The Top 4 Insights from Cox Automotive’s 15th Annual Car Buyer Journey Study
Cox Automotive has just released it’s 15th Annual Car Buyer Journey Study, giving dealers, OEMs and the automotive industry a sightline into today’s consumers buying behaviors as well as wants, needs and preferences The study was conducted from August to September of 2024, with a little over 2300 respondents who purchased or leased their vehicles within the last year
Where we WERE the last few years:
Where we ARE today:
Consumers felt vehicle prices were too high
They were searching for better deals with new brands and dealerships
Limited availability in vehicles, inventory and OEM incentives
Consumers realize and have accepted the fact prices have gone up
They want what they want and aren’t afraid to look for and find it
Increased availability of vehicles / inventory as well as OEM incentives
#1: Consumer Shopping and Dealership Satisfaction
New car sales continue to be on the rise, while used car sales have leveled off when it comes to today’s consumers shopping satisfaction levels Dealership satisfaction is at an all-time high for new buyers and shifting down for used buyers
ACTIONS TO TAKE:
Enhance Customer Experience: Focus on providing an exceptional experience. Make it easy and a seamless, a transparent process from a shoppers first click all the way through to the close. Digital Tools and Satisfaction Levels: Consumers want digital tools to help them and claimed it made the process more enjoyable, efficient and overall more satisfying
Promote Positive Experiences: Highlight customer testimonials and success stories in your marketing efforts – this helps establish trust and set expectations.
#2: Buyers Dedicate More Time to the Shopping Journey
The most notable trend - consumers are spending more time researching and shopping for cars, both online and in-store. With more inventory to choose from and affordability still a factor because of high interest rates and higher prices, buyers are taking their time in finding the right vehicle for the right price and it is not affecting their overall satisfaction
ACTIONS TO TAKE:
Provide Detailed Information: Ensure your third-party listings and website offer extensive details about your inventory, including high-quality photos, videos, and specifications. If this is missing or minimal, they will find a dealer’s whose information is more robust.
Offer Virtual Assistance: Implement AI chatbots or live chat features to assist customers during their online research so that you increase chances of keeping their attention and providing the information they are looking for quickly
Take Advantage of Increased Opportunities: Re-focus your marketing efforts around this wider window of time, and possibly new audience to your brand, to engage with consumers with optimal messaging and interactive digital tools to guide shoppers through the process
#3: New and Used Buyers are More Aligned Digitally and Want to Do More Online
Both new and used car buyers are increasingly relying on digital tools and platforms for their shopping journey Dealers must enhance their online presence and digital capabilities to meet these expectations
ACTIONS TO TAKE:
Optimize Digital Platforms: Ensure your website and mobile app are user-friendly, fast, and provide a seamless experience geared towards collecting an enhanced lead, which are more likely to close than traditional leads. Enable Online Transactions: Offer options for online financing, trade-in evaluations, negotiations, select F & I products and even home delivery and/or signing the paperwork digitally to streamline the buying process
Leverage Time Savings: Consumers who engage in more digital retailing steps are saving an average of 42 minutes overall when they are at your dealership transacting With the time they saved, they can spend it on familiarizing themselves with the features and options on their vehicle
with negotiations and engaging with sales
#4: Dealers Have a Greater Opportunity to Gain Service Revenue
After-sales service is a critical revenue stream and a key factor in customer retention. Providing excellent service can lead to repeat business and referrals
ACTIONS TO TAKE:
Promote Service Packages: Offer attractive service packages and maintenance plans to encourage customers to return for regular servicing. It’s no surprise new buyers are also purchasing more extended warranties, especially with consumers keeping vehicles longer, so promote and educate on the advantages.
Invest in Service Marketing: Allocate a portion of your marketing budget to promote your service department and its offerings With roughly 50% of revenue coming in from fixed ops, but on average only 10% of marketing dollars going to support, consider refocusing your strategy
Lifetime Value Clients: Ensure your service department provides a convenient and pleasant experience, from easy booking to timely updates, and you’ll increase the likelihood of gaining new service clients and keeping your lifetime value clients. That’s where the real profitability happens.
New buyers are purchasing more extended warranties and service contracts...
Was Better/Worse Than Last Purchase
