- In 2023, 69% of consumers reported being very satisfied with the overall car shopping and buying process, up from 61% in 2022.
- When considering their experience at the dealership, 74% of all vehicle buyers reported being very satisfied, compared to 79% of new car buyers.
- 71% of consumers plan to take an omnichannel approach to their next car purchase, combining online steps with in-person activities at a dealership.
atlanta, January 31, 2024 /PRNewswire/ — Satisfaction with the car shopping and buying experience declined in both 2021 and 2022, but improved in 2023, according to Cox Automotive's annual Car Buyer Journey (CBJ) study. It became clear that it did. This is good news for upcoming car dealers. Las Vegas boot Thursday, February 1st, for the 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.
According to the 2023 Cox Automotive Car Buying Journey Study, 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 quoted that a trip to the car dealership is worse than a root canal,” he said. Isabel Helms, vice president of research and market intelligence at Cox Automotive. “However, our research and data suggest that this is simply not 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 were lower, people felt they were getting a good deal, and their overall satisfaction level improved.
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 use third-party websites (e.g. Autotrader, kelly blue book (both Cox Automotive companies), Edmunds.com, or CarGurus). New HIS EV buyers, especially those purchasing HIS EV for the first time, were 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 that consumers are no longer pursuing fully digital experiences year after year,” it added. Vanessa Tong, Senior Manager, Market and Customer Research. “Rather, car buyers can 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 they want a seamless experience, because dealers who fully embrace an omnichannel approach make the process more efficient for everyone involved and happier buyers. , the most successful.”
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. The average household income (HHI) during the survey 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 nearly 3,000 consumers who purchased a new or used car in the 12 months ending in 2023. August 2023. The survey was conducted in August, September 2023.
To learn more, read the 2023 Cox Automotive Car Buyer Journey Research Brief and download the infographic.
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 on five continents and a portfolio of industry-leading brands, including Autotrader.®Kelly Blue Book®Mannheim®,v automatic®dealer truck®NextGear Capital™, CentralDispatch® and Fleetnet America®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned company. atlantaA company with annual revenues of $22 billion. Visit coxautoinc.com or connect via @CoxAutomotive CoxAutoInc on X, CoxAutoInc on Facebook and Cox-Automotive-Inc on LinkedIn.
SOURCE Cox Automotive
