Brantley Kendall 16 May 2022 3 years ago Since Covid spread, consumer car buying trends have radically changed how car dealerships sell their vehicles. So, what do these growing car shopping trends mean for your used car dealership? As people stopped using mass transportation and new car manufacturing ground to a halt, car dealerships began digitizing their used car businesses. This caused significant shifts in the market, particularly in used car sales. But what are these new car buying trends, and how badly do you need to adapt to them as a used car dealership? Let’s gear up to know about them. Nine buying trends you may need to adapt During the Covid pandemic, public transportation saw a considerable decline, from flying to riding. Many consumers wished to extend the private solace of their homes and discovered newfound comfort in owning a car. As statistics show, the usage of private cars doubled while reliance on ride-hailing services and public transportation fell in the wake of the pandemic, ushering in new consumer car buying trends and forcing dealers to adapt or fall to obscurity. Below, we highlight nine of these trends to be aware of: Increasing trend of buying cars online In Covid, private car ownership was at its peak. However, since showrooms shut down, car dealerships found it fruitful to shift their bases online as most customers prioritized online purchases over physical ones. This trend is still growing as the global car buying statistics state that online car purchases will reach $722.79 billion by 2030. According to Autotrader, 2/3rd of online users reported that they are 100% more likely to purchase vehicles online today than pre-Covid. Before the pandemic, only 4.2% of car sales were completed online; however, after the pandemic, that number shot up to 30%. Nowadays, even as much as 38% of consumers are more likely to purchase a car online. As this is one of the most prevalent online car shopping trends, your dealership stands to gain a lot if you decide to tap into this vast market. Opening your business to the online car-buying process will allow you to communicate with this broad pool of clients, answer their queries, and build your brand while closing deals. Rising interest in electric vehicles Covid saw the demand for gas quickly outpacing the supply, meaning per-gallon prices soared to all-time high levels. This pushed a significant number of car buyers to buy electric vehicles instead of standard combustion engine models. Between 2020 and 2021, EV sales increased by 85% in one year. In addition, according to Autotrends, the electric vehicle market is projected to grow with a CAGR of 24.3% in 2028, valued at $1,318.22 billion in 2028. While many car dealers are still relying on gas and diesel-powered vehicles, these growing car buying trends suggest that now is the most fruitful time to include electric cars in your inventory. As of 2020, the Pew Research Center reported that the number of electric vehicles registered in the US has more than tripled since 2016. Moreover, the Biden Administration has introduced legislation to incentivize the purchase of electric vehicles, and a survey has shown that about 66% of people are likely to buy electric cars as a direct result. This factor could be a groundbreaking deal for your car dealership if you choose to include EVs in your inventory. Consumers are pre-ordering During the pandemic, shortages of chips and new car supplies led to reduced inventories. Where the manufacturing units were closing down, car dealerships were thriving, and their sales were increasing. The secret behind this considerable profit was their selling technique and made-to-order deals. They offered consumers the choice of pre-ordering because it allowed them to get custom cars without going through the search process. Another factor driving this car shopping trend was the narrowing price gap between new and used cars. Many opted to wait for a car with their desired trims and features, finding it comparable in price to a used vehicle. This shift in consumer car buying trends highlights the importance of offering pre-order options to stay competitive and meet evolving demands. No-interest financing deals Covid placed enormous pressure on the average American’s disposable income. Luxury and frivolous purchases declined, and shoppers started looking at the best deals possible when buying a car. As such, people began eyeing up 0%-interest deals. However, that was not the only money-related car shopping trend. Buyers also started showing interest in flexible payment and even penalty-free payment deferments. Your car dealership can adapt to this trend by providing attractive financing deals to auto users. It will showcase that you care for your customers, increasing their loyalty to your brand. At-home test drives and vehicle delivery While virtual test drive videos were reasonably popular even before the pandemic, the trend grew tremendously once lockdowns hit. Let’s be honest: a virtual test drive observed from your home before purchasing a car is much better than no test drive at all. Moreover, the contactless delivery trend in Covid that many restaurants and grocery stores adopted grew on the car dealers as well. Businesses began offering vehicle delivery services and improvised, contactless test drives. Some would deliver the car to the customer’s home and wait while they test it, while others suggested the convenience of having a vehicle to test drive for 24 hours and a 7-day money-back guarantee. According to a Google survey, car purchasers preferred an at-home test drive during Covid, while a CarGurus study revealed that 32% of consumers used them, 60% preferred purchasing cars from home, and 30% wanted doorstep delivery. This car shopping trend remains strong, making it essential for your used dealership to offer these services. Alongside physical test drives, virtual test drives, review videos, and digital showroom tours can engage more buyers and increase sales potential. High demand for SUVs Another car buying trend that you simply can’t not notice concerns SUVs. While compact car sales have been slowing down in the US for the past years, Covid shifted consumer preferences towards sport utility vehicles. This might be due to the SUVs providing more security and space, higher comfort, and similar pricing to competing Sedans. Therefore, it might be a smart move to take advantage of this consumer car buying trend by expanding your inventory. Consumers are choosing to repair their old vehicles Before the pandemic, 61% of consumers chose to repair their old cars, but after COVID-19, that number rose to 70%. Car buying slowed considerably during the pandemic, and closed service workshops, inventory shortages, increased rates, and longer waiting times all contributed to this. This trend is still very much alive. Even though exposure to Covid may not be everyone’s number one concern anymore, people realized that you can simply save some money, and they wanted in on it. If your car dealership has a garage service, you can offer an at-home repair service. You could also exceed customer expectations by picking up their car from home, repairing it, and then dropping it off at their home. Live-streaming car inventories The trend of live-streaming mega-events was on the rise during the pandemic. Notable car manufacturers postponed lavish events and replaced them with live streams of their vehicle launches. While most car dealerships have yet to adopt this trend, it could be a meaningful way to increase viewership and expand your prospective customer base. If you start live-streaming the notable items in your car inventory, the more views you get, the higher your chances of meaningfully increasing your business’s outreach. Rise of Unusual Car Features The pandemic reshaped lifestyles, with many people working from home and avoiding public transportation. This shift influenced car buying trends, as vehicles became tools for both workspaces and relaxation. Studies found people spend over 40 minutes in their cars for relaxation purposes, highlighting the growing demand for innovative features. Automakers responded by introducing health, wellness, and well-being (HWW) features such as multimedia apps for relaxation, health monitoring systems, and air purifiers. Stocking vehicles with these features can be a game-changer for car dealerships. As online car shopping trends grow, smart cars with HWW capabilities will appeal to consumers seeking more than just transportation. Conclusion The pandemic reshaped business models and consumer behavior, likely for the long term. To thrive, your used car dealership must adapt to changing car buying trends and meet new consumer expectations. The key strategies include embracing the growing demand for at-home delivery and test drives. While trends like adding electric vehicles to your inventory are optional, providing convenience while meeting shifting preferences is crucial. Partnering with an auto transport company like SAKAEM Logistics can also streamline vehicle shipping and help you effectively calculate the cost to ship a car. You may also read: 5 Smart Car Sales Lead Generation Ideas Brantley Kendall Share this: