Disruption. It was the theme of the AADA 2018 National Dealer Convention and it was a subject addressed in detail at the NADA 2019 Convention in January.

NADA’s Executive Vice-President of Legal and Regulatory Affairs, Andy Koblenz, alongside Senior Vice-President of Public Affairs, Jonathan Collegio, presented research showing that the disruptors still have a long way to go before replacing the traditional model of car ownership.

Mr Koblenz will be a special guest at the AADA 2019 National Dealer Convention & Expo in Melbourne from September 9 to 11. He will speak to the subject of Disruption, sharing his belief that the traditional model of automotive dealerships has a fair way to go yet before being replaced.

We have heard predictions over the past few years that ride sharing and subscription models will supersede traditional car ownership. With research showing, however, that the average American family makes 10 car trips per day – and with an average wait time of six minutes per ride sharing trip – Mr Koblenz argued that it was hard to see people giving up their cars and waiting around for an hour per day in order to run their errands.

Nearly 90 per cent of Americans surveyed said they had no plans to give up their personal cars. Just 11 per cent said they would get rid of their car in favour of ride sharing.

The under-35s, aka the ‘Millennial generation’, were slightly more prepared to give up their personal vehicles, with 81 per cent of those surveyed indicating they would. However, the over-35s showed strong resistance, with 93 per cent stating they would keep their personal car.

An overwhelming 93 per cent of all respondents said that a car provides freedom, while just seven per cent said car ownership was a hassle. Amongst millennials this split was 85-15, while for the over-35s it was a massive 98-2 split.

The potential savings from not owning a car were estimated to be US$3,445 annually, which, with an average wait time of one hour per day, equated to US$9.44 per hour. Considering 88.5 per cent of respondents earned more than US$9.44 per hour, the survey concluded that the financial savings were not worth the time expended in waiting for ride shares.

The survey also examined attitudes to autonomous vehicles (AVs), with 56 per cent of respondents saying they would purchase an AV. Amongst millennials this figure was 71 per cent, while for the over-35s it was 49 per cent.

Regarding the degree of autonomy, 80 per cent said they would prefer mostly autonomous cars with an 80 per cent safety increase, while 20 per cent said they preferred near-complete safety with fully autonomous vehicles.

Mr Koblenz will present the full findings of the survey at the AADA 2019 National Dealer Convention & Expo in September.

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