The main segments of CarGurus most recent COVID-19 sentiment study came in groups of three, as analysts spelled out short-term and long-term trends as well as recommendations for dealerships.
CarGurus highlighted that this research project is the latest iteration in a series of previous studies that were run in April, June and November of last year, exploring topics such as digital retail, vehicle inventory and shared mobility.
“Our most recent COVID-19 consumer sentiment study has shown that the pandemic has reshaped transportation and car-shopping for the foreseeable future,” said Madison Gross, director of consumer insights at CarGurus, which is presenting the Women in Retail honorees who will be given their accolades at Used Car Week at the Red Rock Resort in Las Vegas.
“As consumers continue to steer clear of shared mobility and turn to purchasing their own vehicle instead, they’re faced with rising prices due to the current inventory constraints,” Gross continued in a news release.
“At the same time, shoppers have gotten used to the ease of digital retail, with more people hoping to complete part of the car-buying process at home,” she went on to say.
First, let’s go over the short-term trends CarGurus identified in the study, including:
• Demand has rebounded following dips early in the pandemic: Due to decreased spending and an inflow of stimulus money, CarGurus found that buying confidence has recovered. Major life changes like moving to a new house (29%), getting a new job (22%), and working from home (12%) have also made people more interested in buying a car this year.
• The inventory shortage is hitting buyers: The majority (58%) of shoppers are aware of high vehicle prices as a result of low inventory, an increase from 26% in November.
• In-person shopping returns cautiously: Consumers are much more comfortable shopping in-store this year, but they are still wanting a safe experience with the majority (51%) expecting dealers to continue wearing masks.
Next, CarGurus delved into a trio of long-term trends found through the new research, including:
• Shared mobility continues to decline: During the pandemic, demand for shared transportation halted, and analysts discovered consumers aren’t eager to return. Only half (54%) of consumers who previously used ride-share services expect to return to their pre-pandemic activity in the next year, and few more (59%) plan to in the long term.
• Shoppers are more interested in digital retail: Consumers are more interested than ever in shopping for cars online. CarGurus indicated that 60% of respondents say they’d prefer to do more of the vehicle-buying process at home for their next vehicle purchase.
• Consumers’ expectations will stay high: With dealers having adapted to the pandemic through offering various contactless services, consumers hope that these changes will stay. Shoppers are most interested in pre-scheduled dealership appointments (46%), solo test drives (42%), test drive at home (32%), and at-home delivery (30%).
Now those recommendations for dealerships. Here they are from CarGurus:
1. Prioritize digital retail in your sales process.
With most shoppers wanting to do more of the process online, analysts pointed out that it’s important that dealers are equipped to handle these preferences. They suggested that stores implement digital retail products that allow shoppers to take the transaction as far as they want — and make sure your staff is trained to handle this new online business.
2. Test new ways of acquiring inventory.
CarGurus noted that dealers can’t rely on auctions to keep lots stocked. Analysts suggested that managers consider investing in technology that allows them to acquire in-demand vehicles more efficiently in their local market, and perfect your trade-in process to keep a supply of used vehicles up on the lot.
3. Continue to provide a safe, convenient buying process.
CarGurus emphasized that the dealership experience is crucial to winning more sales, and many shoppers expect contactless services to stick around long term. Analysts said dealerships should continue to offer services like appointments, solo and at home test drives and at-home delivery to ensure consumers feel comfortable shopping at your store.
Source : AutoFinanceNews
