Despite aggressive industry efforts and a pandemic-fueled push for digital transactions, most car buyers in the United States still prefer the traditional dealership experience. While consumers increasingly research vehicles online, they overwhelmingly want to see, test-drive, and physically sign documents before making the second-largest purchase of their lives after a home.
The Disconnect Between Online Intent and Reality
Recent surveys from Cox Automotive reveal a striking gap between buyer intentions and actual behavior: only 7% of shoppers complete the entire car-buying process online, despite 28% initially planning to. Over half still conduct their purchases entirely in person. This reluctance extends beyond just the final sale; over 50% of buyers want to physically sign paperwork, and a staggering 86% insist on seeing the vehicle in person before committing.
This preference isn’t simply resistance to change. Consumers are comfortable with parts of the process being digital – particularly loan pre-approval – but financing remains a major anxiety point that drives them back to brick-and-mortar locations. The internet is used for research, but the complex financial details still demand a human touch.
Industry Efforts and Their Limitations
Automakers like Tesla, Rivian, CarMax, and Carvana have pioneered direct sales and online-first models, and dealerships have invested heavily in digital infrastructure. Hertz even launched a fully online buying platform, including pre-qualified loans and trade-in evaluations. Amazon’s Autos division has also entered the market, allowing consumers to research and finance vehicles before handing them off to local dealers for finalization.
However, these efforts face a fundamental hurdle: trust. Traditional dealerships still dominate because they offer a sense of familiarity and transparency that many consumers don’t find online. Despite this, some dealers, like the California Automotive Retailing Group, report higher profits from online sales due to increased efficiency and reduced salesperson time.
The Price Factor and Future Trends
The average new car now costs over $50,000, and 62% of consumers feel vehicle ownership is becoming too expensive. This economic pressure drives both buyers and dealers to seek better methods of sale, regardless of location. The luxury segment, in particular, sees demand for convenience, with some franchises executing 80% of sales documents remotely.
Ultimately, the car-buying experience will continue to evolve, with digital tools playing a larger role. But for now, the overwhelming majority of consumers still want the tangible experience of a dealership before signing on the dotted line. The industry must adapt by bridging the gap between online convenience and in-person reassurance.
