Consumers are becoming less concerned about the effects of COVID-19 when it comes to shopping for a vehicle, according to a Sept 22 Cox Automotive report. Data shows that shoppers are increasingly comfortable visiting dealerships for both the service department and the showroom. At the same time, dealers are experiencing positive trends in both digital retailing and pick-up and delivery services in the ever-changing COVID-19 environment.
Concern over the virus is at the lowest level since the beginning of the pandemic in the U.S. While the majority (57%) of those surveyed responded that they were still “very concerned” about COVID, those that are not at all concerned or only somewhat concerned rose to 43%.
In fact, the top concern overall for those surveyed has shifted dramatically since the start of the pandemic. The coronavirus is the top concern for less than half of Americans (49%) while the upcoming presidential election has climbed to second place with 38% of Americans seeing it as their top concern.
High-Intention Shoppers More Likely to Visit Dealership
Those surveyed by Cox Automotive were asked, “How, if at all, would the spread of coronavirus impact your likelihood to visit a car dealership in-person?” For the first time since the pandemic response started, 43% of consumers stated there would be no impact on their likelihood to visit in-person. Another 14% couldn’t answer definitively and only 43% thought they would be ‘much or somewhat less likely”.
Whether because of COVID-19 fatigue or a shrinking concern about the effects of the virus, more shoppers are willing to return to the car-buying process to complete their purchase.
It comes at a time that fewer shoppers are in market. Only 14% of those surveyed – in-market shoppers – intended to buy within the next six months.
Related: As dealer sentiment improves, inventory woes deepen
Online Experience is in High Demand
The desire to move more of the car buying experience online was evident in the survey. Six out of ten said that compared to the last vehicle they purchased, they wanted “more of the purchase steps online”. That’s despite nearly half of buyers who purchased during COVID-19 responding that they were able to do more online this time around.
Dealers are also finding digital retailing to be beneficial, especially in terms of customer experience and time management for dealership staff. More than three-quarters of dealers responded that digital retailing allows customers to transact faster at the store – a complaint that has been dominant for years – and more than half acknowledge that dealership staff are more efficient at completing deals in a timely fashion. It’s leading to a streamlined, of consumer-pleasing sales experience.
Customers Love Pick-Up Services
Another adopted practice by dealerships in the pandemic has struck a chord with service customers. Service pick-up and delivery has been an overwhelming success in consumers’ eyes as 92% say they are satisfied with it.
Currently, only 6% of dealers report charging customers to use pick-up and delivery, likely leading to such a positive response. Of the shoppers surveyed, nearly half would be willing to pay $20 for the convenience of not visiting the dealership in-person.
The Cox Automotive report shows that dealers still have plenty of room to grow their service pick-up and delivery services as only 59% use it currently. With so many vehicle owners willing to pay, it could become another way to increase department revenue and boost customer satisfaction survey scores with the manufacturer.
Related: Auto industry recovering well amidst retail slump
Did you enjoy this article from Jason Unrau? Read other articles from him here.
Be sure to follow us on Facebook and Twitter to stay up to date or catch-up on all of our podcasts on demand.
While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.
