Don’t blame safety features for high car prices, experts say
Car prices are rising, but the cause may not be what you think. Don’t blame safety features as vehicle prices soar, the group says.
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- Despite affordability concerns, car buyer satisfaction reached an all-time high in 2025 thanks to new technology and streamlined processes.
- Tariffs on imported cars and parts caused 34% of new car buyers to accelerate their purchases.
- Currently, the majority of buyers consider owning a car to be a financial burden due to high prices, insurance, and interest rates.
Despite continued affordability concerns as the average transaction price for a new car exceeds $52,000, the majority of car buyers appear to be satisfied with their dealership buying experience.
This is one of the key findings of Cox Automotive’s 16th annual Car Buyer Journey (CBJ) study, released on January 13th. The study found that new technology, combined with in-person sales at dealerships, provides buyers with a seamless retail experience and increases vehicle purchase satisfaction in the United States. This study was conducted in the fall of 2025. Cox surveyed 2,300 consumers who had purchased a new or used car in the past 12 months.
High car purchase satisfaction scores are due to the emergence of AI-powered platforms, a heavy reliance on third-party shopping sites for research, and other integrated retail tools that help streamline the process for buyers. This increased transparency and provided a more personal experience, the study said.
Lori Wittman, president of retail solutions at Cox Automotive, said overall satisfaction with the car-buying process will reach an all-time high in 2025.
“Even with affordability being a top priority, buyers know exactly what they need: efficiency, transparency, and tools that actually help make their vehicle purchase process easier,” Whitman said in a statement. “Dealers succeed when they provide an intelligent, seamless experience. 84% of shoppers who use AI-powered online tools report high satisfaction rates.”
How tariffs affect car purchases
President Donald Trump has imposed a 25% tariff on all imported cars and auto parts at the end of March 2025. There was widespread concern among analysts that automakers would be forced to pass on the additional costs of importing cars and parts from overseas suppliers to consumers. That’s why a Cox Automotive survey found that 56% of shoppers oppose higher tariffs.
The survey found that 34% of new car buyers accelerated their decision to buy a new car due to fear of rising car prices. It also found that 68% of people who bought before the tariffs were said to be satisfied with the price they paid. This advance in car purchases led to an increase in car sales in the first half of this year.
The survey found that 81% of new car buyers expected prices to rise as a result of the tariffs, but most car companies had sufficient local inventory and were able to keep tariff costs low on new cars until the end of the year.
As the Detroit Free Press reported in December as part of the USA TODAY Network, many automakers have begun increasing mandatory shipping fees listed on window stickers to recoup some of the additional costs, instead of increasing the actual MSRP.
Changing attitudes towards car ownership
Another key theme last year was that consumers increasingly view car ownership as a financial burden.
According to the survey, high vehicle prices are a top concern, with 62% of buyers saying leasing or owning a car is too expensive. Kelley Blue Book estimates that the average new car manufacturer’s suggested retail price (MSRP) peaked in December at more than $52,600. Gas, car insurance, maintenance costs, and high interest rates added to the burden.
Research shows that as prices rise, more consumers are considering both new and used cars. Additionally, more buyers are considering leasing rather than purchasing as an option for a new car.
In 2025, two-thirds of buyers will be considering both new and used cars, up from 57% previously. Nearly one-third of new car buyers are considering leasing over buying, an all-time high, and leasing typically saves more than $100 on monthly payments.
Another trend last year was that only 29% of buyers started the buying process knowing exactly what they wanted in a car, down from 37% five years ago. However, satisfaction with assortments has improved, with 62% of buyers reporting being very satisfied, up from 36% during the 2022 inventory crunch.
Recorded highest customer satisfaction ever
Still, Cox Automotive found that shoppers who bought a new or used car in the past 12 months reported an increase in satisfaction, with three-quarters of new car buyers saying they were very satisfied with the process, an all-time high.
“Factors for improved scores include better vehicle selection, a more efficient shopping process, and a smoother dealer experience,” the study states. “It’s clear that the car buying experience is improving: 44% of new car buyers say it’s at an all-time high, and 41% of used car buyers say their most recent purchase was better than the last.”
In this survey, only 6% of respondents reported a worse experience, the lowest score in five years. One respondent summarized, “It was seamless from online to the dealership. I was able to complete most of the work online, including getting faster approvals.”
Overall, retail dealer satisfaction reached 76%, close to the record of 77% set in 2020. Used car buyer satisfaction was 75%, just shy of its all-time high. New car buyer satisfaction remained steady at 81%, matching the record set in the previous survey.
AI can help
Cox Automotive said the results support the idea that “primarily digital buyers,” or those who complete at least 50% of the required process online, are the most satisfied.
And AI is aiding the process. The study found that AI usage was relatively modest among all car buyers, but those who used AI tools reported “higher satisfaction, higher trust in their dealers, and faster and easier processes.” Approximately 63% of auto dealers said investing in AI tools will improve their long-term success.
“When we asked about AI, it was both AI-powered search engines (like Google’s AI mode) and new AI chat machines like ChatGPT, which act like a coach or an ‘in-the-know’ neighbor,” Cox Automotive spokesperson Mark Schirmer told the Free Press.
Other examples of AI-assisted tools include personalized vehicle searches and websites that help you price and negotiate to find a car that fits your budget without hidden fees. In June 2025, car shopping website CarGurus announced an AI-powered search experience, saying, “This innovation will be embedded directly into the CarGurus website to provide a more personalized and intuitive car shopping experience.” Now buyers can conduct searches combined with “expert automotive intelligence and real-time vehicle data” to research, compare, and buy new and used cars in the United States.
In a survey of 2,300 buyers, 53% completed all steps in-store, but only 7% purchased entirely online.
“When asked about their preferences, 63% said an omnichannel approach is ideal, and 28% want ‘everything online,’” the Cox Automotive report states.
Jamie L. Lareau is senior auto writer for USA Today and covers Ford Motor Company for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @Jalalean. To sign up for our automotive newsletter. become a subscriber.
