Pub 10 2020 Issue 3

14 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com E-COMMERCE FOR DEALERSHIPS: ONLINE VEHICLE SALES AND DIGITAL RETAIL COMPLIANCE CONSIDERATIONS COUNSELOR’SCORNER T he auto industry recently experienced unprecedented change in the span of a fewmonths due to the coronavirus pandemic. The impact has been felt by OEMs, dealers, and their customers. Although online sales are com- monplace for purchasing certain consumer goods, even groceries, vehicle transactions have historically not kept pace with other digitally retailed goods. Visits to dealership showrooms to consummate deals remains the norm. This is partially due to the need for original, or “wet,” signatures being required for certain documents that comprise the entire vehicle sales transaction (e.g., title, odometer, secure POA, tax forms). With the onset of COVID-19, however, and the related shut-down orders issued by state and local governments, dealers became more inventive using the internet, their websites and social media to drive online vehicle sales. Online sales have continued to pick up traction even in the wake of stay-at-home requirements being lifted. Cus- tomers favor seamless transactions, including pricing transparency and the efficient use of their time. The area of online vehicle sales is nonetheless fraught with challenges. Additionally, companies like Tesla, Carvana and Vroom, have made a significant foray into the realmof online digital vehicle saleswhile competingwith traditional dealers and manufacturers for customers. To address some of these