Automotive Retail Statistics


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Automotive Retail Statistics 2023: Facts about Automotive Retail outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Automotive Retail, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

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Top Automotive Retail Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 47 Automotive Retail Statistics on this page 🙂

Automotive Retail “Latest” Statistics

  • According to a DMEautomotive survey, customers who use branded apps are 73% more likely to buy from the dealership and schedule 25% more service appointments after doing so than those who don’t use apps.[1]
  • The digital ecosystem is anticipated to someday produce more money than the hardware of the automobile itself, according to 85% of automotive executives.[2]
  • 34% of new car purchasers who use social media for automotive information share a photo of their new car on a social network, according to J.D. Power 2016 New Autoshopper Study.[1]
  • More than half (53%) of automotive internet shoppers use a mobile device in their quest for automotive information.[1]
  • According to Brandwatch, quality was the most important factor for brands in the auto industry, with 30% of the vote.[3]

Automotive Retail “Other” Statistics

  • Looking forward to 2030, it is predicted that data driven and on demand mobility services would contribute up to 30% of the industry’s total new income, according to Microsoft Industry Blogs.[2]
  • As long as there was a warranty, 42% of respondents were okay with purchasing a vehicle without giving it a test drive, according to the 2016 Beepi Consumer Automotive Index.[1]
  • According to Autotrader, 54% of consumers would buy from a dealership that offers their preferred experience, even if it didn’t have the lowest price.[1]
  • 61% of Americans believe they are being taken advantage of when shopping for cars at dealerships, and 87% of Americans detest something about it.[1]
  • According to a survey by Arthur D. Little, the average response time for OEMs is 24 hours, compared to 92 hours for dealers.[1]
  • Among automotive internet shoppers who use social media, only 13% indicate that the information posted on social media sites influenced their purchase decision, and only 2% say a social site was the “most useful site” they visited.[1]
  • According to a poll by Autotrader.com, 72% of younger millennials said having a vehicle is vital to their social life, and cars play a significant part in helping millennials meet their urge to remain connected.[1]
  • 24% of Gen X-ers say they would rather endure a root canal than negotiate a vehicle purchase.[1]
  • 56% of millennials stating they’d rather clean their houses than bargain with a vehicle salesperson.[1]
  • According to Autotrader, more than half of the three hours spent at the dealer on average throughout the buying process is used for negotiations or paperwork, leading to a 56% satisfaction percentage for the procedure.[1]
  • A survey commissioned by Cars.com found that 7% spent more money than non app users when buying a car.[1]
  • When asked to rate their satisfaction on a scale of 1-10, 81% of car buyers gave the test-driving process an 8-10 rating, according to Autotrader.[1]
  • Total used-vehicle sales in November are estimated to be near 2.7 million units, down 4.5% from November 2021.[4]
  • 28% of respondents indicated they had misgivings about how tidy other people’s automobiles are, according to Cars.com.[3]
  • 61% of all car buyers live in suburban areas, with 63% of new buyers and 61% of used buyers being in suburban areas.[3]
  • 71% of those without cars want to get a gasoline or diesel automobile, 6% want to buy an EV, while 23% are interested in hybrid vehicles.[3]
  • According to Cars.com, 77% provide online trade in estimates, 72% provide chat discussions online, 60% provide certain forms of digital finance and commerce, while 58% provide home delivery.[3]
  • 86% of recent luxury purchasers agree that they thoroughly investigate and contrast automobiles before making a final purchasing choice.[3]
  • Luxury brands delivered 2.2 million vehicles in 2021, accounting for 14.7% of total U.S. light-vehicle sales.[3]
  • When looking for a vehicle, consumers visit an average of 4.2 websites, with 81% visiting at least 2 websites.[3]
  • According to CarGurus, compared to 52% of other new vehicle purchasers, 66% of luxury buyers said they depend on peers’ judgments.[3]
  • Gen X makes up 38% of all car buyers, followed by Baby Boomers at 32% and Millennials at 23%.[3]
  • According to projections by BCG, 50% of consumers would delay purchases in 2022 and 40% will convert to secondhand automobiles.[3]
  • Over the next ten years, the worldwide EV market is expected to increase at a compound annual growth rate of 29%, as stated by Deloitte.[3]
  • Buyers most often use third party websites to investigate car price (64%), compare automobiles (62%), and read expert user ratings (62%).[3]
  • With a 1.5% year-over-year rise in average transaction prices, trucks and SUVs gained market share.[3]
  • According to IHS Market, US new car sales in 2022 will rise to 15.47 million vehicles from an estimated 15.07 million in 2021.[3]
  • Up to March 2021, Toyota Group is on top of the market with a 12.6% market share and 2.3 million sales YTD (+7.9%).[3]
  • According to CoxAuto, used car buyers are less satisfied with the overall shopping experience, with 62% satisfied with new car shopping and 60% satisfied with used car shopping.[3]
  • Sales had already started to cool in 2006 and 2007 (declines of -2.27% and 3.45% respectively) when the mother of all financial crisis’ devastated the industry in terms of new car sales.[5]
  • For a better shopping experience, 54% of automobile purchasers would be willing to spend extra.[6]
  • 57% of people who call from a search ad call extension to inquire about cars do so to make an appointment.[6]
  • 60% of customers who do mobile car searches would contact the dealership using a call extension.[6]
  • 61% of people looking for new and used cars call the dealership after doing some research online.[6]
  • Over the last two years, YouTube’s test drive videos have seen a greater than 65% increase in view time.[6]
  • U.S new vehicle sales of 1,138,169 units for the month of November 2022 represented a decrease of 4.0% from October 2022, and an increase of 11.3% from a year ago in November 2021 when supply chain restricted productions.[7]
  • Dealership parts and service profit contributions are growing, increasing from 45% of overall gross earnings in 2015 to over 49% in 2018.[8]
  • Average dealership operating profits plunged from 8.9% in 2015 to 1.7% in the first half of 2018, while gross profits fell from 3.3% to 2.4% over the same period.[8]
  • The used automobile industry is presently dominated by bigger companies in a number of subsegments, with franchise dealers accounting for around 38% of the market.[8]
  • As internet penetration rises from around 6% to as much as half of all transactions, the independent used car profit pool, which is now at $16 billion, is expected to decrease by an estimated 9% by 2030.[8]
  • In 2030, sales of new cars might account for up to 13%.[8]
  • Over the next 10 years, it is anticipated that U.S franchise dealer new vehicle profit pools will fall by around 9%.[8]

