At this moment in time, we need our cars a little less than we used to due to the impacts of the COVID-19 pandemic. But we’re not going to be away from the open road forever, and we’re starting to wonder how the average person will buy cars in a post-pandemic world. A guess? Online.

While vehicle sales are down, online activity seems to indicate that people remain interested in car purchases. The potential for completely online sales is new territory for the auto world, which has historically relied on showrooms to drive sales. But this fleeting moment in time might present an opportunity for the industry to explore a business model more geared toward e-commerce.

We surveyed 1,007 people across the country who either owned a car or were looking to buy one in the near future. We explored the pros and cons of buying online, how the coronavirus has impacted their car purchasing decisions, and some of the ways online car retailers may be able to help their customers. If you’re curious about what the future of online car shopping may look like, keep scrolling.

 

Quarantine Purchasing

Businesses of all kinds, including car dealerships, have had to temporarily close due to the impacts of the COVID-19 pandemic. For those looking to buy a car in the next year, this presents an issue.

The coronavirus has certainly stoked the flame of online shopping, and this extends to the auto industry. With brick and mortar shops closed and consumers often hoping to avoid physical contact, digital options from the comfort of home have become appealing, if not mandatory. In fact, 45.3% of our respondents said they were much more likely to buy a car online now than they were before the pandemic began.

Given the option, 79% of people said they preferred to make a car purchase in person versus online, but a modest 21% rated online as their avenue of choice – a significant chunk considering the tradition of in-person sales within the industry.

COVID-19 also provided some buying opportunities that did not go unnoticed by the participants of our study. Sixty-nine percent of those looking to buy a car felt the coronavirus would help them get a better deal, especially with many dealerships offering discounts and special financing rates. About 60% of those who bought a car prior to the pandemic felt their deal would have been better had they purchased during the health crisis. A quarter were even more motivated to buy a car due to the impacts of the coronavirus.

 

Key Car Factors for Consideration

Of course shoppers had their reasons for holding onto traditional methods of buying cars, and those are what we dug into next. We wanted to know the most important aspects of the buying process that shoppers considered when they made a purchase.

If there’s any explanation for the desire of many to buy a car in-person, it’s the ability to see the car and test-drive it. Ninety-four percent and 91.3% said these were the absolute most important factors for a car purchase, respectively. Specifically, people wanted to see the condition of the car in person before handing over payment. Relatively less important but still heavily considered was the ability to negotiate the price in person. For 78.4% of people, this was actually deemed an important factor in a car purchase. Financial experts do suggest that online negotiations are typically not as effective as those in person.

Fortunately for those who do prefer to shop online, these brick-and-mortar experiences (like test drives and negotiations) do have their virtual adaptations that will only improve alongside technology. For instance, some tech firms have already developed preliminary virtual test drives, and improved return and refund policies could resolve the desire to check a car’s condition in person.

 

Benefits and Concerns for Digital Car Purchases

A pros and cons list is a classic mechanism for reaching a decision for a reason. We explored which elements of fully online car buying might entice potential buyers and the potential concerns that would give them pause. Respondents were allowed to choose three benefits and three concerns that spoke to them individually.

Saving time was the No. 1 perceived benefit of buying a car online. People reported spending an average of 4.1 hours in the dealership when they made a car purchase there – offering the potential for significant time savings if the process was streamlined online. We also found that 24% actually felt they could do a better job of negotiating online.

The test drive proved all-important on the con side of things, though, with 63% rating it as cause for concern when buying online. Considering that the average U.S. commute is 26.1 minutes one way, it’s important that people are comfortable in the car they’re driving, lending additional importance to the test drive.

 

Part of the Process

Buying a car online is still not the most comfortable thing for many, which is understandable given that it has been relatively slow to catch on. Our study showed that 28.6% of people considered themselves comfortable with buying a car online.

That said, the future for online car shopping is looking hopeful. Even in these preliminary stages, 32% already think they would enjoy the process of car buying online more than in-person. And another 39.4% were unsure how it would make them feel just yet. As the process becomes more mainstream, it’s possible that more people will be converted to this new avenue of automobile purchasing.

 

Your Future Vehicles

In such an unprecedented moment in history such as this, it’s often difficult to know how people will react to new innovations, but the signs we’re seeing among car owners and potential buyers are largely positive. Respondents were often open to buying cars online, even with supportive technology being so preliminary.

As the online auto experts, Leith Cars was one of the first to start implementing these new technologies to make the online car-buying process as easy and comfortable as possible. Most of our cars are currently available for purchase online. Our team of experts is still on hand to answer your most pressing questions, and thousands of cars and price points are available 24/7 for you to browse and perhaps bring home! So head to Leith Cars today to start imagining what drives your future.

 

Methodology

We surveyed 1,007 people about their feelings on purchasing a car through an entirely online process. People had to report currently owning a car or that they were looking to buy a car in the next year to qualify.

Respondents were 55.7% men and 44.3% women. The average age of respondents was 39.2 with a standard deviation of 12.8.

All respondents were asked whether, due to the impacts of COVID-19, they would be more or less likely to purchase a vehicle through an entirely online process. They were given the following scale of options:

• Much less likely
• Less likely
• Slightly less likely
• Neither more nor less likely
• Slightly more likely
• More likely
• Much more likely

In our final visualization of the data, we condensed these options into three groups: more likely, neither more nor less likely, and less likely.

All respondents were asked how important different aspects of the car-buying process were to them. They were given the following scale of answer options:

• Extremely unimportant
• Unimportant
• Slightly unimportant
• Neither important nor unimportant
• Slightly important
• Important
• Extremely important

In our final visualization of the data we condensed these into three groups: unimportant, neutral, and important.

People were asked to identify the key benefits and concerns they see with buying a car online. They were instructed to choose up to three options for both benefits and concerns. Therefore, percentages will not add to 100.

Respondents with experience buying from dealerships, rather than private sellers, were asked about the amount of time they spent at the dealership when buying a car. The average number of hours people reported was calculated to exclude outliers. This was done by finding the initial average and standard deviation and multiplying the latter by three. That was then added to the initial average. Any data point above that sum was then excluded.

All respondents were asked to report how comfortable they would be buying a car through a completely online process. They were given the following options:

• Completely uncomfortable
• Uncomfortable
• Slightly uncomfortable
• Neither comfortable nor uncomfortable
• Slightly comfortable
• Comfortable
• Completely comfortable

In our final data visualization, these were condensed to the following groups: uncomfortable, neither uncomfortable nor comfortable, and comfortable.

When asked about how buying a car online would impact their enjoyment of the buying process, all respondents were given the following options:

• I would enjoy it much less
• I would enjoy it less
• I would enjoy it neither more nor less
• I would enjoy it more
• I would enjoy it much more

In our final visualization of the data, these options were grouped into the following broad groups: I would enjoy it less, I would enjoy it neither less nor more, and I would enjoy it more.

 

Limitations

The data we are presenting rely on self-report. There are many issues with self-reported data. These issues include, but are not limited to, selective memory, telescoping, attribution, and exaggeration.

No statistical testing was performed, so the claims listed above are based on means alone. As such, this content is purely exploratory, and future research should approach this topic in a more rigorous way.

 

Fair Use Statement

Buying a car can be a big undertaking at any time and especially so during a global pandemic. While buying a car online can pose its own set of challenges, it can help people get into the vehicle they need to go about their daily life. If someone you know would benefit from the information in this project, you may share this with them for any noncommercial reuse. We ask that you link back here so people can view the entire project and its methodology. This also gives credit to the contributors who make this work possible.

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