Capital One Car Buying Outlook finds nearly 70% of Car Buyers View Dealers as Trustworthy

Rhea-AI Summary

Capital One (NYSE: COF) released the 2025 Car Buying Outlook showing a shift toward higher dealer trust and hybrid buying habits. 69% of car buyers now view dealers as trustworthy, up from 44% in 2023. Buyers familiar with digital tools show 71% trust and buyers who trust dealers are almost twice as likely to return (46% vs. 24%).

Dealers report 86% see digital tools as a competitive edge (a >25 percentage-point rise since 2021). In-person shopping remains important: shoppers who bought in-person report higher perceived transparency (40% vs. 18%), excitement (67% vs. 56%) and control (43% vs. 23%) than online shoppers.

Positive

• Dealer trust rose to 69% from 44% in 2023
• Buyers familiar with digital tools show 71% dealer trust
• Buyers who trust dealers are 46% likely to return vs 24%
• 86% of dealers say digital tools give a competitive edge (>25pp since 2021)

Negative

• 31% of buyers still do not view dealers as trustworthy
• Generation Z reports higher friction: 34% overwhelmed, 29% stressed
• Gen Z relies on external sources 53% when choosing dealerships

News Market Reaction – COF

+1.09%

1 alert

+1.09% News Effect

On the day this news was published, COF gained 1.09%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Buyers trusting dealers: 69% Trust in digital-savvy buyers: 71% Repeat purchase if trusting: 46% vs 24% +5 more

8 metrics

Buyers trusting dealers 69% 2025 Capital One Car Buying Outlook; up from 44% in 2023

Trust in digital-savvy buyers 71% Car buyers familiar with digital tools who view dealers as trustworthy

Repeat purchase if trusting 46% vs 24% Share likely to return if they trust dealers versus if they do not

Dealers favoring digital tools 86% Dealers saying digital tools give competitive edge; >25 pts above 2021

Buyer survey sample 2,042 buyers U.S. car buyers surveyed online Aug 12–24, 2025

Buyer survey margin of error +/-2.2% Statistical margin of error for 2025 buyer survey

Dealer survey sample 489 dealers U.S. car dealers surveyed Aug 11–22 and Sep 15–17, 2025

Gen Z overwhelmed 34% Gen Z car buyers reporting feeling overwhelmed by the buying experience

Market Reality Check

Price: $195.64 Vol: Volume 4.07M is 2% above ...

normal vol

$195.64 Last Close

Volume Volume 4.07M is 2% above the 20-day average of 3.98M, indicating typical interest ahead of this release. normal

Technical Trading 12.1% above the 200-day MA of $202.73 and 2.2% below the 52-week high.

Peers on Argus

COF was up 1.45% while peers were mixed: AXP +1.97%, ALLY +1.36%, SYF +0.48% ver...

COF was up 1.45% while peers were mixed: AXP +1.97%, ALLY +1.36%, SYF +0.48% versus PYPL -2.56% and SOFI -1.21%, suggesting this survey-driven news is company-specific rather than a broad sector move.

Historical Context

5 past events · Latest: Nov 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 04	Dividend declaration	Positive	-0.5%	Quarterly common and preferred dividends declared with December 1, 2025 pay date.
Nov 04	Card partnership launch	Positive	-0.5%	Launch of no-fee T-Mobile Visa credit card with rewards on purchases.
Oct 29	Community initiative	Positive	-1.1%	$25M open call to expand affordable homeownership under $265B benefits plan.
Oct 21	Q3 2025 earnings	Positive	+1.0%	Strong Q3 results with $3.2B net income and 23% revenue growth.
Sep 26	Earnings webcast notice	Neutral	-0.2%	Scheduling of Q3 2025 earnings release and conference call webcast.

Pattern Detected

Recent positive corporate and partnership announcements have often seen muted or negative next-day moves, with only the strong Q3 earnings showing a clearly aligned positive reaction.

Recent Company History

Over the last few months, Capital One has combined shareholder returns, product expansion, and community initiatives. A quarterly dividend of $0.80 per share and the launch of the T-Mobile Visa rewards card both preceded slight share declines. A $25 million open call to expand homeownership access also saw a negative reaction. By contrast, robust Q3 2025 results—net income of $3.2 billion and revenue up 23% to $15.4 billion—aligned with a 1.01% gain. Today’s auto trust survey fits the theme of building brand and ecosystem strength rather than near-term financial change.

Regulatory & Risk Context

Short Interest: 1.25%

Short Interest

1.25%

0% 15% 30%+

low

Short interest at 1.25% of float with 2.7 days to cover is low, suggesting limited short-driven volatility around brand and survey-related announcements like this auto trust outlook.

Market Pulse Summary

This announcement highlights growing consumer trust in car dealers, with 69% of buyers now viewing d...

Analysis

This announcement highlights growing consumer trust in car dealers, with 69% of buyers now viewing dealers as trustworthy and 86% of dealers seeing digital tools as a competitive edge. For Capital One, it reinforces positioning in auto finance and the importance of blending online research with in‑person experiences. In evaluating impact, investors may focus on how such sentiment data supports long-term customer acquisition, repeat business dynamics, and the company’s broader auto lending strategy rather than immediate financial metrics.

