The technology – which was introduced by the company in 2021 – allows users to employ everyday phrases in place of traditional drop down menus. Currently, it is used to make more than 800,000 consumer searches every month.
Microsoft has licensed ChatGPT technology to be incorporated into its search and browser products and, while no-one is talking seriously about Google’s grasp on this part of the market being threatened, AI does represent the first potential step change in online search technology for many years, perhaps decades.
Key is to have a fair and transparent panel of lender products to offer to customers, showing compliant processes and value to the end consumer. This will largely be reliant on IT system providers in both the showroom and digital space to provide data such as audit trails that capture and can demonstrate compliant selling across a panel of lenders; data on market finance rates to ensure dealer offerings remain competitive; and sufficient insight across all their lending partners to produce accurate representative examples.
Taking the form of an application programming interface (API), it enables car buyers to search a range of finance and insurance products quoting on varying deposits, length of term and different levels of credit and GAP insurance cover.
The economic situation is going to affect a very large proportion of the population to varying degrees and that will inevitably have an effect on their approach to buying a used car. Simply, people are going to be more concerned when it comes to choosing a vehicle that is likely to be reliable, ensuring that it has the right aftersales package such as a warranty, and that it is financed in a manner that is affordable
In a properly constructed panel, lenders are not in opposition but meet specific needs. The prime lender, for example, will still be the first port of call and approve the same percentage of deals as they would if they were the sole provider. However, in a panel, there are a number of options to try if the prime declines, with each one offering a different degree of likelihood for approval and risk appetite.
The ability to record, review and audit all aspects of the consumer journey in one place will prove an important part of the new responsibility to “put customer needs first”.
The cost of living crisis and the high likelihood of recession mean that motor finance providers will almost certainly tighten the criteria on which they base their lending in order to minimise the risks they face.
Called “Better Buying Journeys” and subtitled “How new thinking can help motor retailers create the best customer experience online and in the showroom” it covers new developments in vehicle search, how to build customer engagement, creating the right digital culture, and how traditional dealers can make the most of their premises.
Recently launched in the US, GVAs work by showing Google users a selection of local vehicles that meet their needs, allowing them to click straight through to the dealer’s vehicle description page. To make this possible, dealers simply need to upload their stock list to Google and are charged on a pay-per-click rate. In the US, this is believed to be $0.60-$1.40.
