Would you buy a car in a mall?

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Once upon a time, buying a car meant packing up the family to visit a dealership, kicking tires in the lot, sweating away in a stuffy salesperson’s office through a tense round of haggling, and eventually signing a contract.

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There are still people who want to buy cars this way, but there are just as many people who never liked that system in the first place.

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Would you buy a car in a mall? Back to video

Pre-COVID, some automakers began experimenting with various methods of bringing their cars to places their customers already visit rather than expecting people to come to them. This method took several forms, but they shared a common theme of creating a space where passers-by felt free to ask questions in a low-pressure environment.

The pandemic naturally sidelined some of these efforts for a time. But as public spaces cautiously reopen, it’s worth taking a look at where this has come from, how it’s going, and what’s likely to be well-received by Canadians.

Genesis

Hyundai Motor Group’s luxury brand got its start in Canada five years ago without initially opening dealership spaces at all. Instead, the first sales were completed entirely online.

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Over time, satellite boutique locations began to open in malls — most notably in Square One in Mississauga, at a location operated by Toronto Raptors Superfan Nav Bhatia — and in the airport boutique in the domestic departures area of Toronto Pearson’s Terminal 1.

Genesis still sells its product at the corporate level nationally, but the brand is continuing to open a network of distribution centres, which have showrooms, staff, and service bays, often connected to Hyundai dealerships. An evolution of this, dubbed Genesis Retail Experience Centres, will be based in standalone locations like the existing boutiques, but will add the ability to conduct multiple test drives in one visit. The first of these will open later this year.

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Satellite locations have been a success for the brand and will remain part of its strategy going forward, according to the Executive Director of Genesis Motors Canada, Lawrence Hamilton.

“Consumers have made it clear that they want to complete more of the vehicle purchasing experience online, but there’s still high demand for physical experiences,” Hamilton told Driving.ca . “Our boutiques have been important tools in helping bridge that gap and serve our customers in a way that best suits their needs.”

Nissan

Nissan wasn’t the first brand in Canada to open an online showroom — that distinction goes to Cadillac — but it is the first to combine the virtual studio concept with a storefront location that can accommodate both in-person and online visitors.

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The Nissan Studio opened at Toronto’s Yorkdale Shopping Centre early in 2021. During lockdown when malls were closed, it operated solely in its online capacity to introduce potential customers to the Nissan Rogue, Kicks, and Sentra. The 2022 Nissan Pathfinder was added to the line-up this summer, and mall visitors are now welcome to walk through the space for an in-person experience.

Yorkdale is currently the sole location for the project with no plans to expand. As of this writing, Nissan plans to occupy the space at the North Toronto mall until December and no commitment has been made beyond that time, according to brand representative Didier Marsaud.

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Polestar

Polestar, Volvo’s new brand for luxury electrified vehicles, is starting life in Canada with a clean slate, which gives the brand latitude to try something different.

As a result, a plan has been hatched to place boutique sales locations in popular upscale urban shopping districts with high levels of foot traffic.

The first location, positioned in a prominent glass-lined storefront on Bay Street in Toronto’s Yorkville neighbourhood, is already open. A temporary location is open in Vancouver while its permanent home is being built, and a mall boutique in Laval is serving Montreal customers while that location is under construction.

John Paolo Canton, head of communications for the Americas for Polestar, says placing standalone stores in popular retail districts is proving to be the right formula for the brand.

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“With Toronto complete, it’s the best proof point, and things have been going really well,” Canton said. “Especially with COVID being more under control, foot traffic is multiplying as a result.”

Pfaff Automotive Partners

This dealership group — which sells multiple high-end brands, primarily in Southern Ontario — opened a satellite location inside Markville Mall in Markham in October 2020 to create visibility for an upcoming Porsche dealership.

Porsche Centre Markham opened in April 2021 spanning 53,000 square feet, and services includes new and used car sales and a Porsche Driver’s Selection merchandise boutique.

The new dealership is connected to the mall through its parking structures but is not integrated into it directly. Pfaff spokesperson Laurance Yap said that the exterior location was always the goal, and the interior storefront has now been closed after serving its intended purpose of building brand awareness with mall visitors.

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Tesla

Perhaps the most famous instance of a brand selling cars within a mall is Tesla, which has become a staple in Canadian urban malls since its first location was opened at Yorkdale nearly a decade ago.

Interestingly, Tesla is now beginning to go in the opposite direction in some markets. For example, a standalone Tesla dealership is being built in Innisfil, south of Barrie, Ont., which can be seen among a string of automotive dealerships with frontage on Highway 400.

Are buyers on board?

Without doubt, automakers have pumped many thousands of dollars into focus groups before investing in such important changes to their sales models.

We don’t have that kind of budget here at Driving.ca , but we know where to find a treasure trove of people with opinions on the internet: our friendly neighbourhood local moms group on Facebook. We asked them whether they would consider looking at or even purchasing a car while walking through a mall or other public space.

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Our highly unscientific research turned up a variety of positions: some loved the mall idea, some felt the streetside boutique was better, and some still prefer the traditional dealership experience (which, as every automaker representative would point out, remains available for those who prefer it; the alternatives are only being added for those who don’t).

Michelle Z. is a self-professed window shopper who thinks a mall location could be very effective and make a brand top-of-mind for a later purchase. “I recently came across a dealership in a mall and I absolutely wanted to go look,” she said. “I didn’t even need to want that car, but I went to go check it out. I don’t know much about cars, so the one I saw would probably get added to the list, as long as that visit didn’t get it disqualified.”

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Amy V.’s response was a popular one among the group’s members. “A very intriguing display could capture my attention for a moment as I walked past, maybe make me laugh or remark,” she said. “But I wouldn’t bother to enter unless I was actively car shopping and the one they had on display was close to what I was specifically interested in.”

Chrissy P. said she doesn’t need to be in the market for a vehicle to check one out in a mall. “I stop to look at the cars in the mall if I have time,” she said. “(It’s) nice to see new features. The dealership makes me feel pressure from salespeople. I’ve only gone to a dealership when I need to buy, whereas in a mall I am browsing.”

Agata K. counts herself among those who prefers the dealership route. “I’ve seen the Tesla displays at Sherway and Square One (and) thought it was weird,” she said. “Just not my vibe to shop for a car at the mall.”

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Margaret S. feels that a mall location is just as intimidating as a dealership can be. “To be honest, I am intimidated to go in because I don’t know the premise,” she said. “Are they happy if I look around and look at the features knowing it is just for fun? I really love doing that. (I’m) just unsure of if people feel like this is a waste of their time.”

Daniela S. admitted that her response falls under stereotypical lines. “I think if it showcased things I look for in cars I would stop for longer, (like) a car loaded with groceries, backpacks, maybe a car seat so that I can see how it all fits,” she said. “(My husband) would definitely choose to see a car, any car, if he wasn’t interested in the store I was in.”