Top 5 Takeaways from the 2023 Car Buyer Journey Study Cox Automotive has been conducting the Car Buyer Journey Study for the past 14 years to determine the key changes in consumer buying behavior. The study was conducted from August to September of 2023, with nearly 3,000 respondents who purchased or leased their vehicles within the previous year.
What are we seeing from 2023?
1. The industry is NORMALIZING 2. Dealers and 3rd Party Aggregators are RESILIENT!
#1: Vehicle Ownership is Here to Stay
Primary Mode of Transportation in 5 Years
More consumers told us they intend to use their own vehicle as their primary mode of transportation in the future, up significantly from 2018.
Public transportation
My own vehicle
91% 77% 3% 4% Ride-sharing
ACTIONS TO TAKE:
1%
It’s more important than ever to enhance the customer experience – with personal vehicle usage up, as well as the desire to own more than one car, what experiences do you provide to attract and retain your existing and prospective customers via your service drive and your sales department?
7%
36%
2022
2018
increase in the number of buyers motivated to own more than one car in their household from 2022 to 2023
#2: Satisfaction with the Shopping Journey Surged Overall Satisfaction with Shopping Experience
69%
1
61%
2018
2019
2020
2021
2022
2022
2023
73% New
70%
2022
2023
68% Used
58%
The increase was influenced by three reasons:
Better vehicle selection
2023
2 Better prices
ACTIONS TO TAKE:
3 More dealer outreach with good deals
It’s no secret that as inventory rebounded so did shopper satisfaction with the overall purchase journey – now with incentives rolling back in, make sure you are getting the right message in front of the right customer at the right time... in the right way!
#3: Improved Online Efficiency Shoppers spent less time shopping in 2023 as the experience became more efficient. Time Spent Shopping Online in 2023
Third-party sites have been resilient throughout the pandemic and chip shortage – consumers find them to be trustworthy and objective. Website Category Usage
-1:08
13:31 hours
vs. 2022
Total
-1:22
11:45 hours
-1:01
vs. 2022
14:08 hours
New
vs. 2022
Used
More buyers are exclusively using 3rd party sites without using the OEM.
#4: The Retailing Experience was Top Notch Customers continued to be highly content with the dealer experience. Overall satisfaction with experience at dealership / retailer of purchase 2022
74% Total
2022
2023
79%
78%
Dealership
61%
61%
Used Online Retailer
26%
2023
73%
New
79%
75%
78%
59%
56%
63%
2018
27% 27%
17%
2019
2020
2023
2021
4.5
2022
2023
2022
5
Visited third-party site without using OEM Site
SHOPPERS THAT SUBMITTED AN ENHANCED LEAD BEFORE GOING TO THE DEALERSHIP WERE MORE SATISFIED Submitted a Basic lead online (A)
Submitted an Enhanced lead online (B)
67%
77%
New 78%, Used 63%
New 80%, Used 75%
27%
48%
New 26%, Used 27%
New 50%, Used 48%
Satisfaction with the dealership of purchase
70%
Used
33%
25%
Average Websites Used
57%
25%
24%
11%
7%
2022
78%
79%
52% 27%
OEM
Take the data and insights you receive from 3rd parties such as Autotrader and Kelley Blue Book™ and ACTIVATE them – use them to personalize messaging to stand out as the one to do business with because you know the shoppers wants and needs and can provide them with the experience they’re seeking.
72%
79%
34%
ACTIONS TO TAKE:
2023
Third-Party
Experience was better than last purchase
Satisfaction with the dealership improved significantly in key areas compared to 2022:
79%
Vehicle Pickup / Delivery
73%
Interactions with the F&I Dept.
60%
Length of the process
56% Price Paid
ACTIONS TO TAKE:
51% Vehicle Selection
There’s an opportunity to take customer satisfaction to new heights – encourage enhanced lead submissions for a more personalized experience which ultimately leads to buyers’ increased satisfaction in the overall dealership experience.
#5: Digital Retailing Continues to be Highly Beneficial
TIME SAVINGS AND AN IMPROVED JOURNEY ARE THE KEY DIGITAL BENEFITS How buyers completed most recent purchase:
Buyers are moving towards an omnichannel experience—a mix of both in-person and online steps.
All In-Person
Both Online and In-Person
50%
43%
How shoppers will likely complete their next purchase: All Online
All In-Person
Both Online and In-Person
All Online
71%
21%
8%
7% EXPERIENCE WAS BETTER THIS TIME
Total
New
52%
30%
Mostly Digital (A)
Light Digital (B)
55%
29%
Mostly Digital (A)
Light Digital (B)
Used
51%
30%
Mostly Digital (A)
Light Digital (B)
Mostly Digital: > 50% of purchase completed online; Light Digital: < 21% of purchase completed online
40 Mins.
Most time saved with negotiations and finalizing paperwork DID YOU KNOW? EV Buyers are more committed to completing digital steps and are more satisfied with the shopping and dealership experience compare to ICE buyers.
Time Saved at Dealership of Purchase Mostly Digital (vs. Light)
ACTIONS TO TAKE:
Satisfaction with the Dealer Experience
84%
78%
EV
ICE
There’s still room to improve on certain deal-making steps – with digital retailing continuing to be highly beneficial for customers, plan the steps your dealership will have to take for a more digital future (as well as address gaps now, such as financing) for you to close as well as a need to continue to educate them how to use your available tools.
We’re Here For The Deal Doers Have questions or want to learn how to leverage some of the suggestions and solutions we’ve designed for you to drive more revenue in 2024? Contact your Autotrader Sales Representative. Not a current client? Find out more at b2b.autotrader.com/contact