As we unravel the results of this research, we’ll compare it to previous consumer studies conducted by DIG Insights earlier this year and in 2019. This will be useful to shed some light on if and how consumer behaviour has changed as a result of the pandemic and to support the development of a plan to adapt accordingly.

The key finding from this study shows that 72% of consumers say that they will take more time than usual to finalize a vehicle purchase. More specifically, 86% of shoppers indicate that it could take them more than a month to make a purchase – compared to 54% of respondents who stated it took them longer than a month in the previous study. The most popular prediction was that it would take them about 2 or 3 months to purchase, with 30% of respondents selecting this timespan. When asked why they would not follow through with purchasing a vehicle at this time, the top three reasons were uncertainty about the COVID-19 situation worsening (60%), potentially losing their job (49%), or, falling ill (45%). Encouragingly, these are concerns which should be allayed when the COVID-19 pandemic is coming to an end, meaning no major damage has been done to underlying consumer confidence – yet.

Intent to purchase a vehicle among the general populace within the next 6 months has dropped off from 23% to 20% in the first week of tracking (March 23) and then to 18% last week (March 30), as compared to findings from our pre-COVID-19 study. While the intention to purchase a new vehicle has remained relatively stable for the past two weeks after dropping initially, consumers who planned to buy a pre-owned unit modestly decreased in each wave of tracking.

When asked why recent shoppers were looking to purchase a vehicle, they stated the top motivators were; their current vehicle is too old (24%), and, they were due for an upgrade (25%). Measured up to findings from our February 2020 study, the desire for something newer has actually increased. From other research we have conducted we can assign this to concerns about cleanliness and hygiene.

With online being the largest, or, in certain instances, the only source that some consumers will use during their car shopping journey across the subsequent weeks or months, we still see them primarily using the same platforms – manufacturer websites, online marketplaces and dealership websites.

However, a notable change between the most current study and research conducted in the past, is that consumers indicate far less intent to visit manufacturer websites, the percentage of respondents stating this intent dropping from 56% to 44%. Dealership websites suffered a similar fate, dropping from 48% to 36%.

Online marketplaces, such as gotrader.ca, gained a share of intent growing from 42% to 44%. This is most likely driven by the extension of the research phase which COVID-19 is causing, since most users begin their journey with marketplace and visit OEM and dealer websites later in their journey.

Checklist: Your Path to Success

• • Retool your marketing and overall business strategy to focus on online shoppers, specifically online shopping behaviour.
  • Heavy-up promotion of special financing rates, incentives, discounts, and/or payment deferral programs that align to current consumer needs.
  • Train your front line sales staff to manage online leads or connections accordingly, and ensure they are prepared to engage with consumers using digital tools and technology.
  • Ensure your website is up to date with your latest inventory and that all vehicle detail pages provide consumers with an opportunity to connect with a live sales agent.
  • Be present on the marketplace and take this opportunity to make necessary adjustments to online merchandising, including headlines, photos, and vehicle descriptions.
  • Leverage online tools to help you effectively engage with your customers. The Remote Selling Suite, a free toolkit by TRADER, connects you with your gotrader.ca marketplace shoppers.

The post TRADER Study Shows Major Shifts in Vehicle Purchase Intent Due To COVID-19 appeared first on gotrader.ca.

We wanted to understand how COVID-19 has affected consumers attitudes and shopping behaviour, both now and in a post-COVID-19 world. Surveying 1,000 respondents across the country over the past few days, the results make for interesting read for anyone connected to the automotive industry in Canada. To set the stage, over 73% of Canadians are following the news of COVID-19. Meaning, most of the population is staying informed and are aware of the current circumstances surrounding the virus.

How has Purchase Intent Changed?

Looking at all respondents, 2/5 of them say that their likelihood to purchase a car has increased or stayed the same since the pandemic began.

But incredibly, a full 50% of those intenders said their urgency to buy had stayed the same or even increased.

For dealers, the takeaways must be two-fold; firstly, ensure your inventory can be found by consumers during this time, by both researchers and active buyers.

Secondly, do all you can to help prospects engage remotely with you – if you offer options which respect physical distancing, such as home delivery or live chat, make the consumer fully aware. Nurture any inbound leads carefully and use strategies to keep communicating with them until they are ready to buy.

Ridesharing & Public Transport Impacts

Since the beginning of the pandemic in Canada, reported rideshare usage has decreased by 65% along with 81% less people reporting no longer using public transit services. This is due in part to people not needing to travel to work and taking the necessary precautions to be physically distant and slow the spread of illness that comes along with being in confined spaces.

But has the current situation affected their likelihood to continue to use these transportation services once the pandemic has concluded? Based on what consumers told us, yes it does.

When asked if they will revert to their previous methods of transportation after COVID-19, 70% of consumers say they do not plan on using ride share services again and 40% of those who previously used public transportation do not plan on continuing to do so. The reasons given by respondents include the flexibility car ownership provides (44% agree), personal space (36%) and control of cleanliness and hygiene (33%).

Conclusion

The most interesting findings for the automotive industry would surely be that 14% of people who do not currently own a vehicle, now plan on purchasing one as a direct result of COVID-19. Consumers that were relying on rideshare programs say they are 4X more likely to now own their own vehicle instead. Of those who used public transportation, 62% of consumers now find it more desirable to purchase their own vehicle.

What these results suggest overall is that car ownership will be more desirable post COVID-19. Transportation habits may be changing and as a result, dealers need to be available online over the next few weeks, and months as consumers begin their search for a vehicle. There will be many first-time vehicle purchasers who may need some extra guidance and education on buying and owning a vehicle, so be sure your salespeople are equipped to provide them with the service they need. While you may not have as much foot traffic on your lot right now, they are coming, and they are currently online.

Author Ian MacDonald, Vice President, Strategic Marketing, TRADER Corporation

Source: gotrader.ca COVID-19 Consumer Attitudinal Study. Google Surveys n=1000

The post Car Ownership More Attractive in a Post COVID-19 World, gotrader.ca Study Finds appeared first on gotrader.ca.