Consumer plans to delay but not cancel a vehicle purchase and their interest in buying online are trends that are expected to continue into the new year, according to a recent CarGurus study.
The CarGurus COVID-19 Sentiment Study: How the Pandemic Impacted Automotive Sentiment in 2020 study — a November report — examines how car shoppers have responded to the pandemic, and compares research to previous CarGurus studies from April and June. It explores topics such as vehicle inventory, affordability, digital retail and ride-sharing/public transit.
“Over the course of the year, we have seen car shoppers delay but not cancel their purchases, a shift from public transit and ride-hailing towards vehicle ownership and an increase in openness around buying a car online,” said Madison Gross, Director of Consumer Insights at CarGurus. “When coupled with the automotive industry’s current high demand and low supply, it is likely for these trends to continue into next year.”
Some of the study’s research on the topic of inventory and pricing perception found that pandemic buyers were nearly twice as likely to say vehicle prices were lower than expected, when compared with those who are currently shopping (36 per cent versus 19 per cent).
Data also reveals that 10 per cent of consumers who bought a vehicle during the pandemic said the selection was worse than anticipated, while 21 per cent said it seemed somewhat worse. This is because the crisis has disrupted vehicle inventory, and therefore model selection and pricing.
On digital retail, consumers appear to have grown more comfortable with the online shopping environment. Pre-COVID, 26 per cent of respondents said they were open to buying a vehicle online. That has since increased to 50 per cent, as of the most recent November study.
“This openness to buying online has not wavered since June (55 per cent) or April (60 per cent) — despite dealerships reopening across the country,” said CarGurus in its news release. “Even though shoppers are becoming more open to digital retail, only 37 per cent would prefer to buy a vehicle in this manner.”
The report found that car shoppers are more likely to prefer online price negotiation (68 per cent) and online financing (50 per cent).
On public transit and ride-sharing, the November report found that 43 per cent of previous ride-share users and 49 per cent of public transportation users anticipate decreasing or stopping their use of these services.
These numbers have remained relatively consistent during the pandemic — with 41 per cent in June and 51 per cent in April for ride sharing, and 50 per cent in June and 54 per cent in April for public transportation.
To read the full report, click here.
