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From: Jared Hamilton
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Mike Gorun

Mike Gorun Managing Partner/CEO

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Will Speed & Efficiency Give AutoNation A Competitive Edge?

AutoNation_Corporate_Headquarters_2010_F

The largest complaint that consumers have when considering a vehicle purchase is the fact that the process takes too long. Even with all the new technology processes that dealerships have employed over the past few years, the purchase process is still as long and cumbersome as it was twenty years ago.

 

AutoNation recently started to roll out a vehicle purchase program, transferring much of the buying process online. It promises consumers a 30-minute in-store automobile purchase transaction. It would seem that AutoNation listened to the auto buying public and may well transform how cars are purchased in the future. They certainly don’t have a shortage of locations available to consumers.

 

I’m sure the entire industry is watching to see whether they can accomplish this and if car shoppers will embrace it. If their program is successful, and consumers start to realize that they can buy a vehicle almost as swiftly as buying something on Amazon, AutoNation could hold a serious competitive advantage. Given the option to buy a vehicle in 30-minutes, or spend all day at a dealership, my guess is that many consumers would choose the former. They may, in fact, be willing to pay a small premium for the vehicle in exchange for the time they will have saved. If the process is successful and other dealerships are slow to adopt something similar, it could also result in an increase in customer loyalty to AutoNation.

 

When Henry Ford began building his automobiles, while cars existed, they were out of the reach of many consumer’s budgets.  At that point in history, consumers asked for faster horses because they never dreamed that they would actually be able to afford an automobile. His vision was to make vehicle transportation affordable to the masses. And he accomplished that.

 

Just as the public in Henry Ford’s time didn’t believe they would ever own a vehicle, consumers, in general, don’t believe that they can purchase a vehicle so efficiently. Henry Ford proved them wrong and AutoNation may just accomplish the same thing.

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