We have already seen a large decline in used car dealerships due to online shopping. The new car dealership has been largely resistant because of other services but with the new generations coming through that is all about to change.

There is more than one factor that will be driving this change:

• Dealerships occupy large costly land spaces in expensive areas
• Selling vehicles is becoming less profitable so costs must be cut
• Consumers want more choice, easier selection and everything done for them...online!

I recently read about an expert speaker talking to a group of car dealerships and he said that they do not have to worry because drones will never be delivering cars. We are not saying that drones will either but delivering the vehicle is the smallest of the problems dealerships face in the future.

The services offered by the dealership will need to change to offer tomorrows consumer what they want or bigger online retailers will force the change.

As a consumer, do we really care? Generally, as a consumer, we only care about how we buy a product if how means we can get a better price for less effort and the service improves. If that then means the decline of an industry and the loss of jobs and one on one service, it is proven we do not care, over and over again. We do think to ourselves that it is a shame, and the good old days were better but then we go and buy online from America (or other) because it is better for us as the individual.

So how will it change?

Before answering that we need to understand who is driving the change. One is the consumer and what they want and how. The other is the manufacturer. For those of you who don't know, dealerships are just franchise fronts for a manufacturer. The franchisor calls the shots and they decide where the industry will go into the future.

You can be the largest dealership owner in Australia but if your manufacturer (franchisor) wants to change you will have to change.

Car manufacturers work on a global playground. The global trend drives their process and what happens here in Australia has very little impact on their decision-making processes.

In the future one common method will be:

• We will research our next car online (already do)
• We will then request a test drive be brought to us at our convenience (can already do)
• When we select we will order from the manufacturer's website at a set non-negotiable price and organise payment (finance or other and probably from the manufacturer's lender)
• The manufacturer will organise a franchise near you to take delivery of the new car, prepare and deliver it to you.
• Dealerships will be set up in cheaper locations regionally and will consist of advance servicing and preparation workshops.
• Car salespeople will be a thing of the past and so will negotiations.
• Finance will be done completely online by yourself.
• Some of the manufacturers will do deals with big onliners like Amazon to provide sales, finance and ordering systems.