2024 Consumer Insights Report shows increased preference to do more online

For our seventh annual Consumer Insights Report, we surveyed over 3,000 car buyers and sellers to examine trends along the car buying and selling journey. The results show a shift in car shopper sentiment as prices and selection improve.

Read on for highlights from the report and insights on opportunities to adjust your marketing and retail strategies to meet these evolving preferences more effectively:

Price, rather than selection, is the top factor influencing where to buy. Compared to last year, fewer shoppers cited available inventory as a top factor in their decision on purchase location (26% vs. 18% in 2023). Meanwhile, prices (56%) and financing availability/offers (30%) continue to top the list of considerations. Now that inventory has rebounded, shoppers may feel they can be more selective.

Key takeaway: While price and budget are among the main factors for car buyers, you don’t need to drop your prices across the board. Our Next Best Deal Rating and Maximize Margin reports can inform decisions and identify opportunities to adjust pricing based on market conditions.

A growing share prefers to do more online before going to the dealership. Both buyers and sellers increasingly prefer to handle more steps online, with 80% of buyers wanting to do more from home (up from 69% in 2023); 90% of buyers researching vehicles online (compared to 81% in 2023); and 87% of sellers being open to selling completely online (up from 82% in 2023). However, an omnichannel shopping experience is preferred, with 88% of buyers noting that they saw the car in person before purchase. The top steps preferred in person were the test drive (69% in 2024, up significantly from 42% in 2023) and price negotiation (43%).

Key takeaway: Focus on building a seamless online-to-in-person experience that enables shopper research and preparation - including understanding monthly payment and financing. Offer these experiences on your website or use products like Digital Deal to help consumers do more online before visiting your dealership.

Shoppers are motivated. Today’s consumers are moving quickly, with 82% completing the entire car buying process within one month - and 42% within two weeks. The majority are also contacting more than two dealerships.

Key takeaway: Use data from CarGurus LeadAI to follow up with the most engaged leads as quickly as possible and capture shopper attention.