Auto Dealers Remain Centerpiece of the Purchase Process

RADIO ONLINE | Monday, July 10, 2023 | 11:41am CT

Cumulus Media

As the auto market continues to recover, Cumulus Media sought an in-depth understanding of Dallas-Ft. Worth auto buyer. The Cumulus Media | Westwood One Audio Active Group retained MARU/Matchbox to conduct a study in March-April, 2023 of 600 recent auto buyers. 77% of prior year new car buyers purchased from an auto dealer. 23% used an online car retailer or an online marketplace. Despite all of the online purchase options, nearly four out of five new vehicles were purchased at a Dallas-Ft. Worth auto dealer.

This week's blog outlines further key findings:

• Auto dealers remain the centerpiece of the research process: The top two most used research methods are in-person auto dealer shopping and dealer websites.

• 40% of prior year purchasers were undecided on their vehicle prior to the purchase process. These findings mirror an auto buyer study conducted by Nielsen in Los Angeles in 2016.

• Dealers must "be known before they are needed": 81% of prior year purchasers were aware of the dealer prior to their purchase.

• The auto buying process takes nine hours of research. Some spend over ten hours. Prior year auto purchasers report spending 9.2 hours researching their vehicle. Women spent an additional hour on research compared to men. Consumers over the age of 50 report spending 10.4 hours researching vehicles.

• Auto buyers say the in-person dealer purchase process takes five hours.

• The in-person auto dealer experience is important: The further into the purchase process, the greater the need for an in-person scenario. While two out of four report their make/model decision occurred online, half say make/model decisions occurred in person at the dealer. Over 70% report financing, trade in, price negotiation, and purchase completion occurred at the dealer.

• Nielsen Scarborough: AM/FM radio delivers +25% more auto buyers than television.

• AM/FM radio reaches +13% more auto intenders than linear TV. Dallas-Ft. Worth AM/FM radio reached nine of ten auto intenders, +13% more than television, according to Nielsen Scarborough.

• Nielsen Media Impact: A dealer not advertising on AM/FM radio would generate a massive +31% increase in auto intender reach by shifting 20% of their TV budget to AM/FM radio.