3 Min ReadFebruary 3, 2023

Car Buyers Still Not Finding What They Want in Inventory

Car Buyers Still Not Finding What They Want in Inventory

Car sales picked back up in January and the Seasonally Adjusted Annual Rate (SAAR) landed at 15.7 million according to NADA. Despite a prevailing sentiment that new car inventory is returning to the lots, our Ease of Purchase monthly survey of car buyers indicates shoppers are having difficulty finding the car they want.

The number of shoppers who said the vehicle they wanted was in stock fell from 42% in December to 36% — the lowest we’ve seen since starting this survey in July 2022. And these shoppers had to visit more stores to find the car they wanted.

43% of the shoppers we surveyed had to visit at least two dealerships, and in December, those needing to visit four or more stores increased to 7% from 4%. Only 28% found the car they wanted at a single dealership, dropping from 30% in December.

stats

The hunt for the right car, it seems, is still a difficult one. When we began this research, we did not expect to see the number of car buyers who ordered from the factory or in transit to remain this high. In December, the numbers significantly rose from 50% to 55%, giving us the highest percentage we've seen to date.

Another surprising finding in this month’s results is that while 82% of respondents categorized the process as easy — up from 80% last month — they felt that the specific parts of the buying process weren’t quite as rosy. Nearly all of them in fact.

In terms of finding the vehicle they hoped to purchase, 65% considered it easy, compared to 69% in December, emphasizing those pesky inventory issues.

And with the exception of filling out forms, which remained flat, every other step in the process also saw a drop. The most significant change was in applying for credit, with just 57% of shoppers saying it was easy, down from 64% last month. This is likely due to continued pressures on interest rates and fewer financing deals being offered by automakers. It’s possible more shoppers had to take an extra step to find affordable rates outside the dealership at their bank or local credit union where rates have remained more stable. More leg work on the shopper’s part could lead to this lower score.

stats

Another puzzling finding in January was that more people said they spent less time than they expected purchasing a car, while there was nearly the same increase in people saying it took more time. That meant the number of people who said it took the amount of time they expected fell from 47% to 43%.

While you could classify all of this month’s results as perplexing, it’s clear that inventory issues are not behind us as an industry, and focusing on the purchase process can’t falter along with it. If shoppers are more prepared for longer searches and educated on the current state of credit and how to navigate it, we should see these numbers climb in the months ahead.

Share This

David Thomas
By David Thomas
Director, Content

David Thomas is director of content marketing and automotive industry analyst at CDK Global. He champions thought leadership across all platforms, connecting CDK’s vast expertise to the broader market and trends driving our industry forward. David has spent nearly 20 years in the automotive world as a product evaluator, journalist and marketer for brands like Autoblog, Cars.com, Nissan and Harley-Davidson.

Recent Insights

Dealership Desking Tactics to Win Over Modern Buyers.

Dealership Desking Tactics to Win Over Modern Buyers

Today, the ideal desking process is built around the modern retail experience that includes the work a customer does online,...
3 Min ReadSep 19CDK Global
EV Confusion Carries On

EV Confusion Carries On

As automakers continue to churn out electric vehicles (EVs) to compete with Tesla, the share of EVs keeps building. Yet,...
2 Min ReadSep 12CDK Global
Talking About a Different EV Bubble

Talking About a Different EV Bubble

The elevation of electric vehicles (EVs) to the top of the automotive food chain has been taking its time. On...
3 Min ReadSep 12Barb Edson
Plug in Hybrids Remain a Solid Bridge to electric vehicles.

Plug-In Hybrids Remain a Solid Bridge to EVs

Electric vehicles (EVs) are here and more are coming to get the world to a zero-emission future. But the slow...
3 Min ReadSep 12David Thomas
Buying a Car Gets Only Slightly Easier in August.

Buying a Car Gets Only Slightly Easier in August

July saw some of the biggest drops ever in our monthly Ease of Purchase Survey. Buyers were frustrated across the...
3 Min ReadSep 5David Thomas
Avoid Top Online to In Store Modern Retail Mistakes.

Avoid Top Online-to-In-Store Modern Retail Mistakes

Are your sales managers and employees fumbling with buyers who prefer to do some of the purchase steps online? Or...
3 Min ReadSep 1CDK Global
Modern Retail Benefits Dealers and Puts Customers in the Driver’s Seat Faster

Modern Retail Benefits Dealers and Puts Customers in the Driver's Seat Faster

Buying a vehicle is a big deal. Even the most routine car sale requires a series of steps including research,...
4 Min ReadAug 30CDK Global
How an Automotive CRM Can Enhance the Customer Experience

How an Automotive CRM Can Enhance the Customer Experience

The journey to purchase a car is ever evolving, and the spotlight is shining bright on customer experience. Believe it...
3 Min ReadAug 21Jessie Hammonds
Dealers Aren't Speeding Up Sales

Dealers Aren’t Speeding Up Sales

For the past year, CDK Global has been surveying car buyers each month to gauge how easy the car buying...
3 Min ReadAug 17David Thomas
CDK Dealership Xperience: Made for a Fast-Moving World

CDK Dealership Xperience: Made for a Fast-Moving World

I was flipping through movies to watch recently and happened upon Ferris Bueller’s Day Off. And as I chuckled remembering...
4 Min ReadAug 11Brian MacDonald