BMW became the first car brand to launch a UK online sales platform in 2015. Almost five years on there are fewer than a dozen brands doing the same. And, according to many manufacturers that have, fewer than 10% of their annual new car customers have transacted online.

But the industry has entered a new decade during which automotive e-commerce is expected to increase rapidly. Many individual franchised dealer groups have already started car sales online, and market-leading car marketing portal Auto Trader will, in time, allow consumers to buy from retailers through its website.

There’s a potential challenge for consumers ahead, in the diversity of approaches across the industry. All the car brands that are currently engaged in e-commerce require a franchised dealership to facilitate or fulfil the order, whether as a margin sale or on a handover fee basis. 

But some, such as BMW and Volvo, require the consumer to choose one of their franchised dealers early in the process, before they can even create the new car specification they desire, and then continue the process direct with the chosen dealer, including price negotiation.

Others, such as Hyundai, start with the consumer’s budget or finance product choice, while Peugeot’s begins with specifying the car before going on to examine finance options and choose home delivery or collection from a local dealer. Some require the consumer to take finance, while some allow cash purchase.