Cox Automotive just released an updated Market Tracking Study.
The study examines the changes in consumer vehicle purchasing intentions since June 2022 and their perceptions of the automotive market. The report highlights:
- consumers’ reasons for delaying vehicle purchases
- the maximum prices they are willing to pay for new and used vehicles
- how current interest rates will impact the shopping process and receptiveness to new vehicle technology.
It also dives into changes in household spending categories since the inflation crisis of 2022 and consumers’ summer travel plans. The research was conducted from July 6 – July 10, 2023, with 2,000 consumers aged 18+.
18% of consumers are in the market to purchase a vehicle within the next 6 months which drops demand back to the pandemic levels following a brief spike in 2022.
Key Findings:
New vehicles are unaffordable for the average car shopper: You’ll discover inside the study why many shoppers are pivoting from their intended purchase in favor of different vehicles based on type and price.
Lower income shoppers are being pushed to the margins: Inside the updated study you’ll see the stats behind the shift in the used vehicle market toward higher income brackets, and why sales experiences need to be tailored to meet demands of higher paying customers.
Extended sales process for younger shoppers: The study shares some eye-opening figures on why for younger shoppers, rather than spending on vehicles, more of their share of wallet is going towards housing, utilities and travel. See page 12 for the numbers.
Vehicle technology a larger factor in future car purchases: Consumers are increasingly more receptive to new vehicle technology like digital keys and infotainment systems and the results within the study point to why dealers must prepare their sales staff to speak to all technical capabilities of these new technologies as they become a larger part of the sales conversation.