The Philippine car-buying experience — Evolving towards the new normal

Charles Darwin’s Theory of Evolution postulates that species adapt to the ever-changing environment in order to survive. That’s just a rough summary of the controversial theory, which claims that mankind was once a species of monkeys, evolving over the course of several years.

While the evolution of mankind from monkeys isn’t acceptable to everyone, the Theory of Evolution itself has its merits that can’t be ignored. Adaptation isn’t just happenstance, it’s a necessity that should be observed – not only within the four corners of your biology class but also in certain aspects of business as well.

Case in point: the Philippine automotive industry. It’s a multi-billion business that started decades ago and with its contribution to this country’s economy, you can say that it’s no monkey business – and it’s constantly evolving as needed.

Before the age of the internet, the best way to shop for a car is through old school showroom hopping. That’s why in the past, car brands with the most number of showrooms dominated car sales, which is still true today. Marketing and advertising were also two solid cornerstones back then – apart from mall displays, car brands also use TV and radio advertisements to market their products to a wider audience. 

Of course, nothing beats the good ole word of mouth as a means of spreading information about a certain product, which meant that reputation and stigma played a huge role to guarantee the success of a car brand.

Through physical interaction with people, potential customers or leads, in marketing speak, are captured, but that has changed with the introduction of the internet.

The Age of the Internet

Alas, information is more accessible and quicker to reach potential customers. The first wave of adaptation has occurred, prompting car brands to put up their own websites to disseminate information.

People don’t need to physically go into showrooms to know more about a car. Spec sheets and brochures have become available online, plus opinions can easily be sought out through a few clicks and navigating through online forums. It was bliss to car enthusiasts and car buyers alike.

With the internet involved, car shoppers are equipped with knowledge before they even step inside showrooms. That’s a good thing – from the consumer’s point of view – as it saves time and effort, speeding up the car buying process.

Online Lead Capturing

The birth of the internet came with an expected younger brother – the introduction of lead-capturing, third-party websites.

AutoDeal.com.ph is one of the leading websites that use a lead-generating platform today. It’s a one-stop-shop for car buyers that begin with research and end with the actual purchase. It’s a huge step in the automotive business, and understandably so, several brands have partnered with the website to utilize its lead-generation platform.

If before, car buyers are only limited to spec sheets and brochures found within manufacturers’ websites, online lead-generating platforms are able to collect information from the potential car buyers as well. The process improves the whole car-buying journey, providing convenience to both the car buyer and the dealerships who will handle the transaction.

Of note, it improves the process but not ultimately cuts off the physical interaction between the buyer and the sales agent. At the end of the day, the process still ends with the buyer going to the showrooms, either to test drive the vehicle or complete the purchase transaction – or both.

And then, the coronavirus pandemic set in.

Next Stage of Car Buying Evolution

With the restrictions in force during this coronavirus pandemic, along with the fear instilled in car buyers who don’t want to get infected through physical interactions, the Philippine automotive industry is now on its next stage of evolution: completing the transactions online.

AutoDeal.com.ph is also one of the first to adapt to the adverse effects of the pandemic. It introduced a purchase function on its website that allows a decided car buyer to purchase a vehicle online. Think of it as the ‘Add to Cart’ function in your favorite shopping website – only this time, the item you’re purchasing has four wheels and weighs around 1,000 kg.

The pandemic also prompted the manufacturers to devise their own ways of adapting to the new normal. Honda Cars Philippines, Inc. (HCPI) and Toyota Motor Philippines (TMP) have launched their respective online showrooms. TMP’s web service for car shoppers allow services like a 360-degree view of a car, get financing quotations, schedule a test drive, and submit the inquiry – all through the use of the internet. HCPI’s new online service is quite similar, although its version is via an app called VIRTUAL@Honda and will be available by August 2020.

BMW Philippines has a similar online showroom as well, while Suzuki Philippines introduced a new feature wherein customers can submit auto loan applications online. Maxus Philippines, on the other hand, took a different route by selling its cars via Lazada, a popular online shopping platform.

Isuzu Philippines has something else in mind, however. Apart from the online specs, brochures, and taking inquiries through forms, the Japanese marque launched a groundbreaking campaign — online video inquiry. That’s pretty nifty use of technology, really.     

All of these services could potentially render the use of third-party websites like AutoDeal useless, and it’s only a matter of time before other automakers that have the resources to develop such online service start to employ their own.

It’s important to note, however, that manufacturer-induced online services will work for car buyers who are decided with the vehicle they’re buying. For those who are still within their research stage, third-party websites will still be the best place to shop for a car, which brings me to my next point.

Important Role of the Automotive Media

Now, more than ever, car journalists like us should uphold our values when writing about a vehicle. With limited mobility, more and more people will rely on online car reviews and other related news to know their dream car better. We should all uphold our responsibilities as professional media practitioners, relaying only the truth to the consumers. 

There isn’t a perfect vehicle out there. People will take every word we say about a car, which means hundreds of thousands, even millions, of pesos spent on a car – that’s the weight of responsibility we carry. Let’s all keep that in mind.

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