A survey released by CarGurus showed year-over-year increases in buyer satisfaction, a decline in need-based purchases, and a rise in seller confidence as more consumers tap the power of online tools to inform their decisions.
The CarGurus Consumer Insights Report is a survey of recent car buyers and/or sellers that examines the influences in the journey from consideration through transaction, along with preferences for certain tools and resources—whether online, in-person, or a combination of both. Furthermore, the survey captured sentiment after the transaction for a full view of the buy/sell experience.
CarGurus officials said these shifts come at a time when vehicle pricing and selection have improved—new car inventory increased by 31 percent year-over-year and average used car prices have decreased by three percent over the same. This resulted in fewer shoppers citing available inventory as a top factor in their decision on purchase location (26 percent vs. 18 percent in 2023), while prices (56 percent) and financing availability/offers (30 percent) continued to top the list of considerations.
Embarking Car Buying Online
Alison Ciummei, senior director of product marketing at CarGurus, pointed out car buyers and sellers are embracing online tools to build confidence and get exactly what they want—both in terms of what they buy or sell, as well as in the overall experience.
“Whether that means starting financing online to better understand monthly costs; getting offers to sell a vehicle either online or with a local dealer; or starting their purchase from home, shoppers have recognized the power of data and preparation,” said Ciummei.
As a result, buyer and seller satisfaction is on the rise—79 percent of car buyers were satisfied with the overall car buying experience, 35 percent of which were extremely satisfied (up from 28 percent in a year earlier). Similarly, 78 percent of sellers said they got a “good” or “great” deal (up from eight percentage points from the previous report) and 71 percent were satisfied with the overall experience.
Report Highlights
The top steps preferred for buyers to do in person were the test drive (69 percent, up from 42 percent a year ago) and price negotiation (43 percent). Similarly, 71 percent of sellers got an online offer for their vehicle, but 43 percent sold to a dealer, citing the offer price, efficiency, and ability to leverage a car in a trade-in among the top reasons.
Other key highlights from the report were
- Buyers and sellers increasingly prefer to handle more steps online, with 80 percent of buyers wanting to do more from home; 90 percent of buyers researching vehicles online (compared to 81 percent in 2023); and 87 percent of sellers being open to selling completely online
- An omnichannel shopping experience is still preferred, with 88 percent of buyers noting that they saw the car in person before purchase.
- Buyers reporting need-based purchases declined year-over-year (62 percent vs. 67 percent in a year earlier) and fewer people were in the market for a replacement vehicle—49 percent in 2024 compared to 61 percent in 2023
- More shoppers looked to buy the first vehicle in their household, up six percentage points to18 percent, or to add a vehicle (34 percent)
Financing Sought
While many believe it is slowing sales, respondents said high interest rates are not discouraging them from financing. Only 11 percent of buyers said rates deterred them from financing (down from 16 percent in 2023). Consistent with last year, approximately half financed (53 percent), with a relatively even split between those who handled the process online (37 percent), in-person (34 percent), or a combination of both (28 percent).
For those who bought at a dealership, a significantly larger number secured financing at the dealer—64 percent compared to 49 percent a year prior.
Ciummei offered that the study showed “consumers who are more prepared before heading to the dealership, dealers who are better equipped to support their customers, and, most importantly, greater satisfaction with the experience.”
