RE: Lotus launches 'Drive' e-commerce platform
RE: Lotus launches 'Drive' e-commerce platform
Wednesday 2nd March 2022

Lotus launches 'Drive' e-commerce platform

New sales shake up means cars are now bought direct from the factory; here's how it will happen



Somewhat lost in the news about the Type 132, the Emira, the last Elise (and everything else going on at Hethel) has been a radical change in how Lotus sells its cars. From the traditional wholesale business model - where dealers buy stock from the manufacturer - Lotus will employ an agency model, where customers buy direct from the manufacturer. In this scenario, used by Polestar among many others, the dealers become agents for the factory, meaning Lotus has much more control over the sales process.

Having kicked off agency sales with the Emira, Lotus has now launched 'Drive', its e-commerce platform for managing every aspect of direct buying and selling. Lotus Drive will allow customers to value their part exchange, spec their car on the new configurator, choose a payment method and place the order. The new system will give buyers the option of choosing from delivery at home, collecting at Hethel or picking up from one of the 13 dealership sites.

Though this move will have been partly motivated by the need to modernise every aspect of Lotus ahead of the electric era, the recent transformation in car sales will likely have contributed as well. As recently as 2019, the idea of an entirely online car purchase would have seemed pretty adventurous; now Lotus's research suggests that 69 per cent of the people it surveyed expect to buy their next car without leaving the house.


Furthermore, a significant 88 per cent of those asked said they would prefer to buy direct from a car maker "if it's a seamless online process." That feels like quite an important caveat that Lotus Drive will have to get right. Later on down the line, it will give Lotus more influence over used car values, too, as cars financed by them will be sold back to the manufacturer.

For the moment, the new platform is only being offered in the UK for Emira V6 First Editions, promising "a logical and intuitive journey for the customer." It's live on the Lotus customer site, taking in every step from choosing colours and options to doing the finance credit check. Don't blame us if it's such a seamless process you end up ordering one...

Lotus's Executive Director of Sales and Aftersales, Geoff Dowding, commented: "Lotus Drive gives us the ability to deliver a consistent and highly personal shopping experience to our customers. Additionally, it will allow us to understand what cars customers want and build them to order, as well as gather and use customer data to personalise offers."



Author
Discussion

dzernski

Original Poster:

130 posts

125 months

Wednesday 2nd March 2022
quotequote all
The thing about having a dealer network and originating the sales there is that the dealer has a vested interest in keeping the customer happy and may have some leverage with the producer owing to the volume of products the dealer is responsible for. What we are in the process of learning with respect the transition to this model and the Emira (and speaking as a first time Lotus customer) is that the dealers are in the same information blackout as the ultimate customers are with respect the delivery of the product.
I understand the change in sales model, but with it has to come a drastic improvement in direct customer communications

rossfitz

501 posts

282 months

Wednesday 2nd March 2022
quotequote all
Not sure that a vested interest in keeping customer’s happy and the turnover of sales people who work at dealerships can work hand in hand anymore. I bought a Tesla 5 years go with a click of a button and buying recently from Toyota at 1 of their dealers, it felt extremely old school with nothing but tight suits and seemingly arrogant sales people who were almost too excited to hide the pound signs in their eyes as I signed up for a Yaris GR.


redroadster

1,886 posts

263 months

Wednesday 2nd March 2022
quotequote all
It's normal everyday to purchase in this way, look at the new specialist used car sites like cazoo, nees good back up service centres not million pound showrooms.

phillv6

3 posts

68 months

Wednesday 2nd March 2022
quotequote all
Maybe I’m just too old fashioned, I’ve never bought a new car but a fair few nearly new, I ALWAYS test drive before I buy as I want to know what the drive is like, afterall it’s not a small purchase.

I can understand that your Joe average probably feels that buying a car is like buying a household appliance, but as an Evora owner how on earth is this going to work for myself and others that feel the same ? Surely from an enthusiasts point of view you want to know how a car drives and probably compare with models of different marques confusedconfused

Edited by phillv6 on Wednesday 2nd March 12:44

Manic Street Sleeper

1,173 posts

72 months

Wednesday 2nd March 2022
quotequote all
Can you return it if it doesn't fit ?

48k

17,615 posts

179 months

Wednesday 2nd March 2022
quotequote all
phillv6 said:
Maybe I’m just too old fashioned, I’ve never bought a new car but a fair few nearly new, I ALWAYS test drive before I buy as I want to know what the drive is like, afterall it’s not a small purchase.

I can understand that your Joe average probably feels that buying a car is like buying a household appliance, but as an Evora owner how on earth is this going to work for myself and others that feel the same ? Surely from an enthusiasts point of view you want to know how a car drives and probably compare with models of different marques confusedconfused

Edited by phillv6 on Wednesday 2nd March 12:44
I agree with you. I always want to test drive a car before buying. But then there is nothing in the article that suggests it won't be possible to do so.

ikonic

404 posts

229 months

Wednesday 2nd March 2022
quotequote all
phillv6 said:
Maybe I’m just too old fashioned, I’ve never bought a new car but a fair few nearly new, I ALWAYS test drive before I buy as I want to know what the drive is like, afterall it’s not a small purchase.

