Topic: CarGurus data
The majority of consumers in the US have seen their life change in some way, shape, or form because of COVID-19. One example of this is people’s driving habits. Daily commutes have changed drastically for many and frequent trips to the store, gym, school, childcare facility, etc. are no longer the norm. Though many, if not most, will eventually return to their previous driving habits, the fact that people are staying home more and driving less has the potential to impact buying activity.
With this in mind, we wondered how such a significant shift in consumer behavior might influence shoppers’ search interest in vehicles this year. To answer this question, we analyzed used vehicle searches on CarGurus for the first half of 2020 and compared it to the used vehicle leads we saw for the same criteria in 2019.
As a follow-up to the Consumer Sentiment Study we presented in April, CarGurus surveyed an additional 779 shoppers in June to see how their feelings toward car shopping have changed during the pandemic. Overall, the study shows that despite lingering near-term delays in car purchases, most sales are not expected to be lost in the long term. Here are the key takeaways for dealers – or you can read the full report here.
Since the last week of March, most people in America (if not the world) have seen their life change in some way, shape, or form because of COVID. One such change has been consumer’s driving habits. For many, the daily commute has been eliminated along with frequent trips to the store, gym, school, childcare facility, etc. While many, if not most, will eventually return to their previous driving habits, the current decrease in driving and increase in staying home has the potential to impact shopping activity. In particular, I wondered about how such a significant shift in consumer behavior might be influencing shoppers’ search behavior for vehicles.
To answer this question, I looked at new vehicle search volume on CarGurus for the first half of 2020 and compared it to the search volume we saw for the same criteria in 2019.
Pent-up demand, stimulus checks, and the hope that we are past wave one of COVID-19 has spurred the recovery of US leads on CarGurus. Total lead volume is now above early-February levels.
However, not every sector of the vehicle market has seen the same recovery. For example, we know that demand for higher-priced vehicles has returned quicker than lower-priced vehicles, but each vehicle segment has behaved differently. Most notably, the electric vehicle (EV) and plug-in hybrid electric vehicle (PHEV) segments.
While I personally think we’re weeks, if not months, away from knowing exactly how long the economy will take to fully rebound, consumers are coming back—and they’re submitting leads. In fact, U.S. leads* on CarGurus are almost at the same level they were at the start of February. Yes, February generally represents a smaller share of units sold than March and April, but the fact that consumer interest is trending up this early is a positive sign.
While total U.S. lead volume on CarGurus has nearly returned to the same level as February, lead volume varies by price bucket, and I’ll dig deeper into this below.
To say COVID-19 has disrupted the auto industry is an understatement. The global pandemic is continuing to sweep the world, forcing car shoppers to re-evaluate their purchase plans and change their shopping behaviors. Despite the constantly evolving situation, dealers who are able to adapt still have the opportunity to bring in business and stay connected to their customers.
Here are five key takeaways from our soon-to-be-released global COVID-19 Sentiment Study that you can use to adapt your business strategy to today’s new normal.
As new-car margins become more difficult, dealers are looking to used vehicles to fill the gap. With this comes an acquisition challenge that both small and large dealerships are facing. Jeremy Sacco, senior strategist at CarGurus, recently shared with WardsAuto dealers’ outlook for 2020 from the inaugural CarGurus One Voice Report.
Read the full article on WardsAuto: Car Dealers Cite Need to Price Right From the Get-Go
Acquiring inventory is fundamental to car selling, but it’s becoming a common challenge year after year. In our recent One Voice Report, 76.3% of used car dealers reported that they found it more difficult to source the inventory they wanted in 2019 compared to 2018. Almost a third (32.8%) rated it as very or extremely difficult. Built around a survey of nearly 1,000 independent and franchise car dealers and our annual Dealer Council meeting, the inaugural CarGurus One Voice Report examines the inventory challenge and how dealers are coping.
It’s the most expensive 30-second advertising spot on television. For Hyundai’s luxury vehicle brand, Genesis, the cost was well worth it. CarGurus’ Director of Automotive Industry and Economic Analysis, George Augustaitis, spoke to Adweek about Genesis’ brand lift on CarGurus immediately after their commercial aired during the big game. Check out the full Adweek article to read more.
Millennials aren’t “just kids” anymore. They have true buying power and are quickly becoming a large percentage of the total car-buyer audience. Millennials are expected to represent 40% of all new-vehicle purchases next year. Ali Chapman, customer insights analyst at CarGurus, recently spoke with WardsAuto about the latest data on Millennial car buyers from our 2019 Buyer Insights Report.
Read the full article on WardsAuto: A Generation That Allegedly Hated Vehicles Now Buys Them Aplenty