What Dealership Services Could Be Affected by New Technology?

The future can be a brilliant place of possibilities, but it can also be a dangerous country to navigate.  Nothing is inevitable, and that goes double for anything related to technology and dealership services.

Modern advances in computers, programming, engineering, and AI can change any industry. And when it comes to the automotive industry and auto dealership services, those changes could make or break your business.

There isn’t a single facet of dealership services that won’t be affected.

Insurance laws and services will change with fully and partially-automated cars. Car selling has already changed, considering that every potential buyer can instantly compare prices across an entire state.

1. Ride-Sharing is a Danger to Car Dealers Everywhere

While plenty of technology can help dealers reach more customers, there’s no question that the rise of ride-sharing technology (and perhaps the looming threat of autonomous public transport) could lead to trouble down the road.

With ride-sharing apps like Uber and Lyft becoming more popular (and relatively cheap), the absolute need for a car has significantly depreciated. According to surveys, ride-sharing user penetration has increased from 17.8% in 2018 to an expected 23% in 2022. That could be a huge concern for many dealers. And if top automakers are to be believed, true automation could be as close as 2021. Of course, personal self-driving cars will still be purchased at dealerships, but if self-driving public transportation becomes popular, it could make selling individuals cars very difficult.

2. Specialized Insurance Packages for Technology

While all dealers are familiar with powertrain warranties and GAP, the rise of technology in cars has led to a new form of insurance that should be a part of any dealership services: tech coverage programs.

Automotive consultants like the ACE Group offer stand-alone high-tech coverage programs that cover the various computers, GPS, screens, Bluetooth radios, and other gadgets that are so commonplace in modern cars.

3. Embrace the Smartphone

Everyone and their mothers (literally) are walking around with a globally-connected computer right in their pants’ pocket. And your dealership services should take that fact into account.

Consultants can help you find the right programs and apps that can allow your customers to contact your dealership with ease. Imagine customers being able to schedule a service appointment right from their phone or to access a quick-chat to your salesman to cut a deal.

Modern customers expect everything in their life to be connected, and dealership services shouldn’t be any different.

Technology Is Going to Change the Automotive Industry

While some changes will be more difficult than others, there are plenty of benefits

Consultants from the ACE Group are experts in technology and modern dealer practices. Contact us now to help future-proof your business.

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