New research released Jan. 18 by Cox Automotive showed satisfaction with the car buying process declined in 2022 for the second straight year.
The 2022 Car Buyer Journey Study revealed vehicle buyers were frustrated with high prices, limited availability and the amount of time required to complete the process. Used-vehicle buyers, who are often more price sensitive and face higher interest rates, were particularly unsatisfied with the experience in 2022, the research indicated.
Since 2009, Cox Automotive's annual Car Buyer Journey Study has offered a comprehensive look at the overall vehicle buying process in the U.S., with an eye toward consumer satisfaction. The study provides a holistic view---the journey through researching, shopping and the many purchase steps required to complete the deal---for both new- and used-vehicle buyers, and also includes research among dealership staff and management.
"With the annual NADA convention opening in Dallas later this month and bringing together auto dealers from across the country, we think it is more important than ever to showcase the current state of vehicle buying in America," said Isabelle Helms, vice president of research and market intelligence at Cox Automotive. "While buying a vehicle is a complicated transaction, with financing required, trade-in valuations to consider and plenty of research required, it does not have to be frustrating for the consumer. With the right digital tools and systems in place, car buying can be a highly satisfying activity, and as efficient and streamlined as consumers want it to be."
The 2022 Car Buyer Journey Study was created from surveying more than 10,000 consumers who were in the market for a vehicle in 2022---4,150 vehicle shoppers and 6,118 vehicle buyers. As part of the process, dealers were also surveyed. Most of the research was conducted during the second half of 2022.
Key Takeaways from the 2022 Cox Automotive Car Buyer Journey Study
Overall satisfaction with the car buying journey declined in 2022.
According to Cox Automotive research, 61% of vehicle buyers in 2022 were highly satisfied with the process, down from 66% the year earlier and well below the peak of 72% in 2020. Results in 2022 were generally in line with pre-pandemic levels.
Satisfaction for new-vehicle buyers declined only modestly to 70%, down from 71% in 2021, while satisfaction among used-vehicle buyers fell significantly. In 2021, 65% of used-vehicle buyers noted they were highly satisfied with the process. In 2022, the percentage dropped to 58%.
Three elements impacted overall car buying satisfaction: time spent, limited inventory and high prices.
The time spent in the vehicle buying process jumped significantly in 2022, with the typical vehicle buyer reporting the process took 14 hours and 39 minutes, up from 12 hours and 27 minutes in 2021, an increase of 18%. Time spent online shopping and researching vehicles increased by more than an hour compared to 2021, while time at the dealership increased by approximately 20 minutes.
Vehicle shoppers visited more websites during the process, an average of 4.9 sites, up from 4.0 in 2021. All four website categories---automaker, dealer, third-party and used vehicle online retailers---saw an increase in shoppers using their sites. Third-party sites played the largest role, with 79% of buyers visiting sites such as Kelley Blue Book or Autotrader, both Cox Automotive sites, during the process, followed by dealership sites (59%), used vehicle online retailers such as Carvana and Vroom (34%), and automaker websites (33%).
Interestingly, 13% of buyers used a lender website when shopping for their most recent vehicle purchase, an 86% increase from 2021.
In 2022, the shopping experience became less about finding the perfect vehicle and more about finding any vehicle. More than half of the vehicle buyers in 2022 who reported limited inventory said that was a key driver of the increased time spent researching and shopping online.
Also, buyers showed less loyalty to dealerships and vehicle brands last year, especially new-vehicle buyers. In 2022, 37% of new-vehicle buyers purchased a brand they had never owned before, up from 31% in 2021. A record share of shoppers also considered both new and used vehicles last year: 64%, which is up significantly from 55% in 2021.
Record high prices were commonplace in 2022, and buyers were negatively impacted. In 2022, 54% of buyers found prices to be higher than expected, compared to only 31% in 2021. And 63% of these buyers paid more than they intended for a vehicle, compared to 48% the previous year. For all buyers, satisfaction with the price paid declined as well, to 48%, down from 63% in 2021.
Vehicle ordering increased significantly in 2022, and buyers who pre-ordered were generally more satisfied with the overall experience.
Due mostly to new-vehicle inventory shortages, vehicle buyers were far more likely to have pre-ordered last year. Nearly one in five new vehicle sales last year was a pre-ordered vehicle, an 89% increase year over year. More dealers offered this solution, and 74% of consumers who pre-ordered indicated they chose that route to get the key features they wanted and exclude those they didn't.
Abby Andrews