How Car Buying is Changing

The Way We Think About Owning Cars is Changing

In the past, owning a car was seen as a long-term investment. But things are changing. Today, more people want cars in different ways. New technology and different ways to use cars are changing how people think about owning one. This is both a challenge and an opportunity for car dealerships to keep up with what people want.

More People Want to Use Cars, Not Own Them

More people, especially younger folks, don’t want to own cars anymore. Instead, they prefer having access to cars when they need them:

• Leasing and Subscriptions: Leasing means paying to use a car for a few years instead of buying it. This lets people drive new cars without paying a lot upfront. Some car companies even bundle things like maintenance and insurance in one monthly payment through subscriptions.
• Car Sharing: Services like Turo, Zipcar, Uber, and Lyft let people use cars without owning them. This is especially helpful in big cities, where owning a car can be expensive because of parking and repairs.

What People Want in Cars Is Changing

Younger people want cars to be easy to use, affordable, and good for the environment:

• Convenience Over Owning: Instead of owning one car for everything, people want to use different types of cars when needed. For example, they might use a small car to go to work and a big SUV for a weekend trip.
• Caring About the Environment: More people want to use cars that are better for the environment, like electric cars, or share cars to help reduce pollution.
• Saving Money: With the cost of owning a car going up (like insurance and repairs), many people are looking for cheaper options to get around.

Used Cars Are Becoming More Popular

As fewer people want to own cars, used cars are becoming a bigger part of the market:

• Used Cars Save Money: Used cars are a great choice for people who need a car but don’t want to spend a lot of money on a new one.
• Leasing Cars Makes More Used Cars Available: When people lease cars, they often return them after a few years, and dealerships can sell them as used cars. These cars are usually in good condition and are a great deal for buyers.
• Certified Pre-Owned Cars: Some used cars come with warranties and have been checked to make sure they’re in good shape. These cars are more trustworthy and help people feel better about buying used.

Car-Sharing Services Are Changing How People Buy Cars

Car-sharing is also changing how people buy their first car:

• Fewer First-Time Buyers: Many young people are choosing not to buy a car for the first time. Instead, they use car-sharing or ride-hailing services like Uber and Lyft.
• Dealerships Need to Change: To stay helpful, car dealerships should think about offering short-term leases or working with car-sharing services to meet these new needs.

What Car Dealerships Can Do

The way people use cars is changing, and this can be a good thing for dealerships if they adapt:

• Offer Flexible Options: Dealerships can create leasing or subscription plans that let people use cars easily.
• Focus on Used Cars: Dealerships can sell more used cars and offer certified pre-owned cars to attract customers who want to save money.
• Go Green: Dealerships can sell electric or hybrid cars and partner with services that focus on the environment to match what people care about.
• Work with Car-Sharing Services: Dealerships can team up with car-sharing services to find new ways to make money and serve customers.

Looking Forward

The way people own and use cars is changing, and this is a chance for dealerships to rethink their plans and offer what people want. Those that do this will not only stay relevant but will also thrive in the new world of mobility.