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WESTLAKE VILLAGE, Calif. (May 26, 2006) Turning to the Internet to research and select a new or used vehicle to purchase has been gaining ground with consumers with of late. The evidence of this increasing trend can be found in J.D. Power and Associates 2006 Used Autoshopper.com Study, which revealed that more than twice as many vehicle buyers are sourcing online classifieds versus newspaper and magazine classifieds as the place where they found their next purchase. Over the past five years, the percentage of buyers who discovered their used vehicle through a traditional newspaper or magazine classified ad dropped from 14 percent in 2002 to 7 percent in 2006. Over the same period, buyers who said they found their next vehicle through an online classified doubled from 8 percent in 2002 to 16 percent in 2006. "Print continues to serve an important purpose in marketing, but its role in the area of classified listings is diminishing quickly," explained Min Cho, senior analyst at J.D. Power. "The domination of the Internet over print in the used-vehicle market will only increase as today's younger buyers become a larger buying force in the market. Buyers under the age of 35 are more than four times as likely to be led to the vehicle they purchase by information found online than by print classified ads." This year, 59 percent of used-vehicle buyers said they turned to the Internet during their shopping process, which is up from 53 percent in 2005. Moreover, 80 percent of used vehicle purchasers said they now have access to the Internet, a 4-percent increase from 2005. J.D. Power executives attributed the increase to buyers 60 years old and older. "It is now cheaper than ever to own a computer and to have Internet service, which is why we're seeing such significant shifts in the number of consumers using the Internet to shop for used vehicles," said Cho. "Once shoppers are online, they are finding that automotive Web sites are providing better quality and quantity of information about used vehicles. "The impact can be felt in what shoppers buy, who they buy from and what they're willing to pay for their vehicle," he continued. "Better search tools and applications are allowing Web sites to 'listen' to shoppers better and more quickly match them up with appropriate vehicle considerations." According to J.D. Power, independent Web sites are continuing to garner the highest visitation rates among used-vehicle buyers at 90 percent. These buyers are specifically turning to independent sites for pricing, inventory and reliability information, executives pointed out. Many independent auto sites also offer online classified listings powered by sites such as AutoTrader.com or cars.com, executives added. Looking at dealership sites, J.D. Power said they attract large numbers of used-vehicle buyers, too. In fact, significantly more used-vehicle buyers who use the Internet visit dealership Web sites than do new-vehicle buyers, 64 percent versus 48 percent, respectively. While automaker sites don't offer as much information about vehicles made in previous years, they produce high visitation rates among used-vehicle buyers, executives noted. This could be due to the fact that 41 percent of late-model used vehicle buyers consider one or more new vehicles before they buy, executives surmised. "In general, manufacturers are not doing all that they can to facilitate the very common practice of comparing new and used vehicles," Cho said. "Manufacturers have an opportunity to demonstrate that the vehicles they made a few years ago are still performing well, thus supporting residual values. "They also have an opportunity to demonstrate why their new vehicles are even better than the ones they replaced, supporting new-vehicle sales," he said. "When manufacturers do more to support the shopping process, visitation to their sites will increase." J.D. Power said its 2006 Used Autoshopper.com Study was based on responses from 12,317 used-vehicle buyers who purchased a pre-owned 2001-2006 model. |
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