The overall vehicle purchasing experience improved from all angles in 2024, a new study shows.
Car shopping digital platform CarGurus has released its seventh annual U.S. Consumer Insights Report, examining shopper trends along the car buying and selling journey. Findings show year-over-year increases in buyer satisfaction, a decline in need-based purchases and a rise in seller confidence as more consumers tap the power of online tools to inform their decisions.
The shifts come at a time when vehicle pricing and selection have improved. According to CarGurus data, new car inventory increased by 31% year-over-year, helping moderate prices.
Similarly, average used car prices decreased 3% over the same period as inventory stabilized, leading fewer shoppers citing available inventory as a top factor in their decision on purchase location (26% vs. 18% in 2023).
Instead, factors including prices (56%) and financing availability/offers (30%) continued to top the list of considerations buyers sought when it came time to purchase.
Highlights from the 2024 Consumer Insights Report include:
- Buyer and seller satisfaction is on the rise. In 2024, 79% of car buyers were satisfied with the overall car buying experience, 35% of which were extremely satisfied (up from 28% in 2023). Similarly, 78% of sellers said they got a “good” or “great” deal (up from 70% in 2023) and 71% were satisfied with the overall experience.
- More buyers are adding cars to their household. Buyers reporting need-based purchases declined year-over-year (62% vs. 67% in 2023) and fewer people were in the market for a replacement vehicle (49% in 2024 compared to 61% in 2023). Rather, more shoppers looked to buy the first vehicle in their household (18% vs. 12% in 2023) or to add a vehicle (34% vs. 27% in 2023).
- A growing share of consumers prefer to do more online before going to the dealership. Both buyers and sellers increasingly prefer to handle more steps online, with 80% of buyers wanting to do more from home (up from 69% in 2023); 90% of buyers researching vehicles online (compared to 81% in 2023); and 87% of sellers being open to selling completely online (up from 82% in 2023). However, an omnichannel shopping experience is preferred, with 88% of buyers noting that they saw the car in person before purchase. The top steps preferred in person were the test drive (69% in 2024, up significantly from 42% in 2023) and price negotiation (43%). Similarly, 71% of sellers got an online offer for their vehicle, but the majority (43%) sold to a dealer, citing the offer price, efficiency and ability to leverage a car in a trade-in among the top reasons.
- High interest rates are not discouraging buyers from financing. Only 11% of buyers said rates deterred them from financing (down from 16% in 2023). Consistent with last year, approximately half financed (53%), with a relatively even split between those who handled the process online (37%), in person (34%) or a combination of both (28%). For those who bought at a dealership, a significantly larger number also secured financing at the dealer (64% compared to 49% in 2023).
“Car buyers and sellers are embracing online tools to build confidence and get exactly what they want—both in terms of what they buy or sell, as well as in the overall experience,” said Alison Ciummei, senior director of product marketing at CarGurus. “Whether that means starting financing online to better understand monthly costs, getting offers to sell a vehicle either online or with a local dealer, or starting their purchase from home, shoppers have recognized the power of data and preparation. This results in consumers who are more prepared before heading to the dealership, dealers who are better equipped to support their customers and, most importantly, greater satisfaction with the experience.”
The full study from CarGurus is available here.