Black Friday Delivers Strong Car-Shopper Demand With Potential Savings of Up to 20% on New Cars

Rhea-AI Summary

Cars.com, a top digital automotive marketplace, reports a surge in car buying interest as Black Friday approaches, with 83% of shoppers intending to purchase a vehicle in the next six months. Notably, 35% plan to buy during the Black Friday to Cyber Monday window. The study highlights a shift towards new car purchases, with searches for new vehicles rising to 22% in October, up from 19% in August. The pandemic has also prompted 18% of buyers to enter the market, with many utilizing digital services for vehicle purchases.

Positive

• 83% of Cars.com shoppers plan to buy a vehicle in the next six months.
• 22% of searches were for new cars in October, the highest since April.
• The study shows a growing trend of first-time buyers, with 18% of shoppers purchasing their first car.

Negative

• None.

CHICAGO, Nov. 20, 2020 /PRNewswire/ -- The latest research from Cars.com (NYSE: CARS), a leading digital automotive marketplace and solutions provider, shows Americans continue to prioritize car ownership as a safe mode of transportation during the COVID-19 pandemic as they gear up to take advantage of Black Friday offers. The new study from Cars.com reveals that 83% of Cars.com shoppers plan to purchase a vehicle in the next six months, with 35% planning to buy between Black Friday and Cyber Monday.¹

"The pandemic accelerated the adoption of more shop-from-home technology in automotive, a trend that will continue to grow as consumers prioritize their health, safety and convenience. And local dealerships are well positioned to meet the demand of a busy Black Friday weekend for car buying — even if it means less foot traffic on the lot and more traffic online," said Kelsey Mays, Cars.com senior editor, consumer affairs and vehicle evaluations. "As we head into the Thanksgiving holiday, we continue to see a strong used-car market, but the pendulum is swinging back toward new cars. Search activity for new cars on Cars.com grew the last three months and new-car sales are nearing pre-COVID market recovery."

Overall, 22% of searches in October were for new cars, up from 19% in August — the highest share of new-car searches since the onset of the pandemic in April.² "This trend is driven by increased inventory on lots and an increase in used-car prices," Mays said. Still, more than 80% of in-market shoppers are considering used vehicles for Black Friday and half are only considering used vehicles.¹

Cars.com Black Friday research also uncovered the following trends:

• The pandemic motivates more first-time car buyers to enter the market. An unexpected set of new buyers continues to enter the market, with 18% of shoppers surveyed indicating they are purchasing their first car this holiday season. The surge stems from continued concerns around mass transit and ride-hailing and the desire for a safe escape during the pandemic.
  
  
• With showroom traffic down, physical visits convert to digital. A third of Black Friday buyers plan to leverage local dealerships' contactless home delivery services, while 32% plan to handle credit applications and financing online. In addition, 28% plan to do virtual appointments and vehicle walkarounds, and 16% will take advantage of virtual test drives through video.

For shoppers looking to buy a new vehicle during the holiday weekend, Cars.com compiled some of the best Black Friday and Cyber Monday Car Deals:

• 2020 Chevrolet Trax. Chevrolet's compact SUV boasts potential savings of up to $4,250 off all trims of the Trax, including the base LS, if they apply an online discount. Without the online discount, shoppers can still get $3,750 off.
• Factory discount: $3,750-$4,250
• Approximate price after discounts: $18,000-$28,000
• Approximate factory savings: 12-19%
• Offer ends: Nov. 30
  
  
• 2020 Chevrolet Blazer. Shoppers can get Chevrolet's two-row SUV for $3,500 to $4,000 off all trim levels but the base model L trim.
• Factory discount: $3,500-$4,000, excluding base trim
• Approximate price after discounts: $29,500-$56,000
• Approximate factory savings: 6-12%, excluding base trim
• Offer ends: Nov. 30
  
  
• 2020 Ford EcoSport. Shoppers can take advantage of steep price cuts for Ford's smallest SUV with up to $6,250 off depending on the trim and region. Most regions offer an additional 8.9% for 84 months' financing, while select regions offer 0% financing for 72 months.
• Factory discount: $3,250-$6,250
• Approximate price after discounts: $16,500-$26,000
• Approximate factory savings: 15-23%
• Offer ends: Nov. 30-Jan. 4
  
