Car Sales Vis-a-Vis The Internet

Car sales in different continents have different models, unalike in statutory laws and cultural influences. Their negotiation processes and steps likewise differ in much the same manner as their marketing structures.

Buying a car or selling a car for an Australian would be a baffling process if conducted in the Philippines in much the same manner that a Chinese will be lost in the process if he buys or sells a car in Europe stanovi za izdavanje

These processes on how to buy a car (or selling it) in different countries or continents are outlined, in capsulized form below.

North America. Salient features of US and Canadian car market:

• New cars and trucks are retailed by franchised dealers, though some of them also sell used cars. As a necessary supplemental service, they also have trained car technicians and financing.

• Manufacturers are prohibited to engage in direct auto sales by franchise laws requiring that only dealers may sell new cars.

• Trade-ins are also common practice giving a buyer maximum financial advantage.

• Additional services offered sometimes generate more profits than the main business of car sales.

• U.S. Federal Law requires a sticker on every new car with the price and the vehicle’s features on it.

• US statistics show that 70% of car purchases come from internet research. Buyers are able to compare features of cars, prices and discounts dealers offer within the area and thus adeptly negotiate better prices, unwittingly bringing down the already small profit margins of dealers averaging 2%.

Australia. Car brokers dominate the domestic car sales market. They are experts who help buyers find the right car for them. They may either be licensed or private but are nevertheless engaged by car dealers for their expertise in bringing in sales.

The influence and popularity of the internet, somehow parallel to that in North America, is effecting an evolution of the operation and structure of car sales in Australia.

China. As an emerging economy, China has developed its own car marketing structure and physiology through the 4S (Sales, Spare parts, Service and Survey) shops which are the only outlets authorized to sell brand-new cars.

Compared to other countries, profit margin in China is very high at around 10%, attributable to non-transparent invoice price and additional fees for fast delivery.

Europe. Car sales structure in Europe is more complicated so as to prevent unhealthy competition among European Union member-states. Cars and spare parts are sold through networks of distributors as ruled under Commission Regulation (EC) NO 1400/2002 of July 2002, enforced November 2002.

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