AvtoVAZ launched an online car sales service

On April 15, AvtoVAZ launched an online car sales service on its official website. After selecting a model and configuration, the transaction is completed through a specific dealer of the company remotely.

As the Vedomosti newspaper writes with reference to the company's message, AvtoVAZ used to have a car booking service on its website, but then the client had to come to the dealership to conclude an agreement. In the context of the coronavirus epidemic, the buyer can leave a request on the website, and then the manager of the car dealership will contact him to complete the documents online. The system also allows you to remotely apply for a loan or evaluate an old car using photographs for a trade-in exchange (the buyer can also call an appraiser to your home).

You can pay for a new car by card or using a QR code with payment details. The AvtoVAZ representative clarified that in the first case, the acquiring commission falls on the dealer, and in the second, its availability and size depends on the client’s bank. In regions where car dealerships continue to operate, buyers can pick up their car themselves, and in other cases the car will be disinfected and delivered to their home by tow truck.

However, three Moscow AvtoVAZ dealers told the publication that they do not sell cars online. “A person needs to pay for the car in advance, pay for delivery. They will bring it to him, he will look: there’s some kind of chip, no, I won’t take it. This means that the car needs to be brought back, but the title is already full,” explained the manager sales of Tekhinkom. Problems may also arise with the delivery of the car, since after registration of the title the car already belongs to the buyer, and the dealer does not have documents allowing it to be moved by a tow truck.

President of the Russian Automobile Dealers Association (ROAD) Oleg Moseev called AvtoVAZ’s decision to develop online sales together with dealers correct. According to him, attempts by other companies to sell cars directly ended in nothing. However, now everything depends on the readiness of consumers for this sales format.

“The buyer of a new car prefers to look at it. World experience shows that for used cars online is developing, the only new exception is Tesla, and the rest cannot occupy this niche,” Moseev said, noting that online car sales during the pandemic are unlikely to be widespread.

Let us note that earlier a number of companies and some dealers announced the launch or expansion of online services for selling cars. For example, Nissan transferred loan approval and trade-in assessments online, Hyundai Motor CIS launched an online booking service for some models, and Kia Motors Russia & CIS offered to receive online approval for a car loan.

According to the Association of European Businesses (AEB), sales of new passenger cars and light commercial vehicles (LCVs) in Russia in the first quarter increased by 1.8% compared to the same period in 2019 and amounted to 398.5 thousand vehicles. In March, the market grew by 4%, to 162.3 thousand cars, after a February fall of 2.2%. According to Konstantin Avakyan, deputy director of the department for working with key clients of the AutoSpetsCenter group, in April, with the current restrictions imposed due to the epidemic, sales can be expected to decline by up to 90%.