Further, most consumers (79%) who ordered vehicles were generally more satisfied with the experience, compared to a previous experience of buying off the lot. They also indicated they would likely pre-order again when returning to the market.
Among buyers who pre-ordered vehicles, overall satisfaction was higher among those who ordered directly from the automaker, as opposed to ordering through a dealership. The research indicated those who ordered from the automaker had shorter waiting periods, with better vehicle tracking and overall engagement through the process.
More buyers selected F&I products with their purchases in 2022 and leaned into lenders they trust.
Last year, 67% of vehicle buyers indicated they purchased an F&I product, up from 59% in 2021. More products were purchased as well, an average of 1.6, an increase from 1.3 products the year earlier. Shoppers continue to choose products such as extended warranties, GAP insurance to help protect auto loans, and wheel and tire protection plans.
With auto loan rates rising in 2022, the top reason for selecting a lender was predictably tied to the loan rate offered. Notably, though, was a growing importance of "trust in the lender" and general familiarity with the lender. This was particularly true among Gen Z buyers and "Mostly Digital" buyers. In fact, in 2022, trust in the lender was more important than an easy loan application process.
When it comes to securing financing, many buyers indicate they desire more online activity. However, while 55% of buyers checked their credit scores online, only 36% calculated monthly payments online; 30% applied for credit online, and fewer still, only 12%, signed paperwork online last year. This is seen by the Cox Automotive analysts as an opportunity for dealers and consumers, as more online F&I activity improves satisfaction and streamlines the experience.
EV buyers see digital retailing and eCommerce as a way to save time, while buyers choosing traditional powertrains feel it is the avenue to achieve the best deal and reduce buying pressure.
For EV buyers, online is the preferred route. The latest research indicates that 87% of EV buyers are open to the idea of buying fully online---a true eCommerce solution---while only 73% of buyers of new, traditional, internal combustion engine (ICE) vehicles are open to fully eCommerce solutions.
Looking forward, 80% of EV buyers indicate their next purchase will be a mostly online process, compared to 61% of new ICE buyers. New ICE buyers see eCommerce solutions as an avenue to reduce buying pressure and achieve the best deal while spending less time at the dealership. EV buyers, who on average are younger and more tech-savvy, feel digital solutions can save time and make the process easier and more convenient.
Shoppers, buyers and dealers agree: Digital solutions make the car buying journey better.
Nearly all auto dealers---87%---indicate that digital retailing solutions have positively impacted at least one area of their business, reducing time spent, improving efficiency and also benefitting sales, profits and relationships with customers.
Importantly, 81% of shoppers in 2022 noted online activities improve the overall buying experience. Transacting online saves time, according to buyers, and 78% of buyers believe an eCommerce approach provides greater transparency around pricing, and 86% say it allows them to interact with fewer dealership sales personnel.
"Mostly Digital" buyers---those who complete more than 50% of the purchase process steps online---were the most satisfied among all buyers. The research indicated 67% of Mostly Digital buyers were satisfied with the buying experience compared to 49% of Light Digital buyers, who perform less than 20% of the steps online. Mostly Digital buyers are also more likely than Light Digital buyers to feel the dealership gave them a good deal. They were also more satisfied with the amount of time spent during the buying process and at the dealership.
In the year ahead, Cox Automotive forecasts half of all vehicle buyers will engage with at least one digital tool during the purchase process.
Source: Cox Automotive
Abby Andrews