Why Car Shoppers Leave Dealerships without Buying
Customer relationship management company CAR-Research XRM released this week its
findings from its study that covers the top reasons car buyers leave the dealership without buying.
Perhaps giving dealers some insight into ways to close the deal with potential customers, the findings show that "the top reason customers leave without buying is that they are still shopping and have not been sold at that dealership."
The study used a sampling pulled from January 2012 through December 2012 of 167,503 Interviews with
customers from over 150 auto dealerships across the U.S., conducted by CAR Research XRM's Certified Research Call Center.
"According to J.D. Power, today's shoppers only visit 1.4 dealerships before purchase, down from 4.5 in 2005. Showroom visitors come to the first dealership they visit more ready to buy than at any other time in modern car sales history: In other words, it's not about be-backs any more, it's about being first," said Patrick Kelly, CAR-Research president and chief operating officer, stressing the importance of the study results.
"And our own data from over four years shows that the ones that do leave for other dealerships left because of financing, inventory and price. Don't let them leave for these reasons; it's time to sharpen our processes and our sales skills," he continued.
Highlighting the numbers in more detail, of respondents, only 19 percent went on to purchase elsewhere, meaning that 81 percent of them were presumably still in market at the time of the interview, the company shared.
Also when asked why they left the dealership, "still shopping" (25 percent) ranked as the highest single reason.
On the other hand, almost half of customers surveyed gave further details that they left because of a specific reason that they were still shopping; including price, financial, inventory,and style.
The survey found the top reasons car shoppers left without buying to
be as follows:
1. Still Shopping: 25 percent
2. Price: 15 percent
3. Financial: 13 percent
4. Inventory: 10 percent
5. Style: 10 percent
6. Payments: 5 percent
7. Other: 5 percent
8. Sales Staff Issues: 4 percent
9. Trade: 4 percent
10. Decision Maker Absent: 3 percent
11. Time Constraints: 2 percent
12. Negative Equity: 1 percent