The relationship between car buyers and dealerships is undergoing a renaissance, driven by a powerful combination of digital transparency and personalized in-person experiences. According to the Capital One Car Buying Outlook 2025 Report, consumer trust in dealerships has increased remarkably, jumping from 44% in 2023 to 69% this year. This finding challenges long-standing stereotypes about the adversarial nature of car buying and points to a future where technology and human connection work in tandem to build confidence.
The report, now in its fifth year, highlights a big shift: the adversarial gap is closing. As dealers embrace digital tools that empower consumers, they are reaping the rewards in the form of higher trust scores and repeat business.
“The combination of information from digital tools and the in-person experience can help car buyers to feel informed, trust and, ultimately, excitement about where the experience leads,” said Sanjiv Yajnik, President of Capital One Auto. “An analysis of our data shows that satisfaction, trust and transparency are all related. When tools help enable car buyers to gather reliable information on models, inventories, pricing and financing, they can arrive at the dealership ready to discuss their options with confidence.”
Digital Tools: The Catalyst for Transparency
A major driver of this newfound trust is the widespread adoption of digital research tools. The report reveals a direct correlation between a buyer’s familiarity with these tools and their perception of the dealership. When buyers are familiar with a dealer’s digital offerings—such as loan calculators, inventory browsers, and trade-in estimators—they are 16 percentage points more likely to view the buying experience as transparent. They are also 26 percentage points more likely to say they understand all the steps involved in the purchase.
Trust levels reflect this dynamic: 71% of car buyers trust dealerships when they are familiar with digital tools, compared to just 56% among those who are unfamiliar with them. Dealers have taken note of this competitive advantage. In 2025, 86% of dealers surveyed believe digital tools are necessary to maintain a competitive edge, a significant leap from 61% in 2021.
Most car buyers (60%) now rely on external sources not related to the dealership when beginning their research, and nearly half of recent buyers (46%) researched vehicles online before ever setting foot on a lot. This pre-work allows consumers to arrive at the showroom feeling prepared rather than vulnerable.
The Hybrid Model: Ease Online, Excitement In-Person
While digital tools provide the foundation of information, the in-person experience remains the emotional core of car buying. The report identifies a clear distinction in how consumers value each channel: they use online tools for ease and shop in person for excitement.
In 2025, the hybrid approach is the norm, with 74% of recent car buyers using a mixture of online and in-person methods. While 54% of consumers shop online to compare prices easily, the emotional payoff happens in the showroom. Buyers who shopped in person reported significantly higher levels of positive emotion compared to online-only shoppers. Specifically, 67% of in-person shoppers felt excitement (vs. 56% for online) and 52% felt delight (vs. 44% for online).
Crucially, the in-person experience also fosters a greater sense of agency. Buyers were nearly twice as likely to say they felt motivated by a greater sense of control when shopping in person compared to online. Contrary to the idea that online shopping is more transparent, 40% of in-person shoppers found their experience transparent, compared to only 18% of online shoppers. This suggests that while data is gathered digitally, trust is solidified personally.
Gen Z: A Paradox of Frustration and Trust
The report uncovered a fascinating paradox within Generation Z. As the newest entrants to the car market, Gen Z buyers report higher levels of stress and frustration than their older counterparts. Approximately 34% feel overwhelmed by the experience, 29% feel stressed, and 25% express frustration with price negotiations and financing.
However, despite these anxieties, Gen Z is uniquely open to dealership guidance. Unlike Boomers, Gen X, and Millennials, Gen Z was the only generation to rank dealers among their top five most trusted sources of information. They are digital natives who verify everything—53% use external sources to decide which dealer to engage, and 40% continue to check external sources even while visiting the dealership—but they ultimately value the dealer’s expertise.
This generation’s top concerns at the dealership are practical: test drives (42%) and interest rates (41%). Their reliance on dealers as a trusted resource suggests that if dealers can help Gen Z navigate the complexities of financing and negotiation, they can secure a loyal customer base for decades to come.
The Halo Effect of Manufacturer Trust
Another interesting finding is in manufacturer credibility. Three-quarters (73%) of car buyers view manufacturers as trustworthy sources of information. Dealers are benefiting from this, with 45% of recent buyers stating that manufacturers contributed to the trust they feel in dealerships—a figure that has more than doubled from 20% in 2024. As buyers engage with financing thoughts earlier in the process—often at the “make and model” selection stage—manufacturer tools are effectively warming up leads for dealers.
Moving into 2026 the dealers will have to continue to evolve. By marrying the efficiency of digital tools with the emotional engagement of the showroom, dealers have already turned the tide on trust. As the new year gets into full swing, they will be looking to create a more transparent and satisfying journey for the modern car buyer to guarantee that trust turns into future sales.
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