COX AUTOMOTIVE

CAR BUYER JOURNEY STUDY:

PANDEMIC EDITION
Media Summary / February 2021
Research & Market Intelligence
 Study Background & Methodology
Background
• Cox Automotive has been researching the car buying journey for 11 years to
monitor key changes in consumer buying behaviors

Goal
• Inform strategic decisions for Cox Automotive and OEM & Dealer clients

In-Field Dates
2,010
3,016
• September 10 – September 22, 2020
New Buyers

Respondents
• Buyers/Lessees that took ownership between mid-March and September 2020
Recent Vehicle Buyers 1,006
Used Buyers
• Used the internet during the shopping/buying process
• Results are weighted to be representative of the buyer population

2
2020 Buyer Profile

Total New (A) Used (B) Total New (A) Used (B)
Male 51%Ç 62%BÇ 48%Ç Income Under $75K 42% 30%È 45%A
Female 49%È 38%È 52%AÈ Income $75K+ 58% 70%BÇ 55%
Avg Age 50 53 49
Have Children 51%Ç 47%Ç 53%A
Gen Z (1996-2011) 2% 1% 2%
Millennial (1982-1995) 24% 20% 25%A
Gen X (1965-1981) 38% 34% 39%A
2020 Pickup Truck Purchase 2020 Segment Market Share
Baby Boomer (1946-1964) 30% 37%B 29% (among Male Buyers) (Change from 2019)
Pre-Boomer (Pre-1946) 6% 9%B 5% 59% (+14)Ç Pickups +3%Ç
White/Caucasian 88% 89% 88%
African American or Black
SUVs +2% Ç
7% 4% 8% 2020 Pickup Truck Purchase
Hispanic 11%Ç 13%Ç 11%Ç (among Hispanic Buyers) Cars -4% È
Asian 3% 5%B 3% 11% (+7)Ç
*Ethnicity/Race & Income excludes prefer not to answer.
Letters indicate significant difference between New and Used at the 95% confidence interval.
Arrows indicate significant difference to prior year at the 95% confidence interval.

Source: Cox Automotive CarEdit Master

Buyer text styles
Journey - 2020 3
 Our Consumer Segments

The Guarded The VIP The Informed The Experiencer The Straight Shooter
Inexperienced and View their car as a Prefers the finer things in Enthusiastic about cars Well-versed in vehicle
cautious about car reflection of their social life View car buying as buying process
shopping status Meticulous and maximize opportunity to learn Would never buy a car
Practical and sticks to Put limited effort in their effort in their car shopping they felt they couldn’t
budget car shopping afford

More likely to be More likely to be More likely to be Gen X More likely to be older More likely to be Gen X or
Millennials Millennials Most likely to be a Millennials Boomers
More likely to be single More likely to have kids Suburbanite Most likely to be Urbanite More likely to be a
Gender neutral More likely to be male More likely to be male More likely to be male Suburbanite
More likely to have <$75K Equal distribution of More likely to have >$75K More likely to have >$75K Gender neutral
HHI < and >$75K HHI HHI HHI More likely to have <$75K
HHI
EditProfiling
Source: 2020 Cox Auto Consumer Segmentation Master text styles
Research 4
 “In Market” in 2020

Buyer Segment
be…
The Straight Shooter Straight Shooters tend to
15% 30%

The Informed
• Likely Gen X or Boomer
25%27%
• Experienced buyers
The VIP
21% 23%
• Financially responsible
The Guarded
K
• Household income <$75
18% 28%

The Experiencer 5% 10%

2018 mid-March to Sept 2020

2020 saw a spike in pragmatic, experienced buyers, such as The Straight

Shooters, while cautious and novice buyers – The Guarded and The
Experiencers – tended to steer away from the market.
+ Not Sure removed.

Green and Red Circles indicate significant differences from 2018 at the 95% confidence interval.

