Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Bart Wilson

Bart Wilson Director of Operations, Media

Exclusive Blog Posts

Managing Facebook Leads with 1 easy step

Managing Facebook Leads with 1 easy step

Luckily for us we have this Facebook Market Place Listing partner Hammer cultivating FBMP leads during/after hours into appointments for us. They have real…

How Local Influencers Can Boost Your Business

How Local Influencers Can Boost Your Business

‘Live On Location’ radio shows are still a staple in Saturday morning car sales. It’s been an effective way of capturing an audience&…

Fast vs First to Market

Fast vs First to Market

In a business where speed wins, first steps can lose.   Reasoning being—the distinct possibility—like is the case in any race&mdas…

Powerful Sales Questions to Ask and Sell More Cars

Powerful Sales Questions to Ask and Sell More Cars

  Using powerful questions in sales is one of the best ways to build rapport while gathering important information about your customer. …

Ways in Which Automotive Dealer Management System Helps Boost Profits and Minimize Expenses

Ways in Which Automotive Dealer Management System Helps Boost Profits and Minimize Expenses

Although most of the industries of today are transforming digitally, some skeptics do exist when it comes to investing in an automotive dealership manageme…

New car “intenders” anxious to own smart-equipped vehicles often underestimate costs

Tolerance for incremental spending of over $2,500 is low – GfK 

New York, NY; May 23, 2019: With sophisticated digital and smart technologies generating headlines for automakers, many consumers are beginning to consider these devices and services as essential equipment for their own cars.
But GfK research shows that people who see smart auto technologies as “must haves” still may have misconceptions about what they might cost.

The GfK AutoMobility™ Auto Tech Insights 2019 report provides a broad look at the desires and concerns of new car “intenders” – those who plan to buy a new vehicle in the next six months – when it comes to smart devices and services. GfK is a leader in the automotive research space; its AutoMobility study is based on over 250,000 in-depth interviews each year. 

The Auto Tech Insights report is drawn from research among over 1,000 intenders interviewed during the AutoMobility research.    

For seven key emerging auto technologies measured – from Autonomous Vehicles to Augmented Reality – GfK found that only small proportions of intenders who see the technologies as “must haves” would be willing to pay $2,500 or more for them. (See Table 1.)

Click here to see the release with tables included

For example, 30% of intenders consider an Electric Vehicle a “must have” – but only one-quarter (8%) of those enthusiasts would pay an incremental cost of $2,500 or more for one. Similarly, 25% say an Autonomous Vehicle is essential for them – but only one-quarter (7%) see $2,500 or more as the right incremental price; in fact, the same proportion (7%) expects to pay less than $500.

In addition, close to half of intenders who are sold on the idea of an in-vehicle Infotainment System or a Connected Vehicle say they want to pay under $500 for the capability.

GfK also found that male intenders are more likely to consider smart vehicle tech as a “must have.” Men planning to buy a new car are twice as likely, for example, to see Autonomous Vehicles and Augmented Reality as essential, compared to female intenders. In addition, male intenders are almost twice as likely to view Infotainment Systems and Electric Vehicles as “must haves.” 

Lack of understanding may be an issue

The fact that some consumers may not understand the actual prices of auto technologies may be part of a larger lack of clarity about the space. GfK found, for example, that one-third to three-quarters of new car intenders say they know little or nothing about these in-vehicle technologies. Two-thirds (69%) say they “have not heard of” or “don’t know much about” Augmented Reality, for example, and close to half say the same about Autonomous Vehicles (48%) and Active Safety Technology (47%).

Among the generations, Baby Boomer intenders (ages 55 and up) are the most likely to report knowing little or nothing about these device and services, with levels up to 26 percentage points higher than the general population. (See Table 2.) Gen X intenders (ages 39 to 54) are generally more in line with the national averages, while Gen Y (ages 21 to 38) has the lowest levels of awareness. 

About GfK

GfK connects data and science. Innovative research solutions provide answers for key business questions around consumers, markets, brands and media – now and in the future. As a research and analytics partner, GfK promises its clients all over the world “Growth from Knowledge.” 

For more information, please visit www.gfk.com or follow GfK on Twitter: www.twitter.com/GfK.

 Unlock all of the community & features  Join Now