According to recent data from Cox Automotive, the US auto marketplace is continuing its steady post-pandemic recovery, and radio is a key player in that growth. For May 2023, total new-vehicle sales surged by 23% compared with the previous year.
The seasonally adjusted annual rate (SAAR) was 15.0 million, topping analysts’ predictions. New-vehicle inventory reached a two-year high, and days of supply increased to 55 at the end of May. These statistics suggest a softening demand, leading to an increase in discounts and incentives.
Given these optimistic national trends, Cumulus Media Dallas-Ft. Worth initiated a study to gain a deeper understanding of auto buyers. The research, conducted by the Cumulus/Westwood One Audio Active Group and MARU/Matchbox, surveyed 600 recent auto buyers, revealing six key insights into the purchase behavior and research methods of consumers in the region:
- Despite the rise of online retail options, 77% of new car buyers still purchased from an auto dealer.
- Auto dealerships were the focal point of the research process, with 49% of consumers using in-person dealer shopping and 41% checking dealership websites.
- 40% of consumers were undecided on their vehicle prior to starting the purchase process.
- Dealerships must “be known before they are needed,” with 81% of consumers being aware of the dealer prior to their purchase.
- Auto buyers spent around nine hours on research, with women spending an additional hour compared to men. Consumers aged over 50 reported spending 10.4 hours researching vehicles.
- Nielsen Scarborough reports suggest that AM/FM radio listeners are +25% more likely to be auto intenders compared to TV viewers. Therefore, the study advises that auto dealers and brands should “be known before they are needed” to traditional radio audiences.
This research provides crucial insights into the behavior of auto buyers, indicating a strong inclination towards in-person dealership experiences and the crucial role of AM/FM radio in influencing auto intenders.
