2016 car buyer journey - oem solutions · pdf filesource: 2016 car buyer journey provided by...

2016 Car Buyer Journey

Source: 2016 Car Buyer Journey provided by Autotrader and Kelley Blue Book

2

Market Environment

Source: IHS Automotive

3

Light NEW vehicle sales growth slows as the 2017 peak approaches.

17.0

16

.6

16

.2

13

.2 1

0.4

11

.6

12

.8

14

.5

15

.6

16

.5

17.3

17.8

18

.2

18

.1

17.7

17.2

0

4

8

12

16

20

2005 2010 2015 2020

Millio

ns

IHS Automotive

U.S. NEW Light Vehicle Sales and Forecast – Oct. 2015

Source: Automotive News

4

CPO Sales are at an all-time high.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2001 2003 2005 2007 2009 2011 2013 2015

Millio

ns

Source: IHS and TransUnion Consumer Credit Database

5

Auto originations have grown with increasing credit availability and auto sales growth.

Total Auto Loan and Lease Originations

(New and Used)

0

1

2

3

4

5

6

7

8

20

09

Q3

2009 Q

4

20

10

Q1

20

10

Q2

2010 Q

3

20

10

Q4

20

11

Q1

20

11

Q2

20

11

Q3

20

11

Q4

20

12

Q1

20

12

Q2

20

12

Q3

20

12

Q4

20

13

Q1

20

13

Q2

20

13

Q3

20

13

Q4

20

14

Q1

20

14

Q2

20

14

Q3

20

14

Q4

20

15

Q1

20

15

Q2

Millio

n

Auto sales will remain high, but growth will require conquesting

from others.


6

7

6-in-10 buyers are open to vehicles

across Makes when they begin to shop.

30%

11%

24%

15%

13%

7%

34%

14%

22%

14%

10%

6%

29%

9%

26%

15%

14%

7%

You knew the exact vehicle that you wanted

You knew the vehicle make that you wanted

You knew the body style of the vehicle that

you wanted, but not the make or model

You didn’t know the specific vehicle you

wanted, but you had a certain class of

vehicle in mind

You didn’t know what you wanted, but the

vehicle had to have certain features

You didn’t know what vehicle you wanted

when you started looking

Initial Make/Model Purchase Intent (TOTAL VS. NEW VS. USED)

B

B

A

Total New (A) Used (B) Letters indicate significant differences between groups at the 95% confidence interval

Base: Total (n=2,117, MOE +/- 2.1%), New (n=1,277, MOE +/- 2.7%), Used (n=840, MOE +/- 3.4%)

QS10. Thinking back to when you first considered purchasing a vehicle, which of the following best describes your purchase intention?



8

Vehicle Consideration Mindset (TOTAL VS. NEW VS. USED)

NEW (A)

USED (B)

TOTAL

20% 64% B 1%

40% A 11% 31%

45% A 1% 31%

Letters indicate significant differences between groups at the 95% confidence interval


QS9. Which of the following best describes your mindset when you were shopping for your last vehicle?

New Vehicles only

Used vehicles but

considered New

Used only

New vehicles but

considered Used 18% 24% B 14%

More than half of used buyers considered new vehicles.


9

More than half of buyers return to previously owned makes.

57% Previously Purchased/Leased Vehicle Make

61% 56% 62%

NEW USED CPO

Base: Total (n=1,732), New (n=1,033), Used (n=699), CPO (n=259), Lease (n=212), Luxury (n=228)

QS3d. Prior to this (make), had you ever purchased or leased a (make) before?


10

The conquest battle will largely take place ONLINE as brand preferences are developed ONLINE.


11

Almost everyone shops online prior

to purchasing their vehicle and

nearly half are using their

smartphone to research and shop.


Base: Q99 - Total (n=1,869), New (n=1,098), Used (n=771)

Q99. Prior to purchasing your vehicle, which of the following devices did you use to access automotive information, either through the Internet or by using a mobile device?

83%

46%

31% Tablet

Desktop/ Laptop

Smartphone 88%

Use the Internet to

Research and Shop

(85% New, 90% Used)


12

Buyers spend more time researching and shopping online.

Researching and

Shopping – Online

Researching and Shopping – Print

Talking with Others

Visiting Other Dealerships/Sellers

With the Dealership/ Seller where Purchased

21%

3%

2%

59%

8 : 4 2

0 : 1 5

0 : 2 9

2 : 1 2

3 : 0 6

15%

Base: Total (n=1,816), New (n=1,112), Used (n=704)

Q1520. Approximately how much time did you spend…


13

The Top 5 Activities Done Online During The Shopping Process

Base: Total (n=1,856, MOE +/- 2.3%),

Q9a. Which of the following did you do online?

