A Shift in Buyer Sentiment
The perception that buying a car is a cumbersome and dreaded chore is finally shifting. A survey conducted by Kelly Blue Book’s parent company Cox Automotive, for their annual Car Buyer Journey study, found that 76 percent of the 2,344 respondents who bought a new or used car from a dealership in the last 12 months were ‘highly satisfied’ with the experience. This marks the highest car buyer satisfaction rate in the survey’s 16-year history.
Dealerships Getting It Right
Much of the credit for the improved car shopping experience goes to the incorporation of streamlined processes with fewer friction points at the dealership level. Car buyers consistently reported smoother interactions with fewer bottlenecks during the transaction as compared to last year. The fact that car buyers can complete large portions of the process online before even setting foot on a lot certainly helps.
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Digital Convenience
Modern online tools and AI have also contributed towards smoothing out the car-buying process, with buyers now able to peruse finance options and make credit applications from the comfort of their homes, and even employ AI-based tools to help them make the right choices. The study also concluded that the ideal car-buying process for most shoppers is a seamless combination of online steps and dealership visits.
Ford
Fully Online Sales Still Lagging
While online tools do streamline the process, only a small percentage of car buyers surveyed completed the entire transaction digitally, without ever visiting the dealership or lot. While the option exists, fully online end-to-end car sales remain rare.
The Affordability Issue
While the majority of car buyers over that last year have been extremely happy with the shopping process, they certainly aren’t happy about how expensive cars have gotten over the last few years. 62 percent of survey respondents believe that owning or even leasing a vehicle has gotten extremely expensive, citing purchase price as well as rising fuel and insurance costs. Affordability pressures are narrowing the pool of perspective car buyers and, as a result, a growing share of new vehicles are bought by higher-income households.
