Did you know that over 80% of consumers believe that macrotrends will reshape car buying in the next decade? As our needs and behaviors evolve at an unprecedented pace, it’s crucial for industry leaders to stay ahead of the curve. Whether you’re an OEM, dealer, or lender, understanding these shifts is key to meeting the demands of tomorrow’s consumers.
Cox Automotive surveyed over 2,000 consumers about their current car shopping attitudes and how they expect these to change over the next 10 years. Our research focuses on major changes with widespread impacts.
Customers’ Needs are Driven by Defining Moments
The needs of consumers today are very different from those of just 4 years ago, and the consumers of tomorrow will have new expectations and preferences. This evolution is shaped by the significant events we’ve experienced and those we will encounter in the future. The most impactful changes are those that span multiple industries and will sustain over time. These are what we call macrotrends.
Macrotrends Have Widespread Impacts
These trends were selected because they are reshaping every aspect of our lives, including car buying. We asked these consumers how they pictured their lives in 10 years, relative to these macrotrends.
Trust & Transparency: Personal data is fueling all our experiences. People feel more exposed and expect companies they trust to prioritize their privacy and protection over profit. A significant 77% will only share data with companies that are transparent with their privacy policies.
Shifting Needs: Consumersare rethinking how products are used and how they shop for them, prioritizing flexibility and convenience. For example, 61% would be comfortable buying entirely online, especially younger buyers.
Redefining Affordability: With money not stretching as far as it used to, consumers are more selective in their spending. For many, affordability is no longer about “what can I afford?” but rather “what do I want to afford?” In fact, 62% are willing to indulge in their next vehicle, if it makes them feel good and improves their quality of life.
Environmental & Social Causes: More people today are holding businesses accountable to act toward a greener, more inclusive and equitable world. About 65% pay attention to the environmental impact of their purchases.
Immersive Experiences: Technological innovation, such as Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI), is driving change. Around 55% are comfortable using chatbots for routine questions within the vehicle shopping experience.
Impact of Macrotrends on the Future of Car Buying
Consumer behavior in vehicle shopping has changed significantly and will continue to evolve over the next decade. As younger generations become a larger percentage of car buyers, OEMs must be prepared for these shifts. While consumers predict a rise in “all online” purchases, omnichannel experiences are expected to remain the most popular.
Ultimately, OEMs and dealers will need to support all online purchases, as 1 in 3 buyers prefer this path. However, with a 43% preference, omnichannel remains the favored method, even when looking 10 years ahead.
Embracing the Future
To stay ahead in the automotive industry, it’s important to understand and adapt to these big trends. A Cox Automotive Marketing Partnership gives you powerful tools and insights to keep you ahead of the curve. Our consumer data and dynamic content allow you to create personalized marketing strategies that build trust and loyalty with shoppers, helping them make smart decisions that align with their evolving needs.
The future of car buying is already here. Together, we can shape it by connecting every moment, understanding every need, and making the car buying experience smooth and enjoyable for everyone.
From navigating hundreds of model options to understanding new technology and determining what they can afford, car buyer’s journeys are more complex than ever. Three out of four shoppers are undecided at the start of the process. Where do they turn to guide their decisions?
Car shoppers seek out engaging videos, informative articles and trusted reviews. Whether it’s learning more about EVs and hybrids or researching award winning vehicles, content is the key to influencing their path to purchase. In fact, 90% of shoppers use content to research a new vehicle.
Cox Automotive commissioned GfK to examine how consumers are engaging with auto-related marketing content and understand how it helps them make decisions about their next vehicle purchase. A few key themes emerged from this year’s study:
Car Shoppers Want Video
More shoppers now prefer watching videos over reading. In addition to consumer ratings, reviews and articles, video has become a top source for shoppers as they learn more about brands and vehicles. Videos help simplify complex concepts and save time. They also motivate shoppers as 72% took action after seeing an online video ad for a vehicle.
Awards Make an Impression
Much like videos, awards resonate with consumers in a big way. 83% of vehicle shoppers feel that awards and accolades are important as they make choices. Awards even outshine deals and have more influence than special pricing. Millennials, in particular, are influenced by awards from a trusted source. Winning an award is a strong recommendation that gets attention and inspires action. Eight in ten shoppers took actions like looking up more information or contacting a dealership after hearing a vehicle won an award.
