A new survey shows car buyers are increasingly happy with their dealers at a seven out of ten rate.
Cox Automotive’s annual Car Buyer Journey (CBJ) Study released Jan. 17 revealed satisfaction with the overall vehicle shopping and buying experience improved in 2023 after declining the two previous years.
The CBJ survey offered that improved inventory levels, the return of discounting, and a further proliferation of an omnichannel approach combining online and at-dealership activities produced a higher level of satisfaction.
Better then 2022
Overall, 69 percent of consumers reported being highly satisfied with the process compared to 61 percent in the 2022 study. Respondents offered heightened product availability, the return of incentives, and a continued shift toward a more digital process were the main contributing factors.
Additionally, overall vehicle buyer satisfaction increased to 68 percent from 58 percent. New-vehicle buyers reported a 73 percent satisfaction rate, up from 70 percent the previous year.
Retail outlets, specifically dealerships, continue to deliver an overwhelmingly level of satisfaction. In 2023, 74 percent of all vehicle reported elevated satisfaction levels with their dealership experience.
New Deal Happiness
Satisfaction with the retail experience among new-vehicle buyers matched an all-time high of 79 percent, equal to the level reached in 2020. Among the interactions garnering the highest praises were the test drive experience (82 percent), vehicle pickup and delivery process (79 percent), and interaction with the sales team (77 percent).
“There is an often-cited narrative that suggests going to a car dealer is worse than a root canal,” said Isabelle Helms, vice president of Research and Market Intelligence at Cox Automotive in a press statement. “Our research and data, however, suggest that this is simply not the case.”
The 2023 survey results were derived from nearly 3,000 consumers who bought a new or used vehicle in a 12-month period ending August 2023. The survey was conducted in August and September 2023.
Buyer Demographics
In the report, 68 percent of buyers considered both new and used vehicles, up from 64 percent in the previous report; 78 percent of used-vehicle buyers considered a new vehicle during the shopping process.
The survey found purchase in the U.S. continues to be driven by households with above-average incomes: The average household income (HHI) in the survey period for a new-vehicle buyer was $115,000 and was $96,000 for a used-vehicle buyer.
Meanwhile, electric vehicle (EV) buyers were notably younger than average (41 years old versus 52 for all new-vehicle buyers) and higher earners (HHI for an EV buyer was $140,000).
Deeper Investigation
Buyers typically considered two vehicles and visited two dealerships.
Nearly 80 percent of shoppers visited a third-party website during their buying journey (e.g., Autotrader, CarGurus, Edmunds.com, or Kelley Blue Book).
EV buyers were more likely to visit third-party sites, particularly first-time buyers. The report also reveals that fewer shoppers visited automaker websites or used online retailers compared to 2021 and 2022.
Merging Online, Brick-and-Mortar
When it comes to car buying in America, the desired state is omnichannel as only 7 percent completed every step online in 2023. The survey found 43 percent completed steps in a mix of online and at the dealership, and 50 percent completed all the steps in person. Used-vehicle buyers were more likely to cite in-person as the solution.
The interaction online has led to less time in the showroom as new buyers reported spending approximately 11 hours and 45 minutes from beginning to end, down more than 80 minutes from the prior year. And used-vehicle buyers reported spending more than 14 hours, a one-hour decrease.
Vanessa Ton, senior manager of Market and Customer Research, commented that dealerships that fully embrace an omnichannel approach are the most successful, as the process becomes more efficient for everyone involved and delivers happier buyers.
“Year after year, our studies suggest that consumers are not pursuing an entirely digital experience,” said Ton. “Rather, we believe 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.”