CarGurus Study Uncovers Shift in Car Shopper Sentiment as Prices and Selection Improve

Core Insights - The CarGurus 2024 U.S. Consumer Insights Report indicates rising consumer satisfaction and buying power, with more shoppers utilizing online tools for their purchasing decisions [1][6] Group 1: Consumer Trends - Buyer satisfaction has increased, with 79% of car buyers satisfied with their experience, and 35% extremely satisfied, up from 28% in 2023 [3] - Seller satisfaction also rose, with 78% of sellers feeling they received a "good" or "great" deal, an increase from 70% in 2023 [3] - The percentage of buyers making need-based purchases declined from 67% in 2023 to 62% in 2024, while those looking to add a vehicle increased from 27% to 34% [3] Group 2: Online Engagement - A significant shift towards online engagement is noted, with 80% of buyers preferring to handle more steps online, up from 69% in 2023 [4] - 90% of buyers conducted vehicle research online, compared to 81% in 2023, and 87% of sellers were open to selling completely online, an increase from 82% [4] - Despite the preference for online processes, 88% of buyers still preferred to see the car in person before purchase, with 69% wanting to test drive [4] Group 3: Financing Insights - High interest rates have not deterred financing, with only 11% of buyers indicating that rates discouraged them, down from 16% in 2023 [5] - Approximately 53% of buyers financed their purchases, with 37% handling the process online and 34% in-person [5] - A notable increase in dealership financing was observed, with 64% of buyers securing financing at the dealership, compared to 49% in 2023 [5] Group 4: Market Conditions - New car inventory rose by 31% year-over-year, contributing to moderated prices, while average used car prices decreased by 3% [2] - The importance of available inventory in purchase decisions decreased, with only 26% citing it as a top factor, down from 18% in 2023 [2] - Price considerations remained paramount, with 56% of buyers prioritizing price and 30% focusing on financing availability [2]