Speaking in an interview with AIM Group strategy director Konstantin Kalabin (LinkedIn profile) at the AutosBuzz conference in Barcelona yesterday, Mark Kehoe (LinkedIn profile), MD at Gumtree Australia, Cars Guide and Autotrader, observed that “classified businesses need to disrupt themselves with transactions.” He added that “Amazon.com launched with first party and later launched third party. It will be similar in automotive, which will eventually be like other consumer goods.” He added that marketplaces needed “to remove friction,” because “consumers demand an Amazon service.”

Kehoe observed that “Dealers are digital laggards, and we provide a platform that is enabling for them.” However, he forecast that just 10% of automotive sales would be fully online in 10 years in Australia. He also noted that car subscription services “haven’t worked very well in Australia, with very low take-up.”

Also interviewed by Kalabin was Joāo Eça (LinkedIn profile), GM at Adevinta’s Coches.net and Motos.net auto marketplaces in Spain. He said that half of Spanish consumers wanted to purchase a vehicle online but they wanted to see it in person first. In essence, they want an omnichannel experience, with at least part of it happening online, he said. He forecast that 80% of cars would be purchased online but collected in person in Spain in a decade, with just 10% of transactions purely online (including home delivery).

Eça noted that car subscriptions were much more popular in Spain than in Australia, with 20% of drivers now using these services. He noted that shorter-term subscriptions of less than three years were particularly popular with local consumers. Around half of Spaniards seeking car subscriptions were interested in electric or hybrid vehicles, with uncertainty over the residual value of these vehicles (with particular regard to battery life) playing a significant role in this, in addition to uncertainty regarding the rollout of charging infrastructure in Spain.

Print Friendly, PDF & Email

Related Articles