A car buyer's journey is multifaceted, veering in different directions. Although the course from prospect to qualified lead to customer is winding, the automotive sales funnel provides a general framework for car dealers to build brand awareness and consumer interest, establish their intent, and create a sense of urgency, prompting them to take action.
As a car dealer, understanding this funnel is key to ensuring success in today's competitive used car market. A well-structured automotive sales funnel allows dealerships to track potential buyers through each phase — whether they start at the top of the funnel or near the bottom.
Read on for a detailed explanation of the automotive sales funnel and actionable steps you can take to motivate car buyers and get them to the ultimate goal: helping your dealership turn a profit.
What Are the Stages of the Automotive Purchase Funnel?
In the simplest explanation, the sales funnel stages include awareness, interest, consideration, and decision. However, the automotive sales funnel is nuanced.
Unlike traditional retail (i.e., purchasing a shirt, shoes, etc.), buying a car involves significant financial commitment. Not only that, but a car purchase also comes with an emotional investment. These financial and emotional aspects make the sales process more complex and require careful nurturing at each stage.
In turn, understanding customer needs and behaviors enables dealers to develop targeted strategies to make this complicated process easier and increase positive outcomes.
Each phase provides an opportunity for dealerships to connect with prospects in meaningful ways that can advance the relationship toward purchase.
Awareness
At the top of the funnel are potential buyers doing initial research and vehicle exploration online, looking for pricing, makes, models, and trim options that pique their interests. Capturing a vehicle shopper's attention at this stage is vital.
As more than 90% of potential buyers research online before ever stepping foot in a dealership, you need an optimized website to draw attention1. Building an optimized website that hosts your digital showroom will capture consumers' attention. Include high-resolution pictures, 360-degree interior tours, and video walkthroughs to enhance the omnichannel experience.
Your optimized website should feature educational content about vehicle options, financing, and ownership benefits. Doing so establishes you as a trusted, well-informed advisor. This approach positions your dealership as customer-focused rather than transaction-oriented.
To boost your dealership's awareness, focus on both owned and paid media. Owned media includes your website, social media channels, and Google My Business profile — make sure they're optimized, you're active on them, and the content is up to date. For paid media, use traditional advertising like billboards or local television ads, and support it with digital ads on Google, Facebook, and Instagram.
Interest
Customers who enter the interest stage are commonly referred to as a "lead." This is the point where they've shown enough interest to reach out to your dealership, whether by submitting a form on your website, calling in, or messaging you on social media and are comfortable sharing their contact information (i.e., name, phone number, and email address).
Once your team receives the lead, they can take a few steps. First, check your CRM to see if the lead already exists in your system. You might discover that this person inquired about a vehicle in the past but didn't make a purchase, or that they're a returning customer. Any history gives your team valuable context for the follow-up conversation.
If the lead isn't in your CRM, doing a quick online search can be helpful. Look them up on Google, LinkedIn, and Facebook. This can provide helpful background on who they are and allows your sales team to personalize their outreach, tailoring information about relevant offers.
Since your team often juggles multiple tasks and works with other customers, responding quickly to new leads is critical. You can set up an automated email to let the customer know you received their request for more information and will contact them shortly.
Consideration
At this critical point in the automotive purchase funnel, potential buyers will have probably narrowed their search to a few specific make/models and are ready to browse your inventory in person.
This is the stage where the customer comes to your dealership to test drive the vehicle they are interested in, get a vibe for your dealership's customer service, and interact with your salesperson face to face. It's a really important stage as a customer isn't only confirming they like the car but also getting their first impression of your dealership.
To make the experience seamless, it's important to prepare in the following ways:
- If your customer has scheduled a test drive, make sure the vehicle is clean and easily accessible when they arrive. You don't want them waiting while the car is pulled from the back lot. If you have similar vehicles that might meet their needs, consider having those available for comparison.
- Your salesperson plays a huge role during the test drive. They should actively listen to the customer, answer questions, and build rapport. Asking about the customer's lifestyle — how much they drive, if they have a family, or what features matter most to them — can help match them with the right car and open the door to potential upgrades or add-ons later.
Even if the customer isn't ready to decide on the spot or wants to visit other dealerships, the impression you leave can make all the difference. Send them an email or text thanking them for their time and answer any outstanding questions they might have had.
Decision
As we reach the bottom of the automotive sales funnel, prospective customers have decided on a vehicle at your dealership and want to negotiate the price.
Once a price has been agreed upon, ensure your subsequent purchasing process is as smooth as possible to reduce the administrative burden on buyers. Additionally, be ready with flexible financing options to accommodate various budgets.
Additionally, be clear about service plans, warranties, and after-purchase support — and push car incentives to help close the sale.
Make Traveling Down the Automotive Purchase Funnel Easier with ACV MAX
ACV MAX inventory management and merchandising tools empower your dealership to stock the right vehicles at the right prices. Our data-driven platform analyzes demand patterns in your local area and provides competitive pricing to optimize your mix of used vehicles. The AI-powered description generator can create compelling vehicle listings highlighting the features buyers care about most.
With ACV MAX, you can transform your digital presence, improve vehicle presentations, and guide more prospects through your automotive sales funnel. To learn more, schedule a demo today.
Sources
- Andersen, D. (3 March 2025). 38 Statistics Automotive Marketers Need to Know in 2025. Invoca. Retrieved on March 31, 2025, from: https://www.invoca.com/blog/automotive-marketing-statistics
