Cost remains biggest factor for North American car shoppers

Price remains the leading factor in vehicle purchasing decisions in North America and Europe, while Chinese consumers place greater emphasis on technology and features, according to a new global survey released by Bain & Company.

The consultancy’s Global Automotive Consumer Survey, based on responses from more than 12,000 consumers including respondents in Canada, found that 68 per cent of U.S. buyers and 62 per cent of European buyers cited price as their primary consideration when purchasing a vehicle. In China, technology and features ranked ahead of price, with 58 per cent of consumers identifying them as a top factor.

The survey also found dealerships continue to play a critical role in the purchase process despite growing use of online tools. More than 80 per cent of buyers worldwide said they use a combination of digital and in-person channels when shopping for a vehicle, while 90 per cent still complete their purchase through a dealership.

According to the report, artificial intelligence is becoming increasingly influential in vehicle shopping, particularly among younger consumers. More than 60 per cent of younger buyers in Europe and the U.S. reported using AI tools to research and compare vehicles.

The survey also points to continued interest in electric vehicles among younger consumers. Researchers found buyers who had test-driven a battery-electric vehicle were up to 2.2 times more likely to consider purchasing one than consumers who had not.

At the same time, vehicle loyalty appears to be weakening. More than one-third of consumers in Western markets said they would consider new automotive brands, while interest in autonomous-driving technology may encourage buyers to switch manufacturers in search of better functionality.