I can understand that your Joe average probably feels that buying a car is like buying a household appliance, but as an Evora owner how on earth is this going to work for myself and others that feel the same ? Surely from an enthusiasts point of view you want to know how a car drives and probably compare with models of different marques confusedconfused

Edited by phillv6 on Wednesday 2nd March 12:44
Not sure what makes you think you won’t be able to test drive.

Look at the Tesla model of sales - if anything their test drive system is even easier than traditional dealerships.

Book online, turn up, get handed the keys (or card in Tesla’s case), go for a drive, return the car, then leave.

No dancing around with salesmen who are trying to qualify you as a buyer, looking at finance deals you don’t want etc.

Just in and out with a test drive, then back home to order if you like it.

Wab1974uk

1,426 posts

58 months

Wednesday 2nd March 2022
quotequote all
No dealerships = no haggling.

The price on the screen, is the price you pay. Happy days for manufacturers

JP__FOX

594 posts

266 months

Wednesday 2nd March 2022
quotequote all
You can still book test drives for Tesla etc. online before buying. I don't see why it will be any different with Lotus when they've got the cars available.

plenty

5,036 posts

217 months

Wednesday 2nd March 2022
quotequote all
ikonic said:
No dancing around with salesmen who are trying to qualify you as a buyer, looking at finance deals you don’t want etc.
Exactly. Unbundling the test drive from salesperson involvement can only be good for the customer.

highway

2,741 posts

291 months

Wednesday 2nd March 2022
quotequote all
So everyone pays list unless the factory decides you are worthy of some money off?

ballans

939 posts

136 months

Wednesday 2nd March 2022
quotequote all
Wab1974uk said:
No dealerships = no haggling.

The price on the screen, is the price you pay. Happy days for manufacturers
That was my immediate thought. I understand there probably isn’t much discount on a specialist product like lotus but you would want something thrown into the deal.

matrignano

4,702 posts

241 months

Wednesday 2nd March 2022
quotequote all
Manic Street Sleeper said:
Can you return it if it doesn't fit ?
That's a good question.

Do distance selling regs apply?

breadvan

2,122 posts

199 months

Wednesday 2nd March 2022
quotequote all
I really like the idea but Teslas are a logical purchase. I'm not sure the same process will be as successful for an emotional purchase like Lotus.

Mark Asread

3,367 posts

170 months

Wednesday 2nd March 2022
quotequote all
This will work if you're trying to steal some Model X customers and get them into your EV SUV.

I don't think this is the way people will buy Emiras.

48k

17,615 posts

179 months

Wednesday 2nd March 2022
quotequote all
highway said:
So everyone pays list unless the factory decides you are worthy of some money off?
TBH I don't see a problem with that. To me, if a product has a salesman it means there is margin in the price for negotiation because all or part of their earnings will be based on sales. Remove the salesman, remove the need to negotiate. Supply chain has reduced costs and the price is the price. I don't go to the corner shop and try and get a discount on a Twix.

tgx

147 posts

181 months

Wednesday 2nd March 2022
quotequote all
Presumably there will be a showroom with floor models for sale as well.
If you want to order one with variations from the floor model then that's how
the online sale goes. I think a lot of people that buy online either have friends
with the same car, see it in a parking space or visit a lot prior. Used car sales are
different from new orders. Sites like Carvana bring you the car but you get to send
it back if it isn't up to snuff.

Wab1974uk

1,426 posts

58 months

Wednesday 2nd March 2022
quotequote all
48k said:
highway said:
So everyone pays list unless the factory decides you are worthy of some money off?
TBH I don't see a problem with that. To me, if a product has a salesman it means there is margin in the price for negotiation because all or part of their earnings will be based on sales. Remove the salesman, remove the need to negotiate. Supply chain has reduced costs and the price is the price. I don't go to the corner shop and try and get a discount on a Twix.
And do you really think a car Manufacturer suddenly saving Millions on Dealerships and discounts, are actually going to reduce the price of the car?

No. They'll just take the additional profit.


Panamax

10,100 posts

65 months

Wednesday 2nd March 2022
quotequote all
Wonder where all these new Lotus owners will be going for parts and service?

The Lotus factory is in the middle of precisely nowhere.

leglessAlex

7,502 posts

172 months

Wednesday 2nd March 2022
quotequote all
I'm in the camp that thinks this is a shame. I bought my Lotus Evora (and sold it back to him) from Jamie at Bell & Colvill, and the fact I was dealing with someone I liked, trusted and who has become a friend is at least a small part of the reason I went with Lotus in the first place.

Times change, I guess...