Mike Ryan of Billings, MT works in the automotive industry as a salesman and entrepreneur. In the following article, Michael W. Ryan discusses the trends shaping the automotive sales industry.
The auto industry seems like it will always be in demand. After all, driving cars is still the most convenient and efficient mode of transportation around the world. However, the type of vehicle that consumers purchase varies.
Wondering what old and new car owners are currently seeking?
Let’s dive into the world of the automotive sales industry to learn about the vehicles people look for.
Michael W. Ryan of Billings on the Trending Cars and Features
Car trends depend on the economic situation and the automotive industry’s technological innovations. But with the world still in the process of recuperating from the pandemic and the rise in popularity of electric cars, many find older cars and high-tech vehicles more ideal to purchase.
People typically seek the newest and most technologically advanced vehicle. However, due to economic inflation, many can no longer afford such a luxury. That’s why buying used cars is more common in recent years.
According to Grand View Research, the used car market earned around $1.7 trillion in 2021. However, they estimated a CAGR (Compound Annual Growth Rate) of 6.1% until 2030.
Mike Ryan of Billings, MT explains that to people affected by the recession, buying used cars is better than purchasing a brand-new one. According to Kelley Blue Book (in a CNBC report), the average price of new vehicles is over $47,000. But used ones cost right around $20,000.
But how else are shoppers trying to cut back on costs?
Mike Ryan of Billings, MT says that everyone knows – and many are protesting – about the fuel price hikes, which is another effect of inflation. However, until the supply and demand chain eases, shoppers opt to own fuel-efficient automobiles.
But even people who aren’t affected by the gas price fluctuation prefer fuel-efficient vehicles. According to Consumer Reports, 88% of Americans anticipate car makers to make more fuel-efficient vehicles.
They added that 65% agree that “increasing average fuel economy from 25 miles per gallon (MPG) today to 40 MPG by 2025 is a worthwhile goal.”
Michael W. Ryan of Billings notes however, car shoppers also want the latest technology in their cars.
With the convenience of having a GPS and Bluetooth sound system, car shoppers want vehicles with updated technology.
In The J.D. Power 2015 U.S. Automotive Media and Marketing Report – Summer, 43% of the individuals surveyed said one of the main reasons they bought their car is because of its technological features.
Mike Ryan of Billings, MT questions what influences people to buy their preferred vehicles? And where do they learn about its information?
E-Commerce and Digital Marketing Are Shaping the Future of the Automotive Sales Industry
These days, people turn to the internet for information. According to Google, 95% of car shoppers researched their desired vehicle online. Moreover, the online platform they rely on – when learning about the specifics of the automobile – is YouTube.
Michael Ryan of Billings explains that’s why many automobile manufacturers, car dealerships, and automobile salespeople also create an engaging online platform – to access their customers more efficiently and effectively, as sharing files, photos, and documents is easier when discussing their preferred car online.
Moreover, many car sellers also leverage the rise of online advertisements and social media influencers.
Michael Ryan of Billings reports that they:
- Post photos and information about the car for sale.
- Create websites.
- Post the cars on e-commerce websites – such as Cars.com, TrueCar, Enterprise Car Sales, CarMax, etc.
- Invest in ad services – such as the paid features that Google, Instagram, YouTube, and Facebook provide.
- Partner with social media influencers to post or review the cars they’re selling.
However, it’s worth noting that no matter how admirable or unbiased an online influencer may seem, their opinions shouldn’t primarily be the reason for choosing a car. After all, they often receive compensation for stating positive things about the vehicle they’re endorsing.
Michael Ryan of Billings says that these days, car shoppers don’t look for brand-new cars as much as others did before, primarily because of the economic situation. But even those who can afford new cars still seek cost-effective solutions to save money when refueling – as they want fuel-efficient vehicles.
However, when it comes to technology, most car shoppers search for vehicles equipped with technology.
But keep in mind that these are all trends – and not guidelines or basis for which cars are the most ideal to purchase. Vehicle choices still largely depend on budget and preference.