Latest Auto Trends That Will Help Increase Revenue

The automotive industry is following the latest trends to provide an easy and flexible method to purchase cars.

FREMONT, CA: As car prices increase, the budgets of many customers are outpacing them. In the U.S., new car sales dropped in 2019, and according to the New York Times, several reports expect a small slip in sales in 2020. According to Experian, vehicles' total monthly payment is also near an all-time high of $554 for new cars and $391 for used vehicles. Due to these higher costs, according to data from the Federal Reserve Bank of New York, auto delinquency rates soared to record highs in 2019.

Such figures have a significant effect on customers. Nearly half (46 percent) of respondents ranked the amount of the monthly payment as the most significant factor in selecting an auto loan, according to a recent PenFed survey. As the top factors in choosing a car, respondents also ranked price and reliability above efficiency, comfort, brand credibility, and even safety.

Online Car Sales

Today, people purchase almost everything online, except houses and vehicles. Currently, in Europe, carmakers are creating pilot projects for the digital purchase of cars. According to a 

survey by Cox Automotive, sixty percent of dealers in the United Kingdom say that they will be able to provide digital transactions within two years. In 2020, following the first standalone electric car's introduction, Ford will release its online ordering system. Making it easier and more straightforward to purchase vehicles by bringing them online can help attract more buyers.

Artificial Intelligence

Artificial Intelligence means more customization and personalization. To recommend customized vehicle choices for customers, AI will utilize advanced analytics. Driverbase Inc. introduced its free service in early 2019 that incorporates driver data, driving routes, and current vehicles to offer customized vehicle guidance. Buyers will be able to visit any dealer soon and be accepted with personalized recommendations for vehicles, financing, and customization options.

Car Subscription Services

A customer gets access to several vehicle models in a manufacturer's lineup for a monthly fee, insurance, repairs, and roadside assistance. Cadillac, BMW, and Volvo are already being provided, among others, but they do not come cheap. For example, BMW's lowest-priced option is $1,099 a month, and Volvo's starts at $600 a month. However, if the trend catches on, people will probably see more affordable alternatives in the coming year that could be an enticing alternative to the conventional purchase.

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