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Ford moves online to sell cars

28/06/2010

Ford, the UK's largest car retailer, is set to become the first British manufacturer to sell its vehicles over the internet, in yet another blow to recession-hit car dealerships.

Under an initiative by Ford Retail - the dealer group which is wholly owned by Ford Motor Company - all of the manufacturer's models, including commercial vehicles and used cars, will this week become available to buy online from 50 dealerships.

Although 550 independent dealers will carry on selling Ford cars as usual, experts believe the move to online sales will signal a revolution in car retail as other companies scramble to follow suit.

"This is an important turning point," said Dr Peter Wells of the Centre for Automotive Industry Research, Cardiff, talking to The Telegraph.

"Operationally it makes sense to hold stock centrally and get it out to the consumer but this does risk losing some contact with the customer. There is still a future for the dealer, even if they are finding it tough at the moment."

Once a motorist has browsed online and selected a model, they must complete their purchase by email or over the phone to a new call-centre. FordOnline.co.uk will then deliver their vehicle to one of 12 centres nationwide, where consumers will be able to examine their purchase before completing the final paperwork.

Prices will be the same as those offered to showroom customers, and prospective online buyers will be able to haggle just like those who attempt to strike a deal in person with a salesman.

Ford's move to online sales came after the manufacturer's own research revealed nearly four in ten buyers now want to buy their next car on the internet - even if it meant not taking their new car for a test drive.

"Consumers are now ready to fully use the internet in the car industry," said Steve Hood, managing director of FordOnline.co.uk.

"In the past, many customers have used the internet for gathering information and then visited dealerships for advice and test drives.

"Whilst many customers still continue to do this, we are now witnessing a significant proportion of internet customers that both know the car they want and are prepared to buy it direct if the internet retailer is credible."

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