71%

68%

64%

63%

46%

1

2

3

4

5

Research car pricing

Find actual vehicles listed for sale

Compare different models

Find out what current car is worth

Locate a dealer or get dealer info

14

7-in-10 buyers purchase what they intended once they

arrive at the dealership.

Was Vehicle Purchased Same As Intended (TOTAL VS. NEW VS. USED, AMONG THOSE PURCHASED FROM A DEALERSHIP)

Of Used Buyers

purchased what they

intended once they got to

the dealership

(B)

Of New Buyers purchased

what they intended once

they got to the dealership

(A)

Of Buyers purchased

what they intended

once they got to the

dealership

77% 68% 71% B




Q13d. Is the [insert make and model] that you purchased the same model that you had in mind when you initially visited the dealership?


15

Roughly half of buyers visit a dealership just once and

only test drive 1 vehicle. Visiting, Test Drives and Interactions at Dealership

(TOTAL VS. NEW VS. USED, AMONG THOSE PURCHASING / LEASING FROM A DEALERSHIP)


Base: Varies, see Notes

Q1504. How many times did you visit the dealership/private seller) you purchased or leased) from during the research and shopping process?

Q1522. How many vehicles did you test drive at the dealership where you (insert purchased/leased) your vehicle?

46% visited the dealership they purchased /

leased from 1 time

46%

32%

15%

7%

44%

31%

17%

8%

47%

32%

15%

6%

Total New (A) Used (B)

1.9 1.9 1.8

On Average:

52%

only test drive 1 vehicle at the dealership where they purchased

11%

53%

22%

14% 18%

50%

22%

10% 9%

53%

23%

15% A B

1.4 1.3 1.5

On Average:

0 1 2 3+ 1 2 3 4+


16

Third-Party Sites are central to the online

shopping experience.


17

Buyers spend most of their time on third-party sites.


Base: Total (n=1,599, MOE +/- 2.5%), New (n=957, MOE +/- 3.2%), Used (n=642, MOE +/- 3.9%)


Q6a. Please select the names of the specific website(s)/apps that you used

Q7. Earlier you said that you spent (insert hours from Q1520 a-b) researching vehicles on the Internet or mobile apps. Approximately how much time did you spend on each?

Time Spent Researching and Shopping Online – Website Category (TOTAL VS. NEW VS. USED, AMONG INTERNET USERS)

Time %

Total Time Time %

Total Time Time %

Total Time

TOTAL NEW (A)

USED (B)

Researching &

Shopping Online 59%

% Total Time Time

% Total Time Time

% Total Time Time

8:42 60% A 55% 7:06 9:18 A

Third-Party

Sites 65% A 45% 3:12 6:06 A 60% 5:12

Dealership Sites 16% 1:24 15% 17% 1:12 1:24

OEM Sites 9% 0:47 6% 20% B 1:24 B 0:31


18

Buyers use third-party sites more than other sites.




Online Sources Used to Research & Shop (TOTAL VS. NEW VS. USED, AMONG INTERNET USERS)

78%

57%

36%

74%

57%

54%

80%

57%

29%

Third-Party Sites

Dealership

OEM Sites

A

B



19

Buyers find third-party sites to be the most useful.



Q6d. Of all the websites/apps you visited, while shopping, which one did you find to be most useful?

Most Useful Category of Sites (TOTAL VS. NEW VS. USED, AMONG INTERNET USERS)

56%

25%

12%

1%

3%

3%

43%

24%

25%

1%

3%

4%

60%

26%

6%

1%

4%

3%

Third-Party Sites

Dealership

OEM Sites

Social Media

Other

None of theseTotal New (A) Used (B)

A

B


20

Cox Automotive owns the dominant

properties in the market, but there are competitors that can take additional share.


21

Three-fourths of buyers used a Cox Automotive property during their shopping and buying process.

Online Sources Used to Value Old Vehicle or Research & Shop (TOTAL VS. NEW VS. USED, AMONG INTERNET USERS)



Q601. What sources did you use to determine the trade in value? (KBB, Autotrader, Edmunds, NADA Guides, Black Book, Other)


73%

66%

33%

29%

29%

29%

25%

20%

16%

16%

16%

8%

7%

3%

3%

Cox Automotive

KBB.com

Google

Cars.com

Autotrader

Edmunds

CarMax

Consumer Reports

Craigslist

TrueCar

NADA Guides

CarGurus

eBay Motors

CarsForSale

Black Book

64%

61%

35%

19%

17%

33%

15%

25%

5%

21%

13%

3%

3%

1%

2%

76%

68%

32%

34%

34%

27%

29%

19%

20%

14%

17%

10%

8%

4%

6%

A

A

A

A

A

B

B

A

A

A

B

A

A

A



22

Collectively, Cox Automotive brands

are viewed as the most useful

Third-Party Sites.

