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COX AUTOMOTIVE CAR BUYER JOURNEY STUDY: PANDEMIC EDITION Media Summary / February 2021

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COX AUTOMOTIVE CAR BUYER JOURNEY STUDY: PANDEMIC EDITION Media Summary / February 2021 COX AUTOMOTIVE CAR BUYER JOURNEY STUDY: PANDEMIC EDITION Media Summary / February 2021 Research & Market Intelligence Study Background & Methodology Background • Cox Automotive has been researching the car buying journey for 11 years to monitor key changes in consumer buying behaviors Goal • Inform strategic decisions for Cox Automotive and OEM & Dealer clients In-Field Dates • September 10 – September 22, 2020 2,010 New Buyers Respondents 3,016 Recent Vehicle Buyers 1,006 • Buyers/Lessees that took ownership between mid-March and September 2020 Used Buyers • Used the internet during the shopping/buying process • Results are weighted to be representative of the buyer population 2 2020 Buyer Profile Total New (A) Used (B) Total New (A) Used (B) Male 51%Ç 62%BÇ 48%Ç Income Under $75K 42% 30%È 45%A A Female 49%È 38%È 52% È Income $75K+ 58% 70%BÇ 55% Avg Age 50 53 49 Have Children 51%Ç 47%Ç 53%A Gen Z (1996-2011) 2% 1% 2% Millennial (1982-1995) 24% 20% 25%A Gen X (1965-1981) 38% 34% 39%A 2020 Pickup Truck Purchase 2020 Segment Market Share Baby Boomer (1946-1964) 30% 37%B 29% (among Male Buyers) (Change from 2019) B Pre-Boomer (Pre-1946) 6% 9% 5% 59% (+14)Ç Pickups +3%Ç White/Caucasian 88% 89% 88% SUVs +2% Ç African American or Black 7% 4% 8% 2020 Pickup Truck Purchase Hispanic 11%Ç 13%Ç 11%Ç (among Hispanic Buyers) Cars -4% È Asian 3% 5%B 3% 11% (+7)Ç *Ethnicity/Race & Income excludes prefer not to answer. Letters indicate significant difference between New and Used at the 95% confidence interval. Arrows indicate significant difference to prior year at the 95% confidence interval. Source: Cox Automotive CarEdit Buyer Master Journey text styles- 2020 3 Our Consumer Segments The Guarded The VIP The Informed The Experiencer The Straight Shooter Inexperienced and View their car as a Prefers the finer things in Enthusiastic about cars Well-versed in vehicle cautious about car reflection of their social life View car buying as buying process shopping status Meticulous and maximize opportunity to learn Would never buy a car Practical and sticks to Put limited effort in their effort in their car shopping they felt they couldn’t budget car shopping afford More likely to be More likely to be More likely to be Gen X More likely to be older More likely to be Gen X or Millennials Millennials Most likely to be a Millennials Boomers More likely to be single More likely to have kids Suburbanite Most likely to be Urbanite More likely to be a Gender neutral More likely to be male More likely to be male More likely to be male Suburbanite More likely to have <$75K Equal distribution of More likely to have >$75K More likely to have >$75K Gender neutral HHI < and >$75K HHI HHI HHI More likely to have <$75K HHI Source: 2020 Cox Auto Consumer SegmentationEdit Profiling Master textResearch styles 4 “In Market” in 2020 Buyer Segment The Straight Shooter Straight Shooters tend to be… 15% 30% • Likely Gen X or Boomer The Informed 25%27% • Experienced buyers The VIP 21%23% • Financially responsible The Guarded 18% 28% • Household income <$75K The Experiencer 5% 10% 2018 mid-March to Sept 2020 2020 saw a spike in pragmatic, experienced buyers, such as The Straight Shooters, while cautious and novice buyers – The Guarded and The Experiencers – tended to steer away from the market. +Not Sure removed. Green and Red Circles indicate significant differences from 2018 at the 95% confidence interval. Source: Cox Automotive CarEdit Buyer Master Journey text styles- 2020 5 In 2020, the Global Pandemic… 1) Shifted Purchase Motivation 2) Revolutionized the Buying Process Research & Market Intelligence 6 Overall: Higher Satisfaction and a Shorter Purchase Process… % of Buyers Satisfied Time Spent in Purchase Process with Shopping Experience 74% Ç 13h 13mÈ 14h 53m 72% Ç 2020 2019 69% 71% Ç 66% 66% 62% 62% NEW BUYER USED BUYER 61% 60% 60% 60% 11h 11m È 13h 49mÈ 59% 2020 2020 58% 58% 2019 11h 56m 2019 15h 53m Total New Used A B Drivers • Shifted Purchase Motivations 2016 2017 2018 2019 2020 of Change • Revolutionized Buying Process Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval. Letters indicate significant differences between New and Used at the 95% confidence interval. Source: Cox Automotive CarEdit Buyer Master Journey text styles- 2020 7 …With Decisive Buyers Spending Less Time Shopping Online Source: Cox Automotive Car Buyer Journey Time Spent Researching & Shopping Online Top Reasons For Less Time Online 7h 14m È 9h 29m 1. Already knew what they wanted 2020 2019 “With our previous vehicle, we weren't sure which one to go with, but with this purchase, I knew exactly what I wanted in a vehicle and NEW BUYER USED BUYER the make & model.” 