Source: Cox Automotive CarEdit Master

Buyer text styles
Journey - 2020 5
In 2020, the Global Pandemic…

1) Shifted Purchase Motivation

2) Revolutionized the Buying Process

Research & Market Intelligence 6

 Overall: Higher Satisfaction and a Shorter Purchase Process…

% of Buyers Satisfied Time Spent in Purchase Process

with Shopping Experience

74% Ç
72% Ç
13h 13mÈ 14h 53m
2020 2019
69% 71% Ç
66% 66%
62% 62% NEW BUYER USED BUYER
61%
60%
60%
60%
11h 11m È 13h 49m È
58%
59% 2020 2020
58%
2019 11h 56m 2019 15h 53m

Total New Used

A B

Drivers • Shifted Purchase Motivations

2016 2017 2018 2019 2020
of Change • Revolutionized Buying Process
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.

Source: Cox Automotive CarEdit Master

Buyer text styles
Journey - 2020 7
 …With Decisive Buyers Spending Less Time Shopping Online

Source:
Time Cox Researching
Spent Automotive Car &
Buyer JourneyOnline
Shopping Top Reasons
For Less Time Online

7h 14m È 9h 29m 1. Already knew what they wanted

“With our previous vehicle, we weren't sure
2020 2019
which one to go with, but with this purchase, I
knew exactly what I wanted in a vehicle and
NEW BUYER USED BUYER the make & model.”

5h 34m È 7h 44m È “There was less searching the internet for

makes, models, etc. We had decided ahead of
2020 2020
time what we wanted, if available.”
2019 6h 44m 2019 10h 25m
2. Attractive offer

3. Dealer reached out with offers

Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.

Source: Cox Automotive CarEdit Master

Buyer text styles
Journey - 2020 8
 In 2020, Purchase Motivation Driven More by “Want”. . .

% of Buyers Purchasing
Because They “Want” a Vehicle
(vs. “Need” a Vehicle) BC
57%

BC
New 51% BC 51% BC
A
48%
BC 49%

44%
Total 41%
B
38% 39%
36% 37% 37%
Used
C 34% 34%
32%

2016 2017 2018 2019 2020

+ Not Sure removed.

Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.

Source: Cox Automotive Car Buyer Journey - 2020 9

 . . . And Buyer Certainty Increased

% of Buyers Who Knew Exact Vehicle They

Wanted at Start of Shopping Process

Strategize a plan to maintain a comprehensive

35%
2018
online presence that includes party
(29%)*
sites

Intensify the urgency in offers and

Total
strategically feature messages around
New (A) 2018 Used (B) 2018
special45%
deals
Ç
and vehicle
(38% )*B
attributes
32%Ç (26%)* B

+ Not Sure removed.

*Not asked in 2019 survey.

Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.

Source: Cox Automotive Car Buyer Journey - 2020 10

 More Shoppers Considered Both New and Used in 2020

% of Buyers Who Considered Both

New and Used Vehicles

Strategize a plan to maintain a comprehensive

57%
2019
online presence that includes party
(53%)
sites

Intensify the urgency in offers and

Total
strategically feature messages around
New (A) 2019 Used (B) 2019
special 30%
deals and vehicle
(32%)
attributes
66%AÇ (60%)

+ Not Sure removed.

Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.

Source: Cox Automotive Car Buyer Journey - 2020 11

 In 2020, COVID-19 Safety Concerns Motivated Buyers to Grow Their Garage

Purchase Trigger Was

Usage of Transportation Mediums “Needed Additional
88% 88%
Vehicles in Household”
Pre-COVID During COVID

13% vs. 8%
56%
Used New
48%

29% 31% More than 1 in 4

24% Vehicle Shoppers
20%
15% 12% Who Plan to Add
Another Vehicle to
their Household Cited
Personal Vehicle Ride-Sharing Public Transportation Taxi Car-Sharing
They No Longer
% WHO SAY “VERY RISKY FOR COVID” Want to Use Other
2% 32% 56% 39% 34% Transportation*
Arrows indicates significant difference since last wave or compared to other measures.

