The automotive process is essentially broken, according to a brand and marketing consultant who says that carmakers should be doing more to capitalize online.
In an interview posted by Mediapost.com, Andrew Pierce, the president of Prophet, says that virtually every other industry can conduct and transact business online except for buying a car.
“The whole process is just really broken,” Pierce said.
Perhaps this is an opportunity for the finance sector to step up and fill the void that is being created by the automotive industry on the purchasing side. Pierce did not mention anything in the article about the financing process, but it has certainly made bigger strides online than the purchasing side of the transaction.
Lenders and carmakers should be doing more to keep consumers from having to visit dealers, Pierce said. The power wielded by dealers actually hurts consumers more than it helps them. The power of dealers also affects the dynamic of bifurcating the financing market into direct and indirect channels. Many finance companies consider dealers their customers and not consumers, which further complicates the process.
Pierce even takes a swipe at a lack of imagination and creativity when it comes to advertising done by manufacturers. Asking about any surprises or excitement that may be coming from the automotive industry during the upcoming Super Bowl, Pierce says that it’s unlikely, since car commercials haven’t changed in more than half a century.