  
• 2020 Ford Fusion. Consumers looking for this family sedan, which is in its final year as Ford turns to other body styles, can get up to $2,500 to $3,000 cash off all trim levels of the Fusion, depending on the region. If trading in a vehicle, Ford offers an additional $2,000 trade assist in most regions. Similar discounts are available for the Fusion's hybrid and plug-in hybrid options, too.
• Factory discount: $2,500-$3,000
• Approximate price after discounts: $21,500-$36,000
• Approximate factory savings: 7-12%
• Offer ends: Jan. 4
  
  
• 2020 Buick Encore GX. The premium brand SUV is offering $3,500 off across all trim levels. As an alternative to the cash off, potential qualified buyers can receive 0% financing for 84 months.
• Factory discount: $3,500
• Approximate price after discounts: $21,500-$36,000
• Approximate factory savings: 9-14%
• Offer ends: Nov. 30
  
  
• 2020 GMC Acadia. Shoppers of the GM SUV can get $5,500 off on all trim levels except the base SL trim. Separately, qualified shoppers can receive 0% finance for 84 months on all trims but the SL.
• Factory discount: $5,500, excluding base trim
• Approximate price after discounts: $29,500-$57,000
• Approximate factory savings: 9-16%, excluding base trim
• Offer ends: Nov. 30
  
  
• 2020 Hyundai Elantra. This compact sedan is available in many markets for $1,500 to $2,500 off for buyers. Discounts vary among six trim levels from the base SE up to the higher-end Limited and Sport. Qualified shoppers can finance through Hyundai to get another $1,000 off in many markets. Alternatively, shoppers can get 0% financing for up to 60 months.
• Factory discount: $1,500-$2,500
• Approximate price after discounts: $18,000-$25,500
• Approximate factory savings: 6-12%
• Offer ends: Jan. 4
  
  
• Fiat Chrysler Automobiles' mass-market U.S. brands are currently participating in employee pricing discounts for Black Friday. Shoppers can find moderate incentives for most vehicles with a Chrysler, Dodge, Fiat, Jeep or Ram brand name. Cash discounts vary widely depending on the vehicle trim level and location.

For shoppers looking at used vehicles, Mays encourages consumers to visit the Cars.com Used-Car Buyer's Checklist. Cars.com's virtual test drives can be found on their YouTube channel.

For more information, visit Cars.com/news.

¹ Cars.com Black Friday Car Shopping Survey Oct. 19-Nov. 18, 2020; 1,000 responses
² Cars.com Internal Data

About CARS
CARS is a leading digital marketplace and solutions provider for the automotive industry that connects car shoppers with sellers. Launched in 1998 with the flagship marketplace Cars.com and headquartered in Chicago, the Company empowers shoppers with the data, resources and digital tools needed to make informed buying decisions and seamlessly connect with automotive retailers. In a rapidly changing market, CARS enables dealerships and OEMs with innovative technical solutions and data-driven intelligence to better reach and influence ready-to-buy shoppers, increase inventory turn and gain market share.

In addition to Cars.com, CARS companies include Dealer Inspire, a technology provider building solutions that future-proof dealerships with more efficient operations and connected digital experiences, FUEL, which gives dealers and OEMs the opportunity to harness the untapped power of digital video by leveraging Cars.com's pure audience of in-market car shoppers, and DealerRater, a leading car dealer review and reputation management platform.

The full suite of CARS properties include Cars.com™, Dealer Inspire®, DealerRater®, FUEL™, Auto.com™, PickupTrucks.com™ and NewCars.com®. For more information, visit www.Cars.com.

 

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SOURCE Cars.com Inc.

FAQ

What percentage of Cars.com shoppers plan to buy a vehicle before Black Friday?

35% of Cars.com shoppers plan to buy a vehicle between Black Friday and Cyber Monday.

What is the trend in car buying interest according to the latest Cars.com research?

The trend indicates that car buying interest is increasing, with 83% of shoppers intending to purchase a vehicle within six months.

How has the pandemic influenced car buying according to Cars.com?

The pandemic has motivated 18% of shoppers to purchase their first car due to safety concerns around public transport.

What was the percentage of new car searches on Cars.com in October?

In October, 22% of searches on Cars.com were for new cars, up from 19% in August.