The modern car shopper is increasingly flexible, digitally savvy, and motivated by a complex mix of needs, wants, and economic realities, according to the 2025 Consumer Insights Report from CarGurus. The eighth annual study, which surveyed over 3,000 recent buyers and sellers, revealed a significant evolution in the path to purchase. A customer journey marked by a surge in brand consideration, a deeper reliance on digital options, and a growing number of consumers selling vehicles out of financial necessity.
The Customer Journey is Now Hybrid
The report confirmed that the car buying journey is now firmly a hybrid experience, blending online research with essential in-person interactions. A full 83 percent of buyers now prefer to handle more of the process from home, a figure that has steadily climbed from 69 percent in 2023. However, this digital preference doesn’t eliminate the desire for physical interaction. Nearly 90 percent of buyers still view the vehicle in person before purchasing, and the test drive remains the top activity preferred at the dealership by 63 percent of respondents. Shoppers are also contacting and visiting more dealerships than in the past, with the average buyer reaching out to 2.5 dealers (up from 1.8 in 2024) and visiting 2.1.
As technology adoption grows, four in five shoppers are now open to using AI in their buying and selling process. Millennials are the most receptive, with 86 percent open to using AI, followed by Gen X at 77 percent and Gen Z at 73 percent. The most desired AI-powered tasks include comparing multiple vehicles, finding specific listings, and summarizing vehicle and dealership reviews.
The Consumer Mindset Began to Change in 2025
While practical needs remain the primary driver for most vehicle purchases, the data still showed a notable shift in consumer mindset. The desire to “treat myself” has risen to become the third most common buying motivator, up from fourth place in 2024. It jumped from 20 percent to 25 percent year over year and surpassed 2024’s third place option of wanting something new. This increased emotional component is still heavily balanced by persistent economic pressures, with 73 percent of shoppers stating that factors like inflation and interest rates played a role in their decisions.
For sellers, these financial concerns were even more pronounced; the number of consumers citing a financial need as their reason for selling jumped to 57 percent, up from 48 percent the previous year.
EVs and Hybrids Grow, but is it Sustainable?
One of the most significant trends highlighted in the report is the growing interest in alternative powertrains. Fuel type has surged to become the #3 factor consumers look for in a vehicle, climbing from #6 in 2024. While gasoline-powered vehicles still command the majority of repeat purchases, loyalty to hybrids is growing, with 58 percent of hybrid owners choosing to buy another, up from 45 percent in 2024.
However, overall consideration actually saw a slight decline from 38 percent to 35 percent for hybrids and from 32 percent to 27 percent. This was most likely due, in part, to the rollback of gas car bans in the U.S. and the expiration of federal tax credits for electrical vehicles. Only time will tell if EVs can continue to drive demand in the current economic environment, but in the meantime, hybrids may offer a solid bridge for consumers who are looking to go green but aren’t quite ready to go all the way just yet.
Brand Loyalty Sees a Decrease
Once a major strength of many top automakers, brand loyalty appears to be waning. The average shopper now considers 2.6 different brands, and a remarkable 70 percent of those replacing a vehicle switched brands, a huge increase from 43 percent in 2024. More than half of all shoppers (53%) described themselves as flexible on make and model, prioritizing vehicle condition and budget above all else. This creates a substantial opportunity for dealers to act as trusted consultants, guiding open-minded consumers to the best-fit vehicle in their inventory, regardless of the badge on the grille.’
Consumer Satisfaction is Still High Overall Even Amid Affordability Issues
Overall satisfaction with the car buying process remains high at 77 percent, but a clear divide exists between new and used car buyers. Satisfaction among new-car buyers reached 89 percent, while used-car buyers reported a much lower 70 percent satisfaction rate.
For all shoppers, the primary pain points remain consistent: negotiating the price and understanding if they are getting a fair deal. This is reflected in their choice of dealership, where “confidence that I would get treated fairly” has risen to become the third most important factor, underscoring the critical role that trust and transparency play in today’s evolving automotive retail landscape.
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