-stop solution to contact multiple dealers and browse through a vast catalog of numerous brands showcasing a range of new car models. Buyers no longer need to visit physical showrooms to check out the latest models.

Instead, they can view them from the comfort and safety of their homes by visiting virtual showrooms of either multi-brand car dealers or specific brand dealerships. Within a few clicks, prospective buyers can smoothly explore a wide inventory of vehicles, compare prices and obtain precise details regarding different models.

As per their needs and preferences, buyers can make well-informed decisions since online platforms provide all details, including variants, features, mileage and other specifications. Buyers can decide what new car suits them the best after making comparisons with various models. Whether it’s a hatchback, sedan, SUV, MPV or any other category, this process helps them narrow down their choices. All of this without making several visits to dealerships or undertaking prolonged negotiations.

In essence, online platforms connect potential buyers with local car dealers. Thereafter, buyers can enjoy virtual views of curated car catalogs and compare the rates among different dealers. After this, buyers are well placed to select the car that meets their lifestyle and budget requirements.

Virtual Showrooms and Personalised Services
Virtual showrooms have taken on a meaning of their own after advances in immersive technologies such as VR (Virtual Reality) and AR (Augmented Reality). By transporting potential buyers into a lifelike virtual environment, virtual showrooms allow people to explore cars with a relative feeling of scale and perspective. The degree of immersion and engagement is completely elevated when people visualise various colour options and interior configurations. Indeed, with VR applications, customers can take virtual test drives, creating a more captivating and interactive new car-buying experience.

To expedite the purchase process, online platforms may also provide a local representative to connect the digital and physical realms, adding a human touch element to the online experience of buying a new car. Acting on the buyer’s behalf, local representatives facilitate seamless, transparent transactions. The knowledge, expertise and advice of local reps help customers move through the varied steps required, right from the selection of the proper car to its final purchase.

However, the handholding of new car buyers does not end there. As the purchase is being closed, online platforms help buyers select the most competitive and comprehensive financing option. Emphasizing the importance of a low rate of interest, these platforms highlight the advantage of choosing a public sector bank over a private bank. In addition, they provide valuable insights into various financing plans and assist buyers in making informed decisions tailored to their financial preferences and needs.

One of the biggest benefits of buying a new car online is tremendous transparency and the plethora of information available on the internet. In the pre-digital era, the lack of transparency and the strong sales ploys of dealers put buyers under intense pressure to buy immediately or at the earliest. Thanks to this transparency, online platforms enjoy a higher trust quotient with potential new car buyers, streamlining and speeding up their decision-making.

Benefits for Dealers and Auto Companies
Besides buyers, dealers benefit in various ways by switching to online sales to complement existing brick-and-mortar showrooms. To begin with, unlike physical showrooms, virtual ones do not require large real estate infrastructure and numerous salespersons along with other physical assets that inflate their overall operating cost. In time, virtual showrooms can reduce overhead expenses and improve profitability.

Online platforms also help auto dealers and companies target a wide catchment area with potential customers via websites, social media platforms and allied online channels. Through online advertising, auto entities can also target specific cohorts and appeal to a larger audience to widen their reach.

What’s more, digital experiences and interactions generate vast amounts of valuable customer data. Through data analytics, deep insights can be gained on customer preferences, their habits, the latest trends and engagement levels. Based on this data, marketing strategies can be revised to reach out to target audiences more effectively. Such data is also useful for automobile companies to tweak their products according to customer preferences.

As digital technologies keep evolving, virtual car showrooms and the attendant advantages will transform the online new car buying experience, making it more engaging, enjoyable and experiential.