The Real State of Digital Retailing: Why 50/50 is the Future for Dealerships

Let’s call it what it really is—e-commerce for automotive. Whether you label it digital retailing, online car buying, or omni-channel sales, we’re talking about the evolution of how people buy vehicles today. And here’s the twist: while the buzz around buying cars entirely online has been growing for years, most buyers—and most dealerships—aren’t quite there yet.

In fact, what we’re really seeing is a move toward the hybrid model. Somewhere between online research and in-store test drives is a sweet spot that’s giving consumers flexibility and giving dealers a real edge.

Let’s dig into what the data shows, what dealers are actually doing, and what you should be thinking about if you’re planning your dealership’s next step in digital.

First, Let’s Talk About the Stats

The conversation around digital retailing isn’t new.

Way back in 2017, the Washington Post reported that 53% of consumers said they were very likely to buy a car online. That sounded promising, but two years later in 2019, only 7% of vehicle transactions actually happened fully online.

By 2023, Cox Automotive found that 21% of customers preferred a fully online buying experience—but a whopping 71% said they wanted a hybrid experience. That’s the key stat.

Consumers like the idea of shopping online, but when it comes to the finer points—financing, trade-ins, test drives—they’re still looking for that in-person touch.

The Typical Journey Today: 90% In-Store, 10% Online

For most dealerships, the buyer journey looks something like this:

• The customer starts online—researching vehicles, browsing your website, and shortlisting options.
  
• Then, they walk into the store.
  
• The test drive happens, negotiations begin, financing gets sorted in the F&I office, and the paperwork gets finalized in-store.

Even in 2024, roughly 90% of the transaction is still happening on the dealership floor.

And honestly, there are some good reasons for that.

Why In-Store Still Works

• More control: You get to manage the customer journey, answer questions on the fly, and close the deal efficiently.
• F&I profitability: Back-end gross often thrives in person. Great F&I teams can educate and upsell more effectively face-to-face.
• Relationship building: Introducing customers to service advisors and parts teams helps foster long-term loyalty.
• Trade-in accuracy: Online tools are hit or miss. Seeing the vehicle in person still matters.
• Fewer tech hiccups: When digital systems fail, your team can still close a deal manually. That resilience matters.

But it’s not all sunshine in the showroom.

The Downsides of Sticking to In-Store

• Limited online lead capture: If your site doesn’t support digital steps, you may never meet high-intent shoppers.
• Longer sales cycles: Scheduling, follow-ups, and test drives add friction.
• Higher walkaway risk: Without online deposits or pre-approvals, customers might bail after taking up time.
• Inconvenient for busy buyers: Retail hours don’t work for everyone—especially younger, digital-first consumers.
• Perceived pressure: Some buyers feel overwhelmed in a showroom setting and miss the transparency of digital shopping.

Bottom line? Fully in-store works for many, but the modern buyer wants options.

The 50/50 Hybrid Model: The New Sweet Spot

Here’s where it gets exciting.

A hybrid experience allows your customers to:

• Research online
• Start the buying process digitally
• Then choose when (and how) they come into the store
  

It’s the best of both worlds—and it’s rapidly becoming the new normal.

What Does a 50/50 Experience Look Like?

• Online Research: The buyer compares trims, pricing, reviews, and inventory.
• Digital Engagement: They inquire via form, chat, or even book a test drive online.
• Pre-Qualification: Some dealerships now offer online finance pre-approvals—huge time saver.
• In-Store Visit: They finalize the test drive, negotiate, or just sign papers.
  Deal Building & F&I: Many steps can now happen online or remotely.
• Delivery: Pick up at the store—or schedule delivery to their driveway.

That’s a true omnichannel experience.

Dealer Pros: Why Hybrid Is Worth the Investment

• Qualified Leads: You’re not just capturing browsers—you’re engaging with serious buyers.
• Increased Efficiency: Shorter in-store visits mean your sales team can serve more customers.
• Scalability: Less paperwork = more throughput on busy weekends.
• Higher CSI Scores: Less time wasted, more flexibility, more satisfied buyers.
• Smarter F&I: Buyers who see their options online are often more likely to purchase than those pitched in-person with no context.

Dealer Cons: It’s Not Without Challenges

• Tech investment: You’ll need the right tools (and a partner who knows how to implement them).
• Staff flexibility: Your team needs to handle both digital and in-person communication seamlessly.
• Disconnected systems: If your online tools don’t sync with your CRM, you’re creating a frustrating buyer journey.
• More complex follow-up: Tracking a hybrid deal across multiple platforms requires a clear process and strong communication.

But for most retailers we work with at Leadbox, these are solvable problems. The payoff in lead quality, efficiency, and customer satisfaction is worth it.

Buyer Pros: Why Consumers Love Hybrid

• Time Savings: Start from the couch, finish at the dealership—or vice versa.
• Comfort & Control: Work at your own pace, revisit info, and avoid high-pressure moments.
• Transparency: Better visibility on pricing, trade-in values, and financing options.
• Flexibility: Choose what you want to do online, and what you’d rather do in person.

Buyer Cons: Where the Gaps Still Exist

• Digital literacy: Not every customer is tech-savvy—especially older buyers.
• Communication breakdowns: If the handoff between online and in-store isn’t smooth, expectations can fall apart.
• Fragmented experience: Getting passed between sales, F&I, and service without a consistent touchpoint is frustrating.
•  Inventory mismatch: Seeing a unit online that’s no longer available? Instant turnoff.

We’ve built tools into Leadbox sites to help with that—like showing “deal pending” flags on inventory—but it’s something every dealer needs to stay on top of.

Going 90% Online: Worth It Yet?

Yes, it’s possible. No, it’s not always practical.

Only a small segment of customers are comfortable doing everything online—from financing and trade-in to F&I and delivery.

Digital-first models like Carvana or Clutch have tried to go all-in, but even they face logistical and trust challenges.

Here’s what we’ve learned:

• Most buyers still want a test drive.
• Most buyers still need guidance during financing.
• Most buyers are still making one of the largest purchases of their lives.

We’re getting there, but the reality is digital maturity takes time—both for consumers and for dealerships.

So, What Should You Do?

Here’s where I land: go hybrid.

Offer enough digital capabilities to serve modern buyers, but keep your in-store process tight and flexible. Make the transition from online to in-person seamless. Meet your customers where they are—not just physically, but mentally.

At Leadbox, we’re helping dealers implement this 50/50 model every day. From smarter web platforms to CRM integrations to targeted digital campaigns—we’re giving dealers the tools to serve modern car buyers, better.