COX AUTOMOTIVE CAR BUYER JOURNEY STUDY: PANDEMIC EDITION - Media Summary / February 2021
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COX AUTOMOTIVE
CAR BUYER JOURNEY STUDY:
PANDEMIC EDITION
Media Summary / February 2021
Research & Market Intelligence
Study Background & Methodology
Background
• Cox Automotive has been researching the car buying journey for 11 years to
monitor key changes in consumer buying behaviors
Goal
• Inform strategic decisions for Cox Automotive and OEM & Dealer clients
In-Field Dates
2,010
3,016
• September 10 – September 22, 2020
New Buyers
Respondents
• Buyers/Lessees that took ownership between mid-March and September 2020
Recent Vehicle Buyers 1,006
Used Buyers
• Used the internet during the shopping/buying process
• Results are weighted to be representative of the buyer population
2
2020 Buyer Profile
Total New (A) Used (B) Total New (A) Used (B)
Male 51%Ç 62%BÇ 48%Ç Income Under $75K 42% 30%È 45%A
Female 49%È 38%È 52%AÈ Income $75K+ 58% 70%BÇ 55%
Avg Age 50 53 49
Have Children 51%Ç 47%Ç 53%A
Gen Z (1996-2011) 2% 1% 2%
Millennial (1982-1995) 24% 20% 25%A
Gen X (1965-1981) 38% 34% 39%A
2020 Pickup Truck Purchase 2020 Segment Market Share
Baby Boomer (1946-1964) 30% 37%B 29% (among Male Buyers) (Change from 2019)
Pre-Boomer (Pre-1946) 6% 9%B 5% 59% (+14)Ç Pickups +3%Ç
White/Caucasian 88% 89% 88%
African American or Black
SUVs +2% Ç
7% 4% 8% 2020 Pickup Truck Purchase
Hispanic 11%Ç 13%Ç 11%Ç (among Hispanic Buyers) Cars -4% È
Asian 3% 5%B 3% 11% (+7)Ç
*Ethnicity/Race & Income excludes prefer not to answer.
Letters indicate significant difference between New and Used at the 95% confidence interval.
Arrows indicate significant difference to prior year at the 95% confidence interval.
Source: Cox Automotive CarEdit Master
Buyer text styles
Journey - 2020 3
Our Consumer Segments
The Guarded The VIP The Informed The Experiencer The Straight Shooter
Inexperienced and View their car as a Prefers the finer things in Enthusiastic about cars Well-versed in vehicle
cautious about car reflection of their social life View car buying as buying process
shopping status Meticulous and maximize opportunity to learn Would never buy a car
Practical and sticks to Put limited effort in their effort in their car shopping they felt they couldn’t
budget car shopping afford
More likely to be More likely to be More likely to be Gen X More likely to be older More likely to be Gen X or
Millennials Millennials Most likely to be a Millennials Boomers
More likely to be single More likely to have kids Suburbanite Most likely to be Urbanite More likely to be a
Gender neutral More likely to be male More likely to be male More likely to be male Suburbanite
More likely to have $75K More likely to have >$75K Gender neutral
HHI < and >$75K HHI HHI HHI More likely to have
“In Market” in 2020
Buyer Segment
be…
The Straight Shooter Straight Shooters tend to
15% 30%
The Informed
• Likely Gen X or Boomer
25%27%
• Experienced buyers
The VIP
21% 23%
• Financially responsible
The Guarded
K
• Household income
In 2020, the Global Pandemic…
1) Shifted Purchase Motivation
2) Revolutionized the Buying Process
Research & Market Intelligence 6
Overall: Higher Satisfaction and a Shorter Purchase Process…
% of Buyers Satisfied Time Spent in Purchase Process
with Shopping Experience
74% Ç
72% Ç
13h 13mÈ 14h 53m
2020 2019
69% 71% Ç
66% 66%
62% 62% NEW BUYER USED BUYER
61%
60%
60%
60%
11h 11m È 13h 49m È
58%
59% 2020 2020
58%
2019 11h 56m 2019 15h 53m
Total New Used
A B
Drivers • Shifted Purchase Motivations
2016 2017 2018 2019 2020
of Change • Revolutionized Buying Process
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive CarEdit Master
Buyer text styles
Journey - 2020 7
…With Decisive Buyers Spending Less Time Shopping Online
Source:
Time Cox Researching
Spent Automotive Car &
Buyer JourneyOnline
Shopping Top Reasons
For Less Time Online
7h 14m È 9h 29m 1. Already knew what they wanted
“With our previous vehicle, we weren't sure
2020 2019
which one to go with, but with this purchase, I
knew exactly what I wanted in a vehicle and
NEW BUYER USED BUYER the make & model.”
5h 34m È 7h 44m È “There was less searching the internet for
makes, models, etc. We had decided ahead of
2020 2020
time what we wanted, if available.”
2019 6h 44m 2019 10h 25m
2. Attractive offer
3. Dealer reached out with offers
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Source: Cox Automotive CarEdit Master
Buyer text styles
Journey - 2020 8
In 2020, Purchase Motivation Driven More by “Want”. . .
