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Customer concerns include prices, financing offers.Getty Images
No one knows how the U.S. economy will change when the new administration begins, but automotive analysts see positive indicators for dealers.
Recent analysis by CarGurus and Cox Automotive show consumer satisfaction and buying power are both on the upswing, increasingly due to the availability of online shopping platforms.
“Car buyers and sellers are embracing online tools to build confidence and get exactly what they want – both in terms of what they buy or sell, as well as in the overall experience,” says Alison Ciummei, CarGurus’ senior director of product marketing. “This results in consumers who are more prepared before heading to the dealership, dealers who are better equipped to support their customers, and, most importantly, greater satisfaction with the experience.”
CarGurus’ seventh annual U.S. Consumer Insights Report shows year-over-year increases in buyer satisfaction, a decline in needs-based purchases and greater seller confidence.
That echoes the findings from the 2024 Car Buyer Journey (CBJ) Study by Cox Automotive, the 15th year of the report. Cox analysts note advancement in digital tools, specifically those that integrate online and in-dealership activities, saves time and reduces repetition, boosting satisfaction.
“We are reminded again just how important it is to have an efficient vehicle buying process,” says Isabelle Helms, Cox Automotive’s vice president of research and market intelligence. “Auto dealers who embrace the latest technology and engage in a transparent, easy-to-navigate process have consistently delivered the highest levels of satisfaction. That was true 15 years ago and remains true as ever today.”
Consider these key points and data from both reports that point dealers toward positive moves to win more sales:
A growing number of car shoppers (26% vs. 18% in 2023) tell CarGurus available inventory is a top factor in their dealership selections.
Buyer and seller satisfaction is on the rise. In 2024, 79% of car buyers were satisfied with the overall car buying experience, 35% of whom were extremely satisfied (up from 28% in 2023), reports CarGurus. The same report notes 78% of sellers said they got a “good” or “great” deal (up from 70% in 2023) and 71% were satisfied with the overall experience.
Cox reports buyers have a record 75% satisfaction rate with the overall shopping experience, the highest in the study’s history. In 2024, improving sales incentives and a wider selection of new-vehicle inventory contributed to increased satisfaction as well. Notably, 42% of new-car buyers stated their experience was better than their prior purchase, with dealership satisfaction reaching a historic high of 81%. Yet Cox adds satisfaction among new- and used-car buyers dipped slightly, from 69% in 2023 to 67% in 2024.
Both buyers and sellers increasingly prefer to handle more steps online, with 80% of buyers wanting to do more from home (up from 69% in 2023); 90% of buyers researching vehicles online (compared to 81% in 2023); and 87% of sellers being open to selling completely online (up from 82% in 2023), reports CarGurus.
Buyers completing key steps online, such as applying for credit or pre-filing paperwork, saved an average of 42 minutes at the dealership, streamlining the process significantly, reports Cox. New-vehicle buyers saved more time –49 minutes – while used-vehicle buyers saved 40 minutes.
But analysts caution dealers not to assume auto buyers want completely virtual experiences.
“It is a common misconception that most vehicle buyers today want a completely online car-buying process,” says Helms. “The findings in the latest CBJ Study indicate that buyer satisfaction is influenced not merely by the time involved, but rather by the efficiency of the transactional aspects of the buying journey.”
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