New TrueCar Report Reveals How the State of the Economy Has Impacted the Way Americans Shop for Cars

Rhea-AI Summary

The latest Automotive Shopper Trends Report from TrueCar reveals significant shifts in consumer behavior amid rising interest rates and inflation. Released on March 9, 2023, the report indicates that while new car inventory is recovering, affordability challenges persist. Key findings show that 54% of shoppers need a car immediately, 7% shifted from new to used vehicles, and 95% prefer online interaction during purchases. The 'omnichannel shopper' trend highlights consumers willing to spend over $50K and prioritizing technology and EVs. These trends reflect changing automotive market dynamics driven by consumer needs and economic factors.

Positive

• 54% of car shoppers need a vehicle immediately, indicating steady demand.
• Shift towards online shopping as 95% of consumers prefer some online deal components.
• Increased interest in EVs, with 74% of omnichannel shoppers considering them.

Negative

• High interest rates and inflation continue to challenge affordability.

The Automotive Shopper Trends Report highlights shift in consumer expectations amid rising interest rates and inflation 

SANTA MONICA, Calif., March 9, 2023 /PRNewswire/ -- TrueCar, Inc. (NASDAQ: TRUE), the easiest, most efficient and transparent online destination for buying and selling new and used vehicles, today released the latest version of its Automotive Shopper Trends Report (ASTR), a comprehensive look into auto shopper actions and expectations. Combining nationwide survey results with data from TrueCar's platform, the ASTR uncovers insights from the latter half of 2022 on automotive trends for both consumers and dealers.

The report shows that although new car inventory is returning, high interest rates continue to add to affordability challenges and influence how consumers approach car buying. Below are some insights from this edition of the ASTR:

• Despite the economy and high prices, 54% of car shoppers are facing the current market because they say they need a car now.
• For the sixth quarter in a row, the average loan term for a used car was longer than the average loan term for a new car, due to consumers' desires to keep monthly payments low.
• Consumers are changing their mind during the buying process: 7% of shoppers who prospected for a new car ended up buying used, a 10% increase since Q1-Q2 2022.

Additionally, the report found that 95% of shoppers want to do at least some part of their deal online, revealing a new persona: the omnichannel shopper, a consumer looking to do any amount of their car purchase online, before going into the dealership. These shoppers have a variety of traits that define their shopping experience, including:

• 80% of omnichannel shoppers have a vehicle budget of $50K+
• 76% want the latest technology
• 74% are considering an EV as their next purchase
• 66% plan to lease

"Car buyers and their expectations have changed over the past few years as the automotive industry continues to shift, especially with the move toward online marketplaces," said Mike Darrow, President and CEO at TrueCar. "Consumers are continuing to embrace online shopping to help them find the vehicle they need, as affordability is emerging as a key issue affecting future sales."

TrueCar's full report includes deeper car-buying actions and expectations such as brand preferences, growth in EV demand, purchasing habits, top-selling features in today's vehicles, and the used-car market. To download the Automotive Shoppers Trends Report, visit: https://dealer.truecar.com/astr-year-end-2022.

About TrueCar 

TrueCar is a leading automotive digital marketplace that lets auto buyers and sellers connect to our nationwide network of Certified Dealers. With access to an expansive inventory provided by our Certified Dealers, we are building the industry's most personalized and efficient auto shopping experience as we seek to bring more of the process online. Consumers who visit our marketplace will find a suite of vehicle discovery tools, price ratings and market context on new, used and Certified Pre-Owned vehicles. When they are ready, shoppers in TrueCar's marketplace can connect with a Certified Dealer in our network, who shares our belief that truth, transparency and fairness are the foundation of a great auto shopping experience. As part of our marketplace, TrueCar powers auto-buying programs for over 250 leading brands, including AARP, Sam's Club, Navy Federal Credit Union and American Express.

For more information, please visit www.truecar.com, and follow us on LinkedIn, Facebook or Twitter.

 

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SOURCE TrueCar.com

FAQ

What did the TrueCar Automotive Shopper Trends Report reveal?

It revealed shifts in consumer behavior, highlighting a need for immediate vehicle purchases amid affordability challenges.

When was the TrueCar report released?

The report was released on March 9, 2023.

What is the significance of the omnichannel shopper trend in the report?

The trend indicates that 95% of shoppers want to engage online, with many having vehicle budgets over $50K.

How are interest rates affecting car buyers according to the report?

High interest rates are creating affordability challenges and influencing buying decisions.

What percentage of shoppers shifted from new to used vehicles?

7% of shoppers who initially sought new cars ended up purchasing used vehicles.