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Understanding how the car buying journey evolves overtime aids with establishing specifically when, where and how to attract the right buyers to your inventory listings. Our latest Path to Purchase study, conducted by Dig Insights, deep dives the car buying experience of both used and new Canadian car shoppers who purchased a vehicle in the past six months, deep diving the specifics of their purchasing behaviour and patterns, and how these trends have changed since we last conducted research in 2022.

One of the top reasons both new and used car buyers embarked on their car buying journey was to replace a current vehicle that was getting too old, as reported by 31% of used buyers and 33% of new. A surprisingly large number, 25% of used and 39% of new shoppers, also wanted simply to upgrade to something nicer or newer. Another common trigger was the need to accommodate new travel or commuting needs, with this being a reason to purchase a vehicle for 25% of used and 20% of new shoppers.

Triggers to Purchase a Vehicle
Used & New Vehicle Cross-Shopping

Both new and used vehicle shoppers typically purchase a car within three months. They aren’t necessarily going in with a clear path in sight during this period as cross-shopping is a relatively common practice. In the study, 47% of used shoppers had also considered a new vehicle, while 36% of new car shoppers had also entertained the option of a pre-owned vehicle. Online automotive marketplaces, such as AutoTrader.ca, are among the top sources shoppers use, and this study showcases the importance to advertise both your new and used vehicles, as Canadian car shoppers often have both in their consideration set.

Consumers spend two-thirds of their time researching and comparing their options, with the remaining time spent making the purchase. With relatively equal time spent across each stage, it’s crucial you are present not only where consumers are, but also providing them with the tools and services they need during each aspect of their journey. Additionally, the latest Comscore results found that 76% of total minutes spent on online automotive marketplaces, are spent on AutoTrader.ca.*

Time Spent On Tasks Leading to Final Purchase
Information Sources Used

Shoppers continue to consistently rely on online sources to find information for their purchase. Online marketplaces remain the top resource for used vehicle shoppers at 77%, far more than visiting a dealership website (33%), or a manufacturer website (23%). While new vehicle buyers lean towards those last two types of sites, (50% for manufacturer sites and 43% for dealership websites, however), 42% of new car shoppers rely on online marketplaces as a source of information.

Among consumers who use online automotive marketplaces in their vehicle buying process, 64% of new car buyers visit two to five times, up considerably from 39% in 2022. What has also increased is the frequency at which used vehicle buyers use online automotive marketplaces, to eleven times or more, among 39% of respondents. The top reasons shoppers visit marketplaces more than once is to compare prices, monitor vehicle availability and gather information. It’s no surprise that used vehicle buyers are going to spend the most time on automotive marketplace, nonetheless vital for dealers to tailor their strategies to reach new car shoppers as well, as 53% of them spend over 1 hour on a marketplace per visit.

Visitation of Online Automotive Marketplaces
Time spent on marketplaces
Preference for Customer Service Over Great Price

Price continues to be top-of-mind in the car shopper journey, and it remains a crucial factor in the decision-making process. That said, excellent customer service can be more important, as many buyers are willing to pay a fair price, rather than the best price, if they feel they’ll received a stellar customer service experience. This has risen from 40% to 43% between 2022 and 2024 for used buyers, and from 41% for new shoppers in 2022, to 50% in 2024. Needless to say, prioritizing service and experience remains essential. Dealers who study car shopper behaviour, market all of their inventory, and focus on customer service as a key differentiator are surely primed to come out ahead.

Key Takeaways

  • While they may start out with a preference, many buyers cross-shop new and used vehicles, with nearly half of used-car buyers considering a new one as well; advertising both used and new inventory will maximize your reach with all prospective customers.
  • Use of online automotive marketplaces remains a key source in the car buying journey
  • The majority of car buyers purchase within three months and spend two-thirds of that time researching and comparing their options.
  • Price-related aspects are still the most difficult part of the process; AutoTrader.ca’s price badges can help support informed decisions for customers in the current economic climate.
  • Most buyers will pay a fair price if they can expect to get excellent customer service; far fewer will accept lackluster service even if it’s coupled with the best vehicle price.

Sources: Dig Insights, Vehicle Path to Purchase Research Study, August 2024, (n=1,229). * Comscore My Metrix® | Key Measures, Multi-Platform, Total Minutes, August 2024, Canada. | Automotive Resources Share of Minutes., May 2024, (n=325).

path to purchase infographic

Infographic: Vehicle Path to Purchase 2024

Download our infographic summarizing the key findings from our 2024 Vehicle Path to Purchase research results.