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| Pandemic Forces Car Dealers to Do the Unthinkable: Sell Online | Pandemic Forces Car Dealers to Do the Unthinkable: Sell Online |
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| After more than a decade of getting around New York City almost exclusively by subway and bus, Nicole Avallone decided to buy a car in April after watching the rapid spread of the coronavirus. | After more than a decade of getting around New York City almost exclusively by subway and bus, Nicole Avallone decided to buy a car in April after watching the rapid spread of the coronavirus. |
| But with dealerships closed in the New York area, Ms. Avallone did something few car buyers are able or willing to do: buy a car online. Over the course of several phone calls, text messages and Zoom meetings with a sales representative at Paragon Honda in Queens, she found a low-mileage, dark-purple Honda HRV that the dealership delivered to her door in Brooklyn. | But with dealerships closed in the New York area, Ms. Avallone did something few car buyers are able or willing to do: buy a car online. Over the course of several phone calls, text messages and Zoom meetings with a sales representative at Paragon Honda in Queens, she found a low-mileage, dark-purple Honda HRV that the dealership delivered to her door in Brooklyn. |
| “We did a lot of the paper work online, and we didn’t have to spend hours in the dealership,” said Ms. Avallone, a psychotherapist. “I had a million questions, but it was a lot easier than I thought.” | “We did a lot of the paper work online, and we didn’t have to spend hours in the dealership,” said Ms. Avallone, a psychotherapist. “I had a million questions, but it was a lot easier than I thought.” |
| E-commerce has been embraced for all manner of goods and services — books, travel, groceries, electronics — but auto sales have resisted the trend. While consumers typically use the internet to browse and arm themselves with information, they have gone to dealers for most transactions. | E-commerce has been embraced for all manner of goods and services — books, travel, groceries, electronics — but auto sales have resisted the trend. While consumers typically use the internet to browse and arm themselves with information, they have gone to dealers for most transactions. |
| With the coronavirus and stay-at-home orders, that is changing. | With the coronavirus and stay-at-home orders, that is changing. |
| “Dealers are discovering they can sell cars online,” said Alan Haig, president of Haig Partners, an automotive retail consultant. “They are learning how to interact with customers outside the showroom.” | “Dealers are discovering they can sell cars online,” said Alan Haig, president of Haig Partners, an automotive retail consultant. “They are learning how to interact with customers outside the showroom.” |
| In reporting its first-quarter earnings, General Motors said 750 of its dealers had signed up for its “Shop Click Drive” e-commerce system since the outbreak began. More than 85 percent of its dealers in the United States now use it, said G.M.’s chief executive, Mary T. Barra. | In reporting its first-quarter earnings, General Motors said 750 of its dealers had signed up for its “Shop Click Drive” e-commerce system since the outbreak began. More than 85 percent of its dealers in the United States now use it, said G.M.’s chief executive, Mary T. Barra. |
| AutoNation, a chain of more than 325 dealerships, also reported a jump in online-only sales in March and April. | AutoNation, a chain of more than 325 dealerships, also reported a jump in online-only sales in March and April. |
| The company’s chief executive, Mike Jackson, said he believed online sales would continue increasing even as stay-at-home restrictions were eased. “This is what the industry has needed to do for a long time,” he said. “This is an inflection point, a strategic shift, and it’s not going back.” | The company’s chief executive, Mike Jackson, said he believed online sales would continue increasing even as stay-at-home restrictions were eased. “This is what the industry has needed to do for a long time,” he said. “This is an inflection point, a strategic shift, and it’s not going back.” |
| Paragon Honda sold about 70 vehicles a month online before infections started to surge in March, a small fraction of its typical monthly total of about 1,300. But when officials in New York ordered people to stay home, the dealership had a dozen or so of its sales representatives switch to online sales. | Paragon Honda sold about 70 vehicles a month online before infections started to surge in March, a small fraction of its typical monthly total of about 1,300. But when officials in New York ordered people to stay home, the dealership had a dozen or so of its sales representatives switch to online sales. |
| In April, the dealership sold 378 cars online, and the total for May is expected to exceed 500, said Brian Benstock, Paragon’s general manager. “We didn’t think we’d see this much business, but in April we had no choice,” he said. | In April, the dealership sold 378 cars online, and the total for May is expected to exceed 500, said Brian Benstock, Paragon’s general manager. “We didn’t think we’d see this much business, but in April we had no choice,” he said. |
| Paragon had a head start because it had been picking up and delivering cars for oil changes and other services for the last two years, using a system that allowed customers to schedule, approve, and pay for repairs by text. As a result, it had a staff of experienced delivery drivers ready to go. | Paragon had a head start because it had been picking up and delivering cars for oil changes and other services for the last two years, using a system that allowed customers to schedule, approve, and pay for repairs by text. As a result, it had a staff of experienced delivery drivers ready to go. |
