EY Index: One in four buy cars online; dealerships crucial for transition to EVs

Car buyers are more likely than ever to complete their purchase online with 25% of respondents looking to buy through manufacturer or third-party websites. At the same time, the preference for completing a purchase in a dealership rose to 61% while the remaining respondents were undecided.  

According to retail insights from the latest EY Mobility Consumer Index (MCI), which surveyed 15,000 consumers across 20 countries, online tools for pre-sale and vehicle research continue to become more popular with 87% of respondents saying they use online tools for information gathering about their potential purchase. The dealership, however, remains an important part of the process, with 66% saying they want to physically experience the car at a dealership and 61% saying they want to complete the purchase there, a number that has risen steadily from 54% in 2021.  

“We’ve known for a while that the way people buy cars is changing and the surge in preference for buying online in the last two years confirms that. However, for all the digitalization of the car buying process that has taken place, the role of a dealership remains important for the majority of consumers. People are still looking for human interaction and to see the vehicle in person as part of the purchase process. They want to kick the tires, they want to experience the vehicle they’re going to buy and they want to look someone in the eye when they shake their hand and pick up the keys.

There has been a lot of talk about the death of the dealership, but reports of their demise seem to be quite premature. What we’re looking at it is a move to a hybrid approach. Buyers want to use online tools to help narrow down their search and understand the buying landscape, but when it comes to experiencing the vehicle, sorting out paperwork, and the final sale, dealerships remain the favored option,” says Randy Miller, EY Global Advanced Manufacturing & Mobility Leader.

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Convincing the EV skeptics

The data also shows that dealerships are essential in the move toward electric vehicles (EVs), as those profiled as “EV skeptics” are committed users of dealerships, even for the pre-sale element of the purchase, with 67% of respondents saying they would conduct research through a salesperson at a dealership (overall average of 50%) and 75% saying they want to experience the vehicle in-person before buying it (overall average 66%).

Miller says: “For some buyers, moving from a traditional gas engine to an electric vehicle is a big leap. We know from our data that there are several reasons for this; from concerns about range to charging issues to cost. Therefore, education is vital to help assuage these concerns, and given most of the EV skeptics prefer to use dealerships, that is where this education is going to need to happen most. Direct interactions at dealerships will allow salespeople to tailor their approach to the individual concerns and preferences of each skeptic. If manufacturers want to capture this market and move them into buying EVs, the dealership is going to remain an essential part of the buying journey from start to finish.”