Imagine an world where you could buy your next car on your laptop in the comfort of your home. After casually browsing models and pricing options online in your pajamas on a Saturday morning, you complete a few forms, submit a down payment, and schedule delivery from a nearby dealership without ever having to negotiate with pushy salespeople or haggle over options and fees.
While this digital, no-hassle approach may seem far-fetched to some gearheads, it‘s the new reality for a growing segment of auto consumers buying their next ride completely online. Major automakers have invested heavily over the last decade to enable just such a streamlined, fully-digital vehicle purchasing experience.
In this comprehensive guide, we‘ll explore the top manufacturers selling cars via their own ecommerce websites and online stores. You‘ll discover how each brand is integrating digital retail capabilities to modernize the customer journey while still leveraging their statewide dealer franchise networks. Let‘s examine the key purchase steps, pros and cons, and future direction of OEM online buying platforms.
The Steady Rise of Online Car Purchasing
It‘s no secret that digital has revolutionized auto retail just like it has upended so many other consumer industries. A pivotal Cox Automotive study found that nearly 75% of all vehicle buyers conduct at least half of their research online before visiting a dealer. That number jumps to 90% for high-income consumers planning to spend over $50k on their next ride.
Additionally, over 30% of new car shoppers state they would complete the entire buying journey online if given the choice by manufacturers. That‘s quite a shift from two decades ago when auto shopping happened solely face-to-face on the dealer lot.
So what‘s driving this accelerating transition online for car buyers? Consumers cite perceived conveniences like:
- Researching makes/models on their own flexible timeline
- Comparing pricing and vehicle configurations side-by-side
- Identifying incentives and special offers instantly
- Applying for financing early to understand budgets
- Completing paperwork digitally to speed transactions
- Scheduling no-contact test drives and delivery
Armed with product information and pricing transparency from the internet, today‘s auto consumers have higher expectations for on-demand experiences that fit their busy lifestyles. Online buying delivers the flexibility and efficiency they demand.
In response, forward-thinking automakers have made significant investments in ecommerce platforms and connected retailing capabilities over the last several years. What began as small pilot programs on a few brand sites has rapidly grown into full-fledged online stores across the mainstream industry.
| Year | % of Brands with Online Buying |
|---|---|
| 2017 | 25% |
| 2019 | 48% |
| 2021 | 76% |
And this is only the beginning. Analysts at JD Power predict that 12% of all new vehicles will be acquired completely online by 2025, translating to 17 million ecommerce-influenced sales.
How OEM Online Stores Blend with Dealers to Enable Seamless Purchasing
While shopper survey data clearly indicates strong demand for digitized car buying, the role of longstanding dealership franchise networks remains critically important in most cases. Very few mainstream brands have launched online-only direct sales models that cut out the middleman retailer.
Instead, smart OEMs are taking an omnichannel approach – blending robust ecommerce vehicle search/selection tools with offline dealer partnerships to handle field inventory, localized test drives, trade-in appraisals, final delivery logistics and that critical last mile customer experience.
This blended model provides consumers the simplicity of buying online while still retaining access to licensed sales professionals that can walk them through vehicle specifications, pricing breakdowns, add-ons or accessories questions, financing details, andinstructional product orientation before driving home their shiny new ride.
Dealers also manage dynamic local inventory for test drives and overnight home delivery, which isn‘t always reflected accurately on OEM sites. Their lots also facilitate vehicle trade-ins – a key step for many buying new cars.
So while the online component brings convenience and efficiently handles early education, research and paperwork, dealerships remain highly integrated into most digital manufacturer purchase programs once customers get further down the sales funnel.
That said, a few industry pioneers like Tesla operate as much as possible through centralized company-owned retail locations that overseem everything from inventory to test drives to paperwork filing to vehicle preparation and delivery. But they remain the exception, not the rule.
5 Top Automakers Selling Online Today
Most major vehicle brands now provide at least a basic online checkout capability to accompany their product configurators and dealer finder tools. However, a few OEMs stand out for truly modern purchase platforms that allow customers to complete nearly the entire buying journey digitally.
Let‘s explore 5 manufacturers leading the online sales revolution and how their proprietary sites enable streamlined ecommerce transactions from virtual vehicle builds to purchase orders to financing and delivery:
BMW
Luxury brand BMW launched its Flexible Online Sales system back in 2015. The digital store allows buyers to browse local inventory listings, customize builds, view buyer incentives, apply for financing, file paperwork electronically and coordinate no-contact delivery with their nearest franchise dealer.
The site even connects shoppers live with product experts at regional retailers that can answer questions, provide quotes and support the purchase remotely via phone, email or real-time webchat.
Over 95% of BMW dealers now facilitate online orders and deliveries originating from the OEM digital store. This deep integration between BMW‘s own ecommerce platform and participating franchise retailers powers a flexible, customer-centric online buying journey.
Chrysler
Chrysler debuted its E-Shop program at the peak of Covid lockdowns allowing customers to complete most steps of the buying process digitally. The portal lets visitors configure vehicles to exact specifications including colors, wheels, interiors and tech packages before displaying final pricing.
Shoppers can view current rebates and discounts for their desired model, get accurate trade-in estimates, explore financing terms with online credit applications and submit initial paperwork entirely on their own schedule.
