Ford UK to sell cars online – will it work in Malaysia?

Ford UK has announced that they will be selling vehicles directly over the internet from the 29th of June this year. This comes after research conducted by Ford stated that 40 percent of buyers in the UK aren’t even bothered about a test drive.

After purchase online, customers can drop by one of the 12 regional delivery centres to pick up their ordered goods. Before you ask, apparently haggling is still possible, even if the internet route is chosen as it is also supported by a call centre for the not-so tech savvy.

This will have a massively detrimental effect on the 550 dealership networks that would see sales drop by a certain amount. We should keep in mind that 40 percent is a hypothetical (internet-poll-like) figure and there are still a majority of customers who would rather purchase the car at a dealer enveloping the whole feel of the car with their senses along with that all important test-drive.

Like many things, this would be a hard sell in countries like Malaysia where purchases are governed by our hearts and not our minds. We could do all the research we want before we drop down to our local Ford dealer, but when you’re spending 100 times your monthly salary you want the whole car buying experience to be fulfilled.

Again this might be a good way to shift your car, in a country where there isn’t a big gap in salaries and car prices, but not here. Especially in a country where a car has traditionally been part of the family, very much like an extremely expensive pet. The figure of people wanting to buy a car online would be drastically lower in the ASEAN region, but there would still be a market centred around cheap everyday runabouts.

Most car companies in Malaysia barely pay any attention to online marketing and advertising, often choosing a print ad in a magazine with say a 3,000 print run over a hundred thousand impressions of online advertising, both often going at the same price. There only a few which are online savvy, such as Proton Edar for example – they even used to allow you to book your car online and there was even a feature called Proton Live where you could even ask questions and ‘haggle’ with an online sales advisor.

In the end Audi UK, who say they will never adopt this route, puts it nicely: “We would not do it because people like to sit in the cars and touch them. And the dealer is there to help with the decision-making process.”

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Jacob Alexander

Jacob Mathew Alexander has been a motoring nut for as far as he can remember and has recently turned his passion into writing. After spending some time in the same industry in the UK, Jacob's work is from a slightly different perspective.

 

Comments

  • Black Dog on Jul 04, 2010 at 12:50 pm

    I think more than 70% of Malaysians never go for test drives. For more popular models, it’s even so difficult to book time for test drives. People here like to touch the cars first before they buy. I think online can be done for a small percentage of people who either just book the car straight away without coming to the showroom or those who’ve seen the car in the showroom but decided to book later.

    Sometimes we’d like to buy the car but attended by a lousy salesman that discourage you from buying a car. I’ve met a lot of these downright rude and negative salesman that already set in their mind you’re not buying. and not entertain you.

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  • Black Dog on Jul 04, 2010 at 12:50 pm

    I think more than 70% of Malaysians never go for test drives. For more popular models, it’s even so difficult to book time for test drives. People here like to touch the cars first before they buy. I think online can be done for a small percentage of people who either just book the car straight away without coming to the showroom or those who’ve seen the car in the showroom but decided to book later.

    Sometimes we’d like to buy the car but attended by a lousy salesman that discourage you from buying a car. I’ve met a lot of these downright rude and negative salesman that already set in their mind you’re not buying. and not entertain you.

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  • ah long2 on Jul 04, 2010 at 1:06 pm

    This would work in countries with high broadband penetration.
    where vitually on-line transactions is a way of life.
    UK is 52% , South Korea 89% , HK 79% & S’pore 69%
    In M’sia difficult cos we need sales rep to arrange with
    banks to settle customers 9-10 year car loan -.
    Some require arranging 110% loans. In short we
    are not ready for this and cars here costs an arm & a leg plus plus
    so the financing part is complicated unlike in UK where an avarage
    car costs GBP9-10K.

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  • tiadaid on Jul 04, 2010 at 1:13 pm

    This would only work if you can pay one lump sum for the car, which is often unlikely here. But I always wonder, why isn’t leasing part of the sales option here in Malaysia. Can anybody explain?

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    • If not mistakrn…Toyota have leasing option thru toyota capital….correct me if i’m wrong

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      • Tiadaid on Jul 04, 2010 at 7:25 pm

        Do you mean here in Malaysia? That’s the first I’ve heard of it…

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      • Nissan owner on Jul 05, 2010 at 8:28 am

        Similarly, if you buy a Nissan, you can opt to take a loan from Tan Chong. The interest rate is quite competitive too.