Also Read

How Useful is Automotive Retail

One of the key arguments in favor of automotive retail is the personalized touch it offers to customers. Walking into a dealership allows potential buyers to see and feel the cars in person, test drive them, and talk to knowledgeable salespeople who can answer their questions and provide guidance. This hands-on experience is difficult to replicate online and can make a significant difference in the decision-making process for many buyers.

In addition, car dealerships provide a range of services beyond just selling cars. They offer maintenance and repair services, warranties, financing options, and trade-in opportunities. These services are essential for many consumers, especially those who may not feel comfortable navigating the complexities of buying a car on their own.

Moreover, car dealerships play a crucial role in local economies by providing jobs, paying taxes, and contributing to the overall vibrancy of communities. The presence of dealerships can also serve as a draw for other businesses, such as restaurants or retail stores, which can benefit from the foot traffic generated by automotive retail.

On the other hand, some argue that car dealerships are outdated and unnecessary in today’s world of online shopping and virtual showrooms. With the rise of e-commerce platforms and direct-to-consumer sales models, many consumers prefer to research and purchase cars entirely online, bypassing the traditional dealership experience altogether.

Another criticism of traditional car dealerships is their reputation for high-pressure sales tactics and lack of transparency. Many consumers are wary of stepping foot in a dealership, fearing they will be pushed into buying a car they don’t want or be taken advantage of in the negotiating process. This negative perception has only been exacerbated by high-profile cases of dishonest or unethical behavior by some dealerships.

Despite these criticisms, there is no denying the enduring value of the automotive retail industry. While the way in which consumers buy cars may be evolving, there will always be a need for a physical space where buyers can see and test drive cars, speak to experts, and receive personalized recommendations. The future of automotive retail may look different from what we are used to, with a greater emphasis on digital tools and online transactions, but the fundamental role of the dealership in the car buying process is likely here to stay. Ultimately, finding the right balance between the convenience of online shopping and the personalized experience of visiting a dealership will be key to the continued success and usefulness of automotive retail.

Reference

  1. v12data – https://v12data.com/blog/25-amazing-statistics-on-how-consumers-shop-for-cars/
  2. microsoft – https://cloudblogs.microsoft.com/industry-blog/automotive/2021/06/29/how-data-is-transforming-the-automotive-retail-experience/
  3. findthebestcarprice – https://www.findthebestcarprice.com/car-buying-statistics-trends/
  4. coxautoinc – https://www.coxautoinc.com/market-insights/estimated-monthly-used-vehicle-saar-and-volume/
  5. goodcarbadcar – https://www.goodcarbadcar.net/usa-auto-industry-total-sales-figures/
  6. invoca – https://www.invoca.com/blog/automotive-marketing-statistics
  7. marklines – https://www.marklines.com/en/statistics/flash_sales/automotive-sales-in-usa-by-month
  8. mckinsey – https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/as-dramatic-disruption-comes-to-automotive-showrooms-proactive-dealers-can-benefit-greatly

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