Habits of today’s car shoppers

Car shoppers are more willing now to ‘cross-shop’ than before — meaning they are willing to look at both new and used options, a study from AutoTrader found.

A significant driver for 31 per cent of used buyers and 33 per cent of new buyers is replacing an aging vehicle. Additionally, 25 per cent of used and 39 per cent of new shoppers seek an upgrade to something nicer or newer. Meeting new travel or commuting needs also prompts purchases for 25 per cent of used and 20 per cent of new shoppers.

Within three months, both new and used vehicle shoppers typically complete their purchase, often engaging in cross-shopping. The study found that 47 per cent of used shoppers considered a new vehicle, while 36 per cent of new car shoppers entertained the option of a pre-owned vehicle.

“This insight indicates that car shoppers are now more open than ever when it comes to cross-shopping, emphasizing the need for dealerships to advertise both new and used inventory, to maximize on new opportunities,” an announcement from AutoTrader stated.

Consumers predominantly use online automotive marketplaces like AutoTrader.ca. Online sources remain the top resource for 77 per cent of used vehicle shoppers, outpacing dealership (33 per cent) and manufacturer websites (23 per cent). New vehicle buyers also turn to online marketplaces (42 per cent), though manufacturer (50 per cent) and dealership websites (43 per cent) lead the way.

Research and comparison consume two-thirds of car shoppers’ time, emphasizing the need for dealers to be present throughout the customer journey. As car buyers frequent online marketplaces, with 64 per cent of new car buyers visiting two to five times and used vehicle buyers eleven times or more, dealers must tailor strategies to meet their needs.

Price remains crucial in the car buying process, yet excellent customer service can be more significant. Many buyers prefer paying a fair price if they receive stellar customer service, with loyalty to dealers rising from 40 per cent to 43 per cent for used buyers and from 41 per cent to 50 per cent for new shoppers between 2022 and 2024.