2025
9
US Car Purchasing Process Market Report 2025
2025-06-18T08:02:49+00:00
REPBBBB2EB6_6BEE_4226_9B8D_D8DCC55D684A
3695
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Report
en_GB
The majority (72%) of consumers anticipate that tariffs will make vehicles less affordable, highlighting a critical pressure point in the automotive market. Further, 68% are worried that they will overpay…
US
Automotive
simple

US Car Purchasing Process Market Report 2025

"Facing cost pressures and evolving needs, the automotive industry drives forward amidst economic and consumer challenges."

Gabe Sanchez - Senior Automotive Analyst

Gabe Sanchez - Senior Automotive Analyst

US Automotive Market – Purchasing Trends and Insights

  • A significant majority of consumers believe tariffs will make vehicles less affordable, and over two-thirds are concerned about overpaying for their next vehicle purchase. These affordability and availability challenges underscore the need for greater transparency and innovative pricing strategies from manufacturers and dealers.
  • The US automotive market is undergoing rapid change, driven by shifting consumer preferences and emerging technologies. Digital transformation is reshaping the car-buying experience, with consumers increasingly favoring a hybrid approach that combines online research with in-person interactions.
  • Economic pressures, including inflation, elevated interest rates, and higher production costs, are driving up prices for both new and used vehicles. These factors are also dampening demand for traditional dealership purchases, creating challenges for the industry.
  • To address affordability concerns and maintain demand, the market must focus on solutions such as entry-level models, flexible financing options, and affordability-focused innovations that build consumer confidence.
  • Agility and foresight are essential for the automotive industry to remain competitive amidst regulatory changes and economic uncertainties. By adapting to these challenges, the industry can deliver value and navigate the complexities of the evolving market.

Key Topics Covered in the Report

  • Impact of tariffs on the automotive market and consumer sentiment
  • Vehicle ownership and acquisition
  • Important consumer research factors and purchasing behavior
  • Consumer perceptions of vehicle retailers
  • Interest and participation in online car purchasing
Report AttributesDetails
Published DateJune 2025
Data Range2019-2030
Measurement MetricsUnit sales of new vehicles
Country FocusUnited States of America (US)
Consumer Data2,000 internet users aged 18+, April 2025
Number of Pages97

Collapse All
  1. EXECUTIVE SUMMARY

    • What you need to know
    • Market size & forecast
    • Market predictions
    • What consumers want & why
    • What consumers want and why (cont’d)
    • Opportunities
    • Target first-time car buyers with education and guidance
    • Position used and CPO vehicles as the sustainable choice
    • Adopt elements of the online car shopping process
    • Break it down to build consumers up
    • Develop lifestyle showrooms
    • Rethink the role of dealerships, improve the process
    • Building loyalty and inventory through guaranteed buybacks
  2. MARKET DYNAMICS

    • Market context
    • Market drivers
    • Economic uncertainty is looming
    • Graph 1: economic policy uncertainty index, 2020-25
    • Consumer sentiment continues to descend
    • Graph 2: consumer sentiment index, 2022-25
    • New and used vehicles’ prices expected to rise…
    • Graph 3: consumer price index for all urban consumers, new and used vehicles, seasonally adjusted, 2019-25
    • …along with maintenance costs
    • Graph 4: consumer price index for all urban consumers, motor vehicle maintenance and repair, seasonally adjusted, 2019-25
    • …as car loan delinquencies reach new highs…
    • …and the cost of auto insurance continues to increase
    • Graph 5: motor vehicle insurance for all urban consumers, not seasonally adjusted, 2019-25
    • Average age of vehicles on the road continues to increase
    • Market size and forecast
    • Retail sales and forecast of new vehicles
    • Navigating tariff challenges: the road ahead for automakers and consumers
    • Tariffs and their ripple effect on the used vehicle market
  3. CONSUMER INSIGHTS

