Consumers are looking to buy a vehicle this year either before or after the pandemic, according to a recent CarGurus study.
The report, entitled Canada COVID-19 Sentiment Study (June 2020), covers three categories of car shoppers for 2020: initial prospective buyers (who planned to buy pre-crisis), current prospective buyers (planning to buy but have yet to do so), and purchasers (already bought a vehicle this year).
Key takeaways from the study show sales are lagging but are not lost. “Shoppers continue to delay car purchases, though fewer reported delays in June versus April,” said CarGurus in its report. “Despite these short-term delays, most sales are not lost in the long-term. In fact, the pandemic has even stimulated some new demand.”
A near-term snapshot shows 78% of car shoppers delayed their purchases in June — down from 87% in April. Among those consumers, 70% are actively searching for a vehicle, and 18% think it is a bad time to buy due to a potential safety risk (although that number is down from 27% in April).
A long-term snapshot reveals only 2% of initial prospective buyers delayed their purchases indefinitely — down from 6% in April. And 21% of this year’s purchasers and current prospective buyers had no intention of buying a vehicle in 2020 prior to the pandemic.
“As consumers emerge from lockdown, change travel plans, and reconsider what mobility will look like in the long-term, vehicles are becoming even more vital to everyday life,” said CarGurus.
Another near-term snapshot reveals 45% of respondents view their vehicle as an escape or just for fun. Fifty per cent plan to use their car for more road trips or longer drives, and 73% of those planning to travel this year say they will drive.
The long-term snapshot indicates 32% of consumers expect to use their car more often, now, as opposed to alternate forms of transportation. For example: 41 per cent who previously used ride-sharing and 50% who previously used public transportation expect to either decrease their use of these services or stop using them.
On dealerships and safety, the study found that prospective car shoppers expect retailers to wipe down surfaces regularly (64%), adhere to social distancing guidelines (58%), ensure employees wear face masks (57% ), provide transparency about the steps taken to address cleanliness (56%), and offer visits by appointment only (50% ). Another 49% expect dealers to have customers wear face masks.
“Two-thirds of shoppers would prefer contactless services and expect dealers to be proactive about safety when they visit in person,” said CarGurus. “Furthermore, interest in buying online has doubled since before the pandemic.”
The report also notes that 66% of current prospective buyers would prefer to use contactless services like virtual appointments, at-home test drives, or home delivery this year — signs that are consistent with April’s findings.
In the longer term, 30% of respondents said the pandemic will impact how they shop, with 60% of buyers still open to buying online (up from 36% in April), and 29% indicating they would prefer this method (down from 30% in April).
Additional information on brand responses and urban versus suburban car shoppers can be found here.
