Topic: consumer sentiment
Before the global outbreak of COVID-19, consumer sentiment (as measured by the University of Michigan) in the US was trending upward. Last Friday, reporting for the final full week of April showed a drop of 17.3 points to 71.8. This is the largest monthly decline ever recorded. Buying Conditions declined across large durables with car buying intentions falling to lows last recorded in 2011 and home-buying intentions at their lowest since 1983.
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.
Today, our Director of Automotive Industry and Economic Analysis, George Augustaitis, and our Director of Consumer Insights, Madison Gross, team up to take a look at how consumer sentiment is trending among CarGurus shoppers.
We first mentioned the importance of consumer sentiment when we kicked off this COVID-19 series, and we’re going to dive in a little deeper with it. This is an important indicator for the industry because if a consumer isn’t confident in the economy, their job stability, or their ability to find a new job, they will be less likely to make a big-ticket purchase, such as a vehicle. When confidence is low many consumers will turn to the used vehicle market due to the lower price points, but others will wait until they feel more positive about their job security and the economy.
Because consumer confidence and consumer sentiment numbers don’t fully reflect yet the impact that the COVID-19 pandemic is having on the economy, we’re running two polls on cargurus.com. These polls allow us to track and trend how CarGurus shoppers currently feel about the economy and their sentiment about its future.