“Current economic influences and supply chain disruptions have increased barriers for consumers looking to purchase a new or used vehicle. Automotive brands and retailers must cater to consumers’ changing needs and preferences, as well as focus on longer-term efforts for when consumers are ready to return to market. Moving forward, the car buying process will continue to evolve and include a changing role for dealerships and more personalization.”

– Gabe Sanchez, Automotive Analyst

This report covers the following issues:

  • The impact of COVID-19, inflation, supply chain constraints and other market factors on consumer behavior and the car purchasing process
  • Consumers’ research approach when shopping for a car
  • Attitudes toward the car buying process
  • How consumers view the future of car buying
Collapse All
  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Definition
    • Market context
  2. Executive Summary

    • Top takeaways
    • Market overview
      • Figure 1: Total US unit sales and fan chart forecast of new and used light vehicles, at current prices, 2016-26
      • Figure 2: Automotive industry outlook, 2022-27
    • Opportunities and challenges
    • Wavering consumer confidence drives consumers to be more critical of their spending
    • Changing consumer behavior highlights importance of taking an omnichannel approach
    • Revisit the role of dealerships for younger consumers; expand into the virtual space
    • Key consumer insights
    • Consumers are most interested in purchasing new cars; used cars are most popular amongst younger consumers
    • In-person elements remain important, but consumers increasingly gravitate to online research
    • Consumer research of fuel/energy efficiency outpaces competitive pricing
    • Supply chain disruptions and economic influences drive worry amongst consumers, especially older consumers
    • Females indicate a discomfort in the car purchasing process
    • Consumers, especially younger consumers, expect the car purchasing process to evolve
  3. Market Size and Forecast

    • Supply chain disruptions and economic influences drive down sales
      • Figure 3: Total US unit sales and fan chart forecast of new and used light vehicles, at current prices, 2016-26
      • Figure 4: Total US unit sales and fan chart forecast of new and used light vehicles, at current prices, 2016-26
  4. Segment Performance

    • Used car sales make up the majority of sales in the US
      • Figure 5: Total US unit sales of new and used light vehicles, by segment, at current prices, 2019 and 2021
  5. Market Factors

    • Wavering consumer confidence drives consumers away from large purchases
      • Figure 6: Consumer Sentiment Index, 2007-22
    • Inflation, supply chain disruptions drive up the cost of new and used vehicles
      • Figure 7: Consumer Price Index, new vehicles and used vehicles, 2017-22
    • US government aims to address chip shortage
    • Gas prices raise concerns amongst consumers
      • Figure 8: US gasoline and diesel retail prices, 2010-22
  6. Competitive Strategies and Market Opportunities

    • CarMax aims to appeal to consumers’ changing preferences and approach to car buying
    • The opportunity: adapt and evolve
      • Figure 9: CarMax leverages star athletes to highlight the conveniences of online car shopping
    • Ford looks to educate consumers through their dealers
    • The opportunity: focus on education efforts internally and externally
      • Figure 10: Ford plans to educate employees through Electric University
    • Create experiences that go beyond traditional dealerships
    • The opportunity: leverage technology to drive engagement and interest
      • Figure 11: McLaren F1 team partners with Roblox to unveil race car, 2022
    • Further the ownership experience
    • The opportunity: provide consumers with opportunity to experience and enjoy their vehicles
      • Figure 12: Bronco Off-Roadeo offers unique experience
  7. The Car Consumer – Fast Facts

  8. Purchase Time Frame

    • Consumers may delay purchasing a vehicle in the short term despite optimism
      • Figure 13: Volvo highlights a commitment to their employees
      • Figure 14: Purchase intent, by generation, 2022
    • Parents indicate a sense of urgency in their purchase intent
      • Figure 15: Purchase intent, by expected life changes; parental status, 2022
      • Figure 16: The Car Mom reviews the Hyundai Palisade
    • Black consumers are most interested in purchasing in the short term
      • Figure 17: Purchase intent, by race and Hispanic origin, 2022
  9. Consideration of Vehicle Type

    • Consumers looking to purchase in the short term are more likely to look to used vehicles
      • Figure 18: Consideration of vehicle type, by car purchase intent, 2022
    • Younger consumers show interest in used cars, but new cars are most sought after
      • Figure 19: Consideration of vehicle type, by generation, 2022
    • Black, Hispanic consumers demonstrate interest in used vehicles; Asian consumers interested in new vehicles
      • Figure 20: Consideration of vehicle type, by race and Hispanic origin, 2022
  10. Research Approach

    • Gen Z consumers spend a bit more time researching
      • Figure 21: Time spent researching, by generation, 2022
    • Consumers steadily shift to online research and away from dealerships
      • Figure 22: Pre-purchase research approach, 2022
    • Consumers leverage a variety of resources in their research
      • Figure 23: Carvana engages consumers with social road trip adventure
      • Figure 24: Research approach for next vehicle, by generation, 2022
    • A blend of in-person and online research provides the greatest reach
      • Figure 25: TURF Analysis – Research behaviors, 2022
    • Social media, auto shows are important to those buying in the short term
      • Figure 26: Bob Rohrman Kia Lafayette features positive dealership review
      • Figure 27: Research approach for next vehicle, by car purchase intent, 2022
    • Hispanic, Black consumers take less encompassing approach
      • Figure 28: Gabrielle Union features a Ford Maverick
      • Figure 29: Research approach for next vehicle, by race and Hispanic origin, 2022
  11. Types of Information Researched

    • Younger consumers research less; older consumers lean on past experience in pursuit of value
      • Figure 30: CarMax offers 24-hour test drives
      • Figure 31: TURF Analysis – Vehicle research, 2022
      • Figure 32: Types of information researched, by generation, 2022
    • Female consumers look to get the most out of their purchase; safety is a priority
      • Figure 33: Subaru ambassador features the Subaru Ascent
      • Figure 34: Types of information researched, by gender, 2022
    • Black, Hispanic consumers research car features the least
      • Figure 35: Types of information researched, by race and Hispanic origin, 2022
  12. Attitudes toward Auto Industry

    • Current conditions spur worry, stress amongst consumers
      • Figure 36: Capital One Auto Navigator aims to address consumer concerns
      • Figure 37: Attitudes toward auto industry – purchasing, by generation, 2022
    • Females have concerns when shopping for a car; industry must evolve to better cater to this consumer group
      • Figure 38: Nissan partners with Brie Larson to promote new vehicle offerings
      • Figure 39: Attitudes toward auto industry – experience, by gender, 2022
  13. Future of Car Buying

    • Consumers expect the car buying process to evolve
      • Figure 40: Future of car buying, by generation, 2022
    • Black, Hispanic consumers look to elements of convenience
      • Figure 41: Future of car buying, by race and Hispanic origin, 2022
  14. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast
    • Consumer survey data
    • Consumer qualitative research
    • Marketing creative
    • Abbreviations and terms
    • Abbreviations
    • Terms
  15. Appendix – The Market

      • Figure 42: Total US unit sales and fan chart forecast of new light vehicles, at current prices, 2016-26
      • Figure 43: Total US unit sales and fan chart forecast of used light vehicles, at current prices, 2016-26

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