Digital Transactions Authoritative, insightful and timely information for payments professionals
One consequence of the pandemic has been a boom in e-commerce. And now consumers can purchase automobiles online just as easily as they can most any other product.
Otoz, a subsidiary of business-services and enterprise-software provider Netsol Technologies Inc., announced on Monday its e-commerce app for Mini auto dealers is live in five dealerships in the United States. The app, which Otoz says will expand later in the year to Mini dealers in California and Florida, enables an end-to-end, online car-shopping experience for consumers. Eventually, Otoz envisions its app being rolled out to more than 100 Mini dealerships in all 50 states. The Mini brand is owned by German automaker BMW.
Consumers can use the Otoz app to search for a vehicle at participating dealers, contract for a purchase, apply for a loan, and arrange a payment schedule. The app also makes it possible for Mini dealers to value a trade-in online.
The app is expected to create a new, automated sales channel for dealerships and lenders servicing consumers in the automotive industry. It’s also a departure from dealer Web sites that largely serve as lead generators or facilitate a portion of the sales process, such as enabling consumers to select a vehicle for purchase online, but require them to close the sale at the dealership.
Otoz says its app can be integrated into a dealer’s Web site in 60 minutes or less and is supported by Otoz’s online and onsite onboarding and training teams.
“We have already begun to see encouraging pickup of vehicle sales conducted through the platform, which is further validation that automotive brands need digital strategies and capable tech partners to execute,” Otoz chief executive and Netsol President Naeem Ghauri says in a prepared statement. “While we are focused on enrolling more dealers and scaling to more states, we are also continuing to add new features that are critical to increasing dealer and consumer adoption.”
Auto dealers have been investing in e-commerce tools for several years. The Findlay Automotive Group in Las Vegas, for example, rolled out a digital car buying program in 2019. A host of digital sellers catering specifically to online car buyers, such as Carvana Inc., Vroom Inc., Shift Technologies Inc., and eBay Motors, are also well-established e-commerce platforms for auto sales.
