How Is Technology Driving Consumer Behaviors In The Auto Industry?

How Is Technology Driving Consumer Behaviors In The Auto Industry?

Auto, Aviation & Transportation

Technology is advancing and evolving continuously, impacting almost every aspect of our lives. New technologies have driven changes in consumer behaviors and created all kinds of incredible new capabilities for manufacturers. In this informative guide, we’ll explore how modern technology is shaping the way we buy and sell cars and outline key trends within the auto industry. 

Image from https://www.pexels.com/photo/white-car-charging-3846205/
Buying online

Buying vehicles online is one of the most significant shifts in consumer habits in the last decade. Traditionally, when you wanted to buy a car, you would visit dealerships or automotive garages and showrooms and peruse the makes and models adorning the forecourt. Alternatively, for used cars, buyers would browse listings and classified adverts in local newspapers and automotive magazines. Today, most searches for a new car begin online.

A study conducted in 2021 found that 80% of US motorists are open to buying a car online. This represents a 50% increase from before the pandemic. Buying online has become more popular because it’s fast, easy and convenient, and it can also open up a much wider pool of vehicles and deals. There are downsides to purchasing vehicles online, including not being able to test-drive the car and incurring additional shipping fees, but this is a trend that is gathering pace quickly. 

One of the major perks of using the Internet to find new cars is gaining access to offers instantly. At any given time, shoppers can search for makes and models and explore manufacturer and dealer discounts and incentives. Buyers no longer have to contact individual businesses or wait for companies to send out marketing emails and host promotional events. Using search engines and following businesses on social media opens doors. 

Researching

Many of the people who search for new or used cars online don’t actually buy a vehicle via a website or app. They use the Internet to research and gather information about different makes and models and compare prices and offers. If you have a smartphone or a laptop, you can access blogs, articles, features, guides and videos at the touch of a button. You can search for the best deals on the cars that interest you most and you can find out more about safety features and records, engine performance, fuel types and efficiency and extras and upgrades.

In addition to comparing purchase prices online, more and more consumers are using mobile devices and computers to find the best offers on auto insurance and forms of additional protection including an extended car warranty. You can access the best discounts in seconds by entering some simple details and filtering the results. Almost 70% of shoppers will search for insurance online without a specific provider in mind. Those looking for car insurance (72%) are most likely to contact a business and discuss policies on the phone after researching online. 

Switching to greener vehicles

Green vehicle ownership has become much more commonplace in many countries in the last five years. Across Europe, numbers have been rising steadily for some time. The US has not switched to greener vehicles as quickly, but figures are starting to increase. Electric vehicle sales hit a new high in 2022 and surveys suggest that over 40% of drivers will consider hybrid or electric cars the next time they buy a vehicle. As technology advances and research projects continue to provide valuable information, manufacturers are utilizing cutting-edge concepts and techniques to create a new breed of vehicles. Almost every manufacturer now has at least one eco-friendly car in its fleet and some have several options for buyers. 

AI

The use of AI (artificial intelligence) is one of the most fascinating and intriguing elements of modern car design, functionality and performance. AI is used across multiple industries and it plays an increasingly influential role in the way we live and work. Within the automotive industry, manufacturers are using AI for several applications, including enhanced safety features, which detect hazards and warn drivers, in-car assistants and personalized driving modes. AI is also instrumental in vehicle development and assembly. In factories across the globe, applications including robotic devices and systems, are accelerating the assembly process and making it safer and more accurate and efficient. Machines assume responsibility for repetitive tasks, which are time-consuming and mundane for employees. 

Selling cars

Selling a car used to be a long-winded, arduous task. As a vehicle owner, you would either list your car in a magazine or local newspaper. And wait for buyers to call or trawl dealerships trying to barter with sales teams to get a good price.

Today, selling a car is much easier. Moreover, modern technology provides access to a host of sites and online marketplaces and it also facilitates fast, hassle-free sales through online companies that offer a price based on the vehicle description and details. In a matter of minutes, vendors can get a quote and decide whether or not to accept it. In most cases, if the seller is happy with the price, the company will arrange to collect the vehicle and after an inspection, representatives will approve a bank transfer. Sellers can get rid of their vehicle and access their funds without even leaving the comfort of their home. 

Improved access to information is also beneficial for sellers. Before visiting websites or dealerships and getting quotes, vehicle owners can conduct research to get an accurate idea of how much the car is worth. This means that they have more confidence going into the negotiation process. In addition, it lowers the risk of sellers losing money. 

Image credit: https://www.pexels.com/photo/person-reaching-out-to-a-robot-8386434/

In conclusion, technology impacts almost every aspect of our modern lives. Furthermore, new technologies have transformed the way we buy and sell cars. And opened doors in terms of new types of vehicles and design concepts and features. Today, we can buy and sell vehicles, research makes and models and compare prices at the touch of a button and we have access to cars developed using cutting-edge technology and advanced research. Lastly, as we look to the future. As a result of our progress, it’s highly likely that technology will play an increasingly integral role in vehicle safety. Performance and operation. And the way manufacturers design and build cars and consumers buy and sell vehicles. 

Auto, Aviation & Transportation

How Is Technology Driving Consumer Behaviors In The Auto Industry?