CarGurus Survey Reveals How Covid Changed Car Buyers’ Behaviors

The Covid-19 pandemic created a sort of pushmepullyou effect for auto sales in 2020 as financial concerns caused some consumers to delay or drop plans to buy a new vehicle, while others who had no plans at all to do so ended up making a purchase. Shoppers have also become less interested in dealers sanitizing vehicles, putting more importance on staff wearing masks. 

Those were just two revelations coming out of the third installment of the CarGurus Covid-19 Sentiment Study released today. The vehicle buying website surveyed 796 shoppers who had intentions of buying a vehicle in 2020 or 2021. CarGurus

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also surveyed 779 shoppers in June and 722 shoppers in April for earlier iterations of the benchmarking study. 

The one big surprise is the fact that consumer attitudes remained fairly constant over the three surveys, said Madison Gross, CarGurus Director of Consumer Insights, but she noted the two groups of shoppers headed in opposite directions. While some delayed or canceled purchases due to financial concerns, 30% of the shoppers surveyed said they hadn’t planned to make a purchase but did so to avoid using public transportation or ride share services out of health concerns, or simply for recreation.

“There’s been a shift away from public transportation and ride sharing. In its place, a new perspective of vehicles as a source of fun and relaxation,” said Gross in an interview. 

Some of those purchases may indicate a long-term lifestyle change. Gross notes 24% of the respondents said they expect to work from home even more than they already are. “For those folks it’s more likely the shift to car ownership will be permanent,” Gross said.

No matter what the reasons for getting into the market there remains concern among some consumers about their ability to do so.

According to the study, 51% who delayed making a purchase said they’re uncertain about their personal financial situations and 45% said they’re uncertain about the economy in general. In turn, 46% of current shoppers said they were less confident in their ability to buy a vehicle as result of the pandemic. Aside from pure financial reasons, shoppers cited a perception of higher prices and lower inventories.

For those who have decided to buy, compromise has been a key word said Gross who noted, “We’re seeing shoppers who are quite open on make or even type of vehicle because of lack of inventory causing prices to be higher, which means they need to be a little bit more flexible to find something in their price range.”

Attitudes are also in flux regarding purchasing a vehicle online, rather than visiting a showroom. The pandemic forced many dealers to a digital business model, where customers would choose a vehicle, haggle over pricing and work out financing remotely, online. 

According to the CarGurus surveys, prior to the onset of the pandemic 35% said they were open to buying online. That number jumped to 60% for the June survey and has remained at that level. However, only 41% said they would “prefer” to purchase a vehicle that way. That’s still much higher than the 19% expressing that preference before the pandemic, but it indicates a level of wariness. 

While many of those surveyed said they’re fine with conducting price negotiations and lining up financing online, they still prefer going to the dealership for a test drive. One big change is consumers’ preferences about steps a dealership takes to ensure the environment is safe.

“Shoppers expressed decreased interest in things like wiping down surfaces and increased interest in wearing face masks for both employees and customers,” noted Gross.

Looking ahead to 2021, Gross sees what she called a “silver lining” predicting, “In other studies we’ve noted a younger generation of car shoppers are really car enthusiasts so I expect to see a resurgence in a love of cars. That’s a little bit different from what we’ve seen over the past half decade.”