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    • Paul Tan on Jul 04, 2010 at 8:35 pm

      http://www.toyotacapital.com.my/af.php

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    • Tiadaid on Jul 05, 2010 at 10:33 am

      Hmm…very interesting deals. Alas, I’m not into Toyotas

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  • year 2020 perhaps..? even nowadays buying stuff from eBay also people still scared to buy..

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  • ris56 on Jul 04, 2010 at 1:44 pm

    Hope so..

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  • Barkcrack on Jul 04, 2010 at 1:49 pm

    it will work with Proton. Buying proton like buy bicycle, cheap and after a year will become piece of junk

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    • Neonda on Jul 05, 2010 at 9:46 am

      Errrr but still 1985 Proton Saga lots on road till today..adoi basher.

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  • nabill on Jul 04, 2010 at 2:04 pm

    wat works in their market doesnt mean wil work in our market

    buying a car is a major investment , id rather go n see it in flesh rather than in pics….

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  • Peter on Jul 04, 2010 at 2:22 pm

    It will not work in Malaysia…

    But other countries like Australia, US…This might work….

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    • Proton will work. Ppl who buy proton normally buys them blindly.

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      • Neonda on Jul 05, 2010 at 9:47 am

        what is ur fact for this? again brainless basher.

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      • orang_malaysia on Jul 05, 2010 at 11:01 am

        buy P1 blindly?…..hahaha.Come on,comment wisely.

        OK, u might be rich enough to buy non-P1 makes, but P1 buyer may not as stupid as what you want to tell here dude….

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  • mitlanevo on Jul 04, 2010 at 2:24 pm

    why not? i see ppl buying cars from mudah, ebay and lyn websites……

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  • the7asmann on Jul 04, 2010 at 3:02 pm

    i dun have credit card.

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  • CK Lim on Jul 04, 2010 at 3:17 pm

    I believe it will work for certain brands – Proton and Perodua in particular in major cities. After all, their sales representatives are no more than order takers and add little value in winning (or losing) customers.

    It is pointless to have five-star showrooms and in choice locations. The money is better invested in bigger and better service centres.

    To stand the ball rolling, either company has to dangle an enticing carrot, perhaps free service vouchers.

    The question is whether has a political will to sell cars online. We shall see.

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  • CK Lim on Jul 04, 2010 at 3:23 pm

    Couple of typos. Kindly ignore my earlier comment. Thks.

    I believe it will work for certain brands – Proton and Perodua in particular – in major cities. After all, their sales representatives are no more than order takers and add little value in winning (or losing) customers.

    It is pointless to have five-star showrooms and in choice locations. The money is better spent in bigger and additional service centres.

    To stand the ball rolling, either company has to dangle an enticing carrot, perhaps free service vouchers.

    The question is whether either company has a political will to sell cars online. We shall see.

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  • odi862 on Jul 04, 2010 at 3:52 pm

    This might work in Malaysia but only to certain group of buyers. The most likely people to buy car online are the not conventional buyers (the non T & H buyers) that go to several car dealers for different brands and then go home to decide. I’ve seen some of my friends like this and if the dealers do have online purchasing, they might just use it instead of going back to the dealer that they have decided. I would because it will save me the hassle.

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  • mystvearn on Jul 04, 2010 at 4:56 pm

    If Dell can sell laptops online in Malaysia without people looking at it, so whats the difference with cars?

    Someone interested in Ford might have viewed it at a supermarket or something, tried sitting out, but don’t want to buy at the supermarket because of not enough time. SO just go online and buy.

    And if Ford can make like Del-online deals better than Sales centre deals, then I really don’t see why this cannot succeed.

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  • transformer on Jul 04, 2010 at 5:25 pm

    If buying a car online cheaper than from showroom, then why not?

    but please, i won’t buy a local makes online… only Euro/Japs makes…

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  • It will be good like BMW Malaysia can cut those middle man to sell it online like now Euro has dropped 20%, which those dealer like earning more, but not redirect the saving to the customer. Euro dropped from RM5 to RM4! Imagine how much BMW selling price should drop with that sense.