Source: 2020 Cox Automotive COVID-19 Consumer Impact Study; Cox Automotive Car BuyerEdit Master
Journey text styles
Study - 2020 12
New Buyers Were Enticed by Attractive Deals . . .
Top 5 Purchase Triggers

NEW BUYERS
1. Previous vehicle had high mileage
2. Wanted a vehicle with certain features

3. Promotional Offer – Attractive Deals

(17% Post-COVID vs. 11% Pre-COVID)
4. Wanted/Needed a different vehicle type
5. Lease expired

USED BUYERS
1. Previous vehicle had high mileage
2. Previous vehicle was unreliable or expensive to repair
3. Wanted/Needed a different vehicle type
4. Wanted a vehicle with certain features
5. Previous vehicle was damaged

Source: Cox Automotive Car Buyer Journey - 2020 13

 . . . While Trust in “The Deal” Improved

% of Buyers Who Trust the Dealership/ Trust the Dealer Gave the Best Deal Across Time+
Retailer Gave Me the Best Deal
71%Ç 68%
61% 61%
New
Sept 2018 to 61% 64%

64%
59%
Ç Aug 2019 55%
Timeframe Used
(57%)

Sept 2018 to Sept. 2019 to March to June to

Total Aug 2019 Mid-March 2020 May 2020 Sept. 2020
Heavy Incentives
New (A) Used (B) Timeframe
69%BÇ 63%Ç

TRUST DEALER Lessees New Purchasers CHEVROLET

TOYOTA
GAVE BEST DEAL… 69% (+7) 69% (+8)
64% (+8) 72% (+12) 70% (+2) 57% (-5) 73% (+11)

+ Not Sure removed.

Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.

Source: Cox Automotive CarEdit Master

Buyer text styles
Journey - 2020 14
In 2020, the Global Pandemic…

1) Shifted Purchase Motivation

2) Revolutionized the Buying Process

Research & Market Intelligence 15

 Third-Party Sites Remain Popular Among Vehicle Buyers

Total Vehicle Buyers First And Last Website Visited

(Among Buyers Visiting Multiple Websites)

5% Ç 3%
5%
13% 6%

78%
9%
New Form Online Retailer
53% Google Search
Cox OEM Sites
56% Automotive
19% Third-Party Sites
of vehicle buyers visited at Cox
least 2 websites Automotive Dealership Sites+
23%
33%
17%

First Last

Third Party excludes Carvana.

+Dealership includes CarMax.
New Form Online Retailer is primarily Carvana.
*Data points exclude “Social Sites”, “Other Sites”, and “Not Sure” from analysis.
Arrows indicate significant differences from previous timeframe at the 95% confidence interval.

Source: Cox Automotive CarEdit Master

Buyer text styles
Journey - 2020 16
 In 2020, Dealership Visitation Dipped to an All-Time Low . . .
Number of Dealerships Visited

2.7
Total 2.4
Ç
2.3 2.3 Ç
2.0

2.6 2.5
2.4
2.2
Ç
New 2.0
Ç

2.8
Ç
2.4 2.4
Used 2.2 2.1
Ç

2016 2017 2018 2019 2020

Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.

Source: Cox Automotive Car Buyer Journey - 2020 - 2020 17

 . . . While New Form Online Retailing Grew

Automotive Website Category Usage

79% 79% 78% 79%

76%
Third Party*

60% 61% 61%

Dealership 56%
52% È

OEM 29% 27%

25% 26% 24%
17%Ç
11% Ç
New Form 7% Ç
Online 3%
N/A
Retailer
2016 2017 2018 2019 2020

*Third Party excludes Carvana.

New Form Online Retailer is primarily Carvana.
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.

Source: Cox Automotive Car Buyer Journey - 2020 18

 Time Spent at Dealerships Reached a Record Low in 2020. . .

Total 2:55 2:58 “I interacted by phone with my

2:53 salesman and told him the type of
2:55 vehicle I was looking to buy. I was
Used
2:47 2:50 able to test drive immediately
New 2:53 2:50 without having to look at their
2:51 whole inventory on the lot.”
2:48

2:42 2:37 Ç
2:37 Ç
2:40 2:35
Ç “No price negotiation. We had
already paid and taken care of
most things online - just
needed to pick up the car!”

2016 2017 2018 2019 2020

+ Outliers Removed.

Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.

