- PowerBand’s
cloud-based transaction platform streamlines vehicle sales interactions
among participants and eliminates unnecessary middlemen
- 90% of
Americans now feel anxious or uncomfortable in real-life dealership
settings
- Virtual
auctions have unlimited potential as COVID-19 disrupts automotive
dealership and auction industries
Fear of catching COVID-19 is causing many commuters to turn
their eye to the auto market, to purchase a vehicle instead of taking a bus.
But they are increasingly afraid of crowded dealerships. If COVID-19
has taught us anything, it is that the future of auto sales is online,
and PowerBand Solutions Inc. (TSX.V: PBX) (OTCQB: PWWBF) (FRA:
1ZVA) is among the pioneers of this trend.
The public transit crisis around the world is clear. The
number of users has shrunk, funding streams have become limited, and mass
transit won’t recover from the pandemic with so many people living in fear.
U.S. transit agencies may see an annual shortfall of as much as $26
billion to $40 billion because of the coronavirus, according to TransitCenter (http://ibn.fm/5Nh0O).
This will likely lead to a significant increase in demand
for personal automobiles in the post-coronavirus world, because people will
continue to be physically distancing. In Wuhan, China, the first COVID-19
epicenter, car sales have bounced back, already reaching their pre-crisis
level, according to the Globe and Mail (http://ibn.fm/d4EVA). Families
in the city are reported to be buying second cars because they see personal
vehicles safer than public transportation, the report said.
While this is great news for the automotive industry, it
raises a host of issues regarding the best way to sell and purchase vehicles in
a world where social distancing has become the norm. With nearly 90% of
Americans reporting they dislike the car dealership experience, saying they
feel anxious or uncomfortable in dealership settings, the industry has turned
towards online solutions. Online-only vehicle auctions, for example,
experienced a 33% compound annual growth rate between 2013 and 2017 compared to
just 2% growth of physical auctions. The number is expected to grow
exponentially as people are looking for safer ways to buy and sell vehicles so
as to avoid crowded dealerships.
“Online car sales have traditionally made up 10 to 15
percent of the total U.S. vehicle market, according to Autopia, a company that
helps consumers lease cars online,” reports Consumer Reports. “Dealerships and
online sales experts tell CR that ‘contactless’ car sales strategies are
increasing and evolving rapidly as new car dealerships learn quickly how to do
it.
No one knows what the post-pandemic future will look like,
but based on CR’s conversations with dealers and trade groups, consumers can,
for the most part, expect to be able to buy cars like they buy a lot of other
things – with their smartphones and tablets.”
PowerBand already offers this service. Its innovative
cloud-based platform lets people buy and sell cars and trucks with
never-seen-before simplicity, speed, and cost-efficiency on smart phones and
other digital devices, from any location. The platform was developed by a team
of experienced automotive, technology and finance experts around the core
belief that consumers preferred to conduct automotive transactions online and
avoid interactions with middlemen.
Against the backdrop of the coronavirus pandemic, its
popularity is skyrocketing. This is especially evident in the used-vehicle
retail market.
PowerBand has already successfully launched and conducted
‘virtual’ auctions in the United States together with and D2D Auto Auction LLC,
co-owned by PowerBand and Arkansas-based financier Bryan Hunt, director of J.B
Hunt Transport. The highly successful virtual auctions, held on April 7th and
April 16th, testified to the speed and efficiency of D2D’s unique transaction
platform, which provides an alternative to physical auctions and their
associated costs (http://ibn.fm/DeABP).
More than 1,300 dealers were registered on the D2D platform
when it was launched at the end of 2019, and this number is increasing rapidly.
The new cloud-based auction platform will be offered across the United States
in the coming weeks.
For more information, visit the company’s website at www.PowerBandSolutions.com
NOTE TO INVESTORS: The latest news and updates
relating to PWWBF are available in the company’s newsroom at http://ibn.fm/PWWBF
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Editor@QualityStocks.com
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