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Dealers more tech-savvy, but it's still about people - September 23, 2006
On behalf of the Toronto Automobile Dealers Association, I would like to congratulate Wheels for 20 years of excellent automotive coverage.
This section provides an essential service for the retail automotive sector and consumers.
It's amazing how fast 20 years have gone. In the retail car business, many things have evolved and many have stayed the same.
When I was a young salesperson in 1986, the process of selling cars was much different ? some would say "primitive" ? compared to today.
Sales contracts and lease agreements were written by hand. Fax machines were just starting to appear in showrooms. The Internet and email weren't even on the horizon.
Today, cellphones, pagers and personal communication devices have become necessary tools for salespeople, managers and other dealership staff, and for many customers as well.
One technology that has hugely affected the retail car industry is the Internet. It has empowered customers to become more knowledgeable in selecting vehicles. When customers contact salespeople or visit a showroom today, they possess a wealth of information about makes, models, financing, accessory options, warranties, etc.
As customers have become more knowledgeable, salespeople, too, have had to keep up with the knowledge curve.
The Internet lets reps conduct extensive research on the latest vehicles, industry trends, consumer reports and other information to better serve their customers.
Indeed, salespeople are equipped with a different skill set today than their predecessors 20 years ago.
Car salespeople must now be licensed by the Ontario Motor Vehicle Industry Council and adhere to a code of ethics.
Twenty years ago, OMVIC didn't exist. But as the automotive retail industry matured and initiated consumer-friendly practices and policies, the Ontario government recognized this changing landscape with respect to dealers and their staff.
This led to the council's creation in 1997. Made up of new and used car dealers, consumer representatives and the Ontario government, this body now regulates our industry.
Email, text messaging and other wireless technologies have affected our industry. On any given day, a salesperson routinely sends and receives a vast number of emails and/or text messages to clients and colleagues.
Many customers prefer to communicate only through electronic devices, which is fine with us.
They communicate electronically when they want to buy or lease a new vehicle. They book their service appointments and arrange test drives online.
Another big difference to emerge is auto leasing. In 1986, leasing was almost non-existent in Canada. Today, it represents about 75 to 80 per cent of all vehicle transactions.
It once took five minutes or longer to work out leasing quotes.
Today, a computer generates them instantly.
Today, financing arrangements and credit approvals can be completed within minutes. Two decades ago, the process could take days.
When I was selling cars in 1986, auto makers had minimal direct involvement with new-car dealerships. Times have changed here, too.
Today, manufacturers are intimately involved in dealerships. Some require stores to conform to specific architectural and design themes. Marketing and advertising efforts must be consistent with the branding as laid out by manufacturers.
Auto makers solicit feedback from customers in surveys. They and dealerships place more importance on customer satisfaction than before, making the buying experience better than it was 20 years ago.
But one aspect of selling cars hasn't changed: what I call the "people" aspect of our business. Despite all the electronic aids, our business model still revolves around people.
In the late 1990s, some thought the Net would one day replace salespeople in the showroom. It didn't happen.
My own theory ? shared by many ? is that customers still want to deal with real people when they buy a car. They want and need human interaction, which new-car dealerships provide. The retail car business is still very much a people business.
May Wheels have another 20 years of success!
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