Ok, maybe they wouldn’t walk five hundred miles but a new study from the eggheads at an American research group suggest customers are now willing to travel an average of 469 miles in order to buy a car.
According to Automotive News, the study was undertaken by Quantrell Subaru, a dealership in Kentucky that seems to be more on the ball than others through the doors of which you author has had the misfortune of strolling. Some dealers won’t even pay for chairs with four legs or to get those mice out of the coffee machine, so commissioning a study (something which sounds like formal education, the horror) would have been out of the question for them. In any event, the Quantrell survey showed that people are far more likely to look outside their own backyard for a vehicle these days thanks to the dearth of product on hand – both new and used.
“Most of it is just availability and the type of car you have,” said Brentley Jones, GM of Quantrell Subaru in an interview with Automotive News. His dealer also goes out of their way to pick up customers from the local airport if they are flying in to buy a vehicle. He goes on to say much of his fly-n-drive (our term, not his) clientele are well-researched folks who know exactly what they want before setting foot on the lot which definitely weeds out tire kickers. Nevertheless, TTAC always advises buyers to closely examine any used car before signing a note, making sure to get a third-party inspection for good measure. Yes, it would be irritating to fly or drive 500 miles and then not buy the vehicle which you were looking at. Know what’s even more irritating? Buying a lemon and having to deal with it for the next umpteen years.
Riffing on the state of today’s used car market, AN has also been pointing out how dealer-only auctions are in a state of flux compared to their business-as-usual model which has dominated the industry for years. While the evolution to digital sales instead of crowded lanes at which auctioneers would routinely take bids from the Coke machine was already underway, the pandemic accelerated those practices and did damage to those who weren’t ready (or refused to change).
Talking heads who know the remarketing industry suggest that over four-fifths of business is now done online, up from about half prior to 2020. This is exacerbated by a cratering of available product. One source estimated that roughly 64,000 vehicles passed through traditional auction lanes in one week during the middle of May this year, down from over 111,000 during the same time period in 2019. Dealers are now experimenting with sourcing vehicles through different channels, with savvy stores that can find ways to get the inventory they need without the headache of fierce competition and high fees.
Back at Quantrell, a quick look at their website shows 23 vehicles at their Subaru store with over a hundred models available across the dealer network, suggesting their used car managers are on the ball in terms of having product on the ground. Make no wonder some people are travelling long distances to their locations.
[Image: Matthew Guy]
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What is the median distance people are willing to travel? That seems like the more reasonable metric in this case. Someone who is willing to get on a plane and drive back probably doesn’t care too much whether it’s 200 or 2000 miles, but the latter brings the average up more.
Similar to how Jeff Bezos and two homeless guys have an average net worth of $50 billion, I don’t think 469 miles has any special significance other than to highlight that a decent number of people will travel for a car.
I flew half way across the country and drove my Lotus home. But for a regular car maybe delivery makes more sense. Also a dealer can have a specific model delivered as well. My point is these kind of surveys don’t always get to the truth, because there so many factors to consider.
I find this result shocking. I’m often suggesting to people frustrated by various aspects of the local market that they seek quotes from dealers elsewhere, and they are often reluctant. I personally have traveled 800 and 500 miles to buy cars, but people look at me like I have two heads when I tell them about those purchases.
The majority of dealerships in my town are scum. I was willing to travel 1,000 km to find what I wanted. Many dealerships will deliver to your door. One would be rather dumb to not use the internet or telephone to reach outside one’s local market.
I’ve bought at least 4 cars out of town, and 2 of them were out of state.
One advantage was that you could say you’re only in town today, which used to put pressure on the dealer to make the sale. On the other hand, it also meant you should be prepared to leave empty-handed after making a long trip.
Today, those advantages are gone since it’s a seller’s market. During my recent car shopping (in March), one out of state dealer politely refused to consider me as a customer because they decided to serve only their local customer base who had helped them build the business. They felt that selling off precious inventory to outlanders would betray their loyalties. Thankfully I hadn’t already driven there.
I ran across one dealership that was only willing to sell locally. The majority of small dealerships in my region were very competitive with dealers in larger towns. They found many customers were mad at the bigger outfits.
That’s turning the usual “I can only give you this deal TODAY on its ear!” Even if it does mean you’ll be going home in what you brung!
1,200 miles for me… I got my used C7 in NJ and drove back to FL in two days. It was a combination of exactly what I wanted along with (thanks to points from my job) free flights and hotels that made me go that far. The car was very well documented (over 50 photos) and I had spoken with the seller, who specialized in sports cars and high end custom trucks multiple times. He offered to ship the car but I wanted to see it in person and drive it home. The sales guy picked us up at the airport, drove some 30 miles to the lot where were we checked out the car. We had already agreed on the price so as long as the vehicle was “as described” the deal was done. It was one of the lowest pressure and easiest deals I’ve done for a car.
Given the current market I’ve debated driving about 300 miles to buy a new car. Having a trade-in and requiring the break-in period on the way home changes what is doable when talking about new cars.
