Consumers Embrace Online Car Buying
Online car buyers are 20% more likely to report being highly satisfied with their experience than in-person buyers.
Online experience vs. Dealership experience
Online: 78% of American consumers who bought a car online found it a highly satisfying experience.
Dealership: 58% of those who purchased from a dealership found their experience highly satisfying.
Online: 80% said they were highly satisfied with the trade-in process.
Dealership: 57% reported being highly satisfied with the trade-in process.
Online: 70% were highly satisfied with financing their online car purchase.
Dealership: 53% were highly satisfied with the financing experience.
The Times Are Changing
Shopping for a car can be an intimidating process. For some buyers, shopping for a vehicle online and completing the buying process online, too, might seem less stressful.
Buying online tends to put the shopper in control of navigating the experience. When shopping for a vehicle online, some companies allow buyers to build their vehicle to their specifications. Dealerships or companies also might list their entire inventory online and provide resources for buyers to explore these vehicles; augmented reality tools or photo slideshows might be included to showcase a vehicle to potential buyers.
Some companies or dealerships could include pre-qualification or pre-approval processes online. Buyers might be able to enter their personal information securely to better understand their financing options.
For buyers that don’t want to venture into a dealership to look at vehicles, the online process could be much quicker and allow them the time they need to make a decision or understand all their vehicle options.
Buying a car online isn’t just relegated to new models. Buyers who are shopping for used cars also can take advantage of online shopping. For these buyers, shopping online also might be a more straightforward and simplistic option.
Nerdwallet explains that buying a used car online helps buyers easily understand the “out the door price.” In addition, the site notes that buying used cars online eliminates the need for negotiating—this could be a pro for buyers, but it also could be a downside (depending on if the buyer likes that part of the process).
Buying a Car Online Could Lead to Increased Buyer Satisfaction
- Dealerships have expanded their online sales efforts.
- New services sell directly via online marketplaces.
- Platforms connect dealerships and buyers for haggle-free transactions.
2017: 53% of US consumers would be either extremely likely or very likely to buy a car entirely online.
2022: Online car buying has become an increasingly viable option that more and more Americans are embracing.
With online car buyers finding satisfaction with the experience, it seems likely that more consumers will look to the web when it’s time to buy their next vehicle.
How Survey Respondents Purchased Their Cars*
Buying In Person vs Online:
- In Person: 50%
- Online: 50%
How Online Buyers Purchased:
- Delivery Website: 31%
- Dealership Website: 19%
How Online Car Buying Breaks Down by Age Group:
- Ages 18-24: 77%
- Ages 25-40: 74%
- Ages 41-56: 53%
- Ages 57-66: 20%
- Ages 67+: 21%
Delivery Website by Popularity:
- Carvana
- Cars.com
- Carmax
- Dealership Websites
- Carfax
- AutoTrader
- Vroom
What Kind of Cars Online Shoppers Bought:
- 73% Purchased New
- 27% Purchased Used
What Kind of Cars In-Person Shoppers Bought:
- 30% Purchased New
- 70% Purchased Used
Online Shoppers Do More Online Research:
- 24% In-Person Research
- 51% Online Research
Easy Online Financing Makes a Difference:
- 58% In-Person Financing
- 81% Online Financing
Trade-Ins: It’s About the Value:
- 50% Bought in Dealerships
- 67% Bought Online
The Future of Online Car Shopping Is Bright
- While online car shopping still represents a small percentage of overall car sales, online car sales companies are posting remarkable growth.
- The survey indicates that online car shopping is a popular service that will continue to attract consumers.
Source: www.progressive.com/resources/insights/online-car-buying-trends/
