25 Must Know Car Stats On Vehicle Buyers
In this blog we will un-covering some interesting statistics on vehicle buyers in the motor industry from the very beginning to the very end. We dive deep on the exact thought processes, and procedures taken by both parties in the exchange of vehicle purchase.
When people begin their search for a car, on average they will spend 59% of their time researching before they even set foot in any showroom or car dealership. This will help reduce the amount of time they will spend in the showroom asking questions and generally wasting time.
People love to really dig deep, that is why 46% will use several different car compare websites to make sure they get the very best deal. The key for most car companies online is to make a big impact on the short timeframe that they have with each prospect.
It is very rare at the beginning of the search that the buyer will know what they are looking for, that is why 60% are open to multiple vehicle choices. It is important to know and understand exactly what their boundaries are so you can gove them the best possible option lists for their needs and wants.
Because of the vast amount of options third party sites provide, over 75% or searchers continually use third party sites to have a wider array of data at their fingertips and find a car dealer that will suit their needs. Everyone that comes through to Avon Valley garage from third party users now come to us direct as a direct impact from the quality of service we have supplied.
Walk-ins remain the most common form of initial contact that people have with any car dealership. We make our service fast, friendly, and efficient so that your experience with us is enjoyable and extremely helpful. We want to make sure you get the best deal as fast as possible to limit the amount of time you spend in the showroom and more time enjoying your new vehicle!
There are 5 main activities that occur when potential buyers are shopping around online
- The researching of car prices in the local area
- Finding the listings of the cars that they have researched the price on
- Comparing different models within a particular brand they desire to go for
- Finding out what the car is currently worth in the market
- Looking for trustworthy and reliable dealers that will be able to supply all of the above at a fair price and good quality of the vehicle.
When asked for a customer satisfaction survey completion, most car buyers will rate the test driving experience and 8-10/10. However, this will decline to around 67% percent as the survey goes on. You will find the cause will be the F and I process of the deal. On average, 3 hours will be spent from the moment entered in the garage till the moment left, and half of that time is allocated to the negotiating and the paperwork which further increases the customer satisfaction rate to between 55- 60%
Some shoppers will often engage with social media platforms to find out if the car dealer they are searching for is trustworthy, reliable, and provides a good value of service. This can be estimated at around 22% of the internets' buyers. Here you can see our social media channels for future reference. JD POWER AUTOSHOPPER STUDY
Although social media sites can be helpful, most buyers say that it will not be the sole reason they make a purchase, only 13% say the content they see as helpful in influencing them which tells us there is a big room for improvement among car garages social media channels. JD POWER AUTOSHOPPER STUDY
Almost all car buyers will post a photo of their new purchase straight after the get the confirmation. By tagging small businesses that you received your service from in the photo, can help them with notoriety and make sure that your friends and family know of a place that they could potentially get their cars from too! roughly 88% post to Facebook and the remaining 22% will post theirs on Instagram or even both! JD POWER AUTOSHOPPER STUDY
It might be of no surprise that smartphones are catching up to be the no.1 tool for searching around online when it comes to buying vehicles. When people need to find out specific info on their desired vehicle, a little over half will make that request straight from their mobile phone. However, the laptop still remains in first place for the time being. But, with the increasing rise in time spent on mobile devices, it could easily be surpassed in the near future. JD POWER AUTOSHOPPER STUDY
An interesting fact is that Millennials consider more car options when online shopping than baby boomers! This also leads to Millenials taking longer to make decisions and the overall process from start to finish. Baby boomers having a smaller buying cycle that usually lasts 15.7 weeks vs Millennials buying cycles usually lasting 16.9. That works out around 4.5 more hours altogether! JD POWER
A study was conducted in America that revealed a whopping 87% feel uneasy about car shopping on the showroom floor, and 61% feel like they don't know enough information and feel like they are getting scammed. We make sure to always have our customers at ease whether they are shopping with us online or on the showroom floor. Our expert staff bend over backward to re-assure you of our high customer satisfaction rate and service!
