Internet Now Primary Source of Info on Used Vehicles

Internet Now Primary Source of Info on Used Vehicles

Internet shopping has reached parity with visits to dealer lots as the primary method for buyers to locate used vehicles, according to the J.D. Power and Associates 2009 Used Vehicle Market Report.

The report finds that reliance on the Internet as a method for locating vehicles for sale has increased from 40 percent in 2008 to 46 percent in 2009–equal to the percentage of buyers who visit dealer lots as their primary shopping method. It also found that 31 percent of buyers found the vehicle they ultimately purchased on the Internet, compared with 28 percent who found their vehicle by visiting dealerships.

“Internet shopping allows for a more efficient matching of buyers with unique used vehicles in the market,” said Arianne Walker, director of marketing and media research at J.D. Power and Associates. “In light of this, dealers should expect the Internet to continue to increase in importance among used vehicle shoppers and adjust their online presence accordingly.”

The report also finds that awareness of certified pre-owned (CPO) vehicle programs is strong, with more than 60 percent of used vehicle buyers indicating they intend to purchase certified pre-owned vehicles at the start of their shopping process.

One-half of all buyers of CPO vehicles say they used the Internet to locate used vehicles, while a slightly lower percentage (45%) shopped primarily by driving to dealer lots. The percentage of buyers who visited dealer Web sites specifically for CPO vehicle information has increased considerably to 29 percent in 2009, compared with 19 percent in 2008. Other traditional sources of used-vehicle information such as newspapers, television and radio have low usage rates among buyers seeking CPO vehicle information.

Power also found that among used-vehicle buyers who use the Internet, third-party sites are visited much more frequently than other types of sites, including dealer Web sites. More than nine in 10 buyers (91%) say they visited at least one third-party Web site while 78% visited a dealer Web site, the report said.

“Not only has visitation increased for third-party sites, but they also continue to be viewed as the most useful sites during the shopping process,” said Walker. “Overall, users rate sites such as AutoTrader, Cars.com, and Edmunds highly for overall usefulness. In addition, certain third-party sites are also well regarded for usefulness in specific areas. For example, sites like AutoTrader and eBay Motors are perceived as particularly useful for inventory information, while buyers report that ConsumerReports.org and Edmunds are useful for vehicle appraisals and reviews. Sites such as Kelley Blue Book are perceived as being particularly useful for pricing information.”

The 2009 Used Vehicle Market Report is based on the self-reported shopping habits of 10,328 used vehicle buyers. The study was fielded from July to August 2009.