ATLANTA — The most important signal for financial institutions in Cox Automotive’s 2025 Car Buyer Journey Study may not be about cars at all: two-thirds of buyers now cross-shop new and used vehicles, a historic shift that is reshaping how consumers think about price, financing, and risk — and forcing lenders to rethink how they engage, underwrite, and retain customers.
The 16th annual study of 2,300 recent vehicle buyers shows that affordability pressures have fundamentally altered decision-making. In 2025, 66% of buyers considered both new and used vehicles, up sharply from prior years, and among new-car shoppers, 29% weighed leasing versus buying — an all-time high.
For lenders, that means fewer predictable paths to financing and more last-minute pivots that can upend deal structure, credit risk, and product placement.
At the same time, paradoxically, satisfaction with the car-buying process hit record highs. Seventy-six percent of new-vehicle buyers said they were highly satisfied — an all-time high — driven largely by smoother digital tools, better inventory, and faster dealership workflows.
Cox says this improvement is being powered in part by AI and omnichannel retailing. Buyers who completed more than half of the process online were consistently the most satisfied, and among those who used AI tools such as ChatGPT, Copilot, or AI search summaries, 84% reported high satisfaction.
Lori Wittman of Cox Automotive summed up the tension facing dealers and lenders: even with affordability “top of mind,” buyers primarily want efficiency, transparency, and tools that make the process easy.
Tariffs, Timing, And Lender Risk
Tariffs played an outsized role in 2025 behavior. One-quarter of all shoppers — and 34% of new-car buyers — said tariffs pushed them to buy sooner, helping fuel strong first-half sales. Most still expected prices to rise (81%), yet 68% of those who accelerated purchases were satisfied with the price they paid.
For lenders, this suggests more “compressed” decision timelines — fewer days to evaluate credit, structure deals, and place ancillary products.
Affordability Reshapes Everything
Cost concerns remain acute. Sixty-two percent of buyers said leasing or owning a car is too expensive, citing high prices, insurance, fuel, maintenance, and interest rates. Kelley Blue Book estimates the average new-vehicle MSRP topped $52,600 in December 2025.
That financial strain explains why more buyers are cross-shopping, considering leases, and entering showrooms with less certainty about what they want. Only 29% started the process sure of their vehicle choice, down from 37% in 2020.
For lenders, that creates more volatility — but also more opportunity to guide buyers with smarter digital prequalification, education, and flexible products.
Why AI Matters To Finance
AI usage is still modest — 25% of new-vehicle buyers used AI tools — but those who did were among the most satisfied in the entire survey. Buyers said AI helped them with real-time answers, personalized recommendations, and interactive decision tools.
Looking ahead, 83% of consumers believe AI will reshape car buying within 10 years, and 63% of dealers say investing in AI now is critical. For lenders, that signals rising expectations for instant decisions, smarter fraud controls, and more personalized offers.
Omnichannel Is Not Optional
Only 7% of buyers purchased entirely online, while 53% completed every step in person at the dealership. Yet 63% said the ideal model blends online and in-store — an omnichannel experience.
Gaps remain that matter directly to FIs:
- 48% want to apply for credit online, but only 33% actually do
- 40% want to select F&I products online, but just 16% can
- 37% want to finalize price online, yet only 19% manage to
For lenders, this highlights a clear growth area: better digital credit tools, clearer online disclosures, and tighter integration with dealer systems.
Where Buyers Shop — And Why It Matters
Third-party sites dominate research. Seventy-five percent of buyers used third-party platforms such as Edmunds, Cars.com, Kelley Blue Book, or Autotrader — more than dealership sites or automaker sites.
That means lenders increasingly must influence buyers before they ever speak to a dealer, not just inside the showroom.