| Paragon’s drivers wear masks and gloves, cover seats with protective plastic and disinfect the steering wheel and other places that might have been touched during the delivery. | Paragon’s drivers wear masks and gloves, cover seats with protective plastic and disinfect the steering wheel and other places that might have been touched during the delivery. |
| Until recently, customers had few options for buying cars online, among them Tesla, the electric car company, and Carvana, a nationwide seller of used cars. | Until recently, customers had few options for buying cars online, among them Tesla, the electric car company, and Carvana, a nationwide seller of used cars. |
| Tesla customers can choose and customize cars, secure financing and pay for their cars on the company’s website. Carvana has a similar system allowing customers to peruse its nationwide inventory. Buyers can have cars shipped to them, sometimes at no additional cost. | Tesla customers can choose and customize cars, secure financing and pay for their cars on the company’s website. Carvana has a similar system allowing customers to peruse its nationwide inventory. Buyers can have cars shipped to them, sometimes at no additional cost. |
| “This is what consumers want and expect now,” said Ernest Garcia III, Carvana’s chief executive. “The product comes to you. You don’t go to the product.” | “This is what consumers want and expect now,” said Ernest Garcia III, Carvana’s chief executive. “The product comes to you. You don’t go to the product.” |
| Conventional auto dealers face issues that online-only sellers do not, particularly in setting prices. Automakers use discounts and incentive programs to change prices as often as every month. Manufacturers give sales representatives leeway to cut prices to close deals, and customers know that the sticker price may not be the last word. Dealers resort to such discounts in part because other dealers in the area are competing to sell the same cars. | Conventional auto dealers face issues that online-only sellers do not, particularly in setting prices. Automakers use discounts and incentive programs to change prices as often as every month. Manufacturers give sales representatives leeway to cut prices to close deals, and customers know that the sticker price may not be the last word. Dealers resort to such discounts in part because other dealers in the area are competing to sell the same cars. |
| Some manufacturers prevent dealers from advertising the prices they would be willing to accept. For example, Honda typically requires dealers to advertise the list prices of cars on their websites, without taking into account discounts and incentives, Mr. Benstock said. For some models, that means Paragon is displaying a price that may be up to $7,000 more than what customers end up paying. | Some manufacturers prevent dealers from advertising the prices they would be willing to accept. For example, Honda typically requires dealers to advertise the list prices of cars on their websites, without taking into account discounts and incentives, Mr. Benstock said. For some models, that means Paragon is displaying a price that may be up to $7,000 more than what customers end up paying. |
| Updated June 12, 2020 | |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “It’s hard to sell a car online if you can’t tell the customer up front what the actual price is,” he said. | “It’s hard to sell a car online if you can’t tell the customer up front what the actual price is,” he said. |
| Honda said it discouraged dealers from advertising deals at less than list prices to protect the company’s brand image. An online-sales system that Honda offers its dealers allows them to display actual sales prices of a dealer’s choosing, but only after a customer has started provided some personal information and inquired about a particular vehicle on the lot. | Honda said it discouraged dealers from advertising deals at less than list prices to protect the company’s brand image. An online-sales system that Honda offers its dealers allows them to display actual sales prices of a dealer’s choosing, but only after a customer has started provided some personal information and inquired about a particular vehicle on the lot. |
| Paragon’s website complies with Honda’s rules. When it identifies a repeat or returning customer, it displays the actual price the dealership is willing to settle for. | Paragon’s website complies with Honda’s rules. When it identifies a repeat or returning customer, it displays the actual price the dealership is willing to settle for. |
| Ray Frias, a New York City police officer, said he was pleasantly surprised by the process of buying a car remotely. He chatted with a Paragon representative online before deciding on a 2020 Accord Sport, which the dealership recently delivered to him. | Ray Frias, a New York City police officer, said he was pleasantly surprised by the process of buying a car remotely. He chatted with a Paragon representative online before deciding on a 2020 Accord Sport, which the dealership recently delivered to him. |
| “I still had to talk to a lot of different people, but it was easier doing it online,” he said. “I could do it from my living room or while I was out for a walk. I didn’t have to spend hours in the dealership.” | “I still had to talk to a lot of different people, but it was easier doing it online,” he said. “I could do it from my living room or while I was out for a walk. I didn’t have to spend hours in the dealership.” |
| But some customers said they would not make a car purchase entirely online if they didn’t have to. | But some customers said they would not make a car purchase entirely online if they didn’t have to. |
| Ms. Avallone said she found it “a little scary” to make such a big purchase sight unseen. If she buys another car, she said, she will want to test drive it first. “I’d still prefer to see the car and sit in the car and smell the car before I buy it,” she said. | Ms. Avallone said she found it “a little scary” to make such a big purchase sight unseen. If she buys another car, she said, she will want to test drive it first. “I’d still prefer to see the car and sit in the car and smell the car before I buy it,” she said. |