It's no secret that e-commerce has seen a huge jump in revenue during the coronavirus pandemic, but that online shopping itch doesn't stop at online market places like Amazon
CarGurus found that their numbers of online car shopped have nearly doubled due to the pandemic, jumping from 32% of their shoppers being virtual to 61%. Their stock shares are now trading at double their launch price in June thanks to the pandemic's contactless purchasing boom. Carvana has also seen their market value jump as the online-only seller has been able to bring in more buyers, as well as interest from Wall Street and investors. Meanwhile, CarMax has launched contactless curbside pickup, no longer just an option for take out. This move made them very popular during the pandemic, and includes a free home delivery within 60 miles from a dealership.
While most of these sites are selling used cars, Tesla
Beyond the already established online car sales market, automakers still face difficulties moving away from selling exclusively from dealerships. This is mostly do to laws that restrict direct sales online in some parts of the country. According to Peter Bible, a former executive of General Motors Co.
Now, industry experts expect the traditional model of car sales to fall into the background. Mike Bowsher, owner of Carl Black Automotive Group, expects floor traffic for dealerships to lessen, but doubts it will disappear completely, according to CNBC. With all sellers confirming to an online personal experience and the pandemic boosting online sales, buying a car online has never been more popular.