Car dealers and their customers are increasingly out of sync on what matters most, according to a new survey that reveals significant gaps in priorities across key industry trends.
The details: Conducted by Urban Science and the Harris Poll, the survey found that the gap between dealers’ perceived industry momentum and car buyers’ hesitation about the process has widened, focusing on several key market trends.
According to the survey, dealers believe consumer interest in EVs will grow—but only 47% of auto buyers think EV-only options by 2040, with 48% saying they may never be ready.
Dealer enthusiasm for AI is high—but positive consumer sentiment for the tech’s involvement in the buying process has declined year-over-year, even as buyers’ awareness of AI in the space has grown.
What they’re saying: “This discrepancy may be driven, at least in part, by visibility. Dealers have daily, hands-on experience with the operational upgrades happening behind the scenes, such as the integration of AI-powered tools and digital retail solutions. Auto buyers, on the other hand, may only interact with dealerships once every few years,” said Urban Science.
Between the lines: The survey does reveal some shared concerns among dealers and buyers, including the affordability of vehicles and tariffs—with three out of five car buyers (surveyed in February) indicating that they believe the levies will have a negative impact on the auto industry.
Why it matters: For dealers, understanding where shoppers stand on key issues—like EV adoption, AI in the buying process, affordability, and tariffs—is essential to building trust and making sales. By meeting consumers on their terms and addressing their specific concerns, dealers can better guide the purchase journey and close more deals in an increasingly complex market.
Digging deeper: One of the most interesting findings revealed in the study was dealers' and consumers' positioning on direct-to-consumer (DTC) sales models.
93% of dealers see the DTC model as a competitive threat—whereas 90% of car buyers would opt for a traditional dealership, compared to 52% who would be open to buying from an online-first retailer.
94% of dealers think the DTC model appeals to buyers—but only 64% of car shoppers agree—with Gen Z seeming to shift back toward a preference for in-person buying experiences.
“For auto buyers, a vehicle represents a major purchase. Most consumers wouldn’t buy a house sight unseen, and the same holds true for cars. Indeed, auto buyers indicated their top concern with the DTC model is the inability to test drive, while the biggest draw is transparent, upfront pricing,” according to Urban Science.
Bottom line: While dealers focus on preparing for an AI-driven, electric future, their customers are dealing with immediate cost pressures that show no signs of easing. The dealerships that succeed will be those that balance industry innovation with addressing customers' most pressing concerns about affordability and transparency.
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