Table of Contents
Executive Summary
-
- Why is car buying the worst?
- How to make car purchasing less unpleasant
- Traditional dealers need to evolve their vehicle purchasing experience
- Online auto retailers need to build upon their creative marketing solutions
- What auto retailers and auto brands need to know
- Consumers are becoming more accustomed to disruption
- Consumers demand transparency to build loyalty and trust
- What’s next for car purchasing?
- Dealership sales staff should be repositioned as brand advocates
- What it means
The Market – What You Need to Know
-
- Disposable personal income shows signs of slight growth
- Consumer confidence provides opportunity to boost sales
- Used sales still make up the majority of the market
Market Size and Forecast
-
- Historic and projected sales performance of total US auto sales
-
- Figure 1: Total US sales and fan chart forecast of new and used light vehicles, 2011-21
- Figure 2: Total US unit sales and forecast of new and used light vehicles, 2014-24
- Used vehicle sales account for 70% of total vehicle sales
-
- Figure 3: Total US unit sales of new and used light vehicles, by segment, 2017 and 2019
Vehicle Sales by Brand
-
- US vehicle sales by volume are down calendar year to date
-
- Figure 4: Sales of Market, by company, 2019 calendar year to date
Market Factors
-
- Gas price increases are likely to affect purchasing
-
- Figure 5: Monthly US all-grade gas prices, January 2007-April 2019
- Consumer confidence high for now, but expected to drop
-
- Figure 6: Consumer Sentiment Index, January 2007-May 2019
- Disposable personal income shows signs of slight growth
-
- Figure 7: Disposable Personal Income, January 2007-May 2019
Key Players – What You Need to Know
-
- Automakers explore in-house insurance offerings for consumers
- SUV market growing increasingly overcrowded
- UK direct-to-consumer vehicle start-ups draw inspiration from Amazon
What’s Happening
-
- Automakers are not so subtly making a move for the insurance industry
- How one travel subscription company could help the future of vehicle subscriptions
What’s Struggling
-
- Oversaturated SUV market expected to outpace consumer demand by 2023
What’s Next
-
- Crypto currency could become viable payment option for vehicle purchase
- UK start-ups aim to bring Amazon-style business model to used car sales
Trends Affecting the Car Purchasing Process
-
- Car buyers are looking for more personalization in their retail experience
-
- Figure 8: Volkswagen T-Cross, “I Am More Than One Thing” commercial, April 2019
- Consumers seek an elevated in-store and online experience
- Brands provide shortcuts to aid consumer decision making
The Consumer – What You Need to Know
-
- Consumers find dealership experience unenjoyable
- Paying off student debt frees up money to buy a vehicle
- Consumers are open to vehicle purchases from Amazon
- Most Millennials don’t have a set vehicle purchase price
Life Events Prompting Car Purchasing
-
- Expectant parents are looking to buy
-
- Figure 9: Purchase intent of expectant parents, June 2019
- Most recent college graduates plan to purchase a car within the next year
-
- Figure 10: Purchase intent of future college graduates, June 2019
- Paying off student debt frees up money to buy a vehicle
-
- Figure 11: Purchase intent of future student-debt-free consumers, June 2019
- Future homebuyers will delay a vehicle purchase
-
- Figure 12: Purchase intent of future property owners, June 2019
Car Purchasing Process Overview
-
- Over half of consumers show long-term purchase intent
-
- Figure 13: Purchase intent of total population, June 2019
- Majority of consumers intend to buy a new vehicle for their next purchase
-
- Figure 14: Vehicle type purchase consideration, June 2019
- Consumers most concerned with vehicle performance and cost in pre-purchase research
-
- Figure 15: Top vehicle research topics, June 2019
-
- Figure 16: Top vehicle research topics, June 2019
- When looking at car performance, fuel efficiency is most researched
-
- Figure 17: Car performance research topics, June 2019
- Consumers research competitive pricing in fear of overpaying
-
- Figure 18: Vehicle financing research topics, June 2019
- More than two thirds of Millennials don’t have a set purchase price for their next vehicle
-
- Figure 19: Likelihood to have a set auto budget, by generation, June 2019
-
- Figure 20: Cars.com vehicle matchmaker quiz, June 2019
- Half of consumers don’t like to negotiate
-
- Figure 21: Attitudes toward price negotiations, June 2019
The Future of the Car Purchasing Process
-
- Younger consumers believe dealerships will cease to exist
-
- Figure 22: Likelihood of local dealerships no longer existing, June 2019
- As with retail, younger consumers are attracted to direct-to-consumer model
-
- Figure 23: Likelihood of buying directly through an automaker, by generation, June 2019
- Consumers believe no-haggle pricing will become normalized
-
- Figure 24: Likelihood of no-haggle pricing, June 2019
- Men see a future in buying directly from Amazon
-
- Figure 25: Likelihood of buying through Amazon, by age and gender, June 2019
- Consumers see a future with vehicle home delivery
-
- Figure 26: Likelihood of vehicle home delivery, by geographic area, June 2019
- A third of consumers see a future of purchasing a vehicle on Instagram
-
- Figure 27: Likelihood of buying a vehicle on Instagram, June 2019
-
- Figure 28: Consumer attitude toward vehicle purchases on social media, June 2019
Attitudes toward Car Dealerships
-
- Consumers find visiting dealerships unenjoyable, for now
-
- Figure 29: Consumer enjoyment of dealership visits, June 2019
- Half of consumers view car salespeople as untrustworthy
-
- Figure 30: Consumer attitudes toward car salespeople, June 2019
- Half of consumers plan to visit multiple dealerships
-
- Figure 31: Dealership visits as a vehicle research method, June 2019
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Back to top