Key Takeaways

Sources: Dig Insights, Vehicle Path to Purchase Research Study, August 2024, (n=1,229). * Comscore My Metrix® | Key Measures, Multi-Platform, Total Minutes, August 2024, Canada. | Automotive Resources Share of Minutes., May 2024, (n=325).

In consideration of the survey findings, it’s more important than ever before to get your used inventory listed on online automotive marketplaces. Those at the outset of their car buying journey visit an average of 3.8 sources when shopping, but the sources used depend wholly on what they’re considering. Among new car shoppers, 48% visit manufacturer sites, versus 39% using online automotive marketplaces. With consumers interested in used vehicles, 55% frequent automotive marketplaces, while 33% browse automaker sites.

Overall, car buyers remain active and primed to purchase – so do your part to ensure they’re making their way to purchase through you!

Key Takeaways

• Despite impacts to the economy, purchase intentions are rising among car shoppers
• Used car intenders use automotive marketplaces as their top online source, making it imperative that your inventory is available for them to browse
• Consumers have high confidence in their current financial situation, understanding their financial confidence is key to ensure you can share the most relevant and attractive payment options
• Understanding what could impact a purchase can help seal the deal, be transparent with the descriptive text you populate to your listings and seek to gain a firm hold of consumer concerns or hesitations about finalizing their purchase

Source: DIG Insights Car Shopper Perceptions & Intentions Research Study, May 2023, n=305

Key Takeaways

• Educate consumers and prospective buyers on the different types of EVs available in the market
• Ensure your customers understand their charging station options, including the availability and benefits of at-home charging
• Outline cost, maintenance and environmental benefits when owning an EV
• Share the latest range per charge, based on current market offerings

Source: Electric Vehicle Research, March 2023 (n=1,332)

According to our Vehicle Path to Purchase Study, the primary drivers for experienced buyers to shop for a car are a desire to upgrade or because their current vehicle is dated. With first-time buyers, the main triggers are avoiding public transit (32%) and ridesharing services (21%), or, because they’re in the process of starting or switching jobs (21%). Necessity is as much of a factor as desire, if not more.

Not surprisingly, first-time buyers are more likely to be younger, with lower earnings, on average, as compared to experienced buyers. They are predominantly single or a young couple without children – factors that play a role in their purchase preferences. While the largest segment of experienced buyers have their sights set on a SUV (45%), first-time buyers were more likely to purchase a sedan (38%) , with SUV’s coming in second (34%). Some gravitate towards an electric vehicle (EV), however, the numbers remain slim at 9% for first-time buyers and 6% with experienced buyers. Overall, first-time and experienced buyer segments are near identical with respect to the breakout of their preference for a used or new vehicle.

Both segments use the same resources throughout the purchase process, with nearly the same weightings across each of these. At the top are online automotive marketplaces (63%), followed by dealer websites (36%), manufacturer websites (32%), and online videos (23%). Half of both buyer types are equally likely to visit a dealership and test-drive a vehicle, however, only 1 in 10 first-time buyers visit without a test-drive, as compared to 23% of experienced buyers. Those purchasing a car for the first time are also far more likely to ask their friends (44%) or family (45%) for advice.

Among the criteria that plays a part in their purchase decision, price is the primary factor, at 71% for both buyer types. Fuel economy is also high up in the ranking order, coming in at 48% across both camps. Both cohorts are also neck and neck when considering brand (43%), availability (40%), and safety (34%), however, first-time buyers are far less concerned about vehicle comfort (31%), styling (28%), or available features (19%). Dealers are likely to be most successful in positioning price and ownership cost within their pitches to first-time owners, as opposed to overemphasizing the features available in the vehicle.

There are significant differences between these two groups in terms of how they initially become aware of the model they eventually purchase. Social media advertisement = is a key channel for 35% of first-time buyers, versus 23% of experienced ones.