My last 2 cars were both distance-purchases, although not more than a couple of hundred miles. If it was a long distance for a used vehicle, I would feel more confident if I could hire a location inspector.
Can’t wait for inventory to rebuild….
Prior to COVID and the car market being turned upside down-there were certain dealers recommended on the various make/model specific vehicle forums that were known to cater to out of state buyers. The transactions were described as “seamless and no surprises” and they would pick up the buyer from the airport. Until dealers are eliminated (yea-fat chance) this is one of the few ways buyers can “level the playing field” when car shopping.
I will probably swing by Quantrell Cadillac sometime this week and pick up that 2022 Lucid Air Grand Touring for my daughter. (Only 513 miles on the odometer so hopefully the battery will hold up for a few more months.)
And here I thought Arizona didn’t produce any automobiles.
I’ve wondered where such manufacturers as Lucid and Rivian peddle their wares, as I’ve seen no dedicated dealers for them.
3 of my last 4 cars have come from out of state.
Two I flew to pickup and drive home. All were doable in a day (early flight out – late arrival home)
The third was picked up by a broker friend who happened to be traveling through that city and picked up for me and delivered directly to our house.
For most people on this site, they are car people and know what they want. I fall in that category for sure. Colors/options etc are very specific. Some people, like my dad, could care less and don’t understand why I cant just get a car “down the street/or in town”.
For me it is worth it to spend a day or so to get what I want. Most people drive their vehicle for an extended amount time. I would rather travel a day to get what I really want, instead of living with something for years that I really don’t love – but got locally.
Exactly. My most recent purchase was a used vehicle from out of state. The car I wanted, with the options I wanted, was not available locally. If I didn’t really care what car I ended up with, and just had a specific price, I could have bought something locally. But I did (and do) care.
2018 Drove to Colorado and drove home used Miata
2019 Drove to Ohio and drove home used F-250
2020 Drove to North Carolina and drove home used used GX-460 (traded Enclave)
2022 Drove to NJ to help my son bring home a used Miata
All from western NY.
All good experiences except the last Miata. Dealer failed to mention the car had been wrecked. We ended up eating a $1200 repair because we had spent $500 to pick it up and it was exact make, model, color, transmission, etc.
Mostly these trips happened to get exact vehicle we wanted. Also, motivated to avoid salt belt used vehicles. New car purchases have all be local for last decade.
“Dealer failed to mention the car had been wrecked. We ended up eating a $1200 repair”
So, the old “don’t ask don’t tell scam” eh, I was wondering when the negative results would be mentioned not to mention all of the other bait and switch tactics that are used and all of the “other” steal your money and run scams on the internet, Craigslist – “the car truck, SUV is in another state, I’ll only be home for a couple days to uh handle your purchase, so ya better act fast, my phone is ringing off my belt”!
My last purchase in January involved a 600-mile drive as the local used truck market was (and still is) wack. I ended up with an older, but still low-mileage F-150 that wasn’t ridiculously overpriced. Spent about $500 on the round-trip, but saved a few thousand at a minimum.
Back in 1999 I had someone fly in from New Jersey to purchase a MKIV GTI from the dealership where I worked. We also had someone fly in from Chicago for a manual Passat wagon that we had at the time.
Being a car person, I’d be more than happy to fly to pickup an exact spec out of state. Great opportunity for a road trip.
I recently went from Lakeland FL to Daytona Beach FL to make a new car purchase – 120 mile trip each way – so on the lower side of the study.
550 miles round trip for my 2018 Buick a couple of months ago. Shopped hard and when it popped up the drive was almost an afterthought.
I think wasting almost a full day traveling is not really a waste if you are going to be living with the results for a few years.
Last March, shopping for a new MDX in our small town, the Acura dealer had plenty in stock but was very proud of the price and refused to acknowledge a $5000 factory to dealer incentive from Acura. A quick check of TrueCar in the Atlanta market (5 hour drive away) revealed dozens of MDX most all priced $5000 less than my local dealer would go. I took a couple screenshots, sent them to the local sales manager and instantaneously got within $200 of the Atlanta prices. Id definitely pays to shop a major market as dealers there have to be more competitive with other stores selling the same product. Then give the local guy a chance to earn your business and you may both win.
If I were in the desert I would definitely walk a mile for a camel but I doubt I would physically walk 500 miles for a new ride.
You’ve also got to watch out for scam fees when buying a car out of state. FL has the nation’s highest scam fees:
https://www.realcartips.com/newcars/482-documentation-fees-by-state.shtml
I took a train 290km to pick up a car I never saw in person, but it doesn’t have the same lyrical bounce.
Still, I made sure I still had the right to cancel the deal if I didn’t like the car in person. Not all dealerships would be good with that.
At the time it was a rare find (Used 2015 VW TDI wagon). From other comments I can see that people who want something specific always have been willing to go that extra distance. It just getting easier now and with ease of use comes more people adopting the idea.