Although customers were already patronizing digital marketplaces like Cars.com to find and price vehicles, the pandemic, inventory shortages, and high prices are pushing them even further away from the showroom.

To keep up, OEMs, captive finance companies, and retailers are building on the digital experiences offered in other industries, such as retail. In this vision, customers can do more than browse available inventory. They can also choose their own options and trim, apply for financing, and schedule delivery (and even returns). The post-purchase experience looks different, too, as customers do everything virtually, from managing their loans to purchasing additional miles on their leases to downloading service updates.

For the 99% of customers who are dissatisfied with the traditional buying experience, this could be a welcome change. Unfortunately, research indicates that companies aren’t as far along on their digital journeys as they might believe. While our study found that 73% of companies believe they are overperforming when it comes to digital transformation, recent research from McKinsey shows physical touchpoints (and unsatisfying interactions) still dominate the buying experience. McKinsey also discovered that while the majority of purchase negotiations take place in the retailer’s showroom, most consumers are more interested in haggle-free, online price quoting and strongly prefer to complete loan and trade-in applications digitally.

For many customers, buying a car starts with figuring out what they can afford. Online tools like loan calculators help them do this, but only 27% of captive finance companies rated their online automobile financing tools as far above average.

Even worse, only 24% of those surveyed report that the prices on their website consistently match what customers actually pay. That’s a problem, given that 74% of consumers say communicating honestly and transparently is more important now than before the pandemic.

Automotive’s path-to-purchase is complicated. As a result, its digital experiences are lagging behind industries with simpler ecommerce transactions, such as apparel. Our research reflects this complexity: Less than one in five OEMs and retailers believe their digital storefronts are engaging and mobile-friendly. The same number also report inventory accuracy problems online.

Customers who want to use online channels to customize the options on a brand new vehicle also face challenges, according to retailers. For example, 79% report that customizing trim and color options online isn’t easy. The amount of time it takes to complete a transaction also leaves much to be desired, with only 21% of OEMs and retailers believing they offer a fast buying experience.

It makes sense that customer experiences are complicated before they complete a purchase — given the number of players involved in trading in, ordering, and financing a new vehicle. Caring for customers after the sale should be simpler, but right now, digital post-purchase experiences are challenging companies: 79% of OEMs and retailers report customers have trouble accessing their personal account or service case through digital channels. Similarly, in captive finance, 75% of companies report that their customers have trouble accessing their personal account or current customer service case online, over text, or on the phone.