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Guest opinion: ‘revolutionise your finance sell with online videos’

Jonny Combe of BMW Financial Services

The battle for captive auto finance business in the future will be won – or lost – in the world of digital real estate.

And the reasons are obvious – when more than half of Generation Y (people born between the 1980s and early 90s) car buyers would currently prefer to visit the dentist than haggle with a car salesman – and when many view visiting a car showroom “rather like visiting a funeral”.

The disruptors in the shape of the new breed of financial technology (Fintech) companies have already spotted where the demand lies in the new generation of car buyers.

With Gen Y buyers forecast to be accounting for around 75% of all new vehicle sales by 2025 – you will have to get your selling approach correct – or you’ll be dead on the water.

A BMW report into consumer purchasing behavior revealed that whereas in 2003 car buyers made an average of four visits to a showroom prior to making a purchase.

By 2013 this had diminished to 1.5 visits.

Also in 2003 only 1% of car buyers researched their car online before making a purchase – by 2013 this had risen to 92%.

Soon they will be making the purchase itself online – by their mobile phone.

To combat this, captive finance auto companies need to revolutionize their websites especially with regard to video content and mobile optimization until they become designed as mobile-first.

Previously the battle to win car sales was fought out in the showroom – but no longer, because Millennials and Gen Y buyers will simply not be there.

Author: Jonny Combe, general manager product and channel development at BMW Group Financial Services. White Clarke Group is a provider in end-to-end automotive and asset finance software solutions and consulting services. Combe was a speaker at the recent White Clarke Group Auto Captives Summit.

View Combe's presentation 

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