Atlanta, January 31, 2024 – Satisfaction with the car shopping and buying experience improved in 2023 after declining in both 2021 and 2022, according to Cox Automotive’s annual Car Buyer Journey (CBJ) survey. It became clear. This is good news for car dealers flocking to Las Vegas starting Thursday in February. 1. Annual Convention of the National Automobile Dealers Association. Cox Automotive will be the largest exhibitor at NADA Show 2024, a showcase of the technologies and solutions that drive America's retail automotive business.
by The 2023 Cox Automotive Car Buying Journey Study found that overall car buying satisfaction has increased significantly, with 69% of consumers saying they are very satisfied with the process. This is a notable increase from the 61% reported in the 2022 study. The increase in satisfaction can be attributed to several factors, including improved inventory levels, the return of discounts, and the greater adoption of omnichannel approaches to vehicle purchasing. This approach combines online and in-dealership activities, resulting in a more satisfying and efficient vehicle buying experience.
Specifically, the percentage of buyers who were very satisfied with their overall shopping experience increased to 73% for new car buyers and from 58% to 68% for used car buyers. 80% of new electric vehicle (EV) buyers continue to report the highest level of satisfaction with the process.
Retailers, or dealers, continue to offer a level of satisfaction that may surprise many critics. Considering their experience at a dealership or retail store in 2023, 74% of all vehicle buyers and 79% of new car buyers reported being very satisfied.. New car buyer satisfaction is at an all-time high, the same level reached in 2020, the peak of overall car purchase satisfaction. Positive feedback extends to key touchpoints such as the test drive experience (82%), the vehicle pick-up and delivery process (79%), and interactions with the sales team (77%).
“It's often cited that a trip to the car dealership is worse than a root canal,” says Isabel Helms, vice president of research and market intelligence at Cox Automotive. “However, our research and data suggest that this is far from the case. In fact, 79% of new car buyers are very satisfied with the experience provided by their local car dealership. Masu.”
Affordability and inventory levels impact the auto shopping experience
While affordability remains a concern, the latest CBJ suggests the situation is improving. In terms of price paid, 49% of buyers reported paying more than they expected, down from 54% in the 2022 survey. Used car buyers were most dissatisfied with the price they paid. Improvements in inventory levels were the main driver, as vehicle supply levels in the U.S. improved from the second half of 2022 through 2023, according to Cox Automotive's vAuto available inventory database. The increased choice for buyers has also prompted many dealers and automakers to increase incentives. Prices have become cheaper, giving us the feeling of “getting a good deal'' and increasing overall satisfaction.
In our 2023 survey, 68% of buyers are considering both new and used cars, up from 64% in our previous report. 78% of used car buyers considered a new car during the purchase process. Typically, a buyer considered two of his vehicles and visited two dealers. Almost 80% of shoppers visited a third-party website during their purchase process (e.g., Autotrader and Kelley Blue Book (both Cox Automotive companies), Edmunds.com, or CarGurus). New She EV buyers, especially those purchasing a She EV for the first time, are more likely to visit third-party sites. The report also found that fewer shoppers visited automaker websites and used online retailers (Carvana, Vroom, etc.) compared to 2021 and 2022.
Better digital tools make the purchasing process more efficient
When it comes to car buying in the US, the desired state is not fully digital, but omnichannel. According to the latest research, 50% of all car buyers completed 100% of their transactions in person, and 43% completed their transaction using a combination of online and in-person at a dealership. Only 7% of 2023 car buyers completed all steps online. Used car buyers were more likely to cite meeting in person as a solution.
When asked about their desired state and how they would complete their next car purchase, 71% of consumers said they preferred an omnichannel approach. 21% of buyers said their ideal car buying process would be completely online, while only 8% said they would buy completely in-person.
Interestingly, new EV buyers are already living in the future. The survey found that 69% said they use an omnichannel approach, significantly higher than his 39% of traditional internal combustion engine (ICE) buyers. Meanwhile, 16% of new EV buyers purchased entirely online, and 15% pursued an in-person purchasing process.
Seamless car buying process reduces turnaround time and increases satisfaction
One of the reasons the shopping experience in 2023 is better than in 2022 is that it takes more than an hour less time from start to finish. Importantly, an omnichannel approach significantly reduces the time required, resulting in higher overall satisfaction.
New car buyers report spending about 11 hours and 45 minutes from start to finish in a new study, down more than 80 minutes from the previous year. In contrast, a used car buyer reported that he spent more than 14 hours, a decrease of 1 hour. The new EV buyer was most satisfied with the process time, as he spent less than 11 hours on the process. 76% of new EV buyers reported being very satisfied with turnaround times, while 59% of new ICE buyers reported being satisfied with turnaround times, a decline from 2022 did.
“Our research suggests year over year that consumers are not pursuing a fully digital experience,” added Vanessa Tong, senior manager of market and customer research. “Rather, car buyers can seamlessly start the process from home, shop, fill out the necessary forms, then go to the dealership, test drive the car, complete the transaction, and learn about their new purchase. We believe that customers want a unique experience.'' Dealers that fully embrace an omnichannel approach are the most successful because the process is more efficient for everyone involved and the buyer is happier as well. ”
Who will buy a car in 2023 and why?
The study suggests that car purchases in the United States continue to be driven by households with above-average incomes. Average household income (HHI) during the study period was $140,000 for EV buyers, $115,000 for new car buyers, and $96,000 for used car buyers. The study also found that EV buyers were significantly younger than average (41 years old, compared to 52 years old for new car buyers overall).
The main driver for car purchases continues to be the aging of existing cars, and this applies to both new and used car buyers. In 2023, more buyers added a vehicle to their household. 15% of buyers said their purchase was prompted by the need for an additional vehicle to their household fleet, up from 11% in 2022 to 36%.
Recent research from Cox Automotive also suggests that consumers are placing more value on owning a vehicle than just a means of transportation. This trend is likely the result of a shift in mindset following the global COVID-19 pandemic. Before the pandemic, 43% of consumers thought they needed transportation but not ownership. In recent surveys, that number has dropped to 35%.
research method
Cox Automotive's annual CBJ study looks at several attributes related to car buying in the United States, with a particular focus on new and used car buyer satisfaction. This annual survey looks at car purchases from many different angles. Generational analysis, an in-depth look at CPO, a look into satisfaction with the car financing process, and even consideration of how electric car buyers differ from traditional car (internal combustion engine or ICE) car buyers . vehicle). The 2023 Car Buying Journey results come from a survey of approximately 3,000 consumers who purchased a new or used car in the 12 months ending August 2023. The survey was conducted in August 2023 and September 2023.
About Cox Automotive
Cox Automotive is the world's largest automotive service and technology provider. Cox Automotive leverages extensive first-party data powered by 2.3 billion annual online interactions to customize cutting-edge solutions for car buyers, automakers, dealers, financiers, and fleets. The company has more than 29,000 employees across five continents and a portfolio of industry-leading brands including Autotrader®, Kelley BlueBook®, Manheim®, vAuto®, Dealertrack®, NextGear Capital™, CentralDispatch®, FleetNetAmerica® and more I have. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately held Atlanta-based company with $22 billion in annual sales. Visit coxautoinc.com or connect via @CoxAutomotive CoxAutoInc on X, CoxAutoInc on Facebook and Cox-Automotive-Inc on LinkedIn.
contact:
Mark Schirmer
734 883 6346
mark.schirmer@coxautoinc.com
Dara Hales
470 658 0656
dara.hailes@coxautoinc.com