Key Terms

digital tools, margin of error, diagnostic tests, panel-level, +4 more

8 terms

digital tools technical

"Car buyers familiar with digital tools are more likely to trust dealers (71%)"

Digital tools are software applications and online platforms that help individuals and businesses perform tasks more efficiently and effectively through electronic devices. For investors, these tools provide quick access to information, streamline decision-making, and enable real-time monitoring of financial data, much like how a calculator or GPS makes everyday tasks easier and faster. They are essential for navigating today’s fast-paced, technology-driven financial environment.

margin of error technical

"conducted online from August 12 through August 24, 2025 with a margin of error of +/-2.2%"

The margin of error is a measure of how much the results of a survey or estimate might differ from the true value, due to random chance. It indicates the level of uncertainty in the data, helping investors understand how much confidence to place in the results. Think of it like the wiggle room around a guess—smaller margins mean more precise estimates.

diagnostic tests technical

"Diagnostic tests (panel-level, statistical, logic-based, refielding) were conducted"

Diagnostic tests are assessments used to evaluate the health or condition of a company or market to identify potential issues or opportunities. They help investors understand underlying strengths or risks, much like a medical check-up reveals health status before symptoms appear. By providing insights into financial stability or vulnerabilities, diagnostic tests support more informed investment decisions.

panel-level technical

"Diagnostic tests (panel-level, statistical, logic-based, refielding) were conducted"

"Panel-level" describes data or analysis that considers an entire group of related items, such as multiple companies, regions, or time periods, all examined together. It provides a broad view of trends and patterns across the whole set, rather than focusing on individual parts. For investors, this approach helps identify overall market or sector directions, making it easier to see the bigger picture.

logic-based technical

"Diagnostic tests (panel-level, statistical, logic-based, refielding) were conducted"

"Logic-based" refers to reasoning or decision-making that relies on clear, structured thinking and facts rather than emotions or guesswork. It involves analyzing information systematically to draw conclusions, much like following a step-by-step recipe. For investors, relying on logic helps make more rational choices, reducing the influence of biases and increasing the chances of making sound financial decisions.

refielding technical

"Diagnostic tests (panel-level, statistical, logic-based, refielding) were conducted"

Refielding is the process of adjusting or redistributing investments or assets within a portfolio to better match an investor’s goals, risk tolerance, or changing market conditions. It’s like reorganizing tools in a toolbox to ensure you have the right ones ready for different tasks; for investors, it helps maintain balance and optimize potential returns. This activity matters because it can influence the overall performance and safety of an investment strategy over time.

business development center technical

"or in the business development center at dealerships with an approximate"

A business development center is a dedicated office or team within an organization that focuses on finding new opportunities for growth, such as attracting new customers, forming partnerships, or expanding into new markets. It plays a key role in helping a company increase its revenue and market presence, which can be important to investors looking for signs of future success and stability. Think of it as the part of a business that searches for new paths to grow and thrive.

self-reported technical

"All data in this report is from self-reported, anonymous research of U.S."

Self-reported refers to information that individuals or organizations provide about themselves, often through surveys, forms, or statements, rather than being verified by an external party. For investors, it matters because this information can influence decisions, but since it relies on the honesty and accuracy of the source, it may sometimes be incomplete or biased.

AI-generated analysis. Not financial advice.

Fifth annual industry survey reinforces the value of a combined online and digital car buying experience 

PLANO, Texas, Dec. 4, 2025 /PRNewswire/ -- The 2025 Capital One Car Buying Outlook reveals nearly 70% of car buyers now view dealers as trustworthy—up from 44% just two years ago. This growth in trust is supported by an in-person and digital shopping approach where car buyers research online for convenience while seeking in-person experiences for control and excitement.

Car buyers familiar with digital tools are more likely to trust dealers (71%), and when trust is established, they're twice as likely to return for their next purchase. Dealers also increasingly recognize digital tools as a competitive advantage (86%), an increase of more than 25 percentage points from 2021. However, the findings suggest that while digital tools are reshaping the entire buying experience, the in-person element remains a powerful driver of trust and satisfaction.

"Our fifth Car Buying Outlook is a milestone that shows just how far the car buying experience has evolved. When trusted, personal relationships meet an increasingly digital world, buyers feel more confident and in control," said Sanjiv Yajnik, President of Capital One Auto. "Finding the right balance between online research and in-person connection creates a better experience than either one alone. When trust is present, everyone benefits–buyers, dealers and the industry as a whole."

Key findings of the 2025 Capital One Auto Car Buying Outlook include:

• More than two-thirds (69%) of buyers view dealers as trustworthy, up from 44% in 2023. Those familiar with digital tools are even more likely to trust dealers (71%). Buyers who trust dealers are almost twice as likely to return for their next purchase (46% vs. 24%).
  
  
• Car buyers feel a level of perceived trust in car manufacturers that can also benefit car dealers. Almost half (45%) of recent car buyers said manufacturers contributed to their trust in dealerships, compared to 20% who said so in 2024.
  