EV and Hybrid Shoppers Rely on Content
EV and hybrid shoppers are leading the increased reliance on content. It’s no surprise that they are doing even more research to learn more about new technology and owning an electric or hybrid vehicle. Expert video reviews have become one of the top resources the EV/hybrid shoppers seek out to learn more and they even prefer longer videos that clock in over the five-minute mark. Interactive content, such as pricing calculators and quizzes to match up shoppers with the right vehicle are also considered helpful and trusted by more EV and hybrid shoppers.
Consumers value editorial and expert content for its trustworthiness, usefulness and objectivity, it becomes the perfect complement to support your brand’s advertising. To learn more, check out more key findings from the 2024 Cox Automotive GfK Content Influence Study here.
Source: 2024 Cox Automotive GfK Content Influence Study
Electric vehicles are becoming more mainstream, but growth is hitting a speedbump.
It’s been an exciting time in the industry as electric vehicle (EV) sales hit new records. For the first time, in 2023, over a million EVs were sold. Fast forward to January 2024, and now there are more than 3.2 million EVs in the U.S. 1 More EV models are entering the market from more manufacturers, which means pricing is getting more competitive and more people can afford them.
Yet the EV growth rate is slowing. An increase in supply and more available models have outpaced consumer demand. With weakening demand, Tesla led the pack in making price cuts and began a domino effect across the industry. EV consideration among car shoppers has begun to wane and inventory is sitting on dealership lots longer. So what’s next for the EV market?
Many consumers aren’t ready for EVs…yet.
An EV Skeptic is defined as a car shopper who is only considering vehicles powered by traditional internal combustion engines (ICE). According to the 2024 Path to EV Adoption Study by Cox Automotive, nearly half of vehicle shoppers in the market today are Skeptics. These shoppers are apprehensive about the idea of fully committing to an electric vehicle.
Why aren’t most car buyers ready to take the leap into the electric vehicle segment? There are multiple barriers to adoption that OEMs and dealers will need to overcome to move Skeptics into a consideration and purchase mindset:
Driving Range and Lack of Infrastructure – Consumers are still worried about the range for electric vehicles and that they won’t be able to drive as far. Notably, there is still widespread concern that a lack of charging stations could impact their travel plans.
Battery Fears – EV batteries continue to serve as a deterrent to purchase due to concerns about the battery losing charge, the length of time to charge as well as the cost to replace the battery.
Affordability – While purchase price is coming down and the addition of more models provides more affordable options, consumers still perceive ownership costs for EVs to be higher than comparable ICEs and hybrids.
These perceptions continue to make consumers apprehensive about EVs so many are still looking to the familiarity of ICE and hybrids for their next vehicle.
But there is still hope for an EV future. How can OEMs encourage car shoppers to take the leap?
While growth has slowed, for many brands, awareness and consideration of EV models is strengthening. This could signal that more consumers will look toward EVs sooner than later. EV consideration will notably increase with 54% of current Skeptics saying that 3-5 years from now will be the right time to purchase an EV. By 2033, 90% of vehicle shoppers will be considering an electric vehicle.2
This shift will be driven by continued advances in technology, more EV charging infrastructure and consumer education. More models and price reductions will cast a wider net attracting Gen Z, multicultural and less-affluent shoppers.
Educating consumers on EV ownership will be key in driving this shift. OEMs and advertisers can start now to nudge them into the consideration stage.
Content helps EV buyers make decisions.
EV buyers consume more content than ICE buyers. They rely heavily on content, especially videos, when researching online. Expert reviews and ratings, vehicle awards and more help consumers better understand the new world of electric vehicles. New EV buyers also visit more sites than new ICE buyers as they gather information.3
Powerful video advertising and content leads EV buyers to take actions like contacting or visiting a dealer, looking up more information on a vehicle, submitting a form and scheduling a test drive. 74% of new EV buyers took action after viewing an online auto video ad compared to 65% of new ICE buyers.4
Your EV content should highlight your brand’s line up. With more models entering the market, consumers need to know what sets yours apart. EV considerers tend to be technology focused. Spotlighting tech enhancements and features in your line up is a critical way to move shoppers closer to purchase.
