How the Car Business is Changing

Change: “to make the form, nature, content, future course, etc., of (something) different from what it is or from what it would be if left alone…”

This is the first in a series of short posts on change in the car business. Some changes are obvious. Some changes are hidden. As a third generation car dealer, I believe that our business is entering a period of the most profound and rapid change we have ever experienced — and that is saying something.  Of course, we’re not alone in this. The entire world is experiencing the same thing. My hope is to help you as a consumer to understand the changes going on in the car business, so that you will be empowered to make the best decisions for your own particular situation.

Transparency

Transparency is explained by Wikipedia as follows. Transparency, as used in the humanities, implies openness, communication, and accountability. It is a metaphorical extension of the meaning used in the physical sciences: a “transparent” object is one that can be seen through.

In the car business, access to information and an increasingly efficient market is driving increased transparency.  As a consumer you have access to more information than ever before. Just “Google” whatever you drive now. A search just a moment ago for “2008 Toyota Camry” resulted in 5,580,000 results (that’s way more than the number of Camry’s sold that year!). As you know the quality of the information you have can make a big difference. Automotive consumers have more choices and increased access to information, which leads to a more efficient market. You wouldn’t pay more than the going rate for a publicly traded stock.  Until relatively recently, consumers and dealers alike didn’t have access to this kind of information that they could count on to be accurate.

I have to say all this is a good thing for our business. The car business needs to change and quickly. We have to develop new ways to do business that meet our customers’ needs.

At Doenges Toyota Ford Lincoln Mercury we talk about this all the time. We strive to be leaders in increased transparency of a car deal and upfront dealings with our customers. For an example of how this might work check out our “shopping cart” for automotive e-commerce at http://www.aidealer.com/AiDealerProduction/DealershipInventorySearch.aspx?DealershipId=28

The nuts and bolts of a car deal is just math. The real magic in our business comes from helping people.

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