Car buyer expectations are changing, with consumers valuing experiences that are more personalized and convenient. Speed, ease of use, and convenience are all valued traits associated with online buying while viewing the vehicle in person, and taking it for a test drive remain key reasons for shoppers to visit a dealership in person.
Going forward, consumers will likely want dealers to accommodate a hybrid of both online and offline interactions, making the experience as seamless as possible. Dealers will need to create an auto-buying process that is more efficient, personalized, and transparent. The automotive marketing specialists at Safeguard can help with relevant, custom solutions made for your business.
How big is the online car market?
In 2021 the global online car-buying market reached a value of US $261.2 billion. The market is projected to continue to grow, reaching $722.79 billion by 2030, and registering a compound annual growth rate (CAGR) of 12.2% from 2021 to 2030. In 2020 nearly 30% of new car sales in the US were completed online, up from less than 2% before the pandemic. In addition, 80 percent of car shoppers now say that they are open to purchasing a vehicle online.
Online Auto Buying
Placing an increasing value on convenience, a growing number of shoppers are turning to online car buying. Online car-buying allows consumers to shop for and buy a car at the time that is most convenient for them, even allowing them to start and stop the transaction process as desired.
Buying a car in person is typically very time-consuming, usually taking several hours, with the greatest amount of time typically devoted to negotiations and paperwork. Contrast that to online shopping, where prices are clearly posted and generally non-negotiable, and consumers are able to fill out their paperwork and submit personal information at their leisure. It’s no wonder that consumers see saving time as a significant benefit to online car buying.
Online auto buying has additional benefits as well, including being more transparent and giving customers more control. Many consumers also like the no sales pressure environment of buying a car online. Particularly for customers looking for a hard-to-find car, buying online allows customers to shop from a much larger geographic area. Buyers reported the highest levels of satisfaction when the overall car-shopping experience took less time and was more efficient.
In-Person Auto Buying
While online tools can streamline paperwork, eliminate long waits, and even make financing simpler, the reality is that there are some aspects that can’t be replicated, including the test drive. Seeing the car up close and personal is still of significant importance to many buyers. Shopping in person allows buyers to compare cars at the dealership, test drive the car or cars they are interested in and drive it home that same day.
Buyers with a trade-in may find the prospect of having to sell their car on their own more difficult than if they were to simply take their car to the dealership and negotiate an offer. Additionally, while many buyers are happy to bypass the task of new car negotiations, some buyers worry they might be missing out on the opportunity to secure a better deal. Some customers also value having a relationship with a dealer that they can trust and one that they can count on in the years to come.
Combining Online and In-Person Auto Buying
Car buyers want an experience that alleviates as many pain points as possible. While buyers want to do research, fill out paperwork, and read warranties online, they also want close-up evaluations and test drives, resulting in a hybrid car-buying experience that combines both in-person and online auto buying.
Traditional automotive dealers can capitalize on this opportunity, building their online web presence and managing their online reputations while also preparing their showrooms for great first impressions and increasing their focus on customer service. Safeguard’s automotive marketing experts can help you identify and make the most of these and other growth opportunities.
Although the way people shop for cars is changing, with shoppers desiring the best of both online and in-person buying, the automotive marketing experts at Safeguard can help you with specialized marketing strategies to reach potential buyers. From business essentials that streamline daily operations to customized corporate apparel that ensures great first impressions, Safeguard can supply whatever you need to run your business more efficiently and promote it more effectively.
Your Safeguard advisor has tips, ideas, and traffic-driving solutions for your automotive business. Call 844-4CARBIZZ to get started.
- Consumers want dealers to accommodate a hybrid of both in-person and online auto buying.
- The global online car-buying market reached a value of US $261.2 billion in 2021 and is projected to reach $722.79 billion by 2030.
- Automotive dealers can capitalize on this opportunity by building their online web presence while also preparing their showrooms for great first impressions.
- The automotive marketing experts at Safeguard can help you with specialized marketing strategies to reach potential buyers.