Americans more satisfied with car dealerships due to digitization, AI

Digital transformation reshapes car buying experience: A recent study reveals that digitization has significantly impacted the car purchasing process, with most Americans conducting extensive online research before visiting dealerships.

Key findings on consumer behavior:

• 60% of respondents purchased new vehicles, while 40% opted for leases
• 80% of buyers spent less than $50,000 on their purchase
• 84% bought from traditional dealerships, while 15% used online platforms like Carvana or CarMax
• 88% reported their buying experience was the same or better than previous purchases

Online research plays crucial role:

• 54% of respondents spent 1-10 hours researching online before buying
• 25% dedicated more than 10 hours to market research
• 26% visited four or more dealership websites during their search
• Only 23% exclusively visited the website of the dealership they ultimately purchased from

Dealership interactions and customer satisfaction:

• Nearly 40% of buyers visited only the dealership they purchased from
• 21% visited one additional dealership, and another 21% visited two
• 89% were neutral, satisfied, or very satisfied with online chat functionality
• 71% received follow-ups from dealerships they provided information to
• Over 50% were contacted by dealers on the same day they submitted their information

Test drives remain essential: Despite the shift towards digital shopping, 83% of respondents still took their chosen vehicle for a test drive before finalizing the purchase.

AI’s role in improving dealership experience:

• 37% of respondents want AI to reduce paperwork in the car-buying process
• 32% hope AI can decrease overall time spent at dealerships
• 25% do not want AI involvement in any aspect of the dealership experience

Consumer concerns about AI implementation:

• 55% worry about the lack of personal touch in the car-buying process
• 47% express concerns about potential inaccurate information
• 45% have privacy and trust concerns surrounding AI interactions

Industry perspective: Devin Daly, Co-Founder and CEO of Impel, emphasizes the importance of customer experience in influencing buying decisions and urges dealerships to adopt AI solutions to meet customer demands for prompt, accurate responses and consistent follow-up.

Broader implications for the auto industry: The study highlights a growing trend towards digitization in car sales, with consumers increasingly relying on online resources for research and comparison. However, the findings also underscore the continued importance of in-person experiences, such as test drives, in the decision-making process. As the industry evolves, dealerships must strike a balance between leveraging digital tools and maintaining the personal touch that many customers still value in their car-buying journey.