The car on the Internet: as car dealerships established online car sales

The car on the Internet: as car dealerships established online car sales


Photo: Igor Zarembo/RIA Novosti

Russian dealers start sales in Internet now buy and receive the car without leaving the house. To provide this capability to consumers, dealers could only recently — until last year, most transactions took car for cash

About opening an online store selling cars, told RBC President GK “the Favourite-motors” Vladimir Popov. According to him, this is the first case in Russia when all the acquisition of the machine can take place remotely from the machine, paying with a card before delivery “in the house”. “All the operations that formerly required a visit to the salon — drawing up a contract, loan, insurance, etc. — can now be done via the Internet — explains Popov. — According to our forecast, in 2017 we will be able to transfer 20% of new car sales in the online segment.” At the end of 2016, the sales volume of cars of GC “Favorite motors” is expected to reach 28 thousand

Testing online sales and GC “Rolf”, told RBC Director of strategic development Department Sergey Solonenko. In December, the dealer will start to accept pre-payment for the cars online. “We are interested in the first experience of colleagues, but more importantly the understanding of all links in the chain of Internet sales of high-tech products, — the interlocutor of RBC. — From consumer behavior to legislative regulation and setting of business processes. Obviously, if this service is available in the civilized world, sooner or later it will be in demand in the Russian market”.

In early November it became known that another large dealer, group of companies “Avilon”, also launched a scheme to purchase machines with the use of the Internet. The deal can now make cashless, says operational Director of “Avilon” in the direction of luxury cars Vagif Bikulov: customer can through the website to book a car on your card and pay the Deposit but the full price of the car, he pays on the basis of already invoiced, you can use online banking. “The first results we see a big spike in Internet activity during the promotions, when it is important to quickly book a car for a certain price, — said the interlocutor of RBC, calling the main consumers of online services buyers mass brands. “Luxury cars through the Internet has been booked so far, only three before the deal came two,” he added.

Card machine

In order to begin to use the Internet as a sales channel, dealers had to decide the issue by introducing the possibility of cashless payment. Until last year the transaction on acquisition of cars can be carried out mainly in cash. Dealers were not ready to share and acquiring banks revenues: the margin of the dealer in selling the car without additional equipment is 5-7%, while the acquiring Bank was kept to 3-4% per transaction. The same situation in trade in goods of daily demand, but the marginality of the latter is higher.

“The automotive market as the real estate market, almost always been associated with cash payments, because the seller is not interested to lose some revenue, — told RBC representative of one of autoholding. “The client was able to offer the cabin to pay by card, but usually it was offered to pay a percentage of the top amounts, from 2 to 5%” — confirms a top-the Manager of another dealership of the company. “That’s why we do not conduct all transactions online, giving the user only the possibility to reserve the car,” says the Bikulov. The reservation, the client will cost 25 thousand rubles., according to the website “Avilon”.

“Obviously, the payments convenient for customers, says Solonenko (“Rolf” was the first of dealers began to accept non-cash payment for cars).

The situation radically changed in the past year. As told participants of the market, several banks, including Sberbank and Gazprombank, has offered dealers a “more reasonable terms and rates” for the provision of the possibility of cashless payment, from 1-3% of surgery. “This move was prompted by the desire of banks to increase the number of B2B customers of the acquiring segment, but also the desire to obtain access to the end user, because he can “add” more features, but banking bonuses, special conditions, etc.,” explains a representative of one of banks.

As has informed yesterday RBC representative of the press service of Sberbank, since the launch of the project “car card” to the acquiring Bank’s network has connected more than 600 stores across Russia, including the largest — “Rolf”, Genser, “Avtomir” Major and “pan-Car”.

Online instead of salons

According to Bikulov, online services for dealers is the ability to attract new customers in a highly competitive market.

The situation on the market

Pccording to the Association of European businesses, in the first ten months of the year 2016 were sold 1,147 million, which is 13.3% less than in the same period last year. According to the assessment of PwC, to return to pre-crisis level of sales — at least 2 million vehicles — the Russian market will not until 2020, but a positive trend is expected to begin in 2017. The market of cars with mileage, on the contrary, shows growth. In October, the secondary market accounted for more than 4,305 million cars, which is 6.2% higher results in 2015.

According to Vladimir Popov, in the future, almost all sales of machinery should go to the online segment. As an example, he cites the experience of car sales Tesla that you can book and pay all online. “Salons will remain a function of service, sell accessories, components — that is all it is what actually dealers and earn,” he explains.

Conflict of interest with the brands he does not foresee. Now automakers require dealers a number of conditions when sales — area showroom, number of employees, etc. “Many companies understand that Internet technologies will soon determine even such factors as the purchase of machinery, and is ready for concessions,” he explains. According to Bikulov, the development of Internet sales will enable dealers to significantly reduce investment in opening stores and to access new regions. “In the long term this will allow SyteLine to improve business performance dealers”, says the interlocutor of RBC.