    • Consumer fast facts
    • Current ownership and acquisition
    • Understanding vehicle ownership
    • Graph 6: household vehicle ownership, 2025
    • Purchasing dominates ownership
    • Graph 7: household vehicle acquisition, 2025
    • Age-driven trends in vehicle ownership…
    • Graph 8: household vehicle ownership, by age, 2025
    • …and acquisition responsibility
    • Graph 9: household vehicle acquisition, by age, 2025
    • Reaching across generations
    • Addressing vehicle ownership disparities….
    • Graph 10: household vehicle ownership, by race or ethnicity, 2025
    • …and dynamics among multicultural consumers
    • Graph 11: household vehicle acquisition, race or ethnicity, 2025
    • Parents’ lifestyle calls for vehicle ownership
    • Graph 12: household vehicle ownership, by parental status (moms vs dads), 2025
    • Parental trends in vehicle acquistion
    • Graph 13: household vehicle acquisition, parents vs overall, 2025
    • Consumers continue to consolidate…
    • Graph 14: household vehicle ownership, 2020-25
    • …across various areas
    • Graph 15: single car households, by area, 2022-2025
    • Purchase timeframe and type consideration
    • Gender differences in car buying intentions
    • Graph 16: vehicle purchase intent timing, by gender, 2025
    • Gender differences in purchasing experience…
    • Graph 17: first-time car buyer, by gender, 2025
    • …and interest in vehicle types
    • Graph 18: consideration of vehicle type, by gender, 2025
    • Tariffs weigh on the mind of consumers across generations
    • Graph 19: attitudes toward automotive tariffs (% agree), by age, 2025
    • Evolving consumer timelines for vehicle purchases
    • Graph 20: vehicle purchase intent timing, by age, 2025
    • Younger consumers are likely to be first-time car buyers…
    • Graph 21: first-time car buyer, by age, 2025
    • …considering alternative ownership options
    • Graph 22: consideration of type, by age, 2025
    • Multicultural consumers second guess purchasing
    • Graph 23: vehicle purchase intent timing, by race or ethnicity, 2025
    • Understanding experience across mulitcultural consumers
    • Graph 24: first-time car buyer, by race or ethnicity, 2025
    • Exploring vehicle preferences across groups
    • Graph 25: vehicle type consideration, by race or ethnicity, 2025
    • Remote control: steering first-time purchases…
    • Graph 26: first-time car buyer, by work from home status, 2025
    • …across various types
    • Graph 27: consideration of type, by work from home status, 2025
    • Reaching consumers where they are
    • Research approach and time spent
    • Shifting gears: the evolving car buyer approach
    • Graph 28: research approach for next vehicle, 2023-25
    • Most consumers plan to research for six months or less
    • Graph 29: expected time spent researching next vehicle, 2025
    • Easing the stress: turning challenges into opportunities
    • Consumers across ages indicate diverse research preferences…
    • Graph 30: research approach for next vehicle, by age, 2025
    • …and timelines
    • Graph 31: expected time spent researching next vehicle, by age, 2025
    • Younger consumers do their due diligence
    • Graph 32: attitudes toward research approach, by age, 2025
    • Parents leverage channels beyond the most common
    • Graph 33: research approach for next vehicle (select), by parental status (moms vs dads), 2025
    • Appealing to parents
    • Location-based trends in vehicle research and engagement
    • Graph 34: research approach for next vehicle, by area, 2025
    • Chicago auto show offers test drives
    • Types of information researched
    • Consumers consider a variety of information
    • Graph 35: types of information consumers plan to research before making next vehicle purchase, 2025
    • Blending physical traditions with modern conveniences…
    • Graph 36: pre-purchase research channel, 2025
    • …amid challenging market concerns
    • Empowering inexperienced, and skeptical, consumers
    • Understanding age-driven priorities
    • Graph 37: types of information consumers plan to research before making next vehicle purchase, by age, 2025
    • Hybrid research offerings are critical
    • Graph 38: pre-purchase research channel, by age, 2025
    • Income raises consideration of certain information
    • Graph 39: types of information consumers plan to research before making next vehicle purchase (select), by household income, 2025
    • Commuting professionals and their priorities
    • Graph 40: types of information planned to research before making next vehicle purchase, by work from home status, 2025
    • Perceptions of vehicle retailers
    • Consumer perceptions across car-buying formats
    • Graph 41: perceptions of vehicle retailers, 2025
    • Transforming dealerships into community-centric hubs
    • Driving, and holding, generational trust
    • Graph 42: perceptions of vehicle retailers – trustworthy, by age, 2025
    • Black consumers indicate heightened trust of traditional dealers
    • Graph 43: perceptions of vehicle retailers – trustworthy, by race or ethnicity, 2025
    • Address skepticism among seasoned buyers
    • Graph 44: perceptions of vehicle retailers – transparent, by age, 2025
    • Driving transparency among parents
    • Graph 45: perceptions of vehicle retailers – transparent, by parental status (moms vs dads), 2025
    • Understanding generational perceptions of automotive knowledge
    • Graph 46: perceptions of vehicle retailers – knowledgeable, by age, 2025
    • Addressing consumer concerns about salesperson knowledge
    • Brands aim to drive trust through dealer education
    • Driving perceptions of knowledge across retailers
    • Graph 47: perceptions of vehicle retailers – knowledgeable, by race or ethnicity, 2025
    • Varying perceptions of convenience by age
    • Graph 48: perceptions of vehicle retailers – convenient, by age, 2025
    • Younger consumers perceive alternative car buying channels as reliable
    • Graph 49: perceptions of vehicle retailers – reliable, by age, 2025
    • Easing car-buying intimidation…
    • Graph 50: perceptions of vehicle retailers – intimidating, by gender, 2025
    • …especially among women
    • Seasoned car buyers indicate a degree of intimidation
    • Graph 51: perceptions of vehicle retailers – intimidating, by age, 2025
    • Dealerships play a critical role in consumers’ perceptions
    • Online car shopping
    • Online vehicle purchases continue to indicate growth potential
    • Graph 52: online vehicle purchasing experience, 2025
    • Younger consumers indicate an interest in online shopping, repeat use
    • Graph 53: online vehicle purchasing experience, by age, 2025
    • Younger consumers call for the car purchasing process to evolve…
    • Graph 54: attitudes toward online car buying (% agree), by age, 2025
    • …and offer more personalized solutions
    • Graph 55: attitudes toward dealership improvements (% agree), by age, 2025
    • Hybrid car-buying processes appeal to younger generations
    • Urban consumers are the most open to online car shopping
    • Graph 56: online vehicle purchasing experience, by area, 2025
  4. INNOVATION AND MARKETING STRATEGIES

    • Launch activity and innovation
    • Ford’s employee pricing: a transparent response to tariffs
    • Toyota celebrates black men with empowering mobility campaign
    • Honda aims to drive innovation as LA28 founding partner
    • Honda launches a “Approved Pre-Owned” program
    • Volkswagen revives the Scout brand
    • Slate redefines affordable electric utility trucks
    • Marketing and advertising
    • Honda highlights longstanding investment in America
    • Jeep highlights its long-term reliability and cultural relevance
    • Slate Auto highlights the configurability of its vehicles
    • Hyundai comically highlights its Amazon partnership
  5. APPENDIX

    • Market definition
    • Consumer research questions
    • Consumer research methodology
    • Generations
    • Abbreviations and terms
    • Forecast methodology
    • Forecast fan chart methodology

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