Purchase Delays Dip Among Consumers

By Jeffrey Bellant August 13, 2020 395
Across all generational groups, consumers have adjusted their vehicle price range down. Across all generational groups, consumers have adjusted their vehicle price range down.

 

Consumer sentiment remains steady and they have positive views of pick-up and delivery services, according to Cox Automotive.

In Cox’s regular update,  “COVID-19: Tracking Consumer Sentiment,” the level of concern among those surveyed was at 68 percent, a slight decrease from 70 percent in mid- to late July.

The survey showed that 78 percent of consumers report they are wearing a face mask consistently in public.

In terms of shoppers, the study showed 15 percent of consumers are in-market to purchase a vehicle within six months. That has dipped from 17 percent in May to mid-June.

However, purchase delays are at their lowest point since late May, Cox reported.

At the start of the shelter-in-place orders in March and April, 34 percent of consumers reported they were delaying their purchase or lease. In the first week of August, that percentage had dropped to 26 percent.

Factors affecting purchase delays include uncertain financial stability; ongoing COVID-19 cases; fewer miles traveled; civil unrest and general uncertainty in the market.

Cost concerns were the top reasons for delay from Boomers, Gen X and Gen Z buyers.

For Millennials, the main concern was social distancing.

Car repairs put off during lockdown are on the rise
Car repairs put off during lockdown are on the rise again

Cox reported that fewer consumers are delaying service/repairs on their vehicles, with the percentage dropping to 21 percent, from a high of 36 percent in March and April during the height of the shelter-in-place orders.

The rise of service pick-up and delivery in the wake of coronavirus have been well-received according to the Cox study.

Satisfaction with delivery and pick-up service is at 85 percent. The study also showed 23 percent of vehicle owners  have used pick-up and delivery since COVID-19 hit.

One of the big hits to consumers during this pandemic has been employment disruptions.

According to the Cox study, 28 percent of those surveyed have had reduced work hours, while 18 percent suffered temporary shutdowns, 17 percent were laid off, 13 percent saw pau cuts and 13 percent reported being furloughed.

However, the number of people experiencing those disruptions have dropped to 53 percent in early August, compared to 62 percent in April.

Cox’s study showed that 58 percent of younger shoppers have decreased their budgets and begun looking to spend less.

But across all generational groups, consumers have adjusted their vehicle price range down. The study showed 64 percent of Generation Z consumers lowered their price range, while 75 percent of Boomers have done the same.

 

 

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Last modified on Thursday, 13 August 2020 18:48