US Shopping for a Car Online Market Report 2022

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Market overview
  • Figure 1: eCommerce share of sales through motor vehicle and parts dealers, Q1 2018-Q4 2021
  • Figure 2: automotive ecommerce industry outlook, 2022-27
• Opportunities and challenges
• Economic influences push consumers to be more critical of their spending
• Chip shortage limits inventory; drives consumers to search online
• Consider cross-branded partnerships
• Go beyond the platform to reach and engage with consumers
• Explore various ways to promote sustainability efforts
• Key consumer insights
• Online car buying has gained significant traction amongst consumers
• Benefits of online car buying draw consumers from traditional dealership experience
• Consumers are interested in online car shopping, but still hold concerns
• Younger consumers indicate a need for guidance

Market Size

• Auto ecommerce witnesses sustained growth year over year
  • Figure 3: eCommerce share of sales through motor vehicle and parts dealers, Q1 2018-Q4 2021

Market Factors

• Consumer confidence drives a more critical focus on spending
  • Figure 4: Consumer Sentiment Index and unemployment, 2000-22
• Inflation threatens new and used online marketplaces
  • Figure 5: Consumer Price Index, new vehicles and used vehicles, 2017-22
• US government aims to improve the supply of semiconductors, regulate market
• Gas prices cause concern amongst consumers
  • Figure 6: US gasoline and diesel retail prices, 2010-22

Competitive Strategies and Market Opportunities

• CarMax, Carvana leverage fan affinity
• The opportunity
  • Figure 7: CarMax features Stephen Curry to promote instant offers
  • Figure 8: Carvana features sponsorships on exclusive social media channels
• Carvana invites franchised dealerships to join its platform, increases inventory
• The opportunity
• Automakers shift to used car platforms
• The opportunity
  • Figure 9: Automotive News announces CarBravo platform
• Demonstrate a commitment to social responsibility
• The opportunity
  • Figure 10: CarMax showcases social impact
• Create experiences for consumers that go beyond selling cars
• The opportunity
  • Figure 11: McLaren F1 team partners with Roblox to unveil race car

The Car Consumer – Fast Facts

Purchase Time Frame

• Consumers may delay purchasing a vehicle; some appear optimistic
  • Figure 12: Purchase intent, by generation, 2022
• Black consumers are most interested in purchasing in the short term
  • Figure 13: CarMax leverages Washington Wizards sponsorship
  • Figure 14: Purchase intent, by race and Hispanic origin, 2022

Consideration of Vehicle Type

• Younger consumers show interest in used cars
  • Figure 15: Consideration of vehicle type, by generation, 2022
• Financial challenges drive consumers to used vehicles despite historically high prices
  • Figure 16: Consideration of vehicle type, by financial situation, 2022
• Black, Hispanic consumers demonstrate interest in used vehicles
  • Figure 17: Consideration of vehicle type, by race and Hispanic origin, 2022

Online Car Buying Experience

• There is a growing interest in online car buying across generations
  • Figure 18: Online car buying experience, by generation, 2022
• Higher-income consumers are most open to purchasing a car online
  • Figure 19: Online car buying experience, by household income, 2022
• Parents demonstrate an interest in buying a car online
  • Figure 20: Online car buying experience, by parental status, 2022
• Multicultural consumers show mixed feelings toward online car shopping
  • Figure 21: Online car buying experience, by race and Hispanic origin, 2022

Important Benefits and Concerns

• Consumers grasp the benefits, but education is needed to ease concerns
  • Figure 22: Important benefits when shopping for a car online, by gender, 2022
  • Figure 23: Vroom demonstrates the concerns of female car buyers
• • Figure 24: Top concerns when shopping for a car online, by gender, 2022
• Perceived benefits and concerns with online car shopping shift with age
  • Figure 25: Important benefits when shopping for a car online, by age, 2022
• • Figure 26: Top concerns when shopping for a car online, by age, 2022
• Parents value the convenience, but demonstrate concerns regarding the process
  • Figure 27: Carvana aims to educate parents through blog post
  • Figure 28: Important benefits when shopping for a car online, by parental status, 2022
• • Figure 29: Top concerns when shopping for a car online, by parental status, 2022
• Opportunity exists to educate multicultural consumers
  • Figure 30: Carmax leverages Usain Bolt to attract consumers
• • Figure 31: Important benefits when shopping for a car online, by race and Hispanic origin, 2022
  • Figure 32: Top concerns when shopping for a car online, by race and Hispanic origin, 2022

Resources Used & Research Approach

• Consumers visit a variety of websites and resources in their purchasing process
  • Figure 33: Resources used, 2022
• Younger consumers indicate limited experience
  • Figure 34: Online car purchasing approach, by age, 2022
• • Figure 35: Likelihood to use features/methods, by age, 2022
• Women consider more factors when buying a car online
  • Figure 36: Online car purchasing approach, by gender, 2022

Attitudes toward Online Car Shopping

• Online marketplaces can drive appeal by promoting available inventory
  • Figure 37: Truecar showcases size of inventory, 2022
  • Figure 38: Attitudes toward online car shopping – general overview, by age, 2022
• Online marketplaces fit a need amongst consumers
  • Figure 39: Attitudes toward online car shopping – new cars, by household income, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Sales data
• Consumer survey data
• Consumer qualitative research
• Abbreviations and terms
• Abbreviations
• Terms