This report explores the car purchasing process from a consumer perspective. What do consumers experience when buying a car? How do they choose to buy a car, and why? Answer these questions and more with data-led analysis.
Core Topics Analyzed
- The impact of automotive market conditions on the car purchasing process.
- Consumers’ research approach when shopping for a car.
- Perceptions of vehicle retailers.
- Attitudes toward dealerships and the car purchasing process.
Consumer Car Buying Trends
68% of US consumers who currently own or plan to purchase a vehicle within the next three years find the car-buying process stressful. This stress stems not only from the anxieties associated with making a significant investment, but also from their perceptions of dealerships. Over half of consumers express dread for the dealership experience, highlighting the need for an evolution in the traditional car purchasing process.
This shift has led to a growing interest in online car buying, with 58% of consumers indicating they would like to conduct a portion of their vehicle purchase online. Traditional dealerships are thus called to adapt by offering similar online purchasing opportunities. While these dealerships must align with the benefits provided by online car marketplaces, they still maintain a strong position among vehicle retailers in consumers’ eyes.
Despite the rise in online research, consumers continue to show a keen interest in seeing and testing vehicles in person. This preference underscores the importance of a hybrid approach, integrating comprehensive online platforms with the tactile, experiential elements of in-person visits. By enhancing both digital and physical aspects of the car-buying journey, dealerships can reduce consumer stress, and improve perceptions.
Readers may also be interested in our online car shopping market report.
Report Scope
This Report builds on the analysis presented in Mintel’s Car Purchasing Process – US, 2023. Mintel defines car purchasing as the act or the intended act of buying a new, used or CPO (certified pre-owned) vehicle.
This Report includes all light vehicles, which includes but is not limited to sedans, coupes, station wagons, pickup trucks, vans, minivans, crossover utility vehicles, and SUVs (sport utility vehicles).
Fleet sales are included in Market Size sales figures but are excluded from the scope of this Report.
Expert Analysis
Leading automotive analyst Gabe Sanchez delivers in-depth industry insights with this report.
Car shoppers are shifting gears, spending more time researching online and seeking a smooth ride between channels to steer clear of stress and enhance convenience.
Gabe Sanchez
Automotive Analyst
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Executive Summary
- What you need to know
- Consumer trends: key takeaways
- Market size & forecast
- Market predictions
- Opportunities
- Transform dealerships into social hubs
- Improve trust to drive comfortability
- Financial tools can enhance perceptions of trust
- Adopt elements of the online car shopping process
- Improve online research tools
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Market Dynamics
- Market context
- Market drivers
- Consumer sentiment remains down, but is expected to rebound soon
- Graph 1: consumer sentiment index, 2021-24
- Price of new and used vehicles remains elevated
- Younger consumers present future opportunity
- Multicultural consumers present opportunity to drive growth
- Average age of vehicles on the road has increased
- Market size and forecast
- Persisting economic and automotive market conditions impact consumer purchases
- Forecast table
- Economic shifts threaten future growth
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Consumer Insights
- Consumer fast facts
- Consumer fast facts (cont’d)
- Purchase time frame and type consideration
- Consumers are still interested in purchasing…
- Graph 2: purchase intent, by gender, 2024
- … both new and used vehicles
- Graph 3: consideration of type, by gender, 2024
- Target younger consumers to drive short term sales
- Graph 4: purchase intent, by age, 2024
- Used options appeal to younger consumers
- Graph 5: consideration of type, by age, 2024
- Driving younger consumers to purchase
- Showcase the value of hybrid options for short term sales
- Graph 6: electric and hybrid vehicle interest, 2024
- Younger consumers drive interest in alternative fuel vehicles
- Graph 7: electric and hybrid vehicle interest, by age, 2024
- LGBTQ+ consumers indicate short term purchase interest
- Graph 8: purchase intent within the next year, those who identify as LGBTQ+ vs overall, 2024
- LGTBQ+ consumers consider used options
- Graph 9: consideration of type, those who identify as LGBTQ+ vs overall, 2024
- Black consumers look to short term purchasing
- Graph 10: purchase intent, Black consumers vs overall, 2024
- Budget steers multicultural consumers to used vehicles
- Graph 11: consideration of type, by race, 2024
- Engage with Spanish-speaking car buyers
- Graph 12: purchase intent within the next year, bilingual/only Spanish consumers vs overall, 2024
- Opportunity to reach parents
- Graph 13: purchase intent, moms vs dads, 2024
- Target parents with new vehicle offerings
- Graph 14: consideration of type, by parental status (moms vs dads), 2024
- Research approach
