The old way of selling vehicles crashed into a new pandemic in mid-March, fundamentally altering the nature of an exchange that went back decades.
Although some national chains were already pushing an online-shopping model, many traditional dealerships and used-car lots still depended on the familiar in-person experience, where a buyer would browse a website but still stroll among the available stock, talk with a sales representative, take a test drive, negotiate a price with the rep, have the deal approved by a manager and come back at another time to pick up the vehicle.
"Not to have handshakes or be able to see their smile because they've got a mask on, waving at them through the window — it was all very sudden and very strange," said Toby Oliver, sales manager at Keeler Mini in Latham. A 20-year veteran of the business with eight years at Keeler, Oliver said he was bothered and disoriented by the altered operating procedures from late March to mid-April, when showrooms were closed, test drives not allowed (though a return policy was implemented) and finalizing a sale involved leaving folders of paperwork on counters then retreating, so the buyer could walk over to pick it up.
"The way everything had worked for so long suddenly didn't anymore," said Oliver.
"Social distancing was a problem to get used to," said Bill Lia Sr., patriarch of a family that owns 22 dealerships in New York, Connecticut and Massachusetts, including seven from Albany to Glens Falls. Lia said, "Masks definitely made communication more difficult."
"We had to go to by-appointment only," said Michael Rubinchuk, who has owned Michael's Auto Plaza in East Greenbush for more than 16 years. Known in TV spots and billboards as "Mike the Russian," Rubinchuk said the conviviality of his advertising persona was somewhat hampered during the sales experience by health and safety restrictions dictated by COVID-19 concerns. But, he added, there was a benefit, too: "You only got the serious buyers who really needed a car. They said what they needed, you settled on a price — it's done. No (B.S.)."
Nationally, vehicle sales plummeted after the economic shutdown and quarantining took hold across the country. The automotive-information service Edmunds said April sales were the worst in at least 30 years, with a 52.5% decrease from April 2019. But they began to rebound, local dealers said, building strongly since late May.
"It has affected the business, but overall it hasn't cost me too much," said Lia. "People still have to drive.
"Our June was probably higher than last June," said Oliver, who said Keeler Mini sold 12 to 15 new and used vehicles per week during the month.
In general, dealers said, sales early in the pandemic were to established customers.
"People know me, they come back to me when things are tough," said Rubinchuk.
"Some of our (customers) are on their seventh, eight, ninth Mini. They know what they want," said Oliver, adding that people new to the brand started shopping as the weather warmed and restrictions eased somewhat even as the pandemic stretched on.
In some aspects, dealers said, having to adapt very quickly to a new way of doing business pushed the industry forward in positive ways, for buyer and seller.
"The silver lining to all this COVID and coronavirus stuff is that it made everybody get used to doing things faster and more in the digital world," said Oliver, citing Keeler's adoption of online signatures for most documents and a host of other advances.
"With the Internet, people can do research, know exactly what they want and exactly what we have," said Rubinchuk. "All goes faster."
Lia agreed, saying online browsing and extensive website information about vehicles in inventory have largely replaced the tire-kicking of yore, though he doesn't foresee anytime soon a complete adoption of an Amazon.com style of selling cars.
Said Oliver, "Most people still need to get behind the wheel, see what it really feels like." He compared it to his experience recently purchasing electronics from a big-box retailer.
"I ordered online, pulled up, the guy came out and tossed it it through my back window. It was great," said Oliver. "But I don't think we'll ever get to that with cars."
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