Some Purchase Steps Slip as Car Inventory Booms

Car shoppers hit dealerships in droves this December and nearly nine out of 10 (88%) said the purchase experience was easy. That high Ease of Purchase score is down slightly from November’s 91% but is still historically on the higher side of results. But despite the positive overall vibes from shoppers, the numbers weren’t as glowing when we asked about specific steps in the purchase process.

Two of the most frustrating aspects customers point to when buying a car are negotiating the price and agreeing on a trade-in value. Over the past few months, we’d seen improvement in both of these areas but in December, things seemed to regress a bit.

Last month, 71% of buyers said negotiating their new car’s price was easy. That dropped a full 10 percentage points to 61% in December and was lower than October’s 67% as well. It’s up slightly from 59% last December.

And on the trade-in side, less than half (49%) of respondents said it was easy to agree on the value of their old ride. That’s down significantly from 56% in November and was even higher, 60%, in October. It’s, unfortunately, exactly the same as it was in December of 2023.

This regression was across the board whether it was applying for credit, down five percentage points from November; completing the financing process, down eight percentage points; or even taking the delivery of the vehicle, which was down just two percentage points.

With all these steps backward, why was the overall Ease of Purchase score so high? It’s likely because far more shoppers said they completed the process faster than they expected. That number hit 29% in December, one of the highest scores we’ve seen and up from 20% in November and 21% from December 2023. The number of people who said it took longer than they expected also fell from 31% last month to 24% in December.

The whole process also took place predominantly at a single dealership. The number of people who went to just one store ticked up slightly to nearly half (49%) from 45% last month and up significantly from last December (36%). This is likely because more than half (54%) of buyers found the vehicle they wanted in stock and another 12% found an alternate selection on hand as well. While more people were able to find their first choice last month (62%), these figures still demonstrate the impact of having a large selection of inventory on the lot.

As the industry revs into 2025 on higher monthly sales, the focus should remain clearly on inventory along with incentives, which have proven to help get shoppers off the sideline.