Last year, car buyers encountered high prices, high rates, and low inventory. In 2024, there was more inventory and increased cross-brand shopping. The future remains uncertain, particularly in a post-election context. Based on the research from the 2024 Cox Automotive Car Buyer Journey Study, now in its 15th year, we offer insights and recommendations for you and your dealership to stay competitive, maintain consistency for your consumers, and remain successful.
Consumers are shopping online, in-store, and happier than ever
The standout takeaway from the 2024 Cox Automotive Car Buyer Journey Study indicates that satisfaction is at an all-time high for the overall shopping experience with new-car buyer satisfaction at 75%. More choices, improved sales incentives and advancements in your ability to connect the online-to-in-person experience for your shoppers was a huge win overall.
What’s next: Dealers still have room to improve the shopping and buying process as the news isn’t so bright for used car buyers. According to the data from the study, high auto loan rates and tight inventory continue to impact the satisfaction levels of this key group. However, you can still make the overall experience more efficient.
Actions to take: Empower your consumers
Give your consumer a sense of control. Car buyers historically dislike spending time completing traditional steps in the buying process. But researching the type of vehicle they’d prefer to drive, having more control over their monthly payment, is empowering. The tedious aspects of the purchase process? So much of that is now in your control. Automotive retailing technology has sped up the time it takes to complete transactions by streamlining processes and connecting your shoppers’ data from search to signature.
86% of satisfied buyers repurchase from and recommend the same dealer.
Dealers using digital tools are streamlining the car-buying process
More steps completed online leads to happier, more satisfied car buyers. Yes, “when you build it, they will come” …first to your online storefront, and then, in-person to your showroom where, thanks to completing key steps online like applying for credit or pre-filling paperwork, buyers are saving up to 42 minutes.
What’s next: Dealers have invested time and energy to improve the experience for their staff and consumers by making the transition between the online process to the test-drive seamless. Your buyers trust you—and are willing to extend their relationship beyond the signature.
42 minutes average time saved at the dealership
Actions to take: Don’t lose momentum!
Up to 86% of satisfied buyers repurchase from and recommend the same dealer. Not only are your customers more likely to return and tell their friends and family about your business, but they’re also purchasing more extended warranties and service contracts. Give your consumers the ability to review F&I options and review fixed ops service contracts online ahead of time.
Consumers are dedicating more time shopping…and loving it.
The total amount of time car buyers spent in 2024, according to the study, has increased. This extra time in-market accounts for consideration of vehicle type, researching deals, pricing, value, talking with others, visiting other dealerships and coming into your dealership, in-person, where the purchase is ultimately completed.
What’s next: Dealers have spent time streamlining the car-buying process to make it faster and easier. Yet, the 2024 Cox Automotive Car Buyer Journey Study shows your next buyer is taking their time—both to shop online and come in to test drive. First. Buyers now have more options and more control over their decisions. And second, dealers are providing more transparency in the deal process up front.
Actions to take: Give consumers the tools they need to make decisions
An informed buyer is like a business partner. By giving them access to up-to-date information on financing forms, rates and offers, they can share their information with your dealership ahead of time and spend more time considering the benefits of doing business with you.
Consider adding your service incentives, warranty information and long-term benefits for being a lifetime customer where it is easy to access. This will allow your skilled sales professionals more time to build rapport when they come into the dealership, in person, to meet with you.
(Electric Vehicle EV) buyers have an overall satisfaction rate of 82%
The future is electric
New electric vehicle (EV) buyers have an overall satisfaction rate of 82% and are the most satisfied with their shopping experience. They’re happier than traditional shoppers, and even more satisfied than hybrid buyers.
What’s next: When it comes to creating a true omnichannel experience, no one compares to the EV market. Both the buyers and the sellers enjoy a more efficient, streamlined experience and engage more with online buying tools. They also spend the least amount of time in-person at retailers.
Actions to take: Embrace digital domination
Whether you’re an EV dealer or not, our EV partners in the automotive industry have mastered the art of the omnichannel experience, bridging the gap between the online and the in-person experience. Artificial intelligence, predictive insights and integration between your technology solutions are key to meeting the consumers’ needs.
For the Road Ahead
Navigating the ever-changing automotive industry can be challenging, but the 15th Annual Car Buyer Journey Study offers some great insights to help you stay ahead. By using these findings to drive actions both personally and within your dealership, you’ll have the ability to outshine the competition.
The results pointed to some clear areas for you to focus in order to enhance consumer satisfaction and drive business growth: embrace digital tools, create a seamless online-to-in-person experience, and give your customers the info they need to feel empowered. Remember, happy customers are not only likely to come back to you and your dealership, but also to spread the word about your dealership to other current or future car buyers.
To help you with determine next steps for actions to take, don’t forget that with every Autotrader listings package, you’ll gain access to nVision, an invaluable tool. nVision provides the key reporting data, shopper behavior data, and more to ensure you have the insights and the step-by-step to make smarter and more knowledgeable market spend decisions that will truly move the needle in your business.
Autotrader is considered best-in-class for a reason, especially as the #1 marketplace for better leads and higher profits. We have the data that connects and activates your data, and we have the shoppers. We know what they want, and our goal is to match them with our dealer partners, driving quality leads that have the highest gross profit on average industry wide. We connect you with customers virtually, to move shoppers to you, so that you can focus on building and letting your brand shine.
Want a behind-the-scenes look and hear more detailed actions to take from the lead researcher from the 15th Annual Car Buyer Journey study? Sign up for an exclusive opportunity on Automotive News available to our readers.