Most Useful Third-Party Sites (TOTAL VS. NEW VS. USED, AMONG INTERNET USERS)




19%

11%

7%

8%

6%

5%

6%

2%

4%

1%

3%

1%

Cox Automotive

KBB.com

Cars.com

Autotrader

Edmunds

CarMax

Consumer Reports

Craigslist

TrueCar

NADA Guides

CarGurus

eBay Motors

12%

10%

3%

2%

7%

1%

8%

0%

9%

1%

1%

0%

22%

12%

9%

10%

5%

7%

5%

3%

2%

2%

4%

1%

A

A

A

A

B



23

Buyers find the Cox Automotive brand’s mobile sites to be the most useful while shopping.

Most Useful Third-Party Sites (MOBILE GROUPS, AMONG INTERNET USERS)


Base: Mobile Only (n=200, MOE +/- 6.9%), Heavy Mobile (n=335, MOE +/- 5.4%), Light Mobile (n=379, MOE +/- 5.0%), Desktop Only (n=657, MOE +/- 3.8%)


Cox Automotive 28% CD 21% D 18% 16%

KBB.com 14% 10% 12% 12%

Cars.com 8% 8% 8% 7%

Autotrader 14% CD 11% D 7% D 4%

Edmunds 4% 4% 7% 7%

CarMax 8% C 8% C 3% 6% C

Consumer Reports 2% 6% A 8% A 6%

Craigslist 5% BD 1% 3% B 2%

TrueCar 4% 3% 7% BD 4%

NADA Guides 2% 3% D 1% 1%

CarGurus 5% D 4% D 3% 2%

eBay Motors -- -- 1% 1%

Mobile Only (A)

Heavy Mobile (B)

Light Mobile (C)

Desktop Only (D)


24

While most are satisfied with their overall vehicle purchase experience, the

dealership experience can be further improved.

25

76% 68% 70% B




Q602. Thinking back to your overall shopping experience, how satisfied were you with your shopping experience?

Satisfaction With Overall Shopping Experience (TOTAL VS. NEW VS. USED, % 8-10 RATING)

NEW (A)

USED (B)

TOTAL

New vehicle buyers are more satisfied with their shopping experience.


26

Buyers are most satisfied with the test driving process and least satisfied with the process time and finance interactions.

Satisfaction with Different Steps in the Purchase Process (TOTAL VS. NEW VS. USED, AMONG THOSE WHO PURCHASED / LEASED FROM A DEALERSHIP, %8-10 RATING)



Q102. How satisfied were you with each of the following? Please you a scale from 1 to 10 where 10 means ‘Extremely

satisfied” and 1 means “Not at all satisfied”

Your overall experience

with the DEALERSHIP 76% 79% B 74%

The test driving process 81% 82% 80%

Interactions with the

dealership sales people 77% 81% B 75%

Interactions with the

financing department 67% 69% 65%

How long the process took 56% 56% 57%

TOTAL NEW (A)

USED (B)


27

Over ½ of the time at the dealership is spent on Negotiation and Paperwork.




Q1521. Now please think about the (insert time from Q1520_g) that you spent with the dealership or private seller where you purchased or leased your vehicle. Approximately how much time did you spend…

Time Spent Researching & Shopping Online – Website Category (TOTAL VS. NEW VS. USED, AMONG INTERNET USERS)

Time % Time

@ Dealer Time % Time

@ Dealer Time % Time

@ Dealer

TOTAL NEW (A)

USED (B)

With the Dealership/ Seller

where Purchased 21%

% Total Time Time

% Total Time Time

% Total Time Time

3:06 20% 24% B 3:06 3:00 A

Looking at vehicles & talking

with sales people 30% 30% 0:55 0:53 29% 0:54

Test driving vehicles 16% 0:30 17% 13% 0:25 0:31

Negotiating a price and trade-in offer 22% 0:41 19% 24% 0:45 0:35

Discussing and signing paperwork 33% 1:01 34% 33% 1:01 1:01

Source: 2016 [Study Name] provided by [Business Unit]

28

Satisfaction decreases as time spent at the dealership increases … and as they interact with more personnel.

85% 83% 76%

70%

66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 Hour or less

More than

1 hour to 2

More than

2 hours to 3

More than

3 Hours to 4

More than 4 Hours

SA

TIS

FA

CT

ION

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

1 2 3 4+

Number of people interacted with at dealership

79% 79%

67%

61%


q102_5. Overall dealership experience (How satisfied were you with each of the following? Please use a scale from 1 to 10

where 10 means 'Extremely satisfied' and 1 means 'Not at all satisfied')

It is vitally important to continue to improve the

mobile experience, particularly for Millennials

and GenX.


29


30

Just under half of Buyers used multiple devices while shopping for their vehicle.


