A new study from Cox Automotive shows the car buying experience has significantly improved over the past decade, with shopper satisfaction rising eight percentage points from 60 percent in 2016 to 68 percent in 2025, driven largely by the evolution of digital retailing technology and more transparent dealer practices.
The study, titled “The 4 Key Drivers of Car Shopper Satisfaction,” surveyed 1,090 vehicle buyers—740 new-car buyers and 350 used-car buyers—who purchased vehicles in the past 12 months from franchise dealerships. An additional 256 franchise dealers participated in the research, which was completed between January 3-30, 2025.
Digital Tools Transform Customer Experience
The research reveals that customer experience has been dominated by the evolution of digital retailing technology, fundamentally shifting control to car shoppers. The study identified four key pillars driving satisfaction: knowledgeable and supportive staff, transparency and clear communication, feeling well-informed, and maintaining control throughout the process.
“The aspects that made me feel in control were when I did research and other things online,” said one buyer in the study. “So, I could read and take my time to take a look at and digest the information.”
The emotional journey throughout the car buying process has shown marked improvement across nearly all stages, with particularly strong gains of 71 percent in customer satisfaction during the negotiate deal terms phase, 26 percent improvement when engaging with staff, and 17 percent enhancement during the test drive experience compared to 2016 levels.
Digital retailing has continued to progress through distinct phases since 2016, beginning with early trade-in tools and price calculators, advancing through enhanced pricing transparency during COVID, and culminating in today’s integrated platforms with seamless transitions and personalized communication tools, including generative AI applications.
Persistent Friction Points Identified
Despite overall improvements, the study identified specific areas where customer experience still falls short. Idle or waiting time at dealerships emerged as the top friction point, followed by selecting and purchasing finance and insurance products, and trade-in appraisals.
The research found that 24 percent of buyers considered dropping out during their purchase journey, with negotiations being the most critical abandonment point, cited by 44 percent of those who considered leaving. Trade-in offers at 23 percent and determining affordability at 22 percent rounded out the top three moments when buyers most contemplated walking away.
Technology Integration Drives Results
Dealers with improved customer satisfaction were significantly more likely to offer tools that provide personalization and control. According to the study, 89 percent of dealers with improved satisfaction offered personalized deal terms and financing recommendations, compared to only 67 percent of those with same or declining satisfaction levels.
The research showed that 46 percent of dealers reported improved customer satisfaction year over year, and these dealerships were more likely to provide seamless online-to-offline transitions and integrated platforms that allow customers to pick up where they left off without repeating steps.
Enhanced customer satisfaction translates directly into business results. Among dealers with improved customer satisfaction, 88 percent reported increased profits and sales, 84 percent noted better customer relationships, and 87 percent experienced improved employee experience. This is compared to significantly lower percentages, sometimes as low as 18 percent, among dealers with same or declining satisfaction.
Opportunities for Growth
While there are plenty of dealerships reaping the benefits of digital retailing, the study still identified three key areas where customer needs remain unmet. Those areas were stress reduction throughout the process, personalized and tailored experiences, and overall convenience and ease. These gaps represent significant opportunities for dealers looking to differentiate themselves in an increasingly competitive market.
“While the car buying experience is not yet a perfect science, dealers will want to focus on areas where buyer needs are not being fully met to create a less stressful, more convenient sales process that is tailored to their customers”, said Lori Wittman, President of Retail Solutions at Cox Automotive. “To alleviate these negative feelings, dealers can provide accurate appraisals, clear F&I product transparency, and personalized recommendations.”
The research demonstrates that while 81 percent of shoppers now associate positive emotions like excitement, hopefulness, and confidence with their purchase experience, continued focus on reducing friction and enhancing personalization will be crucial for maintaining competitive advantage in the evolving automotive retail landscape.
Digital Dealer Conference & Expo is coming to Mandalay Bay, Las Vegas, NV this October 14-15! Register today and see great exhibitors like Cox Automotive at Booth #503.
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