Buying a car is easier than ever, but people don’t like it | Opinion – Automotive News

People hate change. It’s just a fact of life that once we get into the habit of doing a certain thing, we’ll be happy to continue doing it even if a better alternative comes along.

And if you need proof, look no further than the mixed results that brands like Genesis, Tesla and others have had as they try to improve the buying experience by moving away from the traditional new car showroom.

But as luxury brand Hyundai has discovered, people actually prefer the conventional shopping experience over the seemingly superior option that Genesis offers.

The brand moved away from the traditional dealership model and opted for boutique-style retail spaces in the Sydney and Melbourne CBDs, where a brand representative could deliver the car directly to a potential buyer at a time that suited them. However, the brand has since added “test drive centers” in more traditional locations and recently announced plans for dramatic expansion, opening new showrooms on the Gold Coast and Sydney, as well as introducing “agents” to be housed in existing dealerships ( most likely Hyundai dealers).

Genesis Australia chief executive Justin Douglas said the brand had tried several methods of attracting customers, but the preference was clearly given to traditional ones.

“So both (CBD) sites have the opportunity to do an on-site test drive,” Douglas explained. “We also provide the Genesis service for you, so if a customer lives in the area and doesn’t want to travel (from anywhere in Sydney) to Parramatta or Prahran in Melbourne, for example, then our team from that studio will drive the car to them. So, of course, we sell cars from these sites, but certainly not at the level that we sell through our usual storefronts.”

While Douglas made it clear that the downtown retail “studio” will remain, he acknowledged that they have some limitations.

“I think the opportunity for us is that if you look at the way the studios are set up, they really are hubs for brand experiences. Therefore, we do not have the opportunity to demonstrate the full range of our equipment at the sites,” he said.

“But as I mentioned earlier, some customers are certainly happy to shop in that environment, with that experience, but you’re right, there are still customers who prefer the traditional method, but we’re just conveniently located for those customers too.” .

Cadillac Experience Center Sydney

Genesis is by no means alone in this new trend in recent years to make car buying more convenient for buyers. It was a period of upheaval in the auto industry, with both Mercedes-Benz and Honda moving to a so-called “agency model” in which all sales are handled directly by the brands, with previous dealerships now only responsible for referring customers. This led to a decline in sales for both brands as both customers and dealers appeared to become resigned to this new way of doing business.

But that won’t stop new brands from trying to do things differently: General Motors Australia recently opened its first Cadillac Experience Center in Sydney and plans to expand it as it tries to compete with more established luxury rivals.

Those who prefer to go to a dealership, look at different cars, test drive and buy will likely be able to continue to do so for many years to come, as it will take a long time for people to accept such dramatic changes.