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Car shopping is going online: Pandemic disrupts dealership visits for new cars, trucks, SUVs

Most car buyers hope to do more of the car shopping process online, even after the pandemic, according to a new study by car-research site CarGurus.

Six in 10 respondents said they’d prefer to do more of the car buying process from home for their next purchase.

However, the parts of the purchasing process they would like to do online vary. About half (51%) of auto buyers would like to do auto financing online, and 45% want to do price negotiation digitally.

Solo test drives have become a popular fixture, with 42% of respondents interested in that service, and 32% interested in having an at-home test drive. Almost half (46%) enjoy having the ability to make dealership appointments online, and the percentage of buyers who walk into a dealership with no appointment has declined from 43% in 2019 to 28% in 2021.

About a third of respondents wanted at-home delivery of vehicles, and a quarter were interested in curbside pickup.

An analysis from McKinsey echoed these statements, stating that "positive customer sentiment for digital sales interactions is now about twice that of traditional models."

Car brands have responded to consumer sentiments by shifting resources online and varying product offerings. Volvo announced in March 2021 that it "will launch a completely new family of electric cars in coming years – all of which will be available online only."

The CarGurus study, which was conducted in July 2021 on 600 U.S. shoppers, also found some other long-term trends.

Many respondents who previously used shared transportation will not return to it even after the pandemic is over. Only 54% of people who previously used ride-sharing apps and 47% of people who utilized public transportation plan on resuming those transportation options long term.

The auto industry boomed in 2021 as major life shifts gave people the desire and financial means to purchase a car.

Among car buyers surveyed in the study, 29% cited moving to a new house as the reason behind their car purchase, while 22% attributed it to getting a new job. About 21% saved money during the lockdown, and 13% received stimulus checks, giving them the funds to go toward a vehicle.

However, lack of inventory and higher prices also discouraged many from purchasing cars as demand increased and supply dwindled. About a third (31%) of current shoppers say they delayed or pushed off shopping for a vehicle since prices are so high.

An international chip shortage has disrupted car production for automakers like General Motors, Ford and Toyota.

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Automakers have diverted chips from slower-selling models to those in high demand, such as pickup trucks and large SUVs.

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Consumers are seeing the results, with 30% of recent buyers saying a vehicle they were planning to see in-person was sold before they got to the dealership.

While the pandemic has created some short-term trends in demand and supply of vehicles, the research shows that shifts from dealer to digital interactions are likely here to stay.

Michelle Shen is a Money & Tech Digital Reporter for USA TODAY. You can reach her @michelle_shen10 on Twitter.

This article originally appeared on USA TODAY: New cars, trucks, SUVs: Car shoppers go online before dealership