Car Buying Behavior

Buying a car is a weighty decision, and many factors are involved in reaching that decision. For the car buyer, it is an individual decision, reflecting on his priorities. Some buyers value cost over safety, while others place an emphasis on style and comfort over economy. Knowing how people reach the decision to buy a car helps dealers and manufacturers develop future automobile strategies.

Groups

Understanding car buying behavior among certain groups helps businesses develop marketing and sales strategies. For example, if a trend among Hispanics reveals Hispanic buyers tend to gravitate towards imports in automobiles, dealers in predominantly Hispanic areas might steer inventory in their car lots to imports, rather than domestic automobiles.

Reliability

One factor car buyers consider is the reliability of the car. Companies such as Consumer Reports send out annual questionnaires. Consumers answer a series of questions about their current cars, and the results are published online and in print. While there are no guarantees a make and model will be reliable, viewing the histories of the car and manufacturer in question help provide a guide to reliability. Naturally, car buyers look to have reliable vehicles when looking to purchase a car.

Cost

Price is a paramount consideration in car buying behavior. In the "TRUECar Online Automotive Behavior Report" for 2011, nearly 90 percent of those responding to the survey ranked knowing what others paid for the same car would be useful in making a decision about buying the car. In the same survey, when choosing a dealership, price was the overwhelming factor used to pick a dealership, with nearly 80 percent listing that as the most significant factor in finding the right dealership.

Negotiations

Another aspect of car buying is haggling. In the TRUECar Online survey, over 90 percent of the respondents thought it valuable if dealers provided a solid, "no haggle" price for the buying process. Although haggling will likely always remain a part of the car buying process, having a solid foundation on which to stand could improve the process.

Purchasing Options

When examining car buying behavior, potential buyers examine purchasing options. Some buyers only want new cars, while others, desiring to save money, choose used cars. In addition, looking at the advantages and disadvantages of leasing versus buying the new cars is a consideration.

External Factors

Outside events also affect car buying behavior. When the price of gasoline rises, smaller, more fuel-efficient car sales increase. Buyers looking to purchase a status symbol might buy a less fuel-efficient car as a sign of wealth.