As financial pressures increase, consumers are seeking out improved buying experiences in the auto industry. Auto dealerships will need to take this into account moving forward, both for the benefit of the consumer and the dealership.
Currently, auto is the fastest growing category in non-mortgage consumer debt, making up 35.9% of the total. This is higher than student loans and private label cards. Rising debt is going hand in hand with rising prices, as the average new vehicle price has increased by 34% over the past eight years. These factors have led to growing financial stress for consumers, which influences their behavior.
For example, the auto industry is also struggling with increased fraud, which is tied to consumer stress. In fact, synthetic identities have increased by 59% every year since 2020. This results in significant economic losses for auto dealerships.
In order to address consumer concerns and increased fraud, the auto industry must pivot its tactics. Constructing a more positive buying experience can make a big difference for consumers, and is a key moving forward. Being proactive when it comes to fraud will also be important, allowing auto dealerships to swiftly rise above obstacles.
Learn more about the automotive industry trends you need to know in the infographic below:
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