Call out the key benefits of electric (EV) versus internal combustion (ICE) vehicles. As EV shopper demographics are skewing younger, lower income and multicultural, helping these audiences understand the benefits of EV will move them closer to their purchase.
Entice EV shoppers and skeptics with key offers.
Free charging and maintenance offers could help push both EV Considerers and Skeptics closer to purchase. A free at-home charger, free maintenance or service plan, as well as free charging at charging stations are concepts that would help increase EV sales with consumers. Survey respondents indicated that six months of free maintenance and free charging would be the optimal trial period.2
Accelerate EV adoption with coordinated efforts across OEM and Dealer levels.
67% of franchise dealers prefer that OEMs share in the responsibilities for upper funnel activities, while they take charge of the lower funnel steps.2 Dealers want OEMs to help educate consumers on their line-up, on the key differences and benefits of EV vs. ICE, as well as provide information on EVs listed for sale.
Get Ready for the Switch
While maybe not as quickly as OEMs and dealers would like, the automotive shopper is moving toward the new frontier of electric vehicles. Understanding and addressing why Skeptics and Considerers are delaying an EV purchase can help you entice them to purchase sooner. Brand and model content tools, especially video, will be critical to educate, build awareness and drive higher consideration. Higher incentives and working across tiers will move shoppers closer to an electric future.
As we enter the new year, let’s reflect on the changes that shaped the automotive industry in 2023. Discover how the surge in new car buyer satisfaction paves the way for upcoming trends and opportunities and explore what your brand can focus on this year to help car buyers navigate their journey.
The 2023 Cox Automotive Car Buyer Journey results were derived from surveys of 1,966 consumers who bought or leased a new vehicle from August 2022 – September 2023.
Buyer Shift: Consumers have a more open-minded approach due to lingering sticker shock.
While new buyers express satisfaction with expanded vehicle choices, the challenge of sticker shock remains. As a result, fewer new buyers start off with a specific vehicle in mind,
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As shoppers become more curious, those who haven’t made up their minds will depend on interesting and helpful content to guide their research. In fact, 90% of new shoppers looking to buy a car plan to use content to learn about new vehicles.2
Tip: Invest in retention and conquest marketing campaigns that highlight vehicle features and technology so that your models stand out from the rest.
Buyer Shift: Third-Party Sites Gain Growing Influence in Vehicle Purchase Decisions
Third party sites proved to be the most resilient and influential online source, with their influence continuing to grow. (Dealer and OEM sites closely follow.) New buyers attest to their trustworthiness, reliability, and unbiased objectivity, solidifying their position as the go-to source in the automotive decision-making journey.
Highest Attributes By Site1
With 61% of new buyers influenced by content2, make sure your brand is where shoppers seek information. As the preferred destination for make and model insights2, our content is recognized as the most trustworthy3.
Tip: Capture discerning shoppers’ attention by showcasing trustworthy, unbiased content on top third-party sites, where influence in vehicle purchase decisions is on the rise.
Buyer Shift: New vehicles are gaining ground with new audiences! Multicultural buyers are accounting for a higher percentage of new vehicle sales across all categories. Content marketing holds the key to shaping their preferred vehicle.
The new vehicle market depends on wealthier households, as seen in the increasing average annual income of buyers. In 2023, multicultural buyers became a larger part of new car sales, and millennials took over the luxury vehicle segment. It’s important to tailor content for these audiences, as they believe content influences their vehicle choices.
Top Content Marketing sources that influence vehicle choice Among Multi-Cultural New Shoppers/Buyers2 (% high influence)
Consumer ratings and reviews
Online video reviews from an expert
Online test drive videos from an expert
Tip: Customize your content strategy for a diverse audience, acknowledging the strong impact of videos – especially online video reviews and test drive videos from experts.
We hope these tips will help you continue to reach and influence car shoppers in 2024 and beyond. To learn more about the results of the 2023 Car Buyer Journey and other Cox Automotive studies, contact your Cox Automotive representative.
Source: 1. 2023 Cox Automotive Car Buyer Journey Study, Released January 2024 2. 2023 Cox Automotive GfK Content Influence Study 3. 2023 Pollfish Awards and Accolades Survey, May 2023
