3 Min ReadNovember 1, 2023

Unexpected Inventory Boosts Lead to Improved Purchase Experience

Unexpected Inventory Boosts Lead to Improved Purchase Experience.

Consumer credit continues to tighten. The workforce unrest for the Detroit automakers is just now settling. And for many, the model year is turning over. Yet, none of these factors dented how smoothly car sales transacted in October. The CDK Global monthly Ease of Purchase score ticked to near its highest level, 85%, up from 83% in September as more buyers found the car they wanted in stock.

Ease of Purchase October 2023Despite many factories going dark due to the labor issues crossing the country, inventory levels at dealers are still quite high. That led to 52% of buyers finding the car they wanted in stock, up sharply from September at 47% and last October at 44%. This one factor, a car buyer locating the car they want to buy at the dealer, generally correlates to a higher overall Ease of Purchase score in our survey, which was once again true in October.

CDK researchers took a deeper look by brand and despite the ongoing labor stoppages at various plants, just as many buyers of key domestic brands found what they wanted in stock when compared to import brands not impacted by work disruptions.

Healthier inventory levels also limited the number of dealerships a buyer visited to complete their purchase. Last October, 30% of buyers visited three or more dealers. That number fell to 26% this October. Conversely, nearly one in three buyers (30%) bought their car after visiting just a single dealership, up from 25% last October.

Ease of Purchase October 2023And while more cars on lots helped make taking the test drive easy (80% in October versus 74% in September), the dollars and cents aspects of the purchase process were much thornier. Whether it was agreeing to the final price (60%), applying for credit (61%) or completing the finance process (61%), all dropped from September and remain some of the areas where the fewest respondents said it was easy for them.

Agreeing on the value of a buyer’s trade-in remained flat at 49% but continues to be the worst performing area for buyers and was down from 53% last October. It’s unclear why this is so much lower than agreeing on the final price. It could be due to wildly fluctuating used car prices generating word-of-mouth stories of tremendous payouts for friends and family driving up expectations of those we surveyed when they met reality at the dealership. And while there are some online tools that help shoppers estimate their trade-in value, they generally do sway to the higher end of the spectrum.

The work stoppages might not impact inventories in the long term and in the here and now it seems to have had little impact on buyers. The most concerning area for dealers remains the financial aspect of the deal. If there are steps to address the trade-in process specifically, that would make a significant impact on the overall experience.

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

C R M Reporting. The Key to Success.

CRM Reporting: The Key to Success

Dealers are focused on every lead and every opportunity that comes through their dealership now more than ever. Without clearly...
3 Min ReadOct 11Amber Good
Buyers Point to a Faster Purchase Process in September.

Buyers Point to a Faster Purchase Process in September

The record witnessed with the CDK Ease of Purchase score in August wasn’t repeated in September despite higher inventory levels...
2 Min ReadOct 7David Thomas
Are Retirement Benefits the Answer to Hiring Challenges?

Are Retirement Benefits the Answer to Hiring Challenges?

Hiring and retaining talent is one of the most challenging tasks for dealerships. While a career in automotive offers a...
3 Min ReadOct 1CDK Global
Car Price Negotiation Is Essential for Shoppers and Dealers.

Car Price Negotiation: Essential for Shoppers and Dealers

Haggling, at least for the average consumer, may reach its zenith in the car-shopping process. However, that doesn't mean that...
3 Min ReadSep 27CDK Global
How Dealers Can Win With Trade In Value.

How Dealers Can Win With Trade-In Value

Nearly two-thirds (65%) of car shoppers surveyed in recent study* by CDK said that they ultimately decided to purchase from...
3 Min ReadSep 24CDK Global
The Hybrid Approach Is Popular for Car Purchases.

The Hybrid Approach Is Popular … for Car Purchases

There’s a lot of discussion about hybrid vehicles having a moment. But when it comes to buying a car, more...
3 Min ReadSep 19CDK Global
Closing the Dealership Gender Gap.

Closing the Dealership Gender Gap

While women have an outsized influence on car purchase decisions, they’re a clear minority of car dealership employees. According to...
4 Min ReadSep 10CDK Global
Ease of Purchase Score Hits Record High in August.

Ease of Purchase Score Hits Record High in August

CDK has tracked how easy car buyers say it is to purchase a car for over two years. Last month...
2 Min ReadSep 4David Thomas
The Test Drive’s Enduring Value for Dealers.

The Test Drive’s Enduring Value for Dealers

If you had any doubt about the power of the test drive, a recent study* by CDK should put it...
4 Min ReadAug 28CDK Global
Generation Z Workers at Dealerships Want a 4 0 1 K and Feedback.

Gen Z Workers at Dealerships Want a 401K and Feedback

In the 2024 CDK Dealership Workplace Study, respondents told us how satisfied they were with their jobs and benefits. And...
3 Min ReadAug 26David Thomas