Majority of Car Shoppers Unfazed by Ongoing United Auto Workers Strike

CAMBRIDGE, Mass., October 23, 2023 – A month into the United Auto Workers’ (UAW) strike of all three Detroit automakers, most car shoppers don’t expect the situation to influence their next car purchase, according to a survey of online car shoppers conducted by CarGurus (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles*, and Autolist, a CarGurus company providing a fast-growing mobile-focused new and used car search engine.

Research shows that 40% of shoppers say they don’t anticipate an impact on their purchase plans and 32% noted they were unsure. Yet, Toyota and the used car market could see increased demand, consumers indicated.

The survey of 1,700 current car shoppers between Sept. 27 and Oct. 19 examines how consumer shopping habits might be shifting as ongoing UAW action is stalling production and shipment of car models and parts from General Motors, Ford, and Stellantis. While a majority of shoppers don’t anticipate any significant impacts to their purchase decisions, 10% said the strike would push them to buy used instead of new, with another 9% saying they would buy or lease their next vehicle later than originally planned.

“Shopper reaction to the strike has been muted so far, likely because many consumers aren’t yet seeing an impact on vehicle selection and pricing,” said David Undercoffler, Editor-in-Chief of Autolist. “Yes, the UAW’s stand-up strike strategy is limiting production on several models, but a recent push by automakers to boost availability of their most popular and profitable vehicles has helped to soften the blow for now. ”

Survey findings also show that any current concerns focus on the possibility of used car selection and pricing being a challenge if a prolonged strike drives demand toward used — especially when late model used inventory is limited. When asked to select their top three concerns in relation to the strike, 39% noted used car pricing, 27% said they had no concerns, and 23% pointed to availability and selection of used cars. In comparison, 16% of shoppers referenced a concern about new car pricing and 14% were worried about new car availability.

“Considering historically high new car prices and rising interest rates have made the average new car harder to attain for most, it’s understandable that shoppers are focused on what the strike could mean for the used market,” said Kevin Roberts, Director of Industry Insights & Analytics for CarGurus. “The good news for shoppers, for now, is that new and used car inventory overall has increased since the strike began, with rising selection helping to nudge down average prices. But, certain segments are starting to feel the strain. Over the past month, the inventory of strike-impacted mid-size trucks has fallen by 40%, creating a near-term possibility of increased used model demand if shoppers can’t find what they’re looking for in new.”

According to CarGurus data, new car buyers in the market for a new mid-size truck from a Detroit automaker may have to act soon as selection is becoming limited. A month into the strike, availability of the Chevy Colorado is now down 50%, Ford Ranger has decreased by 43%, and GMC Canyon has dropped by 42%.

Concerns about availability may also be leading consumers to consider other automakers. Searches on CarGurus for new Toyota Tacoma models have increased by 3% (when comparing average search volume between Sept. 1-14 vs. Oct. 1-14), while searches decreased for the new Colorado (-16%), Canyon (-15%), and Ranger (-6%) over the same time period.

Consumer survey results reflect this shift, revealing that brand consideration has changed since the strike began. When asked to select the top three brands they were considering before the strike, shoppers opted for Chevrolet (22%), Toyota (21%), Ford (20%), Honda (13%), and Nissan (11%).

Since the strike started, Toyota has moved into the top spot at 23%, followed by Chevrolet (20%), Ford (19%), Honda (16%), and Nissan (12%). This flexibility toward brand reflects consumer shopping habits along the path to purchase. According to CarGurus’ annual Consumer Insights Report, over 70% of shoppers say they are open to multiple brands when they start their search.

When asked if they agree with the UAW’s decision to strike, 31% of shoppers said they were supportive, 27% were unsure, 17% were indifferent, 15% opposed the decision, and 10% preferred not to provide an opinion.

The full survey from CarGurus and Autolist is available here.

Methodology
The Consumer Strike Sentiment Survey was conducted between Sept. 27 and Oct. 19, 2023, surveying 1,700 website and online app shoppers.

About CarGurus, Inc.
CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, effectively market, instantly acquire and quickly sell vehicles, all with a nationwide reach. The company uses proprietary technology, search algorithms and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S.*

CarGurus also operates online marketplaces under the CarGurus brand in Canada and the United Kingdom. In the United States and the United Kingdom, CarGurus also operates the Autolist and PistonHeads online marketplaces, respectively, as independent brands.

To learn more about CarGurus, visit www.cargurus.com, and for more information about CarOffer, visit www.caroffer.com.

CarGurus® is a registered trademark of CarGurus, Inc., and CarOffer® is a registered trademark of CarOffer, LLC. All other product names, trademarks and registered trademarks are the property of their respective owners.

About Autolist.com
Autolist.com is a CarGurus company dedicated to making automotive buying better for everyone. Offering the best apps and the largest selection of new and used cars in the United States, Autolist.com provides tools to analyze car prices, read reviews and buyers guides, research pricing history, and search top listings.

*Similarweb: Traffic Insights, Q2 2023, U.S.

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