Most consumers purchasing vehicles from independent dealerships are doing so out of necessity rather than desire, according to new research from Cox Automotive that highlights how affordability pressures and trust concerns are reshaping the used-vehicle buying journey.
The study, Know Your Buyer, Grow Your Lot, was developed in consultation with the National Independent Automobile Dealers Association and examined the motivations, behaviours and expectations of used-vehicle buyers. Researchers found that 79 per cent of buyers said they needed a vehicle rather than wanted one, while 77 per cent of consumers purchasing vehicles between 11 and 20 years old reported household incomes below US$75,000.
For Canadian dealers, the findings may offer insight into a customer segment increasingly focused on affordability and transportation needs rather than vehicle upgrades or lifestyle purchases.
“Independent dealers are serving a customer who is often under real pressure and making one of the most important financial decisions they can afford,” said Elizabeth Stegall, Senior Director of Client Retention at Cox Automotive, in a statement. “This research shows that success today is not simply about having the right inventory — it’s about creating a buying experience rooted in speed, transparency and trust.”
The study found buyers spend an average of 16.5 hours researching vehicles online before making a purchase. Seventy-seven per cent use third-party listing sites during their search, while 83 per cent begin shopping without a specific vehicle in mind. Shoppers also visit more than five websites before contacting a dealership.
Researchers identified customer retention as a potential challenge. Only 21 per cent of respondents said they would return to the same dealership for their next vehicle purchase. Cox Automotive said dissatisfaction was often linked to unclear financing terms, unexpected fees and inconsistent communication rather than vehicle pricing alone.
The findings reinforce a broader industry trend toward transparency and digital retailing, areas that continue to attract investment from dealers seeking to improve customer experience and loyalty. For Canadian retailers, the study suggests that clear pricing, straightforward financing information and accurate online vehicle listings may be increasingly important differentiators as consumers spend more time researching and comparing options before visiting a showroom.
