Regardless of industry, buyers and sellers have always seen the world with different eyes and in different colors. Sure, a professional salesman or marketer always strives to understand a customer’s buying motives and priorities, but there is a huge gap between their fundamental points-of-view. Between revenues and costs, between business opportunity and a substantial hole in the family budget.
Many car buyers have strong emotions about and an active interest in cars. So do many car dealers and car salespersons, but it’s also their professional identity, career, and livelihood.
LESS
This is also reflected in a new study published by the financial group Capital One. One example: On the vital issue of “transparency” (how easy it is to understand what happens in the buying process), fully 77% of dealers describe the car buying process as “transparent”, up from 54 percent from the previous year. In stark contrast, only 26 percent of buyers (down from 40 percent) agree.
Considering that a customer’s perception of transparency is a vital element of trust, and a comfortable buying journey, the huge difference should certainly cause some alarm. So, why do they feel like that?
According to the report, “this decrease in perceived transparency by consumers may be attributed to the difficulties induced from the current economic and supply chain issues”. To be more specific:
- 66 percent of car buyers say that the parts shortage has affected their car buying plans.
- 60 percent of car buyers state that the car buying process has become more difficult because car prices have increased
- 29 percent say “because used car options are too limited”, and
- 26 percent “because it’s difficult to find the kind of car they actually want”.
So, in spite of the dealers’ ambitions, in spite of new digital information tools, the buyers feel less informed due to factors beyond their insight and control.
“INNOVATION” TWICE AS IMPORTANT AS THE YEAR BEFORE
The 2022 Capital One Car Buying Outlook also captures a range of other car buyers’ and dealers’ perceptions of the car buying experience. More highlights:
- 39% of future car buyers plan to visit at least three dealerships for their next car purchase, compared to 28% of recent car buyers.
- In 2022, 87 percent of dealers say that “innovation” is important, almost doubled from 44% in 2021.
- 52% of dealers report their dealership is highly or completely virtual, an increase of eight percentage points from 44% in 2021.