AvtoVAZ introduced an online car sales system on April 15, the company said. You can choose a car on the official website of the car manufacturer, the transaction will be processed through one of the dealers. “The whole procedure, except for the lack of personal contact, happens as usual,” said a representative of AvtoVAZ.
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Previously, the company had a car reservation service online, but still you had to come to the dealership to conclude a contract. Now the buyer can leave a request on the site, the dealership manager will contact him. Documents are drawn up online. If you need a loan, the dealer will contact a specialist who will help you get it. If trade-in, then the buyer can call an appraiser at home or send photos of the car, the assessment will be carried out remotely.
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Payment also takes place online. There are two ways – by card or by qr-code with details. In the first case, the acquiring fee is borne by the dealer; in the second, the presence and size of the commission depends on the client’s bank and its status, the AvtoVAZ representative said. In some regions where salons are open, the buyer can pick up the car on their own, in others – the dealer will deliver it on a tow truck. The car will be sanitized before delivery.
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But three Moscow Lada dealers told Vedomosti that they did not offer the opportunity to remotely sell cars. Car dealerships will not do this, says the Techinkom sales manager: “A person needs to pay in advance for a car, pay for delivery. They will bring him, he will look: and here some kind of chip appeared, no, I will not take it. So, the car must be brought back, and the TCP is already full. ” With the delivery itself, difficulties can also arise: after registration of the TCP, the car formally belongs to the buyer, but the passenger compartment does not have any documents allowing the tow truck to move it. So, any traffic police inspector can pick him up at the parking lot. The manager did not hear about the cancellation of the bank transfer fee. Salons can still remotely reserve a new car, conduct a preliminary assessment of the old one, and help arrange a car loan.
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The launch or expansion of online car sales services has been announced by Chinese Chery, as well as some dealers. Nissan translated the loan approval and trade-in assessment online, Hyundai Motor CIS launched an online booking service for some models, Kia Motors Russia & CIS offered to receive an online car loan approval. In Russia, in the first quarter of 2020, sales of new cars and light commercial vehicles increased by 1.8% to 398,518 units, the Association of European Businesses (AEB) reported in early April. Given the restrictions introduced in April, we can expect a reduction in sales of up to 90%, Konstantin Avakyan, deputy director of the key clients department of the Avtospetscentr group, told Vedomosti.
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AvtoVAZ’s decision to develop online sales together with dealers is correct, as attempts by other companies to do this directly ended in nothing, said Oleg Moseev, president of the Russian Automobile Dealers Association. But the question is whether the consumer is ready. “The buyer of the new car prefers to look at it,” says Moses. “World experience shows that for used cars online is developing, only Tesla is the new exception, and the rest cannot occupy this niche.” Attempts to maintain sales in a crisis are welcome, but online sales are unlikely to become a mass story, he added, although with the proper organization of the process this is possible.
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Sales of cars this year may fall by 20-50%, says Eduard Cherkin, director of the Moscow office of the BCG consulting company. Therefore, car manufacturers have to make efforts to maintain sales. At the same time, the e-commerce segment “in recent months” is growing rapidly in Russia. Cherkin notes that traditionally our dealers are of great importance in the sales system of automakers. So the organization of online sales together with car dealerships can attract buyers.
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