“The automotive industry has been in a state of perpetual change for the past few years, presenting new challenges for dealers and consumers alike,” said Mike Darrow, President and CEO at TrueCar. “This report highlights how the industry adapted to those changes, and we’ve been able to leverage those insights to help our dealer partners navigate this evolving landscape.”
Trends Include
- The decline in brand loyalty. Shoppers are becoming more open-minded and interested in various makes and models, meaning conquest opportunities are ripe.
- EV gains momentum. Interest in electric vehicles has never been higher. Though younger, wealthier and more educated consumers remain more likely to consider EVs, higher fuel prices are now driving consideration among a broader set of consumers.
- Digital shopping is no passing fad. While 55% of consumers still want to be able to touch, feel and experience the vehicle in-person before signing on the dotted line, 62% want to do as much of the car-buying process online as possible.
- Shoppers are becoming more practical. No moonroof? No problem. The top features that have the most significant impact on the purchase decision are mainly under the hood.
- Used cars continue to take center stage. With limited new car inventory, 2022 has been the year of used car purchases. In fact,in Q1 2022, 20% of TrueCar shoppers who originally intended to purchase a new vehicle wound up purchasing a used one, but the reasons aren’t just due to inventory constraints.
Amid macroeconomic challenges such as supply-chain disruptions, consumers faced limitations on which vehicles they can purchase, when they can purchase them, and how they can purchase them. Below are a few highlights from the report:
- Nearly a quarter of in-market shoppers have switched and have purchased something they never even considered at the beginning of their shopping journey.
- Record-high gas prices during the summer increased demand for electric vehicles (EVs), as TrueCar saw a 120% increase in EV prospects year-over-year during the first half of 2022.
- 62% of car buyers want to be able to complete as much of the purchasing process online as possible, demonstrating continued interest in online shopping.
- Shoppers are increasingly opting for practicality over flashiness by having a stronger preference for features related to performance rather than appearance.
TrueCar’s full report includes deeper car-buying actions and expectations such as brand preferences, growth in EV demand, purchasing habits, top-selling features in today’s vehicles, and the used-car market. To download the Automotive Shoppers Trends Report, visit https://dealer.truecar.com/astr-unlocked.