Why used digital disruptors will drive change but established players will dominate

Advertorial: Recently, digital disruptors entering the used car market have made a lot of noise. They are well-funded, agile, fast-moving, and probably here to stay – but we at iVendi believe that established dealers and lenders are overwhelmingly likely to remain dominant.

Why? Because these existing businesses are able to provide consumers with the best of both worlds. That means a hybrid digital and physical experience, something which the overwhelming majority of car buyers want today and arguably, will continue to do so.

What we believe will happen is that digital-only retailers are ultimately likely to follow a journey similar to disruptors in other markets who have introduced new and superior technology that excited consumers and caused new approaches to be adopted.

A good analogy is car audio. Most cars were once supplied without any kind of head unit and a pretty mediocre stereo radio cassette was a manufacturer option. This created a space for hi-fi manufacturers such as Sony, Pioneer and Clarion to enter the sector. They provided aftermarket systems that were superior - but how long did it take for the manufacturers to incorporate competitive options into their production lines? In reality, not long. This resulted in the demise of the aftermarket in-car entertainment sector.

This illustrates how established industries sometimes take time to change but when they do, they typically became dominant. Following this pattern, 2022 could prove the tipping point for the wholesale deployment of digital solutions by established dealers and lenders. The need to provide customers with a fully connected digital and physical journey is no longer a ‘nice to have’ but an essential if the traditional players are to continue to enjoy success, remain relevant in modern day retailing and futureproof their positions.

Providing the consumer with the best of digital and physical experiences will ultimately win out and this is the area where iVendi has been concentrating its efforts with our Connected Retail technology, which has been adopted by several major lenders and their dealers.

For us, the really significant aspect of the arrival of the disruptors is that they are catalysts for change. Their vast marketing spend is helping to educate and facilitate a transformation in consumer thinking when purchasing a used car online, helping to bring about genuine movement in a sector that hasn’t fundamentally altered a great deal in over 100 years.

However, while we are certain that many of them will enjoy commercial success, we are also ultimately confident that the overall winners will be established players. Traditional dealers working in partnership with their lenders will triumph in the race to dominate digital, automotive retailing.

The iVendi Connected Retail range

ENGAGE

Is designed to help consumers find the right vehicle by rewriting the rules for online car, van and motorcycle search using the natural language adopted by the majority of vehicle buyers.

CONVERT

Facilitates the process of transforming initial online consumer interest in a vehicle into a sale through a range of essential features.

TRANSACT

Develops online consumer interest in a specific vehicle through to a final transaction while managing the complexities of the sales process and includes iVendi’s innovative Digital Deal.

About iVendi

Founded in 2009, iVendi is the market leader in motor retail technology both in the UK and internationally. With a connected, modular product range which engages consumers, converts buyers and manages transactions, iVendi technology interacts with around five million consumers every month and thousands of motor retailers, manufacturers and finance providers. The company is based in Colwyn Bay.

Visit www.ivendi.com, e-mail enquiries@ivendi.comM or call 0345 226 0503.

Paul Bennett, Senior Vice-President of International Business and Banking Alliances at iVendi