Online Car Buying Habits: Insights from the Global Auto Shopper Study

In a market that lacks transparency, the internet seems to be one of the best tools to get some hints on the workings of the automotive industry.

The Global Auto Shopper Study addresses interesting insights when it comes to the New Car research and buying process. Moreover, it also looks at how New Car buyers use online tools to make well-informed decisions, and how we will eventually end up buying cars online.

A couple of days back, I headed over to Think with Google MENA. While my intention here is not to promote it, obviously, I find it relevant and a "monthly must hit" for everyone working in the automotive industry, whether online or offline. You will be surprised by the relevant insights that will help develop your business.

I was happy when I saw an automotive study addressing the MENA region, specifically the United Arab Emirates, Saudi Arabia, and Kuwait. Usually, these studies focus on research from the USA, and in this region, we need to think about how to localize it to our markets. So, high five to Google for this!

Key Insights from the Study

What’s relevant to understand from this study?

1. The Real Influencer

   Nowadays, there are a bunch of "in high demand" Instagram and Facebook accounts run by teens that deviate the focus on who the real influencer truly is. Does anybody doubt the power of Google Search? I definitely don’t think so. Yet, I don’t hear this often enough during meetings or events. "In the Gulf region, search engines are key influencers – 57% of buyers in the KSA and 44% in the UAE start their research with a query on a search engine." Believe me, this figure will only go up.

2. Showroom Visits Decline

   Over the last 12 months, I’ve visited at least 150-160 dealers across the 7 geographies we operate (GCC & Egypt). Although both New Car Dealers and Used Car Dealers want people to visit their showroom, buyers are visiting showrooms much less than before. Porsche CEO, Deesch Papke, confirmed that customers used to visit the showroom at least 8 times before purchasing a car; now it’s just 1 or 2 visits. Should the statement be "I want people to visit my showroom" or "I want potential buyers to find my brand and all the information online, so they can eventually come to my showroom and buy the car?"

3. Test Drives Are Becoming Optional

   One common automotive selling technique is coming to an end. Online tools are empowering buyers to make the right decision according to their needs. "37% in the KSA, 9% in Kuwait, and 12% in the UAE are making purchase decisions without performing a test drive." In the UAE, 70% of car buyers use configurators, with the proportion even higher in the KSA at 81%. This number will only go up.

4. The Influence of Video Content

   The online world is packed with video content, yet very few help car buyers make informed decisions. "After search engines, online video is mentioned as the second most influential touchpoint among 85% of people in the KSA, 81% in the UAE, and 86% in Kuwait." And guess what? This number will only go up.

5. The Future of Online Purchases

   While online purchases are not common yet, they will eventually take over face-to-face sales. "67% of buyers in the KSA and 42% of buyers in the UAE would consider buying online if given the option." Brands need to develop online tools and services to facilitate this transition.

If you want to read the article without my points of view, please head over to Think with Google: Global Auto Shopper Study.

If you feel like it, I'm happy to take this discussion further. Leave a comment below, and I'll get right back to you.