As they progress through the funnel, first-time buyers also find many of the lower stages increasingly difficult. Compared to experienced buyers, they are far more likely to struggle with feeling confident they got a fair deal. The first-time buyer sees nearly all aspects related to the purchase process a hurdle to overcome, including price comparison (59%), establishing a budget (52%), deciding on an extended warranty (51%), weighing insurance costs (50%), choosing a dealership (47%), selecting vehicle accessories (44%), identifying the most appropriate vehicle type (41%), deciding on buying or leasing (44%), and getting approval for financing (35%).

Where first-time buyers further distinguish themselves from those who have amassed experience with the process is their level of trust surrounding the accuracy of financing specifics conveyed to them by dealers. They are also more likely to make a down payment, which averages around $8,100.

To support first-time buyers as they progress through each stage of the car buying journey, dealers should concentrate their efforts in engaging these purchasers through the most appropriate channels, and once interest transitions from their online presence to bricks and mortar, demonstrate a heightened understanding of their unique preferences, the confines of their budgets, and providing the necessary handholding to successfully drive them over the finish line.

Key Takeaways

• First-time car buyers turn to online automotive marketplaces as their top information source, be sure you have your inventory front and centre
• First-time buyers will spend more time in their car buying journey, thus patience is imperative, however, they’re also more willing to put their trust in you
• Social advertising is the key channel where first-time car buyers become aware of the make and model of the vehicle purchased
• Most first-time buyers are younger, with lower incomes – invest the necessary time to understanding their budgets and help navigate them through the financing process
• Many young buyers are looking for basic transportation – present vehicle features as part of the value proposition, rather than a “wow factor”
• First-time buyers may see a challenge in researching a vehicle – advertise vehicles with as much information as possible, especially if they’re basic models, which often don’t have full specs alongside on a lot of sites
• First-time buyers want to test-drive vehicles, so make sure they can do so when they come in

Source: DIG Insights Vehicle Path to Purchase Research Study August 2022, n=1369.

Online automotive marketplaces are the portal to your physical showroom

The study uncovered that when car shoppers are in search of information, online automotive marketplaces continue to be one of the top online source across both used (78%) and new (45%) shoppers. When we consider factors that ultimately influence the purchase, 80% of used car shoppers and 60% of new car buyers find automotive marketplaces to be influential on their final decision. Maintaining a prominent, strong and always-on presence as well as optimizing your inventory listings to attract car shoppers at crucial points along their car buying journey remains a key ingredient of success.

Toggling from online to showroom and back is commonplace

Both new and used car buyers visit and engage with inventory listings hosted across online automotive marketplaces multiple times throughout their purchase journey. The study found that 78% of used car buyers visited an online automotive marketplace an average of 15 times before arriving at their final purchase decision, while 45% of new buyers visited an average of 9.4 times before taking the leap. Most consumers spend over an hour on online marketplaces each time they visit, comparing features and prices, looking for the best deals, and reading reviews.

Automotive marketplaces also play a significant role in driving awareness of a particular offering within a model range. Approximately 1-in-5 car shoppers first became aware of the model they purchased through this online source. Consumers continue to use online automotive marketplaces to engage in deeper research after their initial contact with the dealership and even following the dealership visit. Today’s purchase journey is everything but linear, thus, ensuring your inventory is placing on automotive marketplaces is that much more important to drive visibility, engagement and impact across all stages of the funnel.

The increased usage of the internet has resulted in a series of pivots in the car buying journey. What’s more, the pandemic resulted in lasting shifts to the automotive landscape, forcing the hand of dealer operators to align, adapt and alter their strategies on a dime. What’s remained a mainstay with car shoppers is the dependence on and the trust they place in online automotive marketplaces – taking advantage of the power of this most commonly used resources throughout every stage of the car buying journey ensures that your offerings are front and centre with car shoppers near and far.

Key Takeaways

• Online automotive marketplaces are a key touch point in the purchase process; car shoppers visit marketplaces multiple times throughout their journey, even after the dealership visit.
• The purchase journey is not linear; online automotive marketplaces play a part in all stages – ensure your inventory is exposed online, as this is fundamental for awareness and reach.
• Online automotive marketplaces are the primary resource used across used and new car shoppers.
• Both used and new car shoppers find online automotive marketplaces influential on their final purchase decision; maintaining a strong presence and ensuring inventory is well merchandised is vital to attracting shoppers at critical points in their journey.

