Cox Automotive says its April 2020 market research report is devoted entirely to COVID-19 related news and research.
“A major component of this report is to look at the latest research coming out of Cox Automotive in the US, who have been surveying dealers and consumers every week for the last six weeks,” says Cox Automotive Australia and New Zealand chief executive officer Rob Whiten.
“Whilst not directly related to our local market, it provides us with a good idea of how Australian dealers and consumers would also be feeling.
“I also wanted to share a few resources that Cox Automotive in the US has put together, to help dealers navigate their way through these challenging times, which will no doubt persist for several months.
To add a local element, we bring some research from local analysts, ACA Research. They have presented a great snapshot of SME sentiment and behaviours in response to Covid-19 in Australia,” Whiten says.
For the past six weeks, Cox Automotive in the US has engaged with consumers and dealers to understand the impact of COVID-19 on the automotive industry. Some of the key insights and key takeaways are as follows:
- In the US, consumers are beginning to show the first signs of positive movement. The percentage delaying sales and service has flattened, the window for delayed purchases is pulling closer, and optimism for a return to normal has moved earlier in the summer. With signs that social distancing seems to be working in many parts of the country, consumers in the US are growing more optimistic.
- More than 1/3 of shoppers are still delaying their vehicle purchase, however almost half of those could be spurred into action if they find the right deal. Marketing the right incentives to the right consumers will be vital at this time on the road to recovery.
- It will take time for consumers in the US to grow comfortable “getting out there”, with most indicating it could take up to three months after shelter-at-home mandates are lifted. Similarly, consumers continue to show resistance to visiting dealership, so it will remain vital for dealers to promote and offer safety measures to prospective customers, long after mandates are lifted.
- US Dealers are struggling, with staffing levels down more than 50% and more than two in ten are now worried this might be the end of their dealership. More than 80% of Franchise dealers have applied for federal assistance, while Independents lag significantly behind at 48%.
- The full report is available here:
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