Summary of Findings:
The new study by AutoTrader.ca reveals an increase in cross-shopping behavior among car buyers. Consumers are using online marketplaces more frequently as a resource for both new and used vehicles, with 77% of used vehicle buyers and 42% of new vehicle buyers relying on these platforms for information. New vehicle buyers tend to visit dealership (43%) and manufacturer (50%) websites more, but a growing number are also turning to online marketplaces.
Key Takeaway:
Cross-shopping is becoming more prevalent as buyers compare prices, monitor vehicle availability, and gather information. Dealers and manufacturers should focus on engaging potential customers across multiple channels, both for new and used vehicles, to maximize reach and drive sales.
Trend:
The major trend is increased use of online automotive marketplaces for vehicle shopping. Consumers are turning to these platforms more frequently to compare options and make more informed decisions.
Consumer Motivation:
Buyers are motivated by the need to compare prices, monitor availability, and gather comprehensive vehicle information before making a purchase.
What is Driving the Trend:
The ease of access to information, a wider range of vehicle options, and the convenience of price comparisons are driving more buyers to rely on online marketplaces and cross-shop between new and used vehicles.
People Article Refers to:
The article references AutoTrader.ca and its findings regarding car buyers, including their frequency of visits to online marketplaces and their shopping behaviors.
Product or Service Description:
The study focuses on online automotive marketplaces such as AutoTrader.ca, where buyers research, compare, and monitor the prices and availability of both new and used vehicles.
Age of Consumers:
While the article does not specify age groups, the emphasis on digital tools like online marketplaces suggests it applies to a broad range of tech-savvy consumers, including Millennials and Gen Z.
Conclusions:
Dealers and manufacturers must tailor their strategies to cater to both new and used vehicle buyers, leveraging online marketplaces more effectively to engage customers and increase their reach.
Implications for Brands:
Automakers and dealerships should invest in online advertising for both new and used inventory to engage the growing number of cross-shopping consumers. Price transparency and competitive pricing strategies should be a priority.
Implications for Society:
This trend reflects a broader societal shift toward digital shopping and a more informed consumer base that values comparison shopping before making major purchases like vehicles.
Implications for Consumers:
Consumers benefit from having access to more options, price comparisons, and detailed information through online platforms, allowing them to make better-informed decisions.
Implications for Future:
The continued growth of digital marketplaces and cross-shopping behaviors will likely drive further innovation in how dealerships and automakers present their inventory online, with a focus on price transparency and personalized offers.
Consumer Trend:
Digital convenience in car shopping, with consumers increasingly relying on online marketplaces to research and compare vehicles.
Consumer Sub-Trend:
The rise in cross-shopping between new and used vehicles as consumers seek the best deals and most comprehensive information before committing to a purchase.
Big Social Trend:
The digitalization of major purchases is becoming the norm, with more buyers using online platforms for research, price comparisons, and decision-making.
Local Trend:
In Canada, there is a significant increase in reliance on online automotive marketplaces for purchasing both new and used vehicles, a trend that is also visible in other markets.
Worldwide Social Trend:
The global shift towards e-commerce and digital tools in all aspects of consumer shopping, including big-ticket items like cars, is driving more people to engage in online research and cross-shopping.
Name of the Big Trend:
Digital Cross-Shopping in the automotive market, where consumers utilize online platforms to explore both new and used vehicles simultaneously.
Name of Big Social Trend:
The trend of Digital Consumer Empowerment, where buyers rely on online tools to gain more control over their shopping experience.
Social Drive:
The desire for price transparency, ease of access, and the ability to compare options is fueling the trend of cross-shopping online for vehicles.
Strategy Recommendations for Companies in 2025:
Embrace Digital Marketplaces: Invest in advertising and inventory management on online platforms like AutoTrader.ca to reach both new and used car buyers.
Offer Price Transparency: Use price badges and other tools to enhance price clarity, making it easier for consumers to compare and trust your offerings.
Personalize Consumer Engagement: Tailor your online content, including ads and promotions, to cater to the cross-shopping behaviors of customers.
Strengthen Online Presence: Enhance OEM and dealership websites with real-time updates on inventory and pricing to attract consumers who value convenience and detailed information.
Final Sentence:
Dealerships and automakers should focus on enhancing their digital presence across online marketplaces, emphasizing price transparency and cross-shopping convenience to meet the growing demand from savvy, informed car buyers in 2025.
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