Similar to BMW‘s setup, Chrysler franchise dealerships handle final purchase coordination, overnight test drives upon request, trade-in inspection/valuation, contract finalization and low-contact delivery or pickup once online orders ship from the OEM‘s site.
Jaguar Land Rover
These leading British luxury marques provide exceptional online buying experiences globally. Customers can securely build their dream Land Rover or Jag exactly to specification via the online configurators before placing a refundable deposit to lock their desired configuration.
Shoppers then complete all financing details, coordinate part-exchanges, select final purchase plans tailored to budget, electronically sign contracts and prep for delivery at one of the brand‘s retailers located nearby. It‘s a car deal conducted almost completely on your terms from the comfort of home.
Ford
An early ecommerce pioneer dating back over a decade, the Ford website allows customers online access to national inventories, dynamic custom builds, current offers/incentives as well as instant trade-in valuations, financing calculators, protection plans and more.
The site handles initial research and specifications elegantly. However transactions must still be finalized offline at a dealer location to complete credit applications, test drives, paperwork filing and drive-home day pickups following online coordination from Ford HQ.
Tesla
The EV automaker sells directly to consumers through an integrated digital and retail footprint combining aspects of dealers, stores and service centers. Buyers can easily build their desired Model S, X or 3 with exact features before placing a refundable order deposit online in just a few clicks.
Tesla‘s app then guides shoppers through additional purchase steps like financing, trade-ins, proof of insurance, final payment and delivery coordination with the nearest Tesla Center – all handled seamlessly online. No third-party dealers required!
| Online Inventory | Custom Builds | Incentives | Financing | Trade-Ins | Paperwork | No-Contact Deliveries | |
|---|---|---|---|---|---|---|---|
| BMW | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
| Chrysler | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
| Jaguar LandRover | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
| Ford | ✅ | ✅ | ✅ | ✅ | ✅ | ||
| Tesla | ✅ | ✅ | ✅ | ✅ | ✅ | ✅ |
Comparing the feature sets makes clear that Tesla operates the only fully enclosed sales process requiring no support from third-party dealers at any point in the buyer journey. But traditional automakers are quickly catching up to deliver similar streamlined digital commerce experiences in tandem with existing retailer partners.
How Online Buying Impacts Car Pricing, Test Drives and More
Transitioning elements of the transaction online significantly impacts longstanding auto industry retail models around pricing controls, vehicle inventory, test drive coordination and customer data ownership. Let‘s explore key differences in buying directly from an OEM website versus the traditional independent franchise dealer approach:
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Pricing – OEM sites display sales pricing set by corporate which dealers must honor. Customers pay listed retail price (unless otherwise negotiated offline). No more price variability between retailers.
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Inventory – Online special orders may take days or weeks before delivery from regional distribution centers to dealers unlike vehicles sitting immediately available on local dealer lots.
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Test Drives – Test driving online-ordered inventory requires coordination with dealers to locate vehicles quickly and schedule drives or 24 hour at-home demos.
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Trade-Ins – Trading old cars under OEM digital programs can be less convenient requiring initial online estimates before inspection and final valuation on-location at dealerships.
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Financing Approvals – Customers want to know exact out-the-door pricing when applying for financing online. Approvals listing estimated monthly payments before negotiating dealer fees and interest rates ultimately erode confidence and trust.
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Title Transfers – Some dealers resist facilitating sales initiated online to retain all profit opportunities associated with vehicle title transfers and rustproofing, accessories or F&I upsell add-ons. These old-school retailers recognize they transfer significant control over the sale to OEMs when enabling digital checkout.
Many of these tensions stem from OEM ecommerce programs disrupting longstanding elements that dealers controlled for inventory, pricing, consumer data and ancillary products/services. Yet manufacturers believe centralizing sales online provides customers convenience and consistency impossible through today‘s fragmented franchise models.
It will certainly be fascinating to see how the balance of power evolves between automakers expanding digital commerce capabilities and the dealer side scrambling to retain ownership over key profit pillars. But most industry experts agree that online buying is the new consumer preference and only stands to accelerate as today‘s digital-first customers age into their peak spending years.
What Does the Future Hold for Digital Car Purchasing?
Early analyst predictions estimated that nearly 20% of all car sales could happen online by the end of this decade. However based on the current pace of spending and adoption, that number seems increasingly conservative.
Mainstream automakers are investing hundreds of millions annually into connected retail technologies, with leaders such as Ford and Volkswagen targeting to sell as much as a third of all new inventory digitally. Additionally, likely changes in local franchise legislation could enable more direct manufacturer sales capabilities in the near future if remote purchases continue gaining momentum with shoppers.
And the online experience itself will grow leaps and bounds more immersive leveraging technologies like:
- Augmented reality to project virtual test drives
- Enhanced visual customization tools
- Expanded third-party financing integrations
- End-to-end mobile transactions.
While dealers provide tangible value today around personalized test drives, localized inventory coordination and final delivery steps, smart OEMs recognize much of their experience can be digitally streamlined. Automakers seem strategically poised to expand direct-to-consumer models long-term by owning the entire customer journey through immersive self-service ecommerce platforms.
So expect online car buying options to multiple rapidly as this digital-first revolution marshals on. With so many manufacturer options outlined here, you‘ll soon be cruising down the streets in your brand new ride ordered seamlessly from the convenience of home sweet home. The auto sales process of the future has arrived – no lines, no waiting and no pants required!