  
• In-person shoppers were more likely (40%) than online shoppers (18%) to find the car buying experience transparent, and in-person shoppers also experienced more excitement (67% vs. 56%) and delight (52% vs. 44%) than online shoppers.
  
  
• Car buyers who shopped entirely, mostly or some in person felt a greater sense of control (43%) than those who shopped entirely, mostly or some online (23%). 
  
  
• 86% of dealers say digital tools give them a competitive edge, an increase of more than 25 percentage points from 2021. 
  
  
• As Gen Z car buyers navigate the car buying experience, they rely on external sources not related to the dealership more than other generations, especially in determining which dealerships to engage with (53%).

• They are more likely than other car buyers to feel overwhelmed (34%), stressed (29%), intimidated (25%), frustrated (21%) or confused (24%) throughout the car buying experience.
  
  
• Other findings suggest the in-person shopping experience can help: Gen Z car buyers were the only age cohort to rank car dealerships among their top five most trusted resources, and the topic they asked dealers about the most (42%) was test drives.

"Dealers who bring together technology with in-person experiences are creating the kind of trust that keeps customers coming back," Yajnik said. "We will continue to surface the insights that can help dealers deepen relationships and deliver experiences that truly delight their customers."

For more information, download the full report at capitalone.com/about/car-buying-outlook.

Survey methodology

The Capital One Car Buying Outlook consists of findings from two surveys targeted to car buyers and dealers respectively, both of which were conducted on behalf of Capital One Auto Finance through Rep Data. Diagnostic tests (panel-level, statistical, logic-based, refielding) were conducted to remove low-quality respondents and ensure the integrity of the final sample.

The analyzed buyer survey was conducted online from August 12 through August 24, 2025 with a margin of error of +/-2.2%. The analyzed car buyer survey consists of 2,042 U.S. car buyers (recent and future), ages 18+. Of these, 829 purchased a car in the last six months and are considered "current car buyers", while 1,213 said they're planning to purchase a car within the next year and are considered "future car buyers". Among our total car buyer sample, 1,679 shopped or plan to shop entirely/mostly online, 50/50 online/in-person or mostly in-person and are considered those who 'shopped/plan to shop at least partially online.' 1,959 shopped or plan to shop entirely/mostly in-person, 50/50 in-person/online or mostly online and are considered those who 'shopped/plan to shop at least partially in-person.' Generational data was pulled for Boomers and older (ages 61+) Generation X (45-60), Millennials (29-44) and Generation Z (18-28).

The analyzed dealer survey was conducted online in two parts, from August 11 through August 22, 2025 and September 15 through September 17, 2025 with a margin of error of +/-4.4%. The analyzed dealer survey consists of over 489 U.S. car dealers. These respondents currently work for an automobile dealership as an owner, general manager, F&I director, sales manager, internet manager or in the business development center at dealerships with an approximate annual sales volume of at least $1M. 

Findings are compared to the 2024 Car Buying Outlook (fielded between May 1-20, 2024 to 1,994 U.S. recent car buyers with a margin of error of +/- 2% and 600 U.S. car dealers, with a margin of error of +/- 4%), the 2023 Car Buying Outlook (fielded between October 10-15, 2022 to 2,210 U.S. recent and future car buyers with a margin of error of +/- 2% and 400 U.S. car dealers with a margin of error of +/- 5%), the July 2022 Car Buying Outlook (fielded between June 7-13, 2022 to 2,209 recent and future car buyers with a margin of error of +/- 2% and 400 car dealers with a margin of error of +/- 5%), and the 2021 Car Buying Outlook (fielded between October 1-20, 2020 to 1,000 future and recent car buyers with a margin of error of +/- 3% and 401 car dealers with a margin of error of +/- 5%).

All data in this report is from self-reported, anonymous research of U.S. respondents broadly, not specifically from or about Capital One customers or employees.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $367.5 billion in deposits and $493.6 billion in total assets as of March 31, 2025. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches and Cafés located primarily in New York, Louisiana, Texas, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

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SOURCE Capital One

FAQ

What did the Capital One 2025 Car Buying Outlook report for dealer trust (COF)?

The report found 69% of car buyers view dealers as trustworthy, up from 44% in 2023.

How does digital-tool familiarity affect dealer trust according to the 2025 COF report?

Buyers familiar with digital tools reported higher trust at 71% compared with the overall sample.

What did the 2025 Capital One Outlook say about dealer use of digital tools (COF)?

86% of dealers said digital tools give them a competitive edge, a rise of more than 25 percentage points since 2021.

How does in-person vs online shopping compare in the 2025 COF findings?

In-person shoppers reported more transparency (40% vs. 18%), excitement (67% vs. 56%) and control (43% vs. 23%) than online shoppers.

What generation showed the most stress in the 2025 Capital One car-buying survey (COF)?

Generation Z reported the highest friction: 34% overwhelmed and 29% stressed during the car-buying process.

Where can investors download the full 2025 Capital One Car Buying Outlook report (COF)?

The full report is available for download at capitalone.com/about/car-buying-outlook.