5h 34m È 7h 44m È “There was less searching the internet for 2020 2020 makes, models, etc. We had decided ahead of time what we wanted, if available.” 2019 6h 44m 2019 10h 25m 2. Attractive offer 3. Dealer reached out with offers Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval. Source: Cox Automotive CarEdit Buyer Master Journey text styles- 2020 8 In 2020, Purchase Motivation Driven More by “Want”. % of Buyers Purchasing Because They “Want” a Vehicle (vs. “Need” a Vehicle) BC 57% BC BC New 51% 51% BC A BC 48% 49% 44% Total 41% B 39% 37% 38% 37% Used 36% 34% 34% C 32% 2016 2017 2018 2019 2020 +Not Sure removed. Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval. Letters indicate significant differences between New and Used at the 95% confidence interval. Source: Cox Automotive Car Buyer Journey - 2020 9 . And Buyer Certainty Increased % of Buyers Who Knew Exact Vehicle They Wanted at Start of Shopping Process Strategize a plan to maintain a comprehensive 2018 online presence that includes party sites 35% (29%)* Intensify the urgencyTotal in offers and strategically feature messages around (A) (B) specialNew deals and2018 vehicleUsed attributes 2018 45%BÇ (38%B)* 32%Ç (26%)* +Not Sure removed. *Not asked in 2019 survey. Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval. Letters indicate significant differences between New and Used at the 95% confidence interval. Source: Cox Automotive Car Buyer Journey - 2020 10 More Shoppers Considered Both New and Used in 2020 % of Buyers Who Considered Both New and Used Vehicles Strategize a plan to maintain a comprehensive 2019 online presence that includes party sites 57% (53%) Intensify the urgencyTotal in offers and strategically feature messages around (A) (B) specialNew deals and2019 vehicleUsed attributes 2019 30% (32%) 66%AÇ (60%) +Not Sure removed. Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval. Letters indicate significant differences between New and Used at the 95% confidence interval. Source: Cox Automotive Car Buyer Journey - 2020 11 In 2020, COVID-19 Safety Concerns Motivated Buyers to Grow Their Garage Purchase Trigger Was Usage of Transportation Mediums “Needed Additional Vehicles in Household” 88% 88% Pre-COVID During COVID 13% vs. 8% 56% Used New 48% 29% 31% More than 1 in 4 24% 20% Vehicle Shoppers 15% 12% Who Plan to Add Another Vehicle to their Household Cited Personal Vehicle Ride-Sharing Public Transportation Taxi Car-Sharing They No Longer % WHO SAY “VERY RISKY FOR COVID” Want to Use Other 2% 32% 56% 39% 34% Transportation* Arrows indicates significant difference since last wave or compared to other measures. Source: 2020 Cox Automotive COVID-19 Consumer Impact Study; Cox Automotive Car BuyerEdit Journey Master Study text styles- 2020 12 New Buyers Were Enticed by Attractive Deals . Top 5 Purchase Triggers NEW BUYERS 1. Previous vehicle had high mileage 2. Wanted a vehicle with certain features 3. Promotional Offer – Attractive Deals (17% Post-COVID vs. 11% Pre-COVID) 4. Wanted/Needed a different vehicle type 5. Lease expired USED BUYERS 1. Previous vehicle had high mileage 2. Previous vehicle was unreliable or expensive to repair 3. Wanted/Needed a different vehicle type 4. Wanted a vehicle with certain features 5. Previous vehicle was damaged Source: Cox Automotive Car Buyer Journey - 2020 13 . While Trust in “The Deal” Improved % of Buyers Who Trust the Dealership/ Trust the Dealer Gave the Best Deal Across Time+ Retailer Gave Me the Best Deal 71%Ç 68% 61% 61% New 64% Sept 2018 to 59% 61% Ç Aug 2019 55% Timeframe Used 64% (57%) Sept 2018 to Sept. 2019 to March to June to Total Aug 2019 Mid-March 2020 May 2020 Sept. 2020 (A) (B) Heavy Incentives New Used Timeframe 69%BÇ 63%Ç Lessees New Purchasers TRUST DEALER CHEVROLET TOYOTA GAVE BEST DEAL… 69% (+7) 69% (+8) 64% (+8) 72% (+12) 70% (+2) 57% (-5) 73% (+11) +Not Sure removed. Arrows indicate significant differences from 2020 or previous timeframe at the 95% confidence interval. Letters indicate significant differences between New and Used at the 95% confidence interval. Source: Cox Automotive CarEdit Buyer Master Journey text styles- 2020 14 In 2020, the Global Pandemic… 1) Shifted Purchase Motivation 2) Revolutionized the Buying Process Research & Market Intelligence 15 Third-Party Sites Remain Popular Among Vehicle Buyers Total Vehicle Buyers First And Last Website Visited (Among Buyers Visiting Multiple Websites) 3% 5% Ç 5% 13% 6% 9% New Form Online Retailer 53% Google Search Cox OEM Sites 78% 56% Automotive 19% Third-Party Sites of vehicle buyers visited at Cox Automotive Dealership Sites+ least 2 websites 23% 33% 17% First Last Third Party excludes Carvana.
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