Montreal dealership wants to sell cars entirely online

Most companies in the retail industry have turned to the web in recent years to sell their products, knowing full well that that’s where consumers are increasingly buying what they need.

The automotive industry has always been an exception, but a dealer in the Montreal area is looking to change that by becoming the first dealership in Canada to offer customers the possibility of completing their purchase entirely online.

At the moment, Tesla and Genesis are the only automakers offering online vehicle purchasing without ever visiting a dealer. On the other hand, a Google poll in 2016 indicated that 41 percent of new vehicle owners would have completed their purchase online if the option would have been available to them.

It is probably this kind of data that prompted Chambly Honda to integrate a platform on its site that allows users to complete every stage of the sales process without having to physically visit the dealership.

The user can configure the vehicle as desired by choosing colour, trim, accessories, options and even insurance and protection products. Once the vehicle is configured, the buyer can apply for financing online and, once approved, make an appointment to pick up the vehicle or have it delivered to his or her home. A credit card deposit is then given on the site and the sale is completed.

For consumers who do not know which model to choose, the site allows users to search by payment and then displays a list of vehicles that fit their budget. If a user chooses to lease or finance, the payment amount will be displayed and will be adjusted according to the options and accessories added to the vehicle.

"We strongly believe that this new system will bring the automotive industry further and, above all, allow it to catch up with the changing needs of consumers," said Louis-Martin Racicot, owner of Chambly Honda, at a news conference announcing the new online sales platform.

To develop this new functionality, Chambly Honda turned to Montreal-based 360 Agency. Enabling consumers to purchase their new vehicle entirely online required more than three years of development and about fifty employees.

"The auto industry is lagging when it comes to how it sells vehicles. Consumers are used to turning to the web to buy the products and services they need, and the automotive industry is one of the few that does not offer the option of buying online,” says Louis-Yves Cloutier, president and co-founder of 360 Agency.

Chambly Honda is the first dealer to integrate the new digital sales platform, but according to Mr. Cloutier, nearly 30 Canadian dealerships have already signed up to add it to their website in the coming months.

It would seem that buying a new vehicle entirely online without ever having to go to a dealer will soon become a real possibility across Canada, and not just in Quebec.

The question now is whether consumers will be willing to go online for their next vehicle. While many will argue that the dealership experience is not always pleasant, buying a vehicle is certainly not an expense to be taken lightly.

For Louis-Martin Racicot, what matters initially is facilitating the purchasing process.

"I do not think we'll see a lot of purchases made entirely online at first. However, I expect to see several consumers start or finish their purchase on the web using our platform, get a lot of information with it, and ultimately reduce the time spent at the dealership”.