Source: Cox Automotive CarEdit Master

Buyer text styles
Journey - 2020 19
 . . . While Satisfaction Reached an All-Time High

% of Buyers Satisfied
with Dealership Experience

79% Ç
77% Ç
73% 76% Ç
72%
New 70%
A 69%
67%
Total 67% 64% 69%
Used 66%
B 61% 65%

60%

2016 2017 2018 2019 2020

+ Not Sure removed.

Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.
Letters indicate significant differences between New and Used at the 95% confidence interval.

Source: Cox Automotive Car Buyer Journey - 2020 20

 Dealership Experience Became More Streamlined . . . and Satisfying

% of Buyers Satisfied in 2020*

( ) = year-over-year change

Trust Dealer
How Long the Interactions The Price Interactions Selection of The Test Drive
Gave the
Process Took with Finance Paid with Sales Vehicles Process
Best Deal

Total 57% 69% 64% 74% 76% 69% 81%

(+10%)Ç (+9) Ç (+7) Ç (+7) Ç (+6) Ç (+6) Ç (+3) Ç
New (A) 62%B (+14) Ç 71% (+9) Ç 69%B (+8) Ç 74% (+6) Ç 78% (+5) Ç 70% (+1) 83% (+5) Ç
Used (B) 56% (+10) Ç 68% (+8) Ç 63% (+8) Ç 74% (+8) Ç 75% (+6) Ç 68% (+7) Ç 81% (+3)
*In-field dates: September 10-22, 2020
Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval.

Source: Cox Automotive CarEdit Master

Buyer text styles
Journey - 2020 21
 Heavy Digital Buyers were the Most Satisfied . . .

Overall Satisfaction with Shopping Experience

Light Digital Heavy Digital

Total
(0% - 20% of steps (51%+ of steps
entirely online) entirely online)
(A) (B)

72% 70% 77%A

(% ranking 8-9-10 on scale of 1-10)

Trends are similar across New and Used Buyers.

Letters indicate significant differences between DR categories at the 95% confidence interval.

Source: Cox Automotive Car Buyer Journey - 2020 Edit Master text styles 22
 . . . And Saved Time at the Dealership

AVERAGE TIME SPENT…

Heavy Light
Impact
Digital Buyer* Digital Buyer*
Browsing Vehicles/
Interacting with Sales 38min 45min - 6min

Test Drive 21min 26min - 5min

Negotiating Price/
Trade-in Offer 21min 32min - 11min

Discussing &
Signing Paperwork 33min 50min - 17min

Vehicle Delivery 14min 16min - 2min

*Heavy Digital Buyer = 50%+ activities completed online; Light Digital Buyer = <20% of activities completed online

Edit Journey
Source: Cox Automotive Car Buyer Master text styles
- 2020 23
 Ultimately, Digital Retailing Drives Higher Loyalty and Trust, Particularly with New Vehicle Buyers

ATTRIBUTE New Used

Light (A) Heavy (B) Light (A) Heavy (B)

A
BRAND LOYALTY 70% 77% 58% 58%

A
DEALER LOYALTY 48% 63% 30% 28%

A
TRUST IN THE DEAL 65% 76% 63% 70%

+Not Sure excluded.

Letters indicate significant differences between DR categories at the 95% confidence interval.

Source: Cox Automotive CarEdit Master

Buyer text styles
Journey - 2020 24
Key Takeaways: 2020 Car Buyer Journey: Pandemic Edition

Pandemic Shifted Purchase Motivations Pandemic Revolutionized Buying Process

Online Research Accelerated Online Retailers Became More

by Decisive Buyers Mainstream

Attractive Deals on New Vehicles Helped Streamlined Process Delivered

Trigger the Market Recovery Higher Buyer Satisfaction

Higher Digital Retailing Engagement

Used Purchases Were Spurred
Proved to Build Trust, Save Time and
by COVID-19 Impact
Impact Loyalty

Source: Cox Automotive CarEdit Master

Buyer text styles
Journey - 2020 25
For more information, or to obtain a copy of the full 2020 Car Buyer Journey
Study: Pandemic Edition, contact:

Dara Hailes
Manager, Public Relations
Cox Automotive
dara.hailes@coxautoinc.com

Mark Schirmer
Director, Public Relations
Cox Automotive
mark.schirmer@coxautoinc.com

26
Research & Market Intelligence