Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Eniola Odetunde/Axios

The coronavirus is changing how people buy cars and get them serviced — behaviors likely to last long after the pandemic is over.

Why it matters: Confined by stay-at-home orders, people have discovered that getting a new car delivered is as easy as ordering groceries or takeout. Experts say they may never visit a showroom again, with consequences that will reverberate on every Main Street in America.

The big picture: It's already happening in China, where car sales are rebounding and dealers are reporting a sharp rise in virtual-showroom visits, writes ZoZoGo consultant Michael Dunne in Automotive News.

  • Buy, for example, one of Chinese automaker Geely's models online and the car will be disinfected and delivered to your driveway, while the keys are delivered separately via drone.

The revolution is happening in the U.S., too.

  • Consumers whose lease is expiring or who need to buy a car in a hurry want to do it safely, without visiting a showroom.
  • The enabling technology is provided by digital finance startups like Roadster and Digital Motors or by larger automotive digital marketing companies like Cox Automotive.

How it works: Consumers already do much of their car-buying research online. Once they've settled on a model, they can seek out a dealer that offers a buy-from-home option.

  • They can view that dealer's entire inventory online, searching for a car with all the features and options they want.
  • Consumers can then build their own deal, adjusting payment options, including the term and down payment, and factoring in the value of a trade-in vehicle or added warranty or service plans.
  • Credit approval occurs online, too.
  • Companies say a three or four-hour showroom visit can be compressed into a 15-minute online process plus another 30 minutes for the home delivery.

Car dealers have been cautiously exploring online sales for years, but the economic toll from the health crisis has abruptly shoved them into the digital age.

  • Orange Coast Auto Group owner Jon Gray says business at his Fiat Chrysler dealership in Costa Mesa, Calif., is down 50% since the pandemic struck, but online sales are picking up steam since he introduced the option a month ago — four months earlier than he'd planned.
  • "Without a doubt when the coronavirus is over, this is going to have legs."

"If there’s a silver lining to this crisis, it is the rapid adoption of digital tools and processes" to modernize the car-buying process, says dealer strategy expert Dale Pollak, senior vice president at Cox Automotive.

Yes, but: Not all dealerships will be able to adjust quickly, which will likely lead to consolidation.

  • "Any downturn or crisis is capitalism’s form of natural selection. It will absolutely weed out the weak," says Pollak.

The advantage could go to large regional dealer groups and publicly traded giants like Auto Nation, which have the technology resources, industry experts say.

  • They could squeeze out mom-and-pop dealerships that have thrived for decades on personal relationships polished at the Chamber of Commerce or as sponsors of Little League teams.
  • Dealers are struggling, with more than 2 in 10 fearing this might be the end of their dealership, according to a Cox survey.

What to watch: Many franchise dealers have invested millions of dollars to modernize their showrooms under strict guidelines from automakers. That could turn out to be a waste of money.

  • In virtual car sales, all that's needed is a service center and a place to store inventory, says dealer consultant Mark Rikess.
  • "You're going to see a lot of mom and pops, even in metro markets, who will say, 'This has passed me by. My dealership is still worth good money. I’m going to get out."

Go deeper

18 mins ago - Health

FDA advisory panel endorses Johnson & Johnson COVID vaccine for emergency use

Photo: Illustration by Cezary Kowalski/SOPA Images/LightRocket via Getty Images

A Food and Drug Administration advisory panel on Friday recommended the authorization of Johnson & Johnson’s one-shot coronavirus vaccine for emergency use.

Why it matters: The FDA is expected to make a final decision within days on the J&J vaccine, which was found to be 66% effective against moderate to severe COVID. An emergency use authorization would allow distribution to immediately begin, helping streamline and speed up the vaccine rollout across the U.S.

Dave Lawler, author of World
19 mins ago - World

Schiff: "Definitive" Khashoggi report sends clear message to Saudis

Photo: Leon Neal/Getty Images

The report released Friday on the murder of Jamal Khashoggi was short on evidence or new information, but Rep. Adam Schiff (D-Calif.) tells Axios that the “definitive” statement assigning responsibility to Saudi Crown Prince Mohammed bin Salman (MBS) speaks volumes.

What he’s saying: Schiff, the chairman of the House intelligence committee, says that while some intelligence couldn’t be published because of the need to protect sources and methods, “we rarely see something published that is this definitive and I think that's an important accomplishment for the administration.”

Exclusive: Law enforcement organizations back Biden pick for assistant AG

Vanita Gupta Photo: Demetrius Freeman/The Washington Post via Getty Images

Local and federal law enforcement officials are backing Vanita Gupta, President Biden’s nominee for associate attorney general, according to letters sent to the Senate Judiciary Committee and obtained by Axios.

Why it matters: The Major County Sheriffs of America noted Gupta “emphasized that she does not support efforts to ‘defund the police'” and highlighted her desire to improve criminal justice through methods that include increased training for law enforcement officials.