SANTA MONICA, Calif., Oct. 12, 2020 (GLOBE NEWSWIRE) — TrueCar, Inc., essentially the most environment friendly and clear on-line vacation spot to discover a automotive, launched the fifth wave of its examine into the impression of the pandemic on car buying and car customers’ wants, six months into the COVID-19 pandemic.
“At the six-month marker, it’s encouraging to see that fewer shoppers now report being less likely to purchase a vehicle due to the pandemic than at any point during our research series,” mentioned Wendy McMullin, Head of Research at TrueCar. “Shopper concerns over vehicle affordability stood out, however, and we expect that trend to continue while inventory remains limited.”
In TrueCar and ALG’s newest automotive business forecast, common new automotive transaction costs are projected to have elevated by 3.5% year-over-year for September 2020 reaching $36,541 whereas automaker incentive spending is projected to be up 5.3% year-over-year for September 2020 reaching $4,001.
“As affordability concerns rise and new car inventory shortages continue, we can expect to see more consumers gravitating toward the used market where strong sales the past three to five years as well as high leasing adoption have resulted in a strong supply of late model used vehicles” mentioned Nick Woolard, Director, OEM Analytics. “We also foresee new car shoppers expanding their consideration set to brands with lower cost entry level models in the popular utility and CUV segments to help drive down vehicle costs.”
Highlights from the Study Include: Study fielded 9/23/20 with a inhabitants of 1,200 (U.S. Covid-19 circumstances 7.1M, U.S. COVID-19 deaths 206,000)
- Shoppers’ considerations about being uncovered to COVID-19 throughout their buying course of fell to the bottom level since March, when widespread shutdowns started. While the 50% who state they’re very or extraordinarily involved about being uncovered to COVID-19 continues to be a sizeable quantity, it’s down considerably from 56% in July and 62% in April.
- Although concern over virus publicity is ebbing, customers nonetheless need a complete on-line buying expertise; 41% state they might be inspired to work with a supplier that enables them to configure their deal on-line, and extra customers than ever state they’re doing extra of their buying on-line (35%), and visiting fewer dealerships (33%).
- Two-thirds (68%) of customers say they might be extra prone to store with a dealership providing on-line funds, trade-in and financing.
- Vehicle affordability considerations are at their highest ranges throughout 5 waves of the examine; 51% state they’re very or extraordinarily involved about having the ability to afford the car they plan on buying or leasing.
- Consumer need for decrease rates of interest and incentives as an element to encourage car buying are at their highest level (61%), throughout examine waves.
- 29% of customers surveyed say stock availability is an element that may deter a purchase order.
- Fewer customers than at another level in the course of the examine say the pandemic makes them much less prone to buy, now 20% versus a peak of 36% in April.
- Since wave 4 of the survey was fielded two months in the past, customers’ want for a car has held; with 82% of customers stating their want for a car stays the identical or has elevated, regardless of the pandemic.
“Fewer car shoppers are now expressing concern over being exposed or exposing others in their vehicle shopping than at any other point in our COVID-19 research series,” added McMullin. “Despite this, consumers’ desire to do more online and visit fewer dealerships is at its highest point now, hinting at a longer-term trend beyond the pandemic.”
Graphis accompanying this announcement can be found at:
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About TrueCar
TrueCar is a number one automotive digital market that allows automotive patrons to hook up with our nationwide community of Certified Dealers. We are constructing the business’s most personalised and environment friendly automotive shopping for expertise as we search to carry extra of the buying course of on-line. Consumers who go to our market will discover a suite of auto discovery instruments, worth rankings and market context on new and used automobiles – all with a transparent view of what is an amazing deal. When they’re prepared, TrueCar will allow them to attach with an area Certified Dealer who shares in our perception that fact, transparency and equity are the muse of an amazing automotive shopping for expertise. As a part of our market, TrueCar powers car-buying packages for over 250 main manufacturers, together with AARP, Sam’s Club, and American Express. Nearly half of all new-car patrons interact with TrueCar powered websites, the place they purchase smarter and drive happier. TrueCar is headquartered in Santa Monica, California, with places of work in Austin, Texas and Boston, Massachusetts.
For extra info, please go to www.truecar.com, and observe us on Facebook or Twitter. TrueCar media line: +1-844-469-8442 (US toll-free) | Email: [email protected]
