Online Car Buying Stalls: Only 7% of US Buyers Go Digital

The dream of a seamless, click-to-buy car purchase remains largely unrealized in the United States. A new report reveals a stark reality for the automotive industry: despite a major push by automakers and tech giants, only 7% of new-car buyers in the US complete their purchase online.

This figure stands in direct contrast to the billions of dollars invested in digital retail platforms by manufacturers and retailers alike. The data highlights a significant gap between digital ambitions and actual consumer behavior, suggesting the traditional dealership model remains deeply entrenched.

The report underscores a critical challenge for an industry racing to modernize. While the path to purchase may increasingly start online, the final transaction still overwhelmingly happens in person.

The 7 percent statistic represents a key data point in understanding the modern automotive market. This low adoption rate for online purchases comes at a time when the industry has been aggressively promoting digital solutions. The goal has been to streamline the buying process, reduce friction, and compete with the convenience of e-commerce giants.

Despite these efforts, the vast majority of consumers—93%—still opt for a traditional in-person transaction. This preference persists even as automakers and third-party platforms have invested heavily in creating sophisticated online configurators and purchasing tools.

The persistence of this trend suggests that the barriers to online adoption are not merely technological. Consumer trust, the desire for a physical inspection, and the negotiation process remain significant factors in the decision-making journey.

• Only 7% of new-car buyers complete transactions online
• 93% of purchases still occur through traditional channels
• Major automakers and Amazon have invested in digital platforms
• The trend highlights a gap between digital strategy and consumer adoption

The automotive industry has been on a concerted campaign to shift sales online. Automakers and major retailers have invested significant resources into developing platforms that allow customers to configure, price, and even purchase a vehicle without ever stepping into a dealership. The vision is a streamlined, transparent process free from the traditional pressures of the showroom floor.

Amazon, a titan of e-commerce, has also entered this space, further signaling the industry's belief in a digital future. The goal is to replicate the success seen in other retail sectors, where online transactions have become the norm. However, the new data indicates that the automotive sector faces unique challenges.

The car-buying experience is fundamentally different from purchasing a book or a piece of electronics. It involves a high-value item, complex financing, and a significant emotional component. For many buyers, the ability to test drive, inspect the vehicle, and negotiate face-to-face remains an indispensable part of the process.

Despite a major push by automakers, Amazon, and others to move past the dealership.

The report's findings reinforce the resilience of the traditional dealership model. For decades, dealerships have been the primary point of sale for new vehicles in the US, a structure supported by state franchise laws. This model provides a physical presence for test drives, service, and immediate delivery—services that are difficult to replicate purely online.

While the initial research and configuration process has largely migrated to the web, the final steps of the transaction remain anchored in the physical world. Consumers appear to value the tactile experience of a test drive and the reassurance of a final inspection before committing to a purchase that often costs tens of thousands of dollars.

The data suggests that rather than replacing dealerships, digital tools are being integrated into the existing retail framework. Many dealerships now use online platforms to manage inventory, schedule appointments, and provide price transparency, creating a hybrid model that blends digital convenience with physical interaction.

For consumers, the current landscape offers a mix of digital convenience and traditional service. The online research phase is more robust than ever, with buyers able to compare models, read reviews, and get pre-approval for financing from their homes. However, the final purchase still requires a visit to a dealership.

This hybrid approach means that while the car-buying journey has evolved, the endpoint has not. Shoppers can expect to spend significant time online before ever contacting a dealer, but they should also prepare for the traditional steps of negotiation and paperwork in person.

The 7% figure indicates that a fully digital experience is not yet the standard. As the industry continues to experiment with new models, including subscription services and direct-to-consumer sales, the balance between online and offline may shift. For now, the dealership remains the final destination for the vast majority of new-car buyers.

The report's findings present a clear picture of the current state of automotive retail. While digital tools have transformed the early stages of the car-buying process, the final transaction remains a predominantly physical experience. The 7% adoption rate for online purchases is a sobering statistic for an industry that has invested heavily in a digital-first future.

This data does not necessarily signal the failure of digital retail, but rather highlights the unique nature of the automotive market. The high value, complexity, and emotional significance of a car purchase create a high bar for online-only solutions.

Looking forward, the industry will likely continue to refine its hybrid approach, seeking ways to blend the efficiency of online tools with the trust and service of the traditional dealership. For now, the road to a new car still runs through a showroom.