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Car Buyer of the Future

ATLANTA , March 31, two thousand fifteen /PRNewswire/ — Autotrader’s Car Buyer of the Future examine, which was released today, shows that only seventeen out of four thousand two people choose the current car buying process, and the rest want significant switches, particularly in the test drive, deal structuring, financing paperwork and service phases. As a leader in the automotive retail space, Autotrader is sharing the findings of the probe to aid in the industry’s understanding of consumer behavior and help dealers and manufacturers prepare to meet the needs of tomorrow’s car buyers.

“While there is good work going on right now to adapt decades-old sales processes, consumers are telling us that we as an industry are not moving prompt enough,” said Jared Rowe , president of Autotrader. “By recognizing–and embracing–the need for switch, we have a tremendous chance to surprise and delight our consumers.”

A multiphase explore that included a quantitative survey among four thousand two car shoppers and buyers, the Car Buyer of the Future investigate identifies which switches consumers desire, the underlying reasons behind those switches and the benefit to dealers and manufacturers adopting to tomorrow’s car buyers. In addition to identifying the switches that consumers do want, the investigate also dispels some commonly held beliefs about the future of car buying.

Dispelling Myths about the Future

Some commonly held beliefs about the future of car buying are that sales people will be less significant in the future; consumers don’t want to negotiate; and that lowest price will always win. In fact, the examine shows the opposite.

• Myth #1: Sales people will be less significant in the future. In fact, the dealership and its sales people will proceed to play a very significant role in the car buying process. Eighty-four percent of consumers in the investigate indicate that they want to buy a car in person. Further, forty three percent see the dealership as a place to learn. At the dealership, consumers want to validate information they found online and learn about the following: specials, offers, warranty and service.
• Myth #Two: Consumers don’t want to negotiate. Over half, fifty six percent, of consumers choose to negotiate, according to the explore, and two of the most influential groups in car buying–Millennials and females–also choose negotiating over plane rate pricing. This is a result of the fact that consumers do not yet trust vapid rate pricing, and they feel that they have to negotiate to get a fair price.
• Myth #Trio: Lowest price will always win. While price is significant to consumers, the dealership practice can trump lowest price: fifty four percent say that they would buy from a dealership that suggested their preferred practice over lowest price. Additionally, seventy three percent report that they are willing to drive further for a fine salesperson, versus sixty five percent who are willing to drive to get the lowest price.

The Largest Switches Need to Come in Four Main Areas:

1. Test Drives: While eighty eight percent of consumers say they will not buy a car without test driving it very first, the majority report that they do not choose the way test drives are presently conducted (an accompanied test drive with a sales person). Instead, they want more convenience and less pressure while test driving, such as having the capability to test drive numerous vehicles across brands in a single place and taking a test drive with a product specialist instead of a sales person.
2. Deal Structuring: Negotiating will be a part of the car buying process for the foreseeable future, and consumers indicate that they would like to see a big switch in the way they go about negotiating the deal structure. Of those who liked the idea of online deal building, over half, fifty six percent, want the capability to embark the negotiation on their own terms–preferably online–and forty five percent would like to remain anonymous until they lock in the deal structure.
3. Financing Paperwork: Almost three fourths of consumers, seventy two percent, want to accomplish the credit application and financing paperwork online. The key factors driving this desire are to save time at the dealership (reported by seventy two percent of those who favor online paperwork) and to have less pressure while packing out paperwork (reported by seventy one percent of those who favor online paperwork). A separate explore conducted by Cox Automotive in 2014, displayed that the time buyers spend in the F&I office averages at sixty one minutes, more than two thirds the total amount of time they want to spend at the dealership (90 minutes). Moving paperwork online and enabling consumers to accomplish it on their own time would greatly enhance the in-dealership practice and cut down on the time they spend in the dealership on the day of purchase.
4. Service: When it comes to servicing their vehicles, eighty three percent of consumers indicate that they would like to have the capability to access a network of local service centers that honor service agreements. The key factor driving this desire is convenience. Of those who choose local service networks, seventy six percent want to go to a service center close by, and sixty three percent want to be able to service the vehicle anywhere.

The Benefits for Dealers and Manufacturers who Adapt are Clear

Dealers and manufacturers who concentrate on creating–and ultimately supply–a better shopping and buying practice can reap significant benefits, according to the examine:

• Almost three fourths (72 percent) of consumers say they would visit dealerships more often if the buying process were improved.
• Two thirds (66 percent) of consumers say that they would be much more likely to buy from a dealership that offers their preferred practice.
• Over half (53 percent) of consumers would buy a vehicle more often if the buying process were improved.

“The sales environment is expected to remain strong across fresh, used and CPO cars over the next few years, and it is arousing to see that we have several ways to enhance the consumer practice for the benefit of all involved–buyers, manufacturers and retailers. At Autotrader, we will proceed doing our part and working closely with our customers and playmates to usher in that fresh reality,” Rowe continued.

About the Explore

The two thousand fifteen Autotrader Car Buyer of the Future probe is a multi-phase qualitative and quantitative research investigate. The phases included four pro interviews, eight car buyer ethnographies, concentrate groups among forty fresh and used car buyers and a quantitative examine among four thousand two car shoppers and buyers. It was fielded from June through October two thousand fourteen .

Autotrader is the most visited third-party car shopping site, with the most engaged audience of in-market shoppers. As the foremost authority on automotive consumer insights and accomplished in online and mobile marketing, Autotrader makes the car shopping practice effortless and joy for today`s empowered consumer looking to find or sell the ideal fresh, used or Certified Pre-Owned car. Using technology, shopper insights and local market guidance, Autotrader`s comprehensive marketing solutions guide dealers to personalized digital marketing strategies that grow brand, drive traffic and connect the online and in-store shopping practice.

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