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Automotive Industry in 2030 - Crystal Ball


· The DMS will become more of an accounting system and management of parts and service.

· Digital Retailers will be the mechanism for dealers to sell cars to consumers off the dealer’s website. The in-store experience will be an extension of the online experience. The number of Digital Retailers active in the market will 5 or less. All Digital Retailers will provide their dealers the full ability to transact of full dealers.

· Lead generation companies will be out of business unless they evolve into full Digital Retailing. The Cars.com, CarGurus and TrueCar’s of the world will need to dramatically evolve to survive.

· Amazon will have developed a more comprehensive auto strategy and will have bought several large dealer groups. They will become one of the Digital Retailers that are in business and will be able to transact a full deal online.

· Data from the Dealer Managements System (DMS) will be available to any approved party that can meet a high security threshold at a reasonable cost. The dependency on DMS ‘s for data will be minimalized since much of the data from a sales perspective will be outside the DMS. Dealers will be able to manage who gets what data in a secured manner.

· The norm for dealers selling model will be for dealers provide their customers a Single Point of Contact at the dealership including F&I.

· Finally….everything in the F&I Office will become electronic – no longer any pre-printed 5-ply forms.

· Single price will become more of the norm at dealerships versus the negotiated selling prices.

· F&I product sales will become single price as well as the consumers demand for transparency increases. This will not happen because of the influence of the CFPB but because of consumers wants and needs in the car buying process.

· Net income at most dealers from F&I will remain consistent today but more sold with online tools in conjunction with the Client Advisor assigned to the consumer at the dealership – this will be known as Person-to-Person Digital Retailing.

· Cars will continue to be sold at the dealership, but more advanced technology and processes will allow for dealers to sell, transact, and deliver the cars based on the consumers desire.

· The auto finance model of mark ups to rate will evolve into a flat fee to allow the dealer’s to be properly paid for the service the perform.

· Carvana will merge with one of publicly traded dealer groups and will be will enable their expertise in logistics to both sell used and new cars or will be acquired by Amazon

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