Report Shows How the Economy Has Impacted the Way Americans Shop for Cars

TrueCar, Inc. on March 9 released the latest version of its Automotive Shopper Trends Report (ASTR), a comprehensive look into auto shopper actions and expectations.

Combining nationwide survey results with data from TrueCar's platform, the ASTR uncovers insights from the latter half of 2022 on automotive trends for both consumers and dealers.

The report showed although new car inventory is returning, high interest rates continue to add to affordability challenges and influence how consumers approach car buying.

Insights from This Edition of the ASTR

• Despite the economy and high prices, 54% of car shoppers are facing the current market because they say they need a car now.
• For the sixth quarter in a row, the average loan term for a used car was longer than the average loan term for a new car, due to consumers' desires to keep monthly payments low.
• Consumers are changing their mind during the buying process: 7% of shoppers who prospected for a new car ended up buying used, a 10% increase since Q1-Q2 2022.

Additionally, the report found 95% of shoppers want to do at least some part of their deal online, revealing a new persona: the omnichannel shopper, a consumer looking to do any amount of their car purchase online, before going into the dealership. These shoppers have a variety of traits that define their shopping experience, including:

• 80% of omnichannel shoppers have a vehicle budget of $50K+
• 76% want the latest technology
• 74% are considering an EV as their next purchase
• 66% plan to lease

"Car buyers and their expectations have changed over the past few years as the automotive industry continues to shift, especially with the move toward online marketplaces," said Mike Darrow, president and CEO at TrueCar. "Consumers are continuing to embrace online shopping to help them find the vehicle they need, as affordability is emerging as a key issue affecting future sales."

TrueCar's full report includes deeper car-buying actions and expectations such as brand preferences, growth in EV demand, purchasing habits, top-selling features in today's vehicles, and the used-car market. To download the Automotive Shoppers Trends Report, visit dealer.truecar.com/astr-year-end-2022.

Source: TrueCar