Consumers have ample options to choose from in terms of where to purchase their next vehicle. Whether it’s shopping at a local dealership, buying from a retailer rooted in online purchases or simply buying a car off Craigslist, the automotive retail landscape has changed drastically and will continue to do so. With that being said, ample options don’t necessarily equate to a better car buying experience. Across the board, automotive retailers are failing to meet consumer expectations.

• The impact of COVID-19 on automotive retail

• Consumers’ perception of dealerships and third-party automotive retailers

• Market size and forecast of the used vehicle market

For the purposes of this Report, Mintel has used the following definitions:

Traditional dealership: An automotive retailer that sells new and used vehicles based on a franchise contact with a national automaker. A traditional dealership can be a stand-alone operation or can be part of a dealer group, in which a private individual owns a large chain of franchise dealerships.

Third-party automotive retailer: Any automotive retailer that is not part of a franchised agreement with a national automaker. This includes private individuals on social media or other websites, as well as companies that sell vehicles. Third-party retailers are only permitted to sell used or certified pre-owned vehicles.

Throughout this report, we have referenced Mintel’s Global Trend Drivers. These Drivers and Pillars track seven fundamental themes that influence consumer choice and change. These drivers (Wellbeing, Experiences, Rights, Technology, Identity, Value and Surroundings) and their underlying pillars can help explain the key behavioral changes likely to impact consumers in the years ahead. Throughout this report Mintel’s Global Trend Drivers are referenced.

This Report was written in September of 2020. Consumer research was fielded in May 2020 and thus reflects consumer attitudes in the pandemic environment.

The first COVID-19 case was confirmed in the US in January 2020. On March 11, the World Health Organization declared COVID-19 a global health pandemic, and on March 13, President Trump declared a national emergency in the US.

Across the US, state-level stay-at-home orders rolled out throughout the months of March and April, and nonessential businesses and school districts across the nation closed or shifted to remote operations. At the time of writing, all 50 states have relaxed restrictions, allowing businesses to operate with varying levels of social distancing measures in place. However, a resurgence of COVID-19 infections has driven some states to slow down or reverse course on reopening plans.