Source: DIG Insights Vehicle Path to Purchase Research Study August 2022, n=1369.

Purchase intentions unscathed by economic uncertainty

Despite economic uncertainty, consumer purchase intentions increased. The majority of gotrader.ca car shoppers surveyed in November of this year rated their household finances as “Good” or “Very Good” (60%), while only 10% reported “Poor” or “Very Poor”. Nearly a quarter of shoppers intended to buy a vehicle within six months (24%), up from 18% in March of 2022.

Even if the market worsened, 60% of new car shoppers and 40% of those interested in used would still buy a car, and about half intended to spend what they had originally budgeted. The bottom-line is that no matter the state of the economy, cars remain a necessity for Canadians.

Online marketplaces a mainstay as the primary resource for car shoppers

According to our Vehicle Path to Purchase study, 45% of new car buyers and 78% of used car buyers use automotive marketplaces from the very onset right through to the close of their car buying journey. Marketplace visitation also ranks high across both cohorts, with an average of 9.4 visits for new shoppers, and 15 visits for used shoppers.

Most spend more than an hour each time they frequent an online automotive marketplace, comparing vehicle prices, examining features and reading online reviews. The majority of car shoppers spend 3 months in their journey, from initial research to finalizing the purchase.

Price is top of mind for used and new car buyers when considering a purchase, followed by brand reputation, fuel economy and vehicle availability.

Experience is also influential with car shoppers, as 40% of used buyers favour a fair price and amazing customer experience, over the best price with a lackluster experience. It appears crucial for dealer operators to prioritize these elements of the online and in-dealership experience to ensure shoppers are primed to put ink to paper when they do visit your store.

Transforming shopping behaviours

Although the microchip shortage continued to affect the industry, car buyers had become increasingly aware of it and were willing to adapt. They anticipated longer wait times for a new vehicle delivery, didn’t expect incentives or negotiation to play a part in the purchase process, and thought it would be tough to find pre-owned vehicles.

The research also found that new car buyers were more likely to purchase a car without a test drive. Almost a quarter of all shoppers were willing to exceed their initial budget by $2,000 to $4,000 if necessary and would travel farther – even out-of-province – to get the right car. More than half would spend an extra two to four hours a week perusing online automotive marketplaces. With 64% desiring a price comparison tool and 31% seeing value in vehicle reviews, offering these tactics within your dealership website represents a competitive advantage.

Car shopper interest in electric vehicles ramps up

Currently electric vehicles (EVs) only represent a small slice of the Canadian market, but an GoTrader survey in March of this year uncovered that 55% of shoppers believe half the vehicles on the road will be electrified within 10 years. Most people don’t drive electric, however, 68% would consider buying one. The majority of those who demonstrate interest in an EV would choose a Battery Electric Vehicle (BEV), rather than a Hybrid Electric Vehicle (HEV) or a Plug-in Hybrid Electric Vehicle (PHEV).

Examining top brands, Tesla is most desired by Canadian shoppers, followed by Toyota, Hyundai and Ford. Among the top reasons buyers would choose an EV, 89% cite fuel efficiency, while 51% point to lower maintenance costs. Dealers offering new or used EVs could have an edge over their competition but, as we are in the early stages of the adoption curve, consumer knowledge gaps are evident, thus bridging the gap with educational content surrounding EVs is a must for car dealers.

Common car shopper challenges and preferences you need to know

Looking back to February of 2022 we checked in with consumers to better understand their preferences and any challenges they may face when car shopping. Our research found most respondents had bought more than four vehicles in their lifetime, but only 27% were very familiar with the car buying process. Only 12% of shoppers visit a dealership early in the buying journey, with most doing so midway or late in the process – primarily because they do most of their research through online automotive marketplaces.

