Consumers continue to rely heavily on dealers to find the righ vehicle for their budgets and lifestyles, yet the transaction process is still taking too long, according to an annual survey by CDK Global, Inc., an automotive retail software provider.
Since June 2022, CDK Global Research & Insights has surveyed car buyers across the U.S. each month, giving dealers an inside look at the consumer experience and expectations in purchasing a vehicle. While the Ease of Purchase score remained steady, averaging 83% for the year, warning signs remain for dealers looking to improve the customer experience. Most notable is the length of time to buy a car or truck, with 54% of shoppers becoming disenchanted, having spent over three hours to complete the process. With 66% of consumers on average relying solely on dealerships throughout their vehicle-purchase journey, retailers must shorten the transaction to under two hours at a minimum to positively impact a buyer’s Net Promoter Score, according to CDK’s annual data tally.
“Despite the expansion of direct-to-consumer retail model across the U.S., consumers still prefer the brick-and-mortar dealership experience. We’re seeing it the strongest among first-time buyers, with 70% of customers relying on their local auto retailers to complete the entire journey at the dealership,” said David Thomas, an industry analyst at CDK Global. “Improving the car-buying process to two hours or less can significantly boost a dealership’s NPS score and help ensure lifelong customers for sales and service.”
Customers Still Finding Cars in Transit
The survey showed new-vehicle inventory issues continued to impact dealerships throughout the past year, with just 36% of buyers finding the vehicles they wanted in stock in January, compared to 52% of consumers the following month. Overall, in-stock vehicles averaged 44% at dealerships – a significantly low number post-Covid. Purchasing in-transit cars will remain a growing trend, with 30% of consumers willing to wait for their desired makes and models.
Since its debut in June 2022, the survey also found:
- Nearly 43% of consumers visited two dealerships when shopping for a vehicle, with 47% seeking guidance from an expert before deciding on their purchase.
- Conversely, 30% of customers visited only one dealership before making their purchases, 34% preferring to choose their vehicle and negotiate the best possible price, including trade-in value.
- On average, less than 2% of those surveyed bought a car fully online, never exceeding 3%.
- Ordering cars from the factory declined steadily, from 28% of shoppers in June 2022 to 18% in recent months, the average falling near 21%.
- Rising interest rates impacted vehicle financing, the ease of credit application dipping to a record low of 57% in January before recovering to the yearly average of 62% in June.
Originally posted on Auto Dealer Today