-
- All Industries /
- Transport /
- Automotive /
- Car Purchasing and Finance /
- US Car Purchasing Process Market Report 2022
“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
-
Overview
- What you need to know
- This Report looks at the following areas
- Definition
- Market context
-
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
-
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
- Supply chain disruptions and economic influences drive down sales
-
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
- Used car sales make up the majority of sales in the US
-
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
- Wavering consumer confidence drives consumers away from large purchases
-
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
-
The Car Consumer – Fast Facts
-
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
- Consumers may delay purchasing a vehicle in the short term despite optimism
-
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
- Consumers looking to purchase in the short term are more likely to look to used vehicles
-
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
- Gen Z consumers spend a bit more time researching
-
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
- Younger consumers research less; older consumers lean on past experience in pursuit of value
-
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
- Current conditions spur worry, stress amongst consumers
-
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
- Consumers expect the car buying process to evolve
-
Appendix – Data Sources and Abbreviations
- Data sources
- Sales data
- Forecast
- Consumer survey data
- Consumer qualitative research
- Marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
-
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
-
About the report
Below is a sample report, understand what you are buying.
Other Popular Reports
US Electric and Hybrid Vehicles Market Report 2023
$4,995 (Excl.Tax)
“Consumers’ growing interest in sustainability combined with automakers’ increasing commitment toward electric and hybrid vehicles presents a massive potential for growth in this category in the years ahead....
Find out moreUS DIY Auto Maintenance Market Report 2023
$4,995 (Excl.Tax)
Instilling confidence in consumers will be critical in driving the appeal of DIY auto maintenance as negative economic and automotive market conditions persist. Gabe Sanchez, Automotive Analyst ...
Find out moreUS Vehicle Financing Market Report 2023
$4,995 (Excl.Tax)
With demand for new vehicles surging despite sustained elevated prices, auto loan seekers are shifting their priorities, keeping a keen eye on monthly budgets. Patrick Rahlfs, Senior Research...
Find out moreUS Car Purchasing Process Market Report 2023
$4,995 (Excl.Tax)
“Despite ongoing economic and automotive market challenges, consumers still indicate an interest in purchasing a car. Although this may be aspirational for some, it is essential for retailers...
Find out moreUS Vehicle Financing Market Report 2023
$4,995 (Excl.Tax)
With demand for new vehicles surging despite sustained elevated prices, auto loan seekers are shifting their priorities, keeping a keen eye on monthly budgets. Patrick Rahlfs, Senior Research...
Find out more