Car buyers are now cross-shopping more than ever, according to a new study from AutoTrader.ca. It found that a significant number of consumers look to online marketplaces as a resource for used vehicles (77%), while visiting a dealership website (33%) or a manufacturer website (23%)is an option as well when searching for a vehicle.
In comparison, new vehicle buyers lean more towards dealership and OEM websites (50% for manufacturer sites, 43% for dealership websites), and 42% of new car shoppers rely on online marketplaces as a source of information. However, when considering the consumers who use online automotive marketplaces in their vehicle buying process, 64% of new car buyers visit these sites two to five times — a notable jump from 39% in 2022.
“What has also increased is the frequency at which used vehicle buyers use online automotive marketplaces, to 11 times or more, among 39% of respondents,” said AutoTrader.ca in its report. “The top reasons shoppers visit marketplaces more than once is to compare prices, monitor vehicle availability and gather information.”
According to AutoTrader.ca, it should come as no surprise that used vehicle buyers spend more time on an automotive marketplace, in which case they advise dealers to “tailor their strategies” so as to reach more new car shoppers as well. This is because 53% of these shoppers spend over one hour on a marketplace per visit.
“While they may start out with a preference, many buyers cross-shop new and used vehicles, with nearly half of used-car buyers considering a new one as well; advertising both used and new inventory will maximize your reach with all prospective customers,” said AutoTrader.ca.
They also said price-related aspects remain the most difficult part of the car-buying process and suggest the use of price badges to help improve the situation.