    Sell direct over internet and reduce cost to consumer is the coolest thing.

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    • It’s not that simple, bmw dealership nowadays are making lesser n lesser margin on the price of the car. Plus the price is governed by the G not by the dealer themselves. If you think by putting bmw cars online you can get 20% less, you might be dreaming.

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      • of course, in bolehland, everything good to the consumer is daylight dreaming.

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  • Rudeboi on Jul 04, 2010 at 7:50 pm

    I find it hard to imagine car buyers in Malaysia using the web to buy an expensive item like a brand new car. It may be the case in 10 years’ time but certainly not today

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  • 4G63T DSM on Jul 04, 2010 at 8:28 pm

    Something like this could have probably saved Saturn from oblivion in the late 90s…unfortunately beofre the boom of the internet.

    After all, they were targeting demographics that were more insterested in cars as an appliance than something that evoked emotion.

    As for leasing, this would never work in malaysia…..as cars here are plainly TOO EXPENSIVE. Given say a very generous 5 year lease term, lease companies would like to write down the cost of the car to minimize risks. Imagine a $1000-2000/mth lease rate for something like a Persona. And then after you’d still have to pay a hefty residual fee if you want to keep the car. Not going to work unless you are a company and a pretty cash loaded one at that.

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  • There is one factor this is not discussed here. In UK or EU, price fixing is illegal, every dealer must be free to set their own price, hence the need for buyers to shop around to find the best deal for the same car model. With this background, it make sense for buyers to shop on line as it save the hassles of going to every dealer’s office. In fact this is not something new in EU, I know a UK expat here who told me that he bought a car on the web from a dealer in Belgium ( yes, they stock right hand drive models for UK customers ). He said it was cheaper than dealer in UK soil. Here in boleh land, price fixing is a way of life by our mercantilist government.

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  • Yup, buying online will be better for those price-varied options like some mentioned here. But for ‘fixed price’ purchase just like in Malaysia, it makes no sense.

    It may only work if the price difference is huge, say, Honda Freed showroom with all sorts of warranty – 115K. Online – 95K WYSIWYG. Or, Camry 150K showroom price, Online, 120K WYSIWYG. :D

    I may go for cheaper option on those “reliable” brands, and save that amount of money. This works for certain electronic sales as well. E.g. There’s one TV I bought from TESCO without remote or any sort of warranty (usually 1 year). Price is reduced about 30%.

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  • trav_da_man on Jul 05, 2010 at 1:59 am

    Buying cars online esp in UK or europe is feasible since they have a varienty of option list to choose, from multiple car colors, interior color, trims, engine choice, extra equipment, safety n electronics and so on. For instance,an Audi A4 has around 10-20 specs to choose.

    For us here, since basically everything is packaged, it doesnt seem feasible at all. Here we can have only 2 specs of Audi A4 to choose around.

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  • Armchair market analyzer.. on Jul 05, 2010 at 8:41 am

    I see a lot of negativity here. It hasn’t been tried before your all know the answer already. Whether it will work or not, the answer is still out there. We’ll only know once somebody tried it. Similarly, many said Chinese cars won’t sell here. It may not be a huge market success, but it least it is profitable enough to continue operations.

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  • Motorist on Jul 05, 2010 at 11:52 am

    Malaysia as a whole (incl. east coast & east M’sia) isnt ready for any internet purchasing yet. The 3 major cities (KL, PG, JB) maybe ready but consumers still have the mentality of touchy-feely when it comes to purchasing the big 2 (house & car).

    It has been written that house & car are the 2 biggest purchases you will ever make in your life. Knowing how a property & car can be a status symbol to many kiasu ppl in these 3 major cities, it is even more paramount that the touchy-feely is done prior to purchase. Do you think a Datuk will NOT ‘test drive’ his latest sweet thang before deciding to make her his mistress? Do you think Datuk will make his mind up by just looking at an internet profile? ;-)

    The most likely scenario will be an appointment with the nearest / self selected showroom to book your car. No money transaction will happen over the net. All legal documents will still need to be signed on paper hence the need to visit a showroom. Perhaps the salesman can come visit you but paper documentation & money transaction will still be paper, not over the net.

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  • My I know whats GHiA means..? Tq uolls

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