The Future of Car Buying: Understanding Evolving Consumer Needs
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.
