For 79% of car buyers visiting an independent dealership, purchasing a vehicle is not a want but a need.
And by understanding the needs and profiles of shoppers on their lot, Elizabeth Stegall, Cox Automotive senior director, client retention, said independent dealers can improve sales and retain customers.
What she means: Using responses collected from nearly 400 used-car buyers from September 2024 to August 2025, Cox Automotive produced “Know Your Buyer, Grow Your Lot.”
With consultation from NIADA, it built a profile of buyers of vehicles aged 11 to 20 years.
According to the numbers…
A total of 77% earn less than $75,000.
Nearly half (43%) have fair or poor credit.
And cash buyers are the majority, at 56%.
Taking their time to shop: Findings revealed that the average independent car shopper spends 97 days shopping for vehicles and conducts more than 16.5 hours of research.
Stegall said the reason for their long shopping cycle is that “they have a need before they have the means to pay for it.”
To help, she said dealers need to post 20 photos of each vehicle and write full descriptions, including the service history, in the listings.
“Marketplaces are just like a digital mall, like Amazon or Walmart. You want to have as much content about that piece of inventory as possible to make an educated decision,” Stegall said.
Cash is the only option: These buyers are willing to write a $9,000 check for an 11- to 20-year-old vehicle, but it's not because they have it to spare. Instead, as Stegall pointed out, it is their only option as pricy financing terms are often out of their reach.
Dealers should ensure these sales can be completed in under 90 minutes for these customers.
F&I products should be mentioned briefly and early in the sale process to avoid friction.
Building trust and returning customers: According to the shoppers, 60% were satisfied with the price they paid for the vehicle, but only 51% believed they got the best deal.
Stegall expects that gap to improve in the next two years, given the Federal Trade Commission’s emphasis on pricing transparency.
While 60% are satisfied with the shopping experience, only 21% indicated they would return to the dealership.
“It’s the car, the price, condition, and does it meet my needs?” Stegall said. “When the car is the star, the dealership is irrelevant as long as you know they’re fair and reasonable…There is no brand loyalty to a dealership, but having a positive experience would make me want to do business with you again.”
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For dealers: Understanding the customer and their needs will help with sales and also referrals. Stegall stresses the need for empathy and building trust with this set of customers.
“This is a huge purchase in their world..When you put all of your savings into it, and this is what is going to keep a roof over your head, it’s a big deal,” she said.
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