Base: Q99 - Total (n=1,869, MOE +/- 2.3%), New (n=1,098, MOE +/- 3.0%), Used (n=771, MOE +/- 3.5%)

Q99. Prior to purchasing your vehicle, which of the following devices did you use to access automotive

information, either through the Internet or by using a mobile device?

83%

46%

31% Tablet

Desktop/ Laptop

Smartphone

46% Use Multiple Devices

While Shopping (46% New, 46% Used)

14% ONLY Used a Mobile Device

While Shopping (14% New, 14% Used)


31

1-in-5 Millennials and 1-in-4 GenX Buyers ONLY used a mobile device to shop.

Millennial

(18-34)

(A)

Gen X

(35-44)

(B)

Boomer

(45-64)

(C)

Pre-Boomer

(65+)

(D)

Multiple Devices 52% D 58% CD 45% D 31%

Mobile Only 20% CD* 24% CD 11% 8%

Base: Younger Millennial (n=57, MOE +/- 13.0%), Older Millennial (n=292, MOE +/- 5.7%), Millennial

(n=349, MOE +/- 5.2%), Gen X (n=347, MOE +/- 5.3%), Boomer (n=852, MOE +/- 3.4%), Pre-Boomer

(n=321, MOE +/- 5.5%)

Q99. Which of the following devices did you use to help you during the researching and shopping process?

Used Only Mobile or Multiple Devices (MILLENNIAL GROUPS AND GENERATIONS, AMONG INTERNET USERS)


32

Millennials and GenX buyers spend nearly half of their time online on a mobile device.

Millennial

(18-34)

(A)

Gen X

(35-44)

(B)

Boomer

(45-64)

(C)

Pre-Boomer

(65+)

(D)

Desktop/Laptop

Users 54% 50% 67% AB 77% ABC

Smartphone

Users 31% CD 32% CD 15% D 7%

Tablet Users 15% 17% 17% 15%

Percentage of Time Researching Online Allocated to Each Device (MILLENNIAL GROUPS AND GENERATIONS, AMONG INTERNET USERS)

Base: Younger Millennial (n=186, MOE +/- 7.2%), Older Millennial (n=292, MOE +/- 5.9%), Millennial (n=281, MOE +/- 5.9%), Gen X (n=295, MOE +/- 5.7%), Boomer (n=741, MOE +/- 3.6%), Pre-Boomer (n=282, MOE +/- 5.9%)

Q1406. What percentage of time researching did you allocate to each source?


33

Did They Use A Mobile Device At The Dealership? (TOTAL VS. NEW VS. USED)

Across all buyers, 1-in-4 used a mobile device at the dealership.


Base: Total (n=835, MOE +/- 3.4%), New (n=459, MOE +/- 4.6%), Used (n=376, MOE +/- 5.1%)

Q1407. Did you use your smartphone to do research or shop while you were at any dealership?

of ALL buyers used a smartphone

at a dealership.

(19% New, 24% Used)

of those used a smartphone to

shop used it at a dealership.

(55% New, 57% Used)

23%

56%


34

2/3 of Millennials who used a smartphone to shop, used it while at a dealership. Use among GenX and Boomers are also high.

Millennial

(18-34)

(A)

Gen X

(35-44)

(B)

Boomer

(45-64)

(C)

Pre-Boomer

(65+)

(D)

% Used a smartphone

to shop 63% CD* 66% CD 41% D 24%

Of those, % used it

while at a dealership 66% CD 58% D 55% D 38%

Did They Use A Mobile Device At The Dealership (MILLENNIAL GROUPS AND GENERATIONS, AMONG THOSE USING A

SMARTPHONE OR TABLET AT THE DEALERSHIP)


35

What Did They Use Their Mobile Devices For At The Dealership (TOTAL VS. NEW VS. USED, AMONG THOSE USING A SMARTPHONE OR TABLET AT THE DEALERSHIP)

Those using mobile devices at the dealership are comparing prices at other dealerships.


Base: Total (n=516, MOE +/- 4.3%), New (n=282, MOE +/- 5.8%), Used (n=234, MOE +/- 6.4%)

Q1507. Which of the following, if any, did you use your tablet/smartphone to access while you were at the dealership?

61%

43%

37%

38%

33%

32%

15%

21%

18%

16%

8%

53%

37%

41%

31%

32%

33%

41%

22%

20%

14%

8%

59%

41%

38%

36%

33%

32%

22%

21%

18%

15%

8%

Compare prices for vehicles at other dealerships

Find prices for vehicles at the dealership where I was

Compare inventory at other dealerships

Check inventory at the dealership where I was

Research trade-in pricing

Completed activities unrelated to car shopping

Research incentives and special offers

Check out dealership ratings and review

Checked finances and/or loan information

Research financing

Complete dealership paperwork

B

TOTAL NEW (A)

USED (B)

2016 car buyer journey - oem solutions · pdf filesource: 2016 car buyer journey provided by...

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