- The used-car segment is twice as big as the new-car market, and digitally savvy consumers are looking for a faster, more transparent purchasing process
- Used-car buyers tend to research a new purchase online and rely less on in-person salespeople
- PowerBand Solutions’ cloud-based platform is a reliable online alternative to the dealership experience, offering users complete control over the purchasing process by streamlining the interactions among all participants and eliminating unnecessary middlemen
The automotive industry market has been in a state of flux, with every aspect experiencing disruption from driverless vehicles to artificial intelligence. Customer expectations for the market have been raised as technological innovation advances. Digitally savvy customers, who have come to expect personalized, flexible and seamless interactions during the purchase experience, are already changing how automobiles are bought and sold – especially when it comes to used vehicles. Platforms like PowerBand Solutions Inc. (TSX.V: PBX) (OTCQB: PWWBF) (FRA: 1ZVA) meet this growing demand for flexible and seamless interaction, enabling users to buy or sell cars with never-seen-before ease and efficiency.
According to McKinsey & Company research, the digital revolution is disrupting used-car retailing by focusing not only on technology but also on the importance of the customer experience. Online car providers are already empowering digitally-savvy customers in this respect, offering a range of complete services that enhance the purchasing experience (http://nnw.fm/108Xi).
More specifically, online providers offer extensive vehicle data and effective search tools to find the right car (desired by 64 percent of buyers), complete end-to-end purchasing capabilities (desired by 59 percent of buyers), and unique delivery options (desired by 28 percent of online buyers).
According to the McKinsey research, titled ‘Used cars, new platforms: Accelerating sales in a digitally disrupted market’, used-car buyers spend about 40 percent more time researching online during the buying process than new-car buyers. Part of the reason for this might be that only 8 percent of used-car buyers rely solely on in-person salespeople when purchasing a vehicle; the rest make decisions based on their own prior research. Used-car buyers expect a faster, more transparent, and more convenient process. Introducing digital tools to simplify and shorten the process will improve customer satisfaction and insurance penetration rates.
As more used-car customers expect the same seamless digital service they receive throughout other retail markets, used-car retailers will adapt to remain competitive and protect profits, as well as finance and insurance margins. To do so, retailers must find opportunities to leverage the digital-oriented nature of used-car buyers and their desire for advanced technology. Adapting to the new demands will be beneficial to car traders and dealerships, as the used-car market is growing exponentially in the United States and is already twice the size of the new-car segment. According to McKinsey, Americans buy 39.4 million used cars each year, compared to 17.3 million (data from 2018), and the trend is likely to continue over the next five years.
The results of the McKinsey research confirm the trend of a rising demand for online vehicle trading alternatives. According to the ‘Digital Commerce 360 Online Vehicle Shopper 2019’ survey, conducted among 1,089 buyers, 49% are willing to purchase a new vehicle entirely online (http://nnw.fm/bAaJ9). According to Frost & Sullivan, consumers may purchase as many as 1.3 million vehicles annually online as soon as 2035 (http://nnw.fm/My8oz), and nearly 90% of Americans report they dislike the car dealership experience, noting they feel anxious or uncomfortable in dealership settings.
PowerBand is positioned to capitalize on these trends by disrupting the antiquated business model of the automotive industry, replacing distrust and confusion with transparency, access to information and ease of use. Developed by a team of experienced automotive, technology and finance experts, PowerBand Solutions’ platform empowers the consumer to self-direct a transaction, by streamlining the interactions among all participants and eliminating unnecessary middlemen. The platform allows consumers to sell, buy, lease, auction and finance vehicles with never-seen-before simplicity, speed and cost-efficiency from their smart phones or other devices, irrespective of their location.
The company is currently rolling out its platform in the United States and to this end, it has partnered with Source Digital, a pioneer in immersive commerce through the use of digital media platforms and video content on the internet (http://nnw.fm/1WEff). This unique campaign will use Source’s patented technology to promote PowerBand’s platform inside popular video content with various channels and influencers in the U.S.
For more information, visit the company’s website at www.PowerBandSolutions.com
NOTE TO INVESTORS: The latest news and updates relating to PWWBF are available in the company’s newsroom at http://nnw.fm/PWWBF
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