% of Buyers Purchasing
Because They “Want” a Vehicle
(vs. “Need” a Vehicle) BC
57%
BC
New 51% BC 51% BC
A
48%
BC 49%
44%
Total 41%
B
38% 39%
36% 37% 37%
Used
C 34% 34%
32%
2016 2017 2018 2019 2020
+ Not Sure removed.
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020 9
. . . And Buyer Certainty Increased
% of Buyers Who Knew Exact Vehicle They
Wanted at Start of Shopping Process
Strategize a plan to maintain a comprehensive
35%
2018
online presence that includes party
(29%)*
sites
Intensify the urgency in offers and
Total
strategically feature messages around
New (A) 2018 Used (B) 2018
special45%
deals
Ç
and vehicle
(38% )*B
attributes
32%Ç (26%)* B
+ Not Sure removed.
*Not asked in 2019 survey.
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020 10More Shoppers Considered Both New and Used in 2020
% of Buyers Who Considered Both
New and Used Vehicles
Strategize a plan to maintain a comprehensive
57%
2019
online presence that includes party
(53%)
sites
Intensify the urgency in offers and
Total
strategically feature messages around
New (A) 2019 Used (B) 2019
special 30%
deals and vehicle
(32%)
attributes
66%AÇ (60%)
+ Not Sure removed.
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020 11In 2020, COVID-19 Safety Concerns Motivated Buyers to Grow Their Garage
Purchase Trigger Was
Usage of Transportation Mediums “Needed Additional
88% 88%
Vehicles in Household”
Pre-COVID During COVID
13% vs. 8%
56%
Used New
48%
29% 31% More than 1 in 4
24% Vehicle Shoppers
20%
15% 12% Who Plan to Add
Another Vehicle to
their Household Cited
Personal Vehicle Ride-Sharing Public Transportation Taxi Car-Sharing
They No Longer
% WHO SAY “VERY RISKY FOR COVID” Want to Use Other
2% 32% 56% 39% 34% Transportation*
Arrows indicates significant difference since last wave or compared to other measures.
Source: 2020 Cox Automotive COVID-19 Consumer Impact Study; Cox Automotive Car BuyerEdit Master
Journey text styles
Study - 2020 12New Buyers Were Enticed by Attractive Deals . . .
Top 5 Purchase Triggers
NEW BUYERS
1. Previous vehicle had high mileage
2. Wanted a vehicle with certain features
3. Promotional Offer – Attractive Deals
(17% Post-COVID vs. 11% Pre-COVID)
4. Wanted/Needed a different vehicle type
5. Lease expired
USED BUYERS
1. Previous vehicle had high mileage
2. Previous vehicle was unreliable or expensive to repair
3. Wanted/Needed a different vehicle type
4. Wanted a vehicle with certain features
5. Previous vehicle was damaged
Source: Cox Automotive Car Buyer Journey - 2020 13. . . While Trust in “The Deal” Improved
% of Buyers Who Trust the Dealership/ Trust the Dealer Gave the Best Deal Across Time+
Retailer Gave Me the Best Deal
71%Ç 68%
61% 61%
New
Sept 2018 to 61% 64%
64%
59%
Ç Aug 2019 55%
Timeframe Used
(57%)
Sept 2018 to Sept. 2019 to March to June to
Total Aug 2019 Mid-March 2020 May 2020 Sept. 2020
Heavy Incentives
New (A) Used (B) Timeframe
69%BÇ 63%Ç
TRUST DEALER Lessees New Purchasers CHEVROLET
TOYOTA
GAVE BEST DEAL… 69% (+7) 69% (+8)
64% (+8) 72% (+12) 70% (+2) 57% (-5) 73% (+11)
+ Not Sure removed.
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive CarEdit Master
Buyer text styles
Journey - 2020 14In 2020, the Global Pandemic…
1) Shifted Purchase Motivation
2) Revolutionized the Buying Process
Research & Market Intelligence 15Third-Party Sites Remain Popular Among Vehicle Buyers
Total Vehicle Buyers First And Last Website Visited
(Among Buyers Visiting Multiple Websites)
5% Ç 3%
5%
13% 6%
78%
9%
New Form Online Retailer
53% Google Search
Cox OEM Sites
56% Automotive
19% Third-Party Sites
of vehicle buyers visited at Cox
least 2 websites Automotive Dealership Sites+
23%
33%
17%
First Last
Third Party excludes Carvana.
+Dealership includes CarMax.
New Form Online Retailer is primarily Carvana.
*Data points exclude “Social Sites”, “Other Sites”, and “Not Sure” from analysis.
Arrows indicate significant differences from previous timeframe at the 95% confidence interval.
Source: Cox Automotive CarEdit Master
Buyer text styles
Journey - 2020 16In 2020, Dealership Visitation Dipped to an All-Time Low . . .
