Although car vending machines are not exactly a new type of technology, there is a company in England that pushes new innovations into this somewhat old technology. Auto Trader recently announced that it is launching a car vending machine that features contactless payment. This means that users of this new technology can pay the machine through their smartphone.
Auto Trader said that its contactless car vending machine is now operation in London. The machine allows users to use their phone in buying the car that is inside the vending machine. By employing this strategy, Auto Trader essentially bypasses haggling, which is common in many car trading transactions.
Auto Trader did not discuss finer details about its new service. This includes financing and insurance. According to Auto Trader, the cars offered in its vending machines will cost no more than £21,000.
Auto Trader said that the cars offered in its vending machines are still coming from its partner dealerships. The company added that it negotiates the price of the cars with its partners before placing them inside the vending machine. The first Auto Trader vending machine has a Renault Zoe inside. The agreed-upon price for the car is £16,000. Auto Trader said that the car was provided by a local trader, and added that the company agreed on the price placed by the trader. The final price for a car can be accessed through Auto Trader's website and its mobile app.
If a customer agreed to the terms of the deal, Auto Trader will provide a custom point-of-sale system and the vending machine's mechanical door will open allowing the person who bought it access.
Auto Trader said that by using the vending machine, users could significantly reduce the amount of transaction time. However, there are a number of market researches that show the otherwise. A number of studies have suggested that younger car buyers actually prefer to purchase their cars through a dealership.
Studies have shown that the younger generation, especially millennials and Generation Z, are more inclined to visit a dealership when purchasing their cars. According to studies, millennials and Generation Z visit an average of 3.8 dealerships. Additionally, 83 percent of younger car buyers said that they would not buy a car if they have not tested it. Furthermore, 89 percent of younger buyers said that their decision whether to buy a car mostly depends on the car test.
