Despite significant investment in digital platforms, the automotive industry is finding that consumers are still largely resistant to completing car purchases entirely online. While many buyers begin the process with the intention of buying online, the vast majority still prefer the traditional in-person experience.

Cox Automotive data released this month revealed a significant drop-off in online car buying. Initially, 28 percent of car buyers expressed a desire to complete the entire transaction online. However, only 7 percent ultimately followed through. This indicates a substantial 21-percentage-point gap between initial interest and actual online purchase completion. In contrast, over half of all car buyers still finalize their purchases entirely at a dealership. Another survey indicated that just over half of car buyers preferred to physically sign paper documents.

This reluctance to fully embrace online car buying has significant implications for the automotive market. Dealerships, despite investments in online infrastructure, retain a crucial role in the sales process. Companies like Cox Automotive, which develop digital sales tools for dealerships, must adapt their strategies to accommodate the enduring preference for in-person interaction. The findings suggest that the industry's expectation of a rapid shift to online car sales may have been premature.

Cox Automotive, a research firm and digital sales product developer, offers tools that allow dealerships to initiate transactions online. The company's insights into buying patterns are valuable, but it also has a vested interest in the evolution of car sales. Erin Lomax, Vice President of Consumer Marketing at Cox Automotive, noted that consumers still prioritize the tactile experience of seeing, feeling, and test-driving vehicles before making a purchase.

Looking ahead, the automotive industry will likely need to adopt a hybrid approach that blends online and offline experiences. Dealerships may focus on leveraging digital tools to enhance the in-person experience, rather than attempting to replace it entirely. This could involve online research and pre-approval processes, followed by a physical visit to finalize the purchase. The challenge for automakers and dealerships will be to create a seamless and integrated experience that caters to the evolving preferences of car buyers.