Dive Brief:
- U.S. consumers were more satisfied with the car shopping and buying experience in 2023 than during the previous two years, with total satisfaction increasing from 61% to 69% from 2022 to 2023, according to a Cox Automotive survey released Wednesday.
- The survey found that 73% of new car shoppers were satisfied with the car-buying journey in 2023, compared to 70% in 2022. There was a larger jump among used car shoppers, with satisfaction increasing from 58% in 2022 to 68% in 2023.
- Larger inventories, higher discounts and more streamlined purchasing experiences are making it easier and faster for consumers to get into a new vehicle.
Dive Insight:
Consumer satisfaction with the car buying experience fell in recent years due to low vehicle inventories, high prices and lengthy buyers’ journeys. But that’s changing as automakers’ supply chains recover, affordability improves, and manufacturers and dealers invest in better digital sales tools.
Cox attributed some of the gains to improved omnichannel sales, which combine online and in-person buying experiences. Almost half of surveyed consumers (43%) said they completed their purchases via a combination of online and in-person steps.
“Car buyers want a seamless experience where they can start the process at home, shop, fill out any required forms, and then go to the dealership, test drive a car, complete the deal, and learn about their new purchase,” said Vanessa Ton, senior manager of market and customer research, in a statement. “Dealerships that fully embrace an omnichannel approach are the most successful, as the process becomes more efficient for everyone involved and delivers happier buyers as well.”
Cox Automotive surveyed 2,963 people who had purchased a vehicle in the past 12 months for its annual Car Buying Journey study. The study, which was conducted between August and September 2023, included 1,966 new vehicle buyers, 997 used vehicle buyers and 442 electric vehicle buyers.
Consumers also experienced significant reductions in the time spent buying a vehicle, which increased satisfaction, the survey found. New car buyers told Cox they spent an average of 11 hours and 45 minutes purchasing their vehicle in 2023, an 80-minute decrease from 2022. Likewise, used car buyers said they spent over 14 hours buying the car, an hour less than the year before.
The survey also found that households with above-average incomes continue to drive vehicle sales. New-vehicle buyers earned an average of $115,000 annually, while used-vehicle buyers earned $96,000 annually, Cox said.
Electric vehicle buyers were younger than the average new car shopper, with the typical EV buyer being 41 years old compared to 52 years old for all new car buyers. EV buyers also earned more than the average new car buyer, with an average household income of $140,000 per year.