- Consumers spend limited time researching…
- …online and in person
- Graph 15: plan to conduct the majority of pre-purchase research online or in person, 2023 vs 2024
- Consumers take a diligent approach
- Adapt to consumers’ multichannel approach
- Graph 16: research approach for next vehicle, 2023 vs. 2024
- Retailers must take notice
- Men spend less time researching
- Graph 17: spent less than 3 months researching next vehicle, by age and gender, 2024
- Provide comfortable and comprehensive omnichannel support
- Graph 18: plan to conduct the majority of pre-purchase research online or in person, by gender, 2024
- Enhance the car buying for women
- Graph 19: research approach for next vehicle, by gender, 2024
- Reach consumers through their research habits
- Graph 20: research approach for next vehicle (select), by age, 2024
- Host family-friendly events to engage parents
- Graph 21: research approach for next vehicle (select), moms vs dads, 2024
- Optimize marketing channels to reach multicultural consumers
- Types of information researched
- Consumers consider a variety of factors
- Graph 22: types of information researched, 2024
- Women do their due diligence
- Graph 23: types of information researched, by gender, 2024
- Highlight safety for all
- Older consumers consider more features
- Graph 24: types of information researched, by age, 2024
- Reaching consumers through factors
- Engage Black consumers with value-focused CPO incentives
- Perceptions of vehicle retailers
- Perceptions vary across vehicle retailers
- Graph 25: perceptions of vehicle retailers, 2024
- Leverage perceptions of knowledge to drive appeal, trust
- Graph 26: perceptions of vehicle retailers – knowledgeable, 2024
- Enhance sales expertise to drive positive perceptions
- Enhancing perceptions of knowledge for vehicle brokers
- Traditional dealerships viewed as most knowledgeable across age groups
- Graph 27: perceptions of vehicle retailers – knowledgeable, by age, 2024
- Drive perceptions of knowledge among Black and Hispanic consumers
- Graph 28: perceptions of vehicle retailers – knowledgeable, by race, 2024
- Knowledge presents an opportunity to “steer” consumer interest
- Traditional dealerships are viewed as most reliable
- Graph 29: perceptions of vehicle retailers – reliable, 2024
- Generational divide in perceptions of reliability
- Graph 30: perceptions of vehicle retailers – reliable, by age, 2024
- Men and women display varying perceptions of reliability
- Graph 31: perceptions of vehicle retailers – reliable, by gender, 2024
- Improve perceptions of convenience
- Graph 32: perceptions of vehicle retailers – convenient, 2024
- Differing perceptions of convenience across ages
- Graph 33: perceptions of vehicle retailers – convenient, by age, 2024
- “Rev up” convenience
- Drive convenience among parents
- Graph 34: perceptions of vehicle retailers – convenient, by parental status, 2024
- Drive convenience among parents
- Graph 35: perceptions of vehicle retailers – convenient, moms vs dads, 2024
- Opportunities to reach moms and dads
- Address consumers’ distrust
- Graph 36: perceptions of vehicle retailers – trustworthy, 2024
- Improve women’s trust in vehicle retailers
- Graph 37: perceptions of vehicle retailers – trustworthy, by gender, 2024
- Trust varies among age groups
- Graph 38: perceptions of vehicle retailers – trustworthy, by age, 2024
- Enhance perceptions of transparency
- Graph 39: perceptions of vehicle retailers – transparent, 2024
- Drive positive perceptions of transparency
- Graph 40: transparency related attitudes toward car purchasing (% any agree), 2024
- Limited perceptions of transparency among women
- Graph 41: perceptions of vehicle retailers – transparent, by gender, 2024
- Address concerns of transparency across age groups
- Graph 42: perceptions of vehicle retailers – transparent, by age, 2024
- Combat perceptions of intimidation
- Graph 43: perceptions of vehicle retailers – intimidating, 2024
- Navigate consumer intimidation across age groups
- Graph 44: perceptions of vehicle retailers – intimidating, by age, 2024
- Future of car buying
- Consumers call for the purchasing process to evolve
- Build trust and transparency: adapt to consumer expectations
- Graph 45: attitudes toward the future of car buying (% any agree), by age, 2024
- Showcase financing options to engage Black and Hispanic car buyers
- Graph 46: attitudes toward the future of car buying (% any agree), by race, 2024
- Accelerate towards a smoother experience
- Graph 47: attitudes toward the future of car buying (% any agree), by age, 2024
- Opportunity to develop new retail locations
- Graph 48: attitudes toward the future of car buying (% any agree), by area, 2024
- Lucid expands its studio experiences
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Competitive strategies
- Ford highlights women in the automotive space
- Ford University boosts dealer knowledge
- Auto brands commit to Formula 1
- Audi elevates the guest experience
- Rivian Innovates the dealership experience with lifestyle-focused spaces
- Nissan blends into internet trends
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Appendix
- Market definition
- Consumer research methodology
- Generations
- Abbreviations and terms
- Forecast methodology
- Forecast fan chart methodology
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