Number of Dealerships Visited
2.7
Total 2.4
Ç
2.3 2.3 Ç
2.0
2.6 2.5
2.4
2.2
Ç
New 2.0
Ç
2.8
Ç
2.4 2.4
Used 2.2 2.1
Ç
2016 2017 2018 2019 2020
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020 - 2020 17. . . While New Form Online Retailing Grew
Automotive Website Category Usage
79% 79% 78% 79%
76%
Third Party*
60% 61% 61%
Dealership 56%
52% È
OEM 29% 27%
25% 26% 24%
17%Ç
11% Ç
New Form 7% Ç
Online 3%
N/A
Retailer
2016 2017 2018 2019 2020
*Third Party excludes Carvana.
New Form Online Retailer is primarily Carvana.
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020 18Time Spent at Dealerships Reached a Record Low in 2020. . .
Total 2:55 2:58 “I interacted by phone with my
2:53 salesman and told him the type of
2:55 vehicle I was looking to buy. I was
Used
2:47 2:50 able to test drive immediately
New 2:53 2:50 without having to look at their
2:51 whole inventory on the lot.”
2:48
2:42 2:37 Ç
2:37 Ç
2:40 2:35
Ç “No price negotiation. We had
already paid and taken care of
most things online - just
needed to pick up the car!”
2016 2017 2018 2019 2020
+ Outliers Removed.
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive CarEdit Master
Buyer text styles
Journey - 2020 19. . . While Satisfaction Reached an All-Time High
% of Buyers Satisfied
with Dealership Experience
79% Ç
77% Ç
73% 76% Ç
72%
New 70%
A 69%
67%
Total 67% 64% 69%
Used 66%
B 61% 65%
60%
2016 2017 2018 2019 2020
+ Not Sure removed.
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020 20Dealership Experience Became More Streamlined . . . and Satisfying
% of Buyers Satisfied in 2020*
( ) = year-over-year change
Trust Dealer
How Long the Interactions The Price Interactions Selection of The Test Drive
Gave the
Process Took with Finance Paid with Sales Vehicles Process
Best Deal
Total 57% 69% 64% 74% 76% 69% 81%
(+10%)Ç (+9) Ç (+7) Ç (+7) Ç (+6) Ç (+6) Ç (+3) Ç
New (A) 62%B (+14) Ç 71% (+9) Ç 69%B (+8) Ç 74% (+6) Ç 78% (+5) Ç 70% (+1) 83% (+5) Ç
Used (B) 56% (+10) Ç 68% (+8) Ç 63% (+8) Ç 74% (+8) Ç 75% (+6) Ç 68% (+7) Ç 81% (+3)
*In-field dates: September 10-22, 2020
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Source: Cox Automotive CarEdit Master
Buyer text styles
Journey - 2020 21Heavy Digital Buyers were the Most Satisfied . . .
Overall Satisfaction with Shopping Experience
Light Digital Heavy Digital
Total
(0% - 20% of steps (51%+ of steps
entirely online) entirely online)
(A) (B)
72% 70% 77%A
(% ranking 8-9-10 on scale of 1-10)
Trends are similar across New and Used Buyers.
Letters indicate significant differences between DR categories at the 95% confidence interval.
Source: Cox Automotive Car Buyer Journey - 2020 Edit Master text styles 22. . . And Saved Time at the Dealership
AVERAGE TIME SPENT…
Heavy Light
Impact
Digital Buyer* Digital Buyer*
Browsing Vehicles/
Interacting with Sales 38min 45min - 6min
Test Drive 21min 26min - 5min
Negotiating Price/
Trade-in Offer 21min 32min - 11min
Discussing &
Signing Paperwork 33min 50min - 17min
Vehicle Delivery 14min 16min - 2min
*Heavy Digital Buyer = 50%+ activities completed online; Light Digital Buyer =Ultimately, Digital Retailing Drives Higher Loyalty and Trust, Particularly with New Vehicle Buyers
ATTRIBUTE New Used
Light (A) Heavy (B) Light (A) Heavy (B)
A
BRAND LOYALTY 70% 77% 58% 58%
A
DEALER LOYALTY 48% 63% 30% 28%
A
TRUST IN THE DEAL 65% 76% 63% 70%
+Not Sure excluded.
Letters indicate significant differences between DR categories at the 95% confidence interval.
Source: Cox Automotive CarEdit Master
Buyer text styles
Journey - 2020 24Key Takeaways: 2020 Car Buyer Journey: Pandemic Edition
Pandemic Shifted Purchase Motivations Pandemic Revolutionized Buying Process
Online Research Accelerated Online Retailers Became More
by Decisive Buyers Mainstream
Attractive Deals on New Vehicles Helped Streamlined Process Delivered
Trigger the Market Recovery Higher Buyer Satisfaction
Higher Digital Retailing Engagement
Used Purchases Were Spurred
Proved to Build Trust, Save Time and
by COVID-19 Impact
Impact Loyalty
Source: Cox Automotive CarEdit Master
Buyer text styles
Journey - 2020 25For more information, or to obtain a copy of the full 2020 Car Buyer Journey
Study: Pandemic Edition, contact:
Dara Hailes
Manager, Public Relations
Cox Automotive
dara.hailes@coxautoinc.com
Mark Schirmer
Director, Public Relations
Cox Automotive
mark.schirmer@coxautoinc.com
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