Half of the car buyers surveyed had trouble negotiating price and financing, as well as assessing a used vehicle’s history and condition. They demand straightforward online information, including payment and finance options, and vehicle history and condition reports. Car shoppers also see tremendous value in testimonials from owners and reviews from automotive experts, delivered in a more engaging format, video. Unsurprisingly, buyers want to trust the brand and the dealer, to ensure they’re getting a good price.

Key Takeaways

• Vehicle purchase intentions remain steady regardless of economic shifts, continue to invest in your marketing efforts and inventory replenishment
• Automotive marketplaces are a mainstay as the top resource for car shoppers, so be sure your inventory is present where they are online
• Experience trumps price, providing your customers a quality experience across every touchpoint with your dealership is key
• Car shoppers are willing to transform conventional shopping behaviours, due to the supply and demand imbalance, offer them alternative options to get a deal closed
• Investigate the feasibility of growing your EV inventory to match the lift in consumer interest and demand
• Vehicle affordability is top of mind for Canadian car shoppers, along with vehicle information, keep your merchandising up to snuff to help your inventory listings convert

Provincial Search Breakout

2022 Provincial Search Data Revealed Key Regional Preferences for Car Shoppers Across the Country.

British Columbia Edges Away from Luxury

This year the Honda Civic earned a spot in the province’s Top 10 most searched vehicles list, knocking the BMW M from the list, signifying a continued shift away from luxury vehicles for British Columbia. In 2021, the more economical Toyota RAV4 (#4) replaced the luxury BMW X5. Whereas in 2020, British Columbia had the most luxury vehicles in the country compared to any other region at six vehicles – in 2022 this was down to just four. As for top honours, the Ford F-150 held strong at #1.

SUVs Gain Popularity in Alberta

Larger vehicles continued to command attention in Alberta. Comprising half, the top searched list were four SUVs, one more than last year, and a truck. The Toyota Tacoma, 4Runner and Chevrolet Corvette were knocked off the list, and the BMW X5 (#8), Honda Civic (#9) and Toyota Highlander (#10), became new additions for Albertans.

Trucks Hold Strong in Saskatchewan

Saskatchewan stayed true to its roots, again outpacing every other province in the sheer number of trucks on its Top 10. The Ford F-150, Chevrolet Silverado 1500, GMC Sierra 1500, and Toyota Tacoma held on as category favourites. Adding to the province’s year-over-year record of having no luxury vehicles on the list, the Honda Civic (#3) made a new appearance, reinforcing Saskatchewan’s penchant for practicality.

Cars Remain King in Ontario as Province Shifts to more Economic Models

Cars continued to dominate in Ontario, taking up 80 per cent of the region’s Top 10. This year, Ontarians were seeking more economical options, with one less luxury model making the cut, and the Honda Civic rising to top spot all the way from fifth last year. In 2022, the Honda Accord (#10) also replaced searches for BMW M vehicles.

Honda Civic Takes Back Title in Quebec

2022 marked the first place return of the perennial favourite Honda Civic, reclaiming the top spot from the Porsche 911 – the surprise favourite of 2021. The Porsche 911 didn’t fall far behind (#2), creating an interesting mix of luxury and economical. The Toyota Corolla (#8) was a new addition, bumping the Jeep Cherokee from the Top 10.

SUVs Overtake Cars in Manitoba

SUVs gained traction in Manitoba this year, accounting for 60 per cent of the Top 10 list and making it the province with the highest interest in this category. The 2022 addition of the Toyota Highlander (#9) in place of the Chevrolet Corvette pushed cars as a category to a close second.

Maritimes Move Away from Upsizing

Atlantic Canada continued to place less importance on luxury in 2022. The 2021 regional rise of SUVs was short lived, with the elimination of the Toyota Highlander making room for the Corolla (#9) in this year’s Top 10. While the Ford F-150 maintains its first-place ranking, cars and sedans account for 50 per cent of the vehicles on the list, with no mention of any luxury vehicles.