Here you can see our "dislike scale" when it comes to negotiating for a new car. It can be said that there is definitely room for improvement when it comes to making the customer feel at ease across the car industry. Millennials are at a 56% rate, Gen X sits around the 24% mark. An interesting note is that Millenial women feel pressured into buying a vehicle (69%) and when asked about car extra's 49% they felt tricked into getting more than what was actually necessary.
Another study was taken and it was found out that if they had the option, 54% would actually buy their car straight from their home without ever entering the showroom and 42% said that they would be able to go ahead with the purchase of their vehicle even without doing a test drive to see if they actually liked it or not. They had stated that there would have to be some sort of guarantee in the contract if they found that the car was not exactly as described or did not perform that well though.
Facebook has done some researchers on their users in the US when it comes to car buying, and they found out that they really enjoyed using social media to find out the opinions of their peers before making a buying decision or taking a test drive. In fact, 20% of all test drives that are booked happen from a mobile device.
For car garages themselves, they had stated that the main concern in their business was increasing the volume of people that gets into contact with them on a lead basis. The second was improving the actual number of conversions, next was reducing the cost per acquisition and then it was increasing the revenue amount from each lead they got, according to 9 clouds
If a lead comes into the business of a car garage, before making the return call or reaching out, they will use certain information that will then lead the call and best give the customer the answers that they want. Normally this can be done by following the forms that were filled out by paid ads or on their website, however generally speaking they will use very basic contact info, only important aspects on the particular vehicle that they may have shown an interest in, the vehicles service and previous purchase history, and website interaction information and of course social media info also. 9 Clouds
Interestingly enough, 54% of shoppers would rather pay a little bit more when it comes to their car if the particular dealer can offer a service that is relevant to them. I.e timeframe, satisfaction, and attention to detail. Many hate the waiting times and the pushiness of most dealers today. Something we are not, and pride ourselves in making each individual customer experience unique based on their current needs and wants! (Autotrader)
Understandably, 72% said that they would actually start visiting showrooms more often if more thought and attention was put into the buying experience when the prospect walks through the door. That is why we focus so heavily on customer experience, especially in the digital world. Although digital communication is a way of life now, nothing beats face to face interaction and the joy of the job than getting to see the excitement on our customer's faces after we have done our job and got them the very best deal on their dream car! (Autotrader)
Youtube has been a big driving factor in the car industry for shoppers making decisions. Google confirmed a data test that was run by Millward brown digital that 70% of buyers that used Youtube to find out information and watched test drives etc were positively impacted on making a good buying decision. Youtube car views, test drive video's and virtual showrooms are continually on the rise.
For millennials, cars have become very important to them. It helps them satisfy their need to stay connected and the likes of extras, technology, and add ons have become increasingly popular among them. This information was provided by a vehicle research firm called SBD.
Companies that can leverage integrated mobile apps will do a lot better with the customer than those who do not use this method. A study by DME Automotive ( had shown that if a customer was to be introduced to a sleek branded app, that would increase their chances of buying a vehicle from that particular company up to 73%. It also had benefits even after the sale, there were 25% more appointment bookings due to the general ease and simplistic process the app had provided them.
The company cars.com confirmed that users of these apps would also spend just more than non-users of the apps. The difference is 7% which in some cases could amount to quite a lot.
Dealer's average response time was at is 9.2 hours when it comes to getting back to their customers according to a study by Arthur D Little in 2016. Although this will have improved substantially over the years with social media, its definitely an area that all car garages must keep on continually improving if they want to survive in the fierce battle for customers in today's digital age. Arthur D Little
Which fact did you find most interesting in this list? We would love to hear from you. Connect with us Facebook.
As car enthusiasts we love to research the industry and how we can provide the very best customer service from the very first thought, shopping online, and coming into the showroom. We aim to make it an enjoyable experience for all wherein the end you benefit greatly and leave us with a smile on your face!
Check out our selection of used vehicles. All of our cars are extremely high-quality and we have hands on, professional staff available to respond to any questions or queries that you may have!
May 14, 2020 at 3:27 PM