Car Vending Machine Debuts in London
Thanks to Auto Trader, London residents can now purchase a vehicle the same way they buy a candy bar.
It’s pretty satisfying to buy a canned beverage or a candy bar from a vending machine. And now, Auto Trader wants to replicate the enjoyable, non-sticky aspects of acquiring something with the help of a vending machine by offering car shoppers the opportunity to purchase a vehicle from one then drive it away, all in one trip. It’s a gimmicky marketing tool that will no doubt attract attention due to its novelty. Auto Trader’s system allows buyers to do everything at the machine itself, with no trips to the dealer. It’s the latest sign of how the Internet continues to alter the car-buying experience, for better or worse.
Americans will no doubt be familiar with the concept of an automotive vending machine. Carvana established itself seven years ago and continues to grow. Their second quarter growth exceeded expectations by a significant margin and their nationwide conquest shows no signs of slowing down anytime soon. Carvana allows customers the option of picking up their cars from select locations by scheduling an appointment with the company. They’ll find the car in the machine once they get there.
Auto Trader’s new vending machine is a bit different because unlike Carvana, the company doesn’t sell vehicles. It just provides a space for retailers to advertise their vehicles. Auto Trader’s machine is operated by Lookers Motor Group, a new car dealership group in the U.K. Presumably that means the dealer will handle credit approval and vehicle registration. No word on whether they’ll be the ones handling the people kicking the machine when it inevitably malfunctions.
Auto Trader’s machine further differentiates itself from its Carvana counterpart by offering a single model. The car in question is the Renault Zoe, an all-electric hatchback with a purported range of about 179 miles. Auto Trader and the local dealer will sell the car at a no-haggle price of $19,407. It’s an easy way to advertise Auto Trader’s services while promoting the relatively new concept of electric car ownership, which is reportedly surging across the U.K., with a 60% increase in electric vehicle registrations compared to a year ago. Also, 74% of British citizens polled by Auto Trader would consider an electric car to replace their current vehicle, and 78% are concerned about their carbon footprint.
Overall, the British are on the cusp of widely accepting electric vehicles, with 85% think that the stigma of EV ownership is gone, and 54% are planning on buying electric the next time they’re in the market. And 77% also want vehicles in London to be hybrid or fully electric vehicles.
With Auto Trader’s vending machine, buyers don’t even have to waltz into the dealer. They go through the buying process on their phone. Once they’re done, the machine will give them the keys and they can drive away. It was enabled by the hard work of six engineers who spent three months designing and building the entire system. That included the software necessary for the point of sale and payment system. The door release mechanism was also made from scratch. There’s no word on whether the engineers had to reach in and get the car themselves if that system failed.
Buying a car without setting foot in a dealership is an alluring concept, and those interested in the Zoe can head over to London’s Spitalfields Market right now if they’re interested in the Renault. There is reason to be skeptical though. There’s no way to test drive the car before buying it. Buyers are also probably going to want to experience how it operates to see if it’s their cup of tea since it’s fully electric. And the usual concerns about buying a new car remain, like seat comfort and ergonomics. Auto Trader didn’t disclose how customers will deal with a car that gets stuck halfway either.
This marketing scheme seems designed for the Instagram and YouTube crowd. After all, posting about how you just bought a car entirely through a vending machine is practically guaranteed to generate likes. London’s first automotive vending machine is the first of its kind on planet Earth, and given the hurdles it faces, it might also be the last.
Images: Auto Trader; Carvana; Renault