Over £500m-worth of cars sold using GForces technology in 2020
Industry-leading automotive ecommerce solution provider, GForces, has released a series of key findings obtained through its NetDirector® Auto-e digital platform, revealing how online car purchase behaviour has changed dramatically during the global pandemic.
“As with many other industries, COVID-19 has accelerated the shift to online, in a very traditional automotive sales market which was ripe for disruption,” explains Tim Smith, Chief Commercial Officer at GForces. “The insights we’re sharing today clearly show that customer trust levels when using digital technology are increasing daily, as is their willingness to make large ticket purchases, such as cars, online. Naturally, they have appreciated the ease and simplicity, not to mention the personal safety, that ecommerce brings, particularly in these uncertain COVID-19 times.
“However, what is interesting with the car industry is that we firmly believe there was latent demand there all along. Often the missing key ingredient was the lack of easy-to-use, seamless systems for consumers to interact and transact with. The pandemic has been the catalyst for change and we are proud to have supported so many of our customers in adapting to the rapidly evolving automotive retail landscape. Online car buying is no longer just a trend, it is fast becoming the new normal for sourcing your next car.”
The GForces data reveals that the number of cars sold online in 2020 using its technology rose 1228%, increasing from just 2,199 in 2019 to 29,209 last year, worth over £500 million overall.
The figures for pre- and during lockdown also underline the growing importance of ecommerce, particularly for online car sales. Between January and March 2020, the number of new and used cars purchased online using GForces technology averaged 640 transactions per month. In April and May, the first full lockdown months, the numbers soared, more than quadrupling to 2,675 per month. Once again, the same picture emerged when the UK entered its second lockdown. In November 2020, online sales surged by 33% compared with the previous month.
Other key highlights which emerged during 2020 were:
- Average price of used car in the UK purchased online via its platform rose 5% from £14,983 in 2019 to £15,723 in 2020. Over £2900* higher than offline purchases
- Number of car buyers looking at car model pages globally on GForces NetDirector® Auto-e platform rose from 10.7m in 2019 to 26.8m in 2020
- Mobile device importance continues to grow (up 4% year-on-year). However, desktops still proved the dominant device of online car buying – at 44% during 2020 (up 2% on 2019)
In-keeping with the current pace of online shopping and service delivery growth, GForces is forecasting the number of UK car transactions it will handle throughout 2021 to double – to 58,000, before growing even more to 72,000 in 2022.
The ecommerce industry leader in the global automotive sector. GForces has offices in the UK, Australia, Dubai and Vietnam. The company works with 20 car manufacturers in 65 countries, supporting 6,000 retail locations. In just 24 months, 1,651 UK franchised retailers – approximately one third of all UK retailer sites – have switched to the GForces ecommerce platform, NetDirector® Auto-e.