The future of car purchasing: The end of the car dealership?

  • B2B
  • B2C

The car manufacturer-dealership model has been a consistent part of the car industry for decades. Franchised dealerships are a convenient way for brands to own and grow revenues without the hassle of owning and operating the branch itself.

However, with many other industries being disrupted by new technologies, could this industry be about to change? Some developments are already occurring: showrooms are moving to digital; updated car technology may result in a reduction in dealership revenue; more sales are moving online; and the concept of ‘owning’ a car is becoming less important to consumers. Having potentially reached a peak in car ownership per capita, will there be a dramatic change to the current car sales model? The rise of electric cars is already bringing new players with different models, such as Tesla, who own and operate their own dealerships.

The question arises: will the dealership model continue to exist and if so, for how much longer?

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