2023 Trend Outlook

In addition to mining marketplace data for insights and trends, each year GoTrader conducts ongoing consumer research studies to provide an up-to-the minute view of the evolving automotive landscape. This year’s research explored how car shoppers are navigating the aftermath of the microchip shortage, amid inflation and cost-of-living increases.

High Gas Prices Boost Electric Vehicle Interest

Electric vehicles (EVs) have been climbing in popularity for years, with interest soaring to new heights in 2022. When gas prices skyrocketed in March, searches for EVs on GoTrader spiked too, increasing 89 per cent year-over-year. According to a study conducted among GoTrader users across Canada, 2-in-3 EV intenders said the rise in gas prices directly accelerated their desire to go green, in a bid to reduce fuel dependency. Throughout 2022, the number of car shoppers inquiring about EVs climbed up 148 per cent compared to the same time last year. Fuel cost efficiency remains the top factor for EV adoption, followed by environmental friendliness and low maintenance, with EV searches the highest in British Columbia and Ontario, likely in response to greater government incentives offered in these regions. With the EV market evolving to keep pace with demand, 2022 saw several new releases, including highly anticipated EV trucks, with the arrival of the GMC Hummer and Ford F-150 Lightning. 2023 is already shaping up to be another big year, with the anticipated Chevrolet Silverado EV and Sierra launch, an EV truck from Ram, and EV performance cars becoming a bigger trend throughout the next year.

Car Shoppers Adapt to Supply Issues

This year Canadians continued to face higher vehicle prices, less availability and longer wait times, as impacts of the microchip shortage persisted. New vehicles became an even hotter commodity, with the average time a new vehicle spent on GoTrader decreasing from 86 days in 2021 to 49 days in 2022 (a 43 per cent drop). Canadian vehicle intenders proved they were ready to come out on top, adapting to the new market norms, with 33 per cent willing to change the vehicle brand and model they were planning to buy (up from only 20 per cent in 2021), and 23 per cent willing to pay more due to the shortage.

Canadians Turn to Used Vehicles as Prices Start to Soften

Last year, the impacts of the global microchip shortage strained new vehicle supply, prompting more Canadians to consider buying used. This trend continued to grow in 2022, as research conducted on GoTrader revealed a third (36%) of Canadian vehicle intenders were willing to switch from purchasing new to used, a 10 per cent jump from 2021. With the average price of used vehicles softening, and inventory rising on AutoTrader, used vehicles continue to be an appealing option for car shoppers.

Purchase Intent Remains Steady

Despite economic uncertainty, AutoTrader’s research indicates a promising outlook for the automotive industry. The research showed that Canadians’ intentions to purchase a vehicle in the next six months actually increased to 24 per cent in October 2022, compared to March of this year (18%). Most vehicle intenders have a positive view of their personal and household finances, with only a few (15%) feeling that their situation may worsen over the next 6 months. The study revealed that car shoppers’ budgets likely won’t change even if the market does, regardless of if the economy stays the same or declines.

Methodology

Analysis was performed based on site analytics from GoTrader using Canadian search data from January 1 to October 25, 2022. Year-over-year analysis was based on data from January 2021 to October 25, 2022. gotrader.ca commissions independent third-party research to understand Canadian car shopping habits amongst both car intenders and past purchasers. Throughout the year, GoTrader also surveyed its users to maintain a pulse of car shopping behaviours over the course of 2022.

Sources: GoTrader Data Warehouse, January-December 2022. Auto Trader Electric Vehicle Research, April 2022 (n = 1,192). GoTrader Microchip Shortage Research, May 2022 (n = 1,266). Impact of the Economic Situation in Canada on Vehicle Purchase Intentions, DIG Insights, October 2022 (n = 456)

Key Takeaways

• The majority of consumers have a positive view of their financial situation
• Car shopper purchase intentions and budgets remain steady despite economic situation
• Continue to invest in replenishing stock, as well as inventory marketing and promotion
• Understand your customer’s needs/concerns to make them feel confident doing business with you

Source: Impact of the Economic Situation in Canada on Vehicle Purchase Intentions, DIG Insights, October 2022 (n=456).