The Changing Face of Car Dealerships: What the Future Holds by Regan Dicarlo

Car dealerships are on the verge of significant change, with the next decade expected to bring a new era of innovation and adaptation. As technology advances and consumer expectations evolve, the traditional dealership model will need to reinvent itself to stay relevant. From digital sales to electric vehicles (EVs), the future of car dealerships will look markedly different.

As noted by Regan Dicarlo, one of the most noticeable shifts will be the move toward online car buying. Consumers today increasingly prefer the convenience of purchasing vehicles online, a trend accelerated by the pandemic. Virtual showrooms, 360-degree video tours, and augmented reality test drives are becoming the go-to tools for car buyers who no longer want to spend hours at a dealership. The ability to browse, finance, and even finalize purchases online will likely become standard practice in the near future, pushing dealerships to embrace digital platforms more fully.

Beyond the rise of EVs, the way people own cars is also shifting. Subscription-based car ownership models, which allow consumers to pay a monthly fee for access to a vehicle, are growing in popularity. This model offers more flexibility, allowing users to switch cars based on their needs without the long-term commitment of traditional car ownership. Dealerships that introduce subscription services will attract a new generation of consumers who prioritize convenience and adaptability.

The physical dealership itself will also change in the coming decade. Rather than sprawling lots filled with hundreds of cars, future dealerships will focus more on providing personalized, high-end customer experiences. Showrooms will be more compact and geared toward creating a relaxed, engaging environment where customers can explore specific models with the help of experts. This shift will help dealerships build stronger relationships with their customers, fostering loyalty and repeat business.

Electric vehicles are another major force driving change. As governments and automakers push for cleaner energy solutions, EVs are expected to dominate the car market over the next decade. Dealerships will need to adapt to this new reality by stocking more electric models and training their staff on the intricacies of these vehicles, such as battery maintenance and charging needs. This will also require service departments to evolve, with specialized tools and infrastructure to handle the unique demands of electric cars.

Vehicles, subscription models, and enhanced customer experiences will thrive in the future. Those who cling to outdated practices, however, may need help to compete in this rapidly changing landscape.