Between COVID-19 and the fourth industrial revolution, the online car retailer space is set to become increasingly crowded, which provides an interesting opportunity for rights holders.

COVID-19 and subsequent social restrictions disrupted many industries, and the automotive industry has been no exception. In the UK, dealerships closed their doors, which created an opportunity for digital dealers to fill consumers need to buy new and used cars during lockdowns. Relative newcomers to the field, cinch and Cazoo, have become synonymous with online car sales – and crucially seemingly omnipresent in the sponsorship space. However, these two are by no means the only brands to offer online car sales; caytoo’s latest report outlines 10 other brands in this space which operate in the UK, as well as three more which have potential to expand to the UK in coming years.

Why partner with an online car retailer?

Pendragon, the third most profitable automotive dealer in the UK, described the UK as “the most attractive used vehicle market globally, with a ratio of over three used vehicles sold for every one new”. The online car sales space is only going to get more crowded and create further competition among brands, so as a rights holder you should be approaching them, particularly whilst they’re in their formative years, about how you can offer better brand awareness over competitors.

Will consumers stick with shopping online?

There is a view in some quarters that with lockdowns easing, consumers will return to forecourts to view and purchase cars in person, but there is early evidence to suggest this is not the case. As with several industries which had to evolve due to the pandemic, consumers are finding they prefer the convenience e-commerce offers. Furthermore, innovations are on the horizon that will ensure that online car retailers will continue to stay at the forefront of technological advances, allowing them to remain relevant and, more importantly, be more convenient for consumers.