Car Shoppers Report Increased Transparency While Buying a Car

Rhea-AI Summary

The Capital One Auto Navigator Survey indicates a significant rise in transparency in the car buying process, with 40% of respondents finding it transparent in 2020 compared to just 14% in 2018. The survey, conducted amid COVID-19, reveals that 77% of participants plan to research financing options online, with 83% intending to gather more information on vehicles. Key findings include that 92% value test drives, while 78% plan to spend less time at dealerships. The survey included 1,000 U.S. adults and was conducted in October 2020.

Positive

• 40% of respondents now see the car buying process as transparent, up from 14% in 2018.
• 77% of respondents plan to research financing options online due to COVID-19.
• 83% intend to conduct more background research on potential cars online.

Negative

• 78% of respondents plan to spend less time at dealerships, potentially impacting sales interactions.

PLANO, Texas, Dec. 10, 2020 /PRNewswire/ -- The latest Capital One Auto Navigator Survey reveals a significant jump in how transparent the car buying process has become for shoppers over the past two years. 40% of respondents to the 2020 survey reported it was transparent, compared to only 14%¹ in 2018. Additionally, 77% of this year's survey respondents reported they will research financing options and pre-qualification online more than before as a result of COVID-19.

"We believe that technology can make buying a car simple and enjoyable for consumers, and we're excited to see an increase in the number of car buyers who view it as transparent. To me, that signals how digital tools can help shoppers feel more prepared and confident before buying a vehicle," said Jeffrey Rabinowitz, senior vice president consumer auto, Capital One Auto Finance. "We built Auto Navigator to empower customers with their real rate and payment, all without affecting their credit score, and to contribute to the increasing transparency of car buying."

Additional survey findings include:

Consumers lean into digital tools before heading to the dealership

Most respondents plan to do more research on vehicles, dealerships, and financing, and say they will rely more heavily on online information than they did before COVID-19.

• 83% intend to do more background research on potential cars online than before.
• 63% feel it's easy to find information that makes them confident about their auto loan rate.
• 81% feel prepared when discussing finance options with dealers².
• Of those who purchased a car in the last six months, more than half (51%) selected their preferred make/model online, while more than a quarter (26%) did the same at the dealership.

Consumers value dealerships as part of the purchasing process

While 78% of respondents intend to spend less time at the dealership than before COVID-19, in-person dealer experiences like test driving and negotiations are still important.

• 92% of respondents stated the test drive is an important step in the car-buying process.
• 50% feel most comfortable purchasing from a dealership where negotiations are the norm as opposed to no haggle pricing.
• Of those who plan to purchase a vehicle in the next 1-2 years, 43% plan to have discussions about pricing and financing in-person at the dealership.

Methodology

The survey of 1,000 U.S. adults ages 18+ was conducted on behalf of Capital One Auto Finance using Ipsos.  *Of the 1,000, 348 have bought/leased a car in the last 6 months and 652 self-reported that they're planning to buy/lease a car within the next two years. The survey was fielded October 1-14, 2020 with a margin of error of +/- 3.1%.

About Auto Navigator

Auto Navigator from Capital One allows car buyers to shop a digital inventory of millions of cars from more than 13,000 participating dealerships nationwide, pre-qualify for financing with no impact to their credit score, and see their financing options, all in one place.To learn more and pre-qualify for financing, visit https://www.capitalone.com/cars or download the app from the iOS App Store.

Visit the Capital One Auto Learning Center for more information and resources about car financing and ownership.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $305.7 billion in deposits and $421.9 billion in total assets as of September 30, 2020. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

¹ Responses include "completely transparent" and "very transparent" when asked: "On a scale of 1-5 with 5 being completely transparent and 1 being not at all transparent, how transparent do you believe the car buying process is today?" 

² Responses include "very prepared" and "somewhat prepared" when asked: "In general, do you feel prepared on the following topics when discussing them with dealers?" for "discussing finance options"

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SOURCE Capital One

FAQ

What did the 2020 Capital One Auto Navigator Survey reveal about car buying transparency?

The survey showed that 40% of respondents found the car buying process transparent in 2020, a significant increase from 14% in 2018.

How has COVID-19 affected car buyers' research habits according to the survey?

77% of survey participants reported they will research financing options and vehicle information online more than before COVID-19.

What percentage of respondents value the test drive in the car buying process?

92% of respondents stated that the test drive is an important step in the car-buying process.

How many respondents plan to spend less time at the dealership post-COVID-19?

78% of respondents indicated they intend to spend less time at the dealership than they did before COVID-19.

What was the sample size and methodology of the Capital One Auto Navigator Survey?

The survey included 1,000 U.S. adults aged 18+, conducted between October 1-14, 2020, with a margin of error of +/- 3.1%.