Distance Selling: Your Guide to Online Car Sales

Understanding Distance Selling in the Automotive Industry

The automotive retail landscape has undergone a significant transformation, with distance selling emerging as a pivotal strategy for dealerships. This method of selling vehicles, where the transaction occurs away from the physical retail premises, encompasses two primary models: Click & Collect and Home Delivery. As the digital age continues to reshape consumer behaviour, understanding the intricacies of these models, along with the associated legal obligations and best practices, is paramount for retailers aiming to thrive in an increasingly competitive market. This article delves into the mechanics of distance selling, offering insights into how to effectively implement these services and build customer trust.

Click & Collect vs. Home Delivery: A Comparative Look

Distance selling fundamentally involves purchasing a vehicle without the buyer physically visiting the dealership for the entire transaction. The two main avenues for this are:

• Click & Collect: In this scenario, a buyer completes the purchase online or over the phone and then travels to the retailer's location to collect their new vehicle. This model requires a seamless online presence and efficient handover process at the dealership.
• Home Delivery: Here, the vehicle is purchased remotely and subsequently delivered directly to the buyer's specified address by the retailer. This necessitates logistical planning and resources to ensure the vehicle reaches the customer safely and promptly.

Both methods share a common thread: the purchase is finalised away from the traditional showroom environment. Consequently, buyers are legally afforded specific consumer rights, the most significant being a 14-day return period from the moment they take ownership of the vehicle. This right is a statutory obligation and must be clearly communicated to the buyer during the purchasing process. Failure to adequately inform buyers of this right can have substantial consequences, as highlighted by trading standards expert Peter Stonely. He emphasises that these rights cannot be negated by a simple disclaimer. If the 14-day right to cancel is not properly communicated through the contract or on the retailer's website, buyers may then have an extended period of up to 12 months to cancel the purchase. Therefore, it is crucial for retailers to proactively highlight this 14-day right to cancel on their websites and through all customer communications, including email and postal correspondence.

From an operational perspective, Click & Collect often requires fewer resources compared to Home Delivery. While Home Delivery demands investment in logistics and transportation, Click & Collect primarily relies on the retailer's ability to facilitate online or telephone sales, making it accessible to a broader range of dealerships, regardless of their size or geographical reach. This accessibility makes Click & Collect a valuable option for retailers looking to expand their sales channels.

Maximising Visibility: Letting Buyers Know What You Offer

A common pitfall in distance selling is the assumption that customers are aware of the services offered. If your dealership provides Click & Collect or Home Delivery, it is imperative to actively promote these options. Buyers cannot take advantage of services they are unaware of. Utilising tools like 'Deal Builder' can be instrumental in advertising these distance selling features directly on your vehicle adverts, helping potential buyers to reserve vehicles for purchase. By integrating Click & Collect and Home Delivery options into your online advertising through such platforms, you can create a truly omni-channel experience for consumers. However, the promotion should not stop at advertising. It is essential to consistently highlight your distance selling capabilities on your website, in email communications, during phone conversations, and across all your social media channels. Consistent messaging reinforces the availability and ease of these services.

Building Trust Through Transparency: Descriptions, Images, and Video

Optimising your online presence is key to attracting buyers and maximising the benefits of digital sales tools. This begins with ensuring that your vehicle descriptions and images are as clear, accurate, and comprehensive as possible. Presenting your stock in the best possible light is crucial, as buyers are making decisions based on the information provided remotely. Remember, even the slightest inaccuracy in a vehicle's description can empower a buyer to exercise their consumer rights and return the vehicle for a full refund. This underscores the importance of meticulous detail and honesty in all your product information.

To further enhance transparency and build customer confidence, consider incorporating video content. Sean Cantillon, managing director of Cedar Specialist Cars and Autotrader Retailer of the Year 2020, shared his experience of sending personalised videos to prospective buyers. This practice fosters trust and transparency, elements that are often perceived as lacking in remote selling. Videos allow buyers to gain a comprehensive view of the vehicle, offering an immersive experience that goes beyond static images and text descriptions. By providing detailed video walkarounds, virtual tours, or even highlighting specific features upon request, retailers can significantly bridge the gap created by the absence of physical interaction. This proactive approach to showcasing vehicles can differentiate your dealership and build a strong foundation of trust with potential customers.

Overcoming the Fear of Returns

One of the primary concerns for retailers venturing into distance selling is the potential for a high volume of vehicle returns. However, anecdotal evidence from experienced retailers suggests that this fear may be largely unfounded. Both Nona and Sean have found that returns are relatively infrequent when specific conditions are met. The key to mitigating returns lies in a combination of factors:

• Confidence in the Product: Ensuring the vehicles you offer are of high quality and accurately represented instils confidence in both the retailer and the buyer.
• Excellent Transaction Experience: A smooth, transparent, and customer-centric purchasing process reduces the likelihood of buyer dissatisfaction.
• Understanding of Distance Selling Rights: Retailers must have a firm grasp of their legal obligations and communicate these clearly to buyers.
• Informing Consumers: Proactively informing customers about their rights, including the 14-day cooling-off period, sets clear expectations and manages potential issues before they arise.

By focusing on these elements, retailers can operate successfully within the framework of distance selling and the broader omni-channel retail environment. It's about building a robust process that prioritises customer satisfaction and transparency.

Getting Started with Digital Sales Tools

Embracing digital transformation is no longer optional for automotive retailers. Tools like 'Deal Builder' are designed to facilitate this transition, enabling dealerships to offer Click & Collect and Home Delivery services seamlessly. As more retailers join this digital journey, the platform becomes increasingly valuable. For those considering adopting these digital strategies, exploring resources such as dedicated masterclasses on distance selling best practices can provide invaluable knowledge. Staying informed about the evolution of digital tools and understanding why now is the opportune moment to integrate them into your business strategy is crucial. Engaging with your account manager or expressing interest directly can provide a clear path to getting started with these transformative tools, often at no additional cost.

Frequently Asked Questions about Distance Selling

What are my legal rights as a buyer when purchasing a car remotely?

Under distance selling regulations in the UK, you generally have a 14-day cooling-off period from the date you take ownership of the vehicle. During this time, you can cancel the contract and return the vehicle for a full refund, provided it's in a condition that reflects reasonable use. Retailers must clearly inform you of this right.

Can a dealership refuse to offer a 14-day return?

No, a dealership cannot legally remove your 14-day right to cancel a distance sale through a disclaimer. Failure to inform you of this right can extend your cancellation period significantly, potentially up to 12 months.

What is the difference between Click & Collect and Home Delivery?

Click & Collect involves purchasing a vehicle online and collecting it from the dealership's premises. Home Delivery means the vehicle is purchased remotely and then delivered directly to your home address by the retailer.

How can retailers build trust with customers during remote sales?

Retailers can build trust by providing highly accurate descriptions and high-quality images, offering personalised video walkarounds of the vehicle, maintaining transparent communication throughout the sales process, and clearly outlining all terms and conditions, including return policies.

What happens if there's an error in the vehicle description?

If a vehicle is not as described, even with minor inaccuracies, you may be able to exercise your consumer rights to return the vehicle for a full refund. This highlights the critical importance of precise and truthful vehicle descriptions.

In conclusion, distance selling presents a significant opportunity for automotive retailers to expand their reach and cater to evolving consumer preferences. By understanding the nuances of Click & Collect and Home Delivery, adhering to legal requirements, leveraging digital tools, and prioritising transparency and customer trust, dealerships can successfully navigate this dynamic sales environment and drive future growth.

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