Consumers are gravitating towards digital tools for the car search process, but only five percent of U.S. automotive purchases close through online platforms compared to 70% at brick & mortar dealerships, according to a new report from Altman Solon.
“Drivers like the convenience of browsing online and want to avoid high pressure sales tactics, but when it comes to signing on the dotted line they overwhelmingly end up at the dealership,” said Altman Solon Partner Daniel Mazor. “This should change in the future as more carmakers go direct-to-consumer and online sales become the default option for more emerging car brands.”
Many electric vehicle manufacturers, including Rivian, Lucid, and Scout, are joining Telsa in circumventing the traditional car-buying process. However, Altman Solon’s report, Digital, Electric, & Connected: The changing automotive consumer journey, noted that 23 states have existing laws that ban or restrict DTC auto sales, which hampers the growth of online sales.
The report, informed by a survey of nearly 2,000 consumers across the U.S. and U.K. and in-depth interviews with a wide range of industry executives, also explores how EV servicing could become a boon for dealerships and analyzes the priority purchase criteria for dealerships and OEMs choosing dealership management systems.
About Altman Solon
Altman Solon is the world’s largest strategy consulting firm focused exclusively on the Telecommunications, Media, and Technology (TMT) industries. We work with market leaders, challenger brands, and investors across TMT sectors. We support our corporate clients in identifying, developing, and implementing company strategies, new market entry approaches, digital innovation, and global M&A. We help our investor clients understand markets, conduct due diligence, and make high-stakes decisions with confidence.
Altman Solon works with seven of the top 10 global telecommunications companies, seven of the top 10 global tech companies, and six of the top 10 global media companies. Over the past twenty years, we have helped develop and implement era-defining strategies that have shaped the TMT sector.
Altman Solon has an extensive international reach with offices in Amsterdam, Boston, London, Los Angeles, Mexico City, Milan, Munich, New York, Paris, San Francisco, Singapore, Stockholm, Sydney, Warsaw, and Zurich, with successful projects completed across the globe in more than 100 countries.
