Appealing to First-Time New Vehicle Shoppers: Is Your Vehicle Detail Page Set Up for Success?

Dave Jacobs recently graduated, moved back to his home state of California, entered the workforce, and is finally ready to upgrade his college beater. He wants to purchase his first brand-new car, but upon researching, he discovers there aren’t as many affordable choices in 2024 as he thought. “I just want a simple base model car without a lot of bells and whistles,” Dave said. “I need something reliable and practical, but I’m having a difficult time finding a new car I can afford.” This story is becoming more common and begs the question—Why is Dave having such a hard time finding a new car under $30k?

The primary consumer demographics for the sub-$30k market are first-time buyers (like Dave), low-income families, or those economically oriented either for practical reasons or necessity (those who might be on fixed incomes, perhaps). Many people in these demographics find themselves in a situation like Dave’s. And it’s true, finding a sub-$30K new car is much harder than it used to be.

The Shrinking Under-$30K Vehicle Market

In 2020, the number of sub-$30K new vehicles was 59. In November 2024, that number has shrunk to just 23, according to ZeroSum’s MarketAI platform. There are a few catalysts that are accounting for this drastic change.

• Inflation has had a long-term effect, pushing prices up substantially. Consider the marketed prices of various mainstream models now vs. early 2020:
  • Chevrolet Equinox (marketed price of $33,901 now vs. $26,912 in 2020)
  • Ford Escape ($34,100 vs. $28,041)
  • Nissan Rogue ($34,641 vs. $25,845)
  • Honda Accord ($33,941 vs. $28,904)
• In an era of supply-chain challenges, OEMs funneled scarce parts to more profitable models and discontinued many lower-end models such as the Dodge Journey, Ford Fusion, Honda Fit, Jeep Renegade, Kia Rio, and Toyota CH-R.
• OEMs prioritized more highly contented (and higher profit) trims at the expense of base model offerings. As an example, lower-end Hyundai Santa Fe trims (SE and SEL, both priced below $30K) accounted for 69% of that model’s inventory in early 2020. Today, its highest-end trims (Limited and Calligraphy, both priced above $45K) account for 61% of that model’s inventory.

What Can Dealers Do to Face This Challenge?

Dealers need to appeal to first-time buyers like Dave and adjust in this selling environment. These customers are more likely to buy used or delay buying a new car altogether rather than take on a car payment that has risen in the past few years by around 40%.

The best way for dealers to appeal to these price-conscious customers is to optimize Vehicle Detail Pages (VDP). The more information a customer like Dave has while researching vehicles—particularly around pricing and affordability—the more likely he is to determine that a new car payment is one that they can afford.

How a Dealership Can Optimize Its VDP

1. Feature Discounted Pricing off MSRP
   There are 27 dealers selling Nissan Rogues in the Los Angeles Designated Market Area (DMA), with marketed pricing compared to MSRP ranging from -$129 to -$4,063. These discounts could have a lot of influence on price-conscious customers that are looking to buy in the LA area. Dave's decision buying journey starts by looking at a vehicle’s price, so VDPs listing a reduced price have a big leg up on other nearby dealerships’ pages that don’t.
2. List All Available Incentives
   Informing shoppers like Dave of offers such as cashback, financing, loyalty, recent graduate, and military discounts directly on the VDP can tip the scales in a dealer’s favor. For buyers where every dollar counts, these offers may convert a no to a yes or a “later” to now.
3. Provide Trade-In Offers and Information
   Dave’s college beater may not be worth much but providing him with tools that unlock a few thousand dollars' worth of value can help him see a path to a down payment that doesn’t have to come out of his pocket. Resources such as Kelley Blue Book’s Instant Cash Offer can streamline this process and reduce anxiety for buyers who are navigating it for the first time.
4. Supply Payment Calculators That Incorporate These Elements
   First-time buyers are monthly payment oriented. Dave needs reassurance and clarity that he can make the payments before he commits. Calculators on a VDP that can populate discounted pricing, incentive offers, and trade-in values are key resources.
   
   

   Most dealers make one or more of these elements available on their VDPs, but few have all of them. With economic pressures affecting a wide range of buyers, providing a complete set of information and tools can be a competitive advantage.

Social Media Advertising

Once a dealership has optimized their VDPs, how can they be sure that their ads are getting in front of the right audience? ZeroSum prioritizes a dealer’s live inventory feed and pricing in ads on Facebook, Instagram, and other social media sites. ZeroSum’s MarketAI ensures that the ads are only shown to in-market buyers who are ready to purchase, based on specific demographic information. First-time new car buyers like Dave are a likely audience for social media advertising that pushes them to a dealers VDP for a car they can afford.
ZeroSum’s MarketAI provides detailed data to dealerships with VIN-level reporting. By leveraging that data and tracking key metrics, ZeroSum identifies what's working with dealer's campaigns and what needs tweaking. MarketAI makes these changes automatically, optimizing a dealer’s advertising spend and powering seamless, inventory-specific digital ad campaigns.

Ads automatically adjust based on a dealer’s active inventory and retarget low-funnel shoppers through various advertising solutions, including OTT/CTV video ads, social media ads, and Google Vehicle Ads, targeting shoppers actively looking for cars. MarketAI determines who the right buyer is and the exact right moment to show them an ad. With ZeroSum, dealerships can showcase their inventory to in-market shoppers, eliminate wasted ad spend, and receive valuable market data and intelligence on their competition.

Meeting the Challenges of a Changing Market

The disappearance of many sub-$30K vehicles has reshaped the automotive market, leaving both buyers like Dave and dealerships searching for practical solutions. While the challenges are real, dealerships can implement these actionable strategies to capture the attention of budget-conscious shoppers. These steps, along with a dynamic advertising approach, can make a significant difference in reaching the right audience at the right time.

ZeroSum’s MarketAI provides the insights and tools your dealership needs to make an impact. Let us help you connect with in-market buyers, optimize your advertising campaigns, and increase sales. Contact us today to learn more and take the next step in improving your dealership’s results!