Despite significant investment in digital platforms, the automotive industry is finding that consumers are largely resisting a complete shift to online car buying. While many initially express interest in the convenience of a fully online transaction, the vast majority still prefer the traditional in-person experience.

Cox Automotive data released this month revealed a significant gap between intention and action. Twenty-eight percent of car buyers initially intended to complete the entire purchase online, but only 7 percent actually followed through. This means that more than half of all car purchases are still conducted entirely in person. This reluctance to fully embrace digital channels is further underscored by a separate survey from last fall, which found that just over half of car buyers preferred to physically sign paper documents. Another survey in December showed that 86 percent of buyers still want to physically inspect a vehicle before purchasing.

This preference for in-person interaction has significant implications for the automotive industry. Dealerships, despite investments in online sales tools, remain crucial to the car buying process. Companies like Cox Automotive, which develop digital sales products for dealerships, are navigating a complex landscape. Their products aim to facilitate online transactions, but the low completion rate suggests that these tools are primarily used to augment, rather than replace, the traditional dealership experience.

Cox Automotive, a research firm and digital auto sales product developer, possesses unique insight into consumer buying patterns. Their position gives them a stake in the outcome of the digital transformation of car sales. Erin Lomax, Vice President of Consumer Marketing at Cox Automotive, noted that consumers still value the ability to see, feel, and test drive a car before making such a significant financial commitment.

Looking ahead, the automotive industry will likely continue to adopt a hybrid approach, blending online tools with the traditional dealership experience. The challenge lies in optimizing the online experience to address consumer concerns about transparency, vehicle condition, and the ability to physically inspect and test drive a car. The future of car buying appears to be less about a complete digital takeover and more about integrating digital tools to enhance the in-person experience.