Remember when buying a new car meant spending entire weekends traversing dealer lots and haggling with salespeople? As auto manufacturing embraces digital, those days are disappearing in the rearview mirror.
J.D Power reports an incredible 97% of car shoppers now research potential purchases online before ever setting foot in a dealership. And according to PwC projections, nearly half of all car sales will happen via ecommerce channels by 2030.
In this guide, we explore how five global automakers are leading the charge to transform online car buying from niche novelty to customer expectation…
The Rapid Rise of Automotive Ecommerce
McKinsey estimates that online sales currently influence about a third of all car purchases in North America and Europe. And that share expands yearly as shopper comfort with transacting high-dollar items digitally improves.
| Year | New Car Sales Influenced Online |
|---|---|
| 2017 | 25% |
| 2020 | 33% |
| 2025 (projected) | 50% |
A 2021 study by Cox Automotive surveying 2,000+ consumers found over 56% are willing to purchase their next vehicle 100% online. And for younger groups like Gen Z/Millennials, that interest jumps closer to 70%.
Buyers highlight benefits like:
- Being able to shop outside normal dealership hours
- Customizing vehicles to exact preferences
- Comparing pricing and deals across wider inventories
To capitalize on this demand, smart automakers are racing to stand up robust online buying pathways…
BMW: Pioneering Online Car Transactions
As a luxury performance brand, BMW caters to time-constrained, tech-fluent consumers who welcome digital retail innovations. So starting back in 2015, BMW got to work bringing 100% online car purchases to its global fanbase.
That early move provided BMW significant first-mover advantages in the space. Since launch, BMW Online Retail has seen usage steadily climb thanks to positive word of mouth.
| Year | Online Retail Transactions | % Change |
|---|---|---|
| 2016 | 137,000 | – |
| 2019 | 250,000 | +83% |
| 2022 | 376,000 | +50% |
And feedback remains glowing, evidenced by a sampling of verified purchaser reviews:
"I‘m so glad I chose to buy my new X3 through BMW Online Retail! My client advisor was with me every step of the way via text and email. The whole process only took about 25 minutes total. I‘d recommend it to anyone looking for easy and fast car shopping." – Stacy D., Boston MA
"BMW made buying a car online painless, convenient, with exceptional customer service." – Hank R., Denver CO
With its headstart solidified, BMW seems poised to remain the online leader among luxury makes for years to come. But others are moving aggressively to carve out share…
Chrysler: Delivering Omnichannel Vehicle Purchases
Chrysler has taken a blended approach to online sales – mixing digital and in-person elements to meet diverse buyer expectations. The automaker rushed its Chrysler E-Shop platform to market in 2020 as the pandemic (and demand) hit an inflection point.
And that nimble product development has paid major dividends. Since launch, Chrysler has measured over 20% more online referrals turning into sales thanks to E-Shop streamlining early research stages.
Industry analysts have praised the effectiveness of Chrysler‘s omni-channel setup:
"Chrysler struck an ideal balance between self-service online that leads into a human-guided final purchase phase. That combined model acts as a bridge as both consumers and automotive retail continue advancing their digital capabilities long-term." – Larry Dominique, Principal, PwC
While not as instantly transformative as BMW‘s push straight to end-to-end online transactions, Chrysler‘s priorities now clearly sit solidly in advancing online and laying the groundwork for full ecommerce enablement down the road.
Jaguar Land Rover: Luxury Goes Digital
Jaguar Land Rover occupies an interesting middle ground in the luxury vehicle market – blending prestige with an adventurous, active spirit. And the British brand has innovated heavily on tech and online channels to match those sensibilities.
Each of Land Rover‘s 165+ global retailers maintains advanced online stores allowing customers to:
- Securely save design configurations
- Initiate contactless test drives
- Submit refundable custom orders
- Choose from flexible purchase plans
Land Rover also provides digital tools assisting retailers in managing online lead engagement all the way through final delivery.
And the company reports consumers have responded positively, with over 20% of all Land Rover sales now originating online. As digital capabilities expand, Land Rover expects that share to rise to 35-40% by 2025.
"Our clients view transacting online for large purchases like vehicles as the new normal. We are committed to not just keeping pace with their expectations, but anticipating emerging needs and behaviours. Our online stores and buying journeys reflect that priority." – Finbar McFall, Customer Experience Director, Jaguar Land Rover
Ford: Driving Dealer Digital Upgrades
Unlike luxury players, Ford faces a much larger franchise distribution network to get aligned around online sales. But via its Ford Blue Advantage program, the brand takes tangible steps on its ecommerce roadmap.
The initiative launched in 2020 presses dealers to:
- Publish online inventories to Ford.com
- Utilize digital tools for trade-in valuations and financing pre-approvals
- Offer home test drives and delivery finalizing sales
And Ford.com provides shoppers a complete picture by:
- Allowing custom configuration of vehicles to exact preference
- Displaying pricing and incentive eligibility in real time
- Providing a smoother transition to local dealer websites
So far Ford has measured promising results, including:
- 1.3 million online leads passed to dealers in 2022
- Online showroom traffic converting at 2-4X higher rates
And the company continues prioritizing further digital retail enhancements into its future.
"Transitioning sales online is imperative for the Ford brand. We are devoting tremendous resources into platforms, content, analytics, and performance tracking to create seamless omni-channel buying of our products." – Andrew Frick, VP Sales, Ford
Tesla: The Online Car Buying Benchmark
No conversation on automotive ecommerce is complete without the category‘s undisputed pioneer – Tesla. As a natively digital brand, Tesla sells every single one of its vehicles online.
And the capabilities they‘ve built set the benchmark for seamless buying journeys:
- Mobile app enables complete purchase workflow from order through delivery
- Customers complete contracts and payments fully electronically
- Tools provide instant trade-in values, financing rates, insurance bundling
- AI-optimization matches inventory to customer compatibility
Beyond just selling online better, Tesla is also cutting out more middlemen. The company continues expanding direct ownership of showrooms, service centers, and charging infrastructure.
Those commitments have cemented stunning dominance for Tesla, capturing:
- 79% share of the U.S. EV market
- World‘s highest brand value among auto makers
- Over 1.3 million vehicles sold globally in 2022
And set the course for the future of the industry. Within 10 years, experts predict 1 in every 12 cars sold globally will be a Tesla. That emerging monopoly will force the rest of automotive to further prioritize digital-first retail models to compete.
As consumer receptiveness to transact big tickets online accelerates into overdrive, legacy constructs like auto dealership lots feel increasingly archaic. BMW, Chrysler, Jaguar Land Rover, Ford, and Tesla provide blueprints for the integrated digital/physical ecosystems automotive must embrace.
For shoppers, that means purchasing your next ride may only require a phone, internet connection, and driveway. No pushy sales folks required!
